SINGAPORE - Monthly rents for flats under the Parenthood Provisional Housing Scheme (PPHS) will be slashed significantly by as much as $400 from April 1.
The change means first-timer young couples awaiting the completion of their Housing Board (HDB) flats can rent units at rates that are about or less than half of those offered by landlords nearby.
National Development Minister Lawrence Wong announced the change during the Committee of Supply debates on Tuesday (March 7).
"We know that every dollar counts for a young family just starting out. That is why HDB rents out PPHS flats at subsidised rates," said Mr Wong.
For example, families living at the three-room PPHS flats in Commonwealth need to pay only $700 a month, a $400 reduction compared to $1,100 before.
A similar flat nearby in the open market will go for around $2,000.
And in Jurong, monthly rents for three-room PPHS units will be lowered by $200, from $800 to $600.
The rates depend on the flat type and location.
The PPHS was launched in January 2013 with an initial offering of 1,150 flats in Ang Mo Kio, Bedok, Boon Lay and Dover.
Currently, 780 households are enrolled in the scheme. There are 1,300 three- and four-room PPHS flats in total in Bedok South, Commonwealth, Jurong, Tiong Bahru, Eunos, Boon Lay and Bukit Merah.
About 2,000 families have benefitted from PPHS to date, and more than 400 babies have been born to families living in PPHS flats.