The number of people seeking Housing Development Board (HDB) rental flats has tripled in just a year, as rentals for condominiums escalate. According to data from HDB, the average monthly rent of a four-room flat rose almost 10 per cent to S$1,750 from S$1,600 in the last few months.

Prime Minister Lee Hsien Loong calls it a “worrying trend”, as HDB flats are meant for “the minority of genuinely needy families who have no income, no assets and no family support”.

Although the HDB is building more flats to meet demand, Lee urged people who are not really in need to look for alternatives such as renting a room on the open market or moving in with their children. Other alternatives include downgrading to a smaller flat or moving into a studio apartment.

The elderly could also opt for the recently launched lease buy-back scheme to monetise their flats instead of selling up and joining the rental queue. This scheme enables owners to sell the tail-end of their flat lease to HDB, the proceeds of which will go to a CPF Life annuity which will make monthly payouts.

National Development Minister Mah Bow Tan said that HDB will increase its supply of 42,000 flats by 20 per cent, and also review its eligibility scheme. Lee said this will “keep it (HDB flats) an effective safety net for the people who need it”.

Aljunied GRC MP Cynthia Phua said that there’s no straightforward solution to the situation and that studio flats are also over-subscribed. She added that the situation should ease when more flats from the HDB’s building programme come on the market.