It plans to build up new towns in Bidadari, Tengah and Tampines North – which will together contain about 90,000 new homes – while continuing to grow Punggol.

More housing units will be added to existing mature estates, while new residential zones will develop in central areas like the former Bukit Turf Club, Kallang Riverside, Keppel and Bukit Brown.

The Land Use plan promises that each of these estates will come with a full range of amenities from hawker centres to recreational and green spaces. By 2017, it said, 20,000 new childcare places near homes will be added to the stock of 92,000 today.

To house 6.9 million people, the plan projects that Singapore will need an additional 5,600 hectares of land by 2030.

This extra land will be found partly through reclaiming additional land and developing some reserve land.

But the Government will also move to “recycle land” that is currently not being used intensely. For example, it will take back the land that some golf courses are on when their leases are up for re-development.

The Ministry of Defence’s activities will also be consolidated on Pulau Tekong, freeing up the space it currently uses on the Singapore mainland for development.

The paper also takes pains to assure Singaporeans that the country will remain a “garden city”. MND is setting a goal of having 85 per cent of Singaporeans within a 10 to 15 minute walk from a park by 2030.

By then, it said, about 900 hectares of reservoir and 100km of waterways will be open for recreational activities.

He said this in a blog post, “Who Gets Short-Changed?”, on Monday, on the heels of recent launches of executive condominium (EC) projects.

Mr Khaw noted that in these projects, super-sized units were offered and snapped up by buyers who did not appear to be from the “sandwiched” households.

He said understandably, there was public indignation that there were “deviations” from the government’s intention of meeting the needs of such households through ECs.

Mr Khaw said the developers explained that such super EC units were a minority, and that they were snapped up by buyers who could actually afford private properties as they had priced them low.

One such developer, he noted, priced its super penthouse at S$470 per square foot (psf), while selling the other smaller typical EC units at S$770 psf.

Mr Khaw was referring to CityLife@Tampines, which made the news for a penthouse unit with a record price tag of S$2.05 million. The unit was over 4,000 square feet – roughly four times as big as a five-room HDB flat. The unit was snapped up within two hours of its launch.

This sparked a public outcry on whether ECs have deviated from its original intent to provide subsidised housing for the sandwiched class – those who cannot afford private property but with an income exceeding the limit that qualifies them for a HDB flat.

Mr Khaw said communal sky terraces have been effective in promoting greenery and providing useful common amenities for residents.

But the creation and sale of super-sized private roof terraces is becoming more prevalent.

This is also happening on the ground floor, where it’s referred to as “private enclosed space” for the buyer.

Mr Khaw said under URA rules, it’s “not improper” for developers to sell off free spaces to make additional profit.

But he’s concerned that as more developers do so with larger private roof terraces and private enclosed space, communal space in the development that benefits all residents will shrink.

Chesterton Suntec’s research head Colin Tan said: “This is a closed market in the sense that there is a ceiling cap. And so the developers may think that the majority will not be prepared to pay for such space, and so they decided to concentrate most of this space in just a few units. They feel that at least there will be some buyers who will be prepared to pay for this.”

In an emailed response to Channel NewsAsia, URA said: “We are reviewing the guidelines on private enclosed space and private roof terraces, and will announce the details once the review is completed.”

Property analysts said the issue has much to do with equity.

CEO of International Property Advisor Ku Swee Yong said: “A sandwiched class family with a household income of S$12,000 – are they able to afford a property that is more than S$1.5 million? If the family, together with support from parents and relatives can afford (a unit costing) more than S$1.5 million then perhaps they are not really in the sandwiched class anymore. They should be better off buying a private property rather than buying a subsidised property which is subsidised with taxpayers’ money.”

This is the largest growth for 2012 and since the third quarter of 2011, where growth was 3.8 per cent.

This brings the total growth for last year to 6.4 per cent, down from the double digit growth of 10.7 per cent in 2011, and 14.1 per cent in 2010.

Lee Sze Teck, senior manager for research and consultancy at property firm Dennis Wee Group, said: “There is a depleting supply of available resale flats for sale, after HDB has increased the MOP (Minimum Occupation Period) period to five years in 2010.

“Also, at the same time they increased the allocation of BTO flats and ECs to second-timers in March 2012, so this actually resulted in lesser flats being offered for sale in the resale market.”

HDB also said it will now target to launch at least 23,000 BTO flats. HDB had earlier said it would launch at least 20,000 BTO flats in 2013.

Mr Lee said that increasing the BTO supply will have a “psychological effect” on prices in the resale market.

He added: “People will think that: ‘there’s no reason for me to go and pay a very high price for a resale flat, if there are more options in the market for me to choose from.’

“And at the same time, I believe they’re going to change some of the policies in terms of allocation of BTO flats, maybe to first-timers, or families with young kids, or even to singles, which is why maybe they have to increase the number of BTO flats in 2013.”

The first batch of 3,346 BTO flats in Choa Chu Kang, Yishun, Hougang, Tampines, Kallang Whampoa, and Ang Mo Kio will be offered for sale later this month.

Preliminary data released by the Urban Redevelopment Authority showed the private residential property price index rose 1.8 per cent to a record 211.9 points in the October-to-December period from the previous three months.

The home price index had risen 0.6 per cent in the previous quarter.

Prices of private residential properties increased by about 2.8 per cent in 2012, the pace easing from the 5.9 per cent increase in 2011.

The Building and Construction Authority (BCA) told MediaCorp that two test centres will be set up in Sri Lanka.

Approval is also being sought from the Philippine authorities to establish test centres there.

The BCA hopes to bring in skilled construction workers from Sri Lanka and Philippines to boost supply and diversify the source for foreign labour.

The main sources of foreign construction workers in Singapore are from China, India and Bangladesh. The authorities want to be less reliant on these countries.

Mr Neo Choon Keong, BCA’s group director of manpower and strategies policy, said: “What we are seeing now is that the major sources like China, India, because of the fast development the number of workers is actually coming down over time, because there are plenty of jobs there.

“So for resilience perspective, we are working with the industry to open up new sources to locate skilled workers, notwithstanding our efforts to reduce the numbers of foreign workers overall through the adoption of technology as well as better building designs.”

Demand for foreign construction workers in Singapore is expected to remain strong in the years ahead, as the government is ramping up infrastructure development such as expanding the rail network and building more flats and health-care facilities.

In a recent report, the National Population and Talent Division expects the demand for foreign construction workers on low-skilled work permit holders to increase from some 250,000 in 2011 to about 280,000 in the next two to three years.

The BCA said most workers in Sri Lanka and Philippines speak English and this will help improve communication on the construction site.

Construction workers who want to work in Singapore have to go through a rigorous training regime in their country.

They have to stay in the training centre and undergo a full-time programme lasting between three and six months.

Only seven out of 10 of these workers would eventually pass the test.

After the training, potential workers have to go through a five-hour practical test on essential craft skills as well as a one-hour theory test on trade knowledge.

Currently, there are 26 overseas testing centres in China, India, Bangladesh, Thailand and Myanmar.

Potential workers can choose to be tested in 29 construction skills.

Construction company Progressive Builders will be operating one of the two new test centres in Sri Lanka.

Its managing director Ng Yek Meng said for a start, workers will be tested in 12 construction skills such as steel reinforcement work, tiling and plastering.

He said these tests are to ensure workers coming to Singapore are of a certain standard and quality, and could in turn help raise productivity.

Mr Ng said: “Some of the workers, especially if they come from agriculture (background), don’t even know how to operate certain equipment. The test is quite stringent not only in Sri Lanka but for all source countries. Whoever can pass the test, I think they are of a certain quality. So this is how we can sieve the good ones and the bad ones.”

The test centres in Sri Lanka are expected to be operational in six months’ time.

Besides bringing in better quality construction foreign workers, the BCA also has a comprehensive training framework to continuously upgrade them.

Some 12,000 foreign construction foreign workers have upgraded their skills through these various programmes.

But many property analysts said HDB resale-flat prices would still rise, as BTO launches tend not to attract buyers of resale flats. BTO-flat prices are usually pegged to prevailing resale prices, but sold at a discount.

Mr Eugene Lim, ERA’s key executive officer, explained that resale and BTO flats cater to different buyers.

He said first-time buyers are not major buyers of resale flats, and usually go for BTO flats to enjoy substantial savings, he added.

Sharing similar sentiments, Mr Mohamed Ismail, chief executive of Propnex Realty, said buyers of resale flats are usually private- property downgraders, singles or those who do not qualify for BTO flats.

However, some analysts said resale-flat prices could moderate in a few years’ time, when upcoming BTO flats are ready.

Said Mr Lee Sze Teck, senior manager of training, research and consultancy at Dennis Wee Group: “The BTO launches will help moderate resale prices, but the impact won’t be felt immediately.”

He explained that, if a second timer gets his flat in three years’ time, he would sell his existing flat only then. This will help to increase the supply of resale flats in the future and, in turn, moderate resale-flat prices.

Mr Donald Yeo, head of support and services at HSR International, said: “With the resale market diluted by BTO flats coming in, it will help to ease and stabilise the prices of resale flats in the long run. This is a good move to prevent resale prices from shooting up.”

Yesterday, HDB launched seven BTO projects, offering 6,463 new flats, the largest number in a single month to date. They are found in three mature estates – Bedok, Queenstown and Toa Payoh – and two non-mature estates: Choa Chu Kang and Sengkang.

BTO flats in mature estates are clearly hot property for buyers such as Mr Jerry Bai, 27. Mr Bai, who is planning to get married in 2014, was keeping tabs on the Toa Payoh project and registered online after news of the launch broke yesterday.

He said: “Most of the new flats are in far-flung locations. We signed up for Toa Payoh as it has a central location and our relatives live nearby.”

With this launch, the total BTO flat supply in 2012 will reach 27,084 units. This will be the largest BTO supply in a year since the BTO system was introduced in 2002.

Together with another 7,153 balance flats offered earlier in the March and September 2012 Sale of Balance Flats (SBF) exercises, HDB has launched a total of 34,237 new flats in 2012.

In January 2013, HDB will offer about 3,320 BTO flats in Ang Mo Kio, Choa Chu Kang, Hougang, Kallang Whampoa, Tampines and Yishun.

HDB is planning for at least 20,000 BTO flats in 2013.

First-timers will continue to enjoy priority flat allocation with at least 95% and 85% of the BTO flat supply (excluding Studio Apartments) set aside for them in mature towns and non-mature towns respectively.

The Multi-Generation Priority Scheme (MGPS) will be available to those applying for flats at Fengshan GreenVille, Ghim Moh Edge and Toa Payoh Crest.

Elderly flat owners in Bedok, Queenstown and Toa Payoh will also enjoy double d balloting chances under the Ageing-In-Place Priority Scheme (APPS) when they apply for a Studio Apartment in Fengshan GreenVille, Ghim Moh Edge and Toa Payoh Crest.

Eigible first-timer households can also enjoy up to $60,000 of housing grants comprising Additional CPF Housing Grant ($40,000) and Special CPF Housing Grant ($20,000).

Inclusive of these grants, 3-room flats will be priced from as low as S$111,000 and 4-room flats from S$228,000. This will help young couples buy their first home (See table below).

Under SERS, selected old sold flats are redeveloped to optimise land use.

It’s one of the government’s renewal plans for old public housing estates.

Flat owners affected by SERS can upgrade to new flats in nearby locations, with a fresh 99-year lease.

Mr Khaw told Parliament that residents are fully compensated for their existing flats and paid reasonable expenses for their relocation.

They are given assured allocation of new replacement flats at subsidised prices.

Flat owners who are eligible for a subsidised flat are also given a further 20% price discount off the Built-To-Order (BTO) prices.

Mr Khaw said this further marks down the already-subsidised price of the new HDB flat.

“The price discount, at up to $30,000 for a family, is comparable to the CPF Housing Grant for first-timer families buying a resale flat” said the Minister in response to MP for Moulmein-Kallang GRC Denise Phua who asked the government to consider bigger discounts for new replacement flats in SERS projects.

Mr Khaw said the discount cap ensures that SERS flat owners enjoy consistent benefits, as those with the means to buy the bigger flat-types will get the same discount as the other SERS flat owners who buy smaller flat-types.

“In addition, the middle- or low-income first-timer families may apply for the Additional CPF Housing Grant or Special CPF Housing Grant totalling up to $60,000 to help them buy a replacement flat.

“HDB also provides a concessionary housing loan to eligible SERS flat owners” he told Parliament, adding: “The basic CPF grant has stayed put, but the total grant has increased.”

Mr Khaw said the HDB reviews its policies regularly to ensure that they remain relevant and meet the needs of residents.

Speaking in Parliament on Wednesday, Mr Khaw said the yearly Resale Price Index (RPI) growth has gone down from 14.1 per cent in 2010 to 10.7 per cent last year.

And in the first nine months of this year, the figure stood at 3.9 per cent.

However, Mr Khaw said an uptick in quarterly RPI growth to two per cent in the third quarter of this year showed that while things are improving, there is still some way to go.

He said a number of property cooling measures that had been implemented will take some time to work through the market.

These include the “huge supply” of new housing units which will only be available over the next two to three years.

As for public rental blocks, the Ethnic Integration Policy (EIP) is also under review to better reflect Singapore’s demographic changes.

Mr Khaw said: “Currently, about 60 per cent of HDB’s public rental blocks have reached the EIP block limit of 25 per cent for Malay households. We are in the midst of reviewing the EIP limits for rental flats to take into account the demand from the various ethnic groups.”

MP for Aljunied GRC, Pritam Singh, had also asked if HDB would consider allocating rental flats on a strict needs basis only. This is to avoid rejection or delay as a result of the applicant’s preference of a rental zone.

In his reply, Mr Khaw said: “Applications for a rental flat are assessed and approved on a strict needs basis. As for allocation, rental applicants may prefer certain locations, which are nearer their workplace or their children’s school.

“We allow them the flexibility to choose the location zone, so that we are better able to meet their needs. HDB will advise them on the estimated waiting time for their preferred zone, as well as the zone with the shortest waiting time, so that they can make an informed decision.”

The unit was sold for S$1.77 million – a high price for an executive condominium in Singapore.

Couples cannot exceed a monthly household income of S$12,000 if they want to buy an executive condominium unit.

Analysts say the buyers of the five-bedroom, over 2,800 square-foot penthouse, while not exceeding the income criteria, are likely to come from wealthy backgrounds.

To date, more than 90 per cent of Heron Bay has been sold, since it was launched last week.

“Although the penthouse is priced at more than a million dollars, I think it’s still value for money,” said Micheal Tan, the executive director of Ho Lee Group. “Condominiums of such a size, such a (view), such a location, will cost you even more.”

The project by Serangoon EC, a joint venture company between CNH Investment, Evia Real Estate Management, Ho Lee Group and See Hup Seng, received more than four times the number of e-applicants for its 394 units.

The condominium is located at Upper Serangoon View.

Units in the project – which is expected to obtain a temporary occupation permit (TOP) in 2016 – sold for an average selling price of S$725 per square foot.

Mr Leslie Lim, Managing Partner of EVIA Real Estate Management, attributed Heron Bay’s popularity to its product differentiation, saying it added “luxury touches” to mass housing.

The development has five-bedroom units and features such as ensuite private pool-cum-jacuzzis or gardens, fish ponds for ground-floor units and complimentary fibre broadband service for the first year of occupancy.