In February 2024, the government announced that it will double the supply of flats available under the Parenthood Provisional Housing Scheme (PPHS) to meet increasing demand. The government also introduced a one-year PPHS voucher during the Budget 2024 speech, aiming to help eligible Singaporeans defray rental expenses in the open market. HDB later revealed that the quantum for the voucher is set at $300 per month for one year.
As a recently married Singaporean who has been unsuccessful in applying for a PPHS flat (5 times and counting), I aim to shed some light about the considerations, the process, and the challenges that current applicants are facing.
Understanding The Current PPHS Framework
The Parenthood Provisional Housing Scheme (PPHS) allows married couples waiting for the completion of their Build-To-Order (BTO) flats to rent an interim flat directly from the Housing & Development Board (HDB). The scheme aims to provide eligible households with interim housing to meet their urgent needs, with a higher priority given to expectant married couples and married couples with children under 18 years old. Eligibility conditions, such as a combined income ceiling of $7,000 at the time of the BTO application, applies. The allocation of PPHS flats follows a similar ballot system as the BTO scheme, including the $10 admin fee per application.
Applicants who wish to co-share a 3-room or larger PPHS flat with another eligible household who has a similar waiting time for their BTO flat can contact HDB to make the request. If you are willing to co-share, you will enjoy a higher priority in the ballot, and if either households are expectant married couples or married couples with children under 18 years old, your applications will enjoy a further priority.
Application for PPHS flats opens every two months, on even months such as February, April, June, and so on. When the window opens on the first day of even months, you will be able to look at the list of rental flats available for that particular application window. Typically, around 200 of such units will be available for each application window. You will have around two weeks to submit your application on the HDB portal, with the window closing on the 14th of the month at 11:59pm. Results of the application will typically be released within the two weeks of the following month.
PPHS rental rates are significantly more affordable compared to the open market, where whole flat rental rates for a 3-room HDB flat can go up to $3,500. The exact rates depend on the flat type and location. Families can stay in the PPHS flat until the completion of their BTO flats or for a maximum of three years, whichever is earlier. Extension of stay may be granted on a case-by-case basis.
This structure provides a balance between offering temporary housing support and encouraging couples to move into their permanent homes once they are ready. The affordable rental rates also help young families manage their finances more effectively, allowing them to save for their future home while enjoying a private and comfortable living space.
The flats available for PPHS also come with a site expiry, and you are advised to apply only if there are PPHS flats offered with a site expiry that is at least 4 months after the estimated completion date of your BTO flat. Which is what you should be doing. You wouldn’t want to have the PPHS site expire before your BTO flat is ready (after renovations) and end up having to look for interim housing arrangements again.
Challenges Faced By Current Applicants
Limited Supply of Units
One of the most significant challenges faced by current applicants is the limited supply of PPHS units. The demand for these temporary housing units often exceeds the available supply, resulting in long waiting periods for many, myself included. As mentioned, only around 200 units are made available in each application window, and application rates typically range between 2 to 4 – which means that there are 2 to 4 households vying for each available unit.
In the last application window, there were 578 applications and only 180 units available, translating to an application rate of 3.21.
With that said, HDB has been steadily increasing the supply of such flats, and application rates have fallen from over 20 times in 2021 to about 2-4 in 2024.
No Direct Allocation of Flats Under PPHS
In our parents’ era, whenever they run into difficulties that they cannot resolve on their own, they will seek help from their Member of Parliaments (MPs). In true boomer fashion, my parents asked me to approach an MP when they learnt that we had trouble securing a flat (BTO back then, PPHS interim rental flat now).
Well, I did just that – I emailed all three MPs in my constituency, and one of them replied almost immediately. I was asked to go down to one of the “Meet the People” sessions, and I explained my situation to the MP in person. The MP typed in his laptop the whole time while listening and asking questions, and ended the session by sending an appeal letter to HDB. A few weeks later, I received a reply from HDB and it was as you’d imagine. HDB said that while they were empathetic about my circumstances, they were unable to directly allocate a PPHS flat to me without going through the ballot process. Ultimately, it boils down to the luck of the draw.
While HDB does evaluate appeals on a case-by-case basis, the only leeways for the application of PPHS flats are typically if there are changes in your financial situation (e.g income ceiling above $7k at the time of BTO application but below $7k now) or if you’re pregnant and want to apply for a higher priority in the ballot.
Recent Enhancements to PPHS
The state of the scheme is not as gloomy as I made it out to be – many families have benefited from PPHS over the years, especially married couples with kids waiting for the completion of their BTO flats. By way of crowdsourcing, it is estimated that 70% of such families get a PPHS flat on the first try.
Furthermore, the government recently announced some enhancements to the scheme.
Increasing Rental Flat Supply
Earlier this year, HDB announced that it will double the supply of PPHS flats from 2,000 units currently to 4,000 by 2025, with the bulk of these additional flats coming from the vacated SERS site at Tanglin Halt. These flats are slated to be demolished eventually, but since the blocks are not immediately needed for redevelopment, HDB has decided to let out these flats to meet the demand for PPHS flats.
Around 2,000 vacated flats across 17 blocks in Tanglin Halt will be spruced up before being progressively rented out to families, from the second half of 2025. This will likely have a significant impact, given that the supply is essentially doubled.
PPHS (Open Market) Voucher
The government also introduced a new subsidy scheme designed to help eligible families rent in the open market rather than waiting for a PPHS flat. This comes in the form of $300 monthly vouchers for a year to help defray rental expenses. While this is a step in the right direction, these vouchers may not do much for those currently applying for a PPHS flat. There are two main reasons why.
Firstly, the rental rates of 2-room PPHS flats range from $400 to $550 per month while 3-room PPHS flats go for $600 to $900 per month. In the open market, the average monthly rent balloons to $2,350 and $2,700 respectively. This means that the subsidy will cover less than 15% of the median rental cost of an HDB flat. Even with the vouchers, families are still required to bear a substantial cost – keep in mind that eligible PPHS families have a combined income of $7,000 or below (at the time of BTO application). And this cost will put a significant dent in any plans to save up for their remaining 15% BTO downpayment when the key collection comes along. An argument can be made that these families can go for room rentals instead of whole unit rentals, which could be tough for those who need more space. But even so, the vouchers will only cover less than 25% of the median room rental cost of an HDB flat.
Secondly, the scheme will only run for a year from July 2024 to June 2025. This means that only those who applied in July 2024 will fully benefit from the scheme. While the scheme may have been designed to help families tide until the Tanglin Halt rental flats are ready to be put up for application, having to relocate multiple times can be emotionally and logistically taxing.
Closing Thoughts
Over the years, the PPHS has made significant strides in supporting young couples and families in need of temporary housing while waiting for the completion of their BTO flats. Current applicants who are struggling to secure temporary housing may find some respite in knowing that more PPHS flats will be available next year, but we will have to hang tight for now until the new supply is ready.
If you are in a similar situation and would like to explore rental options in the open market instead, do reach out to us here. Our experienced consultants will be more than happy to assist you in your search for a suitable property.
See you in the next one!
