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FOR the first time in about 20 years, the Housing Board yesterday offered new two-room flats for sale to make housing more affordable for the lower-income group.

The 86 new two-room flats in Sengkang, costing between $54,000 and $75,000, are part of the latest build-to-order project called Fernvale Vista, which includes 92 three-room flats and 330 four-room units. They will be built only when there is sufficient demand for them.

Eligible households with a monthly income of not more than $2,000 can apply for the two-room flats up until Aug 14.

The 50-sq-m two-room units, which could be completed in about three years, will be among the first to have features such as wider corridors, mini-ramps, easy-to-use switches, and provisions for grab bars in all toilets, for the elderly and disabled.

All new HDB flats will come with such features from now on.

HDB is also setting aside 5 per cent of new two- and three-room flats offered for sale under certain schemes for the low income tenants of HDB rental flats. Eligible tenants who have lived in their rental flats for at least two years will be given priority if they want to buy these flats.

National Development Minister Mah Bow Tan announced these new initiatives after his visit to a two-room showflat at HDB Hub in Toa Payoh yesterday.

Another 80 two-room flats in Sengkang, as well as 100 in Jurong West, will be created by converting bigger unsold HDB units. Those in Jurong West will be offered to the public later this year.

The new initiatives follow the Government's recent announcement that it is giving out additional grants to help low-income earners get on the property ladder. The grants range from $5,000 to $20,000, depending on household income.

This will help reduce the out-of-pocket payments that low-income households have to make when buying their first homes.

For example, a couple earning $1,000 a month would be entitled to a $20,000 grant. If they are under the age of 35, the grant would enable them to buy a $65,000 two-room flat, and pay for it every month fully with their Central Provident Fund contributions, without coming up with any cash.

Mr Mah also said HDB would try to help households in serious financial hardship who are downgrading to smaller flats, by giving them second concessionary loans.

Housing, said Mr Mah, is an important way for the Government to bridge the widening income gap. 'It's a way to make people feel that they are also part of society and enjoy the benefits of the country's growth.'

Meanwhile, the move to provide barrier-free features in HDB flats earned praise from long-time proponents, like MP Lily Neo.

Said Dr Neo: 'With an ageing population, you never know when you will need these features. If you incorporate them from the beginning, you don't have to make adjustments as you go along. This will ensure that people can be independent for as long as possible in their own homes.'

tanhy@sph.com.sg