EVEN old flats destined for the wrecker's ball can be put to good use.

To augment the supply of rental flats, the Housing Board has started a pilot project to lease out flats vacated under the Selective En bloc Redevelopment Scheme (SERS) to the public on a short term basis. This will put these flats to better use in the interim period, pending their redevelopment, said the HDB in a statement today.

The first batch of 120 units - 60 three-room flats and 60 4-room flats - in five blocks in Tiong Bahru Road will be leased out to a master tenant on a three-year tenancy, with option to renew for another three years. HDB called for a tender on Aug 31 and received 15 bids when the exercise closed on Oct 9.

The successful bid went to Katong Hostel Pte Ltd at a tender price of $230,280 per month. This means the company must rent out a unit for at least $2,000 a month to break even.

'HDB will assess the response to this pilot project, before deciding whether to expand the scheme in future,' said the statement.

'If needed, HDB has a potential supply of about 4,000 to 5,000 units that can be introduced to bolster rental supply in the HDB market over the next three years.'

The tender result can be viewed on the HDB InfoWeb.

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