By Lediati Tan

IN FOUR years, he has moved house about seven times.

The uncertainty of not having a permanent roof over his head, coupled with rising rental costs, drove Singapore permanent resident (PR) Peer Mohamed Ali, 35, to buy his first HDB flat four years ago.

Today, Mr Ali, a systems analyst from India who has been working in Singapore for the past nine years, is in the midst of upgrading from a 3-room flat to a 5-room flat in Jurong East with his wife and two daughters.

As of 30 Jun, Mr Ali's flat is one of 42,800 HDB flats owned by PRs in Singapore. This is about 4.9per cent (roughly one in every 20) of all HDB households.

Mr Mah Bow Tan, Minister for National Development, revealed this in Parliament yesterday. He was responding to MP Lim Wee Kiak's (Sembawang GRC) queries on the ownership of HDB flats among PRs.

Mr Mah assured the House that Singapore's public housing policies are designed for the benefit of Singaporeans.

Unlike Singaporeans, PRs are not eligible for housing subsidies, and they are not allowed to buy a new flat from HDB or enjoy any housing grant, he said.

They are only allowed to buy property from the open market, including HDB resale flats.

So, why are HDB flats still popular with PRs?

Said Mr Ali: "Owning an HDB flat is value for money if you consider the rental which keeps going up and takes a lot off the monthly salary. If you want to save, it's better to buy than rent."

Compared to the $900 monthly rent he used to pay for a 4-room flat, Mr Ali said that it was cheaper for him to pay the $700 monthly instalments for his 3-room flat.

Plus, he gets to keep the profit he made from selling the flat.

Mr Ali said he paid $170,000 for the 3-room flat in 2005 and sold it recently for $244,000.

His 5-room flat costs $423,000. He estimates that he would have to pay $100,000 to $125,000 less if he were a Singapore citizen buying a new flat in the same area.

The affordability of HDB flats aside, Mr Ali also felt that buying an HDB flat gives a lower risk on investment as private property prices seem to be more susceptible to market fluctuations.

Next, citizenship?

What's keeping him from applying for citizenship?

"I have family in India. My roots are there. But I'm now thinking of changing to citizenship, maybe one year down the line," replied Mr Ali.

Another PR, Ms Kweok Lee San, 27, a marketing executive from Malaysia, owns a 4-room flat in Bedok.

She lives with her husband and her younger sister in the flat which she bought for $210,000 two years ago.

She was renting for the first five years she was here before she bought her current flat.

Then, she paid about $500 a month to rent a single room. Now, she uses her CPF to pay the $800 monthly instalments for her flat.

Said Ms Kweok: "Paying someone rent is like helping to pay for their housing instalments. I'd rather buy and pay for my own home."

Responding to Dr Lim's concern about the integration of PRs in HDB estates, Mr Mah said that the same HDB rules, including the Ethnic Integration Policy (EIP), apply to both Singaporeans and PRs.

The EIP was introduced to achieve a healthy racial mix in HDB estates and prevent the formation of ethnic enclaves, regardless of whether they are citizens or PRs.

Recognising the importance of having a good mix of PRs in HDB estates, Mr Mah said that his ministry will keep a close watch on the distribution of PRs living in HDB estates.

"Where necessary, we will consider measures to prevent the congregation of PRs and foreigners," he said.

This article was first published in The New Paper.