374 households at Tivela precinct to enjoy extensive warranty scheme

374 households of the newly-completed Tivela precinct in Sengkang Central are among the first to benefit from a more extensive warranty scheme.

The Housing and Development Board’s (HDB) ASSURE 3 was introduced for new flats launched for sale from 2005.

It covers selected defects in the units for between five and 10 years from the completion date of the flats.

Fixing defects such as spalling concrete, ceiling leakages and water seepage from external walls would cost flat owners several hundred dollars.

But these will be covered under the ASSURE 3 scheme, for new flats launched from 2005.

HDB will pay for repairs if defects occur within the 5 to 10 year warranty period, depending on the nature of the problem.

Prior to this, flat buyers only enjoyed a one-year Defect Liability Period.

Handing over the warranty certificate to residents, Senior Minister of State for National Development Grace Fu said the HDB does not expect the number of complaints on defects to rise. And the scheme will not be extended to older flats.

She said: “The warranty comes about because we really look at it from design stage on, so we can only do this for new projects that are coming on stream.”

Still, older units will not be left out. They stand a chance to be upgraded under the HDB’s Home Improvement Programme, which will include water-proofing and retrofitting of toilets, among other things.

Meanwhile, Ms Fu’s tour on Saturday also covered shops at Compassvale Link – the first commercial cluster leased out under HDB’s master tenancy plan.

These shops were opened in the middle of this year.

The Kopitiam group is the master tenant for the area which oversees 15 shops – including 24-hour foodcourts, bakery and supermarket.

It is hoped such arrangements will allow more flexibility in coping with changing market trends – and benefit customers.

Jeffery Lim, assistant director, Operations and Business Development, Kopitiam Investment, said: “For example, we have two bakeries. This actually creates competition and reduces the price level, and this inevitably becomes a cost saving to the residents.”

HDB will consider extending the master tenancy concept to other neighbourhoods.

Source : Channel NewsAsia – 20 Sep 2008

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