To help more Singaporeans qualify for new HDB flats, the income ceiling to purchase a new Build-to-Order (BTO) flat will be raised from S$10,000 to S$12,000. As for those looking to buy an Executive Condominium, the income ceiling will be raised from S$12,000 to S$14,000.
Announcing this at the National Day Rally on Sunday (Aug 23), Prime Minister Lee Hsien Loong noted that the change was timely as incomes have gone up further since the income ceiling was last raised four years ago. Also, the first-timer backlog for flats had also been cleared.
In addition, the Government will also make it easier for middle- and lower-income households to afford their first flat. First, the household income ceiling for the Special CPF Housing Grant will be raised to S$8,500 – up from the current S$6,500. This means two-thirds of all Singaporean households will qualify for the grant.
Second, the maximum grant amount will be doubled from S$20,000 to S$40,000. For a median household, they would get a Special Housing Grant of S$30,000 instead of S$10,000.
Mr Lee added: “Two years ago, I showed you that if you earn S$1,000 a month, you can buy a two-room flat. With the latest changes, even if you earn below S$1,000 but you hold a stable job and contribute to CPF regularly, you can still afford to have a two-room flat.”
Source : Channel NewsAsia – 23 Aug 2015