Khaw Boon Wan clarifies Tharman’s “buying HDB flat on $1K pay”

National Development Minister Khaw Boon Wan has clarified comments made by Deputy Prime Minister Tharman Shanmugaratnam, that a household with a S$1,000 income can afford an HDB flat.

Mr Khaw said the comment had caused a stir, as it sounded so incredible.

But he said Mr Tharman was referring to a two-room Built-To-Order (BTO) flat.

That’s because such a flat would cost a first-time applicant – who earns S$1,000 – about S$40,000, after subsidies.

The mortgage payment, said Mr Khaw, can be fully paid through the applicant’s CPF, without incurring any additional out of pocket money.

Mr Khaw added that most applicants of two-room flats earn above S$1,000.

And based on recent BTO launches, the median income for this group is about S$1,400.

Source : Channel NewsAsia – 3 Mar 2012