The monthly household income ceiling has been raised from $10,000 to $12,000. However, National Development Minister Khaw Boon Wan yesterday announced a ‘fairer’, tiered system to take into account the greater earning power of those who are now eligible.

Buyers with a monthly household income of $10,000 can still receive the full $30,000 Central Provident Fund Housing Grant.

But any household earning between $10,000 and $11,000, will receive $20,000, while those making more than that will get $10,000.

Mr Khaw told reporters at The Pinnacle @ Duxton: ‘Even for those earning more, we will still give them grants, albeit in smaller amounts. I feel this would make for a fairer overall system, and people are more likely to be able to accept it.’

‘I think it’s fair,’ Mr Khaw said. ‘If your income is higher, naturally you won’t need the subsidies as much as those earning less than you. (Thus), the higher your income, the lower the grant.’

ERA Realty’s Eugene Lim said buyers will still welcome the raised income ceiling, even though the grant is disbursed in tiers.

‘Previously, those earning between $10,000 and $12,000 would have to buy private property, which is still pricey to them,’ he said. ‘So now they can come into the executive condominium market and still get a grant, that’s a bonus.’

Asked what effect this will have on the private property market, Mr Lim said that private developers will have to price their projects competitively in the mass market.

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The monthly income ceiling to qualify under the single Singapore Citizen scheme will be raised to S$5,000, up from S$3,000. Singles will also enjoy a CPF Housing Grant of S$15,000, up from S$11,000.

And those applying under the Joint Singles Scheme will see the monthly income ceiling raised to S$10,000, and will receive up to S$30,000 in housing grants.

Speaking to reporters after touring the Pinnacle at Duxton, National Development Minister Khaw Boon Wan said it was necessary to raise the income ceilings and housing grants to match rising salaries.

This was the same reason for raising the income ceiling to qualify for a Build-To-Order (BTO) flat, said Mr Khaw.

These changes follow announcements made by Prime Minister Lee Hsien Loong on Sunday, which saw the income ceiling for Build-To-Order (BTO) flats raised to S$10,000, up from S$8,000.

To cater to the expected increase in demand, Mr Khaw said HDB is committed to building 25,000 BTO flats this year and next.

This is more than the entire Sembawang Town which has 18,000 flats, noted Mr Khaw.

“When prices were going up, people rushed in, worried that the next launch, prices will be even higher. So now that they know there’s some stability, and I can show them with 2 launches, and third launch coming up and another before Christmas, hopefully people will be calmer,” said Mr Khaw.

In addition, the monthly income ceiling to buy Studio Apartments (SAs) will also be increased to S$10,000 from S$8,000. HDB said this gives more elderly households more options.

The changes will be implemented from Monday for applications to buy new or resale HDB flats.

Source : Channel NewsAsia – 15 Aug 2011

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The Housing and Development Board said this higher-tier singles grant will also apply to eligible singles buying the Design, Build and Sell Scheme (DBSS) flats with their parents.

Under the existing Single Singapore Citizen Scheme, single Singaporeans aged 35 and above can get a CPF housing grant of S$11,000 to buy a HDB resale flat.

Minister in the Prime Minister’s Office Lim Boon Heng announced the above higher-tier singles grant in Parliament on 5 March.

It is a pro-family initiative to encourage children to look after their parents.

To qualify for the higher-tier singles grant, the eligible single must commit to living together with his/her parents in the resale flat for at least five years.

Within this minimum occupation period of five years, the parents cannot buy or take over the ownership of another HDB flat separately from this same single child, or invest in a private property.

All other prevailing policies such as the income ceiling, minimum occupation period for resale, resale levy liability, will apply.

Property agents said this new scheme is unlikely to have any impact on the market given the small segment it serves. – CNA/ac

Source : Channel NewsAsia – 27 Mar 2008

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