Government looking at lowering HDB flat eligibility age for singles, raising income ceiling for couples, families: Chee Hong Tat, Singapore News
In his first sit-down interview with the local media on Aug 5 since his appointment as minister, Chee said that any such changes will depend on whether there is an adequate supply of Build-To-Order (BTO) flats to meet the anticipated increase in demand.
The current BTO income ceiling for families and married couples is $14,000 a month, while singles must be at least 35 years old to be eligible to purchase public housing.
Chee said that lowering the age limit for singles, as well as raising the income ceiling will lead to more Singaporeans qualifying to buy a BTO flat, causing the demand to go up.
'Without a strong supply of BTO flats, we will not be able to meet this new demand… it's important for us to create the right conditions to be able to make these policy moves,' he said.
Speaking at his ministry's Budget debate in March, Chan's predecessor Desmond Lee said that the Government would continue to keep an eye on income growth and conditions in the local property market, and will raise the income ceiling 'when the time is right'.
Lee added that the current BTO income ceiling 'still covers about eight to 10 Singaporean households', adding that new flats 'are prioritised for those who need them more' such as lower-to-middle-higher income families.
The last changes to the income ceiling was in September 2019, when it increased from $12,000.
As for amending the eligibility conditions for singles, the July BTO exercise saw first-timer singles being granted priority access when they buy a two-room flexi flat near or with their parents.
The Ministry of National Development has since announced that 55,000 BTO units will be launched from 2025 to 2027, bringing the total of new flats to around 102,300 new flats from 2021 to 2025.
This exceeds its target of 100,000 flats.
Chee was asked on a timeline on when the policy changes will come into effect, and whether more than 50,000 new flats in the next three years constitutes an 'appropriate' condition.
He said he does not want to 'prematurely make any commitment that we are not ready to do so'.
'I want to make sure that when we make those moves, we will not end up with a situation where there's insufficient supply,' he added.
'That will bring us back to the not-so-good situation we faced during Covid-19, where a lot of applicants may not be able to get their flats, or may have to wait a long time.'
Chingshijie@asiaone.com
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