Oral answer by Ministry of National Development on the household income ceiling for prospective buyers of BTO flats and ECs
Nov 29, 2022
Mr Ang Wei Neng:To ask the Minister for National Development whether HDB is prepared to review the monthly household-income ceiling for prospective buyers of BTO flats and Executive Condominiums respectively, given the high inflation rate.
Answer:
The income ceilings for the purchase of subsidised HDB flats and Executive Condominiums (ECs) are reviewed regularly to ensure that public housing remains within reach of the majority of citizen households, and that housing subsidies are given to those who need them most. Factors that are considered include the household incomes of Singaporeans and prevailing housing market conditions, among others. We are also mindful that lower income households could be crowded out by an adjustment to the income ceilings.
2. The income ceiling was last reviewed in 2019, when it was raised from $12,000 to $14,000 for families buying a new flat, and from $14,000 to $16,000 for families buying an EC from property developers. At the same time, we introduced the Enhanced CPF Housing Grant (EHG) to better support lower to middle-income families buying their first homes.
3. There are no plans to revise the income ceilings at this point. At the current income ceiling of $14,000, about 8 in 10 Singaporeans are eligible to apply for a BTO flat, while the $16,000 ceiling enables about 9 in 10 Singaporeans to apply for EC. There is no income restriction for the purchase of a resale HDB flat on the open market.
4. HDB is committed to helping Singaporeans, particularly first-timers and lower to middle-income families, to own a home. The Government will continue to monitor housing market conditions closely to ensure that public housing remains affordable and accessible.
Issued by: Ministry of National Development
Date : 29 Nov 2022
As an expert with a deep understanding of housing policies and government responses to economic factors, I can provide valuable insights into the oral answer given by the Ministry of National Development regarding the household income ceiling for prospective buyers of BTO flats and Executive Condominiums (ECs) on November 29, 2022.
The Ministry's response highlights the regular review of income ceilings for subsidized HDB flats and ECs. This process is crucial to ensure that public housing remains accessible to the majority of citizen households and that housing subsidies are directed towards those who need them the most. This demonstrates a proactive approach to maintaining the balance between housing affordability and the economic realities faced by Singaporeans.
The key factors considered in these reviews include the household incomes of Singaporeans and prevailing housing market conditions, indicating a comprehensive and data-driven decision-making process. The Ministry is also mindful of the potential impact on lower-income households, emphasizing the need to prevent crowding out by adjusting income ceilings.
The last review in 2019 resulted in an increase in the income ceiling from $12,000 to $14,000 for families purchasing a new flat and from $14,000 to $16,000 for families buying an EC from property developers. Concurrently, the government introduced the Enhanced CPF Housing Grant (EHG) to better support lower to middle-income families in their first home purchases.
The current income ceilings stand at $14,000 for BTO flats and $16,000 for ECs, with no immediate plans for revision. At these levels, approximately 8 in 10 Singaporeans are eligible to apply for a BTO flat, while 9 in 10 can apply for an EC. Importantly, there is no income restriction for the purchase of a resale HDB flat on the open market.
The Ministry's commitment to assisting Singaporeans, especially first-time buyers and lower to middle-income families, in achieving homeownership is evident. The government pledges to monitor housing market conditions closely to ensure ongoing affordability and accessibility to public housing.
In conclusion, the Ministry of National Development's response reflects a comprehensive and strategic approach to managing housing policies, balancing the need for affordability with economic conditions and the welfare of different income groups. This information is crucial for citizens and stakeholders to understand the government's stance on housing affordability and its commitment to supporting various segments of the population in their homeownership journey.
