From mid-2025, singles and their parents purchasing new flats to live with or near one another will get priority access to Build-to-Order (BTO) public housing units.
Lower-income couples will also receive more housing grants for their first home, Prime Minister Lawrence Wong announced on Sunday (Aug 18).
In his first National Day Rally speech since becoming Singapore’s fourth prime minister on May 15, 2024, Mr Wong highlighted housing as a concern among Singaporeans while reiterating the government’s commitment to make public housing affordable and accessible.
Currently, singles aged 35 and older can buy new flats from the Housing and Development Board (HDB) but this only applies to two-room Flexi flats.
While he acknowledged the concerns that singles have on housing, Mr Wong said any major near-term changes would be difficult as the government continues to ramp up the supply of new flats to meet demand. But “there is one move” it can make now – extend priority access to singles who want to live near their parents.
Under the Married Child Priority Scheme, applicants get a better chance of being selected in the balloting process for flat application if they apply for flats within a 4km radius of their parents’ home. Up to 30 per cent of the flat supply in a BTO launch is allocated to first-timer families under this scheme.
Mr Wong said: “I think we shouldn’t limit this to married children. After all, many single children also want to stay close to their aged parents to take care of them. So, we will extend the priority access to all parents and their children – married or single.”
The Ministry of National Development (MND) will provide more details later.
The government has been expanding housing options and grants for singles over the years. This latest move signifies an evolving approach towards Singapore’s housing policies that recognises the challenges that single Singaporeans face.
All these years, PAP Members of Parliament have been advocating for singles on housing. This includes current MPs like Rachel Ong, Joan Pereira, and Lim Biow Chuan and Senior Minister of State Zaqy Mohamad, as well as former MPs like Dr Chia Shi-Lu and Er Dr Lee Bee Wah.
They had previously called on the government to allow singles to purchase HDB resale flats from the Prime Location Public Housing (PLH) scheme, to allow singles under 35 to purchase public housing, and others.
More help for lower-income households
Lower-income couples buying their first Housing Board flat will also get more help from the PAP government.
Currently, all first-time applicants get an enhanced Central Provident Fund (CPF) housing grant (EHG) of up to $80,000 to help with their new or resale flat purchases. As of 19 August, the government will provide more support, with the housing grant increased to up to $120,000.
The grant will be increased “especially for the lower-income groups”, said Mr Wong, adding that National Development Minister Desmond Lee will announce more details soon.
Mr Wong cited different scenarios of how young couples can tap grants to help with their BTO purchases.
For instance, a couple with a combined monthly income of $7,000, who wants to buy a four-room BTO flat in Bayshore, can get $25,000 under the EHG, he said.
The unit, which falls under the Plus category, costs $580,000.
The couple would be able to service their HDB loan with CPF contributions, with minimal cash payments.
Another couple with a lower income of $4,000 a month will get a higher grant of $55,000. They can finance a three-room Standard flat in Sengkang – priced at about $300,000 – with their CPF savings, he said.
A three-room flat in Bayshore would be “more of a stretch for them financially”, said Mr Wong. This is why the Government intends to boost support that couples receive under the EHG.
“This is my assurance to all young Singaporeans: once you start work and wish to settle down, we will make sure that there is a HDB flat that is within your budget, in every region.”
“We will always keep public housing in Singapore affordable for you!” he added.
Xie Yao Quan (Jurong GRC), who sits on the Government Parliamentary Committee for National Development, said: “Increasing housing grants for lower-income couples will further improve housing affordability for lower-income families. This will enable them to raise children in stable home environments and keep social mobility alive in Singapore.”
Expanding housing options for seniors
The government has also been expanding housing options for seniors, Mr Wong said.
In 2020, the authorities announced community care apartments in Bukit Batok for residents aged 65 and above. These apartments integrate elderly-friendly housing with care and social services.
The keys to the first community care apartments – Harmony Village @ Bukit Batok, consisting of 169 units in a 15-storey block – will be handed over to residents later this year. The government will launch more such projects, “integrating housing with care,” he added.
For seniors who prefer aging in place, authorities are also studying ways to improve existing homes and make them more senior-friendly. “We will ensure everyone can age with dignity, security and peace of mind,” he said.
Saktiandi Supaat (Bishan-Toa Payoh GRC) said: “Many seniors live in Toa Payoh East. I look forward to the government’s plans to better enable seniors to age in place, and integrate their housing needs with care services. I also hope the government can ramp up the building of community care apartments in more areas, including mature estates like Toa Payoh.”
Shorter waits for BTO flats
PM Wong said the Covid-19 pandemic had caused disruption to the construction industry. This led to the supply of new flats slowing down and the rise in housing prices.
The Government has since implemented cooling measures to help stabilise the market and ramp up supply, he added.
“By early next year, the backlog will be cleared – all the BTO projects delayed by COVID-19 will be completed.”
MND had previously committed to launching 100,000 BTO flats from 2021 to 2025. By December, more than 80,000 new flats will be delivered and all 100,000 units by next year, PM Wong said.
“First-timers applying for BTO flats can already see some improvements. They are more likely to get a queue number. Waiting times to book a flat have also shortened.”
The waiting time for most BTO projects is now around four years, Mr Wong added. But the government aims to shorten this by “building ahead of demand”.
“Over time, more BTO projects will have waiting times of less than three years.”
The first batch of BTO projects under the new flat classification will be launched in October this year, he said. This includes projects in many towns like Sengkang, Bayshore and Kallang-Whampoa.
Mr Wong also announced plans to build residential projects in new precincts along the waterfront like Tanjong Rhu, Marine South and Marina East. Mr Saktiandi said that this is welcoming news, especially for young Singaporeans as they have more housing choices instead of what they deemed “ulu” places (towns that are more remote).
On the price of resale flats, Mr Wong said the government tracks these prices closely, especially how they move in relation to incomes or what is known as the house price-to-income ratio. For example, the ratio of the median price of a four-room HDB resale flat after grants, against the median annual household income was 4.8 in 2014.
This means the flat’s price after grants was nearly five times the annual income. This came down to below 4 over the years, but went back up to 5 with the effects of the pandemic.
“To put this in perspective, our current house price-to-income ratios are significantly lower than most major cities in the world like London, Sydney and Hong Kong,” he said.
