Ceiling on income up

THE monthly income ceiling for households wishing to buy flats of four or more rooms from the Housing Development Board in Singapore has been raised to S$8,000 (about HK$42,425).

The income ceiling for extended families had also been raised by $1,000 - from $11,000 to $12,000, said a report in the Business Times.

Acting Minister for National Development Lim Hong Khiang said that as a result of the income ceiling revision, 94 per cent of families in Singapore qualified to buy flats from HDB.

'It will ensure that those who are unable to purchase private property will continue to be able to purchase HDB flats.' However, the income ceiling for rental HDB flats remains at $800.

Mr Lim said the income ceiling revision increased the coverage of households by only two per cent, from 92 per cent under the previous guidelines.

The government did not expect a significant increase in future applications for HDB flats or the waiting period, he said.

Mr Lim said the housing board would not increase its supply of new flats 'as that would stretch the resources of the construction industry and may have unexpected results on the quality of the flats'.

He said lessees of HDB flats would not be compensated for the return of flats when their 99-year lease expired.