Singapore moots increasing public housing supply as it looks to make it more affordable
- Minister for National Development Lawrence Wong said new measures would help more Singaporeans buy their first homes
- The measures include a new enhanced housing grant potentially worth tens of thousands of Singaporean dollars for eligible buyers
Minister for National Development Lawrence Wong said the measures would help more Singaporeans from lower- to upper-middle income households buy their first homes.
The Housing and Development Board, which is the body responsible for public housing, would probably have to increase supply in 2020 to meet the additional demand expected to stem from the changes, according to a joint statement from the board and the ministry.
In Singapore, most people live in so-called HDB flats as opposed to private apartments. There is a robust pipeline of the latter, with the government in June announcing it would reduce the supply of private housing in the second half.
The new measures, which do not apply to the private market, will come into effect on September 11.
They include the introduction of a new enhanced housing grant (EHG) that will be made available to eligible buyers regardless of whether they purchase a new or resale flat.
Eligible first-timer families will get an EHG of up to S$80,000 (US$58,000) when they buy a flat that can cover them and their spouses to the age of 95, subject to conditions.
Eligible first-timer singles aged 35 and above and earning not more than S$4,500 a month can also get an EHG of up to S$40,000, subject to conditions.
The monthly household income ceiling will be increased to S$14,000 from S$12,000 for eligible families to buy an HDB flat or a resale flat on the open market
