Written Answer by Ministry of National Development on quantitative and qualitative considerations in determining changes to the monthly household income ceiling for purchasing HDB flats and Executive Condominiums

Jul 5, 2022

Mr Chua Kheng Wee Louis: To ask the Minister for National Development what are the quantitative and qualitative considerations in determining changes to the monthly household income ceiling for purchasing HDB flats and Executive Condominiums, particularly as they relate to (i) incomes and (ii) prevailing housing prices, if applicable.

Answer:

1          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.         In 2019, due to rising incomes, we raised the income ceiling 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.         At the current income ceiling of $14,000, about 8 in 10 Singaporeans may buy a subsidised flat. There is no income restriction for the purchase of a non-PLH 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.