Oral Answer by Ministry of National Development on studies on the impact of rising public housing prices on marriage and fertility rates

Oct 4, 2022

Ms Hazel Poa: To ask the Minister for National Development whether the Ministry has conducted or will conduct studies on the impact of rising public housing prices on marriage and fertility rates.

Answer:

1        Many different factors affect marriage and fertility rates. These include shifts in societal norms and attitudes towards marriage and parenthood over time, and temporal factors such as the restrictions and disruptions caused by COVID-19. While we have not conducted studies on the impact of housing prices on marriage and fertility rates, our regular surveys and engagements indicate that many couples continue to aspire to have their own home before they start a family.

2        We recognise these aspirations and preferences. That is why public housing policies are designed to prioritise and support first-timer families to enable them to have their own home and start a family. For example, the vast majority of our BTO flat supply is set aside for first-timer families. The quota of 3-room and 4R BTO flats in non-mature estates set aside for first timer families was increased to 85% and 95% respectively. For mature estates, we continue to set aside 95% of BTO flat supply for first-timer families. First-timer families also have more ballot chances than second-timer families to improve their likelihood of securing a flat.  In addition, the Government has put in place various grants and measures to help Singaporean couples own their first home. Eligible first-timer buyers who buy new flats can enjoy an Enhanced CPF Housing Grant of up to $80,000, on top of the generous subsidies in new flat prices. Those who choose to buy a resale flat can enjoy housing grants of up to $160,000. In 2021, about 7,000 families received grants for their resale flat purchase.

3        We recognise the concerns of couples looking for their first home to start a family. To meet the strong housing demand, we have ramped up the supply of new flats to 23,000 new flats per year in 2022 and 2023, or a 35% increase from 2021. We are well on track this year, and homebuyers can look forward to 9,500 flats being offered in the upcoming November BTO launch exercise. We are prepared to launch up to 100,000 new flats from 2021 to 2025. We also endeavor to launch more projects with shorter waiting time of less than 3 years where possible.      

4        We continually review our policies to ensure that Singaporeans continue to have access to affordable public housing, and to support Singaporeans in owning their first home.