Written Answer by Ministry of National Development on income ceiling under the public rental scheme for HDB flats

Sep 2, 2019

Assoc Prof Walter Theseira: To ask the Minister for National Development: 
(a) whether the Ministry will review the income ceiling under the public rental scheme for HDB flats given that the latest Household Expenditure Survey shows that the average monthly expenditure in 1-2 room flats is now $1,545, which exceeds the present public rental income ceiling of $1,500; and
(b) what expenditure studies, surveys, or other evidence are used to determine whether the income ceiling under the public rental scheme remains relevant to contemporary household incomes and standards of living.

Answer:

HDB takes a needs-based approach for households applying for rental flats. $1,500 is used as an indication of income, because first-timer households with this income are able to buy a new flat with the help of our generous housing grants, and we want to encourage them to own their own homes. But this income figure is a guideline, and not a hard cap.  Households with income over $1,500 can still apply for rental flats. HDB will consider their individual circumstances to assess their housing budget and options. 

At the Committee of Supply earlier this year, MND shared that from 2016 to 2018, 590 households with incomes above $1,500 were assisted with public rental housing. Since then, from January to July 2019, about 170 more households have been assisted. HDB will continue to review the Public Rental Scheme regularly to ensure that it meets the housing needs of Singaporeans who are not able to purchase their own homes.