The Singapore government is set to reassess policies concerning the eligibility age for singles and the income ceilings for families looking to purchase Build-to-Order (BTO) flats. National Development Minister Chee Hong Tat highlighted that these changes will be made at the right time, ensuring that housing supply keeps pace with demand.
Reviewing Eligibility Policies
Currently, the income ceiling for couples and families is S$14,000 (approximately US$10,877), while singles must wait until they reach 35 years old to qualify for public housing. With plans to raise these thresholds, the government hopes to allow more Singaporeans to enter the BTO market.
- Chee emphasized the importance of maintaining a solid supply of BTO flats to handle any surge in applications.
- With a target of 55,000 new BTO flats from 2025 to 2027, the government plans to exceed its previous goal of 50,000 flats.
Addressing Housing Supply
Mr Chee also noted the government’s initiative to alleviate demand in the resale market by building more flats efficiently. After overcoming delays caused by the COVID-19 pandemic, the Housing and Development Board (HDB) plans to launch approximately 4,500 new units this year, with waiting times under three years.
Market Stabilisation Efforts
In response to rising resale prices, the government has imposed several cooling measures, including tighter lending restrictions. According to Mr Chee, these actions aim to ensure that the resale housing prices grow in line with income, moderating the volatility experienced in recent years.
- The latest data suggest a slowdown in price growth, with HDB’s resale price index showing its lowest quarterly growth in five years.
- The HDB anticipates stabilisation of prices starting next year as more flats reach the minimum occupation period.
Long-Term Housing Strategy
As part of a broader strategy, the government is set to review the 15-month wait-out period for private property owners wishing to buy non-subsidised HDB flats once the market stabilises. Chee stated that any adjustments would be made cautiously to prevent a repeat of past issues related to supply insufficiencies.
In light of global changes, such as US tariffs, Chee reassured the public that the government is monitoring potential impacts on construction costs. Collaboration with various partners is expected to ensure a secure supply chain and maintain affordable housing prices for Singaporeans.