Singapore - First-timers buying Housing Board resale flats will get more help, with a housing grant increased by $30,000 for families purchasing four-room or smaller units and by $10,000 for those buying five-room or larger units.
An additional Build-To-Order (BTO) flat ballot will be given to families with children and young married couples aged 40 and below who are buying their first home, as the Government moves to help more Singaporeans in their home ownership journey.
These measures are to support the housing aspirations of young Singaporeans, said Deputy Prime Minister and Finance Minister Lawrence Wong in his Budget speech on Tuesday.
He noted that some Singaporeans are prepared to buy resale flats for their first home but find resale prices today too expensive.
Under the revised CPF Housing Grant, first-timer families buying two-room, three-room or four-room HDB resale flats can now get $80,000, up from the previous $50,000. Those who buy five-room or larger units can get $50,000, up from the previous $40,000.
To be eligible for the grant, families must comprise at least two Singapore citizens or one Singaporean and one Singapore permanent resident. They must not have received any housing subsidies before, do not have a monthly income of more than $14,000 and do not own or have an interest in a private property in the last 30 months prior to the flat application.
First-timer singles buying HDB resale flats will also get higher CFP housing grants of up to $40,000 for four-room and smaller units, an increase from $25,000 before. Those who buy five-room or larger units can get $25,000, up from the previous $20,000.
First-timer singles refer to Singapore citizens aged 35 and above who have not received any housing subsidies before, do not have a monthly income of more than $7,000 and do not own or have an interest in a private property in the last 30 months prior to the flat application.
Eligible buyers who submit their resale applications on or after 3.30 pm on Feb 14 will qualify for the increased grant. The additional grant amount will be credited into their CPF account from April 2023 onwards.
First-timers buying HDB resale flats can also tap the Enhanced CPF Housing Grant, which gives up to $80,000 in grants for families and $40,000 for singles, as well as the Proximity Housing Grant of up to $30,000 for families and $15,000 for singles.
In all, first-timer families can receive up to $190,000 in grants when buying a resale flat. First-timer singles can receive up to $95,000 in grants.
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Noting that the Government has implemented cooling measures to moderate demand in the resale market, Mr Wong said the launch and completion of more BTO projects over the next few years will further ease demand and resale flat prices.
Currently, the bulk of the BTO supply is set aside for first-timer families who are given priority for their flat application. At least 95 per cent of four-room and larger BTO flat supply in both mature and non-mature estates are set aside for first-timer families.
However, Mr Wong noted that the first-timer category covers a wide range of applicants. Those who already have their own homes but have never received housing subsidies before are also considered first-timers.
“Given this wide range of first-timer applicants and the current tightness in BTO supply, we should identify and provide more support to specific groups,” said Mr Wong.
The focus is therefore on first-timer families with children and young married couples aged 40 and below who are buying their first home, he added.
“We will do more to help such families secure their BTO flats in a timely manner, including by giving them an additional ballot for their BTO flat applications,” said Mr Wong.
This will be implemented later in 2023, with more details to be provided when Parliament debates the Ministry of National Development’s budget in the coming weeks.
This article was first published in The Straits Times. Permission required for reproduction.
