New Family Care Scheme gives singles priority for BTO flats from mid-2025

Singles applying for Build-To-Order (BTO) flats will get priority access when they buy a home near or with their parents under a new scheme that kicks in from mid-2025.

Currently, priority access is reserved only for married couples and their parents.

The latest move is meant to bolster intergenerational support among families, National Development Minister Desmond Lee said at a community dialogue session on Nov 6.

Mr Lee said parents and their children – regardless of marital status – will have priority access when they apply for new flats under the upcoming Family Care Scheme (FCS).

“We recognise that caring for one’s parents is important, regardless of whether you are married or single. In fact, adult children who are single tend to carry a heavier burden of caring for ageing parents,” Mr Lee said, speaking at The Frontier Community Club in Jurong West.

Prime Minister Lawrence Wong first announced the Government’s intention to open up priority access to singles during the National Day Rally in August.

The new scheme will combine three current priority schemes for married couples, parents and seniors, and will have two components.

The FCS (Proximity), which will be implemented in mid-2025, gives parents and their children priority access if they are applying for a new flat to live near or with each other. This will replace the Married Child Priority Scheme and Senior Priority Scheme.

The FCS (Joint Balloting) will allow parents and their children to apply for two units in the same BTO project, replacing the Multi-Generation Priority Scheme. It will be introduced in end-2025.

Mr Lee added that more details will be shared in due course.

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Asked about the percentage of flat supply set aside under the scheme, a Housing Board spokesman said more details will be provided closer to its implementation.

At present, up to 30 per cent of flat supply in a BTO launch is allocated to first-timer families under the Married Child Priority Scheme.

At least 40 per cent of two-room flexi flats are set aside for seniors, including those who apply under the Senior Priority Scheme to live near their parents or married child.

Under the Multi-Generation Priority Scheme, up to 15 per cent of two-room flexi flat or three-room flat supply is set aside for parents who wish to live in the same BTO project with their married child.

The HDB spokesman said the scheme will be implemented in two phases due to operational complexities and the need to introduce major system changes.

These moves come as the latest BTO sales exercise in October saw overwhelming demand from singles for two-room flexi flats, with over 26 single applicants vying for each of the 1,902 units.

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It was the first time that single home buyers could apply for two-room flexi flats across all locations. Before this, eligible singles could apply for such flats only in non-mature estates.

Mr Lucas Chua, 33, who is single, said the priority access was welcome as he plans to apply for a two-room flexi flat near his elderly parents who live in Clementi in the future.

“The application rate has been high among singles, so the priority scheme could mean a better chance for me to secure a flat near my parents so I can take care of them when they get older,” said the software developer.

Meanwhile, flash data from real estate portals Singapore Real Estate Exchange and 99.co on Nov 6 showed that HDB resale prices inched up by 0.3 per cent in October.

It also showed that a total of 103 flats changed hands for at least $1 million each, making up 4.8 per cent of total transactions in that month.

In his speech, Mr Lee also addressed concerns about rising prices in the HDB resale market, pointing out that million-dollar flat sales make up a “small minority” of all resale transactions.

These flats are typically maisonettes, executive apartments and jumbo flats, or five-room flats in good locations, he said.

He added that more flats with attractive attributes will enter the resale market in the coming years as new flats have been built in city fringe areas such as Dawson in Queenstown, Bidadari in Toa Payoh and parts of Kallang/Whampoa.

This will mean that there would be more of such “high-priced transactions” for such flats, he said.

“While this may be the case, our priority is to ensure that there is a diverse range of housing options across different locations and price points,” he said, adding that the Government will ensure that HDB flats remain affordable.

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More than eight in 10 first-timer families who bought new or resale HDB flats could service their HDB loans using their Central Provident Fund contributions, with little or no cash payments, he noted.

Mr Lee also said the new flat classification system, which sorts BTO projects into Standard, Plus and Prime categories based on their proximity to the city centre, transport connectivity and amenities, is meant to address the “lottery effect” of owning flats in prime and central locations.

Plus and Prime flats will come with stricter resale conditions such as a 10-year minimum occupation period and a subsidy clawback, which was set at between 6 per cent and 9 per cent in October’s sales exercise. HDB has said the subsidy recovery rate will vary at each launch.

“This new framework helps to ensure home ownership remains affordable, maintains a good social mix across Singapore, and keeps the system of allocating subsidies fair,” Mr Lee said.

This article was first published in The Straits Times. Permission required for reproduction.