Forum: Tie BTO income ceiling to financial need, not just pay
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I refer to the article “BTO income ceiling can be raised, singles’ eligibility age lowered when right conditions in place” “New private home sales lifted by flurry of launches before Hungry Ghost month, low interest rates”
I laud the Government’s intent to keep Build-To-Order flats affordable and accessible for genuine first-time home owners. However, the proposal to raise the income ceiling once again necessitates a closer look at who truly benefits from this change.
It is an open secret that for many Singaporeans, the property progression – from BTO to flipping the flat after its minimum occupation period to buying an executive condominium or private property – has become the “Singaporean dream”. This cycle is primarily driven by capital appreciation gained from a subsidised asset, the BTO flat.
If the income ceiling is raised, it will likely allow those who are already at the higher end of the current spectrum, and perhaps those with strong financial means and greater potential for saving, to access these subsidised flats. Given the high transaction volume in the private market, these individuals are demonstrably not lacking immediate housing options.
This leads to a critical question for policymakers: Given the strong demand for private housing, how will the Government determine the next income ceiling figure to ensure that priority for BTO flats goes to Singaporeans who genuinely need the financial support to secure their first home, rather than those seeking an early advantage in wealth accumulation?
Singapore must be careful that in trying to keep the BTO scheme inclusive, it does not inadvertently create a mechanism through which the rich are simply getting richer on the back of public housing subsidies. The criteria for the BTO income ceiling must be transparently weighted towards financial need, not just income growth.
Wong Keh Jing
