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, Deputy Prime Minister and Finance Minister Lawrence Wong said 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 too high today.
Under the revised Central Provident Fund Housing Grant, first-timer families buying two- to 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 $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 a higher CPF housing grant of up to $40,000 for four-room and smaller units, up from $25,000 before. Those who buy five-room units can get $25,000, up from $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 from 3.30pm on Tuesday will qualify for the increased grant. The additional amount will be credited into their CPF account from April 2023.
Those who had submitted resale applications before 3.30pm on Tuesday but are still awaiting completion will also be eligible for the higher grant. In a Facebook post on Tuesday, National Development Minister Desmond Lee said this will make it more convenient for those who otherwise may cancel their application and reapply to qualify.
A resale application can take up to 12 weeks to be completed.
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.
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 the four-room and larger BTO flat supply in both mature and non-mature estates are set aside.
However, Mr Wong noted that the first-timer category covers a wide range of applicants, including those who already have their own homes but have never received housing subsidies before.
“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,” he said.
This will be implemented later in 2023, with more details to be provided in March.
Commercial manager Iqbal Mohamed, 38, who is buying a two-room HDB resale flat in Punggol for $310,000 under the singles scheme, said the higher grant of $40,000 came at the right time. “The price for a two-room is a little expensive but looking at the current market trend, this is probably the cheapest I can get in the area. So I am happy with the increased grant amount as it will help reduce my monthly repayment,” he said.
Information security consultant Joseph Chong, 32, said the additional grant amount will allow him to take a smaller loan and leave more CPF savings for future retirement.
He and his wife are buying a four-room HDB resale flat in the Canberra neighbourhood for $600,000 and qualify for the increased $80,000 grant. They will receive more than $100,000 in grants to buy their first home after including the Enhanced CPF Housing Grant. “Although we were worried about the rising resale prices, we decided to go ahead with a resale flat rather than wait for a BTO flat, as it is a better alternative to renting. The grants make a difference to us as we will be able to keep some money in our CPF accounts rather than wiping them out,” he said.
