NDR 2024: Singles applying for BTO flats near parents to have priority; low-income couples to get higher grant

SINGAPORE: From the middle of next year, singles will be included in schemes that give priority to those applying for Build-to-Order (BTO) flats to live with or near their families.
More grants for lower-income couples and community care apartments for seniors are also in the works, announced Prime Minister Lawrence Wong on Sunday (Aug 18).
Housing was highlighted as an area of concern among Singaporeans in Mr Wong’s first National Day Rally speech, as he pledged to press on with efforts to make public housing affordable and accessible.
Mr Wong said he has asked the Ministry of National Development (MND) to see what more can be done to allay housing concerns among singles. Currently, singles aged 35 and older can buy new flats from the Housing and Development Board (HDB) but this only applies to two-room Flexi flats.
He admitted that any major near-term changes would be difficult as the government continues to ramp up the supply of new flats to catch up with demand. But “there is one move” it can make now – extend priority access to singles who want to live near their parents.
Under such priority schemes, applicants get a better chance of being selected in the computer ballot for flat applications. For example, couples can apply under the Married Child Priority Scheme for flats within a 4km radius of their parents’ home.
“Today, married children and their parents who are buying new flats to live with or near one another get priority access to BTO flats. We do this to make it easier for families to look after one another. I think we shouldn’t limit this to married children,” said Mr Wong. 
“After all, many single children also want to stay close to their aged parents to take care of them. So we will extend the priority access to all parents and their children – married or single.”
He added that MND will release more details of this policy change, which will take effect from the middle of 2025.
Lower-income couples looking to get their first homes will also get more help.
Under the Central Provident Fund (CPF) Housing Grant, first-timer families can get up to S$80,000 (US$60,700) to help with their new or resale flat purchases.
The grant will be increased “especially for the lower-income groups”, said Mr Wong, adding that National Development Minister Desmond Lee will announce more details soon.
“This is my assurance to all young Singaporeans: Once you start work and wish to settle down, we will make sure that there is an HDB flat that is within your budget in every region,” he said. 
“We will always keep public housing in Singapore affordable for you.”
The government has also been expanding housing options for seniors, in the form of community care apartments which integrate elderly-friendly housing with care and social services.
The keys to the first community care apartments – Harmony Village @ Bukit Batok, which consists of 169 units in a 15-storey block – will be handed over to residents later this year.
Mr Wong said more such projects that integrate housing with care will be launched. For seniors who prefer to age in place, authorities are also studying ways to improve existing homes and make them more senior-friendly.
“We will ensure everyone can age with dignity, security and peace of mind,” he said.
Problems with the housing market arose because of the COVID-19 pandemic and the disruption caused to the construction industry, Mr Wong said.
As the supply of new homes slowed, prices went up. The government has since implemented a series of cooling measures to help stabilise the market, alongside efforts to ramp up supply.
“By early next year, the backlog will be cleared,” said Mr Wong. “All the BTO projects delayed by COVID-19 will be completed and residents can collect their keys soon.”
MND had pledged to launch 100,000 new flats from 2021 to 2025. By December, more than 80,000 new flats would be delivered and all 100,000 units by next year, he added.
Mr Wong noted that the government’s efforts are “starting to stabilise the property market”.
“From time to time, we read media headlines about the prices of HDB resale flats. I know it’s a big concern for home buyers,” he said.
He added the government tracks these prices closely, especially how they move in relation to incomes or what is known as the house price-to-income ratio.
For example, the ratio of the median price of a four-room HDB resale flat after grants, against the median annual household income was 4.8 in 2014. This means the flat’s price after grants was nearly 5 times the annual income. 
This came down to below 4 over the years, but went back up to 5 with the effects of the pandemic.
The ratio is now at 4.8, same as what it was a decade ago, said Mr Wong. Compared with other major cities like London, Sydney and Hong Kong, Singapore’s current house price-to-income ratios are also “significantly lower”.
Still, he acknowledged there’s “work to be done” and authorities are pressing on with efforts to make flats more affordable by ramping up supply.
First-timers applying for BTO flats can already see some improvements, Mr Wong said, with increased chances of getting a queue number and shorter waiting times to book a flat.
The government aims to shorten waiting times for most projects – which are now around four years – by building ahead of demand. This means that over time, more BTO projects will have waiting times of less than three years, he said.
Special attention will also be paid to the BTO flats in mature estates where prices are often higher, reflecting the higher value of property in these choicer locations.
“We want to ensure that Singaporeans can afford HDB flats in these locations too,” he said, referring to the government’s decision to no longer categorise housing estates as mature or non-mature. Instead, flats will be classified Standard, Plus or Prime depending on their location and other attributes.
The first batch of BTO units under this new framework will be launched in October. This includes projects in many towns like Sengkang, Bayshore and Kallang-Whampoa, said Mr Wong.