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S'pore implements housing policy changes

By Feily Sofian

/ HDB |

August 24, 2015 7:06 PM SGT

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The Ministry of National Development (MND) and the Housing & Development Board (HDB) have released details on several housing policy changes which were announced earlier by Prime Minister Lee Hsien Loong in his National Day Rally speech.

Helping families live together or close by

A new Proximity Housing Grant (PHG) will kick in from 24 August 2015 for couples who are looking to buy a resale flat with or near their parents, or parents looking to live near their married children. All Singapore citizen families who buy a resale flat to live with or near their parents or married child will receive PHG of $20,000. Eligible singles will also enjoy PHG of $10,000 if they buy a resale flat with their parents.

The PHG offers higher financial incentives compared to the Higher-Tier CPF Housing Grant, which will be discontinued. Previously, under the Higher-Tier CPF Housing Grant, eligible households would receive an additional grant of $10,000 if they buy a resale flat with or near their parents or married child. Meanwhile, eligible singles would receive an additional grant $5,000 if they buy a resale flat to live with their parents.

All Singaporeans are eligible for PHG once, regardless of a) whether they had enjoyed housing subsidies before, including the Higher-Tier CPF Housing Grant, b) their household income or c) ownership of private property. The grant recipients and their parents or married child must live with or in close proximity to each other for at least five years.

Raising income ceilings

With effect from 24 August 2015, the income ceilings for new HDB flats and resale flats with the CPF Housing Grant will be raised from $10,000 to $12,000. Similarly, the income ceiling for new Executive Condominium (EC) units with tiered CPF Housing Grant will be raised from $12,000 to $14,000.

Correspondingly, the income ceilings for single Singaporeans to buy new flats from the HDB or HDB resale flats with CPF Housing Grant will be raised from $5,000 to $6,000. Single Singaporeans who are at least 35 years old can buy new 2-room flats on 99-year leasehold tenure.

In addition, the income ceilings for elderly citizens to qualify for monetisation options, including the Lease Buyback Scheme (LBS), the Silver Housing Bonus (SHB) and short-lease 2-room Flexi flats, will also be raised from $10,000 to $12,000.

Helping lower and middle-income families afford their first home

To further help lower-income and middle-income households afford their first home, the maximum Special CPF Housing Grant (SHG) will be doubled from $20,000 to $40,000. In addition, the income ceiling for the SHG will be raised from $6,500 to $8,500. The new SHG is applicable for new flats launched from September 2015 onwards.

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