NDR: PM Wong announces singles will get BTO priority to live near families

SINGAPORE: Starting in mid-2025, singles will be eligible for priority in Build-to-Order (BTO) flat applications aimed at living with or near their families, as announced by Prime Minister Lawrence Wong on Sunday (18 August).

Addressing housing concerns among Singaporeans in his first National Day Rally speech, PM Wong also announced additional support for lower-income couples seeking to purchase their first homes.

Under the Central Provident Fund (CPF) Housing Grant, first-time families can currently receive up to S$80,000 (US$60,700) to assist with the purchase of new or resale flats.

He noted that he has requested the Ministry of National Development (MND) to explore additional measures to address housing issues faced by singles.

Currently, singles aged 35 and older can purchase new flats from the Housing and Development Board (HDB), but this option is limited to two-room Flexi flats.

PM Wong acknowledged that implementing major near-term changes would be challenging as the government works to increase the supply of new flats to meet demand.

However, he mentioned that one immediate step could be extending priority access to singles who wish to live near their parents.

Priority schemes improve applicants' chances in the computer ballot for flat applications.

For instance, couples can apply under the Married Child Priority Scheme for flats within a 4km radius of their parents' homes.

“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 assured that MND will provide more details on this policy change, which is set to take effect in mid-2025.

Under the CPF Housing Grant, PM Wong announced that the grant will be increased “especially for the lower-income groups,” with NMD Minister Desmond Lee set to provide further 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,”  PM Wong stated.

“We will always keep public housing in Singapore affordable for you.”

The government is also expanding housing options for seniors through community care apartments, which combine elderly-friendly housing with care and social services.

The first of these, Harmony Village @ Bukit Batok, featuring 169 units in a 15-storey block, will see its keys handed over to residents later this year.

PM Wong mentioned that more such projects integrating housing with care will be launched.

Additionally, for seniors who prefer to age in place, authorities are exploring ways to improve existing homes to make them more senior-friendly.

Singapore's House Price-to-Income Ratios Significantly Lower Than Major Cities: PM Wong

PM Wong attributed the surge in housing prices to disruptions caused by the COVID-19 pandemic, noting that the government has implemented cooling measures and increased supply to stabilize the market.

PM Wong assured that the backlog will be cleared by early next year, "All the BTO projects delayed by COVID-19 will be completed and residents can collect their keys soon.”

MND had committed to launching 100,000 new flats from 2021 to 2025. By December, over 80,000 new flats are expected to be delivered, with all 100,000 units available by next year, he added.

PM Wong noted that the government’s efforts are “starting to stabilize 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 the government monitors these prices closely, particularly how they relate to incomes, or the house price-to-income ratio.

For example, the ratio of the median price of a four-room HDB resale flat, after grants, to the median annual household income was 4.8 in 2014. This means the flat’s price after grants was nearly five times the annual income.

This ratio decreased to below 4 over the years but rose back to 5 due to the pandemic’s effects.

The current ratio is 4.8, the same as a decade ago, PM Wong said, adding that Compared to major cities like London, Sydney, and Hong Kong, Singapore’s current house price-to-income ratios are also “significantly lower.”