First-Time Buyers of BTO Flats in Mature Estates

Mr Pritam Singh asked the Minister for National Development on average, what percentage of their monthly income do first-time buyers of BTO flats in mature estates use to pay off their housing loans.

Mr Khaw Boon Wan: Flats in mature estates typically can command higher prices, as compared to those in non-mature estates. There is stronger demand as buyers are prepared to pay more for the locational and other advantages.

Nevertheless, with the market discount and subsidies provided by HDB, first-timers buying BTO flats in mature estates use about 30% of their monthly income to service their housing loans. This is still within the international benchmark on housing affordability.

First-timers looking for more affordable homes can opt to buy new flats in the non-mature estates, which is the mainstay of the BTO programme.