Housing Grants for First-Time Flat Buyers

Dr Intan Azura Mokhtar asked the Minister for National Development whether HDB will consider providing higher housing grants for first-time buyers of HDB flats regardless of whether it is a resale or BTO flat and whether this grant can be subject to a certain percentage of the purchase price rather than a fixed amount.

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Mr Khaw Boon Wan: We do review and adjust the housing subsidies regularly to ensure that HDB flats are affordable, especially for first-timer buyers. The most recent adjustment was last year when we introduced the Special CPF Housing Grant (SHG).

Currently, a low-income family buying their first Build-to-order (BTO) flat can enjoy housing grants of up to $60,000. These grants are on top of the substantial market discount they are already getting for BTO flats. For first-timers who buy resale flats, we have given housing subsidies of up to $80,000.

However, pegging the housing grant to a percentage of the purchase price of the flat would mean that a higher-income family who buys a more expensive flat would receive more housing grants than a lower income family who chooses a less expensive flat. This would not be equitable.

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