PURCHASE OF HOUSING AND DEVELOPMENT BOARD FLATS

PURCHASE OF HOUSING AND DEVELOPMENT BOARD FLATS:

(Review of income ceiling): 4.

Mr Zaqy Mohamad asked the Minister for National Development (a) will the Ministry review the limits on the maximum income for the purchase of subsidised flats from the HDB; and (b) whether, in the HDB’s measure of affordability, it takes into account families which have illnesses to bear or aged parents to support, whether living with them or not.

Ms Grace Fu Hai Yien (for the Minister for National Development): The household income ceiling for the purchase of a subsidised flat by first-time flat buyers is $8,000 per month. For extended families buying a subsidised HDB flat to stay together, they will enjoy a higher household income ceiling of $12,000 per month.

The income ceiling is necessary to ensure that the Government’s limited public housing subsidies are given to those who need them more. It is already generous, as eight out of 10 Singaporean households will satisfy this income ceiling.

Families whose household income exceeds the income ceiling can buy resale HDB flats. Those with monthly household income of up to $10,000 can buy a new Executive Condominium (EC) unit with an EC Housing Grant.

Column: 936

Nonetheless, we recognise that there may be cases deserving special consideration. For example, the household income may exceed the income ceiling only marginally. Or although the household income exceeds the income ceiling, the family is in financial difficulty due to prolonged costly medical treatment needed by a family member. As it will not be possible for HDB to set a meaningful income ceiling that covers all extenuating circumstances, HDB exercises flexibility on a case-by-case basis to allow deserving cases to purchase a subsidised HDB flat.