RAISING OF INCOME CEILING FOR ELIGIBILITY TO PURCHASE HDB FLATS

Dr Lily Neo asked the Minister for National Development whether he will soon be raising the income ceiling for eligibility to purchase Housing and Development Board flats from the present $8,000, which has not been reviewed since 1994, so as to help the younger and first-time applicants.

Mr Lim Hng Kiang: Some time last month, I asked HDB to review the $8,000 monthly income ceiling for the purchase of HDB flats. HDB has completed its review, and the findings are that the monthly incomes of some 90 percent of Singaporean households in the age band of 25 to 39 years fall below this income ceiling. HDB's study also shows that 94% of new applicants who applied for HDB flats in 1997 have household incomes below $6,000 a month. The current income ceiling of $8,000 is therefore still sufficient to meet the needs of the younger and first-timer families. There is no immediate need to raise the income ceiling for the purchase of HDB flats. However, HDB will exercise some flexibility to allow those with household income slightly above the income ceilings to apply for new HDB flats.

Those with incomes exceeding $8,000 per month are also not unduly disadvantaged by the current HDB income ceiling. They can buy resale HDB flats as these flats do not have any income ceiling. They can also buy Executive Condominiums, which have a higher monthly income ceiling of $10,000, or a private condominium or apartment according to their own preferences and financial capabilities. For the first-timers purchasing ECs or resale HDB flats, they are also eligible for the $40,000 CPF Housing Grant.