Review of Household Income Ceiling for Enhanced CPF Housing Grant for Purchase of HDB Resale Flats for First-Time Buyers to Enhance Housing Options for Young Couples.

The recent delays in getting BTO flats and the increase in prices of resale flats have affected young couples’ chances of securing houses within reasonable time to start families; especially those whose combined incomes are above $9,000 as they will not be entitled to Enhanced CPF Housing Grant. Based on feedback that I noted at our weekly MPS in Bukit Batok, I asked the Minister for National Development whether he is minded to increase the income ceiling for Enhanced CPF Housing Grant for these couples so that the option of purchasing resale flats are more viable for them. Minister however pointed to the fact that they still stand to receive up to $80,000 in grants. My question and his answer is reproduced below.

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Mr Murali Pillai asked the Minister for National Development whether the household income ceiling set in 2019 for the Enhanced CPF Housing Grant for purchase of HDB resale flats by first-time buyers may be reviewed upwards to enhance housing options for young couples.

Mr Desmond Lee: HDB is committed to helping Singaporeans, particularly first-timers and lower to middle-income families, own a home. The income ceiling helps to ensure that housing subsidies are prioritised for those who need them most.

In September 2019, the Government introduced the Enhanced CPF Housing Grant (EHG) to strengthen support for lower to upper-middle income households looking to buy their first home. Eligible first-timer families with a monthly household income of $9,000 or below may receive an EHG of up to $80,000, when they buy a new or resale flat, regardless of their choice of flat type and location. The EHG quantum is tiered by household income, to provide more support for lower-income households.

Nevertheless, first-timer families whose monthly household incomes are between the EHG qualifying household income of $9,000 and the subsidised housing income ceiling of $14,000, can still qualify for other housing subsidies. New flats sold by HDB are priced with a generous market discount, while those buying a resale flat may enjoy a CPF Housing Grant of up to $50,000 and a Proximity Housing Grant of up to $30,000.

The current housing subsidies provided to first-timer families with monthly household incomes between $9,000 and $14,000 are substantial and continue to provide these families with a variety of affordable housing options. As such, there are no plans to increase the EHG income ceiling at this juncture. Nevertheless, the Government will continue to monitor the housing market conditions closely to ensure that housing remains affordable and accessible for all Singaporeans, especially those planning to buy their first home