Hi friends! I recently gave a parliamentary speech on Singapore's public housing. I suggested how we can better support first-time applicants who really need a home; and how to better spread demand for housing in mature vs non-mature estates.

I also spoke briefly, on a proposal by NCMP Mr. LMW to reduce the cost of a Tengah flat from say $350k to $140k (but have to claw back land costs plus interests, upon sale of one's flat).

To clarify, I did not mean it will take only 1 to 2 years' time to fully pay for a $140k flat. I meant it will take about 1 to 2 years’ Annual Salary to pay for a HDB flat that's priced at $140k.

Illustration:

Assume a couple each earns around $3k per mth or $6k in total, then their:

1 year’s combined salary = $72k ($6k X 12 mths)

2 years’ combined salary = $144k ($6k X 12 mths X 2)

HDB currently prices BTO flats at a “House Price to Annual Income” Ratio of 4 to 5 TIMES. For a 3-room flat, 4 TIMES annual Income. For the bigger 4-room and 5-room flat, about 5 TIMES annual income. Non-mature estates.

There is a further discount if a couple earns less than $3k each, through an existing HDB EHG Grant scheme. If a first-timer couple earns less than $1.5k per month, they can get the maximum $80k HDB EHG grant, providing a further discount.

HDB loans are often paid over a stretch of 20 to 30 years, subject to one using only 25% or less of one’s monthly income to service the loan.

Hope this clarifies.

BIG THANKS to friends who cared and brought this to my attention for clarification.

BTW, if you are interested to find out more about how HDB BTO prices are set, do check out www.hdb.gov.sg and MND Minister Desmond Lee's parliamentary speech on 6 Feb 2023.

Have a blessed weekend!

Denise