The government has no plans to raise the income ceiling for first-time buyers of HDB BTO flats, as confirmed by Minister for National Development Desmond Lee in a written parliamentary reply on 9 September 2024. This response was directed to Ang Mo Kio GRC Member of Parliament (MP) Gan Thiam Poh, who inquired if the government would consider a new category of HDB BTO flats for first-time applicants with joint incomes between S$14,000 and S$16,000. Gan had previously raised this issue in parliament in 2020.
## Background
The income ceiling for HDB BTO flats currently stands at S$14,000 per month for families and S$7,000 for singles. This cap is intended to ensure that the limited supply of new flats and the significant subsidies that come with them are prioritised for those who need them most, such as lower- to middle-higher income families. According to Lee, the current income ceiling covers about eight in 10 Singaporean households.
## Rationale behind income ceiling
Minister Lee elaborated on the government’s decision to maintain the income ceiling at S$14,000. “The income ceiling ensures that the limited supply of new flats and significant subsidies that come with such flats are prioritised for those who need them more, such as lower- to middle-higher income families,” he stated. This policy aims to make housing more accessible to a broader segment of the population, ensuring that those with higher incomes do not crowd out those with greater need.
## Other options for buyers
Gan Thiam Poh highlighted that some families with incomes between S$14,000 and S$16,000 might find executive condominiums too expensive. In response, Lee pointed out that these families have other options, such as purchasing resale HDB flats, which have no income ceiling. Additionally, families buying a resale HDB flat to live with or near their parents or children are eligible for the Proximity Housing Grant of up to S$30,000. Given these alternatives, Lee confirmed that there are no plans to create a new category of BTO flats for this income bracket.
## Related developments
The discussion around income ceilings for HDB flats is part of a broader conversation about housing affordability in Singapore. In recent years, the government has introduced various schemes and grants to assist different segments of the population in securing affordable housing. For instance, the Proximity Housing Grant aims to encourage extended families to live closer together, thereby fostering stronger family support systems. As the housing landscape evolves, the government continues to review and adjust its policies to meet the changing needs of Singaporeans.
