National Day Rally: Singles to also get BTO priority access to live with or near parents

BTO priority access shouldn’t be limited to married children as singles also want to live near parents: PM

Singles looking to apply for public housing in Singapore have received another boost from the Government — they will be allowed priority access to Build-To-Order (BTO) flats to live with or near their parents.

This comes as Prime Minister Lawrence Wong acknowledged that single children also want to stay close to their aged parents.

Singles concerned about housing: PM Wong

In his National Day Rally (NDR) speech on Sunday (18 Aug), PM Wong said singles are one of the groups that are concerned about housing.

Currently, they can buy BTO flats only after they have turned 35, and only 2R flexi units, he added.

While he has asked the Ministry of National Development (MND) what it can do for singles, it’s “hard” to make major near-term changes as they are still ramping up the supply of new flats.

BTO priority access shouldn’t be only for married children & parents but singles too

However, Mr Wong noted that married children and their parents get priority access to BTO flats to live with or near one another, under the Married Child Priority Scheme.

That means they have a better chance of being selected in the flat application ballot, and makes it easier for families to look after one another.

The PM said “we should not limit this to married children”, adding,

After all, many single children also want to stay close to their aged parents to take care of them.

BTO priority access extended to singles & parents from mid-2025

Thus, BTO priority access will be extended to all parents and their adult children — married or single, Mr Wong said.

This will happen from mid-2025.

More details of the move will be issued by MND later.

Enhanced CPF Housing Grant to be increased

Another group that needs help with housing is lower-income couples.

Currently, an Enhanced CPF Housing Grant of up to S$80,000 is available for first-timer families.

This grant will be increased, especially for the lower-income groups, Mr Wong said.

More details will be shared soon by Minister for National Development Desmond Lee.

PM pledges to keep S’pore public housing affordable

Mr Wong pledged that the Government would “always keep public housing in Singapore affordable” for young Singaporeans.

One way is by ramping up supply, which he noted has led to some improvements for first-time BTO applicants.

They are more likely to get a queue number and waiting times have also shortened, he said.

The authorities are also aiming to shorten waiting times for projects — currently around four years — by building ahead of demand.

Last year, the new HDB classification of Standard, Plus, and Prime flats was introduced, so Singaporeans can afford HDB flats in mature estates too.

The first batch of BTO flats under this new framework will be launched in October, the PM revealed.

Escalating HDB flat prices due to Covid-19

Mr Wong also addressed homebuyers’ concerns over the escalating prices of HDB flats.

He said this was due to the disruption caused to the construction industry by Covid-19, leading to the supply of new residential units slowing down and prices going up.

Since then, the Government has implemented market-stabilising cooling measures and ramped up supply.

By 2025, MND will deliver all the BTO projects delayed by Covid-19 — 100,000 new flats from 2021 to 2025, as it promised.

Govt tracking flat prices closely

Mr Wong said the Government is tracking flat prices closely, paying special attention to the House Price-to-Income (HPI) ratio.

In 2014, this was 4.8, i.e. the price of a four-room resale flat after grants was 4.8 times the median annual household income in Singapore.

This went down to 3.8 in 2019, just before Covid-19, but went up to 5 during the pandemic years. Last year, it was 4.8 — the same as it was in 2014.

Putting this in perspective, he added,

Our current House Price-to-Income ratios are in fact significantly lower than most major cities in the world be it London, Sydney or Hong Kong.

However, the Government knows there is still work to be done, and “we are pressing on with efforts to make HDB flats more affordable”, he stated.

Also read: 5-room Queenstown flat sold for S$1.73M, becomes S’pore’s most expensive HDB resale unit

5-room Queenstown flat sold for S$1.73M, becomes S’pore’s most expensive HDB resale unit

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Featured image adapted from Housing & Development Board on Facebook.