MP Louis Chua Suggests That HDB Allow Singles To Buy BTO Flats At 28 Instead Of 35
Reiterating a call made by Leader of the Opposition (LO) Pritam Singh in March, Sengkang GRC MP Louis Chua has asked the Housing & Development Board (HDB) to consider lowering the Build to Order (BTO) age limit for singles to 28.
Pritam Singh Suggests Letting Single S’poreans Buy HDB Flats At 28 Instead Of 35
Currently, singles can only buy a BTO flat at age 35.
He argued that his proposal would still allow HDB to give priority to providing for families and that it would reflect society’s diversity.
Affordability a concern for singles who wish to buy their own HDB flats
In his Parliamentary speech on Tuesday (13 Sep), Workers’ Party (WP) MP Louis Chua highlighted the importance of costs for singles looking for a home:
Affordability is… a key consideration when it comes to meeting singles’ housing needs.
He pointed out that singles cannot access several financial support grants to buy a flat, except for smaller BTO units in non-mature estates.
Those below the age of 35 who want a place of their own only have two options:
- buy a private property, which is significantly more expensive
- or rent a flat
But Mr Chua said many singles lose out in the rent market as the median rate for a 3-room HDB flat is about S$2,000 a month.
This is essentially the entire take-home salary of a polytechnic graduate today.
On the other hand, a BTO 2-room flexi flat is more affordable, as the monthly repayment over 25 years would only be S$400 monthly.
Policies & data trends have changed over the years
There is also a precedent by the Government when it comes to home ownership for singles, Mr Chua said.
He claimed that the “original rationale” for excluding singles from HDB flat ownership was to prioritise BTOs for families to optimise the use of space in land-scarce Singapore.
Additionally, singles owning homes is supposedly inconsistent with the Government social policy of encouraging marriage and preserving the traditional family unit.
But over the years, the authorities have gradually relaxed the rules — first by allowing singles over 35 to buy resale HDB flats in 1991.
Then, in 2013, they could buy new, two-room HDB flats.
The changes prove that the Government can be responsive to changing societal demographics, Mr Chua said.
However, he noted that singles below 35 are still unable to own their own HDB flats despite the adjustments.
He also pointed out that since 1991, Singaporeans have either been staying single longer or aren’t necessarily moving from their parents’ home into a matrimonial home.
According to Mr Chua, such individuals likely wish to have a space of their own without resorting to marriage.
But he also said that this doesn’t mean they don’t want to get married eventually.
Contrary to popular belief that the younger generation is eschewing marriage, surveys have shown that many single Singaporeans still want to get married.
Mr Chua shared that marriage rates have remained consistent over the past 20 years. In 2021, they even increased from 43.3 to 45.3 for males and 40.2 to 44.2 for females.
Current policy sends signal to single Singaporeans
More young people are also moving out of their parents’ homes before marriage. Citing data from the Singapore Department of Statistics, Mr Chua explained that almost twice as many people below 35 have been staying alone between 2017 and 2020.
However, a significant number who wish to do so may not be able to afford it and thus continue to live with their families.
Moreover, Mr Chua noted that current policy deems single Singaporean singles’ marital status as somehow “undesirable and undeserving of Government support for home ownership”.
Making his point that singles should deserve a fair chance, Mr Chua asserted that past BTO exercises show that singles don’t compete with young couples and families for “the same type of flats in non-mature estates”.
The latter tend to apply for 3-room or larger BTO flats while the former can only buy 2-room flexi units.
The application rate for 2-room flexi flats among first-timers has consistently been less than 1x. In contrast, there have been multiple instances of constant oversubscription for 3-room or larger BTO flats.
Therefore, lowering the age limit for BTO ownership would have minimal impact on young couples’ likelihood of securing a flat.
More flats for singles in non-mature estates
In response to Mr Chua, Senior Minister of State for National Development Tan Kiat How said that the Government has expanded housing options for singles over the years.
This includes setting aside more 2-room Flexi BTO flats in non-mature estates for first-timer single applicants.
But he said the Ministry of National Development will continue to engage Singaporeans on their housing needs and aspirations as part of the Forward Singapore exercise.
Those who wish to participate in the engagement session on 25 Sep may register here.
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