Removing income ceiling for new HDB flats will drive up demand

Recently, National Development Minister Khaw Boon Wan floated a radical idea to remove the income ceiling for new HDB flats.

Some industry players said the suggestion would make public housing even more accessible to Singaporeans, but could raise some concerns.

Currently, the household income ceiling for new Built-to-Order flats is S$10,000 and for executive condominiums S$12,000.

Analysts said removing the income ceiling would definitely drive up demand for new HDB flats as more people would be eligible to buy them.

That, in turn, would crimp demand for entry-level private condominiums.

Apart from obvious impact on the property market, analysts said it would have implications on how the government re-distribute wealth to Singaporeans too.

DWG’s senior manager of training, research and consultancy, Lee Sze Teck, said: “Your service and conservancy charges rebate or even Workfare Income Supplement to the lower income families and all these are actually tied down to the annual value of the home.

“When you remove the income ceiling, we are talking about people who are well to do, coming into the HDB market and getting financial assistance in this way. What will be the impact on society?

“What will those needy or who are at the the lower end of the income group think of such a move?”

Source : CNA


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