Tag Archives: HDB

I THANK Mr Ng Kok Lim (’Do the criteria reflect reality?’), Mr Hoon Tze Ming (’Home affordability fails to factor in opportunity costs’) and Mr Chew Kim Cheer (’Solve key concern – soaring resale prices’) for their letters last Saturday.

As the public housing authority, HDB has two key responsibilities: to help Singaporean families set up their first home; and to ensure flat values for the 80 per cent of Singaporeans who are home owners are sustained over the long term.

To do this, HDB adopts a two-pronged approach. First, ensuring affordability for first-time home owners; second, calibrating new flat supply to meet demand.

AFFORDABILITY OF NEW FLATS IN NON-MATURE ESTATES

Affordability

THE Government provides generous housing subsidies. HDB flats are thus affordable by any measure. On average, first-time home buyers use only 17 to 29 per cent of household income for their loans, below the international benchmark of 30 per cent.

A first-time couple earning $4,000 a month buying a resale four-room flat at $300,000 will need only 25 per cent of their monthly income. Their Central Provident Fund (CPF) contributions ($920) will cover almost all of the instalment, with only $81 paid in cash. New flats are equally affordable. Continue reading →