Tag Archives: Income Ceiling

Income ceiling for 2-room flats in non-mature estates now S$5,000

With effect from yesterday’s Build-to-Order (BTO) launch, the income ceiling for two-room flats in non-mature estates has been raised from S$2,000 to S$5,000 — bringing it in line with the income ceiling for these units in mature estates.

In March last year, the Government raised the income ceiling for two-room flats in mature estates but decided against raising it for these flats in non-mature estates, citing the need to “safeguard” such flats for low-income families. Nevertheless, National Development Minister Khaw Boon Wan said earlier this month in a written parliamentary reply that the Housing and Development Board (HDB) was reviewing the income ceiling for two-room flats in non-mature estates.

ERA Key Executive Officer Eugene Lim said the move would alleviate the demand for three-room flats from small households earning more than S$2,000.

Separately, couples comprising a first-time buyer and a second-time buyer will now enjoy the same priority as a couple who are both first-time buyers, the HDB said yesterday. The priority for first-timer families includes a higher proportion of flat supply set aside for them, additional ballot chances and eligibility for schemes such as the Parenthood Priority Scheme and Parenthood Provisional Housing Scheme.

The change will help singles who subsequently marry after buying a two-room BTO flat to buy their new matrimonial flat. It will also benefit reconstituted families comprising a first-timer and a second-timer applicant, such as divorcees who remarry, the HDB said.

Mr Colin Tan, head of Research and Consultancy at Chesterton Suntec International, said the size of the group of potential beneficiaries is small and he did not expect any impact on the chances of first-time couples.

Source – 31 Jul 2013 – Today

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Apply new ceiling retrospectively

Letter from Alvin Eng

I REFER to the report, “Strike balance when reviewing HDB income ceiling” (May 31).

Indeed, it is important that the Housing and Development Board (HDB) strike a balance when recalibrating the income ceiling.

Just as setting it too low would render the exercise cosmetic, setting it too high could result in a surge in housing demand which could, in turn, push up prices, thereby neutralising the move.

What the article omitted, however, is the equally important need to strike a balance with respect to the timing of when the revised policy would be effective.

Young couples priced out of the private housing market due to the recent rally would have had to turn to buying HDB flats.

But some of them may have a combined income that just breached the existing ceiling (not unusual for two professionals who have worked a few years) and are, therefore, ineligible to buy HDB flats directly or receive the housing grant.

Thus, whilst reviewing the income ceiling, the HDB should consider retrospectively applying the new policy, say to Jan 1 this year, so as to allow this group to also benefit from the Government’s housing policy.

Source : Today – 1 Jun 2011