New measures to aid first-time HDB flat buyers

Come September, first-time HDB flat buyers will receive some help from the authorities with regards to purchases of both new and resale HDB flats.

Authorities’ move to help first-time buyers start families

HDB, 213 Bedok North Street 1. Picture: iProperty

In view of Singapore’s ageing population and local workforce, many government agencies have strategies targeted at helping young couples start and grow their families.

Prime Minister Lee Hsien Loong has said in his National Day Rally speech this year that they have ideas to “support couples to have more kids and keep HDB flats affordable”. National Development Minister Lawrence Wong has also said that his ministry and HDB will share more details about how they will be helping first-time buyers come September this year.

In lieu of these announcements, the HDB sales exercise for this quarter has been postponed to the next month. The upcoming exercise will feature 3,360 new HDB flats in Punggol and Tampines.

See moreAugust 2019 BTO – What We Know So Far

Policy changes have been in place since 2017

Since 2017, some policy changes have already been made in this capacity:

  • Up to $50,000 for resale flats, a $20,000 increase from the previous $30,000.
  • Allow young couples aged at least 21 to apply for grants to purchase a HDB flat without worrying about whether their limited income history will affect the loans and grants they are eligible for.
  • Shorter wait periods for new flats of 2 and a half years, almost half the previous wait period of 4 to 5 years.

Some young buyers will be looking forward to these new measures as the change in the amount of Central Provident Fund (CPF) monies that can be used for older resale flats meant that prices may have increased.

See moreMore buyers going for older resale HDB flats