HDB set to raise income ceiling

The Housing Board is set to raise the income ceiling from $8,000 to $10,000 to provide more housing options to those caught in the 'sandwiched group'.

The ceiling for buyers of flats under the Design-Build-and-Sell Scheme (DBSS) will be raised to $10,000, while the income cap for buyers of Built-To-Order (BTO) flats remains at $8,000.

The higher income ceiling will allow those caught in the 'sandwiched group' to qualify for both DBSS and executive condominiums, said Prime Minister Lee Hsien Loong, who announced the move at the National Day Rally.

“I think this group is quite anxious about falling in between, as they are not eligible for HDB and they can't afford private property. And because people are marrying a little bit later, so their incomes tend to be a little bit higher, so they worry that they will get promoted before they get settled. So we will do more to help them own their homes,” said PM Lee, who also said that the government will move to cool down the property market.

Buyers of a DBSS can take advantage of concessions given to EC buyers. They can qualify for a housing grant, as well as arrange their own financing. The new move will also open up several mid-priced units to the 'sandwiched group'.

On public housing, HDB will create 22,000 more BTO units in 2011, said PM Lee. “So if you miss one BTO, don't worry, the next one is coming… There are 22,000 new flats coming along and we don't have 22,000 new couples getting married in Singapore every year,” he said.

PM Lee added that HDB will intensify the construction of flats and reduce the three-year average waiting time. He also assured that HDB flats would be kept affordable for Singaporeans.