The government has announced that it will raise the monthly household income ceiling to S$5,000 from S$3,000 for first-time buyers of three-room Built-to-Order (BTO) flats in non-matured estates, a move that will be welcomed by many families in the lower-middle income bracket, said PropNex.
“About 20 percent of our population have a monthly household income of between S$3,000 and S$5,000,” said Mr. Adam Tan, Corporate Communications Manager of PropNex. “These people have previously been forced to buy a four-room or larger flat, which may be stretching their budget, especially considering the substantial price difference between three-room and four-room BTO flats.”
Mr. Tan cited BTO offerings in Sengkang on 28 February, when three-room flats cost approximately S$170,500, compared with S$275,500 for a four-room flat.
By giving lower-middle income residents the chance to buy three-room flats, they will have more freedom in dealing with other long-term financial commitments, such as medical bills, taking care of ageing parents and raising their children.
“It also makes sense for the income ceiling to be raised only in non-matured estates, as BTO flats in matured estates will be more costly anyway and would still be rather unaffordable for those targeted income brackets.”
Mr. Tan applauded the decision of the government to apply this measure to the recent BTO projects. “It means that the households which do earn between S$3,000 and S$5,000 a month can enjoy this new policy immediately.”