Although universally praised by experts in the industry, Prime Minister Lee Hsien Loong’s promise to make housing affordable to all working Singaporeans, especially middle-income households, drew mixed reactions from several professionals.
In his National Day Rally speech last Sunday, PM Lee pledged that families earning an income of S$1,000 per month can afford a two-room HDB flat. While the housing board will not bring down the prices of Build-to-Order (BTO) units, it will provide further support in the form of grants, including the existing Additional CPF Housing Grant (AHG).
There is also the extension of the Special Housing Grant (SHG) of up to S$20,000 to middle-income households looking to buy four-room flats, from just two- or three-room flats previously.
Dean Shams, a 40-year-old public relations consultant told PropertyGuru: “The government is making a concerted effort to bring HDB back to its true original mission – to make housing affordable for every Singaporean. The fact that singles can finally buy directly from HDB is a big paradigm shift with policy makers.”
“With singles being allowed to buy these flats, (the government is) making good on its promise that every Singaporean matters,” he added.
But others have their concerns. Writer Cheryl Tay who is in her 20s, said the SHG extension will help families earning not more than S$4,000 buy a four-room flat, but even if CPF is used to pay off the 25-year loan, it is still a protracted burden given the other necessities in life.
“Bearing in mind that the people encouraged to buy homes are young couples, preferably with children, in the long term this is not sustainable, as parents need to also account for healthcare, education and various other expenses,” Tay noted.
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Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
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