4,600 public rental households have moved to home ownership in the past five years: MND

Victor KangMay 11, 2021

Of these, 36% became home owners in less than five years, 32% moved into their own homes in five to 10 years, whilst the remaining 32% achieved home ownership after more than 10 years of living in public rental flats.

About 4,600 public rental households went on to acquire their own homes in the last five years, or around 2% of rental households each year, revealed the Ministry of National Development (MND) in Parliament on Monday (10 May).

Of these, 36% became home owners in less than five years, 32% moved into their own homes in five to 10 years, whilst the remaining 32% achieved home ownership after more than 10 years of living in public rental flats.

MND made the statement in response to MP Mariam Jaafar’s question on the proportion of public rental households, excluding those on interim rental housing who are waiting for the completion of their Build-to-Order (BTO) flats, that go on to acquire their own homes in three, five and 10 years.

The ministry also said less than 10% went on to have their own homes within three years as these households generally need more time to stabilise their financial or social situation before buying their own home.

Suggested read: Guide to Upgrading from an HDB Rental Flat to Owning an HDB Flat

“In addition, more than three quarters of the rental households who achieved home ownership bought subsidised BTO flats, which typically have a waiting time of at least three years.”

In the last five years, around 440 young adults aged 35 or younger who were previous occupiers of public rental flats also went on to rent another unit when they formed their own family nucleus.

Looking ahead, MND said it will continue “to support public rental tenants to buy their own homes, by providing generous grants, and one-to-one guidance from HDB’s Home ownership Support Team”.

“We will also continue to work closely with MSF and other partners under the Community Link initiative, to provide coordinated support to uplift families with children staying in public rental flats,” it added.

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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this story, email: victorkang@propertyguru.com.sg

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