Singles BTO scheme to benefit 8 in 10

More than 80 per cent of singles above the age of 35 are eligible to buy new Build-to-Order (BTO) flats, said National Development Minister Khaw Boon Wan, even as he revealed that the government might look at raising the income cap.

This follows Mr Khaw's announcement on Friday that first-timer singles earning $5,000 or less will be able to buy new two-room flats in non-mature estates directly from the Housing & Development Board (HDB) with effect from the July BTO exercise. The first BTO exercise for singles will be in Sengkang.


Responding to Lee Bee Wah, MP for Nee Soon GRC, who said she had received feedback from residents that they may not be eligible under the existing income cap, Mr Khaw stressed that 80 per cent of singles is not a small group. Indeed, the restriction is part of the first step, and he preferred to "start cautiously".

"If you set too high a salary ceiling, what it means is when you have to ration and through balloting, then it is luck of the draw and you may end up offering units to those who are earning $10,000 while depriving those who are earning $4,000 or $3,000 who may need it more badly and have fewer options," he said.

That said, if subscription rates are manageable, the government will definitely consider raising the income ceiling, said Mr Khaw.

Responding to a separate point raised by Ms Lee that some singles might prefer to buy three-room flats so that they can live with their parents, Mr Khaw said the ministry will need to assess the demand for two-room flats first before liberalising the scheme.

Those who wish to live with their parents can apply as a family unit for three, four or five-room BTO flats.

Currently, singles aged 35 years and above can buy HDB flats from the resale market, with about 4,000 doing so each year.

Said Mr Khaw: "So singles who earn more than $5,000, please be patient. You have waited for many years, and I have gingerly taken this first step."

Source: Business Times –12 March 2013