HDB raises income ceiling for Special CPF Housing Grant

SINGAPORE — To help middle-income families afford their first home, the income ceiling for the Special CPF Housing Grant (SHG) has been raised from S$2,250 to S$6,500 a month for first-timers, including families buying four-room flats in non-mature estates, the Housing and Development Board (HDB) said yesterday.

According to the HDB, more than five in 10 households here have a monthly income of up to S$6,500.

Correspondingly, the SHG income ceiling for singles buying two-room Build-to-Order (BTO) flats under the Single Singapore Citizen (SSC) Scheme will be raised to S$3,250 from S$1,125.

The changes were announced by Prime Minister Lee Hsien Loong during the National Day Rally earlier this month, along with the new Step-Up CPF Housing Grant that will be given to families living in subsidised two-room flats who wish to upgrade to three-room units in non-mature estates.

Providing the details of the measures, the HDB said those applying for the Step-Up grant of S$15,000 must be in continuous employment for 12 months before the flat application and remain employed at the time of application — a condition similar to the SHG and the Additional CPF Housing Grant.

Nevertheless, the HDB reiterated that the resale levy policy will stay in order to maintain a “fair allocation of public housing subsidies between first- and second-timers”. Flat applicants in last month’s BTO exercise will be the first batch to enjoy the extended SHG and the Step-Up grant.

Speaking to reporters at the Toa Payoh HDB Hub, National Development Minister Khaw Boon Wan noted that the Government has “always been very targeted” at ensuring the lower-income families can afford two- or three-room flats.

“It is a major move ... going beyond the low-income to also what we call the middle-income,” he said. He added that the new SHG income ceiling of S$6,500 was “as good a level as one can set”.

PropNex Realty CEO Mohamed Ismail said that the new level income ceiling for the SHG “pleasantly surprised” him. It was “true to the concept of including the middle-income”, he noted.

Ms Christine Li, Head of Research and Consultancy at OrangeTee, said the measures represent a “fundamental shift in policy approach that takes us a step closer to being a more inclusive society”. She noted that the median monthly household income for the 41st to 50th percentile of households is S$6,800.

“It is very clear that the Government wants to ease the burden of the lower-middle and middle-income families to own their HDB flats,” said Ms Li, adding that the enhanced SHG could attract more middle-income couples to buy BTO flats instead of resale units.