Qualifying Income Ceilings For Public Housing Raised

[therat 18]

http://www.channelnewsasia.com/stories/singaporelocalnews/view/1146987/1/.html

SINGAPORE: The government will raise the qualifying income ceilings of households for HDB's Build-To-Order (BTO) flats and Executive Condos (EC), said Prime Minister Lee Hsien Loong in his National Day Rally speech on Sunday evening.

The qualifying income ceilings of households for BTO flats will be increased from the current S$8,000 to S$10,000, and for ECs from the current S$10,000 to S$12,000.

Prime Minister Lee Hsien Loong made the announcements in his National Day Rally speech on Sunday evening.

He said HDB will also build another 25,000 BTO flats next year to meet demand and keep prices of new flats stable and affordable.

The government will also be adding 7,000 rental units over the next two years and postponing demolition of some SERS blocks to be used as temporary rental units.

Mr Lee said the moves will ease the waiting time for needy Singaporeans who require rental flats.

The prime minister also made the commitment to keep housing available and affordable for Singaporeans.

- CNA/al

[Mondy 0]

I am so glad to have a selection date this month.

The numbers chasing after flats will certainly be overwhelming with these revisions.

[gimz63251073 0]

well, now HDB will present its "affordability" using the CPF contribution for 10k salary.

See, now HDB is so affordable. So stop complaining hor...

[therat 18]

http://news.omy.sg/News/Local%2BNews/Story/OMYStory201108151242-267732.html

Khaw: New HDB income ceiling to take effect from today

Minister for National Development Khaw Boon Wan said the revised income ceiling will take immediate effect today.

He also said there will be a record launch of 8,000 flats by HDB in September. Of these, 5,500 will be build-to-order flats, and 2,500 will be from sale of balance flats.

The HDB has also raised the ceiling for elderly folk eligible for studio apartments from $8,000 to $10,000 and from $3,000 to $5,000 for singles to enjoy a housing grant. This grant is also raised from $11,000 currently to $15,000.

Prime Minister Lee Hsien Loong had earlier announced the income ceiling changes at the National Day Rally on Sunday night.

[liewsc 0]

New or resale HDB income ceiling raise to SGD$10K... estimation of 700 to 2000 new eligible buyers switch from private to HDB per year. Dont think the price will go down any sooner.

http://www.hdb.gov.sg/fi10/fi10296p.nsf/PressReleases/3F7F3B2BDD45CE64482578ED0009B240?OpenDocument

Raise the Income Ceilings for Citizen Households and Singles

6 To provide additional affordable housing options for more citizen households, HDB will raise the monthly income ceiling from $8,000 to $10,000 for the following:

a. Purchase of new flats from HDB;

b. Purchase of resale flats with CPF Housing Grant;

c. An HDB loan for the purchase of a new or resale flat.

“We estimated a probable five percent to 15 percent equivalent to 700 units to 2,000 units decline in annual new housing demand in the private market provided public housing supply keeps pace with the increase demand by this group of new eligible buyers,” said Dr. Chua Yang Liang, Singapore Head of Research and Consultancy at Jones Lang LaSalle.

http://www.propertyguru.com.sg/property-management-news/2011/8/30989/govt-raises-income-ceiling-for-hdb-flats

[gimz63251073 0]

HDB prices unlikely to go down unless the BTO system is removed.

Even in a economic recession, where flats get re-possessed, HDB simply stop building for a few yrs. Wait for economy to recover, prices shoot north again.

So if you are waiting for prices to drop due to increased supply, happy waiting!

My guess is the $8k - $10k salary group would be the more picky ones and go for better locations or amenities. Hence, it does have limited impact on the market as a whole as their approach would be more targetted. (unless they are desperate). Just my guess though, we shall see how the balloting goes in Sept.

[godloveyou 0]

Seow, why set the capping there in the first place??

To "punish" those "rich" 1st timer?? Or gov doesn't want to "subsidise" those rich 1st timer?

So, when you are not so "rich", better apply for BTO/EC quick.

"Policies" are set to benifit ppls, but look like these are being manipulated to "shield" the policy makers from harm but at expenses of "rich" 1st timer.

"Rich" 1st timers have rights to protect against this unfair treatment, right?

Edited August 15, 2011 by godloveyou

[neubie 2]

http://business.asiaone.com/Business/News/Story/A1Story20110816-294661.html

Income ceilings raised for singles

By David Lim

MORE singles can now buy resale Housing Board (HDB) flats as the income ceiling for those who qualify has been raised.

This group of buyers will also receive more financial help from the Government, in terms of housing grants. The income ceilings for two other groups of buyers - families and the elderly - have also been lifted so that more will qualify for an HDB flat.

These new measures, implemented with immediate effect, were announced yesterday by National Development Minister Khaw Boon Wan during his first visit to the Pinnacle@Duxton.

Singles aged 35 or older who have a monthly income of up to $5,000 are now eligible for a Central Provident Fund housing grant of $15,000, along with a HDB concessionary loan, when they buy a resale flat.

Previously, the income criterion for this group was capped at $3,000 and the housing grant was $11,000.

For singles who want to buy an HDB resale flat with another single person, the joint income ceiling has been raised to $10,000, up from $8,000 previously. Their total housing grant also gets bumped up to $15,000 from $11,000.

As for singles who wish to buy a resale flat with their parents, the income ceiling has been lifted to $10,000 from $8,000. The housing grant for this group of buyers remains the same, at $20,000.

On the rationale to revise the income ceiling for singles, Mr Khaw said: "(The rise) takes into account the salary adjustment over the years and it's a reasonable adjustment. Don't you agree?"

He also gave more details on changes made to the income ceilings for those buying build- to-order (BTO) flats and new executive condominiums (EC), which were announced by Prime Minister Lee Hsien Loong during his National Day Rally speech on Sunday.

The household income ceilings for BTO flats and ECs went up from $8,000 to $10,000 and from $10,000 to $12,000, respectively.

Explaining the revision, Mr Khaw said that applicants for BTO flats are "now quite different from several years ago".

He said: "People are marrying later and, with that, (comes) salary adjustment. (Hence,) the salary ceiling needs to be adjusted to take that into account."

For couples with a combined income close to the previous cap of $8,000 - where a pay rise would have disqualified them from buying a BTO flat - the new ceiling is a welcome relief.

Civil servant Gabriel Seow, 31, and his fiancee, Ms Melody Tan, 25, a marketing executive, whose combined income is close to $7,500, are one example. He said: "I think there is a need to (raise the ceiling) as private housing has become unaffordable for those earning $10,000."

Yesterday, Mr Khaw also announced changes to the housing grant for first-time EC buyers, which is now tiered according to their household income.

Eligible households with a combined monthly income of not more than $10,000 will continue to receive the current CPF housing grant of $30,000.

If the combined income is between $10,000 and $11,000, the grant offered is $20,000. Households with income of between $11,000 and $12,000 will get $10,000 in grant.

Responding to a question on the tiered grants, Mr Khaw said in Mandarin: "I think it's very fair. If you have a higher salary, the subsidy that you need is not as high as what those who have lower incomes need."

For the elderly, the income ceiling for buying a studio apartment has been raised to $10,000, up from $8,000.

Mr Khaw also said that HDB will launch 5,500 BTO flats next month and 4,000 BTO flats in November in towns like Punggol, Sengkang, Hougang and Jurong East.

Next month's launch will be complemented by the launch of at least 2,500 surplus flats. This means a record 8,000 flats on offer, which will give flat buyers more choices.

With the two BTO launches, HDB would reach its goal of launching 25,000 BTO flats this year. It has also committed to launching 25,000 BTO flats next year.

Mr Khaw said the 50,000 flats in total would be almost the size of Ang Mo Kio, which has about 48,000 flats.

This means that "in three to four years' time, when all these units start materialising, the (supply-shortage) problem would have been largely resolved", the minister said.

The stock of rental flats will also increase by 11,000 units by 2015, bringing the total number to 57,000.

Mr Khaw said that the construction industry would be able to cope with the building of the flats in the next few years, but he added that this could mean the need for more foreign workers. He urged Singaporeans to be "more tolerant" of them.

"In order to keep up with the demand for flats, we need these foreign workers. Otherwise, there's no way we can accomplish the goal," he said.

Edited August 16, 2011 by neubie

[neubie 2]

i believe prices of hdb resale will go higher as the relaxed salary cap for SGSS n more importantly the 15k grant given.

Edited August 16, 2011 by neubie