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SINGAPORE - Lower-income couples buying their first Housing Board flat will soon get more help in the form of increased housing grants. Plans are in the works to boost financial support for first-time homebuyers – especially those from lower-income groups – under the Enhanced CPF Housing Grant (EHG), Prime Minister Lawrence Wong said in his National Day Rally speech on Aug 18. PM Wong, who was highlighting efforts by the Government to keep housing accessible to all Singaporeans, said National Development Minister Desmond Lee will share specifics soon. Currently, the EHG gives up to $80,000 in grants for families and $40,000 for singles buying their first new or resale flat. In his speech, PM Wong addressed concerns about housing affordability, noting that high resale flat prices have caught public attention. Since the second quarter of 2020, HDB resale prices have been rising continuously, according to data released by HDB in July. Also in July, a five-room flat in Margaret Drive sold for $1.726 million, setting a record for the highest transacted price for a resale flat. PM Wong attributed the rise in housing prices to the disruption in the construction industry caused by the Covid-19 pandemic, which slowed down the supply of new residential units. The Government has moved to stabilise the market, implementing cooling measures and ramping up supply, he said. He pointed to efforts by the Ministry of National Development (MND), which pledged to launch 100,000 Build-To-Order (BTO) flats from 2021 to 2025. It will surpass 80,000 units by December 2024, and hit its target in 2025, PM Wong said. In early 2025, all the BTO projects delayed by Covid-19 will be completed, he added. He pointed out that first-timers who apply for a BTO flat now are more likely to get a queue number, and waiting times have also come down. “Waiting times for most projects are now around four years. We aim to shorten this by building ahead of demand. So over time, more BTO projects will have waiting times of less than three years,” he said. PM Wong added that the authorities pay “special attention” to BTO flats in mature estates, which are often priced higher as they reflect the higher property value in attractive locations. To ensure that these HDB flats remain affordable, the Government will roll out from the upcoming BTO exercise in October. Flats will be classified into Prime, Plus or Standard categories, replacing the current classification of estates as either mature or non-mature. BTO units closer to amenities such as MRT stations and town centres will fall under the Prime and Plus categories. These flats will come with stricter resale conditions, such as a 10-year minimum occupation period (MOP) and a subsidy clawback. Prime and Plus flats will have extra subsidies on top of existing BTO subsidies, with Prime flats getting the most subsidies. Standard flats, which will form the bulk of public housing supply, will come with a five-year MOP and have no significant restrictions on the pool of resale buyers. PM Wong said the October sales exercise will include Efforts are starting to bear fruit, said PM Wong, pointing to how the ratio of house prices to income has dipped. The ratio of the median price of four-room HDB resale flats after grants, to the median annual household income, is currently 4.8 – the same as it was in 2014. This means the price of a resale flat is nearly five times the annual income. From 2014, the ratio had dropped below 4 before spiking up to 5 when the pandemic hit. “To put this in perspective, our current house price-to-income ratios are significantly lower than most major cities in the world like London, Sydney and Hong Kong,” he said. In his speech, PM Wong also played housing agent, raising examples of young couples who can tap grants to help with their BTO purchase. For instance, a couple with a combined monthly income of $7,000, who want to buy a four-room BTO flat in Bayshore, can get $25,000 under the EHG, he said. The unit, which falls under the Plus category, costs $580,000. The couple would be able to service their HDB loan with CPF contributions, with minimal cash payments. Another couple with a lower income of $4,000 a month will get $55,000 from the EHG. They can finance a three-room Standard flat in Sengkang – priced at about $300,000 – with their CPF savings, he said. A three-room flat in Bayshore would be “more of a stretch for them financially”, said PM Wong. This is why the Government intends to boost support that couples receive under the EHG. “This is my assurance to all young Singaporeans: Once you start work and wish to settle down, we will make sure that there is an HDB flat that is within your budget, in every region,” he said. In his speech, PM Wong also addressed concerns about housing from the elderly and singles. He said the authorities will continue to launch more community care apartments, which pair senior-friendly housing design with on-site care services. The Health Ministry and MND are also studying ways to make existing homes more senior-friendly for seniors who prefer not to move, he added. On singles, PM Wong said from mid-2025, those applying for BTO flats will get similar priority access as married couples when they buy a home near or with their parents.