Property
HDB Keeps Pace With Changing Demography
By Property Buyer  •  October 20, 2013
This year witnesses HDB initiating several policy changes to cater to Singapore's changing housing landscape. For the first time, Singaporean-Foreigner couples are allowed to buy flats directly from HDB - restricted to two-room flats in non-mature estates. However they have to first meet the criteria of the Singaporean spouse being at least 35 years old and the couple's houshold income not exceeding S$5,000. Answering also the clamour by singles for affordable housing, HDB finally permits eligible singles to buy directly from HDB. Similarly, they are restricted to two-room flats in non-mature estates. The September 2013 Build-To-Order (BTO) Exercise marks the second exercise in which singles are allowed direct purchase from HDB. Like for the July's exercise response was overwhelming. There were 7,800 applicants near closing time, less than the 8,800 applications in the first exercise, but nevertheless for both exercises demand outstrips available flats by a large margin. For the first and second exercise, the supply of two-room flats are 519 and 1,329, respectively. In the July's exercise, the flats were limited to Sengkang and Yishun, whereas in the latest exercise the areas have been widened to Bukit Panjang, Choa Chu Kang, Hougang, Jurong East/West, Punggol, Sembawang and Woodlands. Hougang, Choa Chu Kang and Punggol top the list in popularity with 153, 15 and 43 applicants, respectively, for each unit. The September's exercise also saw the introduction of Three-Generation (3Gen) to foster intergenerational living, in line with an aging population and longer life expectancy. These jumbo houses experienced strong demand - there were 300 applicants for the 84 units on offer. The intergenerational theme continues with the Multi-Generation Priority Scheme (MGPS) which was refined to include three-room flats. Under this scheme, parents and children who wish to live near each other can submit a joint application for flats in the same BTO project. Previously parents could only apply for studio apartments and two-room flats. HDB has correctly anticipated demand with 9 out of 10 parents opting for a 3-room flat, among the 42 pairs of MGPS applications. Table One presents the timeline of events.

Table 1: Timeline of Events

November 2013 HDB Nov BTO exercise will offer about
  • 100 3Gen flats in Jurong West
 
  • 450 two-room flats
2 October 2013, near closing time 3Gen flats: 300 applicationsTwo-room flats: 7,800 applications from singles
26 September 2013 HDB Sep BTO exercise offered
  • 84 units of 3Gen flats in Yishun
  • 1,329 units of two-room flats in Bukit Panjang, Choa Chu Kang, Hougang, Jurong East/West, Punggol, Sembawang and Woodlands
27 August 2013 1. HDB announced it will introduce Three-Generation (3Gen) flats which have
  • a size of 115 sq m, or 1,237.86 sq ft
  • four bedrooms and three bathrooms (two en-suites)
  Eligibility: Multi-generation family with at least a married/courting couple and their parent(s).   2. MGPS is enhanced
5 Aug 2013, end of the application period The two-room flats were overwhelmingly oversubscribed with 8,800 applications from singles – a ratio of 17:1
30 July 2013 HDB July BTO exercise saw it offers 519 two-room flats in Sengkang and Yishun, with 30% for singles.Eligible singles could also apply for the Additional CPF Housing Grant (AHG) and the Special CPF Housing Grant (SHG).
In the next few months Critics were sceptical about the popularity of two-room flats due to their small size and profile of residents living in such flats, which are mostly lower-income
March 2013 HDB announced that single Singaporeans would be able to buy new two-room flat in non–mature estates directly from HDB, if they are
  • 35 years and above, and
  • Gross monthly income is up to S$5,000
With HDB ramping up housing supply, home prices are expected to plunge or stabilise, what better time to buy than now? Speak to a professional mortgage specialist for a FREE home loan report ™ and consultation.
About Property Buyer http://www.propertybuyer.com.sg/mortgage/ We are a research-focused Singapore mortgage consultancy which helps you compare Singapore home loans either for new loans or refinancing. We use loan reports from Singapore’s best loan analysis system (exclusive to us) at http://www.icompareloan.com/consultant/ to serve our customers. Our services are completely FREE to you as the banks pay us a referral fee upon loan disbursement. Paul Ho is the editor of www.PropertyBuyer.com.sg, www.iCompareloan.com and www.SingaporeHomeLoan.net and he holds a Masters of Business Administration from a reputable university. He is passionate about helping people enhance their wealth through financial literacy and in making money work harder for them. Copyright ® - All articles are the copyright of www.propertybuyer.com.sg and CoreConcept Systems Pte Ltd and the company reserves full rights to use, reuse in any form or in any media including rights of attribution and credits of articles.
Read the full article
By Property Buyer
LEAVE A COMMENT
LEAVE A COMMENT

Your email address will not be published.

*

Your Email Address will not be published
*

Read More Articles
More from thefinance