Proposal for Differentiated Incentives and Restrictions for HDB BTO Flats Based on Number of Children Per Household

41 Mr Saktiandi Supaat asked the Minister for National Development in light of the recently announced moves towards a more equitable public housing system for Singaporeans (a) whether the Ministry is considering differentiated incentives and restrictions based on the number of children per household; (b) what is the justification for differentiating singles from married couples who do not have children; and (c) what additional ways can policies on the public housing system promote parenthood and help young parents without negatively impacting singlehood.

Mr Desmond Lee: Given the land and resource constraints we face in Singapore, we have to balance the housing needs of different citizen segments carefully.

We engaged over 16,000 Singaporeans through Our Housing Conversations conducted under the Forward Singapore exercise. Singaporeans collectively agreed that young married couples and families with young children have the most urgent need for housing and should be prioritised. This recognises that parents want to give their young children a conducive living environment to grow up in. For married couples who do not currently have children, supporting them in owning their first home helps them to settle down and set up their families.

Today, the vast majority of flats are already set aside for first-timer families. From the upcoming Build-To-Order (BTO) exercise, the Housing and Development Board (HDB) will introduce a new applicant category, known as the First-Timer (Parents and Married Couples), or FT(PMC), for eligible families with at least one child aged 18 and below, or married couples aged 40 and below. FT(PMC) applicants will receive a total of three ballot chances for their flat applications in HDB’s BTO and Sale of Balance Flats (SBF) exercises in any estate. In addition, the current Parenthood Priority Scheme will be expanded to include FT(PMC) applicants and renamed as the new Family and Parenthood Priority Scheme. The scheme will provide priority allocation of BTO and SBF flats to eligible young married couples and parents with young children.

We also understand that larger households may require a bigger living space of their own. Today, the flat allocation quota for 3-room and larger HDB flats are fully set aside for families. We also have the Third Child Priority Scheme (TCPS) in which eligible families with three or more children will receive priority allocation for up to 5% of flats sold in the BTO and SBF exercises. TCPS is available for eligible families, regardless of whether they are first- or second-timer households.

We generally do not have differentiated incentives or restrictions for households based on the number of children. What we have instead are the policies and priority schemes to facilitate marriage and parenthood, which give families choices and allow them to select a flat based on their specific needs, budgets and housing grant eligibility, as well as conditions, such as the Minimum Occupation Period.

We also recognise that more Singaporeans are remaining single – some by choice, others by circumstances – and they, too, wish to have a place of their own. Over the years, we have adjusted our housing policies to meet their needs and aspirations. For example, for first-timer singles, we had increased the supply of 2-room flexi flats in the Non-Mature Estates that are set aside for them last year. With the implementation of the new flat classification from the second half of 2024, first-timer singles will have more locational options, as they will be able to purchase new 2-room flexi flats island-wide, across Standard, Plus and Prime projects, from HDB.

Singles who would like to own a larger flat may purchase one from the resale market and may receive up to $95,000 in housing grants.

We will continue to monitor the situation and adjust our housing policies where necessary to support the different segments of Singaporeans. This includes engaging Singaporeans to explore new ways to better meet their evolving housing needs and aspirations.