Proposal for Sale Price of HDB Flats to be Set at a Level of Not More Than Four Times the Average Annual Income of Applicants

89 Mr Gan Thiam Poh asked the Minister for National Development whether the Ministry will reduce the sale price of HDB flats to not more than four times of the average annual income of the applicants for the respective HDB flat types.

Mr Desmond Lee: The Government remains committed to providing affordable public housing options to help citizen households own their first homes. To achieve this, new Build-To-Order (BTO) flats are priced at a significant discount to the market. First-timer flat buyers can also enjoy the Enhanced CPF Housing Grant (EHG) of up to $80,000, which provides further support to lower- and middle-income families buying their first home.

With these generous subsidies and grants, new HDB flats have remained affordable. In 2020, BTO flat prices in the non-mature estates remained at around five times or less of the median annual first-timer families’ income. The monthly instalment of these families is typically less than a quarter of their household monthly income. This means that most buyers can service their housing loans using their monthly CPF contributions, with little or no cash outlay.

HDB will continue to price its new flats with affordability as the key consideration and offer a wide range of flat types in various locations to cater to different budgets and needs. We also encourage flat buyers to exercise financial prudence in their housing choices.