Review Income Ceiling Under Public Rental Scheme to Ensure Relevance to Household Incomes and Expenditure
Ministry of National DevelopmentSpeakers
Summary
This question concerns Assoc Prof Walter Theseira's inquiry on whether the $1,500 income ceiling for public rental flats will be reviewed, as average monthly expenditure for small flats now exceeds this limit. Minister Lawrence Wong clarified that the income ceiling is a flexible guideline rather than a hard cap, allowing HDB to apply a needs-based approach for all applicants. He noted that over 760 households earning above $1,500 were assisted from 2016 to July 2019 based on their individual circumstances and housing budgets. The guideline aims to encourage homeownership among those eligible for housing grants, while regular reviews ensure the scheme remains relevant to contemporary living standards. Minister Lawrence Wong emphasized that HDB continues to support Singaporeans who are unable to purchase their own homes.
Transcript
58 Assoc Prof Walter Theseira asked the Minister for National Development (a) whether the Ministry will review the income ceiling under the public rental scheme for HDB flats given that the latest Household Expenditure Survey shows that the average monthly expenditure in 1-2 room flats is now $1,545, which exceeds the present public rental income ceiling of $1,500; and (b) what expenditure studies, surveys, or other evidence are used to determine whether the income ceiling under the public rental scheme remains relevant to contemporary household incomes and standards of living.
Mr Lawrence Wong: HDB takes a needs-based approach for households applying for rental flats. $1,500 is used as an indication of income, because first-timer households with this income are able to buy a new flat with the help of our generous housing grants, and we want to encourage them to own their own homes. But this income figure is a guideline, and not a hard cap. Households with income over $1,500 can still apply for rental flats. HDB will consider their individual circumstances to assess their housing budget and options.
At the Committee of Supply earlier this year, MND shared that from 2016 to 2018, 590 households with incomes above $1,500 were assisted with public rental housing. Since then, from January to July 2019, about 170 more households have been assisted. HDB will continue to review the Public Rental Scheme regularly to ensure that it meets the housing needs of Singaporeans who are not able to purchase their own homes.