BTO flat, EC income ceilings raised
FOR 17 years it had not been tweaked. The pleas to increase the income ceiling for Build-to-Order (BTO) flats, as well as for a readier supply of rental flats, were answered by the Government yesterday.
Prime Minister Lee Hsien Loong announced that the income ceiling for BTO flats would be raised from S$8,000 to S$10,000, while that for Executive Condominiums (EC) would go up from S$10,000 to S$12,000.
At the same time, the Housing and Development Board (HDB) will build another 25,000 BTO flats next year, on top of the 25,000 already slated for this year. With these measures, the Government is "confident" that it can meet the demand for housing and keep prices of new flats stable and affordable, said Mr Lee.
Describing housing policy as "a key expression of putting Singaporeans first", the Prime Minister noted that the sharp spike in property prices in the last two years "has unsettled many", especially young couples who are worried that they will not be able to afford their homes.
One especially worried group are those couples earning just below the HDB income ceiling. With more people marrying later when their incomes have risen, more are finding themselves in this dilemma. "You are not sure that (a pay raise) is good news or bad news," said Mr Lee, who had first hinted at an increase in the ceiling in May during the General Election.
Last night, he noted that the ratio of applicants to flats at BTO projects have started to come down. Since taking over the National Development portfolio, Minister Khaw Boon Wan has increased the BTO supply this year to 25,000 flats and conducted large-scale BTO launches to increase the chances of flat selection for applicants.
RENTAL FLAT SUPPLY UP
Mr Lee also announced that the supply of rental flats will be bumped up by 7,000 units in the next two years. The Government will postpone the demolition of some Selective En Bloc Redevelopment Scheme blocks for the flats to be used as temporary rental units.
The Government had said earlier this year that it was planning to build 5,000 more rental flats by next year and reduce the average waiting time for public rental flats to eight months, down from 21 months in 2008.
These measures were aimed at addressing unhappiness on the ground over the long wait for rental flats. In May, Mr Khaw had said "tens of thousands" of rental flats were needed, with demand coming from first-time buyers with urgent housing needs, single mothers and divorcees among others.
But Mr Lee said that while the increased supply would help ease the wait for a rental flat, it was not the fundamental solution for needy Singaporeans whose financial troubles must addressed. "Overall, I promise you we will keep housing available and affordable for Singaporeans," he said.
