Quote:CLARIFICATION

Quote:Hi friends! I recently gave a parliamentary speech on Singapore's public housing. I suggested how we can better support first-time applicants who really need a home; and how to better spread demand for housing in mature vs non-mature estates.

Quote:I also spoke briefly, on a proposal by NCMP Mr LMW to reduce the cost of a Tengah flat from say $350k to $140k (but have to claw back land costs plus interests, upon sale of one's flat).

Quote:To clarify, I did not mean it will take only 1 to 2 years' time to fully pay for a $140k flat. I meant it will take about 1 to 2 years’ Annual Salary to pay for a HDB flat that's priced at $140k.

Quote:Illustration:

Quote:Assume a couple each earns around $3k per mth or $6k in total, then their:

Quote:1 year’s combined salary = $72k ($6k X 12 mths)

Quote:2 years’ combined salary = $144k ($6k X 12 mths X 2)

Quote:HDB currently prices BTO flats at a “House Price to Annual Income” Ratio of 4 to 5 TIMES . For a 3-room flat, 4 TIMES annual Income. For the bigger 4-room and 5-room flat, about 5 TIMES annual income. Non-mature estates.

Quote:There is further discount if a couple earns less than $3k each, through an existing HDB EHG Grant scheme. If a first-timer couple earns less than $1.5k per month, they can get the maximum $80k HDB EHG grant, providing a further discount.

Quote:HDB loans are often paid over a stretch of 20 to 30 years, subject to one using only 25% or less of one’s monthly income to service the loan.

Quote:Hope this clarifies.

Quote:BIG THANKS to friends who cared and brought this to my attention for clarification.

Quote:BTW, if you are interested to find out more about how HDB BTO prices are set, do check out www.hdb.gov.sg and MND Minister Desmond Lee's parliamentary speech on 6 Feb 2023.

Quote:Have a blessed weekend!

Quote:Denise