Singapore's Housing Development Board (HDB) has introduced four additional
measures to help middle-income Singaporeans afford their first home, low-income
families upgrade to larger flats and to facilitate mutual care and support for
multi-generation families.
Additionally it has introduced two measures to further stabilise the HDB
resale market.
Aimed at ensuring greater financial prudence and to discourage speculation,
the maximum tenure for HDB housing loans has been reduced from 30 years to 25
years. Borrowers are now only allowed to use 30 per cent of their monthly income
to service their HDB loan. Previously the cap was set at 35 percent.
The Monetary Authority of Singapore has also introduced similar measures for
HDB borrowers.
Singapore permanent residents (PRs) have also been targeted by measures which
will see newly accepted PRs having to wait three years before they are able to
purchase a resale HDB property. Previously they were able to buy a resale HDB
property immediately after obtaining their PR status.
HDB will also introduce a new type of Three-Generation (3Gen) flat to cater
to multi-generation families living under one roof. These flats will feature
four-bedrooms and three-bathrooms (two en-suites), with an internal floor area
of about 115 sqm.
To be eligible for 3Gen flats, applicants must form a multi-generation family
comprising at least a married/courting couple and their parent(s). To ensure
that these purpose-built 3Gen flats serve the target group, subletting of
room(s) will not be allowed during the five-year Minimum Occupation Period
(MOP). After fulfilling the MOP, these 3Gen flats can only be resold in the open
market to other eligible multi-generation families.
The first project with about 80 units of 3Gen flats will be launched in
Yishun in the September 2013 BTO exercise. HDB has said it will monitor the
response and calibrate the supply of 3Gen flats accordingly.
A press release detailing the new measures can be viewed at
HDB Press Release
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