Fairer system to kind of level playing field, with more help supposedly going to couples, singles and elderly.
With Singapore’s housing situation in a mess, Khaw Boon Wan, the newly handpicked minister of National Development (pictured left), has come up with a series of schemes and new flat releases to help curb the problems his predecessor Mah Bow Tan could not solve before an incumbent-walloping General Election in May.
Khaw announced, with a lot of enthusiasm, that there will be less help given to the higher-income households seeking to buy a flat because they can afford not to be helped.
This is an attempt to create a fairer, tiered system, in tandem with the Housing and Development Board (HDB) recently raising the income ceiling for those looking to buy homes.
For those purchasing built-to-order (BTO) flats, the income ceiling will be raised from $8,000 to $10,000
For executive condominium flats, they are to go up by $2,000 to $12,000.
Those aged above 55 and wanting to buy a purpose-built studio apartment for the elderly now have an income ceiling of $10,000. Previously it was $8,000.
Therefore, potential buyers whose household income is $10,000 are still eligible to receive the entire Central Provident Fund (CPF) Housing Grant worth $30,000. (Thank goodness…)
Those earning between $10,000 and $11,000, tough luck. They will receive $20,000.
Households that make more than $11,000? Sorry, but tough luck too. They will receive $20,000 as well.
Life is indeed unfair, in case you’re just tuning in.
Furthermore, Khaw said that the HDB will release 8,000 flats (a record number, by the way) next month. (Who said opposition political parties are not effective in bringing about change?)
In total, 25,000 flats are to be released this year. In November, for example, 4,000 built-to-order (BTO) flats will enter the market.
As for 2012 next year, the projection is for a release of another 25,000 flats. (Something Mah probably could not deliver.)
Some of these flats will be in mature estates such as Tampines and Kallang/Whampoa, which are prime locations that are sought-after in the market.
This would allow some potential resale flat buyers to exit the resale market as they will be tempted by brand new flats instead, effectively freeing up space for those single and above 35 years and older, for example. (Or so the theory goes…)
Khaw enthused that this would effectively deal with the housing demand surge.
He gushed: “That’s why I’m so confident that in three, four years’ time, when these units start materialising, whatever pent-up demand, the problem would be largely resolved.”
However, he also stressed: “It can’t happen tomorrow.”
Read the original article here.