NDR 2024: What You Need to Know About PM Lawrence Wong’s Housing Announcements

If you’re a first-time homebuyer or a single looking to settle near your parents, you’ll want to pay attention to this. In his first-ever National Day Rally speech, Prime Minister Lawrence Wong outlined 3 key changes to make homeownership more accessible and affordable for everyone, especially lower-income families and singles.

• Enhanced CPF Housing Grant: More Support for First-Time Buyers
• Priority for Singles: Leveling the Playing Field
• Stabilising the Housing Market: A Brighter Outlook
• Ready to take the next step toward owning your dream home?

Enhanced CPF Housing Grant: More Support for First-Time Buyers

If you’re a first-time homebuyer, you already know how significant the CPF Housing Grant can be in easing the financial burden of purchasing a flat. Currently, under the Enhanced CPF Housing Grant (EHG), families can receive up to $80,000 to help with their first flat, whether it’s a BTO unit or a resale flat. Singles, on the other hand, can receive up to $40,000.

But here’s the exciting part: the government is planning to increase these grants, particularly for lower-income families. While the exact details of the increased grant amounts haven’t been released yet, this move is designed to provide even more robust financial support, helping you secure a home that fits your budget without stretching your finances too thin.

For example, let’s say you and your partner are looking to buy a 4-room BTO flat in Bayshore. With a combined monthly income of $7,000, you could currently get $25,000 under the EHG. This grant helps to reduce the amount you need to borrow, making your monthly mortgage payments more manageable. But if your income is lower, say $4,000 a month, the current grant is even more generous, offering you $55,000 to help purchase a 3-room flat in a more affordable area like Sengkang.

With the upcoming changes to the EHG, these grant amounts are expected to increase, especially for those with lower incomes. This means more money in your pocket, less financial strain, and a smoother path to homeownership.

Priority for Singles: Leveling the Playing Field

Traditionally, if you’re single and aged 35 or older, your options for buying a new HDB flat were limited to 2-room Flexi flats. But starting from mid-2025, things are about to change for the better.

One of the most significant updates is the extension of priority access to singles who wish to live near or with their parents. Currently, married couples can benefit from schemes like the Married Child Priority Scheme (MCPS), which gives them a better chance of securing a flat within a 4km radius of their parents’ home. This priority access is designed to keep families close, making it easier for them to support and care for one another.

Recognising that many singles also want to live near their aging parents, the government is extending this same priority to you. So, if you’re a single looking to stay close to your parents, you’ll soon have a better chance of getting a BTO flat in your preferred location. This move is a significant step towards ensuring that you’re not left out of the housing market simply because of your marital status.

Stabilising the Housing Market: A Brighter Outlook

You might have noticed the rising prices of resale flats in recent years. Since the second quarter of 2020, HDB resale prices have been on an upward trajectory, driven in part by disruptions in the construction industry caused by the COVID-19 pandemic. This has understandably led to concerns about housing affordability, especially as record-breaking transactions, like the $1.726 million sale of a five-room flat in Margaret Drive, grab headlines.

The good news is that the government has been proactive in addressing these concerns. Through a combination of cooling measures and a significant ramp-up in the supply of new flats, the market is beginning to stabilise. The Ministry of National Development (MND) has pledged to launch 100,000 BTO flats between 2021 and 2025. By the end of this year, over 80,000 new units will have been delivered, with the remaining backlog, consisting of about 20,000 flats, expected to be cleared by early 2025.

For you, this means that the intense competition for flats is likely to ease, and prices should become more stable. If you’re applying for a BTO flat now, your chances of getting a queue number have improved, and waiting times, which currently average around four years, are expected to shorten to less than three years in the future.

Ready to take the next step toward owning your dream home?

At Ohmyhome, our Super Agents are here to guide you every step of the way. Whether you’re a first-time buyer or looking to secure a flat near your parents, our team is dedicated to making your homeownership journey smooth and stress-free.

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