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 Increased For Families and Singles

If you’re a first-time homebuyer, you already know how crucial the CPF Housing Grant can be in making your dream home more affordable. The Enhanced CPF Housing Grant (EHG) has been a game-changer for many, providing financial assistance whether you’re purchasing a BTO flat or a resale flat.

Previously, families could receive up to $80,000 through the EHG, while singles were eligible for up to $40,000. But in a recent move aimed at further supporting homeownership, especially for lower- to middle-income households, the government has announced significant increases to these grant amounts.

Here’s what’s new:

• For Families: The EHG has been increased by up to $40,000, meaning eligible families can now receive up to $120,000. This increase is tiered based on income, so the lower your household income, the more financial support you’ll receive. For instance, a family with a monthly income of $1,500 or less can now access the full $120,000 grant. This boost significantly lowers the financial barrier to owning a home, making it easier to afford your first flat.

• For Singles: The EHG for singles has also been raised, with an increase of up to $20,000. This means that eligible singles can now receive up to $60,000. Like the grant for families, the amount you receive is progressive, offering more support to those with lower incomes. A single buyer earning $750 or less per month, for example, would now qualify for the full $60,000.

Let’s break this down with a real-world scenario:

Suppose you and your partner are looking to purchase a 4-room BTO flat in Bayshore. If your combined monthly income is $7,000, under the previous EHG structure, you would have been eligible for $25,000. With the new grant increases, depending on your income, you could now receive up to $30,000 or more, easing your mortgage burden and reducing the need to dip into your cash savings.

For those with a lower monthly income, say $4,000, the grant amount previously capped at $55,000 could now be up to $70,000. This substantial increase is designed to make homeownership more accessible, ensuring that even those with modest incomes can afford a comfortable living space without excessive financial strain.

Why this matters: LTV limit down from 80% to 75%

These changes to the EHG come at a crucial time, as the government also introduced cooling measures to stabilize the housing market. One key measure is the reduction of the Loan-to-Value (LTV) limit for HDB housing loans from 80% to 75%. While this might mean you need a slightly larger down payment, the increased grants will more than make up for it, particularly for those at the lower end of the income scale.

Read More: Is The New 75% LTV Limit Enough to Lower HDB Prices?

For first-time homebuyers, especially those from lower- to middle-income households, these changes offer a double benefit: more financial support upfront and a more stable market in which to buy. The enhanced EHG provides additional cushioning, allowing you to enter the housing market with greater confidence and less financial worry.

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.

Recognizing 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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