National Day Rally 2024: Higher Enhanced CPF Housing Grants (EHG), lower Loan-to-Value (LTV) limits & more

The National Day Rally 2024 brought significant updates to Singapore’s housing policies, with an emphasis on enhancing affordability and accessibility. These changes are set to impact first-time homebuyers, singles, and seniors alike, making the property market more inclusive and equitable.

Here’s a breakdown of what you should know.

Housing affordability and financial support

One of the most anticipated announcements during the National Day Rally 2024 was the increase in the Enhanced CPF Housing Grant (EHG). This grant is crucial for making public housing more affordable, especially for first-time buyers.

Increase in Enhanced CPF Housing Grant (EHG)

Before this year’s changes, eligible first-time families could receive up to S$80,000 under the EHG, while singles could receive up to S$40,000. However, starting from August 20, 2024, the grant amounts have been increased to provide even greater support. Families will now be eligible for up to S$120,000, an increase of S$40,000. Singles, on the other hand, will see their grant increased by up to S$20,000, bringing the maximum they can receive to S$60,000.

The grant distribution is tiered based on household income, which means lower-income households stand to gain more. For families, the increase can range from S$5,000 to S$40,000, while singles may see an increase between S$2,500 and S$20,000. This enhancement ensures that those who need the most help in securing a home receive it.

Importantly, there are no restrictions on the type or location of flats eligible for the EHG, making it a broad support measure across the housing market. Since its introduction in September 2019, the EHG has benefitted about 72,300 first-time households, with over S$2 billion disbursed to help Singaporeans achieve homeownership. In the first half of 2024 alone, approximately S$204 million was disbursed to 7,000 first-timer households.

Priority for singles

Starting from mid-2025, singles who apply for Build-To-Order (BTO) flat within 4 km of their parents’ homes will receive higher priority in the ballot. The eligibility age for singles remains at 35 years. This enhanced priority is a new benefit that was previously reserved for married couples and their parents under the Married Child Priority Scheme (MCPS).

Senior-friendly homes

The government is also taking steps to improve housing options for seniors. Plans are being explored to make existing homes more senior-friendly, and more elderly-friendly housing options are expected to be launched. These new options will integrate care and social services, ensuring that seniors can age comfortably in place. These enhancements demonstrate a commitment to making housing more accessible and equitable, particularly for lower-income families, singles, and seniors.

Loan-to-Value (LTV) limit reduction

In a move to cool the public housing resale market, the government announced a reduction in the Loan-to-Value (LTV) limit for HDB loans. Starting from August 20, 2024, the LTV limit will be lowered from 80% to 75%, reducing the maximum amount homebuyers can borrow from HDB.

This adjustment aligns the LTV limit for HDB loans with those granted by financial institutions, which also stands at 75%. This marks the fourth set of property cooling measures since December 2021. The LTV limit was initially lowered from 90% to 85%, followed by further reductions to 80% in September 2022.

The impact of this change on first-time homebuyers is expected to be minimal, especially for lower-income buyers. This is because significant housing grants, including the EHG, will continue to provide robust support, helping to mitigate the effects of the reduced LTV limit.

Prime waterfront coastline

Urban development in Singapore is taking a bold step forward with plans to develop a 120km prime waterfront coastline. If you’ve always dreamed of living by the water, areas like Nicoll, Kampong Bugis, Tanjong Rhu, Marina South, and Marina East are set to become new residential and recreational precincts.

These developments aren’t just about aesthetics; they’re designed with sustainability in mind. The new precincts will be car-lite, well-connected by public transport, and focus on creating a future-ready urban landscape. This means you can expect a living environment that prioritises green spaces, reduces carbon footprints, and enhances the quality of life for residents.

The significance of this project lies in its alignment with Singapore’s long-term urban planning efforts. It’s a continuation of the tradition of ambitious, forward-looking plans that aim to make Singapore a resilient and sustainable city for generations to come.

Progress on BTO flat supply

The government’s commitment to increasing the supply of BTO flats is also on track. If you’re in the market for a new home, you’ll be pleased to know that over 80,000 flats are expected to be launched by December 2024. This is part of the broader goal of launching 100,000 BTO flats by 2025.

In addition to boosting supply, efforts are being made to reduce the waiting time for BTO projects. Currently, the average waiting time is around four years, but the goal is to shorten this to less than three years by building ahead of demand. This means that your wait for a new flat might soon be much shorter than before.

October 2024 BTO sales exercise

Looking ahead, the October 2024 BTO sales exercise is set to introduce the new HDB classification framework officially. Fifteen projects will be launched across various townships, offering you a wide range of choices.

A notable feature in this exercise is the pilot of ‘White Flats.’ These flats are designed without beams and partition walls, giving you more flexibility to customise your living space according to your needs. This innovative approach is part of the ongoing effort to make public housing in Singapore more adaptable and responsive to the evolving needs of its residents.

Wrapping up

With these updates, the National Day Rally 2024 has set the stage for significant changes in Singapore’s housing landscape. Whether you’re a first-time homebuyer, a single individual, or a senior citizen, these new policies and grants are designed to make homeownership more accessible and tailored to your needs.