About 4,600 rental tenants have bought their first homes in last 5 years with help of housing grants

SINGAPORE — About 4,600 public rental tenants have moved on to buy their first homes in the last five years, the Housing and Development Board (HDB) said on Sunday (Feb 7).

They were able to do so with the help of various HDB housing schemes and grants, the agency said in a statement.

Among the rental tenants who became homeowners between 2016 and 2020:

• Three in four households bought a flat from HDB, while the remaining bought from the resale market

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  More than 50 per cent of the households bought a three-room flat, while about a quarter went for a four-room flat

• About two-thirds of the households bought a flat with the help of housing grants such as the Additional CPF Housing Grant (AHG) and the Special CPF Housing Grant (SHG), which provide up to S$40,000 each in financial support

• Some tapped the Enhanced CPF Housing Grant, which provides financial support of up to S$80,000. This grant was introduced in September 2019 and replaced the AHG and SHG

SUPPORTING TO-BE HOMEOWNERS

A support team aimed at providing more dedicated and personalised support for rental tenants who wish to buy their first homes was set up by HDB in 2019.

Known as the Home Ownership Support Team, the officers guide rental tenants through the process of buying their first home, from planning the purchase to collecting their keys.

Among other things, the officers explain the housing policies, grants and assistance schemes available to rental tenants and help them work out a housing budget and options to make their flat purchase.

As of Dec 31, 2020, the support team has reached out to 654 rental tenants. Of these:

• Fifty households have already booked a flat

• One-hundred and seventy-seven households, or 27 per cent, have been assessed to be ready to buy a flat in the next one to two years

The remaining households are still in the process of assessment and are not ready to apply for a flat in the near term, said HDB.

The support team will continue to track the progress of the remaining households and help them move on to home ownership, where feasible, the agency added.

By 2023, the support team aims to reach out to 1,000 rental households who have been preliminarily assessed to be ready to buy a flat.

This means reaching out to an average of 200 rental households each year, said HDB.

HDB said the support team considers a range of factors such as income stability and the family’s ability to afford a flat.

For those who require further financial assistance and employment support, the support team officers will link them up with the relevant agencies, said HDB.