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SG New measures target HDB market

Property Here - Tuesday, August 27, 2013

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Singapore’s Housing & Development Board (HDB) has introduced four additional measures to help middle-income Singaporeans afford their first home, low-income families upgrade to larger flats and to facilitate mutual care and support for multi-generation families. 

Moreover, it has introduced two measures to further stabilise the HDB resale market.

Aimed at ensuring greater financial prudence and to discourage speculation, the maximum tenure for HDB housing loans has been reduced from 30 years to 25 years. Borrowers are now only allowed to use 30 percent of their monthly income to service their HDB loan. Previously the cap was set at 35 percent.

The Monetary Authority of Singapore (MAS) has also introduced similar measures for HDB borrowers.

Singapore permanent residents (PRs) have also been targeted by measures which will see newly-minted PRs having to wait three years before they are able to purchase a resale HDB property. Previously, they were able to buy a resale HDB property immediately after obtaining their PR status.

HDB will also introduce a new type of Three-Generation (3Gen) flat to cater to multi-generation families living under one roof. These flats will feature four-bedrooms and three-bathrooms (two en-suites), with an internal floor area of about 115 sq m. 

To be eligible for 3Gen flats, applicants must form a multi-generation family comprising at least a married/courting couple and their parent(s). To ensure that these purpose-built 3Gen flats serve the target group, subletting of room(s) will not be allowed during the five-year Minimum Occupation Period (MOP). After fulfilling the MOP, these 3Gen flats can only be resold in the open market to other eligible multi-generation families. 

The first project with about 80 units of 3Gen flats will be launched in Yishun in the September 2013 BTO exercise. HDB has said it will monitor the response and calibrate the supply of 3Gen flats accordingly.

A press release detailing the new measures can be viewed at

Comments and reaction to these latest measures from industry experts and analysts will appear on PropertyGuru on Wednesday.


Andrew Batt, International Group Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email