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A new priority category for first-timer new flat buyers will be introduced to benefit families with children and young married couples aged 40 and below, starting from the August 2023 Build-To-Order (BTO) exercise.
The new First-Timer (Parents and Married Couples) category, or FT(PMC), was announced by the Minister for National Development (MND) Desmond Lee in his Committee of Supply speech on Mar. 2.
Currently, first-timer families are given the greatest priority in the ballot for BTO/ Sale of Balance Flat (SBF) exercises.
Those fall under the new category will receive additional support to buy their first home.
Lee said: "Having a home of their own will provide a stable environment for newly married couples to set up their families, and (allow) parents to give their young children a conducive environment."
About 10 per cent of all first-timer families fall in this category, he added.
New FT(PMC) category
The eligibility criteria for the FT(PMC) category are as follows:
- Families with at least one Singapore citizen child aged 18 and below or married couples aged 40 and below; and
- Never owned or sold a local residential property before; and
- Did not get the chance to book an HDB flat in the past five years
This new category will exclude applicants who had owned or sold private property, those who had purchased a resale flat without taking housing subsidies, as well as couples who are planning to get married.
Lee said this will be implemented from the August 2023 BTO exercise onwards.
FT(PMC) applicants to get an additional ballot chance for flat applications
FT(PMC) applicants will receive one additional ballot chance when they apply for a new HDB flat, Lee said.
This is on top of the two ballot chances that they already receive as first-timer families.
This means that they will receive a total of three ballot chances when they apply for any flat type in any estate, as part of a BTO/ Sale of Balance Flats exercise.
There is no change made to the advantages that first-timer applicants have over other buyers, Lee added.
More flats set aside for applicants under Family and Parenthood Priority Scheme
Under the current Parenthood Priority Scheme (PPS), flats are set aside for first-timer married couples who meet these criteria:
- with at least one Singapore citizen child aged 18 and below,
- or are expecting a child.
To help these first-timer married couples with children get their flats more quickly, up to 30 per cent of BTO flat supply and 50 percent of SBF flat supply are currently allocated to applicants under this scheme.
Lee said from August 2023, the PPS will be expanded such that FT(PMC) applicants are eligible as well.
That means that young married couples who do not yet have children can also qualify.
It will also be renamed as the Family and Parenthood Priority Scheme (FPPS).
MND will increase the percentage of BTO flat supply set aside for FPPS to up to 40 per cent, and up to 60 per cent for SBF, in all launches in mature estates, non-mature estates and prime locations.
FT(PMC) applicants stand higher chance for BTOs in non-mature estates
Lastly, HDB will also give further support for FT(PMC) applicants applying for four-room and smaller BTO flats in non-mature estates (NMEs).
FT(PMC) applicants will be given first priority for the flats set aside under the FPPS.
For example, this means that within the 40 per cent of flats set aside in a BTO exercise under FPPS, FT(PMC) applicants will be shortlisted ahead of all other FPPS-eligible applicants.
"They will stand a higher chance of being invited to select a flat," said Lee.
An example of this scheme in action
Lee provided a hypothetical example of a young recently married couple, 26 or 27 years old, who are eligible to apply for flats under the FT(PMC) category.
If they are considering a four-room BTO flat in Yishun or Tampines, they will get three ballot chances for either estate they choose.
There will also qualify for the Family and Parenthood Priority Scheme, which sets aside flats for eligible applicants.
Also, if they choose Yishun, which is a non-mature estate, they will be the first to be shortlisted among all FPPS applicants, and have substantially higher chances to be invited for flat selection.
"With these new changes, first-timer parents and married couples should be able to select a flat within fewer attempts, especially if they apply for a four-room or smaller BTO flat in the non-mature estates where demand tends to be more moderate." Lee said.
Clarifications about the scheme
Lee noted that some had asked if fiancé-fiancée couples could receive some help, given that they also hope to settle down quickly.
He said the scheme is currently targeted at those who are already married or have children, due to the tight supply of flats at the moment.
However, HDB may exercise flexibility regarding eligibility for this scheme on a case-by-case basis, if there are extenuating circumstances.
One example raised was for adult children who had added themselves as co-owners to their parents’ flat so they could help their parents cope with the mortgage.
When they eventually remove their names to apply for a new flat and set up their own families, HDB may consider allowing them to qualify for this priority category.
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Top image via HDB on Facebook.