Two-room flats for low-income families – singles have other options

 I REFER to the letter by Mr Lester Lam, ‘Two-room flats – Instead of marketing these flats to families, consider selling them to singles’ (Dec 2).

HDB resumed building new two-room flats in 2006 to help two main groups: Lower-income families buying their first home, and households that wish to right-size to a smaller flat. The income ceiling is pegged at $2,000 to ensure that the higher-income group does not compete for these smaller flats.

Since 2006, about 830 two-room flats have been offered for selection, of which 76 per cent have been taken up.

While demand for two-room flats may be lower initially at launch, the take-up rate improves when the flats are nearer completion.

For instance, when Punggol Vista was launched in August 2007, the take-up rate was 20 per cent for the two-room flats. As the project nears completion, the take-up rate has improved to 95 per cent.

While singles may not be eligible for new flats, there are other options available. For instance, they can buy a resale flat under the Single Singapore Citizen scheme or Joint Singles Scheme.

Eligible singles can apply for the Central Provident Fund Housing Grant of $11,000 or $22,000 respectively. They can also apply for an HDB concessionary interest rate mortgage loan for their purchase.

Ignatius Lourdesamy
Deputy Director (Marketing & Projects)
Housing & Development Board

Source : Straits Times – 14 Dec 2009