I REFER to the letters, 'Raise income ceiling on HDB flats over $500k' by Mr Song Yee Soon (April 16), and 'Variety needed in HDB income ceiling rule' by Mr Ng Ya Keng (last Thursday).

The Design, Build and Sell Scheme (DBSS) was launched to give choice to flat buyers who are prepared to pay for variety in housing designs and fittings.

In pricing new DBSS flats, private developers take into account the purchasing power of flat buyers within the income ceiling of $8,000 per month. If HDB raised the income ceiling, as suggested by Mr Song, developers could correspondingly set higher prices for DBSS flats.

HDB would like to remind buyers there is a wide variety of flats available, of different sizes, finishes and prices. DBSS is only one of many public housing options, including new HDB flats and resale flats.

On Mr Ng's suggestion to raise the income ceiling, we would like to explain that about eight in 10 Singaporean families are currently eligible to buy subsidised public housing at the prevailing household income ceiling of $8,000. Households with incomes exceeding the income ceiling have many other housing options, including resale flats.

Mr Ng may wish to know only households with income not more than $2,000 and $3,000 are eligible to buy new two- and three-room HDB flats respectively. Eligible households earning below $4,000 per month may receive additional housing grants of up to $30,000 for flat purchases. This is to recognise the extra help needed by the lower-income group to own HDB flats.

HDB agrees with Mr Song that flat buyers should exercise financial prudence when buying an HDB flat. Currently, flat buyers taking HDB loans are required to undergo credit assessment and obtain a home loan eligibility letter from HDB, before they can commit to buy a new or resale HDB flat.

We thank Mr Song and Mr Ng for their feedback.

Lily Chan-Wong Jee Choo (Mrs)
Acting Deputy Director (Policy & Property)
for Director (Estate Administration & Property)
Housing & Development Board