The Singapore government is planning to reach out to 1,000 HDB rental-flat families to help them buy their own flats.
The scheme aims to mitigate income inequality and uplift lower-income families because “home ownership is key to providing stability and progress for families in the long run”.
A Home Ownership Support Team will be set up to provide stronger, personalised hand-holding. Low-income families living in subsidised two-room flats will be given a grant of up to $35,000 to buy a new or resale three-room flats in non-mature estates.
In the last six years, about 5,000 out of 56,000 rental-flat families have bought their flats under a similar scheme. The number has gone up to 1,300 last year.
Why our government promotes home ownership
With 91 percent owning their homes, Singapore has the world’s second highest home ownership rate after Romania. On average, couples pay only 4.5 times of their annual income