Debate highlights potential impact on resale prices and calls for broader housing support
During the second day of Singapore’s Budget 2023 debate, Members of Parliament (MPs) raised concerns over the potential consequences of increased Central Provident Fund (CPF) Housing Grants for first-time homebuyers. While welcoming the additional support, MPs warned that the higher grants might drive up resale flat prices, making housing less affordable for other buyers.
Ang Mo Kio GRC MP Gan Thiam Poh acknowledged the benefits of increased grants but cautioned that rising resale prices could negatively impact non-first-time buyers, including divorcees and families facing financial difficulties. Similarly, Workers’ Party MP Gerald Giam (Aljunied GRC) questioned whether the government had assessed the expected impact on resale flat prices. He suggested that instead of increasing grants, the government should facilitate housing transitions for “empty-nesters” by providing better access to two-room flexi flats and Community Care Apartments.
Giam also proposed requiring future private property buyers to sell their HDB flats and offering incentives for current dual-property owners to sell their HDB units by rebating the Additional Buyer’s Stamp Duty (ABSD).
Progress Singapore Party (PSP) Non-Constituency MP Hazel Poa warned of a potential “price spiral” caused by rising demand for resale flats, leading to further grant increases. Instead of issuing grants, PSP suggested treating land sale proceeds as revenue to subsidize public housing directly.
Regarding Build-to-Order (BTO) flats, Gan recommended extending the additional ballot privilege—currently granted to first-timer families with children and young married couples—to families with two or more children. This follows Budget 2023’s announcement that first-timer families with children and young couples under 40 would receive an extra ballot for BTO applications to improve their chances.
Other MPs called for broader housing accessibility reforms. Sengkang GRC MP He Ting Ru advocated lowering the eligibility age for singles to purchase new flats from 35 to 28. Both He and Nominated MP Shahira Abdullah also pushed for more support for unwed single mothers.
He noted that while the Budget’s pro-family policies, such as enhanced baby bonuses and parenthood benefits, were positive steps, they largely excluded singles and childless individuals. Shahira emphasized that policies that penalize single mothers also disadvantage their children, reinforcing structural inequalities.
Beyond grants, Gan reiterated the need to boost the supply of BTO flats, double the number of executive condominiums, and consider developing more private housing on lower-density plots in central areas.
With over 10,000 first-time homebuyers expected to benefit from the increased CPF Housing Grants in its first year, the debate underscores the balance policymakers must strike between affordability and market stability
