Before turning 35, many singles in Singapore would stay with their parents. This could be due to the small size of our island, which hardly ever requires anyone to move out of his or her parents’ place to be closer to the office. Given the high cost of private housing in Singapore, those who want their own space may also choose to rent instead.
Whatever the reasons, turning 35 as a single is more notable in Singapore than in other countries. The reason is simple. Turning 35 means you can finally buy your own HDB flat.
But before you pop open the champagne bottle to celebrate, it might be prudent to familiarise yourself with the HDB housing options available to you today. In this article, we will explore the various HDB housing options for singles.
Read Also: Step-By-Step Guide To Buying A HDB BTO Flat
Build-To-Order (BTO) Flats
Given a choice, many people would usually prefer BTO flats. A BTO flat comes with tons of advantages compared to resale flats. Aside from the fact that they tend to be cheaper, you also get a fresh 99-year lease. Other benefits include lower renovation costs and more functional layouts than older flats.
But before you start looking out for upcoming BTO launches, note this vital criterion—as a single, you are only eligible to apply for 2-room flats, also known as 2-room Flexi flats.
2-room flats are typically about 45 sqm (484 square feet). They have a bedroom, a living/dining area, one bathroom, and a small kitchen.
In the 2023 National Day Rally, it was announced that singles will be allowed to buy 2-room flexi flats across all BTO projects (i.e. Standard Projects, Plus Projects, and Prime Projects) from 2H2024. While this may not change the size of the home they can buy, it will offer more choices for singles who wish to purchase their flats. Before 2H2024, Singles can only apply for 2-room flexi flats in non-mature estates.
In the 2024 National Day Rally, it was announced that singles would be able to enjoy priority when applying for a 2-room flat near where their parents’ residence (within 4km) or if they want their parents to move in with them into the BTO flat. Previously, the priority was only applicable to married children.
As with all BTO flats, there is an income ceiling. For 2-room flats meant for singles, the income ceiling is $7,000. Additionally, you may only rent out a 2-room flat as an entire flat after the 5-year Minimum Occupancy Period (MOP). You may not rent out the bedroom of a 2-room flat.
Read Also: How 2-Room Flats Can Help Retirees With Their Retirement
Housing Grants For BTO Flats
Like couples, singles who apply for BTO flats are eligible for the Enhanced CPF Housing Grant (EHG) (Singles). The actual grant amount can be as much as $60,000, depending on your income, with a higher amount given to those with lower income.
From 20 August 2024, the EHG has been increased.
To qualify for EHG, your gross monthly income must not exceed $4,500 for the 12 months before flat application.
Read Also: Complete Guide To HDB Housing Grants In Singapore
Resale Flat
Buying a resale flat is another viable option for those who want to find a bigger place.
For resale flats, there are no income or size restrictions (though Singles are not eligible to buy 3Gen flats. You can purchase any flat at any location in Singapore, regardless of how much you earn. In addition, unlike 2-room HDB flats, you can rent out the bedroom of the flat (for 3-room flats and above) during the MOP, subject to HDB’s approval.
Of course, the tradeoff is that resale flats typically cost much more than BTO flats, however, resale flats are a great HDB housing options for singles to consider.
Housing Grants For Resale Flats
If this is the first time a single is purchasing an HDB flat, they are eligible for the Singles Grant, EHG, and Proximity Housing Grant (PHG) for resale flat purchases.
Single Grant – only for first-timer Singapore Citizen (SC) buying a resale flat: $40,000 (2- to 4-room resale) or $25,000 (5-room or bigger resale flat)
Enhanced Housing Grant (EHG)—This applies to first-time Singapore Citizens (SC) buying a new or resale flat. It is up to $60,000 for a single person, depending on their income level. For example, a single with a monthly average income of $3,000 will receive $25,000 in grants, while a single with a monthly average income of $4,000 will receive $10,000 in grants.
Proximity Housing Grant (PHG)—This grant is only applicable to resale flats; those buying an HDB flat within 4km of where their parents live will receive $10,000 in the grant as a single.
Some Important Considerations When Consider HDB Housing Options For Singles
Buying a home is always a big decision, regardless of whether you are single or married. Here are a couple of factors that you need to consider.
# 1 Your Future Plans
Buying a resale flat is a lot more straightforward if your relationship status changes in the future. If you get married, your future spouse can move in with you. For a 2-room BTO flat, this would be a lot tougher due to space constraints. If you intend to start a family, chances are you would want to upgrade in the future.
The same logic applies if you have elderly parents who may move in with you. A bigger home allows for this option.
# 2 How Much Can You Afford?
As with purchasing all properties, affordability is an essential factor to consider. While getting a bigger resale flat in an area of your choice might be great, you need to consider how much you can afford.
For example, a 2-room flat during the June 2024 BTO launch in Jurong East cost at most $200,000 before grants. For some singles, that’s an amount they may already have in their CPF Ordinary Account to purchase the flat without requiring a housing loan.
Read Also: Why You Should Choose (Wisely) To Spend Less On Your First BTO Flat
In conclusion, there are various HDB housing options for singles to consider, though we feel that BTO options are somewhat limited (for now). Singles should review these HDB housing options for singles and consider carefully which is the best possible HDB housing option for singles that suits their requirements, affordability and plans.
Read Also: How Much Can You Save For Your Retirement If You Opt For A 4-Room BTO Flat Instead Of A 5-Room Flat?
This article was originally published on 3 January 2017 and updated to reflect the additional updates to HDB policy rules.
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