In 2011, the Singapore Housing and Development Board introduced the CPF Special Housing Grant (SHG), which was initially intended to be offered to working families for the first time applying for a 2, 3 or 4 bedroom apartment in an immature and cared for property, eligibility requirements imposed by the Human Development Bank. Subsequently improved, as of August 27, 2013, the self-help group also benefits middle-income families who want to buy apartments with up to 4 bedrooms. Also, along with other housing benefits, the CPF (Central Savings Fund) housing allowance allows people to own their first apartments and be able to manage them for the long term.
In 2014, two-bedroom apartments under the Housing and Development Board’s recent BTO (Build-to-Demand) scheme were priced at S $ 10,000, a record low since the self-help kit was introduced in 2011, at despite rising construction costs.
The lower prices for the aforementioned two-bedroom apartments include S $ 60,000 in government grants, consisting of a private CPF housing grant of S $ 20,000 and an additional CPF housing grant of S $ 40,000, compared to the apartments available for advanced buyers. There are no government subsidies with prices starting at S $ 70,000.
The AHG is an additional subsidy that exceeds the Regular Market Support and CPF (Central Provident Fund) housing subsidy, and is available to both new apartment buyers and resale buyers.
The cheapest 2 room bto renovation is a two-bedroom apartment, which sold in June 2010 at Rivervale Arc for S $ 68,000. Since the self-help kit has only been available since 2011, government housing grants were less significant in 2010.
In Q1 2014, two apartments were priced at S $ 10,000: one at EastCrown @ Canberra, and the other at EastLace @ Canberra in Sembawang, with the biggest downside being the small floor areas, which come in two default sizes: 36 square meters or 45 square meters (It is important to note that standard 2-bedroom apartments are over 40 square meters in Singapore).
However, the much lower price is a testament to the fact that the Singapore government is loyal to its commitment to increasing the affordability of HDB apartments for low-income families. In recent years, for example, HDB has offered cheap, albeit small, apartments, despite rising construction costs. For example, the launch of the “Build-to-Demand” project in January 2014 saw a two-bedroom apartment in Woodlands Glen for S $ 73,000 without government grants and S $ 13,000 with grants. In essence, the smaller the apartment, the more support the government provides.
