Debated in Parliament on 25 Sep 2025.
Mr Low Wu Yang Andre asked the Minister for National Development (a) what specific metrics and quantitative thresholds are used to establish the affordability of a new HDB BTO flat; (b) whether they include (i) household income percentile targeted (ii) the house price-to-income ratio (iii) the assumed mortgage servicing ratio and (iv) the assumed loan tenure; (c) if so, what are the thresholds; and (d) what other metrics are considered.
The Government takes a holistic approach to assessing housing affordability, which depends on a buyer's budget and their choice of flat. We track a range of indicators, including the house price to income ratio and mortgage servicing ratio. As public housing serves a broad spectrum of Singaporeans, we evaluate affordability across different household income levels, flat types and locations.
To keep Build-To-Order (BTO) flats affordable, we apply significant market discounts to the assessed market values of all new flats. In addition, we provide generous grants of up to $120,000 to eligible first-timer families through the Enhanced Central Provident Fund (CPF) Housing Grant.
Affordability outcomes remain strong. In 2024, about nine in 10 first-timer families who collected keys to their BTO flats were able to service their HDB loan instalments fully using their CPF, with little or no cash outlay. This means that they had mortgage servicing ratios of 25% or less, better than international affordability benchmarks of 30 to 35%.
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