A pilot scheme will tie the price of some new public flats to buyers' incomes, marking a shift from the usual location-and-size pricing model.
KEY POINTS
IN SIMPLE TERMS
The government is testing a new way to price some HDB flats: instead of setting prices mainly by location and size, some flats will be priced based on how much the buyer earns. The idea is to help younger, lower-income families afford homes in popular, central areas that have become too expensive.
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Should new HDB flat prices be tied to buyers' incomes?
👍 👎 Vote ↓A pilot will tie the price of some new public flats more closely to buyers' incomes, a notable shift from pricing that leans mainly on location and flat size.
In selected projects, a portion of flats is offered at prices banded to household income, with resale conditions attached to discourage quick flipping for profit. The rest of each project is sold under the usual rules.
Prices in mature, central locations have pulled away from what younger first-timer households can comfortably afford. Income-linked pricing is meant to keep some homes in sought-after areas within reach of ordinary earners.
The pilot has split opinion. First-time buyers priced out of central areas largely welcome it, while some existing owners worry about effects on resale values and fairness, and others question whether the banding can be policed.
The first income-linked flats launch in upcoming sales exercises. Officials say take-up, resale behaviour and buyer feedback will decide whether the model expands or is quietly retired.
Should new HDB flat prices be tied to buyers' incomes?
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