BTO flats in mature estates cost more but must still be affordable: Desmond Lee

They must remain so for a wide spectrum of Singaporeans, he says

- Michelle Ng

Build-To-Order (BTO) flats in mature estates are more expensive than those in less popular locations with fewer amenities. But they must still be affordable to a wide spectrum of Singaporeans to ensure overall equality in the public housing system.

This is important as more and more new flats are being built in mature estates, said National Development Minister Desmond Lee.

All new flats should continue to be affordable and accessible to Singaporeans within the BTO eligibility band. Yet location and other attributes must also be taken into account when prices are set, said Mr Lee in a wide-ranging interview with The Straits Times last Monday.

Naturally, those in mature estates or flats in areas that have better attributes will be priced higher. "I think Singaporeans accept that", he added.

The broad aim of Singapore's public housing policy is to ensure fairness in the way subsidies, housing grants and market discounts are given, while maintaining affordability.

Mr Lee said that the eligibility band for BTO flats is "very broad", covering low-income families all the way to upper-middle families earning up to $14,000 - around the 70th percentile of household incomes.

In 2019, the income ceiling was raised from $12,000 to $14,000.

The push towards greater housing equity is part of overall efforts under the Build pillar of the Forward Singapore exercise, which is now midway through. The other five pillars cover issues relating to jobs, education, social support, environment, and the Singapore identity.

The exercise, which focuses on shaping Singapore's future and social compact, has engaged more than 14,000 Singaporeans since it was launched in June 2022.

Now in the second and final phase, it will conclude in the second half of 2023 with a report.