The demand for Condo investments in Singapore has witnessed a remarkable increase, with a growing number of local and international investors showing keen interest. And it’s no wonder why, as Singapore boasts a strong economy, stable political environment, and exceptional living standards. With a diverse real estate market, Condo properties have emerged as a top choice for investors, offering convenience, amenities, and potential for high returns. In this article, we will discuss the perks of Condo investments, crucial factors to consider, and the essential steps that prospective investors need to take to tap into this flourishing sector in Singapore. As the demand for Condo properties continues to soar, this article serves as a valuable guide for those interested in this investment opportunity.
The Ministry of National Development (MND) has recently announced improvements to the Silver Housing Bonus (SHB) and Fresh Start Housing Scheme (Fresh Start) in this year’s Committee of Supply debate. These changes aim to support senior citizens in downsizing and improve access to public housing for lower-income households in HDB rental flats.
Eligibility for the SHB currently requires applicants to be at least 55 years old, have a monthly income below $14,000, own a property with an Annual Value (AV) not exceeding $21,000, and purchase a replacement HDB flat of three rooms or smaller (excluding three-room terrace).
Under the existing SHB scheme, applicants can receive a cash bonus of up to $30,000 by topping up their CPF Retirement Account (RA) with up to $60,000. This amount is prorated at $1 for every $2 top-up made into their RA.
Effective from December 1, 2019, seniors can qualify for the SHB cash bonus if their downsizing results in an overall increase in their CPF RA balance from any source, including CPF housing refunds. This means that those with outstanding loans on their residences using their CPF accounts may no longer need to make a cash top-up to be eligible for the SHB.
Additionally, the SHB has been expanded to include seniors who own higher-valued properties. Applicants who own properties with an AV of more than $21,000 but less than or equal to $13,000 can now qualify for the scheme. This change is estimated to benefit around 15,000 more seniors. The cash bonus received will be prorated at a rate of $1 for every $6 increase in their RA balance, up to $60,000. Successful SHB applicants who right-size to a two-room or smaller HDB flat (including Community Care Apartments) will also receive a non-prorated cash bonus of $10,000.
Seniors can apply for the SHB within a year of their second property transaction. Therefore, seniors who have completed their downsizing after December 1, 2024, can apply for the SHB under the updated scheme on December 1, 2025.
The Fresh Start Housing Scheme, which was launched in 2016, provides financial assistance and social support to Second Timers (ST) families who have previously bought a subsidised HDB flat, with the goal of helping them achieve homeownership.
Under the current scheme, applicants can purchase two-room flexi or three-room standard BTO flats with shorter leases, typically ranging from 45 to 65 years. These leases must last until the youngest owner turns 95, and the flats are subject to an extended Minimum Occupation Period of 20 years, compared to the usual five years.
The enhancements to the scheme include an increase in financial support. Eligible families will now receive $75,000 from the Fresh Start Housing Grant, up from the previous amount of $50,000. The new grant includes an initial disbursement of $60,000 credited to the applicant’s CPF Ordinary Account (OA) before the key collection date, with the remaining $15,000 disbursed over the next five years to support mortgage payments.
Furthermore, the eligibility criteria for the scheme have been expanded to include First-Timer (FT) families. While FT families are not eligible for the Fresh Start Housing Grant as they are eligible for the larger Enhanced CPF Housing Grant (EHG) of up to $120,000, they will still benefit from the reduced cost of shorter-lease BTO units and the social support offered by the programme.
FT families can apply for the Fresh Start scheme starting from April 2025, while the updated Fresh Start Grant amount will be implemented from the July 2025 BTO exercise.