Prime Minister and Finance Minister Lawrence Wong unveiled Budget 2025 on 18 February 2025, outlining key initiatives aimed at tackling housing affordability, stabilising the property market, and enhancing financial support for seniors. With a strong focus on public housing and social assistance, the government has introduced measures to increase housing supply, provide higher grants for lower-income families, and expand healthcare and caregiving support for seniors.
These initiatives are expected to address rising concerns over property affordability, offer more options for homebuyers, and enhance long-term financial security for Singapore’s ageing population.
1. Increased BTO Supply & Resale Market Stabilisation
The government has pledged to launch over 50,000 new HDB flats over the next three years, with new developments planned in Woodlands, Bayshore, and Mount Pleasant. This comes as part of ongoing efforts to meet housing demand and ensure affordability, especially following the sharp increase in property prices during the pandemic.
Finance Minister Lawrence Wong emphasised that the government will continue to pay close attention to public housing, building on its commitment to ramp up Build-to-Order (BTO) supply over the coming years. This approach is intended to ensure homeownership remains accessible for Singaporeans while balancing long-term housing demand.
Key Details:
1. The government has significantly ramped up the supply of BTO flats, leading to stabilised application rates, which have now fallen below pre-COVID-19 levels.
2. Of the 19,600 BTO flats set to be launched in 2025, around 3,800 units (20% of total supply) will have a waiting time of less than three years, providing faster access to housing for eligible homebuyers.
3. HDB has also introduced its largest-ever Sale of Balance Flats exercise, offering 5,500 flats islandwide, with another similar exercise expected later in the year.
4. While resale flat prices remain a concern for many Singaporeans, the government’s cooling measures and increased supply pipeline are expected to gradually stabilise the resale market.
This push for increased supply reflects the government’s commitment to ensuring that housing remains accessible and affordable, while also balancing long-term market stability.
2. Enhanced Fresh Start Housing Scheme for Low-Income Families
To provide greater housing support for lower-income and vulnerable families, Budget 2025 includes enhancements to the Fresh Start Housing Scheme. The scheme, which supports families in public rental flats looking to transition into homeownership, will now offer higher grants and expanded eligibility criteria.
Key Details:
1. Second-time homebuyers living in rental flats will receive a higher grant of $75,000 (up from $50,000) when purchasing 2-room flexi or 3-room Standard flats on a shorter lease.
2. First-time homebuyers with children living in rental flats will now be allowed to purchase shorter-lease flats, recognising that some families may face financial challenges in committing to a full 99-year lease.
3. Flats under this scheme will have a 20-year Minimum Occupation Period (MOP) to ensure long-term housing stability and prevent speculative selling.
The scheme is designed to help vulnerable families achieve homeownership while ensuring they have access to affordable housing options suited to their financial circumstances. With these changes, more families will have the opportunity to secure a stable home and transition out of rental housing.
3. Expansion of Housing & Healthcare Support for Seniors
Recognising Singapore’s ageing population and the growing need for senior-friendly housing and healthcare support, Budget 2025 introduces major enhancements to housing modifications, MediSave benefits, and long-term care subsidies. These measures are aimed at ensuring greater financial security for seniors while enabling them to age with dignity and independence.
Key Details:
1. The Enhancement for Active Seniors (EASE) scheme will now extend to private property households for the first time. Previously, the scheme only covered HDB flats, providing subsidies for senior-friendly home modifications, such as grab bars, ramps, and slip-resistant flooring. The extension will run for three years until 2028.
2. The introduction of a five-year Matched MediSave scheme will help lower-income seniors build their healthcare savings. Under this initiative, the government will match voluntary MediSave top-ups dollar-for-dollar, up to $1,000 per year.
- Eligible seniors must be between 55 and 70 years old, have a MediSave balance below half the prevailing Basic Healthcare Sum, and own no more than one property.
- The scheme is expected to benefit 184,000 CPF members, ensuring they have more savings for medical expenses in their later years.
3. Subsidies for residential long-term care services will be increased by up to 15%, with the maximum qualifying per capita household income raised to $4,800. Seniors born in 1969 or earlier will receive an additional 5% subsidy.
4. The Home Caregiving Grant will be raised from $400 to $600 per month, easing the financial burden on families providing care for elderly members.
These initiatives reflect the government’s focus on helping seniors age comfortably, supporting caregiving families, and ensuring long-term financial stability for lower-income elderly Singaporeans.
In Summary: Continued Commitment to Housing & Social Support
Budget 2025’s housing and senior care measures reflect the government’s ongoing efforts to ensure affordability, stability, and social support in a rapidly evolving landscape. The ramp-up in BTO supply and measures to stabilise the HDB market, especially the resale market in the long-term, are designed to provide homebuyers with more options while addressing concerns over affordability.
Enhancements to the Fresh Start Housing Scheme offer stronger financial support for low-income and vulnerable families, ensuring a smoother transition to stable homeownership. At the same time, expanded housing and healthcare initiatives for seniors will help them better manage medical costs and caregiving responsibilities. These proactive measures reinforce the government’s commitment to strengthening housing accessibility, improving social security, and providing continued support for Singaporeans in the years ahead.
