Overview

Beginning in July 2025, Singapore will implement a series of housing policy enhancements to support families, second-time buyers, and young couples. Among these changes, the new Family Care Scheme (Proximity) aims to strengthen intergenerational support by giving priority access to children and parents who wish to live closer together. These initiatives form part of broader efforts to improve housing affordability, promote family-centric living, and expand opportunities for aspiring homeowners.

1. Launch of the Family Care Scheme (Proximity)

The Family Care Scheme (FCS) (Proximity) is designed to provide higher priority for flat applicants—whether married or single—who plan to reside with or near their parents. This initiative will officially commence in the July 2025 Build-To-Order (BTO) sales launch.

Objective of the Scheme

The core objective of this policy is to promote proximity living, allowing families to provide better caregiving support, reduce commuting time, and strengthen family ties. The scheme consolidates and replaces existing provisions under the Married Child Priority Scheme (MCPS) and Senior Priority Scheme (SPS), while preserving priority access for married couples and seniors.

Flat Allocation Details for Singles

Currently, up to 65 percent of 2-room Flexi BTO flats and 5 percent of Sale of Balance Flats (SBF) are allocated to first-timer (FT) singles, after seniors’ allocation. Within these quotas:

• Up to 30 percent of 2-room Flexi BTO flats

• Up to 2 percent of SBF flats
  are reserved specifically for FT singles applying under the FCS (Proximity).

The remaining flat quotas for singles will continue to serve other eligible FT applicants.

2. Upcoming Component: Family Care Scheme (Joint Balloting)

In addition to the proximity scheme, a joint balloting component under the FCS will be introduced in October 2025. This will enable parents and children applying together for flats in the same BTO project to enjoy enhanced chances through a joint ballot. This second component is expected to further promote multi-generational living arrangements.

3. Increased BTO Allocation for Second-Timer Families

Recognizing the diverse housing needs of second-timer (ST) families, the government is increasing the proportion of BTO flats allocated to this group, beginning in July 2025.

New Allocation Quotas

• Up to 20 percent of 3-room Standard flats (up from 15 percent previously)

• Up to 10 percent of:

  • 3-room Plus and Prime flats

  • 4-room and larger Standard, Plus, and Prime flats
    (up from 5 percent previously)

Despite these increases, 80 to 90 percent of flats in these categories will continue to be reserved for first-timer (FT) families, ensuring that new applicants are still well-supported.

4. Enhancements to Housing Grant Schemes

a. Deferred Income Assessment (DIA) Scheme Adjustment

To support young couples ready to start their homeownership journey, the Deferred Income Assessment (DIA) scheme will be made more flexible. Previously, both applicants were required to be either full-time students or serving National Service (NS). Under the revised rules:

• Only one applicant now needs to meet this requirement.

This change enables more couples to apply for flats earlier and qualify for larger loans later, when their income is expected to be more stable and higher, without delaying their application process.

b. Increased Fresh Start Housing Grant

To assist second-timer public rental households with children, the Fresh Start Housing Grant will be raised from $50,000 to $75,000.

This grant supports eligible families who are purchasing:

• 2-room Flexi BTO

• 3-room Standard BTO

• SBF flats on shorter leases

The objective is to help more families transition from rental housing to permanent homeownership.

5. Upcoming Flat Supply in July 2025

The July 2025 BTO launch will include approximately 5,500 new flats across several towns:

• Bukit Merah

• Bukit Panjang

• Clementi

• Sembawang

• Tampines

• Toa Payoh

• Woodlands

In parallel, a Sale of Balance Flats (SBF) exercise will offer over 4,600 units, providing further opportunities for prospective buyers to secure a home.

6. Ongoing Policy Commitment

These policy updates reflect Singapore’s long-term commitment to ensuring that public housing remains:

• Affordable for diverse income levels

• Accessible for both first-time and second-time buyers

• Inclusive, fostering stronger family networks and better living standards

By refining housing strategies in alignment with evolving demographic and social trends, Singapore continues to shape a supportive housing environment for future generations.

Algene Toh

Senior Real Estate Salesperson

Asset Investment Brokers Pte Ltd

Email: admin@bsr2.com

Phone: +65 9008 8002

Visit us: profile

Disclaimer: The information presented on BSR2.com is intended for general informational purposes only. It does not constitute legal, financial, investment, or real estate advice and should not be relied upon as such. While every effort has been made to ensure the accuracy, reliability, and completeness of the content at the time of publication, all data is derived from publicly available sources and may be subject to change without notice. BSR2.com makes no representations or warranties of any kind, express or implied, regarding the suitability, timeliness, or accuracy of the information provided for any specific purpose. Users are strongly encouraged to seek independent advice from qualified professionals before making any decisions based on the content found on this website. BSR2.com shall not be held liable for any loss, damage, or consequence, whether direct or indirect, arising from the use of or reliance on the information provided. The content is intended as a general guide and does not take into account individual circumstances.

>