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[SINGAPORE] For a 20-something-year-old, transiting to adulthood can be exciting. Bid farewell to years of formal schooling and start achieving financial independence by being economically productive.

Move out from living with parents and get the freedom, excitement plus responsibility of living on one’s own. 

Today, young adults here have many housing options. They can rent a studio condo unit or a Housing and Development Board (HDB) flat; be part of a community living in a co-living space; or rent a room in a condo home or HDB flat, perhaps with friends.

A 20-something-year-old local who seeks to live on his or her own will likely incur rental expenses, of course. 

Find a marriage partner and the equation changes. Subject to meeting eligibility criteria, a pair of 20-plus-year-old locals who plan to tie the knot can start their homeownership journey by buying a subsidised flat from HDB and possibly even receive housing grants. Owning an HDB Build-To-Order (BTO) flat gives a couple a good place to stay and the opportunity to build wealth.

Is it time to let younger eligible singles buy HDB BTO homes?

Moving from 35 to 28

Currently, subject to meeting other eligibility criteria, an unmarried Singapore citizen buying an HDB flat – whether alone or with other single(s) – must be at least 35 years old before he/she can purchase a new two-room flexi flat.

Adult singles are a growing and important demographic. More young adults marry later and a significant number never marry. 

Perhaps 28 years is a suitable age for eligible local singles to buy HDB BTO homes as many would have been working for more than five years by then.

Among the resident population in 2024, the proportion of singles in the 25-29 years age group was 83.4 per cent for males and 73.4 per cent for females, while that for those aged 30-34 years was 45.2 per cent for males and 35.3 per cent for females.

In contrast, among the resident population in 2000, the proportion of single males was 64.2 per cent and single females was 40.2 per cent for those aged 25-29 years, while that of single males was 30.7 per cent and single females was 19.5 per cent in the 30-34 years age group.

Land is scarce in Singapore. Furthermore, HDB incurs a large deficit for its homeownership segment, which covers the development and sale of flats to eligible buyers and disbursement of housing grants to eligible households.        

As government policies promote marriage and parenthood, couples rightly get priority over singles in public housing.

Still, even if the age for eligible singles to buy HDB homes goes down to 28 years, eligible couples continue to enjoy priority as they can buy HDB homes at a younger age. For example, subject to meeting other criteria, a 21-year-old local can buy a flat from HDB as a married couple or fiance and fiancee.

Importantly too, an eligible couple applying for a new HDB home can choose up to a five-room flat. 

Letting singles buy new HDB homes at a younger age duly recognises the fact that many young adults are single. 

From a financial view, lowering the minimum age for a single person to buy an HDB home from 35 to 28 years can mean saving seven years worth of rental expenses. 

Take a single adult who spends S$1,000 a month renting a room in an HDB flat, thus incurring annual rental expenses of S$12,000 and total rent over seven years of S$84,000. The said total rental expenditure amounts to 47 per cent of a new HDB two-room flexi flat costing S$180,000.

In addition, a 28-year-old single adult who takes a 25-year loan from the HDB to buy a new HDB flat can enjoy the flexibility that comes with paying off his home loan by the age of 53.

Crucially, lowering the minimum age for eligible singles to buy new HDB homes may mean more singles can buy flats at subsidised prices directly from HDB because they do not bust the monthly income ceiling. Currently, the monthly household income ceiling for singles buying new HDB homes on their own or with other singles is S$7,000.

In short, reducing the minimum age for local singles to buy new HDB homes could help singles significantly in achieving financial adequacy for their retirement years. In turn, society gains when more retirees are financially self-sufficient amid rising life expectancy.

Tighter resale flat restrictions

Concurrently, consider tightening options for singles in the HDB resale flat market, alongside relaxing the age at which singles can buy new HDB homes.

Today, eligible singles can buy HDB resale prime two-room flexi flats as well as all flat types for HDB resale unclassified, standard and plus flats, excluding 3Gen flats.

Perhaps, given families often have more pressing space needs, singles should not compete with families for larger HDB resale flats such as four-room or five-room units. 

Prices for some larger HDB resale flats are lofty – could such prices be moderated somewhat by removing demand from high-earning singles?

Restricting singles to three-room and smaller HDB flats appears reasonable. A three-room flat may be sized at more than 700 square feet (sq ft) and come with two bedrooms, whereas a two-room flexi flat could be around 500 sq ft or less and come with one bedroom.

Certainly, singles seeking a larger home can explore other options such as private homes or executive condominiums subject to meeting eligibility criteria.

While meeting housing needs of a changing and growing population in land-scarce Singapore amid rising fiscal spending needs is challenging, having a high ownership rate among residents helps anchor locals to homes and lets them share in wealth creation.

This can be achieved if local singles can buy an HDB home at a younger age, while larger HDB resale flats are reserved for families.