23 August 2026, Singapore - Prime Minister Lawrence Wong announced in his National Day Rally speech on 23 August 2026 that the monthly household income ceiling for the purchase of a new subsidised flat from the HDB will be raised to $16,000 from $14,000. The revised ceiling will also apply to the purchase of a resale HDB flat with a CPF Housing Grant and to the purchase of an HDB flat with an HDB housing loan. Separately, the monthly household income ceiling for eligible buyers of new executive condominium (EC) units from housing developers will be raised to $18,000 from $16,000.

Commenting on the announcement, Mr Kelvin Fong, CEO of PropNex, said:

We believe the policy adjustment is responsive to income growth, and the latest revision will enable a wider group of households to access public housing, as well as purchase new EC units from developers. This will benefit genuine homebuyers by expanding eligibility, improving affordability, and opening up more choices to households.

Raising the monthly household income ceiling

Previously, eligible families and singles buying new HDB flats were subject to a monthly household income ceiling of $14,000 and $7,000 respectively. The ceiling for eligible buyers purchasing new EC units from developers was $16,000.

With the revision, the monthly household income ceiling has been raised to $16,000 and $8,000 for eligible families and singles respectively, while that of new EC units has been increased to $18,000 (see Table 1). The household income will be raised for households who apply for an HFE letter from 24 August 2026.

Table 1: Monthly household income ceiling changes

Source: PropNex Research, MND/HDB. *EC changes effective for EC sites sold on or after 24 August 2026

The income ceiling was last raised in September 2019, and PropNex believes the latest change is responsive to rising household incomes. Based on data from the Department of Statistics Singapore (Singstat), the average monthly household employment income (excluding employer CPF contributions) among resident employed households rose by 22% from $11,250 in 2019 to $13,752 in 2025. The median monthly household employment income (excluding employer CPF contributions) rose by 27% over the same period, to $10,591 in 2025 (see Chart 1).

Chart 1: Average and Median Monthly Household Employment Income (Excluding Employer CPF Contributions) Among Resident Employed Households

Source: PropNex Research, Singstat, Note: Both series exclude employer CPF contributions, consistent with the basis on which HDB assesses household income.

Raising the monthly household income ceiling helps public housing keep pace with income growth and ensures it continues to cater to the housing needs of a broad segment of the population. For instance, an income ceiling of $16,000 would cover up to just under the 70th percentile of resident employed households, based on Singstat data for 2025 (see Table 2), reinforcing the role of public housing as a key pillar of housing affordability and inclusivity in Singapore. When the ceiling was last set at $14,000 in September 2019, it covered households up to slightly over the 70th percentile.

Table 2: Monthly Household Employment Income (Excluding Employer CPF Contributions) Among Resident Employed Households at Selected Percentiles

Source: PropNex Research, Singstat

The higher income ceiling will expand the pool of households eligible to purchase new BTO flats, allowing more middle-income families to access subsidised housing. This comes against the backdrop of HDB's sustained ramp-up in BTO flat supply over the past few years. We expect that this policy change could boost demand for new flats with possibly stronger interest for well-located BTO projects.

While raising the income ceiling will make more households eligible to apply for new flats, this may not necessarily divert much demand away from the resale market. BTO and resale buyers typically have different priorities, with resale flats appealing to those who need move-in ready homes or a preference for specific locations. The resale market also serves a wider pool of buyers, including singles seeking a larger flat and permanent residents, which should continue to underpin resale demand. Hence, from a market perspective, we do not expect the policy revision to exert significant impact on the HDB resale market.

The announcement comes at a juncture when the HDB resale market has started to stabilised following several years of strong price growth. HDB resale prices rose by 2.9% in 2025, the slowest pace since 2019, and have dipped by 0.4% in the first half of 2026.

For buyers of new EC units, the increase in the monthly household income ceiling to $18,000 will improve access by allowing more households-particularly those whose incomes have risen in recent years-to qualify for new ECs. It can also help from a home financing and affordability perspective, as prospective buyers may be able to secure a higher loan amount.

To illustrate, at a household income ceiling of $16,000 per month, prospective EC buyers would be able to secure a bank financing of around $1,000,000 based on a mortgage servicing ratio (MSR) of 30%, a medium-term interest rate floor at 4% p.a., and a 30-year loan tenure (see Table 3). With nearly $1.83 million being the median price of new EC units sold in 2026 (till 15 August), a further $366,750 would need to be funded from cash and/or CPF, on top of the 25% down payment and booking fee of $457,250.

Following the increase in the monthly household income ceiling to $18,000, the buyer will be able to borrow slightly more at about $1.13 million, reducing the further cash/CPF required to $240,750, based on the illustration. This will benefit more households, including HDB upgraders aspiring to purchase a new EC. However, it would also mean that buyers will see an increase in their debt obligations with higher monthly loan repayments, and they should do their due diligence before committing to a purchase.

Table 3: Illustration on new EC purchase financing at income ceiling of $16,000 and $18,000

Source: PropNex Research, URA Realis (*data up till 15 August 2026), **loan amount based on MSR of 30%, 4% p.a. interest, and 30-year loan tenure.

For developers, the higher income ceiling should enlarge the pool of eligible buyers for new ECs and support demand alongside the recent EC policy changes, which reserve 90% of units at new EC launches* for first-timer homebuyers for the first two years of project launch. However, the ability to translate a broader demand pool into stronger sales will still depend on keeping the overall price quantum within purchasing power of prospective buyers. (*For EC sites sold on or after 8 May 2026.)