Here's how Singapore's new housing subsidies work

Get incentives for moving back with mom and pop.

Married couples looking to live closer to their parents will now get incentives for doing so. The Ministry of National Development today released more details about the new Proximity Housing Grant (PHG), which will allow extended families to live closer together.

Under the PHG, all Singapore citizen families who buy a resale flat to live with or near their parents or married child will receive a grant of $20,000.

Eligible singles will also enjoy a grant of of $10,000 if they buy a resale flat with their parents. 

The PHG will replace the Higher-Tier CPF Housing Grant. It doubles the additional grant quantum for eligible first-timer families from $10,000 to $20,000, as well as the grant quantum for singles from $5,000 to $10,000.

Unlike the Higher-Tier CPF Housing Grant, all Singaporeans are eligible for PHG once, regardless of whether they had enjoyed housing subsidies before and regardless of whether they own private property. The PHG will also apply to all income levels.

The grant recipients and their parents or married child must live with or in close proximity to each other for at least 5 years, the MND said. 

With the implementation of PHG, the Higher-Tier CPF Housing Grant will be discontinued.

The PHG will benefit a wide spectrum of Singaporeans looking to live with or near their parents or married child, according to the MND. 

These include young courting couples who wish to live with or near their parents, married couples who bought their first flat far from their parents but now wish to move back closer, and parents who wish to monetise to a resale flat with or near their married child, including those who have enjoyed housing subsidies before or are private property owners.