SINGAPORE: More private property owners can now qualify for the government’s Silver Housing Bonus (SHB), which offers cash incentives to seniors who sell their homes, downsize to a smaller public flat, and top up their retirement account.
The scheme will now include seniors with “lower value” private properties with an annual value (AV) between S$21,000 and S$31,000, as reported by The Business Times.
The changes, announced by National Development Minister Desmond Lee on Wednesday (Mar 5), will allow more than 15,000 additional seniors to qualify. Also, over three-quarters of all residential properties will now be covered under the scheme.
The revised SHB scheme will provide eligible seniors up to S$40,000 in cash bonuses. The move is to encourage seniors to downsize, monetising their homes to boost their retirement savings.
According to The Business Times, properties with an AV between S$21,000 and S$31,000 are estimated to be worth between S$1 million and S$1.5 million.
Although the changes may increase demand for smaller HDB flats, the Ministry of National Development (MND) and the Housing and Development Board (HDB) do not expect a major impact on the resale market.
As of Dec 31 last year, around 2,535 households had taken up the SHB since its launch 12 years ago. In the last two years, around 400 to 500 households per year have participated in the scheme. Seniors aged 55 and above could receive up to S$30,000 for downsizing to a three-room or smaller flat—new or resale—if their HDB or private property had an AV of S$21,000 or less.
To get the full S$30,000 bonus, they had to top up S$60,000 from their home sale proceeds to their Central Provident Fund (CPF) Retirement Account (RA) and join CPF Life.
With the enhanced scheme, starting Dec 1, 2025, seniors will qualify for the bonus as long as they commit up to S$60,000 in their CPF RA, whether from cash proceeds or CPF housing refunds. Those who move into a two-room flat or a community care apartment will get an additional S$10,000, bringing the total possible bonus to S$40,000.
While private property owners with an AV between S$21,000 and S$31,000 will now receive a lower bonus, they will only get up to S$10,000 for downsizing to a three-room flat and up to S$20,000 for a two-room flat.
AV refers to the estimated yearly rent a property could earn if rented out, excluding costs like furniture, furnishings, and maintenance. Properties with an AV between S$21,000 and S$31,000 could generate a net monthly rental income of S$1,750 to S$2,583 after deducting these costs.
The government will also extend the Enhancement for Active Seniors (Ease) programme to private property households with at least one senior. This scheme helps cover the cost of senior-friendly fittings and was announced by Prime Minister Lawrence Wong in Budget 2025.
The subsidy will cover 75 per cent of senior-friendly fittings costs, capped at S$1,200.
Over 70,000 households are expected to benefit from the programme. It will be rolled out over three years and is set to start in the first quarter of 2026. /TISG
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