SINGAPORE — Even though they have failed in five previous attempts to apply for a new Build-to-Order (BTO) flat, financial analyst Vincent Ho, 27, and executive Geraldine Tan, 25, could stand to benefit from the policy changes announced during the National Day Rally.

The couple, who have put off tying the knot until they have a roof over their heads, could be eligible for additional housing grants, which would make buying their first home even more affordable.

The couple, who have a combined income of S$6,500, currently do not qualify for the additional grants.

“Any additional assistance will definitely help and although we were in the market for a five-room unit, it does make me consider a four-room unit instead,” said Ms Tan.

The couple have been looking for flats in Sengkang and Punggol so they can live near her parents.

Last night, Prime Minister Lee Hsien Loong said the Special CPF Housing Grant will be extended to middle-income households as well as for the purchase of four-room flats.

He also announced a new Step-Up Housing Grant to help families living in two-room flats upgrade to three-room units. This could potentially benefit Mdm Zubaidah Begum Sulaiman’s family. The 44-year-old lives in a two-room flat in Bedok North with her husband and two daughters and a bigger unit would help the family.

“It is a tight squeeze for us, especially now that my daughters are getting older,” said Mdm Zubaidah, who has a 12-year-old and an eight-year-old.

“Moving to a three-room flat would mean my daughters have a room to themselves and I cannot tell you how much that would mean to me to give my daughters a more comfortable life,” she said.

Analysts TODAY spoke to felt that both announcements would be well-received, but the impact on the overall housing market remains to be seen.

Details of the changes are expected to be announced soon.

“The impact would be minimal,” said Director at International Property Advisor Ku Swee Yong, who added that there was currently a very small crop of two-room flats so only a small number may qualify for the grants.

“The changes are very incremental, so I do not see them causing a radical departure from the current situation,” said Mr Colin Tan, Head of Research and Consultancy at Chesterton Suntec International.

“I think it’s a good direction the Prime Minister has set and I feel it’s important that he has indicated that he would not stop here and would continue to make changes.”