The Prime Minister’s National Day Rally speech last night unveiled a number of public housing initiatives, some of which had been anticipated earlier, such as the increase in the income ceilings for eligibility to purchase HDB Build-to-Order flats and Executive Condominiums (necessary to adjust for rising incomes).

Most significantly though in my mind was the PM’s announcement of a new Proximity Housing Grant that can help to address some of the issues arising from an ageing population, by providing financial support for families to stay close together, and complementing the priority purchase schemes currently already in place.  This housing grant would be applied to the purchase of a HDB resale flat near their older parents by young couples, or vice versa by the older couple looking to move closer to their married children. Every Singaporean household would be eligible for this Proximity Housing Grant, whether they are a first-time buyer or not.

By allowing closer residential arrangements amongst the different generations in a family, the scheme could help to facilitate the inter-generational flow of care not just for the purpose of the young children in the various households, but also for the older couple who may wish to both give and receive care from their family members.

Christopher Gee is a Research Fellow at IPS. View his profile here.