Singapore's BTO public housing: homewrecker or dealmaker as some couples tie knot for flats?

Singaporean Rebecca* was in a relationship with her boyfriend for around four years when she decided it was time for them to buy a public housing flat together, a rite of passage for most citizens who aspire to become homeowners and settle down.

It has been a decades-long norm for young couples in Singapore to apply for a public housing flat before they are even engaged, provided they register their marriage three months before collecting the keys to their love nest, as part of the government's pro-marriage housing policy.

"We were just 24 when we collected the keys to our flat and 25 when we got married," recounted Rebecca, a 30-year-old banker. "But some issues happened between the wedding and key collection and I wanted to call it off, but I did not, mainly because of the flat."

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Now in the midst of a divorce, Rebecca said her greatest regret was going through with the marriage in the first place although she recognised she would be facing a huge financial burden at 25 had the couple annulled their union and forfeited the flat.

"It was way too much hassle to unwind the process ... And there were monetary penalties involved," she said.

For Rebecca, the price she paid for her break up was costly as she had signed the agreement for her flat and moved in, which meant that she had to give up the property and return housing grants, among other fees, all of which totalled about S$50,000 (US$36,800).

In Singapore, the traditional "Will you marry me?" proposal has long been replaced by the more pragmatic, though less romantic suggestion of "Do you want to apply for a flat with me?" Many young couples typically wait around four years before they move into their public housing units.

Under Singapore's Built-To-Order (BTO) public housing scheme, young couples who meet the eligibility criteria can apply for a subsidised flat together.

For example, eligible first-time home buyers may qualify for grants ranging from S$5,000 to S$80,000 depending on factors such as their average monthly household income and proximity to their parents' homes.

Compared with other types of public flats such as resale, BTO flats are typically cheaper and sold at prices below market value. A four-room Tanglin BTO flat, located in the central region of Singapore, started at S$565,000 while the median price of a resale HDB for a four-room in the same neighbourhood was S$897,000, according to data published by property tech firm PropertyGuru.

Couples have to apply for a BTO project they like, which may take several attempts due to the popularity of such flats before they can secure a flat. They would then have to sign an agreement for a lease before collecting their keys. Depending on which stage of the application they happen to be in, the costs vary if a break-up occurs.

Some buyers opt for HDB resale flats because of the long completion time and competition for a BTO. In February, a four-room Tanglin BTO project drew 1,078 applicants for 175 flats, despite a waiting period of nearly five years, according to the local broadsheet The Straits Times.

"Getting married has long been a requirement for getting a flat, which is a modern life-stage necessity, so the two things are intimately linked," said Norman Li, a psychology professor at the Singapore Management University.

However, high costs of rent, long wait times and attractive subsidies have pushed some to jump the gun, leading to messy break-ups and being forced to return up to tens of thousands of dollars to the Housing Development Board (HDB).

Others who can afford it have decided to remove themselves from the queue for a BTO flat altogether to avoid being pressured into marrying the wrong person just to secure a home.

"I believe sometimes you have to weather it out with someone for a significant amount of time to know whether you want to marry them," said 27-year-old Kelvin*, a banker. Kelvin, who has been dating his girlfriend for three years, said he planned to buy a condominium under his name instead of allowing a BTO project to dictate the timeline for his plans.

On average, a condominium costs over S$1,950,000, according to SmartWealth, a Singapore-based financial planning platform. The median monthly salary of Singaporeans in their twenties ranges from S$3,000 to S$4,600, according to the platform, which makes a condominium out of reach for most young adults.

In a recent study titled "Marry for Love, or Love of House?", three researchers delved into the relationship between marriage and divorce rates, and application for BTO flats.

It found that over the pre-2000 to post-2010 period, the marriage rate for women in their mid to late twenties increased from 45 per cent to about 60 per cent, while for men in their early thirties, the number rose from 22 per cent to 37 per cent, which coincided with the launch of BTO flats and the scheme's subsequent expansion.

Looking at the same group of respondents after five years, there was a corresponding increase in divorce rates, from 4 per cent to over 7 per cent and 3.5 per cent to over 6 per cent, for women and men, respectively.

"One possible explanation for the increase in divorce rates is that the BTO scheme might have rushed marriage decisions, which increase the likelihood of subsequent marriages," the study stated.

"For most young couples, it is a milestone in their lives to get married, have a house, to have children then advance in their careers. This Asian approach... or mentality is still quite entrenched," said Sing Tien Foo, a real estate professor at the National University of Singapore and one of the researchers behind the study.

According to the latest available official data, Singapore's divorce rate fell by almost 10 per cent to 7,107 cases in 2022.

It has become a "well-trodden path" for many, to quickly ballot for a flat when they have dated a partner for a considerable time, said sociologist Tan Ern Ser, but some have seen the downsides of being too hasty to getting hitched.

"The median age at first marriage is rising in Singapore, especially for women," Tan said. According to official statistics, the median age at first marriage for citizen grooms and brides was 30.5 and 28.8 years, respectively, in 2022, a slight rise from 30.1 years and 27.7 years a decade earlier.

Still, cautionary tales of others rushing to make it down the aisle to get a flat and breaking up thereafter were unlikely to sway most couples, Li said.

"I don't think that people will necessarily let a small spike in divorce rates - even if it's shown to be directly related to a more generous housing policy - change them in any way. Though cheaper housing may be a factor, it's also unlikely that it's the only reason why people are getting married," he said.

Given the importance many have placed on becoming a homeowner and the high costs of buying a house, most would take housing matters into account when considering marriage, added Li, suggesting that the correlation between the two remained strong in the minds of Singaporeans.

For 28-year-old Joseph*, who broke off a four-year relationship with his ex-girlfriend after they signed the lease to a unit, having the flat made "the decision to leave the relationship more difficult".

"I feel like in some twisted way, home ownership dictates the decision to get married. The long waiting time and the fear of unsuccessful balloting 'forces' a couple to want to get their flat booked as earlier as reasonably and responsibly possible. Many things can and will happen during the wait for their flat, and in some cases irreconcilable differences arise," he said.

However, a breakup was a messy business and could be due to a whole range of other factors beyond a house, Tan noted, citing other reasons such as class, ethnicity and religion as possibilities.

Looking back at her last relationship, which fell apart while she was in the process of securing a flat with her ex-boyfriend, 27-year-old digital communications executive Sophia* said she had no regrets.

"I always thought that we were both a good fit, was accustomed to doing life with him and didn't then imagine myself settling down with anyone else," she said. But the heartache and hassle have not dampened her spirits, and she remains hopeful that she will be able to make her dream of being a homeowner and getting married again come true.

"I told myself that I would genuinely want to know a person first, be more discerning than before and not dive into marriage as soon as possible, or just because we are compatible."

*Interviewees' names changed at their request

This article originally appeared on the South China Morning Post (SCMP).

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