TheHouseSale.Info

The one stop portal for all your Singapore property info

Enhanced grants expected to lift resale HDB market

Enhanced grants expected to lift resale HDB market

The move to enhance the CPF Housing Grant for first-time buyers of resale HDB flats is expected to help sustain the recovery in resale transactions and stabilise resale prices.

While most market watchers were not surprised that the government chose against tweaking any property cooling measure, such a boost in housing subsidy for resale flats did catch many off guard.

Some consultants posit that this is to help soak up additional HDB resale supply as more people are taking possession of newly completed Build-To-Order (BTO) flats, executive condominiums (ECs) and private homes.

The grant, targeted at the resale market, is timely as a large volume of BTO HDB units, totalling about 18,000, reached the end of their minimum occupation period (MOP) as at end-2016. This is 80 per cent higher than the number of units that reached MOP in 2015.

As part of the Budget 2017 measures announced on Monday, the government will increase the CPF Housing Grant for first-timer families and first-timer singles buying resale HDB flats.

With the enhancements, first-timer families can now receive up to S$110,000 in grants, including the Additional CPF Housing Grant (up to S$40,000) and Proximity Housing Grant (S$20,000).

Similarly, eligible first-timer singles buying resale flats can enjoy up to S$55,000 in housing grants, including the existing Additional CPF Housing Grant (up to S$20,000) and Proximity Housing Grant (S$10,000).

Minister for National Development Lawrence Wong said in his Facebook post on Monday that this would help those who wish to live near their parents in mature estates where there are fewer BTO projects, or those who wish to move into their own home quickly to start a family.

The latest BTO exercise, which closed on Monday, saw overwhelming applications for flats in mature estates Clementi and Tampines, which were over three times subscribed. Flats in Punggol were about 2.7 times subscribed; 5-room flats in Punggol saw the highest subscription by flat-type at 5.2 times.

Last year, resale HDB transactions rose for the second year in a row - by 7.8 per cent from a year ago to 20,813 even as resale prices dipped 0.1 per cent over the same period.

This latest measure is not seen as an intention to move the residential market, though a healthy HDB resale market with stable prices may lift the sentiment for upgrading, hence resulting in a positive spillover effect for private housing.

With the expected boost in demand arising from the increased housing subsidy, resale prices should either stabilise or rise slightly.

However, some market watchers were disappointed with the lack of relief on taxes on vacant land and properties or land slated for development.

"Any reduction in property tax would certainly help developers and owners of vacant properties cope with the slowdown in the property market," said KPMG head of real estate Tay Hong Beng.

On property cooling measures, he felt that there was nothing to stop the government from reviewing the situation at a later stage. "Changes to the rules could probably be brought about in a gradual manner in order not to unintentionally create an immediate spike in demand in the property market."

Adapted from: The Business Times, 21 February 2017

Views: 39

Add a Comment

You need to be a member of TheHouseSale.Info to add comments!

Join TheHouseSale.Info

Badge

Loading…

Notes

Hdb to Pte avoid ABSD issue

Created by Geoffery Ho Feb 14, 2019 at 10:18pm. Last updated by Geoffery Ho Feb 14.

The Troubling Implications of Owning a 40-Year old HDB Flat

Created by Geoffery Ho Feb 14, 2019 at 9:21pm. Last updated by Geoffery Ho Feb 14.

HDB Industrial New Policies - 1st June 2015

Created by Geoffery Ho Jul 22, 2015 at 12:53pm. Last updated by Geoffery Ho Jul 22, 2015.

What you should know about ECs

Created by Geoffery Ho Oct 1, 2014 at 11:34am. Last updated by Geoffery Ho Oct 1, 2014.

8 Things You Should Know When Using CPF for Property

Created by Geoffery Ho Aug 19, 2014 at 9:32pm. Last updated by Geoffery Ho Aug 19, 2014.

Eligibility to Buy PTE or HDB

Created by Geoffery Ho Jun 6, 2011 at 7:03pm. Last updated by Geoffery Ho Aug 18, 2014.

Can Private Property Owners (Local or Overseas) buy HDB Flat (New or Resale)?

Created by Geoffery Ho Jun 3, 2014 at 9:21pm. Last updated by Geoffery Ho Jun 3, 2014.

CPF property rules: 4 things you may not know

Created by Geoffery Ho Aug 2, 2009 at 11:15pm. Last updated by Geoffery Ho May 8, 2014.

Thinking Of A Career With Us?

Created by Geoffery Ho Jun 29, 2009 at 10:54pm. Last updated by Geoffery Ho May 7, 2014.

HDB & PTE : Online e-Services & Utilities Application

Created by Geoffery Ho Oct 21, 2009 at 11:53pm. Last updated by Geoffery Ho Apr 13, 2014.

Progessive vs Deferrment Payment Charts

Created by Geoffery Ho Feb 8, 2014 at 1:38am. Last updated by Geoffery Ho Feb 8, 2014.

Can You Trust Your Property Agent in Singapore? Take these 5 Steps to Confidence!

Created by Geoffery Ho Nov 11, 2013 at 11:31pm. Last updated by Geoffery Ho Nov 11, 2013.

Commission GuideLines

Created by Geoffery Ho Sep 21, 2013 at 10:58pm. Last updated by Geoffery Ho Sep 21, 2013.

Total Debt Servicing Ratio (TDSR) and How It Affects Your Loans

Created by Geoffery Ho Aug 26, 2013 at 11:27pm. Last updated by Geoffery Ho Sep 14, 2013.

Banks' Home Loan Comparison & Mortgage Calculators

Created by Geoffery Ho Oct 14, 2008 at 1:05pm. Last updated by Geoffery Ho Apr 16, 2013.

Financing A Commercial Property

Created by Geoffery Ho Apr 16, 2013 at 12:12am. Last updated by Geoffery Ho Apr 16, 2013.

URA Guidelines On Retail Unit Size & Corridor Width

Created by Geoffery Ho Apr 8, 2013 at 12:25am. Last updated by Geoffery Ho Apr 8, 2013.

THE HOUSING LOAN INFO & TIPS

Created by Geoffery Ho Sep 18, 2008 at 1:26am. Last updated by Geoffery Ho Mar 31, 2013.

Type Of Property & EC in Singapore

Created by Geoffery Ho Mar 11, 2013 at 10:00pm. Last updated by Geoffery Ho Mar 11, 2013.

Forum

Draft Master Plan - West Economy

Started by Geoffery Ho in Information May 7, 2014.

CPF FOR PURCHASE OF HDB FLATS LESS THAN 60 YEARS 2 Replies

Started by Geoffery Ho in Information. Last reply by Geoffery Ho Apr 13, 2014.

How Singapore’s Latest HDB Cooling Measures Affect You 1 Reply

Started by Geoffery Ho in Information. Last reply by Geoffery Ho Oct 8, 2013.

HDB flat sellers left in tight spot by new rules

Started by Geoffery Ho in Question Aug 29, 2013.

Watch the wording in 'offer to purchase' letter

Started by Geoffery Ho in Others Aug 14, 2013.

Why Singapore's property continues to rise...

Started by Geoffery Ho in Question Apr 16, 2013.

3 SMARTER WAYS TO SAVE INTEREST ON MORTGAGE

Started by Geoffery Ho in Information Apr 16, 2013.

Feng Shui Tips to Revitalize Your Home 2 Replies

Started by Geoffery Ho in Leisure. Last reply by Geoffery Ho Sep 29, 2012.

3 Lessons From the Sky Habitat Sale

Started by Varchel in Information Sep 17, 2012.

FAQs 3 Replies

Started by Geoffery Ho in Question. Last reply by Geoffery Ho Jul 12, 2012.

99-Year vs Freehold

Started by Geoffery Ho in Information. Last reply by Geoffery Ho Sep 21, 2010.

THIS WEEK'S TOPIC: Keeping speculators at bay 8 Replies

Started by Geoffery Ho in Question. Last reply by Geoffery Ho Sep 14, 2010.

Potential Growth Areas (Residential) - Where to buy?

Started by Geoffery Ho in Others Mar 23, 2010.

How to avoid conflict in real estate transaction 2 Replies

Started by Geoffery Ho in Others. Last reply by Geoffery Ho Nov 9, 2009.

© 2019   Created by Geoffery Ho.   Powered by

Badges  |  Report an Issue  |  Terms of Service