Income ceilings raised to help first-time HDB flat buyers

Even as more resale flats hit the market and competition heat up, help may be on the way to ensure that demand for resale flats does not wane.

Policy changes may boost demand for resale HDB flats

For the first time since 2015, the income ceiling for HDB flats has been raised. This could potentially increase the pool of buyers, in particular for resale HDB units.

A series of policy shifts will take effect from today, from higher grants to more flexibility in the flat-selection process.

The New Enhanced Housing Grant (EHG) will allow couples more flexibility in financial planning for a flat that suits their needs. The EHG comprises of the streamlining of 2 older grants:

  • The Addition CPF Housing Grant (AHG) – Allows for grants of up to $50,000 for applicants earning $5,000 and below.
  • The Special CPF Housing Grant (SPG) – Allows for grants of up to $40,000 for applicants earning $8,500 and below, and for 4-room or smaller flats in non-mature estates.

These 2 schemes will be combined as of today to form the EHG which allows for up to $80,000 in housing grants which will be available for all eligible buyers including resale flat buyers who may not have qualified for the SHG previously.

In addition, there will no longer be restrictions on the type and location of HDB flats which means first-time buyers will have more options when selecting and buying a new unit.

220B Bedok Central. HDB in Bedok. Picture: iProperty.

 New income ceilings for families and singles

There will also be new income ceilings for HDB flats and executive condominiums:

  • For HDB flats, the income ceiling for families and singles will be raised to $14,000 and $7,000 respectively. (Previously, the amounts stood at $12,000 and $6,000 respectively).
  • For executive condominiums, the income ceiling will be raised to $16,000 from the previous $14,000.

Analysts say that these latest changes will help sellers looking to upgrade as well as first-time flat buyers.

Could it be the win-win situation everyone has been looking for?

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