With the upcoming General Elections in play, the government as announced a number of changes in HDB housing grants and income ceilings. How will this change the resale HDB flat landscape? Will more be going for new HDB flats or be seeking out resale flats in mature estates to take advantage of the proximity grants?
A summary of the changes include:
- Higher income ceilings – $12,000 for HDB flats and $14,000 for Executive condominiums (ECs).
- Special Housing Grant (SHG) – $8,500 income ceiling and $40,000 grant.
- Proximity Housing Grant – A new $20,000 grant offered to families who live in a resale flat near parents or married children. Singles will also receive $10,000 should they choose to purchase a resale flat with their parents.
Though it may seem like buyers may be more keen to purchase resale flats especially in mature estates, property analysts are more prudent with their predictions, stating that as long as the cooling measures are in place, demand may maintain its current level. Sellers may be able to command slightly higher prices in more popular estates, but the rise in prices will be slow. Buyers are negotiating for prices closer to median prices or recent sale prices.
The number of flats sold last month had dropped by 6.8 per cent, partly due to the Hungry Ghost month when buyers hold off purchasing properties. Prices of four- and five-room HDB flats have however risen by 0.3 per cent while three-room HDB flat and EC prices dipped by 0.7 per cent.