View of HDB flats in Bukit Panjang. (Photo: Erwin Soo, Wikimedia Commons)
Some prospective home buyers are concerned that raising the CPF housing grants may cause flat sellers to jack up prices, reported The New Paper.
With effect from Monday (20 February), CPF housing grants were raised by $5,000 to $10,000 for first-timer singles, and by $10,000 to $20,000 for first-timer families, announced Finance Minister Heng Swee Keat in his budget speech.
M. L. Yong and her fiancé have been looking for a HDB flat near his parent’s home in central Singapore for the last two years. She said: “The grants are very welcome and make resale flats near his parents more affordable now.”
With a combined monthly income of $10,000, the couple plan to tie the knot later in the year.
“But what is to stop sellers from charging us more?” asked Yong.
While it could be possible that some sellers will to try to pocket the gains, industry experts believe prospective buyers like Yong need not worry at all.
“Some sellers will certainly try and perhaps raise prices by half the grant amount,” said Nicholas Mak, Research Head at SLP International Property Consultants. “But it is very unlikely for most sellers to do that.”
This is because the resale market had always been a buyers’ one, he said.
“Raise the prices? There’s a simple solution for the buyers. They simply go to the next flat,” he added.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
