Government mindful of potential impact of increasing housing grants in buoyant resale market: MND

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The CPF Housing Grant increases are specifically targeted at eligible first-timer home buyers with incomes below S$14,000 for families and S$7,000 for singles, says MND.

SINGAPORE: The Government is"mindful" of the potential impact of increasing Central Provident Fund housing grants in a buoyant resale market, the Ministry of National Development said on Thursday .That is why the grant increases do not go to all resale buyers, but are specifically targeted at eligible home buyers with incomes below S$14,000 for families and S$7,000 for singles, through the CPF Housing Grant," said the ministry.

The grant amount for eligible first-timer singles buying a four-room or smaller resale flat will be increased to S$40,000, and to S$25,000 for a five-room resale flat. Growth in resale prices may increase to between 8 per cent and 10 per cent, he said, upping his earlier projection of about 5 per cent.

"Sellers who raise their asking prices might run the risk of pricing themselves out of the market as buyers remain price conscious, given the high interest rates and uncertainties in the global economy," it added.Although it was the slowest increase in 2022, it was also the 11th consecutive quarter that the resale price index has risen.We recognise that the increase in resale prices has caused some anxieties among these home buyers," said MND.

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What else would people do with easy money other than to create bubbles ?

Actually if resale value goes up, will this cause BTO price to go up in tandem because of rise in property value ? 🤔🤔🤔

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