First-time HDB flat buyers to get enhanced grant; income ceiling raised
By Bong Xin Ying
/ EdgeProp Singapore |
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SINGAPORE (EDGEPROP) - From Sept 11, first-time HDB homebuyers will receive an enhanced housing grant that provides flexibility on flat type and location. The income ceiling for eligible buyers has also been raised for the first time since 2015.
The new Enhanced CPF Housing Grant (EHG) simplifies the existing Additional CPF Housing Grant (AHG) and the Special CPF Housing Grant (SHG) of up to $40,000 respectively.
The maximum grant under the EHG will be $80,000, with the income ceiling set at $9,000. This is higher than the AHG’s cap of $5,000 and the SHG’s cap of $8,500.
The new grant applies to both new and resale flat purchases. Unlike the SHG, the EHG has no restrictions on flat type and location.
“This may help to boost demand for older flats as many of them are in mature estates and stabilise the resale market. Previously, the SHG is for non-mature estates,” says Lee Sze Teck, Huttons Asia’s Director of Research.
This year, HDB is on track to supply 15,000 units (Picture Credit: Albert Chua/EdgeProp Singapore)
To be eligible for the EHG, first-time families have to purchase a flat with a remaining lease that covers them and their spouse until at least the age of 95.
According to HDB, families who buy flats with leases that do not cover them until the age of 95 will still receive grants. However, this will be on a pro-rated basis.
Meanwhile, eligible first-timer singles aged 35 and above who are earning not more than $4,500 a month can receive up to $40,000 under the EHG.
Both families and singles who purchase resale flats within 4km to their parents’ homes can still receive the Proximity Housing Grant on top of the EHG.
In addition, the monthly household income ceiling will increase from $12,000 to $14,000. This applies to eligible families purchasing a flat from the HDB, buying a resale flat with the CPF Housing Grant, or getting a HDB housing loan to buy a new or resale flat.
The monthly household income ceiling for first-time single buyers will also increase from $6,000 to $7,000.
Meanwhile, the monthly household income ceiling for households to purchase an executive condominium (EC) will be raised to $16,000 from $14,000 previously.
“With these enhancements, more young couples may want to buy BTO flats. To support this additional demand, we will increase our build-to-order (BTO) flat supply,” said Minister Lawrence Wong at the HDB Awards 2019 on Sept 10.
This year, HDB is on track to supply 15,000 units.
Huttons Asia’s Lee observes that the private residential market is unlikely to be affected by these announcements as units in this segment are not subject to the five-year minimum occupation period (MOP). Additionally, homeowners are not restricted to who they can sell their units to.
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