Singapore, 15 Feb 2023 FIRST-TIME homebuyers eyeing the HDB resale market will get up to S$30,000 more in housing grants to help them buy the pricier flats, but the support may prop up demand and prices for resale flats, analysts said.
While the increase in housing grants will alleviate concerns of young families in securing their first homes amid the supply crunch in Build-To-Order flats, some analysts noted that it may also lead to rising resale flat prices.
Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie, said: “Since more subsidies are given, we may expect more eligible buyers to buy at popular locations, such as mature estates. Others may buy slightly bigger flats with the additional grants.”
Sun from OrangeTee said that the increased ballot chances may lead to more eligible buyers applying for BTO flats, and can also help lower to middle-income earners own a home faster, especially if they are “cash-strapped and cannot afford a resale flat”.