Singapore, 16 Feb 2023 SINGAPORE - The higher housing grant announced during Budget 2023 could raise Housing Board resale flat prices for smaller flats in popular locations, said property analysts.
They expect the revised Central Provident Fund Housing Grant, which has increased by up to $30,000, to shift some demand to the HDB resale market, especially for four-room and smaller flats in mature or sought-after locations, as this group of buyers will receive the most grants. Sellers could take the chance to raise prices, they added.
OrangeTee & Tie senior vice-president of research and analytics Christine Sun said some sellers of four-room and smaller HDB resale units may take the opportunity to raise prices, in anticipation of buyers having greater purchasing power.
Ms Sun said sellers should be mindful that buyers face increasing cost pressures on other fronts. The ramp up in Build-To-Order flat supply by HDB could also dilute demand for resale flats, she noted.