HDB's new housing grant scheme may create uncertainty: Huttons

Huttons believed that only HDB Flat Eligibility applicants could use the grants.

HDB's changes in disbursing housing grants might create uncertainties in the resale market as not every buyer would be able to use the subsidy in purchasing flats, Huttons warned.

The housing board introduced a new HDB Flat Eligibility scheme that provides flat homebuyers a letter to inform them of their eligibility to purchase a new or resale flat.

Under the Flat Eligibility letter scheme, the assessed applicants and occupiers would share the housing grants as part of the core family nucleus.

READ MORE: HDB resale volume down 4.3% MoM in April

However, Lee Sze Teck, Huttons' Senior Director for Research, said that only applicants could use the grants to purchase flats, whilst occupiers would not use the half subsidy they received, which would instead stay in their CPF accounts.

They could still use the entire housing grant to purchase a resale flat if both parties in the core family nucleus are listed as applicants. If there is only one applicant, the other person gets less grant to help purchase an HDB flat.

Lee also said that the HDB Flat Eligibility letter scheme would not impact the private housing market as occupiers can buy private properties after the minimum occupation period.

As for the standardised 12-month income assessment period for the scheme, Lee said it would benefit commission-based workers whose income can fluctuate monthly.