Increase in CPF housing grants to drive demand for resale flats

The grant is being increased to $50,000 for 4-room flats.

One of the key things announced in the budget is the increase in CPF housing grants for resale flats.

Minister Heng Swee Keat said the grant is being increased from $30,000 to $50,000 for 4-room flats or smaller, while the increase for 5-room flats from $30,000 to $40,000. Real estate firm JLL said these grant increases are likely to assist more buyers keen to snapping up resale flats.

"The above CPF housing grant increases are likely to assist more buyers interested in resale flats and expected to sustain the increase in resale volume, which already rose 7.8 per cent in 2016 y-o-y. The resale price index, which has remained largely flat since 3Q15, will certainly stabilise or perhaps rise slightly with increased demand and higher resale volume," JLL said.

It added, "A healthy HDB resale market with stable prices would lift sentiments amongst HDB households aspiring to upgrade to private homes. Demand for private homes may improve more than earlier expected and help to stabilise the private residential market."