GOVT RAISES INCOME CEILING FOR HDB FLATS
The government has announced that the Housing and Development Board (HDB) will be raising the income ceiling for HDB flats, from S$8,000 to S$10,000.
This will be followed by a raise in the income ceiling for executive condominiums (ECs) from S$10,000 to S$12,000.
In addition, it has promised to launch another 25,000 build-to-order (BTO) flats next year.
The higher income ceiling — which means that more people can now qualify for new HDB flats or ECs — was announced by Prime Minister Lee Hsien Loong in his National Day Rally speech yesterday.
“This is something that people have been waiting for,” said Mohamed Ismail, Chief Executive Officer of PropNex.
“It will be warmly welcomed, especially by those couples who are at the crossroads right now,” he added.
With the latest hike, the government is expecting more buyers for BTO flats.
Some market watchers expect the higher income ceiling for ECs to stave off demand for mass market condominiums.
“We estimated a probable five percent to 15 percent equivalent to 700 units to 2,000 units decline in annual new housing demand in the private market provided public housing supply keeps pace with the increase demand by this group of new eligible buyers,” said Dr. Chua Yang Liang, Singapore Head of Research and Consultancy at Jones Lang LaSalle.
“Island wide average private residential property prices maintain at zero to 1.5 percent growth per quarter,” he added.
Info courtesy - PropertyGuru.com.sg
