The Singaporean real estate sector saw a surge in private home sales beginning in January 2023, with an increase in the government housing grant for resale HDB flats. Property experts expect these changes to be beneficial for the stability of housing prices and the national economy.
January saw a rise in the sale of new homes in Singapore. The data from the Urban Redevelopment Authority revealed that the sales of private new homes surged to 1044 units, a 109% increase from the previous month. This is the highest figure seen since February 2015. Developers attribute this rise to new launches of high-end projects in places like Orchard, which added to the influx of buyers looking for luxury homes.
The government also announced expansion of the resale flat housing grant, which doubled the maximum income cap to $14,000. Buyers will receive up to $30,000 if they are eligible, half of which is funded by the government, while the rest is taken up by a loan from HDB. Thus, those who are looking to rent out flats or flats with balconies which fall in the price range of S$230,000- S$310,000 can now benefit from this scheme.
To further stabilise the market and expand homeownership, cooling measures and regulatory measures have been put in place. The Additional Buyer’s Stamp Duty (ABSD) has been increased from 7% to 12%. This, coupled with a new loan to value limit and mortgage servicing ratio, is expected to rein in property market speculation and temper prices.
The new measures are expected to benefit potential buyers and sellers alike. First-time home buyers can now access higher grants and loans to supplement their deposits for a practical home loan and those looking to sell their homes can benefit from the increased demand and the lift in buyer sentiment.
- For buyers:
- Increased grants and loans
- Loan to value limit
- Mortgage servicing ratio
- For sellers:
- Increased demand for scaled-back properties
- Higher home loan limits
The excitement for the housing industry continues as property prices increase, HDB flats are being purchased and upgraded through increased grants, and success stories abound as more and more private home sales soar in January 2023. There is no doubt that the end of this year will bring many more housing success stories.
The property market in Singapore is picking up more steam in January 2023, with the number of private home sales having surged to unprecedented heights. Data from the Urban Redevelopment Authority (URA) revealed a whopping 67.4 percent increase in private home transactions compared to the previous month.
The government has been implementing numerous policies and initiatives to spur the growth of the housing market in the country. Among these measures is the introduction of an increased housing grant for resale HDB flats. This grant was recently increased to up to S$30,000 and aims to encourage more buyers to switch to private housing. The move has been widely welcomed and encouraged by the public, with potential buyers making the most of this support.
With the government’s help and the population’s interest, Singapore’s private residential property market has seen an uptick in recent months. Even with the pandemic still raging on, the market seems to be flourishing.
Furthermore, there has also been additional support for homeowners and buyers, in the form of rent relief. The government’s temporary rental relief scheme has been extended to property owners, providing yet more aid and assistance to homeowners in the property market.
In conclusion, Singapore’s property market is definitely on the rise, with the government’s numerous measures helping to spur on the market. Private home sales soared in January, the providing of housing grants for resale HDB flats provides a further boost for potential buyers, and the rent relief scheme eases the burden for homeowners. This is set to be a strong year for Singapore’s property market as the country looks to rebuild its economy.