The ‘Step-Up’ housing grant announced by Prime Minister Lee Hsien Loong will benefit a total of 8,000 homeowners of two-room HDB flats in Singapore, media reports said.

Under the financial assistance scheme, low-income families currently living in such units will be provided assistance to upgrade to bigger three-room flats.

While final details on the grant are yet to be revealed, property analysts have made suggestions on how the scheme will work.

ERA Realty Key Executive Officer Eugene Lim believes that the S$15,000 resale levy paid by two-room flat owners when they buy directly from the housing board may be removed. “This is the quickest way to help this niche market,” he said.

Aimed at providing fair allocation of public housing subsidies, the resale levy is paid up by those who have either bought a subsidised flat from the HDB, or taken up a housing grant to buy a resale unit.

Higher subsidies may also be given to new flat buyers although the impact of such a move would depend on how the grant is structured, or whether it is open to just new units or would include resale flats, said Ong Kah Seng, Director at R’ST Research. 

“The key is to make upgrading affordable,” added Ong.

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg

 

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