This is to meet the additional demand for houses after key policy changes.
National Development Minister Lawrence Wong revealed that 16,000 to 17,000 Build-To-Order (BTO) flats will be launched next year to meet additional demand after the roll-out of key policy changes this year, reported The Straits Times.
In September, the Ministry of National Development (MND) unveiled a new Enhanced Housing Grant (EHG) and raised the income ceiling for buyers.
With the new grant, first-time HDB flat buyers can enjoy up to $80,000 in grants when they purchase a new flat, and up to $160,000 in grant amount if they opt for a resale HDB flat in the open market.
In his blog post, Wong noted that the projected number of BTO flats for 2020 is more than the supply of 14,000 flats for this year.
“Besides ensuring housing affordability, we also want existing HDB flats to remain good homes for their owners. Hence, we are investing significantly in the upgrading of HDB estates,” he said.
In fact, the government has spent around $3 billion on various HDB upgrading programmes in the last five years.
“In the coming years, we will continue to do more to provide better, greener and smarter homes across all HDB precincts,” added Wong.
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Resale HDB flats to see sustained demand: PropertyGuru Outlook
According to the PropertyGuru Market Outlook 2020 report, BTO launches in mature estates, coupled with the high grant amount for resale flats could result in a slight price moderation of resale flats in the same estates. This is because the increased grant amount for resale flats will also give sellers more leverage in their asking prices.
Additionally, the increase in income ceiling for BTO and EC homes will also bring about a new pool of demand. BTO flats in mature estates are likely to be multiple times oversubscribed, funnelling first-time buyers into the resale market.
Get the Singapore Property Market Outlook 2020 Report here.
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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
