CPF housing grants for a first-timer buying a resale 4-room flat or smaller will increase by S$30,000 to as much as S$80,000 according to Finance Minister Lawrence Wong in Budger 2023.
For buyers of a resale 5-room flat or larger, the housing grant will go up from S$40,000 to S$50,000.
First-timer refers to families who have not enjoy any housing subsidies in the past.
To be eligible for the grant, they must not own any private property and their income should not be more than S$14,000 a month.
First-timer singles buying resale flats will receive more grants too, but at half that of families. From S$25,000 to S$40,000 for singles buying a 2 to 4-room resale flat, and from S$20,000 to S$25,000 for buying a 5-room resale flat.
The income ceiling for singles buying HDB flat is S$7,000.
The increased grant takes effect from 14/02/2023 for resale applications submitted from 3.30pm. The additional grant amount will be credited to the respective first-timer buyer's CPF account from April onwards.
Deputy Prime Minister Lawrence Wong has committed to implement measures to help first-timer families with children, as well as young married couples aged 40 years old and below, who are buying their first home. Details to be unveil by the Ministry of National Development (MND) at Committee of Supply later this year.
Eligible families can be entitled to S$190,000 in grants when buying a resale flat by combining CPF Housing Grant, Enhanced CPF Housing Grant (EHG) and the Proximity Housing Grant.
The Enhanced CPF Housing Grant is for those buying from HDB or resale flats, and the grant amount depends on the applicants' household income. To qualify for EHG, the monthly household income for first-timer families should not exceed $9,000 (refer to Table 1 below). The buyer or his/her spouse must also be in continuous employment for the 12 months prior and remain working at the point of flat application.
Eligible first-timer singles must be aged 35 and above, with a monthly income of up to $4,500 in order to be eligible for EHG.
The Proximity Housing Grant (PHG) is for those buying a resale flat to live with or near their parents or their child.
A family with a monthly household income of S$1,500 or less, and living with their parents or children, can get a Proximity Housing Grant (PHG) of S$30,000, a CPF Housing Grant of S$80,000 if buying a smaller resale flat and another S$80,000 in Enhanced CPF Housing Grants. The total housing grants is therefore S$190,000.
"HDB resale price in 4-room flats will be prop up by the beneficaries of these increased housing grants", said Mr Chia, Managing Director of Propertyforsale Pte Ltd.
The cooling measure of 15-month wait out period implemented in September 2022 did not stop private homeowners aged 55 and above from downgrading to a 4-room or smaller resale HDB flat.
“The Government do not intend to bring down the resale HDB price but to make it more affordable for eligible first timers to buy it,” said Chia.