Resale HDB flat sellers unlikely to raise prices for first-time buyers despite higher grants, property agents say

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Resale HDB flat sellers unlikely to raise prices for first-time buyers despite higher grants, property agents say
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SINGAPORE — Although first-time resale flat buyers will receive increased housing grants, some property agents said they have not seen sellers raising their flat prices to capitalise on the larger budget.

Neither do the agents expect sellers to do so because that will reduce their chances of finding a buyer.

First-timers looking to purchase a four-room or smaller resale HDB flat can get an additional S$30,000 in housing grants, while those buying larger units can receive an extra S$10,000 in grants.PropNex agents Shiddique Asyraaf and Fahmi Hassan said they have not observed flat sellers increasing their prices since Mr Wong's announcement, though they reckon that some may raise them in the near future.

Agreeing, PropNex agent Wayne Teo said that sellers who choose to capitalise on the increased grants will run the risk of valuing themselves out of the market and therefore unable to sell their flats, especially to first-timers.Mr Teo pointed out that buyers’ main concern, particularly for first-timers, is the cash over valuation price, which is not covered by the housing grants and has to be paid in cash.

The 38-year-old commercial manager said: “The increased resale grant came at the right time. I have already agreed the price with the seller before the announcement of the grant, so I am not worried that the seller will increase the flat price. The additional grant will help in reducing the monthly repayment.”

“Even if sellers jack up the price, I still am not willing to compromise on my budget, even if I qualify for the increased grants, as I do not have a lot of savings or money in my CPF.” To stick to her budget, the 25-year-old lab tech said that she is willing to forgo other considerations for housing, such as the availability of nearby amenities and proximity to her workplace.

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