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\nNew Private Home Sales Soared in January 2023, Housing Grant for Resale HDB Flats Increases, and More14th February to 20th February 2023
\nNew private home sales, excluding executive condominiums (ECs), surged 130% to 391 units Month-on-Month (MoM) in January 2023, from 170 units in December 2022. Meanwhile, the Ministry of National Development (MND) expects the increased\u00a0CPF Housing Grant for HDB resale flats to benefit more than 10,000 first-time homebuyers\u00a0during its first year of implementation.
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\n1. New private home sales soared 130% in January 2023
\nNew private home sales, excluding ECs, surged 130% to 391 units in January 2023 from 170 units in December 2022, reported CNA citing Urban Redevelopment Authority (URA) data.
\nThe spike in sales was attributed to the launch of new projects, particularly Sceneca Residence\u00a0which accounted for 40.2% of January 2023\u2019s total sales, and the return of mainland Chinese buyers.
\nOn an annual basis, however, new private home sales declined 42.8%.
\nThe Outside Central Region (OCR) emerged as the most popular region among buyers, with 185 units sold in January 2023. The Core Central Region (CCR) and the Rest of the Central Region (RCR) saw 158 and 48 units sold, respectively.
\nMeanwhile, acquisitions by foreigners increased 58.3% MoM to 57 units in January 2023.
\nLee Sze Teck, Senior Director of Research at Huttons Asia, said super wealthy Chinese were believed to be behind some of the acquisitions at Klimt Cairnhill \u2013 where 14 of the 17 units sold went to foreigners.
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\n2. Increased CPF housing grant for HDB resale flats to benefit over 10,000 first-time buyers
\nMND expects the increased CPF housing grant for HDB resale efforts to benefit more than 10,000 first-time homebuyers during its first year of implementation, reported The Business Times.
\nThe Government has increased the housing grant for first-time buyers of resale HDB flats, with eligible families getting up to $80,000 when they purchase 4-room or smaller flats, and up to $50,000 for larger flats.
\nFor first-timer singles, the CPF Housing Grant will go up to $40,000 for 4-room and smaller flats, and $25,000 for bigger flats, said CNA.
\nTo be eligible, applicants should not have received any housing subsidy before and should have a monthly income of $14,000 and below for families, and $7,000 and below for singles.
\nDeputy Prime Minister and Finance Minister Mr Lawrence Wong revealed plans during his Budget 2023 statement to further finetune HDB\u2019s BTO balloting to help first-timer families with children and young married couples aged 40 and below.
\nThe measures, which include an increase in the number of BTO projects launched, are\u00a0aimed at alleviating the high resale flat prices and long waiting times for BTO flats.
\nRelated article:\u00a0Budget 2023 Singapore: Increased BSD Rates, More CPF Housing Grants, and More
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\n3. Increased CPF housing grant may shift demand to the HDB resale market
\nAnalysts believe the additional CPF housing grant may shift some demand towards buying HDB resale flats, easing demand for BTO flats and smaller private properties, reported CNA.
\nThey pointed out that while the measures came as a welcome relief for families and singles looking to buy resale flats, the extra grants could also lead to rising HDB resale flat prices.
\nThis comes as sellers will likely ask for higher prices or hold tight to their asking prices, knowing that prospective buyers have been given additional funds, said International Property Advisor Director Ku Swee Yong in an article posted in CNA.
\nMeanwhile, MND shared that the Government is \u201cmindful\u201d of the additional grants\u2019 potential impact in a buoyant resale market \u2013 that is why it was not offered to all resale buyers.
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\n4. Additional ballot for prioritised first-timer BTO applicants a fairer move<\/p>\n