By: Henny Maherah
The Budget 2020 Statement was recently delivered by Deputy Prime Minister and Finance Minister Mr Heng Swee Keat. In addition to the highly anticipated response from the government in tackling the COVID-19 outbreak in Singapore, the budget statement also targeted housing affordability this year.
So, what can we look forward to in the coming year when it comes to every Singaporean’s most important investment, housing?
How the Budget 2020 Impacts Buying Property in Singapore
Raised Monthly Income Ceiling
Firstly, the monthly household income ceiling would undergo an increase. With such increments, an estimated 16,000 households would be able to benefit in terms of buying a HDB flat.
- From $12,000 to $14,000 for subsidised flats
- From $14,000 to $16,000 for executive condominiums (EC)
This allows more middle-income families to be eligible for affordable housing. For families that are growing in size, it is an optimal time to right-size to a bigger home to accommodate the little ones.
Resale properties have always been popular among growing families. Unfortunately, these types of properties are often located in mature estates like Ang Mo Kio and Tampines, which are pricier than newer properties.
Nonetheless, with such increments, a wider variety of property types and locations would now be made available for those seeking bigger homes.
Perhaps you have been yearning to move from a public to a semi-private property for a while but were unable to qualify for additional housing grants for ECs. With the EHG, now could be your opportunity to buy your very own EC property!
Despite the growing efforts of the state to accommodate the growing demand for ECs amongst Singaporean homeowners, the supply of EC estates is still significantly scarce, resulting in the steep prices we are all familiar with. Hence, when opportunities like these grants increments are made available, it would be wise to seize this chance to invest in an EC property before it continues to rise in cost.
Good news to all homeowners who are intending to sell their property. The EHG would widen your pool of potential buyers and quicken your transaction process. Fret not, your property could be in demand in no time.
Increments for First-Time Buyers
Secondly, grants for first-time homeowners would also undergo an increase from $120,000 to $160,000 this year. This includes the EHG, as well as the Proximity Housing Grant.
Especially for young couples, the increment of grants would improve your chances of securing your first home. The timing could not have been better, as the next launch of BTO projects would commence in May 2020. Do look forward to setting up your first nest in Choa Chu Kang, Bukit Batok, Tampines, or Pasir Ris!
Despite the rising costs of living here in Singapore, homeowners should never feel anxious about the prospects of securing their own home.
With the added financial support from the government, you can be assured that housing in Singapore would remain affordable and accessible to you at all times, regardless of your income level.
Need a professional to kickstart your property transaction? Our highly experienced real estate agents are always ready to assist you!
