Lower housing grants for higher earners

Higher earners who want to buy executive condominiums will be eligible for housing grants – but they will not be as big as what lower earners will get.

The monthly household income ceiling has been raised from $10,000 to $12,000. However, National Development Minister Khaw Boon Wan yesterday announced a ‘fairer’, tiered system to take into account the greater earning power of those who are now eligible.

Buyers with a monthly household income of $10,000 can still receive the full $30,000 Central Provident Fund Housing Grant.

But any household earning between $10,000 and $11,000, will receive $20,000, while those making more than that will get $10,000.

Mr Khaw told reporters at The Pinnacle @ Duxton: ‘Even for those earning more, we will still give them grants, albeit in smaller amounts. I feel this would make for a fairer overall system, and people are more likely to be able to accept it.’

‘I think it’s fair,’ Mr Khaw said. ‘If your income is higher, naturally you won’t need the subsidies as much as those earning less than you. (Thus), the higher your income, the lower the grant.’

ERA Realty’s Eugene Lim said buyers will still welcome the raised income ceiling, even though the grant is disbursed in tiers.

‘Previously, those earning between $10,000 and $12,000 would have to buy private property, which is still pricey to them,’ he said. ‘So now they can come into the executive condominium market and still get a grant, that’s a bonus.’

Asked what effect this will have on the private property market, Mr Lim said that private developers will have to price their projects competitively in the mass market.

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