Enhanced CPF Housing Grant to be raised to help first-time homebuyers

Plans in the works for lower-income groups to get more financial support

- Isabelle Liew

Lower-income couples buying their first Housing Board flat will soon get more help in the form of increased housing grants.

Plans are in the works to boost financial support for first-time homebuyers especially those from lower-income groups - under the Enhanced CPF Housing Grant (EHG), Prime Minister Lawrence Wong said in his National Day Rally speech on Aug 18.

PM Wong, who was highlighting efforts by the Government to keep housing accessible to all Singaporeans, said National Development Minister Desmond Lee will share specifics soon.

Currently, the EHG gives up to $80,000 in grants for families and $40,000 for singles buying their first new or resale flat.

In his speech, PM Wong addressed concerns about housing affordability, noting that high resale flat prices have caught public attention.

Since the second quarter of 2020, HDB resale prices have been rising continuously, according to data released by HDB in July.

Also in July, a five-room flat in Margaret Drive sold for $1.726 million, setting a record for the highest transacted price for a resale flat.

PM Wong attributed the rise in housing prices to the disruption in the construction industry caused by the Covid-19 pandemic, which slowed down the supply of new residential units.

The Government has moved to stabilise the market, implementing cooling measures and ramping up supply, he said.

He pointed to efforts by the Ministry of National Development (MND), which pledged to launch 100,000 Build-To-Order (BTO) flats from 2021 to 2025. It will surpass 80,000 units by December 2024, and hit its target in 2025, PM Wong said.