RESIDENTIAL

Government increasing income ceiling for HDB flats and EC units

Besides introducing 25,000 BTO units in 2012 and 8,000 flats in September 2011, the Government will be increasing the income ceiling for HDB flats from $8,000 to $10,000 and ECs from $10,000 to $12,000. The $10,000 HDB income ceiling will be applicable for the purchase of new flats, resale flats with a CPF housing grant, and the application of a HDB loan for a new or resale flat. However, the income ceiling for DBSS will remain at $10,000. This means that DBSS will face direct competition from BTO flats as buyers who earn at least $10,000 per month can choose between BTO and DBSS flats. These adjustments will certainly affect flat sellers and some private developers. JLL predicted that the annual demand for new housing in the private market will likely decrease by 5% to 15% (approximately 700 to ...