HDB grant extension could hit resale market for public flats

The stagnant resale market for public flats could be hit further when housing grants are extended to middle-income households, according to property analysts.

The grants will make a new four-room Housing Board flat even cheaper, and that could lure away potential resale flat buyers.

On Sunday, Prime Minister Lee Hsien Loong had announced that those in the middle-income bracket would get more help to buy a bigger flat.

A family who earns $4,000 now gets about $15,000 in grants. But soon, up to $20,000 extra will be given out to them under the Special Housing Grant, which currently covers only lower-income households earning $2,250 a month or less.