THE Prime Minister's speech provides a broad brush assurance that the Government is working hard to improve the status quo in the housing sector.
On home ownership and upgrading, PM Lee Hsien Loong has reaffirmed the Government's objective to make home ownership more affordable for all first-time buyers, especially low-income earners, through increasing the amounts of targeted housing grant subsidies.
He spelt out the desired outcomes of housing affordability policy through his detailed matching of Housing Board flat type with household incomes.
Also, the PM has continued to emphasise the dual role of housing as a social/consumption good as well as an investment asset.
Overall, we expect build-to-order HDB list prices to remain stable.
However, the actual prices paid by each household will deviate from the list price based on their household income.
Providing additional housing grants is an acknowledgement that housing prices have run ahead of wage growth, particularly for the lower income group.
Furthermore, the Government is introducing a new upgrading grant to help lower-income Singaporeans fulfil their upgrading plans.