Seller may not Hike Prices of Resale Flats (2017 Update)

Prices of Resale Flats

The recent increase in the resale flat grant generates some adrenaline; some first-time buyers are worried that seller may take the advantage to hike prices of resale flats.  Housing grants administered by the popular central Fund, which is available to resale flats issues were, raised from S$10,000 to S$20,000 for a family that is first timers, while first-time single grant increased from S$5,000 to S$10,000 for singles that are first timers, a 100 percent increment on both cases.

The Grants: A Welcome Development

The new grants regime is a welcome development by both singles that are first timers as well as families that are first timers. Since it will take the chunk of money that they have to pay off and that the grant will not return to government if the house is sold in the future.

People should look at the figures with wide smiles on their faces, and see the ‘subsidy’ as succor and a huge relieve to their finances, however, the fear of a hike in flats prices may be a nightmare to contend with soon.

Fear of Prospective Buyers

Intending buyers are getting worried that the new grant regime may cause sellers to increase prices of properties; this is a likely occurrence because the new grants system may cause first-time buyers to demand more properties than what is available to sell.

The fear of most first time applicants is that sellers may be tricky to take advantage of them once they found out their status as first-time buyers. It may be a dashed hope for some people who have been working hard to get their first flats in their lifetime.

Resale Flats Market is Buyers’ World

The fact is, some sellers will try to make more money by hiking prices of flats at hand; however, the market trend makes it buyers’ market. If a seller tries to make abnormal profits, the buyer can try the flats from other sellers, since the market is deregulated and is unlikely that sellers will form a cartel against prospective house buyers.

Experts are not expecting more than a minimal increase of 0.3 percent on prices of resale flats this year. A relieve to prospective buyers.

It is normal to entertain such fears, but the fact that the flat resale market is buyer driven makes it very interesting and buyers may not need to fear to pay above board when buying a new flat.


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