In his Budget 2018 Statement, the Minister for Finance, Mr Heng Swee Keat announced improvements to the Proximity Housing Grant (PHG) and increases in Property Tax.
Enhanced Proximity Housing Grant (PHG)
Instead of receiving $10,000 for singles who buy a resale to live with their parents, the grant will be increased to $15,000.
|Proximity Housing Grant||2017||2018|
|Eligible singles who buy a resale flat to live with their parents||$10,000||$15,000|
|Singles who buy a resale flat near their parents||–||$10,000|
|Families who buy a resale flat to live with their parents or children||$20,000||$30,000|
|Families who buy a resale flat near their parents or children||$20,000||$20,000|
The criteria of what constitutes ‘near’ used to be within 2km and in the same town. The government will revise it to simply ‘within 4km’.
Revision in Buyer’s Stamp Duty
Secondly, Mr Heng announced that the Buyers Stamp Duty (BSD) for private residential properties will be raised to 4 per cent (from 3 per cent) for all residential properties with a value of more than $1 million, effective tomorrow 20 February.
If the Option to Purchase (OTP) has been issued to buyers on or before 19 February the current BSD rates will apply, provided the OTP is exercised within three weeks of the announcement of Budget 2018 (on or before 12 March). We foresee a last minute dash by property agents and their respective buyers to seal all pending property deals before the deadline of 12 midnight.