Increase in CPF housing grants will bring families closer together

Views on the impact of the increase in Central Provident Fund housing grants for first-time applicants for resale flats vary (“Bigger resale grant a shot in the arm for weak market: Analysts”; Feb 22).

Based on the principle of supply and demand, other things being equal, it is likely that there will be some price increase, as resale flats have become more affordable, which will lead to more demand.

Still, the increased grant helps young families and even their older folks, who may need help to top up the money for such flats — so long as the expected increase in resale prices does not nullify the increase in grants.

The latter is unlikely, as resale flats are already more expensive than new flats, especially for young first-time applicants. The increased grant is a wise effort to bring multi-generational families closer together. I give it a thumbs up.