What is the purpose of a GST rebate?

The purpose of a GST rebate is indeed aimed at reducing the transaction cost for residential properties. This rebate is designed to alleviate the financial burden on home buyers by partially rebating the Goods and Services Tax (GST) that is paid on the purchase of a new home.

When the government provides a GST rebate, it allows first-time home buyers or those purchasing lower-cost homes to receive a portion of their GST back, effectively lowering the total cost incurred during a property transaction. This initiative is particularly important in making housing more affordable and encouraging home ownership, especially in the context of rising property prices.

The other options do not align with the core intention of the GST rebate. Encouraging the resale of properties or penalizing sellers does not reflect the objective of reducing costs for buyers. Similarly, increasing the sale price of homes runs counter to the purpose of the rebate, which is focused on promoting affordability rather than inflating market prices.