View Full Version : New rules could increase takeup of shoebox units
The latest mortgage rules introduced by the Monetary Authority of Singapore (MAS) will significantly affect multiple property owners and the mid-tier private housing segment in the Rest of Central Region (RCR), according to Knight Frank.
“Investors who have existing property loans and have sought various flexible ways to secure multi-property loans will now face greater limitations to obtain new loans for their next property purchase,” it said.
For instance, middle-income investors who have existing mortgages and other debt like car loans will struggle to buy a new property because their Total Debt Servicing Ratio (TDSR) could exceed the 60 percent limit.
Singaporeans with an existing HDB loan who wish to buy a private home may also encounter difficulties in getting additional loans.
“Individuals who have a higher proportion of variable income out of their monthly gross income would also face greater constraints to obtain higher loan quantum,” Knight Frank noted.
Mid-tier private housing in the RCR will also be impacted due to high prices and the loan-to-value (LTV) requirement. This segment is also favoured by investors who usually have existing loans.
However, genuine buyers who have no existing mortgage or other major debt will be able to get their desired loan quantum. The impact of the curbs on the HDB resale market will also be limited as this segment already requires a Mortgage Servicing Ratio (MSR) of 30 and 35 percent for HDB and private loans respectively.
On the other hand, the 60 percent cap on TDSR could boost demand for more affordable homes such as shoebox and mass-market units. It could also grow the appetite for properties in other ASEAN countries, given the strong Singapore dollar and their positive growth potential.
Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email
[email protected]
My dear brudder..... Confirm.... With all this CMs, the paradigm has shifted to mm....
Let me share my observations :
In the past, the expats who came are typically the more mature person with family.... So they typically looked for bigger units to house their family of 3-5 people.... So 3 rooms and more were in demand....
Today, you have many who come in as young blood and single.... This group of people are big, thus the demand for mm and 2 bedders vs 3 bedders or bigger....
There is a paradigm shift...... Must be flexible in investing and spot trends... Looks like you damn good at spotting hor.... Hahahahahahaha
:cheers5::cheers5::cheers5::cheers5::cheers5:
iwantgizmos
05-07-13, 14:16
MM all the way!!
MM demand is definitely going to increase provided developers are smart not to overpriced them
[QUOTE=iwantgizmos]MM all the way!![/QUOTE
Hope demand really goes up and rental too!
but MM supply is being lowered by previous CM if memory serves.
but MM supply is being lowered by previous CM if memory serves.
If demand is artificially propped up by new ruling and supply is constrained, then prices will continue to rise.
My dear brudder..... Confirm.... With all this CMs, the paradigm has shifted to mm....
Let me share my observations :
In the past, the expats who came are typically the more mature person with family.... So they typically looked for bigger units to house their family of 3-5 people.... So 3 rooms and more were in demand....
Today, you have many who come in as young blood and single.... This group of people are big, thus the demand for mm and 2 bedders vs 3 bedders or bigger....
There is a paradigm shift...... Must be flexible in investing and spot trends... Looks like you damn good at spotting hor.... Hahahahahahaha
:cheers5::cheers5::cheers5::cheers5::cheers5:
That is absolutely right. And single tenant usually like to live in MM hot spot so that they can socialize with one another. avoiding buying mm is area where they are all by themselves living among families.
great...my Geylang Lor 24 1 bedder will be getting high rental yield?
near town as well.
:D
this latest control measure (as mentioned by mcmlxxvi) really controls financing across the board. even those who want to buy overseas property are also hit, if they get local financing. if they dun get local loan, then they get hit by higher overseas mortgage rate. so indirectly, overseas investment is somewhat curtailed too. may be useful for those who may be overleveraging.
These analysis is very skewed ...
The loan to income cap has always been there?
I am sure experienced investors like you all knows.
Most banks use 40%. So while layman may think there is a cooling measure, actually there isn't much.
The amazing thing is that you all can conclude this will spur MM demand??!!
Too much twisting liao !
MM is currently demanded in town area as new immigrants prefer town. Like most of my expats colleagues, first 1-2 years die die must stay Orchard, Ardmore area ... After 2-3 years, some mid level expats will feel that Novena area is as good and rent is lower ...
Ppl accept smaller places as a trade off to price ... But we must ask ourselves what is the average acceptable size of an apartment for long time stay. Is 388 sqft acceptable ? Is an can only be answered by your good self, since all are experienced investor and PC owners.
For an Office Boy, one person stay, in longer run, need abt 650 sqft minimum.
Else higher chance of ending up in IMH.
DKSG
These analysis is very skewed ...
The loan to income cap has always been there?
I am sure experienced investors like you all knows.
Most banks use 40%. So while layman may think there is a cooling measure, actually there isn't much.
The amazing thing is that you all can conclude this will spur MM demand??!!
Too much twisting liao !
MM is currently demanded in town area as new immigrants prefer town. Like most of my expats colleagues, first 1-2 years die die must stay Orchard, Ardmore area ... After 2-3 years, some mid level expats will feel that Novena area is as good and rent is lower ...
Ppl accept smaller places as a trade off to price ... But we must ask ourselves what is the average acceptable size of an apartment for long time stay. Is 388 sqft acceptable ? Is an can only be answered by your good self, since all are experienced investor and PC owners.
For an Office Boy, one person stay, in longer run, need abt 650 sqft minimum.
Else higher chance of ending up in IMH.
DKSGhahaha going by that logic, majority of hong kongers and Japanese would have been insane already right?
hahaha going by that logic, majority of hong kongers and Japanese would have been insane already right?
You can certainly go and ask Hong Kongers whether it is right socially for their homes to be that small and whether they feel that is is human for them. That's why they coming over here...
Lets not guide policies to allow home of 388 sf. It is really not humane. I know people here are trying to profit from this trend, but do have a conscience also la ...
DKSG
You can certainly go and ask Hong Kongers whether it is right socially for their homes to be that small and whether they feel that is is human for them. That's why they coming over here...
Lets not guide policies to allow home of 388 sf. It is really not humane. I know people here are trying to profit from this trend, but do have a conscience also la ...
DKSG
Brudder, during my time 1,500sq ft was the norm for 3 bedder....
When they did 1,200 sq ft, i blur..... took me awhile to accept.... But every time I visit show flat, I say wah.... so small, how to live in it??? But when TV shrunk, console shrunk... so 1,200 made sense...
Now1,000 sq ft and less.... I tell myself, times have changed.... we need to change with it...
Look @ capitaland's project.... take so long to sell.. Why???? huge sq ft.... resulting in huge quantum... The rest with small footprint, all sell like hot cake....:doh: :doh: :doh: :doh: :doh:
Its the quantum that sells, not the psf... hahahahaha
Sorry hor officeboy... if I can get 1000psf brand new in decent location with my 500k i oso wan.
Other than quantum, being single I also loathe having a large area to clean up after. Not everyone can afford a part time maid nor like strangers coming in to pack up their abodes.
Besides, most are tenanted out to singles or couples who stay around max 2 yrs in it. I doubt it is anyones long term plan for own stay. Unless they are near the late years of their lives or not intending to expand the family.
Shoebox is a niche market. It does cater for a good segment of users out there at different life stages with different requirements.
I am not sure why you have such a strong reaction to the phenomena.
Capland has to drop price for his large unit like D leedon. Singapore is like another mega city in the world with unit size getting smaller to keep it affordable. Stocking up cash for good buy in the next one year.
Brudder, during my time 1,500sq ft was the norm for 3 bedder....
When they did 1,200 sq ft, i blur..... took me awhile to accept.... But every time I visit show flat, I say wah.... so small, how to live in it??? But when TV shrunk, console shrunk... so 1,200 made sense...
Now1,000 sq ft and less.... I tell myself, times have changed.... we need to change with it...
Look @ capitaland's project.... take so long to sell.. Why???? huge sq ft.... resulting in huge quantum... The rest with small footprint, all sell like hot cake....:doh: :doh: :doh: :doh: :doh:
Its the quantum that sells, not the psf... hahahahaha
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