Sustainability of Singapore’s housing prices

[New Reporter]

Sustainability of Singapore’s housing prices

EdgeProp Singapore

November 5, 2021

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HDB’s latest rollout of a pilot project at Rochor under a new prime location public housing (PLH) model has stoked concerns about more property cooling measures.

The PHL model comes with stricter rules aimed at curbing Singaporeans’ investment fervour in the HDB market. The minimum occupation period (MOP) for PHL flats has been doubled to 10 years, compared to five years for typical BTO flats.

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The $14,000 cap on monthly household income and the 30% mortgage servicing ratio (MSR) for HDB BTO buyers will be extended to the buyers of PHL flats in the resale market.

On top of that, there will be a subsidy clawback by HDB upon resale of the PHL flat, although the percentage is not known at this point. A further deterrent is that even after MOP, the owner is not allowed to rent out the entire flat, although individual rooms can be rented out.

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Read more at: https://www.edgeprop.sg/property-news/sustainability-singapore%E2%80%99s-housing-prices

[Arcachon]

The $14,000 cap on monthly household income and the 30% mortgage servicing ratio (MSR) for HDB BTO buyers will be extended to the buyers of PHL flats in the resale market 14 years later.. 4 years to build 10 years MOP.

14 years later. the private property owner buy/sell their private property 4x (SSD=3 years) and buy a cheap PHL to retire. LPPL.