mr funny
30-08-10, 21:15
http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_572649.html
Aug 30, 2010
HDB market set to cool
By Jessica Cheam
THE red hot public housing market is set to cool significantly in months ahead after new measures on Monday effectively shut out all private property owners from the market and prompted industry watchers to predict a moderation of home prices.
The Housing Board (HDB) said private property owners who buy resale HDB flats from Monday onwards must dispose of their private property within six months of purchase of the HDB flat - a rule that did not exist before. This effectively bans private property owners from buying HDB resale flats for investment purposes.
Similarly, buyers of flats who did not receive any subsidies may not buy a private property during the minimum occupation period (MOP) of their flat. Such buyers were previously allowed to invest in private property during the MOP, which is the time required of a buyer to hold onto his flat before re-selling. In addition, the MOP - which was three years - has now been raised to five years with effect from Monday.
National Development Minister Mah Bow Tan said at a briefing that the new rules were meant to 'ensure equitable treatment' of all flat owners during the MOP. He said that these measures will dampen demand, and combined with an increase in supply, 'hopefully the market will slow down', he added.
The measures came a day after Prime Minister Lee Hsien Loong said in his National Day Rally speech that the Government will move to cool the market to ensure housing will remain affordable to Singaporeans. HDB resale flat prices had risen 4.1 per cent in the second quarter of this year, smashing records for the eighth straight quarter, prompting ground concerns that prices were beyond the reach of Singaporeans.
Mr Mah emphasised on Monday the moves were to 'pre-empt the over-heating of the market', adding that the Government will 'take whatever steps necessary to stabilise the market'. 'Obviously the intention is not to crash the market, but at the same time, if we don't rein in the market, and the bubble bursts then it will be even worst for everyone concerned, the economy as well as for individual buyers,' said Mr Mah.
Aug 30, 2010
HDB market set to cool
By Jessica Cheam
THE red hot public housing market is set to cool significantly in months ahead after new measures on Monday effectively shut out all private property owners from the market and prompted industry watchers to predict a moderation of home prices.
The Housing Board (HDB) said private property owners who buy resale HDB flats from Monday onwards must dispose of their private property within six months of purchase of the HDB flat - a rule that did not exist before. This effectively bans private property owners from buying HDB resale flats for investment purposes.
Similarly, buyers of flats who did not receive any subsidies may not buy a private property during the minimum occupation period (MOP) of their flat. Such buyers were previously allowed to invest in private property during the MOP, which is the time required of a buyer to hold onto his flat before re-selling. In addition, the MOP - which was three years - has now been raised to five years with effect from Monday.
National Development Minister Mah Bow Tan said at a briefing that the new rules were meant to 'ensure equitable treatment' of all flat owners during the MOP. He said that these measures will dampen demand, and combined with an increase in supply, 'hopefully the market will slow down', he added.
The measures came a day after Prime Minister Lee Hsien Loong said in his National Day Rally speech that the Government will move to cool the market to ensure housing will remain affordable to Singaporeans. HDB resale flat prices had risen 4.1 per cent in the second quarter of this year, smashing records for the eighth straight quarter, prompting ground concerns that prices were beyond the reach of Singaporeans.
Mr Mah emphasised on Monday the moves were to 'pre-empt the over-heating of the market', adding that the Government will 'take whatever steps necessary to stabilise the market'. 'Obviously the intention is not to crash the market, but at the same time, if we don't rein in the market, and the bubble bursts then it will be even worst for everyone concerned, the economy as well as for individual buyers,' said Mr Mah.