HDB acts on dual ownership

[mr funny]

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.

[mr funny]

http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_572659.html

Aug 30, 2010

HDB acts on dual ownership


THE extension of the three year minimum occupation period (MOP) to five years for non-subsidised HDB flats is to dampen demand from those who are not in urgent need of housing.

The Housing Board said the move is also to reinforce the notion that HDB flats are meant for long-term owner-occupation.

Apart from the longer MOP for resale and subletting of flat to five years, the HDB also announced on Monday morning that buyers of non-subsidised flats will be disallowed from concurrently owning both an HDB flat and a private residential property within the MOP.

Private property owners who buy a non-subsidised HDB flat must now dispose of their private residential property within six months from the date of flat purchase.

'This will help ensure that buyers purchase HDB flats only when they have the intent of staying in it for long term and ensure equitable treatment for all HDB flat lessees during their MOP,' said an HDB statement. An HDB owner will also not be allowed to own private properties during the MOP.

Currently, buyers of subsidised HDB flats are not allowed to own a private residential property within the five-year MOP. On the other hand, buyers of non-subsidised flats can concurrently own a private residential property during the MOP, as long as they live in the HDB flat.

Private property owners can also buy non-subsidised flats while concurrently owning their private residential properties, provided they live in the HDB flat during the MOP.

'There is therefore disparity in treatment among the different groups during their MOP,' said the HDB.

The changes will apply to resale applications received by the HDB from Monday.

[Condorich]

http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_572659.html

Aug 30, 2010

HDB acts on dual ownership


THE extension of the three year minimum occupation period (MOP) to five years for non-subsidised HDB flats is to dampen demand from those who are not in urgent need of housing.

The Housing Board said the move is also to reinforce the notion that HDB flats are meant for long-term owner-occupation.

Apart from the longer MOP for resale and subletting of flat to five years, the HDB also announced on Monday morning that buyers of non-subsidised flats will be disallowed from concurrently owning both an HDB flat and a private residential property within the MOP.

Private property owners who buy a non-subsidised HDB flat must now dispose of their private residential property within six months from the date of flat purchase.

'This will help ensure that buyers purchase HDB flats only when they have the intent of staying in it for long term and ensure equitable treatment for all HDB flat lessees during their MOP,' said an HDB statement. An HDB owner will also not be allowed to own private properties during the MOP.

Currently, buyers of subsidised HDB flats are not allowed to own a private residential property within the five-year MOP. On the other hand, buyers of non-subsidised flats can concurrently own a private residential property during the MOP, as long as they live in the HDB flat.

Private property owners can also buy non-subsidised flats while concurrently owning their private residential properties, provided they live in the HDB flat during the MOP.

'There is therefore disparity in treatment among the different groups during their MOP,' said the HDB.

The changes will apply to resale applications received by the HDB from Monday.

Easy... if you are rich enough... you can start by buying many privates. Or if you own HDB now, you can sell hdb and can get many many privates. Or if you are not restricted by the rule, you will keep your HDB and invest in another Private or many Privates.

The not so rich but not so poor onces can start by buying 1 private.

If you are not rich enough.. just stay in 1 HDB and Dream of buying 1 Private after 5 years. Government makes it easier for u by giving you a reason that you will accept, The rules apply and you simply don't have enough money to play.

The rich are really the priviledged class.

[Geylang OKT]

Your privates.... worth how much? :D

[Regulators]

LOL...that is funny :D


Your privates.... worth how much? :D

[Hillview]

Sooner or later. The government will introduce this policy - Those who own HDB flats will NOT be allowed to have private properties and those who own private properties will not be allowed to have HDB flats - no matter how many years you have lived in your HDB flats. No dual ownership any more. That's it.

[xebay11]

Sooner or later. The government will introduce this policy - Those who own HDB flats will NOT be allowed to have private properties and those who own private properties will not be allowed to have HDB flats - no matter how many years you have lived in your HDB flats. No dual ownership any more. That's it.

I cannot agree more, the 5 year MOP before buying private property is easy peasy. At least make it 10.

[devilplate]

I cannot agree more, the 5 year MOP before buying private property is easy peasy. At least make it 10.

they reduce from 10yrs to 5yrs leh becoz last time many yng couples KPKB saying goto wait so long to upgrade/invest wor...

just revert back to old policy: one must continue to stay in HDB after they bot pte....forcing them to sell off their HDB if they genuinely wana upgrade and on the other hand, still allow them to invest:D

in the first place: HDB shdnt be treated as an rental income tool....except for those retirees who decide to rent out and moved in with their children

BUT: i tink govt provide some leeways so as to allow immigrants to find cheaper accomodation(HDB rental).....

[focus]

On the bright side.. these whole slew of measures if it does dampened the market is good. From a seminar i attended, govt measures usually take around 3-6 months to see its effect on the market.

When winter is here.. spring is not far away.

I can imagine the cycle of upward prices surging if government starts taking away the measures again to stimulate property demand like they did after 1997. Maybe another year or two before govt starts relaxing the rules again (like restating DPS, IAS, 90% LTV step by step?) ..

[DC33_2008]

I concur with you on this matter. How can garment allows HDB owners to use subsidised housing as a source of income? Furthermore, this people has also got higher GSS rebate (ang bao from garment). These guys are spending on nice car(s) who complains not enough parking lots. This is really a joke.
they reduce from 10yrs to 5yrs leh becoz last time many yng couples KPKB saying goto wait so long to upgrade/invest wor...

just revert back to old policy: one must continue to stay in HDB after they bot pte....forcing them to sell off their HDB if they genuinely wana upgrade and on the other hand, still allow them to invest:D

in the first place: HDB shdnt be treated as an rental income tool....except for those retirees who decide to rent out and moved in with their children

BUT: i tink govt provide some leeways so as to allow immigrants to find cheaper accomodation(HDB rental).....

[wolkom]

can anyone help me with these questions:

Can i check if these changes only apply from 30th aug (yesterday) or can be backdated?
Ie. if i currently own 2 properties - one HDB bought in 2007, one condo bought in 2009, the MOP that applies is 3 yrs, not 5 yrs right?

Also with regards to the change that pte property owners cannot own HDB, they must sell their existing pte property - this also does not apply if we have bought our properties few yrs back, am i right?

thanks in advance!

[Geylang OKT]

can anyone help me with these questions:

Can i check if these changes only apply from 30th aug (yesterday) or can be backdated?
Ie. if i currently own 2 properties - one HDB bought in 2007, one condo bought in 2009, the MOP that applies is 3 yrs, not 5 yrs right?

Also with regards to the change that pte property owners cannot own HDB, they must sell their existing pte property - this also does not apply if we have bought our properties few yrs back, am i right?

thanks in advance!

Your MOP can be 1 yr, 3yrs or 5 yrs whether you gotch subsidy housing grant, hdb loan or not (bank loan) or fully paid in cash etc. and yes does not apply as long as hdb received before 30 aug 2010.

[jbond]

On the bright side.. these whole slew of measures if it does dampened the market is good. From a seminar i attended, govt measures usually take around 3-6 months to see its effect on the market.

Thanks for the info! Now I wait at least 3 months and see if condo prices in the mass market segment go down. If yes, can buy another private property. If no (prices not going down much), then I have to be angry with myself for selling my first private property.

[Condorich]

Your privates.... worth how much? :D

PRICELESS... not for sale.

[mr funny]

http://www.businesstimes.com.sg/sub/news/story/0,4574,401901,00.html?

Published August 31, 2010

Private home-owners can't play HDB chip any more

String of steps to douse speculation; prices and sales of mass-market private homes may be hit

By UMA SHANKARI


(SINGAPORE) The Prime Minister had hinted on Sunday that major moves were afoot to cool the property market. Even so, when the Ministry of National Development (MND) spelt out the measures yesterday, several market-watchers did a double-take. Many of them expect private home prices and sales to be hit.

Of all of MND's new measures, analysts pegged the move to disallow concurrent ownership of HDB flats and private residential properties within the minimum occupation period (MOP) as the most significant. The MOP is the time that buyers are required to stay in their flats before they can sell.

Private property owners who buy an HDB flat now have to dispose of their private homes within six months. National Development Minister Mah Bow Tan, who announced the measures, said that right now, around half of private property owners who buy an HDB flat sell their private properties. The rest hold onto both.

The MOP for non-subsidised flats was also increased to 5 years from 3 years.

PropNex chief executive Mohamed Ismail said that the mandate to dispose of one's private property when purchasing an HDB flat will have 'great ramifications' for the industry. Based on his firm's records, about 10 per cent of all HDB resale purchases are by private property dwellers.

'These may be investors who will now not be able to purchase HDB flats and keep their private property for investment purposes,' he said.

MND also targeted potential buyers of second homes with two policy changes. Those who hold an existing mortgage can now only borrow up to 70 per cent of a property's value for the second home, down from 80 per cent previously. They must also pay 10 per cent in cash, up from 5 per cent.

And owners who sell houses and apartments less than three years after buying them will also have to pay a seller's stamp duty. Previously, the seller's stamp duty was only imposed on those who sell their homes within one year of purchasing.

The Real Estate Developers' Association of Singapore (Redas) said in a statement that while the latest measures may affect affordability due to higher upfront cash component, they will not impact genuine home buyers.

But at least one developer BT spoke to felt that the measures would hit sales of mass market private homes as HDB upgraders will have to cough out 10 per cent cash and can only borrow up to 70 per cent of the property's value.

'Genuine upgraders could be turned off as they will have to sell their HDB flats and settle that loan before buying a new property,' the developer said. 'Now, the practice is to buy units from developers at new launches and then wait for their new property to be built before selling existing homes.'

CBRE Research executive director Li Hiaw Ho also pointed out that the pool of HDB upgraders looking to buy private properties will shrink as this group will now have to wait for five years instead of three.

The government acted as Singapore's strong economic growth, low interest rates and high liquidity continued to push home prices up in 2010 - sparking concerns of a property bubble. Private home prices were up 38 per cent year on year as of end Q2, while HDB resale prices climbed 15 per cent over the same period.

'If the current momentum in the market continues, what will likely happen is that a property bubble will form,' said Mr Mah. 'And when the bubble bursts - not if, but when it bursts - there will be severe implications for individuals as well as for the economy as a whole. Furthermore, the very low interest rates we are seeing today are not sustainable in the long run.'

Analysts said that the new measures will hit private home prices and sales volumes.

Colliers International's director for research and advisory Tay Huey Ying said that developers' sale volume for September to December 2010 is now predicted to come in at the lower range of her earlier forecast of between 800-1,000 units a month.

She also revised her earlier forecast of up to 5 per cent growth in the official residential property price index for Q4 2010 downwards to 'at most 2 per cent'.

HDB prices are also expected to moderate as the government plans to release up to 22,000 new build-to-order flats in 2011, up from the more than 16,000 in 2010. It will also release more land for executive condominium projects and design, build and sell scheme (DBSS) flats next year.

Yesterday's measures follow earlier demand-side measures introduced in February.

Then, the government first implemented a seller's stamp duty for all residential properties sold within one year from the date of purchase. It also lowered the loan-to-value limit to 80 per cent from 90 per cent for all housing loans provided by MAS-regulated financial institutions.

But Prime Minister Lee Hsien Loong said on Sunday that previous measures had failed to keep prices from rising.

Looking ahead, collective sales and bidding for government land sales are expected to slow down for the rest of the year as developers monitor the market and the strength of recovery in the US and European economies, said DTZ's head of South-east Asia research Chua Chor Hoon.

http://www.businesstimes.com.sg/mnt/media/image/launched/2010-08-31/umprop31.jpg

[Geylang OKT]

I forsee a significant slowdown in the red-hot prices of condos and hdb resale prices :eek: :scared-1: :D

[devilplate]

I forsee a significant slowdown in the red-hot prices of condos and hdb resale prices :eek: :scared-1: :D

if it happen, dun miss it

[mr funny]

http://www.straitstimes.com/PrimeNews/Story/STIStory_572820.html

Aug 31, 2010

new property rules

Analysts: Rules will rein in HDB market

Private home-owners and speculators effectively shut out

By Jessica Cheam, Housing Correspondent


THE red-hot public housing market is set to cool significantly now that private home-owners including speculators have been effectively shut out of the market.

Market watchers say recent rapid growth in HDB resale prices will moderate as the pool of potential buyers grows smaller, and more flats are put on sale.

The new rules, unveiled yesterday, 'will have great ramifications' on the market, said property agency PropNex's chief executive Mohamed Ismail, as they will 'reduce speculation and short-term investment'.

He predicts that HDB resale transactions will fall in the second half of the year by 10 per cent from the same period last year.

Median values of cash upfront paid by buyers - known as cash-over-valuation - which hit a record $30,000 in the second quarter, may dip 10 per cent by year's end and by 20 per cent next year, he said.

HDB resale flat prices shot up 4.1 per cent in the second quarter, smashing records for the eighth straight quarter, prompting concerns that prices were beyond the reach of Singaporeans.

Jones Lang LaSalle's head of research for Singapore and South-east Asia, Dr Chua Yang Liang, said the new policy was well directed as it is 'more targeted at reducing speculative buying and not affecting (genuine) occupier demand'.

'This would promote a healthier investment climate for the Singapore residential market in the longer term... HDB resale flat prices could moderate to 1 to 2 per cent per quarter,' said Dr Chua.

He also observed that while the Government has maintained its stand about not interfering with the pricing of HDB resale flats, the stricter rules on ownership have now placed these properties firmly in the 'public housing' category.

Some home-seekers had lobbied the Government to cap or remove the cash-over-valuation payments for resale flats, but this aspect 'is more about market transactions, so they've left that to the market', Dr Chua said. 'But when it comes to ownership, I think it's more of a larger policy issue. The Government does not want people to hoard public housing and cause prices to go up.'

National Development Minister Mah Bow Tan said at a briefing yesterday that the new rules were meant to 'ensure equitable treatment' of all flat-owners during the minimum occupation period, which is now five years, up from three years.

He said that the measures will dampen demand for flats, and that combined with an increase in the supply of flats, 'hopefully the market will slow down'.

As prices surged in recent months, some critics had argued that private property owners were speculating on the HDB market as resale flats typically generate healthy rental returns - resulting in a high rental yield. They could also reap gains from a higher eventual sale price.

Mr Mah emphasised that the Government aims to 'pre-empt the overheating of the market' and 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 worse for everyone concerned, the economy as well as for individual buyers.'

Mr Mah said currently an average one in 10 resale flat-buyers owns private property. The new rules mean the buyers' pool for resale flats will be smaller.

Records indicate that out of the pool of private property owners who buy HDB resale flats, about half sell their private property, while the other half keep it.

Mr Mah said first-timers should welcome the change in policy 'as it means more choice for them' and does not affect those genuine home-buyers.

Assistant accountant Edward Kwa, 27, told The Straits Times that if the new rules mean lower resale prices, it will help in his house hunt.

Mr Kwa, who is getting married next year, has been balloting for build-to-order (BTO) flats since last year but has yet to be offered one. 'I'm glad to hear that there will be more choices and that the wait for a new flat will be shortened,' he said.

[email protected]