mr funny
03-09-10, 18:55
http://www.businesstimes.com.sg/sub/news/story/0,4574,402458,00.html?
Published September 3, 2010
New rules cool PR hunt for resale flats
Some delay house hunting to digest latest govt moves
By EMILYN YAP
NEW rules that prevent people from owning both public and private properties appear to have discouraged some permanent residents from buying resale flats here - at least for now.
Some agents have seen PRs delay house hunting, and they expect PRs to account for fewer resale flat sales going forward.
Behind the change in sentiment are rules introduced by the government this week to cool the residential property sector.
From Aug 30, a private property owner who buys a non-subsidised HDB flat will have to sell his private property within six months of the flat purchase. This is regardless of whether the property is here or abroad.
Also, a person who buys a non-subsidised flat can buy a private property here or overseas only after fulfilling a minimum occupation period of five years.
PRs, some of whom already own or intend to buy properties back home, could be caught by the new rules.
'We have got instances where PRs who were looking for properties have postponed the intention or the decision,' PropNex chief executive Mohamed Ismail told BT. 'They said that they want to have a clearer understanding.'
C&H Realty managing director Albert Lu also said a PR had decided not to go ahead with a resale flat purchase. The client not only has a home in Malaysia but also wants to buy another private property without having to wait five years.
The two industry insiders are among those who believe PRs' demand for resale flats will weaken. Currently, PRs account for about 20 per cent of all resale flat transactions.
Mr Ismail expects 30-40 per cent of the pool of PR buyers to have second thoughts on buying a flat in the short term. They may return after they have had time to digest the news, he said.
Mr Lu thinks the impact will be slight - some 10 per cent of prospective PR buyers could withdraw from the market.
But there are also agents who do not expect the new rules to affect PRs' appetite for resale flats much.
A senior agent who declined to be named suggested the Housing & Development Board may rely on PRs to declare whether they own properties overseas. Some PRs may declare otherwise so that they can still buy resale flats here, according to him.
Enforcing the new rules is one concern that several market watchers voiced. HDB has yet to say how it will keep track of foreign property ownership or what penalties it will impose on those who flout the rules.
HSR executive director (agency) Jeffrey Hong said there will always be PRs who can buy resale flats because they do not have properties back home. High net worth PRs are usually not interested in buying flats in the first place, he said.
Dennis Wee Group director Chris Koh shares similar views. He has been getting more phone calls from home owners concerned about other new rules relating to financing - those who already have one or more outstanding home loans will have to fork out a bigger downpayment and borrow less if they want to buy another home.
While some prospective flat buyers have got cold feet, one group of private property hunters has gone full steam ahead, snapping up all 68 units at the newly launched Dorsett Residences above Outram Park MRT station.
The 99-year leasehold project was previewed on Wednesday and sold out in a day, said marketing agent Knight Frank. The project has one and two-bedders ranging from 484-1,615 sq ft in size, and the average selling price was $1,800 psf. BT understands that agents had been gathering interest as early as July and started collecting cheques around two weeks ago.
Published September 3, 2010
New rules cool PR hunt for resale flats
Some delay house hunting to digest latest govt moves
By EMILYN YAP
NEW rules that prevent people from owning both public and private properties appear to have discouraged some permanent residents from buying resale flats here - at least for now.
Some agents have seen PRs delay house hunting, and they expect PRs to account for fewer resale flat sales going forward.
Behind the change in sentiment are rules introduced by the government this week to cool the residential property sector.
From Aug 30, a private property owner who buys a non-subsidised HDB flat will have to sell his private property within six months of the flat purchase. This is regardless of whether the property is here or abroad.
Also, a person who buys a non-subsidised flat can buy a private property here or overseas only after fulfilling a minimum occupation period of five years.
PRs, some of whom already own or intend to buy properties back home, could be caught by the new rules.
'We have got instances where PRs who were looking for properties have postponed the intention or the decision,' PropNex chief executive Mohamed Ismail told BT. 'They said that they want to have a clearer understanding.'
C&H Realty managing director Albert Lu also said a PR had decided not to go ahead with a resale flat purchase. The client not only has a home in Malaysia but also wants to buy another private property without having to wait five years.
The two industry insiders are among those who believe PRs' demand for resale flats will weaken. Currently, PRs account for about 20 per cent of all resale flat transactions.
Mr Ismail expects 30-40 per cent of the pool of PR buyers to have second thoughts on buying a flat in the short term. They may return after they have had time to digest the news, he said.
Mr Lu thinks the impact will be slight - some 10 per cent of prospective PR buyers could withdraw from the market.
But there are also agents who do not expect the new rules to affect PRs' appetite for resale flats much.
A senior agent who declined to be named suggested the Housing & Development Board may rely on PRs to declare whether they own properties overseas. Some PRs may declare otherwise so that they can still buy resale flats here, according to him.
Enforcing the new rules is one concern that several market watchers voiced. HDB has yet to say how it will keep track of foreign property ownership or what penalties it will impose on those who flout the rules.
HSR executive director (agency) Jeffrey Hong said there will always be PRs who can buy resale flats because they do not have properties back home. High net worth PRs are usually not interested in buying flats in the first place, he said.
Dennis Wee Group director Chris Koh shares similar views. He has been getting more phone calls from home owners concerned about other new rules relating to financing - those who already have one or more outstanding home loans will have to fork out a bigger downpayment and borrow less if they want to buy another home.
While some prospective flat buyers have got cold feet, one group of private property hunters has gone full steam ahead, snapping up all 68 units at the newly launched Dorsett Residences above Outram Park MRT station.
The 99-year leasehold project was previewed on Wednesday and sold out in a day, said marketing agent Knight Frank. The project has one and two-bedders ranging from 484-1,615 sq ft in size, and the average selling price was $1,800 psf. BT understands that agents had been gathering interest as early as July and started collecting cheques around two weeks ago.