With more and more OCR private property set for TOP in the next few years, do you think it is possible that we might see an massive over supply of HDB rental flats in the coming years? Especially for new estates such as in Ponggol and Sengkang area?
Banned
With more and more OCR private property set for TOP in the next few years, do you think it is possible that we might see an massive over supply of HDB rental flats in the coming years? Especially for new estates such as in Ponggol and Sengkang area?
GOD good old days
From what is seen, it seems to be so. But the demand is holding up.. so unless MND builds excess, HDB unlikely to be oversupplied.
Can't say the same for PC..
Banned
Originally Posted by cnud
I believe many hdb dwellers who bought PC are thinking that they could easily finance their investment by renting out their HDB or vice versa.
So it is possible they could be hit with both over supply of PC and HDB flat at the same time, especially if the HDB estates are not near to industrial or business park.
GOD good old days
For new PC buyers, they can't buy if they still hold HDB rite?
Property Newbie
can buy after you have done with the minimum HDB MOP (i think is 5 yr?)
I took the road less traveled by, and that has made all the difference.” - Robert Frost quotes (American poet, 1874-1963)
GOD good old days
I thought must sell their HDB?
i'm Buaya ! Girls BEWARE !!...
..........
Property Newbie
if you own HDB , you can go buy as many PC as you want.
but
if you own PC (and no HDB), you can only keep buying PC .. cannot buy HDB unless you sell your HDB first)
I took the road less traveled by, and that has made all the difference.” - Robert Frost quotes (American poet, 1874-1963)
GOD good old days
Oh, then what poloclub mentioned may be a reality... HDB owners are over extending themselves...
Ultimate Underdog
If everything remains constant, you will be right in a few years' time. Cooling of the rental market is happening already, with HDB tenants opting for PCs as PC landlords lower asking rentals.
However, fortunately or unfortunately, a few years later will be the time when Singaporeans themselves ask for more immigrants to fill the demand for housing. It is a set up to ask for your mandate.
It's your country, be careful of what you wish for or you might just get it. Less is more, or more is less?
Newbie
a few years ago, for existing HDB owners already pass the MOP, then can buy PC, no need to sell HDB.... also can choose either to stay in HDB or PC...
now? it depends... a lot of criteria.... and definitely roly8 is right... once buy new/resale HDB (if eligible) will not be able to keep private...
for individuals, it's case by case basis....
http://www.hdb.gov.sg/fi10/fi10322p....d?OpenDocument
also, over the years, a lot of tweaking la... depend on market situation, the 'invisible hand' or 'market maker' can always tweak with the rules....
Newbie
For private owners
1) if buy a resale hdb, die die must sell all private prop within 6 mths.
For hdb owners if buying private
1) must fulfill 5 yrs MOP
2) loan only 60% if still have existing hdb loan.
Newbie
Agreed.
Last year's launch of bto already drive the prices of resale hdb down this year.
Many condos will be top in 2013/14, let's see how it will affect the market.
Newbie
The present ruling of 2nd loan at 60% has also made some turn to the rental mkt for the time being while waiting for their condo, so that they can take a 80% loan.
Newbie
Why not? Some bto buyers already own resale hdb. Previous years it is hard to get a bto so many people bought resale flats first. Now theyare buying a bto so once the bto are done, there will be a huge supply of hdb resale as they have sell off their hdb. Actually hdbshould release the numbers of bto applicants who currently own hdb. This will give usan idea of how muchresale flats willl becoming up
Junior
Is there really that many people sell-off their HDB, rent for the time being, to take the 80% loan and wait for completion?
Newbie
Actually, after beginning of the year where HDB resale price soften, it seems to climb last month again.
If both PC and HDB over supply, both PC and HDB landlord can lower their price, with HDB lower than PC, ppl with tight budget will still go for the cheaper one, those can afford will remain in renting PC. So rental ratio betw PC/HDB should remain roughly same. No landlord will gain but get lower rental, the only who benefit are those who get to rent either at lower price.
With current rules/law now, it is not wise to to sell HDB to move to PC because of the difficulty to get HDB again when you have a PC. It would be good if you can wait till you can pay up HDB and buy PC with loan at 80% LTV, if you have not pay up HDB the PC loan will be 60%
Last edited by CondoInterested; 12-06-12 at 21:14.
Senior
How money grows in Singapore
Between 2000 and 2010, M2 money supply grew 135%, or 8.9% a year in the past 10 years, to $401.4 billion.
Thu, Feb 10, 2011
The Business Times
By Teh Hooi Ling
Senior Correspondent
IT all started with a friend's Facebook status update a couple of weeks back. She posted: 'The critical ingredient is getting off your butt and doing something. It's as simple as that. A lot of people have ideas, but there are few who decide to do something about them now. Not tomorrow. Not next week. But today. The true entrepreneur is a doer, not a dreamer.' - Nolan Bushnell: Founder of Atari and Chuck E Cheese's.
Her friend Cindy Gallop liked the post, and commented by including a link http://www.ifwerantheworld.com/
Ms Gallop had quit a successful advertising career as chairman of Bartle Bogle Hegarty in 2005 to do something different. Today, she continues to work in branding and advertising as a consultant, but is also tending some fascinating projects of her own. She launched MakeLoveNotPorn at TED2009. In January last year, she launched IfWeRanTheWorld, a simple web platform designed to bring together human good intentions and corporate good intentions, and turn them into collective action.
So I went to the IfWeRanTheWorld website and found a simple page with the words: 'If I ran the world, I would (...)'. I typed in 'deemphasise the money culture' in the blank space, and pressed 'enter'. The next screen which appeared said: 'There are 16 available microactions, three superheroes and 11 actionplatforms that match your good intentions.'
Of the list, the one item which caught my attention was: 'Watch Zeitgeist-Addendum on YouTube or Google.'
I did. It was a two-hour show which talked about how the modern world has such unwavering faith in money. The capitalist world is built on the notion of scarcity. A better system, the film argued, is a resource-based economy where all goods and services are available without the use of money, credits, barter or any other system of debt or servitude. The premise is that the Earth is abundant with plentiful resource, so all resources should become the common heritage of all of the inhabitants, not just a select few.
>> Next One part of the film talked about the monetary system. It claimed that the growth of money supply is inherent in a capitalist system, which is why inflation is inevitable. Evidence: an apartment which was bought for $20,000 in the 1970s can now be sold for $500,000. Basically, there is just more and more money being circulated as time goes by.
The film showed a chart of the money supply in the US since the 1950s and juxtaposed that against the chart of the US national debt. The trajectories of both charts are strikingly similar, leading the filmmakers to conclude that money is created out of nothing but government debts. That in fact is the argument of the Modern Chartalism theory, which states that under a fiat money system, net currency is created by government through deficit spending.
That set me thinking. The Singapore government runs a budget surplus year after year. How is the money supply in Singapore created? And oh my, how the money supply in Singapore has grown.
M2 money supply in Singapore - which includes currency in active circulation, demand deposits of the private sector, fixed deposits, Singdollar negotiable certificates of deposits, savings and other deposits - totalled $170.9 billion at the end of 2000. By November last year, M2 in Singapore had ballooned to $401.4 billion. That's an increase of 135 per cent or 8.9 per cent a year in the past 10 years. In comparison, the gross domestic product (GDP) grew by about 6.4 per cent a year during that period.
So what makes the money supply grow in Singapore? I came across a document entitled Monetary Policy Operations in Singapore on the Monetary Authority of Singapore (MAS) website. The 32-page document highlights the key aspects of MAS's monetary policy operations, foreign exchange and money market operations, and the various factors and considerations underlying them.
The four primary responsibilities of MAS are:MAS's balance sheet looks like this: On the assets side, a big chunk is in foreign assets, i.e. the official foreign reserves of Singapore. MAS also holds an inventory of Singapore Government Securities. It also has domestic credits, that is lending to banks in the course of conducting money market operations for liquidity management in the banking system.
- Implementation of exchange rate policy;
- Conduct of money market operations for banking system liquidity management;
- Management/issuance of Singapore Government Securities (SGS) in support of government initiatives in bond market development; and
- Provision of banking and financial services to the government.
On its liability side, the biggest component is government deposits. These are surpluses that the Singapore government run year after year. Also in this pool are contributions of members to the Central Provident Fund. Also on the liability side is currency in circulation. Under the provisions of the Currency Act, each Singdollar currency note must be fully backed by foreign assets. As we all know, Singapore's monetary policy targets neither the interest rate nor monetary aggregate. It is centred on the trade-weighted exchange rate. As such, the monetary base is also endogenous, and its level is based more on banks' demand for reserve and settlement balances.
So this is my understanding of how the money supply of Singapore has been growing all these years. Say, a foreign company wants to set up a factory in Singapore because of the good infrastructure here and the convincing marketing campaign by the Economic Development Board.
The foreign firm brings in US$100 million. It needs to convert that amount to Singapore dollars to pay for the construction costs of its building, to pay utilities bills and salaries of its staff. So demand for the Singapore dollar increases. If the aggregate demand for the Singdollar far exceeds the supply in the market, the local unit will appreciate too fast and make Singapore exporters uncompetitive. So since MAS's mandate is to manage the Singdollar's trade-weighted exchange rate, it will intervene by selling Singdollar to meet the demand and buy the US dollar.
That's how money supply in Singapore grows over time. Among other reasons, demand for the currency also arises when Singapore exporters want to convert their revenues in US dollars back to Singdollar, or when foreign investors are keen to invest, say, in real estate in the Lion City, given its safe haven status and its emergence as a global city.
I've charted how Singapore's GDP in current market prices and how Singapore's M2 money supply have grown since 1980. The ratio of M2 to GDP has been rising through the years. Prior to 1998, total M2 had always been lower than the aggregate GDP. But that changed in 1998, and by end of 2009, M2 is 140 per cent that of Singapore's GDP. Is it a wonder then that real estate asset prices in Singapore have been so buoyant in the last few years?
The writer is a CFA charterholder
This article was first published in The Business Times.
Senior
If you go to the hawker center buy a plate of chicken rice for X amount. If the gov. is going to build another 10 hawker center can you say that the chicken rice is going to cost less than X amount because of more hawker center or will you pay more than X amount after the 10 hawker center is completed.
Senior
HDB first - the ring can wait
A small but significant number of under-25s are putting down deposits for their first flats even before proposal.
Mon, Jun 11, 2012
The Business Times
By Rachel Au-yong
SINGAPORE - A small but significant number of under-25s are putting down the deposits for their first flats even before the man has gone down on one knee.
Housing and Development Board (HDB) records show that under-25s formed 32, 39 and 35 per cent of its Fiance-Fiancee Scheme between 2009 and 2011 respectively. The median age of this group is 27.
National Development Minister Khaw Boon Wan noted last year that more than half of first-time buyers applied under the scheme. First-timers form 65 per cent of all applicants, he said, and 95 per cent of flats in Build-to-Order (BTO) launches are reserved for them.
Young couples are also buying comparatively more expensive executive condos. Developer MCC Land's senior manager Richard Nah said he had two couples, both where the female was just under 18, applying for flats in recently launched 1 Canberra in Yishun.
The Business Times spoke to several young couples, all university students, fresh graduates, or relatively new entrants to the workforce with one or two years of experience. All were not deterred by their young age, smaller incomes, or even the lack of an official engagement.
In fact, many agreed that buying a house first "makes sense".
"You need a house first before you can even think of building a family," said student Janet Ang, 22.
Ms Ang and her now-fiance, 25, dropped close to $20,000 on a four-bedder in Sengkang last year. Her fiance, a church music instructor, financed the downpayment with his CPF and a partial loan from his mother.
For others, buying a house is all about the circumstances - and whether the time is right.
After Mr Khaw "gave his assurance to help prices come down" in June 2011, accountant Regina Tan, 24, and her civil servant boyfriend started keeping an eye out for properties that fit their criteria.
"Subsidised housing gives you more returns in the future, especially if you get it at a good time," she said, adding that she paid "a lot less" than her friend who bought a similar-sized unit in the area last year.
The couple successfully balloted for their first flat, in Sengkang, last month.
More modern-looking designs in the HDB repertoire sit well with young couples too.
Law student Marco Low and his fiancee, Mavis Long, both 24, fell in love with the SkyVille@Dawson project in Queenstown.
"Our flat was in a good location near our parents, but the architecture pushed us to make our decision," Mr Low said, acknowledging the difficulty of getting a new flat in mature estates like Queenstown.
Designed by top home- grown architects, SkyVille @Dawson belongs to a new generation of flats that look like private condos, at a considerably lower price.
The couple forked out slightly over $30,000 in deposit and legal fees for the $445,000 four-room flat.
Others find that getting public housing is the luck of the draw, and would rather not wait till they are engaged to attempt securing a flat.
Not only is it close to a three-year wait for Build- to-Order blocks to be constructed, but the application process is no guarantee of a flat.
"I'm 25 now, but I may be 28 or even 30 when I get the keys," said recent Nanyang Technological University graduate Peter Tan.
The electrical engineering major is balloting now to avoid his older brother's predicament: the latter had to apply for a flat three times before he finally managed to get one.
Mr Tan also touts the benefits of getting a house first: "Waiting for a house means you have at least three years to think about marriage and what it means to you and your future spouse."
Under HDB's Fiancé/Fiancée Scheme, a couple must produce a wedding certificate three months after taking possession of a flat. But when the proposal happens is entirely up to the couple.
With the strong demand for public housing, will eager young buyers add to the pressure? After all, BTO flats are often associated with long lines, anxious waits and oversubscription.
Such young couples have "conflicting interests" in the battle for scarce property, said R'ST Research director Ong Kah Seng.
"Their ability to plan ahead of time may price out those who need the flats more urgently, like married couples hoping to have children in the immediate future," added Mr Ong. "HDB might have to prioritise those who need it now if more young couples edge them out."
"Not all first-time buyers are the same. Having a child ought to mean that you're prioritised higher in your wait to get a flat," said Max Goh, 30, a People's Association executive. Mr Goh and his wife have a four- month-old child. They were unsuccessful in their bid for a Clementi BTO flat in March.
But he also acknowledged that he's particular about where he wants his future home to be: preferably in established estates in the west, where there are comparatively fewer BTOs.
"Maybe it's closed thinking, but I don't feel like I could live in Punggol or Sengkang," he said, when told of four new BTOs opening up for application this month. "I'm too used to living in the west."
But even if some young couples are less concerned about location, they must still be sure about their relationship before they sink money into a large asset like a house.
Last July, a buyer who bought a flat under the Design, Build and Sell Scheme (DBSS) with her fiance ended up paying $120,000 in penalties and legal fees after the wedding was called off.
An HDB spokesman said the board advises young couples to "think through their options carefully" as buying a flat is a major decision, adding that HDB is always present to offer its assistance.
"If the essence of the relationship is sound, then getting an HDB flat before a couple gets engaged is just another way of enhancing their future marriage," said Kit Ng, director of the Centre for Psychology.
It also makes financial sense for young couples who are sure they want to tie the knot to purchase property early.
Only one member of the couple needs to be working for at least a year before they apply for a flat. Taking advantage of the low income cap, couples can have "significant savings" if they get a flat earlier, said Colin Tan, research head at Chesterton Suntec International.
Estimating that property prices rise about 5 per cent each year, Mr Tan said this could mean a 15 per cent price difference if a couple decided to try for a flat when they might be officially engaged three years later.
"If you're sure now, you'd be financially better off," Mr Tan said. "Once you miss the boat, you'll either have to wait or buy more expensive private housing."
This article was first published in The Business Times.
Senior
Think you meant 'PC first'.if you own HDB , you can go buy as many PC as you want.
but
if you own PC (and no HDB), you can only keep buying PC .. cannot buy HDB unless you sell your HDB first)
Newbie
.....hmmm Yowetan claims he can side step this restriction as he has a newly bought 5 roomers in Tiong bahru and is on the verge of getting a PC in Mt Sinai with IP loan approval from the bank he is working for......
Newbie
Yowetan lock 1 room for his Tiong Bahru HDB & gunning for 90% loan lor....
Property Newbie
yea1! thx for the correction!Think you meant 'PC first'.
I took the road less traveled by, and that has made all the difference.” - Robert Frost quotes (American poet, 1874-1963)
Newbie
Laws of the mortal world does not affect him, let alone pap's
Newbie
?????? think you need to understand what is MOP....and buying property....not renting the HDB....
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