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Thread: Fewer HDB dwellers buy private properties

  1. #1
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    Default Fewer HDB dwellers buy private properties

    http://www.straitstimes.com/archive/...rties-20130720

    Fewer HDB dwellers buy private properties

    Number of HDB upgraders should fall as cooling measures bite, say analysts

    Published on Jul 20, 2013

    By Daryl Chin Property Correspondent


    RECENT property measures have put a squeeze on the number of Housing Board dwellers buying private properties.

    According to the latest early figures, buyers with HDB addresses picked up 3,700 new private homes in the first six months of the year. This seems to mark a slowdown from last year, which saw 9,985 such transactions across 12 months.

    A similar trend has been seen in the private resale market. HDB upgraders bought just 1,550 homes in the first half of this year, compared to 5,261 for the whole of last year.

    R'ST Research director Ong Kah Seng said that the market is feeling the effects of the cooling measures introduced in January to prevent home buyers from biting off more than they can afford.

    Not only must buyers borrow less on their second housing loan, they also need to stump up 25 per cent of the property's value, up from 10 per cent. Stamp duty for second property purchases also rose to 7 per cent, from none in the case of citizens.

    "Besides, many HDB dwellers may have also bought their private properties last year due to a strong supply in attractive locations such as Punggol," said Mr Ong. There were 21,000 private property units launched last year, compared to 10,000 so far in the first half of this year.

    The latest figures on HDB upgraders were culled from caveats lodged voluntarily with the Urban Redevelopment Authority. They do not take into account whether buyers own or rent their HDB flats, or if they were buying their first or second private property.

    Analysts, including Mr Ong, predict that the number of HDB upgraders will continue to shrink over the next two years.

    This is partly because of new rules issued by the Monetary Authority of Singapore last month, which cap a person's total monthly debt repayments at 60 per cent of his gross monthly income. That means that even car loans will be factored in when calculating how much a person can borrow to finance a property purchase.

    DTZ's head of Singapore research Lee Lay Keng believes the introduction of the total debt servicing ratio could lead to HDB upgraders scaling back their private property plans. For instance, a buyer earning $8,000 a month who already pays $1,500 towards a car loan instalment will be restricted to buying a second property worth $1.1 million, down from $1.6 million previously.

    "The biggest hurdle for this group lies in the cash outlay that includes stamp duties, downpayment and other costs. This can amount to three times the annual income," she added.

    Finance executive Leong Yi Xing is waiting for the dust to settle in the wake of the new measures before deciding on upgrading from his five-room Bedok flat.

    "HDB prices are still holding up very well compared to private property prices, which may have more room to drop. I'll wait for the price between the two to narrow," said the 31-year-old.

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  2. #2
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    i thought we are trying to block people from owning too mamy properties as suggested by earlier measures rather than stop hdb dwellers from upgrading. looks like this reporter is a bit confused.

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    Problem is the HDB buyer is not selling their HDB after TOP.

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    Quote Originally Posted by Arcachon
    Problem is the HDB buyer is not selling their HDB after TOP.
    would you sell your hdb for $500k or collect $2500PM in rental
    In the final analysis.....its NOT whether you have a diploma,degree,masters OR PHD....its whether you have a HDB/PC/EC or LANDED...

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    Quote Originally Posted by radha08
    would you sell your hdb for $500k or collect $2500PM in rental
    $2500PM for 20 years should a wish. Not something that are guarantee.

    But if fully paid, I would not sell too.

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    ECs are not included in the statistic, so headline should be

    Fewer HDB dwellers buy private properties as they buy ECs

    Just look at the GLS h2 2013, out of 6000 units, more than half are ECs.

    I read somewhere about 40% of roughly 1m hdbs are fully paid up. Some of these households are waiting their household salary which has been going up 5% on average every year to catch up with the TDSR.

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    Quote Originally Posted by radha08
    would you sell your hdb for $500k or collect $2500PM in rental
    I would sell if I can buy later, but with the CM cannot buy for PC owner most have no choice but to keep HDB.

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    the news always report what they want you to READ
    like HDB has a deficit of millions of dollars every year

    Quote Originally Posted by k00L
    ECs are not included in the statistic, so headline should be

    Fewer HDB dwellers buy private properties as they buy ECs

    Just look at the GLS h2 2013, out of 6000 units, more than half are ECs.

    I read somewhere about 40% of roughly 1m hdbs are fully paid up. Some of these households are waiting their household salary which has been going up 5% on average every year to catch up with the TDSR.

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    Yes that is true!
    But govt as a whole make many times more millions of dollars every year on selling those HDB flats because their land costs are on average <$1 psf (note carefully that this is for land only and not psf ppr!!!) while they sell at >$200 psf ppr for building HDB flats! (i.e. to say, if plot ratio is 2.1, land price is $420 psf or a profit of >42,000%!)

    Quote Originally Posted by wt_know
    the news always report what they want you to READ
    like HDB has a deficit of millions of dollars every year

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    Quote Originally Posted by Arcachon
    I would sell if I can buy later, but with the CM cannot buy for PC owner most have no choice but to keep HDB.
    exactly nowadays if you hold any kind of property that is comfortable for you to afford DO NOT SELL...once GONE is GONE...
    In the final analysis.....its NOT whether you have a diploma,degree,masters OR PHD....its whether you have a HDB/PC/EC or LANDED...

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    Quote Originally Posted by radha08
    exactly nowadays if you hold any kind of property that is comfortable for you to afford DO NOT SELL...once GONE is GONE...

    Totally agree with you, good brother
    Blackjack21trader's 2014 Celestial Prediction: Year of The Crazy Horses. ( Coming This Fall ) www.sglion.com

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    Quote Originally Posted by k00L
    ECs are not included in the statistic, so headline should be

    Fewer HDB dwellers buy private properties as they buy ECs

    Just look at the GLS h2 2013, out of 6000 units, more than half are ECs.

    I read somewhere about 40% of roughly 1m hdbs are fully paid up. Some of these households are waiting their household salary which has been going up 5% on average every year to catch up with the TDSR.
    Wah, still got company average yearly increment of 5%, which company, I want to join leh...

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