New Cooling Measure?! - HDB loan and MSR

[economist]

New Cooling Measure?! - HDB loan and MSR

http://www.todayonline.com/singapore...enure-25-years

BY
SUMITA SREEDHARAN
-55 SEC AGO
SINGAPORE — With immediate effect, the Housing and Development Board (HDB) has shorten its loan tenure for homebuyers to 25 years and the mortgage servicing ratio (MSR) limit has also been cut to 30 per cent of the borrower’s gross monthly salary.

Previously, HDB loan tenures were at 30 years and the MSR limit was at 35 per cent of the borrower’s gross monthly salary.

From tomorrow (Aug 28), financial institutions will in tandem reduce the maximum tenure of new housing loans and re-financing facilities from 35 years to 30 years.

With immediate effect as well, Permanent Residents (PR) who want to buy resale flats will have to wait three years after receiving their PR status. Prior to this change, they could buy a flat as soon as they received PR status.

Announcing these changes today, the HDB also provided more details of the extension of the Special Housing Grant (SHG) and the new step-up housing grant, which Prime Minster Lee Hsien Loong first announced during the National Day Rally.

The income ceiling for SHG will be raised significantly, from S$2,250 a month to S$6,500 a month for families and S$3,250 for singles. Mr Lee previously announced that the SHG would be extended to middle-income households and could be used for buying new four-room flats.

Under the new step up grant, families who want to upgrade from a two-room to a three-room flat can get a housing grant of S$15,000.

The changes to the housing grants will apply from the last month’s Built-to-order (BTO) exercise.

From next month, parents who want to live near their children will also be offered more alternatives.

Parents will be allowed to apply for three-room flats, under the multi-generation priority scheme (MGPS). Currently, the scheme allows parents to jointly apply, with their married child, for either a studio apartment or two-room flat, together with another flat in the same project. This will come into effect in next month’s BTO exercise.

To further cater to multi-generation families who wish to live under the same roof, the HDB will pilot a new type of flat.

The new Three-Generation flats, 80 of which will be available for sale in Yishun in the BTO exercise next month, will have four bedrooms and three bathrooms. Subletting of rooms in these new flats will not be allowed for the Minimum Occupation Period to ensure it serves its purpose.

[economist]

Pay attention to this: "With immediate effect as well, Permanent Residents (PR) who want to buy resale flats will have to wait three years after receiving their PR status."

So now what, new PRs can only buy condos?

So the measure will put pressure on HDB resale price, but the side effect is it supports mass market condo?

[mcmlxxvi]

转售组屋 价格准备大大调低了
Net effect: hdb resale prices crash.

[mummy]

转售组屋 价格准备大大调低了
Net effect: hdb resale prices crash.

Agree. I think million dollar resale hdb was ridiculous for a leasehold public housing in the first place and it prob triggered this new measure.

[economist]

and the government is really 狠, it says, "This will apply to resale applicants received from 5.30pm Tuesday."
and I did not even hear of such rumors on restrictions on new PRs before.

[mcmlxxvi]

Pay attention to this: "With immediate effect as well, Permanent Residents (PR) who want to buy resale flats will have to wait three years after receiving their PR status."

So now what, new PRs can only buy condos?

So the measure will put pressure on HDB resale price, but the side effect is it supports mass market condo?

http://www.hdb.gov.sg/fi10/fi10321p....latResaleIndex

马不停蹄 是时候了
Horse no stop hooves yes its high time

[mummy]

Buying a BTO for the sake of earning $200 to $300k 5 years later will probably get more difficult from now on.

[mcmlxxvi]

and the government is really 狠, it says, "This will apply to resale applicants received from 5.30pm Tuesday."
and I did not even hear of such rumors on restrictions on new PRs before.

But last batch bto applicants can enjoy the new higher grants.

Clearly shows govt pandering to which segment of society.

[mcmlxxvi]

Buying a BTO for the sake of earning $200 to $300k 5 years later will probably get more difficult from now on.

Yes those 2rm bto specuvestors from huatttttttty arrr to crash ahhhh within mere weeks.

Hdb punters die pain pain. Dont pray pray with us taxpayers money!!!

Days of easy and guaranteed profit after MOP is over!!!

For that, pls come buy our condos!!!! Wohahehhehehehehehehe

[dtrax]

howwwwww? HDB tio flanked by 3yr MOP, PC tio flanked by absd.
Now they all need to RENT.

[081828]

Think new sales EC mkt would be affected. Upgraders will face more obstacles.

The impact on new sales and resale PC mkt is not so straight forward. HDB upgraders would be now sidelined. So whose is left to support the mkt now? Will developers start to cut prices to move sales?

I think landlords may have their hand strengthen by this set of cooling measure

[yaozong7]

PR who dont want to rent, will turn to mass mkt OCR condos instead. MYR PR will turn to Iskandar. 3 years is a long time to rent.

Overall, the pool of tenants for HDB & OCR will increase, with the possible loser being HDB resale prices. Oh, and we can expect to see more new citizens soon.....

[princess_morbucks]

Pay attention to this: "With immediate effect as well, Permanent Residents (PR) who want to buy resale flats will have to wait three years after receiving their PR status."

So now what, new PRs can only buy condos?

So the measure will put pressure on HDB resale price, but the side effect is it supports mass market condo?

I foresee that new PRs have to rent hdb if they cannot afford pc..so hdb rental will huat.
Those who don't wanna rent hdb but have limited cash will probably buy the older condos or if want newer ones then get smaller units. So the old OCR condo will huat.

[Ringo33]

Pay attention to this: "With immediate effect as well, Permanent Residents (PR) who want to buy resale flats will have to wait three years after receiving their PR status."

So now what, new PRs can only buy condos?

So the measure will put pressure on HDB resale price, but the side effect is it supports mass market condo?

this should divert demand towards mass market condo.

[mcmlxxvi]

howwwwww? HDB tio flanked by 3yr MOP, PC tio flanked by absd.
Now they all need to RENT.

来来来。。。东方阿姨 有好多好多房子任君挑选!

Come come come... Eastern aunte has many many houses let gentlemen pick and choose!

[princess_morbucks]

So bj's 3rd eye not ling anymore.
He said all will crash except prices of hdb and bto.
Now looks like opposite liao.

[mummy]

I am afraid will this have a knock on effect on all properties eventually. This may be the begining of a fall in valuations of all properties.

[Arcachon]

PAP stick a sticker on his third eye.

[rymccondo77]

And the measures announced on a Tuesday instead of a Friday!

[081828]

I am afraid will this have a knock on effect on all properties eventually. This may be the begining of a fall in valuations of all properties.

It may not be the case. If valuation is a function of yield and if the rental mkt holds or strengthens, valuation may still hold. The number of transactions may nosedive further though. And it will take much longer to sell a property going forward.

[economist]

I'm actually surprised by this, as HDB resale already sees COVs coming off quite a lot. Let's see if the media will brand it as a CM, or not a CM.

[phantom_opera]

I can hear cursing from Pinnacle @ Duxton .. no more 1m HDB liao



but don't expect HDB price to go down a lot ... resale transaction volume will go down a lot though

sellers will all keep for rental, SPR buyers will need to wait

[economist]

govt seems trying too hard to please the mass, being more populist than before...

[mcmlxxvi]

Minister Ng Eng Hen did drop hint not to sell u hdb...

[Arcachon]

LUM PAH PAH LAN

[sherlock]

So for the next 3 years, all newly-minted PRs will have to rent. And that's good news for us landlords

[phantom_opera]

National Development Minister Khaw Boon Wan said that there would be “many millionaires” when the flats at Pinnacle@Duxton enter the resale market (in 2014)

.... KBW ....



.. and the haolian Duxton owners said they will never sell even for 3m ... their wish is granted:

She and her husband, Foo Soo Lim, acquired the five-room flat in 2004 for S$450,000. The unit is on the highest residential level of the building and there is a sky garden on the 50th floor.

2004 .. after 10y 800k-900k?? Bear in mind mortgate shortened to 25y and MSR down to 30% so higher priced HDB is going to be worst hit

[smellyfish]

I'm actually surprised by this, as HDB resale already sees COVs coming off quite a lot. Let's see if the media will brand it as a CM, or not a CM.

but valuation has gone up by quite a lot too

[Arcachon]

Wrong, depend on the printing press, if it print like the last few years one million no problem.

[phantom_opera]

printing press might slow after EM crisis