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Thread: Sudden change affects at least 150 property deals

  1. #1
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    Default Sudden change affects at least 150 property deals

    http://www.straitstimes.com/premium/...deals-20130830

    NEW HDB RULES FOR PRs

    Sudden change affects at least 150 property deals

    Buyers in mid-deal stranded; HDB plans to review deals on case-by-case basis

    Published on Aug 30, 2013

    By Daryl Chin, Property Correspondent


    AT LEAST 150 property deals have hit the skids due to a sudden Housing Board policy change which requires new permanent residents (PRs) to wait three years before they can buy a resale flat.

    The figure is an early estimate by property agents, who say that similar cases are streaming in, with PRs having been caught out by Tuesday night's surprise announcement, which took effect immediately.

    Before then, PRs could buy a resale flat as soon as their residency had been confirmed.

    National Development Minister Khaw Boon Wan said the move was part of efforts to stabilise and "restore balance" in the HDB market.

    But it has stranded buyers like IT customer service officer Gong Wei.

    The 26-year-old Hebei resident, who received his PR status last year, had already paid the $1,000 option fee and was waiting for the bank's letter of offer to signify his finances were healthy before submitting his application.

    The bank's letter arrived on his doorstep on Wednesday.

    "The new rule is a decision made by the country leaders and it's a policy I can accept," he said in Mandarin.

    "But I feel that a grace period for those who are already in the middle of a deal is a fair concession to make."

    While it is not known how many PRs have been caught out by Tuesday's move, official figures show that Singapore granted residency to about 30,000 people a year in the last three years.

    Mr Tony Du, president of the Tian Fu Club for new Chinese immigrants - mainly from Sichuan province - said new members typically buy a home within the first three years of being granted residency.

    "About 90 per cent go for HDB flats because they're cheaper," he noted.

    The development has already led to a drop in demand, which has trickled down to affect sellers and agents.

    Some agents report that PRs are cancelling viewings altogether, choosing instead to continue their current rental arrangements or opting for comparatively smaller two-bedroom suburban condo units at the prices they would have paid for a large resale flat in a better location.

    Purchasing supervisor William Sin had planned to sell his five-room Woodlands flat to Mr Gong Wei for $502,000. He will now have to look for a new buyer.

    Mr Sin, 44, had put down $1,000 on a three-room flat and now risks losing both.

    Even before Tuesday, he noted that genuine buyers have been few and far between.

    The mortgage servicing ratio limit, capped at between 30 per cent and 35 per cent at the start of the year to cool the market, has already led to the lowest number of HDB resale transactions in the first two quarters since 1997.

    "I've heeded the Government's call to reduce my debt," said Mr Sin. "But, ironically, holding on to a bigger unit now is not as good an asset as it was a couple of years back."

    Bosses at several of Singapore's largest property firms, including PropNex and ERA Realty, plan to appeal on behalf of buyers affected.

    Said PropNex key executive officer Lim Yong Hock: "These are not buyers who are gaming the system, but people with genuine needs. They should not be penalised."

    A spokesman for HDB told The Straits Times yesterday that it plans to review the transactions on a case-by-case basis.

    [email protected]

    Additional reporting by Lee Jian Xuan

  2. #2
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    Good that they stay out now....

    We are going to ask government to ban foreigners owning HDB soon. Meaning, all those PR owning HDB have to force sell their flats if they are not citizens.

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    Look at all the property agency panic now.. Still want to appeal for PR.. hahaha

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    Who is the traitor who dare to appeal for them now?

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    Quote Originally Posted by gemstone
    Good that they stay out now....

    We are going to ask government to ban foreigners owning HDB soon. Meaning, all those PR owning HDB have to force sell their flats if they are not citizens.
    if PRs are not allowed to buy resale HDBs...will there be sufficient demand from Singaporeans to keep the resale prices up ?

    will COV fall to zero ?

    like Minority mentioned in another thread ... banning PRs is shooting ourselves in the foot ?

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    Quote Originally Posted by proud owner
    if PRs are not allowed to buy resale HDBs...will there be sufficient demand from Singaporeans to keep the resale prices up ?

    will COV fall to zero ?

    like Minority mentioned in another thread ... banning PRs is shooting ourselves in the foot ?
    It is going to be for the good of majority of people, commoners >80% who are living in HDB. When they buy at lower prices, they are less debted. They finished their mortgage payments at younger age, and save more for retirement,medical,and have excess budget to go holidays,living better quality of life. What is bad about all this? unless, we want to cultivate a nation of lazy bums, all wanting to make their living from housing, then the country future is indeed bleak!

    In this land limited place, we cannot have everybody squeezing into expensive pte housing. Therefore, only those exceptional successful people lives there. This is life!

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    We are also asking the government to restrict foreigners buying private housing.

    Only those who invested a minimum of ______ into our economy to create jobs for our people , are allowed to purchase one home for their own stay! How about this?

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    Quote Originally Posted by gemstone
    It is going to be for the good of majority of people, commoners >80% who are living in HDB. When they buy at lower prices, they are less debted. They finished their mortgage payments at younger age, and save more for retirement,medical,and have excess budget to go holidays,living better quality of life. What is bad about all this? unless, we want to cultivate a nation of lazy bums, all wanting to make their living from housing, then the country future is indeed bleak!

    In this land limited place, we cannot have everybody squeezing into expensive pte housing. Therefore, only those exceptional successful people lives there. This is life!

    are you saying that this latest measure is to bring HDB prices down ?
    and that this is what policy makers want to achieve ? lower HDB prices?

    it would make new buyers happy ... but seller wud be very upset ... and these sellers make up 80 pct of the population...

    isn't that a big risk for the govt to take ? 80 pct of population unhappy

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    Quote Originally Posted by proud owner
    are you saying that this latest measure is to bring HDB prices down ?
    and that this is what policy makers want to achieve ? lower HDB prices?

    it would make new buyers happy ... but seller wud be very upset ... and these sellers make up 80 pct of the population...

    isn't that a big risk for the govt to take ? 80 pct of population unhappy
    Does it make sense that 80pct sell? May I ask where they live?

    btw, nobody can predict where the prices going lah. .. therefore, buyers should best evaluate their financial means before commiting anything.

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    Quote Originally Posted by gemstone
    Does it make sense that 80pct sell? May I ask where they live?
    when prices fall ...valuations fall ...

    that's enough to upset people ... doesn't matter if they are selling or not ...

    to simply know that your asset values have fallen ...BECOS of a govt policy ... and that policy affects 80 pct of the population ... that's not good for news at all

    those who needs to buy ..simply buy direct from HDB brand new ... why make 80 pct unhappy ?

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    Quote Originally Posted by proud owner
    when prices fall ...valuations fall ...

    that's enough to upset people ... doesn't matter if they are selling or not ...

    to simply know that your asset values have fallen ...BECOS of a govt policy ... and that policy affects 80 pct of the population ... that's not good for news at all

    those who needs to buy ..simply buy direct from HDB brand new ... why make 80 pct unhappy ?
    but if all buying direct from hdb, who is buying from 80pct?

    sorry, I couldn't emphathise about how one become upset over falling valuation of his roof! I would be staying under the same roof till the day I'm gone. and whatever is liquidated from the roof after I'm gone, I won't get to know, see, or even spend it! therefore, whats all these upsets about?

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    Quote Originally Posted by proud owner
    when prices fall ...valuations fall ...

    that's enough to upset people ... doesn't matter if they are selling or not ...

    to simply know that your asset values have fallen ...BECOS of a govt policy ... and that policy affects 80 pct of the population ... that's not good for news at all

    those who needs to buy ..simply buy direct from HDB brand new ... why make 80 pct unhappy ?

    I don't own a HDB ,,,never had ... so really doesn't affect me ...

    I am just curious why target PRs .. when they form a support force in resale HDB prices...

    if govt wants to tackle the debt issues ... they just don't have to approve the purchase ....with other guidelines ... and encourage new bueyrs to apply for new HDBs ...

    so I really wonder whats behind this new policy

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    Quote Originally Posted by gemstone
    but if all buying direct from hdb, who is buying from 80pct?
    those who cant or don't want to wait for 2-3 yrs ...

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    Quote Originally Posted by proud owner
    I don't own a HDB ,,,never had ... so really doesn't affect me ...

    I am just curious why target PRs .. when they form a support force in resale HDB prices...

    if govt wants to tackle the debt issues ... they just don't have to approve the purchase ....with other guidelines ... and encourage new bueyrs to apply for new HDBs ...

    so I really wonder whats behind this new policy
    Huge debt is the issue. When you say prices are supported by PR: this group can withdraw and go back to their home town. The locals have to carry the debts related to their roof. We are unlike America where just return the keys and payment stops.

    I'd felt even direct hdb prices are pushed up quite significantly (they say its construction costs). I have my doubts.

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    Quote Originally Posted by gemstone
    Huge debt is the issue. When you say prices are supported by PR: this group can withdraw and go back to their home town. The locals have to carry the debts related to their roof. We are unlike America where just return the keys and payment stops.

    I'd felt even direct hdb prices are pushed up quite significantly (they say its construction costs). I have my doubts.
    PRs form a part of the support group ... not the entire ...

    what I feel is that this policy removes a portion of support force... if the govt wants to really tackle this potential debt problem... then they shud stop the real culprits ..eg...those who pocketed huge sum from enbloc of pc ..and paid top price for HDBs... they kind of set the trend in prices too ...or at least started the ball rolling..

    also those who owns multiple private properties ..and yet hanging on to the HDB that they really don't need ...but as an extra income... they are culprits too...

    I am not talking about old folks ..who maybe living with children ... being taken care of by children and living with them .. and renting out the HDB.. .. those cases are ok ..


    I am sure there are other culprit ... but why PRs ..really puzzles me...

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    Quote Originally Posted by gemstone
    Huge debt is the issue. When you say prices are supported by PR: this group can withdraw and go back to their home town. The locals have to carry the debts related to their roof. We are unlike America where just return the keys and payment stops.

    I'd felt even direct hdb prices are pushed up quite significantly (they say its construction costs). I have my doubts.
    I don't think it has anything to do with construction cost ..

    its all about MONEY ... doing a good job and not 'making money' for the ministry does not make one a good minister ... but if his ministry also makes money ... that's a different story

    it doesn't matter if HDB construct in Woodlands or Queenstown ...they cost are the same ... BUT the sale prices are worlds apart...

    they can cite land cost ... but hey ..who sets the land price ?

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    Quote Originally Posted by proud owner
    PRs form a part of the support group ... not the entire ...

    what I feel is that this policy removes a portion of support force... if the govt wants to really tackle this potential debt problem... then they shud stop the real culprits ..eg...those who pocketed huge sum from enbloc of pc ..and paid top price for HDBs... they kind of set the trend in prices too ...or at least started the ball rolling..

    also those who owns multiple private properties ..and yet hanging on to the HDB that they really don't need ...but as an extra income... they are culprits too...

    I am not talking about old folks ..who maybe living with children ... being taken care of by children and living with them .. and renting out the HDB.. .. those cases are ok ..


    I am sure there are other culprit ... but why PRs ..really puzzles me...
    I actually thot gov will tackle this grip but perhaps diff to get data? Strange hor .... I know of a few ferns like tt own a few pet n still hang onto Hdb ... No case lei vs. those with only one pet plus one hdb

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    Quote Originally Posted by gemstone
    sorry, I couldn't emphathise about how one become upset over falling valuation of his roof! I would be staying under the same roof till the day I'm gone. and whatever is liquidated from the roof after I'm gone, I won't get to know, see, or even spend it! therefore, whats all these upsets about?
    Tat the reason why argument comes about. We all like to think everybody else is thinking like ourselves. Although you have no intention to sell does not mean that others share your view. What is the percentage of people who really don't want to sell? What is the percentage of people who want to sell? What is the percentage of people who are happy with paper profit? What is the percentage of people who really just want a no frill basic house? We do not have access to these data, without the data, we cannot be sure who is right or who is wrong.

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    Quote Originally Posted by Allthepies
    Tat the reason why argument comes about. We all like to think everybody else is thinking like ourselves. Although you have no intention to sell does not mean that others share your view. What is the percentage of people who really don't want to sell? What is the percentage of people who want to sell? What is the percentage of people who are happy with paper profit? What is the percentage of people who really just want a no frill basic house? We do not have access to these data, without the data, we cannot be sure who is right or who is wrong.
    Are those people unhappy over falling valuations because they are wanting to make a living out of our roofs? Don't they have regular jobs which pay their living expenses, savings etc?

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    Quote Originally Posted by gemstone
    We are also asking the government to restrict foreigners buying private housing.

    Only those who invested a minimum of ______ into our economy to create jobs for our people , are allowed to purchase one home for their own stay! How about this?
    And Inland revenue need to buck up to check 'Trading transaction' instead of Capital transaction for those holding multiple properties.

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    MTB time to buy don't wait for to drop

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    Quote Originally Posted by Arcachon
    MTB time to buy don't wait for to drop
    Wah, mountain fox....


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    Wats with all these Viagra messages ....
    “Nothing in the world is more dangerous than sincere ignorance and conscientious stupidity.”
    ― Martin Luther King, Jr.

    OUT WITH THE SHIT TRASH

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