Senior
Senior
More holding on to their HDB flats
February 18, 2013 at 11:16am
More holding on to their HDB flats
Percentage who sell after minimum occupation period dips, reversing trend
By Daryl Chin
A HIGHER percentage of home owners are holding on to their Housing Board flats, reversing a trend that had been rising in the past four years.
According to data from the Housing Board yesterday, the percentage of home owners who sold their property within the year after it hit the five-year minimum occupation period (MOP) was 11.8 per cent last year.
It had been climbing steadily, from 4.3 per cent in 2008 to 18.3 per cent in 2011.
These figures are for flats bought directly from the HDB.
Property analysts say the drop can be attributed to various factors, chief among them being sky-high private property prices that deter HDB upgraders, and restrictions incurred after selling a flat.
International Property Advisor chief executive Ku Swee Yong said: "The fact that more people are reluctant to sell their flats is a sign that they have difficulty gaining entry into the private property ladder."
Another reason, he proposed, was that flat owners also believe that HDB flats have room to appreciate further, outpacing their private counterparts.
Resale HDB flat prices went up 6.6 per cent last year, while private home prices increased by 2.8 per cent.
PropNex chief executive Mohamed Ismail said the restrictions on flat ownership have also played a part.
Since August 2010, private property owners have been required to sell their existing property if they wanted to buy an HDB resale flat.
But HDB owners who have fulfilled their MOP are allowed to purchase a private property and hold on to both at the same time.
That round of measures in 2010 also revised the MOP for letting out a flat from three years to five years.
"Once you upgrade and sell your HDB flat, it's very hard to come back in again," Mr Ismail said, adding most people are cognisant of the fact that HDB flats typically give higher rental yields.
SLP International's head of research Nicholas Mak said: "It's increasingly difficult to own an investment property, so most owners would hold on to their flats, which they likely bought at subsidised prices, while building their finances to buy an additional private home."
In tandem, the number of flats being sublet out also dipped last year, according to the HDB.
Some 3.1 per cent of home owners let out their flats last year, compared with 4.8 per cent in the year before.
"There are two reasons for this," said Mr Ismail. "The first is that many flat buyers in recent years were genuinely in need of housing, while the second is that the current economic turmoil overseas means fewer families are leaving the country for work."
HDB flat owner Steve Tan, 38, said he has no plans to sell his four-room flat in Hougang, even though he would stand to make a tidy sum.
"If I sell high, I need to buy high. Far better to have a roof over my head and wait till condo prices start dipping," said the engineer.
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Copyright © 2013 Singapore Press Holdings. Reprinted with Permission.
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Newbie
Hdb mkt is dead ! Khaw policy works.... ;-)
Next is will dip below yr purchase price n bank ask for top up ? Wonder ever happen before historically ?
Global recession is coming....
Never heard before historically nor saw it reported in newspapers as long as you never miss any instalment payment!
Saw some complaints about being asked to "top-up" but end up that the reality is that they missed payments!
There are some rumours but those are just that: "rumours"! These rumours most likely stem from above "complaints"!
Originally Posted by smallant
Senior
Interesting, this is what you get from the articles. Care to share what you study in school.
Supply and Demand.
Supply reduce means HDB mkt dead ??????????
1. "Once you upgrade and sell your HDB flat, it's very hard to come back in again,"
2. most people are cognisant of the fact that HDB flats typically give higher rental yields.
3. "It's increasingly difficult to own an investment property
4. Steve Tan, 38, said he has no plans to sell his four-room flat in Hougang, even though he would stand to make a tidy sum.
5. "If I sell high, I need to buy high. Far better to have a roof over my head and wait till condo prices start dipping," said the engineer.
Junior
From the data I know that if die die must buy resale HDB one shall buy only in marine parade, bukit timah and central. ..
Senior
For HDB, buy close to city where land is mostly exhausted. Supply n demand rule. Their prices will continue to climb in mid-long term. Wait for enbloc (SERS) which is guaranteed n reap e wind fall. For pte, now it is still not a good time to buy in city center. Wait for their froth to further settle first.
Junior
Any suggestion where to buy for private? my feel is tat resale MM in city could be a good choice as this segment is affected most by the cooling measures...
Global recession is coming....
For HDBs, avoid those with large supply nearby, eg Jurong, Woodlands, (the big hitherlands nearby), Chua Chu Kang, Sembawang, Punggol/Sengkang, Pasir Ris (in future Pulau Ubin and Tekong will become housing estates?)
Newbie
Not sure if you try to sell yr flat in the mkt ? Then u will realise what I mean.... buyer anyhow bid with no valuation guide.. (if u lucky to get buyer) .. hehe...
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