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Thread: HDB considering imposing a quota on PRs in resale flats

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    Default HDB considering imposing a quota on PRs in resale flats

    http://www.channelnewsasia.com/stori...033446/1/.html

    HDB considering imposing a quota on PRs in resale flats

    By Asha Popatlal, Channel NewsAsia | Posted: 27 January 2010 2113 hrs


    SINGAPORE: The Housing & Development Board (HDB) is considering imposing a quota on Permanent Residents buying resale HDB flats. This could be done in the same way that racial quotas are imposed to prevent ethnic enclaves.

    The issue came up in a dialogue session on public housing with Minister Mentor Lee Kuan Yew where questions on affordability and aspirations were brought up.

    Public housing has come a long way from where it started 50 years ago. Still, issues remain. These include how foreigners are perceived to affect pricing of flats.

    Mr Lee said over the next five years, the intake of foreigners will slow down but that means Singaporeans will have to increase their productivity.

    Going further, dialogue moderator Professor Tommy Koh asked if more could be done to integrate those already here, in much the same way that the Ethnic Integration Policy was introduced in 1989 in public housing estates to get races mingling.

    Mr Lee said: "Could the same approach be adopted towards integrating new Singaporeans? We are not allowing new Singaporeans whether from China, India, Malaysia, or whatever, to congregate in the same tower blocks, which they are already beginning to do.

    "They buy second hand flats and they congregate. So we have a record of how many new citizens living where and we keep their numbers dispersed. It's a very valuable tool of communal harmony."

    HDB later clarified that a quota policy on PRs for resale flats was being considered.

    One other issue that came up during the dialogue is that of affordability, which has come up repeatedly. One suggestion was to have HDB provide more rental housing units.

    Mr Lee said: 'I completely disagree with that policy. It will lead us into all kinds of problems. You are getting a dependency group - dependent on the government on constant subsidies, whereas our philosophy is 'I give you this asset, I will increase the value of the asset as the economy grows but it is yours and you look after it.' And we do not have run down public housing like other countries which are rental."

    Mr Lee was also asked for his take on a recent media report that at least three opposition parties were eyeing National Development Minister Mah Bow Tan's ward with the aim of making public housing affordability an election issue.

    He explained: "What is affordabilty? From the point of view of the buyer? And the government that is subsidising you? The government has to price it at a level that is fair to the revenue it is collecting and fair to the individual, not only the present buyer but past and future buyers. If Mr Mah is unable to defend himself, he deserves to lose.

    "No country in the world has given its citizens and families an asset as valuable as what we have given every family here. And if you say that policy is at fault, you must be daft."

    Mr Lee was speaking before some 500 delegates from 20 countries at a housing conference. - CNA/vm

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    Hmm ... ethnic quota for Singapore PRs on a particular estate ... means all along there is no control ... would this result in short term panic buying?
    May be this will even force Singapore PRs to buy mass market condo instead.

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    Quote Originally Posted by jitkiat
    Hmm ... ethnic quota for Singapore PRs on a particular estate ... means all along there is no control ... would this result in short term panic buying?
    May be this will even force Singapore PRs to buy mass market condo instead.
    Ya, the quota system would definately drive the resale price upwards. Sellers will monitor the quota closely and will try to sell only to PRs who would not mind pay higher for their choiced blocks.

    Following LKY's speech ( definately would be implemented from past records ) the alarm already triggered to those PRs/new citizens who are yet to own HDB flats. Panic buying should start from now .......

    35 years old 4 rm at Marine Parade was $400K in Sep 09, asking $490K last few wks, might ask $600K when quota is imposed, we shall see first HDB unit sold at S$1 million this year ...

    No wonder all my school-going children told me they will stay with me forever to " look after " me .....

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    Quote Originally Posted by sealover
    Ya, the quota system would definately drive the resale price upwards. Sellers will monitor the quota closely and will try to sell only to PRs who would not mind pay higher for their choiced blocks.

    Following LKY's speech ( definately would be implemented from past records ) the alarm already triggered to those PRs/new citizens who are yet to own HDB flats. Panic buying should start from now .......

    35 years old 4 rm at Marine Parade was $400K in Sep 09, asking $490K last few wks, might ask $600K when quota is imposed, we shall see first HDB unit sold at S$1 million this year ...

    No wonder all my school-going children told me they will stay with me forever to " look after " me .....
    Hmm.. another Asset enhancement strategy?
    BE CENTRED BY ALL AT THE FRINGE OF THE CITY @

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    the quota thingy would clamp down hard on the supply of resale flat for PRs, regardless of the price buyers are willing to pay. Once quota is filled, even if someone (PR) offer you 1mil COV, the law will say NO.

    So meaning the demand will have to be met somewhere else, and i foresee OCR and RCR private properties will be "fried" up to meet the huge demand coming from PRs. Rentals might just go up.

    As for the CCR properties, those PRs who can afford would have given HDB a miss already, although the ripple effect might be felt.

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    Quote Originally Posted by xtink
    the quota thingy would clamp down hard on the supply of resale flat for PRs, regardless of the price buyers are willing to pay. Once quota is filled, even if someone (PR) offer you 1mil COV, the law will say NO.

    So meaning the demand will have to be met somewhere else, and i foresee OCR and RCR private properties will be "fried" up to meet the huge demand coming from PRs. Rentals might just go up.

    As for the CCR properties, those PRs who can afford would have given HDB a miss already, although the ripple effect might be felt.
    My PR friend told me happily yesterday that this is another policy to benifit PR, i.e. :

    PR who already own HDB will ask for much higher COV as PR selling to PR will not affect the quota.....

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    Quote Originally Posted by sealover
    My PR friend told me happily yesterday that this is another policy to benifit PR, i.e. :

    PR who already own HDB will ask for much higher COV as PR selling to PR will not affect the quota.....
    That is provided PRs in that block or area are under-quota.

    If they are over-quota, PR can only sell to Singaporean so as to meet the quota.

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    Quote Originally Posted by Reporter
    That is provided PRs in that block or area are under-quota.

    If they are over-quota, PR can only sell to Singaporean so as to meet the quota.
    How would the Govt allocate the quota? Based on current mix? or desired mixed, if it is based on current mix, there would no such thing as over quota.

    For eg. take XXX HDB estate, if current 40% are owned by PR, the Govt imposes new PR quota of 30%, it may be very hard to achieve this new quota as many Singaporeans may not like to stay in that estate, this would drive prices down in order to entice Singaporeans to buy. This would be a politically unpopular move among the people there.

    So personally, I feel that the PR ratio would be based on current mix and that would mean PRs have higher chance to make money.

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