Guess What Hdb Cooling Measures To Be Announced Soon

[bepgof 20]

Some "cooling measures" on HDB mkt will be announced in March. Care to input your anticipations as to what will these be ? And the effects of such invisible hand?

[bepgof 20]

Let me start:

1. HDB owner with private property sure kena......

2. Buy, stay, then sell interval control?

3. COV payment in 1st appointment for bank loan?

[davidbslee 1]

10% payment instead of 5% those taking bank loan.

[forgotten 1]

10% payment instead of 5% those taking bank loan.

Please correct me if I am wrong...

If the buyer has enough CPF funds, he can pay 15% CPF + 5% cash right?

[summerflowers 0]

25% levy on COV on top of the 25% levy on the selling price.

[bepgof 20]

Well, HK gov has just increase stamp duty fee to cool the "heat".

[Phantom 1]

"1. HDB owner with private property sure kena......

2. Buy, stay, then sell interval control?

3. COV payment in 1st appointment for bank loan??"

I don't see how the above might control prices.

1) How they kena?

2) There is already a 1 year time bar for selling HDB flat with loan..

3) COV payment in 1st appointment or 2nd appointment doesn't really impact anything rather than inconvenience and bar HDB sellers to buy another HDB until the HDB they sold is completed. Why do you want to implement a policy that will inconvenience and bar genuine hdb sellers looking to buy another hdb by asking them to come out cov in 1st appointment, many of such hdb sellers are selling to encash money out of their hdb to downgrade to smaller hdbs. These group of people are selling a home to buy another home.

Effective measures could be:

A) Time bar for Permanent Residence, PRs (Couple) who are purchasing HDB resale flats are required to have resided/domicile Singapore for at least 2-3 years before being allowed to purchase HDB flats, they can buy private properties condo. This would remove a big chunk of recent PRs to purchase HDB and cool off COV fever. This will resolve growing resentment among younger singaporeans who presume that PRs are kicking up the HDB prices. In actual fact, we won't know, many singaporeans could be downgrading from Private to HDB.. it could just be market driven.

B) Time bar for Sellers who buy a private property are not allowed to buy HDB resale within 1-2 years if they still own the private property, this will also prevent the loophole where people are buying Private then HDB whereas, a person who buy a HDB in the resale market technically cannot buy a private within 3 years or 5 years depending on whether they take a bank loan or hdb loan. The requirement suggested is better as under current scenarios, it is not possible to enforce a private property homeowner to buy a HDB and expect them to live in the HDB for 3 years as it is possible many people are illegally renting out their HDB flats for profits.

Suggestions are effective in my opinion to control and stabilize prices while have measures that are enforceable. COV and valuation should normalize within acceptable range once measures are in place.

It is normal for prices of assets to increase over time, but the spike in property prices is a concern.

Edited February 24, 2010 by Phantom

[bepgof 20]

Time bar method has been prove an effective way to clamp down the spike, like what was adopted in 1996 or 1997 - must stay 10 yr before selling away, etc. Believed this time round, gov will use the "Soft-methods" first like:

1. Rise time interval for first timer to sell. As what LSL say: home is to stay, not for speculation...

2. Rise time bar for resale owner to sell

3. 5% cash, revised to 10% or 15%...

"Hard method" like:

1. Imposing 2-way stamp duty or increase stamp duty(gov benifitted), likely to be used only after election.

2. Impose some levy on who rents out HDB, yet holding private property.

[Phantom 1]

Time bar method has been prove an effective way to clamp down the spike, like what was adopted in 1996 or 1997 - must stay 10 yr before selling away, etc. Believed this time round, gov will use the "Soft-methods" first like:

1. Rise time interval for first timer to sell. As what LSL say: home is to stay, not for speculation...

2. Rise time bar for resale owner to sell

3. 5% cash, revised to 10% or 15%...

"Hard method" like:

1. Imposing 2-way stamp duty or increase stamp duty(gov benifitted), likely to be used only after election.

2. Impose some levy on who rents out HDB, yet holding private property.

1) Rise Time interval to sell. Curent MOP requirements look decent and unlikely to change. Might require owners who buy resale using bank loan, to increase from 1 year time bar to sell to 2 year. If using cash to buy, no time bar at the moment and potentially could increase to 1 year.

2) generally the time bars are already pretty effective, to curb speculative individuals, then the 2 above mentioned groups are more likely to sell within a short period, resale hdb on bank loan and resale hdb paid in cash.

3) Raising 5% cash component is high handed and extremely unlikely.

A- imposing selling stamp duty unlikely, might result in sellers asking for higher COV. counter productive.

B- imposing levy on people who rent out HDB and while maintaing private property, unlikely to have much impact because alot of people illegally rent out.

Measures announced should be able to tackle the problem and yet at the same time cool tensions regarding foreign immigrants. I still stand by my views that

A) Time bar for Permanent Residence, PRs (Couple) who are purchasing HDB resale flats are required to have resided/domicile Singapore for at least 2-3 years before being allowed to purchase HDB flats.

B) Time bar for private property owners, are not allowed to buy HDB resale within 1-2 years if they still own the private property, this will also prevent the loophole where people are buying Private then HDB whereas, a person who buy a HDB in the resale market technically cannot buy a private within 3 years or 5 years depending on whether they take a bank loan or hdb loan. The requirement suggested is better as under current scenarios, it is not possible to enforce a private property homeowner to buy a HDB and expect them to live in the HDB for 3 years as it is possible many people are illegally renting out their HDB flats for profits.

C) Clamp down on illegal HDB rental, impose measures of fine and imprisonment for owners, tenants. This will strike fear and tenants will not want to risk fine and imprisonment if they know the owner is illegally renting out. Agents involved will be striked off licences. Fear strategy best way to attack the market as manpower and resource is finite and HDB not able to police owners who illegally rent out their HDB.

e.g. 40 units in propertyguru for rent in marine parade. Zun Bo? all out of MOP? Must stay 3 years leh if bank loan....

Edited February 25, 2010 by Phantom

[bepgof 20]

Let's back to basic facts:

1. Resale mkt demand: WHO buy??

1.1 - PRs buy

1.2 - Young couples buy. cos BTO, DSS wait too long or location/price/grant,etc factors. Combined income excess $8000.

1.3 - "rich" pte pty owners(S'porean, PRs)buy

1.4 - Upgraders/Downgraders (sell/buy). Still in a loop.

2. Resale mkt supply: WHO sell??

2.1 - Owners move to pte pty/oversea

2.2 - Upgraders/Downgraders (sell & buy)

2.3 - pte pty owner with HDB unit

True fact is resale mkt is under supply. Let's look at effects

1.1 If time bar up, PRs will rent resales/pte pty or buy pte pty. Indirectly created hdb rental demand & pte pty demand.

1.2 If up cash portion, they will generate noises and those income exceed 8k will seriously considering buyer pte pty. Pte pty demand created.

1.3

1.4 Impose limit on number of buy/sell. This is an efective measure to dim resale mkt transaction. These people will be unhappy and likely to "anyhow" cast the votes in GE. Uncles/Anunties/divorcee fall into this category.

2.1 Gov should really consider giving these people somekind of "grant" who directly generate supply in a tight resale mkt. Anyway, encourage these to migrate and creates pte pty demand.

2.2 Same as 1.4 *****Surely need to do something to these people. Remembered what LSL has said: "Home is for stay, not for speculation".

2.3 These people should be encouraged to give up their HDB units, but how? Very headach leh, let Mah & Lee to worry.

Put input your precious views.

[Phantom 1]

Let's back to basic facts:

I agree that the demand for HDB's outstrip the supply. The government did not foresee the influx of residents taking up HDB and the recent upswing in the property market.

1. Resale mkt demand: WHO buy??

1.1 - PRs buy

1.2 - Young couples buy. cos BTO, DSS wait too long or location/price/grant,etc factors. Combined income excess $8000.

1.3 - "rich" pte pty owners(S'porean, PRs)buy

1.4 - Upgraders/Downgraders (sell/buy). Still in a loop.

The points are valid. One point to note, illegal rental. There have been many reports of people buying HDB for rental and it makes absolute sense as the yield is much better. One key point to note is that if HDB's are supposed to be for affordable housing for residents to stay, then the gov has to tackle the issue of rental. In time to come maybe even every 3 or 4 out of 10 HDBs are rented out for rental yield. Then where's the affordable housing for residents. I foresee that maybe there could be a rule:

1) Owners of more than 1 private property cannot own HDB.

2) Owners of private property are not allowed to rent out HDB.

This could push back the demand for HDB as rental investment properties at the same time it is as good as saying, don't think about renting your HDB out. It's purely for stay. prices of HDB's might come off drastically but at the same time, push more supply into the resale market as it doesn't make anymore sense to hold on a HDB for investment purpose.

2. Resale mkt supply: WHO sell??

2.1 - Owners move to pte pty/oversea

2.2 - Upgraders/Downgraders (sell & buy)

2.3 - pte pty owner with HDB unit

Similar Points are valid.

True fact is resale mkt is under supply. Let's look at effects

1.1 If time bar up, PRs will rent resales/pte pty or buy pte pty. Indirectly created hdb rental demand & pte pty demand.

1.2 If up cash portion, they will generate noises and those income exceed 8k will seriously considering buyer pte pty. Pte pty demand created.

1.3

1.4 Impose limit on number of buy/sell. This is an efective measure to dim resale mkt transaction. These people will be unhappy and likely to "anyhow" cast the votes in GE. Uncles/Anunties/divorcee fall into this category.

Time bar is necessary imho to temporary measure to curb the demand side while they ramp up supply as BTOs still need at least 2-3 years to TOP. They cannot ramp up supply fast enough. So they will need to measures to curb demand.

Upping cash portion is not a major issue to curb demand as still PRs are extremely good savers generally. Plus, you will price out many true Singaporeans who are cash tight to buy HDB.. political backlash is very high.

What do you mean by impose limit of buy/sell??

2.1 Gov should really consider giving these people somekind of "grant" who directly generate supply in a tight resale mkt. Anyway, encourage these to migrate and creates pte pty demand.

2.2 Same as 1.4 *****Surely need to do something to these people. Remembered what LSL has said: "Home is for stay, not for speculation".

2.3 These people should be encouraged to give up their HDB units, but how? Very headach leh, let Mah & Lee to worry.

Put input your precious views.

Grant? How do you propose that?

As for your 2.2, what's there to do for people who buy or sell their HDB for another HDB? Moving for locality, or other purposes, like schools etc.. It's nothing new, all the while people do that. Ultimately they are still owning 1 HDB and still staying.

Which people should be encouraged to give up HDB?

[forgotten 1]

Straits Times 26 Feb

Feb 26, 2010

Residential DC rates up

For landed residential sites, the largest increase of 17 per cent will be levied on developments in the Tanglin, Holland, Sixth Avenue, Bukit Timah and Cluny Road areas), Sentosa and even the outskirts in Hougang, Toa Payoh and Ang Mo Kio areas.-- ST PHOTO: ALPHONSUS CHERN

THE Government has raised the development charges (DC) payable by property developers for enhancing the use of residential sites.

The DC rates for landed homes will go up by an average of 12 per cent for the next six months from March 1, said the Ministry of National Development on Friday. It was unchanged in the previous six-monthly revision.

The rates for non-landed homes will rise by 8 per cent on average, compared with 2 per cent previously. But DC rates for commercial sites will fall by 2 per cent on average, with rates for sites in Raffles Quay and Shenton Way areas falling by as much as 13 per cent.

But development charges for commercial sites on Sentosa will shoot up by 13 per cent.

For landed residential sites, the largest increase of 17 per cent will be levied on developments in the Tanglin, Holland, Sixth Avenue, Bukit Timah and Cluny Road areas), Sentosa and even the outskirts in Hougang, Toa Payoh and Ang Mo Kio areas.

The new rates will apply to projects which have been granted provisional permission (PP) or a second and and subsequent extension to the PP on or after March 1.

[forgotten 1]

Is government trying to drive up the prices of private properties?

Government seems desperate to fill up the deep holes (huges losses) left behind by GIC & Temasek Holdings lor. Increase prices of so many things these months!

Edited February 26, 2010 by forgotten

[Phantom 1]

Is government trying to drive up the prices of private properties?

Government seems desperate to fill up the deep holes (huges losses) left behind by GIC & Temasek Holdings lor. Increase prices of so many things these months!

Taking advantage to earn some money for election drive. LOL.

For investment yield, buying commercial makes a lot more sense. If the interest rate jumps up, alot of so called private property owners will find their rental can barely cover the installments. not to mention maintenance fees...

[bepgof 20]

DC meant to deter developers "anyhow" tender land price in good time, indirectly jerk up price of end product. This should be a "temporary" measure, anyway, lets's see if to remove soon. The "holes" by GIC/Temasek, only in paper, so long as no "exchange hand", paper remains as paper.

As what Mah/Paper put it recently that mkt now is :

1. Low interest

2. econ recover

3. mkt is very "liquid", created very +ve sentiments for property "investment/speculation". This is reflected in stock marker. Prop stocks vol rather volatile. Price will anytime "chiong" awaiting for Mar's announcement and GE.

All?? Singaporeans know property have rather high yield (hdb resale average has 8.1% ROI for 2009 alone)cos land scare.Uncles/Anuties/Divorcee especially "tempted" by hear & say, then take part in SELLing without really understand the rules of the "game", causing so much "problems" to buyers.

Now Singapore is in a sensitive situation of "General Election vs property market". As "standard", "soft" measures will be used before GE then follow by "hard" measures, if "soft" measures no "good enough". Sure "time bar" approach will be used first.

No harm to anticipate, this tests yr understanding of mkt. I believed what proverb says "He who knows nothing doubts nothing".