New Measures To Cool Property Market 30 August

[bepgof 20]

Bro, you fast hand fast leg... bought the TG, otherwise you kena the SSD for 3 years sub sale.

Also, you cannot buy the TG,FV ... can see only for a long time

Just come back from lawyer firm for 15% payment, stupid fat lady lawyer asked me: how long have I been staying in present 5rm, I said < a year. She asked: are you sure you can buy privite property. My wife open eye big big, stared at me, then her, as if wanted to faint.

Fought with little tigers so many times within a year, returned home sound & safe. Escaped the MOP, 5% become 10% booking fee as well as the 80% become 70% loan, & the 3 yr SSD.Wow, 4-in-1. Too early to say "heng".

The fundament drive to these new rules boil down to new houses "could not be completed in time", and mkt players are smart to quickly chiong & buy to rent or resell, or keep for own stay or for next generation.....So, the demand is fundamentally there but new rules skew benefially to those who are "cash rich".

Just received an email alert from HDB abt these new rules, worth a read:

http://www.hdb.gov.sg/fi10/fi10296p.nsf/Pr...19?OpenDocument

Edited August 30, 2010 by bepgof

[Jgal 0]

Hope all the measure works and drive down the prices by 10% in the coming months..

What do you think is the impact on mkt ?

- hdb resale

- pte pty (new)

- pte pty (resale)

[bepgof 20]

Hope all the measure works and drive down the prices by 10% in the coming months..

What do you think is the impact on mkt ?

- hdb resale

- pte pty (new)

- pte pty (resale)

Good questions, I have asked myself the same months before: hope some will pour in after I started.

1. Not interested in hdb resale so I do not bother much abt it. But I think buying demand should drop and therefore 1st thing is COV down. Young couplers likely to wait for EC & DBSS.

2. Pte new - developers will "hold" the price for another 3 months or so before deciding further. Price drop not so immediate/drastic. But those TOP coming ones yet many units unsold - developers will be desperated and start down the price, usually unsold is because of location issue. L99 will be hit the most. Those FH, landed, BCB still able to take the "shock".

3. Pte resale - again most hit one will be those L99. Most ppl buy resale either cos of budget, buy & rent, small portion for own stay. Immigrates will buy, hdb upgraders will "hold".

Edited August 30, 2010 by bepgof

[therat 18]

how abt those in defer payment?

If the project is going to TOP soon, will they get 70% or 80% loan

[Warrior88 0]

how abt those in defer payment?

If the project is going to TOP soon, will they get 70% or 80% loan

If already submit for stamp duty to IRAS before 30 Aug, should follow old rule ?

[Warrior88 0]

Hope all the measure works and drive down the prices by 10% in the coming months..

What do you think is the impact on mkt ?

- hdb resale

- pte pty (new)

- pte pty (resale)

For the 10%, only apply to ppl with existing loan. My take is that ppl are still cash rich and that this measure is to prevent property bubble. Ppl will still find that 5% (50k) for 1 mil property.

5years MOP. Most of those who own pte and hdb would have done so liao since hdb announce in 2007

that hdb may be rented out. Pte owner last time don't buy hdb, now then buy. No many right ?

Likewise for resale owner. Not many will be affected. But current buyer must choose either one.

So that balance up pte & resale.

BUT if they hit the nail right on ... That is pte owner cannot rent out HDB.. Many pte owner will scramble to sell them. Wanna know the number of pte owner with hdb... I also want to know

[Jgal 0]

New rules effect to properties.

HDB (resale)

Supply :

- Lower supply because owners want to hold their HDB and save for their pte because they cant buy hdb later and hold pte.

Demand :

- Less demand because pty owner not allowed to buy unless they intend to sell their current pty.

- Less demand because those with the intention to upgrade need to consider selling only in 5 yrs times.

I think CCK, SK , Punggol, JW area prices will go down because supply will increase significately in these area. So if you are not desperate, then , ppl will wait out. DBSS , EC also ard there. So 8-10k buyers will also chose to wait.

HDB prime areas eg. Central , near mrt shld still in hot.

Private Property

http://www.propertyguru.com.sg/property-ma...tion-in-q1-2010

Pte buyer profile

-- 23.5% foreigner

-- 33.7% Singapore / hdb dwellers (Q1 2010)

I think with this kind of profile. The pte resale properties may go down quite quickly. Foreign demand will be lower significately because unless they intend to root their investment in singapore for more than 3 yrs, they wont buy. Chances for price to soar in the new future is also lower because wait to sell is too long. HDB dwellers who havent meet the mop cant buy now. So chance of them using their spare CPF for investment will be lower.

[Jgal 0]

For the 10%, only apply to ppl with existing loan. My take is that ppl are still cash rich and that this measure is to prevent property bubble. Ppl will still find that 5% (50k) for 1 mil property.

5years MOP. Most of those who own pte and hdb would have done so liao since hdb announce in 2007

that hdb may be rented out. Pte owner last time don't buy hdb, now then buy. No many right ?

Likewise for resale owner. Not many will be affected. But current buyer must choose either one.

So that balance up pte & resale.

BUT if they hit the nail right on ... That is pte owner cannot rent out HDB.. Many pte owner will scramble to sell them. Wanna know the number of pte owner with hdb... I also want to know

Actually, they did. From now on, pte owner cannot buy hdb without the intention to stay cos' they have to sell all their pte units after buying a hdb. Pte owner can let their hdb lay waste for 3 yrs since the price is going up.. but dun think they want to move out of their pte unit if their motive is to rent out.

[bepgof 20]

Hope all the measure works and drive down the prices by 10% in the coming months..

What do you think is the impact on mkt ?

- hdb resale

- pte pty (new)

- pte pty (resale)

Now at home, got free time, let me do a more detail breakdown(static only, dynamic not considered-brain too limited, need simulator):

1. HDB resale -

- ppl sell for money to reinvest, either keep, downgrade, upgrade to hdb or buy pte resale or pte new. Mostly pte resale/new.

- ppl buy due to needs, as well as vehicle for rental

- MOP is not a real issue. Gov tries to reduce unit's frequency of exchange hand. So "transaction" will be less.

- However, but then must stay there till mop is quite an issue for those "investors" who buy hdb & intend to rent out.

- 10%/70% no issue for 1st time home owner. "investors" need serious consideration.

- Basically, new housing supply (BTO, DBSS, EC) cannot catch up in time, resale demand(real needs, not "investors")remains.

Summary: Buying spin narrow down (investor out), 1st time buyer good at bargaining and cautious abt price due to budget....Sellers want to sell? So buyers vs sellers, u see me, i see u. Transaction will have a big drop, after some months, and bounce back, cos buyers & sellers then will become "more realistic".

2. Pte new-

- Buyer are most HDB upgraders, especially L99.

- 10%/70% is the "killer" here. Those fully redeem hdb owners can escape the 70%, can afford the 10%.

- Those still servicing loan for hdb, majority will be "out" due to 10%/70% = younger couplers.

- 3yr MOP filters out those "flipping"-especially units with small sqf. Another "killer" for short term investors.

- FH/landed/GBC less "exchange" hand within short period of time. Real buyers see 3 yrs mop as "s s water".

Summary: Transaction drops(3yr mop + 10%/70% rules), price will follow(L99 most kena, near TOP, developer desperate)to a point reach equilibrium(ppl see good chance & come in).

3. Pte resale

- Similar to 2. Comparatively, owners more "eager" to sell at lower price than developers for new projects.

Summary: Similar to 2.

Edited August 30, 2010 by bepgof

[bepgof 20]

how abt those in defer payment?

If the project is going to TOP soon, will they get 70% or 80% loan

Still have meh this scheme? With the 10% upfront, the progressive payment scheme also needs adjustment.

Edited August 30, 2010 by bepgof

[bepgof 20]

For the 10%, only apply to ppl with existing loan. My take is that ppl are still cash rich and that this measure is to prevent property bubble. Ppl will still find that 5% (50k) for 1 mil property.

5years MOP. Most of those who own pte and hdb would have done so liao since hdb announce in 2007

that hdb may be rented out. Pte owner last time don't buy hdb, now then buy. No many right ?

Likewise for resale owner. Not many will be affected. But current buyer must choose either one.

So that balance up pte & resale.

BUT if they hit the nail right on ... That is pte owner cannot rent out HDB.. Many pte owner will scramble to sell them. Wanna know the number of pte owner with hdb... I also want to know

Bro, sorry to say that yr input like these are like a 3-yr-old submitting homework to a U lecturer.

Edited August 30, 2010 by bepgof

[therat 18]

Still have meh this scheme? With the 10% upfront, the progressive payment scheme also needs adjustment.

those early project which get approve before the door close.

I remember seeing a project advertising early of the yr with defer payment.

Has not TOP

[bepgof 20]

Now at home, got free time, let me do a more detail breakdown(static only, dynamic not considered-brain too limited, need simulator):

1. HDB resale -

- ppl sell for money to reinvest, either keep, downgrade, upgrade to hdb or buy pte resale or pte new. Mostly pte resale/new.

- ppl buy due to needs, as well as vehicle for rental

- MOP is not a real issue. Gov tries to reduce unit's frequency of exchange hand. So "transaction" will be less.

- However, but then must stay there till mop is quite an issue for those "investors" who buy hdb & intend to rent out.

- Pte property owners buying HDB resale, must sell away their pte is also an issue. Rule "deters" this class of ppl from buying hdb resale.

- 10%/70% no issue for 1st time home owner. "investors" need serious consideration.

- Basically, new housing supply (BTO, DBSS, EC) cannot catch up in time, resale demand(real needs, not "investors")remains.

Summary: Buying spin narrow down (investor out), 1st time buyer good at bargaining and cautious abt price due to budget....Sellers want to sell? So buyers vs sellers, u see me, i see u (last for a coupler of months). Transaction will have a big drop, after some months, and tx bounces back, cos buyers & sellers then become "more realistic".

2. Pte new-

- Buyer are most HDB upgraders, especially L99.

- 10%/70% is the "killer" here. Those fully redeem hdb owners can escape the 70%, can afford the 10%.

- Those still servicing loan for hdb, majority will be "out" due to 10%/70% = younger couplers.

- 3yr MOP filters out those "flipping"-especially units with small sqf. Another "killer" for short term investors.

- FH/landed/GBC less "exchange" hand within short period of time. Real buyers see 3 yrs mop as "s s water".

Summary: Transaction drops(3yr mop + 10%/70% rules), price will follow(L99 most kena, near TOP, developer desperate)to a point reach equilibrium(ppl see good chance & come in).

3. Pte resale

- Similar to 2. Comparatively, owners more "eager" to sell at lower price than developers for new projects.

Summary: Similar to 2.

Edited August 30, 2010 by bepgof

[blue_skies 3]

If you sellyour pte now. You cannot buy until MOP for your realse flat.

5 years ? so long.. see dream home also cannot buy ?

Getting sick.... thought of selling my resale, tie here tie there.

But, new rule start, cannot also get out, only after 5 years. Both way die .. Haiz

My HDB application was submitted before 30 Aug so not affected. MOP is the 3 yrs one.

Only concern I have is that I can only get 70% loan for the next pte ppty purchase so need to come up with sizeable amt of cash. Hope that ppty prices will drop (after I sell my pte ppty). Hahaha

[Warrior88 0]

My HDB application was submitted before 30 Aug so not affected. MOP is the 3 yrs one.

Only concern I have is that I can only get 70% loan for the next pte ppty purchase so need to come up with sizeable amt of cash. Hope that ppty prices will drop (after I sell my pte ppty). Hahaha

So you wanna sell high. Should not be an issue, after all you have 2 property to play around.

But you will have to wait until the next economy downturn. Current changes is not a major impact.

By the way, anyone knows how many ppl with dual ownership status (pte & hdb) ?