By Khalil AdisSep 3, 2010
Khalil Adis is an experienced property writer, with in-depth knowledge of Singapore's and Malaysia's property market. During his career, he's written for Property Guru, Property Report and Property...
Bookmark & Share
 |
The latest measures appear to be aimed at speculators who are partly blamed for driving Housing Development Board (HDB) resale prices upwards.
In case you don’t already know, prices of HDB flats are now at a record high.
According to figures from the HDB, the Resale Price Index (RPI) had increased by 4.1 percent to reach 161.3 points in the second quarter. This means HDB resale prices are now at their highest point since the HDB began tracking data on the RPI since the first quarter of 1994.
Meanwhile, the median Cash-Over-Valuation (COV) levels rose by a whopping 20 percent to reach S$30,000 in the second quarter. This is some S$5,000 jump from the first quarter.
The rising prices of HDB flats are a cause for concern as first-time homebuyers like young couples and singles have found themselves priced out of their affordability range.
Some have resorted to renting an HDB flat from the open market which runs counter to HDB’s mission statement to provide affordable homes for all.
With some complaints on the ground and elections looming, it came as no surprise that on 30 August 2010, the HDB finally announced new measures to help ensure flats remain affordable for first time Singaporean homeowners.
Property bubble forming
The fears that a property bubble is forming in the HDB market are very real.
As far back as two years ago, some Singaporeans were already raising alarm bells via online forums that a number of permanent residents were taking advantage of their eligibility to buy resale flats to jack up prices.
According to figures from the HDB, the highest rate of increase occurred in 2008. This corresponded to the year when the government welcomed over 20,000 new citizens and 90,000 permanent residents, but the HDB only built 3,183 flats. In addition, Singaporeans also jumped onto the bandwagon by selling their flats to make a quick profit from the red-hot HDB market.
This drove property prices upwards.
Data from Global Property Guide confirmed that Singapore is the hottest real estate market in the world.
Property prices have soared by 34 percent in the past 12 months ending June this year. Prices of HDB resale flats have been increasing steadily from the second quarter of 2003. It has now risen 60 percent since the second quarter of 2003.
Meanwhile, according to a study by UBS, wages have not gone up in tandem, brought about in part by the influx of foreigners.
Cooling measures
So how will the new cooling measures affect you? Well, it only affects those who already have a home and not first-time homeowners.
For those of you selling your flats within the first three years, a stamp duty will be imposed, up from one year.
If you currently live in an HDB flat and want to buy another, you need to pay 10 percent cash up front, up from the original 5 percent. In addition, you can only borrow up to 70 percent of your HDB flat value, down from 80 percent.
For those of you who already own an HDB flat and want to buy a private property, you are not allowed to buy during the minimum occupation period (MOP) which has been increased from three years to five years.
For those of you who already own a private property and want to buy a non-subsidised HDB flat, you must sell your current property within six months from the date of your flat purchase.
There’s also good news for the sandwiched class as those earning between $8,000 to $10,000 a month can now buy new Design Build and Sell Scheme (DBSS) flats with a $30,000 CPF Housing grant.
The MOP has also been increased for non-subsidised flats from three years to five years. This would deter speculators from flipping their properties and denying an opportunity for those in dire need of a home.
To buy or sell?
While the Singapore government has promised it will offer more than 16,000 new flats this year and 22,000 new flats in 2011, I feel the measures have come a tad bit too late.
A few questions remain. For instance, why did the HDB not have the foresight to build sufficient flats when the government was increasing the size of the population via immigration?
Nevertheless, the new supply coming on-stream is good news for first-time homeowners.
However, you do need to wait for two-and-a-half years before you can move into your home.
The bad news is for those of you trying to sell your flats.
With new supply coming on-stream by 2013 and 2014, prices of resale flats are expected to drop during this period. My advice is to sell before 2013 to 2014, provided you have fulfilled all of HDB’s criterias.
The Singaporean love affair with overseas property...
Property buyers from Southeast Asia...
Search Property News
Keywords:
Reader Comments (16 comments)
Khalil - Don't worry... Just carry on doing what you do... Though I don't always agree with all your points, but your articles are always a good read... There will always be positive and negative feedback along the way... Take it as honest criticism ... But then, as usual, there will be some a**hole hypocrites who thinks they're better than you or everyone else... And whatever you do, it's always wrong... It's ok... That's life... Just ignore them... You don't owe them a living... Regards and all the best!
To honest, I think khalil Adis do make some valid comments about the Sg housing policies and we do need such critics to point out negative aspects of the policies. For a start, HDB's objective of providing affordable public housing while continuing to allow COVs to run amok is one big contradiction.
Dear Mark Lai. If you have an opinion different from Khalil, you are entitled to post your rebuttals. Indeed, since you are questioning his credibility and intent, all the more the onus is on you to prove your case.
Sharon, i am not bantering. I expressed my view about Kahalil and was hoping he would explain but like in the past, he avoided my questions. You jumped in later but I did explained to you why i have such views on Khalil. It was simply because of his tonality in all his posts. I question his intention because all his posts about Sgp policies are upright negative. He only mentioned the negativities and does not present a full picture, that is not an expert should present himself. An expert should present both side of the story without any personal prejudice and bias. Based on the above observation after reading all his posts, i qns his credibility and intention. That's all. Or may be my expectation of a property expert need to be adjusted. That's my stand. I am not finding fault with anyone here, not you and not the rest that reply. I never have doubt other writers here. I could only noticed that you are not please because i mentioned 'vulnerable and insecure', for that I clarified. Not all, again, not all are vulerable and insecure. I hope i have make my point clear. I really do hope you can find your answers you need.
Perhaps Mark, you can use all that negative energy and turn it to be more constructive to answer questions posted on Ask Guru under HDB Questions. Plenty of confused citizens asking about this rather messy new rule. Wouldn't that be better rather than starting forum bantering? Just a smart advice from us young generation.
Yes... Sharon , u hv my support ! If u dont like dont come into this site !
Cool down everyone he"s just giving comment , no harm done.
Khalil expresses valid opinions here. He is one of a few writers who actually thought through the issue. If expressing any opinion or criticism, for or against the government policy, is being political, so be it. Then, I would rather read a "political" article then a plain bland informative one.
Dear Mark, Stop politising things that is not there! Sharon do have a point, in fact a few and I agree with her!!This is an expert blog not a political party rally. The younger gen is more educated and more exposed to alternative ideas and will qn the present govt if there is lack of transparency on their policies. Frankly accusing the writer of instigation shows how immature you are. I am sure you have a brain no matter how pea-sized it is to make your own decisions. Let's be honest here Mark Lai...It is you who should be shamed for getting worked up unneccessarily and putting up accusation when it is clearly not a political issue. The writer is not blaming the govt but trying to relay the msg that the policies should have been thought thru more carefully. They should be in a much better position and to take note of the citizens concern instead of waiting for a post-reaction measures.He is also highlighting the matter with facts aside from the one so typically sugar-coated mainstream media. Mark, just grow up!
to all, Pls chk out today 05/09/10 Sunday Times. Page 23. it has most of the info. Don't waste your time reading this. however if you want to support other intent go to a related site. This is a property site.
Housing in most countries naturally is a political issue. Singapore is no exception, except that here citizens are so used to being provided for by the goovernment, that we hardly question intelligently the policies imposed from the top, albeit with good intention. Khalid is just a reporter earning his keep and perhaps trying to build a reputation, and so being oppositional in orientation seemed cool. What he wrote merely parrots some views and I suspect he lacks the intellectual honesty and maybe he lacks obectivity to get quotes or views from the "other point-of-view" to provide the balance. We do not need reporters like him to pontificate or prophesise the future. Enough of his dim-witted views! My take is that the medicine may be strong but necessary to prevent a property bubble. I msy not be estatic about the cooling measures but overall, better to avoid a disaster than allow negative folks like Khalid to discourage us whatver the direction of the market is.
Yes, yes..:I agree -) not all are vulnerable and insecure. Now, there are 2 things here. 1. Yes, information is all over. There are grey areas waiting to be clarified. It should be and can be handle in a better way. As in any implementation of public policies, there are happy people and sad people. Why the sudden flood of new rules? simply because many are requesting measures to be in place to curb raising property prices. They are setting up a ministry to handle property matters better. So hope things will improve. However, the point is, they should have handle the distribution of infomation better. 2. Politic is all around you, there are so many trying to support their party to sit in parliment. There are people making use of the people confusion to play down the ruling party. Like you, many are confused. Trust me, from bankers to lawyers they are clueless like you. Khalil's articles have a strong tonality - Blaming the government. That is politic. If he is genuine in provide a faq to all, he could have provide in a comprehensive manner. Look at the title of this and previous entries, that's politic. Read his other blog entries you will feel it. Compare it with other writers, you would figure out the differences. I hope you found your answers, engage and talk to the people from the industry, especially those from the ground, ie. property consulatant or lawyers. They may give you what you need. Not cab drivers or some property writer with a political intent.
To be honest Mark, my common woman mind completely blocked-out any hints of political intent in Khalil's blog. I was only concern to get clarifications on the new rules and OPINIONS of how it can affect me. I don't see no political agenda because truly this country has been known to be governed by one ruling party for many long years already that don't look like it'll change in any near future or ever. So I don't really care for politics because it don't really exist in this country. I am only concern with whoever's running this country address to the public in a manner that we understand and not confuse us or forcefully injected. The fact that you immediately look into this with such political malice without considering for comman man and woman like myself, makes me question your political intent too. The common man and woman just wants answers to our questions, and if the governing bodies can't do that with effective communication and transparency, then yes, we'll look elsewhere. We can get bits and pieces of information and opinion, we consider them and then we decide if one is just bantering for his own agenda - which we young generation will ignore OR whether there's weight for considerations in the pieces of information and opinion we've gathered. Like I said.. we young generations are not as vulnerable and insecure as you said earlier.
Yes, young generation can think and of course you have you own mind. I am questioning Khalil intetion not the state of the younger generation. If you do follow Khalil's blog, there is only 3 things that surface. 1. No suggestion to what can be done. 2. Be it to cool or not to cool the property market is wrong or bad. When government not reacting, he painted a really bad picture, when government reacted he said too late too little. Do you know that the latest policy on housing will tank the entire property market? Anyone who is thinking of upgrade from HDB can forget it. So is it too little? 3. The artical is full of political intent. What i think is, he should contribute to temasek review or other forum. Not here as the political weightage is so much heavier than property trend discussion.
What's wrong with this Mark Lai? As a citizen, I think this is a good GENERAL INFORMATIVE blog. What I do or think about it is up to me. You don't think as a young generation, I can't think for my own do you? I wish there could be a Q&A session to address the citizen's question because with all these implementations... alot of us are confused... I was in a cab the other day and the cab driver thought that he has to let go his HDB within 6 months if he wants to buy a condo... don't just spoonfeed us with these rules and expect us to swallow wholesome... we're not babies. We're young generation who CAN THINK and will have questions. And with the lack of communication, lack of sharing and lack of transparency from the government, it's no wonder we look at other sources that the internet can provide. Thanks Khalil, and shame on you Mark, looking down on young generations as "vulnerable and insecure."
Stop your rubbish. First you try to instigate people to make noise to cool the property market now you instigate another negative thought - Your HDB value is going to drop. In another word, nothing satisfy you. Stopping makeing use of people insucurity to obtain your political agenda. Shame on you, using your so call "expert" knowledge to code your political intent. Using the younger generation's desire to own a dream home to make them feel the government is incompetent. They are vulnerable and still finding way in life. You are sick