Sep 3, 2010 - PropertyGuru.com.sg
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Some permanent residents (PRs), seem to be discouraged from purchasing resale flats in Singapore due to the new rules that prevent residents from owning both private and public properties.Some agents said PRs are delaying house hunting, and they expect that this will contribute to fewer sales of resale flats in the coming months.
The change in sentiment is attributed to the government's new rules introduced this week to temper the residential property sector.
A private property owner purchasing a non-subsidised HDB flat is now required to sell his private property within six months of the acquisition of the flat, regardless of the location of the property.
In addition, a person buying a non-subsidised flat can purchase a private property in Singapore or abroad only after meeting the five-year minimum occupation period.
These new rules could catch PRs who may already own or intend to purchase properties in their homeland.
“We have got instances where PRs who were looking for properties have postponed the intention or the decision,” said Mohamed Ismail, chief executive of PropNex in an interview with The Business Times. “They said that they want to have a clearer understanding.”
Mr. Ismail is one of those who believes that there will be a decline in the demand from PRs for resale flats. PRs now account for approximately 20 percent of all resale flat acquisitions.
Mr. Ismail expects that 30 percent to 40 percent of PR buyers will have second thoughts on purchasing a property in the short term.
However, some agents do not expect the new rules to greatly affect PRs interest for resale flats.
According to a senior agent who refused to be named, the HDB may depend on PRs to declare if they own properties abroad, adding that some may declare otherwise for them to be able to purchase resale flats in Singapore.
Several market watchers have voiced concerns on the implementation of the new rules. HDB has not yet revealed how it will monitor foreign property ownership or what sanctions it will impose on those who violate the rules.
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Reader Comments: (8 comments)
On the contrary, Singaporeans should be allowed to own both HDBs and private properties as this is our land. PRs ONLY should be subjected to this ruling for refusing our citizenship.
HDB sold set the overseas property price should not cross singapore 50000 SGD .
Some of my PR buyers hesitant also to buy because now the immigration is very strict in the renewal of PR. Those who buy a flat doesnt mean that they will get renewal of PR... so buying an hdb for pr is not that easy anymore.
Liu Edwin FYI , COV is not set by HDB, is requested by the owner. Notice that seller asking COV has drop alittle after 31stAug...haha, good sign ! !
I wonder why HDB has not review the current the COV ruling. I have noticed that the preferred COV set by HDB seller is rocket high.
As I have predicted few months ago. Mass market will cool off,leaving speculators losing gains,follow by HDB resale. Should be stable for the next few months this year.
of course PR will lose appetite with the new rules, as they cannot acquired property in both private and public flat.
With the new measures. PR with foreign properties will have to buy private property. This will push up the demand for mass market condo as they are now not able to buy resale HDB.