Analysts expect shift in housing policy?

[Voodooman]

Don't think re-sale prices will be affected. If they increase household income to 10k per month, re-sale mkt may boom.

Its the prices of flats direct fm HDB that citizens are not happy with.

 

Care to explain your logic? I thought if income ceiling goes up, it will steer more buyers who are not eligible to buy new BTO now from the resale market towards the BTO market. Resale flat has no income ceiling, right? Assuming KBW reduces BTO prices, a likely scenario as the pegged to market policy of MBT will need to be reviewed, demand for resale flats is likely to soften, this should have negative impact on HDB resale prices. Anyway, I doubt Govt wants to crash the market, not in the interest of the majority, so changes are likely to be incremental.

 

KBW needs to convince market that prices will remain stable so that those who dun need a house now will not jump into the property market, distorting real demand and driving prices up... This is probably what is driving the property market now... buy now before it is too late.

 

 

[Latka]

It's a difficult situation, lower the flat prices too much, then the queue for new flats will be longer. resale flat demand will drop, thus propety prices drop in general.

 

perhaps if they lower the prices of new flats, there might be additional restrictions on selling or put a sales levy/tax when selling, or can only sell back to hdb at discount

 

Unless 1st time buyers willing to wait a couple of years for their flat lor. If can't wait, they can buy re-sale with grant.

[Latka]

Care to explain your logic? I thought if income ceiling goes up, it will steer more buyers who are not eligible to buy new BTO now from the resale market towards the BTO market. Resale flat has no income ceiling, right? Assuming KBW reduces BTO prices, a likely scenario as the pegged to market policy of MBT will need to be reviewed, demand for resale flats is likely to soften, this should have negative impact on HDB resale prices. Anyway, I doubt Govt wants to crash the market, not in the interest of the majority, so changes are likely to be incremental.

 

KBW needs to convince market that prices will remain stable so that those who dun need a house now will not jump into the property market, distorting real demand and driving prices up... This is probably what is driving the property market now... buy now before it is too late.

 

refering to re-sale mkt. Income ceiling has a bearing on whether they can take HDB loan, if exceed, they have to take bank loan and no grant for them. Wif sky high prices of HDB, they may strongly consider buying condo.

But if income ceiling raised to 10k, their wl be people with higher budget in terms of COV since they can get grant and take subsidized loan.

[Toyo]

It's a difficult situation, lower the flat prices too much, then the queue for new flats will be longer. resale flat demand will drop, thus propety prices drop in general.

 

perhaps if they lower the prices of new flats, there might be additional restrictions on selling or put a sales levy/tax when selling, or can only sell back to hdb at discount

 

how abt remaining status quo, give out more grant like maybe $100K to first timer for purchasing new flats?

[Kangadrool]

how abt remaining status quo, give out more grant like maybe $100K to first timer for purchasing new flats?

 

They already said "it's raiding the reserve".

[Kangadrool]

I prefer true no nonsense pricing than grants, reabtes, etc. Don't forget there are many strings attached to these grants.

[Ngck]

grants means HDB is unaffordable....

 

if affordable why need grants?

 

no need to do so many pattern.... build more flats, price it reasonably... the rest of the market will take care of itself....

 

sell cheap buy cheap, sell expensive buy expensive. speculators can go to hell

Edited May 20, 2011 by Ngck

[Voodooman]

refering to re-sale mkt. Income ceiling has a bearing on whether they can take HDB loan, if exceed, they have to take bank loan and no grant for them. Wif sky high prices of HDB, they may strongly consider buying condo.

But if income ceiling raised to 10k, their wl be people with higher budget in terms of COV since they can get grant and take subsidized loan.

 

Assuming I have family income of 8-10k, why would I buy a resale HDB at 500k when I can get a BTO at 300k, grant or no grant? I believe the govt grant is currently capped at around 30k, so the math still dun add up. I doubt KBW will increase housing grant for resale flat as supply remains tight, it will just drive up resale market further and his mandate is to stablise property prices.

 

I can understand some may want to buy resale for the location or to be near parents but at current resale prices with the sky high COV, majority of the 8k to 10k family looking for a flat will opt for BTO, if they are allowed to. It is a no brainer, even after factoring in 3 years rental cost, BTO is still cheaper, and you get a brand new flat (most will just stay with parents, thus saving the monies for renovation).

 

Subsidized loan? I thought commercial mortgage loans are cheaper now, HDB loan cost 2.6% p.a., which is no longer "subsidized" nor market.

 

The question should be how big is this group of people and is it going to be 10k or 12k or even higher? And are the numbers large enough to sway the demand curve significantly?

 

 

[Ben5266]

Care to explain your logic? I thought if income ceiling goes up, it will steer more buyers who are not eligible to buy new BTO now from the resale market towards the BTO market. Resale flat has no income ceiling, right? Assuming KBW reduces BTO prices, a likely scenario as the pegged to market policy of MBT will need to be reviewed, demand for resale flats is likely to soften, this should have negative impact on HDB resale prices. Anyway, I doubt Govt wants to crash the market, not in the interest of the majority, so changes are likely to be incremental.

 

KBW needs to convince market that prices will remain stable so that those who dun need a house now will not jump into the property market, distorting real demand and driving prices up... This is probably what is driving the property market now... buy now before it is too late.

[Help1]

i think my bil smart... sold his 4-rm flat at buangkok for $535K last week and plan to sit on the fence, wait for timing to go in again.......

 

 

which part of buangkok?

[Soya]

not likely in singapore la....see soya also share my views

 

 

many ppl r oredi spending $60k-$80k for reno. if u take a 5-rm flat wif a reno budget of $70k, that oredi works out to $60psf! and that's juz within the confines of the flat itself n doesn't count anything else.

 

i dunno how one can even come to the view that $60psf can pau everything, incl land for private property?

 

that's why i'm more than willing to double that price n buy over at $120psf. I'll quickly offload it to capitaland or any developer for $800psf and in turn, it'll hit the market at $1200psf.

[Ncss]

If KBW can reduce expensive medical bill to just $8, I'm sure he can do wonders to HDB prices. That's the quality PM saw in him so appointed him to that post

 

Problem is that he is the only one paying $8 for such medical bill and no one know exactly how he do it

Edited May 20, 2011 by Ncss

[Acemundo]

many ppl r oredi spending $60k-$80k for reno. if u take a 5-rm flat wif a reno budget of $70k, that oredi works out to $60psf! and that's juz within the confines of the flat itself n doesn't count anything else.

 

i dunno how one can even come to the view that $60psf can pau everything, incl land for private property?

 

that's why i'm more than willing to double that price n buy over at $120psf. I'll quickly offload it to capitaland or any developer for $800psf and in turn, it'll hit the market at $1200psf.

 

yep, at first i was thinking also along the same line. if he quoted $60psf it must be purely the interior renovation and nothing else

 

although we are not from construction industry, some educated guesses in relation to renovation cost will roughly tell us the reasonable ball park range of the cost of construction.

[Blackyv]

which part of buangkok?

 

i think 264x cluster, Coris... high floor..

[Evillusion]

kns the previous guy dig very big and deep hole and he now retired and enjoying his monies and his pension while the incoming has to cover the hole and singaporean in general have to slog it out....it can only happen in Singapore!

[Altivo]

Their govt not trying hard enough.

 

 

1) HDB Flats can only be bought by Citizens or a Singaporean in the ownership nucleus.

2) BTO System to be scrapped. Build flats ahead of forecasted demand for the next 2-3 years based on records and statistics.

3) With regards to HDB housing, PRs are only allowed to rent until they become a citizen.

4) New Flats to be given up to 40% Actual Subsidy of the median of resale house prices in the surrounding area min stay 12 yrs (central/high demand districts to be pegged to national average valuation + land cost)

5) Areas to increase value based on developments in the area.

6) COV to be taken out of calculation the median price of the flat sold(only valuation amount is taken into consideration)

 

 

Comments?

 

Yes... i agree.. particulary point 3. HDB should be for citizens. For Singaporeans who have spouses that are PR, maybe a seperate scheme such as paying a levy etc should be imposed for buying HDB.

 

Don't you find it a joke that cooling measures have to be implemented for PUBLIC housing in Singapore? Geeezzzzzz

Edited May 20, 2011 by Altivo

[Altivo]

Problem is that he is the only one paying $8 for such medical bill and no one know exactly how he do it

 

He mentioned it before leow... he had addtional insurance polices which covered hospitalisation costs etc... Hence he paid only $8.

[Joseph22]

kns the previous guy dig very big and deep hole and he now retired and enjoying his monies and his pension while the incoming has to cover the hole and singaporean in general have to slog it out....it can only happen in Singapore!

 

No leh.. Obama also have to cover big hole digged by Bush..

 

we are aiming to be number 1. this hole not big enough