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Coffeeshop Chit Chat - HDB finally consider curbing speculation</TD><TD id=msgunetc noWrap align=right>
Subscribe </TD></TR></TBODY></TABLE><TABLE class=msgtable cellSpacing=0 cellPadding=0 width="96%"><TBODY><TR><TD class=msg vAlign=top><TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR class=msghead><TD class=msgbfr1 width="1%"> </TD><TD><TABLE border=0 cellSpacing=0 cellPadding=0><TBODY><TR class=msghead vAlign=top><TD class=msgF width="1%" noWrap align=right>From: </TD><TD class=msgFname width="68%" noWrap>kojakbt_89 <NOBR></NOBR> </TD><TD class=msgDate width="30%" noWrap align=right>3:58 am </TD></TR><TR class=msghead><TD class=msgT height=20 width="1%" noWrap align=right>To: </TD><TD class=msgTname width="68%" noWrap>ALL <NOBR></NOBR></TD><TD class=msgNum noWrap align=right> (1 of 2) </TD></TR></TBODY></TABLE></TD></TR><TR><TD class=msgleft rowSpan=4 width="1%"> </TD><TD class=wintiny noWrap align=right>29314.1 </TD></TR><TR><TD height=8></TD></TR><TR><TD class=msgtxt>HDB to finally consider introducing rules to curb speculation in public housing market
February 28, 2010 by admin
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http://www.temasekreview.com/2010/02/28/hdb-to-consider-introducing-rules-to-curb-speculation-in-public-housing-market/
Written by Our Correspondent
After months of denying that the prices of HDB flats have spiralled out of control, National Development Minister Mah Bow Tan finally relented and said last week “the Government is looking into ’something’ regarding measures for the HDB market.”
Though he did not reveal the details, property experts interviewed by the Straits Times “reckoned the Government could extend the minimum occupation period for those who bought their flats with bank loans as well as make checks to ensure owners are not flouting the rules.”
Mr Mah has received alot of flak lately over his inept handling of the matter which has caused considerable distress and anguish to ordinary Singaporeans who are increasingly priced out of the public housing market, especially the resale one.
The prices of HDB flats have almost doubled in the last few years, with that of resale flats hitting a record high in June 2009 when the economy was mired in recession.
The abnormal situation is caused largely by the lack of foresight of HDB to plan well ahead to build more flats to meet the expected increase in demand for housing fueled by uncontrolled immigration.
Recent launches of BTO flats are more than 5 to 10 times subscribed even in less popular areas like Choa Chua Kang, an indication of how serious the housing shortage has become.
Only slightly more than 11,000 new flats were built between the years 2006 – 2008 when there were over 90,000 PRs and 20,000 new citizens alone in 2008:
[Source: HDB Financial Report 2008/2009]
Below is a graph illustrating how the rise in the prices of resale flats coincides with the rise in the number of foreigners in Singapore between the years 2000 and 2008, courtesy of Kojakbt, the moderator of 3in1kopitiam:
Due to the ruling party’s liberal immigration policy, foreigners now made up 36 per cent of Singapore’s population, up from 14 per cent in 1990.
The prices of HDB flats are kept artificially high by building less flats than needed to meet the demand and increasing the population via immigration.
Unlike in other countries, PRs are allowed to purchase public housing in Singapore from the open market with few restrictions. Some PRs have “spoilt” the market by over-paying for the flats. An Indonesian PR was reported in the media to pay $653,000 for a 4-room resale flat in Queenstown when he could well afford a condominium.
According to official figures, PRs form 20 per cent of the buyers in the resale market though some real estate agencies like ERA put the figure higher at 40 per cent.
The state media has been trying to deflect public anger from the government and PRs by pointing the fingers at private property owners for snapping up the resale flats when they constitute only about 5 – 7 per cent of the buyers.
With elections around the corner and public sentiments fast turning against the ruling party, HDB has to be seen as “doing something” to placate angry Singaporeans.
Mr Mah has to act quickly so that he will not be “caught offguard” again. As for Singaporeans who bought the flats as such obscene prices, they will have to pray that hard that prices will continue to rise and not drop in the next few years with more flats being released into the market.
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February 28, 2010 by admin
Filed under Headlines
Leave a comment
http://www.temasekreview.com/2010/02/28/hdb-to-consider-introducing-rules-to-curb-speculation-in-public-housing-market/
Written by Our Correspondent
After months of denying that the prices of HDB flats have spiralled out of control, National Development Minister Mah Bow Tan finally relented and said last week “the Government is looking into ’something’ regarding measures for the HDB market.”
Though he did not reveal the details, property experts interviewed by the Straits Times “reckoned the Government could extend the minimum occupation period for those who bought their flats with bank loans as well as make checks to ensure owners are not flouting the rules.”
Mr Mah has received alot of flak lately over his inept handling of the matter which has caused considerable distress and anguish to ordinary Singaporeans who are increasingly priced out of the public housing market, especially the resale one.
The prices of HDB flats have almost doubled in the last few years, with that of resale flats hitting a record high in June 2009 when the economy was mired in recession.
The abnormal situation is caused largely by the lack of foresight of HDB to plan well ahead to build more flats to meet the expected increase in demand for housing fueled by uncontrolled immigration.
Recent launches of BTO flats are more than 5 to 10 times subscribed even in less popular areas like Choa Chua Kang, an indication of how serious the housing shortage has become.
Only slightly more than 11,000 new flats were built between the years 2006 – 2008 when there were over 90,000 PRs and 20,000 new citizens alone in 2008:
[Source: HDB Financial Report 2008/2009]
Below is a graph illustrating how the rise in the prices of resale flats coincides with the rise in the number of foreigners in Singapore between the years 2000 and 2008, courtesy of Kojakbt, the moderator of 3in1kopitiam:
The prices of HDB flats are kept artificially high by building less flats than needed to meet the demand and increasing the population via immigration.
Unlike in other countries, PRs are allowed to purchase public housing in Singapore from the open market with few restrictions. Some PRs have “spoilt” the market by over-paying for the flats. An Indonesian PR was reported in the media to pay $653,000 for a 4-room resale flat in Queenstown when he could well afford a condominium.
According to official figures, PRs form 20 per cent of the buyers in the resale market though some real estate agencies like ERA put the figure higher at 40 per cent.
The state media has been trying to deflect public anger from the government and PRs by pointing the fingers at private property owners for snapping up the resale flats when they constitute only about 5 – 7 per cent of the buyers.
With elections around the corner and public sentiments fast turning against the ruling party, HDB has to be seen as “doing something” to placate angry Singaporeans.
Mr Mah has to act quickly so that he will not be “caught offguard” again. As for Singaporeans who bought the flats as such obscene prices, they will have to pray that hard that prices will continue to rise and not drop in the next few years with more flats being released into the market.
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