HDB to slow supply of flats from next year

[Temperament]

Escalator up then escalator down. Escalator stops. Can we ever make escalator "balance"? But who are the people who will be caught in this escalator game of going up and down? i doubt the Pappys?

[pianist]

uncle nsengkia, was trying hard to understand what u wrote...but dun quite understand
do u mean bto prices is now artificially suppressed for a while only?

Khaw got OK from the party bosses to stop using imputed land prices (at market price) from the new BTO pricing. For now.

Khaw has de-linked BTO prices from the resale market. In the past, the rapid rise in property was due to positive feedback loop between resale flats and BTO prices.

When resale flat prices went up, people who could have afforded to wait might have considered BTO but Mah Bow Tan up BTO prices based on imputed land cost pegged to resale flat transactions. So potential BTO buyers decide that might as well jump in and get it immediately from the resale market.

That resulted in resale and BTO flat prices mutually ratchet each other upwards and allowed HDB owners to jump onto the private property bandwagon by upgrading (the price gap between HDB resale and private property narrowed substantially) so the whole property market ratcheted upwards.

Sort of like an escalator that effortlessly carries you to financial freedom but if, and only if, you are already, or can get, on it (what the previous PM called "asset enhancement").

But for those who were not on it, then it only became more difficult to get on the magical escalator since starting wages in Singapore stagnanted due to globalisation and technology.

Now Khaw intends to keep BTO affordable so the escalator has stopped.

Even worse, I personally believe that it may actually start going into reverse. HDB upgraders who buy EC HAVE to sell their existing HDB flats within 6 months of the TOP of the EC. They cannot sell now as they need a place to stay while the EC is being built. And when they are ready to sell, so will a lot of other people.

If the Government does not reverse the minimum 3 year PR rule then I am afraid HDB resale prices will crash when the EC pipeline comes on stream and the whole escalator goes into reverse.

hdb resale prices crash? that is really scary scenario..but possible..
when is this within 6mths of top of ec happen most glaringly?

[countonme]

I wonder wat is on the policy makers' mind about this completion of pvt/ECs. I am sure they know about it. Personally, i hope they wont resort to importing FT/PRs using this excess units as excuse.

uncle nsengkia, was trying hard to understand what u wrote...but dun quite understand
do u mean bto prices is now artificially suppressed for a while only?

Khaw got OK from the party bosses to stop using imputed land prices (at market price) from the new BTO pricing. For now.

Khaw has de-linked BTO prices from the resale market. In the past, the rapid rise in property was due to positive feedback loop between resale flats and BTO prices.

When resale flat prices went up, people who could have afforded to wait might have considered BTO but Mah Bow Tan up BTO prices based on imputed land cost pegged to resale flat transactions. So potential BTO buyers decide that might as well jump in and get it immediately from the resale market.

That resulted in resale and BTO flat prices mutually ratchet each other upwards and allowed HDB owners to jump onto the private property bandwagon by upgrading (the price gap between HDB resale and private property narrowed substantially) so the whole property market ratcheted upwards.

Sort of like an escalator that effortlessly carries you to financial freedom but if, and only if, you are already, or can get, on it (what the previous PM called "asset enhancement").

But for those who were not on it, then it only became more difficult to get on the magical escalator since starting wages in Singapore stagnanted due to globalisation and technology.

Now Khaw intends to keep BTO affordable so the escalator has stopped.

Even worse, I personally believe that it may actually start going into reverse. HDB upgraders who buy EC HAVE to sell their existing HDB flats within 6 months of the TOP of the EC. They cannot sell now as they need a place to stay while the EC is being built. And when they are ready to sell, so will a lot of other people.

If the Government does not reverse the minimum 3 year PR rule then I am afraid HDB resale prices will crash when the EC pipeline comes on stream and the whole escalator goes into reverse.

hdb resale prices crash? that is really scary scenario..but possible..
when is this within 6mths of top of ec happen most glaringly?

[opmi]

Btw the imputed land prices in BTO pricing is from Hdb resale and private transactions and GLS sites sale prices. Chief valuer will adjust.

[etan]

These are the EC projects, need to research further on the no. of units per project, will probably give a rough gauge of the total no. of ECs coming up:

ESPARINA RESIDENCES
99 YRS FROM 2010 UNCOMPLETED
THE CANOPY
99 YRS FROM 2010 UNCOMPLETED
PRIVE
99 YRS FROM 2010 UNCOMPLETED
AUSTVILLE RESIDENCES
99 YRS FROM 2010 UNCOMPLETED
BELYSA
99 YRS FROM 2011 UNCOMPLETED
RIVERPARC RESIDENCE
99 YRS FROM 2010 UNCOMPLETED
BLOSSOM RESIDENCES
99 YRS FROM 2011 UNCOMPLETED
ARC AT TAMPINES
99 YRS FROM 2011 UNCOMPLETED
THE TAMPINES TRILLIANT
99 YRS FROM 2011 UNCOMPLETED
THE RAINFOREST
99 YRS FROM 2011 UNCOMPLETED
WATERBAY
99 YRS FROM 2012 UNCOMPLETED
TWIN WATERFALLS
99 YRS FROM 2011 UNCOMPLETED
1 CANBERRA
99 YRS FROM 2012 UNCOMPLETED
WATERCOLOURS
99 YRS FROM 2012 UNCOMPLETED
HERON BAY
99 YRS FROM 2012 UNCOMPLETED
THE TOPIARY
99 YRS FROM 2012 UNCOMPLETED
CITYLIFE@TAMPINES
99 YRS FROM 2012 UNCOMPLETED
TWIN FOUNTAINS
99 YRS FROM 2012 UNCOMPLETED
FORESTVILLE
99 YRS FROM 2012 UNCOMPLETED
LUSH ACRES
99 YRS FROM 2013 UNCOMPLETED
ECOPOLITAN
99 YRS FROM 2012 UNCOMPLETED
SEA HORIZON
99 YRS FROM 2013 UNCOMPLETED

Even worse, I personally believe that it may actually start going into reverse. HDB upgraders who buy EC HAVE to sell their existing HDB flats within 6 months of the TOP of the EC. They cannot sell now as they need a place to stay while the EC is being built. And when they are ready to sell, so will a lot of other people.

[pianist]

I wonder wat is on the policy makers' mind about this completion of pvt/ECs. I am sure they know about it. Personally, i hope they wont resort to importing FT/PRs using this excess units as excuse.

uncle nsengkia, was trying hard to understand what u wrote...but dun quite understand
do u mean bto prices is now artificially suppressed for a while only?

Khaw got OK from the party bosses to stop using imputed land prices (at market price) from the new BTO pricing. For now.

Khaw has de-linked BTO prices from the resale market. In the past, the rapid rise in property was due to positive feedback loop between resale flats and BTO prices.

When resale flat prices went up, people who could have afforded to wait might have considered BTO but Mah Bow Tan up BTO prices based on imputed land cost pegged to resale flat transactions. So potential BTO buyers decide that might as well jump in and get it immediately from the resale market.

That resulted in resale and BTO flat prices mutually ratchet each other upwards and allowed HDB owners to jump onto the private property bandwagon by upgrading (the price gap between HDB resale and private property narrowed substantially) so the whole property market ratcheted upwards.

Sort of like an escalator that effortlessly carries you to financial freedom but if, and only if, you are already, or can get, on it (what the previous PM called "asset enhancement").

But for those who were not on it, then it only became more difficult to get on the magical escalator since starting wages in Singapore stagnanted due to globalisation and technology.

Now Khaw intends to keep BTO affordable so the escalator has stopped.

Even worse, I personally believe that it may actually start going into reverse. HDB upgraders who buy EC HAVE to sell their existing HDB flats within 6 months of the TOP of the EC. They cannot sell now as they need a place to stay while the EC is being built. And when they are ready to sell, so will a lot of other people.

If the Government does not reverse the minimum 3 year PR rule then I am afraid HDB resale prices will crash when the EC pipeline comes on stream and the whole escalator goes into reverse.

hdb resale prices crash? that is really scary scenario..but possible..
when is this within 6mths of top of ec happen most glaringly?

dun think they will have the foresight like what we r seeing here in this forum

[brattzz]

HDB can just change the sell period 6 months to 12 months of the TOP of EC.
It's just paper management only.

[pianist]

SINGAPORE: The National Development Ministry is looking at imposing a cap on the percentage of flats in HDB blocks that can be sublet to foreigners.


This is to maintain the Singaporean character of the heartlands.


National Development Minister Khaw Boon Wan revealed this in his blog entry on Friday.


Mr Khaw said in deciding the cap, he is mindful of the need to balance the impact on those who rely on subletting for additional income, especially the elderly.


He added that HDB has completed its analysis on the current subletting situation.


Today, less than 4 percent of HDB flats are sublet to foreigners, excluding Malaysians.


However, the proportion could go up to 9 percent in some areas, or even 18 percent in some blocks.


One analyst Channel NewsAsia spoke to said if the cap is imposed, those who own flats in areas popular with foreigners may have a more difficult time renting out their flats and may try to circumvent the rules.


Colin Tan, director of research and consultancy at Suntec Real Estate Consultants, said: "Once the quota is reached, the owner, even if he wants to lower the rent, may not find tenants who qualify.


"Because rental income is so good, there will be people who try to circumvent the rules. For example, they might get a Singaporean tenant as a master tenant, and he sublets to other foreigners."


Mr Tan added MND should consider implementing the policy in private estates, to prevent foreign enclaves in those areas as well.

[opmi]

Private estates too? Hello, private property are owned.

HDB flats are leased, landlord has the final say.

Circumvent rules? ALWAYS be people breaking rules. Now already got people still sublet whole flat before MOP.

[tonylim]

''''Today, less than 4 percent of HDB flats are sublet to foreigners, excluding Malaysians.''''
Why Malaysians are not included ?