Singapore’s new cooling measures aimed at slowing down HDB resale market: Analyst
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- čas přidán 11. 09. 2024
- The Singapore government on Monday (Aug 19) introduced new measures to cool its public housing resale market and provide more support for first-time home buyers. It has lowered the loan-to-value limit for Housing and Development Board loans by 5 percentage points, as well as increased the enhanced CPF Housing Grant quantum for lower- to middle-income first-time home buyers. CNA’s Elizabeth Neo speaks to Sing Tien Foo, Provost's Chair Professor at the Department of Real Estate at the National University of Singapore's Business School, to find out his thoughts on these announcements.
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Instead of kept curbing buyers, sellers should be curbed instead. Otherwise, no matter how much grants you give to buyers, all the extra grants will make the sellers happier to ask for even higher prices.
should be curb new citizens and PRs from buying btos.. they are flooding the market with new money
Why should sellers be curbed. Anyone buying anything be it property or others, the buyers, are the ppl who already know what they want, what they are paying. Without buyers, the sellers can sell at any price there will also be no takers and so the prices of such property would naturally fall.
Just like cars. Without buyers, will you have agents and buyers themselves chasing until the COE goes so high?
Of course ,no. 😆😆😆
kengleetan63
Agreed. Anyway, the government is only trying to stabilize prices.. meaning prices will still rise but at slower pace. Same as COE.
@@kengleetan63 because HDB is gov subsidized housing meant for Singaporeans' housing need and not for money making. Singaporean buyers need homes to stay and also to start their family, unlike cars that are only a luxury good. If every seller sell high, then these buyers will have living problem.
This is not cooling, rather it is heating up the HDB resales prices, based on past history.
@musico3415
I think PAP did not say these are cooling measures. Increasing supply to meet demand will only stabilize the market.
you failed economics
I get the same feeling this "cooling measure" is not going to suppress surging prices. At best a band-aid.
Should have a policy on PR who bought hdb and made huge profit and leave Singapore. A policy to make them pay a levy on their profits before they leave Singapore.
how u determine when they "leave Singapore" they can always say im coming back later, holiday only. then how?
@@qherwhw4-wn6po Make sure it's a PR who has a long history in Singapore, and then when they sell a HDB, keep a percentage of the sale price for a year unless they want to buy another flat to live in then they can take it out asap.
@@milesedgeworth132I know PRs who been here for 30+ years and refuse to change citizenship and explicitly stated they will go back to their home country when they retire. This number of PRs is quite big, mostly Malaysians, hard to account for such people. Only other way is to ban PRs buying resale HDB all together
katherinephang8636
PAP should impose a tax of 50% on the profits. They can remain in Singapore or return to their original country
This is really unhelpful for the sandwiched class who have exceeded the cap for btos but not enough savings to get a resale flat and cant afford a private property. And now have to struggle to get a loan because the LTV just got reduced 😖 and the gov is wondering why people in their late 20s early 30s are delaying marriage and having children
can’t please everyone i guess
Sucks
How do lower class jump to upper class without going through middle
@@stonkytong it’s not that these people are “everyone” but these people are pivotal to nation building. These are the people who are working insanely hard to break their families out of the lower income bracket but don’t have the privilege to jump to the high income bracket. These are the people who took their time to find good relationships not “marry to BTO” relationships that is driving up the divorce rates. These are the people who genuinely want to settle down, build their families on a firmer financial foundation. They contribute to the economy and they are of age to have kids. If these people were a small minority of inconsequential people then sure, but this is a group too numerous and too important to ignore
@@stonkytong agreed the qn is which socio group is on the losing end. and traditionally the sandwiched middle class is the one that gets hated on.
In context, 5% is ONLY 50k of a million to a downgraders who are flushed with cash but for 1st time buyers, it is a whole year of salary or a whole year of savings for a couple.
$1,000,000 HDB Resale Should N0T receive CPF Housing Grant + N0 Enhanced CPF Housing Grant + N0 Proximity Housing Grant
Good idea 👍. HDB new rule - valuation above a certain % of original price won't enjoy any grants = end of ridiculous millon $ HDB
likely those who are purchasing million dollar flats would not require the grants in the first place
There are ways to curb prices from going up. Essentially, sellers are motivated to sell due to significant profits to tap on. Again, on the narrative that this is a public housing, it has to be regulated tightly
To mitigate this and encourage owner occupation for long term, following options can be considered:
1) Any grants must be returned with direct deduction from net sales proceeds with accrued interest rates
2) Unless one sells after 55/60 years old to aim for better retirement lifestyle to downside or right size, grants payable at 50%
3) Partial net sales proceeds must be channel towards CPF RA.
E.g
Sales proceed of
$100k (30% goes to RA)
$200k (40% goes to RA)
$300k and above (50-60% to RA)
It’s a win win as this also ensure individuals are assured of retirement fund
JusticeS790
Not sure how your recommendations will work.
Best is limit to purchase only one HDB flat till you are 55 (or 60). And HDB to ramp up supply of HDB flats
@@steventay5834 Similar to the current system available prior to completion on the deduction of accrued interest and other charges, trust that this can be curated and mirrored since we have a unique identifier of a Singpass to determine grants received, cpf access and many more.
Limit to 1 property till certain age may not work as circumstances changes as some may decide to have more children and may need a bigger space. May seemed to restrictive in such way. But fine tuning on incentives such as grants may removed the perception that one can always strike Toto on their property. Thus, removing the urgency to just sell for the sake of profiting. Probably the prime/plus scheme were designed to mitigate this but the earliest outcome may only be out in 15 years time to assess the viability of such scheme.
Yes, on your supply suggestions fully agree and based on recent rally speech, by 2026, supply should be back to normal and we should expect normalised situation.
How come nobody talks about why resale went up in the first place - Is it supply or demand ? The response from the Prof is not very clear unfortunately. The private housing has lower volume available at affordable prices and people are downsizing. Everybody deserves a HDB but HDB shouldn't transact at $1M for a property at a mature estate. This problem is tricky because you need to solve the margins without destroying the middle class.
@@juancarlosvaleron4850 if a condo next to these resale houses are going for 3mil, then a 1mil dollars HDB with a bigger floor area makes perfect sense. Willing buyer willing seller. And most of them are Singaporeans. It’s just better value for money.
juancarlosvaleron4850
I don't understand what you mean by "people are down sizing"? And what you mean about "margin". Please enlighten us.
wow make buyers suffer and not the sellers.. who the hell comes up with this
Problem: Houses are unaffordable!
Solution: Let's make it more unaffordable so less people can buy, then more people can buy. 🤯💩
"We intend to keep the value of these homes up, it will never go down. Because it will be renewed, the surroundings will improve, and as Singapore prospers, GDP goes up, the value of homes will go up."
Lee Kuan Yew
2013, at the launch of Tanjong Pagar's 5-year Master Plan
Public housing is to satisfying a basic need for Singaporean. The thought of using it to speculate for financial gain should be discouraged. Non citizens should be taxed heavily when they decide to sell these flats and leave the country.
The only way to cool down the HDB resale market is by curbing the number of New citizens and PRs. Everything else is just conversation.
the decrease in LTV and increase in grants apparently will lead to more grants money borrowed from CPF. People owe more to CPF than before. This move benefits CPF a lot.
I don’t think these measures affect private property downgraders as they usually have more than enough to pay for the 25% down payment. It however affects young buyers as their loan amount is affected and they need more cash upfront. If they were able to afford a 500k house previously, they will now need to fork out an additional 5% to buy the same priced house.
Downgraders can’t buy…must wait 15months. By then prices change again so impact on them is moot. This policy…lol..quality no change.
Can’t afford HDB resale, can’t buy EC due to household income cap, cannot afford private.
If not fussy, non mature estates offer good value for money HDB units, eg woodlands, sembawang etc
Future Singapore cannot afford HDB prices anymore. It is supposed to be for public housing. If i am young I see no future.
I feel the most effective way is to stop population growth, and limit to only one purchase of HDB of any size, but can buy 2nd flat after age 60 and only 3-room flat.
you mean lower foreign population and new citizens. The real citizen TFR is all time low
Many pte owners need to liquidate their old pte properties ,move to HDB to realise the cash.
PRs ,new citizens are coming in to cheong the resale HDB.
Now cost of living too high. No cash , CPF withheld even got big pte property also no use.
Well Done SG GOV !!!❤❤❤
So…income eligible, but want 5% more in cash or Cpf. This is curbing? Increase paper work also can curb. Please leh. Private so expensive so all shift to HDB. Why is private so expensive? Who controls demand and supply? Who increase competition for true Singaporeans?
The solution is so simple this expensive government has no idea how to deal with this situation? Talent government or overpaid minister….
Reality check,
Grant ⬆️
LTV⬇️
Price ⬆️
Stamp duty⬆️
COV⬆️
GST⬆️
Reliability and Durability of materials⬇️
Size of house⬇️
Aircon ledge ⬆️
Kitchen⬇️
Government showing menace and zero sense at the same time.
Time to introduce Mortgage Servicing Ratio for Private homes too.
Late 20s - Early 30s couples GG liao lor. LTV down. This gov starting to implement broad stroke policies. They giving chance to opposition to win.
Many years ago, then Minister Lawrence Wong finally spoke the unvarnished truth about 99-year leases - that flats would be returned to the HDB and only a small percentage of flats would undergo the Selective En-Bloc Redevelopment Scheme (SERS).
Public housing is a social good and should be used to meet the housing needs of the population, not profit-making for the government or citizens.
Hdb is making a loss without taking subsidies into account.
Gov or rather taxpayers are paying more for new homeowners to be subsidized cheap flats for them to earn after MOP
What can i expect this ""expert"" to say on state media? 1M65 says the measure is mickey mouse. He not state media
Actually....actually actually.....😢
As a result, prices of flats will be substantially lower, ranging from $70,000 for 2-room flats to $240,000 for 5-room flats or even less. SDP Housing Solution
“The government hasn’t been entirely consistent in their messaging with regards to housing policy, which created the uncertainty and anxiety.” Singaporeans felt there was a reneging of what they perceived as an asset appreciation promise by the PAP.
Lower the LTV a bit every few years, increase the enhance CPF grant a bit every few years, seems pretty ez to be a policy maker these days
No difference.
Obviously the new scheme OCT BTO launch will see new highs for BTO pricing esp those column free or sea facing full height glass ones.
With higher pricing surely need higher grants! Everything as usual just keep going higher UP UP UP.
As for resale pricing, it will not lower due to lower LTV but rather because if you can't afford or can't borrow enough and don't buy others are rich and can and will buy, and the seller will ask even HIGHER price coz now the grants also HIGHER so in the end the pricing will just keep going UP UP UP.
At the rate this is going, eventually CPF and/or loan only can use for 50% of the value (LTV) and grants will be as high as 500K for every new 1mil BTO 4-rm flat. The only way to make every new BTO 'affordable' near you parents in every spot in Singapore regardless prime plus standard.
If the price is high, its due to under-supply and over demand. to reduce the price , either demand should be dampended via less money from buyers or increase in supply. Giving buyers more money increases demand if supply is not increased. Huh, so simple still dont know.
Singaporean Dream is to 0wn a Condominium 0r a Private Apartment in Singapore = Singaporean Dream 0r Singapore Dream
BTO approaching $1m mark is the next hottest topic
Quite difficult to regulate HDB prices when they are the cheapest and bigger in comparison to others...
Perhaps the government should start building bigger flats? 1500 sqft and above
CPF Housing Grant + Enhanced CPF Housing Grant + Proximity Housing Grant + EHG @ Added Rocket Fuel @ Rocket Prices @ ↑↑↑
Might as well just lower to LTV 50% rather than decreasing bit by bit. One time pain for good
This boost the resale market. Lower loan % limit make bank lower risk, even more willing to loan. The bank can offer bridging loan. And resale buyers are cash rich. 5% lower doesn't make much difference.
$1m dollar hdb will be common 5-10 years from now. Is your 1m worth the money? lol
Are the ones causing the market prices to shoot up taking HDB loans and would be affected by lowered HDB loan-to-value limits?
MORE MORE GRANTS👍👍👍👍👍
The lowered housing expenditure will free up capital for homeowners to save for their retirement.
SDP NOM scheme will price new HDB flats to include administrative, material, labour costs only but without land “cost” that is currently the practice.
Everyone knows who are the real culprits, greedy landlords and agencies. But the only solution came up is "You can have more loans?" for first time buyers?
Invalid conclusion, it is caused by demand curve
less loan la, do u even English
price is a demand supply problem.
Moot when these buyers are new citizens with a bag of cash to spend!
its already slowed down now.. still wanna to go slower?? let it flow, so that people will move onto a bigger unit and the smaller units will come to the market and let those not much budget to get them. Also not all people can wait for 5 years and keep trying kind of waiting for the first flat... don't kill the market for needs. Don't blame people if the marriage and child birth is hindered.
over night I m a MILLIONAIRE..sold 5 room hdb 4 $1,546,000.00...help by govt...retire n migrate 2 ozzeland n live in paradise... all 'cse of govt. subsidies....
A more responsible narrative would have informed the public that capital gains would be possible only in the short to medium term. On 99 year Lease
Oh my ears! If you think the word 'like' is overused, you have a NUS professor peppering every sentence with 'actually'. 😵💫
It should have been made clear to all that quite simply, public housing on a 99-year lease cannot be expected to appreciate endlessly.
No use only cut ltv by 5%. Should cut 10% max 70% loan only. It will still rise.
Wow! Opposition parties certainly have a lot to learn from the PAP govt which is ranked the most effective in the world.❤❤
@anziar3038
PAP also makes some mistakes lah.
COE prices are too high. Should control based on usage
@@steventay5834 SG's National Debt @ US$885,200,000,000 @ 31 March 2024 Due @ 31 March 2025 @ 3.50%
@anziar3038 Every Government Around The World Will Do The Same So Long As The Government Has N0 0pposition
Whoever Party 0r Parties @ Power Will Do The Same - Irrelevant - Same-Same = Any Turd 0r All Turds @ Pungent
Gov should make private owners give up their HDB. HDB was introduced to ensure sg citizens have a roof over their heads, not a profit making tool
HDB must impose tax on those who make a lot from sales of flat, the money can use to subsidise new flat
This further reduces the financial burden of home-buyers many of whom currently service their loans on a 30-year basis. Under the SDP Plan
There was a highly negative public reaction to this clarification. One academic at the Lee Kuan Yew School of Public Policy put it this way
Haha, what kind of cooling measure is that?
5% is nothing, just a PR attempt before election. BTO is linked to RE-SALE price. BTO is a source of revenue for PAP. What do you think would happen?
REAL SOLUTION :
-Implement capital gains tax on HDB sold above 500k & pass the profits to low income buyers.
-Build BTOs in 2 years (they are using pre-fab no excuses, even CBD buildings are faster)
-Lower the salary cap! People earning more than 10k should not be living in BTOs
-Reserve 1st & 2nd floors in BTOs for lower income, since few wants it anyways.
Cooling measures doesn't solve the root cause of the problem
No need to have stupid cooling measures. Just build enough houses.
Ya means some need live in the sea
Almost always after the fact measures ... damn sian lah
Hahaha , everything rises up even hdb may make a decision too.. RENT ..HDB may open their own agency seen all those material and workers went up the prices and 1% gst coming soon .Well done, hdb sell more then 1 million..that easy money ..HDB cooling measure work once in 2013 but selling high price in years. There is nothing much can help. To us buying high price selling higher., better think twice before u sell the house
Cooling measures? 😂. Wrong news I’m looking for. Maybe I should type ‘HDB affordable housing’.
The percentile or tax based on profit percent can be introduced? I understand they went by data that majority of purchases might be HDB loans, but why not tax on gains for property alone? Just my 2 cents.
Talking grant.Must paid back.
“As the name implies, however, flats bought under this scheme will not be allowed to be re-sold in the open market,” co-presenter Mr Bryan Lim SDP
Cooling measures is it? Soon singaporean will be like some 1st world country .. with more citizen sleeping in streets, void deck and parks...😢
Stop giving grants to Resale flats especially to buyers who previously owned private property -- Problem solved.
Rich ppls are always a spoilt brats.
Oh nooooooooooooo
5% will not affect millionaires but it is a lot for young first time home buyers, delay the marriage age further.
5% increase is not good enough to dampen the market. At least 10% increase is required. 5% increase will fan the market even more by giving sellers more confidence to increase price. A small increase shows govt do not have the courage to change the pricing landscape.
5% difference in LTV? Hahahaha sup sup suey
Down grade they are
Not affect
Ayo might as will lower to 0%.
The rationale for NOM flats, Mr Bryan Lim SDP pointed out, is that the government should not profit from Singaporeans when it comes to public housing and Singaporeans should not use it as a means of investment for capital gain.
IMPORTANT TO MONITOR. IMPORTANT TO MONITOR. AS MENTIONED JUST NOW, IMPORTANT TO MONITOR.....zzzzzzzzzzzzzzz
HDB BTO SALESMAN🤣🤣🤣🤣🤣
We can consider a capital gains tax? Thinking out of the box, instead of building public housing 'Upwards', we should build them 'Downwards'. The lower your unit, the higher the value. Cuz it's cooler 😂 In future, the MRT track is just right next to your unit. So convenient. Fully sheltered. As for the SGD1M$ view? Use AI to generate the skyline you desire. Don't laugh, it just might become a reality.
@leslielim2360
50% capital gain tax!! Then no more future GST increases. And can build more roads and allow more cars on the road
HELLO AS LONG AS GOV DESPERATE UNLIMITED IMPORTING OF FOREIGNERS POLICY CONTINUE SINGAPORE PROPERTY PRICES WILL CONTINUE TO GO UP AND UP CROSS HONG KONG PRICE. DON’T WASTE TIME TALKING AND TALKING BY 2030 MOST LIKELY SINGAPORE POPULATION SHOULD CROSS 8 MILLION AND SOON YOU MIGHT SEE LANDLORD RENTING OUT BED SPACES LIKE HONG KONG.🙈🙈🙈
PAP WAYANG ! 😅
Singaporeans who purchase these flats can expect to take 9 to 15 years to pay off their housing loans (based on an interest rate of 3 percent) using no more than 20 percent of their gross income. SDP HOUSING Solution
❤❤❤🫶🫶🫶👏👏👏👍👍👍👍
Owners wishing to dispose of their NOM flats will have to sell them back to the HDB, he added.
Then i and many others as homeowners would not want our hdb prices to fall, we want it to go higher. So we would not vote SDP
SDP is just stupid
Too high. But unless you wanna destroy the finance and economic chain... ... to provide people like me (hence EVERYONE or family) a proper home, a proper stake hence a proper governance in a TINY land... ... This is not gonna be enough.
But I am gonna leave this to Lawrence. Time is running out... ...
Anyway, lower income group SHOULD NOT be taking up resale flats... ... isn't it obvious why?