~by: Leong Sze Hian~

Image from ChannelNewsAsia.com

I refer to the articles “HDB resale prices up, private property prices moderate” (Asiaone, Oct 3) and  “First-time BTO applicants stand good chance” (Channel NewsAsia, Oct 3).

The Urban Redevelopment Authority (URA) flash estimates released on 3 October, show that HDB resale and private residential property prices roses by 3.8 and 1.3 per cent, respectively, in the last quarter.

Demand from foreigners?

The prices of HDB flats are primarily driven by demand and supply.

On the demand side, the population increased from 5.08 to 5.18 million last year.

The number of foreigners and permanent residents (PRs) increased by 80,400 last year, compared to 59,100 the previous year. If most of the increase in foreigners is from higher income or more affluent foreigners, the demand pressures may mainly be on the private property market. However, if the bulk of foreigners are lower-income – they may have to rely on renting rooms or entire HDB flats, or buying resale flats if they qualify to buy as PRs.

When foreigners become PRs or citizens, they too may add to demand pressures in the HDB resale market.

Longer MOP?

Since the Minimum Occupation Period (MOP) for resale flats was changed from three to five years, the demand pressures on the resale market may increase, as it would take about nine years (four years to build plus five years MOP) for a Build-to-order (BTO) flat to be available in the resale market for sale or rental of the entire flat.

Who can’t buy BTO?

The following are not eligible to apply for BTO flats:-

  • PRs
  • Singaporeans who have owned their existing HDB flat for less than five years
  • private property and Executive Condo (EC) owners who have sold their property less than 30 months ago
  • those who have purchased two HDB or DBSS/EC flats with subsidies or grants
  • Singaporeans who cannot form a family nucleus, such as singles, divorcees, etc
  • Singaporeans who do not meet the various income ceilings – $10,000 maximum, $5,000 for 3-room, $2,000 for 2-room
  • Singaporeans who cannot afford to pay the resale levy of up to $55,000 on their previous flat
  • Divorcees who purchased a flat with subsidy or grant will have to wait for five years after their divorce is made absolute

In view of the above, many Singaporeans may not qualify for BTO flats. Moreover, since 95 per cent are reserved for first-timers, even those who qualify for BTO flats but as second-timers, may find it very difficult to get one.

So, where do all the above who can’t apply or can’t get BTO flats go to? – resale flats?

COV disappeared?

When the National Development Minister stopped disclosing the median Cash-over-valuation (COV) statistics the previous quarter, saying that it was misleading, it may have spooked the market into asking for even higher prices.

After all, isn’t it logical to expect this to be the natural reaction when statistics become so high (COV) that they can’t be disclosed anymore?


Support TOC! Buy Leong Sze Hian’s book here!

Subscribe
Notify of
1 Comment
Newest
Oldest Most Voted
Inline Feedbacks
View all comments
You May Also Like

Police to investigate viral videos of alleged gambling activities at one of Malaysia’s quarantine centres

The police are probing into alleged gambling activities involving patients at the…

What happened to LKY's wholly Singaporean workforce target by 1991?

by Foong Swee Fong The New Year message by late Lee Kuan…

社论:怎能不避嫌

荣誉国务资政吴作栋再次成为众人焦点:他澄清自己的职务并没有领薪,在2011年卸下内阁职务后,仍热衷为民服务。 但是,他没有告诉民众的是,他目前仍是国家金融管理局的高级顾问,同时也是野村控股公司的顾问团之一。 同样,吴资政只告诉了我们事实的一半。他并没告诉我们,他还领着马林百列集选区议员约19万元的年薪,以及退休金。至于他身兼其他顾问职是否有津贴,我们不得而知。 这也带来一个根本问题:一些政治人物在卸下职务后,仍能够在其他机构乃至私企受委,更不用说那些纸将军们,在退役后就被安插在一些官联机构。从军旅走入官企,在踏入政坛,似乎成了不成文的规定。 吴资政或许不明白,为何人民会对部长薪资议题穷追猛打。 一些网民就已提出精辟见解:老百姓不关心你到底是不是千手观音、做得到的话,身兼百职都行。 但我们真正关注的,是“裸薪”的机制– 是否能公布朝野政治人物的每年薪资和总体所得(包括花红),以及在其他团体组织是否有担任任何职务,如有,薪资多少? 裸薪,不只是为了避免官员贪腐,才假借高薪养廉为借口,为自己许以高薪。裸薪也意味着透明化,政要是要公布财产的,人民公仆拿多少薪水、是否还有其他额外收入,一切坦荡荡,开诚布公给老百姓。 要么,就每年公布所有部长、议长、朝野议员的薪资财产,包括身兼顾问职是否领津贴,也要公布。由政府公布以正视听,这样就能省却民间无谓的猜测和流言,不需要老百姓整天乱猜。 遗憾的是,迄今为止,我们除了有一份2017年内阁成员薪资检讨报告,含有部长薪资计算方程式,对于政治职务者的薪资透明化,做到真正裸薪,仍还有很大距离。 要么,为避免民间指责政治人物私相授,透过政治委任来奖励特定人物,即使民间组织主动举荐,也应懂得避嫌,新加坡人才济济,不愁找不到人来接任这些民间或私企组织的职务。特别是提拔更多青年才俊。…

Singapore voted as one of the best places for dining and shopping by tourists

Do you know what tourists visiting Singapore enjoy doing in the Lion…