1. Private property owners who buy resale HDB flats must now dispose of their private property within six months of purchase. This is to prevent private property owners from buying HDB resale flats for investment purposes.
2. All buyers of HDB flats now have to meet 5 year minimum occupation period (MOP) before reselling the flat or before they can invest in private property.
THE red hot public housing market is set to cool significantly in months ahead after new measures on Monday effectively shut out all private property owners from the market and prompted industry watchers to predict a moderation of home prices.
The Housing Board (HDB) said private property owners who buy resale HDB flats from Monday onwards must dispose of their private property within six months of purchase of the HDB flat – a rule that did not exist before. This effectively bans private property owners from buying HDB resale flats for investment purposes.
Similarly, buyers of flats who did not receive any subsidies may not buy a private property during the minimum occupation period (MOP) of their flat. Such buyers were previously allowed to invest in private property during the MOP, which is the time required of a buyer to hold onto his flat before re-selling. In addition, the MOP – which was three years – has now been raised to five years with effect from Monday.
National Development Minister Mah Bow Tan said at a briefing that the new rules were meant to ‘ensure equitable treatment’ of all flat owners during the MOP. He said that these measures will dampen demand, and combined with an increase in supply, ‘hopefully the market will slow down’, he added.
The measures came a day after Prime Minister Lee Hsien Loong said in his National Day Rally speech that the Government will move to cool the market to ensure housing will remain affordable to Singaporeans. HDB resale flat prices had risen 4.1 per cent in the second quarter of this year, smashing records for the eighth straight quarter, prompting ground concerns that prices were beyond the reach of Singaporeans.
Mr Mah emphasised on Monday the moves were to ‘pre-empt the over-heating of the market’, adding that the Government will ‘take whatever steps necessary to stabilise the market’. ‘Obviously the intention is not to crash the market, but at the same time, if we don’t rein in the market, and the bubble bursts then it will be even worst for everyone concerned, the economy as well as for individual buyers,’ said Mr Mah.
(via ST Online)
3 thoughts on “HDB market set to cool”
Hi Justina, very interesting and informative website indeed, kudos on this! Could you please confirm my understanding:
1. I am below 35 years old, so I am unable to buy a HDB unless it is with one of my parents (no siblings).
2. The current private property I am staying in is under the name of my father and is intended to be left to me in his will.
3. Does this mean that I can still buy a HDB with my mother at the moment, but in the event that I inherit the private property, I have to dispose the HDB within 6 months potentially at an unfavourable price? Or can I take my name out of the HDB and have it remain in my mother’s name only (I will be servicing the loan though).
4. If the above does not work, then where does that leave me because I am under 35, no likelihood of getting married soon, with possibility of inheriting a private property but would like to have some form of property investment in the meantime? My current financial situation will not allow me to finance any private condos either.
Any feedback would be most appreciated! Thanks in advance!
If you get a HDB flat with your mum, should you inherit the private property, yes by law you would have to sell it within 6 months. However, if prices are unfavourable at that point in time, I believe you can appeal for an extension.
You can’t remove your name from the HDB flat and still service the loan. Only owners of a HDB flat can service a loan.
Unfortunately, there aren’t any other options for someone in your case.
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