Singapore Watch

Summary of changes to Singapore Property Rules

Justina — Mon, 30 Aug 2010 13:15:27 +0000

A whole bunch of changes in rules were made during the National Day Rally 2010. It affects both HDB and private property owners.

Here is a summary of the changes:

1. If you buy a HDB resale flat now with no HDB loan or grant, you now have to occupy it for 5 years before you can sell your flat.

(Previously, you need only occupy the unit for 3 years.)

2. Households earning $8k-$10k now eligible for DBSS, and $30k CPF housing grant. Must take private bank loan.

3. 16,000 more new flats will be offered this year, and up to 22,000 next year, pending demand.

4. BTO flat owners can now collect their keys 6 months earlier. This means they need only wait 2.5 years for their new flat, versus the current 3 years.

5. 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.

(Previously, private property owners need not dispose of their private property, if their HDB is primary residence.)

6. 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.

(Previously, resale flat buyers who have not taken a HDB grant or HDB loan can buy private property for investment immediately, and sell their HDB flat after 3 years)

7. Seller’s Stamp Duty (SSD) is now applicable to any seller who sell their property within the 1st 3 years. (HDB sales are not affected due to MOP of 3 or 5 years).

(B) If property sold within:
- 1st year = Full SSD
- 2nd year = 2/3 SSD
- 3rd year = 1/3 SSD

8. If you have an outstanding housing loan and wish to buy a second property, a 30% downpayment is now needed (at least 10% cash, with balance payable with CPF). Those with no outstanding housing loan, 20% downpayment remains.

See complete news for more details:
- More help for first timers (link)
- HDB to raise income ceiling (link)
- HDB market set to cool (link)
- MND announces measures (link

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MND announces measures

Justina — Mon, 30 Aug 2010 13:00:10 +0000

1. Seller’s Stamp Duty (SSD) is now applicable to any seller who sell their property within the 1st 3 years. (HDB sales are not affected due to MOP of 3 or 5 years).

2. SSD is calculated as:
- 1% for first $180,000
- 2% for next $180,000
- 3% for balance.

3. If property sold within:
- 1st year = Full SSD
- 2nd year = 2/3 SSD
- 3rd year = 1/3 SSD

4. If you have an outstanding housing loan and wish to buy a second property, a 30% downpayment is now needed (at least 10% cash, with balance payable with CPF). Those with no outstanding housing loan, 20% downpayment remains.

THE Ministry of National Development (MND) announced on Monday several measures that would maintain a ’stable and sustainable’ property market, that will take place with immediate effect.

In a statement issued on Monday morning, MND said it would increase the holding period for the imposition of Seller’s Stamp Duty (SSD) on residential properties sold from one year to three years.

The SSD levied will vary according to the term of occupancy. If the property is sold in the first year of purchase, the full SSD will be levied – one per cent for the first $180,000 of the consideration, two per cent for the next $180,000, and three per cent for the balance. Two-thirds of the SSD will be levied for properties sold in the second year of occupancy and one-third for properties sold in the third year of occupancy.

The extended SSD will not affect HDB lessees as the required Minimum Occupation Period for HDB flats is at least 3 years.

For property buyers with outstanding housing loans, the Minimum Cash Payment has been increased from five per cent to ten per cent of the valuation limit. This measure is applied only to buyers of private residential properties, Executive Condominiums, HUDC flats and HDB flats (including those under the Design, Build and Sell Scheme) who are taking housing loans from MAS-regulated financial institutions who already have one or more outstanding housing loans.

For this group, the Loan-to-Value (LTV) limit has been lowered from 80 per cent to 70 per cent. Borrowers who do not have any outstanding housing loans will continue to have an LTV cap of 80 per cent. Loans granted by HDB for HDB flats (including DBSS flats) will still have an LTV cap of 90 per cent.

HDB loans are offered to eligible first-time flat buyers and second-timers who are right-sizing their flats to meet their housing needs. They are required to utilise all of their CPF Ordinary Account balance before HDB loans will be granted.

In their statement, the MND said lowering the LTV limit would ’send a clear signal’ to financial institutions to maintain credit standards, and also encourage greater financial prudence.

(via ST Online)

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HDB market set to cool

Justina — Mon, 30 Aug 2010 12:51:26 +0000

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)

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More help for first-timers

Justina — Mon, 30 Aug 2010 12:45:55 +0000

1. If you buy a HDB resale flat now with no HDB loan or grant, you now have to occupy it for 5 years before you can sell your flat. (Previously, you need only occupy the unit for 3 years.)

2. Households earning $8k-$10k now eligible for DBSS, and $30k CPF housing grant.”

3. 16,000 more new flats will be offered this year, and up to 22,000 next year, pending demand.

4. BTO flat owners can now collect their keys 6 months earlier. This means they need only wait 2.5 years for their new flat, versus the current 3 years.

OWNERS of non-subsidised Housing Board flats will have to occupy it for at least five years – up from three years – before they can sell the unit.

The HDB, which announced the new measure along with several others on Monday morning to help first-time home buyers, will also disallow concurrent ownership of both HDB flats and private residential properties within the minimum occupation period.

In yet another significant step, households earning between $8,000 and $10,000 can now buy flats built under the Design-Build-and-Sell Scheme (DBSS), as well as enjoy a $30,000 CPF housing grant.

Prime Minister Lee Hsien Loong announced some of the new measures to ensure that public housing will always remain within the reach of first-time Singaporean flat buyers in his National Day Rally speech on Sunday night.

To meet the housing needs of first-time flat applications, the HDB said on Monday it will substantially ramp up the supply of new flats, including DBSS units and Executive Condominiums.

It will offer more than 16,000 new flats this year. If demand remains strong, it is prepared to launch up to 22,000 new flats next year.

‘These numbers are substantial,’ said the HDB. The flats to be offered this year and next are more than the 35,400 flats in Toa Payoh town today.

It will also release more land for tender later this year to yield a further supply of 3,000 DBSS flats and 4,000 ECs.

The HDB will also release land sites for another 4,000 DBSS flats and 4,000 ECs, if demand is sustained.

‘This injection of 7,000 DBSS flats and 8,000 ECs over two years is also significant. In comparison, 4,000 DBSS flats and 10,000 ECs have been launched for public sale so far,’ added the HDB.

The new income ceiling cap for households with monthly income of between $8,000 and $10,000 – described as the ’sandwich class’ by PM Lee – will enable such applicants to buy an EC with a CPF Housing Grant of $30,000.

To widen their housing options, HDB will allow these households to buy new DBSS flats with the $30,000 CPF Housing Grant too for projects launched for sale after Monday.

But such buyers will not be eligible for HDB concessionary loan, just like the EC applicants. They will also to arrange their own financing.

To help households get their new flats faster, HDB has also streamlined the BTO processes to allow flat buyers collect keys to their new homes six months earlier.

Buyers of projects launched in mid-2011 onwards will generally need to wait for 2 1/2 years to collect the keys instead of the current three years.

(via ST Online)

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HDB to raise income ceiling

Justina — Mon, 30 Aug 2010 12:39:14 +0000

If your household income is between $8-10k, now you have the option to buy DBSS (Design-Build-and-Sell Scheme) and EC (Exeuctive Condominimums).

They will be eligible for $30k housing grant, but have to take up their own private bank loan.

THE Housing Board will raise the $8,000 income ceiling to $10,000 to give those caught in the ’sandwiched group’ more housing options.

While the $8,000 monthly income cap remains for those buying Built-To-Order (BTO) flats, the ceiling for those buying flats under Design-Build-and-Sell Scheme (DBSS) will be upped to $10,000. DBSS gives private developers flexibility in designing, building pricing the units.

Prime Minister Lee Hsien Loong, who announced this at the National Day Rally on Sunday night, said the higher income ceiling will allow those caught in the $8,000 to $10,000 group to qualify for both DBSS and executive condominiums.

‘I think this group is quite anxious about falling in between, as they are not eligible for HDB and they can’t afford private property.. And because people are marrying a little bit later, so their incomes tend to be a little bit higher, so they worry that they will get promoted before they get settled. So we will do more to help them own their homes,’ he said.

Buyers of a DBSS will enjoy concessions given to those buying an executive condominium. They will be eligible for a housing grant and can arrange their own financing. While not quite doing away with the $8,000 ceiling cap, the new move, which many flat buyers have long clamoured for, will open up thousands of mid-priced units to the sandwich group.

A typical four-room BTO flat costs $300,000, a DBSS flat around $500,000 and an executive condominium around $700,000.

PM Lee also announced that the government will move to cool the private property market, but did not give details. ‘Otherwise you will remember nothing else about my speech,’ he said, to laughter from the audience at the University Cultural Centre.

The Ministry of National Development will announce details of the changes on Monday morning.

On public housing, PM Lee said the HDB will build 22,000 more BTO units next year. ‘So if you miss one BTO, don’t worry, the next one is coming… There are 22,000 new flats coming along and we don’t have 22,000 new couples getting married in Singapore every year,’ he said.

He added that the HDB will also speed up construction of flats and cut the waiting time, which averages three years now. He also assured flat buyers that HDB flats would be kept within reach of Singaporeans. The affordability of housing has been a hot-button topic this year, with many voicing concern over the surge in property prices.

PM Lee acknowledged that the influx of foreigners has impacted on housing demand, but he added that it was not the only factor. There were broader economic forces at work, he said.

(via ST Online)

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How to get discounted tickets to the Singapore Flyer

Justina — Sat, 26 Jun 2010 02:51:32 +0000

I’ve never been on the Singapore Flyer cause personally I find it too pricey for a 30 minute ride, and until recently, half of your view was an uncompleted Casino construction site. It costs $29.50/adult and $20.65/child.

Recently, I was on the Passion website, and I saw that members can get tickets for almost half off, by submitting a booking form at least 7 days prior to getting on the Flyer.

As I’ve relatives visiting, I thought I’ll give in this once, and go on board the Flyer with them. So I applied for a Passion Card too ($12).

6 adults + 1 kids = $100.

$197.65 (original price) – $100 – $12 = $85.65 in savings.

Plus one of the adults get to borrow my Passion Card for transport, as it doubles up as an Ez-link card.

I just received a confirmation email for me to collect my tickets, anytime from now till 25th Sept. Good deal I must say.

*Do note the terms and conditions, amongst which “Flight date is not valid for Public Holidays (PH) & eve of PH, F1 period and other blocked out dates as stipulated by Singapore Flyer Pte Ltd.”

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3 changes to HDB Policies

Justina — Sun, 04 Apr 2010 05:25:50 +0000

Change #1

Minimum Occupation Period (MOP) has been revised. For all who buy a resale flat from 5 March 2010, the new MOP is now 3 years (formerly 1 or 2.5years), regardless of loan taken.

MOP of 5 years remains for owners of new flats, or those taking up HDB grant.

Flat owners who own their flats prior to 5 March 2010 are NOT affected by the changes.

Reinforcing Owner-Occupation Among HDB Flat Owners
Date issued : 05 Mar 2010

The Minister for National Development, Mr Mah Bow Tan, announced in Parliament today that HDB will be raising the Minimum Occupation Period (MOP) for the resale of non-subsidised HDB flats from 1 and 2.5 years to 3 years. The objective is to reinforce owner-occupation.

HDB flats are primarily meant to provide owners with a roof over their heads. They are not meant for speculation or short-term profit. Hence, lessees are required to stay in their flat for a minimum period before they may sell their flat in the open market. Currently, lessees of subsidized HDB flats, i.e. HDB flats bought directly from HDB, DBSS flats bought from private developers or resale flats bought with CPF housing grant, are subject to an MOP of 5 years. On the other hand, lessees of non-subsidised HDB flats i.e. resale flats bought without CPF Housing Grant, are subject to the following MOP:

a) Those who take an HDB concessionary loan – 2.5 years

b) Those who take a bank loan or do not take a loan – 1 year

To reinforce the principle of owner-occupation, the MOP for resale of non-subsidised flats will be increased to 3 years, regardless of whether the buyer takes an HDB loan, a bank loan or no loan at all. With the extension of MOP, the demand in the resale market will also more accurately reflect the interest from buyers who are buying flats for occupation.

The revised MOP policy will apply to resale transactions where applications are received by HDB from 5 Mar 2010 onwards. Existing lessees of non-subsidised flats will not be affected, i.e. the original MOP of 2.5 or 1 year continues to apply to them. There are also no changes to the MOP for subletting of whole flats.

(via HDB website)

———-

Change #2

In the past, HDB upgraders were not allowed to take out a 2nd HDB concessionary loan. Now, should a HDB owner need to downgrade, they can take up a 2nd HDB loan, with conditions:

- Full CPF proceeds from sale of current flat must pay for downgraded flat.
- Half the cash proceeds will go towards paying for downgraded flat.
- Remaining amount would make up 2nd HDB concessionary loan.
- Should cash proceeds be $25k or less, flat buyers get to keep it all.

Normal HDB loan conditions must be met (ie. household income $8k or less). HDB flat buyers who have disposed of their private property remain ineligible for concessionary loan.

Revisions to HDB Loan Policy to Support Right-sizing and Financial Prudence
Date issued : 05 Mar 2010

Minister for National Development, Mr Mah Bow Tan, announced changes to HDB’s second concessionary loan policy in Parliament today. The changes support flat owners to right-size, as well as ensure that buyers exercise financial prudence.

Lifting of Upgrading Condition

Currently, only households that are upgrading to a bigger flat type are eligible to apply for a second concessionary loan from HDB. This may have inadvertently encouraged some to upgrade even though it may not be prudent for them to do so.

HDB will remove the condition that a buyer must upgrade to qualify for a second concessionary loan. This means that the second concessionary loan will be made available to all eligible households regardless whether they upgrade, downsize or move to the same flat type. This will benefit families that need to right-size to smaller flats but do not have sufficient proceeds from the sale of their existing flats. However, HDB flat buyers who have disposed of their private properties will remain ineligible for a second concessionary loan.

Right-sizing the Quantum for the Second Concessionary HDB Loan

To further encourage financial prudence, HDB will reduce the quantum of the second concessionary loan by the full CPF proceeds and part of the cash proceeds from the sale of the existing or immediate past HDB flats. Flat buyers can keep the greater of $25,000 or half of the cash proceeds (including the cash deposit received). HDB will take into account the remaining part of the cash proceeds when determining the quantum of the second loan to be granted.

For those who buy the next flat after selling the existing one, they will have to use up to 50% cash proceeds from the sale of the immediate past HDB flat and all of the CPF balance to finance the purchase of the next flat. This will apply regardless of when the previous HDB flat was sold.

For those who buy their next flat before selling the existing one, the proceeds from the sale of their existing flat would not have been realised when they first apply for an HDB loan. To help them buy a flat, HDB will first grant them a bigger loan at commercial interest rates The commercial interest rates are pegged to the 3-month average non-promotional interest rate for HDB flats offered by the 3 local banks. Currently, the rate is 3.82%. after they draw down their CPF balance. After the sale of their existing flat, they will have to redeem this loan with the full CPF refund from sale of the existing flat and part of the cash proceeds as described in paragraph Upon redemption, the loan will be converted to a concessionary rate loan.

The right-sizing of loan quantum will ensure that flat buyers do not take a larger second concessionary loan than necessary, and can help to reduce the likelihood of subsequent mortgage arrears. Please refer to the worked examples Annex A (PDF 16KB)

Implementation Date

The revised second loan policy is implemented with immediate effect as follows:

(via HDB website)

———-

Change #3

To encourage SPR (Singapore Permanent Resident) to take up citizenship (Singapore Citizen) (or to differentiate between a SC-SC household versus SC-SPR household), SC-SPR households will get $10k less grant (where eligible) compared to before. The $10k can be claimed when the SPR takes up citizenship, or when they have a SC child.

In the case of a new flat, SC-SPR households will have to pay a $10k premium.

There have also been a change in Ethnic ratios to prevent new PRs from forming enclaves. Malaysian PRs are not affected by this new ratio.

Policy Changes To Support An Inclusive And Cohesive Home
Date issued : 05 Mar 2010

The Minister for National Development, Mr Mah Bow Tan, announced in Parliament today housing policy changes to encourage Singapore Permanent Residents (SPRs) to take up citizenship, a new quota to promote social integration of SPR households in public housing estates, and a revision to the Ethnic Integration Policy to accommodate Singapore’s changing demographics.

PART A: PROMOTING CITIZENSHIP IN HDB HOUSEHOLDS

With globalisation, an increasing number of SPRs are joining our community as long-term residents. SPRs contribute economically and socially to building our society, and it is in our country’s interests for them to sink their roots here permanently. Hence we would like to encourage SPRs to take up Singapore citizenship.

Reinforcing the Privileges of Citizenship

HDB facilitates home ownership by providing generous subsidies. Today, SPRs married to Singapore Citizens (SCs) enjoy the same subsidies as Singaporean couples. We would like to encourage the SPR family members in such SC/SPR households to take up citizenship.

To do this and to reinforce the privilege of citizenship, HDB will withhold $10,000 of the housing subsidies enjoyed by SC/SPR households when they buy a flat. If they buy a resale flat, a Design, Build and Sell Scheme (DBSS) flat, or an Executive Condominium (EC), their Housing Grant will be reduced by $10,000. If they buy a new flat, they will have to pay a $10,000 premium on top of HDB’s selling price. The changes are summarised in Table 1.

The withheld subsidy of $10,000 will be restored when an SPR family member in the SC/SPR household takes up citizenship or if the couple has an SC child while still in ownership of that flat. Eligible households can apply to HDB within 6 months of the change in household citizenship status to claim the $10,000 Citizen Top-Up via CPF.

PART B: ENCOURAGING SOCIAL INTEGRATION – QUOTA FOR SPR HOUSEHOLDS

SPRs are long-term residents in Singapore. It is important that they integrate well in our local communities. Social integration is a key policy objective in our public housing system. In line with this, HDB will introduce a new SPR quota for non-Malaysian SPR families buying flats, to facilitate better integration and to prevent enclaves from forming in public housing estates.

How does the SPR quota work?

The SPR quota will be set at 5% and 8% at the neighbourhood and block levels respectively. It will apply in addition to the existing Ethnic Integration Policy (EIP) limits. The SPR quota takes into account the composition of SCs and SPRs in Singapore, and their respective demand for public housing. Malaysian SPRs will not be subject to the SPR quota, in view of their close cultural and historical similarities with Singaporeans.

The SPR Quota caps the proportion of non-Malaysian SPR households in HDB neighbourhoods and blocks. Similar to EIP, any resale resulting in an increase in SPR proportion will not be allowed, if the neighbourhood/block limit is already reached. Under such circumstances, an SC seller or a Malaysian SPR seller would not be able to sell his flat to a non-Malaysian SPR household. However, a non-Malaysian SPR seller would still be able to sell to another non-Malaysian SPR as this would not increase the number of non-Malaysian SPR households.

PART C: REVISION TO THE ETHNIC INTEGRATION POLICY (EIP)

The EIP was implemented in 1989 to ensure a balanced ethnic mix across HDB estates and to prevent the formation of racial enclaves.

In response to Singapore’s changing demographics, HDB will increase the limits for the Indian/Others ethnic group by two percentage points to 12% at the neighbourhood level and 15% at the block level. The current Indian/Others limits are 10% and 13% for neighbourhood and block respectively. There is no change to the limits for the Chinese and Malay ethnic groups as the current limits are sufficient. The revised ethnic limits are given in Table 2 below:

Implementation Date and Enquiries

The above housing policy changes will be implemented with immediate effect. More details can be found in Annexes A-C (PDF 16KB).

(via HDB Website)

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Shopping, Medical, and in future, Retire in Johor too

Justina — Sat, 03 Apr 2010 13:06:07 +0000

It’s mainly shopping and medical for now, but I foresee, in future, middle and low-wage Singaporeans earners who have fallen behind may also find it necessary to retire in Johor too. For the price of a 2-room HDB flat in Singapore,
one can get a 2-3 bedroom terrace house in Johor, just 15 minutes north of Tuas.

It does make some sort of sense really, since now we are suppose to consider our HDB flats as part of our retirement funding, should the time come for those have all their money tied up in their flat, with no money to retire, they can just sell it off, get a house in Johor and retire.

IT’S MORE THAN JUST SHOPPING IN JOHOR
Insight Down South by SEAH CHIANG NEE

LIVING in one of the most densely-populated and expensive cities in the world has led to greater Singaporean dependency on Johor for cheaper necessities.

Traditionally, Johor has always meant cheaper shopping and chilly crabs for Singaporeans. But these days as Singapore becomes more affluent (it ranks 6th globally on per capita GDP) and embraces the cost structure of a global city, this attitude is changing.

The Malaysian state no longer just represents a few bargains for a small number of people. For a segment of the population, mostly middle and low-wage earners who have fallen behind, the frequent trips to Johor have become a necessary feature to combat high costs.

This trend has become more prevalent in recent years as a result of relentless price spirals and higher unemployment.

Last year, the average household income fell by 2% just as Mercer Consultancy was ranking Singapore as the 10th most expensive of 143 global cities.

Increasingly, Singapore “heartlanders” are making frequent trips to Johor to buy cheaper household goods, groceries, baby products and other family essentials that could cost 50% higher back home.

“We buy only what is necessary for the home and provided if there is savings,” said a taxi-driver, a frequent shopper with his wife. It is a big help to his family budget.

He is one of about 10 million Singaporeans who visited Johor last year, a figure still below the pre-recession records.

Currently Johor, as in past history, is becoming a growing factor affecting the lives of most Singaporeans. The rich go there to play golf, sail their yachts or occasionally shop for bungalows.

Couples go for fertility treatment or stage their marriage dinners and many women opt for skin products or buy contact lenses or have their breasts enhanced.

The Singaporean shopping list ranges from petrol to pharmaceuticals, from dental care to durians, and many sorts in between – seafood, video tapes, massage and so on. They even get their cars repaired or painted, and yes, even for a car wash!

In return, Johor derives the benefits of substantial tourism earnings, job creation and Singaporean investments that help to make it one of Malaysia’s richest states.

In addition to water and cheaper shopping, Singapore also depends on the Johoreans for semi-skilled production workers, especially plumbers, electricians and mechanics.

A friend who runs a furniture business has told me the extent of Singapore’s reliance on Johor skills.

All his furniture-makers are Johoreans. “You can scour the whole Singapore island, and you’ll not likely turn up any skilled furniture- makers,” he said.

The transformation of Singapore in the past two decades has resulted in major changes that now spilling cross frontiers to impact some of its neighbours including Malaysia.

With five million people packed into 740sq km – the world’s second densest population – Singapore is short of many things including hospital healthcare facilities.

Frequently, public hospitals are out of beds. From this month, the Singapore government has begun to allow Singaporeans to use its Medisave funds in selected hospitals and clinics in Malaysia.

For Singaporeans, it can be a big saving on medical bills, while Malaysia’s ambition to become a medical hub gets a boost.

The account can be used by Singaporeans to pay for their own or the family’s hospitalisation, day surgery (one-day surgical operations) and a number of outpatient expenses outside the country.

It represents an ironic change. Until now, hospital treatment had largely been a one-way affair, with Malaysians coming to Singapore, rarely the other way.

Singapore is promoting itself as a medical hub by attracting tens of thousands of foreigners to use its hospitals it says are cheaper than in the West. But it has now moved a full circle.

Due to costs, more Singaporeans are seeking treatment in Malaysia (now making up 10% of its total medical tourists) even as wealthy foreigners are still making their way here. In Malaysia, Singaporeans can cut medical bills by at least 50% even if they can wait in queue.

A heart bypass which costs US$18,000 (RM58,509) in Singapore, for example, costs only US$9,000 (RM29,255) up north. Prices for angioplasty, paediatric cardiology, or specialised services, are about half the cost in the Republic.

The government’s encouragement for its people to seek treatment across the Causeway has been given good publicity in pro-government media.

A recent example of an early user of the Medisave scheme is cab-driver Ali Ahmed, who underwent a laminectomy at the Regency Specialist Hospital in Johor Baru.

His total bill for surgery, meals and a five-day stay in a single deluxe room came to only S$7,050 (RM16,404) (it would have been S$1,000 less if he had not insisted on a Singapore doctor.) In the Republic, it would have cost Ali S$13,500 (RM31,411).

For a long time now, thousands of Singaporeans have enjoyed vast savings when they buy medicine in Johor, an equivalent of the US-Canada situation where drugs cost only a fraction in Canada.

A major discouragement that stands in the way of more Singaporeans taking advantage of a cheaper Johor is a popular perception of unsafe streets. There had been too many reports of mugging, theft and assaults.

With prices remaining far apart between the two places, the trend is for more Singaporean consumers coming to Johor – with the growing momentum to build a faster rail and immigration processing.

Not all Johoreans are overjoyed by the prospects, however. Some are fearful that if large numbers of Singaporeans come armed with ready money, they may push up the cost of living for Johoreans.

(via The Star)

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Building an Endearing Home for Singaporeans

Justina — Sat, 06 Mar 2010 01:29:15 +0000

Speech by Mr Mah Bow Tan, Minister for National Development, at the Committee of Supply Debate on Friday in Parliament.

- Meeting diverse housing aspirations
- Commitment to young couples, first-timers
- Focus on affordability and financial prudence
- Focus on owner-occupation

Mr Chairman, Sir, Public housing is a hot topic every year, but it is especially hot this year. That’s not surprising, since it is a subject that concerns every Singaporean. I thank Members for raising the concerns of the people and giving me a chance to respond.

This year, HDB celebrates its 50th birthday. It has been an outstanding half century. Recently, the international news service AFP described HDB as “a powerful agency whose projects have taken Singaporeans out of the slums and ghettos that once blighted the island and into multi-storey apartment buildings surrounded by shops, markets, banks, transport links and other essentials”. The United Nations and the World Bank have also commended our success in achieving quality public housing.

When HDB was formed in 1960, less than 10% of Singaporeans owned their homes. Housing was basic and functional. Today, 80% live in HDB flats that are of high quality and good design, in well maintained estates all over the island. Most importantly, they own their flats, a valuable asset which appreciates in value along with the long term growth of our country. This is a remarkable achievement, unique to Singapore.

Meeting diverse housing aspirations

But with success come new challenges. Having to house over 80% of the population means catering to a broad spectrum of flat applicants, from young couples to the elderly, from the low-income to higher-income households, as well as upgraders, singles, new immigrants, and others. Our housing policies have to adjust to meet the demands of these groups.

That is why we cannot just build the standard flats of the 1960s, there is now a wide variety of housing to meet diverse aspirations – HDB’s Build-To-Order (BTO) flats, Design, Build and Sell Scheme (DBSS) flats, and Executive Condominiums (ECs), with different design features, in various sizes and across many locations.

Through our home ownership policies, growing up in HDB flats is a common Singapore experience for many of us. Let me tell you my story. When I was young, I lived in various places with my mother, who was a domestic servant. I lost my father when I was 3 years old, so we moved around a lot; a kampong in Lorong Ah Soo, which has now become HDB flats in Mdm Cynthia Phua’s constituency, a shophouse in High Street where MTI and MOF are today, a room in Bugis Street, where Bugis Junction is today. There were 10 of us living in that room. We had one bed which slept 5. It was raised so that another 5 could sleep underneath. Then, I moved to Kim Keat Avenue with my aunt and her family – 8 of us in a 3-room flat, sharing one toilet and bathroom, while my mother stayed in a 1-room rental flat in Whampoa Road. Later, we upgraded to a 4-room flat in Toa Payoh. My story is a typical Singapore story for my generation. Start in a modest flat, work hard, accumulate savings, and upgrade over time. If need be, there is also the option of downsizing to a smaller flat.

But times have changed. Our rapid progress has brought a new generation of HDB flat buyers who start from a different baseline. It is no longer a rental flat or a kampong house, but more likely a 3, 4 or 5-room flat, even private property.

The challenges we are tackling in public housing today are no longer just about providing a simple roof over the head, but also about meeting rising expectations. Some Singaporeans are worried that they or their children might not be able to afford a home to call their own. I understand these concerns and I hope to allay some of these concerns. Our mission is clear: HDB is committed to provide an affordable home for first-time Singaporean families. We will provide them with a place to call home, a place that is within their means. But on their part, flat buyers must be prudent and realistic.

Commitment to young couples, first-timers

Mr Cedric Foo and Madam Cynthia Phua asked about the adequacy of housing supply. Let me give this categorical assurance to all Singaporeans, especially young couples buying their first homes, that the Government is committed to helping you.

Our new flat supply has been more than sufficient to meet demand. Even at the height of the last boom, between 2006 to 2008, HDB offered a total of 36,400 new flats, or an average of about 12,000 flats per year. The actual take-up was lower, at an average of 10,400 new flats per year. Chart 1 shows that 1,000 to 2,000 new flats were left unsold each year.

For 2009, we started conservatively with a smaller planned supply of 6,000 BTO flats, due to the depressed economy then. Global economies were in disarray, and Singapore was not spared, and so we adopted a conservative approach. But when sentiments improved sharply in the second half of last year, we responded swiftly by increasing BTO supply to 9,000 units. Together with DBSS and other sales, 13,500 new flats were offered in 2009.

For 2010, we will provide 12,000 new BTO flats or more if there is demand. This is a substantial number. Currently, there are about 23,000 flats in Clementi and Jurong East respectively . At the rate of 12,000 flats per year, we will offer enough flats to equal Clementi or Jurong East town in 2 years. HDB will launch at least one BTO project each month for next few months. In addition, HDB has launched new EC sites and will be launching new DBSS sites for sale. For the whole of 2010, I expect total flat supply to be in excess of 12,000.

Therefore, flat buyers need not fear that there are not enough flats. Chart 2 shows the various locations of the new BTOs this year – Sembawang, Punggol, Sengkang, Yishun, Woodlands, etc. When Punggol is fully built up, we will consider building in new areas such as Tengah and Simpang.

So why this perception that there are not enough flats? Perhaps it is because of the high application rates for recent BTO launches, at 3, 4, even 6 times of the flat supply. However, these high application rates do not reflect the true demand for flats. First, about 22% of the applications for BTO projects in the last 4 months (Nov 09 to Feb 10) are repeated applications from the same households. In other words, some of these households could have applied every month. Second, not all applicants are in urgent need of a flat. The true test of demand is not when they apply for a flat, but when they actually book a flat.

HDB monitors the drop-out rates for BTO flats. Last year, the overall drop-out rate was close to 50%. In other words, 1 in 2 applicants did not book a flat when invited to do so. Take the most recent BTO project that completed selection – Fernvale Palms. When Fernvale Palms was launched in Oct 2009, the application rate was 4 times the flat supply. However, Chart 3 shows that by the end of the selection exercise just this week (1 March 2010), 44% of first-timers who were invited to select a flat did not do so. Even when all the flats were available on the first day, 34% of applicants gave up their chance to select a flat. The results were similar for the most recent selection exercise which has completed first-day selection for all flat types, at Boon Lay Meadows. Chart 4 shows that about a third of the applicants dropped out on the first day. This is quite consistent in all recent BTO launches.

When asked for their reasons, applicants told us that their choice units were taken, or they were considering other housing options. I can only conclude that these applicants were not in urgent need of a flat and preferred to wait for their choice flat. Unfortunately, they drive up application rates, and create undue anxiety that demand far outstrips supply. So I hope greater clarity of the situation will help allay concerns.

I have also received appeals from MPs and the public who tell me that they cannot get a flat, despite many attempts. I ask HDB to review all these cases carefully to ensure that our commitment to our first-timer Singaporeans is met. In the last 6 months, we received 477 such appeals. I was pleasantly surprised to discover that only 29 cases or 6% of these applicants genuinely did not have a chance to choose a flat in at least two BTO exercises in non-mature estates.

The rest of the appellants were either only interested in flats in mature estates, which were in short supply, or they had given up one or more chances to select a flat. Let me share a recent case with you. Mr C wrote to me complaining about his lack of success in getting a flat, after several tries. HDB checked and found that he had indeed submitted 4 flat applications, but only 1 was for a BTO flat in a non-mature estate. What was more astonishing was that he had actually been offered flats on 3 occasions, but he rejected them all. When HDB pointed this out to him, he replied: “…. you are right, however, those we are asked to select is not of our choice. So how would one want to proceed when choice units we would like to select is taken?”

I was puzzled – what did he mean by choice units? I asked HDB for more details. Chart 5 shows that for his first chance in Feb 09, there were 121 flats in Punggol and Sengkang available for his selection. He turned them all down because he was (I quote), “targeting the unit in Buangkok which is just opposite to where I am putting up”. Shortly thereafter in Apr 09, he was offered BTO flats in Punggol, which he also rejected, despite having 143 units to choose from. His reason was that “the units that are left are those facing the mosque.” But HDB tells me there were actually 118 units remaining not facing the mosque. On his third chance in July 09, there were 14 units available for his selection, across different locations, Serangoon, Yishun, Ang Mo Kio, Tampines and Woodlands. Again he rejected his chance to select, because these were not his “choice” flats. Within a span of 6 months, he rejected 3 chances to select a flat, when there were many flats available for his selection.

I can understand flat buyers wanting to get the best flat available, if they can. After all, buying a flat is a major investment. However, they also have to be realistic. The Government is committed to helping Singaporeans own their first homes. But it is not possible to promise every applicant who buys direct from HDB his “choice” flat, at the floor of his choice; at the place of his choice; at the time of his choice; and at the price he wants. Our land is limited, especially in the mature estates. So is our housing budget, generous as it is. Buyers have to decide on the tradeoffs they want to make – whether they should keep on trying for their “choice” flat, and delay setting up their home, or to settle first for one within their budget and move to a better flat later when they have built up their finances.

Last year, 10,228 Singaporean families bought new flats, of which about 8,200 were first-timers. 3,500 of these first-timers bought their flats under the Fiance/Fiancee scheme. They should be able to move into their new homes soon after they get married.

Mr Cedric Foo asked if the lead time for supply of new flats could be shortened. As I pointed out earlier, it is better for building plans to be based on real demand as shown in the booking of flats. If we built ahead of demand, we could end up with a large stock of unsold flats if that demand disappeared, as in the early 2000s. If we piled in advance, we could end up with idle sites with piles in the ground. Nonetheless, I will still consider the member’s suggestion to explore reducing the wait for BTO flats through the building up some buffer flats, though I would like to clarify that there is actually a buffer in existence today. This is because we do not wait until 100% booking of flats before commencing construction.

Generally, we start building when around 60% to 70% of the flats are booked, so that, in essence, there is the buffer along the lines that the member suggested. And it is because of this buffer that we are able to offer every year, or thereabout, a stock of flats that are either ready for flat buyers to move in or almost ready to move in. But that cannot be our mainstay, because then we are going back to the time when we try to anticipate the demand, and we build a large stock. Obviously, when these flats are put up for sale because they are near completion or because they are in mature estates, their application rates would definitely be much higher. Therefore, we do need both BTO flats and balance flats for sale as part of our sales programme.

The BTO system offers the certainty of a flat in 3 years plus. Is 3 years unreasonable? Well, we can shorten it further by moving the subscription rate down to commence construction, and we will look into that. But 3 years is in fact no different from the waiting time for private developments. It is a reasonable time. For significant decisions in life, such as buying a flat or planning for marriage, most people would plan ahead and save up for this commitment. While we may be able to shorten the wait, I wish to clarify that it is not ideal to have flats left on the shelves waiting for somebody to walk in and book. For those who cannot wait, they can buy from the resale market immediately, but at a premium for speed and choice.

Focus on affordability and financial prudence

Mdm Ho Geok Choo and Mr Lim Biow Chuan asked how we define affordability and how we will ensure affordability. Mr Ang Mong Seng suggested ways to increase affordability for the lower-income. My assurance to Singaporeans is that we will provide sufficient flats that are priced within your reach.

In terms of affordability, there is a very generous subsidy framework I place, with more help given to the lower-income group. On top of the CPF Housing Grant of $30,000 or $40,000, the Additional Housing Grant (AHG) was introduced in 2006 to give extra help to lower-income families and young couples to own their first homes. Members will recall that we enhanced the AHG for a second time just last year, extending it to those earning up to $5,000, and increased the maximum grant to $40,000. As at 31 Jan 2010, we have disbursed a total of $330m in AHG to more than 20,000 families. Last year, 9,400 families received $176m in AHG. This is double the amount in 2008. This is very significant additional help given to the lower-income to buy their HDB flats.

How do we measure affordability? One way is to compare the median house price to the median annual household income, using the housing price-to-income ratio. In a recent article by NUS professors published in the Straits Times on 27 Feb, it was noted that Singapore had a house price-to-income ratio of 5.8, which was more affordable than Hong Kong’s 19.8, and London’s 7.1. I am not saying this is the idea way, but it is one way. Another well-established and commonly used benchmark of housing affordability is how much of the income is spent to service housing mortgages i.e. the Debt-Service Ratio (DSR), which Mr Cedric Foo asked about. Financial planners generally recommend that households should have a DSR of less than 30-35%. Anything more would be considered unaffordable.

In the case of new HDB flats in non-mature estates, the average mortgage payment for new flats in non-mature estates sold in 2009 was 22% of monthly household income, which translates to a DSR of 22%. This is 1-2% marginally higher than the level seen in the last decade, but well within the affordability benchmark of 30-35%. This also means that about 80% of Singaporean new flat buyers are able to service their housing loans entirely from CPF without any cash payment. In my opinion, this is a significant fact and a very real measure of affordability.

Let me walk the House through an actual example of a couple in Chart 6. Mr and Mrs S with $4,500 monthly income bought a new 4-room flat in Punggol priced at $297,900. They received $10,000 in AHG to offset the price of the flat. They took a loan of $268,100 (90% loan from HDB) at concessionary rate. The couple’s monthly instalment is $1,073 or 24% of their income. They can use $1,035 from CPF to service the instalment and only pay $38 in cash. This leaves the household with the bulk of their take-home pay for other expenses.

I want to stress that housing affordability is also a function of how people make choices. HDB builds a wide variety of flats – of different sizes, in different locations, and with different features – to cater to different aspirations and budgets. I would like to assure Mr Lim that we will continue to build basic flats. In fact, the bulk of our new flat supply is through HDB’s BTO system, with many 2-, 3- and 4-room flats on offer. But those in demand are the larger flats like the 4- and 5-rooms. Why are these flats in demand? Because they offer good value for money. And when you come to a development like The Pinnacle and Dawson, they see huge demand because they represent the greatest value for money. So we have to build basic flats, but we also have to build some of the more premium flats. The DBSS is one of them. It constitutes only 10% of flat supply, to offer choices to those who are willing to spend more for premium flats. Affordability is about buying a flat within your means. There are many choices available – 2, 3 or 4-room flats at various locations. Given these choices, buyers must exercise financial prudence and carefully consider what they can afford, taking into account their income and other commitments.

Take Mr and Mrs S, the couple I mentioned earlier, who bought a flat at Punggol with a monthly income of $4,500. Chart 7 shows that they could also have chosen from many other BTOs, or any of these resale flats: a 3-room flat in Bukit Merah at $300,000, a 4-room flat in Yishun at $294,000 or a 5-room flat in Jurong West at $370,000. Clearly, flat buyers have choices, but there are trade-offs to be made in location and flat size.

Mr Ahmad Mohd Magad and Madam Ho Geok Choo asked what could be done to help families in financial difficulty, because they bought flats that they cannot afford. At my Meet-The-People sessions, I am saddened to see households which have over-stretched themselves, ending up in arrears. HDB has helped many households facing financial difficulties to reduce or defer their loan instalments, and in some cases, even offered them another HDB loan to help them right-size their housing.

Mr Cedric Foo asked if we can provide loans for those who want to downgrade. Some MPs also gave me feedback that by providing the second concessionary loan to households only for upgrading, this may inadvertently drive some to upgrade even though it may be more prudent for them not to do so.

With greater economic volatility, the flexibility to right-size will become more important. Therefore, I have decided to remove the upgrading condition for the second concessionary loan. What this means in future is that both upgraders and those who downsize will be eligible for the second HDB loan, with the focus on helping families to right-size their housing choices.

To further encourage financial prudence, HDB will reduce the second concessionary loan quantum – by the full CPF balance, and half of the cash proceeds from the sale of the first flat. The household will get to retain at least $25,000 in cash proceeds. Let me illustrate what this means. Chart 8 shows that if a couple sell their flat and receive $60,000 in CPF refund and $80,000 in cash proceeds, they will need to use their CPF money ($60,000) and half of their cash proceeds ($40,000) to pay for their next flat. In other words, HDB would then grant them a loan, which is $100,000 less. In this case, the household retains $40,000 in cash proceeds.

The changes to the second concessionary loan will help Singaporeans right-size to a home that they can sustain over the long term. It will help homebuyers manage their finances for their flat purchase upstream, and avoid financial difficulties downstream.

Focus on owner-occupation

Let me now turn to the members’ concerns about the Mininum Occupation Period of HDB flats. As we strive to provide sufficient flats to meet the housing needs of Singaporeans, I want to emphasize that HDB flats are provided primarily for owner-occupation and not speculative profit or rental return.

Dr Lim Wee Kiak and Madam Ho Geok Choo were concerned about high prices and Cash-Over-Valuation (COV) levels. They asked what could be done to curb speculation. Mr Masagos Zulkifli also asked about the outcome of our review to curb speculation, whether Permanent Residents (PRs) are driving up flat prices, and how we have dealt with illegal subletting.

Firstly, we have to make the decision whether to control resale flat prices. If we control the market, we are essentially going back to the regime where we sell the flat to you at a controlled price, and you sell it back to us at the same price. This way, an HDB flat will not be an asset. Basically, what you are doing is you are collecting rental upfront, and this is akin to a rental scheme. The Home Ownership Programme, where we allow owners to enjoy the increase in value of their flats, is what makes the Singapore public housing programme different from other cities in the world, and I believe this is the best scheme for Singaporeans. And that is why we should not interfere in the resale market. If we interfere, we are essentially moving backwards, and this could be detrimental to the 800,000 homeowners or more. So why was there high COV? Because people are willing and prepared to pay for that particular flat. The COV is the result of negotiation between willing buyers and willing sellers. At the end of the day, buyers can walk away if they do not want to pay the COV.

Mr Hri Kumar also asked about subletting, and whether private property owners (PPOs) should be allowed to own flats. The majority of resale flat buyers are citizens who do not own any private property. Those who are eligible get CPF housing grants to buy resale flats. We should not make a distinction whether the buyer is a Singaporean, PPO or PR if the flats are bought and sold at full market price with no subsidy.

There is no evidence that specific buyer groups, like PRs and PPOs, are driving up prices. The median COV paid by PRs have been the same as the overall median COV paid for resale flats for the last two quarters. Therefore, PRs are not more cash-rich than average Singaporeans. Cases of PRs paying high COV are the exception, not the rule. Of the 37,205 resale transactions in 2009, 58 cases had COV exceeding $70,000. Of this, only 8 cases or 14% involved PRs. The rest of the 50 cases were Singaporeans. Hence, there is no evidence to suggest that PRs are driving up prices.

While PPOs pay higher COVs in general, their numbers are not large enough to drive up prices . If we banned PPOs from buying HDB resale flats, what about HDB owners buying private properties? Should we disallow that too? Surely not. I would urge that we take a longer-term view and not over-react, and do things we regret and have to unwind down the road.

Although flats are mainly for owner-occupation, we do allow flat owners to sublet their flats if they meet the Minimum Occupation Period (MOP). Under the current MOP policy, flat owners are allowed to sublet their entire flat after 3 or 5 years, depending on whether their flat purchase was subsidized. Of the 682,000 flats that have fulfilled the MOP and are eligible for subletting, only 23,200 or 3% are sublet. This suggests that most flat owners are buying their flats for occupation, and not rental. The extent of subletting whole flats is not as prevalent as what people suggested.

Just to make sure, I have asked HDB to step up enforcement against unauthorised subletting of flats. HDB has the power to compulsorily acquire flats or impose a heavy fine on those found subletting without authorisation. The public can help HDB by reporting such cases if they know of them.

Mr Ang Mong Seng has asked us to review the 1-year MOP for resale of flats bought without subsidies. While there has been an increasing trend of flat owners selling their flats shortly after MOP, especially among those who had bought non-subsidised flats with shorter 1- and 2.5-year MOP , the numbers are not large. However, if the trend continues, buyers who genuinely need housing could be crowded out.

To reinforce the principle of owner-occupation and reduce the possibility of speculation, HDB will be raising the MOP for resale of non-subsidised flats from 1 and 2.5 years to 3 years. This will align the MOP for home owners to resell and fully sublet non-subsidised flats.

Sir, the Government has provided high quality public housing for the last 50 years. For the next 50 years, we face new challenges. But I assure Members that we will strive to enable the majority of Singaporeans to meet their housing aspirations, which is to own a home, that is comfortable, of good quality and yet affordable.

(via TodayOnline)

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HDB loans soon to be available to downgraders

Justina — Sat, 06 Mar 2010 01:18:51 +0000

BIG CONCESSION FOR DOWNGRADERS

SINGAPORE – When he said he was feeling the heat, National Development Minister Mah Bow Tan was not referring to the weather, but the “exceptionally” high number of questions in Parliament on housing, he said in jest.

The 15 Members of Parliament who put questions and issues to his ministry included those who have been pushing for changes to certain housing policies for years – and on Friday, they got a significant concession.

Mr Mah announced that Singaporeans can now take a second concessionary loan from the Housing and Development Board (HDB) to downgrade or buy a similar-sized flat.

This will benefit some 1,000 households per year.

Previously, they could only qualify for a concessionary loan, which incurs 2.6 per cent in interest, if they upgraded to a bigger flat. Earlier in the day, MPs Cedric Foo, Cynthia Phua and Ahmad Magad had pointed out again – for the final time – that they had constituents who, after selling off their existing flats, struggled to even downgrade and did not qualify for a bank or concessionary loan.

Noting how MPs have been raising this issue for a long time, Mr Mah said: “Some MPs also gave me feedback that by providing the second concessionary loan to households only for upgrading, this may inadvertently drive some to upgrade even though it may be more prudent for them not to do so.

“With greater economic volatility, the flexibility to right-size will become more important.”

The big policy change comes with conditions, though.

“To further encourage financial prudence”, HDB will reduce the size of the second concessionary loan by an amount equal to the full Central Provident Fund refund and half the cash proceeds from the sale of the first flat.

For instance, if a couple sell their flat and get a $60,000 CPF refund and $80,000 in cash proceeds, the CPF refund and $40,000 will have to go toward paying for their next flat.

“In other words, HDB would then grant them a loan which is $100,000 less,” he said.

But HDB will allow buyers to keep at least $25,000 of the cash proceeds if they get back less than $50,000.

Property firm Propnex chief executive Mohamed Ismail believes the policy change may lead to “an increase in market activity due to an increase in downgraders”. However, he said it was too soon to say if resale flat prices would rise.

On whether it will be cheaper for downgraders to take the second concessionary loan, Ngee Ann Polytechnic real estate lecturer Nicholas Mak told MediaCorp it was difficult to tell with variables such as loan tenure and fluctuating bank interest rates.

In Parliament, Mdm Phua (Aljunied GRC) asked if the 50-per-cent criteria for cash proceeds could be lowered. Mr Mah said this applied to nett proceeds and that he would review “whether it’s too high or too low” after the scheme has been implemented.

The minister also announced that HDB will raise the minimum occupation period (MOP) for all resale flats bought to three years. Currently, flats bought with a concessionary loan have an MOP of 2.5 years, while those bought without have an MOP of one year.

The extension of the MOP is to “foster owner-occupation, and (is) not about affordability per se”, said Mr Mah.

Property experts felt this measure would have little impact on prices. “Most HDB buyers are not buying their flats with the aim to flip,” said Mr Ismail.

Last year, 9 per cent, or 3,000 households, sold their resale flats within three years of purchase.

(via TodayOnline)

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