Archive for August, 2010

Just a post to summarize the probable effects of what was discussed by PM Lee and Mr. MBT. I fall under the category of people that these measures are supposed to benefit. I.e. Young couples buying their first flat… hmm~

Please feel free to leave a comment if you have something to add, or think that a point should be corrected or can be refined.

1. Minimum Occupation Period (MOP) of non-subsidised flats increased from 5 years (from 3 years)

o Transaction volume decreases

o Supply of resale flats decreases

 

2. Buyers of non-subsidised flats cannot own private property concurrently within MOP

o Private property owners intending to buy HDB for investment purposes are unable to do so

o Buyers intending to invest in private property within MOP of staying in HDB are unable to do so

 

3. Increased the holding period for imposition of Seller’s Stamp Duty (SSD) to 3 years (from 1 year)

o Buyers intending to speculate with holding period of 1 to 3 years will have profits eroded by SSD

o Speculation period increased to > 3 years (Encourages longer-term speculation)

 

4. Buyers who have ≥ 1 outstanding loans at purchase and are taking a bank loan: Required to pay 10% of valuation in cash (from 5%), and max bank loan % lowered to 70% (from 80%)

o Existing HDB owners intending to shift houses are now less able to do so

o Supply of resale flats decreases

 

5. HDB intending to launch 22,000 flats in 2011 if demand remains strong

o Supply of BTO flats increases

o Demand for resale flats decreases

 

6. More land released for tender of DBSS and ECs

o ???

 

7. BTO flats launching mid-2011 onwards have expected completion time of 2.5 years (previously 3 – 5 years)

o Demand for BTO increases due to shorter time to obtain flat

That’s all I can think of for now!

[ Official MND press release dated 30 August 2010 here: MEASURES TO MAINTAIN A STABLE AND SUSTAINABLE PROPERTY MARKET ]