Below is a summary of the regulations introduced by the Government over the National Day Rally and the increase of supply of flats by HDB.- For the purchase of a second property while still one is still servicing an existing mortgage, an upfront payment of 30% of the valuation must be placed - at least 10% in cash, the rest from CPF. Previously, it was 20% of the valuation with at least 5% in cash.
- A minimum occupation period (MOP) for your HDB flat must passed before you can invest in private property. Previously, it was 3 years.
- Private property owner who buys a HDB resale flat must sell the private property within six months of the purchase of the HDB resale flat.
- Those who sell any private property within 3 years of buying it must pay a stamp duty of up to 3% of the sale price. Previously, the seller's stamp duty applied only for resale within one year of purchase.
- HDB will offer 38,000 new flats in the next 2 years which includes BTO, DBSS and EC and the waiting time for BTO flats will be reduced by 6 months from 3 years to 2.5 years.
I do think that the restrictions are quite substantial. In my opinion, we are having a housing bubble now and bubbles can be irrational and unpredictable as it depends on how the market perceives and reacts to the news. Supply and demand has some influence over the price too but the price may take some time to adjust and correct. In the short term, the price may still hover near the high region. But as I have been blogging about how the Government is increasing the supply and lowering the demand for the past articles, the price is likely to fall over a longer period of time such as in a few years time.
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when the gov is easing the inflow of foreigners, the men in white should have expected this problem.
ReplyDeletenow you see some over reacting bloggers and prominent figures highlighting this issue.
but i'm surprised a property agent friend told me that his clients are mainly singaporeans, cash rich and willing to invest.