Tuesday, September 7, 2010

New Regulations to Control Property Prices

I don't care if you're interested in this or not, i'm just writing this out to sort out my thoughts.

National Day Rally:
a) Allow households earning between $8,000 and $10,000, to buy new DBSS flats with a $30,000 CPF Housing Grant;
(b) Increase the supply of new flats, Design, Build and Sell Scheme (DBSS) flats, and Executive Condominiums (EC);
(c) Shorten the completion time of Build-To-Order (BTO) flats;
(d) Increase the Minimum Occupation Period (MOP) for non-subsidised flats to 5 years; and
(e) Disallow concurrent ownership of both HDB flats and private residential properties within the MOP.

Taken from HDB

On top of that, 2nd property can only loan up to 70% of the valuation.

What happens from here then?

Home owners will stay put unless they have the intention to upgrade. Investors may be looking to dump private properties now as prices are still high. Market prices should simmer or dip but nonetheless will trend to hold position as rental will go on strong. Following Q4, private property will be meeting low transaction period, new developments/launches will restrict supply if prices fall drastically with the onset of high HDB supply.

What should you do??

Private Property: Sell high, rent and then buy low later.

HDB: Should take the opportunity to grab DBSS now. If not, then just wait for private property prices to dip... if it happens!

HBD Hotlines:

Sales/Resale Customer Service Line : 1800 8663 066

Branch Office Service Line : 1800 2255 432

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