http://www.straitstimes.com/BreakingNews/Singapore/Story/STIStory_567361.html
Aug 17, 2010
'Buy a flat you can afford'
THE HDB resale market operates on free market principles where prices are negotiated on a willing-buyer, willing-seller basis. As such, buyers should carefully consider what they can afford, including the cash-over-valuation.
National Development Minister Mah Bow Tan gave this advice when replying to a question from MP for West Coast GRC, Madam Ho Geok Choo.
With the supply of 16,000 Build-to-Order (BTO) flats, he said this would help to lower the prevailing COV.
The substantial increase in new flats would cater to the needs of first-time home buyers, and siphon off some of the housing demand that is driving up resale flat prices, added Mr Mah.
He also said that first-time buyers can buy directly from HDB as well as the resale market, adding that the BTO flats to be offered this year would be augmented by 5,200 units under the Design, Build and Sell scheme and Executive Condominium Housing Scheme.
On measures to correct the imbalance in the HDB resale market, Mr Mah reiterated that HDB flats were intended for long-term owner occupation.
He cited how some buying HDB flats 'in anticipation of future price increases', despite not being in need of housing, being a contributing factor to the strong demand today.
'I advise buyers to be financially prudent and remember that HDB flats are meant for their long-term occupation,' said Mr Mah.
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Latest comments
As mentioned previously, a high influx of FWs coupled with a "reactive" HDB construction policy are breeding grounds for property inflation and overvaluation. Must you really wait till BTOs are oversubscribed 16x before you consider building more HDBs?
Posted by: Lone_Wolfx at Tue Aug 17 14:21:29 SGT 2010
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Telling other people what to do is cheap. Lets discuss about how to stabilize the market and then enforce them using the power that has been entrusted to you. You cant expect a typical family thinking of moving to another HDB flat to consider the consequences in terms of national property inflation and volatility, general affordability, etc etc? The big picture, Mr Mah, is your problem.
Posted by: Lone_Wolfx at Tue Aug 17 14:15:48 SGT 2010
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'I advise buyers to be financially prudent and remember that HDB flats are meant for their long-term occupation,' said Mr Mah.
What about those who own private properties and rent their flats out? Does that count as long-term occupation?
You can't "tell" the market how to behave but you can have better planning and policies to get the right reaction.
Posted by: Lone_Wolfx at Tue Aug 17 14:09:48 SGT 2010
----------
"On measures to correct the imbalance in the HDB resale market", Mr Mah ... gave advice. Wow. I dun mean to be rude, but erm, sometimes talk is cheap. Instead of concrete actions from HDB re: Resale flats, all we see is "advice".
Anyway thanks for releasing more flats. And thanks for not listening to all of us, the picky and choosy Singaporeans, earlier.
Posted by: yate2009 at Tue Aug 17 14:04:52 SGT 2010
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Property taxes should not be increased just because of rises in property prices, since the minister already acknowledged that �that HDB flats are meant for their long-term occupation.'
Posted by: ladyhaha at Tue Aug 17 14:04:05 SGT 2010
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grandmarpole
Today, 12:48 PM
Looks like Mr.MBT is implying that only the "RICH" people can afford to buy HDB resale. Most likely targeting the foreign rich buyers who do not need to carefully consider as HDB prices to them are probably peanuts. Good heavens!!!
---------------
Misnomer
Today, 01:45 PM
Camp at the beach - that's the most affordable.
-----------------
Warmtoes
Today, 01:45 PM
HDB should review their overall curent policy on income ceiling on smaller roomd flat and as well as the Supply and demand planning to be in line with the immigration policy.It is always good to find ways and means to use our limited monetory resources and generate incomes for the country but i do not agree if that comes at the expense of very own citizens whom suffer lower quality of life.
------------
Warmtoes
Today, 01:47 PM
I think our minister do not really 'see' the pictures right...each BTO or all new flat will have to wait for 3 years to be completed and that's the problem, isn't it? With the infux of more new immgrants, the supply will always lagging behind the supply and with due respect, everyone will know the price will still goes up no matter what for resale market.
--------------
Warmtoes
Today, 01:48 PM
I am not implying that to let the resale market to crash or or have it devalued, nobody wants that but I am sure if HDB have planned and release more flats than now, I am sure the effect will be more immedite.Also, I am not really sure why the income criteria is not being review for smaller rooms flat since the flats value has appreciated so much as compare to our income.
-----------------
Warmtoes
Today, 01:48 PM
Is that what our governement wants to have a generation who will always in debt to HDB? I am not really sure how the younger generation is going to service a more expensive smaller flat with less than ideal income. How to get people to give birth to more children when people are struggling to get a decent house over their head with a comfortable savings?
------------------
ladyhaha
Today, 01:59 PM
Property taxes should not be increased just because of rises in property prices, since the minister already acknowledged that ‘that HDB flats are meant for their long-term occupation.'
------------------
yate2009
Today, 02:00 PM
"On measures to correct the imbalance in the HDB resale market", Mr Mah ... gave advice. Wow. I dun mean to be rude, but erm, sometimes talk is cheap. Instead of concrete actions from HDB re: Resale flats, all we see is "advice".
Anyway thanks for releasing more flats. And thanks for not listening to all of us, the picky and choosy Singaporeans, earlier.
-------------------
hubhubhub
Today, 02:02 PM
Besides BTO flats, can the minister provide a schedule of HDB flats (non-BTO) to be completed in 2010, 1st & 2and half of 2011 and 2012.
With this information, potential HDB flat buyers can decide whether to buy re-sale or buy from HDB. Or HDB has stopped building non-BTO flats.
Aug 17, 2010
'Buy a flat you can afford'
THE HDB resale market operates on free market principles where prices are negotiated on a willing-buyer, willing-seller basis. As such, buyers should carefully consider what they can afford, including the cash-over-valuation.
National Development Minister Mah Bow Tan gave this advice when replying to a question from MP for West Coast GRC, Madam Ho Geok Choo.
With the supply of 16,000 Build-to-Order (BTO) flats, he said this would help to lower the prevailing COV.
The substantial increase in new flats would cater to the needs of first-time home buyers, and siphon off some of the housing demand that is driving up resale flat prices, added Mr Mah.
He also said that first-time buyers can buy directly from HDB as well as the resale market, adding that the BTO flats to be offered this year would be augmented by 5,200 units under the Design, Build and Sell scheme and Executive Condominium Housing Scheme.
On measures to correct the imbalance in the HDB resale market, Mr Mah reiterated that HDB flats were intended for long-term owner occupation.
He cited how some buying HDB flats 'in anticipation of future price increases', despite not being in need of housing, being a contributing factor to the strong demand today.
'I advise buyers to be financially prudent and remember that HDB flats are meant for their long-term occupation,' said Mr Mah.
===========================================
Latest comments
As mentioned previously, a high influx of FWs coupled with a "reactive" HDB construction policy are breeding grounds for property inflation and overvaluation. Must you really wait till BTOs are oversubscribed 16x before you consider building more HDBs?
Posted by: Lone_Wolfx at Tue Aug 17 14:21:29 SGT 2010
-----------
Telling other people what to do is cheap. Lets discuss about how to stabilize the market and then enforce them using the power that has been entrusted to you. You cant expect a typical family thinking of moving to another HDB flat to consider the consequences in terms of national property inflation and volatility, general affordability, etc etc? The big picture, Mr Mah, is your problem.
Posted by: Lone_Wolfx at Tue Aug 17 14:15:48 SGT 2010
-----------
'I advise buyers to be financially prudent and remember that HDB flats are meant for their long-term occupation,' said Mr Mah.
What about those who own private properties and rent their flats out? Does that count as long-term occupation?
You can't "tell" the market how to behave but you can have better planning and policies to get the right reaction.
Posted by: Lone_Wolfx at Tue Aug 17 14:09:48 SGT 2010
----------
"On measures to correct the imbalance in the HDB resale market", Mr Mah ... gave advice. Wow. I dun mean to be rude, but erm, sometimes talk is cheap. Instead of concrete actions from HDB re: Resale flats, all we see is "advice".
Anyway thanks for releasing more flats. And thanks for not listening to all of us, the picky and choosy Singaporeans, earlier.
Posted by: yate2009 at Tue Aug 17 14:04:52 SGT 2010
------------
Property taxes should not be increased just because of rises in property prices, since the minister already acknowledged that �that HDB flats are meant for their long-term occupation.'
Posted by: ladyhaha at Tue Aug 17 14:04:05 SGT 2010
------------
grandmarpole
Today, 12:48 PM
Looks like Mr.MBT is implying that only the "RICH" people can afford to buy HDB resale. Most likely targeting the foreign rich buyers who do not need to carefully consider as HDB prices to them are probably peanuts. Good heavens!!!
---------------
Misnomer
Today, 01:45 PM
Camp at the beach - that's the most affordable.
-----------------
Warmtoes
Today, 01:45 PM
HDB should review their overall curent policy on income ceiling on smaller roomd flat and as well as the Supply and demand planning to be in line with the immigration policy.It is always good to find ways and means to use our limited monetory resources and generate incomes for the country but i do not agree if that comes at the expense of very own citizens whom suffer lower quality of life.
------------
Warmtoes
Today, 01:47 PM
I think our minister do not really 'see' the pictures right...each BTO or all new flat will have to wait for 3 years to be completed and that's the problem, isn't it? With the infux of more new immgrants, the supply will always lagging behind the supply and with due respect, everyone will know the price will still goes up no matter what for resale market.
--------------
Warmtoes
Today, 01:48 PM
I am not implying that to let the resale market to crash or or have it devalued, nobody wants that but I am sure if HDB have planned and release more flats than now, I am sure the effect will be more immedite.Also, I am not really sure why the income criteria is not being review for smaller rooms flat since the flats value has appreciated so much as compare to our income.
-----------------
Warmtoes
Today, 01:48 PM
Is that what our governement wants to have a generation who will always in debt to HDB? I am not really sure how the younger generation is going to service a more expensive smaller flat with less than ideal income. How to get people to give birth to more children when people are struggling to get a decent house over their head with a comfortable savings?
------------------
ladyhaha
Today, 01:59 PM
Property taxes should not be increased just because of rises in property prices, since the minister already acknowledged that ‘that HDB flats are meant for their long-term occupation.'
------------------
yate2009
Today, 02:00 PM
"On measures to correct the imbalance in the HDB resale market", Mr Mah ... gave advice. Wow. I dun mean to be rude, but erm, sometimes talk is cheap. Instead of concrete actions from HDB re: Resale flats, all we see is "advice".
Anyway thanks for releasing more flats. And thanks for not listening to all of us, the picky and choosy Singaporeans, earlier.
-------------------
hubhubhub
Today, 02:02 PM
Besides BTO flats, can the minister provide a schedule of HDB flats (non-BTO) to be completed in 2010, 1st & 2and half of 2011 and 2012.
With this information, potential HDB flat buyers can decide whether to buy re-sale or buy from HDB. Or HDB has stopped building non-BTO flats.
