Tag Archive | "BTO"

Limited Resale Flat Supply speaks up

Limited Resale Flat Supply speaks up

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The opinions expressed in this article belong to Limited Resale Flat Supply solely, a thing that is becoming more real. No, seriously.

Limited Resale Flat Supply is real. Very real.

Hi everybody, my name is Limited Resale Flat Supply.

You must be wondering who the %&#@ am I, and why I even have the ability to write an article.

Don’t worry, I’m real. And not part of your imagination because you smoked something illegal. No, no.

I am what economists would call “a determining factor”.

Yes, I am not a typical person, like your mother or grandfather or mistress. However, I would still regard myself as a “proper thing”, albeit one that is a relatively voiceless thing in Singaporean society.

Kind of like the voiceless marginalised. But in my case, even more marginalised because you wouldn’t typically hear me speak on any regular day.

Not even on TOC.

Honestly, you can believe all you want that I don’t even exist because Limited Resale Flat Supply doesn’t even qualify as a noun.

But that doesn’t mean I’m not here.

I am. And I might be here to stay. For good. So let me explain.

Recently, you must have read in the news that resale flat prices keep going through the roof. (Haha, sorry about that housing pun… Anyways…)

Apparently, fewer people bought HDB resale flats between July and September this year. The number of resale transactions declined by 10 per cent to 5,903 deals in the third quarter – below the usual 6,000-a-month average.

However, the median cash-over-valuation (COV) – the cash premium on top of the bank valuation for the property – has risen to more than $30,000 for almost all flat types and estates.

Therefore, as these bunch of fewer people were still prepared to pay more, total transactions went down but prices of resale flats still went up. Naturally.

Or so the argument goes in The Straits Times front page story on Oct. 29.

But I can tell you: This argument is bunk!

Look, the real answer lies in the fact that there is a historically low supply of five-year-old flats eligible for resale now.

There are fewer such flats because HDB’s building programme slowed dramatically about eight years ago due to the economic and Sars crises, as well as the availability of tens of thousands of unsold flats then.

And no one could predict what was to happen in just eight short years later. The few flats that were available then matured enough to be resold and our population quadrupled in that same period of time. (I’m exaggerating, but sure feels like it, doesn’t it?)

Not that ST never reported this fact. They did. Except they cut the story in half on the front page, with this fact put inside the second half of the story in page six! So sneaky!

And I wonder why!

And you know what’s the factor that makes me, Limited Resale Flat Supply, speak up?

I have gotten bigger and more prominent! I’m in a persistent state of arousal! From now until forevermore!

You remember the rules introduced last August to restrict HDB flat ownership? Such as requiring private property owners who buy HDB resale flats to dispose of their private property within six months?

You think it’s damn smart to try to curb people from purchasing HDB flats for investment when they already own private property, right?

Wrong!

Those who are holding onto private property and HDB flats before the new rules kicked in, now don’t even want to let go!

They want to wait for the right time! When prices go up even higher! Because they now have a stake in controlling the resale flats market forces!

And I, Limited Resale Flat Supply, is becoming more and more powerful!

Also, think about bigger social issues: Permanent residents resorting to buying instead of renting, more singles on the prowl for a resale flat to call home because lesser Singaporeans are getting into marriage, and first-time home owners who can no longer wait for Build-To-Order flats that will only be done in three years’ time.

Three years’ time!

And you think raising the monthly income ceiling from $8,000 to $10,000 is going to help to make waiting three years attractive?

My constituency I represent, the Limited Resale Flat Supply group representation, is fortified and will no longer go unnoticed.

Although we might not be real, so to speak, our presence will hopefully encourage you to speak up for your own rights and champion your own causes and interests… until the next elections or something.

Until then, and since you might be intending on waiting for your BTO flat, why not watch Nyan Cat fly around carelessly?

This will commensurate with your feelings of hopelessness perfectly in the meantime.

Yours truly,
Limited Resale Flat Supply

Khaw tries to fix Mah’s housing problems

Khaw tries to fix Mah’s housing problems

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Fairer system to kind of level playing field, with more help supposedly going to couples, singles and elderly.

With Singapore’s housing situation in a mess, Khaw Boon Wan, the newly handpicked minister of National Development (pictured left), has come up with a series of schemes and new flat releases to help curb the problems his predecessor Mah Bow Tan could not solve before an incumbent-walloping General Election in May.

Khaw announced, with a lot of enthusiasm, that there will be less help given to the higher-income households seeking to buy a flat because they can afford not to be helped.

This is an attempt to create a fairer, tiered system, in tandem with the Housing and Development Board (HDB) recently raising the income ceiling for those looking to buy homes.

For those purchasing built-to-order (BTO) flats, the income ceiling will be raised from $8,000 to $10,000

For executive condominium flats, they are to go up by $2,000 to $12,000.

Those aged above 55 and wanting to buy a purpose-built studio apartment for the elderly now have an income ceiling of $10,000. Previously it was $8,000.

Therefore, potential buyers whose household income is $10,000 are still eligible to receive the entire Central Provident Fund (CPF) Housing Grant worth $30,000. (Thank goodness…)

Those earning between $10,000 and $11,000, tough luck. They will receive $20,000.

Households that make more than $11,000? Sorry, but tough luck too. They will receive $20,000 as well.

Life is indeed unfair, in case you’re just tuning in.

Furthermore, Khaw said that the HDB will release 8,000 flats (a record number, by the way) next month. (Who said opposition political parties are not effective in bringing about change?)

In total, 25,000 flats are to be released this year. In November, for example, 4,000 built-to-order (BTO) flats will enter the market.

As for 2012 next year, the projection is for a release of another 25,000 flats. (Something Mah probably could not deliver.)

Some of these flats will be in mature estates such as Tampines and Kallang/Whampoa, which are prime locations that are sought-after in the market.

This would allow some potential resale flat buyers to exit the resale market as they will be tempted by brand new flats instead, effectively freeing up space for those single and above 35 years and older, for example. (Or so the theory goes…)

Khaw enthused that this would effectively deal with the housing demand surge.

He gushed: “That’s why I’m so confident that in three, four years’ time, when these units start materialising, whatever pent-up demand, the problem would be largely resolved.”

However, he also stressed: “It can’t happen tomorrow.”

Read the original article here.