We started 2010 with Law Minister K Shanmugam claiming that it is unfair for us to blame foreign talents for driving up home prices because they place no burden on public housing prices.

‘The first misconception is that somehow there are five million people and that’s putting pressure on all of us. It doesn’t.’
Of the five million, 3.2 million are citizens and roughly 500,000 are permanent residents (PRs). The remaining 1.3 million are here on temporary work permits and they ‘impose no burden’ on the public housing system, said Mr Shanmugam, who is also the Second Home Affairs Minister.
The operative word of Shanmugam’s claim was ‘public’ (aka HDB flats), his main contention was, since the large bulk of foreigners are work permit holders who cannot buy HDB flat (new or resale), and that PR only form a small portion of foreigners, they cannot possibly drive up prices of public housing. Talk about over-simplifying matters.
Shortly after his failed attempt to convince the masses, garmen announced new measures to curb rising prices of private housing market.

First, anyone who sells a property within a year of buying it will have to pay stamp duty of around 3 per cent….
Second, lending institutions will now be allowed to lend only up to 80 per cent of the purchase price, not 90 per cent.

Senior Minister of State for National Development Grace Fu emphasised that the Government had acted to prevent a “speculative bubble from forming.”
Aside from our dear Law Minister, everyone else knows that public housing sentiments follows the sentiments of private housing rather closely. So it was no surprise that 2 days later, it was announced that garmen will introduce measures for public housing market as well.

Minister for National Development Mah Bow Tan said: ‘We are looking at something. I’ve asked HDB to look at some of the activity that is going on in the market.’
At almost the same time, PM urged Singaporeans not to play play in the housing market and that ‘homes are for keeps’

‘Property is for people to buy to live in, not for speculating,’
Shortly after that, papers reported that garmen is watching the market.

and that no new measures will be introduce…. for now.
THE Government will not introduce more measures relating to the property market for now, but will monitor the market closely, said National Development Minister Mah Bow Tan
Meanwhile, demand continued to soared for public housing

The blistering demand for the developments… is being attributed to the escalating prices of resale flats, which set a fresh record in the last quarter of last year.
And prices for both private and public housing continued to go up…


In August, realizing that they can no longer sit on their hands… garmen announces fresh measures.
First, the seemingly unmovable HDB income-ceiling, which remained at $8000 per month since 1994, which survived various financial highs and lows, recessions and economic booms and inflation… will finally be raised.

PM Lee announced the increase during his national day rally, seemingly a measure to help the ‘sandwiched class’.
‘I think this group is quite anxious about falling in between, as they are not eligible for HDB and they can’t afford private property.. And because people are marrying a little bit later, so their incomes tend to be a little bit higher, so they worry that they will get promoted before they get settled. So we will do more to help them own their homes,’
Fact is, if you think about it, more people buying flats direct from HDB will mean less people buying resale and private, it is a move targeted at cooling the property prices.
Next came the public assurance that garmen will ensure adequate supply of HDB flats

Again, a move designed to cool buying frenzy that’s driving up prices.
And finally… to top it off, a ‘lightning strike’ change in policy.

Garmen announced the extension of minimum occupancy period (MOP) for non-subsidized HDB flats (aka resale flats) and also the restriction of dual ownership during the MOP.
Apart from the longer MOP for resale and subletting of flat to five years, the HDB also announced on Monday morning that buyers of non-subsidised flats will be disallowed from concurrently owning both an HDB flat and a private residential property within the MOP.
Private property owners who buy a non-subsidised HDB flat must now dispose of their private residential property within six months from the date of flat purchase.
HDB statement also claimed that the change will “ensure equitable treatment for all HDB flat lessees during their MOP” because prior to rule change, buyers of subsidized HDB flats (those who bought direct from HDB) are not allowed to own private property during their MOP.
The press labeled the policy change a ‘cold shock for speculators’

MND Mah Bow Tan claimed:
‘We think that if we do nothing, there’s going to be a bubble’ and that the ‘calibrated’ steps will stabilise the private property market and ‘pre-empt’ it from overheating.
Having a good feeling about that latest measures…

MND Mah Bow Tan felt he needed to assure the masses that
‘Obviously the intention is not to crash the market, but at the same time, if we don’t rein in the market, and the bubble bursts then it will be even worst for everyone concerned, the economy as well as for individual buyers,’
Just in case this turned out to be another ‘stop at two’ type of policy that will later back-fire.
But his fears were unfounded.

Even the spirits were unable to curb home sales.
NEW private homes sales stayed fairly robust in August, despite the month coinciding with the traditionally inauspicious Hungry Ghost Festival.
Sure, one could argue that the figures reported were those that pre-date the cooling measures announced in August… but if hungry ghosts also cannot stop, you think a few policies can?
It is always good to prepare a turtle-shell carrier in times of needs… so in Oct, Mah Bow Tan reported that

So if there’s a bubble and if it burst, we know who to blame — ourselves.
SM Goh also weigh in on the issue

Once again, with the ‘we’re watching you’ message.
‘We periodically act pre-emptively to let some air out of property bubbles before they burst with a bang,’
Perhaps realizing that whacking the demand is not really working, garmen moved on to tackle the supply.

A subtle hint of a new policy was introduced.
PEOPLE intending to sell their Housing Board (HDB) flats from Nov 1 will have to observe a seven-day cooling-off period before the deal can proceed.
If the designated waiting time has not been met, the HDB will reject the resale application. The seven-day period starts from the time the resale checklist has been completed until the granting of the option to purchase.
Still the peasants don’t get the hint…

More ‘We’re watching You!’ from the big shots came

Until the big man also buey tahan… and stepped forward with the clearest message yet.

The year ended on a high….

with records being broken.

But I guess we could take some comfort in knowing that the fewer people from the sandwich class are pushing up HDB resale prices.

Enter 2011
The new year started with a bang.


But analysts are happy and proclaim the increase to be ‘stabilizing’.

The latest data brings the total rise in HDB resale flat prices for 2010 to about 13.3 per cent – a fresh record for prices.
However, the 2.4 per cent fourth quarter gain is the smallest quarterly rise since the second quarter of 2009.
The highest growth rate posted in a calendar year was in 2007 when resale flat prices shot up by 16.6 per cent.
Prices for private are on the rise as well…

Meanwhile, Garmen continue to make more flats available, in hope of quashing demand for resale / private

But new flats continued to be over-subscribed.

THE latest offering of build-to-order (BTO) flats in Punggol has been oversubscribed by more than six times, continuing a recent trend in the area.
If trends continue, maybe selling my flat for $1mil is not such a crazy thought after all… I will continue to update this post, check back often. Go!!!
Update: Feb 2011
[Ok, I fell ill and got busy, hence only updating now]
Property speculators got a rude shock on 14 Jan 2011.

Fresh measures were introduced overnight to curb the relentless rising property prices.
(New measures) include hiking seller’s stamp duty to a new maximum of 16 per cent, up from 3 per cent previously, and making it payable for up to four years from the date of purchase of a property.
Anyone with an existing home loan looking to buy a second property for investment will also now need to fork out more cash and Central Provident Fund savings.
That is because the loan limit for such properties is now 60 per cent of the property’s value, down from 70 per cent previously.
The measures take effect on Friday.
Thursday’s announcement marked the fourth time in less than two years that the Government has stepped in to cool the property market here.

SCORES of buyers have withdrawn offers or walked away from thousands of dollars of deposits as the shock of the tough cooling measures reverberated through the housing market on Friday.
Agents have also reported that their phones have been running hot with worried people wanting advice.
And property shares of companies like City Developments (CDL), Keppel Land and CapitaLand fell as well with investors bailing out of the sector.
But one group was smiling on Friday: First-time buyers, who are optimistic that prices will now fall enough to allow them to get onto the private property ladder.
I think the one smiling group may have smiled too soon… because according to MBT… the measure were meant to stabilize, not help lower prices.

So up-graders, like Mr Ken Kee, featured in the next report can keep on dreaming the Singapore dream.

While speculators like Ms Angela Hou (who look really hot in the photo) can kiss her deposit bye bye.

Meanwhile, MAS warn banks not to suka suka lend money to people to buy property.

Apparently, there’s a whole bunch of heros who are taking multiple loans and investing in property heavily. I hope they have fire-proof underwear.

It is not wonder they can take out multiple loans because of our open-wide policy when it comes to getting more people into the country. People come in, need place to stay mah… use rent to cover for loan repayment lor.
It is probably the same group of heroes that continue to keep private sales hot despite the fresh measures.

Meanwhile, garmen continue to increase supply for peasantville…

And also make is harder for non-traditional family nucleus to buy these property

Anyway… analysts reported that despite the fierce measures, impact will only be felt after Q1.

The take up rate for peasantville were not as high as the previous cases.

Only 2 times over-subscribed, unlike the 6 times over-subscription for Punggol Top-Ass.
This showing pales in comparison to a January BTO launch for Punggol Topaz that received six times more applicants than there were flats on offer, and a November launch in Yishun Greenwalk that was three times oversubscribed.
Industry watchers say the Housing and Development Board’s promise to put up as many as 22,000 new flats under the BTO scheme if demand is sustained, has made many buyers more selective about the BTO launches they apply for.
In other words, although people are willing to pay crazy money for a property, they are not crazy about those at ulu locations.
Jan private property was a 3-month low, but perhaps because people busy preparing for CNY. We will see in the next few months if this persists.

Meanwhile, some private company ranked Singapore as the 5th most expensive country in terms of rent.

It is no wonder every Tom, Dick and Harry also want to buy second property and rent to ang mohs.
The hardest working in the Jan – Feb period is probably HDB. Jan 18 announce want to review the little-known siblings buy HDB scheme, Feb 15 already gao-tim the review and announced that it will be scraped.

Senior Minister of State for National Development Grace Fu on Monday told Parliament that the Housing Board would discontinue the scheme with immediate effect as it “is no longer necessary”.
It was introduced in 1990 to enable unmarried Singaporean and PR siblings to buy an HDB flat. To qualify, their parents cannot own another HDB flat and must reside overseas.
“This was necessary then because the sublet market for HDB flats and rooms was limited, and there were few viable housing options for these siblings.”
Ms Fu also revealed that only about 300 such cases got the go-ahead each year. That is less than 1 per cent of total flat transactions.
Instead of allow this same group of people to buy flats, they now expect them to rent flats, isn’t this encouraging subletting of HDB even more? I am puzzled.
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