To prevent foreign enclaves from forming in HDB estates, the Housing and Development Board (HDB) will introduce a new quota for permanent resident (PR) families buying resale flats, Mah Bow Tan, Minister for National Development said on Friday.

Mr Mah said even though PR enclaves are not a problem today, precautionary measures should be put in place early.

PRs will be subject to quotas of 5 per cent and 8 per cent at the neighbourhood and block levels respectively.

A PR family cannot buy a flat if the neighbourhood or block already has 5 per cent or 8 per cent of flats owned by other PR-PR families.

The quota will only apply to non-Malaysian PRs. Malaysians are excluded, because of Singapore’s close historical and cultural links.

In 2009, PRs make up 14 per cent of Singapore’s resident population. But PR families own only 5 per cent of HDB flats.

Source: Business Times, 5 Mar 2010

The Housing and Development Board (HDB) will remove the upgrading condition for the second concessionary loan to households, Mah Bow Tan, Minister for National Development said on Friday.

What this means in future is that both HDB flat upgraders and those who downsize will be eligible for the second HDB loan, with the focus on helping families to right-size their housing choices, he said.

‘With greater economic volatility, the flexibility to right-size will become more important. Therefore, I have decided to remove the upgrading condition for the second concessionary loan.’

Mr Mah was responding to feedback that by providing the second concessionary loan to households only for upgrading may inadvertently drive some people to upgrade even though it may be more prudent for them not to do so.

Source: Business Times, 5 Mar 2010

There is no evidence that specific buyer groups, like permanent residents (PRs) and private property owners (PPOs) are driving up prices of HDB flats.

National Development Minister Mah Bow Tan told Parliament on Friday that the median cash-over-value (COV) paid by PRs have been the same as the overall median COV paid for resale flats for the last two quarters.

‘Cases of PRs paying high COV are the exception, not the rule,’ Mr Mah said.

He said of the 37,205 resale transactions in 2009, 58 cases had COV exceeding $70,000 (US$49,995).

Of this, only eight cases or 14 per cent involved PRs.

Mr Mah added while PPOs pay higher COVs in general, their numbers are not large enough to drive up prices.

‘If we banned PPOs from buying HDB resale flats, what about HDB owners buying private properties? Should we ban that too?’ he asked.

‘I would urge that we take a longer-term view and not over-react, and do things we regret and have to reverse down the road.’

Source: Business Times, 5 Mar 2010

To reinforce the principle of owner-occupation and reduce the possibility of speculation, HDB will be raising the minimum occupation period (MOP) for resale of nonsubsidised flats from one and 2.5 years to three years.

National Development Minister, Mah Bow Tan, told Parliament on Friday that this will align the MOP for home owners to resell and fully sublet non-subsidised flats.

The extension of MOP will apply to all flats, not just larger flats, Mr Mah said as the focus of the revised MOP is to foster owner-occupation and not about affordability per se.

Source: Business Times, 5 Mar 2010

National Development Minister Mah Bow Tan announced in Parliament on Friday changes in housing policy to promote citizenship in HDB households and encourage social integration.

To promote citizenship and reinforce the privilege that comes with it, households comprising one Singapore Citizen and one Permanent Resident (PR) will have their CPF Housing Grant reduced by S$10,000 when buying a resale flat. This will also apply to Design, Build and Sell Scheme flats and Executive Condominiums.

Should such households opt for a new flat, they will have to pay a 10,000-dollar premium on top of HDB’s selling price.

Previously, PRs married to Singapore Citizens enjoyed the same subsidies as Singaporean couples. However, HDB will restore the S$10,000 should the PR family member take up citizenship, or if the couple has a child who is Singaporean.

Furthermore, in Parliament on Friday, Members of Parliament (MPs) aired concerns over PR enclaves.

Christopher de Souza, MP, Holland-Bukit Timah GRC said: “It is natural that people feel comfortable with their own kind, from similar backgrounds and culture. However, this could lead to a situation where integration within the Singaporean community is delayed or hampered.”

In response, Mr Mah said on top of fulfilling ethnic quotas under the Ethnic Integration Policy, non-Malaysian PRs will be subject to an additional quota, at 8 per cent at the block level, and 5 per cent at the neighbourhood level. HDB said Malaysian PRs are excluded because of close historical and cultural links.

Mr Mah said: “PR enclaves are not a problem today, but as always, we try to look ahead. And if we see the trend, we should put precautionary measures in place early. Otherwise, it may be too late when the problem is already there, and you have to unravel the problem later.

“It is important that PRs integrate well in our local communities as they are long-term residents of Singapore.”

The Ethnic Integration Policy will also be revised for Indians and other ethnic races living in HDB estates. At the neighbourhood level, their quota will go up from 10 per cent to 12 per cent. At the block level, it will be 15 per cent from the current 13 per cent.

There will be no change to the ethnic quotas for Chinese and Malays. For Chinese, it is 84 per cent at the neighbourhood level and 87 per cent at the block level. For Malays, it is 22 per cent at the neighbourhood level and 25 per cent at the block level.

Source: Channel News Asia, 5 Mar 2010

The Minimum Occupation Period (MOP) for the resale of non-subsidised HDB flats has been revised upwards to three years.

Announcing the change in Parliament on Friday, National Development Minister Mah Bow Tan said the objective of such a move was to reinforce the idea that HDB flats are for owner-occupation.

He stressed that flats are not meant for speculation or short-term profit.

And with the extension of the MOP, he said the demand in the resale market will more accurately reflect the interest from buyers who are buying flats for occupation.

Non-subsidised HDB flats refer to resale flats bought without a CPF Housing Grant.

Currently, those who buy such flats with an HDB loan are subjected to an MOP of 2.5 years.

Those who take a bank loan or do not take a loan at all are subjected to an MOP of one year.

The revised MOP takes effect from Friday but existing lessees of non-subsidised flats will not be affected.

Source: Channel News Asia, 5 Mar 2010

HDB resale flat owners must occupy their flats for at least three years before they can sell them. The move is to further curb speculation in the HDB resale market.

But the board’s also extending help to genuine buyers by revising its second concessionary loan policy.

An HDB flat is meant for residents to live in not for short-term profit. It’s a message that housing authorities have repeatedly stressed in recent months.

And now, the government is acting further to keep speculators out.

From Friday, if you buy a non-subsidised resale flat without taking a CPF grant, you can only sell it after three years.

With this change, HDB said demand in the resale market will more accurately reflect the interest of genuine buyers.

Also with effect from Friday, if you buy a non-subsidised resale flat, without taking a CPF grant, you can only sell it after three years.

Previously, such buyers on an HDB loan have a minimum occupation period of two and a half years.

For those on bank loans, it’s one year.

All households can now apply for a second mortgage loan from the housing board for their next flat.

This excludes those who have disposed of their private properties.

But under new rules, they can only keep S$25,000 or half of cash proceeds, whichever is higher.

So for instance, a couple sells their existing flat first, and gets S$80,000 in cash and S$60,000 in CPF refund.

To pay for their next HDB flat, they will use half of their cash, or S$40,000, and the entire CPF refund.

In turn, HDB will grant them a loan that is S$100,000 less and the couple keeps S$40,000 in cash.

If the couple buys another flat before selling their existing one, the HDB will give them a loan based on commercial rates.

They will also have to draw down on their CPF balance.

Once they sell their old flat, say after six months, they have to redeem this loan using part of their cash proceeds and the CPF refund.

Interest on the HDB loan will then revert to concessionary rates.

Previously, only those moving to bigger flats were eligible for the loan.

But authorities said this may have driven some to upgrade even though they cannot afford it.

National Development Minister Mah Bow Tan said: “The changes to the second concessionary loan will help Singaporeans right-size to a home that they can sustain over the long term. It will help homebuyers manage their finances for their flat purchase upstream, and avoid financial difficulties downstream.”

The minister also urged buyers to choose within their means.

Source: Channel News Asia, 5 Mar 2010

The Minimum Occupation Period (MOP) for the resale of non-subsidised HDB flats has been revised upwards to three years.

Announcing the change in Parliament on Friday, National Development Minister Mah Bow Tan said the objective of such a move was to reinforce the idea that HDB flats are for owner-occupation.

He stressed that flats are not meant for speculation or short-term profit.

And with the extension of the MOP, he said the demand in the resale market will more accurately reflect the interest from buyers who are buying flats for occupation.

Non-subsidised HDB flats refer to resale flats bought without a CPF Housing Grant.

Currently, those who buy such flats with an HDB loan are subjected to an MOP of 2.5 years.

Those who take a bank loan or do not take a loan at all are subjected to an MOP of one year.

The revised MOP takes effect from Friday but existing lessees of non-subsidised flats will not be affected.

Source: Channel News Asia, 5 Mar 2010

HDB resale flat owners must occupy their flats for at least three years before they can sell them. The move is to further curb speculation in the HDB resale market.

But the board’s also extending help to genuine buyers by revising its second concessionary loan policy.

An HDB flat is meant for residents to live in not for short-term profit. It’s a message that housing authorities have repeatedly stressed in recent months.

And now, the government is acting further to keep speculators out.

From Friday, if you buy a non-subsidised resale flat without taking a CPF grant, you can only sell it after three years.

With this change, HDB said demand in the resale market will more accurately reflect the interest of genuine buyers.

Also with effect from Friday, if you buy a non-subsidised resale flat, without taking a CPF grant, you can only sell it after three years.

Previously, such buyers on an HDB loan have a minimum occupation period of two and a half years.

For those on bank loans, it’s one year.

All households can now apply for a second mortgage loan from the housing board for their next flat.

This excludes those who have disposed of their private properties.

But under new rules, they can only keep S$25,000 or half of cash proceeds, whichever is higher.

So for instance, a couple sells their existing flat first, and gets S$80,000 in cash and S$60,000 in CPF refund.

To pay for their next HDB flat, they will use half of their cash, or S$40,000, and the entire CPF refund.

In turn, HDB will grant them a loan that is S$100,000 less and the couple keeps S$40,000 in cash.

If the couple buys another flat before selling their existing one, the HDB will give them a loan based on commercial rates.

They will also have to draw down on their CPF balance.

Once they sell their old flat, say after six months, they have to redeem this loan using part of their cash proceeds and the CPF refund.

Interest on the HDB loan will then revert to concessionary rates.

Previously, only those moving to bigger flats were eligible for the loan.

But authorities said this may have driven some to upgrade even though they cannot afford it.

National Development Minister Mah Bow Tan said: “The changes to the second concessionary loan will help Singaporeans right-size to a home that they can sustain over the long term. It will help homebuyers manage their finances for their flat purchase upstream, and avoid financial difficulties downstream.”

The minister also urged buyers to choose within their means.

Source: Channel News Asia, 5 Mar 2010

The Housing and Development Board said that one in two applicants did not book a flat when invited to do so under the Build-To-Order (BTO) system.

National Development Minister Mah Bow Tan revealed this figure in Parliament on Friday. He added that the high application rates for recent BTO launches do not reflect true demand for flats.

Mr Mah noted that 22 per cent of the applications for BTO projects in the last four months are repeat applications from the same households. He gave the example of a recent BTO project, Fernvale Palms, that had just completed selection.

He said: “By the end of the selection exercise just this week, 44 per cent of first-timers who were invited to select a flat declined, did not do so.

“They were given the chance; they went, they saw, they said, ‘No, thank you, I don’t want.’ – even when all the flats were available on the first day. 34 per cent of applicants gave up their chance to select a flat.”

Members of Parliament, such as Cedric Foo and Cynthia Phua, had questioned if there was a sufficient supply of housing.

Responding to them, Mr Mah said that HDB received nearly 480 appeals in the last six months from home buyers who said they could not get a flat. But he added that only six per cent of these applicants genuinely did not have a chance to choose a flat in at least two BTO exercises in non-mature estates.

Mr Mah said that the government is committed towards helping Singaporeans own their first home. But he urged home buyers to be realistic.

He said: “It is not possible to promise every applicant who buys direct from HDB his ‘choice’ flat, at the floor of his choice; at the place of his choice; at the time of his choice; and at the price he wants. Our land is limited, especially in the mature estates. So is our housing budget, generous as it is.

“Buyers have to decide on the tradeoffs they want to make – whether they should keep on trying for their ‘choice’ flat, and delay setting up their home, or to settle first for one within their budget and move to a better flat later when they have built up their finances.”

Source: Channel News Asia, 5 Mar 2010