Aspiring HDB resale flat buyers scramble to make new plans after property cooling measures introduced

by Albert02

Aspiring HDB resale flat buyers scramble to make new plans after property cooling measures introduced

Aspiring HDB resale flat buyers scramble to make new plans after property cooling measures introduced. It started with disbelief, then a mad dash to make new plans. After a new wave of property limitations aimed at dampening the public housing market went into effect on Friday, some ambitious Housing Board resale flat buyers upgrading from private houses are abandoning their plans entirely. Others, particularly those who have already sold their private houses but have yet to purchase a HDB resale flat, are biting the bullet and renting an interim property to serve out the 15-month wait-out period, one of the measures implemented.

Private home owners must wait 15 months following the sale of their current property before purchasing a non-subsidised HDB resale apartment as of Friday. According to the authorities, it is a temporary measure that will be reassessed based on overall demand and market changes. A possible buyer identified only as John bemoaned his terrible timing in selling his three-bedroom Serangoon condominium home last week. “I can’t take the condo back now that it’s sold. If I had known what was going to happen, I would not have sold it. All of my goals have been thwarted by the abrupt cooling measures “said John, who is in his thirties and works in technology.

He purchased the condo when he was single, but he has since fallen into a relationship and planned to marry and buy a HDB resale flat. He planned to spend roughly $1 million on a four- or five-room HDB resale flat at The Pinnacle @ Duxton or in the Dawson neighborhood of Queenstown. “Because the 15-month period is aimed at buyers like myself, I don’t really have a choice but to hunt for a rental unit for the time being,” he explained, adding that he will likely postpone his wedding for a year or two until he can acquire a HDB resale property.

On top of a 15-month wait, two major initiatives to reduce the maximum amount that may be borrowed for house loans went into effect on Friday, as the Government seeks to curb demand in the HDB resale market and guarantee judicious borrowing. The first is to raise the medium-term interest rate floor, which is used to calculate and analyze borrowers’ ability to repay and therefore qualify for a loan. The second is lowering the loan-to-value limit, which means purchasers can borrow less from HDB to finance their property purchase than previously.

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Source: https://www.straitstimes.com/singapore/housing/aspiring-buyers-scramble-to-make-new-plans-after-property-cooling-measures-introduced


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