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 began with disbelief, followed by a mad hurry to make alternative plans. Following the implementation of a fresh round of property restrictions aimed at damping the public housing market on Friday, some ambitious Housing Board resale flat buyers upgrading from private dwellings have abandoned their plans totally. Others, particularly those who have already sold their private homes but have yet to purchase a HDB resale apartment, are biting the bullet and renting an interim property to serve out the 15-month wait-out period, which was enforced as one of the measures.

As of Friday, private home owners must wait 15 months after selling their current property before purchasing a non-subsidised HDB resale apartment. The authorities state that it is a temporary measure that will be reviewed based on overall demand and market trends. A potential buyer named John criticized his poor timing in selling his three-bedroom Serangoon condominium house last week. “I can’t return the condo now that it’s sold. I would not have sold it if I had known what was going to happen. The rapid cooling measures have undermined all of my aspirations “said John, a technology worker in his thirties.

He bought the condo when he was single, but he is now in a relationship and intends to marry and buy a HDB resale unit. He intended to spend around $1 million for a four- or five-room HDB resale flat in The Pinnacle At Duxton or in Queenstown’s Dawson neighborhood. “Because the 15-month period is intended at buyers like myself,” he noted, adding that he will likely postpone his wedding for a year or two until he can obtain a HDB resale house.

After a 15-month wait, two significant efforts to lower the maximum amount that may be borrowed for housing loans went into effect on Friday, as the Government strives to curb demand in the HDB resale market and ensure prudent borrowing. The first step is to boost the medium-term interest rate floor, which is used to assess and analyze borrowers’ ability to repay and, as a result, their loan eligibility. The second change is a reduction in the loan-to-value limit, which implies that buyers 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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