ST Forum : Big relief for first-time home buyers

Sep 1, 2010

STEPS TO COOL MARKET

Big relief for first-time home buyers

I REFER to yesterday's report ('Govt acts to curb speculators'). I am glad that the Government has taken the appropriate steps to rein in speculators in the red-hot property market.

Hopefully, this will prevent the property market from overheating and allow genuine buyers to come in.

Unfortunately, those who have bought their flats recently may curse their ill-timed purchase.

A friend of mine, who was looking for her first resale Housing Board flat, but was held back by the snowballing cash-over-valuation (COV) demand for many months, can start looking for her matrimonial home with confidence now.

Many recently married couples have had to rent a place or live separately in their own family homes as they could not afford the high COV.

The fast and continual appreciation of home prices would have created an asset bubble and destabilised our whole economy in the long run if it had been left unchecked.

I remember how many people chased after and bought properties at sky-high prices in 1996 - they had to sell at a massive loss when the market turned.

It is always wise to stay away from a runaway property market when everyone is chasing after it.

Gilbert Goh


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Wise move

'The real estate prices will grow at a much more sustainable rate and young couples will have a home to start a family.'

MR ADAM TAN: 'In one coordinated move, the Government has acted to supply more flats for needy buyers. With the latest measures, the real estate prices will grow at a much more sustainable rate and young couples will have a home to start a family. Diligent real estate agents will still have opportunities to earn a decent living.'

Caught in a bind

'It would be more equitable if a resale flat buyer who had signed the OTP prior to the changes is allowed to complete the transaction under the old rules.'

MR ALVIN TOH: 'The revised rules governing the purchase of an unsubsidised Housing Board resale flat do not take into consideration buyers who had signed the option to purchase (OTP) prior to the announcement ('Govt acts to curb speculators'; Aug 31), but have yet to submit the completed transaction to HDB. Such buyers would have started the purchase under one set of rules but would be governed under a totally different set of rules by the time the transaction is submitted to HDB for processing, so much so that the right to purchase itself may no longer be valid. A buyer who chooses not to exercise the OTP due to no fault of his own will be unduly penalised, with the deposit placed with the seller forfeited. Therefore, it would be more equitable if a resale flat buyer who had signed the OTP prior to the changes is allowed to complete the transaction under the old rules.'

Unfair

'A PR owning an HDB flat can buy a private property in his own country whereas a Singaporean owning an HDB flat cannot do the same here.'

MR JAMES KOH: 'One of the new measures is flawed as it runs contrary to the Prime Minister's promise to put Singaporeans first. A permanent resident (PR) owning an HDB flat can buy a private property in his own country whereas a Singaporean owning an HDB flat cannot do the same here.'