ST : Upgraders get warm feeling from cooling measures

15 JAN 2011,
property measures

Upgraders get warm feeling from cooling measures

UPGRADERS like Mr Ken Kee, 33, are feeling optimistic in the wake of the property market cooling measures announced on Thursday.

The manager, who rents a four-room flat in Sembawang, believes the latest government rulings will dampen speculation and improve their chances of landing their dream homes.

Mr Kee, whose joint income with his wife is less than $7,000, has three sons, aged eight, six and one.

He previously owned a four-room flat in Sembawang, which was bought for $212,000 in 2003 and sold for $380,000 in December.

His dream was to own either an Executive Condominium (EC) or a private property.

Now with the latest measures in place, he is hopeful that prices will head downwards.

As his mortgage has been fully paid up, he is not affected by the new rules which stipulate that buyers with outstanding mortgages must pay at least 40 per cent of the property price up front and in cash.

Instead, he needs to pay only 20 per cent up front and can borrow up to 80 per cent.

While he is glad that the new measures could mean less competition from speculators, he also knows that he cannot own private property and also invest in a resale HDB flat.

The measures introduced on Aug 30 last year stipulate that owners must sell their private properties after buying resale flats.

That said, however, he remains upbeat: 'Since there is a lot of uncertainty in the market now, I think this is the best time to go in, before prices inch upwards again.'

DARYL CHIN