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 hurried dash to make other plans. Following the imposition of new property limitations aimed at dampening the public housing market on Friday, several aspirant Housing Board resale apartment buyers upgrading from private houses have abandoned their plans entirely. Others, particularly those who have sold their private residences but have yet to purchase a HDB resale unit, are biting the bullet and renting an interim property to serve out the 15-month wait-out time imposed as part of the measures.
Private house owners must now wait 15 months after selling their current property before purchasing a non-subsidised HDB resale apartment as of Friday. According to the authorities, the measure is just temporary and will be reassessed based on overall demand and market developments. Last week, a potential buyer called John chastised him for his bad timing in selling his three-bedroom Serangoon condominium house. “Now that the condo has been sold, I am unable to return it. If I had known what was going to happen, I would not have sold it. All of my ambitions have been dashed by the swift cooling measures “said John, a thirty-something IT professional.
He purchased the condo while single, but he is now in a relationship and plans to marry and purchase a HDB resale property. He planned to spend roughly $1 million on a four- or five-room HDB resale flat in The Pinnacle At Duxton or the Dawson district of Queenstown. “Because the 15-month period is aimed at buyers like myself,” he explained, adding that he will probably postpone his wedding for a year or two until he can find a HDB resale house.
After a 15-month wait, two major initiatives to reduce the maximum amount that may be borrowed for housing loans went into effect on Friday, as the Government works to reduce demand in the HDB resale market and ensure judicious borrowing. The first stage is to raise the medium-term interest rate floor, which is used to measure and analyze borrowers’ repayment ability and, thus, loan eligibility. The second change is a lower loan-to-value limit, which means buyers can borrow less from HDB to finance their house purchase than previously.
Click the image to read the full details of report or at this link: