Fall In Transactions Of HDB Resale Flats
September 2010 does not seem to be good for resellers compared to August. Property agents expecting cash premiums are quite worried.
Industry watchers are on the edge, as the economy affects home prices and sales volumes.
The executive director Ong Choon Fah likes the market as a pyramid with each layer providing support to the next. The question is… How can the spectrum not get affected when policies keep changing at lower levels?
It seems changes in freely buying, selling and investing flats in the late 1980’s and early 1990’s was not a wise decision.
The gulf war gave the market a little hic cup in the 1990’s but it was choking when the government allowed PRs to buy resale flats in 1989.
It proved to be a green signal when in 1991, singles aged 35 and above were allowed to buy resale flats. Strong economic growth took place along with low interest rates, private property upgraded as the flat owners took advantage of the rising prices.
It should have gone with the flow, BUT the run up took “a life of its own”. Finally in 1996 measures were taken to end this alien life form. The market was generally quiet for the rest of the year. In 1997 HDB limited flat buyers to live in their flats for the full five years before they could book private homes.
This was not the end when debilitating Asian financial crisis sank both the private and public property markets due to tighter bills. The government tried to control the tide but failed. Not to leave behind the slumping of URA Residential Price Index.
The property market spindled like a wheel in the last decade by the tightening and loosening of the policies. Whenever the government tightened the policies, it seemed a déjà-vu to the veteran industry watchers.
If a private property owner buys a nonsubsidized HDB flat, it is required for him/her to sell his private property within six months of the purchase.
History proves that rules are made to be broken or forced to be reckoned. The elasticity in policies might just prove to be a drop in sales volumes and in prices.
At the end of August, measures were announced in Singapore to cool the property market, that is , slowing property prices.
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