If u were KBW what policy would you implement...

[stalingrad]

If I was KBW, I would make it mandatory that no financing from banks is allowed when you purchase the 2nd and 3rd property.

One is enough. buying more than that makes you a speculator. also SSD of 16% for 10 years should be written into the constitution.

[ysyap]

If I was KBW, I would make it mandatory that no financing from banks is allowed when you purchase the 2nd and 3rd property.

One is enough. buying more than that makes you a speculator. also SSD of 16% for 10 years should be written into the constitution.

Properties are probably one of the few things that can combat Singapore's inflation rate of about 4.5%... removing that option would simply make many Singaporeans poorer and poorer!

[ysyap]

If I am KBW, I'd implement the following:

A tier of private (not public) housing in OCR to compete with private condos. This tier of housing releases condo housing like EC but is not subjected to market forces. It is totally controlled by govt. Buyers buy cheap cheap with no intention of speculation and should they decide to move, must sell back to govt, not to the market, at rates lower than prevailing market value too (because they bought low). This tier of housing effectively removes non speculators or investors from the already hot housing market. Once the development achieves 50% resale back to govt, it'll be privatized. Here, people generally will stay on to be part of the remaining 50% so difficult to achieve that. Also, govt can recover the cost of these projects if they turn private! It can achieve

1. Control of the hot OCR market prices and prevent it from rising too rapidly.
2. To be able to more effectively target the speculative housing market should the need arises.

Just my contribution to this thread!

[amk]

I think its more a sovereignty issue.

exactly ! that's the real crux of the issue. land is not a simple "economics" item. Why we tried so hard to get Malaysia give up that railway land ? this is not something that can be measured by money.

btw ysyap: SG's reserve is not as big as you think. it's only between 200-400bln USD only..

[Jonathan0503]

If I was KBW, I would make it mandatory that no financing from banks is allowed when you purchase the 2nd and 3rd property.

One is enough. buying more than that makes you a speculator. also SSD of 16% for 10 years should be written into the constitution.

Doing that will not only crash the property market but also have a detrimental effect to the economy

[ysyap]

exactly ! that's the real crux of the issue. land is not a simple "economics" item. Why we tried so hard to get Malaysia give up that railway land ? this is not something that can be measured by money.

btw ysyap: SG's reserve is not as big as you think. it's only between 200-400bln USD only..

$#@# kana bluffed with those figures but maybe when USD 1 was still S$ 2, it probably was close to S$1 trillion?

[hopeful]

why does very few people here buy Malaysian properties?
Looking at reasons given by forummers from other threads, besides the high crime rates, another reason is constant policy changes.

so hopefully, those who want to restrict or curtail foreign ownership/involvement in Singapore property market, be it resale HDB etc, learn from Malaysia experience.
Because after you restrict foreign ownership and then loosen, do you think foreign investors would still be attracted?
Just think of Malaysia experience. If you yourselves dont want to invest in Malaysia because once bitten twice shy, the same applies to foreign investors in Singapore too.

Better to build ahead of demand. You can play with supply, but dont play around with sentiment.

[rockinsg]

why does very few people here buy Malaysian properties?
Looking at reasons given by forummers from other threads, besides the high crime rates, another reason is constant policy changes.

so hopefully, those who want to restrict or curtail foreign ownership/involvement in Singapore property market, be it resale HDB etc, learn from Malaysia experience.
Because after you restrict foreign ownership and then loosen, do you think foreign investors would still be attracted?
Just think of Malaysia experience. If you yourselves dont want to invest in Malaysia because once bitten twice shy, the same applies to foreign investors in Singapore too.

Better to build ahead of demand. You can play with supply, but dont play around with sentiment.

Yupp one wrong move and all the image singapore has build over the years will be gone..

[teddybear]

You might as well say no financing for companies as well since they don't even have hard assets as collateral (unlike properties)!

If I was KBW, I would make it mandatory that no financing from banks is allowed when you purchase the 2nd and 3rd property.

One is enough. buying more than that makes you a speculator. also SSD of 16% for 10 years should be written into the constitution.

[Arcachon]

5 years ago noboby is buying, fast forward everyone is buying now.

[ysyap]

5 years ago noboby is buying, fast forward everyone is buying now.

5 years later?

[CCR]

This whole property bull run is the result of under building in the last five years.... Plus super low interest rates and tons of liquidity chasing decent returns.... I still don't understand how we can I import 1m in the last ten years and not building at least 30k units of hdb and pte condo per year for each of the last ten years....

[ysyap]

This whole property bull run is the result of under building in the last five years.... Plus super low interest rates and tons of liquidity chasing decent returns.... I still don't understand how we can I import 1m in the last ten years and not building at least 30k units of hdb and pte condo per year for each of the last ten years....

Don't bother to understand! You'll loose a few years to your lifespan... It just doesn't make sense under MBT. The feeling I had about him is he'll almost certainly dismiss all the concerns by the people by giving reasons after reasons why they can't be done in ways other than what he's proposed! On the other hand, KBW gives me a slightly different feel and only time will differentiate the two ministers! We'll see...

[amk]

Unfortunately, under a politically charged environment, sound economic decisions often have to take a back seat

... I just hope KBW, or rather LHL, are better than that !

[ysyap]

Unfortunately, under a politically charged environment, sound economic decisions often have to take a back seat

... I just hope KBW, or rather LHL, are better than that !

Since we've voted them in we must exhibit some faith in them... Not referring to those who voted them out or the foreigners who did not vote...

[linchong84]

How does a ministry works? I thought the ministers only make decision on the plans proposed by the perm sec/deputy sec/directors, etc etc etc???

So although there is a change of minister from MBT to KBW, i doubt there are changes in the working staff.. The working staff are the one who actually develop the ideas and proposals.. So if they were screwed up last time, why will they not be equally screwed up now?

Unless you are telling me last time the perm sec recommend supply to satisfy increase in population, but MBT rejected the proposal cheekily and said 'i want to screw singapore, NO SUPPLY!'

[McKinnon]

if i were him and i'm serious about biting the bullet, i will tackle the bank valuations for new launches.

now buying resale is based roughly on transacted prices, but banks match new launches at any price. with such easy financing, buyers of new launches dunnid to top up cash and still get to stagger their payments.

once the caveats are lodged, this will in turn pull up prices of neighbouring resale.

simi ssd, mop, bto, blablabla all no use one. just make banks limit valuations of new launches to 15% of neighbouring units khaw will rein in runaway prices immediately.

[linchong84]

if i were him and i'm serious about biting the bullet, i will tackle the bank valuations for new launches.

now buying resale is based roughly on transacted prices, but banks match new launches at any price. with such easy financing, buyers of new launches dunnid to top up cash and still get to stagger their payments.

once the caveats are lodged, this will in turn pull up prices of neighbouring resale.

simi ssd, mop, bto, blablabla all no use one. just make banks limit valuations of new launches to 15% of neighbouring units khaw will rein in runaway prices immediately.

Pte market has no problems now, why does KBW needs to do anything? He should leave it alone. The problems lie with public housing.

[ysyap]

if i were him and i'm serious about biting the bullet, i will tackle the bank valuations for new launches.

now buying resale is based roughly on transacted prices, but banks match new launches at any price. with such easy financing, buyers of new launches dunnid to top up cash and still get to stagger their payments.

once the caveats are lodged, this will in turn pull up prices of neighbouring resale.

simi ssd, mop, bto, blablabla all no use one. just make banks limit valuations of new launches to 15% of neighbouring units khaw will rein in runaway prices immediately.

From what I've been hearing about his style of doing things and his response to all those problems recently, I can confidently say that KBW is one who doesn't like to interfere with the private housing sector. He rather let nature take its course! He's so reluctant to introduce any cooling measures, etc. We'll just keep watching this space for new development lor... worse than watching stock market. At least stocks will have movement everyday. This housing thing can wait long long still only talk talk talk and rumours rumours rumours but nothing has taken place yet!!!

Only promise of review but no action yet! From income ceiling to now the DBSS review but not sure when will he take action...

[McKinnon]

no problem still need draconian 4 year 16% ssd?

public housing undersupply no choice liao, just accelerate supply and give more ah gong grants to couples who need to buy urgently.

Pte market has no problems now, why does KBW needs to do anything? He should leave it alone. The problems lie with public housing.

[Rysk]

Pte market has no problems now, why does KBW needs to do anything? He should leave it alone. The problems lie with public housing.

Actually KBW needs to do something on the last property measure set by MBT..

The side effect is on the last policy is.. buyers who bought pty after the last policy in Jan this year will not be selling due to the 4-yrs SSD, whether is new launched or resale.. sooner or later you will realised that sellers will be getting lesser & lesser and at the same time there is a pent up demand of buyers forming up slowly at least up to the next 4-yrs in 2015 onwards

Currently already some of the sellers are holding back as they do not wish to commit to the next house which impose by the SSD

[McKinnon]

ya u are spot on.

now properties up quite alot but if they sell have to down 40% and kenna 4 year ssd if buy replacement.

Actually KBW needs to do something on the last property measure set by MBT..

The side effect is.. buyers who bought pty after the last policy in Jan this year will not be selling due to the 4-yrs SSD, whether is new launched or resale.. sooner or later you will realised that sellers will be getting lesser & lesser and at the same time there is a pent up demand of buyers is forming up slowly at least up to the next 4-yrs in 2015 onwards

Currently already some of the sellers are holding back as they do not wish to commit to the next house which impose by the SSD

[ysyap]

Actually KBW needs to do something on the last property measure set by MBT..

The side effect is on the last policy is.. buyers who bought pty after the last policy in Jan this year will not be selling due to the 4-yrs SSD, whether is new launched or resale.. sooner or later you will realised that sellers will be getting lesser & lesser and at the same time there is a pent up demand of buyers forming up slowly at least up to the next 4-yrs in 2015 onwards

Currently already some of the sellers are holding back as they do not wish to commit to the next house which impose by the SSD

From what I understand from your post, you are pointing out two undesirable effects from CM4.

First, the 4 yr SSD will lower supply in the near future if there are an insufficient new launch for private condos, pushing prices further north.

Second, this would in term stop buyers from buying that dream home because private property prices are breaking new records and they simply don't have that 40% downpayment required because of that same CM4.

Well if this scenario is impending, then our dear minister better be prepared and start doing something about it now rather than waiting till prices are so high that its near impossible to bring it down! This imbalance would be incrementally felt over the next couple of years. Then again there are always those who have ready cash to splurge but I believe there is always a limit to how high a piece of property can climb so yes KBW must start thinking about such future problems...

[Rysk]

ya u are spot on.

now properties up quite alot but if they sell have to down 40% and kenna 4 year ssd if buy replacement.

And down the line..

1. more transaction now, meaning lesser sellers later
(Nowadays is like.. if a person occupied a seat, you can forget that he will leave the seat soon.. you better move-on & look for another empty seat.. if you are slow again.. is gone again)
2. less sellers and more pent-up demand buyers
3. even sellers were to sell.. those sellers will be asking at a higher price
4. resale will be in demand.. and forcing many buyers to grab it or turn to new launch if no choice
5. developers take the opportunity to increase price giving the resale market follow suit again

[teddybear]

So less and less sellers, but more and more buyers as economy improves, paper money keep being printed, inflation remains high, ...!!!
They should just remove that 4-yrs 16% SSD!
The 60% LTV is already good enough!

Actually KBW needs to do something on the last property measure set by MBT..

The side effect is on the last policy is.. buyers who bought pty after the last policy in Jan this year will not be selling due to the 4-yrs SSD, whether is new launched or resale.. sooner or later you will realised that sellers will be getting lesser & lesser and at the same time there is a pent up demand of buyers forming up slowly at least up to the next 4-yrs in 2015 onwards

Currently already some of the sellers are holding back as they do not wish to commit to the next house which impose by the SSD

[ysyap]

So less and less sellers, but more and more buyers as economy improves, paper money keep being printed, inflation remains high, ...!!!
They should just remove that 4-yrs 16% SSD!
The 60% LTV is already good enough!

Agreed... maybe if unsure, just test market with 2 yr SSD and see how the market respond before removing it totally...

[Rysk]

Last time when market is good when price keep increasing.. Saturday classified section up to 2-3 pages just for dist. 9/10 alone.. sellers & agent happily selling like advertisement is foc.. see till you blur

Now again market is good.. but not as many ads as before.. mostly is new launch ads

[kingkong1984]

Nope, SSD curb flipping, maybe LTV can be reduced eventually to 85 n 70 percent.

[Rysk]

Think KBW will be in trouble by the SSD set by MBT

If remove the SSD.. price will shoot up sooner than later..
If remain the SSD.. price will shoot up later rather than sooner..

[devilplate]

So less and less sellers, but more and more buyers as economy improves, paper money keep being printed, inflation remains high, ...!!!
They should just remove that 4-yrs 16% SSD!
The 60% LTV is already good enough!

Other den ccr/ocr debate, our thoughts r quite aligned...

Less sellers definitely n resale asking px for ocr is ridiculousyly high.....cm4 make it worse for ppl genuinely looking for homestay

Now most sellers mentality is: ask 10-20% above valuation....only sell when offer is vy tempting.....i m one of them

Replacement cost is way too high.....jus collect rental n enjoy low int rate for at least another yr