... the latest Government moves, in response to the vocal minority wanting rules to rein in non-citizens from the HDB market, have proven!
As a result of new rulings recently instituted to placate those Singaporeans who can't afford to compete with permanent residents in the HDB resale market, many non-Malaysian* PRs would now have to widen their search beyond popular areas. This is because some parts of the island have already reached the limits set out in the new quota system.
Now what does this mean for Singaporeans who own HDB flats wanting either to upgrade or downgrade?
The market for their flat will be smaller as a result of the quota, if their flat is so unfortunate as to be in a block where PRs already form 8 per cent of the households. Even if their block has fewer than 8 per cent of PR households, these Singaporean owners can't breathe a sigh of relief until they determine that their neighbourhood doesn't have PRs forming 5 per cent of households.
This is what I call shooting Singaporeans in the foot!
But it serves citizen owners right, if they are among those who had been badgering the Government to rein in the PR buyers, forgetting that when their turn comes to sell, the bigger the market, the better it is for their assets.
What is even more galling about the "restrict the PRs" move is that it makes those HDB flats already owned by PRs potentially even more valuable than rising property prices have already made them.
This is because PRs without a HDB home -- who for whatever reason want to move into a block or neighbourhood where the quota is already filled -- have no choice but to buy from other PRs. So suddenly HDB flats owned by PRs in such blocks and neighbourhoods can demand from fellow PRs a premium over the asking price.
Of course the Government could stop the PRs from enjoying this unintentional benefit by decreeing that PRs in a quota filled neighbourhood wishing to sell must sell it to a Singaporean or the Government.
But I'm certain it won't be so dumb as to further complicate an already complicated move.
So far, it has been dumb enough to open the HDB resale market to all PRs. Sure, when that step was taken, the intention was good -- to allow Singaporean sellers to enjoy a larger pool of buyers.
Having taken that step, it was dumb enough to respond to those citizens who want an easy ( read "cheap") way into the HDB resale market -- by imposing the PR quota as well as by making resale buyers keep their flats longer.
As I've pointed out in my March 8 post, the move to make resale flat buyers keep their flats for three years won't bring down prices; instead, by locking up chunks of flats from the market for 36 months, the Government is effectively underwriting a better price for those who are able to sell.
How that is going to please Singaporeans whinging to buy at lower prices I don't know. I also don't know how the Government is going to appease those Singaporeans who are unitended victims of the PR quota. These have to sell to Singaporeans, at perhaps a lower price than would be the case.
Tell them that this is national service? They will tell Mr Mah Bow Tan to tell that to the marines.
*PRs refer to non-Malaysian PRs only, as the quota rules don't apply to Malaysian PRs.
4 comments:
The problem is; there is no cheaper "suburb" to move to. So sell high = buy high, to up or down-grade, unless the money is taken out of the system, eg migrate ...
On the other hand, if a mere 8% of PR in a block can easily change the "fortune" of a seller, then this must be something grave enough for the citizen of the land and their elected representatives to resolved.
After all, public housing built by the government should be, first and foremost, for the people that elected the very government that was been empowered to do so, in the 1st place.
If the 'side effect' is to enrich some PR, maybe its ok for the short term. In the medium term, perhaps a special tax could be levied, so that these beneficiaries can give some back to the very society that help enrich them.
For all those dump" or short-sighted piece-meal polices that were implemented to micro-correct this giant ship gone astray, maybe, heeding a old Chinese saying of "short pain better than long pain", a new captain should take over or a new ship launched; to bring it back to the basic that public hosing is to house the public (as a baseline) ....
Thanks, Anon!
The word is "dumb", not "dump".
Like yr idea of taxing PRs who sell to PRs!
Finally, I believe the best way to cut out all the bitching is
a) privatise all existing HDB estates and
b)just build basic no-frills flats for rent and only to those on the dole.
S'pore is so much a welfare state in some aspects that it's such a shame so many of us don't realise and appreciate it!
While having a roof over one's head is a fundamental right, owning one isn't, geddit?
Housing should be privatised.
If it has to be government run housing, it must be subsidized and sold at near-cost price. The government should not be making money off the people in something as essential as housing.
Otherwise, like I said, allow private industry to take over.
Agree, anon. Subsidise housing only for the dirt poor, like they once did in UK, with council housing. Those who can, then move out and up. Because council housing is such a stigma, it provides motivation for individual to improve his circumstances.
What's happening in S'pore is tt our public housing is so good, that the people just keep asking for more, as if the state has a duty to give everyone Queen Astrid Park type of homes.
That's plain stupid n greedy!
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