consider ways to discourage home owners from cashing out fro

we sacrifice SG

With the prices of HDB flats at an all-time high, an increasing number of Singaporeans are selling their flats to make a quick buck.

Some of them return to HDB to seek help with housing after selling their flats to pay off debts or buy luxury items.

The PAP is now studying ways to discourage them from doing so, revealed National Development Minister Mah Bow Tan to the Straits Times.

“There are many different options that we have to look at, one of which is to see how we can transfer some of the subsidy that is given when the flat is purchased, whether we transfer it into his CPF for retirement or medical expenses or to buy another flat…to make sure they don’t take it out as cash and spend it away,” he was quoted as saying in the Straits Times.

Though no concrete ideas have been floated yet, Prime Minister Lee Hsien Loong suggested a few weeks ago to lock the profits from the sale of HDB flats into the CPF accounts of sellers.

The plan, if introduced is likely to be unpopular among Singaporeans as they are unable to cash out on their HDB flats.

The prices of HDB flats have sky-rocketed in recent years due to rising demand fueled by immigration in the face of limited supply of new flats.

With the prices on an upward trend, it is not likely that flat sellers are able to make much profits from the sale of their flats unless they downgrade to a smaller flat or leave Singapore and live elsewhere altogether.

Mr Mah, who admitted that he was “caught off-guard” by the astronomical prices of HDB flats has been put on the defensive lately by accusations from Singaporeans that he has not done enough to control the prices.

The combative Mah retaliated by blaming Singaporeans for being “fussy” and showing obscure charts and figures to substantiate his claims that HDB flats remain “affordable” in Singapore.

The increasingly unpopular Mah may prove to be a liability to the PAP in the next general election due by 2011.

PAP strongman Lee Kuan Yew dismissed the threat to Mr Mah’s position by calling Singaporeans “daft” if they dare to vote Mr Mah out of office.

http://www.temasekreview.com/2010/04/07/pap-to-consider-ways-to-discourage-home-owners-from-cashing-out-from-their-flats-prematurely

angel7030 SG

If a person is willing to buy your flat at $900,000, if you dun sell, that is a big mistake in life. As much as money is the key way of life in Singapore and perhaps the world, how can the govt blame the citizens for cashing out by selling their flat? In the first place, the govt put a carrot into it, calling is free market, and now, you start to feel the urgency in doing something to remove the carrot, is it a bit too late?? We paid Minister skyrocket paid to be proactive, not postactive ya

the Bear SG

as long as there are stupid people out there willing to buy the places for that high prices, the rest of us can only wait..

until the market runs out of stupid people... the bubble will burst...

but that being said, the gabrament will do its utmost to armour-plate that bubble..

they do not want a market correction which will ruin a lot of people out there...

but you can't protect a bubble forever.. so when the people wise up or runs out of stupids, there will be a correction which will hurt a lot of people out there..

and frankly, they deserve it

angel7030 SG

well, the people are mostly foreigners, ready with cold hard cash to bubble your HDB prices to the sky, and in the end, the poor singaporeans can't even afford it, HDB is mend for housing people from lower to mid class, from attap hut to flat with running water?? where are their initiative objectives of building HDB??? Isn't suppose to be providing affordable houses to all Singaporeans??? same goes to POSB, from a saving notion to help lower people to save, to an financial institute that do business with the world.

$900,000 with tax and Gst, u go calculate how much govt earn?? That is why they are not going to curb the prices, if you look at it, they are trying to get your cold hard cash profit into CPF so that they can manipulate it. There is nothing said to change or control the prices...

jojobeach SG

Gahmen keeps promoting that 99 year lease pigeon hole as an

" ASSET".

They call it "home ownership" (We all know it's not) . So they can price it a EXHORBITANT rate.

Give me a $30,000 HDB flat for 10 years, I will be happy to lease it and they can have it back at the end of lease or allow me to extend it. At that price I don't care if the HDB is my EXPENSE. And I will not be as "choosy" because it is not an ASSET.

HDB is NOT the only way to accumulate my ASSET.

An "Investment" that requires IMPORTING foreigners to drum up demand so prices can increase is just STUPID.

I rather the pigeon hole is just a roof over my head.

jojobeach SG

Singaporeans wouldn't give a hoot about foreigner's cold hard cash and the freaking resale bubble if they do not have to purchase a RESALE.

The foreigners can go sell their left over lease to other foreigners.

Let Singaporeans purchase the lease directly from HDB. So they do not have to dip into the resale market.

BJK SG

The best way is to impose occupation period of 10 years before flat owners can sell their flats. I would like to urge HDB to go back to basic like those in 70’s. Build one to five rooms flats and allocation be made only for Singaporeans.