Hi all! Apologies I have not been updating my blog as I have been sick (severe cough) and resolving some personal problems too. It has been a very hectic 2 months for me. I have been getting a lot of queries on what the new measures will impact the property market. So here goes.
For those of you who attended my property program, I hope you have benefited from my advice not to buy mass market homes and HDB flats over the last 6 months. I expect the new measures to hit this two segments the hardest in the next few months.
You think about it, the property market( and much of everything else) depends on demand and supply. The 2 key measures of fulfilling the Minimum Occupation and lowering in bank loans are expected to hit upgraders the hardest. Many HDB upgraders are using the new found wealth due the increase in the value of their HDB homes to finance their condo aspirations. Quite a few people are caught in a jam now, but the bigger impact is the bigger hurdle preventing people from acquiring private property.
This has the net effect of lowering demand for both mass market homes and HDB flats as buyers will find it tough as they now have to choose between their private property and HDB flat. Given that mass market properties are targeted at HDB upgraders, this segment will be most impacted.
These measures does not come as a surprise. The government has to cool down the property market especially in the prices of public housing. The HDB segment is the primary source of housing for Singaporeans and the government has to keep this segment affordable. Many younger Singaporeans are not very happy that they may not be able to own their own properties, and this trend will create issues.
I am just glad that you are been told what to buy so that keeps you away from making expensive mistakes. I have told my team to invite you to a refresher session within this fortnight. I will give you a comprehensive review of the measures and its likely impact. I can only accommodate 200 participants so book your spaces early.
See you then!