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Lease Buyback: Nod for 82 out of 409 applications

Posted on 16 Sep 2009 | Comments Off

THE Housing Board has so far approved 82 applications out of 409 received for its Lease Buyback scheme.

Some applicants have been asked to delay their application while a small percentage have been rejected as they do not meet the criteria.

National Development Minister Mah Bow Tan gave the update – the figures are up to the end of last month – in a written reply released yesterday.

Mr Mah was responding to Nominated MP Terry Lee, who asked about the public response to the scheme and how many applicants were rejected.

Under the scheme introduced in March, the HDB will buy back the tail-end of a flat’s lease at market rate, leaving a 30-year lease for the household.

It pays market valuation for the lease and this money goes to the new CPF Life annuity scheme in the flat owner’s name. A $10,000 subsidy is also given – half in cash and half into CPF Life.

Mr Mah noted that there is plenty of interest in the scheme, with the HDB receiving more than 2,000 queries. Continue reading →

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Tagged HDB, HDB News, Housing Development Board, Lease Buyback

More options for property buyers, owners please

Posted on 15 Sep 2009 | Comments Off

Reviewing some of the rules would help to rein in runaway prices in the private property market

HALF-a-million dollars is a lot of money for the average young couple, but even this was not sufficient for a new five-room Design, Build and Sell flat at a recent launch. And if one aspires to a private condominium, the amount is easily doubled, resulting in a monthly loan repayment of several thousand dollars for a long time.

Along with the rising tide, prices of resale private and HDB apartments have gone up too. And new entrants hoping to get into the market via the resale route face larger cash-over-valuation demands.

Those who have a roof over their heads are at a slight advantage, as price rises may increase their ability to move if they wish. But even this is not without risk – moving up to a more expensive home could mean a steep drop should times change.

In Parliament yesterday, Minister for National Development Mah Bow Tan mentioned that we are currently seeing signs of heightened speculative activity though not extreme. The proportion of sub-sellers has increased and developers sold 10,000 units in the first seven months of this year against 4,300 for the whole of 2008. Private housing prices have also significantly increased since June.

He added that it is in everyone’s interest to have a steady property market where prices move in line with economic fundamentals. If a property bubble develops, a severe correction must take place with serious consequences for the economy and the property market. Continue reading →