Govt Will Address Housing Concerns For Singles - Pm Lee

[gymcub]

Just heard on National Day Rally that the Govt will look into the concerns faced by singles about buying HDB flats directly from HDB.

Current rules is that singles can only buy directly from HDB after 35 years old.

PM Lee has directed MND and Minister Khaw Boon Wan to look into it.

Good news!

[gstc82]

Current rule is u can't buy direct from hdb if u r single. Singles can buy resale after 35 year old.

[MobyDick]

Just heard on National Day Rally that the Govt will look into the concerns faced by singles about buying HDB flats directly from HDB.

Current rules is that singles can only buy directly from HDB after 35 years old.

PM Lee has directed MND and Minister Khaw Boon Wan to look into it.

Good news!

Would be good if they allow singles to buy new flats/ project from HDB. But I doubt they will allow that as more people might delay in setting up family. They might revise the age limit given that youngsters nowadays can afford private properties.

[HendryTan]

With 20-30% of people not getting married. It is important that the country make sure that this significant segment of Singaporean feels that we're not discriminated and we want to call this place HOME too. This move is the correct direction.

However I am reserving full praise until the details are revealed.

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http://www.singstat.gov.sg/stats/themes/people/popinbrief2011.pdf

Singlehood, as of June 2010

Proportion of singles among citizen males for age group (%)

30-34 years 43.1

35-39 years 23.9

40-44 years 17.2

45-49 years 14.3

Proportion of singles among citizen females for age group (%)

30-34 years 30.6

35-39 years 20.0

40-44 years 15.6

45-49 years 13.6

[gstc82]

Pirority will still be given to married couples, maybe singles will be allowed to buy "left overs"? But I think subsidies will be increased.

[taxme7]

Maybe limit to 3 room flats only. Let's wait and see.

[XiaoYuEr]

Just heard on National Day Rally that the Govt will look into the concerns faced by singles about buying HDB flats directly from HDB.

Current rules is that singles can only buy directly from HDB after 35 years old.

PM Lee has directed MND and Minister Khaw Boon Wan to look into it.

Good news!

Anyone has the link to that segment of the rally? Thanks in advance!

[Guest single]

i have a good suggestion allow single to rent studio flat from the gov instead of buying a resale one. this will be less stress for single . at the end of the day when a single die the rented flat can go back to the gov.if is a resale flat the assets will landed to some one else after he die.

[gstc82]

Singles shd be allowed to buy a flat direct from hdb once! What's with the talk abt stress? Than don't buy lor.

[HendryTan]

1. Govt Ideological Position on Family

The Govt Ideological Position of the "Family as a key Social Unit".

It is this reason that they Singles are "discriminated" in buying of HDB housing and other tax subsidies.

But with social trend of people staying Single, getting Divorced etc, it is something the Govt cannot ignore. In fact with 20-30% of Singaporeans being Single. They have to re-look this ideological position as they cannot ignore this 20-30% of the electorate.

I believe the announcement tonight at the Rally is the start of this new-relook.

2. HDB Subsidy

As the subsidy by the Government for HDB flat is a "Market Subsidy" and NOT a "Real Subsidy".

There is therefore NO REAL Dollar Deficit for the Government to sell more flats except an accounting one.

So selling more flats will NOT hurt the pocket of the Government.

3. Supply of HDB flat.

The shortage of HDB flats was the policy mistake of the previous MND Minister.

It has in a big way solved by the new MND Minister when he increased the supply of HDB flats rapidly. By the time they confirmed this single purchase policy, I believe the HDB flat shortage issue would have being licked.

4. Finally I believe the Government recognised that they cannot hold on to their "Family" idealogical position blindly. Statistically with 20-30% of the population single. Not all of them can afford resale flats, it means also a big portion do NOT have their own roof. Ignoring this will create a lot of social problems of homeless singles in the coming 10-20 years.

It is good to channel the spending power of this group to spend "wisely" on housing instead of spending their money in travel/casinos/pubs and leaving their later years to the Government.

This 20-30% may also be more likely to take "extreme" decisions. Good to root them down to Singapore with a HDB flat.

5. It is a win-win position for Government and 20-30% Singles.

6. I am looking at this as a first sign the Government is recognising the new reality in their review of their "Family" policy.

Cheers !

[gymcub]

"Even singles can look forward to something. Mr Lee said the Ministry of National Development is looking into whether singles will be eligible to buy flats directly from the Housing and Development Board."

http://www.channelnewsasia.com/stories/singaporelocalnews/view/1222260/1/.html

[Why?]

The devils are in the details. I suspect the followign might be the case:

1. Ballot will give the couple first, so good locations and unit will give them first.

Single, may not get the ideal unit or ambience they wanted.

2. Price of HDB might rise further due to competition, no different from

the price of getting resale flat at choiced locations. The different is you don't haveto fork up huge cash for COV since many single may not have much savings yet.

3. Single may only buy 3-room from HDB, bigger than that not allowed

4. There may not be many 3-room being built, even if they are it may not be within your

convenient locations (for visiting parents, guests, work tranport). Thus you may

end up buying re-sale flat instead.

5. You can only buy once from HDB or they probably force you to take the balloted unit you

are not comfortable with. If you reject their offer, you are not entitled to reapply and

join the 2nd batch of balloting anywhere.

6. The new HDB flat might be build even much smaller than now knowing single are going to join the queue now.

7. They may not allow you to sell after you bought the new flat for a certain number of years. Probably extended from 5 to 10 years?

8. They might reverse the required age upward from 35 to 40yo? If you fall below 40, you are

not eligible unless you want to buy from resale.

I really hope the govt can build more 2-room studio apartament specially for singles only. It should be affordable (in the range of less than $150,000) and comes with 99 years lease too. Renting the studio apartment (as the above suggested) is not advisable because the monthly rental is almost equivalent to the monthly installment paid. If you are the "owner", you can choose to sell your studio and live with your friend from another studio during your old age and with the money gained, share the cost with him for harbouring you until you go heaven. Studio apartments also enable govt to centralise and consolidate all singles into certain area of singapore to look after their needs and well beings rather than having them scattered in every part of this island. Nursing home, clinics or other old people amnenities can be build easily within that designated zone area. Now all the singles are like sand on the floor, difficult to find them and help them out when they are single or lonely. Best is to allow more signle to downgrade to new studio apartment and liquidate their existing HDB flat for cash.

So, having new HDB for single might or might not be a blessing. The only tangible benefit I can think of is - NEW, not much renovations is needed to spruce up your flat.

Edited August 27, 2012 by Why?

[Guest single talk]

dunt understand y single need to buy flat to stress themselve? cant just the gov allow single to rent directly from the gov.ppl buy flat because they want to have a family , single buy flat for orgy .. might as well keep the money and travel .

[gstc82]

No. As I for one will not allow our state dollars to subsidize rental flats to those who can afford it. I am also not for purpose build housing for singles as in the lOng run, won't these places be like "death camps" for the old to die?

[-zee-]

-singletalk-, pls do not discriminate. not all of us like orgies.

Abt time the government is sparing a thought abt the 'singles' like us. I will look forward to buying a house with my partner and settle down in our own house.

Edited August 27, 2012 by -zee-

[Guest singletalk]

zee. the gov have already spar a thought for singles many years ago , those age 35 can start buying 3 rm flats , they even give 15k as subsidy, is the price now that is rocket high that u guys cant afford it anymore, even my friend who is a banker and age 40 can t afford to come out the cash section. wat talking u.u mean lovers buy flat stay together , relationship won t go sour? rental flat per month for a 1 rm 1 hall is only $50 per month set by the gov. i dun see there is a need to buy . use yr brain .

[gstc82]

Your banker friend can't come out abt 15k cash for a 3rm flat? Really?

[gstc82]

Your banker friend can't come out abt 15k cash for a 3rm flat? Really? I am not for rental at heavily subsidies. Those are ment for the really really poor.

[Guest Guest]

yeah....i would rather buy a brand new flat than a resales one. even if it is selling same price as resales, at least its NEW and i heard stories about resales deal went bad!

give me those rejected units ppl dont want, i dont mind!! beggars cant choose.

[gymcub]

Blog post by Minister Khaw Boon Wan tonight

Singles, I Hear You

Since I joined MND last year, I have often received suggestions and feedback from Singaporeans that HDB new flats should also be made available to singles. Currently, they (above 35) can only buy resale flats, but not new HDB flats.

To these requests, I have routinely given an interim reply: I hear you. I know your wishes to have a roof of your own. But let me tackle the more urgent needs of the married couples first, especially the first-timers.

I am grateful that the singles have been patient and understanding. Thank you.

Last year, I focused attention on the first-timers and we have produced good results.

I have now begun to focus on second-timers. These are still early days, and results will take a few more months to show. This means going into next year. But I am confident that we will have results to show eventually.

This has allowed me to begin to think about how to address the singles’ housing needs.

Since PM’s ND Rally, many more comments and suggestions have surfaced.

Some are quite sound. For example:

- Allowing singles to buy BTO flats should not be at the severe expense of married couples;

- There must be some restrictions on the type of flats that singles are allowed to buy;

- Singles should not be allowed to rent out the flats;

- If two singles with 2 BTO flats subsequently get married, one of the flats should be sold;

- There must be a difference between the subsidy received by a single and a married couple.

There were other suggestions.

For example:

- The flats sold to singles should be of shorter lease and longer MOP;

- A higher (than 35) age threshold should be imposed on such BTO applicants.

Property analysts have added to the debate, commenting on the impact of such a policy on the resale market, and in particular on the “shoe-box” market.

I am glad that many Singaporeans have given thoughts to this topic. That is the value of such national conversation, creating a forum for interested Singaporeans to share their views and suggestions on a common topic. The Government cannot obviously accept all suggestions, but the informal nature of the consultation allows all views and ideas to be aired and duly considered.

I will continue to mull over this issue. In any case, I cannot hurry too much as firstly, I need to focus on the immediate needs of the second-timers until they are largely addressed next year. Secondly, I want to have a better handle over the likely additional demand on new HDB flats when we open the scheme to singles. The additional demand is unlikely to be small and if we misjudge, the interests of the married couples, especially those with children, may be adversely affected.

I suppose one practical approach given the difficulty of assessing demand, is to adopt an incremental approach to implementation. We can start the scheme with some initial restrictions (e.g. on flat type). This way, we can better ensure the scheme meets the needs of the singles, while still protecting the interests of the married couples.

Another logical way is to launch a larger number of BTO flats next year. Question is what should that magical number be. This requires some study, and market research. Hence, I need some time.

Meanwhile, please continue to let me have your views and suggestions.

http://mndsingapore.wordpress.com/2012/09/08/singles-i-hear-you/

[Guest faynic]

I hope they won't increase the age threshold. I am still waiting patiently for 6 more years to get my own flat, don't wanna wait longer....

[Netizen]

Yes, good news indeed but to some, like me, this good news come a little late.

I bought my flat few years back from the resale market and I am now servicing the hefty housing loan. I would have taken the step to purchase, or wait to purchase from HDB if this option is announced earlier. I believe this figure is substantial and doesn't come overnight to warrant a review of its policies for singles.

I am not sure the new policy would allow me to sell away my current flat and buy a new one from HDB? Having a cheaper flat would mean I need not have to struggle hard to meet my financial commitments, housing loan being one of the bigger share of my obligations.

Edited September 11, 2012 by Netizen

[Guest guest]

if the gov allow all singles to buy new flats? i think the market will be upside down with many singles straight or gay will start to buy and couple will not get married kept 2 flats for rental purposes. those existing singles with present flats will sell away and also apply for new flats.gov than will have another big headache.l i would suggest gov to build shoe box flats for singles to buy direct from them.

[alien]

I believe they wld not allow singles to rent out the flat if they allowed singles to buy BTO. Anyway, indeed gd news for singles, cos it is so much cheaper to buy BTO than resale flat. I wld not mind if they dun allow to rent out the flat, cos the reason of buying a flat is to have my own hse rather than using it to earn money.

Edited September 11, 2012 by alien

[Guest Gay guest]

If Singles are allowed to buy flats direct from HDB, who will bother to get married?

[joshboy]

1. Govt Ideological Position on Family

The Govt Ideological Position of the "Family as a key Social Unit".

It is this reason that they Singles are "discriminated" in buying of HDB housing and other tax subsidies.

But with social trend of people staying Single, getting Divorced etc, it is something the Govt cannot ignore. In fact with 20-30% of Singaporeans being Single. They have to re-look this ideological position as they cannot ignore this 20-30% of the electorate.

I believe the announcement tonight at the Rally is the start of this new-relook.

2. HDB Subsidy

As the subsidy by the Government for HDB flat is a "Market Subsidy" and NOT a "Real Subsidy".

There is therefore NO REAL Dollar Deficit for the Government to sell more flats except an accounting one.

So selling more flats will NOT hurt the pocket of the Government.

3. Supply of HDB flat.

The shortage of HDB flats was the policy mistake of the previous MND Minister.

It has in a big way solved by the new MND Minister when he increased the supply of HDB flats rapidly. By the time they confirmed this single purchase policy, I believe the HDB flat shortage issue would have being licked.

4. Finally I believe the Government recognised that they cannot hold on to their "Family" idealogical position blindly. Statistically with 20-30% of the population single. Not all of them can afford resale flats, it means also a big portion do NOT have their own roof. Ignoring this will create a lot of social problems of homeless singles in the coming 10-20 years.

It is good to channel the spending power of this group to spend "wisely" on housing instead of spending their money in travel/casinos/pubs and leaving their later years to the Government.

This 20-30% may also be more likely to take "extreme" decisions. Good to root them down to Singapore with a HDB flat.

5. It is a win-win position for Government and 20-30% Singles.

6. I am looking at this as a first sign the Government is recognising the new reality in their review of their "Family" policy.

Cheers !

2. Yes it is a market subsidy, however MND do need to "Buy" the land at COST (or slightly cheaper), but it is a real subsidy because land cost is NOT zero. MND has a fixed budget and it is incurring a loss every year. MND will need to justify for the money they spent to MOF every year for budget

3. It wasn't a mistake per se. The BTO system has been working well for many years, however due o the swift rebound from 2007 subprime crisis (and flats take 2-3 years to build), there was a sudden influx of buyers cos of sentiments and kiasuism. During 1990s, the RFS scheme, they had a huge surplus of flats and the opposition kept whacking them on why waste money to build empty flats.

6. Howabout 2 single couples each having their own flat and decided to get married? Then one (or both) will have to sell, and they wouldn't want that cause they will "lose money" and "lose out", unless HDB allow them to buy another direct (and bigger) flat, then ALL single couples will first each buy a house, profit off that, and then buy a 4 room together.

current scheme is fine, many friends are using the scheme and subsidy 15k-20k to buy a resale flat.

[Guest greed]

if can buy new flats than every singles will start selling their present property , make profit and apply for new flats.and with the 200 k profit after selling , get new flats is a good way to retire in singapore.bet the married coupple will fake divource and apply for 2 new flats as well. when market is good they will sell and profit cash.

[MobyDick]

To further moderate the demand for HDB flats, the government has also introduced several new measures.

It will tighten eligibility for loans to buy HDB flats. The Mortgage Servicing Ratio (MSR) for housing loans granted by financial institutions will be capped at 30 percent of a borrower's gross monthly income.

For loans granted by HDB, the MSR cap will be lowered from 40 percent to 35 percent.

Permanent residents (PRs) who own a HDB flat will also not be allowed to sublet their entire flat.

PRs who own a HDB flat must sell their flat within six months of purchasing a private residential property in Singapore.

http://www.channelnewsasia.com/stories/singaporelocalnews/view/1247359/1/.html