More holding on to their HDB flats

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#1
Doesn't anyone see HDB as a comfy place to live in, instead of always hankering for that private property? I've been in mine for nearly 10 years and am happy and satisfied with it.

The Straits Times
www.straitstimes.com
Published on Feb 18, 2013
More holding on to their HDB flats

Percentage who sell after minimum occupation period dips, reversing trend

By Daryl Chin

A HIGHER percentage of home owners are holding on to their Housing Board flats, reversing a trend that had been rising in the past four years.

According to data from the Housing Board yesterday, the percentage of home owners who sold their property within the year after it hit the five-year minimum occupation period (MOP) was 11.8 per cent last year.

It had been climbing steadily, from 4.3 per cent in 2008 to 18.3 per cent in 2011.

These figures are for flats bought directly from the HDB.

Property analysts say the drop can be attributed to various factors, chief among them being sky-high private property prices that deter HDB upgraders, and restrictions incurred after selling a flat.

International Property Advisor chief executive Ku Swee Yong said: "The fact that more people are reluctant to sell their flats is a sign that they have difficulty gaining entry into the private property ladder."

Another reason, he proposed, was that flat owners also believe that HDB flats have room to appreciate further, outpacing their private counterparts.

Resale HDB flat prices went up 6.6 per cent last year, while private home prices increased by 2.8 per cent.

PropNex chief executive Mohamed Ismail said the restrictions on flat ownership have also played a part.

Since August 2010, private property owners have been required to sell their existing property if they wanted to buy an HDB resale flat.

But HDB owners who have fulfilled their MOP are allowed to purchase a private property and hold on to both at the same time.

That round of measures in 2010 also revised the MOP for letting out a flat from three years to five years.

"Once you upgrade and sell your HDB flat, it's very hard to come back in again," Mr Ismail said, adding most people are cognisant of the fact that HDB flats typically give higher rental yields.

SLP International's head of research Nicholas Mak said: "It's increasingly difficult to own an investment property, so most owners would hold on to their flats, which they likely bought at subsidised prices, while building their finances to buy an additional private home."

In tandem, the number of flats being sublet out also dipped last year, according to the HDB.

Some 3.1 per cent of home owners let out their flats last year, compared with 4.8 per cent in the year before.

"There are two reasons for this," said Mr Ismail. "The first is that many flat buyers in recent years were genuinely in need of housing, while the second is that the current economic turmoil overseas means fewer families are leaving the country for work."

HDB flat owner Steve Tan, 38, said he has no plans to sell his four-room flat in Hougang, even though he would stand to make a tidy sum.

"If I sell high, I need to buy high. Far better to have a roof over my head and wait till condo prices start dipping," said the engineer.

darylc@sph.com.sg
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#2
(18-02-2013, 07:55 AM)Musicwhiz Wrote: Doesn't anyone see HDB as a comfy place to live in, instead of always hankering for that private property? I've been in mine for nearly 10 years and am happy and satisfied with it.

Well, it is not a bad idea to stay in HDB, which i did before i shifted to condo 10 years ago.

It is also added value of staying in condo, versus in HDB. The questions are the added value worth the extra $ paid, and the affordability.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#3
(18-02-2013, 07:55 AM)Musicwhiz Wrote: "Once you upgrade and sell your HDB flat, it's very hard to come back in again," Mr Ismail said, adding most people are cognisant of the fact that HDB flats typically give higher rental yields.

SLP International's head of research Nicholas Mak said: "It's increasingly difficult to own an investment property, so most owners would hold on to their flats, which they likely bought at subsidised prices, while building their finances to buy an additional private home."

I concur with these two guys. I bought my HDB flat in the 90's and I have no intention of selling it now or anytime in the future, even though the market price now is 3X more than my purchase price. At the same time, I bought a private condo in 2011 in the resale market. It is currently rented out at a net yield near to 4%. I have no intention to move into the condo as I am comfortable staying in HDB.
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#4
(18-02-2013, 10:11 AM)CityFarmer Wrote:
(18-02-2013, 07:55 AM)Musicwhiz Wrote: Doesn't anyone see HDB as a comfy place to live in, instead of always hankering for that private property? I've been in mine for nearly 10 years and am happy and satisfied with it.

Well, it is not a bad idea to stay in HDB, which i did before i shifted to condo 10 years ago.

It is also added value of staying in condo, versus in HDB. The questions are the added value worth the extra $ paid, and the affordability.

To me the most important trade-off is "privacy". As you know any vendors/characters(read-loan sharks with paint) can just just appear at your doorstep anytime of the day. So is the trade-off worth your money?
No snobbery or any offence intended.
Shalom.
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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#5
(18-02-2013, 10:31 AM)Temperament Wrote:
(18-02-2013, 10:11 AM)CityFarmer Wrote:
(18-02-2013, 07:55 AM)Musicwhiz Wrote: Doesn't anyone see HDB as a comfy place to live in, instead of always hankering for that private property? I've been in mine for nearly 10 years and am happy and satisfied with it.

Well, it is not a bad idea to stay in HDB, which i did before i shifted to condo 10 years ago.

It is also added value of staying in condo, versus in HDB. The questions are the added value worth the extra $ paid, and the affordability.

To me the most important trade-off is "privacy". As you know any vendors/characters(read-loan sharks with paint) can just just appear at your doorstep anytime of the day. So is the trade-off worth your money?
No snobbery or any offence intended.
Shalom.

yes, privacy is one added value. One example is shoes kept outside without any concern, even for my new Nike. It is a real concern to do the same when i stayed in the previous HDB unit
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#6
(14-02-2013, 01:10 AM)sgd Wrote: yes, privacy is one added value. One example is shoes kept outside without any concern, even for my new Nike. It is a real concern to do the same when i stayed in the previous HDB unit

I am more concerned whether my neighbours are good and my neighbours had not given me any troubles ever since I moved in. My neighbours for the same floor have not changed for the last 12 years and since they stay put, I also stay put.

In fact, the block is so well maintained with little abuse from the block's dwellers. The lift looks as good as it was 12 years ago.

I reckon I will regret if I move to a new flat and unluckily got myself some troublesome neighbours.
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#7
Good points brought up, thanks!

While it is true that my HDB corridor is a "common area", so far we've not had any suspicious characters lurking around, thankfully.

My neighbours are also the family-type with 2 kids each, and it's often fun to meet and greet them and let my girl say Hello to their kids. It's all very friendly and warm. And yes, most of them have been here for many years too. A new neighbour just moved in recently with one kid - also friendly and neighbourly.

So I guess it boils down to luck - if you get a floor of misfits and inconsiderate neighbours, you'd be dying to shift out.
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/
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#8
(18-02-2013, 10:58 AM)yeokiwi Wrote:
(14-02-2013, 01:10 AM)sgd Wrote: yes, privacy is one added value. One example is shoes kept outside without any concern, even for my new Nike. It is a real concern to do the same when i stayed in the previous HDB unit

I am more concerned whether my neighbours are good and my neighbours had not given me any troubles ever since I moved in. My neighbours for the same floor have not changed for the last 12 years and since they stay put, I also stay put.

In fact, the block is so well maintained with little abuse from the block's dwellers. The lift looks as good as it was 12 years ago.

I reckon I will regret if I move to a new flat and unluckily got myself some troublesome neighbours.

The important of good neighbours stays the same either in condo or in HDB. The chance of meeting "bad" neighbours does not reduce in condo versus HDB IMO Big Grin

I am lucky that no "bad" neighbours so far, both in HDB or condo
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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#9
(18-02-2013, 11:08 AM)CityFarmer Wrote:
(18-02-2013, 10:58 AM)yeokiwi Wrote:
(14-02-2013, 01:10 AM)sgd Wrote: yes, privacy is one added value. One example is shoes kept outside without any concern, even for my new Nike. It is a real concern to do the same when i stayed in the previous HDB unit

I am more concerned whether my neighbours are good and my neighbours had not given me any troubles ever since I moved in. My neighbours for the same floor have not changed for the last 12 years and since they stay put, I also stay put.

In fact, the block is so well maintained with little abuse from the block's dwellers. The lift looks as good as it was 12 years ago.

I reckon I will regret if I move to a new flat and unluckily got myself some troublesome neighbours.

The important of good neighbours stays the same either in condo or in HDB. The chance of meeting "bad" neighbours does not reduce in condo versus HDB IMO Big Grin

I am lucky that no "bad" neighbours so far, both in HDB or condo

1. Some private condos has insufficient car park lots - ugly disputes

2. My friend sits on the MC of a condo. Some owners complain the maids swim in the pool :-)

Makes more economic sense live in HDB, because the problem is left to town council to solve. If the government has a choice, they will sell land and forget about the town council complaints :-)
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#10
HDBs these days have improved a lot as well. Convenience, transport, amenities, space.
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