PRs not driving up prices
By Melissa Pang
THERE is no evidence to show that specific buyer groups such as permanent residents (PRs) and private owners are driving up flat prices.
Touching on concerns voiced by several MPs on the escalating HDB flat prices and COV (Cash-Over-Valuation) levels, Minister for National Development Mah Bow Tan said that 'cases of PRs paying high COV are the exception, not the rule'.
He said that in 2009 there were 58 cases where COV exceeded $70,000. And only eight cases, or 14 per cent, involved PRs. Another 19 per cent, or 11 cases, involved PPOs (private property owners).
Mr Mah also said that although private owners pay higher COVs in general, their numbers are not large enough to drive up prices. He urged Singaporeans to adopt 'longer-time view and not over-react, and do things we regret and have to reverse down the road'.
The minister reiterated that the HDB resale market is a free market, and should be kept that way. He also cautioned against raising the loan ceiling to cover COV as sellers would only take advantage of liberal credit to raise prices.
On subletting concerns, Mr Mah said that of the 682,000 flats that have fulfilled the Minimum Occupation Period (MOP) and are eligible for subletting, only 23,200 or 3 per cent are sublet, which suggests that most flat owners are buying their flats for occupation, and not rental.
He also assured Singaporeans that HDB will step up enforcement against unauthorised subletting of flats.
By Melissa Pang
THERE is no evidence to show that specific buyer groups such as permanent residents (PRs) and private owners are driving up flat prices.
Touching on concerns voiced by several MPs on the escalating HDB flat prices and COV (Cash-Over-Valuation) levels, Minister for National Development Mah Bow Tan said that 'cases of PRs paying high COV are the exception, not the rule'.
He said that in 2009 there were 58 cases where COV exceeded $70,000. And only eight cases, or 14 per cent, involved PRs. Another 19 per cent, or 11 cases, involved PPOs (private property owners).
Mr Mah also said that although private owners pay higher COVs in general, their numbers are not large enough to drive up prices. He urged Singaporeans to adopt 'longer-time view and not over-react, and do things we regret and have to reverse down the road'.
The minister reiterated that the HDB resale market is a free market, and should be kept that way. He also cautioned against raising the loan ceiling to cover COV as sellers would only take advantage of liberal credit to raise prices.
On subletting concerns, Mr Mah said that of the 682,000 flats that have fulfilled the Minimum Occupation Period (MOP) and are eligible for subletting, only 23,200 or 3 per cent are sublet, which suggests that most flat owners are buying their flats for occupation, and not rental.
He also assured Singaporeans that HDB will step up enforcement against unauthorised subletting of flats.
S'pore-PR couple pays more
By Jessica Cheam
By Jessica Cheam
THE Government on Friday further sharpened the differentiation in housing benefits between citizens and PRs. Currently, all Singaporean couples and a citizen-PR couple are eligible to buy new flats and apply for housing grants if they buy resale flats.
With immediate effect, a citizen-PR couple will have to pay a $10,000 premium for new HDB flat. If they buy a resale flat, they will get $10,000 less in their housing grant. For example, if a Singaporean who marries a PR is eligible for a CPF Housing Grant when they buy a resale flat, they will get $20,000, or $30,000 if they are staying near their parents, instead of $30,000 or $40,000 respectively.
However, if the PR family member eventually takes up citizenship, or the couple has a child who is a citizen, this $10,000 will be given back to them. Eligible households can apply to HDB within six months of the change in household citizenship status to claim the $10,000 Citizen Top-Up via CPF.
National Development Minister Mah Bow Tan, who announced the new policy in Parliament on Friday, said it is meant 'to provide an incentive for PRs to take up citizenship... and also reinforce the principle that Singaporeans are our priority'.
Mr Mah also pointed out that despite growing concerns of some residents or immigrants pushing up HDB flat prices, 'there is no evidence that specific buyer groups, like PRs and private property owners are driving up prices'.
As of 2009, PRs make up 14 per cent of the population living in HDB flats, but PR families own only 5 per cent of HDB flats, said Mr Mah.
With immediate effect, a citizen-PR couple will have to pay a $10,000 premium for new HDB flat. If they buy a resale flat, they will get $10,000 less in their housing grant. For example, if a Singaporean who marries a PR is eligible for a CPF Housing Grant when they buy a resale flat, they will get $20,000, or $30,000 if they are staying near their parents, instead of $30,000 or $40,000 respectively.
However, if the PR family member eventually takes up citizenship, or the couple has a child who is a citizen, this $10,000 will be given back to them. Eligible households can apply to HDB within six months of the change in household citizenship status to claim the $10,000 Citizen Top-Up via CPF.
National Development Minister Mah Bow Tan, who announced the new policy in Parliament on Friday, said it is meant 'to provide an incentive for PRs to take up citizenship... and also reinforce the principle that Singaporeans are our priority'.
Mr Mah also pointed out that despite growing concerns of some residents or immigrants pushing up HDB flat prices, 'there is no evidence that specific buyer groups, like PRs and private property owners are driving up prices'.
As of 2009, PRs make up 14 per cent of the population living in HDB flats, but PR families own only 5 per cent of HDB flats, said Mr Mah.
New flat quota for PRs
By Jessica Cheam
By Jessica Cheam
THE Government has imposed a limit on the number of flats non-Malaysian permanent residents can buy in any public housing block or estate, with immediate effect.
The quota will be set at 5 per cent for neighbourhoods and 8 per cent for blocks and will apply on top of the existing Ethnic Integration Policy (EIP).
National Development Minister Mah Bow Tan said in Parliament on Friday that this was meant to prevent foreigner enclaves in HDB estates.
'Even though PR enclaves are not a problem today, we should put precautionary measures in place early. Otherwise, it might be difficult to unravel problems later,' he cautioned. 'It is important that PRs integrate well in our local communities as they are long-term residents in Singapore.'
The HDB said PRs buy flats all over Singapore, but there are some towns in the western and northern regions where the proportion of PRs owning flats are slightly higher than the national proportion of 5 per cent.
The quota will be set at 5 per cent for neighbourhoods and 8 per cent for blocks and will apply on top of the existing Ethnic Integration Policy (EIP).
National Development Minister Mah Bow Tan said in Parliament on Friday that this was meant to prevent foreigner enclaves in HDB estates.
'Even though PR enclaves are not a problem today, we should put precautionary measures in place early. Otherwise, it might be difficult to unravel problems later,' he cautioned. 'It is important that PRs integrate well in our local communities as they are long-term residents in Singapore.'
The HDB said PRs buy flats all over Singapore, but there are some towns in the western and northern regions where the proportion of PRs owning flats are slightly higher than the national proportion of 5 per cent.
(The quota for the limit on the number of flats PRs can buy will be set at 5 per cent for neighbourhoods and 8 per cent for blocks and will apply on top of the existing Ethnic Integration Policy.)
Levy not perfect but works
By Esther Teo
MANPOWER Minister Gan Kim Yong defended Singapore's system of foreign worker levies yesterday, saying that while it is not a perfect system, it is a practical system that works.
It works because companies which desperately need foreign workers to operate can still get them, but the system also gives them incentive to cut their reliance on these workers, he said.
The foreign worker levy - which is set for its first increase come July and further hikes over the next two years till 2012 - is a fee that companies pay to employ each foreign worker.
It works in tandem with a dependency ratio, which stipulates that in order for companies to have access to foreign workers, they also have to hire locals.
Mr Gan's comments come after many MPs expressed concern during the Bud-get debate that the levy hikes will increase business costs, especially for small and medium-sized enterprises.
Companies may pass on this cost to consumers, or even leave Singapore to operate abroad, they added.
By Esther Teo
MANPOWER Minister Gan Kim Yong defended Singapore's system of foreign worker levies yesterday, saying that while it is not a perfect system, it is a practical system that works.
It works because companies which desperately need foreign workers to operate can still get them, but the system also gives them incentive to cut their reliance on these workers, he said.
The foreign worker levy - which is set for its first increase come July and further hikes over the next two years till 2012 - is a fee that companies pay to employ each foreign worker.
It works in tandem with a dependency ratio, which stipulates that in order for companies to have access to foreign workers, they also have to hire locals.
Mr Gan's comments come after many MPs expressed concern during the Bud-get debate that the levy hikes will increase business costs, especially for small and medium-sized enterprises.
Companies may pass on this cost to consumers, or even leave Singapore to operate abroad, they added.
'Foreigner' issue gets airing
By Rachel Chang
PERHAPS applying for the PAssion card, the People's Association's membership card, should be made compulsory for new arrivals.
This could get more permanent residents and new citizens to participate in community activities, suggested Dr Teo Ho Pin (Bukit Panjang).
Or maybe Inter-Racial Confidence Circles (IRCCs), present in each constituency to oversee relations among ethnic groups, could expand their remit to defusing any tension between Singaporeans and newcomers, said Mr Sam Tan (Tanjong Pagar GRC).
These were among several suggestions made yesterday by MPs on how to better integrate new arrivals in Singapore, and all had the same bottom line: More must be done to ease the strain of the influx of foreigners in the last few years.
The discontent of Singaporeans who see newcomers as competition for jobs, flats, school places and hospital beds has been well publicised.
As Ms Indranee Rajah (Tanjong Pagar GRC) put it: 'If Singapore is a family, the Singapore citizen is the biological child asking (the Government), 'Why do you care for my foster brother or sister more than me?''
By Rachel Chang
PERHAPS applying for the PAssion card, the People's Association's membership card, should be made compulsory for new arrivals.
This could get more permanent residents and new citizens to participate in community activities, suggested Dr Teo Ho Pin (Bukit Panjang).
Or maybe Inter-Racial Confidence Circles (IRCCs), present in each constituency to oversee relations among ethnic groups, could expand their remit to defusing any tension between Singaporeans and newcomers, said Mr Sam Tan (Tanjong Pagar GRC).
These were among several suggestions made yesterday by MPs on how to better integrate new arrivals in Singapore, and all had the same bottom line: More must be done to ease the strain of the influx of foreigners in the last few years.
The discontent of Singaporeans who see newcomers as competition for jobs, flats, school places and hospital beds has been well publicised.
As Ms Indranee Rajah (Tanjong Pagar GRC) put it: 'If Singapore is a family, the Singapore citizen is the biological child asking (the Government), 'Why do you care for my foster brother or sister more than me?''
Source : The Straits Times(Mar 5, 2010)
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