Will the New HDB Resale Procedure affect HDB Upgraders buying a new launch?
If the HDB Resale new procedure is successful in encouraging sellers and buyers moving away from valuation with added COV, HDB prices for areas with few past transactions as reference might be facing an immediate one time price correction. For Punggol and Seng Kang with most HDB flats already selling below COV before 10 Mar 2014, there would likely be a “price correction” to reflect a more “current” transacted price instead of still basing on higher valuation reports done beforehand. Nonetheless, this correction has already been factored in with prices selling below COV.
However, the impact on HDB upgraders or aspiring HDB upgraders might be greater, why is it so?
Many HDB upgraders would use the ‘extra cash’ from COV upon selling their HDB flat as a stepping board to purchase a private property since the cash can be used for the initial down payment (for most) or to pay the ABSD – imposed on 2nd property purchase.
This would mean if COV is removed from the equation, there might be a fraction of HDB upgraders being affected by this new implementation and this might affect some with dreams of owning a private property.
Only time will tell how far the impact would reach, as with any changes or new regulations, it will take time for the market to digest the information as some will be sitting on the sideline waiting for things to unfold.
Well, for those who can afford to make a property purchase now, should they continue to wait? Those who have waited till ABSD or TDSR came into picture might be regretting postponing the purchase of a particular new launch. We won’t know what’s coming ‘tomorrow’, our Government could come out with another measure that will affect a certain group of private property buyers, hence, is it better to just sit on the sideline till chances passed or TAKE THE ACTION now?
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