Thursday, November 15, 2012

Khaw: Much more to be done in HDB market

There are clear signs that the HDB resale market is stabilising but there is much more that can be done, according to National Development Minister Khaw Boon Wan (pictured) in a Business Times report.  

Responding to a query in Parliament from MP Lee Bee Wah of Nee Soon GRC who asked whether soaring HDB resale prices is a cause for concern, Mr Khaw highlighted that the latest Resale Price Index (RPI) growth eased to just 3.9 percent in the first nine months of 2012, compared to 14.1 and 10.7 percent in 2010 and 2011 respectively.  

Despite the positive signs, he acknowledged that much more can be done.

“We have implemented a number of measures but they will take some time to work their way through the market. For example, the huge supply of new housing units will be available only over the next two to three years.”

As per a query by MP Lim Biow Chuan (Mountbatten), Mr Khaw also pointed out the success rate of HDB loans over the last three years.

Only two percent or 3,500 of the 178,000 applications were turned down between January 2010 and September 2012, mainly because these applicants had taken out two or more HDB loans previously, Mr Khaw said.

“The rejection rate is rather low, but in any case we do exercise discretion and provide sympathy where we can.”

He added that the success rate for appeals on HDB loans was “quite good” at 36 percent.

View the original article here

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