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HDB announces fourth round of cooling measures and higher grants for lower-income flat buyers

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SINGAPORE: In a statement released late on Monday night (19 August), the Housing & Development Board (HDB) and the Ministry of National Development (MND) unveiled new measures aimed at cooling the HDB resale market and providing increased support for lower-to-middle income first-time home buyers.

Starting from 20 August 2024 at 12:00am, the Loan-to-Value (LTV) limit for HDB loans will be reduced from 80% to 75%.

This adjustment aligns the LTV limit for HDB loans with that of financial institution loans, which also remains at 75%.

“Given the sustained, strong, broad-based demand for HDB resale flats, these measures will help cool the market and encourage prudent borrowing, thus making housing more affordable for lower-to-middle income first-time home buyers,” said HDB and MND in the statement.

This marks the fourth round of property cooling measures since December 2021.

Additionally, HDB will enhance financial support for first-time flat buyers in the lower-to-middle income brackets by increasing the Enhanced CPF Housing Grant (EHG) to up to S$120,000 (approximately US$91,760) for families and S$60,000 for singles.

Currently, the EHG provided up to S$80,000 in grants for families and S$40,000 for singles purchasing their first new or resale flat.

Source: HDB

During his National Day Rally speech on Sunday, Prime Minister Lawrence Wong announced the EHG increase to better support first-time home buyers, particularly those from lower-income groups.

Addressing young Singaporeans, he assured them, “Once you start work and wish to settle down, we will make sure that there is an HDB flat that is within your budget in every region.”

“We will always keep public housing in Singapore affordable for you.”

HDB & MND: Cooling measures and increased supply help curb HDB resale price growth

In its statement, the Government said earlier cooling measures and efforts to increase flat supply have helped moderate the rise in HDB resale prices.

It highlighted that HDB resale prices increased by 4.9% in 2023, a significant decrease from the 10.4% rise in 2022.

However, resale prices continued to rise by over 4 percent in the first half of 2024, attributed to “strong, broad-based demand coupled with some supply tightness, as fewer flats reached their minimum occupation period this year.”

To “further stabilise the HDB resale market and encourage flat buyers to borrow prudently,” the Government is tightening HDB loan-to-value limits.

The revised loan limit will apply to complete resale applications received by HDB on or after August 20 and to Build-to-Order flat applications from the upcoming October launch onwards.

HDB loan limits were last reduced in September 2022 from 85 percent to 80 percent as part of previous property cooling measures.

HDB and MND emphasized that the impact of the tightened loan limits on first-time buyers, especially those from lower-income households, will be mitigated by significant housing grants.

For example, eligible first-time families buying a resale flat could receive up to S$230,000 in housing grants.

This includes the revised EHG of up to S$120,000, a CPF Housing Grant of up to S$80,000, and a Proximity Housing Grant (PHG) of up to S$30,000.

Eligible singles purchasing a resale flat for the first time could receive up to S$115,000 in housing grants, which include the revised EHG of up to S$60,000, a CPF Housing Grant of up to S$40,000, and a PHG of up to S$15,000.

Maximum grant of S$60,000 for singles with average monthly income of S$750 or less

The increase in the EHG will range from S$5,000 to S$40,000 for families, and from S$2,500 to S$20,000 for singles, depending on monthly household income.

For example, families with an average monthly household income of S$1,500 or less will be eligible for the maximum grant of S$120,000.

Similarly, singles with an average monthly household income of S$750 or less will be eligible for the maximum grant of S$60,000.

HDB and MND also mentioned that home buyers with an HDB Flat Eligibility (HFE) letter, which confirms their eligibility to buy a flat and receive grants, will not need to apply for a new one. The letter will be updated to reflect the new EHG amount.

Eligible first-time buyers with a pending resale HDB flat transaction will automatically receive the additional grant, according to the authorities.

HDB and MND assure resale flats remain affordable to most home buyers

According to official data released in July, HDB resale prices have been rising steadily since the second quarter of 2020.

In July, a five-room flat at Skyoasis @ Dawson on Margaret Drive set a new record for the highest transacted price for a resale flat, selling for S$1.73 million.

July also saw a new record in the number of million-dollar HDB flats sold, with a total of 120 such transactions, 56 of which were for four-room flats.

In the first seven months of this year, 539 HDB flats were sold for at least S$1 million, compared to 470 million-dollar flats sold during the entire previous year.

Despite rising prices, HDB and MND emphasized that resale flats remain affordable for most home buyers.

They pointed out that in 2023, eight out of 10 first-time families who purchased resale flats used 25 percent or less of their monthly household income to service their HDB loans.

These buyers were generally able to cover their monthly installments using their Central Provident Fund contributions, with little to no cash outlay required.

“HDB flats that are sold at very high prices make up only a very small minority of total resale transactions,” said the authorities.

They also reaffirmed the Government’s commitment to keeping public housing affordable and accessible to Singaporeans.

“We will continue to monitor the property market closely and adjust policies as necessary to foster a stable and sustainable property market,” said HDB and MND.

The post HDB announces fourth round of cooling measures and higher grants for lower-income flat buyers appeared first on Gutzy Asia.

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Current Affairs

Reforming Singapore’s defamation laws: Preventing legal weapons against free speech

Opinion: The tragic suicide of Geno Ong, linked to the financial stress from a defamation lawsuit, raises a critical issue: Singapore’s defamation laws need reform. These laws must not be weaponized to silence individuals.

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by Alexandar Chia

This week, we hear the tragic story of the suicide of Geno Ong, with Ong citing the financial stress from the defamation lawsuit against her by Raymond Ng and Iris Koh.

Regardless of who’s right and who’s wrong, this Koh/Ng vs Ong affair raises a wider question at play – the issue of Singapore’s defamation laws and how it needs to be tightened.

Why is this needed? This is because defamation suits cannot be weaponised the way they have been in Singapore law. It cannot be used to threaten people into “shutting up”.

Article 14(2)(a) of the Constitution may permit laws to be passed to restrict free speech in the area of defamation, but it does not remove the fact that Article 14(1)(a) is still law, and it permits freedom of speech.

As such, although Article 14(2)(a) allows restrictions to be placed on freedom of speech with regard to the issue of defamation, it must not be to the extent where Article 14(1)(a)’s rights and liberties are not curtailed completely or heavily infringed on.

Sadly, that is the case with regard to precedence in defamation suits.

Let’s have a look at the defamation suit then-PM Goh Chok Tong filed against Dr Chee Soon Juan after GE 2001 for questions Dr Chee asked publicly about a $17 billion loan made to Suharto.

If we look at point 12 of the above link, in the “lawyer’s letter” sent to Dr Chee, Goh’s case of himself being defamed centred on lines Dr Chee used in his question, such as “you can run but you can’t hide”, and “did he not tell you about the $17 billion loan”?

In the West, such lines of questioning are easily understood at worse as hyperbolically figurative expressions with the gist of the meaning behind such questioning on why the loan to Suharto was made.

Unfortunately, Singapore’s defamation laws saw Dr Chee’s actions of imputing ill motives on Goh, when in the West, it is expected of incumbents to take the kind of questions Dr Chee asked, and such questions asked of incumbent office holders are not uncommon.

And the law permits pretty flimsy reasons such as “withdrawal of allegations” to be used as a deciding factor if a statement is defamatory or not – this is as per points 66-69 of the judgement.

This is not to imply or impute ill intent on Singapore courts. Rather, it shows how defamation laws in Singapore needs to be tightened, to ensure that a possible future scenario where it is weaponised as a “shut-up tool”, occurs.

These are how I suggest it is to be done –

  1. The law has to make mandatory, that for a case to go into a full lawsuit, there has to be a 3-round exchange of talking points and two attempts at legal mediation.
  2. Summary judgment should be banned from defamation suits, unless if one party fails to adduce evidence or a defence.
  3. A statement is to be proven false, hence, defamatory, if there is strictly material along with circumstantial evidence showing that the statement is false. Apologies and related should not be used as main determinants, given how many of these statements are made in the heat of the moment, from the natural feelings of threat and intimidation from a defamation suit.
  4. A question should only be considered defamatory if it has been repeated, after material facts of evidence are produced showing, beyond reasonable doubt, that the message behind the question, is “not so”, and if there is a directly mentioned subject in the question. For example, if an Opposition MP, Mr A, was found to be poisoned with a banned substance, and I ask openly on how Mr A got access to that substance, given that its banned, I can’t be found to have “defamed the government” with the question as 1) the government was not mentioned directly and 2) if the government has not produced material evidence that they indeed had no role in the poisoning affair, if they were directly mentioned.
  5. Damages should be tiered, with these tiers coded into the Defamation Act – the highest quantum of damages (i.e. those of a six-figured nature) is only to be reserved if the subject of defamation lost any form of office, revenue or position, or directly quantifiable public standing, or was subjected to criminal action, because of the act of defamation. If none of such occur, the maximum amount of damages a plaintiff in a defamation can claim is a 4-figure amount capped at $2000. This will prevent rich and powerful figures from using defamation suits and 6-figure damages to intimidate their questioners and detractors.
  6. All defendants of defamation suit should be allowed full access to legal aid schemes.

Again, this piece does not suggest bad-faith malpractice by the courts in Singapore. Rather, it is to suggest how to tighten up defamation laws to avoid it being used as the silencing hatchet.

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Current Affairs

Man arrested for alleged housebreaking and theft of mobile phones in Yishun

A 23-year-old man was arrested for allegedly breaking into a Yishun Ring Road rental flat and stealing eight mobile phones worth S$3,400 from five tenants. The Singapore Police responded swiftly on 1 September, identifying and apprehending the suspect on the same day. The man has been charged with housebreaking, which carries a potential 10-year jail term.

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SINGAPORE: A 23-year-old man has been arrested for allegedly breaking into a rental flat along Yishun Ring Road and stealing eight mobile phones from five tenants.

The incident occurred in the early hours on Sunday (1 September), according to a statement from the Singapore Police Force.

The authorities reported that they received a call for assistance at around 5 a.m. on that day.

Officers from the Woodlands Police Division quickly responded and, through ground enquiries and police camera footage, were able to identify and apprehend the suspect on the same day.

The stolen mobile phones, with an estimated total value of approximately S$3,400, were recovered hidden under a nearby bin.

The suspect was charged in court on Monday with housebreaking with the intent to commit theft.

If convicted, he could face a jail term of up to 10 years and a fine.

In light of this incident, the police have advised property owners to take precautions to prevent similar crimes.

They recommend securing all doors, windows, and other openings with good quality grilles and padlocks when leaving premises unattended, even for short periods.

The installation of burglar alarms, motion sensor lights, and CCTV cameras to cover access points is also advised. Additionally, residents are urged to avoid keeping large sums of cash and valuables in their homes.

The investigation is ongoing.

Last month, police disclosed that a recent uptick in housebreaking incidents in private residential estates across Singapore has been traced to foreign syndicates, primarily involving Chinese nationals.

Preliminary investigations indicate that these syndicates operate in small groups, targeting homes by scaling perimeter walls or fences.

The suspects are believed to be transient travelers who enter Singapore on Social Visit Passes, typically just a day or two before committing the crimes.

Before this recent surge in break-ins, housebreaking cases were on the decline, with 59 reported in the first half of this year compared to 70 during the same period last year.

However, between 1 June and 4 August 2024, there were 10 reported housebreaking incidents, predominantly in private estates around the Rail Corridor and Bukit Timah Road.

The SPF has intensified efforts to engage residents near high-risk areas by distributing crime prevention advisories, erecting alert signs, and training them to patrol their neighborhoods, leading to an increase in reports of suspicious activity.

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