The latest set of cooling measures are targeted at the enbloc rich and we'll heeled downgraders buying into the resale HDB market. The trigger is likely the million dollar HDBs increasingly transacted.
Tons of blogs and posts have touched on the measures in detail, so I will not repeat ad nauseum. But then we ask, what is the impact, if any, on shoebox owners and hunters?
Popularity of smaller units may increase as a result of tighter LTV because buyer budget dropped by 5%. Perhaps now for some of us, shoebox condo and apartment units become the only viable choice due to the lower TDSR and higher loan interest reference point. Given the likelihood of interest rates breaching 4% soon it pays to be prudent and not over commit.
As long as property value is preserved there is always room for upgrade in the future. For those who are downgrading, perhaps also a good opportunity to Marie kondo stuff away so smaller spaces are still liveable.
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