“Property buyers who have difficulties in making payments because of the Covid-19 pandemic can get temporary reprieve under a new law to.. defer making progress payments to developers and HDB from Feb 1 until Oct 19.”
Quote from The Straits Times
This is actually a very good initiative by the Government to protect buyers who purchased a property before 25 March 2020 from losing their option or downpayment monies during the Covid-19 period.
Similar to the earlier temporary relief measures that allow property owners to defer mortgage payments by 6 months and additional 6 months for married Singaporean couples to apply for ABSD remission, the Government’s objective over here is crystal clear – protect Singapore’s property market from crashing.
Nowhere in the world can we find a Government so determined to ensure property prices stay in the green. Because they were the ones who sold the idea of home ownership to us to begin with.
The whole idea of protecting property prices is to actually save the Government from future pains. Sharp surges or drops in property prices could have a detrimental impact for current property owners and future property purchasers (our next generation).
Do note that this temporary relief measure is only applicable for HDB and new launch purchases direct from developer, not resale properties.
“This is not a free pass for a buyer to terminate a purchase contract with a developer. This also does not cover a sale and purchase contract of a resale property”
Quote from Mr Karamjit Singh, chief executive of Showsuite Consultancy
However, the Government has also indicated this is not a measure to be exploited by clients who are not affected by the virus situation and simple have buyer’s remorse. Buyers and developers must make attempts to come to a win-win situation without aborting the case unless an agreement cannot be reached.
If anything, this only makes Singapore look like an even better country to purchase or invest in a property. Don’t you think? RET
Got a question? Contact Reuel Eugene Tay at +65 9833 6450 for a real estate discussion.
Source:
The Straits Times, 13 May 2020
https://www.straitstimes.com/business/property-buyers-get-temporary-reprieve-from-making-payments-under-covid-19-law
Reuel Eugene Tay 