Private Property Owners who Buys HDB Flats are Speculators?

Going by the statistics by HDB, they are saying that private property owners who buy HDB resale flats are speculators. This is an one-sided view and to me smacks of trying to placate Singaporeans.

Source: The Straits Times

Who is a speculator and how do one term a property buyer as a speculator? According to thefreedictionary.com, a speculator is someone who buys and resells for a profit. It can even be someone who risks losses for the possibility of considerable gains. If this is the definition used, then every property buyer/investor would be a speculator.

Source: thefreedictionary

Let's look at the bigger context of property investing in Singapore. In Singapore, there is no capital gains tax. This means that all the gains made from property investment(s) are not taxable unless you register a company to invest in properties. But if the frequency of buying and selling property by an individual is so-called "frequent", then the Inland Revenue Tax Authority will consider the individual as trading in properties and subject his gains to tax.

This to me is a fairer depiction of a speculator. In fact, in the property market, people who buy and sell within a short period of time are deemed as a speculator or flipper. For example, those who buy uncompleted properties and sell them before the development obtains its Certificate of Statutory Completion ie. subsales are known as flippers or speculators.

What the article by HDB fails to point out is the holding period of the HDB resale flats by these private property owners. If the HDB can show that these private property owners buy the resale HDB flats and sell them within a short period of time, say one to two years, then I would agree with the HDB that these people are speculators.

Please call a spade, a spade and nothing else.