Price index for private homes

Price index for private homes

Excerpt of Private Homes Price Index
What it is
This shows the overall price movements of all types of private homes.
It is based on caveats lodged and captures only the purchase price of the property, excluding other fees such as stamp duties or commission.
Collective sales are excluded because these are usually done at prices higher than individual deals.
Buyers typically lodge a caveat to protect their interests on a property after they have exercised an option to buy or have signed a sale and purchase agreement. The table below shows that prices of private homes rose 8.3 per cent in the second quarter, compared with a rise of 4.8 per cent in the first quarter.
Why it is important
This tracks the price movement of private properties over time, providing a quick, overall idea of market performance. It is widely used by property industry professionals as an indication of how the market is performing in terms of prices.

Source :  Straits Times - 19 Aug 2007

Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
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Crowded Orchard Rd waits for smoother lane

Crowded Orchard Rd waits for smoother lane
STB consulting industry players before announcing plans to bring more zip to Singapore’s retail heart
By ARTHUR SIM
(SINGAPORE) It is at the heart of Singapore’s retail sector, but with an estimated 1.5 million visitors flocking to Orchard Road every week, it could do with some serious help.
Less fuss, more buzz soon: STB says details of pedestrian mall improvement works on Orchard Road will be released shortly. But retailers are keener on an amelioration of the traffic situation, which they say is so bad that it requires an in-depth overhaul, not just cosmetic surgery.
That could come soon, with the announcement of a masterplan by the Singapore Tourism Board (STB). Retailers, however, say that the traffic situation is serious enough to warrant an in-depth overhaul, rather than just cosmetic surgery.

STB would not say what is in store except that details of pedestrian mall improvement works would be released shortly.

Sources, however, say that there are plans to reduce the number of lanes on Orchard Road and widen the pedestrian mall. And there could also be a separate initiative by the government to provide covered linkages between the malls.

It is understood that STB had recently engaged Orchard Road stakeholders for their views and is now in the process of re-evaluating this feedback.

The $40 million makeover was first mooted in Parliament in early 2005.

A year later, the inter-agency Orchard Road Rejuvenation Taskforce (ORRT) said that the work to transform the shopping strip would begin in early 2007.

Work has yet to begin in earnest - save for a crosswalk lighting project at Bideford Junction - and the hold-up appears to be the proposed plan to reduce the number of lanes in Orchard Road, as well as the cost of improved infrastructure like covered linkways.

Singapore Retailers Association executive director Lau Chuen Wei said that what retailers and businesses want is a solution to the traffic flow, ’so that people going to Orchard Road can navigate the junctions, side roads and merging traffic more easily’. She added: ‘Closing off a lane to make way for pretty trees and lamp-posts is not really a solution.’

There are no secondary service roads for certain stretches of Orchard Road, so goods deliveries have to be made via the main thoroughfare, clogging up lanes. ‘What Orchard Road needs urgently is an in-depth study of traffic flow to ease congestion. It’s not a matter of imposing toll charges, but actual infrastructure,’ Ms Lau said.

There have been suggestions that a whole system of covered linkways and underground passages be built to improve connectivity, but Steven Goh, spokesman for the Orchard Road Business Association, notes that some of the existing underground links are not really utilised.

Cushman & Wakefield (C&W) managing director Donald Han reckons $40 million may be enough for ‘cosmetic surgery’ like the provision of street furniture and interactive street light crossings but may not be enough for ‘major transplant operations’ such as providing more subsidies for shopping centre owners to link buildings.

Orchard Road is nevertheless popular. In a recent C&W report, it was noted that Orchard Road sees about 1.5 million visitors every week. And even if it is not the most popular shopping street in the world, it is at least ranked by C&W as the 13th most expensive in terms of rental.

Mr Han said: ‘To be fair, the Urban Redevelopment Authority and STB have gone a long way in their efforts to revitalise Orchard Road.’ There are now street vendors, kiosks, restaurants, coffee bars on the walkways. ‘In the past, these were not allowed,’ he added.

The real revamp of Orchard Road is likely to be in the hands of developers like Hong Kong-based Park Hotel Group (PHG), which bought the old Crown Hotel in 2005 and now plans to redevelop it into a high-end shopping mall and boutique hotel.

For PHG director Allen Law, the proposition to buy and redevelop the old hotel is a no-brainer. ‘Orchard Road is one of the best roads to walk along - the weather is nice, the air is clean, and there is a lot of greenery to enjoy. People don’t want another air-conditioned mall filled with all the standard brand names; they want an experience. Focusing on the uniqueness is vital to success,’ he said.

CapitaLand is another developer with a big stake in Orchard Road through its upcoming Ion Orchard shopping mall.

CapitaLand Retail CEO Pua Sek Guan is equally bullish on the strip’s future. And as iconic as Ion is going to be, Mr Pua understands that the Orchard Road experience ‘cannot be re-created in one mall alone’.

Although Ion will not have a covered walkway to the neighbouring mall, Mr Pua said CapitaLand will be creating a 3,000 square metre public space fitted out with water features, LED screens and audio systems for public entertainment. The cost? ‘It’s not a small sum,’ he said.

Tangs CEO Foo Tiang Sooi says he is all for ’strengthening the precinct’ too. The revamp, when the details are announced, may indeed have some adverse changes but Mr Foo says: ‘One has to take a broader view.’

Source :  Business Times - 19 Aug 2007

Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
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mindy@mindyyong.com

Can flat buyer force us to sell after we quit deal?

Can flat buyer force us to sell after we quit deal?
Q MY BROTHER and mother jointly sold their four-room Housing Board (HDB) flat. But my brother, who has a low IQ, backed out and refused to proceed with the HDB sale procedure on the first appointment. The HDB then postponed the appointment date by a month.
But my brother is still refusing to sell the flat. The buyer has engaged a lawyer and a summons has been issued to my brother, with a copy sent to me.

Could you please advise me on the following:

a) What are the consequences if we do not sell the flat?

b) Can a lawyer be engaged to protect my brother’s interests?

c) Can the buyer ‘force sell’ the flat?

Here is a brief history of my brother. He was admitted to Singapore General Hospital for depression in January this year after he was cheated of all his POSB savings by a close colleague last year. He has not worked since then. My mother has no savings.
A I ASSUME that your mother and brother (’the sellers’) had granted an Option to Purchase to the buyer who has duly exercised the Option. Once the Option is exercised by the buyer, it becomes an agreement that is binding on both the sellers and the buyer. Your brother will not be able to back out of the terms of the Option on the account of his low IQ unless the following factors can be shown:
Your brother was of unsound mind at the time of signing the Option to Purchase, to such an extent that he was incapable of understanding what he was doing when he signed the Option; and

The buyer knew or ought reasonably to have known of his disability.
If these two factors can be proved, then your brother may avoid the agreement. Otherwise, the sellers are legally obliged to proceed with the sale according to the terms of the Option.

The Option would contain a term that subjects the sale to the conditions of the Law Society Conditions of Sale 1999.

One of the conditions provides that if the sellers fail and/or refuse to proceed with the sale, then the buyer can elect either to obtain a court order to force the sellers to complete the sale or to obtain an order against the sellers for an award of damages in favour of the buyer.

If the buyer elects to claim damages, the measure of damages payable by the sellers to him will be assessed by the court. This will comprise mainly the difference between the market value of the flat and the sale price as agreed in the Option, usually calculated at the date when the buyer elects to seek the remedy of damages.

Hence, the sellers are well advised to attend the appointment at HDB. They should immediately inform the buyer of their intention to do so. This will render the writ of summons issued by the buyer premature and redundant. The sellers should certainly engage a lawyer to protect their interests.

In view of their lack of income and savings, they may wish to apply for legal aid at the Legal Aid Bureau at 45 Maxwell Road, #08-12, The URA Centre, East Wing, Singapore 069118. If they qualify for legal aid, the Legal Aid Bureau will assign lawyers to represent them. You may wish to visit their website at http://app.minlaw.gov.sg/lab

Lie Chin Chin
Managing Director
Characterist LLC
(incorporating Lie Kee Pong Partnership)

Source :  Straits Times - 19 Aug 2007

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Mindy Yong
(+65)91002985
mindy@mindyyong.com

Number of homes to be completed in the coming years

Number of homes to be completed in the coming years

What it is

This table shows the supply coming on stream in the next few years and includes developments that are already under construction, as well as those with written or provisional permission to build.

The ‘others’ category refers to planned projects that have yet to get written or provisional permission, and can be ignored. These projects are not included because they have not been firmed up yet, and there is a high likelihood of changes made by developers at a later stage.
Why it is important

Excerpt of expected supply of private homes
The data gives you an idea of how many homes will be completed each year.

It allows for a clearer picture of the market.

Currently, there is a short-term supply crunch in the residential market, which has helped increase rentals.

The Government has said there are enough homes to cater to demand over the next three to five years.

Source :  Straits Times - 19 Aug 2007

Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
mindy@mindyyong.com

Number of new homes sold

Number of new homes sold

What it is

This shows how many units of new homes, be it completed or not, were sold in a quarter.

Figures are compiled from option data given by developers via a quarterly survey. This data refers to the option a developer gives to a buyer when the latter pays a booking fee to buy a property.

The buyer then has to exercise the option - this is where he signs the sale and purchase agreement - if he decides to buy the property.

The table below shows that sales volume has risen dramatically this year. The data by areas shows the sales done in the different market sectors.

RELATED LINKS
Excerpt of new private home sales

Why it is important

Sales figures indicate demand. For instance, the second quarter’s record take-up rate of 5,129 completed and uncompleted units reflects the strong confidence in the residential market.

The table also shows which market segment has done better in a given quarter.

For example, in the first quarter of this year, the market continued to be led by the high-end segment. Sales increased in the core central region as developers unveiled luxury projects at record high prices.

The contrast to the second quarter of the year can be seen as more sales were done in places outside the central region. This underlines the notion that the mass market sector has recovered.

Source :  Straits Times - 19 Aug 2007

Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
mindy@mindyyong.com

Number of sub-sales done

Number of sub-sales done

What it is

This table shows the number of sub-sale units sold in a quarter, based on caveats lodged. Sub-sales refer to the quick resale of uncompleted homes.

In the second quarter, there were 1,254 sub-sales, which made up 9.7 per cent of total sales. The URA also provides data on sub-sales done in the core central region, rest of the central region and outside the central region.
Why it is important

RELATED LINKS
Excerpt of sub-sales
Sub-sales are a proxy of speculative activity. The table indicates how widespread speculation is.

At the property peak in the second quarter of 1996, when speculation was rife, sub-sales formed about 28 per cent of all private home deals.

That prompted the Government to introduce a package of anti-speculation measures that brought down the market.

Source :  Straits Times - 19 Aug 2007

Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
mindy@mindyyong.com

Residential rental index

Residential rental index

What it is

It shows the rental price movements of private homes and is compiled by the Inland Revenue Authority of Singapore.

The URA has also made available additional rental data that includes the median rentals of individual projects, if there had been at least 10 deals done in the quarter.
Why it is important

The index gives an idea of how the private rental market is performing.
Source :  Straits Times - 19 Aug 2007

Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
mindy@mindyyong.com

Price index of non-landed homes by region and completion status

Price index of non-landed homes by region and completion status

What it is

This is an index that shows you the price movements of homes located in different areas.

The core central region comprises postal districts 9, 10, 11, downtown core and Sentosa.

The central region comprises 22 areas, including downtown core, Orchard, Newton, River Valley, Bishan, Bukit Timah and Toa Payoh.

Outside the central region refers to other areas in Singapore, such as Pasir Ris and Jurong. The table also shows the price index for properties that are completed versus those being built.
Why it is important

It gives a more accurate picture of the market, as location is a key factor in property prices.

For instance, homes in prime areas such as Orchard Road have typically attracted stronger investor demand and, hence, more significant price increases.

The prime districts are where most luxury developments can be found. Singapore buyers usually prefer brand new homes and tend to pay a premium for them.

Uncompleted homes also attract speculators or investors hoping for quick price appreciations.
Source :  Straits Times - 19 Aug 2007

Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
mindy@mindyyong.com

In stormy markets, it pays to stay calm and invested

In stormy markets, it pays to stay calm and invested

By Lorna Tan, Finance Correspondent
EXPERTS polled by The Sunday Times do not believe the sub-prime crisis in the United States will lead to a global recession. They believe fundamental economic growth factors that were in place before the correction are still present, and that the market turmoil is largely sentiment-driven and has so far been confined to financial markets.
CIMB-GK research head Song Seng Wun:

Q Are there good bargains in the market?

A It’s not quite sell the house and head for the hills but stay in the house and watch the news flow until the picture is clearer. Still, there are good bargains, and it boils down to valuations and fundamentals.

For instance, fundamentals remain very strong and are, in fact, stronger than before for palm oil firms such as Golden Agri, IndoAgri and Wilmar. Share prices of these counters have headed south and fallen more than their counterparts in Indonesia and Malaysia, while their fundamentals have headed north.

Other stocks with good fundamentals are construction-related ones like Tat Hong, as well as oil and gas companies and shipyards such as Labroy Marine.

Little exposure for investors in Singapore
RETAIL investors in Singapore can rest easy regarding their exposure to sub-prime mortgage-related losses as unit trusts sold here typically have little, if any, exposure to the US home loans market, say fund managers.
Fundsupermart research manager Mah Ching Cheng:
Q Is it time to exit or hold on to our investments?

A Holding on to investments that are still reasonably valued is likely a better decision right now. Markets that have corrected quite a bit, including Singapore, South Korea and Taiwan, have become more attractively valued after this correction. So, it does make sense to stay invested. Among the three markets, earnings growth for Taiwan is the strongest at 18.7 per cent and 16 per cent for 2007 and 2008, respectively. If investors are searching for a region that has greater stability, a diversified European equity fund may be a good holding.

IPP Financial Advisers investment director Albert Lam:
Q Any tips for investors?

A Stay calm and patient and stay invested. Unless you need to use your money, selling out now at a sharp loss is unwarranted and painful. Maintain your regular savings plan. New investors and existing investors who have been building up cash should consider investing in tranches, spread over the next three to four months.
Source :  Straits Times - 19 Aug 2007

Singapore Property - Buy , Sell , Rent , Invest
Mindy Yong
(+65)91002985
mindy@mindyyong.com