Interest in outlying HDB towns picking up - Singapore

Interest in outlying HDB towns picking up - Singapore

Estates like Sengkang and Punggol gaining popularity as central resale flats’ prices rise

By Tan Hui Yee, Housing Correspondent
BESIDES THE LOWER PRICES, home buyers are also attracted by the relatively newer flats in Sengkang (above) and Punggol. They were built from the late 1990s and come with snazzier designs than flats in mature estates, which can be 20 to 40 years old. ST FILE PHOTO

THE surging prices of resale Housing Board flats in central districts are sending keen buyers to once-shunned outlying towns.
Estates like Sengkang and Punggol - no-go zones for many buyers a few years ago - have become more popular with people hoping to get a bigger bang for their buck.

The executive director of HSR Property Group, Mr Eric Cheng, estimates that demand for resale flats in Sengkang and Punggol has risen by 20 per cent to 30 per cent in the past year.

Dennis Wee Properties associate director Evan Tay, who specialises in Sengkang homes, noted that enquiries for flats there have risen by 20 per cent.

The reasons for this increase are manifold but all the property experts contacted by The Sunday Times highlighted one major factor: the rising amount in cash-over-valuation (COV) that owners of flats in central areas are demanding.

A five-room flat in Queenstown fetched a median COV amount of $110,000 in the July to September period, more than double the amount commanded in the quarter before that.

On the other hand, five-room flats in Sengkang and Punggol were going for a less heart-stopping median COV of $18,000 in the third quarter.

This COV component - the amount that is forked out over and above the valuation of a flat and cannot be paid with a home loan - tends to make or break a deal because most HDB flat buyers rely on loans to finance their purchase.

The chief executive of property agency Propnex, Mr Mohamed Ismail, said: ‘In central areas like Toa Payoh, Bishan and Ang Mo Kio, if you do not have $50,000 in cash, you are outpriced.’

Home seekers like Mr David Tan, 44, are heading to the north-east after being turned off by prices in central areas.

The construction material trader spent a couple of weeks earlier this year surveying three-room flats in Rochor, which were going for between $50,000 and $60,000 over valuation.

‘I wish I could (buy a flat in the central area). But the price is too high,’ said Mr Tan, who eventually settled for a five- room flat in Sengkang for $320,000.

Meanwhile, 51-year-old project manager Yuen Pheng Yin, who moved from the mature estate of Toa Payoh to Sengkang three years ago, decided to stay within the newer town when he opted for a smaller flat last month to reduce his expenses.

‘Singapore is too small, no area is too far away. I think I am getting more value for money by staying in outlying areas,’ he said.

What also helps is that Sengkang and Punggol flats are relatively newer. They were built from the late 1990s and come with snazzier designs than flats in mature estates, which can be 20 to 40 years old.

Buyers priced out of more mature waterfront districts like Marine Parade can also take heart that some precincts within Sengkang also provide good views of the picturesque Sungei Serangoon nearby.

Earlier this month, an HDB balloting exercise for 316 flats in Hougang, Sengkang and Punggol attracted an overwhelming 5,147 applications. This is a far cry from the situation just about five years ago, when flats in these far-flung districts were given the cold shoulder as they were deemed to be too far from the action.

Still, HSR’s Mr Cheng warned buyers against rushing into purchases in these new towns and overpaying for properties.

The HDB will offer more than 7,000 new flats - expected to be mainly in that region - over the next few months, so home owners looking to sell their flats will see more competition from new units coming onstream.

Source : Straits Times - 23 Dec 2007

Singapore Property - Buy , Sell , Rent , Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

http://www.hotvictory.com

A home custom-made to suit needs and taste - Singapore

A home custom-made to suit needs and taste - Singapore

Senior manager Chong Ching Hoong, 40, tells Melody Zaccheus how he single-handedly designed his lush three-storey residence
THE INDOOR FISH POND ON THE FIRST FLOOR is a place where the family loves to hang out, and the children - Bethany, five, and Aloysius, nine - enjoy feeding a shoal of fish and sitting along the wooden walkway with their legs in the water. The pond comes with open-air ventilation and is encased in sliding glass doors. ST PHOTO: WANG HUI FEN

‘OUR private home in Bedok cost us $150,000 to renovate. It was money well-spent because every aspect of the house has been custom-made and designed to suit our needs and taste.
One of my proudest achievements, for instance, was wiring up all the lights in my home so they could be controlled by a single remote, reflecting my passion for detail and love for all things technological.

Other furnishings and decor pieces that have been designed by me include a dresser, a wooden display table and my daughter’s entire bedroom.

I meticulously designed the landscaping of my garden, backyard and balcony, too.

Pebbles dot the ground where grass does not grow and bamboo shoots provide an interesting variety of green to the area.

There are several quirky items in our home that stand out: a black-and-white revolving coffee table in our living room which we purchased from Harvey Norman; steel candle-holders from Denmark; and a series of paintings from Holland that line our stairway.

We bought these items with our home’s earthy colour scheme in mind.

My son enjoys spending time in the balcony, which is linked to his bedroom on the third floor. The view from it is nothing short of spectacular both at night and in the day.

Some of our family gatherings are held there because it is an area with good ventilation and a soothing ambience.

A particular spot we all love and often hang out at is our indoor fish pond on the first floor. It comes with open-air ventilation and is encased in sliding glass doors.

When it rains, the area is transformed into a delightful display of beauty and nature.

When the weather is fine, we open the glass doors and play with our fishes. My two young children, in particular, enjoy feeding our fishes. They usually sit along the wooden walkway with their legs in the pond.

We live in a dream home set in a peaceful neighbourhood. It meets our needs in every way possible.

Even our guests who come to visit cannot help but gush at the beauty and practicality of our modern yet cosy home.’

Source : Straits Times - 23 Dec 2007

Singapore Property - Buy , Sell , Rent , Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

http://www.hotvictory.com

Splitting an Singapore HDB flat when there is no will

Splitting an Singapore HDB flat when there is no will
Q MY PARENTS died without a will stating which of their three children would be the sole owner of their HDB flat.
Two of us are married with an HDB flat each. Our brother is the only one without a flat.

As both of us have our own HDB flats, technically, neither of us are allowed to act as the administrator of my parents’ estate as we cannot own two HDB flats.

My brother is the only one eligible to become the administrator.

1. Can the administrator hold the HDB flat as long as we want? We want to keep the flat so my brother will have a place to live.

2. Can the administrator rent out the whole flat or some rooms? And when can that be done?

3. If the flat cannot be held, what are our options? Can we sell the flat, buy each other’s shares or give up our shares?

4. We do not really want to give up our shares in the flat as we think that once our brother owns it, he can sell it.

Are there any clauses that we can insert in any legal agreement that would allow us to retain our shares if he sells the flat?
A CONTRARY to your assumptions, a person who already owns an HDB flat can still act as the administrator of an estate that consists of HDB property.

The administrator is obliged, without delay, to distribute the assets to the deceased’s spouse and children or, if he has none, to other family members.

Any transfer of ownership of the flat would be in the name of the court-appointed administrator, the person authorised to make such transfers.

In your case, where there is an HDB flat, the administrator would have to resolve the distribution of the entitlement to the flat to the three beneficiaries within six years of the date of death.

Any transfer by the administrator after six years would require court approval.

The administrator may rent out the flat to earn income for the estate, subject to prevailing HDB requirements and depending on how the distribution process is going.

While the share of entitlement to the estate where there is no will is determined by law, the beneficiaries may - if they are over 21 years old and can give valid consent - arrange a scheme of distribution that would allow one or more of them to retain ownership of the flat.

Such an arrangement would be subject to HDB regulations governing the eligibility of the parties involved for ownership.

Depending on the agreement between the beneficiaries, those who are not eligible to own or who do not wish to own the flat may realise their shares based on the value of the flat or by taking a share of the sale proceeds.

Source : Straits Times - 23 Dec 2007

Singapore Property - Buy , Sell , Rent , Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

http://www.hotvictory.com