More turn to sub-letting HDB flats

More turn to sub-letting HDB flats

By Esther Ng, TODAY

SINGAPORE: Some were in financial hardship, and an increasing number were Singaporeans working overseas or who simply saw their flats as investments.

They made up the growing number of households that are sub-letting their entire flats – a figure that jumped 21 per cent in the course of the last financial year.

Between April last year and March this year, the Housing and Development Board (HDB) approved 22,754 such applications, or 4,019 units more than in the previous year.

Despite the recent recession, this trend is not necessarily due to flat-owners having problems meeting their mortgage repayments, said property analysts.

“The downturn happened in the middle of HDB’s financial year, toward the end of last year. And while some households may have been affected, it’s not enough to say they contributed to the increase – it’s a variety of factors,” said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.

One of which is more Singaporeans heading overseas for work. Property agent Liz Choo told MediaCorp that the number of such flat-owners approaching her to sub-let their flats has gone up by as much as 20 per cent from six years ago.

They are mostly headed to China and Vietnam, “followed by Australia and the United Kingdom”, she added.

Depending on the location, rents for a three-room flat range from $1,500 to $1,800, while four-room, five-room and executive maisonettes can command $1,800 to $2,500 a month. A five-room flat in the central area could fetch $3,000, said property agents.

The relaxation of public housing policy in March 2007 sparked the first increase in the number of Singaporeans sub-letting their housing board flats.

Home owners can now rent out their entire flats after living in it for three years, if the flat was bought without a housing grant from the resale market; or five years if the flat was bought from the HDB or the open market with a CPF Housing Grant.

Previously, they had to wait 10 years if they had an outstanding HDB loan or five years if they did not.

“It used to be a lot tougher in the past, you could only let out your flat if you were studying or working overseas and you must have documentary proof, or if you’re very sick and need to live with your relative - there were so many conditions attached,” said property agent of 15 years, Mr G Rajan.

HDB relaxed its policy to allow flat owners greater flexibility to monetise their flats during retirement or times of financial difficulty, and also to enlarge the rental market for HDB flats.

And some, it seems, have taken advantage of the situation. “I’ve a client who, after living in his flat for seven years, moved into his newly completed condo and is now renting out his flat,” said Mr Daniel Lim, a property agent. Other agents also told MediaCorp the HDB flat is increasingly seen as an investment.

Still, there are some who sub-let because they cannot afford the repayments.

Finance graduate Ms Sumathi (not her real name) told MediaCorp she has been unemployed for three years since returning from her studies in Australia. Her three-room flat in Serangoon, which she bought with her father, is being rented out for $1,500.

“Though we took an HDB loan, I couldn’t afford to pay $404 monthly,” she said. The 35-year-old is staying with a friend. Her father, who works overseas, does not earn enough to pay the mortgage. “The income from the rental helps, but I have to pay property tax and conservancy charges, too,” she added.

- TODAY/so

Source : Channel NewsAsia - 09 November 2009

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Four blocks in Bukit Merah View to undergo Selective EnBloc Redevelopment

Four blocks in Bukit Merah View to undergo Selective EnBloc Redevelopment

By S Ramesh

SINGAPORE: Four blocks of flats at Bukit Merah View - blocks 110, 111, 113 and 114 - will undergo the Selective EnBloc Redevelopment Programme (SERS).

Member of Parliament (MP) for Tanjong Pagar GRC and Deputy Speaker of Parliament Indranee Rajah made the announcement at the division’s tree planting day activities, attended by Minister Mentor Lee Kuan Yew and the MPs of the GRC.

Ms Indranee noted that the residents in the blocks were disappointed because they had not been upgraded.

However, under the SERS programme, the residents of affected blocks will be offered replacement flats at the new precinct at Boon Tiong, which is next to Tiong Bahru Plaza and the Tiong Bahru MRT Station.

Ms Indranee noted that there will be 700 units of new studio apartments, three-room, four-room and five-room flats available for selection at subsidised prices.

Once the redevelopment is completed, the owners of the four blocks can look forward to a brand new living environment.

They will receive compensation for their existing flats based on its current market value. HDB will inform each of the owners of the compensation for their flats.

HDB is also holding a SERS exhibition from November 12 to 18 so that residents can find out more about the programme for the blocks involved.

- CNA/yb

Source : Channel NewsAsia - 09 November 2009

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3% growth in 2010: MM

3% growth in 2010: MM

Expect slower growth for several years until major countries recover

By Fiona Chan

SINGAPORE’S economy could grow at 3per cent next year, after what currently looks like a ‘healthy’ fourth quarter, Minister Mentor Lee Kuan Yew said yesterday.

This is the first time a Government official has put a number to 2010 growth. The Ministry of Trade and Industry (MTI) is expected to release its official forecast for next year’s growth later this month.

Ahead of that, MM Lee’s comment - made in a speech last night at a community event - puts next year’s growth slightly lower than private-sector economists’ forecasts.

But slower-than-usual growth is exactly what Singaporeans must expect in the next several years, which is how long it will take Singapore’s major trading partners to climb their way back to a full recovery, Mr Lee said.

Much of Singapore’s growth relies on exports, as it is the most trade-dependent country in the world. Singapore’s trade amounts to almost four times its gross domestic product, which is the total value of what it produces within its own borders each year.

‘We will not resume high growth for several years until the major economies in the world have recovered,’ Mr Lee said. The United States and Europe are Singapore’s largest markets for non-oil domestic exports, although China is a close third.

Economists interviewed yesterday said Mr Lee’s remarks on next year’s growth were ‘on the cautious side’.

Most believe that Singapore’s economy, which has just emerged from recession by growing 0.8per cent in the third quarter against the same period last year, will expand by between 4 and 6per cent next year. MTI has said it expects this year’s growth to be between minus 2.5 and minus 2per cent.

Commenting on MM Lee’s remark, OCBC economist Selena Ling said: ‘We expected them to announce a forecast for next year of 3 to 5per cent growth.

‘Maybe the Government is just playing it cautiously. Last Friday, the numbers for unemployment in the US came in higher than expected, and maybe that’s where the uncertainty is coming from.’

One out of every six American workers, or 17.5per cent of them, are now unemployed or underemployed, according to the latest US data. This is the highest level on record and probably the worst since the Great Depression in the 1930s.

Credit Suisse economist Joseph Tan, who is predicting 5per cent growth next year, attributed Mr Lee’s lower prognosis to uncertainties over the global recovery, particularly about whether US consumption will falter.

In his speech, Mr Lee said American consumers are depressed and not spending because they fear they may lose their jobs. ‘Everyone feels poorer,’ he said.

During his visit to the US about a fortnight ago, top economic officials there told him that when the effects of their stimulus packages are exhausted, they expect private-sector demand to have picked up and be able to carry on the growth momentum.

But they warned the US would post very low growth for years, MM Lee said.

Still, the picture is not all bleak. What counts as slower growth in Singapore and Asia will remain higher than in other parts of the world, thanks to emerging growth giants China, India and Indonesia, he added.

These three large economies have huge local markets and do not rely as much on exports to contribute to growth. Even as trade slumped in the recession this year, they powered ahead to register positive growth on the strength of their own domestic consumption and investments.

An ‘overflow effect’ from China, India and - to a lesser extent - Indonesia will benefit countries in East and Southeast Asia, said Mr Lee. Economies in this region will also have an edge over others through their free trade agreements with China and India.

But the fact remains that America still consumes much more than China, India, or Indonesia, he added. Each American has eight times the purchasing power of a person in China, while the figure rises to 12 times in Indonesia and 16 times in India.

‘We cannot expect China, India and Indonesia to make up for the decrease in exports to America, the European Union and Japan,’ Mr Lee said.

He added that Singapore must find ways and means to fill up the drop in its exports. Diversifying into industries such as pharmaceuticals, which sick people still need in a downturn, has helped.

Another sticking plaster has been the cooperation between the Government, workers and unions. This can help Singaporeans get through the crisis ‘without too much pain and suffering, and emerge stronger as a nation’, he said.

Source : Straits Times - 09 November 2009

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More land for homes soon, so don’t rush

More land for homes soon, so don’t rush

Private developers will have a variety of sites to choose from by first half of 2010, says Mah

By Goh Chin Lian

There is no need to rush to buy homes, now that a slew of land parcels will be released to private developers in the first half of next year.

That was the assurance given yesterday by National Development Minister Mah Bow Tan.

Similarly, he assured developers that they will have a variety of sites to choose from, with some up for grabs as early as January.

He was speaking to reporters a day after the Government announced that at least eight residential sites - and as many as 26 - will be offered to developers.

It made the move to allay fears of a shortage of homes in the private property market that may have sent prices surging to levels seen in the previous boom.

Five of the 26 sites are for executive condominiums, to cater to the ’sandwiched group’, Mr Mah said.

These are people who do not qualify for new HDB flats because they earn more than the $8,000 monthly income cap, but who may find private property too expensive.

The 26 sites could yield 10,550 private homes, the most from half-yearly government land sales since the second half of 2001.

Mr Mah said: ‘It sends a signal that there is ample supply, and if the demand is high, we are able to meet this demand by releasing more land.’

Another 60,000 units are also in the pipeline and have yet to be sold, he pointed out.

‘So no need to panic, no need to rush. Just take your time, look around, and you will find a home that’s suitable for you and that is within your budget,’ he said.

Earlier, Mr Mah presented certificates to 41 newly registered professional engineers, at an annual event to recognise the contributions of such professionals.

In his speech, he identified two challenges facing engineers.

One is to find ways to make buildings environmentally friendly and adopt sustainable construction practices, such as using more recycled materials.

Another challenge is to advance the construction industry through innovation, such as the prefabrication technology used to build the 50-storey residential towers at Pinnacle@Duxton.

Mr Mah also recognised the Professional Engineers Board’s efforts to promote the profession as a lifelong career.

New blood is needed, he pointed out, as six in 10 professional engineers with practising certificates are aged 50 or above.

Source : Straits Times - 09 November 2009

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