LUXURY PROPERTY FUND EYES S’PORE APARTMENTS

LUXURY PROPERTY FUND EYES S’PORE APARTMENTS

by Jo-Ann Huang Limin

SINGAPORE – Luxury property fund The Hideaways Club is here to look out for high-end apartments for its new timeshare property portfolio, called The Hideaways Club – City Collection.

Founder of The Hideaways Club, Mr Mike Balfour, was here just last week to review a range of Singapore luxury properties.

Relying on his team of property hunters, he has his eye on a few choice high-end units here.

But it will unlikely be the pricey units at developments such as Ritz-Carlton Residences or the Orchard Residences, which have seen transactions at more than S$4,000 per sq ft recently.

Instead, he is looking for high-end properties which offer value for money, rather than a luxury brand-name attached to it.

“If these homes have a brand-name to it, they usually command a premium. And we would like to maintain our profit margins,” he said.

Mr Balfour, who is also the founder of the Fitness First chain of gyms, said he plans to make Asia a key revenue generator for his City Collection’s property portfolio.

He said 25 to 30 per cent of the City Collection’s properties will be located in Asia.

“Other major cities we are looking at are Kuala Lumpur and Hanoi,” he added.

With the City Collection, he hopes to replicate the success of his first fund called The Hideaways Club Classic Collection.

Launched in 2007, the Classic Collection comprises 50 villas in holiday destinations all over the world, with each 2,700-sq-ft villa costing an average of US$1.6 million (S$2.03 million).

It was started to offer investors another way to enjoy a luxury holiday, without owning an actual holiday home and doing away with the hassle of maintenance.

The fund offers members an equity share in the property portfolio, which has a current membership of more than 200 members.

It is now the largest luxury timeshare club in Europe and Mr Balfour is targeting a maximum of 600 members and 100 properties for the fund in the next four years.

For The City Collection, each member invests a lump sum of US$195,000 and pays an annual maintenance, taxes and concierge fees of US$18,500.

Each member gets about 12 to 23 nights of holiday stay a year in one of the fund’s apartments. This would otherwise cost the member between US$1.2 million to US$3 million a year, said Mr Balfour.

In addition to savings, the investor reaps 5 to 6 per cent of capital appreciation from the luxury apartment portfolio annually.

Mr Balfour said he is targeting 120 city apartments in the next three years for The City Collection.

Each apartment is sized between 1,500 and 3,000 sq ft, and are typically two-bedroom and two-bathroom units in the city centre in major cities across the world.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

HIGHER LEVY FOR GREATER LEVERAGE »« WHY BUDGET GOODIES KEPT SIMPLE

WHY BUDGET GOODIES KEPT SIMPLE

WHY BUDGET GOODIES KEPT SIMPLE

Minister responds to suggestions to take specific family circumstances into account

by Neo Chai Chin

SINGAPORE – Suggestions to further improve the lot of Singaporeans came thick and fast at the first ministerial community dialogue held post-Budget.

Instead of basing growth dividends on the annual value of Singaporeans’ homes, how about giving more to recipients who look after their aged parents, even if they live in bigger flats? Should seniors taking care of their grandchildren be given Workfare bonuses? Could earned income relief be increased?

Information, Communications and the Arts Minister Lui Tuck Yew tackled these questions in a dialogue when he visited Tampines West, two days after Finance Minister Tharman Shanmugaratnam announced that eight in 10 Singaporeans will get S$600 to S$800 in growth dividends as part of the Grow and Share package.

While Mr Lui agreed that the current payout criteria, which is based on income and type of home, “isn’t always the best in terms of being as targeted as possible”, it kept things simple and understandable.

Rather than the Government run the risk of being too intrusive when distributing Budget goodies, by inquiring about family situations, those with more specific needs can approach their local constituencies for help, he added.

Budget 2011′s measures for the elderly, low-income and sandwiched class did not go unnoticed by dialogue participants. But a Tampines West resident asked if seniors looking after their grandchildren could also receive the Workfare bonus – amounting to 50 per cent more Workfare Income Supplement payouts for work done last year and 25 per cent more for work done this year and next.

Mr Lui noted that while there was a way to get around the rules – for seniors to declare themselves self-employed and make contributions to their Medisave – the “larger question” was whether “we cheapen love and care and affection by putting a price to it”.

The Government helps the elderly where it can – through Medisave top-ups, for instance – without upsetting “social norms and long-standing values”, he said.

On the issue of raising earned income relief – which now ranges from S$1,000 to S$6,000, depending on age or disability – Mr Lui said it would be considered.

He said, however, that income tax rebates and the lower income tax rates announced by Mr Shanmugaratnam would be “far more beneficial”. Said Mr Lui: “My feel is that is probably better than whatever changes (the Finance Minister) can make to earned income relief.”

Asked by reporters after the dialogue about the impact that the abolition of television and radio licence fees would have on public service broadcasting, Mr Lui said the Government would “make up” the sum of money previously collected from the fees, which was about S$120 million annually.

Seven to eight of the top-10-rated programmes now are Public Service Broadcast funded and the Government will continue its support of such programmes, he said.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

LUXURY PROPERTY FUND EYES S’PORE APARTMENTS »« A BUDGET MORE FOR SMES THAN FOR BIG BUSINESS

A BUDGET MORE FOR SMES THAN FOR BIG BUSINESS

A BUDGET MORE FOR SMES THAN FOR BIG BUSINESS

by Paul Cornelius and Tan Tay Lek

The business community had high hopes that this year’s Budget would see the Singapore Government cut the corporate income tax rate to compete with Hong Kong’s 16.5 per cent tax rate and introduce incentives to drive down business costs.

To the disappointment of many, Minister for Finance Tharman Shanmugaratnam left the headline corporate income tax rate unchanged. Instead, he handed out a one-off 20 per cent corporate tax rebate which may be claimed in the form of a cash grant instead of an offset against a company’s tax liability.

This reinforces the Government’s fiscal prudence since the Budget has only just been balanced. While the general economic outlook is still rosy, Singapore cannot be too complacent.

The focus of this year’s Budget was clearly on the small and medium enterprises (SMEs), with even the one-off corporate tax rebate capped at S$10,000, clearly designed to alleviate their tax burden.

Enhancements to the Productivity and Innovation Credit tax incentive, to offer a greater scope of deductions, are also designed to afford SMEs the greatest benefit. Such measures will go a long way towards enhancing the competitiveness of Singapore’s SMEs, which is a big aim of this Budget.

However, increase in employer Central Provident Fund (CPF) contribution rates will go up to 36 per cent and further increases in the foreign worker levies will not be welcome news for either the SMEs or the multinationals, and will offset, in part, the tax benefits granted.

The Budget measures for “big businesses” such as the financial services and the maritime industries are generally made to facilitate the business operations of companies in these sectors.

For example, the expansion of the withholding tax exemption for banks and financial institutions will facilitate their cross-border activities. It is not expected that any significant boost to these sectors will be achieved and this is rightly so, since there is nothing pressing that needs to be done to encourage their growth at present.

As a step towards easing the tax administration burdens of taxpayers and improving the tax system, changes were made to the foreign tax credit claims regimes and tax deduction rules for pre-commencement expenses and equity-based remuneration payments.

If implemented appropriately, these measures should generally be welcomed by taxpayers as they could potentially go a long way towards resolving contentious arguments with the Inland Revenue Authority of Singapore.

Other than the SMEs, the main beneficiary of the Budget is the man in the street, with the Government sharing and re-distributing the benefits of growth with a cut in the marginal income tax rates for low- and medium-income earners and by giving out higher rebates and payouts in the form of additional Growth Dividends, for instance.

While such measures may not directly impact businesses, they are nevertheless crucial in enhancing social cohesion and reducing tensions, promoting an environment where business can be conducted.

This year’s Budget again bears the hallmark fiscal prudence of the Singapore Government. The measures are designed as part of a comprehensive package to share the fruits of the stellar economic growth of the past, while promoting investment in the future through higher productivity and innovation, while at the same time trying to control inflationary pressures.

Paul Cornelius is a tax partner with PwC Services LLP and Tan Tay Lek is associate director, Corporate Tax Advisory Services, PwC Services LLP.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

WHY BUDGET GOODIES KEPT SIMPLE »« MORE FINANCIAL SUPPORT FOR YOUNG FAMILIES

MORE FINANCIAL SUPPORT FOR YOUNG FAMILIES

MORE FINANCIAL SUPPORT FOR YOUNG FAMILIES

by Teo Xuanwei

SINGAPORE – Over the years, the support for families with young children has been growing. Budget 2011 has added another form of help for this group.

While there were handouts for schoolchildren of all age groups, the centrepiece was a new Child Development Credit scheme that will receive injections of funds from the Government when it has surpluses to share.

This year, the Government will pump in a total of S$90 million, benefitting 220,000 Singaporean children aged six and below.

Each child’s Children Development Account will receive S$300 or S$400, depending on the annual value of the family home as at Dec 31 last year. For homes valued at up to S$13,000, the child will receive S$400, while for homes valued at more than S$13,000, the credit will be S$300.

The money can be used to pay for his preschool, childcare and medical costs.

Taking into account the existing childcare subsidy at S$300, another S$400 would cover more than one month’s worth of NTUC childcare fees, Finance Minister Tharman Shanmugaratnam announced on Friday.

The income ceiling for the existing Kindergarten Financial Assistance Scheme (KiFAS) and the Centre-based Financial Assistance Scheme for Childcare (CFAC) will also be raised to provide “additional support” for more low-income families.

The monthly household income limit of S$1,800 for the two schemes will be increased to S$3,500, which will double the number of children who will benefit to 24,000.

This means a family earning S$2,500 a month will pay S$90 instead of S$300 a month in childcare fees, or S$33 a month in eligible kindergartens.

Those from low-income families, Mr Shanmugaratnam pointed out, will pay “far less” – less than S$10 a month for childcare.

While some parents described the initiatives as a “surprising bonus”, others wanted more.

Executive assistant Valerie Lee has three children aged six, nine and 11, and the youngest will get S$300 under the Child Development Credit scheme. But Ms Lee, 43, said the amount is “not even enough for what we spend in one month”.

Site supervisor John Goh, 44, whose household income of S$3,000 supports three children, however, welcomed the help.

Said Mr Goh: “With rising inflation, at least we won’t have to worry so much about my child’s education.”

Meanwhile, bursaries for diploma students and undergraduates from families up to the 66th-percentile income group will be increased “significantly, to ensure that no student is discouraged from taking his education as far as he can”, said Mr Shanmugaratnam.

The increased bursaries will cost an additional S$120 million a year.

Bursaries for undergraduates from the bottom one-third of households will be bumped up by 80 per cent to S$2,900 a year.

This will cover 40 per cent of their fees, said Mr Shanmugaratnam.

Diploma students from polytechnics, NAFA and LASALLE belonging to the bottom third of households will also get bursaries, enough to cover 80 per cent of their fees.

Sheraine Lim, 20, who is a first-year visual communications student at Nanyang Polytechnic, said: “It will spur me to work harder and ease the burden on my parents.”

Source : TODAYonline – MediaCorp Press Ltd’s copyright

A BUDGET MORE FOR SMES THAN FOR BIG BUSINESS »« SPECIAL HOUSING GRANT TO HELP LOWER INCOME FAMILIES BUY FLATS

SPECIAL HOUSING GRANT TO HELP LOWER INCOME FAMILIES BUY FLATS

SPECIAL HOUSING GRANT TO HELP LOWER INCOME FAMILIES BUY FLATS

by Ong Dai Lin

Singapore – More help is being provided for lower income families to buy HDB flats. The Government is also spending S$10 billion over the next 10 years to upgrade HDB homes and rejuvenate estates.

Outlining the Government’s plans to provide better homes and lives for all Singaporeans, especially those in the lower income group, Finance Minister Tharman Shanmugaratnam said: “We will build on the positive momentum we have achieved in recent years. The main thrust of what we want to do is to reach out to everyone.”

The Government will provide a Special CPF Housing Grant to lower income families who are buying a Build-to-Order (BTO) flat for the first time. The grant will be given to families who earn up to S$2,250 per month. It is in addition to the Additional CPF Housing Grant, amounting to S$40,000, currently given to the bottom 50 per cent of households to help them own a house.

More details will be provided by the Ministry of National Development in the coming Committee of Supply debate.

In total, the Government will provide S$175 million in grants each year to help lower income families own a flat, said Mr Shanmugaratnam.

Single parent Chng Ian Lang told MediaCorp whether she takes advantage of the grant will depend on her job. “I don’t have a steady income. Even if I look for a steady job, my age and health may be a problem,” said the 50-year-old who takes home a monthly salary of S$1,000. The part time telephone operator is living with her three children in a two-room flat and is hoping to buy a bigger flat.

Analysts tell MediaCorp that more can be done to help families like Ms Chng’s. Mr Colin Tan, head of Research & Consultancy at Chesterton Suntec International, wants flat prices lowered. “If flat prices continue to go up, is the grant enough?”

The CEO of International Property Advisor, Mr Ku Swee Yong, supported the measure. But he described the cut off limit of S$2,250 as “rather low”  adding that it is likely the combined salaries of two low-income workers would go beyond the limit. He suggested raising the limit to S$3,000 and setting a 10-year occupancy limit before the family can sell the flat.

Mr Shanmugaratnam also announced that the Government would help families cope with rising costs by giving additional Utilities-Save (U-Save) and Service and Conservancy Charges (S&CC) rebates.

This is in addition to those rebates that Singaporeans in HDB flats are still receiving from the GST Offset Package introduced in 2007.

Under the rejuvenation programmes for HDB estates, the Government will invest up to S$55,000 per flat, with 50,000 flat owners benefitting from these schemes this year, said Mr Shanmugaratnam.

From next year to 2016, another 300,000 will benefit from these upgrading programmes. An estimated 700,000 residents in Jurong Lake, East Coast and Hougang will enjoy estate improvements under the Remaking Our Heartland programme.

Just as importantly, Singapore’s core arts and cultural district within Bras Basah and Bugis will now move into the heartlands. With the move, the heartlands will experience a new vibrancy, said Mr Shanmugaratnam.

“We will also provide enhanced support for arts institutions and practitioners, so as to encourage ground-breaking new work and to enable more Singaporeans to fulfil their aspirations for careers in the arts,” he said.

Over the next five years, the Government will spend an average of S$365 million on arts and culture annually.

More details will be revealed by the Ministry of Information, Communications and the Arts.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

MORE FINANCIAL SUPPORT FOR YOUNG FAMILIES »« Budget 2011: Businesses to get 20% corporate tax rebate

Budget 2011: Businesses to get 20% corporate tax rebate

Budget 2011: Businesses to get 20% corporate tax rebate

By Hoe Yeen Nie / Rachel Kelly | Posted: 18 February 2011

SINGAPORE: The rise in rents, wages and utility bills over the past year have added more pressure on businesses, but they will get some help, in the form of tax rebates and employment credits.

First, companies will receive a 20 per cent corporate income tax rebate for the Year of Assessment 2011.

This will be capped at S$10,000.

But Finance Minister Tharman Shanmugaratnam said this may not fully benefit small-and-medium enterprises (SMEs), as many of them pay very little taxes.

He estimates that more than 85 per cent of eligible companies will receive less than S$5,000 from the rebate.

So for these companies, there will be the option of a one-off SME Cash Grant, amounting to five per cent of the company’s revenues in YA 2011.

This will be subject to a cap of S$5,000, and companies must have made CPF contributions in YA 2011.

They will automatically receive either the tax rebate or the grant, whichever is higher, when their taxes are assessed.

This will cost the government an estimated S$560 million.

Help too, will be extended to companies to attract and retain older workers, in the form of Special Employment Credits.

This comes ahead of legislation mandating the re-employment of older workers that will kick in next year.

The one-off credits will be paid out over three years, and will be given to employers of older workers currently on Workfare.

For workers aged 55 to 59 years old, the employer will receive credits of up to 50 per cent of employer CPF contributions.

They will get a higher credit of up to 80 per cent, for workers aged 60 years and above.

The scheme will cost about S$100 million in total.

Experts said that while the corporate tax rebate is good for local companies, for multinationals it does not make much difference. They added that MNCs that use Singapore as their Asian headquarters will welcome more clarity on their tax liabilities.

Phillip Overmyer, Chief Executive of the Singapore International Chamber of Commerce, said: “We are very concerned here at the chamber in getting other things implemented…over the next several months that will improve and enhance the way taxes and the processes of paying taxes are being covered in Singapore so companies are more certain then they are today about what their tax level is going to be.

“There is going to be a lot of toll now as companies in the region have started sales of their products within the country that they are operating in…what we are worried about is, these companies will start to say – if I have a large operation in China – why again do I need an operation in Singapore, and we want to be sure that they see glaring in front of them the reasons to stay.”

-CNA/wk/ac

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

SPECIAL HOUSING GRANT TO HELP LOWER INCOME FAMILIES BUY FLATS »« Budget 2011: S$2.5b to strengthen S’pore as Asian base

Budget 2011: S$2.5b to strengthen S’pore as Asian base

Budget 2011: S$2.5b to strengthen S’pore as Asian base

Posted: 18 February 2011

SINGAPORE : The Singapore government plans to set aside S$2.5 billion over the next five years to further strengthen Singapore’s value proposition as an Asian base for corporate headquarters and other high-value activities.

Finance Minister Tharman Shanmugaratnam revealed this in his Budget Speech on Friday.

The Economic Development Assistance Scheme (EDAS) will support the Economic Development Board’s efforts to develop a talent pool of professionals and executives with a strong understanding of Asian markets and businesses.

It will also help EDB to attract global mid-sized companies to set up their first Asian base in Singapore.

Mr Tharman also announced key tax changes to enhance the competitiveness of Singapore as a business hub.

For the financial sector, the government will exempt all interest payments made by banks and similar financial institutions from withholding tax.

Mr Tharman said the move aims to help banks access more diversified funding sources for their lending business and strengthen Singapore’s position as a regional funding centre.

He also announced an extension of the tax exemption schemes for Captive Insurers, Specialised Insurers and Marine Hull and Liability Insurers to grow their technical expertise and underwriting capacity in Singapore.

To promote the growth of the maritime sector, Mr Tharman announced the Maritime Sector Initiative, which will take effect from June 1.

“This new scheme will streamline and enhance existing maritime tax incentives. New tax benefits such as certainty of withholding tax exemption for interest payments on loans to build or buy ships will also be introduced to further entrench international ship operators and encourage growth of the shipping-related services sector in Singapore,” the minister said.

To support growth in the biomedical sector, the government will grant GST relief for imported clinical trial materials as well as enhance the Approved Contract Manufacturer and Trader scheme with effect from October 1.

To strengthen Singapore’s commodity markets, Mr Tharman announced plans to enhance the Global Trader Programme to qualify all derivatives traders under the scheme.

Other tax-related changes include allowing start-up businesses to claim tax deductions on pre-commencement expenses incurred in the accounting year immediately before the year in which they earn their first dollar of trade receipts.

The government will also make refinements to the current tax deduction scheme for companies that purchase shares for the purpose of their equity-based remuneration schemes.

This will be extended to companies that buy their parent companies’ shares through special purpose vehicles that act as trustees to administer the schemes.

Excise taxes will be raised by between 5 and 10 per cent on two classes of non-cigarette tobacco products.

To promote the adoption of green vehicles, the Green Vehicle Rebate Scheme will be extended for another year till December 31, 2012.

- CNA/al

 
Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Budget 2011: Businesses to get 20% corporate tax rebate »« S$322m given out under HDB’s AHG scheme

S$322m given out under HDB’s AHG scheme

S$322m given out under HDB’s AHG scheme

By Joanne Chan | Posted: 16 February 2011

SINGAPORE: The government handed out S$322 million to eligible households under the Additional Housing Grant (AHG) Scheme since it was enhanced two years ago.

The grant can be used to buy either a new flat from the Housing & Development Board (HDB) or a resale flat from the open market.

In fresh figures released to Channel NewsAsia, HDB said 16,100 households have benefited since the changes.

But with growing mortgages placing a greater burden on households, some are hoping for more help at the upcoming Budget.

High on their list is more housing grants.

Twenty-six-year-old Singaporean Muhd Sharizan shares a three-room flat with his wife and two children.

He received the maximum additional housing grant of S$40,000, which went towards offsetting the S$15,000 down-payment and reduced their outstanding loan.

“My CPF was really not enough so this grant helped me to pay for my house. Without this grant, I don’t think I could have afforded to buy the house,” Mr Sharizan said.

However, Mr Sharizan said he worries that the 30-year repayment period will be a drain on his retirement savings.

Mr Sharizan and his wife contribute about S$500 to their CPF accounts each month – S$350 goes towards their mortgage.

“The faster I pay, the faster my loan will (cleared). And so I can keep the rest of my money inside my CPF account for my retirement,” he said.

With housing prices on the upswing, first-time buyers have expressed concerns that mortgage loans are becoming unmanageable.

Observers say bringing down housing prices is not the solution, as flat owners wouldn’t want to see their assets devalued.

Hence, it’s unlikely new cooling measures will be introduced. The focus, instead, will be on helping young couples and the low-income buy their first flat.

In this aspect, more housing grants may be on the cards.

The AHG Scheme has been tweaked twice since it was started in 2006.

Each time, the income ceiling was raised by S$1,000 to allow more households to apply for it, and the maximum grant available was upped by $10,000.

Close to 28,500 households have benefited from the S$500 million disbursed so far.

While a higher grant will help to lower the mortgage, observers say a longer term strategy must also be in place.

MP for Holland-Bukit Timah GRC Liang Eng Hwa said: “It is more than just pricing the housing or giving grant, but how do they service it in the long term.

“So we must help them stay employable, to be able to earn a higher salary over time”.

Mr Liang said the government must monitor the debt service ratio, which calculates the amount that goes towards paying for housing.

He said the ratio should be below 25 per cent – meaning flat owners can pay mortgages with their CPF, without having to use cash.

-CNA/wk

 
Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Budget 2011: S$2.5b to strengthen S’pore as Asian base »« LANDED HOMES STILL HOT PROPERTY, SAY ANALYSTS

LANDED HOMES STILL HOT PROPERTY, SAY ANALYSTS

LANDED HOMES STILL HOT PROPERTY, SAY ANALYSTS

by Jo-Ann Huang Limin

SINGAPORE – Demand for landed properties is likely to be robust this year, according to market watchers who noted that buyers of such properties are typically owner-occupiers and are unaffected by the Government’s anti-speculation measures.

At the same time, the limited supply of landed properties, low interest rates and abundant liquidity will fuel demand going forward, analysts noted.

SLP International executive director of research and consultancy Nicholas Mak said: “Some of the home buyers feel that the newer apartments tend to be a bit smaller than some of the older apartments. And, in order to have the luxury of space, some of these buyers turn to landed properties.”

Mushrooms Realty founder Tan Wee Yong added: “Traditionally, (landed properties) might be out of people’s budgets. But nowadays, if the price difference is not that great, I think most Singaporeans will go for landed property.”

Despite a slew of cooling measures, prices of landed properties went up by 31 per cent last year, as compared to 2009, outpacing non-landed homes which grew 17.6 per cent.

And analysts noted that demand for landed property sites is overwhelming the existing supply.

Said Mr Tan: “For freehold sites, I think there is a supply crunch … As long as there is a new piece of land coming out in the market, there will be a lot of interested parties if the asking price is at the market rate.”

According to the Urban Redevelopment Authority, there are 70,000 landed housing units currently available in the market. This makes up 30 per cent of the entire private home supply.

Coupled with the moderating economy this year, analysts said they expect landed property prices to increase by 8 to 12 per cent this year. Jo-Ann Huang

Source : TODAYonline – MediaCorp Press Ltd’s copyright

S$322m given out under HDB’s AHG scheme »« THE AVERAGE WAITING TIME FOR BTO FLATS IS LONGER THAN 3 YEARS

THE AVERAGE WAITING TIME FOR BTO FLATS IS LONGER THAN 3 YEARS

THE AVERAGE WAITING TIME FOR BTO FLATS IS LONGER THAN 3 YEARS

by Ong Dai Lin

SINGAPORE – The official word is that the average waiting time for a build-to-order (BTO) flat is three years.

But a check on the completion dates of the 21 BTO projects launched last year showed that 17 of them are expected to take longer than that. It is estimated that these projects will be completed only in 2014 or 2015.

Responding to queries by MediaCorp, a Housing Development Board (HDB) spokesperson said the estimated completion dates take into account factors such as the size of the project and complexity of design.

For the BTO projects launched last year, the dates also took into account the time needed to call the tender for construction, which is six to eight months.

According to the HDB, the estimated completion date is provided at the launch of projects to help buyers plan ahead and make an informed decision.

Once the construction starts, the HDB will monitor and update the construction progress on its website, providing buyers with a more accurate projection of when their flats will be completed.

The spokesperson added that the HDB had streamlined the BTO processes to allow flat buyers to collect the keys to their new homes about six months earlier.

Applicants of these BTO projects told MediaCorp that, despite the inconveniences caused by the long waiting time, they are not considering other housing options such as resale flats because of high prices.

An applicant who wanted to be known only as Miss Chong, 24, said she had obtained a queue number for the Punggol Topaz BTO project launched last December. It is estimated that it will be completed in the second quarter of 2015.

She said she will be staying apart from her fiance after they get married next December. They are unable to move into each other’s homes as they share rooms with siblings.

The marketing executive said: “I’m worried about making plans on having babies as my fiance and I will want to have our own home for the kids. I will be almost hitting 30 when I get the flat and already married for four years.”

Another applicant who wanted to be known as Ms Tan, 28, has selected a five-room flat in the Corporation Tiara BTO project launched last July. She is waiting for her flat to be completed in the second quarter of 2014.

The business excellence executive, who started balloting for a flat in 2008, has been married for two years and is staying with her in-laws.

She said having children might affect her in-laws due to space constraints.

Last August, National Development Minister Mah Bow Tan announced that the average waiting time for BTO flats launched after the middle of this year would be two-and-a-half years.

This will be done by tweaking HDB practices such as bringing forward the preparation of building designs for tender so that construction can start soon after the flats have been launched and streamlining work processes.
Source : TODAYonline – MediaCorp Press Ltd’s copyright

LANDED HOMES STILL HOT PROPERTY, SAY ANALYSTS »« FINALLY, AN END TO PRIVATE FIRMS SHARING YOUR DATA?