MORE HELP FOR LOW-INCOME FAMILIES TO BUY THEIR FIRST FLAT

MORE HELP FOR LOW-INCOME FAMILIES TO BUY THEIR FIRST FLAT

by Joanne Chan

SINGAPORE – From yesterday, low-income families looking to buy their first flat can benefit from a Special Housing Grant (SHG), which in addition to regular housing subsidies and existing grants.

Speaking in Parliament yesterday, National Development Minister Mah Bow Tan provided the details of the SHG, which was announced in the Budget on Feb 18. The grant, which will be available for households earning up to S$2,250 a month, will range between S$5,000 and S$20,000.

Some 3,500 households are expected to benefit from the SHG each year.

To qualify for the SHG, one of the flat buyers must have “worked continuously for at least one year when they apply to buy the flat”, the HDB said in a press release.

The average monthly income of the household over the one-year period will be used to determine the amount of the grant the household will receive.

The SHG cannot be used to buy resale flats, nor can it be used to buy premium flats – Dawson, Pinnacle, Waterway. It also cannot be used to buy flats in mature estates.

Mr Mah explained the conditions were to ensure that the prospective homebuyers do not overstretch themselves.

Said Mr Mah: “The SHG is meant to help this very targeted low-income group own basic flats for financial prudence. Hence, the SHG can only be used to buy standard two-room and three-room flats in non-mature estates. Families that are earning S$1,500 and below may only use the SHG to purchase two-room flats.”

One household which will benefit from the SHG is Mr Rosli Nodin’s family.

Mr Rosli and his wife Saribanon Senin have two young children. They have been living in a one-room rental flat in Bukit Merah for the past 15 years.

Mr Rosli is the sole breadwinner with a take-home pay of about S$1,000 each month – of which S$110 goes towards paying the rent.

The family applied for a three-room Build-To-Order (BTO) flat in 2008 but Mr Rosli’s CPF was not enough to pay for the house. Instead, they needed to fork out about S$300 a month in cash. The family decided that the amount was too much as it would affect their living expenses. So they abandon plans to buy a new home.

Under the SHG, the family will receive S$20,000. They also qualify for another S$40,000 under the Additional Housing Grant scheme. With the grants, the family will be able to afford a two-room BTO flat – priced at about S$100,000 – with a S$40,000 loan.

To service the loan, they will have to pay S$181 each month which can be met with Mr Rosli’s CPF contributions.

Mdm Saribanon told MediaCorp that her family will soon resume their search for a new flat.

She added that the S$110 they would save from not having to pay rent – should they succeed in buying a bigger new home – is a significant sum for the family.

“We can use the money … or save for the children to go to school,” she said.

According to HDB, the SHG will be extended to the BTO exercises in Sengkang and Bukit Panjang.

Applicants for the SHG who have already applied for a flat under these BTO exercise will be allowed to change their choice of flat type without having to pay an administrative fee.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

MORE HDB FLATS TO GET HIP »« SHORTER PROCESSING TIME FOR BTO FLATS

SHORTER PROCESSING TIME FOR BTO FLATS

SHORTER PROCESSING TIME FOR BTO FLATS

… as income ceiling for three-room units in non-mature estates raised to s$5,000

by Joanne Chan

SINGAPORE – More steps were announced yesterday to help young couples land their first flat: Starting from Build-To-Order (BTO) projects launched this month, processing time will be cut by more than half to four weeks, along with a ramped up supply in the first half of this year.

The income ceiling for three-room BTO flats in non-mature estates is also raised from S$3,000 to S$5,000 with immediate effect, as the Housing and Development Board (HDB) increases its supply of these flats to 1,200 this year, a 50-per-cent increase from last year.

Announcing these measures in Parliament yesterday, National Development Minister Mah Bow Tan said the raised income ceiling would also apply to the Sengkang and Bukit Panjang BTO projects that were launched on Feb 28.

On the faster processing time, Mr Mah cautioned that the trade-off would be a shorter application period.

HDB received 85 appeals last year from home buyers who breached the previous income ceiling for a three-room BTO flat, which had been in place for seven years.

Lauding the higher income ceiling, PropNex corporate communications manager Adam Tan noted that 20 per cent of households have incomes of between S$3,000 and S$5,000. Said Mr Tan: “These people have previously been forced to buy a four-room or larger flat, which may be stretching their budget, especially considering the substantial price difference between three-room and four-room BTO flats.”

Mr Tan noted that for this group of flat buyers, buying a three-room flat will give them more leeway in other long-term financial commitments such as childcare expenses and supporting their elderly parents.

Mr Mah said the supply of BTO flats will be ramped up by 3,000 to 14,000 in the first half of the year – the total number of BTO units slated to be offered this year remain unchanged at 22,000.

Mr Mah stressed that the Government is committed to ensuring that public housing stays within reach of first-timers.

As to why more flats were not built in previous years, Mr Mah pointed out that the issue was weak demand, and not undersupply. Said Mr Mah: “Take 2006 for example. HDB offered relatively lower number of new flats at 8,100. Even then, about 1,100 remained unsold. In fact, there were flats that were … not taken up in the past decade. In 2003 and 2004, we even had to cancel some BTO projects because of low application or take-up.”

He added that HDB was wary of oversupply and that the BTO system was implemented to prevent such a situation.

Said Mr Mah: “We recognise that the yearly demand for housing can fluctuate depending on economic factors and sentiments. Hence, in planning the flat supply, HDB reviews the short-term supply on a regular basis so as to respond to such year-to-year fluctuations.”

According to HDB, out of the 22 BTO projects it launched last year, 16 have completed the BTO selection exercises – with 95 per cent of the units taken up, as at Feb 28.

HDB said: “We wish to clarify that this does not mean that the rejection rate was 5 per cent. In 2010, over 1 in 3 first-timers invited to select a flat did not do so. The eventual 95 per cent take-up rate was only achieved after continually inviting applicants down the line.”

On why HDB does not build new flats according to the number of marriages per year, Mr Mah noted that from 2003 to 2007, the total number of resale and new flats sold each year was fewer than the annual average of 15,000 marriages.

Mr Mah said he has also asked HDB to increase the visibility of coming BTO launches, from one month now to two or even three months in advance, to help flat buyers make more informed decisions.

Overall, the new measures should enable applicants to select their flats and collect their keys faster, said Mr Mah.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

MORE HELP FOR LOW-INCOME FAMILIES TO BUY THEIR FIRST FLAT »« First-time flat buyers to get more help

First-time flat buyers to get more help

First-time flat buyers to get more help

Posted: 03 March 2011

SINGAPORE: National Development Minister Mah Bow Tan has announced measures to benefit first-time flat buyers.

There will be an increase in supply of flats this year.

Mr Mah said if demand sustains, the Housing & Development Board (HDB) will offer up to 22,000 Build-to-Order (BTO) flats for the entire 2011.

For the first half of this year, HDB will offer 14,000 new BTO flats.

This is comparable to the BTO supply for the whole of 2010.

Starting from March, HDB will halve the time taken to invite applicants to select their flats.

HDB will inform applicants of their ballot results within three weeks of the launch.

Selection of flats will start from the fourth week onwards, instead of the ninth week, previously.

HDB said the faster turnaround will enable applicants to know their queue number for the current launch, before deciding whether to apply for the next BTO launch.

HDB will also raise the monthly household income ceiling for purchase of three-room standard flats in the non-mature estates from S$3,000 to S$5,000.

This is allow low- to middle-income first timer households more choices of affordable flats.

HDB said the new income ceiling is applicable for the purchase of three-room standard flats in the BTO projects at Sengkang and Bukit Panjang launched on Feb 28, 2011.

Eligible applicants who have submitted their application to buy a four-room or five-room flat and now wish to buy a three-room standard flat instead, will be allowed to do so.

HDB said it would waive the application fee for resubmission.

HDB will notify applicants who have already applied for a flat under this BTO exercise to reconsider their choice of flat type in view of the revised income ceiling.

-CNA/wk

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

SHORTER PROCESSING TIME FOR BTO FLATS »« Luxury housing prices in S’pore stay stable

Luxury housing prices in S’pore stay stable

Luxury housing prices in S’pore stay stable

By Travis Teo | Posted: 02 March 2011

SINGAPORE : Prices of Singapore’s luxury prime housings remained stable for the second straight quarter as buyers stayed cautious after recent government tightening measures, according to Jones Lang LaSalle.

Overall, the Singapore mass residential market saw a 12 per cent increase in prices in 2010 driven by positive sentiment on the back of strong economic performance.

However the high-end market has been more subdued over the same period with prices increasing 9 per cent.

Hong Kong led the price growth in the region, with quarter-on-quarter prices up 6.4 per cent despite the latest round of its government measures aimed at curbing speculative demand.

Broadly, Jones Lang said luxury residential prices in Asia are likely to remain stable or see slower growth for 2011 as buyers have become more cautious about further tightening measures.

At the same time, prices will not likely be pressured downwards as they are supported by rising rental levels and low holding costs.

However, the real estate firm said luxury markets in Hong Kong and Singapore should retain some price momentum due to strong end-user demand

And it added that long-term investors will continue to be attracted by the current low holding costs and the potential hedge against inflation.

- CNA /ls

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

First-time flat buyers to get more help »« S’PORE LUXURY PRIME HOME PRICES REMAIN STABLE

S’PORE LUXURY PRIME HOME PRICES REMAIN STABLE

S’PORE LUXURY PRIME HOME PRICES REMAIN STABLE

Prices for Singapore’s luxury prime homes have remained stable for the second consecutive quarter.

In its latest report on residential homes, property consultant Jones Lang LaSalle said prices in the fourth quarter of last year were unchanged from the third quarter as buyers remained cautious after recent government tightening measures.

Hong Kong led the rise in the luxury segment, with quarter-on-quarter prices up 6.4 per cent despite the latest round of government measures aimed at curbing speculative demand.

Overall, the Singapore mass residential market increased by 12 per cent last year driven by positive sentiment on the back of strong economic performance. However, the high end market has been more subdued over the same period with prices increasing 9 per cent.

The real estate firm said luxury markets in Hong Kong and Singapore should retain some price momentum due to strong end-user demand.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

Luxury housing prices in S’pore stay stable »« ASIA-BASED ASSET MANAGEMENT FIRMS HAVE ROOM TO GROW

ASIA-BASED ASSET MANAGEMENT FIRMS HAVE ROOM TO GROW

ASIA-BASED ASSET MANAGEMENT FIRMS HAVE ROOM TO GROW

by Stella Lee

SINGAPORE – Asia-based asset management companies need to grow and meet the investment demands that have come with increasing wealth and capital in Asia.

Many of these companies are small, sometimes having assets under management (AUM) under US$200 million (S$254 million). These are low figures compared to the assets under management of large Western asset management firms such as BlackRock, which manages US$390 billion in Asia alone.

Mr Gerald Lee, CEO at Lion Global Investors, said: “Their assets under management is not optimal. Most of them are managing an amount of money that is too small for them to enjoy economies of scale. That makes competing with the big boys like BlackRock and StateStreet very difficult. If they want to grow big they probably have to have a slightly different strategy.”

Asian asset management firms have traditionally grown organically and hence, stayed small. Experts say that possible ways to expand can include sharing assets under management by pooling resources across firms or through the acquisition of other smaller asset management firms.

Japanese asset management company Nikko acquired DBS Asset Management in December and asset management firms across Asia are expected to follow suit. Mizuho Securities has expressed similar interest.

The growing demand for asset management comes as no surprise as Asia generates surplus wealth that necessitates more channels for investment.

Mr Bernard Lee, associate professor and deputy director of the Sim Kee Boon Institute for Financial Economics at the Singapore Management University, says these Asia asset management firms prefer fund managers who are Asia-based and who understand the issues and investing complexities of the region.

“You are going to see a lot of surplus wealth. For instance, Chinese surplus wealth needs to look for opportunities in the neighbouring countries,” he said.

However, opinion is divided on asset classes or sectors that Asian asset management firms are most likely to focus on going forward. These range from public markets, such as fixed income and equity, to alternative classes, such as private equity and infrastructure funds.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

S’PORE LUXURY PRIME HOME PRICES REMAIN STABLE »« NEARLY HALF OF S$1B IN PRODUCTIVITY FUND USED

NEARLY HALF OF S$1B IN PRODUCTIVITY FUND USED

NEARLY HALF OF S$1B IN PRODUCTIVITY FUND USED
———————————————
Good start to productivity drive: DPM Teo
by Esther Ng

SINGAPORE – A year after a raft of measures were introduced to cure the economy’s Achilles heel, the Republic has made a “good start” in its bid to boost productivity, as the man tasked to oversee the national effort put it.

In Parliament yesterday, Deputy Prime Minister Teo Chee Hean, who chairs the National Productivity and Continuing Education Council, gave an update on the progress: The council has endorsed the productivity roadmaps of seven of the 12 sectors, with the remaining set to submit their blueprints this year.

And almost half of the S$1 billion National Productivity Fund has been disbursed on productivity initiatives.

Said Mr Teo: “We have made a good start in our national productivity drive. I am heartened that many have already stood up to be counted… But we need many more to do so.”

The sectors that have received the council’s nod on their plans – which include construction, retail, electronics and F&B – account for a quarter of Singapore’s Gross Domestic Product (GDP) and about a third of the country’s workforce. The sectors that have yet to do so include manufacturing, infocommunications and health.

Singapore’s productivity rose by 10.7 per cent last year – based on preliminary estimates – on the back of stellar economic recovery.

But, Mr Teo said: “We should not be complacent and declare victory prematurely. It is only one year, and the exceptional productivity performance was due to our strong economic recovery.”

During the Budget debate on Monday, West Coast GRC MP Ho Geok Choo and Hong Kah GRC MP Amy Khor voiced their concerns that small and medium enterprises (SMEs) would need more help to access Government assistance schemes.

Mr Teo responded yesterday that the SME-PRO (SME Productivity Roadmap) – a joint initiative by SPRING and the Singapore Workforce Development Agency (WDA) – was introduced to provide such enterprises a “systematic, 3-step approach” to enhance productivity.

Urging SMEs to come forward with ideas to improve productivity, Mr Teo pointed out SPRING also has a micro-loan programme that offers loans of up to S$100,000 for Singapore SMEs with 10 or fewer employees.

Last August, the labour movement had launched a S$40-million initiative – tapping on the National Productivity Fund – which was aimed at driving productivity and improving the skills and pay of low-wage workers.

According to labour MP Heng Chee How, about 200 companies have signed up.

Still, another labour MP Josephine Teo noted the “stubborn refusal by some businesses to embrace the productivity challenge”.

Said Mrs Teo: “Their common refrain is there is a limit as to how much they can automate and so tax credits for productivity and innovation are not useful.”

Noting that productivity was “not just about automation or cutting manpower”, Mr Teo called on companies to take a “holistic, comprehensive and fundamental re-look of their businesses”.

Mr Teo reiterated that he was “not looking for quick solutions”. He likened productivity to brisk-walking – rather than running a marathon “without an end”. Said Mr Teo: “You do it regularly every week. It doesn’t exhaust or drain you.”

For the year ahead, the council intends to leverage on the strengths of networks.

Said Mr Teo: “The Government cannot do this alone. We need more ground-up initiatives from the unions, trade associations or chambers of commerce.”

Another key area is good management practices to boost productivity and the Manpower and Education Ministries – together with the WDA – will work on promoting such training, said Mr Teo.

The Manpower Ministry is also driving the effort to “raise the overall quality of human resource management” here, he added.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

ASIA-BASED ASSET MANAGEMENT FIRMS HAVE ROOM TO GROW »« HDB launches three BTO projects in Sengkang, Bukit Panjang

HDB launches three BTO projects in Sengkang, Bukit Panjang

HDB launches three BTO projects in Sengkang, Bukit Panjang

Posted: 28 February 2011

SINGAPORE: The Housing & Development Board (HDB) has launched three Build-To-Order (BTO) projects comprising 1,593 standard flats.

Two of the projects – Fernvale Flora and Fernvale Gardens – are located in Sengkang.

The third, Segar Vale, is in Bukit Panjang.

Units in Segar Vale cost between S$83,000 and S$354,000 while the units at the two Sengkang BTO projects cost between S$88,000 and S$378,000.

Ninety-five per cent of the flat supply will be set aside for First-Timer households.

First-time flat buyers are estimated to use 16 per cent to 24 per cent of their monthly household income to meet their monthly loan payments for flats in Fernvale Flora, Fernvale Gardens and Segar Vale.

HDB said it has ramped up its new flat supply significantly to meet the demand from first-timer households.

This year, it plans to offer up to 22,000 new flats under BTO, if demand is sustained.

In the first six months of 2011, flat buyers can look forward to about 11,000 new BTO flats.

These projects will have a good geographical spread in towns/estates such as Bukit Panjang, Jurong West, Punggol, Sengkang and Sembawang.

The next BTO launch in March 2011 will offer about 1,500 flats in Jurong West and Sengkang.

- CNA/fa

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

NEARLY HALF OF S$1B IN PRODUCTIVITY FUND USED »« Singapore property prices continue to firm despite cooling measures

Singapore property prices continue to firm despite cooling measures

Singapore property prices continue to firm despite cooling measures

By Millet Enriquez | Posted: 28 February 2011

SINGAPORE : Non-landed private home prices in Singapore galloped higher in January despite the government’s recent stringent measures to choke off property speculation.

Flash estimates compiled by the National University of Singapore Institute of Real Estate Studies show the overall Singapore Residential Price Index rising by 2.6 percent month-on-month.

This is more than double the one percent increase in the index recorded in December.

The central region sub-index jumped 2.7 percent to 165.3 points, a reversal from a 0.8 percent decline in December.

Meanwhile, the non-central sub-index rose 2.5 percent to 158.8 points, slightly higher than the 2.3 percent increase in December.

Analysts say low interest rates and strong economic growth are pushing home prices up.

While some analysts say it is too early for the numbers to reflect the full impact of the cooling measures, others say it is alarming that prices are still rising so quickly.

And they say that if transaction volumes and prices continue to rise, another round of cooling measures cannot be ruled out.

Colin Tan, Head – Research and Consultancy, Chesterton Suntec International, said: “For month-on-month, it’s 2.6 percent which translates to over 30 percent a year so it’s rather robust and is quite alarming.

There’s still a lot of demand. A lot of these buyers are actually looking to buy real property as a hedge against inflation.

That’s why over the past few days, we have also seen news articles of people moving into gold and other avenues as a hedge against inflation. So property is no exception.

If the price increase continues at this pace, certainly I think the authorities will have to look at it. They may try to postpone and see, give it more time.

But if nothing changes, yes, we can expect another set of cooling measures.”

- CNA/ch

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

HDB launches three BTO projects in Sengkang, Bukit Panjang »« MND REVISES DC RATES

MND REVISES DC RATES

MND REVISES DC RATES

by Julie Quek

SINGAPORE – The Ministry of National Development (MND) has revised the rates for development charges (DC) for the next six months, as part of its half-yearly review.

The increases in the rate of DC, the tax payable by the developer when a property site is developed into a more valuable project, will take effect from March 1.

On average, the rates for landed residential property have increased by 18 per cent, with the largest increase of 25 per cent in Sector 108, which includes Holland Road, Sixth Avenue, Eng Neo Avenue, Adam Road and Farrer Road areas.

Some analysts, like Ms Callie Liew, COO of the HSR Property Group, said the increase will lead to a corresponding increase in land costs and expect developers will be “more measured” in their bids going forward.

However, other market watchers said the increase in DC rates is unlikely to have a major impact on collective sales.

Dr Chua Yang Liang, head of research, South-East Asia, Jones Lang LaSalle, said: “DC, as a component of overall development charges, is actually quite a small component. And DC charges are only imposed on those developments that have the potential to be over and above what the site has been approved for.”

Analysts estimated that about 50 to 60 per cent of en bloc projects have no development charge component. They said that only projects with a higher development charge component of 5 per cent or more of total land value, such as land sites re-zoned for a different use, will likely feel a significant pinch from the latest increase.

Meanwhile, DC rates for non-landed residential properties have also been increased, by an average of 11 per cent. The largest increase is 17 per cent in Sector 100, which includes Upper Serangoon Road and Punggol.

Analysts said that before the DC rates are revised, the Chief Valuer takes into consideration how the market has behaved over the previous six months.

Dr Chua said: “It depends very much on where the market is heading, whether there are transactions recorded over the next six months. If there are values that rise, then chances are DC rates may rise accordingly.”

The rates for commercial development have increased by an average of 13 per cent, with the largest increase of 29 per cent in Sector 9, which includes Peck Seah Street, Maxwell Road and the Anson Road area.

For hotels and hospitals, the rates have gone up by an average of 27 per cent, while development charges for industrial and warehousing use have been raised 8 per cent on average.

The ministry said the DC rates for other land uses – which include places of worship, open space, agriculture, drain and roads – have not changed. It added that if there is any disagreement over the development charges payable, developers and owners can opt for a case-by-case valuation by its Chief Valuer.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

Singapore property prices continue to firm despite cooling measures »« THREE BTO PROJECTS LAUNCHED