Limit certain buyers from resale HDB market: analyst

Limit certain buyers from resale HDB market: analyst

Jan 19, 2012 – PropertyGuru.com.sg

One way cash-over-valuation (COVs) can be lowered is if the government limits private homeowners and second-time buyers from acquiring resale HDB flats, according to Tejaswi Chunduri, PropertyGuru’s real estate analyst.

Her comments come after Minister for National Development, Khaw Boon Wan, highlighted in his blog yesterday that private property owners topped the list of median COV paid in Q4 2011 at S$45,000.

As for second-timers, first-timers, permanent residents (PRs) and singles, they paid S$34,000, S$33,000, S$32,000 and S$31,000 respectively.

“Private homeowners and second-timers have more money to spend and can afford the higher COVs asked by sellers,” said Chunduri. “If they are willing to pay a higher price for a better location, the seller would certainly be happy.”

According to some property agents, private homeowners who are eyeing for HDB flats include those aged 40 to 50, and who have up to S$200,000 worth of savings.

They added that there is a growing interest among this group of buyers for HDB flats. However, Mr Khaw said it is unfair to blame the higher prices on a particular group.

The Housing Board has always maintained that “prices are influenced by a myriad of factors such as pace of economic growth and market sentiments.”

Affirming that home prices have shot up within the last two to three years, Mr Khaw asked for the public’s patience, as he has been working for the market to “stabilise in due course”.

Source : PropertyGuru

« Cooling measures may need tweaking, says Far East

Cooling measures may need tweaking, says Far East

Cooling measures may need tweaking, says Far East

Jan 19, 2012 – PropertyGuru.com.sg

The 10 percent additional buyer’s stamp duty (ABSD) for foreigners is ‘a very big number’, according to Philip Ng, CEO at Far East Organization (pictured), noting that the recent property cooling measures may need to be calibrated, based on how persistently sales volumes drop.

Ng added that the cooling measures had prompted Far East and its partners to drop the prices for their soon-to-launch 992-unit Watertown project in Punggol Central, as foreigners have shown relatively less interest in the project compared to launches done prior to the cooling measures.

Consequently, the measures may eventually need tweaking, he said.

“Indeed, there could be some calibration or tiering perhaps, but that’s something that has to be discussed with good data between developers and policymakers.”

“At this point, it’s pretty early days and you can see that there was already a drop in December,” he said, referring to the 63 percent plunge in new private home sales last month.

Ng said implementing the policy for a while will gauge whether the sales decline is persistent before finally deciding if the measures must indeed be tweaked.

In response to the ABSD, unit prices at Watertown were reduced by five to eight percent.

Source : PropertyGuru

Limit certain buyers from resale HDB market: analyst »« Helping S’poreans own first flat is a priority, says Khaw

Helping S’poreans own first flat is a priority, says Khaw

Helping S’poreans own first flat is a priority, says Khaw

Jan 17, 2012 – PropertyGuru.com.sg

National Development Minister Khaw Boon Wan stressed that the government’s priority is to help Singaporeans own their first HDB flat.

“Our priority is to help Singaporean families own their first flat,” he said.

“I think our advice to our constituents is we will help you, we’ll help practically every Singaporean family to own their first flat, and buy within your budget and then please keep it.”

Mr Khaw was answering a question in Parliament yesterday on whether his ministry would consider restricting the sale of three-room or smaller flats to lower-income households only.

“Doing so will deprive flat owners of the full market value of their flats.”

He also noted that those who have never benefited from any housing subsidy “should get more subsidy than those who have already benefited once before.”

Source : PropertyGuru

Cooling measures may need tweaking, says Far East »« Don’t put the blame on PRs: Khaw

Don’t put the blame on PRs: Khaw

Don’t put the blame on PRs: Khaw

Jan 17, 2012 – PropertyGuru.com.sg

Rising resale HDB flat prices should not be blamed on permanent residents (PRs), but on local private property owners – the buyers who pull up the stakes for the cash premium on flats, said Khaw Boon Wan, Minister for National Development.

Mr Khaw’s statement was made in response to a query raised by Zaqy Mohamad, Member of Parliament for Choa Chu Kang GRC, as to whether the Housing Board would limit the sale of resale three-room and smaller flats to just lower-income Singaporeans.

Mr Zaqy argued that PRs are generally perceived as contributing to the rising prices of resale flats and the increasing amounts of cash premiums paid to sellers, known as the cash-over-valuation (COV).

According to Daniel Tan, a real estate agent from C&H Properties, sellers of four- to five-room resale units in Woodlands, Bedok and Ang Mo Kio could command COVs of between S$50,000 and S$80,000 in August last year.

When HDB raised the income ceiling for new flats and housing subsidies, Tan noted that these sellers lowered their expectations to under S$50,000.

By the third quarter of last year, median COVs ranged from S$27,900 to S$34,000.

“The data (is) quite distinct,” noted Mr Khaw. “Typically, the PRs pay the lower COVs… among the groups, the higher COVs are often by private property owners or former private property owners… especially the enbloc owners or residents, probably with a lot of cash and still need a roof… they are the ones who bid up the COV.”

Hence, he deemed that it is unfair to blame the higher resale prices on a particular group.

Affirming that home prices have shot up within the last two to three years, Mr Khaw asked for the public’s patience, as he has been working for the market to “stabilise in due course”.

Source : PropertyGuru

Helping S’poreans own first flat is a priority, says Khaw »« Home buyers and sellers wary of market conditions

Home buyers and sellers wary of market conditions

Home buyers and sellers wary of market conditions

Jan 16, 2012 – PropertyGuru.com.sg

Although a healthy number of prospective buyers have been seen at showflats a week before the Chinese New Year, they prefer to be cautious and keep their options open.

A Straits Times report revealed that despite the steady stream of home buyers flocking to showflats, very few units are being bought. Several analysts said the looming decline in property prices due to the recent cooling measures may be keeping many potential buyers at bay.

Around 10 apartments with an average price of S$850 per sq ft were sold at Qingjian Realty’s 590-unit Riversound Residence in Sengkang. The weekend sales brought the total to over 60 units since the project was launched a week ago.

Zuo Haibin, Managing Director at Qingjian Realty, noted that the effect of the cooling measures had been significant, with many people expressing interest in properties but only a handful committing to buy.

Meanwhile, property agents are reporting more enquiries from home sellers.

Since the implementation of the measure on 7 December 2011, agents said they have been getting more phone calls from clients who are worried about the effect of the additional stamp duty and the global economic uncertainty on the prices of their homes.

Clients are asking if they should quickly sell their properties while prices are still high.

Source : PropertyGuru

Don’t put the blame on PRs: Khaw »« New measures have already dampened property market

New measures have already dampened property market

New measures have already dampened property market

Jan 13, 2012 – PropertyGuru.com.sg

With 3,092 new homes sold from October to November, the residential market started Q4 2011 “on a strong note”, with new home sales for the first 11 months hitting 15,393 units, before the new set of cooling measures were introduced in December, according to CBRE in its latest quarterly report.

Before the additional buyer’s stamp duty (ABSD), strong sales activity was seen in Este Villa, Bedok Residences and The Palette.

The executive condominium (EC) market also performed well, with five projects adding a record 2,535 ECs to the market. With more choices and a 20 to 25 percent price gap between mass-market condominiums and ECs in the same location, buyers opted for over 2,100 EC units.

However, the ABSD has affected the property market. “The introduction of ABSD in December 2011 has dampened buying sentiments. Nevertheless, the total volume of new homes sold (excluding ECs) in 2011 may come close to 16,000 units, short of the record 16,292 units sold in 2010,” said CBRE.

Moving forward to this year, CBRE expects a 15 percent decline in demand for new homes and a drop in prices of luxury/prime (10 to 15 percent) and mass-market homes (five to 10 percent). Landed home prices may moderate by less than five percent, with limited supply and foreigners prohibited from purchasing them.

In terms of investments, real estate investment yielded S$29.5 billion in 2011. With more government land sites awarded and K-Reit’s 87.5 percent acquisition of Ocean Financial Centre from Keppel Land, investment sales rose 59 percent to S$7.6 billion in Q4.

“Total investment sales in 2012 are expected between S$20 million and S$25 million reflecting the more cautious outlook. This is based on weaker rental outlook and tighter liquidity conditions expected ahead,” it noted.

Source : PropertyGuru

Home buyers and sellers wary of market conditions »« S’pore govt releases 2 residential sites for sale

S’pore govt releases 2 residential sites for sale

S’pore govt releases 2 residential sites for sale

Posted: 19 January 2012 1139 hrs

SINGAPORE: Two new residential sites have been launched for sale by public tender on Thursday, to provide home-buyers and developers with more choices for private housing.

The Urban Redevelopment Authority (URA) and Housing and Development Board (HDB) said the sites are at Hillview Avenue and Upper Serangoon View/Upper Serangoon Road.

The two parcels are under the Confirmed List of the first half of this year’s (1H2012) Government Land Sales (GLS) Programme.

Together, they will yield about 805 units, as part of the total 7,000 residential units to be launched under the GLS Programme for the first six months of this year.

The land parcel at Hillview Avenue is about 1.26 ha, located within an established residential estate in the west region.

The site can potentially yield about 370 private housing units and is near the future Cashew and Hillview MRT Stations.

These stations are part of the Downtown Line 2 Mass Rapid Transit system that will provide residents with convenient access to the city centre when it is completed in 2015.

The land parcel at Upper Serangoon View/Upper Serangoon Road is about 1.24 ha, and is located in the north-east region and in close proximity to Hougang MRT Station and Bus Interchange.

Earmarked for an executive condominium development, the site can potentially yield about 435 units and is easily accessible via nearby TPE, KPE and CTE.

- CNA/cc

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

New measures have already dampened property market »« HDB studio apartments not suitable for younger singles: Khaw

HDB studio apartments not suitable for younger singles: Khaw

HDB studio apartments not suitable for younger singles: Khaw

Posted: 18 January 2012 1525 hrs

SINGAPORE: National Development Minister Khaw Boon Wan said HDB studio apartments do not fit the housing needs of younger singles.

He said these apartments are sold with a short 30-year lease which is appropriate for retirees but not necessarily for younger people.

Mr Khaw said this in response to a question from MP Dr Intan Azura Mokhtar.

She had asked if his ministry will consider allowing singles who are 55 years old or younger to buy HDB studio apartments.

Dr Intan said: “There are residents who have come and approached me. They are singles, without family members or not very well-to-do. They can’t afford the high COV of resale flats or buy a flat from the private market. There isn’t much option for them.”

Mr Khaw replied: “There’s a wide range of potential house buyers so housing is a very complex problem. I will approach these problems systematically, I have to set priorities. In due course, I will be able to address all the various segments. But I decided to just zero in for the first 12 months on the first-timers and I think we’re delivering some results.”

- CNA/fa

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

S’pore govt releases 2 residential sites for sale »« HDB housing preferred option in easing rental flat demand

HDB housing preferred option in easing rental flat demand

HDB housing preferred option in easing rental flat demand

Posted: 17 January 2012 2032 hrs

SINGAPORE: Housing residents in an HDB flat within an HDB community, with access to HDB estate facilities is preferred over dormitory-type temporary housing.

The latter may not be suitable for family-based households.

National Development Minister Khaw Boon Wan said this in a written parliamentary reply, in response to Chua Chu Kang GRC MP Zaqy Mohamad.

Mr Zaqy had asked if the government will consider easing the short-term demand for HDB rental housing by providing temporary lodging, similar to those built for foreign worker dormitories until the new rental flats are completed.

Mr Khaw said currently, there are 1,900 applicants on the HDB rental flat waiting list.

The average waiting time has been shortened to five months.

He said as the government ramps up the supply of rental flats, it’ll be able to clear the outstanding demand while meeting demand from new applicants.

Those in the rental queue who urgently need temporary housing can be offered an HDB flat under the Interim Rental Housing Scheme.

- CNA/ck

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

HDB studio apartments not suitable for younger singles: Khaw »« Private home sales fall in December