Priority is to help S’poreans own first flat: Khaw

Priority is to help S’poreans own first flat: Khaw

Posted: 16 January 2012 1448 hrs

SINGAPORE: National Development Minister Khaw Boon Wan has said imposing an income ceiling for resale flats will deprive flat owners of the full market value of their flats.

He was answering a question in Parliament on Monday on whether the ministry would consider limiting the sale of 3-room or smaller flats to lower income Singaporeans.

Chua Chu Kang GRC MP Zaqy Mohamad noted that the Cash-Over-Valuation (COV) for 3-room flats is much higher than that for 4- and 5-room flats in recent years.

He added that the huge COV is a barrier for those who need to downgrade from a bigger flat.

Mr Khaw said: “Our priority is to help Singaporean families own their first flat. But here, the member is obviously talking about second-timers, somebody who has bought it and then sold the flat for whatever reason, and then try to come back, and face difficulties.

“The data do not quite suggest so because I’ve been looking at the median income of BTO flat applicants, the latest batch. For 3-roomers, it’s about S$2,500 per month.

“But for resale flat, again the latest data, the median income is S$3,000, so which is not significantly different from the BTO applicants…

“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.

“If you want to upgrade, that is a good development, but make sure, do your sums and then you should not have a problem doing so.”

- CNA/al

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Private home sales fall in December »« HDB pumps in S$11m to help 3,300 shops

HDB pumps in S$11m to help 3,300 shops

HDB pumps in S$11m to help 3,300 shops

Posted: 13 January 2012 1133 hrs

SINGAPORE: The Housing and Development Board (HDB) will set aside another S$11 million to help 3,300 shops in 35 sites enhance their business vibrancy and competitiveness.

This is as part of its fourth batch of the Revitalisation of Shops (ROS) scheme.

HDB will also extend its co-funding portion for promotional events from the current three years to six years, in response to requests from the Merchant Associations (MAs).

The Revitalisation of Shops (ROS) scheme is part of the Government’s ongoing measures to help HDB retailers.

Piloted in November 2007, it has three components: co-funding for upgrading of common area, co-funding for promotional events and rent-free periods for tenants to renovate their shops.

The MAs may choose to take up all, or a combination of the measures.

For this fourth batch, HDB has selected a total of 35 sites for ROS co-funding: four sites for upgrading of common area and promotional events, and 31 sites for promotional events.

- CNA/fa

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Priority is to help S’poreans own first flat: Khaw »« HDB resale prices moderate in Q4

HDB resale prices moderate in Q4

HDB resale prices moderate in Q4

by Joanne Chan 04:47 AM Jan 04, 2012

SINGAPORE – The tide could be turning in favour of buyers, with home prices in Singapore showing signs of moderating.

Prices of resale Housing and Development Board (HDB) flats grew 1.7 per cent in the last quarter of last year, compared to the 3.8 per cent growth seen in the third quarter.

This brings the HDB Resale Price Index – which provides information on the general price movements in the public residential market – to 190.4.

The figures confirmed what the market had been expecting – a moderation in home prices following a year of policy tweaks by the Government to cool the red-hot property market, while home buyers are becoming more cautious in light of the uncertain economic outlook.

Market watchers also pointed out that cash-over-valuation – the cash premium paid upfront for resale flats – is showing signs of softening, dropping between S$5,000 and S$8,000 in the last quarter of last year, and could bottom out at around S$20,000 to S$30,000.

Mr Mohd Ismail, CEO of PropNex, said buyers could have more bargaining power in areas where prices are very high, where houses are on low floors, or affected by ethnic ratios.

“And when such houses are put on the market, you don’t even get a buyer at zero cash-over-valuation. Therefore, if you say are there possibilities of picking houses today without paying any cash … yes there are. But they may not have the best of the panoramic view and so on,” he said.

Some expect HDB resale prices to correct by up to 3 per cent this year, with the ramped-up supply of Build-To-Order (BTO) flats expected to continue to draw first-time home buyers away from the resale market.

Said Mr Eugene Lim, executive officer of ERA Realty: “The success rate is higher now. It is a lot better. In fact, any first-timer who applies for a flat is almost certain of getting one. So, this improved success ratio … translates into lower demand in the resale market.”

Last year, the HDB offered about 28,000 flats – 25,000 under the BTO system and about 3,000 units under the Sale of Balance Flats exercise.

This year, buyers can look forward to 25,000 BTO flats coming on the market.

The HDB said “these projects will have a good geographical spread in the various towns”.

It will offer nearly 3,900 BTO flats in Choa Chu Kang, Punggol, Sengkang and Tampines this month.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

HDB pumps in S$11m to help 3,300 shops »« Private property prices continue to moderate

Private property prices continue to moderate

Private property prices continue to moderate

by Tan Weizhen 04:47 AM Jan 04, 2012

SINGAPORE – Despite the property market still not feeling the full impact of the latest cooling measure, flash estimates showed prices of private homes were almost flat – rising by just 0.2 per cent – between October and December last year.

In a press release yesterday, the Urban Redevelopment Authority noted: “The rate of increase in private residential property prices has continued to moderate for the ninth consecutive quarter”. The 0.2-per-cent increase in the fourth quarter was in contrast to a 1.3-per-cent rise in the previous quarter.

With buyers adopting a wait-and-see attitude, property analysts Today spoke to pointed out that the estimates do not reflect the impact of the recent cooling measure, which has been described as the harshest yet.

Which is why some of them felt that prices of private homes could fall – for the first time since 2009 – in the coming months.

An increased supply of private homes, coupled with the impact of the cooling measure, could see private home prices fall by about 3 per cent in the year ahead, said Propnex CEO Mohamed Ismail.

However, Orange Tee director of research and consultancy Tan Kok Keong told Today that he expects prices to fall by between 1 and 2 per cent at most between January and March.

On Dec 7, the Government announced additional buyer’s stamp duties (ABSD) which will be imposed in addition to the existing tax. Foreigners and corporations will be hardest hit, with a 10-per-cent ABSD imposed on any private homes they buy.

While the indications are that private home prices are stabilising, analysts noted that the fourth quarter is the traditional lull period for the property market.

According to the URA, its flash estimates are compiled “based on transaction prices given in caveats lodged during the first 10 weeks of the quarter supplemented by information on the number of new units sold by developers”.

The statistics will be updated next month, when more data on the caveats lodged and the take-up of new projects are captured.

The URA said: “Past data has shown that the difference between the quarterly price changes indicated by the flash estimate and the actual price changes could be significant when the change is small. The public is advised to interpret the flash estimates with caution.”

SLP International research head Nicholas Mak said the revised figure would likely vary by between 0.1 and 0.2 per cent.

He said: “But if the final figures are low, it’s hard to tell if it is a direct impact from the ABSD. There are other factors such as the euro zone crisis and the Singapore economy.”

He added: “The ABSD alone will not cause prices to drop, as it does not eliminate demand. Singaporeans and permanent residents, who are not so affected by the new measure, will sustain demand and hence prices.”

Concurring, Chesterton Suntec International research and consultancy head Colin Tan said buyers should not hold their breath for prices to drop.

He said: “So long as we have slow growth or at least positive growth, so long as employment holds up, I think we do not expect prices to correct anytime soon.”

Source : TODAYonline – MediaCorp Press Ltd’s copyright

HDB resale prices moderate in Q4 »« Govt ready to supply land for 5,000 ECs

Govt ready to supply land for 5,000 ECs

Govt ready to supply land for 5,000 ECs

by Venus Hew 04:46 AM Dec 28, 2011

SINGAPORE – More land will be released for the development of executive condominiums (ECs) to meet the housing aspirations of higher-income Singaporeans.

The Government is prepared to supply land sites for 5,000 EC units next year, Minister of State for National Development and Manpower Tan Chuan-Jin said yesterday at the 52nd anniversary of the Real Estate Developers Association of Singapore (REDAS).

The announcement comes after the Government in August raised the monthly income ceiling for the purchase of new ECs to S$12,000 from S$10,000. Mr Tan said that the higher ceiling had benefited around 220 households who booked their ECs after August.

ECs, a hybrid of public and private housing, were introduced in 1995. Since their introduction, 14,600 EC units have been launched by developers and 3,000 units are coming on-stream.

Still, Mr Tan pointed out that the majority of Singaporeans would continue to live in public housing.

He said that while the Government remained committed to helping first-time owners and newly-weds buy their own homes, it would pay more attention to helping HDB second-timers next year.

Amid uncertainty in the external economic environment with more subdued growth prospects globally, Mr Tan called on Singaporeans to be prudent when purchasing a new home and to “buy within your means”.

He warned: “The current low interest rates have enhanced the affordability of housing. But such low rates are not the ‘new normal’ and will eventually rise. Buyers need to do their sums and be careful not to over-commit themselves in their borrowing for property purchases.”

As property prices continued to climb to record highs, the Government has introduced four rounds of measures since 2009 to cool the market, including the latest this month that imposed additional buyers’ stamp duties (ABSD) of 10 per cent for foreigners and non-individuals.

Permanent residents who own one and are buying a second and subsequent residential property and Singaporeans who own two and are buying the third and subsequent one would have to pay an ABSD of 3 per cent.

REDAS president Wong Heang Fine said yesterday developers would be hit by a double whammy as a result of the latest cooling measures: First, the ABSD may lead to a higher cost structure for developers due to the higher cost of acquiring land and, second, there may be knock-on effects on mortgages and a decline in property values.

“Developers are naturally concerned when they are also required to pay ABSD with interest if they fail to complete selling all the units in a residential project within five years of land acquisition. These measures are indeed a double whammy for developers,” said Mr Wong.

Mr Tan said he did not expect developers to welcome the measures even as he pointed out that many people would agree that “it is in our common interest to have a sustainable and stable property market”.

Singapore’s property market is likely to attract investments because of the volatile equity markets and uncertainty in Europe, he said. He added that the latest cooling measures introduced by the Government were intended to moderate such investment and avoid a major correction in the future.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

Private property prices continue to moderate »« Sing Holdings to buy Robin Rd freehold site for S$52 million

Sing Holdings to buy Robin Rd freehold site for S$52 million

Sing Holdings to buy Robin Rd freehold site for S$52 million

04:46 AM Dec 15, 2011

SINGAPORE – Sing Holdings, a Singapore-listed company, has signed a sale and purchase agreement to acquire a freehold residential site at 2-8 Robin Road (picture) for S$52 million, it said yesterday.

The collective sale deal was signed via its wholly owned subsidiary, which owns three adjoining sites.

The price for the 16-unit apartment in District 10 translates to S$1,462 psf per plot ratio based on an allowable plot ratio of 1.54, including balconies, said Ms Yong Choon Fah, executive director of marketing agent Credo Real Estate.

“Development charge (DC) is not payable for the 10 per cent balconies GFA space allowed,” she added.

The four sites, when amalgamated, will form an island site flanked by Bukit Timah Road, Robin Road, Robin Drive and Robin Close across a land area of about 87,962.6 sq ft.

The total purchase price for the four sites is S$176.33 million.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

Govt ready to supply land for 5,000 ECs »« Developers may use incentives to boost sales

Developers may use incentives to boost sales

Developers may use incentives to boost sales

by Wong Siew Ying 04:46 AM Dec 15, 2011

SINGAPORE – Property developers are likely to offer incentives to draw in buyers and boost sales amid tighter regulations by the Government and a slowdown in the economy, according to analysts.

Singapore imposed unexpectedly last week a second round of cooling measures this year, a move described by analysts as harsh. The most recent measures impose an additional stamp duty on property purchases by foreigners and on locals seeking to buy multiple residential units.

“If transaction volumes were to decline and sustain into 2012, then prices are expected to be affected,” said Dr Chua Yang Liang, research head at Jones Lang LaSalle. Mr Chua has forecast a decline of between 10 and 15 per cent, with prices for high-end properties to suffer the most with an expected drop of 20 per cent.

Analysts expect new private homes sales to fall to between 15,000 and 16,000 units this year from nearly 16,300 units last year. Sales volume for next year is likely to dip further to fewer than 14,000 units.

To mitigate the impact of the cooling measures, developers may start offering incentives.

“They may have to even align their prices to move sales or look at incentives,” said Ms Chia Siew Chuin, director of research and advisory at Colliers International. These may include “extending rebates by using discounts or even absorbing stamp duty on behalf of buyers or extending other kinds of incentives not only to buyers but also to agents to help them move sales”.

Still, developers will have to continue to launch new projects, especially those in the suburban areas mainly because “the Government sales of sites that have been launched in the last 24 months will have to come into the market. They have to do it now as these are on 99-year leases”, said Mr Donald Han, vice-chairman at Cushman & Wakefield.

As such, developers are likely to be more measured in their land bids next year, and prices for sites that are less attractive could dip by some 10 to 12 per cent, analysts that MediaCorp spoke to said.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

Sing Holdings to buy Robin Rd freehold site for S$52 million »« Liang Seah shophouses for sale

Liang Seah shophouses for sale

Liang Seah shophouses for sale

04:45 AM Dec 13, 2011

Three adjoining conservation shophouses at Liang Seah Street have been opened for an Expression of Interest tender exercise by property consulting firm DTZ.

The 999-year leasehold shophouses are located opposite Bugis Junction on a 2,694-sq-ft site and have a total floor area of about 11,529 sq ft. The properties are currently occupied. The tender will close on Jan 13 next year.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

Developers may use incentives to boost sales »« Strong response for EC at Choa Chu Kang

Strong response for EC at Choa Chu Kang

Strong response for EC at Choa Chu Kang

By Hetty Musfirah | Posted: 11 January 2012 1946 hrs

SINGAPORE: There’s been a strong take-up rate for the latest executive condominium (EC) project at Choa Chu Kang.

Some 150 units of The Rainforest were sold on the first day of booking.

The latest 466-unit development offer units priced from S$601,000 to S$1.01 million.

The Rainforest also saw strong demand from second-time buyers.

Only five per cent of the project is allocated to second-time buyers and all these units were taken up on Wednesday, said the developers City Developments Limited and TID Pte Ltd – a joint venture between Hong Leong Group and Mitsui Fudosan.

- CNA/ck

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Liang Seah shophouses for sale »« Five BTO projects launched, offering 3,923 flats

Five BTO projects launched, offering 3,923 flats

Five BTO projects launched, offering 3,923 flats

By Qiuyi Tan | Posted: 11 January 2012 1044 hrs

SINGAPORE: The Housing and Development Board (HDB) launched five Build-To-Order (BTO) projects on Wednesday.

The BTO launch, the first this year, offers 3,923 new flats in Choa Chu Kang, Punggol, Sengkang and Tampines.

And a further 4,110 new flats will be offered for sale in the next BTO launch in March, in Bedok, Bukit Batok, Bukit Panjang, Bukit Timah, Clementi, Geylang and Toa Payoh.

In total, HDB plans to offer 25,000 BTO units for the entire year.

HDB says at least 95 per cent of the flat supply (excluding Studio Apartments) will be set aside for first-timer households. Eligible first-timer households can also enjoy various housing grants to help them own a new BTO flat.

The projects launched on Wednesday are Fernvale Lea in Sengkang, Sunshine Gardens in Choa Chu Kang, Tampines Alcoves and Tampines GreenTerrace in Tampines, and Waterway Sunbeam in Punggol.

The selling prices for units at Fernvale Lea range from S$83,000 for a 2-room unit to S$283,000 for a 5-room unit.

For Sunshine Gardens, the price range is from S$77,000 for Studio Apartments to S$295,000 for a 5-room unit.

For units at Tampines Alcoves and Tampines GreenTerrace, the price range is from S$86,000 for Studio Apartments to S$292,000 for a 4-room unit.

And at Waterway Sunbeam, the price range is from S$152,000 for a 3-room unit to S$340,000 for a 5-room unit.

All these prices exclude grants.

Analysts expect strong demand for the Tampines projects, but the other projects are not likely to see 100 per cent take-up rate.

Mr Lim Yong Hock, senior vice president at PropNex Realty, said: “We can see the take-up rate has moderated over the last one year, from subscription of more than five times. Now, we have moderated down to one-over times.

“I believe today’s launch will probably see further moderation of the take-up rates. But of course, in a good location, the take-up rate will still be very strong, like Tampines (Alcoves). It’s a hot location and it’s also near a future MRT station, Tampines West.”

Mr Lim said applicants are being more selective as more BTO projects, some of them in mature estates, are in the pipeline.

He added: “Of course, everybody hopes to apply for a good location. So some of them may even wait for the March launch before they even put in their applications.”

The vast majority of new flats are reserved for first-time applicants, and only five per cent go to second-timers.

If take-up rates continue to moderate, analysts expect the government to start allocating more flats for second-timers as early as the first half of the year.

Minister for National Development Khaw Boon Wan had said in his blog last year that second-timers can expect more BTO flats to be reserved for them, starting 2012.

More information is available on HDB InfoWEB.

- CNA/fa/ck

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Strong response for EC at Choa Chu Kang »« Two freehold residential sites up for grabs