Downsizing, refinancing and loan deferments help households in need
FOR seven years, receptionist L. Boey, 63, had been struggling to make the monthly $1,450 loan repayment to the Housing Board (HDB) for her four-room Choa Chu Kang flat.
Earlier this year, she had a lifeline thrown to her. The HDB found her a studio apartment in Bishan which was big enough for her and her 90-year-old mother, and affordable enough for her to buy using her Central Provident Fund (CPF) savings. She sold her flat in May this year, cleared her debt and moved in.
Financially relieved flat buyers like her have helped to halve the number of those with loan arrears (owing three months' instalments or more) from the peak of 55,700 cases in December 2003.
'I guess I didn't have a choice, but I also felt I was getting old and didn't need such a big apartment,' said Miss Boey.
She was among 2,000 home owners whom HDB helped to 'right-size' their flats between August 2008 and June this year, as a long-term solution to their debt problems.
Another measure the HDB instituted to help households falling behind on payment: allowing them to take an extra loan from the HDB to help them downgrade, even though they had already enjoyed two concessionary loans.
Between January 2008 and June this year, the HDB approved about 2,700 such loans.
These measures, along with others introduced in recent years, and the recovering economy have cut down the number of households who are in hock over HDB loan payments.
There are now about 26,000 HDB households who owe the HDB payments, making up 6.6 per cent of 393,000 accounts with an HDB loan as at June this year. This is down from 33,670 cases forming 7.9 per cent in September 2008.
The HDB team which helped to tackle HDB arrears cases will receive an award for its efforts at the Ministry of National Development's National Day Observance Ceremony on Friday.
An HDB spokesman told The Straits Times it has helped close to 20,000 cases since January 2008.
Short-term measures include reducing loan payments for up to six months, deferring loan instalments for up to six months, and instalment plans to clear arrears.
If the home owner still has difficulty paying the instalments, long-term solutions, such as flat downsizing, would be suggested.
In Miss Boey's case, she had sold off her first Choa Chu Kang flat for a profit and bought another four-room Choa Chu Kang flat for $335,000 on the open market in 1996.
She had a job then as a purchaser, and was granted an HDB loan of $224,000 at a concessionary rate. But in 2003, she lost her job. The money from her earlier sale was also depleted. Even after she found another job in 2008, and rented out a room, she was unable to make the payments.
Her HDB counsellor, who had been working on her case since 2006, suggested that she sell her flat and downgrade. In May this year, she sold her flat for $310,000 and bought the Bishan studio apartment for $83,000 using her CPF savings.
Miss Boey is all praise for the HDB and her MP Zaqy Mohamad. 'If the HDB didn't help me, I guess I would still have to sell my flat, but I may not have been able to find another place within my budget.'
The HDB spokesman said compulsory acquisitions are 'very rare' - slightly more than 1,480 since January 2008 - and usually happen only after a household does not take proactive steps to pay up.
Some households, the HDB said, would include working family members as joint owners to help pay for the flat, or try to enhance household income by sub-letting a room.
Mr Dennis Ng, founder of mortgage consultancy web portal housingloansg.com, said loan repayment problems arise when people do not budget for crises.
Some people, he said, use up to 50 per cent of their monthly income to service their housing loan, when the maximum should be 35 per cent.
'If you use half your income to pay for your house, you might be in trouble in bad times, when you face job loss or a pay cut...people must budget first if they don't want problems paying in the future,' he said.
Source: Straits Times, 4 Aug 2010
Showing posts with label HDB. Show all posts
Showing posts with label HDB. Show all posts
Wednesday, August 4, 2010
Saturday, July 31, 2010
Three more HUDC estates to be privatised
THREE HUDC estates comprising 797 flats in Hougang and Potong Pasir have been given the green light to privatise.
Two of the estates are in Hougang North - blocks 344 to 350 in Hougang Avenue 7 and blocks 713 to 720 in Hougang Avenue 2. The other covers blocks 110 to 112 in Potong Pasir Avenue 1.
The homes are all in opposition wards represented either by Hougang MP Low Thia Khiang of the Workers' Party or Potong Pasir MP Chiam See Tong of the Singapore People's Party.
Privatisation means HUDC residents become owners of their units as well as the common property, and so have better control over the running of their estate. They will also no longer be subject to HDB's housing policies such as having to seek approval to sublet their flats.
This is the seventh batch of HUDC estate privatisations and will allow home owners to enjoy price gains, experts say.
PropNex chief executive Mohamed Ismail said prices of homes in the HUDC estates might go up an estimated 20 per cent once the privatisation process is complete.
'Residents will have control of their estate and can improve facilities such as introducing a security system... There's also an enhanced lifestyle and image,' he said.
The Ministry of National Development (MND) said the estates were selected as residents had registered an interest in going private.
The privatisation costs that lessees might incur - there are legal and survey fees, for example - will be capped at $30,000 per flat for three years from Aug 2. The Government will absorb the difference if costs exceed the cap. But residents must acquire 75 per cent support for privatisation within this three-year period.
After that, privatisation costs will be adjusted to account for the prevailing redevelopment potential of the land.
The three estates can now form committees of resident representatives to garner support for the privatisation and liaise with involved parties such as the HDB.
Once the 75 per cent support is obtained, residents can lodge a Strata Titles Application with the Registry of Titles so they can get subsidiary strata certificates of title for their flats.
The process of legal transfer of title from HDB to the flat owners will take about 21/2 years, the MND said. Once the conversion to strata titles has been done, residents will have to form a management council to run and maintain the estate.
A Potong Pasir resident, who did not want to be named, said he was glad his estate was finally chosen for the conversion. 'I've been living here for about 25 years... We see others getting privatised and we ask ourselves when it'll be our turn. At last we've got that chance.'
HUDC flats were built in the 1970s and 1980s as an option for middle-income families, but were phased out in 1987 as demand declined. Privatisation began in 1995 in response to the rising aspirations of Singaporeans to own private housing.
All but the Braddell View HUDC estate have been privatised or identified for privatisation. The MND said as that estate was developed in two phases, the issue of lease harmonisation has to be resolved before the estate can be privatised.
Source: Straits Times, 31 Jul 2010
Two of the estates are in Hougang North - blocks 344 to 350 in Hougang Avenue 7 and blocks 713 to 720 in Hougang Avenue 2. The other covers blocks 110 to 112 in Potong Pasir Avenue 1.
The homes are all in opposition wards represented either by Hougang MP Low Thia Khiang of the Workers' Party or Potong Pasir MP Chiam See Tong of the Singapore People's Party.
Privatisation means HUDC residents become owners of their units as well as the common property, and so have better control over the running of their estate. They will also no longer be subject to HDB's housing policies such as having to seek approval to sublet their flats.
This is the seventh batch of HUDC estate privatisations and will allow home owners to enjoy price gains, experts say.
PropNex chief executive Mohamed Ismail said prices of homes in the HUDC estates might go up an estimated 20 per cent once the privatisation process is complete.
'Residents will have control of their estate and can improve facilities such as introducing a security system... There's also an enhanced lifestyle and image,' he said.
The Ministry of National Development (MND) said the estates were selected as residents had registered an interest in going private.
The privatisation costs that lessees might incur - there are legal and survey fees, for example - will be capped at $30,000 per flat for three years from Aug 2. The Government will absorb the difference if costs exceed the cap. But residents must acquire 75 per cent support for privatisation within this three-year period.
After that, privatisation costs will be adjusted to account for the prevailing redevelopment potential of the land.
The three estates can now form committees of resident representatives to garner support for the privatisation and liaise with involved parties such as the HDB.
Once the 75 per cent support is obtained, residents can lodge a Strata Titles Application with the Registry of Titles so they can get subsidiary strata certificates of title for their flats.
The process of legal transfer of title from HDB to the flat owners will take about 21/2 years, the MND said. Once the conversion to strata titles has been done, residents will have to form a management council to run and maintain the estate.
A Potong Pasir resident, who did not want to be named, said he was glad his estate was finally chosen for the conversion. 'I've been living here for about 25 years... We see others getting privatised and we ask ourselves when it'll be our turn. At last we've got that chance.'
HUDC flats were built in the 1970s and 1980s as an option for middle-income families, but were phased out in 1987 as demand declined. Privatisation began in 1995 in response to the rising aspirations of Singaporeans to own private housing.
All but the Braddell View HUDC estate have been privatised or identified for privatisation. The MND said as that estate was developed in two phases, the issue of lease harmonisation has to be resolved before the estate can be privatised.
Source: Straits Times, 31 Jul 2010
More HDB carparks on the way
Plans to add more than 5,000 parking spaces to ease residents' woes
MORE than 5,000 new parking spaces, costing $66 million, will be added in public housing estates in the next three years by the Housing Board (HDB).
The announcement was made yesterday by the HDB, following queries from The Straits Times.
The HDB estimates that about 10 per cent of its carparks do not have enough spaces for residents nearby.
What's causing the carpark crunch?
The HDB cited the increase in car ownership, including households with more than one car, in recent years as the chief reason.
Members of Parliament (MPs) whom The Straits Times spoke to also attributed it to the rising number of HDB households owning more than one car.
According to HDB figures, the number of such households has surged from 22,700 in 2006 to 36,370 now - a jump of 60 per cent.
HDB households owning more than one car make up about 12 per cent of the pool of car-owning households, up from 9 per cent in 2006.
MPs and residents have been complaining about the tight squeeze in HDB carparks for more than a year, as the car population has surged faster than the supply of parking spaces.
There are currently 1,810 HDB carparks, with a total of 551,430 parking spaces.
Mr Yeo Guat Kwang, MP for Aljunied GRC, noted wryly: 'Last year was the economic downturn, but the car population grew instead.'
The increase is in tandem with a rise in the overall car population in Singapore.
According to Land Transport Authority (LTA) figures for June, there are now 577,163 cars on the roads, about 100,000 more than in 2006.
This figure does not include rental cars, taxis and goods vehicles.
The HDB said the extra parking spaces will be created by increasing the capacity of existing carparks as well as by building new multi-storey carparks to replace existing surface ones.
The MP for Paya Lebar ward in Aljunied GRC, Madam Cynthia Phua, said: 'It's a relief that HDB is looking into this matter. But HDB needs to look at the long term as 5,000 new lots may be taken up very quickly.'
The new multi-storey carparks being built must be structures that can have even more storeys added in future, she said.
Madam Phua has on average 20 to 30 people a month complaining to her about the lack of parking spaces.
Over in Hougang Avenue 4, MP Mr Yeo plans to have 80 spaces added to an existing carpark. Parking spaces are hard to come by there because the carpark is near a busy neighbourhood centre.
Tampines resident Murugian Vadiveloo, 61, is looking forward to the new parking spaces. The HDB is building a multi-storey carpark one block away from his home in Block 939. The carpark will have space for 260 vehicles.
The Singapore Airlines cabin crew operations supervisor now spends half an hour circling around the carpark in his
area before finding a parking space if he returns home after 9pm.
Often, he has to park at another carpark 300m away.
Mr Vadiveloo, who has been living in Tampines for 25 years, said: 'The shortage worsened in the past year. Many people were parking illegally along the road.'
Mr Chew Kay Ping, who lives in Hougang Avenue 1, is cheered by the news too as he now has to while away time at a coffee shop - with his car parked illegally along the road - as he waits for an empty parking space.
Said the 58-year-old part-time contractor: 'I really look forward to HDB's addition of new lots. Then I don't have to waste so much time any more - and risk getting traffic summons.'
Source: Straits Times, 31 Jul 2010
MORE than 5,000 new parking spaces, costing $66 million, will be added in public housing estates in the next three years by the Housing Board (HDB).
The announcement was made yesterday by the HDB, following queries from The Straits Times.
The HDB estimates that about 10 per cent of its carparks do not have enough spaces for residents nearby.
What's causing the carpark crunch?
The HDB cited the increase in car ownership, including households with more than one car, in recent years as the chief reason.
Members of Parliament (MPs) whom The Straits Times spoke to also attributed it to the rising number of HDB households owning more than one car.
According to HDB figures, the number of such households has surged from 22,700 in 2006 to 36,370 now - a jump of 60 per cent.
HDB households owning more than one car make up about 12 per cent of the pool of car-owning households, up from 9 per cent in 2006.
MPs and residents have been complaining about the tight squeeze in HDB carparks for more than a year, as the car population has surged faster than the supply of parking spaces.
There are currently 1,810 HDB carparks, with a total of 551,430 parking spaces.
Mr Yeo Guat Kwang, MP for Aljunied GRC, noted wryly: 'Last year was the economic downturn, but the car population grew instead.'
The increase is in tandem with a rise in the overall car population in Singapore.
According to Land Transport Authority (LTA) figures for June, there are now 577,163 cars on the roads, about 100,000 more than in 2006.
This figure does not include rental cars, taxis and goods vehicles.
The HDB said the extra parking spaces will be created by increasing the capacity of existing carparks as well as by building new multi-storey carparks to replace existing surface ones.
The MP for Paya Lebar ward in Aljunied GRC, Madam Cynthia Phua, said: 'It's a relief that HDB is looking into this matter. But HDB needs to look at the long term as 5,000 new lots may be taken up very quickly.'
The new multi-storey carparks being built must be structures that can have even more storeys added in future, she said.
Madam Phua has on average 20 to 30 people a month complaining to her about the lack of parking spaces.
Over in Hougang Avenue 4, MP Mr Yeo plans to have 80 spaces added to an existing carpark. Parking spaces are hard to come by there because the carpark is near a busy neighbourhood centre.
Tampines resident Murugian Vadiveloo, 61, is looking forward to the new parking spaces. The HDB is building a multi-storey carpark one block away from his home in Block 939. The carpark will have space for 260 vehicles.
The Singapore Airlines cabin crew operations supervisor now spends half an hour circling around the carpark in his
area before finding a parking space if he returns home after 9pm.
Often, he has to park at another carpark 300m away.
Mr Vadiveloo, who has been living in Tampines for 25 years, said: 'The shortage worsened in the past year. Many people were parking illegally along the road.'
Mr Chew Kay Ping, who lives in Hougang Avenue 1, is cheered by the news too as he now has to while away time at a coffee shop - with his car parked illegally along the road - as he waits for an empty parking space.
Said the 58-year-old part-time contractor: 'I really look forward to HDB's addition of new lots. Then I don't have to waste so much time any more - and risk getting traffic summons.'
Source: Straits Times, 31 Jul 2010
Friday, July 30, 2010
HDB offers 1,016 flats in 2 BTO projects
This year's launches now top offers for whole of last year
THE Housing & Development Board (HDB) is launching two new Build-To-Order (BTO) projects with 1,016 units at Bukit Panjang and Jurong West.
This brings the number of new flats it has introduced under the scheme so far this year to 9,844 - exceeding the 9,000 for the whole of last year.
Senja Gateway, located at the junction of Kranji Expressway and Woodlands Road, will have 741 standard flats. They consist of 254 studio apartments, 313 four-roomers and 174 five-roomers.
The site is near the LRT station at Ten Mile Junction, and is surrounded by schools such as Pioneer Junior College.
A five-room flat at the estate will go for $308,000 to $398,000. According to HDB, comparable resale flats in the area cost $378,000 to $450,800.
The second project, Corporation Tiara, is at the junction of Corporation Road and Yung Kuang Road. Up for sale are 275 premium flats, comprising 171 four-roomers and 104 five-roomers.
The project will include another 190 studio apartments but HDB will put these up for sale later.
Corporation Tiara is some distance from the Lakeside and Boon Lay MRT stations. But it is near green lungs - Chinese Garden and Japanese Garden.
A five-room flat at the estate will cost $304,000 to $389,000. Prices of comparable resale flats in the vicinity range from $384,000 to $420,000.
HDB has ramped up the supply of new flats this year as prices of resale flats continue to climb - they rose 4.1 per cent in Q2 from Q1. Buyers also had to pay larger cash premiums.
The agency will be rolling out another 1,400 new flats in Yishun next month, and it plans to offer up to 16,000 BTO flats for the whole year.
HDB pointed out that the annual take-up of HDB flats ranged from 7,000 to 16,100 in the last 10 years. 'There were balance flats almost every year,' it added.
Source: Business Times, 30 Jul 2010
THE Housing & Development Board (HDB) is launching two new Build-To-Order (BTO) projects with 1,016 units at Bukit Panjang and Jurong West.
This brings the number of new flats it has introduced under the scheme so far this year to 9,844 - exceeding the 9,000 for the whole of last year.
Senja Gateway, located at the junction of Kranji Expressway and Woodlands Road, will have 741 standard flats. They consist of 254 studio apartments, 313 four-roomers and 174 five-roomers.
The site is near the LRT station at Ten Mile Junction, and is surrounded by schools such as Pioneer Junior College.
A five-room flat at the estate will go for $308,000 to $398,000. According to HDB, comparable resale flats in the area cost $378,000 to $450,800.
The second project, Corporation Tiara, is at the junction of Corporation Road and Yung Kuang Road. Up for sale are 275 premium flats, comprising 171 four-roomers and 104 five-roomers.
The project will include another 190 studio apartments but HDB will put these up for sale later.
Corporation Tiara is some distance from the Lakeside and Boon Lay MRT stations. But it is near green lungs - Chinese Garden and Japanese Garden.
A five-room flat at the estate will cost $304,000 to $389,000. Prices of comparable resale flats in the vicinity range from $384,000 to $420,000.
HDB has ramped up the supply of new flats this year as prices of resale flats continue to climb - they rose 4.1 per cent in Q2 from Q1. Buyers also had to pay larger cash premiums.
The agency will be rolling out another 1,400 new flats in Yishun next month, and it plans to offer up to 16,000 BTO flats for the whole year.
HDB pointed out that the annual take-up of HDB flats ranged from 7,000 to 16,100 in the last 10 years. 'There were balance flats almost every year,' it added.
Source: Business Times, 30 Jul 2010
1,016 new flats on offer in Bukit Panjang, Jurong West
TWO build-to-order (BTO) Housing Board (HDB) projects that will add 1,016 new flats to the market were launched yesterday. The launch means 9,844 flats have been released in seven months, exceeding the 9,000 units offered for the whole of last year.
The projects are Senja Gateway in Bukit Panjang and Corporation Tiara in Jurong West.
Senja Gateway at the junction of Kranji Expressway and Woodlands Road will have 741 standard flats, comprising 254 studios, 313 four-room flats and 174 five-roomers.
Studios of 35 sq m to 45 sq m will cost $67,000 to $95,000, four-room flats of 90 sq m will be from $242,000 to $306,000 while five-roomers of 110 sq m will go from $308,000 to $398,000.
Corporation Tiara in Jurong West, at the junction of Corporation Road and Yung Kuang Road, will have 275 premium flats, comprising 171 four-roomers and 104 five-roomers.
Four-roomers of between 90 sq m and 93 sq m will cost between $242,000 and $325,000 while five-room flats of 110 sq m to 113 sq m will cost between $304,000 and $389,000.
Under the BTO scheme, flats are built only when a certain level of demand for the project is met.
PropNex chief executive Mohamed Ismail expects this launch to be more than three times oversubscribed as demand is still strong due to the high cash-over-valuations (COV) asked for in the HDB resale market.
He added that the pattern of demand from past BTO launches showed that four- and five-room flats were often the most popular.
'I think demand will be sustained throughout this year and we might even see a record number of BTO flats being launched,' he said.
The HDB said that if demand from first-time buyers is sustained, it is prepared to offer up to 16,000 BTO flats this year. This is a significant supply as the total annual take-up of HDB flats in the last 10 years ranged from 7,000 in 2006 to 16,100 in 2000, with flats left unsold almost every year, the board said.
Buyers can expect about 1,400 flats to be launched in Yishun next month while upcoming projects include areas like Woodlands, Punggol and Sengkang.
The BTO stock will also be supplemented by an upcoming supply of 4,700 units under the design, build and sell scheme (DBSS) and executive condominium scheme such as a site launched for tender in Tampines Avenue 5 last month.
The HDB said it is prepared to launch more DBSS sites if demand keeps up.
Applications for the BTO flats launched yesterday can be made online at www.hdb.gov.sg until Aug 11.
Source: Straits Times, 30 Jul 2010
The projects are Senja Gateway in Bukit Panjang and Corporation Tiara in Jurong West.
Senja Gateway at the junction of Kranji Expressway and Woodlands Road will have 741 standard flats, comprising 254 studios, 313 four-room flats and 174 five-roomers.
Studios of 35 sq m to 45 sq m will cost $67,000 to $95,000, four-room flats of 90 sq m will be from $242,000 to $306,000 while five-roomers of 110 sq m will go from $308,000 to $398,000.
Corporation Tiara in Jurong West, at the junction of Corporation Road and Yung Kuang Road, will have 275 premium flats, comprising 171 four-roomers and 104 five-roomers.
Four-roomers of between 90 sq m and 93 sq m will cost between $242,000 and $325,000 while five-room flats of 110 sq m to 113 sq m will cost between $304,000 and $389,000.
Under the BTO scheme, flats are built only when a certain level of demand for the project is met.
PropNex chief executive Mohamed Ismail expects this launch to be more than three times oversubscribed as demand is still strong due to the high cash-over-valuations (COV) asked for in the HDB resale market.
He added that the pattern of demand from past BTO launches showed that four- and five-room flats were often the most popular.
'I think demand will be sustained throughout this year and we might even see a record number of BTO flats being launched,' he said.
The HDB said that if demand from first-time buyers is sustained, it is prepared to offer up to 16,000 BTO flats this year. This is a significant supply as the total annual take-up of HDB flats in the last 10 years ranged from 7,000 in 2006 to 16,100 in 2000, with flats left unsold almost every year, the board said.
Buyers can expect about 1,400 flats to be launched in Yishun next month while upcoming projects include areas like Woodlands, Punggol and Sengkang.
The BTO stock will also be supplemented by an upcoming supply of 4,700 units under the design, build and sell scheme (DBSS) and executive condominium scheme such as a site launched for tender in Tampines Avenue 5 last month.
The HDB said it is prepared to launch more DBSS sites if demand keeps up.
Applications for the BTO flats launched yesterday can be made online at www.hdb.gov.sg until Aug 11.
Source: Straits Times, 30 Jul 2010
Thursday, July 29, 2010
Why flats were taken back
IN AN unprecedented crackdown on illegal subletting, the Housing Board (HDB) has taken action against four flat owners and compulsorily acquired their flats.
These owners did not live in the flats they purchased and sublet their homes without meeting the minimum period of occupation - five years for subsidised flats and three years for non-subsidised flats - or obtaining the HDB's approval.
Locked out, then found out
The owner sought the HDB's help in getting into his flat after he was locked out of it.
That was when he was found out. He had allowed his three-room flat in the western part of Singapore to be used as collateral for a loan. His moneylender had sublet the flat as repayment.
After he got back into his flat, the HDB reminded him repeatedly that he had to resume occupation of it and evict the tenants.
But he did neither, even after he was given a grace period.
The HDB thus took over the flat.
Let out too soon
She let out her flat without the HDB's approval only a year after she had bought the property. The HDB requires home owners to live in their flats for a minimum period before they can let them out.
Though she did as told by the HDB and evicted her tenants, she failed to move back in, and left the flat empty.
The HDB then took over the flat.
Didn't live in matrimonial home
She bought the flat with her former husband, a foreigner, while they were married.
But she never moved in. Instead, she lived abroad and sublet the flat without meeting the minimum occupation period or getting approval from the HDB.
When their marriage broke down, her ex-husband wrote to the HDB to say that the flat was never intended as their matrimonial home and he had, in fact, never even seen it.
Even after she returned to Singapore, she chose to live with her family and not in her own property.
The HDB proceeded to acquire the flat.
Sublet to religious group
The flat owner lived in another home with her family while she sublet her unit to a religious group.
The flat was compulsorily acquired on the grounds that it was let out without the HDB's approval and that the owner did not resume occupation.
Source: Straits Times, 29 Jul 2010
These owners did not live in the flats they purchased and sublet their homes without meeting the minimum period of occupation - five years for subsidised flats and three years for non-subsidised flats - or obtaining the HDB's approval.
Locked out, then found out
The owner sought the HDB's help in getting into his flat after he was locked out of it.
That was when he was found out. He had allowed his three-room flat in the western part of Singapore to be used as collateral for a loan. His moneylender had sublet the flat as repayment.
After he got back into his flat, the HDB reminded him repeatedly that he had to resume occupation of it and evict the tenants.
But he did neither, even after he was given a grace period.
The HDB thus took over the flat.
Let out too soon
She let out her flat without the HDB's approval only a year after she had bought the property. The HDB requires home owners to live in their flats for a minimum period before they can let them out.
Though she did as told by the HDB and evicted her tenants, she failed to move back in, and left the flat empty.
The HDB then took over the flat.
Didn't live in matrimonial home
She bought the flat with her former husband, a foreigner, while they were married.
But she never moved in. Instead, she lived abroad and sublet the flat without meeting the minimum occupation period or getting approval from the HDB.
When their marriage broke down, her ex-husband wrote to the HDB to say that the flat was never intended as their matrimonial home and he had, in fact, never even seen it.
Even after she returned to Singapore, she chose to live with her family and not in her own property.
The HDB proceeded to acquire the flat.
Sublet to religious group
The flat owner lived in another home with her family while she sublet her unit to a religious group.
The flat was compulsorily acquired on the grounds that it was let out without the HDB's approval and that the owner did not resume occupation.
Source: Straits Times, 29 Jul 2010
HDB seizes flats of four home owners
Six other flat owners fined, in clampdown on illegal subletting
FOUR Housing Board home owners lost their flats in the first five months of this year, after the HDB launched an unprecedented crackdown on those who let out their flats illegally.
Six others have been fined amounts that ranged from $4,200 to $14,400.
Making good its earlier pledge to clamp down on illegal subletting, HDB inspectors checked 2,600 homes from January to May, four times more than in the preceding five months last year.
Some 2,300 flat owners are in the clear, but of the 300 still being investigated, 59 cases have been classified as suspicious.
The crackdown comes after measures announced in March to ensure that heavily subsidised HDB flats are used as homes, and not as money-making tools.
For example, the minimum occupation period for resale flat buyers before they can sell the flat was lengthened to three years, up from as short as one year, to cool speculative demand for HDB flats.
The Government had said that illegal subletting was not rampant, but it also gave the assurance that it would step up enforcement against owners who flouted the rules to milk rental income.
The HDB confirmed that this is the biggest number of flats checked and compulsorily acquired over a five-month time frame.
In the preceding two years, the HDB repossessed four flats out of 56 illegal subletting cases. The other 52 were fined amounts ranging from $1,000 to $21,000.
'HDB flats are primarily meant for owner occupation. Subletting of HDB flats without HDB's approval is an infringement of the lease conditions,' its spokesman said yesterday.
As of the end of last month, 30,500 HDB flat owners, or 3.6 per cent, out of a total of 841,000 flat owners have obtained approval to sublet their flats.
In the latest blitz, the spokesman said that in all 10 cases, the flat owners were not living in their homes and had sublet the whole flat without HDB approval.
She said a fine would generally be imposed on first-time offenders, unless their actions were particularly blatant, such as repeatedly ignoring HDB reminders to evict tenants.
Then, under the HDB Act, it would resort to compulsory acquisition, returning the owner only the value at which he had bought the flat.
A penalty would also be deducted from that amount.
The HDB cited one case in which a woman bought a flat with her then-husband but stayed overseas all the while.
When the marriage broke up, the ex-husband confirmed that they had no intention of living in the flat, which had been sublet before the expiry of the minimum occupation period.
One owner even allowed his moneylender to let out his flat to collect rent that constituted his debt repayment.
The HDB also found cases where flat owners skirted subletting rules by locking up one room and renting out the rest of the flat.
The rules mandate that owners can sublet their whole flats only after they fulfil the minimum occupation periods of five years for subsidised flats and three years for non-subsidised flats.
Approval must be obtained from the HDB, with caps on the number of sub-tenants allowed, based on flat size.
Former chairman of the Government Parliamentary Committee for National Development Charles Chong said the crackdown will 'send out a very strong message that the flats are not for people to make money, but for accommodation'.
There had been public concern that illegal subletting was indirectly linked to rising resale prices.
However, property analysts interviewed said that stricter enforcement is unlikely to have a significant impact on the market.
Said group managing director Danny Yeo of Knight Frank real estate consultancy: 'There are many illegal subletters, but compared to the total number of flats available, the numbers are small.'
Mr Gerard Thomas, marketing director of SHL Realty, said: 'There are also external factors to consider, for example, what the economy is like, whether there are any disasters.'
Mr Thomas added that the stricter enforcement would reduce the incentive for people to sublet illegally because the 'price is too high to pay'.
About three in every 10 cases in the crackdown came from public tip-offs.
While flat owners who rent out rooms do not need HDB approval, they must register the subletting details within a week, on pain of a fine of up to $3,000.
This move helps track tenants who use the flat addresses to borrow from loan sharks.
A six-month grace period for those who had sublet their flats before the start of February expires at the end of this month.
Those who want to report on illegal subletting can call the HDB on 1800-555-6370.
Source: Straits Times, 29 Jul 2010
FOUR Housing Board home owners lost their flats in the first five months of this year, after the HDB launched an unprecedented crackdown on those who let out their flats illegally.
Six others have been fined amounts that ranged from $4,200 to $14,400.
Making good its earlier pledge to clamp down on illegal subletting, HDB inspectors checked 2,600 homes from January to May, four times more than in the preceding five months last year.
Some 2,300 flat owners are in the clear, but of the 300 still being investigated, 59 cases have been classified as suspicious.
The crackdown comes after measures announced in March to ensure that heavily subsidised HDB flats are used as homes, and not as money-making tools.
For example, the minimum occupation period for resale flat buyers before they can sell the flat was lengthened to three years, up from as short as one year, to cool speculative demand for HDB flats.
The Government had said that illegal subletting was not rampant, but it also gave the assurance that it would step up enforcement against owners who flouted the rules to milk rental income.
The HDB confirmed that this is the biggest number of flats checked and compulsorily acquired over a five-month time frame.
In the preceding two years, the HDB repossessed four flats out of 56 illegal subletting cases. The other 52 were fined amounts ranging from $1,000 to $21,000.
'HDB flats are primarily meant for owner occupation. Subletting of HDB flats without HDB's approval is an infringement of the lease conditions,' its spokesman said yesterday.
As of the end of last month, 30,500 HDB flat owners, or 3.6 per cent, out of a total of 841,000 flat owners have obtained approval to sublet their flats.
In the latest blitz, the spokesman said that in all 10 cases, the flat owners were not living in their homes and had sublet the whole flat without HDB approval.
She said a fine would generally be imposed on first-time offenders, unless their actions were particularly blatant, such as repeatedly ignoring HDB reminders to evict tenants.
Then, under the HDB Act, it would resort to compulsory acquisition, returning the owner only the value at which he had bought the flat.
A penalty would also be deducted from that amount.
The HDB cited one case in which a woman bought a flat with her then-husband but stayed overseas all the while.
When the marriage broke up, the ex-husband confirmed that they had no intention of living in the flat, which had been sublet before the expiry of the minimum occupation period.
One owner even allowed his moneylender to let out his flat to collect rent that constituted his debt repayment.
The HDB also found cases where flat owners skirted subletting rules by locking up one room and renting out the rest of the flat.
The rules mandate that owners can sublet their whole flats only after they fulfil the minimum occupation periods of five years for subsidised flats and three years for non-subsidised flats.
Approval must be obtained from the HDB, with caps on the number of sub-tenants allowed, based on flat size.
Former chairman of the Government Parliamentary Committee for National Development Charles Chong said the crackdown will 'send out a very strong message that the flats are not for people to make money, but for accommodation'.
There had been public concern that illegal subletting was indirectly linked to rising resale prices.
However, property analysts interviewed said that stricter enforcement is unlikely to have a significant impact on the market.
Said group managing director Danny Yeo of Knight Frank real estate consultancy: 'There are many illegal subletters, but compared to the total number of flats available, the numbers are small.'
Mr Gerard Thomas, marketing director of SHL Realty, said: 'There are also external factors to consider, for example, what the economy is like, whether there are any disasters.'
Mr Thomas added that the stricter enforcement would reduce the incentive for people to sublet illegally because the 'price is too high to pay'.
About three in every 10 cases in the crackdown came from public tip-offs.
While flat owners who rent out rooms do not need HDB approval, they must register the subletting details within a week, on pain of a fine of up to $3,000.
This move helps track tenants who use the flat addresses to borrow from loan sharks.
A six-month grace period for those who had sublet their flats before the start of February expires at the end of this month.
Those who want to report on illegal subletting can call the HDB on 1800-555-6370.
Source: Straits Times, 29 Jul 2010
HDB steps up checks on unauthorised sub-letting
THE Housing and Development Board has cracked down on unauthorised sub-letting. Almost four times as many checks were carried out in the first five months of this year - 2,600, versus 690 between August and December 2009.
About 70 per cent of the 2,600 checks were routine inspections. The others were carried out after public feedback.
HDB said it has taken compulsory acquisition action against four flat owners this year and fined six others for unauthorised sub-letting.
Those whose flats were repossessed were not staying in them and had sub-let without HDB approval.
Owners are allowed to sub-let whole flats only after occupying them for at least five years if they are subsidised flats, or three years if they are non-subsidised.
Owners must also obtain written approval from HDB before sub-letting an entire flat. Different flat types have different limits on the number of sub-tenants allowed. One and two-room flats are allowed four sub-tenants, three-rooms are allowed six and larger flats are allowed up to nine sub-tenants.
Approval is not required for sub-letting of rooms, but flat owners must let HDB know within seven days of doing so.
Source: Business Times, 29 Jul 2010
About 70 per cent of the 2,600 checks were routine inspections. The others were carried out after public feedback.
HDB said it has taken compulsory acquisition action against four flat owners this year and fined six others for unauthorised sub-letting.
Those whose flats were repossessed were not staying in them and had sub-let without HDB approval.
Owners are allowed to sub-let whole flats only after occupying them for at least five years if they are subsidised flats, or three years if they are non-subsidised.
Owners must also obtain written approval from HDB before sub-letting an entire flat. Different flat types have different limits on the number of sub-tenants allowed. One and two-room flats are allowed four sub-tenants, three-rooms are allowed six and larger flats are allowed up to nine sub-tenants.
Approval is not required for sub-letting of rooms, but flat owners must let HDB know within seven days of doing so.
Source: Business Times, 29 Jul 2010
NUS estimates confirm private home prices tapered off in June
(SINGAPORE) Latest flash estimates from National University of Singapore (NUS) confirm what property industry players have already experienced on the ground - a rapid slowdown in the growth of non-landed private home prices in June compared with May.
NUS's overall price index for non-landed homes for June rose 0.3 per cent month on month, compared with month-on-month gains of 2.4 per cent each for May and April.
It was the same story for the sub-index for the Central region, which covers a basket of properties in districts 1-4 and 9-11. It increased 0.7 per cent month on month in June, slower than gains of 2.1 per cent in May and 3.4 per cent in April.
The sub-index for Non-Central region was unchanged in June from the preceding month, after rises of 2.7 per cent in May and 1.7 per cent in April.
The Singapore Residential Price Index (SRPI), compiled by the NUS Institute of Real Estate Studies, covers only completed properties.
DTZ executive director (consulting) Ong Choon Fah said: 'The latest indices confirm the slowdown in buying momentum felt on the ground in June - because of the school holidays, World Cup and continued uncertainty in the eurozone economies.
'People found no reason to rush and buy a home. Developers have also been holding back launches and the projects they did launch were not priced at the top end of their own target range; so developers have also moderated their own price expectation.'
Since the end of last year, all three NUS indices have appreciated - to the tune of 8.7 per cent for the overall index, 8.2 per cent for Central region and 9.2 per cent for Non-Central region. Based on the latest June flash estimates, NUS's overall SRPI is now 36.3 per cent above the post-financial crisis low in March 2009. Over the same period, the growth for the Central region has been 42.1 per cent and that for the Non-Central region, about 33.3 per cent.
The June flash estimate for Central region is still 3.5 per cent below the pre-crisis high in November 2007. However, for the Non-Central region, the latest index surpassed its respective pre-crisis peak in January 2008 by 11.2 per cent. As a result, the overall SRPI flash estimate for June is 5.7 above its November 2007 high.
Looking ahead, Mrs Ong reckoned the overall and Central region indices are likely to remain flat in July, but the index for the Non-Central region could either be flat or post a marginal increase, supported by high cash-over-valuations in the HDB resale market.
Meanwhile Hong Leong Holdings said yesterday it has sold over 75 per cent of the 468 units available at The Scala, a 99-year condo at Serangoon Avenue 3. The units are sized between 474 and 2,142 sq ft, and sold at an average of $1,150 per square foot. Buyers comprised a good mix of HDB upgraders and investors, with the majority made up of locals.
Source: Business Times, 29 Jul 2010
NUS's overall price index for non-landed homes for June rose 0.3 per cent month on month, compared with month-on-month gains of 2.4 per cent each for May and April.
It was the same story for the sub-index for the Central region, which covers a basket of properties in districts 1-4 and 9-11. It increased 0.7 per cent month on month in June, slower than gains of 2.1 per cent in May and 3.4 per cent in April.
The sub-index for Non-Central region was unchanged in June from the preceding month, after rises of 2.7 per cent in May and 1.7 per cent in April.
The Singapore Residential Price Index (SRPI), compiled by the NUS Institute of Real Estate Studies, covers only completed properties.
DTZ executive director (consulting) Ong Choon Fah said: 'The latest indices confirm the slowdown in buying momentum felt on the ground in June - because of the school holidays, World Cup and continued uncertainty in the eurozone economies.
'People found no reason to rush and buy a home. Developers have also been holding back launches and the projects they did launch were not priced at the top end of their own target range; so developers have also moderated their own price expectation.'
Since the end of last year, all three NUS indices have appreciated - to the tune of 8.7 per cent for the overall index, 8.2 per cent for Central region and 9.2 per cent for Non-Central region. Based on the latest June flash estimates, NUS's overall SRPI is now 36.3 per cent above the post-financial crisis low in March 2009. Over the same period, the growth for the Central region has been 42.1 per cent and that for the Non-Central region, about 33.3 per cent.
The June flash estimate for Central region is still 3.5 per cent below the pre-crisis high in November 2007. However, for the Non-Central region, the latest index surpassed its respective pre-crisis peak in January 2008 by 11.2 per cent. As a result, the overall SRPI flash estimate for June is 5.7 above its November 2007 high.
Looking ahead, Mrs Ong reckoned the overall and Central region indices are likely to remain flat in July, but the index for the Non-Central region could either be flat or post a marginal increase, supported by high cash-over-valuations in the HDB resale market.
Meanwhile Hong Leong Holdings said yesterday it has sold over 75 per cent of the 468 units available at The Scala, a 99-year condo at Serangoon Avenue 3. The units are sized between 474 and 2,142 sq ft, and sold at an average of $1,150 per square foot. Buyers comprised a good mix of HDB upgraders and investors, with the majority made up of locals.
Source: Business Times, 29 Jul 2010
Monday, July 26, 2010
$550 million upgrade for Hougang, Pasir Ris, Tampines
New covered linkways, new windows and grilles in homes possible
SOME 54,000 households in Hougang, Tampines and Pasir Ris can look forward to new amenities in their neighbourhoods with upgrading works now under way.
The improvements could include new covered linkways, car porches and upgrading of children's playgrounds.
Residents may also get upgrades to their flats, such as new waterproofing for their bathroom floors, and new windows and grilles.
No target completion date has been given for the works but the Government has set aside an extra $550 million for the three HDB towns under the Main Upgrading, Interim Upgrading and Lift Upgrading programmes.
As long as the Government had the financial resources, it would continue to rejuvenate housing estates, said Deputy Prime Minister and adviser to Pasir Ris-Punggol GRC grassroots organisation Teo Chee Hean yesterday. He was speaking at the launch of a community roadshow in Tampines Central to cap HDB's 50th anniversary celebrations.
Tampines, Hougang and Pasir Ris are mature towns that were developed in the 1980s and early 1990s. Together with the newer towns of Sengkang and Punggol, they are home to 197,100 flats, about 22 per cent of the total number of HDB homes in Singapore.
Some $540 million has already been spent to improve amenities for more than 67,000 households in the three towns.
Of the extra $550 million, around $263 million will go towards estates in Tampines; $180 million to Hougang and $107 million to Pasir Ris.
Mr Teo, noting how the three housing estates have transformed over the years into modern and bustling towns, said commercial and other social facilities will also be upgraded to keep up with renewed residential areas.
For example, six sites in Tampines and Hougang have benefited from HDB's Revitalisation of Shops Scheme (ROS) to increase the vibrancy and competitiveness of shops in the heartland.
Under the scheme, HDB provides partial funding for shopkeepers to spruce up their shopfronts and carry out promotions to attract more customers. The scheme will be extended to seven more sites in the two estates.
Loyang Point shopping centre in Pasir Ris will also be revamped at the end of the year.
Long-time residents welcomed the improvements to their neighbourhoods and shopping areas.
Mr Lee Kam Mun, who has lived in Tampines Central since 1998, said residents have got a lot out of the upgrading programmes.
Said the 42-year-old terminal manager in the oil and gas industry: 'We have a nicer outlook in the estate. You come back and feel relaxed. There are also more common areas that encourage us to meet and make friends with neighbours.'
Source: Straits Times, 26 Jul 2010
SOME 54,000 households in Hougang, Tampines and Pasir Ris can look forward to new amenities in their neighbourhoods with upgrading works now under way.
The improvements could include new covered linkways, car porches and upgrading of children's playgrounds.
Residents may also get upgrades to their flats, such as new waterproofing for their bathroom floors, and new windows and grilles.
No target completion date has been given for the works but the Government has set aside an extra $550 million for the three HDB towns under the Main Upgrading, Interim Upgrading and Lift Upgrading programmes.
As long as the Government had the financial resources, it would continue to rejuvenate housing estates, said Deputy Prime Minister and adviser to Pasir Ris-Punggol GRC grassroots organisation Teo Chee Hean yesterday. He was speaking at the launch of a community roadshow in Tampines Central to cap HDB's 50th anniversary celebrations.
Tampines, Hougang and Pasir Ris are mature towns that were developed in the 1980s and early 1990s. Together with the newer towns of Sengkang and Punggol, they are home to 197,100 flats, about 22 per cent of the total number of HDB homes in Singapore.
Some $540 million has already been spent to improve amenities for more than 67,000 households in the three towns.
Of the extra $550 million, around $263 million will go towards estates in Tampines; $180 million to Hougang and $107 million to Pasir Ris.
Mr Teo, noting how the three housing estates have transformed over the years into modern and bustling towns, said commercial and other social facilities will also be upgraded to keep up with renewed residential areas.
For example, six sites in Tampines and Hougang have benefited from HDB's Revitalisation of Shops Scheme (ROS) to increase the vibrancy and competitiveness of shops in the heartland.
Under the scheme, HDB provides partial funding for shopkeepers to spruce up their shopfronts and carry out promotions to attract more customers. The scheme will be extended to seven more sites in the two estates.
Loyang Point shopping centre in Pasir Ris will also be revamped at the end of the year.
Long-time residents welcomed the improvements to their neighbourhoods and shopping areas.
Mr Lee Kam Mun, who has lived in Tampines Central since 1998, said residents have got a lot out of the upgrading programmes.
Said the 42-year-old terminal manager in the oil and gas industry: 'We have a nicer outlook in the estate. You come back and feel relaxed. There are also more common areas that encourage us to meet and make friends with neighbours.'
Source: Straits Times, 26 Jul 2010
Welcome to new look Serangoon North Village
MERCHANTS of the former Serangoon North Neighbourhood Centre are giving the thumbs up to their newly upgraded shopfronts and walkways.
The area, known for its many pet shops, has been renamed Serangoon North Village under the Housing Board's Revitalisation of Shops scheme.
At a dinner marking the completion of the two-year $6-million project, Aljunied GRC MP Lim Hwee Hua said it was important to give new life to shops in the area.
'As you have more malls coming up, the shops experience competition. Therefore we want to ensure that they will always remain attractive to residents because they are actually more conveniently located,' said the Minister in the Prime Minister's Office.
Mrs Lim and fellow Aljunied GRC MPs - Foreign Minister George Yeo, Senior Minister of State (Foreign Affairs) Zainul Abidin Rasheed, Madam Cynthia Phua and Mr Yeo Guat Kwang - launched a sign with the area's new name located on top of Block 153 Serangoon North Avenue 1.
The revitalisation scheme upgrades the shopping environment and business operations of shops in town or neighbourhood centres. Works include flattening uneven ground, building walkways and creating spaces for residents to mingle.
The new Central Plaza between Blocks 151 and 152, for instance, has space for carnivals and performances. There is also a 'Pet Walk' promenade for pet shops.
'The grassy ground outside our shops used to be very uneven. It would also get muddy and smelly when it rained,' said Dr Edmond Tan, 51. He runs a veterinary surgery in the area. With the land flattened and walkways built, it has become more accessible to the elderly.
Serangoon North is one of three sites with such upgrading works completed this year. The others are Teck Whye Shopping Centre and Bedok Town Centre.
Dr Tan, who is first vice-president of the Serangoon North Merchants' Association, worked with the HDB and Aljunied Town Council to implement the scheme.
It was not easy carrying out the works, he admitted. The association took six months to persuade the 123 shops in the area to commit to the scheme.
Under the scheme, the HDB and town council foot half the bill, up to $10,000 for items directly benefiting shops such as awnings. Shop owners bear the rest of the cost.
Shop owners and residents also had to put up with the inconvenience of upgrading works.
For Madam Toh Ah Hong, fewer customers came to her incense shop once upgrading started.
'But business is picking up now, especially on weekends. It's cleaner and roomier,' said the 47-year-old.
Mrs Lim said the town council tried to dovetail the project with its regular upgrading works and the Lift Upgrading Programme. This minimised inconvenience for residents and shop owners.
Source: Straits Times, 26 Jul 2010
The area, known for its many pet shops, has been renamed Serangoon North Village under the Housing Board's Revitalisation of Shops scheme.
At a dinner marking the completion of the two-year $6-million project, Aljunied GRC MP Lim Hwee Hua said it was important to give new life to shops in the area.
'As you have more malls coming up, the shops experience competition. Therefore we want to ensure that they will always remain attractive to residents because they are actually more conveniently located,' said the Minister in the Prime Minister's Office.
Mrs Lim and fellow Aljunied GRC MPs - Foreign Minister George Yeo, Senior Minister of State (Foreign Affairs) Zainul Abidin Rasheed, Madam Cynthia Phua and Mr Yeo Guat Kwang - launched a sign with the area's new name located on top of Block 153 Serangoon North Avenue 1.
The revitalisation scheme upgrades the shopping environment and business operations of shops in town or neighbourhood centres. Works include flattening uneven ground, building walkways and creating spaces for residents to mingle.
The new Central Plaza between Blocks 151 and 152, for instance, has space for carnivals and performances. There is also a 'Pet Walk' promenade for pet shops.
'The grassy ground outside our shops used to be very uneven. It would also get muddy and smelly when it rained,' said Dr Edmond Tan, 51. He runs a veterinary surgery in the area. With the land flattened and walkways built, it has become more accessible to the elderly.
Serangoon North is one of three sites with such upgrading works completed this year. The others are Teck Whye Shopping Centre and Bedok Town Centre.
Dr Tan, who is first vice-president of the Serangoon North Merchants' Association, worked with the HDB and Aljunied Town Council to implement the scheme.
It was not easy carrying out the works, he admitted. The association took six months to persuade the 123 shops in the area to commit to the scheme.
Under the scheme, the HDB and town council foot half the bill, up to $10,000 for items directly benefiting shops such as awnings. Shop owners bear the rest of the cost.
Shop owners and residents also had to put up with the inconvenience of upgrading works.
For Madam Toh Ah Hong, fewer customers came to her incense shop once upgrading started.
'But business is picking up now, especially on weekends. It's cleaner and roomier,' said the 47-year-old.
Mrs Lim said the town council tried to dovetail the project with its regular upgrading works and the Lift Upgrading Programme. This minimised inconvenience for residents and shop owners.
Source: Straits Times, 26 Jul 2010
'Imbalance' in HDB resale market: Mah
Record boost to supply should stabilise prices in about a year, he says
PRICES of HDB resale flats are high at present because of an 'imbalance' in supply and demand, which should be redressed by the record number of flats being released by the HDB this year.
The boost to supply should stabilise prices in about a year or so, said National Development Minister Mah Bow Tan yesterday, as he sought to address concerns over the cost of HDB resale flats, which has climbed steadily since 2008.
Speaking on the sidelines of a community event in Tampines, Mr Mah attributed the surge to strong economic growth and demand from first-time buyers, such as newly married couples, and owners looking to upgrade to bigger flats.
'I think at this point in time, there's still an imbalance,' he said. 'I hope that with HDB pushing out a record number of flats this year, this imbalance will be redressed over the medium term. I would expect that in another year or so, we should be able to stabilise everything.'
HDB launched almost 9,000 new build-to-order flats in the first half of the year, and will launch another 7,200 in the second half. The number is about 80 per cent more than for last year.
In addition, there are some 4,700 new flats under the design, build and sell scheme, in which HDB flats are built by private developers, and the executive condo (EC) housing scheme. In the pipeline are four more EC sites in Punggol, Pasir Ris, Bukit Panjang and Tampines, which should yield 1,900 units.
Resale prices for HDB flats rose for the eighth straight quarter between April and last month, surging 4.1 per cent from the previous quarter.
In the first half of this year, 17,598 resale applications were registered with HDB, compared to 16,630 for the same period last year and 14,121 in 2008.
The median cash over valuation (COV) - the cash amount paid upfront by a buyer over a flat's valuation by the HDB - also hit a record $30,000.
Mr Mah acknowledged this was 'equally a concern' as it made resale flats even less affordable, and urged first-time buyers to purchase their new home directly from the HDB instead.
He said: 'If you are a first-timer, then go for the build-to-order (BTO) market, where there is zero COV, where the prices are lower, where the flats are of newer design and so on.'
To newly married couples who say they cannot wait that long for a new flat, Mr Mah said the three-year waiting period was 'the norm for our standard, which is already higher than other cities'.
He added: 'If you want to, say, have a flat, zero waiting time, then obviously the price of the flats will be higher, and this is where the resale flat market comes in.
'That's why you have a disparity in price between resale flat and new flats. This cost difference reflects the time difference.'
Mr Mah said there were enough homes for first-time buyers and the increased number of flats being built would relieve the pressure on the resale market.
In the short-term, he said, it was not clear if prices would continue to rise.
'The economy for the first half was very strong, but all indications are that it may not be so smooth going in the second half; all indications are that there may be some slowdown. If that comes about, then obviously the demand for housing will also slow down,' he said.
PropNex chief executive Mohamed Ismail said the biggest group of people driving up the resale prices are owners of HDB flats who are motivated by the peak prices to sell.
'The majority of those who bought new four- and five-room HDB flats eight years ago, can probably make more than $100,000 cash profit now,' he said.
Newlyweds said getting a new flat from the HDB had its difficulties too.
Civil servant Jonathan Fong, 31, and wedding videographer Mylene Tong, 29, failed twice to get a new flat in the locations they wanted.
They eventually bought a three-room flat in Sin Ming Road in March for $237,000, with a COV of $29,000.
Source: Straits Times, 26 Jul 2010
PRICES of HDB resale flats are high at present because of an 'imbalance' in supply and demand, which should be redressed by the record number of flats being released by the HDB this year.
The boost to supply should stabilise prices in about a year or so, said National Development Minister Mah Bow Tan yesterday, as he sought to address concerns over the cost of HDB resale flats, which has climbed steadily since 2008.
Speaking on the sidelines of a community event in Tampines, Mr Mah attributed the surge to strong economic growth and demand from first-time buyers, such as newly married couples, and owners looking to upgrade to bigger flats.
'I think at this point in time, there's still an imbalance,' he said. 'I hope that with HDB pushing out a record number of flats this year, this imbalance will be redressed over the medium term. I would expect that in another year or so, we should be able to stabilise everything.'
HDB launched almost 9,000 new build-to-order flats in the first half of the year, and will launch another 7,200 in the second half. The number is about 80 per cent more than for last year.
In addition, there are some 4,700 new flats under the design, build and sell scheme, in which HDB flats are built by private developers, and the executive condo (EC) housing scheme. In the pipeline are four more EC sites in Punggol, Pasir Ris, Bukit Panjang and Tampines, which should yield 1,900 units.
Resale prices for HDB flats rose for the eighth straight quarter between April and last month, surging 4.1 per cent from the previous quarter.
In the first half of this year, 17,598 resale applications were registered with HDB, compared to 16,630 for the same period last year and 14,121 in 2008.
The median cash over valuation (COV) - the cash amount paid upfront by a buyer over a flat's valuation by the HDB - also hit a record $30,000.
Mr Mah acknowledged this was 'equally a concern' as it made resale flats even less affordable, and urged first-time buyers to purchase their new home directly from the HDB instead.
He said: 'If you are a first-timer, then go for the build-to-order (BTO) market, where there is zero COV, where the prices are lower, where the flats are of newer design and so on.'
To newly married couples who say they cannot wait that long for a new flat, Mr Mah said the three-year waiting period was 'the norm for our standard, which is already higher than other cities'.
He added: 'If you want to, say, have a flat, zero waiting time, then obviously the price of the flats will be higher, and this is where the resale flat market comes in.
'That's why you have a disparity in price between resale flat and new flats. This cost difference reflects the time difference.'
Mr Mah said there were enough homes for first-time buyers and the increased number of flats being built would relieve the pressure on the resale market.
In the short-term, he said, it was not clear if prices would continue to rise.
'The economy for the first half was very strong, but all indications are that it may not be so smooth going in the second half; all indications are that there may be some slowdown. If that comes about, then obviously the demand for housing will also slow down,' he said.
PropNex chief executive Mohamed Ismail said the biggest group of people driving up the resale prices are owners of HDB flats who are motivated by the peak prices to sell.
'The majority of those who bought new four- and five-room HDB flats eight years ago, can probably make more than $100,000 cash profit now,' he said.
Newlyweds said getting a new flat from the HDB had its difficulties too.
Civil servant Jonathan Fong, 31, and wedding videographer Mylene Tong, 29, failed twice to get a new flat in the locations they wanted.
They eventually bought a three-room flat in Sin Ming Road in March for $237,000, with a COV of $29,000.
Source: Straits Times, 26 Jul 2010
HDB resale prices should stabilise in a year or so: Mah
(SINGAPORE) Prices of resale flats should stabilise in a year or so as the Housing & Development Board (HDB) releases a record number of new flats into the market.
This was according to National Development Minister Mah Bow Tan, who spoke on the sidelines of HDB's 50th anniversary celebrations at Tampines yesterday.
Resale flat prices have been climbing in the last few quarters and they rose 4.1 per cent in Q2 from Q1 to a new high.
There is an 'imbalance' in the resale flat market, Mr Mah said. With the economy doing well, demand for resale flats from both first-time buyers and upgraders has been strong.
'I hope that with HDB pushing out a record number of flats, this imbalance will be addressed over the medium term,' he said. There should be stability 'maybe in another year or so'.
HDB will be launching 16,000 build-to-order (BTO) flats this year, 80 per cent more than in the previous year. Another 4,700 flats from executive condominium projects and the Design, Build and Sell scheme are potentially coming up.
It would be hard to say how resale flat prices will move in the short term, Mr Mah said. 'The economy for the first half was very strong, but all indications are that it may not be so smooth going in the second half.'
If the economy cools, 'the demand for housing will also slow down,' he said.
Accompanying the rise in resale flat prices was a hike in cash premiums which buyers pay. The median cash over valuation (COV) across all resale deals in Q2 was $30,000, up from Q1's $25,000.
Rising COVs are a concern but they are determined by demand and supply in the market and the government cannot intervene, Mr Mah said.
He advised first-time buyers to turn to the BTO market 'where there is zero COV, where the prices are lower, where the flats are of newer designs,' he said.
Source: Business Times, 26 Jul 2010
This was according to National Development Minister Mah Bow Tan, who spoke on the sidelines of HDB's 50th anniversary celebrations at Tampines yesterday.
Resale flat prices have been climbing in the last few quarters and they rose 4.1 per cent in Q2 from Q1 to a new high.
There is an 'imbalance' in the resale flat market, Mr Mah said. With the economy doing well, demand for resale flats from both first-time buyers and upgraders has been strong.
'I hope that with HDB pushing out a record number of flats, this imbalance will be addressed over the medium term,' he said. There should be stability 'maybe in another year or so'.
HDB will be launching 16,000 build-to-order (BTO) flats this year, 80 per cent more than in the previous year. Another 4,700 flats from executive condominium projects and the Design, Build and Sell scheme are potentially coming up.
It would be hard to say how resale flat prices will move in the short term, Mr Mah said. 'The economy for the first half was very strong, but all indications are that it may not be so smooth going in the second half.'
If the economy cools, 'the demand for housing will also slow down,' he said.
Accompanying the rise in resale flat prices was a hike in cash premiums which buyers pay. The median cash over valuation (COV) across all resale deals in Q2 was $30,000, up from Q1's $25,000.
Rising COVs are a concern but they are determined by demand and supply in the market and the government cannot intervene, Mr Mah said.
He advised first-time buyers to turn to the BTO market 'where there is zero COV, where the prices are lower, where the flats are of newer designs,' he said.
Source: Business Times, 26 Jul 2010
Saturday, July 24, 2010
Rents rise for bigger HDB flats
THE Housing Board (HDB) rental market continues to strengthen with larger units showing the biggest rental jump.
Overall median monthly rentals inched up in the second quarter, helped by the demand from those fleeing from high private property rents. Foreigners and locals who have sold their homes in a hot market are among those boosting HDB rents, experts say.
Overall, median rentals for two- and three-room flats were flat at $1,200 and $1,500 respectively. But four-room, five-room and executive flats saw median rental increases of between $50 and $100 a month from the previous quarter.
Four-room flat monthly rentals rose to $1,800 from $1,750, five-room flat rentals were $2,000 from $1,900 and executive flat rentals climbed to $2,100 from $2,000 in the previous quarter.
Median rentals for executive flats in Queenstown also passed the $3,000 mark for the first time since the fourth quarter of 2008, rising to $3,200. There were, however, fewer than 10 of such sublets.
Five-room flats median monthly rentals in the central region also hovered over the $3,000 benchmark for the second consecutive quarter at $3,150.
Executive flats in Jurong East saw one of the largest jumps, of $300, from $2,100 to $2,400, while areas such as Bukit Batok and Sengkang generally saw higher rentals across all flat types.
Property experts say these second quarter median rentals have hit the peak previously achieved in the second half of 2008. They expect further rise and new benchmarks to be set later this year.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said as private rentals rose steadily, some tenants were likely to look for cheaper alternatives.
'The rate of rental increase might have outpaced the rental budget and so some tenants might prefer an HDB flat in a better location,' he said.
HSR executive director (agency) Jeffrey Hong said that the strong demand is partly due to an influx of foreigners this year into sectors such as information technology, as companies have started hiring again.
Some Singaporeans who sold their property to cash in on high property prices have also decided to rent temporarily instead of buying immediately, he said.
Ms Hwa Hui-en, 24, a social worker, has been renting a four-room flat with four others near Ghim Moh for $2,000 a month since November last year.
She is worried her rent might rise when her lease ends in November as some of her friends have had to move out of rented homes due to higher asking rents.
'Rentals are quite costly... We're splitting the rent among five people and are sharing rooms now. If we don't, it will probably take up a huge portion of our salary, maybe even one quarter of it.'
HDB said subletting deals rose about 15 per cent from 6,606 in the first quarter to 7,595 in the second - taking total approved sublet units to 30,500.
Source: Straits Times, 24 Jul 2010
Overall median monthly rentals inched up in the second quarter, helped by the demand from those fleeing from high private property rents. Foreigners and locals who have sold their homes in a hot market are among those boosting HDB rents, experts say.
Overall, median rentals for two- and three-room flats were flat at $1,200 and $1,500 respectively. But four-room, five-room and executive flats saw median rental increases of between $50 and $100 a month from the previous quarter.
Four-room flat monthly rentals rose to $1,800 from $1,750, five-room flat rentals were $2,000 from $1,900 and executive flat rentals climbed to $2,100 from $2,000 in the previous quarter.
Median rentals for executive flats in Queenstown also passed the $3,000 mark for the first time since the fourth quarter of 2008, rising to $3,200. There were, however, fewer than 10 of such sublets.
Five-room flats median monthly rentals in the central region also hovered over the $3,000 benchmark for the second consecutive quarter at $3,150.
Executive flats in Jurong East saw one of the largest jumps, of $300, from $2,100 to $2,400, while areas such as Bukit Batok and Sengkang generally saw higher rentals across all flat types.
Property experts say these second quarter median rentals have hit the peak previously achieved in the second half of 2008. They expect further rise and new benchmarks to be set later this year.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said as private rentals rose steadily, some tenants were likely to look for cheaper alternatives.
'The rate of rental increase might have outpaced the rental budget and so some tenants might prefer an HDB flat in a better location,' he said.
HSR executive director (agency) Jeffrey Hong said that the strong demand is partly due to an influx of foreigners this year into sectors such as information technology, as companies have started hiring again.
Some Singaporeans who sold their property to cash in on high property prices have also decided to rent temporarily instead of buying immediately, he said.
Ms Hwa Hui-en, 24, a social worker, has been renting a four-room flat with four others near Ghim Moh for $2,000 a month since November last year.
She is worried her rent might rise when her lease ends in November as some of her friends have had to move out of rented homes due to higher asking rents.
'Rentals are quite costly... We're splitting the rent among five people and are sharing rooms now. If we don't, it will probably take up a huge portion of our salary, maybe even one quarter of it.'
HDB said subletting deals rose about 15 per cent from 6,606 in the first quarter to 7,595 in the second - taking total approved sublet units to 30,500.
Source: Straits Times, 24 Jul 2010
Private home sales slower, but prices up
Prices hit new high, could rise further with economic recovery
SALES of private homes slowed towards the end of the second quarter but prices still kept heading north into record territory.
Prices rose 5.3 per cent in the second quarter - above the preliminary estimate of 5.2 per cent and not far from the first quarter rise of 5.6 per cent.
According to Urban Redevelopment Authority (URA) data released yesterday, prices are up 11.6 per cent since January and are expected to continue climbing although the pace may ease, said analysts.
Prices are now at record levels, eclipsing the 1996 peak, after shrugging off a dip in sales that began in May when Europe's debt crisis rocked global stock markets, observers said.
Rents were also rocketing - up 5.9 per cent in the second quarter to take the half-year rise to 10.9 per cent. Rents fell by 14.6 per cent last year.
'The continuing recovery in the economy facilitated the increased hiring of expatriate staff, which in turn, drove the rental market,' said Mr Li Hiaw Ho, CBRE Research's executive director.
Cushman and Wakefield managing director Donald Han added: 'In the second half of last year, prices went up more than 20 per cent but rents fell. So, there was some fear of a bubble forming.
'But prices are now moving in line with rent rises. As long as rents go up, the price rise should be supported.'
Non-landed home prices rose the most in suburban areas, up 5.7 per cent, from a 4.3 per cent increase in the first quarter.
City-fringe home prices were up 4.6 per cent while city-centre ones rose 5.4 per cent.
Prices of landed homes also continued to surge, climbing 6.2 per cent in the second quarter after jumping 8.3 per cent in the first quarter.
Luxury homes are the only sector yet to reach record heights, experts noted.
Yesterday's URA data also showed that 4,033 new homes were sold in the second quarter, down about 8 per cent from the first.
As at the second quarter, there were 61,831 private residential units in the pipeline. Of these, 32,630 units were still unsold. The URA said: 'This number is equivalent to about three years of supply based on the average take-up of about 11,300 units per year over the last three years.'
While some buyers hesitate, others have been snapping up property.
Copywriter Daryl Lee, 34, said: 'The last thing I want is to lock my cash up in a mortgage when all people are doing is chasing higher prices to pay higher asking prices.'
Another potential buyer Alex Wee, 37, said: 'On the one hand, things are pricey. But on the other hand, we're afraid that if we don't buy, we will miss the boat.'
Accounts executive Kris Lau, 33, who bought a small investment unit at a newly released project, 368 Thomson, after selling her HDB flat, said: 'It's a good time to cash out and upgrade.'
Jones Lang LaSalle's head of residential project sales, Mr David Neubronner, told The Straits Times: 'Prices... should take a breather. But given the current backdrop where our economic recovery is generating wealth, they are likely to continue to rise this year.
'Quite a lot of people are parking their money in property for the long term. In the worst-case scenario, I think prices may stay flat.'
Ngee Ann Polytechnic real estate lecturer Nicholas Mak believes private home prices will continue to rise this year and possibly into next year but at less than 5 per cent a quarter as sales slow.
The level of speculation now is within manageable levels, he felt.
URA data shows that sub-sales fell to 723 units in the second quarter, from 996 in the first.
Mr Li said the surprisingly strong economic growth in the second quarter will help keep market sentiment positive.
'However, as the Government is also anticipating a slowdown in the growth momentum for the rest of the year, the residential market is likely to move at a more moderate pace,' he said.
Sales of new homes may still reach 14,000 units this year - below last year's 14,688 units while home prices may rise by 12 to 15 per cent, he said.
Mr Mak is looking at a price rise of 16 to 21 per cent this year.
Meanwhile, office rents rose 1.1 per cent in the second quarter compared with 0.4 per cent in the first quarter.
Rents for shops and industrial properties rose by 0.5 per cent and 1.3 per cent respectively in the second quarter.
Source: Straits Times, 24 Jul 2010
SALES of private homes slowed towards the end of the second quarter but prices still kept heading north into record territory.
Prices rose 5.3 per cent in the second quarter - above the preliminary estimate of 5.2 per cent and not far from the first quarter rise of 5.6 per cent.
According to Urban Redevelopment Authority (URA) data released yesterday, prices are up 11.6 per cent since January and are expected to continue climbing although the pace may ease, said analysts.
Prices are now at record levels, eclipsing the 1996 peak, after shrugging off a dip in sales that began in May when Europe's debt crisis rocked global stock markets, observers said.
Rents were also rocketing - up 5.9 per cent in the second quarter to take the half-year rise to 10.9 per cent. Rents fell by 14.6 per cent last year.
'The continuing recovery in the economy facilitated the increased hiring of expatriate staff, which in turn, drove the rental market,' said Mr Li Hiaw Ho, CBRE Research's executive director.
Cushman and Wakefield managing director Donald Han added: 'In the second half of last year, prices went up more than 20 per cent but rents fell. So, there was some fear of a bubble forming.
'But prices are now moving in line with rent rises. As long as rents go up, the price rise should be supported.'
Non-landed home prices rose the most in suburban areas, up 5.7 per cent, from a 4.3 per cent increase in the first quarter.
City-fringe home prices were up 4.6 per cent while city-centre ones rose 5.4 per cent.
Prices of landed homes also continued to surge, climbing 6.2 per cent in the second quarter after jumping 8.3 per cent in the first quarter.
Luxury homes are the only sector yet to reach record heights, experts noted.
Yesterday's URA data also showed that 4,033 new homes were sold in the second quarter, down about 8 per cent from the first.
As at the second quarter, there were 61,831 private residential units in the pipeline. Of these, 32,630 units were still unsold. The URA said: 'This number is equivalent to about three years of supply based on the average take-up of about 11,300 units per year over the last three years.'
While some buyers hesitate, others have been snapping up property.
Copywriter Daryl Lee, 34, said: 'The last thing I want is to lock my cash up in a mortgage when all people are doing is chasing higher prices to pay higher asking prices.'
Another potential buyer Alex Wee, 37, said: 'On the one hand, things are pricey. But on the other hand, we're afraid that if we don't buy, we will miss the boat.'
Accounts executive Kris Lau, 33, who bought a small investment unit at a newly released project, 368 Thomson, after selling her HDB flat, said: 'It's a good time to cash out and upgrade.'
Jones Lang LaSalle's head of residential project sales, Mr David Neubronner, told The Straits Times: 'Prices... should take a breather. But given the current backdrop where our economic recovery is generating wealth, they are likely to continue to rise this year.
'Quite a lot of people are parking their money in property for the long term. In the worst-case scenario, I think prices may stay flat.'
Ngee Ann Polytechnic real estate lecturer Nicholas Mak believes private home prices will continue to rise this year and possibly into next year but at less than 5 per cent a quarter as sales slow.
The level of speculation now is within manageable levels, he felt.
URA data shows that sub-sales fell to 723 units in the second quarter, from 996 in the first.
Mr Li said the surprisingly strong economic growth in the second quarter will help keep market sentiment positive.
'However, as the Government is also anticipating a slowdown in the growth momentum for the rest of the year, the residential market is likely to move at a more moderate pace,' he said.
Sales of new homes may still reach 14,000 units this year - below last year's 14,688 units while home prices may rise by 12 to 15 per cent, he said.
Mr Mak is looking at a price rise of 16 to 21 per cent this year.
Meanwhile, office rents rose 1.1 per cent in the second quarter compared with 0.4 per cent in the first quarter.
Rents for shops and industrial properties rose by 0.5 per cent and 1.3 per cent respectively in the second quarter.
Source: Straits Times, 24 Jul 2010
Resale HDB flat prices hit new high
Cash over valuation now $30,000 even as supply of new flats increases
RESALE prices for HDB flats have smashed records for the eighth straight quarter with a surge of 4.1 per cent in the April to June period.
Prices passed the 1996 peak back in 2008 and have not looked back since.
And the march shows no sign of letting up, with median cash over valuation (COV) at a record $30,000 in the second quarter.
This is 20 per cent ahead of the $25,000 in the January to March quarter.
COV is the cash paid upfront by a buyer over a flat's valuation, and is often an indication of demand levels.
The HDB figures out yesterday show resale prices are almost 18 per cent above the previous peak in the last quarter of 1996.
Meanwhile, the HDB said yesterday it launched almost 9,000 new flats in the first half - equal to last year's total supply - and will launch another 7,200 in the second half to meet demand.
It will launch 1,000 new flats in Jurong West and Bukit Panjang this month. The total home supply will be complemented by 4,700 new homes under HDB's design, build and sell scheme (DBSS) and recently sold executive condo sites.
Despite this, resale activity keeps growing. Transactions hit 9,114 in the second quarter, up about 7 per cent on the first.
Nearly all deals involved cash paid upfront. The percentage of resale transactions done above valuation increased to 96 per cent, up from 93 per cent in the previous quarter.
The pace being set by buyers and sellers has also prompted fresh concerns on whether the market is overheating.
In estates like Queenstown the median resale price for an executive flat was an eye-popping $781,500 in the second quarter and $685,500 in Bishan.
The median resale price for five-roomers was $682,500 in Marine Parade and $675,000 for Queenstown.
Associate Professor Sing Tien Foo of the National University of Singapore's real estate department noted that apart from the price index surpassing the 1996 peak, it has also increased by more than 60 per cent compared with 2003 prices.
He said that price increases appear to be supported by strong economic fundamentals for now, with demand coming from upgraders, downgraders, PRs and home buyers who cannot wait three years for new HDB flats.
As government policies on resale flats discourage speculation, this price growth is unlikely to be a housing bubble, observed ERA Asia-Pacific associate director Eugene Lim.
Prof Sing added: 'But if price rises continue unabated, we should be concerned. When deviations from fundamentals are too large, some corrections in prices could occur.'
Mr Lim noted that the robust resale market is having a spillover effect on private property as HDB owners can upgrade thanks to the relatively high prices they can get for their flats.
Values in the private property market rose 5.3 per cent in the second quarter over the first despite slowing sales.
But as private property prices inch up, some buyers in that market could turn to the HDB resale sector, adding to demand, said PropNex chief executive Mohamed Ismail.
Some analysts believe prices have reached a new era.
'Property prices move in cycles and prices will go up and down. But generally, it will move in an uptrend due to scarcity of land in Singapore,' said Mr Lim.
'Even if prices come down, I think it'll still be higher than five years ago. It is unlikely we will go back to that level.'
While property agents say home buyers - especially first-timers - are getting increasingly disgruntled about blazing resale prices, some estates are still selling at levels below the 1996 peak.
PropNex agent Steven Ng, who recently helped a couple in their 50s sell a five-room Bishan flat for $615,000 - $70,000 above valuation - said the sellers were happy as they bought it at less than half that amount more than 10 years ago.
'But some sellers in Bishan who bought at 1996 peak have still yet to see price levels at the price they paid,' he said.
Source: Straits Times, 24 Jul 2010
RESALE prices for HDB flats have smashed records for the eighth straight quarter with a surge of 4.1 per cent in the April to June period.
Prices passed the 1996 peak back in 2008 and have not looked back since.
And the march shows no sign of letting up, with median cash over valuation (COV) at a record $30,000 in the second quarter.
This is 20 per cent ahead of the $25,000 in the January to March quarter.
COV is the cash paid upfront by a buyer over a flat's valuation, and is often an indication of demand levels.
The HDB figures out yesterday show resale prices are almost 18 per cent above the previous peak in the last quarter of 1996.
Meanwhile, the HDB said yesterday it launched almost 9,000 new flats in the first half - equal to last year's total supply - and will launch another 7,200 in the second half to meet demand.
It will launch 1,000 new flats in Jurong West and Bukit Panjang this month. The total home supply will be complemented by 4,700 new homes under HDB's design, build and sell scheme (DBSS) and recently sold executive condo sites.
Despite this, resale activity keeps growing. Transactions hit 9,114 in the second quarter, up about 7 per cent on the first.
Nearly all deals involved cash paid upfront. The percentage of resale transactions done above valuation increased to 96 per cent, up from 93 per cent in the previous quarter.
The pace being set by buyers and sellers has also prompted fresh concerns on whether the market is overheating.
In estates like Queenstown the median resale price for an executive flat was an eye-popping $781,500 in the second quarter and $685,500 in Bishan.
The median resale price for five-roomers was $682,500 in Marine Parade and $675,000 for Queenstown.
Associate Professor Sing Tien Foo of the National University of Singapore's real estate department noted that apart from the price index surpassing the 1996 peak, it has also increased by more than 60 per cent compared with 2003 prices.
He said that price increases appear to be supported by strong economic fundamentals for now, with demand coming from upgraders, downgraders, PRs and home buyers who cannot wait three years for new HDB flats.
As government policies on resale flats discourage speculation, this price growth is unlikely to be a housing bubble, observed ERA Asia-Pacific associate director Eugene Lim.
Prof Sing added: 'But if price rises continue unabated, we should be concerned. When deviations from fundamentals are too large, some corrections in prices could occur.'
Mr Lim noted that the robust resale market is having a spillover effect on private property as HDB owners can upgrade thanks to the relatively high prices they can get for their flats.
Values in the private property market rose 5.3 per cent in the second quarter over the first despite slowing sales.
But as private property prices inch up, some buyers in that market could turn to the HDB resale sector, adding to demand, said PropNex chief executive Mohamed Ismail.
Some analysts believe prices have reached a new era.
'Property prices move in cycles and prices will go up and down. But generally, it will move in an uptrend due to scarcity of land in Singapore,' said Mr Lim.
'Even if prices come down, I think it'll still be higher than five years ago. It is unlikely we will go back to that level.'
While property agents say home buyers - especially first-timers - are getting increasingly disgruntled about blazing resale prices, some estates are still selling at levels below the 1996 peak.
PropNex agent Steven Ng, who recently helped a couple in their 50s sell a five-room Bishan flat for $615,000 - $70,000 above valuation - said the sellers were happy as they bought it at less than half that amount more than 10 years ago.
'But some sellers in Bishan who bought at 1996 peak have still yet to see price levels at the price they paid,' he said.
Source: Straits Times, 24 Jul 2010
Broad-based growth in Q2 property prices
Momentum of recovery in private residential rents also picked up
PRIVATE home prices generally rose at a slightly slower pace in Q2 than they did in Q1, but latest official numbers show a broad-based growth in property prices - with stronger quarter-on-quarter gains for office, shop and industrial properties, as well as HDB resale flat prices in Q2 than in the first quarter.
The momentum of recovery in private residential rents also picked up in the second quarter, supported by an acceleration in hiring of expats as Singapore's economy continues to expand.
'Sentiment among developers and market watchers probably moderated from the end of first quarter as a result of the eurozone's economic problems, but the recent spectacular official GDP growth forecast for Singapore has probably helped to restore some confidence,' said Real Estate Developers Association of Singapore CEO Steven Choo.
The Urban Redevelopment Authority's (URA) benchmark overall price index for private homes rose 5.3 per cent in the second quarter over the preceding quarter, close to the 5.6 per cent per cent hike in Q1.
The price index for office space increased 4.6 per cent quarter on quarter in Q2, a bigger gain than the 1.8 per cent quarter-on-quarter rise in Q1.
Likewise, the shop price index went up 3.9 per cent in Q2, following a 1.8 per cent pick-up in the first three months. URA's flatted factory and warehouse price indices rose 5.4 and 9.4 per cent in Q2. In Q1, each of these increased 1.5 per cent.
In the private housing market, prices of detached houses rose 6.8 per cent in Q2, slower than the 9.6 per cent increase in Q1. Semi-D and terrace houses appreciated 6 per cent and 5.6 per cent respectively in Q2 - compared with increases of 7.5 and 7.4 per cent in the first three months.
Non-landed home prices in Core Central Region (which includes the prime districts, Marina Bay and Sentosa Cove) climbed 5.4 per cent in Q2, higher than the 4.4 per cent growth in Q1. Likewise, the price index for Outside Central Region (where suburban condos are located) rose 5.7 per cent in Q2 after increasing 4.3 per cent in Q1.
However, in Rest of Central Region the pace of price gain slowed from 7.9 per cent in the first quarter to 4.6 per cent in Q2.
In the primary market, developers sold a total of 4,033 private homes in Q2, down 7.9 per cent from Q1. In the secondary market, strong buying momentum was also seen in the resale market, with 4,682 private homes changing hands in Q2, although this was 5.6 per cent lower than the first three months of the year. However, subsale volumes eased 27.4 per cent, from 996 deals in Q1 to 723 in Q2.
'Resales were strong in Q2 because prices are more reasonable for older, completed properties than new project launches. On the other hand, subsales (which are secondary-market deals involving projects that have yet to receive Certificate of Statutory Completion) come in waves. Those who bought homes from developers in the past few months are probably waiting for prices to rise further before they offload their units,' suggests a market watcher.
In the leasing market, URA's All Residential rental index rose 5.9 per cent in Q2 over the preceding quarter, compared with a 4.7 per cent quarter-on-quarter gain in Q1. The index has appreciated 10.9 per cent since end-2009.
Rents accelerated for both landed and non-landed private homes. Terrace houses led the landed segment, with rents rising 6.6 per cent in Q2, followed by semi-detached houses (up 5.6 per cent) and detached (up 4.6 per cent). For non-landed homes, rents in Core Central Region appreciated the most, by 6.4 per cent, followed by Outside Central Region (up 6.1 per cent) and Rest of Central Region (5.1 per cent).
However, the latest All Residential rental index is about 11.1 per cent below its peak in Q2 2008.
Jones Lang LaSalles' head of residential Jacqueline Wong said the latest official figures confirm feedback from the ground. Monthly rentals of four-bedroom apartments in high-end developments such as Grange Residences, Draycott 8 and Ardmore Park are hitting $16,000-$18,000 on average - an improvement from $14,000-$15,000 in the second half of last year.
'But we still haven't achieved the peak levels of $18,000-$22,000 seen in the late 2007 to mid-2008 period,' Ms Wong added. 'We're seeing rehiring of expats again but housing allowances are not as generous as before.'
Ms Wong is predicting flattish rents until the end of this year, citing new competition with the impending completion of The Orchard Residences and The Marq on Paterson Hill.
URA numbers show 4,379 private homes received Temporary Occupation Permit (TOP) in Q2, compared with 1,407 units in Q1. The surge in new completions pushed up the islandwide vacancy rate for private homes to 5.4 per cent at end-Q2, from 4.6 per cent at end-Q1. But this could ease again as owners or tenants move into the new homes.
Major residential projects completed in April-June 2010 include One Amber, Marina Bay Residences, Dakota Residences and The Arte.
With a further 4,958 units expected to receive TOP by year end, the full-year tally will be 10,744, slightly above last year's 10,488 units
Source: Business Times, 24 Jul 2010
PRIVATE home prices generally rose at a slightly slower pace in Q2 than they did in Q1, but latest official numbers show a broad-based growth in property prices - with stronger quarter-on-quarter gains for office, shop and industrial properties, as well as HDB resale flat prices in Q2 than in the first quarter.
The momentum of recovery in private residential rents also picked up in the second quarter, supported by an acceleration in hiring of expats as Singapore's economy continues to expand.
'Sentiment among developers and market watchers probably moderated from the end of first quarter as a result of the eurozone's economic problems, but the recent spectacular official GDP growth forecast for Singapore has probably helped to restore some confidence,' said Real Estate Developers Association of Singapore CEO Steven Choo.
The Urban Redevelopment Authority's (URA) benchmark overall price index for private homes rose 5.3 per cent in the second quarter over the preceding quarter, close to the 5.6 per cent per cent hike in Q1.
The price index for office space increased 4.6 per cent quarter on quarter in Q2, a bigger gain than the 1.8 per cent quarter-on-quarter rise in Q1.
Likewise, the shop price index went up 3.9 per cent in Q2, following a 1.8 per cent pick-up in the first three months. URA's flatted factory and warehouse price indices rose 5.4 and 9.4 per cent in Q2. In Q1, each of these increased 1.5 per cent.
In the private housing market, prices of detached houses rose 6.8 per cent in Q2, slower than the 9.6 per cent increase in Q1. Semi-D and terrace houses appreciated 6 per cent and 5.6 per cent respectively in Q2 - compared with increases of 7.5 and 7.4 per cent in the first three months.
Non-landed home prices in Core Central Region (which includes the prime districts, Marina Bay and Sentosa Cove) climbed 5.4 per cent in Q2, higher than the 4.4 per cent growth in Q1. Likewise, the price index for Outside Central Region (where suburban condos are located) rose 5.7 per cent in Q2 after increasing 4.3 per cent in Q1.
However, in Rest of Central Region the pace of price gain slowed from 7.9 per cent in the first quarter to 4.6 per cent in Q2.
In the primary market, developers sold a total of 4,033 private homes in Q2, down 7.9 per cent from Q1. In the secondary market, strong buying momentum was also seen in the resale market, with 4,682 private homes changing hands in Q2, although this was 5.6 per cent lower than the first three months of the year. However, subsale volumes eased 27.4 per cent, from 996 deals in Q1 to 723 in Q2.
'Resales were strong in Q2 because prices are more reasonable for older, completed properties than new project launches. On the other hand, subsales (which are secondary-market deals involving projects that have yet to receive Certificate of Statutory Completion) come in waves. Those who bought homes from developers in the past few months are probably waiting for prices to rise further before they offload their units,' suggests a market watcher.
In the leasing market, URA's All Residential rental index rose 5.9 per cent in Q2 over the preceding quarter, compared with a 4.7 per cent quarter-on-quarter gain in Q1. The index has appreciated 10.9 per cent since end-2009.
Rents accelerated for both landed and non-landed private homes. Terrace houses led the landed segment, with rents rising 6.6 per cent in Q2, followed by semi-detached houses (up 5.6 per cent) and detached (up 4.6 per cent). For non-landed homes, rents in Core Central Region appreciated the most, by 6.4 per cent, followed by Outside Central Region (up 6.1 per cent) and Rest of Central Region (5.1 per cent).
However, the latest All Residential rental index is about 11.1 per cent below its peak in Q2 2008.
Jones Lang LaSalles' head of residential Jacqueline Wong said the latest official figures confirm feedback from the ground. Monthly rentals of four-bedroom apartments in high-end developments such as Grange Residences, Draycott 8 and Ardmore Park are hitting $16,000-$18,000 on average - an improvement from $14,000-$15,000 in the second half of last year.
'But we still haven't achieved the peak levels of $18,000-$22,000 seen in the late 2007 to mid-2008 period,' Ms Wong added. 'We're seeing rehiring of expats again but housing allowances are not as generous as before.'
Ms Wong is predicting flattish rents until the end of this year, citing new competition with the impending completion of The Orchard Residences and The Marq on Paterson Hill.
URA numbers show 4,379 private homes received Temporary Occupation Permit (TOP) in Q2, compared with 1,407 units in Q1. The surge in new completions pushed up the islandwide vacancy rate for private homes to 5.4 per cent at end-Q2, from 4.6 per cent at end-Q1. But this could ease again as owners or tenants move into the new homes.
Major residential projects completed in April-June 2010 include One Amber, Marina Bay Residences, Dakota Residences and The Arte.
With a further 4,958 units expected to receive TOP by year end, the full-year tally will be 10,744, slightly above last year's 10,488 units
Source: Business Times, 24 Jul 2010
Thursday, July 22, 2010
Wrong timing, now family has no home
MR W. H. Wong, 36, a manager, has been living apart from his wife and two young children for six months and sees no end to their plight in sight.
He sold his four-room flat last August to upgrade to a maisonette but while trying to secure a housing loan, HDB's loan policy changed and he now faces a cash shortfall for his next purchase.
He still hopes to buy a maisonette, so his parents can move in with him.
For now, his wife and their two children, aged six and four, stay with her parents in Serangoon, while he is with his parents in Chua Chu Kang.
Every evening, he drives to Serangoon to see his family, then heads back to his parents' four-room flat, which is too small to accommodate his family.
He is frustrated at the situation because, unlike some others, he did not sell his flat for easy cash but to upgrade to a bigger home.
When he sold his flat last August, he received cash proceeds of $57,000. Now, HDB has asked him to fork out half of that sum for his next purchase. HDB has also reduced the size of the loan it will grant him by that amount.
'The housing loan is now smaller, and the cash-over-valuation for flats is rising. With this new rule, HDB has reduced the amount of cash I have that I could have used to pay for the COV of the new flat,' he said.
A buoyant market has sent the COV - cash premiums for HDB flats - soaring.
Mr Wong has tried looking for flats with lower COV but to no avail. He also sought the help of his MP Cynthia Phua.
His query: 'I sold my flat before the policy was implemented. Why does it apply to me?'
In November last year, he applied for an HDB loan to finance the purchase of his second flat.
The board rejected the application as the couple's combined monthly income exceeded the cap of $8,000.
He re-applied. HDB finally gave him a loan in April. By then, his wife had left her job and the family income was below $8,000.
Now, the problem is that he does not have enough cash to buy a flat of the size he wants.
'Every maisonette seller is now asking for at least $50,000 in COV. If I give HDB half of my cash proceeds, where do I find the cash to pay for the COV?' he asked.
'It's all wrong timing,' he lamented.
Source: Straits Times, 22 Jul 2010
He sold his four-room flat last August to upgrade to a maisonette but while trying to secure a housing loan, HDB's loan policy changed and he now faces a cash shortfall for his next purchase.
He still hopes to buy a maisonette, so his parents can move in with him.
For now, his wife and their two children, aged six and four, stay with her parents in Serangoon, while he is with his parents in Chua Chu Kang.
Every evening, he drives to Serangoon to see his family, then heads back to his parents' four-room flat, which is too small to accommodate his family.
He is frustrated at the situation because, unlike some others, he did not sell his flat for easy cash but to upgrade to a bigger home.
When he sold his flat last August, he received cash proceeds of $57,000. Now, HDB has asked him to fork out half of that sum for his next purchase. HDB has also reduced the size of the loan it will grant him by that amount.
'The housing loan is now smaller, and the cash-over-valuation for flats is rising. With this new rule, HDB has reduced the amount of cash I have that I could have used to pay for the COV of the new flat,' he said.
A buoyant market has sent the COV - cash premiums for HDB flats - soaring.
Mr Wong has tried looking for flats with lower COV but to no avail. He also sought the help of his MP Cynthia Phua.
His query: 'I sold my flat before the policy was implemented. Why does it apply to me?'
In November last year, he applied for an HDB loan to finance the purchase of his second flat.
The board rejected the application as the couple's combined monthly income exceeded the cap of $8,000.
He re-applied. HDB finally gave him a loan in April. By then, his wife had left her job and the family income was below $8,000.
Now, the problem is that he does not have enough cash to buy a flat of the size he wants.
'Every maisonette seller is now asking for at least $50,000 in COV. If I give HDB half of my cash proceeds, where do I find the cash to pay for the COV?' he asked.
'It's all wrong timing,' he lamented.
Source: Straits Times, 22 Jul 2010
Some HDB buyers in a fix over cash proceeds rule
Half of gains must go towards next flat but they have spent money
A SMALL number of HDB buyers now face a cash shortfall and cannot buy replacement homes of their choice, due to changes to the HDB loan policy in March.
These buyers sold their flats before a new rule stated that buyers must use 50 per cent of their cash proceeds to finance their next flat. They are now stuck because they have spent the cash.
A Straits Times check with 16 MPs found that a small number of such buyers have showed up at their Meet-the-People sessions.
Aljunied GRC MP Cynthia Phua has five constituents caught out by the policy change; Dr Lim Wee Kiak, an MP for Sembawang GRC, has seven; Mr Yeo Guat Kwang, also of Aljunied GRC, has two and Madam Ho Geok Choo of West Coast GRC has 10.
These buyers are divided into two groups: downgraders who sold their flats and used the cash proceeds to settle debts, or genuine upgraders who need a bigger flat for their families.
Among those who sought Madam Phua's help were a couple who sold their flat in 2006. When they tried to buy a flat this year, they were surprised that the loan amount granted by HDB was reduced by half the cash proceeds from the first sale.
HDB changed its loan policy in March to make second concessionary loans available to downgraders. Such loans were previously given only to upgraders. HDB also laid down a new rule - loan applicants must use the full CPF proceeds and half the cash proceeds from the sale of the previous flat or $25,000, whichever is less, to finance their next home. The change was to encourage financial prudence.
While Madam Phua supports the move to prevent home owners from cashing out on their flats, she does not think it is fair for those who sold their flats before the policy change in March to be subject to the new requirement.
'HDB will now give a loan only less half of the cash proceeds amount, but that's not enough money to buy a new home and most of them have already spent their cash proceeds,' she said.
During Monday's Parliament sitting, Madam Phua appealed to National Development Minister Mah Bow Tan on behalf of her constituent who sold his flat in 2006.
Mr Mah said in reply that the HDB gave home buyers a second subsidised loan so they could buy something they really needed. 'If you have already made a lot of money, then I think it is only fair that the HDB takes that into account, irrespective of when you have sold a flat,' he said.
He also felt that home buyers like the one Madam Phua cited were 'rare', as most bought a second flat soon after they sold their first. Still, he promised to review appeals on a case-by-case basis.
The HDB also provided figures to show that the policy change benefited large numbers of downgraders.
Between March and May 31 this year, HDB approved 2,439 applications for a second concessionary loan. Of these, more than half were downsizing or moving to a flat of the same size. These buyers would not have qualified for a second subsidised loan if the policy had not been changed.
On Monday, Mr Mah stressed that the size of the second loan could not be independent of the proceeds from the sale of the previous flat. If it were, that would create a 'perverse incentive' for people to upgrade and downgrade 'to automatically get a larger HDB loan'.
PropNex chief executive Mohamed Ismail said the policy change has helped many flat owners who faced financial hardship and needed to downgrade to a smaller flat. Before the change, they could not apply for a second HDB loan. Many were also unable to secure a bank loan because of their bad credit history, he said.
The new rule has made some more cautious. Mr Jerry Lee, 31, a property agent with HSR Property, has had five clients change their minds about selling since March. 'Many of them wanted to cash in on their property, but the policy change has made them think twice before selling.'
Source: Straits Times, 22 Jul 2010
A SMALL number of HDB buyers now face a cash shortfall and cannot buy replacement homes of their choice, due to changes to the HDB loan policy in March.
These buyers sold their flats before a new rule stated that buyers must use 50 per cent of their cash proceeds to finance their next flat. They are now stuck because they have spent the cash.
A Straits Times check with 16 MPs found that a small number of such buyers have showed up at their Meet-the-People sessions.
Aljunied GRC MP Cynthia Phua has five constituents caught out by the policy change; Dr Lim Wee Kiak, an MP for Sembawang GRC, has seven; Mr Yeo Guat Kwang, also of Aljunied GRC, has two and Madam Ho Geok Choo of West Coast GRC has 10.
These buyers are divided into two groups: downgraders who sold their flats and used the cash proceeds to settle debts, or genuine upgraders who need a bigger flat for their families.
Among those who sought Madam Phua's help were a couple who sold their flat in 2006. When they tried to buy a flat this year, they were surprised that the loan amount granted by HDB was reduced by half the cash proceeds from the first sale.
HDB changed its loan policy in March to make second concessionary loans available to downgraders. Such loans were previously given only to upgraders. HDB also laid down a new rule - loan applicants must use the full CPF proceeds and half the cash proceeds from the sale of the previous flat or $25,000, whichever is less, to finance their next home. The change was to encourage financial prudence.
While Madam Phua supports the move to prevent home owners from cashing out on their flats, she does not think it is fair for those who sold their flats before the policy change in March to be subject to the new requirement.
'HDB will now give a loan only less half of the cash proceeds amount, but that's not enough money to buy a new home and most of them have already spent their cash proceeds,' she said.
During Monday's Parliament sitting, Madam Phua appealed to National Development Minister Mah Bow Tan on behalf of her constituent who sold his flat in 2006.
Mr Mah said in reply that the HDB gave home buyers a second subsidised loan so they could buy something they really needed. 'If you have already made a lot of money, then I think it is only fair that the HDB takes that into account, irrespective of when you have sold a flat,' he said.
He also felt that home buyers like the one Madam Phua cited were 'rare', as most bought a second flat soon after they sold their first. Still, he promised to review appeals on a case-by-case basis.
The HDB also provided figures to show that the policy change benefited large numbers of downgraders.
Between March and May 31 this year, HDB approved 2,439 applications for a second concessionary loan. Of these, more than half were downsizing or moving to a flat of the same size. These buyers would not have qualified for a second subsidised loan if the policy had not been changed.
On Monday, Mr Mah stressed that the size of the second loan could not be independent of the proceeds from the sale of the previous flat. If it were, that would create a 'perverse incentive' for people to upgrade and downgrade 'to automatically get a larger HDB loan'.
PropNex chief executive Mohamed Ismail said the policy change has helped many flat owners who faced financial hardship and needed to downgrade to a smaller flat. Before the change, they could not apply for a second HDB loan. Many were also unable to secure a bank loan because of their bad credit history, he said.
The new rule has made some more cautious. Mr Jerry Lee, 31, a property agent with HSR Property, has had five clients change their minds about selling since March. 'Many of them wanted to cash in on their property, but the policy change has made them think twice before selling.'
Source: Straits Times, 22 Jul 2010
Wednesday, July 21, 2010
Bill may put moneylenders out of business
LICENSED moneylenders, hard hit by a new Bill that was passed in Parliament on Monday, say they are now left with no choice but to close down.
The new law disallows Housing Board home owners from using the proceeds of selling their homes as collateral for loans, or for the payment of debts, except under approved circumstances.
Simply put, this means moneylenders are now no longer able to lodge caveats against flats to ensure they get first bite of the proceeds from the property's sale if the borrower cannot pay up.
The Straits Times understands that at least 10 moneylenders who focus on loans for home sellers will be putting up the shutters in the coming weeks.
Moneylenders' Association of Singapore president David Poh said at least 30 members in his association are extremely discouraged by the changes.
In May, new rules prohibiting licensed moneylenders from working as property agents, and vice-versa, were announced.
One affected moneylender, who declined to be named, said she used to lodge caveats for the four cases she handles on average monthly.
'Now the law has closed all our options, we have no choice but to wind up,' said the 37-year-old.
Another moneylender, who wanted to be known only as Mr Tan, 44, said he will now focus on his property business. He started a moneylending arm late last year to complement his realty work.
'Now I just want to collect the loans I have given out, and close down the moneylending firm,' he said, adding that he used to lodge about two caveats monthly. 'Without caveats as security, who wants to risk lending out large amounts?'
The growing practice by some moneylenders of exploiting cash-strapped home owners desperate for loans was first flagged in Parliament in April.
Industry players estimate that of the 260 licensed moneylenders in the market, at least 30 per cent regularly lodged caveats on their borrowers' homes. There were 556 registered resale applications with caveats lodged by moneylenders in just the first half of this year, a spike from 546 for the whole of last year and just 12 in 2008.
Mr Poh's committee held a meeting yesterday to discuss the impact of the new rules. 'Those affected are rethinking how to continue their business,' he said, adding that most moneylenders will raise their interest rates by at least 10 percentage points per annum, now that they do not have the security of caveats.
The new rules could also put loansharks back in business. 'The demand for loans is still there. But if the people can't get loans, they will turn to the illegal lenders,' said Mr Poh.
Source: Straits Times, 21 Jul 2010
The new law disallows Housing Board home owners from using the proceeds of selling their homes as collateral for loans, or for the payment of debts, except under approved circumstances.
Simply put, this means moneylenders are now no longer able to lodge caveats against flats to ensure they get first bite of the proceeds from the property's sale if the borrower cannot pay up.
The Straits Times understands that at least 10 moneylenders who focus on loans for home sellers will be putting up the shutters in the coming weeks.
Moneylenders' Association of Singapore president David Poh said at least 30 members in his association are extremely discouraged by the changes.
In May, new rules prohibiting licensed moneylenders from working as property agents, and vice-versa, were announced.
One affected moneylender, who declined to be named, said she used to lodge caveats for the four cases she handles on average monthly.
'Now the law has closed all our options, we have no choice but to wind up,' said the 37-year-old.
Another moneylender, who wanted to be known only as Mr Tan, 44, said he will now focus on his property business. He started a moneylending arm late last year to complement his realty work.
'Now I just want to collect the loans I have given out, and close down the moneylending firm,' he said, adding that he used to lodge about two caveats monthly. 'Without caveats as security, who wants to risk lending out large amounts?'
The growing practice by some moneylenders of exploiting cash-strapped home owners desperate for loans was first flagged in Parliament in April.
Industry players estimate that of the 260 licensed moneylenders in the market, at least 30 per cent regularly lodged caveats on their borrowers' homes. There were 556 registered resale applications with caveats lodged by moneylenders in just the first half of this year, a spike from 546 for the whole of last year and just 12 in 2008.
Mr Poh's committee held a meeting yesterday to discuss the impact of the new rules. 'Those affected are rethinking how to continue their business,' he said, adding that most moneylenders will raise their interest rates by at least 10 percentage points per annum, now that they do not have the security of caveats.
The new rules could also put loansharks back in business. 'The demand for loans is still there. But if the people can't get loans, they will turn to the illegal lenders,' said Mr Poh.
Source: Straits Times, 21 Jul 2010
Subscribe to:
Posts (Atom)