Nuisance calls from property agents

THE two letters last Thursday from readers calling for action by the authorities to arrest the problem of nuisance calls by telemarketers ('Banks, please back off; MAS, kindly act...' by Miss Heng Siew Cheng, and 'Protect consumers against telemarketers' by Ms Chai Lai Yuen) are timely, as the current recession is likely to see more companies, faced with falling sales, resort to such tactics to procure business.

However, I would like to share that this problem is not just perpetuated by banks, insurance companies and spas, as Miss Heng and Ms Chai noted.

Recently, I was the victim of countless nuisance calls to my private residential line by property agents. In the absence of a regulatory authority over these agents, I have written to the offending property firms and asked to be placed on the 'no call' list as practised by most banks.

To my chagrin, the agencies disclaimed any responsibility for the marketing tactics of their agents and told me they were unable to help. In fact, one agency, PropNex, did not even bother to respond, though I took the trouble to appeal all the way to its chief executive officer, Mr Mohd Ismail. Some even brushed me off, citing their right to do telemarketing. Even the one government agency I assume would have some authority in such matters, the Singapore Land Authority, also expressed its powerlessness to help.

It is a mystery how these property agents got my private residential number as I have had no dealings with any of them. I have been told by a property agent friend, as well as conveyancing lawyers, that they either buy such details from data providers or get them illegally from the electoral register.

Either way, the ability of telemarketers to lay their hands on private information is disturbing, not to mention distressing. I appeal to the authorities to clamp down on such errant practices. At the same time, I urge the Government to examine the need for a data protection Act, which is in place in many developed countries.

Bryan Ong

Source: Straits Times Online Forum, 2 Mar 2009

‘I can’t take the flat with me when I die’

AT 72, Mr Koh Chiong Eng is worried he may lose his job as a petrol pump assistant.

That is why he was among the five who signed up for the Lease Buyback scheme, which was officially launched yesterday some two years after Prime Minister Lee Hsien Loong mooted the idea.

“I can’t take the flat with me if I die. It’s better to sell it to the Government and get some money to meet my daily needs,” he said.

Mr Koh, who lives with his wife, will receive about $600 monthly for the rest of their lives based on the $236,000 value of their three-room Tampines flat.

Under the scheme, lessees of two- or three-bedroom flats aged 62 and above effectively sell the tail-end of the lease — at market value — to the Housing and Development Board (HDB), leaving them with a shorter 30-year lease. The lessee then receives a monthly payout from a CPF annuity plan while continuing to live in his or her existing home.

The Government will offer a $10,000 “bonus” to those who sign up — half of it in cash upfront, and the remainder into the annuity.

Speaking to some 200 senior citizens at Tampines Central Community Complex yesterday, National Development Minister Mah Bow Tan stressed that the Government is “not forcing anyone to sell” their flats; rather, the scheme is an “additional option” which can help them have a “more comfortable retirement”.

Describing the scheme as a “generous” one which gives those who sign up the “best of both worlds”, he urged those who are eligible to “seriously consider” taking up the offer.

HDB will be reaching out to the estimated 25,000 elderly households who qualify, Mr Mah told reporters.

Over the next two months, it will organise exhibitions at 11 areas around the island where there are high numbers of elderly households to raise awareness and understanding of the scheme.

HDB officers will also be going door-to-door to answer queries and give out information booklets.

Retiree Madam Choi Lai, 63, who lives in a four-room flat in Queenstown with her husband, expressed hope that the rules would be relaxed so that she could qualify for the scheme. “I want to keep my home too if the time comes when I need more income,” she said.

Mr Mah noted that the priority now is to help smaller flat owners, who are more likely to be from the lower-income bracket. “The four roomers have other options because you can still downgrade to a three-room studio apartment, and they are able to unlock the value,” he said. “With the three roomers, it is much harder to downgrade. They are the ones who are more in need of this scheme.”
But he added that the scheme may be extended, based on feedback and demand.

To find out more, visit HDB branch offices or call 1800-5556363.

Source: Today, 2 Mar 2009

HDB's lease buyback scheme launched

MR KOH Chiong Eng's three-room HDB flat at Tampines is his biggest asset. The 72-year-old petrol station attendant and his 69-year-old wife, Madam Lim Poh Choon, have lived there for 23 years.

Mr Koh, who takes home $800 a month, does not think he will lose his job any time soon. He has about $55,000 in savings and CPF.

But with the economy in such an uncertain state, he took what he called the logical step: he 'unlocked' the cash from his flat.

He is one of five elderly people who became the first to sign up for the Government's Lease Buyback Scheme launched yesterday.

Basically, he is selling 30 years of the 76 years left of his lease to the Government - in return for $5,000 cash and a monthly annuity payout of about $500 from CPF Life.

'We're both getting old and the monthly payout will be very helpful,' said Mr Koh in Mandarin.

'I've a 42-year-old daughter who sells electronics, but she doesn't give us a monthly sum as she
doesn't earn very much and has two children to support.'

Mr Koh is not worried that his daughter would be left high and dry should anything happen to him and his wife any time soon.

She can still get a refund of the remaining flat lease as well as a full refund of the unused premium from the annuity plan.

The buyback scheme, first announced by Prime Minister Lee Hsien Loong at the National Day Rally two years ago, is the latest in recent years to help retirees use their home to fund their living expenses.

Currently, they can move in with their children while subletting their whole flat; sell their flat and move to a smaller flat; or take even take up a reverse mortgage on their flat.

The last option, which allows home owners to borrow against the value of their property, is offered by insurers like NTUC Income.

But this scheme has not been popular as people are afraid the amount they have withdrawn plus interest may exceed the value of their flat at some point in the future, said Mr Leong Sze Hian, president of the Society of Financial Service Professionals.

According to the Committee on Ageing Issues, residents aged 65 years or older will triple from 300,000 currently to 900,000 in 2030.

In all, about 25,000 households are eligible for the buyback scheme, which is limited to those above 62 living in three-room flats and smaller. They represent about 70 per cent of elderly households in two- and three-room flats.

About 600 Tampines and Simei residents eligible for the scheme were invited to the launch, officiated by National Development Minister Mah Bow Tan.

The scheme, he said, builds on Singapore's life-cycle to home ownership. 'For the young couple, HDB helps them purchase their first flat...When the family reaches old age, HDB gives them a second set of 'keys' - this time, to unlock or monetise their flat's value,' said Mr Mah.

If the flat owner dies before the 30 years is up, his family gets a pro-rated refund from HDB, he said.

'HDB will (also) work with them to ensure a roof over their head beyond the 30 years.'

Mr Mah added: 'Some residents have asked me: 'Why is the Government forcing them to sell their flats?' I want to say clearly that we're not forcing anyone to sell anything.'

Mr Bohari Markani, 78, is one of those who does not intend to get on the scheme. He wants to pass down his three-room flat in Tampines to his 51-year-old daughter, Asnah, who is unemployed.
HDB will organise exhibitions at 11 locations including MacPherson, Queenstown, Toa Payoh Central, Radin Mas and Kampong Glam to explain how the scheme works.

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THE SCHEME

IS meant for Singaporeans owning three-room or smaller flats where the outstanding mortgage loan is $5,000 or less.

They must also:

• be at least 62 years old;
• not have a household income of more than $3,000;
• not have previously owned a four-room or larger flat or private property;
• not have enjoyed more than one housing subsidy;
• have owned the existing flat for five years or more.

How it works

LET us say a man, aged 62, has a three-room flat with 70 years left on its lease and which fetches $236,000 in the market.

What happens: HDB buys 40 years of the lease, worth $104,000. The Government tops this up with a subsidy of $10,000. This totals $114,000.

The man continues to stay in the flat, which has a lease of 30 years left.

What he gets: $5,000 in cash upfront and $530 a month as the remaining $109,000 will be used to buy an annuity from CPF Board that pays him for life.

(The equivalent payout for a 62-year-old woman is $490.)

If the flat is jointly owned by an elderly couple both aged 62, the monthly payout is $510.

If he dies within 30 years: His wife or child who live in the flat can stay there for what is left of the 30 years.

They have another option, which is to return the flat to HDB and get a refund for the remaining lease.

If they are named as his beneficiaries, they will be refunded the unused premium of the annuity plan. $5,000 in cash upfront and $530 a month as the remaining $109,000 will be used to buy an annuity from CPF Board that pays him for life. (The equivalent payout for a 62-year-old woman is $490.)

If the flat is jointly owned by an elderly couple both aged 62, the monthly payout is $510.

If he dies within 30 years: His wife or child who live in the flat can stay there for what is left of the 30 years.

They have another option, which is to return the flat to HDB and get a refund for the remaining lease.

If they are named as his beneficiaries, they will be refunded the unused premium of the annuity plan.

Source: Straits Times, 2 Mar 2009

HDB Lease Buyback Scheme kicks off

SINGAPORE : Singapore's Housing and Development Board Lease Buyback Scheme started on Sunday, after two years in the works.

Five applications were received in the first hour. The scheme is designed to help cash-poor, asset-rich seniors meet their retirement needs.

72-year-old Koh Chiong Eng is afraid he may lose his petrol pump attendant job soon because of his age.

If that happens, meeting daily expenditure will become difficult, as his wife does not work.

Hence, they were among the first in Singapore to sign up for the Lease Buyback Scheme - where HDB buys back the tail-end of the lease of their flat, leaving them with a shorter 30-year lease.

They will get a first-time payout of S$5,000, and monthly payments of about S$600 till death.

The amount is calculated based on the estimated valuation of their their-room flat - at S$236,000.

The payout varies depending on the valuation of the flat, done by independent assessors.

An estimated 25,000 households are eligible for the scheme, and concerns have been raised about some seniors' reluctance to part with their properties.

But it is not an issue with Mr Koh. He said: "I can't take the flat with me if I die. It is better to sell it to the government and get money to meet my daily needs."

Some seniors are also reluctant because of the Asian value of leaving property to their children.

Commenting on the issue, National Development Minister Mah Bow Tan said: "I hope at the same time, their children will also look after them. But you and I know that this is not a given." Seniors will get to stay in their homes for 30 years after they sign up. And if they are still alive after the 30-year lease, alternative arrangements such as nursing home stays, will be made for them.

Mr Mah said: "The benefit of the scheme really is, you stay where you are and you get a rental income. My instruction to HDB is to make sure that as many eligible elderly households as possible are familiar with the scheme."

So HDB will organise exhibitions at 11 towns with a high elderly population.

Officers will also go door-to-door to invite the elderly to the exhibitions.

To be eligible, home owners must be aged 62 and above, enjoyed only one housing subsidy, and almost paid off their home loan.

The scheme is not open to those living in four-room or larger flats.

Mr Mah said this is because they have the option of downgrading to unlock the value of their homes, and get cash. But he said HDB may consider extending the scheme to them, if there is sufficient demand.

Source: Channel News Asia, 1 Mar 2009

Time to license all estate agents

I refer to the article, 'License all agents, say experts' (Feb 8).

I have been a licensed property agent since 1992, and am a member of the Institute of Estate Agents (IEA) and operate my own agency. I fully support the move to license all estate agents.

Licensed property agents and IEA members have to adhere to proper conduct and abide by a code of ethics, failing which we will be penalised or even have our licences revoked.

Unlicensed property agents, on the other hand, can easily get away with unethical practices; they can simply quit their agencies and join other agencies.

The time is right for this issue to be looked into - for the good of the industry and the public.

Conee Wuan (Ms)

Source: Straits Times, 1 Mar 2009

Property market starting to stir

Success of two new launches encourages a few developers to release their projects

Thanks to the mini-buzz created by two new successful launches - Caspian in Jurong and Alexis @ Alexandra - a few developers have decided to release their projects for sale.

It is an improvement, even if it is just a slight one, from the very sombre mood a month ago, when market watchers were expecting the lull in the market to continue.

Over the weekend, TG Development launched 30 units of the freehold, 102-unit St Patrick's Residences in St Patrick's Road in the East.

On average, prices start at around $675 per sq ft (psf) for a two-bedroom unit and rise to about $900 psf for a four-bedroom penthouse.

Unit sizes range from 1,152 sq ft for the two-bedroom units to 3,423sqft for the four-bedroom penthouses. Some three-bedroom units can cost just under $1 million.

The interest absorption scheme, which allows buyers - if they take a loan from the start - to defer making any payments beyond the initial down payment until the project is completed, is offered at a 3 per cent premium.

Marketing agent Savills said the condominium offers quality furnishings and fittings usually associated with prime projects, and that a few units have been sold since the preview a week ago.

Near Upper Bukit Timah, Hiap Hoe has launched The Beverly, its 118-unit condo in Toh Tuck Road.

Each unit is served by a private lift. Prices start at $648 psf; the average price is $750 psf. This means that the total price per unit should start from just below $1 million.

Unit sizes range from 1,120 sq ft for the two-bedders to 4,187 sq ft for the four-bedders. There are also double-storey penthouses from 2,099 sq ft to 3,757 sq ft. Hiap Hoe is not offering the interest absorption scheme.

Other projects expected this month include Double Bay Residences in Simei, The Arte in Thomson, Domus in Irrawaddy Road and an 18-storey project in River Valley.

These are in the mass- to mid-market categories that, unlike the high-end segment, are still attracting buyers.

New home sales in January had plunged to a new low as developers and buyers kept to the sidelines.

The two new projects that sold very well about two to three weeks ago - Caspian and Alexis - helped revive the market mood to a certain extent.

The Caspian showflat was packed during the preview, when 300 out of 712 units were sold at average prices starting from $580 psf. So far, more than 500 units have been sold.

The 293 Alexis units were all sold at $950 psf to $1,250 psf, but the absolute prices were reasonable, given that most units are small.

At a results briefing last Thursday, City Developments' Kwek Leng Joo cited the good take-up at the two projects as proof that there is still demand.

'The good response to recent launches is true,' he said.

Still, the stock market and buying sentiment remain weak.

Ms Phylicia Ang, director of Savills Residential, said: 'The affordability threshold is key at this point.
In the current market, it is important to price projects at an attractive level to attract buyers.'

The UOL group should start selling the 646-unit Double Bay Residences near the Simei MRT station soon. It declined to give pricing details of the 99-year leasehold condo until the launch, but there is talk that prices will be around $650 psf to $680 psf.

The one-bedders start at 538 sq ft, the two-bedroom units from 915sq ft, while the big units can go up to 3,703 sq ft.

Along Thomson Road, The Arte is expected to be released for preview sale by the middle of the month.

Property agents have advertised the preview of the 336-unit, freehold condo at prices starting at more than $950 psf.

About half of the project, or 164 units, are three-bedroom units from 1,399 sq ft to 1,625 sq ft. Another 100 units are 1,873 sq ft four-bedders.

There are also advertisements for the preview of the 18-storey, 67-unit project in River Valley, which offers the interest absorption scheme. It has mostly small units - 32 are 635 sq ft apartments and 30 are 1,044 sq ft units.

A Chinese developer, Lakeview Developments, may also push out its 104-unit Domus this month.

High-end launches will likely be few and far between this year, as current demand is coming only from owner-occupiers or very small investors, according to a developer.

There should be more mass- to mid-market projects coming up in the next few months. These could include projects like the 99-year leasehold Ascentia Sky next to the Redhill MRT station. It offers two- to four-bedroom units from approximately 1,000 sq ft to 1,800 sq ft.

Source: Straits Times, 1 Mar 2009

'Flippers' back at condo launches

Speculators were among buyers at the recent sell-out sale of all 293 units at Alexis @ Alexandra, a newly launched condominium.

Another project, Caspian, in Jurong, sold around 515 of its 712 units at about the same time.

'For sale' ads followed both launches last month - but sub-sale buyers are not rushing in.

Yesterday, there was no huge crowd, but a steady stream of more than 300 people turned up at the launch of developer Hiap Hoe's The Beverly in Toh Tuck Road.

Its spokesman did not say how sales went for the 31 apartments that were released in the 118-unit development at an average of $750 per sq ft.

Property agents reported signs of attempted 'flipping' - quick profit sales from having bought at the developer's price - but they also said few sub-sale buyers were biting.

They noted that in the case of Alexis and Caspian, shortly after they were launched, ads for subsales began to appear.

An agent who declined to be named said about 10 per cent of Alexis' 293 units were being flipped.
Property agents cited the relatively low pricing as reasons for buyers wanting to do a flip. Prices for Caspian apartments started at $580 psf, while those at Alexis @ Alexandra were priced on average at $850 to $1,100 psf.

In addition, property agent K.L. Goh, who is marketing two sub-sale units at Alexis, said: 'Although the market is bad, Alexis is located near Queenstown MRT station and is highly sought after.'

The owners of a two-bedroom apartment are asking for $880,000, up from the $760,000 they paid for it.

Property agent Leslie Yap, who is helping a buyer market a two-bedroom apartment at Caspian for about $580,000, said: 'She bought it at $527,400 and even if she can make a little profit, I think it's quite good in such a short time.'

Meanwhile, agents said the response from sub-sale buyers was still rather cautious. Mr Yap said last Friday that he had received only one call that day for the Caspian unit.

'Even though this is a very popular project, the response is still very bad and it may be difficult for buyers to make a profit right now,' he said.

Mr John Murray, 41, who works in IT company EMC, was at the launch of The Beverly.

He said: 'I've noticed that the prices are down from when I went house-hunting five or six months ago. This is actually a great time to buy.'

But he did not buy a unit yesterday.

Source: Straits Times, 1 Mar 2009