Sengkang EC's penthouse units snapped up in 90 minutes

All the penthouse units were snapped up on its first morning of bookings. -ST

SINGAPORE - ALL the penthouse units at an executive condominium (EC) in Sengkang were snapped up on its first morning of bookings on Friday, in another sign of strong demand for EC projects.

The 16 penthouse units at The Topiary were sold within the first 90 minutes, said Kheng Leong, which is developing the project in a joint venture with Qingjian.
The single-storey units went for prices of between $1.3 million and $1.5 million, and are between 1,970 sq ft and 2,476 sq ft.

When The Straits Times visited the showflat at Fernvale Lane on Friday, the room was packed and the snaking queue for bookings reached outside the building.

Ms Jaime Chong, who bought a penthouse on Friday, said she reached the showflat at 9.30am, more than half an hour before balloting began shortly after 10am.
The 33-year-old account manager told The Straits Times that she had shortlisted six penthouse units at The Topiary and managed to secure the last one on her list that was available - a 2,013 sq ft unit that cost nearly $1.36 million.

"We have three kids, so we need to upgrade," said Ms Chong, whose children are aged between one and five.

She lives with her 33-year-old project manager husband and their children in a four-room HDB flat near Buangkok MRT station. The extra space in the penthouse would make it easier for relatives to visit, Ms Chong said.

She added that she was drawn to the EC's amenities such as a swimming pool, as well as its proximity to Greenwich V shopping mall and the upcoming The Seletar Mall, slated for completion in 2014.

The Topiary has 700 units with a mix of two-, three- and four-bedders, as well as dual-key apartments. The smallest unit is 753 sq ft and the cheapest is a $580,000 two-bedder.
Kheng Leong said in a statement on Friday that 225 units were sold in four hours.

It told The Straits Times earlier this week that just over 600 applications had been received during the five-day application period, which closed on Tuesday.

Penthouses, skysuites and other luxe features have become increasingly common at EC projects, as developers pull out all the stops to attract buyers.

For instance, the 514-unit CityLife @ Tampines, which boasts a controversial 4,349 sq ft "presidential penthouse", was more than three times subscribed with over 1,700 applications received by the deadline on Wednesday.

The next EC project expected to be pushed out before the end of the year is Forestville in Woodlands.

melissat@sph.com.sg

Melissa Tan

Mon, Dec 10, 2012
The Straits Times

Source: AsiaOne

Release of 3rd Quarter 2012 Real Estate Statistics

Release of 3rd Quarter 2012 Real Estate Statistics

PRIVATE RESIDENTIAL PROPERTIES (Source URA)

Prices of private residential properties increased by 0.6% in 3rd Quarter 2012, compared to the 0.4% increase in the previous quarter.

Prices of non-landed properties in Core Central Region (CCR)1  increased by 0.1% in 3rd Quarter 2012, compared to the increase of 0.6% in the previous quarter. Prices in Rest of Central Region (RCR) increased by 0.8%, compared to the 0.4% increase in the previous quarter. For Outside Central Region (OCR), prices increased by 1.0% in 3rd Quarter 2012, compared to the increase of 0.5% in the previous quarter

HDB resale market improving: Khaw

A resale flat in Queenstown became the first such flat to cross the $1 million mark. -ST

SINGAPORE - National Development Minister Khaw Boon Wan said in Parliament last Wednesday that the overheated housing market is cooling, but it still has some way to go.

The HDB resale market has shown signs of stabilising, with the pace of the rise in prices slowing since 2010, he said in response to a question from Ms Lee Bee Wah (Nee Soon GRC) on whether the record Resale Price Index (RPI) was a cause for concern.

Mr Khaw said that growth in the RPI has come down from 14.1 per cent in 2010, to 10.7 per cent last year, and to 3.9 per cent for the first three quarters of this year.

However, the index rose a further 2 per cent from the second to the third quarter and hit a record high.

A resale flat in Queenstown also became the first such flat to cross the $1 million mark.

Mr Khaw said the continued rise showed that "while things are improving, we still have some way to go".

The Government last month surprised many by introducing a further round of cooling measures, including a 35-year loan limit.

It then announced that it would roll out another 6,400 Build-To-Order flats this month in Bedok, Choa Chu Kang, Queenstown, Sengkang and Toa Payoh, bringing its crop of new flats this year to 27,000.

But the effects of these will take time.

"We have implemented a number of measures, but they will take some time to work their way through the market. For example, the global low interest rate will take some time to return to its normal rate and the huge supply of new housing units will only be available over the next two, three years.

Robin Chan

Sat, Nov 17, 2012
The Straits Times

Source: AsiaOne

Heron Bay penthouse sold for record $1.774m

It surpasses last week's transaction for most expensive EC to date. -BT

A NEW record price of $1.774 million has been set for a five-bedroom penthouse unit in the recently launched Heron Bay executive condominium (EC), surpassing last week's transaction for the most expensive EC to date.

Last week, a double-storey penthouse at 1 Canberra in Yishun was sold for $1.61 million, setting a record for EC transactions.

To be sure, the higher prices are largely due to the size of some of these new ECs, analysts said. The price for the Heron Bay penthouse unit, which stands at 2,845 sq ft, was $624 per square foot (psf). The unit price for the 2,716-sq-ft 1 Canberra unit was $595 psf.

Before the 1 Canberra unit made headlines, a 2,476-sq-ft unit at The Rainforest in Choa Chu Kang was the most expensive EC with a price tag of $1.58 million, which translated to $637 psf.

Alan Cheong, Savills' director for research, said that though the record prices continue to be surprising, this suggests that Singaporeans are not facing much difficulty in meeting the prices for such properties.

"In an environment with low interest rates and a system flush with liquidity, magic does occur," he added.

Savills said in a report published last week that over 300 new ECs had been transacted above $1 million thus far, half of which were sold in the first eight months of this year.

The report attributed the increase in demand for ECs to a growing number of young, affluent buyers who seem to be snagging bigger and more luxurious penthouses or sky suites.

The rising trend for such luxurious buys, it said, could have been triggered by rock-bottom interest rates, rising incomes and many EC buyers escaping unscathed from the latest rounds of property curbs.

Furthermore, the growing number of resale Housing & Development Board (HDB) flats being sold at ever higher prices has deepened the pockets of many HDB upgraders who now have more to spend on their next property, which invariably would be an EC.

But ERA Realty key executive officer Eugene Lim said these skyrocketing prices do not reflect overall pricing for ECs on the whole.

"These type of transactions are not common. It is a one-off for big units, which is why there is a premium pricing to it," he said.

The smallest unit at Heron Bay, a 775-sq-ft two-bedroom unit, sold for about $553,000 or $713 psf.

In its opening weekend of sales which started on Oct 26, more than 90 per cent of units were snapped up, reflecting the healthy demand for ECs. The average selling price was $725 psf.

Earlier this year, Heron Bay also set a record for the number of applications it received relative to subscription rates for an EC over the past few years. There were 1,664 applications for its 394 units, which translated to approximately 4.2 applicants for each unit.

"EC home-buyers today are more sophisticated as they expect better quality and service and at affordable prices, and this is where Heron Bay addressed their needs. Otherwise, it would have been another cookie-cutter, utilitarian EC project," said Leslie Lim, managing partner of EVIA Real Estate Management Pte Ltd, one of the developers of Heron Bay.

Other developers in the consortium are Ho Lee Group, See Hup Seng and CNH Investment.

Construction for Heron Bay is due to be completed in 2016.

Zeinab Yusuf Saiwalla

Fri, Nov 02, 2012
The Business Times

Source: AsiaOne

S'pore Q3 private home prices up 0.6%

The URA's final estimate of a 0.6 per cent quarter-on-quarter rise in private home prices is higher than the flash estimate of 0.5 per cent released earlier this month. 

SINGAPORE - Singapore's Urban Redevelopment Authority (URA) released detailed private home price data for the third quarter of 2012 on Monday. The URA's final estimate of a 0.6 per cent quarter-on-quarter rise in private home prices is higher than the flash estimate of 0.5 per cent released earlier this month. Prices of non-landed properties in the core central region rose 0.1 per cent in the third quarter, compared with the rise of 0.6 per cent in the previous quarter. Prices of non-landed properties outside the central region rose 1 per cent in the third quarter, compared with a rise of 0.5 per cent in the second quarter. Rents for private residential properties rose 0.9 per cent in the third quarter compared with a rise of 0.3 per cent in the previous quarter. Prices of multiple-user factory space rose 10.1 per cent in the third quarter, compared with the rise of 8.3 per cent in the previous quarter. The URA flash estimate released earlier this month was based on caveats lodged during the first 10 weeks of the quarter supplemented by information on the number of new units sold by developers. Private home sales surged 83.7 per cent in September from August to the highest level in over three years, despite a series of government measures to cool the property market. Singapore earlier this month introduced new measures to cool its housing market. The steps include setting a maximum tenure of 35 years for all new residential property loans, with loans exceeding 30 years facing significantly tighter loan-to-value limits.

Mon, Oct 29, 2012 Reuters Source: AsiaOne website

Singapore takes new steps to cool housing market

SINGAPORE: The Monetary Authority of Singapore (MAS) will restrict the tenure of loans granted by financial institutions for the purchase of residential properties, effective from 6 October. 

MAS' move is part of the government's broader aim of avoiding a price bubble and fostering long-term stability in the property market. 

The new rules impose an absolute limit of 35 years on the tenure of all loans for residential property. This will apply to loans to both individual and non-individual borrowers, as well as refinancing loans.

In addition, loans exceeding 30 years' tenure will face significantly tighter loan-to-value (LTV) limits.

Furthermore, MAS will lower the LTV ratio for new residential property loans to borrowers who are individuals, if the tenure exceeds 30 years or the loan period extends beyond the retirement age of 65 years.

For these loans, the LTV limit will be: 40% for a borrower with one or more outstanding residential property loans; and 60% for a borrower with no outstanding residential property loan.

The new rules will apply to both private properties and HDB flats.

"Over the last three years, the average tenure for new residential property loans has increased from 25 to 29 years. More than 45 percent of new residential property loans granted by financial institutions have tenures exceeding 30 years," MAS said.

"The new rules aim to curb continued upward pressure on residential property prices, driven by low interest rates and rapid credit growth," the central bank added.

Previous rounds of measures have had a moderating effect on residential property prices. There is also significant supply of housing that will come onto the market over the next two years.

However, prices in both the HDB resale market and private residential property have continued to rise in Q2 and Q3 of 2012.

Private home prices rose 0.5 percent in the third quarter from the April-June quarter, when prices increased by 0.4 percent, while HDB resale prices gained 2.0 percent quarter-on-quarter following an increase of 1.3 percent in April-June.

MAS will also lower the LTV ratio for residential property loans to non-individual borrowers from 50 percent to 40 percent.

For re-financing facilities, the rules will apply where the application date of such facilities is on or after 6 October.

The outstanding loan may be either a loan from HDB or a financial institution regulated by MAS.

Deputy Prime Minister and Chairman of MAS, Mr Tharman Shanmugaratnam, said: "Monetary conditions worldwide are far from normal. QE3 and low interest rates have made credit easy, but this will eventually change. We are taking this step now to require more prudent lending, and will continue to watch the property market carefully. We will do what it takes to cool the market, and avoid a bubble that will eventually hurt borrowers and destabilise our financial system."

QE or quantitative easing is an unconventional monetary policy used by central banks to stimulate the national economy when conventional monetary policy has become ineffective.

Analysts do not expect the government's latest measures to have a major impact.

HSR special advisor, Donald Han, said: "The buying would continue despite the recent measures because of liquidity and because of low interest rate environment. I think buyers are still active. I don't expect too much of a dent in the total volume sales. In terms of actual impact, I think ABSD (Additional Buyer's Stamp Duty) had a more earthquake-like (impact). These (latest measures) are more like a tremor."

The Real Estate Developers Association of Singapore (REDAS) also does not expect a significant impact from the latest measures, because few buyers have undertaken long tenure loans.

Amongst the local banks, OCBC says it will reduce its maximum home loan tenure from 40 years to 35 years with immediate effect.

DBS says the bulk of its home loans have repayment periods below 35 years.

UOB, which offers loan tenures of up to 50 years, declined comment.

- CNA/ir 


Source: Channel News Asia 05 Oct 2012

SINGAPORE: Resale prices of private non-landed homes rose strongly by 3.2 per cent in the third quarter, according to flash estimates put out by the Singapore Real Estate Exchange (SRX).

SRX compiles data from 11 top property agencies in Singapore.

It said non-landed private resale home prices hit a historic high of S$1,156 per square foot in Q3.

This gain is led by a 2.5 per cent on-month increase in prices in September.

SRX added that the 3.2 per cent jump in prices for non-landed resale private homes was a contrast to the 2.2 per cent decline in prices of new units over the same period.

Resale units located in the city fringe saw the strongest price gain of 7.1 per cent during the quarter.

Meanwhile, prices of resale non-landed private homes were up 3 per cent in the mass market segment and 0.75 per cent in the core central region.

SRX said rental yields remained stable at 4 per cent in Q3.

SRX's figure of a 3.2 per cent price increase in Q3 is higher than the 0.5 per cent gain in private residential property prices as reported by the Urban Redevelopment Authority earlier this week.

SRX said that is because its data does not take into account new home sales and it includes transactions done in the last three weeks of September.

On the HDB resale market, SRX said overall median cash-over-valuation rose for the first time this year to S$30,000, reversing a downward trend in the last three quarters.

This has contributed to a 2.3 per cent increase in median prices for HDB resale units in Q3.

Its report also showed that the highest median price is in Serangoon for executive flats at S$690,000 across all HDB towns with at least 10 resale transactions in Q3.

Median monthly HDB rent rose for the first time in four quarters from S$2,300 to S$2,400 between July and September this year.

- CNA/cc 

Source: Channel News Asia (

Resale prices of private non-landed homes up 3.2%

SINGAPORE: Resale prices of private non-landed homes rose strongly by 3.2 per cent in the third quarter, according to flash estimates put out by the Singapore Real Estate Exchange (SRX). 

SRX compiles data from 11 top property agencies in Singapore. 

It said non-landed private resale home prices hit a historic high of S$1,156 per square foot in Q3.

This gain is led by a 2.5 per cent on-month increase in prices in September.

SRX added that the 3.2 per cent jump in prices for non-landed resale private homes was a contrast to the 2.2 per cent decline in prices of new units over the same period.

Resale units located in the city fringe saw the strongest price gain of 7.1 per cent during the quarter.

Meanwhile, prices of resale non-landed private homes were up 3 per cent in the mass market segment and 0.75 per cent in the core central region.

SRX said rental yields remained stable at 4 per cent in Q3.

SRX's figure of a 3.2 per cent price increase in Q3 is higher than the 0.5 per cent gain in private residential property prices as reported by the Urban Redevelopment Authority earlier this week.

SRX said that is because its data does not take into account new home sales and it includes transactions done in the last three weeks of September.

On the HDB resale market, SRX said overall median cash-over-valuation rose for the first time this year to S$30,000, reversing a downward trend in the last three quarters.

This has contributed to a 2.3 per cent increase in median prices for HDB resale units in Q3.

Its report also showed that the highest median price is in Serangoon for executive flats at S$690,000 across all HDB towns with at least 10 resale transactions in Q3.

Median monthly HDB rent rose for the first time in four quarters from S$2,300 to S$2,400 between July and September this year.

- CNA/cc 

Source: Channel News Asia 05 Oct 2012

Q3 HDB resale prices hit surprise high

Prices had earlier risen by 0.6 per cent in the first quarter, then by 1.3 per cent the following quarter. -myp  Property insiders yesterday expressed surprise as resale prices of public- housing units hit a record high this year, even as the Housing Board (HDB) ramps up the supply of new flats. Government flash estimates released yesterday revealed that resale prices increased by 2 per cent in the third quarter of the year - the sharpest increase so far this year. Prices had earlier risen by 0.6 per cent in the first quarter, then by 1.3 per cent the following quarter. The third quarter of last year also brought in the highest price increment for the year with an increase of 3.8 per cent. PropNex chief executive Mohamed Ismail said: "This is somewhat unexpected...with the onset of a greater supply of Build-To-Order flats since 2011, and the moderation of resale prices in the first two quarters of this year." Last week, HDB announced that the total supply of BTO flats this year will hit a record 27,000 units, up by 2,000 units from the 25,000 planned originally. Reasons for the price spike cited by Mr Ismail and other experts include a relatively strong demand for public housing; sellers holding firm to their asking prices; and the decrease in the number of resale flats available because of the five-year minimum-occupation period. Mr Lee Sze Teck, senior manager of Dennis Wee Group, said that resale prices could be capped at "not more than 2 per cent increase" in the fourth quarter of the year. "We expect activity in the HDB resale market to take a breather because there may be a stand-off between buyers and sellers," he explained, saying that this could be attributed to recent record-breaking deals. Meanwhile, private-property prices also inched upwards to a new record in the third quarter of the year, according to preliminary data released by the Urban Redevelopment Authority in a separate statement. Overall, prices rose by 0.5 per cent, compared to 0.4 per cent in the previous quarter. Mr Png Poh Soon, head of research at Knight Frank Singapore, attributed this to the "changing buyers' profile" where home buyers comprise owner-occupiers and younger investors. They tend to be undeterred from entering the market during the Hungry Ghost Month - typically a lull period for both property developers and buyers. He added: "These buyers, who are more concerned about budget and investment potential, focused on getting the best- value buys." vbarker@sph.com.sg Get my paper for more stories.

Victoria Barker Tue, Oct 02, 2012 my paper Source: AsiaOne

Singapore's Q3 private home prices rise 0.5%

Prices of non-landed private residential properties rose 0.2% in the core central region. -Reuters 

SINGAPORE - Prices for private residential homes rose 0.5 per cent in the third quarter this year, according to flash estimates by The Urban Redevelopment Authority (URA).
Prices of non-landed private residential properties rose 0.2 per cent in the core central region.
Prices in the rest of the central region rose 0.7 per cent, while home prices outside the central region rose 1.0 per cent.
The Housing Board said separately that resale prices of flats rose 2.0 per cent in the third quarter from the previous three-month period.
URA will release detailed data towards the end of the month.
Singapore private home sales dropped 27 per cent in August from July to the lowest level in two months.
The drop was partly due to the Chinese Hungry Ghost Month which typically sees fewer buyers.

Mon, Oct 01, 2012
Reuters

Source: AsiaOne

New flats in old estates bring cheer

Seven new BTO projects were launched, with over 2,000 units in mature estates like Ang Mo Kio and Tampines. -myp 

When Ms Daphnie Chong, 28, and her longtime boyfriend applied for a Build-To-Order (BTO) flat in Pasir Ris earlier this year, they were in for a surprise.
It was their first time applying for a flat and they got lucky: They will get the keys to their four-room flat at the end of 2014.

Layout ideas for new flats at Teck Ghee Parkview Click on thumbnail to view

The first-time buyers had not had their hopes up, having heard stories from peers about repeated unsuccessful applications.

Ms Chong, who works as an events coordinator, told my paper: "We didn't expect it. It's good that we got it now, because prices next year may go up."

Shorter queues for units have been a boon for young couples such as Ms Chong and her boyfriend, as a result of the Government's ramp-up in BTO projects for this year and next year. 
But rising prices are still a source of worry for many.

Yesterday, the Housing Board (HDB) announced that the total supply of BTO flats will hit 27,000 units for this year, up from the 25,000 planned originally.

Seven new BTO projects offering 3,727 flats were also launched yesterday. Among them are 2,424 units in mature estates, such as Ang Mo Kio and Tampines.
First-time buyers are set to benefit most, with 95 per cent of the BTO flats, excluding studio apartments, reserved for them in these mature towns.

HDB also said it will offer 3,328 balance flats in 11 non-mature and 12 mature towns. At least 95 per cent of this supply, excluding studio apartments, will be set aside for first-time buyers.

Yesterday's HDB announcement comes hot on the heels of Prime Minister Lee Hsien Loong's reiteration of the Government's stance on public housing made earlier this week.

Responding to questions submitted to Singapolitics.sg - The Straits Times' current-affairs website - Mr Lee said that the Government's purpose is to build enough flats for Singaporeans and to offer more affordable housing for first-time buyers.

Mr Lee also addressed concerns of rising prices and questions about whether HDB flats should be treated as assets.

He said he preferred giving young people a housing asset as an "endowment" - something to help them start off with "the right chips".


First-time home buyers whom my paper spoke to raised concerns about the rising prices of public housing.

Said manager May Chen, 26, who bought a four-room flat in Hougang last July: "I'm glad I applied for my flat when I did.
"I bought it for below $300,000; it was a low-floor flat. Now you can't even find a similar one at such a price."

Ms Koh Yi Wen, 25, who is a student at the Duke-NUS Graduate Medical School, said the five-room BTO flat she bought with her boyfriend in Clementi was "very expensive".

She said: "I had to pay a stamp fee of $15,000. It was an amount my boyfriend and I did not prepare for."

The stamp fee is calculated based on the selling price or market value of the property, whichever is higher.

Ms Koh said that, while owning an HDB flat offers stability, prices are increasing and having to service a bigger loan may be difficult for some.

HDB said that the next BTO launch will be in November, when it will offer 6,400 units in Queenstown, Bedok, Toa Payoh, Sengkang and Chua Chu Kang.

Mr Benny Ng and Ms Chan Li Ping, both 32, who bought a resale flat in 2008, said the Government is moving in the right direction in ramping up the supply of BTO flats.
"I think the problem was quite severe in the past, when my colleagues had to hold off on their marriage because they couldn't get a BTO unit," said Mr Ng, who runs a bag-making business.

adrianl@sph.com.sg 

Additional reporting by Chan Choong Han

Fri, Sep 28, 2012
Adrian Lim, my paper

Source: AsiaOne 

New HDB flat supply increased to 27,000 units

This brings the total flat supply in 2012 to 27,000 units, including the 6,400 flats to be launched in Nov. This is 2,000 units more than the 25,000 units originally planned for this year. -AsiaOne 

SINGAPORE - HDB today launched 7,055 flats for sale under the joint Build-to-Order (BTO) and Sale of Balance Flats (SBF) Exercises in both non-mature and mature towns.
This brings the total flat supply in 2012 to 27,000 units, including the 6,400 flats to be launched in Nov. This is 2,000 units more than the 25,000 units originally planned for the year.
HDB said in a statement that the increase in HDB flat supply will help to meet the housing demand, especially those from first-time home buyers.
It also advised applicants to apply for a BTO flat in the non-mature towns/estates for a higher chance in securing a unit as demand for flats in mature estates is expected to be high,
Of the new flats offered in the seven BTO projects, 3,727 units are located in Choa Chu Kang, Woodlands, Ang Mo Kio, Kallang Whampoa and Tampines.
First-timers will enjoy priority flat allocation with at least 95% and 85% of the BTO flat supply (excluding Studio Apartments) set aside for them in mature towns and non-mature towns respectively.
In addition to the BTO Launch, HDB will offer another 3,328 balance flats in 11 non-mature and 13 mature towns/estates under the SBF Exercise.
These flats comprise 818 studio apartments, 697 2-room flats, 302 3-room flats, 1,016 4-room flats, 471 5-room flats and 24 Executive flats. At least 95% of the flat supply (excluding Studio Apartments) will be set aside for first-timers.
Another 6,400 BTO flats in Queenstown, Bedok, Toa Payoh, Seng Kang and Choa Chu Kang will be launched November 2012.

paullim@sph.com.sg

Source: AsiaOne (Thu, Sep 27, 2012)

CPF REVISED HOUSING REFUND POLICY

For full article:  http://mycpf.cpf.gov.sg/CPF/News/News-Release/N_10Sept2012_MF2.htm

	New Housing Refund Policy
	To ensure that the distribution of proceeds from the sale of property reflects the amount of CPF savings used by each co-owner, refinements will be made to the current housing refund policy for transactions where the legal completion is on or after 1 January 2013.
	Specifically, we will require all members to refund the P+I into their CPF when they sell their property, regardless of their age. This means that for members below age 55, there is no change in the housing refund policy. However, for members aged 55 and above, the full P+I refund will now also be made (instead of just the MSD), with the refund used to set aside the Minimum Sum that is applicable to them in their RA and the required amount in their Medisave Account (MA). Any remaining housing refunds will be automatically disbursed to the member in cash. This is consistent with the existing requirement that applies to all members past age 55 when they apply to withdraw their OA and SA savings in excess of the MS. This refinement will ensure that housing proceeds received from the sale of the property are distributed in a manner that is proportional to or reflects the amount that each co-owner had contributed towards the property, while at the same time not require older members to retain in their CPF more refunds than are necessary. The example below illustrates the difference between the current policy and the revised policy that will take effect on 1 Jan 2013. Example:Mr and Mrs Tan are co-owners of a 3-room HDB flat and they have contributed equal amounts of CPF savings to pay for the flat. They are selling their HDB flat for $300,000 and have an outstanding housing loan of $120,000.                                     Mr Tan, 56 years old P+I = $80,000 MSD = $20,000 Mrs Tan, 54 years old P+I = $80,000 Existing housing refund rule Required refund for: 1) members > 55: MSD or     P+I, whichever is lower 2) members < 55: P+I Required CPF Refund = $20,000 Required CPF Refund = $80,000 Computation of cash proceeds: Selling price: $300,000 Less outstanding housing loan: $120,000 Less total CPF refund: $100,000 Cash proceeds left: $80,000 Assuming Mr and Mrs Tan split the remainder cash proceeds in a way that ensures each of them receives a total amount (in CPF and cash) that is commensurate with what they had contributed, Mr Tan and Mrs Tan will receive $70,000 and $10,000 in cash respectively. They will each receive a total amount of $90,000 (in CPF and cash). Mr Tan: $20,000 (CPF) + $70,000 (cash) = $90,000 Mrs Tan: $80,000 (CPF) + $10,000 (cash) = $90,000 However, assuming Mr and Mrs Tan be unable to agree on the above outcome, and they end up splitting the cash proceeds equally among themselves, each member will receive $40,000.  The total CPF and cash received by each will be unequal. Mr Tan: $20,000 (CPF) + $40,000 (cash) = $60,000 Mrs Tan: $80,000 (CPF) + $40,000 (cash) = $120,000 New housing refund rule Required refund for members, regardless of age: P+I Required CPF Refund = $80,000 Required CPF Refund = $80,000 Computation of cash proceeds: Selling price: $300,000 Less outstanding housing loan: $120,000 Less total CPF refund: $160,000 Cash proceeds left: $20,000 Assuming Mr Tan and Mrs Tan split the cash proceeds equally among themselves, each member will receive $10,000. Mr Tan: $80,000 (CPF) + $10,000 (cash) = $90,000 Mrs Tan: $80,000 (CPF) + $10,000 (cash) = $90,000 For Mr Tan, the CPF refund of $80,000 will be credited into his CPF account and used to make up his MSD and Medisave Required Amount. Thereafter, the excess housing refunds will be automatically disbursed to him. Public Enquiries For more information, please visit www.cpf.gov.sg or call the CPF Call Centre at 1800-227-1188.

Source: CPF (Media Factsheet Central Provident Fund Board 10 September 2012--)

Singaporeans should not be traumatised over $1m flat price :Khaw

Minister Khaw said that there will always be ideal units that will fetch high prices but the more important thing is keeping prices for most units affordable. 

SINGAPORE - Speaking at dialogue with Sembawang grassroots leaders yesterday, National Development Minister Khaw Boon Wan urged Singaporeans not to be traumatised over rumours of a flat being sold for $1 million.
Minister Khaw said that there will always be ideal units with fantastic views that will fetch high prices, as in the case of the executive maisonette in Queenstown.
Its sale is still in the works with the price rumoured to hit $1 million including a cash-over-valuation (COV) of $195,000.


Pointing out that the larger picture is more important, Mr Khaw said that in the last few months the Government managed to keep prices for most units affordable with the pricing of the new Build-to-Order (BTO) flats.
At the same time, Minister Khaw noted that the record resale price is indicative of the fact that public housing can provide very good living conditions, reported The Straits Times.

dassa@sph.com.sg

Source: AsiaOne Sun, Sep 09, 2012

Resale prices and rentals rise across the board

Both public and private housing segments fared well in August, with private resale prices up 4.5 per cent and 1.8 per cent for HDB flats. 

The property market has seen an increase in the prices of resale homes and rental rates, the Singapore Real Estate Exchange said yesterday.


Both public and private housing segments fared well in August, with private resale prices up 4.5 per cent from July and 1.8 per cent for HDB flats.
The average price of resale housing in the private market was up 1.2 per cent from Q2 to $1,134 per sq ft (psf).


Rental rates for condominium units increased by 2.4 per cent as well.
The median price of HDB homes also rose by 1.8 per cent to $448,000, which is a new high for the segment. Rental rates for HDB flats rose 4.3 per cent from $2,300 to a $2,400 average.

In a Straits Times article, analysts were quoted as saying that buyers have become more interested in the resale market as they are looking for alternatives to the high prices set by recent developer launches. New launches were also credited for raising the prices of resale homes around them. A number of resale flats have made headlines recently for the high prices they commanded, including a $980,000 maisonette in Bishan and a $1 million flat in Queenstown. ljessica@sph.com.sg

Source: AsiaOne Sat, Sep 08, 2012

Shoebox homes might make bad investment idea

Shoebox units in suburban places might not yield rental rates which are as high, analysts say. 

Shoebox homes might not be the best place to invest your money, Maybank Kim Eng has suggested in a recent report on real estate in Singapore.

The research arm of the bank has done an analysis on shoebox units, and found that the largest number of such units have been sold in the Balestier, MacPherson and Geylang areas.


While shoebox apartments may fare well in the rental market for urban centres, those in suburban places might not yield rental rates which are as high, analysts say.
In their report, Maybank Kim Eng questioned the viability of suburban shoebox units, which they say developers are "rushing to price at $1,500 to $2,000 per sq ft".
Minister for National Development Mr Khaw Boon Wan has warned on numerous occasions that the shoebox market for suburban areas remains untested and risky.
Echoing this sentiment, the Urban Redevelopment Authority (URA) said recently that it would intervene in the number of units developed in suburban estates.
From November 4, new guidelines to curb the development of shoebox units outside the central area will take effect. A total of 11,000 shoebox units are expected to be developed by 2015, with about 3,800 of them built outside the city centre.
Excessive development of shoebox units could also result in a strain on infrastructure, the URA said.

ljessica@sph.com.sg

Source: AsiaOne Sat, Sep 08, 2012

Bishan flat smashes record with $980,000 sale

This year alone, five HDB flats were sold for $900,000. There have been a total of seven such sales overall. 

An executive maisonette has been sold for a record $980,000 on the first day of its open house.

The sale smashed a previous record of $910,000 for the most expensive HDB flat sold in Singapore set by the sale of an executive flat in Toa Payoh in May.
The Bishan flat's new owners paid a $200,000 cash over valuation (COV), which is believed to be the highest COV ever paid for a flat.
The 1,800 sq ft flat is located on the 19th floor in Bishan Street 13 and is 25 years old. It also comes with a 150 sq ft roof terrace.
Schools, amenities, Bishan MRT station and the bus interchange are located nearby.


Dennis Wee Group property agent Thomas Hee told The Straits Times that there are only 48 maisonette units with open terrace roofs in Singapore.
The sale is undergoing processing and will be finalised in two months.
At about $550 per sq ft, the flat is about half the price of a similar condominium unit in the area.
According to ST, a condominium unit of the same size in Bishan would fetch $1,300 psf.
Analysts the paper spoke to also indicated that the rare sale was unlikely to affect resale flat prices or COV rates.
This year alone, five HDB flats were sold for $900,000. There have been a total of seven such sales overall.
ST also reported that an executive maisonette in Queenstown might soon be sold for $1 million.
Flats which have sold for $900,000 or more were from Bishan, Queenstown, Kallang and Toa Payoh. These are all mature estates with good access to infrastructure and amenities.
The units are between 1,180 sq ft to 1,850 sq ft in size.
Analysts say that homeowners who choose to pay top prices for premium flats tend to be downgrading from private-property and can afford to pay high COV rates.
An executive maisonette owner recently told The New Paper that he paid $168,000 in COV for his Tampines flat, and it was worth every cent.

ljessica@sph.com.sg

Source: AsiaOne Fri, Sep 07, 2012

Hong Kong to restrict foreign homebuyers from 2013

The move is seen to be targeting mainland buyers who have been blamed for pushing up property prices. -AFP 

HONG KONG - Hong Kong on Thursday announced the first step in a policy aimed to restrict foreigners from buying property, in a move seen to be targeting mainland buyers who have been blamed for pushing up property prices.
Chief executive Leung Chun-ying said only Hong Kong permanent residents will be able to buy flats to be built on two sites that will provide around 1,100 homes next year under a so-called “Hong Kong land for Hong Kong people” policy.
Resale of the residential units will be restricted to locals for 30 years and incorporated companies will also not be allowed to purchase them.
The policy was part of Leung’s election promises to tackle the housing woes in the city of seven million before he was elected into office in March.
“Hong Kong’s land for property is rare and precious resource, when using this land, we must make it a priority to fulfil the housing needs of the Hong Kong permanent residents,” Leung told reporters.
“This plan is the first of its kind because we have never had a policy like this in the past,” Leung said while standing in the construction site where the residential buildings will be built.
The units will be built on two sites of the combined size of 1.6 hectares (3.95 acres) in an area that used to be the site of Hong Kong’s former Kai Tak airport.
The announcement came after Leung unveiled a series of measures last week to cool the red-hot property market, including to provide around 65,000 new units on the market in the next three to four years.
Other measures include boosting land supply by converting 36 sites meant for government and public use to residential property to provide space for nearly 12,000 units.
Property prices in the southern Chinese city, famous for its sky-high rent, have surged over the past few years due to record low interest rates and the flood of wealthy people from mainland China snapping up homes.

Thu, Sep 06, 2012
AFP

Source: AsiaOne

$808,080 HDB sale hits the roof

Homeowner paid $808,080 for his executive maisonette in Tampines, including a $168,080 in COV. Worth every cent, he said. 

Just how much are people willing to pay for an HDB flat?
Mr Freddy Choo paid $808,080 for his executive maisonette in Tampines.
Worth every cent, he said.
The price includes a whopping $168,080 in cash over valuation (COV).
That's among the largest COVs paid since the financial crisis in 2008, said real estate agents.


One of the previous reported highs was about $200,000 for an HUDC flat in Shunfu. It was sold at $1.1 million in July, 2010.
Mr Choo, 46, said he was willing to pay a premium as his new home was renovated just five years ago and came fully-furnished.
The real estate agent had come across the unit, on the eighth storey of Block 146, Tampines Avenue 5, in April.
The 150 sq m flat is two bus stops away from the Tampines MRT station and Tampines Mall.
Mr Choo said it was valued at $640,000.
The median resale price of executive flats in Tampines was $640,000 as of the second quarter of 2012, according to HDB's website.
The father of two said the final amount - $808,080 - was also an auspicious number.
It is the highest price paid for an executive HDB flat in Tampines in the past year, according to HDB's website which shows transacted prices.
Mr Choo is married to another real estate agent, and they have a daughter, nine, and a son, 13.
Mr Choo said his family had previously owned a condominium penthouse in Geylang, which he sold for $1.4 million.
To pay for his new place, Mr Choo has taken out a 24-year loan of $560,000, saying: "You can always earn more money.
"But it's not easy to find a suitable flat which you can call home."
"I searched for a month and looked at six units before I decided on this one."
The block is about 600m away from St Hilda's Secondary which Mr Choo's son attends.
His daughter, Schermaine, attends the nearby St Hilda's Primary School.
She said: "I can walk to school in 10 minutes. There's also a park, shopping mall and playground nearby for me."
Mr Choo's family was also drawn by the extensive renovation to the unit.
He said the previous owner had spent $200,000 and had fittings such as a water feature in the living room, and glass banisters.
And Mr Choo claimed the owners left behind furniture worth $100,000.Some of the furniture they included a custom-made bed, Japanese-style tabletop and a Swarovski crystal chandelier worth $3,000.
They also left electrical appliances like a flat-screen TV, fridge and speakers.
Said Mr Choo: "They were also a Singaporean family who upgraded to a condominium. They initially wanted a COV of $240,000, but I managed to bargain down."


The previous owners could not be contacted as Mr Choo said he does not have their telephone number.
The transaction was approved in May and Mr Choo's family moved in two weeks ago.
He said: "All my friends who have seen my place say it is worth the amount I paid."
Good buy?
Mr Albert Lu, key executive officer of property firm C&H Properties, told TNP: "On the surface, the figure definitely looks like a lot.
"But if what Mr Choo says about the renovation and furnishings is true, it is actually a good buy."
Most flat owners, he said, spend under $100,000 on renovations.
"For someone to spend $200,000, the renovations would have been very 'high-class'."
Mr Mohamed Ismail, chief executive officer of PropNex, agreed.
He said: "In this case, the transaction seems value-for-money, considering the value of the renovation and furnishing the previous owner left behind."
COVs have exceeded $160,000 before, said Mr Ismail. For example, he encountered two such flats - one in Yishun and another in Jurong East - in 1996.
Indeed, it was previously reported that resale prices had hit a high in 1996, with the median COV going as high as $42,000 in the third quarter of 1996.
Since the economy recovered after the 2008 financial crisis, it is possible for some COVs to have returned to such "spikes", Mr Ismail added.
Mr Chris Koh, director of property firm Chris International, said Mr Choo's case is the largest COV transaction he has come across since 2008.
It was previously reported that in 2007, some home-owners were asking for COV sums of more than $150,000 in certain mature estates.
"But if the flat was well-renovated and well-furnished, as claimed by Mr Choo, I can understand why he agreed to pay such a large amount of COV."
Half of all flats sold are renovated, he estimated, but only about 20 per cent have good furniture for buyers to use, he said.
"Most owners tend to bring their furniture along with them when they move out."
Only about 5 per cent of all flats can command such high COVs, he added.
All three did not think this case was reflective of housing prices in general.
Mr Koh said: "This is a resale flat, which is more expensive than a Build-to-Order (BTO) one.
"The BTO flats are still affordable, and there are many schemes to help young couples get these flats quickly."
For example, a four-room flat in Tampines Alcoves and Tampines Green Terrace - BTO projects launched earlier this year - was reported to cost $292,000.
Mr Ismail warned that the transactions like Mr Choo's are "one-off" and are not reflective of general prices.
He said: "It would not make sense to pay such large COVs for flats which do not have comparable furnishings and renovations."
COVs have fallen to an average of $25,000 island-wide, he noted, so buyers should exercise caution before paying large amounts over valuation.
"They should also remember that if the property market corrects itself, like during an economic downturn, whatever COV you pay will mean nothing."


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Benson Ang
Wed, Sep 05, 2012
The New Paper

Source: AsiaOne

Government to intervene in market for shoebox apartments

From November 4, new guidelines will be introduced to prevent a disproportionately large portion of small units in the housing market. 

The number of units which can be developed on non-landed suburban private residential developments will soon be restricted, the Urban Redevelopment Authority (URA) said today.
From November 4, new guidelines to curb the development of shoebox units outside the central area will take effect.


The decision to impose guidelines on the development of shoebox apartments stems from the need to prevent a disproportionately large portion of small units in the housing market, URA said.
In a statement released on Tuesday, the authority added that it had been monitoring public feedback on the development of shoebox units in non-central areas of Singapore.
According to URA data, the number of shoebox units will increase by more than four times from 2,400 at the end of 2011 to about 11,000 units by the end of 2015.
In its survey, URA found that shoebox apartments were more popular among small households and singles and that their development is useful in meeting diverse lifestyle choices.
On the other hand, the smaller units are not conducive for couples with children and larger families.
The government has also observed that an increasing proportion of new developments consist predominantly of shoebox units. Some developments have a shoebox unit proportion as high as 80 per cent, the URA said.
Furthermore, strains on local road infrastructure could result from the excessive development of shoebox units in non-city areas.
Minister of National Development Khaw Boon Wan had on previous ocassions warned that the Government would not hesitate to intervene in the shoebox apartment market should there be any signs of unsustainable investor demand.
Commenting on the URA's new guidelines to curb shoebox unit developments, Mr Khaw said that although the regulators try not to intervene in the market, some intervention is needed if the market outcome contradicts public interest.
In a September 4 post on the Ministry for National Development (MND) blog, the minister said: "Unlike the central area, the suburbs are largely for families. While there is a need for smaller units...too many in the same locality cannot be optimal."
He also added that the new URA guidelines will be "moderate" and assured that the demand for shoebox units will not be neglected.
Citing previous times when the authorities received good response for intervening in the property market, Khaw says that he is confident that the new guidelines will be welcomed by both developers and property buyers.

ljessica@sph.com.sg

Source: AsiaOne Tue, Sep 04, 2012

Condos sell despite Hungry Ghost taboo

Developers report healthy sales made in the past week, proving that buyers are less affected by superstition than before. 

New condominium launches have fared well in the past two weeks despite the Hungry Ghost Festival, property analysts say.

It is common for buyers to hold out until the end of the Chinese festival when investing in property as the seventh month of the lunar calendar is traditionally deemed inauspicious. However, property developers are reporting healthy numbers for sales made during the Hungry Ghost month this year. V on Shenton, which is selling at an average of $2,200 per sq ft (psf) sold 27 units in just one week, The Straits Times (ST) reported. General manager of UIC, Mr Michael Ng, told ST that sales were given a boost after the announcement of the Thomson MRT line as a station for Shenton Way will be located just behind the estate. Another 15 units for Parc Centros at Punggol were also sold for prices of $800 to more than $1,000 psf. About 85 per cent of the condominium has been taken up since its launch in July. While Far East Organisation also reported 34 units from various projects sold in the past week, Upper Changi condominium Parc Olympia sold 15 units in the past week at an average price of $840 psf. Observers say that younger buyers are less interested in following superstition and are more inclined on buying based on prices and investment opportunities. Mr Png Poh Soon, head of research at Knight Frank, told ST that earlier generations of property buyers were more cautious when it came to superstition. “For the younger and more affluent buyers, their concern is really the affordability and investment opportunity,” he said. The Hungry Ghost month started on Aug 17 and will end on Sept 15. ljessica@sph.com.sg

Source: AsiaOne  Tue, Sep 04, 2012

COVs for resale flats rising again

For transactions in the last two months, the overall median cash-over-valuation (COV) paid was $30,000. -AsiaOne  SINGAPORE - Cash premiums for resale flats are slowly rising, after it fell in the first two quarters this year from Q4 last year, The Straits Times reported. Data from property firms for the last two months revealed that for latest transactions, the overall median cash-over-valuation (COV) paid was $30,000. This is up from the average of $26,000 paid in the first two quarters this year, but still lower than the $34,000 average in the fourth quarter of last year. But recent transactions have also seen astounding figures. A five-room flat in Holland Drive was sold last month with a premium of $135,000, while an executive apartment in Woodlands transacted at $130,000 above-valuation. But according to ERA Realty key executive officer Eugene Lim, these are exceptions to the rule, and tend to occur in mature towns where there are fewer new flats. Government had promised about 25,000 new flats this year, and at least 20,000 next year. candicec@sph.com.sg Sat, Sep 01, 2012 Source: AsiaOne

Hersing Corporate Video 2012

Malaysians top foreign private-property buyers here

Malaysians made up 27 per cent of the total number of foreign buyers in the second quarter. -myp 

Malaysians have replaced the Chinese as the largest group of foreign private-property buyers in Singapore, the latest data showed as foreign home purchases saw a strong 73 per cent rebound of 611 units in the second quarter of this year from the previous quarter.
However, a report released by property firm DTZ yesterday said the number of transactions is still at a low, due to the imposition of the 10 per cent additional buyer's stamp duty (ABSD) by the Government.
Foreign buying made up only about 7 per cent of the total private sales in the second quarter, up slightly from 5 per cent recorded in the first three months of this year.
Malaysians made up 27 per cent of the total number of foreign buyers in the second quarter, purchasing 520 units.
The number of transactions by Malaysian buyers rose by about 30 per cent quarter-on-quarter.
Home purchases by Chinese buyers, comparatively, rose by only 18 per cent to 369 units. The proportion of Chinese buyers also fell for a second consecutive quarter to make up just 19 per cent of the total number of foreign buyers - the lowest since the third quarter of 2010.
"Going forward, we expect Malaysians to dominate again as Chinese buyers retreat due to the economic slowdown in their country, the termination of the Financial Investor Scheme, and restrictions against foreigners buying strata landed homes," said DTZ.
As a whole, private-home buyers were observed to have turned more to the resale and sub-sale markets for value buys in the second quarter, instead of going for new properties.
Property transactions in the two secondary private markets jumped a strong 66 per cent quarter-on-quarter to 4,409 units, DTZ noted in its report.
This is due to fewer new project launches in the outer parts of the core central region of Singapore in the second quarter.



Prices of many such new developments, such as Sky Habitat and Katong Regency, also hit new benchmarks. It led to a widening of the property price difference in the primary and secondary markets, resulting in resale and sub-sale units gaining more popularity.
An increase in buying activity was also observed among foreign nationals such as Americans, Filipinos and Japanese.
The Americans, for example, purchased some 58 private units in the second quarter, almost three times more, compared to the previous quarter.
It was also higher than the quarterly average of 32 homes they purchased last year.
DTZ said that the higher number of transactions by the Americans could be due to them having the same ABSD treatment as Singaporeans, while enjoying the same incentives given by developers.
Developers have turned to giving out rental guarantees and furniture vouchers in recent months to attract more buyers.
This could result in foreign buyers paying less, compared to pre-ABSD days, DTZ noted.
Mr Lee Sze Teck, senior manager for training, research and consultancy at real-estate firm Denis Wee Group, agreed that American buyers appeared to have benefited from the exemption from paying ABSD.
"But this level of buying interest is from far off the record 140 transactions in Q2 2007," he said.
"The number of transactions by citizens from Switzerland has returned to pre-ABSD levels. Purchases from the other three countries (Norway, Iceland and Liechtenstein) exempted from ABSD were insignificant.
"Singapore is still one of the best places in the region to invest in property because of its clarity in ownership of properties, low-tax environment, absence of capital-gain tax, low interest rate and stable government," Mr Lee said.

reicow@sph.com.sg 

Reico Wong
Wed, Aug 29, 2012
my paper

Source: AsiaOne