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)