[Focus] Singapore housing market

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it's a very Chinese thing.

"die die must buy property."

a roof over the head is a must. what kind of roof however is the question.

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OVER the past 18 to 24 months, HDB resale property prices have shot through the roof and many lower-income families have been priced out of the market. Although this is partly driven by the shortage of HDB flats and increased demand, what is not apparent to many people is the manner in which valuations have artificially fuelled inflation.
Take the three-room flat, for example. This is the smallest HDB flat and is targeted at the lower-income group.

Between March and May, prices of a three-room flat in Yishun, in the same block and with the same floor area, have shot up by between $18,000 and $30,000. The price of a similar three-room flat in Ang Mo Kio ranges from $184,000 to $300,000 in the same period. Similar trends are observed in almost every estate and in almost every flat type.

I accept that several factors may account for the differential in the value of a property, but is it realistic to expect the valuation of the same type of flat in the same block to have risen by 10 to 50 per cent over a short three month period? Even if the interior renovation of a unit is particularly good, could it account for such a difference? And why does the trend keep increasing? A check with several properties in the weekend classifieds shows that the valuation of similar properties in these locations has gone up by at least another $10,000 since the last transacted prices last month. What can justify the drastic increases?

A three-room flat in a choice location, such as Bishan and Ang Mo Kio, now costs more than $300,000. A two-bedroom private apartment in an older development costs only slightly more - a clear sign that HDB flats are over-priced and out of reach for some lower-income families.

It seems that, in valuing a property, the valuer takes the last transacted price as a benchmark. Since the last transacted price includes the cash top-up sellers usually demand from buyers, the value of the property is artificially inflated.

Past experience in Singapore and Britain shows that when property prices are artificially inflated by valuation, sooner or later, prices will crash and many people will suffer.

The HDB should bar inclusion of the cash top-up in valuations.

Patrick Tan

via : http://www.mycarforum.com/forum/Others_C20/Lite_%26_EZ_F15/Artificially_inflated_HDB_flat_prices_P2412113

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Private home sales jump in May

By Ng Baoying, Channel NewsAsia | Posted: 16 June 2008 2150 hrs


SINGAPORE: There has been a sharp pick-up in the number of private home sales in May - more than 441 homes changed hands, about 56 per cent higher than the previous month.

Despite the spike, analysts said it is premature to talk about any strong rebound in the property sector.

Colliers International's director of research and advisory, Tay Huey Ying, said: "I wouldn't say that this set of May numbers give a positive indication that the market is moving. But I think looking at last six months' developer launches and sales volume, the market has reached a stable state, with launch volumes at 400-450 range, and sales volumes at 300-350 range.

"The fact that market can reach this consistently, despite prices remaining stubbornly firm, this means that the current price levels are well supported by homebuyers."

Analysts added that even though May numbers come as a pleasant surprise, this bump upwards is also typical of the yearly property cycle.

Propnex Realty CEO Mohamed Ismail said: "The number has picked up a fair quantity compared to April. Generally speaking, the second quarter usually does better than the first quarter. Things start to pick up, and in the month of April, May, June, July, one can expect (the) numbers to grow."

Ms Tay pointed out: "Monthly fluctuations in developer sale and launch volume (are) to be expected. But this set of May numbers... is indeed a very pleasant surprise."

About 61 per cent of homes sold in May were under S$1,000 per square foot, suggesting that purchasers are genuine homebuyers, rather than speculators.

Analysts said a large decline in prices is unlikely going forward, although a marginal dip of one to two per cent may be possible.

"This is, to an extent, a buyer's market. On the other hand, developers are not bringing the price down drastically. Many (are) holding prices because (the) fundamentals of economy and demand of such properties (are) still there. So I don't expect prices to slide down," said Mr Ismail.

Knight Frank and CB Richard Ellis also noted that prices have stayed firm, contrary to market expectations.

Although some analysts called this a buyer's market, they also noted that sellers are taking a more measured approach.

Colliers said developers are likely to stay off launching luxury and super luxury projects until there is a clearer sign of market recovery. - CNA/ac

 

Published June 17, 2008

'Old money' props rise in luxury home sales

Prices hold firm surprisingly; investment climate may have stabilised, analysts say

By ARTHUR SIM


(SINGAPORE) Developer sales of new homes jumped to 441 units in May from 284 units in April, with some property consultants already calling it a 'sharp rebound'.


Strong take-up: At UOL's 100-unit Nassim Park Residences, 39 of 70 units launched were sold in May at a median price of $2,929 per square foot, URA data show

While May sales were still relatively low compared to 2007 levels, several launches in prime and city-fringe locations did well.

According to Urban Redevelopment Authority (URA) data, at UOL's 100-unit Nassim Park Residences, 39 of 70 units launched were sold at a median price of $2,929 per square foot (psf). Sources also told BT that most of these units were sold to Singapore's 'old money'.

Savills Singapore director (marketing and business development) Ku Swee Yong said: 'Based on what we have seen in the past few months, high net worth individuals (HNWIs) have not been affected by the slowdown in the global economy.'

While these buyers may be more 'picky' now, 'they don't want to wait for prices to fall just to save 5 per cent', he said. And with banks generally offering low interest rate returns, these HNWIs are looking to 'park' their money in real estate instead.

A check with UOL revealed that since last week, Nassim Park Residences has been marketed overseas and more than 50 units have now been sold. UOL Group's general manager of marketing, Dolly Lian said that as things stand, more than 30 per cent of the buyers are foreigners and the average selling price is $3,300 psf. This is higher than $3,000-$3,200 psf average selling price that some market watchers expected.

It is understood that most of the foreign buyers are from Indonesia.

Another popular development in May was Macly Group's 102-unit Vutton, with 72 units sold at a median price of $1,225 psf. A market watcher said this is in the same price range as UOL's Pavilion 11, also off Moulmein Road, which was sold in 2007.

Also selling well in May was Ascend Land's 106-unit The Verve, off Balestier Road. During the month, 42 units were transacted at a median price of $985 psf. According to URA data, 84 units have been sold so far. In April, eight units were sold at a median price of $1,055, while in March the median price was $1,187 psf.

Collier's International's director for research and advisory Tay Huey Ying said that while the rebound in sales activity could be 'just a monthly fluctuation, it may also be a sign that most genuine buyers have come to accept that the current price levels have reached a fair level'.

Ms Tay noted that the number of new launches increased 74 per cent in May from April. 'This encouraging response could be just what is needed to trigger more of such launches in the coming months,' she said.

She added, however, that developers will remain cautious with regard to pricing, 'as buyers in today's market tend to be price-sensitive'.

CB Richard Ellis executive director (residential) Joseph Tan said: 'Based on the transactions in May, contrary to market expectations, there was no downward adjustment of prices.'

Luxury prices in particular 'seemed to hold firm' as projects like Boulevard Vue, Scotts Square and Nassim Park Residences maintained $3,000-psf levels, he said. And in the eastern and western parts of Singapore, prices held at $800-$900 psf at projects including Breeze by the East, Blu Coral, The Ambrosia, The Lakeshore and Crystal Heights.

Still, not everyone was as sanguine about the state of the property market.

Knight Frank director (research and consultancy) Nicholas Mak said that while total new sales in the Core Central Region (CCR), Rest of Central Region (RCR) and Outside Central Region (OCR) rose 60.9 per cent month on month, the OCR saw a 14.6 per cent drop in sales volume month on month.

According to Mr Mak: 'Essentially, the slight rise in sales volume can be attributed to some stability in investment sentiment. However, it should be noted that this escalation is still 32 per cent below the 12-month average figure.'

Looking at take-up rates (new sales versus new launches) in the three regions, Jones Lang LaSalle local director and head of research (South-east Asia) Chua Yang Liang said these were 87 per cent for CCR, 84 per cent for RCR and 146 per cent for OCR.

He said the strong take-up rates in CCR and RCR were a result of 'latent demand spurred on by softening prices', while the take-up rate in OCR was 'the result of low supply of new launches over what appears to be a minimum demand threshold - an average of 113 units over the past six months - in the region'.

june 17, 2008

New private home sales up 55%

Highest monthly figure so far this year follows softening of prices, surge in total units launched

By Joyce Teo, Property Correspondent


SINGAPORE'S private residential property market has started showing some signs of life after several months in the doldrums, thanks in part to an easing of prices.

Last month, developers sold 441 new homes, excluding executive condominiums, a sharp 55 per cent jump on the figure for April - albeit a low base - of 284 home sales.

That made May the best month so far this year, according to the monthly sales figures released by the Urban Redevelopment Authority yesterday.

The improved sales came on the back of 474 new homes launched by developers - a 75 per cent surge over April - though many of the units sold were from earlier launches.

Still, consultants caution against reading too much into the latest figures. They say the market is generally still taking a breather, as many buyers prefer to stay on the sidelines.

Sales have improved from a very low base but they remained 32 per cent below the 12-month average, said Knight Frank's director of research and consultancy, Mr Nicholas Mak.

The figures 'do not necessarily imply that the private residential market has overcome the protracted lull sparked off by global economic woes', he said.

'The market is still at a plateau. Going forward, we will still see range- bound prices and volume of between 300 and 600 units a month. Sentiment is still very cautious,' he said.

Jones Lang LaSalle's head of research for South-east Asia, Dr Chua Yang Liang, said median prices have eased.

The chief executive of PropNex, Mr Mohamed Ismail, said that most May sales were done at a median price of below $1,000 per sq ft (psf), a stark contrast to the end of last year when the median price of almost two-thirds of all sales was over $1,000 psf.

'Upon closer scrutiny, we can see that less than 50 per cent of the units launched were actually sold.'

Also, slightly over half the sales were from earlier launches, he said.

Still, there are a few bright spots. While some are struggling to sell, developer Macly Group sold 72 out of 102 units of Vutton in the Novena area at $1,057 psf to $1,416 psf.

In the luxury market, the 100-unit Nassim Park Residences is the star performer, logging in sales of over 50 units since its soft launch at end-May.

As these are large apartments, prices range from about $10 million to a whopping $19.5 million, sources said.

The prime Nassim Road project - being developed by UOL Group, Kheng Leong and Orix Corp - has already hit a high of $3,800 psf - far better than its low of $2,318 psf.

One buyer is Mr Wee Ee Cheong, son of UOL chairman Wee Cho Yaw, who bought a penthouse for $18.33 million.

Just over 30 per cent of the buyers are foreigners. The project has already been launched in Jakarta and Hong Kong, said UOL.

Another luxury development Scotts Square in the Orchard area registered sales of four units at a median price of $3,818 psf last month.

The relatively strong sales in central Singapore were the result of 'latent demand spurred on by softening prices', said Dr Chua.

'Going forward, we reckon that developers are likely to keep prices competitive to keep the market demand stable,' he said. As long as prices remain affordable, price-sensitive buyers will return, he added.

Savills Singapore's director of business development and marketing, Mr Ku Swee Yong, said the level of transactions and price levels seen last month are sustainable.

joyceteo@sph.com.sg

Tuesday, June 17, 2008

Dismal private property sales despite lower prices

TAN HUI LENG

huileng@mediacorp.com.sg


PRIVATE property sales by developers remained weak last month, with 441 units sold.

That may be up 55 per cent from the 284 units sold in April, but over 3,000 new units remained unsold. That was despite developers cutting their prices for homes in 18 developments last month. Median prices for The Verve along Jalan Rajah, for example, dropped 17 per cent from $1,187 per sq ft (psf) in March to $985 psf in May.

Mr Colin Tan, Chesterton International’s research and consultancy head, said: “Presently, the market is dominated by investors rather than owner-occupiers because current price levels are beyond the affordability of most owner occupiers.

“To nibble at this investors’ market, developers will have to lower prices and have to continue to lower them to sustain sales,” he said. “A one-off price reduction may generate some sales but it will stagnate once that segment with that certain level of risk appetite is secured or captured.”

Some developments still saw fairly good sales last month. DTZ Debenham Tie Leung’s research senior director Chua Chor Hoon named Vutton at Akyab Road and Orchard Scotts as examples, but noted that some developers were holding off from new launches.

Property analysts expect smaller listed developers to lower prices first, as they will be under pressure to boost earnings.

As for leasing, Cushman and Wakefield’s Singapore managing director Donald Han said: “Contrary to the widely held perception that the rental market is still hot, it has already stabilised. The overall vacancy level is slowly rising as more units are completed.”

via : http://www.mycarforum.com/forum/Private_property_-_the_media_to_be_believed_or_not_P2412499/#2412499

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   180733.41 in reply to 180733.35

This round is a bit different, every speculator thou they can off load before the opening of the IR (2009) hence the inflating of property price is relentless, everybody thou is a sure win bet, hence Apen 1324 sq apartment, used to cost about 1 mil prior to the run had been pushed up to 2.2 Mil prior to the collapse.

One of my friends bought up to 30 unit in a span of months, look like a whole sales to me and slowly distributed to some salaried buyer. who will bear the brunt of 400K loss. but when someone bought at that moment, nobody thou of losing, no body expected the US subprime could have hit the world so badly, as far as I remember, Godman Sache, Lehman Bro, UBS, Citi, SA etc etc no commerical bank in the history was so badly bruised in the financial history as bad as this round.

This is the real world crisis, that has been delayed by the Fed rate cut, but the pain will be prolonged. as the defaultor or potential defaultor are still in the market. the real culprit has not paid the price yet.

last month the total unit transacted was mire 485 unit, the projection of unit coming (new unit) to stream in 10000 units, out of the 485 unit, perhaps 1/2 come from new units.

each month buyer has to buy up to 800-900 new unit to absorb the new launch. now only about 240 unit being bought, can you imagine how much over hang is in the market now.

Those said price can hold up are just hiding the truth, I would not say they are teill lie.

Hold on to their job for the next 30 years ? look at he non oil export, drop by 11% ??, as I said, all the vital sector of economy is showing sign of cracking under the world financial crisis : Liquidity, subprime, inflation, world wide property price collapse; emergenging countries financial crisis, world natural crisis, etc etc. another overhang is the super inflated commodity price, this crisis will not be any difference from the subprime, cheap money are being used to speculate the commodity, one day when the correction come, speculator unwind their position, not US$900 billion but probably US$9000 billion will be wiped out of the market, we will be having another round of liquidity crisis.

Singapore cannot be insulated from all this event around the world, as much as we wish, our internal market is small, all our wealth are generated overseas, especially the creation of job in the field of manufacturing.

Only manufacturing is able to create job that is plentiful and reasonable pay (4K to 10K) all jobs created by service sector are for temp and low paying job (1K to 2.5K).

The biggest impact on property come from manufacturing, which is badly hit by US recession which is already taking place. and is expected to be prolonged by Fed rate cut. if no rate cut, the recession may be acute but short.

Sit tight and wait.

Another even bigger storm is in the brewing.

I know well about the status of industry, many projects have been shelfed or delayed or postponed or simly cancelled.

You know the knock off effect, one factory cancellation will affect many downstream industries, just one cracker cancellation will affect all the peripheral factory that taking feedstock from & to this cracker, so one cancellation or delay of cracker will set back the employment and economy tremendously.

Our cracker is now not competitive due to high price of feedstock (cruel oil) and higher energy price for cracking.

Middle east has overtaken Sing as hub for cracker.

This has huge knock off effect in Sing eco. similarly many wafer fab has delayed for shift out this operation.

Now the only bright spot is solar, but I doubt the spin off effect of solor, low investment & product price, let alone low tech.

Economy is not rosy at all, the financial section, need less to say, DBS & OCBC have rised fund thru Preference share, that speak volumn about the stat of capital.

Construction is also slow down due to the delay of construction of plan  & escalated material and labour).

Marine sector is brace themselve for escalation price on material, energy and labour, not sure whether contract built in with escalation clause (for material, currency etc), if not big sh*t waiting. some time just to win contract may just forgo the clause to please customers. (dis SM forex loss ring a bell on the currency risk when dealing iwth mega project ?)

all sectors dont look rosy to me.

Property is the last thing in peoples' mind during this kind of economic environment. in couple with the super super price tag secured during 2007, developer & bank may just have to cut loss by reducing price and let the buyers share the risk.

sit tight, good bargain on the way

via : http://forums.delphiforums.com/sammyboymod/messages?msg=180733.44

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From ST - http://www.straitstimes.com/Free/Story/STIStory_252070.html

HDB neighbours from hell? This minister knows all about it

But there are sweet moments too, as National Development Minister and former HDB lad Mah Bow Tan recounts of his own HDB Experience. He tells LI XUEYING how the Housing Board, which received the United Nations Public Service Award for its home-ownership programme on Monday, remains relevant five decades after its birth

HEARTLAND MAN AT HEART: Although he now lives in landed property, Mr Mah Bow Tan lived in a Toa Payoh HDB flat before getting married. So, yes, he knows all about those annoying neighbours who let their laundry drip all over yours. -- ST PHOTOS: TERENCE TAN, JOYCE FANG

MR MAH Bow Tan knows a thing or two about 'neighbours from hell'.

'Those who, you know, just hang up their clothing, drip, drip, drip and all that,' he says with a grimace followed by a laugh.

The National Development Minister has long upgraded to private property. But he remembers, with much fondness, the years he lived with his aunt's family in an HDB flat in Toa Payoh Lorong 6 four decades ago.

It was after he finished his OLevels until he left for Australia in 1966 on a President's Scholarship to study engineering.

After he graduated, he spent another five years there before marrying and getting his own nest, a landed property.

'So I know HDB, not just on a professional basis but as a person who has lived in it. And I know that it can be a real pain,' says MrMah.

-- ST PHOTOS: TERENCE TAN, JOYCE FANG
'But it also has its pluses.'

He reels them off: 'Food and carpark downstairs, MRT, bus stops and schools nearby, and the hustle and bustle. Something's happening all the time,' he says.

It is The HDB Experience, a term Mr Mah coined some years ago to encapsulate everything - from urine in the lifts to inter-racial friendships.

'It's a collective, it's where people of different backgrounds, different races, different personalities, different ages, they all live together,' he says with the polished flair of a ringmaster introducing his award-winning circus.

Never mind that it has been 48years since the HDB came into being. The HDB Experience is one that Mr Mah believes is as relevant today - if not more so.

From slums to world-class housing

THE Housing and Development Board was formed in 1960, a time when squatters and slums nestled alongside traditional kampungs.

HDB's task was urgent: to create homes - cheap, fast and in huge quantities.

And it did. In less than three years, it built 21,000 flats. Today, it has built 880,000 flats.

About 80 per cent of the population live in public housing, with almost all owning their homes.

There was a secondary - though no less important - purpose for the HDB: its nation-building role. It was to encourage home ownership, so that Singaporeans feel they have a stake in the country.

The underlying philosophy, as posited in the book Housing a Nation, is that if one owns an asset in the country, one would defend it. This would contribute to political, economic and social stability.

Today, however, Singaporeans are increasingly mobile, settling in as easily in Shanghai, New York and Tokyo as in Sengkang, Nee Soon and Toa Payoh.

How relevant then remains The HDB Experience, and would the Government have to find new ways of rooting Singaporeans in this land beyond the ownership of the roof over one's head?

In fact, Mr Mah argues, it is because of globalisation that The HDB Experience is even more important today.

It ranks as 'one of the most important' in building a shared identity for Singaporeans.

Yes, they may move freely across borders today. 'But at the end of the day, when we all decide where we want to be based permanently, we have to make a decision. I believe that finally there's something that will define a Singaporean and help to make them feel they want to come back - whether it's family or friends.

'I think being in a closed community which is well-integrated, which is safe, where people feel that they belong: The HDB Experience - it can make or break that.'

One of the more experienced ministers in the Cabinet - he marks his 60th birthday, 20 years in politics and nine years as National Development Minister this year - Mr Mah is economical with his words and speaks calmly.

But, like any parent protective of his offspring, he bristles at any suggestion that the HDB is less important now compared to its early years. He rebuts vigorously the layman's observation that its work today seems to be mainly estate renewal and maintenance.

'That's all it does?' he repeats with incredulity. 'No! What it is dealing with today is the transition to catering to a society with different aspirations, and building different types of flats yet trying to cater to the bulk of the people.

'I don't think it's right to dismiss the HDB as doing only this.'

In fact, its job has become more complicated. He elaborates: 'For every flat you renew, you're building two flats or 1-1/2 flats. You've to build, move people out and face issues such as compensation, how to maintain the bonding, the sense of community and yet give them a better flat and, at the same time, make sure they are financially better off.'

Looking ahead, Mr Mah had spoken of finding creative ways to keep flats affordable for low-income families but attractive for the better-off.

But should the HDB go back to basics, outsourcing the latter task to the private sector, and returning to its objective prior to 1973: to focus on low-cost housing for the lower-income?

Not a good idea, says Mr Mah. It will mean that half of all Singaporeans will be deprived of The HDB Experience.

'Your multiracial estates, your ability to forge this common experience, that would be drastically changed...The social bonding part will be different. The safety net will change. The ability to use the flat for retirement income will also change.'

Affordability will also become an issue, he adds.

But ultimately, the proportion of Singaporeans who live in public housing will dip, he says, down to 70 per cent over the next 30 to 40 years as more Singaporeans aspire to private property.

More land is being set aside for private housing. The HDB will also divest some responsibilities such as when projects like executive condominiums are privatised.

This trend comes in tandem with the challenge of housing a growing number of people following Singapore's revision of its planning parameters to accommodate a population of 6.5 million.

Addressing fears that Singaporeans will be living in rabbit hutches, Mr Mah pledges that 'we can accommodate this number without adopting Hong Kong planning norms'.

A typical flat in Hong Kong, he estimates, is about 300 sq ft or 30sq m.

'We are not going that way,' he promises. 'Our smallest flat, a two-room flat, is still about 50sqm or 60 sq m, three-room flats 70 sqm or 80 sq m, our four or five-room flats about 100 sq m and above. That's the kind of norm that we are using.'

It will be accomplished through building upwards - HDB started with six-storey blocks and now has 50-storey blocks, with pockets of greenery amid the concrete.

Still affordable

TODAY, a new three-room flat in Bedok goes for about $200,000; a five-room flat in Clementi $480,000. And near the ends of the spectrum are an $80,000 two-room flat in Sengkang and a $700,000 condo-like flat in Boon Keng.

Does the latter mean that HDB is losing sight of its objective, to provide affordable housing for the masses? It is a question Mr Mah has faced many times.

He reiterates that the HDB prices its flats according to the market rather than to building costs.

'If we go on cost price, then we have to go cost price all the way,' he asserts.

This means that unlike today, homeowners will not be able to make a profit by selling their flats on the market. Instead, they will have to sell back to the Government at the price they bought at. Flats 'will thus not create that store of wealth' for Singaporeans.

Prices will also fluctuate with construction costs.

The minister stresses that HDB flats remain affordable - relative to what they earn.

Last year, about 70 per cent of flat buyers serviced their mortgage loan through their CPF savings.

This means they used below 23 per cent of their income for loan repayments.

'If you go to a bank or any country, they will tell you 30 per cent to 40 per cent is the norm.'

With some frustration, Mr Mah says: 'Of course people will say, why can't it be cheaper?'

Yet, when it comes time for them to sell their flats, 'they don't tell the next person, 'Eh, I'm going to sell it to you at the price I paid for it'.'

What then, about calls for the HDB to be transparent about the different components in the costing, such as land and materials?

'What purpose does that serve?' he counters.

People want to be convinced the Government is not making money off them, you reply.

'The best way of convincing them is to look at our accounts, how much money we are collecting versus how much money we are paying in terms of construction,' he retorts.

'Overall, every year, HDB runs a deficit. $700million, $800million, $900million, close to a billion dollars some years.

'That's real money.'

Political carrot?

A LESS savoury side of The HDB Experience, critics have noted, is how the People's Action Party (PAP) has used upgrading as a partisan tool during the past three general elections.

During the last one in 2006, voters in Hougang and Potong Pasir were promised $180million of upgrading projects if they voted in the PAP. They did not.

Subsequently, Prime Minister Lee Hsien Loong said it had to review its strategy in the opposition wards.

What was the conclusion?

Mr Mah, treasurer in the PAP's central executive committee, says: 'We have looked at this and we still think that it's relevant.'

On whether the review had found the efficacy of the strategy limited, he says: 'I am not sure there is any correlation between the upgrading policies and the election results.

'Notwithstanding that, if we have to face this decision - and have a certain amount of money - of choosing between a PAP and an opposition ward, I think we would still have to go for the PAP ward first.'

What about using age as the sole criterion in deciding which estate is earlier in the queue?

'If we did age alone, then we would just be concentrating our upgrading in pockets of areas,' he says. 'We want to spread it out.'

This, he concedes, has led to cynicism among Singaporeans about the political process.

'Yes, there's bound to be cynicism. People will say yes, you are using this as a carrot.'

But he prefers to look on the bright side, saying: 'I hope we will continue to put this message across that, first of all, this is the practical reality on the ground, that we have to decide, and secondly, the political message also is your vote has an impact on what is happening around you, beyond electing an MP into parliament.'

Housing still on his mind

HE HAS had stints at the trade and industry, communications and environment ministries. But it is in national development that Mr Mah has made his mark.

What would he like to try his hand at next?

Parlaying the question with a laugh, he says: 'I'm too busy to be thinking of that at the moment. Many exciting things are going on...reshaping the physical landscape, not just downtown but in other parts of Singapore.

'Meeting public housing challenges, not just physically but also in terms of policy, in terms of helping to provide for security for our senior citizens. Making sure housing prices are affordable.

'So I am very busy. I've not thought about other things beyond that.'

There is another item on the minister's plate - encouraging his four children to live in HDB flats, the way he did 40 years ago.

They had enjoyed the experience in their childhood when the family stayed temporarily in one when their house was being renovated.

Says Mr Mah: 'Now I can afford private housing, I live in private housing. I've upgraded.

'But for them, I'd encourage them, yes, even if you can afford private housing, if you are eligible for HDB, why not?'

read it via : http://forums.hardwarezone.com.sg/showthread.php?t=2009171

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via : http://forums.hardwarezone.com.sg/showthread.php?t=2012434

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trend is that newer housing are not as attractive as re-sale ones.

as mentioned from : http://vagsg.com/forums/showthread.php?t=12428&page=3

With the current market sentiment, better to get "non-new" Condos. Quite a number of bargain around if u dont mind distrinct 14 or 16. Decent size condos of about 1000sqft going for about 600-700psf with decent room space.

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hell, even Mr. Jim Rogers is finding housing in Singapore expensive. haha.

http://vagsg.com/forums/showthread.php?t=12503

In today's Straits Times. Jim Rogers now lives in Singapore with his wife and two kids and wants to get 5-yr old daughter (now at Nanyang Kindergarten) into Nanyang Primary school. He and the wife are in the process of volunteering 40hrs at Nanyang to get priority. Daughter even speaks Singlish now. Looking for a house within 1km of Nanyang now but says they are "priced too high"!!!! hahaha. Dun think there is a house here he cannot afford.
Reply With Quote

who's Jim Rogers?
http://en.wikipedia.org/wiki/Jim_Rogers

James B. Rogers, Jr. (born October 19, 1942) is an American investor and financial commentator. He is co-founder, along with George Soros, of the Quantum Fund, and is a college professor, author, world traveler, economic commentator, and creator of the Rogers International Commodities Index (RICI).

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via : http://vagsg.com/forums/showthread.php?t=12977

via : http://vagsg.com/forums/showthread.php?t=12977

Dear all...
Totally newbie on this... When is it a gd time to get a new property??  Property prices are softening slightly now, but is the trend gonna continue??
 
Where can I get information on property purchase rules and guidelines??
Welcome all insights and comments...
Thanks... :happy

If you notice that those developments that have gone en-bloc have suddenly stopped happening.

This should be reason enough to believe that the "big boys" know what's going on and that the market is in a down turn. [e.g. no self respecting property developer is going to turn a 20 yr old block around for anything less than 'seriously profitable']

I reckon early '09 can you go shopping in the US for property and probably late '09 get some nice buys on hometurf.

That's my initial gut feel but those estimates might be likely to push forward another 1-2 even 3 years.

It's been said that quite a few condos will TOP in 2009/2010, so there will be a influx of supply then.
 
However, it remains to be seen whether this will have a huge impact on prices as there are also many collective sale beneficiaries who have yet to buy a place. I suspect that there is pent-up demand waiting to for the "right" time to buy, like yourself.
 
It's true that prices have softened lately, and I know a few people who have gone ahead and bought. Personally, I think there is more softening to go.
 
It also depends if you are buying to stay or for investment. If you need a place to stay, it may not be realistic to wait indefinitely for prices to fall.

When to buy property.... Isn't that the $500,000 question?
 
I don't have the answers.  But I think your thinking can be clearer, if you can answer a few of these:
 
1.  Property market has peaked for the time being. 
 
How long will the downturn in property market last?
 
And to answer that, please answer the below:
 
2.  However local property market doesn't stand in isolation.  Its closely related to the stock market and of course the economy (local + global).
 
How long do you think the downturn in US will last?  How decoupled is Singapore from the US economy?
 
3.  What do you think of the medium to long-term prospect of Singapore as a nation-state?
 
4.  Will the political situation in Singapore be stable in the medium & long term?
 
What do you think? Like I said, I don't have the answers myself.  Wouldn't mind having some opinions on the above! :laugh

I am a huge believer that 2010 will bring another run in the property market. All the supply coming in 2009/2010 and beyond is coming in to meet this demand. The IR will definitely bring in more than 10,000 foreigners as the local supply of talent in this industry is not quite there. That means rent and sale prices will go up. I think I read that there is an oversupply of about 5-6K properties now.
 
The foreign talents in this area are already making big bucks overseas so I believe they will be going for mid to high range properties mostly for the top 10% of this 10,000+foreigners. The rest will need low end private properties to maybe HDB flats. HDB should be able to absorb but I think rentals will move due to demand.
 
Of course, the naysayers will say that there is already oversupply in the market. I think it is not enough. It depends on which side of the fence you sit on and believe in.:think

People I know in the industry have been telling me to wait till the end of the year before I buy. Obviously, it's no easy task catching the bottom of the market, so my view is that once a property's price reaches a level you are comfortable with, you should just go for it.
 
As I had mentioned in other threads, a property I was eyeing has had its price cut by over $200k since I saw it in May. It is now at a level I'm comfortable with (i.e., I won't feel ripped off buying it), and might well take the plunge soon.
 
Agents always go on about how many people have expressed interest in the same unit, how it is a fantastic deal, etc, and that I better decide quickly and give them a cheque. My response has always been that I leave it in the hands of God. If it's meant to be, it's meant to be... So far, no witty response to that from any agent I have encountered.

The big boys paid high prices for en bloc sales around River Valley area in the past 2 years with break even prices around $2,000 to $2,200 psf. Selling price will be obviously more than that.
 
The market has softened, but those big boys can hold out and delay their launch until the price picks up.
 
I am of the opinion (more like praying because I bought early 2007) that the market will pick up as we approach the opening time of the IR which hopefully will coincide with a population growth or influx along the numbers predicted by the government.

dpends where at RV. martin residences is abt 1500-1600, resale aspen & yongan also 1500 sort of... lattitude or 1devonshire bopianz if u die must have new & high end... cosmopolitan subsale also less than 2000... so got lots of choice if u look hard

Just checked.. Martin Residences comes in around 1800-1900 in recent times and Yong An park doing about 1600 but it is really old place. I bought St Thomas Suites which is currently still doing above my buying price, so still okay for now... but I expect property to fall a little further and then pick up sharply closer to IR end 2009/early 2010. I saw Chris's remark about who is coming to gamble, but I am not banking on the people coming here to gamble. I am banking on the people who are coming here to work, who are paid big bucks to do what they do. Just look at Macau. Today's property price is far far higher than before they liberalised gambling there... Easily about twice as expensive, depending on when you take a benchmark, within a few years.

last 2 years is an anomaly whereby 200K++ expats came in... so inflation of everything occured. When sh!t hits the Dow jones fan & all comes down, we may get affected as well, expats get sent back home, pay cut, no bonus so therefore they may consider renting cheaper places on outskirts like holland v, bkt timah etc instead of central area.
 
so it depends which way the wages go this year & next. Its already obvious investment banking profits are down year on year so dont expect the same tailwind in asset prices too. depending on where the dow goes, we are in for a bumpy ride to say the least in stagflationary period which may last longer than expected

Yea.. Could be... Like I said earlier, it depends on what you believe... People who can hold out will definitely survive. People who can't will become fodder for people who can...
 
There are always 2 views for any market property included, otherwise there won't be any losers. Just like I am expecting the IR to create a similar anomaly. So anything can happen. I am not saying what I am saying is absolutely true... Any scenario could be possible at this point in time... Yours could happen. Mine could too... It is just something I believe in...
 
Fortunately for me, I can hold out and stay in my dream apartment... I was hoping that I could stay in it cos I fell in love in it when I saw the showflat. Now it seems I have a reason not to sell it, since I am not making that much anymore... Of course, if I can cash out, that would not be a bad idea either, if my belief comes true... Then I can buy an even bigger apartment! That is my idea of a win-win situation for me...

It boils down to the motivation of buying a property.  Unfortunatley only on hindsight will you know if you had got in at a good or bad time. 
 
If it is for own occupation, IMO any time is a good time as that ONE particular place you fancy might not be around if you don't act. 
 
If it is for investment, it is anyone's guess. And to extract benefit from any upside, you got to have more than 1 property.  While hoping/waiting for capital gain,  in the mean time, does the yield from rental AFTER financing makes sense? 
 
The URA website is a good place to start.

for reasons im not sure of, my soruces have mentioned gahmen themselves are expecting things to pick up come IR completion. First i wld like to say IF the IRs are complete by 2010, cld be 2011 at the rate things are going.. construction TPI super high all wallets squeezed...
 
secondly... how can 2 casinos alone prop up the economy? like somebody siad, if we have negative growth for 2008-2010, thats 2 years of lousy sales, then how can people have $ to play casino?? either that or the casinos open shop & absorb loss first & hire workers to serve nobody for the time being.. maybe that will ahppen & support rentals hahah

Totally agreed on this one esp in the landed property context. Every house is unqiue and sometime u just cannot wait for the best time to buy. If u are staying in it, buy what u and ur better half like as long as it is within your means.

Haha - I also bought St Thomas Suites, but whilst I may have my head above water, trying to find an actual buyer could be a problem. I guess my plan is the same as everyone else. Sell if a profit. Rent if cannot sell. Stay if cannot rent.

totally agree, I bought a Semi-D just 2 weeks ago, cant wait to start A&A it

whooooooo

think there will be plenty of supply from that development. Very few actual transaction. A few above 2k I believe are outliers, I think its hard to sell even for 1600-1700 there now.

China cant afford to be dragged down by the US, neither is Japan, Singapore, some European countries as well. What the US owes are in the hands of these countries.
 
The US is suffering now, coz of excessive credit but it wont go under.
 
Put it this way, if the US really goes bust, whatever you hold as value will all go down the tube. Then how?
 
CTRL-ALT-DELETE.
 
Back to topic at hand. Singapore properties and given Singapore's stature of a modern city state and almost Utopian style of living, to me, it is still *undervalued*.
 
For local residents, the best time to buy a property is the time when you can relatively afford one. Markets are cyclical or even though Mr Soros now tend to think differently, so if you buy a property now and assume you have a life span of another 20-30yrs, dont tell me that within that period in time, you will not find 1 singler year whereby you will MAKE money?

2 casinos can REALLY prop up the economy.....these guys arent looking at the pool of *players* domestically.....look at the big picture...high rollers from India/Mid East/Indonesia/Malaysia/Thailand/Philippines/China/Japan/Korea/Russia/Europe etc.etc.etc.
 
Asia is the new place to be.............

[zuoom]

July 19, 2008    
Condo-like flats for less than $700,000
Four 30-storey blocks under the design, build and sell scheme for Ang Mo Kio
By Joyce Teo
LIVING IN STYLE: The Park Central development will boast amenities like barbecue pits and jogging path on the roof-top garden above the carpark. -- ARTIST'S IMPRESSION: COURTESY OF UNITED ENGINEERS
SINGAPORE'S third condo-style public housing project is about to go on sale, this time in the heart of bustling Ang Mo Kio.

The project is located at Ang Mo Kio Street 52, which is flanked by Ang Mo Kio Avenue 3 and Avenue 5 and within walking distance of the Ang Mo Kio MRT station.

The prices for Park Central @AMK are about 10 per cent below the last such project, City View@Boon Keng, launched early this year. Sales there were slow amid some concerns that prices were too high.

Developer United Engineers (UE), through its unit Greatearth Developments, is launching the 578-unit Park Central project for sale on Wednesday.

It aims to take advantage of the small window before the Hungry Ghost month starts in early August when some home hunters are wary of buying.

The project, comprising four 30-storey towers, will feature only four- and five-room flats. The average price will be about $490 to $500 per sq ft, with the four-room units going for about $400,000 to $500,000. The five-room units will cost about $600,000 to $670,000.

Park Central also has 20 'loft units', which have higher ceilings of 3.6m, compared with the typical flat height of 2.6m. They will cost $580,000 to just below $700,000.

These high-end HDB flats will boast condo-style fittings such as built-in wardrobes, kitchen cabinets, air-conditioning systems, timber flooring and planter boxes.

The developer will also put in barbecue pits and a 400m jogging path on the roof-top garden above the carpark, allowing for more privacy, though these are public areas.

PropNex chief executive Mohamed Ismail expects strong demand as the prices are very fair, particularly considering the significant run-up in construction costs, he said.

UE chief executive Jackson Yap said he priced the units slightly above resale flat prices. He is optimistic as resale prices are still rising.

UE won the Park Central site in a tender last November at $212 per sq ft of potential gross floor area. It is the third project under under the Housing Board's Design, Build and Sell Scheme (DBSS).

In such projects, private developers set the price of the flats but are bound by general public housing rules. For instance, they can sell their flats only to households earning not more than $8,000 a month.

Because of this restriction, the project's price seems a little high, said Chesterton International's head of research and consultancy, Mr Colin Tan. 'But the interest will be strong as Ang Mo Kio is one of Singapore's largest housing estates.

'People tend to buy in areas they know or have lived in. With a little clever marketing, enough people may be persuaded to really stretch themselves and part with their hard-earned money.'

The first DBSS project, The Premiere@Tampines, met with an overwhelming response when it was launched at the end of 2006. But demand at City View@Boon Keng, which was priced over 50 per cent more than The Premiere, was slower. Some buyers felt the prices - the five-room units cost $536,000 to $727,000 - were too high.

The fourth DBSS project, in Bishan, could come to market at the end of the year.

joyceteo@sph.com.sg

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=============

$700K from HDB? another Boon Keng in the making?

true enough, some of the flat at Boon Keng did transacted at those figures.
but, is that the norm? o boy, what's the market rate?  so many questions.

one word. "Wow".

[zuoom]

July 20, 2008    
Big property stand-off
Developers are not lowering their prices, and buyers are not biting
By Joyce Teo, Property Correspondent


Showflats of newly launched developments like the 616-unit Clover by the Park in Bishan (above) are pulling in the crowds again, but most are very cautious about signing on the dotted line.

It is seven months into the year, and while new private home sales have picked up from the lows seen earlier in the year, sentiments remain weak.

More bad news emerged recently from the United States, sending stocks plunging. The same question remains on potential buyers' minds: Is it time to buy?

Some developers started to launch mass- to mid-market projects last month, drawing the crowds back to showflats. These include huge ones such as the 616-unit Clover by the Park in Bishan, the 724-unit Livia in Pasir Ris and the 521-unit Kovan Residences next to Kovan MRT Station.

But while the crowds are back, few are biting. Most are very cautious when it comes to signing on the dotted line. 'I visited showflats to get a feel of what's available but prices seem high to me. If I buy now, I am afraid that prices will fall further,' said a 32- year-old marketing manager.

Another potential buyer, who is 27, said he has decided to wait one to two more years after a recent futile search. Those new projects that he likes are beyond his reach.

Lowering prices

RELATED LINKS
 Click for pdf - http://www.straitstimes.com/STI/STIMEDIA/pdf/20080720/9373027%20-%2018_07_2008%20-%2020.51.01%20-%20PrivateHomes_latest.pdf01%20-%20PrivateHomes_latest.pdf



Singapore's property market went up too much too quickly last year. Inevitably, there will be a correction or, as some market experts say, a possible reversal. Already, price growth has slowed to an estimated 0.4 per cent in the second quarter, down from 3.7 per cent in the first.

Private home prices rose 31.2 per cent last year, up from 10.2 per cent in 2006 and 3.9 per cent in 2005.

Mr Colin Tan, Chesterton International's head of research and consultancy, said: 'First, if you believe that there is such a thing called a property cycle, then the price decline is inevitable. The next question is: How deep will the decline be and how quickly will it reach the bottom?'

For now though, many developers are reluctant to lower prices.

'Developers will wait a while before lowering prices,' said DTZ's executive director and regional head for consulting and research, Mrs Ong Choon Fah.

Said a seasoned market watcher: 'Prices will fall. It's a question of how much. The US is likely to be in recession and it will hurt the rest of the world.

'Oil prices are rising. Inflation is a problem for Asia as it is unable to feed itself. This second half will tell you where things are going.'

Developers hold out

Market watchers say many developers do not want to lower prices since they are quite well-capitalised.

Some of them had sold units at the height of the boom last year, so they will try to hold on. Other developers say they have deep pockets and can hold.

Price supports cited by developers include high construction costs and a brighter long-term outlook.

Relatively low mortgage rates are also underpinning the market, said United Engineers chief executive Jackson Yap, who is launching a condo-like HDB project in Ang Mo Kio on Wednesday.

'There will not be a widespread price drop but certain developers, the small ones or the non-traditional ones, may lower their prices,' said the director of Savills Residential, Mr Ku Swee Yong.

Those that had launched earlier but have yet to get a contractor will be suffering, said the seasoned market watcher.

To hear developers put it, the lull is temporary as Asia remains very attractive to investors.

'On the whole, people still believe in Asia,' said Mrs Ong. 'Singapore has reinvented itself and is very different from 10 years ago.'

What it lacks now is confidence as the market outlook is still uncertain, she added. The problem, some think, is once you start lowering prices, where does it end, said Mrs Ong. 'Buyers may say that if you lower now, you may lower them again tomorrow.'

High-end prices have fallen nearly 10 per cent, according to Savills Singapore. Many say that if overall prices were to fall, the drop will likely not be steep.

How long will it last?

Some developers are hoping that the stand-off is short-lived as they quietly aim to launch their projects towards the end of the year. Some others are unsure and are prepared to ride out another quiet year or two.

'If good news happens, such as a prolonged easing of oil prices, I am quite sure a property recovery will take place towards the year-end, albeit at a slower pace,' said a developer who declined to be named.

'But if nothing's good in the market, I expect demand to remain sluggish and prices to ease further, especially the high-end ones.'

Well-located projects which are reasonably priced may be spared the poor demand, he said.

'Singapore is unique compared to most countries in the sense that our property cycles tend to have a very wide turning radius, that is, they take a long time to turn unless there is a catastrophe such as Sars or 9/11,' said Chesterton's Mr Tan. 'It is resisting any fall largely because long-term fundamentals are strong.

'If there is no recession, I expect the stand-off to be a long one as prices have risen quite a bit. But incomes have not kept pace.'

joyceteo@sph.com.sg

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Home > Free > Story
July 23, 2008 
Govt defers projects worth $1.7b
Move to ease pressure on building costs
By Joyce Teo, Property Correspondent
 
THE Government is deferring another $1.7 billion of public sector construction projects to ease pressure on red-hot building costs in the next two years.
This is the third time since November that public projects have been postponed amid high demand for building contractors and materials.

A total of $4.7 billion of public sector projects will now be pushed back to 2010 and beyond, the Building and Construction Authority (BCA) said in a statement.

'That's good news,' said the chief executive of property firm Overseas Union Enterprise, Mr Thio Gim Hock. 'Construction costs have more than doubled in the past year. It's hard to find contractors to bid for a job. When I tender, a lot of them decline because they are too busy.'

The latest move means projects such as the Jurong General Hospital will be deferred to 2010, although the hospital will still be ready and open as scheduled by 2015.

Other delayed projects include less urgent improvement works, but public housing and upgrading programmes will not be affected.

The move will allow construction resources to be used to ensure the timely delivery of big projects such as the integrated resorts, Marina Bay Financial Centre and the Downtown MRT line. Most should be finished by late next year.

The BCA also said that the resources freed up then can be used later for the deferred projects, ensuring a better spread of construction resources beyond next year.

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[SIZE="5"]Published July 24, 2008

Condo land falling below building costs[/SIZE]

Developers of entry-level housing squeezed by weak selling prices and surge in construction costs

By KALPANA RASHIWALA

(SINGAPORE) For the first time in at least two decades, construction costs for some 99-year condo sites are actually higher than their land costs. This is taking place against the backdrop of soaring construction prices and a weak outlook for the prices at which private housing developments can be sold.

Some industry watchers expect this trend for entry-level private housing to continue - which suggests that the government may have to be prepared to accept declining land bids at state tenders.

'Right now, developers can bid up to about $200-250 per square foot of potential gross floor area at most for suburban condo sites, which translates to breakeven costs of $650-700 psf. However, if construction costs continue to go up and selling prices continue to drop, there's not much else you can do except to lower your land bids. The question is what is the government's threshold for pain?' a seasoned developer said.

In May, URA (Urban Redevelopment Authority) awarded a site in Choa Chu Kang for $203 psf per plot ratio (psf ppr). 'So the $200 psf ppr mark has been tested. The next question is: Will the government be prepared to sell sites at even lower prices, say, around $150 psf ppr?' he added. This $203 psf ppr was below the construction cost of a new development on the site.

Last month's winning bid of $270 psf ppr by Frasers Centrepoint at a state tender for a plot at Woodleigh Close was also lower than the construction cost of about $300 psf of gross floor area (GFA) for mass-market condos, industry observers noted.

Meanwhile, constructions costs - after staying stagnant for several years - are now at record levels.

Construction cost consultancy Rider Levett Bucknall (RLB). said: 'Construction prices for medium-quality condominiums indicatively range from $260 psf of GFA to $320 psf of GFA in Q1 2008, and prices have risen further to $280 to $350 psf of GFA for Q2 2008,' it said. 'High demand and competition for limited resources, the lack of tendering capacity among contractors, sub-contractors and suppliers, and volatile commodity prices have contributed significantly to building tender price escalation,' the firm added.

Construction costs are estimated to have risen 20 to 25 per cent for Q4 2007 compared with the corresponding period in 2006 for average medium quality condominiums (for the upgraders' market).

While the trend of construction costs exceeding land costs has drawn more attention since the recent tender closings of Government Land Sales (GLS) sites, some observers say it surfaced as early as December last year, when Chip Eng Seng bought a plot at Elias Rd in Pasir Ris for $228 psf ppr.

In the same month, Frasers Centrepoint picked up a site at Lakeside Drive for $248 psf ppr - which was probably about equal to construction costs at the time.

Construction costs comprise not just the cost of building materials but also include factors such as workers' wages among others.

As for the mid-market and high-end residential sectors, land values would still be above their respective construction costs, although there have hardly been any land deals in these segments in recent months because of weaker homebuying sentiment.

Instead, developers have been focusing more on suburban sites suitable for being developed into mass-market private homes targeted at upgraders, as this is the sector where end-unit demand is relatively more resilient. Still, developers have had to be more prudent with their land bids.

'It's a simple equation, a function of selling price for the end-units against development cost and profit,' a property investor observes.

Buyers of mass-market condos are extremely price sensitive, while construction costs have been escalating. 'At the end of the day, something's got to give - in terms of a lower land bid,' observes Knight Frank managing director Tan Tiong Cheng.

'Developers have to allow a larger sum for contingencies because of the way construction material prices have been going up.

'The trend is likely to continue - until construction costs come down or selling prices of private homes go up again,' Mr Tan added.

For now the pressure on construction costs shows no signs of letting up. 'Given the large existing project commitments on hand, price escalation trends are set to continue for this year and may be in the order of 15 to 20 per cent,' RLB said.

via : http://forums.hardwarezone.com.sg/showthread.php?t=2035369&page=6

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Public housing hots up while private cools



SINGAPORE : Prices for public housing on the resale market have risen, while those for private property have moderated for the second quarter of 2008.

According to latest official figures, there has also been little upward movement in the private property rental market.

Data for the HDB resale and rental markets based on transactions in Q2 saw HDB's Resale Price Index (RPI) up 4.5 per cent, compared to the 3.7 per cent increase for the previous quarter.

Reflective of the interest in public housing was the rise in resale transactions, from about 6,360 cases in the first quarter to about 7,760 cases in the second quarter, an increase by about 22 per cent.

Meanwhile, subletting transactions in HDB flats increased by about 15 per cent to about 4,120 cases in the second quarter from about 3,580 cases in the first quarter.

In contrast, the private property market was a little more subdued, with home prices increasing 0.2 per cent, the third straight quarter of slower growth, signalling a definite slowing of the four-year housing boom.

Prices for non-landed properties saw a modest 0.1 per cent rise compared with 3.7 per cent in the previous quarter as prices for condominium and apartments in districts 9, 10, 11, downtown district and Sentosa fell 0.1 per cent compared to similar properties in areas outside of the region which rose between 0.7 and 0.9 per cent.

As for landed property, prices rose 0.6 per cent compared with 3.9 per cent in the previous quarter.

Indicative of the cooling in the property market are the 43,473 new units still unsold from a total supply of 67,569 uncompleted units from private housing projects.

This number includes more than 12,000 which developers have held back from launch and another 28,282 which are pending approval.

- CNA/sf

http://www.channelnewsasia.com/stories/singaporelocalnews/view/362702/1/.html

via : http://forums.vr-zone.com/showthread.php?t=306096

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http://www.asiaone.com/Business/My%2BMoney/Property/Story/A1Story20080729-79361.html

Older landed homes now within reach

By Joyce Teo

Owning a landed property may feel like a distant dream for some after the prices of such homes surged significantly last year, but the dream may not be as distant as it seems.

If one looks hard enough in suburban locations, such homes can be found for as little as $800,000.

The good news for potential buyers is that price growth in landed homes is slowing in line with the general market.

Indeed, suburban bungalows and terrace houses have already registered a drop in prices, according to data from Savills Singapore.

For instance, in the second quarter, prices of suburban terrace houses dropped 6.8per cent to an average price of $605 per sqft, compared with a 2.4per cent rise in the first quarter.

Overall, official data from the Urban Redevelopment Authority on Friday showed that landed home prices rose 0.6per cent in the second quarter, down from a rise of 3.9per cent in the first three months of the year, and 23.4per cent for the whole of last year.

While the downward growth trend may continue, landed home prices are at least supported by a limited supply of such homes and a relatively illiquid market, market watchers say.

As more houses are being converted into apartment blocks, landed homes could become rarer in 15 years' time, says the director of Savills Residential, Mr Ku Swee Yong.

He foresees an annual rise of at least 5per cent in the general landed home market in the next three years even as growth slows.

What to look out for

Those with a small budget of around $800,000 should check out locations such as the MacPherson area, or Jalan Hari Raya in the Thomson area, according to Mr Eugene Lim, assistant vice-president of ERA Asia-Pacific.

Those with a slightly bigger budget of around $1million might like to consider older, 99-year leasehold landed homes in Paya Lebar, Hougang and Rifle Range Road.

They could also look at the terrace houses in Choa Chu Kang, Kallang, Pasir Ris, Sengkang, Sembawang and Toa Payoh, or semi-detached homes in Jurong West.

A 2,399sqft terrace unit in Pasir Ris Heights, for example, was sold for $870,000 last month, while a bigger 3,674sqft unit in the same area went for $818,000 in April.

Generally, though, landed homes below $800,000 are few in number, are likely to be very old and are often single-storey terrace houses. Buyers would likely need to spend money on renovation, said Mr Lim.

With older homes, potential buyers should pay particular attention to the structure and look for signs of leakage, he said.

But even if a buyer has money set aside for renovation, said experts, he may find it tough securing a contractor, as the construction sector is stretched in the current market.

Aside from location and the cost of renovation, buyers should also consider the shape of the site on which the house sits.

'Odd-shaped land means there is less effective land area for built-up space, and that compromises on space maximisation as well as the prospect for redevelopment or even sub-division,' said the head of KF Property Network, Dr Tan Tee Khoon.

Fortunately, most houses sit on rectangular or square-shaped plots.

'Other practical considerations include ensuring that there is no termite problem and that the property has no illegal extensions or erection of structures,' he added.

Also, buyers typically want a landed home for their own use. Those buying for investment should note that landed homes are generally less attractive to tenants than condominium units because of the lack of facilities, said Savill's Mr Ku. Many tenants also do not want to be bothered with maintaining a landed property.

Median rents for suburban terrace units have remained stable this year at $1.84 psf - the same median rent level for semi-detached houses in the second quarter. Median rents for surburban bungalows have fallen to $2.40 psf in the second quarter, from $2.67 psf in general.

'In general, the lower rental value is reflected in the lower price on a per square foot basis. This is why landed prices are a laggard to the general market,' said Mr Ku.

This article was first published in The Straits Times on July 27, 2008.
First these people tell you price of Condo will continue to go up, will not be affected by market,etc. Now that price of Condo is not going up and in fact going down, these same "expert" are telling you that landed home price is *right*.

Ask yourself, what is their interests in this ?

Jay
Posted by: Posted at Tue Jul 29 14:03:50 SGT 2008
 
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     Strata board rules: It's no go for Tampines Court sale
     
 
     Sharp drop in growth of private home prices
     
 
     Yishun first to get facelift under new estate renewal plan
     
 
     Two Singapore office blocks sold for $40m
     
 
     Newton Suites shortlisted for International Highrise Award
     
 
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http://www.asiaone.com/Business/Story/A1Story20080727-79020.html

By Fiona Chan

Next year is likely to be a bad one for landlords.

A bumper crop of newly completed homes is scheduled to flood the market, making more apartments available for rent and pushing down rents, which saw record rises last year.

And with lower rents, private home prices - which industry observers say have reached their peak - may drop further, especially those in the prime districts.

A massive 13,399 new private homes will be ready for occupation next year. This is double the average in recent years and the most in a single year, according to property consultancy CB Richard Ellis (CBRE).

Official supply numbers show 10,500 completions next year and 11,800 the year after, but CBRE's analysis, based on construction progress and delays, reveals more completions next year.

It expects this new supply to depress rents by 5 to 10 per cent on average next year, coming on top of a global economic slowdown that might lead firms to hire fewer expatriates, the main source of tenants.

In the prime areas, rents could slide up to 15 per cent next year, on top of a decline that has already begun this year, predicted CBRE.

Popular rental areas such as the East Coast and Orchard will be among the worst hit as keen demand for homes there in recent years led developers to build aggressively.

An 'alarming' 3,341 new homes will be completed in the East Coast next year, double the number this year, CBRE said. Major projects in the area, which covers Katong and Marine Parade to Bedok and Changi, include the 562-unit One Amber and the 556-unit Casa Merah.

In the prime districts 9, 10 and 11, some 4,240 homes will be ready in areas such as Orchard, Holland, River Valley, Tanglin and Newton. RiverGate, with 545 units, is the biggest condominium scheduled to open its doors.

Suburban areas will also see a large jump in finished homes next year. In the north and north-west, for example, there will be 10 times more than this year.

But this is unlikely to result in a glut or lower rents as most suburban home buyers intend to occupy their units.

Property experts warn that many major prime projects to be ready this year and next are those that had attracted investors rather than owner-occupiers, which means their units will add to the rental supply.

'Some big condos in the downtown areas have a higher proportion of investors,' said Mr Colin Tan of property firm Chesterton International. These include the 1,111-unit Sail @ Marina Bay, which will be fully completed by the end of this year, and the 312-unit Clift in McCallum Road, expected next year.

'We don't even have to wait for the 14,000 homes next year; rents are already moderating and should come down in the third quarter,' he said, adding that landlords are lowering their asking rentals.

He cited the case of The Sea View in Amber Road, whose 546 units were completed this year. 'I asked someone there, how are the rents? He said: 'I'm not sure really, there's no demand'.'

This will be welcome news for renters, who have had to face ever-increasing rents over the last two years.

Rents have shot up 60 per cent on average since 2006 and even doubled in some places, thanks to an influx of expats and a shortage of rental homes.

For example, in Cuscaden Residences in the Tanglin area, a typical 1,485 sq ft unit could fetch $9,200 in monthly rents last year, from about $6,500 in 2005. This year, it has fallen to $8,100, according to recent reports. Next year, it could fall by another 10 per cent to $7,300, if CBRE's predictions come true.

Entrepreneur Sebastien Dechamps, 29, who came here from France three years ago and started a website for expatriates, said high rents have seen more expatriates moving away from the city to places in the north and the east.

'The fall in rental prices is definitely good news. It might encourage expats to move to the city, which is great because they can put more vibrancy back into the city and into its nightlife,' he said.

A fall in rentals generally leads to a fall in home prices for two reasons: landlords, less able to service their mortgages, are willing to let go of their units more cheaply, while would-be investors will only pay as much as a home can fetch in rents.

The supply situation is not likely to improve beyond 2010: The latest official data shows that apart from the 21,000 or so homes to be completed over the next two years, there are another 20,000 homes scheduled to be built in 2011.

But Savills Singapore's director of business development and marketing, Mr Ku Swee Yong, is still optimistic.

He expects higher than average housing demand during 'the next few years of growth', and believes that after accounting for demolitions of collective sale estates, the 'net supply should be balanced by demand'.

fiochan@sph.com.sgRecord 13,400 homes to be completed next year

By Fiona Chan

Next year is likely to be a bad one for landlords.

A bumper crop of newly completed homes is scheduled to flood the market, making more apartments available for rent and pushing down rents, which saw record rises last year.

And with lower rents, private home prices - which industry observers say have reached their peak - may drop further, especially those in the prime districts.

A massive 13,399 new private homes will be ready for occupation next year. This is double the average in recent years and the most in a single year, according to property consultancy CB Richard Ellis (CBRE).

Official supply numbers show 10,500 completions next year and 11,800 the year after, but CBRE's analysis, based on construction progress and delays, reveals more completions next year.

It expects this new supply to depress rents by 5 to 10 per cent on average next year, coming on top of a global economic slowdown that might lead firms to hire fewer expatriates, the main source of tenants.

In the prime areas, rents could slide up to 15 per cent next year, on top of a decline that has already begun this year, predicted CBRE.

Popular rental areas such as the East Coast and Orchard will be among the worst hit as keen demand for homes there in recent years led developers to build aggressively.

An 'alarming' 3,341 new homes will be completed in the East Coast next year, double the number this year, CBRE said. Major projects in the area, which covers Katong and Marine Parade to Bedok and Changi, include the 562-unit One Amber and the 556-unit Casa Merah.

In the prime districts 9, 10 and 11, some 4,240 homes will be ready in areas such as Orchard, Holland, River Valley, Tanglin and Newton. RiverGate, with 545 units, is the biggest condominium scheduled to open its doors.

Suburban areas will also see a large jump in finished homes next year. In the north and north-west, for example, there will be 10 times more than this year.

But this is unlikely to result in a glut or lower rents as most suburban home buyers intend to occupy their units.

Property experts warn that many major prime projects to be ready this year and next are those that had attracted investors rather than owner-occupiers, which means their units will add to the rental supply.

'Some big condos in the downtown areas have a higher proportion of investors,' said Mr Colin Tan of property firm Chesterton International. These include the 1,111-unit Sail @ Marina Bay, which will be fully completed by the end of this year, and the 312-unit Clift in McCallum Road, expected next year.

'We don't even have to wait for the 14,000 homes next year; rents are already moderating and should come down in the third quarter,' he said, adding that landlords are lowering their asking rentals.

He cited the case of The Sea View in Amber Road, whose 546 units were completed this year. 'I asked someone there, how are the rents? He said: 'I'm not sure really, there's no demand'.'

This will be welcome news for renters, who have had to face ever-increasing rents over the last two years.

Rents have shot up 60 per cent on average since 2006 and even doubled in some places, thanks to an influx of expats and a shortage of rental homes.

For example, in Cuscaden Residences in the Tanglin area, a typical 1,485 sq ft unit could fetch $9,200 in monthly rents last year, from about $6,500 in 2005. This year, it has fallen to $8,100, according to recent reports. Next year, it could fall by another 10 per cent to $7,300, if CBRE's predictions come true.

Entrepreneur Sebastien Dechamps, 29, who came here from France three years ago and started a website for expatriates, said high rents have seen more expatriates moving away from the city to places in the north and the east.

'The fall in rental prices is definitely good news. It might encourage expats to move to the city, which is great because they can put more vibrancy back into the city and into its nightlife,' he said.

A fall in rentals generally leads to a fall in home prices for two reasons: landlords, less able to service their mortgages, are willing to let go of their units more cheaply, while would-be investors will only pay as much as a home can fetch in rents.

The supply situation is not likely to improve beyond 2010: The latest official data shows that apart from the 21,000 or so homes to be completed over the next two years, there are another 20,000 homes scheduled to be built in 2011.

But Savills Singapore's director of business development and marketing, Mr Ku Swee Yong, is still optimistic.

He expects higher than average housing demand during 'the next few years of growth', and believes that after accounting for demolitions of collective sale estates, the 'net supply should be balanced by demand'.

fiochan@sph.com.sg

[zuoom]

via : http://forums.hardwarezone.com.sg/showthread.php?t=2043129

AFTER several failed attempts to get a new HDB flat, he was ready to give up and pay more for a private property.

Then, home-buyer Dave Tan had a stroke of luck - or so it seemed. He found a new five-room HDB flat at City View @ Boon Keng.

This is the second public housing project to be built and sold by private developers. Hoi Hup Sunway Development is the developer.

Even though it cost a whopping $675,000 - not cheap for a new HDB flat - Mr Tan was okay with the price.

But his happiness was short-lived.

The 30-year-old and his fiancee, who are getting married next year, found out that they may not be able to finance their new home.

PENALTY

They are having difficulties securing a home loan and may even have to pay a penalty to give up the flat.

The couple's combined income is about $6,000, said Mr Tan.

They put up an option fee of about $33,000 for the flat two months ago.

But the Housing Development Board (HDB) rejected their loan application for 90 per cent of the cost of the flat last month.

This is because Mr Tan's director's fee can't be used for credit assessment, and his fiancee didn't have the pre-requisite three months of continuous employment for the same company.

Mr Tan runs a serviced office business.

His fiancee quit her last job in February and started work as a personal assistant last month.

Upon appeal, HDB said they will be willing to give the couple a loan of about $150,000, but rest will have to be paid in cash and out of their CPF.

Mr Tan said: 'Where can I find so much money to pay for the flat?

'We were very happy when we managed to get the flat. But with this loan issue, I really doubt we can afford to get the place now.'

The 714-unit condo-like development will be ready only in2011.

Mr Tan said he and his fiancee had tried balloting for a new flat three times last year.

On two occasions, the flats they wanted were already taken up. On another occasion, they didn't get a chance to choose a unit because all were taken up.

Mr Tan said he had approached a few banks for loans, but the maximum they would lend was about $400,000, still about $270,000 shy of the purchase price.

To make matters worse, if he defaults on this flat purchase, he'll have to pay a penalty of about $8,000 to the developer. This is about 25 per cent of the option fee which he paid for the place.

'The developer said that since the sale didn't go through, we have to forfeit part of the option fee,' he said.

TEARS

'My girlfriend is so upset that she cried and lost so much sleep over the penalty. She said she has never lost so much money before in her life.'

The couple had borrowed the money to pay the option fee from their relatives.

A very frustrated Mr Tan thinks that it's unfair to be penalised because it wasn't a case of them not wanting to proceed with the deal.

Rather, they can't accept the deal now because of loan problems.

A spokesman for Hoi Hup said that in cases where the applicants do not meet the eligibility requirements for the flat, there will be a full refund of the option to purchase fee.

But if the withdrawal to buy the flat is due to other reasons, such as loan issues, the applicants face the prospect of forfeiting 25 per cent of their option fee.

The spokesman declined to comment on the above case and would only say they are reviewing MrTan's appeal to waive the penalty.

http://www.asiaone.com/Business/My%2BMoney/Property/Story/A1Story20080521-66293.html

HDB: Buy a flat within your means
Thu, May 22, 2008
The New Paper

WHEN contacted, HDB said Mr Dave Tan and his fiancee had approached the loan counters at the Design, Build and Sell Scheme (DBSS) site for an estimate of their loan eligibility.
Related link:
» System should be based on preferences, not luck
part 2

The estimates given were based strictly on the verbal information provided and not verified with supporting documents.

Those seeking an estimate were informed of this.

And when quoting his income, HDB said Mr Tan did not indicate that his income was based on director's fees.

However, based on documents submitted in the actual loan application, Mr Tan's income was based on fees derived from his role as a director in a company.

Furthermore, Mr Tan's fiancee had started work in a new company for less than three months.

STEADY INCOME

A HDB spokesman said: 'Director fees are specifically listed as income not considered for credit assessment as they are not considered a steady source of income.

'In addition, applicants are required to have three month's income from their employment before their pay can be used for purpose of credit assessment to ensure that they are able to sustain regular instalment payments.'

HDB's guidelines on income that can be considered for credit assessment are on the HDB InfoWEB at www.hdb.gov.sg.

HDB said that flat buyers should exercise financial prudence and buy a flat within their means as the purchase of a flat is a major financial commitment.

The necessary information and aids to help home-buyers with their financial planning are provided on the HDB InfoWEB.

Added the spokesman: 'Mr Tan could consider buying a more affordable flat from the resale market if they are in urgent need of one, or apply for one under the HDB's Built-to-Order exercises.'

via : http://business.asiaone.com/Business/My%2BMoney/Property/Story/A1Story20080521-66291.html