Mar 6, 2010
30 years and counting
Location, amenities and friends are the reasons these home owners, who have lived in their flats for more than three decades, are staying put
By tay suan chiang
The HDB resale market is hot but for some home owners, selling off their homes for a quick buck is not on their minds.
Among them is sales executive Claudia Woo, 31, who has lived in the same three-room HDB flat all her life. She lives with her retiree father, her assistant teacher mother and her brother, who is a civil servant.
The Woos bought their flat in Henderson Road for slightly more than $13,000 in 1974. Today, the flat is worth about $310,000. Despite this, the family has no plans to move.
'This area has great amenities - we have two wet markets, and both Redhill and Tiong Bahru MRT stations are nearby,' says Ms Woo. 'Getting to town is also easy, so we have no plans to shift.'
An HDB study showed that nearly one in 10 flats transacted last year involved homes that were owned for less than three years. In 2006, these accounted for only 6 per cent of all transactions.
Last month, Prime Minister Lee Hsien Loong urged Singaporeans to treasure their homes and not use them as an easy means to make a quick buck or settle a debt.
Speaking at a Chinese New Year dinner, he said: 'Property is for people to buy to live in, not for speculating.' He also added that home owners can pass their flats on to their children.
Housewife Tan Lee Lee, 65, plans to do just that. She moved into her four-room Ang Mo Kio flat 25 years ago. Her youngest son, Bryan, 33, is still single. 'I won't sell the flat so I can give it to him eventually,' she says.
Life! meets four home owners, who each have been living in the same flat for more than 30 years, and finds out why they have no plans to move out.
taysc@sph.com.sg
Hip Holland Village is her 'kampung'
Who: Madam S.H. Khoo
Age: 63
Occupation: Retiree
Lives in: Four-room HDB flat in Holland Drive
Bought it for: $15,500 in 1974
Now it is worth: $440,000
Length of stay: 36 years
It is just a stone's throw away from the hip and happening Holland Village, but for Madam Khoo, home feels 'like a kampung'.
The divorced retiree lives with her son-in-law's aunt in a four-room HDB flat in Holland Drive.
'Most of the neighbours have been living here for more than three decades, and we all know and look out for one another. I don't want to move because I like the kampung feel of the area,' says Madam Khoo.
'If I had to move, I would miss my neighbours most.'
She had previously been living in a three-room flat in Tanglin Halt and moved to Holland Drive in 1974 when she needed more room.
Her two grown-up children moved out when they got married.
Despite spending more than 30 years here, Madam Khoo is still staying put.
'The area is quiet. You can hear the birds chirping in the evening and it is very accessible,' she says.
Her flat was upgraded in the late 1990s and she got a bigger kitchen.
It takes her 15 minutes to walk to the nearby Bouna Vista MRT station and it takes about 30 minutes by bus to Orchard Road.
Her grandchildren who live in Holland Road are a five-minute cab ride away.
She adds that shopping for groceriesis also a breeze as there is a wet market nearby, and supermarkets FairPriceand Cold Storage are both within walking distance.
The area used to have a cinema that has since made way for a shopping mall. Holland Village has also become noisier at night, but Madam Khoo does not mind.
'I've grown to love this place and can even walk around it with my eyes closed,' she says. 'I'm definitely not selling my home for now.'
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'I've grown to love this place and can even walk around it with my eyes closed'
Madam Khoo who has lived in her Holland Drive flat for 36 years
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Kitchen big enough for 16 people
Name: Madam Ger Hui Luan and Mr Koh Min Chai
Ages: 70 and 76
Occupation: Housewife and general worker
Live in: A three-room HDB flat in Ang Mo Kio Avenue 10
Bought it for: $17,000 in 1979
Now it is worth: $290,000
Length of stay: 31 years
For the Koh family, the annual reunion dinner on the eve of Chinese New Year is a rowdy affair. About 16 adults and children squeeze around a dining table in the kitchen, enjoying a steamboat meal.
'It can be a tight squeeze but we all enjoy it,' says Madam Ger. 'My kitchen is big enough for all of us. If I moved into one of the newer flats, we wouldn't be able to do this.'
The family moved into the flat in 1979 from a one-room unit in Aljunied. 'It became too small as we have four children,' says Madam Ger. Their three-room apartment in Ang Mo Kio provided the family with much needed space.
Today, the couple's three married sons have moved out. Their only daughter still lives with them. The couple, who have been married since 1956, use one bedroom, while daughter Guek Liang takes the other.
'When I was taking care of my grandchildren a few years ago, Guek Liang's bedroom was big enough to fit six of them,' says Madam Ger. 'Nowadays, bedrooms are so small.'
It is not just because of the spacious flat that the Kohs have no plans to move out.
'This area is very convenient,' says Madam Ger, who heads across the road to the wet market on alternate days to shop for groceries. The avid cook whips up dinner every night.
There is a bus stop at the foot of the block with direct buses to Ang Mo Kio Interchange, Bedok and Chinatown.
From her airy living room, Madam Ger can see Bishan in the distance.
What used to be grassland in front of her block is now an industrial park, with low-rise flatted factories, but she does not mind.
'There is no noise or fumes, and the factories don't block my view,' she says.
Her neighbours on the same floor are also long-time residents. 'Only two families have moved out.'
She says that 'some residents in this block moved out and ended up moving back here again, because they miss the area'. She adds: 'There is really no need for us to move.'
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'Some residents in this block moved out and ended up moving back here again because they miss the area'
Madam Ger, who has been living in her Ang Mo Kio flat for 31 years
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Their flat has a sea view
Name: Madam Chan Ah Loi and MrTok Kin Guan
Ages: 68 and 67
Occupations: Housewife and general worker
Live in: A three-room HDB flat in Clementi West Street 1
Bought it for: $17,300 in 1979
Now it is worth: $270,000
Length of stay: 31 years
Madam Chan and Mr Tok are certainly doting parents: When their children wanted a home with a view of the sea, they obliged and the family moved into a three-room flat in West Coast with a sea view.
Previously, they lived in a one-room flat in Bukit Merah.
'We moved also because there wasn't enough space in that small flat for three growing children,' says Madam Chan.
Mr Tok adds that 'this location is ideal as there are schools nearby, so the kids did not have to travel too far to study'.
Two children have married and moved out. Their eldest daughter, who is single, lives with them.
Besides the availability of schools nearby, the couple are staying put because of the area's amenities.
West Coast Park and Clementi Woods, which are within walking distance of their home, have proven to be popular with the couple, especially Madam Chan who heads to Clementi Woods for daily walks.
She also goes to the wet market across the road every day to buy groceries and to chat with her neighbours at the hawker centre. If she needs some cool respite, sheheads for West Coast Plaza mall just next door to 'enjoy the air-conditioning'.
Her only complaint about the location is that there is no MRT station nearby. The nearest, Clementi, is a five-minute bus ride away.
There are direct buses to Chinatown, Orchard, Bugis and Bedok, which the couple find useful.
As for that sea view, it became partially blocked when in 1993, a residential block on top of what is now West Coast Plaza was built. 'Now we can see only some parts of the sea,' she says.
Still, the couple have no plans to move. 'I find it troublesome to get settled into a new area. I'll have to make new friends again,' she says.
Her immediate neighbours are also long-time residents. Only one family has moved out.
She is hoping that eventually 'one of my children can live next door'. But it does not look like that will happen any time soon.
'We are so comfortable here that no one wants to move,' she says with a laugh.
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'Now we can see only some parts of the sea'
Madam Chan on how her view from her West Coast flat has been affected by a residential block that was built in 1993
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Her first and only home
Name: Kervis Ho
Age: 39
Occupation: Administrative executive
Lives in: A three-room HDB flat in Toa Payoh
Bought it for: $7,000 in 1969
Now it is worth: $320,000
Length of stay: 39 years
For Ms Ho, home has been this three-room flat in Toa Payoh since the day she was born.
In her childhood days, her mother, together with seven children, would sleep in one bedroom. Her late father had the other bedroom.
'It was indeed a squeeze,' recalls Ms Ho, the youngest in the family. The family lived in rental flats around Singapore before moving here.
Since 2004, she has been living on her own. Some of her siblings moved out when they got married. Her divorced mother lives with another single brother in Kallang Bahru. Her father, before he died, transferred the flat's title deed to her.
Though she finds the kitchen and toilet too small, she likes the flat's location as it is opposite Toa Payoh Central. 'Sometimes I cycle to FairPrice supermarket across the road or exercise at the nearby sports complex.'
Getting to town is easy, too. It is about 15 minutes by car. She can also take direct buses or the MRT.
About half of the neighbours in the same block arelong-time residents. 'They're mostly aunties and uncles,' says Ms Ho. 'We've known one another for a long time.'
Once, she left her keys in the door and went out. Her neighbour called her about it. 'She kept the keys for me for the day. We trust each other,' she says.
The flat was upgraded in 2003, when an extra room was added at the back of the apartment. But it was the renovation that MsHo had done in 2004 that she is most proud of.
Gone are the old cement flooring and messy cables. For $10,000, she put in new tiled flooring and gave the flat a fresh coat of paint. 'You can't tell that this is a 41-year-old flat,' she says.
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'In the future, I may pass it on to my nieces and nephews'
Ms Kervis Ho on her plan for the flat, which was given to her by her late father
Saturday, March 6, 2010
ST : Mah's own upgrading story
Mar 6, 2010
budget debate
Mah's own upgrading story
'When I was young, I lived in various places with my mother, who was a domestic servant. I lost my father when I was three years old, so we moved around a lot.
We stayed in a kampung in Lorong Ah Soo, which today has HDB flats and is in Cynthia Phua's (MP for Aljunied GRC) constituency. Every time I visit the flats there, I still remember where the kampung house was.
Then we moved to a shophouse in High Street. My mum was working for a High Street merchant at that time. Today, that is where the MTI (Ministry of Trade and Industry) and MOF (Ministry of Finance) are (in The Treasury building).
Then we moved to a room in Bugis Street. Today, it is Bugis Junction. There were 10 of us living in that room. We had one bed which slept five. It was raised so that another five could sleep underneath.
Then, I moved to Kim Keat Avenue with my aunt - eight of us in a three-room flat, sharing one toilet and bathroom, while my mother stayed in a one-room rental flat in Whampoa Road.
Later, we upgraded to a four-room flat in Toa Payoh.
That is a typical Singapore story for my generation. Start in a modest flat, work hard, accumulate savings, and upgrade over time. Then, if you need to, rightsize to a smaller flat.'
National Development Minister Mah Bow Tan recounting his childhood years growing up in various housing types.
budget debate
Mah's own upgrading story
'When I was young, I lived in various places with my mother, who was a domestic servant. I lost my father when I was three years old, so we moved around a lot.
We stayed in a kampung in Lorong Ah Soo, which today has HDB flats and is in Cynthia Phua's (MP for Aljunied GRC) constituency. Every time I visit the flats there, I still remember where the kampung house was.
Then we moved to a shophouse in High Street. My mum was working for a High Street merchant at that time. Today, that is where the MTI (Ministry of Trade and Industry) and MOF (Ministry of Finance) are (in The Treasury building).
Then we moved to a room in Bugis Street. Today, it is Bugis Junction. There were 10 of us living in that room. We had one bed which slept five. It was raised so that another five could sleep underneath.
Then, I moved to Kim Keat Avenue with my aunt - eight of us in a three-room flat, sharing one toilet and bathroom, while my mother stayed in a one-room rental flat in Whampoa Road.
Later, we upgraded to a four-room flat in Toa Payoh.
That is a typical Singapore story for my generation. Start in a modest flat, work hard, accumulate savings, and upgrade over time. Then, if you need to, rightsize to a smaller flat.'
National Development Minister Mah Bow Tan recounting his childhood years growing up in various housing types.
ST : Two next possible townships
Mar 6, 2010
BUDGET DEBATE
Two next possible townships
By Dickson Li
TENGAH and Simpang might be the next townships to be developed, Minister for National Development Mah Bow Tan said yesterday.
'Flat buyers need not fear that there are not enough flats,' Mr Mah said. 'When Punggol is fully built up, we will consider building in new areas such as Tengah and Simpang.'
The two areas - Simpang in the north-east, and Tengah in the west - were fielded as potential development sites as early as the 1990s.
Simpang town first made its appearance on the Urban Redevelopment Authority's 1991 Concept Plan, where it was mentioned as one of the next possible housing estates in the same breath as Punggol, Sembawang, and Sengkang.
Simpang town is located on the coast, bounded by the Strait of Johor to the north, Sembawang town to the west, Yishun town to the south and the mouth of the former Sungei Seletar to the east.
In the URA's Simpang development guide plan, the area was meant to be a waterfront town, featuring waterfront homes and sea sports facilities.
There were even plans for a light rail system through the area.
These grand plans were evidently shelved, however, as the area remains a mixture of forest and swamp. The Simpang training grounds were at one point in use by the Singapore Armed Forces artillery as a training ground.
There have been fewer designs on the area at Tengah - bounded by Brickland Road, the KJE, PIE and Bukit Batok Road.
Today, the forested piece of land remains an excellent source of wild durians.
However, a spokesman for the Ministry of National Development stressed that there are no concrete plans to develop the areas yet. He stressed that Mr Mah highlighted the two areas only to demonstrate the adequacy of housing space.
'(The) towns will only be developed at the appropriate time when there is sufficient demand,' said a spokesman for HDB. 'There was no prior commitment to develop both towns.
BUDGET DEBATE
Two next possible townships
By Dickson Li
TENGAH and Simpang might be the next townships to be developed, Minister for National Development Mah Bow Tan said yesterday.
'Flat buyers need not fear that there are not enough flats,' Mr Mah said. 'When Punggol is fully built up, we will consider building in new areas such as Tengah and Simpang.'
The two areas - Simpang in the north-east, and Tengah in the west - were fielded as potential development sites as early as the 1990s.
Simpang town first made its appearance on the Urban Redevelopment Authority's 1991 Concept Plan, where it was mentioned as one of the next possible housing estates in the same breath as Punggol, Sembawang, and Sengkang.
Simpang town is located on the coast, bounded by the Strait of Johor to the north, Sembawang town to the west, Yishun town to the south and the mouth of the former Sungei Seletar to the east.
In the URA's Simpang development guide plan, the area was meant to be a waterfront town, featuring waterfront homes and sea sports facilities.
There were even plans for a light rail system through the area.
These grand plans were evidently shelved, however, as the area remains a mixture of forest and swamp. The Simpang training grounds were at one point in use by the Singapore Armed Forces artillery as a training ground.
There have been fewer designs on the area at Tengah - bounded by Brickland Road, the KJE, PIE and Bukit Batok Road.
Today, the forested piece of land remains an excellent source of wild durians.
However, a spokesman for the Ministry of National Development stressed that there are no concrete plans to develop the areas yet. He stressed that Mr Mah highlighted the two areas only to demonstrate the adequacy of housing space.
'(The) towns will only be developed at the appropriate time when there is sufficient demand,' said a spokesman for HDB. 'There was no prior commitment to develop both towns.
TODAY Online : Local property websites are a hit
Local property websites are a hit
05:55 AM Mar 06, 2010
by Ephraim Seow ephraimseow@mediacorp.com.sg
SINGAPORE - The robust sentiment in the property market is spilling over to online property sites as visitor traffic continues to rise, according to website owners.
The site propertyguru.com.sg saw a 20 per cent spike in its January online traffic from December, said Mr Steve Melmush, its chief executive officer.
That totals to about 1.3 million visitors, of which 70 per cent were potential buyers, he reckoned.
Other sites like iproperty.com Singapore have also seen online visitor increase in January to about 11 times since 2008. From 64,000 hits in January two years ago, the number is now at 700,000 hits, said Mrs Serene Lam, the site's general manager.
Buyers have increasingly flocked online property sites for the breadth of information they carry on a wide range of properties. Listings on websites come with maps, photographs and virtual tour, which are not accessible in other platforms.
Other information may also include price transaction records for the property in the last three years.
About 85 per cent of buyers who visit propertyguru.com.sg are from Singapore, according to Mr Melmush. The site's visitors are mainly professionals, between 35 to 45 years old.
He noted that majority of online hits three years ago were mainly foreigners. These days, they have a mix of Singaporeans living overseas who want to partake in the booming property market and buy for retirement or investment.
Among the properties, condominiums are the most popular category for both propertyguru and iproperty. Apart from buyers, property agents have also seen the benefit of listing properties online.
Mr Melmush of propertyguru.com.sg said that about 12,000 agents use their site to post 25,000 listings every month.
"Online websites are viewed more often by direct buyers during the office hours. There are about 10 to 15 calls every week from the online listings and about 10 to 15 per cent of the units will be closed. Without co-broking, it results in substantial rewards," said Mr Rex Tan, senior group director of Dennis Wee Group.
Listing online costs about $300 per website per year compared to the $1,500 to $1,600 he would spend per month in newspaper listing.
Still, he believes that listing across various platforms would provide the best exposure and transactional prices for sellers.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
05:55 AM Mar 06, 2010
by Ephraim Seow ephraimseow@mediacorp.com.sg
SINGAPORE - The robust sentiment in the property market is spilling over to online property sites as visitor traffic continues to rise, according to website owners.
The site propertyguru.com.sg saw a 20 per cent spike in its January online traffic from December, said Mr Steve Melmush, its chief executive officer.
That totals to about 1.3 million visitors, of which 70 per cent were potential buyers, he reckoned.
Other sites like iproperty.com Singapore have also seen online visitor increase in January to about 11 times since 2008. From 64,000 hits in January two years ago, the number is now at 700,000 hits, said Mrs Serene Lam, the site's general manager.
Buyers have increasingly flocked online property sites for the breadth of information they carry on a wide range of properties. Listings on websites come with maps, photographs and virtual tour, which are not accessible in other platforms.
Other information may also include price transaction records for the property in the last three years.
About 85 per cent of buyers who visit propertyguru.com.sg are from Singapore, according to Mr Melmush. The site's visitors are mainly professionals, between 35 to 45 years old.
He noted that majority of online hits three years ago were mainly foreigners. These days, they have a mix of Singaporeans living overseas who want to partake in the booming property market and buy for retirement or investment.
Among the properties, condominiums are the most popular category for both propertyguru and iproperty. Apart from buyers, property agents have also seen the benefit of listing properties online.
Mr Melmush of propertyguru.com.sg said that about 12,000 agents use their site to post 25,000 listings every month.
"Online websites are viewed more often by direct buyers during the office hours. There are about 10 to 15 calls every week from the online listings and about 10 to 15 per cent of the units will be closed. Without co-broking, it results in substantial rewards," said Mr Rex Tan, senior group director of Dennis Wee Group.
Listing online costs about $300 per website per year compared to the $1,500 to $1,600 he would spend per month in newspaper listing.
Still, he believes that listing across various platforms would provide the best exposure and transactional prices for sellers.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
ST : Radical ideas to rein in flat prices
Mar 6, 2010
budget debate
Radical ideas to rein in flat prices
MND draws over 40 queries from MPs, more than any other ministry
By Fiona Chan
THE suggestions flew fast and furious yesterday as MP after MP rose in Parliament to speak on the hottest topic of the day: How to make housing more affordable and better for Singaporeans.
Proposals ranged from ideas already much-discussed - such as extending the minimum occupation period for HDB flat buyers to discourage speculation - to the new and extreme, including disallowing private property owners from buying HDB flats altogether.
A total of 15 MPs took turns to question the Ministry of National Development (MND) about its policies yesterday as Parliament kicked off the Committee of Supply debate, in which each ministry has to defend its spending plans for the coming financial year.
Another seven MPs are scheduled to query the MND on Monday when the debate resumes.
In all, the ministry, which covers housing and land-related matters, attracted more than 40 queries from MPs - more than any other ministry in the entire Committee of Supply debate.
Some of the most radical recommendations yesterday came from Mr Hri Kumar Nair (Bishan-Toa Payoh GRC), who proposed removing the income ceiling for HDB flat buyers so that any Singaporean who wants to buy a flat can do so.
However, private property owners should be forbidden from buying any HDB flats at all, he added.
To prevent speculation in the private property market, Mr Nair also suggested that foreigners who resell their property within three years of buying it should pay a tax on any profit they make.
Buying and selling the option to purchase a property should also be discouraged by making these options non-transferable or taxing gains made from these transactions, he said.
Mr Nair and Mr Cedric Foo (West Coast GRC) also mooted the idea of building a ready supply of new flats for buyers with urgent needs, rather than allocating units only under the Build-To-Order (BTO) scheme.
Alternatively, Mr Foo added, HDB could start building BTO flats sooner: after 50 per cent of the units had been booked, rather than the current 60 to 70 per cent of bookings required.
In response, Minister for National Development Mah Bow Tan said it is better to build flats based on real demand as demonstrated by actual bookings.
'If we built ahead of demand, we could end up with a large stock of unsold flats, as in the early 2000s,' he said.
He added that the waiting time of 'three years plus' for a BTO flat is no different from that of private developments. 'For those who cannot wait, they can buy from the resale market immediately, but at a premium for speed and choice.'
Mr Mah also addressed Mr Liang Eng Hwa's (Holland-Bukit Timah GRC) query about the BTO system needing to be tweaked as many applicants drop out of the queue when they cannot get their 'choice' flats.
While the system may not be ideal, it is a fair one, he said. 'There will be some flats which are not 'ideal'... We cannot promise everybody a flat of their choice.'
MPs including Dr Lim Wee Kiak (Sembawang GRC), Madam Ho Geok Choo (West Coast GRC) and Mr Masagos Zulkifli (Tampines GRC) had also raised concerns about speculation in the HDB market and high cash-over-valuation (COV) levels.
To this, Mr Mah stressed that 'the HDB resale market is a free market, and we should keep it that way'.
He said the COV is the result of negotiation between willing parties and reluctant buyers can always walk away.
In any case, Mr Mah added, the bulk of resale flat buyers are citizens who do not own private property, and 'there is no evidence' that specific buyer groups such as permanent residents or private property owners are driving up prices.
fiochan@sph.com.sg
--------------------------------------------------------------------------------
HOW ABOUT...
...prohibiting private property owners from buying HDB flats?
...removing the income ceiling for HDB flat buyers?
...taxing foreigners who resell property within 3 years of buying it?
...building a ready supply of new flats for buyers with urgent needs?
budget debate
Radical ideas to rein in flat prices
MND draws over 40 queries from MPs, more than any other ministry
By Fiona Chan
THE suggestions flew fast and furious yesterday as MP after MP rose in Parliament to speak on the hottest topic of the day: How to make housing more affordable and better for Singaporeans.
Proposals ranged from ideas already much-discussed - such as extending the minimum occupation period for HDB flat buyers to discourage speculation - to the new and extreme, including disallowing private property owners from buying HDB flats altogether.
A total of 15 MPs took turns to question the Ministry of National Development (MND) about its policies yesterday as Parliament kicked off the Committee of Supply debate, in which each ministry has to defend its spending plans for the coming financial year.
Another seven MPs are scheduled to query the MND on Monday when the debate resumes.
In all, the ministry, which covers housing and land-related matters, attracted more than 40 queries from MPs - more than any other ministry in the entire Committee of Supply debate.
Some of the most radical recommendations yesterday came from Mr Hri Kumar Nair (Bishan-Toa Payoh GRC), who proposed removing the income ceiling for HDB flat buyers so that any Singaporean who wants to buy a flat can do so.
However, private property owners should be forbidden from buying any HDB flats at all, he added.
To prevent speculation in the private property market, Mr Nair also suggested that foreigners who resell their property within three years of buying it should pay a tax on any profit they make.
Buying and selling the option to purchase a property should also be discouraged by making these options non-transferable or taxing gains made from these transactions, he said.
Mr Nair and Mr Cedric Foo (West Coast GRC) also mooted the idea of building a ready supply of new flats for buyers with urgent needs, rather than allocating units only under the Build-To-Order (BTO) scheme.
Alternatively, Mr Foo added, HDB could start building BTO flats sooner: after 50 per cent of the units had been booked, rather than the current 60 to 70 per cent of bookings required.
In response, Minister for National Development Mah Bow Tan said it is better to build flats based on real demand as demonstrated by actual bookings.
'If we built ahead of demand, we could end up with a large stock of unsold flats, as in the early 2000s,' he said.
He added that the waiting time of 'three years plus' for a BTO flat is no different from that of private developments. 'For those who cannot wait, they can buy from the resale market immediately, but at a premium for speed and choice.'
Mr Mah also addressed Mr Liang Eng Hwa's (Holland-Bukit Timah GRC) query about the BTO system needing to be tweaked as many applicants drop out of the queue when they cannot get their 'choice' flats.
While the system may not be ideal, it is a fair one, he said. 'There will be some flats which are not 'ideal'... We cannot promise everybody a flat of their choice.'
MPs including Dr Lim Wee Kiak (Sembawang GRC), Madam Ho Geok Choo (West Coast GRC) and Mr Masagos Zulkifli (Tampines GRC) had also raised concerns about speculation in the HDB market and high cash-over-valuation (COV) levels.
To this, Mr Mah stressed that 'the HDB resale market is a free market, and we should keep it that way'.
He said the COV is the result of negotiation between willing parties and reluctant buyers can always walk away.
In any case, Mr Mah added, the bulk of resale flat buyers are citizens who do not own private property, and 'there is no evidence' that specific buyer groups such as permanent residents or private property owners are driving up prices.
fiochan@sph.com.sg
--------------------------------------------------------------------------------
HOW ABOUT...
...prohibiting private property owners from buying HDB flats?
...removing the income ceiling for HDB flat buyers?
...taxing foreigners who resell property within 3 years of buying it?
...building a ready supply of new flats for buyers with urgent needs?
ST : Black & white financial district
Mar 6, 2010
Black & white financial district
one-north site may turn into hedge-fund capital
By Francis Chan
ST PHOTO: CAROLINE CHIA
THE cluster of 16 black-and-white bungalows in Buona Vista was once home to British troops stationed in colonial Singapore. But the rustic area, called Nepal Hill, may soon turn into the country's newest financial district.
JTC Corporation - the agency developing and marketing Nepal Hill - said in a statement yesterday that it is in talks with investment managers about the site.
'Nepal Hill is one of the heritage areas within one-north,' it said. 'It is also an alternative location for investment managers which is envisioned to strengthen Singapore's value proposition as a premier asset management centre in Asia.'
Bloomberg News reported yesterday that Singapore is planning to create its own hedge-fund capital modelled after Greenwich, a town in the United States with a high concentration of hedge funds.
Hedge funds are large privately-run investment funds that have increasingly dominated the global investment scene in recent years.
Bloomberg said the Monetary Authority of Singapore and JTC Corp had courted fund managers by inviting them to visit Nepal Hill at a networking event in January.
The site is part of one-north, JTC Corp's 200 ha innovation and research hub, which includes science and technology research centre Fusionopolis and biomedical hub Biopolis.
JTC Corp said two years ago that the bungalows - commonly referred to as black-and-whites due to their white-washed walls and black frames - were being refurbished for 'adaptive use'.
But the rare and lush enclave, just a 14-minute train-ride from Raffles Place and across the road from trendy dining spots in Rochester Park, could offer hedge funds and other high-end financial service providers an alternative to concrete skyscrapers downtown.
With Asia leading the global economic recovery, Singapore continues to be an attractive location for firms looking to expand in the region.
The proposed increase in regulation by Western authorities, coupled with tax and regulatory incentives here make it more appealing for hedge funds to operate in the Lion City.
Details are still sketchy as far as rental rates and how the site will be further developed are concerned, but the response from hedge funds have been mixed so far.
Aisling Analytics' Michael Coleman told Bloomberg his firm will look at Nepal Hill as a potential location when its lease at Suntec City is up for renewal. 'I've visited and think it's a very interesting development and a great alternative to a traditional office,' said the hedge fund managing director.
'You're surrounded by greenery, have your own garden to enjoy and the area is rapidly developing.'
However, Man Investments' executive director Timothy Peach, who has also visited the site, feels that Nepal Hill would not work for his company, which is based at One George Street. 'Almost all of our clients are based in the CBD, and we have to be close to them,' said Mr Peach, who lives in a black-and-white off Tanglin Road.
'It's a nice little idea but definitely not suitable for us because we're one of the largest hedge fund companies in the world employing some 1,500 people globally.'
franchan@sph.com.sg
Black & white financial district
one-north site may turn into hedge-fund capital
By Francis Chan
ST PHOTO: CAROLINE CHIA
THE cluster of 16 black-and-white bungalows in Buona Vista was once home to British troops stationed in colonial Singapore. But the rustic area, called Nepal Hill, may soon turn into the country's newest financial district.
JTC Corporation - the agency developing and marketing Nepal Hill - said in a statement yesterday that it is in talks with investment managers about the site.
'Nepal Hill is one of the heritage areas within one-north,' it said. 'It is also an alternative location for investment managers which is envisioned to strengthen Singapore's value proposition as a premier asset management centre in Asia.'
Bloomberg News reported yesterday that Singapore is planning to create its own hedge-fund capital modelled after Greenwich, a town in the United States with a high concentration of hedge funds.
Hedge funds are large privately-run investment funds that have increasingly dominated the global investment scene in recent years.
Bloomberg said the Monetary Authority of Singapore and JTC Corp had courted fund managers by inviting them to visit Nepal Hill at a networking event in January.
The site is part of one-north, JTC Corp's 200 ha innovation and research hub, which includes science and technology research centre Fusionopolis and biomedical hub Biopolis.
JTC Corp said two years ago that the bungalows - commonly referred to as black-and-whites due to their white-washed walls and black frames - were being refurbished for 'adaptive use'.
But the rare and lush enclave, just a 14-minute train-ride from Raffles Place and across the road from trendy dining spots in Rochester Park, could offer hedge funds and other high-end financial service providers an alternative to concrete skyscrapers downtown.
With Asia leading the global economic recovery, Singapore continues to be an attractive location for firms looking to expand in the region.
The proposed increase in regulation by Western authorities, coupled with tax and regulatory incentives here make it more appealing for hedge funds to operate in the Lion City.
Details are still sketchy as far as rental rates and how the site will be further developed are concerned, but the response from hedge funds have been mixed so far.
Aisling Analytics' Michael Coleman told Bloomberg his firm will look at Nepal Hill as a potential location when its lease at Suntec City is up for renewal. 'I've visited and think it's a very interesting development and a great alternative to a traditional office,' said the hedge fund managing director.
'You're surrounded by greenery, have your own garden to enjoy and the area is rapidly developing.'
However, Man Investments' executive director Timothy Peach, who has also visited the site, feels that Nepal Hill would not work for his company, which is based at One George Street. 'Almost all of our clients are based in the CBD, and we have to be close to them,' said Mr Peach, who lives in a black-and-white off Tanglin Road.
'It's a nice little idea but definitely not suitable for us because we're one of the largest hedge fund companies in the world employing some 1,500 people globally.'
franchan@sph.com.sg
ST : In HDB living, 'give and take is often necessary'
Mar 6, 2010
budget debate
In HDB living, 'give and take is often necessary'
By Sue-Ann Chia
NATIONAL Development Minister Mah Bow Tan yesterday addressed the issue of flat owners up in arms over the fact that new rental flats will be built in their neighbourhoods.
Appealing for their understanding, he said: 'In land-scarce Singapore, give and take is often necessary to make space for the different groups in our society.'
He was replying to Madam Ho Geok Choo (West Coast GRC) during the debate on his ministry's budget estimates.
She brought up residents' grievances that they had not been consulted about the move to build rental flats in their neighbourhoods.
Mr Mah said residents were informed of construction works before these started.
'As far as possible, HDB will minimise blockage and inconvenience from the rental blocks. As for concerns about resale prices, HDB's data suggests that rental blocks alone do not affect prices,' he added.
Responding to demand from Singaporeans, the Housing Board recently decided to build 7,000 more rental flats in various parts of Singapore over the next three years.
This will increase the supply of rental flats to 50,000 units.
Combined with changes to eligibility rules, the increased supply will halve waiting time for such flats - from 21 months a year ago to 12 months now.
This way, the Government ensures that the truly needy get rental flats faster, Mr Mah noted in response to Mr Teo Ser Luck (Pasir Ris-Punggol GRC) and Madam Ho.
Mr Teo recounted the story of a couple with two young children - aged two and four - who appealed to him for help. They lived in a room in a friend's house, but because their friend needed the room back, they 'were extremely anxious and helpless' while waiting for a rental flat to be allocated to them.
Said Mr Teo, who is also Senior Parliamentary Secretary at the Ministry of Community Development, Youth and Sports: 'Time is of the essence... While they are waiting, they can't afford to live anywhere else, (so) they end up living outdoors.'
Mr Mah assured MPs that the HDB 'has a heart' and will help those in genuine need.
But he also pointed out: 'The problem is that sometimes people take advantage of HDB's kindness.'
He cited the case of a resident who did not pay his loan instalments for three years, resulting in the HDB having to acquire the flat back from him.
'There is a limit to compassion. Decisive action is needed to prevent households from spiralling further into debt, but HDB will always ensure that they have viable housing options,' said Mr Mah.
budget debate
In HDB living, 'give and take is often necessary'
By Sue-Ann Chia
NATIONAL Development Minister Mah Bow Tan yesterday addressed the issue of flat owners up in arms over the fact that new rental flats will be built in their neighbourhoods.
Appealing for their understanding, he said: 'In land-scarce Singapore, give and take is often necessary to make space for the different groups in our society.'
He was replying to Madam Ho Geok Choo (West Coast GRC) during the debate on his ministry's budget estimates.
She brought up residents' grievances that they had not been consulted about the move to build rental flats in their neighbourhoods.
Mr Mah said residents were informed of construction works before these started.
'As far as possible, HDB will minimise blockage and inconvenience from the rental blocks. As for concerns about resale prices, HDB's data suggests that rental blocks alone do not affect prices,' he added.
Responding to demand from Singaporeans, the Housing Board recently decided to build 7,000 more rental flats in various parts of Singapore over the next three years.
This will increase the supply of rental flats to 50,000 units.
Combined with changes to eligibility rules, the increased supply will halve waiting time for such flats - from 21 months a year ago to 12 months now.
This way, the Government ensures that the truly needy get rental flats faster, Mr Mah noted in response to Mr Teo Ser Luck (Pasir Ris-Punggol GRC) and Madam Ho.
Mr Teo recounted the story of a couple with two young children - aged two and four - who appealed to him for help. They lived in a room in a friend's house, but because their friend needed the room back, they 'were extremely anxious and helpless' while waiting for a rental flat to be allocated to them.
Said Mr Teo, who is also Senior Parliamentary Secretary at the Ministry of Community Development, Youth and Sports: 'Time is of the essence... While they are waiting, they can't afford to live anywhere else, (so) they end up living outdoors.'
Mr Mah assured MPs that the HDB 'has a heart' and will help those in genuine need.
But he also pointed out: 'The problem is that sometimes people take advantage of HDB's kindness.'
He cited the case of a resident who did not pay his loan instalments for three years, resulting in the HDB having to acquire the flat back from him.
'There is a limit to compassion. Decisive action is needed to prevent households from spiralling further into debt, but HDB will always ensure that they have viable housing options,' said Mr Mah.
ST : Lift upgrades: Town councils to receive help
Mar 6, 2010
budget debate
Lift upgrades: Town councils to receive help
TOWN councils can look forward to government help in paying for lift upgrading.
Senior Minister of State for National Development Grace Fu said it is considering a one-off subsidy for town councils, estimated at $130 million in total.
The amount each will receive will depend partly on the complexity and scale of the lift upgrading project, she said yesterday.
Town councils will be given the details later this year.
They now co-pay the cost of the Lift Upgrading Programme (LUP) to make it more affordable for residents.
While this is well-intended and should be upheld, it must be ensured that this co-payment 'does not overstrain the town councils' ability to meet other cyclical works, which are also for the benefit of residents', said Ms Fu.
She added that even though the Government bears the bulk of the cost of the LUP, at $5.5 billion, town councils still have to co-pay about $360 million in total - not a small sum.
This can pose a 'significant burden' for some town councils, especially those with a high concentration of flats built in the 1980s, when homes were built to allow greater privacy. These flats will require costlier lift projects.
Ms Fu was answering questions from MPs, such as Mr Ahmad Magad (Pasir-Ris Punggol GRC) and Mr Masagos Zulkifli (Tampines GRC), on the lift upgrading burden on town councils.
She also provided an update on the LUP, saying it was 'on track'.
The Government has identified more than 90 per cent of the blocks eligible for lift upgrading, and 50 per cent have works completed or ongoing, she said.
The HDB will select the remaining blocks for upgrading over the next two years or so and the whole programme will be completed by 2014, as earlier announced.
budget debate
Lift upgrades: Town councils to receive help
TOWN councils can look forward to government help in paying for lift upgrading.
Senior Minister of State for National Development Grace Fu said it is considering a one-off subsidy for town councils, estimated at $130 million in total.
The amount each will receive will depend partly on the complexity and scale of the lift upgrading project, she said yesterday.
Town councils will be given the details later this year.
They now co-pay the cost of the Lift Upgrading Programme (LUP) to make it more affordable for residents.
While this is well-intended and should be upheld, it must be ensured that this co-payment 'does not overstrain the town councils' ability to meet other cyclical works, which are also for the benefit of residents', said Ms Fu.
She added that even though the Government bears the bulk of the cost of the LUP, at $5.5 billion, town councils still have to co-pay about $360 million in total - not a small sum.
This can pose a 'significant burden' for some town councils, especially those with a high concentration of flats built in the 1980s, when homes were built to allow greater privacy. These flats will require costlier lift projects.
Ms Fu was answering questions from MPs, such as Mr Ahmad Magad (Pasir-Ris Punggol GRC) and Mr Masagos Zulkifli (Tampines GRC), on the lift upgrading burden on town councils.
She also provided an update on the LUP, saying it was 'on track'.
The Government has identified more than 90 per cent of the blocks eligible for lift upgrading, and 50 per cent have works completed or ongoing, she said.
The HDB will select the remaining blocks for upgrading over the next two years or so and the whole programme will be completed by 2014, as earlier announced.
ST : HDB rules change
Mar 6, 2010
HDB rules change
3 years before you can sell resale flats
By Joyce Teo
BUYERS of non-subsidised HDB resale flats must now occupy their flats for at least three years before they can sell, under new rules unveiled yesterday.
This is up from 2-1/2 years for buyers with HDB loans and one year for buyers with bank loans or no loan.
The move, effective yesterday, is seen as a government effort to curb speculative buying and selling of public housing.
Home hunters have expressed dismay in recent months that speculators may be pushing up HDB resale flat prices.
Property consultants said the move is set to nip speculation in the bud but is not likely to result in lower flat prices.
The move comes after an HDB study found that a growing number of flat owners were selling flats within three years.
In late January, National Development Minister Mah Bow Tan flagged a review by HDB of its rules, with a view to stamping out possible speculation.
In Parliament yesterday, Mr Mah said said more flat owners had been selling flats as soon as the minimum period was up, although the numbers were not large.
He added: 'However, if the trend continues, buyers who genuinely need housing could be crowded out.'
He was responding to MP Ang Mong Seng's request for a review of the one-year minimum period applying to those with bank loans or no loan.
'HDB flats are provided primarily for owner-occupation and not speculative profit or rental return,' said Mr Mah.
HDB said in a statement that the change meant demand would more accurately reflect interest from buyers who wish to occupy flats.
Different rules apply to subsidised buyers who receive HDB grants.
Home hunter Sofian Buang, 33, a loading officer, said: 'My biggest concern is getting a roof for my family, now that I have a daughter. I am looking for a resale flat to settle in, not to sell or to rent out.'
ERA Asia-Pacific associate director Eugene Lim said the change would remove buyers who wanted to flip HDB flats after a year. 'With a smaller group chasing after HDB resale flats, price increases will slow down,' he said.
Demand for resale flats outweighs supply so prices will still rise, but perhaps at a slower pace, said C&H Realty managing director Albert Lu.
Mr Steven Tan, executive director of OrangeTee's residential division, said the change would cut speculation but that the Government should look at private property owners buying HDB flats to rent out right away.
If demand is growing and fewer people choose to sell because they want to lease their flats out, prices will rise, he said.
Mr Mah said that of the 682,000 flats that are eligible for subletting, only 3 per cent are sublet, suggesting that most flat owners are buying their flats for occupation, and not rental.
Amid concerns of runaway HDB prices, other MPs yesterday raised questions, including a possible ban on some buyers.
'There is a populist suggestion that we should ban private property owners from buying HDB flats,' said Mr Mah. But if the Government did so, what about HDB owners buying private property, he said.
Most resale flat buyers are citizens who do not own any private property, he said, adding that there was no evidence that specific buyer groups, like PRs and private property owners, were driving up prices.
He said buyers who did not want to pay very high prices could walk away.
Some other key changes unveiled yesterday include allowing upgraders and those who downsize to apply for a second concessionary HDB loan. This could push up resale activity for smaller flats in the resale market, said PropNex chief executive Mohamed Ismail.
The HDB study found that last year, 9 per cent or nearly one in 10 resale flats sold had been owned for under three years. Between 2005 and 2007, the figure was just 6 per cent of sales.
joyceteo@sph.com.sg
HDB rules change
3 years before you can sell resale flats
By Joyce Teo
BUYERS of non-subsidised HDB resale flats must now occupy their flats for at least three years before they can sell, under new rules unveiled yesterday.
This is up from 2-1/2 years for buyers with HDB loans and one year for buyers with bank loans or no loan.
The move, effective yesterday, is seen as a government effort to curb speculative buying and selling of public housing.
Home hunters have expressed dismay in recent months that speculators may be pushing up HDB resale flat prices.
Property consultants said the move is set to nip speculation in the bud but is not likely to result in lower flat prices.
The move comes after an HDB study found that a growing number of flat owners were selling flats within three years.
In late January, National Development Minister Mah Bow Tan flagged a review by HDB of its rules, with a view to stamping out possible speculation.
In Parliament yesterday, Mr Mah said said more flat owners had been selling flats as soon as the minimum period was up, although the numbers were not large.
He added: 'However, if the trend continues, buyers who genuinely need housing could be crowded out.'
He was responding to MP Ang Mong Seng's request for a review of the one-year minimum period applying to those with bank loans or no loan.
'HDB flats are provided primarily for owner-occupation and not speculative profit or rental return,' said Mr Mah.
HDB said in a statement that the change meant demand would more accurately reflect interest from buyers who wish to occupy flats.
Different rules apply to subsidised buyers who receive HDB grants.
Home hunter Sofian Buang, 33, a loading officer, said: 'My biggest concern is getting a roof for my family, now that I have a daughter. I am looking for a resale flat to settle in, not to sell or to rent out.'
ERA Asia-Pacific associate director Eugene Lim said the change would remove buyers who wanted to flip HDB flats after a year. 'With a smaller group chasing after HDB resale flats, price increases will slow down,' he said.
Demand for resale flats outweighs supply so prices will still rise, but perhaps at a slower pace, said C&H Realty managing director Albert Lu.
Mr Steven Tan, executive director of OrangeTee's residential division, said the change would cut speculation but that the Government should look at private property owners buying HDB flats to rent out right away.
If demand is growing and fewer people choose to sell because they want to lease their flats out, prices will rise, he said.
Mr Mah said that of the 682,000 flats that are eligible for subletting, only 3 per cent are sublet, suggesting that most flat owners are buying their flats for occupation, and not rental.
Amid concerns of runaway HDB prices, other MPs yesterday raised questions, including a possible ban on some buyers.
'There is a populist suggestion that we should ban private property owners from buying HDB flats,' said Mr Mah. But if the Government did so, what about HDB owners buying private property, he said.
Most resale flat buyers are citizens who do not own any private property, he said, adding that there was no evidence that specific buyer groups, like PRs and private property owners, were driving up prices.
He said buyers who did not want to pay very high prices could walk away.
Some other key changes unveiled yesterday include allowing upgraders and those who downsize to apply for a second concessionary HDB loan. This could push up resale activity for smaller flats in the resale market, said PropNex chief executive Mohamed Ismail.
The HDB study found that last year, 9 per cent or nearly one in 10 resale flats sold had been owned for under three years. Between 2005 and 2007, the figure was just 6 per cent of sales.
joyceteo@sph.com.sg
ST : HDB flats: Facts & Myths
Mar 6, 2010
BUDGET DEBATE
HDB flats: Facts & Myths
NATIONAL Development Minister Mah Bow Tan spent some time in Parliament yesterday addressing popular misconceptions about Singapore's public housing market.
MYTH: There are not enough HDB flats to meet demand.
HIS RESPONSE:
· The HDB released 13,500 new flats last year and will release another 12,000 or more this year. This is more than the total number of flats in Clementi or Jurong East (about 23,000 flats each).
· The massive oversubscription rates for new flats are misleading. That is because half the number of flat applicants choose not to book a flat when invited to do so. Many say this is because they could not get a flat of their choice, yet in recent selection exercises, one-third rejected flats on the first day of selection, when all the flats were available.
· Some first-time buyers have complained that they have tried repeatedly to get a flat to no avail. But when the HDB reviewed 477 such cases in the last six months, it found only 29 appeals (6 per cent) were genuine.
CASE STUDY: Mr C complained about his lack of success in getting a flat. The HDB's checks found that he had submitted four applications, three of which were in highly popular mature estates. In six months, he consecutively rejected three offers of flats: one offer of 121 flats in Punggol/Sengkang because he had been 'targeting a unit in Buangkok'; another offer of 143 flats in Punggol because 'the units left are facing the mosque'; and a third offer of 14 flats in Serangoon, Yishun, Ang Mo Kio, Tampines and Woodlands because these were not his 'choice' flats.
MYTH: HDB flats are unaffordable.
HIS RESPONSE:
· On top of the CPF Housing Grant of $30,000 or $40,000, there is an Additional Housing Grant (AHG) for lower-income families of up to $40,000. As of Jan 31, the Government disbursed more than $330 million in AHG to more than 20,000 families.
· The median house price is 5.8 times the median household income in Singapore. In comparison, the ratio is 7.1 in London and 19.8 in Hong Kong.
· The average mortgage payment for new flats in non-mature estates sold in 2009 was 22 per cent of monthly household income. This is well below the affordability benchmark of 30 per cent to 35 per cent.
· Four out of five Singaporean new flat buyers service their housing loans from CPF savings, without any cash payment.
CASE STUDY: Mr and Mrs S, with a $4,500 monthly income, bought a four-room flat in Punggol for $297,900. They received $10,000 in grants and took a concessionary loan of $268,100 (90 per cent of the price) from the HDB. The couple's monthly instalment is $1,073, or 24 per cent of their income. They can use $1,035 from the CPF to service the mortgage and end up paying only $38 monthly in cash.
MYTH: PRs push up prices.
HIS RESPONSE:
· The median cash-over-valuation (COV) paid by permanent residents have been the same as the median COV nationwide for the last two quarters.
· Cases of PRs paying high COV are the exception. Of 37,205 resale transactions in 2009, 58 cases had COV exceeding $70,000. Of this, only eight (14 per cent) involved PRs.
MYTH: Private property owners push up prices.
HIS RESPONSE:
· Their number is not large enough to push up prices. Of the 58 resale transactions last year with COV exceeding $70,000, only 11 cases (19 per cent) involved private property owners.
MYTH: Subletting of HDB flats is rampant.
HIS RESPONSE:
· Of the 682,000 flats that have fulfilled current Minimum Occupation Period requirements, only 3 per cent are sublet. This suggests most flat owners are buying their flats for occupation, and not rental.
BUDGET DEBATE
HDB flats: Facts & Myths
NATIONAL Development Minister Mah Bow Tan spent some time in Parliament yesterday addressing popular misconceptions about Singapore's public housing market.
MYTH: There are not enough HDB flats to meet demand.
HIS RESPONSE:
· The HDB released 13,500 new flats last year and will release another 12,000 or more this year. This is more than the total number of flats in Clementi or Jurong East (about 23,000 flats each).
· The massive oversubscription rates for new flats are misleading. That is because half the number of flat applicants choose not to book a flat when invited to do so. Many say this is because they could not get a flat of their choice, yet in recent selection exercises, one-third rejected flats on the first day of selection, when all the flats were available.
· Some first-time buyers have complained that they have tried repeatedly to get a flat to no avail. But when the HDB reviewed 477 such cases in the last six months, it found only 29 appeals (6 per cent) were genuine.
CASE STUDY: Mr C complained about his lack of success in getting a flat. The HDB's checks found that he had submitted four applications, three of which were in highly popular mature estates. In six months, he consecutively rejected three offers of flats: one offer of 121 flats in Punggol/Sengkang because he had been 'targeting a unit in Buangkok'; another offer of 143 flats in Punggol because 'the units left are facing the mosque'; and a third offer of 14 flats in Serangoon, Yishun, Ang Mo Kio, Tampines and Woodlands because these were not his 'choice' flats.
MYTH: HDB flats are unaffordable.
HIS RESPONSE:
· On top of the CPF Housing Grant of $30,000 or $40,000, there is an Additional Housing Grant (AHG) for lower-income families of up to $40,000. As of Jan 31, the Government disbursed more than $330 million in AHG to more than 20,000 families.
· The median house price is 5.8 times the median household income in Singapore. In comparison, the ratio is 7.1 in London and 19.8 in Hong Kong.
· The average mortgage payment for new flats in non-mature estates sold in 2009 was 22 per cent of monthly household income. This is well below the affordability benchmark of 30 per cent to 35 per cent.
· Four out of five Singaporean new flat buyers service their housing loans from CPF savings, without any cash payment.
CASE STUDY: Mr and Mrs S, with a $4,500 monthly income, bought a four-room flat in Punggol for $297,900. They received $10,000 in grants and took a concessionary loan of $268,100 (90 per cent of the price) from the HDB. The couple's monthly instalment is $1,073, or 24 per cent of their income. They can use $1,035 from the CPF to service the mortgage and end up paying only $38 monthly in cash.
MYTH: PRs push up prices.
HIS RESPONSE:
· The median cash-over-valuation (COV) paid by permanent residents have been the same as the median COV nationwide for the last two quarters.
· Cases of PRs paying high COV are the exception. Of 37,205 resale transactions in 2009, 58 cases had COV exceeding $70,000. Of this, only eight (14 per cent) involved PRs.
MYTH: Private property owners push up prices.
HIS RESPONSE:
· Their number is not large enough to push up prices. Of the 58 resale transactions last year with COV exceeding $70,000, only 11 cases (19 per cent) involved private property owners.
MYTH: Subletting of HDB flats is rampant.
HIS RESPONSE:
· Of the 682,000 flats that have fulfilled current Minimum Occupation Period requirements, only 3 per cent are sublet. This suggests most flat owners are buying their flats for occupation, and not rental.
BT : Real brick and mortar war rages silently
Business Times - 06 Mar 2010
Real brick and mortar war rages silently
'Precast' may be the magic bullet but the construction sector is dodging it. Why?
By JOYCE HOOI
AS 'levy' rapidly became the new four-letter word among the 10,000-odd construction firms in Singapore this week, others were looking past the simplicity of the foreign worker levy hike.
There were other bigger words to worry about - five-syllable ones such as 'productivity' and 'buildability', according to industry experts who saw the levy as part of the carrot-and-stick mix to prod the local construction industry towards Japanese or Australian levels of productivity.
While unskilled foreign workers might become collateral damage in the battle for productivity, the real war is not being fought on-site and against foreign workers. It is being fought off-site and against the many links in the pre-construction process.
More assembling than building
Widely acknowledged as a forerunner in bringing Singapore up to speed with Japan and Australia is the use of precast components. Precast concrete, for example, is manufactured off-site in reusable moulds and then brought on-site to be assembled in buildings.
'With traditional building, things can go wrong such as the concrete site mix might not be good or it might not be cured properly. Precast concrete is made in a factory, under controlled and stringent conditions which are much more efficient,' said Eugene Seah, joint managing director of construction consultants Davis Langdon & Seah Singapore Pte Ltd.
While buildings built by the Housing & Development Board already feature precast components, there is ample room in private sector construction for precast material. 'In Singapore, the use of precast is mostly perfunctory - in staircases, rubbish chutes, and drain covers. Very few projects use them in main areas,' said Ashvin Kumar, president of the Singapore Institute of Architects.
The use of precast components appears to turbo-charge productivity. While a brick wall requires five to six bricklayers to put up and one or two labourers to assist them, a precast panel needs only four people to erect, without the tedious tasks of mixing and spreading mortar.
Where math becomes complicated
Weighing up the payoffs and trade-offs of precast, however, exemplifies the multitude of factors that have confounded contractors who want to make the push for productivity.
Precast materials are not cheap, pointed out Lum Chang Building Contractors' executive director, Tan Wei Pin. 'Precast materials incur heavy transportation costs. They can be 20-30 per cent more expensive than casting in situ,' said Mr Tan.
Even after taking into account the levy hike, he reckoned that the net outcome would still present a larger bill to construction firms to foot.
The back of the envelope, however, becomes much messier after labour is squared off against precast cost premiums.
'Although there is a premium to pay for precast, buildings generally get finished earlier and can be open for business faster. That means that income can be realised earlier hence decreasing the cost of borrowings for example,' said Mr Seah. 'There is a very fine line in the cost-benefit analysis.'
Software over hard labour
Experts believe that a lot of inefficiency can be removed from local construction even before it actually begins.
'I once worked on a warehouse in the UK. We spent nine months on design, and six months on building with little variation,' said Mr Seah.
A similar building in Singapore would have taken only six months to design but 10-12 months to build because of the many variations.
'What I have experienced is that if we spend more time upfront knowing what is needed and iron out the designs, there would be lesser changes during the construction phase,' said Mr Seah.
The Singapore Institute of Architects' Mr Kumar is also advocating a longer lead-time for the consolidation of tender documents. Currently, missing information in the documentation leads to abortive works on-site, he said.
Developers might be less than enthusiastic about building in more pre-construction time in an industry where land costs account for 60 per cent or more of development costs. 'There is a need to start work fast,' Mr Seah observed.
While more efficient approaches such as Building Information Modelling and value management could theoretically lead to fewer foreign workers, so embedded is industry inertia that the problem has to be solved backwards - firms' payrolls will first have to come under pressure before they make the changes that lighten these very payrolls. The emphasis on software over brute force means that the estimated growing demand for design planning and consulting will see white edging out blue in the collar stakes.
The construction dilemma
While the government is offering incentives to balance out the levy hikes, this carrot-stick mixture has to work on a dizzyingly large variety of donkeys. Some firms that are already largely mechanised reckon that they are close to the ceiling for automation. 'We work with steel structures. I don't think we can improve mechanisation any more,' said Lim Bong Guan, managing director of Anderco Pte Ltd.
Others have pointed out conditions overseas that cannot be replicated locally.
'In the West, qualified engineers are prepared to do more than an engineer's job and don't mind carrying things. Here, it's the Bangladeshi worker doing the carrying,' said the chief executive officer of CSC Holdings Limited, See Yen Tarn, who expects his monthly labour bill to increase by $50,000 to $70,000 after levies kick in fully.
The language problem also persists. While local workers overseas share a language, information here has to be duplicated or triplicated. 'You need to to tell the foreman something, who in turn needs another translator to pass it on to the workers,' said Mr Seah.
The final score
With the interim numbers unclear, the industry is divided on the final figure but leaning towards higher tender costs. 'We will have to bill the end user. The tender costs will have to be higher,' said Elvin Koh, Samwoh Corporation's managing director.
'For new contracts, the costs will definitely be passed on. The subcontractors are also going to build in the increased levies when they bill us,' said Lum Chang's Mr Tan, who expects building costs to increase by 1-2 per cent by 2012.
And if firms switch to precast, won't the demand raise its cost even more? Not necessarily. 'If more of the private sector uses precast materials, supply will rise to meet demand and market forces will make precast prices more competitive,' said Mr Kumar.
If the same principle can be applied to design software and automation, construction costs may ease and end users may not have to bear higher prices in the long run.
But it is a question of when the demand for precast components reaches the tipping point that gets the supply ball rolling. Till it does, costs will rise. As the sector fights its internal battle, the clock is ticking.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Real brick and mortar war rages silently
'Precast' may be the magic bullet but the construction sector is dodging it. Why?
By JOYCE HOOI
AS 'levy' rapidly became the new four-letter word among the 10,000-odd construction firms in Singapore this week, others were looking past the simplicity of the foreign worker levy hike.
There were other bigger words to worry about - five-syllable ones such as 'productivity' and 'buildability', according to industry experts who saw the levy as part of the carrot-and-stick mix to prod the local construction industry towards Japanese or Australian levels of productivity.
While unskilled foreign workers might become collateral damage in the battle for productivity, the real war is not being fought on-site and against foreign workers. It is being fought off-site and against the many links in the pre-construction process.
More assembling than building
Widely acknowledged as a forerunner in bringing Singapore up to speed with Japan and Australia is the use of precast components. Precast concrete, for example, is manufactured off-site in reusable moulds and then brought on-site to be assembled in buildings.
'With traditional building, things can go wrong such as the concrete site mix might not be good or it might not be cured properly. Precast concrete is made in a factory, under controlled and stringent conditions which are much more efficient,' said Eugene Seah, joint managing director of construction consultants Davis Langdon & Seah Singapore Pte Ltd.
While buildings built by the Housing & Development Board already feature precast components, there is ample room in private sector construction for precast material. 'In Singapore, the use of precast is mostly perfunctory - in staircases, rubbish chutes, and drain covers. Very few projects use them in main areas,' said Ashvin Kumar, president of the Singapore Institute of Architects.
The use of precast components appears to turbo-charge productivity. While a brick wall requires five to six bricklayers to put up and one or two labourers to assist them, a precast panel needs only four people to erect, without the tedious tasks of mixing and spreading mortar.
Where math becomes complicated
Weighing up the payoffs and trade-offs of precast, however, exemplifies the multitude of factors that have confounded contractors who want to make the push for productivity.
Precast materials are not cheap, pointed out Lum Chang Building Contractors' executive director, Tan Wei Pin. 'Precast materials incur heavy transportation costs. They can be 20-30 per cent more expensive than casting in situ,' said Mr Tan.
Even after taking into account the levy hike, he reckoned that the net outcome would still present a larger bill to construction firms to foot.
The back of the envelope, however, becomes much messier after labour is squared off against precast cost premiums.
'Although there is a premium to pay for precast, buildings generally get finished earlier and can be open for business faster. That means that income can be realised earlier hence decreasing the cost of borrowings for example,' said Mr Seah. 'There is a very fine line in the cost-benefit analysis.'
Software over hard labour
Experts believe that a lot of inefficiency can be removed from local construction even before it actually begins.
'I once worked on a warehouse in the UK. We spent nine months on design, and six months on building with little variation,' said Mr Seah.
A similar building in Singapore would have taken only six months to design but 10-12 months to build because of the many variations.
'What I have experienced is that if we spend more time upfront knowing what is needed and iron out the designs, there would be lesser changes during the construction phase,' said Mr Seah.
The Singapore Institute of Architects' Mr Kumar is also advocating a longer lead-time for the consolidation of tender documents. Currently, missing information in the documentation leads to abortive works on-site, he said.
Developers might be less than enthusiastic about building in more pre-construction time in an industry where land costs account for 60 per cent or more of development costs. 'There is a need to start work fast,' Mr Seah observed.
While more efficient approaches such as Building Information Modelling and value management could theoretically lead to fewer foreign workers, so embedded is industry inertia that the problem has to be solved backwards - firms' payrolls will first have to come under pressure before they make the changes that lighten these very payrolls. The emphasis on software over brute force means that the estimated growing demand for design planning and consulting will see white edging out blue in the collar stakes.
The construction dilemma
While the government is offering incentives to balance out the levy hikes, this carrot-stick mixture has to work on a dizzyingly large variety of donkeys. Some firms that are already largely mechanised reckon that they are close to the ceiling for automation. 'We work with steel structures. I don't think we can improve mechanisation any more,' said Lim Bong Guan, managing director of Anderco Pte Ltd.
Others have pointed out conditions overseas that cannot be replicated locally.
'In the West, qualified engineers are prepared to do more than an engineer's job and don't mind carrying things. Here, it's the Bangladeshi worker doing the carrying,' said the chief executive officer of CSC Holdings Limited, See Yen Tarn, who expects his monthly labour bill to increase by $50,000 to $70,000 after levies kick in fully.
The language problem also persists. While local workers overseas share a language, information here has to be duplicated or triplicated. 'You need to to tell the foreman something, who in turn needs another translator to pass it on to the workers,' said Mr Seah.
The final score
With the interim numbers unclear, the industry is divided on the final figure but leaning towards higher tender costs. 'We will have to bill the end user. The tender costs will have to be higher,' said Elvin Koh, Samwoh Corporation's managing director.
'For new contracts, the costs will definitely be passed on. The subcontractors are also going to build in the increased levies when they bill us,' said Lum Chang's Mr Tan, who expects building costs to increase by 1-2 per cent by 2012.
And if firms switch to precast, won't the demand raise its cost even more? Not necessarily. 'If more of the private sector uses precast materials, supply will rise to meet demand and market forces will make precast prices more competitive,' said Mr Kumar.
If the same principle can be applied to design software and automation, construction costs may ease and end users may not have to bear higher prices in the long run.
But it is a question of when the demand for precast components reaches the tipping point that gets the supply ball rolling. Till it does, costs will rise. As the sector fights its internal battle, the clock is ticking.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
CNA : Drop-out rate 50% for selection of BTO flats in 2009
Drop-out rate 50% for selection of BTO flats in 2009
By Joanne Chan, Channel NewsAsia | Posted: 05 March 2010 2128 hrs
SINGAPORE: The Housing and Development Board said that one in two applicants did not book a flat when invited to do so under the Build-To-Order (BTO) system.
National Development Minister Mah Bow Tan revealed this figure in Parliament on Friday. He added that the high application rates for recent BTO launches do not reflect true demand for flats.
Mr Mah noted that 22 per cent of the applications for BTO projects in the last four months are repeat applications from the same households. He gave the example of a recent BTO project, Fernvale Palms, that had just completed selection.
He said: "By the end of the selection exercise just this week, 44 per cent of first-timers who were invited to select a flat declined, did not do so.
"They were given the chance; they went, they saw, they said, 'No, thank you, I don't want.' - even when all the flats were available on the first day. 34 per cent of applicants gave up their chance to select a flat."
Members of Parliament, such as Cedric Foo and Cynthia Phua, had questioned if there was a sufficient supply of housing.
Responding to them, Mr Mah said that HDB received nearly 480 appeals in the last six months from home buyers who said they could not get a flat. But he added that only six per cent of these applicants genuinely did not have a chance to choose a flat in at least two BTO exercises in non-mature estates.
Mr Mah said that the government is committed towards helping Singaporeans own their first home. But he urged home buyers to be realistic.
He said: "It is not possible to promise every applicant who buys direct from HDB his 'choice' flat, at the floor of his choice; at the place of his choice; at the time of his choice; and at the price he wants. Our land is limited, especially in the mature estates. So is our housing budget, generous as it is.
"Buyers have to decide on the tradeoffs they want to make - whether they should keep on trying for their 'choice' flat, and delay setting up their home, or to settle first for one within their budget and move to a better flat later when they have built up their finances."
- CNA/sc
By Joanne Chan, Channel NewsAsia | Posted: 05 March 2010 2128 hrs
SINGAPORE: The Housing and Development Board said that one in two applicants did not book a flat when invited to do so under the Build-To-Order (BTO) system.
National Development Minister Mah Bow Tan revealed this figure in Parliament on Friday. He added that the high application rates for recent BTO launches do not reflect true demand for flats.
Mr Mah noted that 22 per cent of the applications for BTO projects in the last four months are repeat applications from the same households. He gave the example of a recent BTO project, Fernvale Palms, that had just completed selection.
He said: "By the end of the selection exercise just this week, 44 per cent of first-timers who were invited to select a flat declined, did not do so.
"They were given the chance; they went, they saw, they said, 'No, thank you, I don't want.' - even when all the flats were available on the first day. 34 per cent of applicants gave up their chance to select a flat."
Members of Parliament, such as Cedric Foo and Cynthia Phua, had questioned if there was a sufficient supply of housing.
Responding to them, Mr Mah said that HDB received nearly 480 appeals in the last six months from home buyers who said they could not get a flat. But he added that only six per cent of these applicants genuinely did not have a chance to choose a flat in at least two BTO exercises in non-mature estates.
Mr Mah said that the government is committed towards helping Singaporeans own their first home. But he urged home buyers to be realistic.
He said: "It is not possible to promise every applicant who buys direct from HDB his 'choice' flat, at the floor of his choice; at the place of his choice; at the time of his choice; and at the price he wants. Our land is limited, especially in the mature estates. So is our housing budget, generous as it is.
"Buyers have to decide on the tradeoffs they want to make - whether they should keep on trying for their 'choice' flat, and delay setting up their home, or to settle first for one within their budget and move to a better flat later when they have built up their finances."
- CNA/sc
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