How about an ethnic integration grant?
Debate over ethnic quotas does not resolve issue that policy is perceived as a cost
05:55 AM Mar 08, 2010
by Yolanda Chin and Norman Vasu
IMPLEMENTED in 1989, the Ethnic Integration Policy (EIP) was driven by the desire to facilitate interaction between the different races in Singapore by preventing the formation of racial enclaves.
There has been much debate over the extension of the integration policy to permanent residents (PRs) but, it does not resolve a key issue at the heart of the policy. A fundamental problem of the EIP is that it is perceived to be a cost that has to be paid for racial harmony. Arguably, if the EIP is to continue playing its important role as a tool for racial harmony, it should not be viewed as a burden but should instead be seen in a far more positive light.
The PRICE of Harmony
The bugbear for many Singaporeans regardless of race stems from the problem of selling flats owing to the racial quota.
For the minorities, a common grouse is they have a depressed resale market in a demographically Chinese dominant Singapore. When a member of a minority race cannot sell a flat to a Chinese because of a quota ceiling that has been met, the flat is often sold below market rate.
Chinese who own homes in a traditionally minority dominant area may have to turn down willing minority buyers.
While the EIP's goal of racial harmony is laudable, it is unfortunate that such a policy is perceived to be a burden. Economically penalising Singaporeans seeking to secure their dream home sends a strong signal - a very wrong signal - of the cost of racial harmony on a personal level.
Over the years, the responses aimed at removing the economic sting of the EIP fall into two broad categories.
In the first, the responses have been either to scrap the policy or waive the quota on a case-by-case basis. While well-meaning, these suggestions are moot as the Government has continually maintained the EIP plays too critical a role at fostering racial harmony for it to be either abandoned or fudged.
In the second, the focus has been to alleviate the economic burden of the EIP.
Some have suggested a cost-sharing system that compensates home owners for the loss of their flats' value, a Government grant to compensate minority sellers for losses incurred, or even the buying back of flats by the Government from those who are unable to sell their homes.
Admittedly, the Government has attempted to ease the cost of the EIP over the years. Measures in place, include the deferment of loan repayments or the temporary reduction of repayments.
Unfortunately, the responses in this second category merely offer a patch to a systemic problem rather than a positive alternative. They seek to adapt the stick of the EIP rather than offer an incentive to make integration more enticing.
A third option
A possible way forward is to incorporate both sticks and carrots into achieving the desired outcome of racial harmony.
This could be achieved if the current system of deterring racial enclaves from forming is complemented with one that incentivises Singaporeans to embrace the ideal racial mix in each neighbourhood.
Akin to the HDB Family Grant which encourages Singaporeans to purchase flats near their parents or children in support of strengthening family ties, Singaporeans could be steered towards realising the desired racial complexion in each neighbourhood with what may be termed an "Ethnic Integration Grant".
The mechanics of the Ethnic Integration Grant are simple and complement the EIP.
To ensure that each neighbourhood is truly a representative microcosm of multiracial Singapore, there should not only be a maximum but also a minimum quota of households set for each neighbourhood that reflects the actual racial composition of Singapore.
However, unlike the maximum quota of the EIP which is a safety net against racial clustering, this minimum quota does not need to be mandatory.
HDB could post regular updates to inform potential buyers of the neighbourhoods in which the lower-bound quota for each race is not met. In this way, should they contribute to the attainment of the ideal racial mix in a neighbourhood, they will be rewarded with a housing grant.
To ensure that Singaporeans do not just pay lip service to upholding racial harmony, a pragmatic way of meaningfully internalising the value of racial harmony is to make its gains tangible. With the Ethnic Integration Grant complementing the EIP, Singaporeans could both be rewarded for contributing to the greater good while the EIP remains as the stick wielded as a last resort when the carrot fails to bait.
Yolanda Chin is Associate Research Fellow and
Norman Vasu is Assistant Professor at the
S. Rajaratnam School of International Studies, Nanyang Technological University. They are conducting research on issues
pertaining to the social fabric.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
Monday, March 8, 2010
TODAY Online : The quota and its limitations
The quota and its limitations
05:55 AM Mar 08, 2010
by Dr Gillian Koh
"It was not an experiment ... It was force majeure. We inflicted it on the people, we knew it would work, we knew it would be uncomfortable." (Minister Mentor Lee Kuan Yew, Jan 27, 2010, HDB Dialogue session)
THE issue of foreigner enclaves in Singapore's public housing estates has been gathering momentum since the middle of last year.
In January, Minister Mentor Lee Kuan Yew was asked if the Ethnic Integration Policy with its ethnic quotas in public housing estates might be extended to include new Singaporeans. And last Friday, the Government announced an extension of quotas to include permanent residents (PRs).
The concern, which forms the backdrop to this quota extension, is two-fold: First, that PRs might be out-bidding Singaporeans for resale flats; and second, that flats are being marketed on the basis of their attraction to certain nationalities.
The HDB stated in end-January that PRs were buyers of about 20 per cent of HDB resale flats, and 8 per cent of the 2.92 million residents living in public housing. Hence, the first concern can only be settled by evidence that PRs pay higher cash-over-valuation prices for flats.
The second is only a lightning rod for the lumpy distribution of foreigners, writ large, including those renting flats in our housing estates. The PRs now bear the brunt of this, while flat-owners are still at liberty to rent and therefore insert foreigners deep into our heartlands. For that reason, the rule may not be so effective, but perhaps it will salve over some public antipathy there has been on the issue.
So it seems that the overwhelming force of the state, or "force majeure" as MM Lee called it, has come down on the issue.
However, the law has its limitations. It is indeed only human to congregate with those whom one identifies with. In a foreign land, it is comforting and practical to live with people from one's homeland where possible.
With a critical mass, services and shops would similarly be drawn to provide a taste of home. If that is not possible, these amenities are often centralised and dispersed populations are then drawn to them when the need arises.
In this way, types of "bonding social capital" - which Harvard professor Robert Putnam conceptualised as the sociological superglue which brings people of similar backgrounds, be it nationality or ethnicity, together - happen more naturally and they reinforce their exclusive identities.
Types of "bridging social capital" - a sort of sociological WD-40 where there is a sense of affiliation, trust, shared resources and destiny among otherwise heterogeneous groups - are more challenging.
In Singapore, life is largely structured around four circles based on the notions of ethnicity - Chinese, Malay, Indian and the catch-all group "Others".
By administrative fiat, people in this national institution called public housing are dispersed and expected to integrate and bond in this "common space". Grassroots organisations are mobilised to do the work of developing "bridging social capital" within this diversity.
While HDB and PA surveys suggest improved neighbourly relations over time, I would wager that the over-whelming definition of life in the HDB estate in the minds of dwellers is not the horizontal one between neighbours but the vertical relationship with the Government.
This will range from the language of being stakeholders with the roof over their heads, to the language of being good citizens that have to keep their estates clean and safe, and clients subject to regulations on buying, selling, and use of their flats.
The horizontal relationship between neighbours, however, is relatively under-developed and remains so.
This resides in the goodwill of a few who might have the personality, the time and inclination to reach out to their fellow residents whether informally, or through formal grassroots organisations and programmes of the National Integration Council, which themselves are a construct of the state.
What are the ideals, the notions of being part of the Singapore Neighbourhood, its virtues, the civic values that define life in the heartlands? Do we know what these are? What are the non-threatening, friendship-based ways in which we develop these shared values?
Is it an exclusive set of traits, or can it extend itself to include the Myanmarese, the Bangladeshi, the Australian, the foreign national in our midst? Is it impossible for them "to speak our lingo", to adopt some of our norms like putting litter in the bin, and are we even all there yet. (The majority of those hauled up for littering are Singaporeans, and let us not split hairs over whether they are new or old Singaporeans.)
I recently noticed a photograph of auxiliary police standing over foreign workers accompanying a story that Cisco and Aetos guards have now been contracted to counsel and ensure that foreign workers do not foul up our estates or the other places that they like to congregate. I wondered if they will go away thinking that Singapore is a police state.
While that is at the level of transients and perhaps there are fewer who would want to invest time in befriending them, we know as citizens that we also prefer living in a place where we do not have to run into the law too often.
After all, a common grouse of life in Singapore is that we are too highly-regulated.
It does mean that we do not ask the Government to step in to structure so much of what should be our civic life that it crowds out any ground-up, authentic definition of who we are and what we are about.
We have to care and we have to take the time.
The writer is a senior research fellow at the Institute of Policy Studies, Lee Kuan Yew School of Public Policy.
05:55 AM Mar 08, 2010
by Dr Gillian Koh
"It was not an experiment ... It was force majeure. We inflicted it on the people, we knew it would work, we knew it would be uncomfortable." (Minister Mentor Lee Kuan Yew, Jan 27, 2010, HDB Dialogue session)
THE issue of foreigner enclaves in Singapore's public housing estates has been gathering momentum since the middle of last year.
In January, Minister Mentor Lee Kuan Yew was asked if the Ethnic Integration Policy with its ethnic quotas in public housing estates might be extended to include new Singaporeans. And last Friday, the Government announced an extension of quotas to include permanent residents (PRs).
The concern, which forms the backdrop to this quota extension, is two-fold: First, that PRs might be out-bidding Singaporeans for resale flats; and second, that flats are being marketed on the basis of their attraction to certain nationalities.
The HDB stated in end-January that PRs were buyers of about 20 per cent of HDB resale flats, and 8 per cent of the 2.92 million residents living in public housing. Hence, the first concern can only be settled by evidence that PRs pay higher cash-over-valuation prices for flats.
The second is only a lightning rod for the lumpy distribution of foreigners, writ large, including those renting flats in our housing estates. The PRs now bear the brunt of this, while flat-owners are still at liberty to rent and therefore insert foreigners deep into our heartlands. For that reason, the rule may not be so effective, but perhaps it will salve over some public antipathy there has been on the issue.
So it seems that the overwhelming force of the state, or "force majeure" as MM Lee called it, has come down on the issue.
However, the law has its limitations. It is indeed only human to congregate with those whom one identifies with. In a foreign land, it is comforting and practical to live with people from one's homeland where possible.
With a critical mass, services and shops would similarly be drawn to provide a taste of home. If that is not possible, these amenities are often centralised and dispersed populations are then drawn to them when the need arises.
In this way, types of "bonding social capital" - which Harvard professor Robert Putnam conceptualised as the sociological superglue which brings people of similar backgrounds, be it nationality or ethnicity, together - happen more naturally and they reinforce their exclusive identities.
Types of "bridging social capital" - a sort of sociological WD-40 where there is a sense of affiliation, trust, shared resources and destiny among otherwise heterogeneous groups - are more challenging.
In Singapore, life is largely structured around four circles based on the notions of ethnicity - Chinese, Malay, Indian and the catch-all group "Others".
By administrative fiat, people in this national institution called public housing are dispersed and expected to integrate and bond in this "common space". Grassroots organisations are mobilised to do the work of developing "bridging social capital" within this diversity.
While HDB and PA surveys suggest improved neighbourly relations over time, I would wager that the over-whelming definition of life in the HDB estate in the minds of dwellers is not the horizontal one between neighbours but the vertical relationship with the Government.
This will range from the language of being stakeholders with the roof over their heads, to the language of being good citizens that have to keep their estates clean and safe, and clients subject to regulations on buying, selling, and use of their flats.
The horizontal relationship between neighbours, however, is relatively under-developed and remains so.
This resides in the goodwill of a few who might have the personality, the time and inclination to reach out to their fellow residents whether informally, or through formal grassroots organisations and programmes of the National Integration Council, which themselves are a construct of the state.
What are the ideals, the notions of being part of the Singapore Neighbourhood, its virtues, the civic values that define life in the heartlands? Do we know what these are? What are the non-threatening, friendship-based ways in which we develop these shared values?
Is it an exclusive set of traits, or can it extend itself to include the Myanmarese, the Bangladeshi, the Australian, the foreign national in our midst? Is it impossible for them "to speak our lingo", to adopt some of our norms like putting litter in the bin, and are we even all there yet. (The majority of those hauled up for littering are Singaporeans, and let us not split hairs over whether they are new or old Singaporeans.)
I recently noticed a photograph of auxiliary police standing over foreign workers accompanying a story that Cisco and Aetos guards have now been contracted to counsel and ensure that foreign workers do not foul up our estates or the other places that they like to congregate. I wondered if they will go away thinking that Singapore is a police state.
While that is at the level of transients and perhaps there are fewer who would want to invest time in befriending them, we know as citizens that we also prefer living in a place where we do not have to run into the law too often.
After all, a common grouse of life in Singapore is that we are too highly-regulated.
It does mean that we do not ask the Government to step in to structure so much of what should be our civic life that it crowds out any ground-up, authentic definition of who we are and what we are about.
We have to care and we have to take the time.
The writer is a senior research fellow at the Institute of Policy Studies, Lee Kuan Yew School of Public Policy.
CNA : Development plans at Admiral Country Club on hold
Development plans at Admiral Country Club on hold
By Sharon See, Channel NewsAsia | Posted: 07 March 2010 2239 hrs
SINGAPORE: Two restaurants at the Admiral Country Club in Sembawang have decided to shut down since plans to develop it have yet to materialise, even though the tender was awarded nearly three years ago.
The Old Admiralty House was gazetted as a national monument in 2002.
The Singapore Land Authority (SLA) then awarded a tender to the YESS Group, a lifestyle business developer, who had plans to transform it into a country club, with golf and horse-riding activities.
However, these never materialised.
Restaurant operators said meetings with the developer did not result in any satisfactory answer.
They also learnt that part of the land had been rented out for private dormitories and school, but SLA later forced the developer to shut down as these were illegal.
Mr Victor Teo, who ran a barbecue restaurant there, said he and another restaurant operator are seeking legal advice for compensation.
Separately, SLA said tenders were awarded based on developers' proposals and financial ability, but they could not ensure these plans would be carried out.
- CNA/yb
By Sharon See, Channel NewsAsia | Posted: 07 March 2010 2239 hrs
SINGAPORE: Two restaurants at the Admiral Country Club in Sembawang have decided to shut down since plans to develop it have yet to materialise, even though the tender was awarded nearly three years ago.
The Old Admiralty House was gazetted as a national monument in 2002.
The Singapore Land Authority (SLA) then awarded a tender to the YESS Group, a lifestyle business developer, who had plans to transform it into a country club, with golf and horse-riding activities.
However, these never materialised.
Restaurant operators said meetings with the developer did not result in any satisfactory answer.
They also learnt that part of the land had been rented out for private dormitories and school, but SLA later forced the developer to shut down as these were illegal.
Mr Victor Teo, who ran a barbecue restaurant there, said he and another restaurant operator are seeking legal advice for compensation.
Separately, SLA said tenders were awarded based on developers' proposals and financial ability, but they could not ensure these plans would be carried out.
- CNA/yb
BT : Building confidence
Business Times - 08 Mar 2010
THIS WEEK'S TOPIC
Building confidence
Are concerns over the surge in the property market justified? How effective are the recent measures to moderate the market, and does more need to be done?
Pauline Goh
Managing Director
CB Richard Ellis, Singapore
THE recent anti-speculation measures are mainly targeted at short-term speculation activity and should not affect demand from genuine home buyers as well as medium to long-term investors. In the near term, there may be some minor contraction as speculators are weeded out. The stamp duty - levied on the buyers and sellers of a property transacted within a year from the last transaction - is a major deterrent.
However, homebuyers with an eye on long-term investments or owner-occupation will continue to find Singapore an attractive safe haven with strong fundamentals.
Nirvik Singh
Chairman & CEO
Grey Group Asia Pacific
THE Singapore property market has always been a buoyant one, and has weathered several economic crises with resilience.
Given the recent international sub-prime crisis, the global financial meltdown, and the speculative nature of the property market in general, it is indeed reassuring that the government has decided to implement tightening measures to regulate the market and prevent disparity in terms of rights to ownership.
The seller's stamp duty and loan-to-value limit on housing loans come at a time when demand for housing is on the rise and will ensure that true home-seekers get their chance of owning a home.
Simultaneously, they will serve as a strong check on existing property owners, real estate agents and investors from constant speculation to bring more equity to the property market as a whole.
In the long run, the government's initiatives will lay the foundations for a sustainable and healthy property market for future generations.
Alastair Hughes
CEO
Jones Lang LaSalle
THE Singapore government is sensible to keep a close watch on the residential property market, given the recent experience of other countries, where severe price movements in housing markets have had a destabilising effect on their wider economies.
With Asia leading the global recovery, excessive flows of investment funds into the region are possible - some of which may find its way into the Singapore residential market.
These two latest measures - an additional stamp duty on residential property bought and sold within one year and reducing loan to value ratios from 90 to 80 per cent - are smart as they will reduce returns from property investment for very short-term funds, whilst not affecting existing owner occupiers and long-term investors.
It is difficult to judge at present whether further measures are needed until these have time to take effect. But those considering buying their own home or buying for a long-term investment in Singapore can be confident they are buying in a transparent, well-regulated market.
John Koh
Managing Director
WMRC Private Ltd
PERSONALLY I think the concerns over high property prices are justified. The question is how they should be addressed, and this is where views can be strongly split between those supporting free market forces determining equilibrium prices and those favouring controls to avoid a bubble.
With the financial crisis still fresh in our memory, it is not hard to understand the concern over fast-rising property prices. With many people still wary of financial products, the next logical asset class would be real estate which is considered a tangible asset with long-term value. The government is taking calculated measures against a potential bubble, and depending on how the market reacts as more measures could come in to ensure housing remains affordable for all. Considering that private housing constitutes less than 20 per cent of local residents' needs, I would argue that the control measures would be better directed at public housing rather than private. Private housing provides an avenue for asset allocation and also a means to showcase to foreigners the quality of living standards here. Any artificial controls would undoubtedly deflate buyer interests and take away the dynamic attributes which so rightly characterise the real estate industry.
Ken Sansom
President
Experian Asia Pacific
POST recession from late-2009, residential property prices in Singapore have started to heat up due to relatively low interest rates, strong demand and possibly, some speculative buying for investment purposes. As the world looks to Asia, including Singapore, as one of the key players leading the global economic recovery, it is critical for markets to recognise and manage the risk of an asset bubble at an early stage.
These introduced measures would help towards discouraging short-term speculative activities that distort price-levels for genuine homebuyers. They also serve as good reminders for financial institutes to pay adequate attention to risk management issues, highlighting the need for them to maintain good credit standards.
Liu Chunlin
CEO
K&C Protective Technologies Pte Ltd
THE danger of a property bubble is many-fold. Besides depriving genuine Singaporean buyers, there is the risk of a subsequent collapse which can mire an economy for years to come. Though foreigners are not allowed to buy all types of properties, the fact they can for condominiums and houses on Sentosa Cove will definitely have a knock-on effect on the market here.
Recent measures on the 80 per cent loan limit, tax on early re-sale and release of land will definitely affect the market. I guess the trick is not to swing to the other end of the pendulum. Property price increases must move steadily in tandem with economic growth. Hence for the moment, there is definitely scope for wait-and-see before more measures need to be taken.
Andrea Ross
Managing Director
Robert Walters Singapore
SINGAPORE is becoming a destination of choice and a number of foreigners are making Singapore their home and therefore investing in buying flats and condominiums. Property affects almost everyone from the lower to middle income to those who make property purchases for the sole purpose of investment. It is therefore welcome news that the government is putting adjustments in place to curb speculative activity to protect those individuals who are genuine homebuyers. With the new tiered property tax schedule, lower income families will definitely benefit as they are now required to pay less tax.
With the economy picking up and the return of market confidence, lowering the loan-to-value limit on housing loans from 90 per cent to 80 per cent may not be an effective curb, particularly for the higher income individuals/families and long-term speculators. In addition, it might be a bit of a stretch for the lower income and even some middle-income families as the initial deposit outlay would now be higher. I do however feel that the principle behind the move should be applauded as it is a positive attempt to cool the market, moderate rising property costs and to put a brake on speculative demand. A recent report from NUS claimed that Singapore has achieved a lower housing price to income ratio as compared to Hong Kong and London - which means that the housing provided here is still relatively affordable.
However I do feel that for many speculative buyers, most would probably be flushed with enough capital/cash not to feel the pinch, as seen by recent news reports on rising 'property fever' and packed showrooms despite these measures. Perhaps the government should consider increasing the tax rates for non-owner occupied properties which currently remain at 10 per cent, as surely these are the individuals that are buying and renting property and potentially driving housing prices up.
David Leong
Managing Director
PeopleWorldwide Consulting Pte Ltd
THE loose monetary conditions globally and a pervasive low interest rate regime are partial reasons for the property asset inflation witnessed in Singapore. Without any interventions, the demand and prices could escalate to levels incompatible and inconsistent with the economic realism and fundamentals.
The government's announcement of cooling-off measures like the stamp duties imposition on sellers is at best a dampener. The boom-bust cycles are getting too short and too unpredictable. Cooling measures must be let in to slow down the sudden spike and fall of prices which will otherwise cause shocks to the market. Elements of speculative trading activities must be brought to a low and to reduce short-term arbitrage opportunities which also may cause asset price distortions.
A good way for the government to cool off the market is to work on the supply-side equation by putting up more land sales and leave the market to decide how high it should bid for the property. Any other interventions like minimum holding period before flip or sub-sale tax for uncompleted properties or even capital gain tax in tiered format may be intrusive for a free market.
Today's economic recovery combined with low borrowing costs set off this massive increase in property prices which seemed so right and irresistible to the heartland upgraders.
The HDB prices remained relatively stable with strong resistance to price deterioration during most part of 2008 till first half of 2009 compared with private properties.
Singapore can least afford a run on its property prices as many Singaporeans' fortune are intricately tied to property and prices must be built on firm fundamentals and less of froth. Government's interventionist approach is needed but there must be clarity on the extent of policy tightening so that genuine buyers can factor those policies in their decision making process in the mid to long term.
Tan Kok Leong
Principal
TKL Consulting
THE concerns over the surge in the property are justified as they will help make Singapore a more competitive, equitable and sustainable city to live in. Soaring house prices increase fears of property bubbles, derail economic recovery and make housing more expensive relative to household incomes.
Measures on sellers' stamp duty and loan amounts help to bring awareness to the market that steps to co-ordinate and integrate public and private actions to tackle the property market are always available and could be enforced from time to time. They include interest rates or loans amount adjustments, further tax measures and so on.
Arthur Tan
Director
Dashmesh Singapore Pte Ltd
THE surge in the property market is a function of greater demand which became very obvious in 2007. The global meltdown gave the much needed 'cold water' to cool the market then. The increased population and escalated local economic activities is made worse by the reduction of public housing constructions since the HDB 'over supply' situation ending in 2005-6. There is no need to depress luxurious residential projects. For the mass market, there are several measures to keep a lid on prices without collateral damage to other sectors of the economy. One example is to follow the Australian way: foreigners can only re-sell to locals. Other examples are that PRs should not be allowed to resell their HDB flats within a longer time frame, maybe three to five years? I am sure the authorities have many ideas up their sleeves.
Bek Kheng Lee
Managing Director
Azen Manufacturing Pte Ltd
PERSONALLY, I feel that the recent measures to moderate the market will be limited in its effectiveness. Reducing the loan to value limit from 90 per cent to 80 per cent is not going to have significant impact on cooling the market. After all, to start with, most speculators would have sufficient funds to invest. However, having said this, the mere intention of our local government to lessen the speculative element is good as it clearly signals to speculators that they will not allow the situation to go out of hand.
Having one's own industrial property to carry out operations is very important to the success of a business, since rental does not make economic sense in the long run. Today, every square inch of land is chargeable. For example, many years ago, rental charges were based on covered areas. Now, all open areas within the compound, including grass patches are chargeable. So, it is encouraging to know that our government always takes steps to prevent speculation, hence ensuring that genuine business owners are able to purchase industrial property at a more realistic price.
David Low
CEO
Futuristic Store Fixtures Pte Ltd
SINGAPORE is aggressively reinventing her image as a fun city of quality to live and work in, with new infrastructure and establishments in the pipeline, and this plays a big part in escalating property prices especially for prime developments, drawing speculators and investors local and overseas. Coupled with the current low interest rate environment, demand follows suit.
The recent measures put forth to moderate the market do have some impact but minimally in containing the thriving market. Stamp duty placed on sellers who flip their properties within a year of purchase will only curb speculators but not long term-investors and likewise the reduction in loan to value limit is negligible for investors looking at luxury residential market. Prices will continue to rise with pull factors.
I would suggest putting more specific measures in place, to ensure that genuine home buyers are not put at a disadvantage. Creative policies applicable for different property segments can be applied to protect genuine home buyers while taming speculation without stifling the true value of property in Singapore.
JY Pook
Vice President and Managing Director
FICO Asia Pacific
THE environment over the last two to three years has made it tougher for banks to identify the right kind of customers, as a result of the sub-prime crisis. Despite the economic downturn in most parts of Asia, low interest rates, strong demand and speculation has pushed up property prices, much more than what they are probably worth. The current situation is causing uncertainty and possibly a property bubble. Forward-looking banks with a strong risk management and predictive analytics capability will be able to navigate through this uncertainty with greater precision.
Lim Soon Hock
Managing Director
PLAN-B ICAG Pte Ltd
THE concerns over the surge in the property market are justified. Singapore cannot afford to allow our economy to suffer the similar fate of the sub-prime crisis and go through another round of financial turmoil. It is also imperative that public housing remains affordable for the majority of our population.
The recent measures will compel the short-term speculators, who thrive on thin margins, to think twice before playing in the property market. In this regard, it should be effective.Â
In land-scarce Singapore, property will always appreciate in value; it is a question of timing. Long-term investors will not be deterred by the measures, as the opportunity to make a profit will always be there.
Our government made the right pre-emptive move in taking small steps to curtail speculation and to prevent a property bubble from developing, while allowing sufficient space for the market forces of demand and supply to play. If there is one move which the government can make to stamp speculation, it is releasing more land banks at reasonable prices.
Dora Hoan
Group CEO
Best World International Ltd
THE improving business climate and the desirability of Singapore increases its attractiveness to would-be purchasers of property. The price commanded in the market is the expression of buyers' willingness to own a property in a location that has superb amenities and enviable lifestyle. However, we know what happens when rapid, uncontrolled increases in valuations outpace incomes and other economic factors, and is followed by a slump in price levels. The Japan real estate bubble of the 1990s, the Shanghai property market crash in 2005 and of late, the financial crisis of 2008 were all arguably triggered by real estate bubbles.
Moreover, if you take it from the supply-side view, there is reason to fear that property heating up also causes misallocation of resources - too many resources yielded at peak time followed by underinvestment during the lead-up, which economic experts widely believe to be the cause of the ensuing economic slump. The recently implemented measures are intended to apprehend short-term speculative activity that could distort underlying prices. I believe that we need these simple measures to strike a balance between market recovery while ensuring that the property market is moving alongside and not outpacing it.
Teng Yeow Heng Michael
Managing Director
Corporate Turnaround Centre Pte Ltd
THE concerns over the surge of the property market are unjustified. The concerns should instead be for those Singaporeans who invest in private property that they can ill afford and get into financial trouble when the property bubble bursts. The rise of the property prices is consistent with the economic recovery of Asia which is a good thing and also mainly due to the shortage of HDB apartments. The answer lies in meeting the housing needs of Singaporeans and at the same time attracting foreigners to invest in property here so that Singaporeans who own private property and re-sale HDB flats will have better net worth as their property value appreciates.
The future measures should be to release more land to build HDB apartments and build them quickly for Singaporeans who cannot afford private housing. Currently there are just not enough HDB flats for all Singaporeans and that is why they have to purchase private property causing the prices to surge and at prices that they can ill afford
The recent measures are not effective as recent housing sales launches are still attracting record sales. Also, the recent measures have instead caused the share prices of our property stocks to take a plunge. During this fragile economic recovery, we do not want to send the wrong signals that can cripple the nascent recovery. Currently this policy creates uncertainty in the property and stock market and this is not healthy as investors do not like uncertainties. We should be encouraging the foreign high-net-worth individuals to invest in Singapore property; instead we may be chasing them away to invest elsewhere in Asia because of the uncertainties. These foreign investors have a choice as to where to invest in property. Let us not throw away the baby together with the bath water.
R Dhinakaran
Managing Director
Jay Gee Enterprises Pte Ltd
SINGAPORE'S property market kept growing even during the worst period for the economy in 2009. Singapore's 'safe country' status drew more liquidity into the market during the recessionary period, and with a liberal taxation policy on capital gains, speculative trade became more remunerative than investing in any real economic activity. The key intent from the government is to deter speculators and avoid a bubble which makes it unnecessarily hard on genuine home buyers.
The recent steps by the government will definitely have some impact. The dual stamp duty will make speculation tougher but the reduced loan component will affect more the genuine buyer for owner occupation. To identify and clearly separate the speculators from first time buyers, the government could consider keep the loan value up to 90 per cent while making it tougher for investors and speculators by having the loan amount reduced to even 70 per cent for buyers who already own at least one other property in Singapore. This will perhaps help to keep away speculators while not discouraging young and first time buyers from buying a property for their own living.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
THIS WEEK'S TOPIC
Building confidence
Are concerns over the surge in the property market justified? How effective are the recent measures to moderate the market, and does more need to be done?
Pauline Goh
Managing Director
CB Richard Ellis, Singapore
THE recent anti-speculation measures are mainly targeted at short-term speculation activity and should not affect demand from genuine home buyers as well as medium to long-term investors. In the near term, there may be some minor contraction as speculators are weeded out. The stamp duty - levied on the buyers and sellers of a property transacted within a year from the last transaction - is a major deterrent.
However, homebuyers with an eye on long-term investments or owner-occupation will continue to find Singapore an attractive safe haven with strong fundamentals.
Nirvik Singh
Chairman & CEO
Grey Group Asia Pacific
THE Singapore property market has always been a buoyant one, and has weathered several economic crises with resilience.
Given the recent international sub-prime crisis, the global financial meltdown, and the speculative nature of the property market in general, it is indeed reassuring that the government has decided to implement tightening measures to regulate the market and prevent disparity in terms of rights to ownership.
The seller's stamp duty and loan-to-value limit on housing loans come at a time when demand for housing is on the rise and will ensure that true home-seekers get their chance of owning a home.
Simultaneously, they will serve as a strong check on existing property owners, real estate agents and investors from constant speculation to bring more equity to the property market as a whole.
In the long run, the government's initiatives will lay the foundations for a sustainable and healthy property market for future generations.
Alastair Hughes
CEO
Jones Lang LaSalle
THE Singapore government is sensible to keep a close watch on the residential property market, given the recent experience of other countries, where severe price movements in housing markets have had a destabilising effect on their wider economies.
With Asia leading the global recovery, excessive flows of investment funds into the region are possible - some of which may find its way into the Singapore residential market.
These two latest measures - an additional stamp duty on residential property bought and sold within one year and reducing loan to value ratios from 90 to 80 per cent - are smart as they will reduce returns from property investment for very short-term funds, whilst not affecting existing owner occupiers and long-term investors.
It is difficult to judge at present whether further measures are needed until these have time to take effect. But those considering buying their own home or buying for a long-term investment in Singapore can be confident they are buying in a transparent, well-regulated market.
John Koh
Managing Director
WMRC Private Ltd
PERSONALLY I think the concerns over high property prices are justified. The question is how they should be addressed, and this is where views can be strongly split between those supporting free market forces determining equilibrium prices and those favouring controls to avoid a bubble.
With the financial crisis still fresh in our memory, it is not hard to understand the concern over fast-rising property prices. With many people still wary of financial products, the next logical asset class would be real estate which is considered a tangible asset with long-term value. The government is taking calculated measures against a potential bubble, and depending on how the market reacts as more measures could come in to ensure housing remains affordable for all. Considering that private housing constitutes less than 20 per cent of local residents' needs, I would argue that the control measures would be better directed at public housing rather than private. Private housing provides an avenue for asset allocation and also a means to showcase to foreigners the quality of living standards here. Any artificial controls would undoubtedly deflate buyer interests and take away the dynamic attributes which so rightly characterise the real estate industry.
Ken Sansom
President
Experian Asia Pacific
POST recession from late-2009, residential property prices in Singapore have started to heat up due to relatively low interest rates, strong demand and possibly, some speculative buying for investment purposes. As the world looks to Asia, including Singapore, as one of the key players leading the global economic recovery, it is critical for markets to recognise and manage the risk of an asset bubble at an early stage.
These introduced measures would help towards discouraging short-term speculative activities that distort price-levels for genuine homebuyers. They also serve as good reminders for financial institutes to pay adequate attention to risk management issues, highlighting the need for them to maintain good credit standards.
Liu Chunlin
CEO
K&C Protective Technologies Pte Ltd
THE danger of a property bubble is many-fold. Besides depriving genuine Singaporean buyers, there is the risk of a subsequent collapse which can mire an economy for years to come. Though foreigners are not allowed to buy all types of properties, the fact they can for condominiums and houses on Sentosa Cove will definitely have a knock-on effect on the market here.
Recent measures on the 80 per cent loan limit, tax on early re-sale and release of land will definitely affect the market. I guess the trick is not to swing to the other end of the pendulum. Property price increases must move steadily in tandem with economic growth. Hence for the moment, there is definitely scope for wait-and-see before more measures need to be taken.
Andrea Ross
Managing Director
Robert Walters Singapore
SINGAPORE is becoming a destination of choice and a number of foreigners are making Singapore their home and therefore investing in buying flats and condominiums. Property affects almost everyone from the lower to middle income to those who make property purchases for the sole purpose of investment. It is therefore welcome news that the government is putting adjustments in place to curb speculative activity to protect those individuals who are genuine homebuyers. With the new tiered property tax schedule, lower income families will definitely benefit as they are now required to pay less tax.
With the economy picking up and the return of market confidence, lowering the loan-to-value limit on housing loans from 90 per cent to 80 per cent may not be an effective curb, particularly for the higher income individuals/families and long-term speculators. In addition, it might be a bit of a stretch for the lower income and even some middle-income families as the initial deposit outlay would now be higher. I do however feel that the principle behind the move should be applauded as it is a positive attempt to cool the market, moderate rising property costs and to put a brake on speculative demand. A recent report from NUS claimed that Singapore has achieved a lower housing price to income ratio as compared to Hong Kong and London - which means that the housing provided here is still relatively affordable.
However I do feel that for many speculative buyers, most would probably be flushed with enough capital/cash not to feel the pinch, as seen by recent news reports on rising 'property fever' and packed showrooms despite these measures. Perhaps the government should consider increasing the tax rates for non-owner occupied properties which currently remain at 10 per cent, as surely these are the individuals that are buying and renting property and potentially driving housing prices up.
David Leong
Managing Director
PeopleWorldwide Consulting Pte Ltd
THE loose monetary conditions globally and a pervasive low interest rate regime are partial reasons for the property asset inflation witnessed in Singapore. Without any interventions, the demand and prices could escalate to levels incompatible and inconsistent with the economic realism and fundamentals.
The government's announcement of cooling-off measures like the stamp duties imposition on sellers is at best a dampener. The boom-bust cycles are getting too short and too unpredictable. Cooling measures must be let in to slow down the sudden spike and fall of prices which will otherwise cause shocks to the market. Elements of speculative trading activities must be brought to a low and to reduce short-term arbitrage opportunities which also may cause asset price distortions.
A good way for the government to cool off the market is to work on the supply-side equation by putting up more land sales and leave the market to decide how high it should bid for the property. Any other interventions like minimum holding period before flip or sub-sale tax for uncompleted properties or even capital gain tax in tiered format may be intrusive for a free market.
Today's economic recovery combined with low borrowing costs set off this massive increase in property prices which seemed so right and irresistible to the heartland upgraders.
The HDB prices remained relatively stable with strong resistance to price deterioration during most part of 2008 till first half of 2009 compared with private properties.
Singapore can least afford a run on its property prices as many Singaporeans' fortune are intricately tied to property and prices must be built on firm fundamentals and less of froth. Government's interventionist approach is needed but there must be clarity on the extent of policy tightening so that genuine buyers can factor those policies in their decision making process in the mid to long term.
Tan Kok Leong
Principal
TKL Consulting
THE concerns over the surge in the property are justified as they will help make Singapore a more competitive, equitable and sustainable city to live in. Soaring house prices increase fears of property bubbles, derail economic recovery and make housing more expensive relative to household incomes.
Measures on sellers' stamp duty and loan amounts help to bring awareness to the market that steps to co-ordinate and integrate public and private actions to tackle the property market are always available and could be enforced from time to time. They include interest rates or loans amount adjustments, further tax measures and so on.
Arthur Tan
Director
Dashmesh Singapore Pte Ltd
THE surge in the property market is a function of greater demand which became very obvious in 2007. The global meltdown gave the much needed 'cold water' to cool the market then. The increased population and escalated local economic activities is made worse by the reduction of public housing constructions since the HDB 'over supply' situation ending in 2005-6. There is no need to depress luxurious residential projects. For the mass market, there are several measures to keep a lid on prices without collateral damage to other sectors of the economy. One example is to follow the Australian way: foreigners can only re-sell to locals. Other examples are that PRs should not be allowed to resell their HDB flats within a longer time frame, maybe three to five years? I am sure the authorities have many ideas up their sleeves.
Bek Kheng Lee
Managing Director
Azen Manufacturing Pte Ltd
PERSONALLY, I feel that the recent measures to moderate the market will be limited in its effectiveness. Reducing the loan to value limit from 90 per cent to 80 per cent is not going to have significant impact on cooling the market. After all, to start with, most speculators would have sufficient funds to invest. However, having said this, the mere intention of our local government to lessen the speculative element is good as it clearly signals to speculators that they will not allow the situation to go out of hand.
Having one's own industrial property to carry out operations is very important to the success of a business, since rental does not make economic sense in the long run. Today, every square inch of land is chargeable. For example, many years ago, rental charges were based on covered areas. Now, all open areas within the compound, including grass patches are chargeable. So, it is encouraging to know that our government always takes steps to prevent speculation, hence ensuring that genuine business owners are able to purchase industrial property at a more realistic price.
David Low
CEO
Futuristic Store Fixtures Pte Ltd
SINGAPORE is aggressively reinventing her image as a fun city of quality to live and work in, with new infrastructure and establishments in the pipeline, and this plays a big part in escalating property prices especially for prime developments, drawing speculators and investors local and overseas. Coupled with the current low interest rate environment, demand follows suit.
The recent measures put forth to moderate the market do have some impact but minimally in containing the thriving market. Stamp duty placed on sellers who flip their properties within a year of purchase will only curb speculators but not long term-investors and likewise the reduction in loan to value limit is negligible for investors looking at luxury residential market. Prices will continue to rise with pull factors.
I would suggest putting more specific measures in place, to ensure that genuine home buyers are not put at a disadvantage. Creative policies applicable for different property segments can be applied to protect genuine home buyers while taming speculation without stifling the true value of property in Singapore.
JY Pook
Vice President and Managing Director
FICO Asia Pacific
THE environment over the last two to three years has made it tougher for banks to identify the right kind of customers, as a result of the sub-prime crisis. Despite the economic downturn in most parts of Asia, low interest rates, strong demand and speculation has pushed up property prices, much more than what they are probably worth. The current situation is causing uncertainty and possibly a property bubble. Forward-looking banks with a strong risk management and predictive analytics capability will be able to navigate through this uncertainty with greater precision.
Lim Soon Hock
Managing Director
PLAN-B ICAG Pte Ltd
THE concerns over the surge in the property market are justified. Singapore cannot afford to allow our economy to suffer the similar fate of the sub-prime crisis and go through another round of financial turmoil. It is also imperative that public housing remains affordable for the majority of our population.
The recent measures will compel the short-term speculators, who thrive on thin margins, to think twice before playing in the property market. In this regard, it should be effective.Â
In land-scarce Singapore, property will always appreciate in value; it is a question of timing. Long-term investors will not be deterred by the measures, as the opportunity to make a profit will always be there.
Our government made the right pre-emptive move in taking small steps to curtail speculation and to prevent a property bubble from developing, while allowing sufficient space for the market forces of demand and supply to play. If there is one move which the government can make to stamp speculation, it is releasing more land banks at reasonable prices.
Dora Hoan
Group CEO
Best World International Ltd
THE improving business climate and the desirability of Singapore increases its attractiveness to would-be purchasers of property. The price commanded in the market is the expression of buyers' willingness to own a property in a location that has superb amenities and enviable lifestyle. However, we know what happens when rapid, uncontrolled increases in valuations outpace incomes and other economic factors, and is followed by a slump in price levels. The Japan real estate bubble of the 1990s, the Shanghai property market crash in 2005 and of late, the financial crisis of 2008 were all arguably triggered by real estate bubbles.
Moreover, if you take it from the supply-side view, there is reason to fear that property heating up also causes misallocation of resources - too many resources yielded at peak time followed by underinvestment during the lead-up, which economic experts widely believe to be the cause of the ensuing economic slump. The recently implemented measures are intended to apprehend short-term speculative activity that could distort underlying prices. I believe that we need these simple measures to strike a balance between market recovery while ensuring that the property market is moving alongside and not outpacing it.
Teng Yeow Heng Michael
Managing Director
Corporate Turnaround Centre Pte Ltd
THE concerns over the surge of the property market are unjustified. The concerns should instead be for those Singaporeans who invest in private property that they can ill afford and get into financial trouble when the property bubble bursts. The rise of the property prices is consistent with the economic recovery of Asia which is a good thing and also mainly due to the shortage of HDB apartments. The answer lies in meeting the housing needs of Singaporeans and at the same time attracting foreigners to invest in property here so that Singaporeans who own private property and re-sale HDB flats will have better net worth as their property value appreciates.
The future measures should be to release more land to build HDB apartments and build them quickly for Singaporeans who cannot afford private housing. Currently there are just not enough HDB flats for all Singaporeans and that is why they have to purchase private property causing the prices to surge and at prices that they can ill afford
The recent measures are not effective as recent housing sales launches are still attracting record sales. Also, the recent measures have instead caused the share prices of our property stocks to take a plunge. During this fragile economic recovery, we do not want to send the wrong signals that can cripple the nascent recovery. Currently this policy creates uncertainty in the property and stock market and this is not healthy as investors do not like uncertainties. We should be encouraging the foreign high-net-worth individuals to invest in Singapore property; instead we may be chasing them away to invest elsewhere in Asia because of the uncertainties. These foreign investors have a choice as to where to invest in property. Let us not throw away the baby together with the bath water.
R Dhinakaran
Managing Director
Jay Gee Enterprises Pte Ltd
SINGAPORE'S property market kept growing even during the worst period for the economy in 2009. Singapore's 'safe country' status drew more liquidity into the market during the recessionary period, and with a liberal taxation policy on capital gains, speculative trade became more remunerative than investing in any real economic activity. The key intent from the government is to deter speculators and avoid a bubble which makes it unnecessarily hard on genuine home buyers.
The recent steps by the government will definitely have some impact. The dual stamp duty will make speculation tougher but the reduced loan component will affect more the genuine buyer for owner occupation. To identify and clearly separate the speculators from first time buyers, the government could consider keep the loan value up to 90 per cent while making it tougher for investors and speculators by having the loan amount reduced to even 70 per cent for buyers who already own at least one other property in Singapore. This will perhaps help to keep away speculators while not discouraging young and first time buyers from buying a property for their own living.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : 1 Finlayson Green sold, say sources
Business Times - 08 Mar 2010
1 Finlayson Green sold, say sources
Headline price is said to be $145 million
By KALPANA RASHIWALA
(SINGAPORE) The office block that is 1 Finlayson Green has been sold, BT understands.
The price is said to be about $145 million, or 37 per cent below the $230.88 million the seller had paid for the property in June 2007.
A unit of UK-based property fund group Develica is believed to have signed an agreement recently to sell the 19-storey freehold office tower to a foreign-domiciled fund initiated by low-profile Indonesian investor Norman Winata.
BT understands the sale is being effected through a sale of shares in the company that owns the asset.
Develica is understood to have borrowed from National Australia Bank, Hypo Real Estate and Citibank. Market watchers say the three banks would have consented for the sale to take place.
1 Finlayson's current net lettable area (NLA) is said to be about 89,000 square feet. Based on this, the latest transacted price of $145 million reflects about $1,630 per square foot.
A market watcher described the pricing as 'about right'. In January, CapitaCommercial Trust sold Robinson Point - a freehold, 21-storey office building - for $203.3 million or $1,527 psf, based on its NLA of 133,139 sq ft. 1 Finalyson Green's location is considered to be superior, being closer to Raffles Place MRT Station.
For 1 Finlayson Green, some market watchers suggest that there could be some other fees or costs associated with the transaction which could take its net acquisition price above the $145 million headline price paid by the buyer.
When Develica bought the property over two years ago from Singapore's Hong Leong Group, its NLA was reported to be about 86,500 psf. Develica was later reported to have refurbished the building for $2 million and increased net lettable area by 7 per cent by leasing to one tenant per floor. That would have boosted the property's NLA to about 92,500 sq ft. However, industry observers have been citing the building's NLA at between 88,200 and 89,000 sq ft recently.
1 Finlayson Green received its Temporary Occupation Permit in 1994.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Good location: BT understands the deal is being effected through a sale of shares in the company that owns the asset
1 Finlayson Green sold, say sources
Headline price is said to be $145 million
By KALPANA RASHIWALA
(SINGAPORE) The office block that is 1 Finlayson Green has been sold, BT understands.
The price is said to be about $145 million, or 37 per cent below the $230.88 million the seller had paid for the property in June 2007.
A unit of UK-based property fund group Develica is believed to have signed an agreement recently to sell the 19-storey freehold office tower to a foreign-domiciled fund initiated by low-profile Indonesian investor Norman Winata.
BT understands the sale is being effected through a sale of shares in the company that owns the asset.
Develica is understood to have borrowed from National Australia Bank, Hypo Real Estate and Citibank. Market watchers say the three banks would have consented for the sale to take place.
1 Finlayson's current net lettable area (NLA) is said to be about 89,000 square feet. Based on this, the latest transacted price of $145 million reflects about $1,630 per square foot.
A market watcher described the pricing as 'about right'. In January, CapitaCommercial Trust sold Robinson Point - a freehold, 21-storey office building - for $203.3 million or $1,527 psf, based on its NLA of 133,139 sq ft. 1 Finalyson Green's location is considered to be superior, being closer to Raffles Place MRT Station.
For 1 Finlayson Green, some market watchers suggest that there could be some other fees or costs associated with the transaction which could take its net acquisition price above the $145 million headline price paid by the buyer.
When Develica bought the property over two years ago from Singapore's Hong Leong Group, its NLA was reported to be about 86,500 psf. Develica was later reported to have refurbished the building for $2 million and increased net lettable area by 7 per cent by leasing to one tenant per floor. That would have boosted the property's NLA to about 92,500 sq ft. However, industry observers have been citing the building's NLA at between 88,200 and 89,000 sq ft recently.
1 Finlayson Green received its Temporary Occupation Permit in 1994.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Good location: BT understands the deal is being effected through a sale of shares in the company that owns the asset
ST : The housing balancing act
Mar 7, 2010
COMMENTARY
The housing balancing act
By Tan Hui Yee
Like a circus performer spinning many plates at once, the Housing Board serves many purposes - housing people, fostering stability, strengthening cohesion and generating an income for flat owners.
Last Friday, it added 'reinforcing citizenship privileges' to the list.
To entice permanent residents (PRs) who marry Singaporeans to take up citizenship, the HDB will now withhold $10,000 of such couples' housing subsidies.
That sum will be given to them once these foreigners take up citizenship, or produce a Singaporean child.
Meanwhile, some PR households will have to look elsewhere to buy their resale flats if too many congregate in a particular neighbourhood.
This new integration policy, which is fashioned along the lines of the long-standing ethnic integration policy, is meant to prevent the formation of enclaves.
The new policies raise questions that could pose challenges to the carefully calibrated housing system. Will the 8 per cent quota for non-Malaysian PR households in each block depress the price of such flats?
After all, it essentially cuts out 20 per cent of potential buyers if the quota has been reached, given that that is the proportion of resale flats bought by PRs nationwide each year.
Will it nudge PRs to become citizens? Or will it create a backlash from a group which has had its privileges - from education to health - steadily rolled back in recent years by a Government anxious to placate citizens who fear foreigners are encroaching in everything from housing to jobs?
It remains to be seen what kind of dynamics the HDB's policies towards foreigners will introduce into the system, but these changes have definitely racked up the tension among the statutory board's competing objectives.
One can see just how difficult this balancing act can be when we examine how the HDB last Friday ended up raising the minimum occupation period for people buying resale flats without subsidies.
In response to growing public anger over what is perceived to be speculation in the resale market, the HDB now requires non-subsidised buyers to live in their flats for three years - instead of just one year - before selling them again.
The tighter rules seem to run counter to its recent measures to free up the housing market to let home owners monetise their assets.
To give ageing flat owners a chance to earn an income, it has steadily cut the number of years they needed to live in their homes before renting them out.
Before 2003, flat owners were not allowed to rent out their flats unless they met a set of strict criteria, like working or studying abroad.
That year, however, the authorities eased the rules to let flat owners rent them out if they had lived in them for 15 years, or 10 years if they had paid off their HDB loan.
From 2003, the HDB has reduced the minimum occupancy period for subletting every few years. Owners who bought resale flats without any subsidies can now rent out their property after living in it for three years.
The relaxed subletting rules gave rise to fears that people will buy them as investments instead of homes. Last Friday, the new figures revealed by the HDB showed that the fears were not unfounded.
The proportion of resale flats sold within three years grew from 6 per cent between 2005 and 2007 to 9 per cent last year. If left unchecked, such churning in the HDB resale market could further inflate prices, which have risen by 8 per cent last year alone.
Hence, while the HDB's subletting policy increasingly helps put flats in the realm of the free market, its revised occupancy requirement for resale raises the bar for flat owners banking on their properties to raise cash for other needs.
These conflicting signals result from the inevitable tension between two of the HDB's biggest objectives - to house a population and to grow its wealth by growing the value of homes.
No less than Minister Mentor Lee Kuan Yew reminded Singaporeans of the HDB's latter role in January. He reminded citizens not to cast a protest vote over the affordability of public housing, as it was this system that provides homes that would in time appreciate in value.
The HDB also took pains last Friday to underline the principle that flats were primarily meant for providing shelter. It is putting on the forefront its role as a housing provider that will not hesitate to impose restrictions once that mission comes under threat.
What helps to reinforce that message is also another change announced that day: the extension of second subsidised home loans to households downgrading to smaller flats.
For years, households forced by financial circumstances to move to smaller flats were denied such loans because the HDB wanted to limit its leg-up to those moving on to bigger flats. With this change, the authorities have eased up on their fixation with asset enhancement and are now extending help to those who really just need shelter.
All things considered, there is another bugbear that has not been addressed: private property owners buying resale flats.
House hunters feeling the heat from rising prices have complained that these cash-rich buyers drive up prices and crowd out those in genuine need of homes.
National Development Minister Mah Bow Tan has ruled that out, saying their impact is minimal.
But that stand too could be up for review in time to come. The constant tension between the HDB's competing objectives means that policies will vary according to demographic changes and public sentiment. Friday's changes will not be the last.
tanhy@sph.com.sg
COMMENTARY
The housing balancing act
By Tan Hui Yee
Like a circus performer spinning many plates at once, the Housing Board serves many purposes - housing people, fostering stability, strengthening cohesion and generating an income for flat owners.
Last Friday, it added 'reinforcing citizenship privileges' to the list.
To entice permanent residents (PRs) who marry Singaporeans to take up citizenship, the HDB will now withhold $10,000 of such couples' housing subsidies.
That sum will be given to them once these foreigners take up citizenship, or produce a Singaporean child.
Meanwhile, some PR households will have to look elsewhere to buy their resale flats if too many congregate in a particular neighbourhood.
This new integration policy, which is fashioned along the lines of the long-standing ethnic integration policy, is meant to prevent the formation of enclaves.
The new policies raise questions that could pose challenges to the carefully calibrated housing system. Will the 8 per cent quota for non-Malaysian PR households in each block depress the price of such flats?
After all, it essentially cuts out 20 per cent of potential buyers if the quota has been reached, given that that is the proportion of resale flats bought by PRs nationwide each year.
Will it nudge PRs to become citizens? Or will it create a backlash from a group which has had its privileges - from education to health - steadily rolled back in recent years by a Government anxious to placate citizens who fear foreigners are encroaching in everything from housing to jobs?
It remains to be seen what kind of dynamics the HDB's policies towards foreigners will introduce into the system, but these changes have definitely racked up the tension among the statutory board's competing objectives.
One can see just how difficult this balancing act can be when we examine how the HDB last Friday ended up raising the minimum occupation period for people buying resale flats without subsidies.
In response to growing public anger over what is perceived to be speculation in the resale market, the HDB now requires non-subsidised buyers to live in their flats for three years - instead of just one year - before selling them again.
The tighter rules seem to run counter to its recent measures to free up the housing market to let home owners monetise their assets.
To give ageing flat owners a chance to earn an income, it has steadily cut the number of years they needed to live in their homes before renting them out.
Before 2003, flat owners were not allowed to rent out their flats unless they met a set of strict criteria, like working or studying abroad.
That year, however, the authorities eased the rules to let flat owners rent them out if they had lived in them for 15 years, or 10 years if they had paid off their HDB loan.
From 2003, the HDB has reduced the minimum occupancy period for subletting every few years. Owners who bought resale flats without any subsidies can now rent out their property after living in it for three years.
The relaxed subletting rules gave rise to fears that people will buy them as investments instead of homes. Last Friday, the new figures revealed by the HDB showed that the fears were not unfounded.
The proportion of resale flats sold within three years grew from 6 per cent between 2005 and 2007 to 9 per cent last year. If left unchecked, such churning in the HDB resale market could further inflate prices, which have risen by 8 per cent last year alone.
Hence, while the HDB's subletting policy increasingly helps put flats in the realm of the free market, its revised occupancy requirement for resale raises the bar for flat owners banking on their properties to raise cash for other needs.
These conflicting signals result from the inevitable tension between two of the HDB's biggest objectives - to house a population and to grow its wealth by growing the value of homes.
No less than Minister Mentor Lee Kuan Yew reminded Singaporeans of the HDB's latter role in January. He reminded citizens not to cast a protest vote over the affordability of public housing, as it was this system that provides homes that would in time appreciate in value.
The HDB also took pains last Friday to underline the principle that flats were primarily meant for providing shelter. It is putting on the forefront its role as a housing provider that will not hesitate to impose restrictions once that mission comes under threat.
What helps to reinforce that message is also another change announced that day: the extension of second subsidised home loans to households downgrading to smaller flats.
For years, households forced by financial circumstances to move to smaller flats were denied such loans because the HDB wanted to limit its leg-up to those moving on to bigger flats. With this change, the authorities have eased up on their fixation with asset enhancement and are now extending help to those who really just need shelter.
All things considered, there is another bugbear that has not been addressed: private property owners buying resale flats.
House hunters feeling the heat from rising prices have complained that these cash-rich buyers drive up prices and crowd out those in genuine need of homes.
National Development Minister Mah Bow Tan has ruled that out, saying their impact is minimal.
But that stand too could be up for review in time to come. The constant tension between the HDB's competing objectives means that policies will vary according to demographic changes and public sentiment. Friday's changes will not be the last.
tanhy@sph.com.sg
ST : City Harvest paying $310m to become Suntec co-owner
Mar 7, 2010
City Harvest paying $310m to become Suntec co-owner
By Esther Teo
Amid cheers from the congregation, City Harvest Church (CHC) yesterday announced that it will pay $310 million to become a co-owner of Suntec Singapore, a prime piece of downtown real estate.
Senior pastor Kong Hee broke the news first at CHC's service at its Jurong West building, then later at another service at the Singapore Expo in Changi.
He said CHC had acquired a 'substantial stake in a consortium company that owns 80 per cent of a joint venture fund that owns Suntec Singapore'.
The complex's full name is Suntec Singapore International Convention and Exhibition Centre.
The $310 million includes the cost of acquiring shares in the consortium, rental costs, renovation costs and others.
Suntec Singapore was acquired by ARA Asset Management through the ARA Harmony Fund last year, with its investors comprising Suntec Reit - which holds 20 per cent - and a consortium company which holds 80 per cent.
The latter is what CHC has bought a stake in. However, CHC said it was unable to reveal its current shareholdings due to conditions stated in the agreement.
The church has spent the past five years looking for a suitable plot of land, said Dr Kong, who founded it in 1989 as a small Bible study group of 20.
Suntec was its 26th attempt after other sites such as Lion City Hotel in Tanjong Katong and Iluma in Bras Basah Road were considered unsuitable due to their small size or likely traffic congestion.
Dr Kong revealed in January this year that CHC had secured a large complex in the 'central-south' district that also housed shops, restaurants and a 12,000-seat auditorium. Further details were unavailable then due to a non-disclosure agreement.
Yesterday, he told his congregation he had approached Suntec's new owners to explore the possibility of co-ownership in July last year, after an initial unsuccessful bid for the property in November 2008.
The option agreement was signed in six months, with the sale sealed on Feb 5.
The 33,000-strong megachurch is expected to move there by the second quarter of next year, after its lease at Singapore Expo expires. It will retain its Jurong West building for prayer services and Bible study.
Singaporean singer Sun Ho, who is married to Dr Kong, is also back this weekend - from Los Angeles, where she is currently based - for the celebrations.
The more than one million square feet of usable space in Suntec - equivalent to 25 soccer fields - would make it 20 times the size of the church's premises in Jurong West and 10 times the size of the hall it currently leases at Singapore Expo, Dr Kong said.
'This is a prime location with 78 years left in its lease. Right now we're paying $310 million, but how much is it going to be worth 30 years from now? I have to be a good steward...to maximise every dollar our members have given,' he said.
CHC told The Sunday Times it will be operating an 'ownership and lease' business model. This would allow the rent paid to Suntec Singapore to be recovered in the form of profits and dividends from space rental and tenant leases.
The church's plan is that its share of the profit from the business will eventually be able to cover the rent, and the financing will be self-sustaining.
With the opening of the Esplanade and Promenade MRT stations on the Circle Line next month, and together with the existing City Hall MRT station, members will have easier access to its services.
In a posting on the church website, Dr Kong wrote that the project 'allows us to move from a present expensive rental model to a more financially sustainable ownership model for the long term'.
He added that his present congregation is more than 14 times the capacity of its Jurong West building, which can accommodate only 2,300 people.
As to why the money was not spent on the poor and needy instead, Dr Kong said on the website that CHC spends 20 per cent of its annual budget on local community and overseas humanitarian work.
'With a facility to house the church's growing congregation and multifaceted ministries, we can serve the needs of the community in an even greater way.'
He said that while some areas will be used solely by CHC - such as the sixth and seventh storeys which will be used to house its 12,000-seater auditorium - other areas like the three ballrooms on the second floor and the exhibition halls will be open to the public for rental.
'But as co-owners of the entire convention centre, we have a share of the annual revenues of all facilities. Every time somebody rents a room there, we get a cut for the next 78 years,' he said.
The news coincided with the start of CHC's fund-raising drive that hopes to raise $17.3 million from this month to June, its fifth campaign in a series of 13. It has raised $99 million in its past four campaigns.
Knight Frank group managing director Danny Yeo said the acquisition was a good alternative to buying a plot of land.
'Existing plots of land offered by the Government are too small for the large auditorium that City Harvest is looking to build and it's even more difficult if you're looking for somewhere central.'
Similar plans were also announced in 2007 by New Creation Church, another large Christian group.
New Creation's business arm Rock Productions has teamed up with mall developer CapitaMalls Asia to build an 'integrated hub' in Buona Vista. When ready in 2012, the $1 billion project will house shops, a concert hall and a theatre.
Additional reporting by Yen Feng
City Harvest paying $310m to become Suntec co-owner
By Esther Teo
Amid cheers from the congregation, City Harvest Church (CHC) yesterday announced that it will pay $310 million to become a co-owner of Suntec Singapore, a prime piece of downtown real estate.
Senior pastor Kong Hee broke the news first at CHC's service at its Jurong West building, then later at another service at the Singapore Expo in Changi.
He said CHC had acquired a 'substantial stake in a consortium company that owns 80 per cent of a joint venture fund that owns Suntec Singapore'.
The complex's full name is Suntec Singapore International Convention and Exhibition Centre.
The $310 million includes the cost of acquiring shares in the consortium, rental costs, renovation costs and others.
Suntec Singapore was acquired by ARA Asset Management through the ARA Harmony Fund last year, with its investors comprising Suntec Reit - which holds 20 per cent - and a consortium company which holds 80 per cent.
The latter is what CHC has bought a stake in. However, CHC said it was unable to reveal its current shareholdings due to conditions stated in the agreement.
The church has spent the past five years looking for a suitable plot of land, said Dr Kong, who founded it in 1989 as a small Bible study group of 20.
Suntec was its 26th attempt after other sites such as Lion City Hotel in Tanjong Katong and Iluma in Bras Basah Road were considered unsuitable due to their small size or likely traffic congestion.
Dr Kong revealed in January this year that CHC had secured a large complex in the 'central-south' district that also housed shops, restaurants and a 12,000-seat auditorium. Further details were unavailable then due to a non-disclosure agreement.
Yesterday, he told his congregation he had approached Suntec's new owners to explore the possibility of co-ownership in July last year, after an initial unsuccessful bid for the property in November 2008.
The option agreement was signed in six months, with the sale sealed on Feb 5.
The 33,000-strong megachurch is expected to move there by the second quarter of next year, after its lease at Singapore Expo expires. It will retain its Jurong West building for prayer services and Bible study.
Singaporean singer Sun Ho, who is married to Dr Kong, is also back this weekend - from Los Angeles, where she is currently based - for the celebrations.
The more than one million square feet of usable space in Suntec - equivalent to 25 soccer fields - would make it 20 times the size of the church's premises in Jurong West and 10 times the size of the hall it currently leases at Singapore Expo, Dr Kong said.
'This is a prime location with 78 years left in its lease. Right now we're paying $310 million, but how much is it going to be worth 30 years from now? I have to be a good steward...to maximise every dollar our members have given,' he said.
CHC told The Sunday Times it will be operating an 'ownership and lease' business model. This would allow the rent paid to Suntec Singapore to be recovered in the form of profits and dividends from space rental and tenant leases.
The church's plan is that its share of the profit from the business will eventually be able to cover the rent, and the financing will be self-sustaining.
With the opening of the Esplanade and Promenade MRT stations on the Circle Line next month, and together with the existing City Hall MRT station, members will have easier access to its services.
In a posting on the church website, Dr Kong wrote that the project 'allows us to move from a present expensive rental model to a more financially sustainable ownership model for the long term'.
He added that his present congregation is more than 14 times the capacity of its Jurong West building, which can accommodate only 2,300 people.
As to why the money was not spent on the poor and needy instead, Dr Kong said on the website that CHC spends 20 per cent of its annual budget on local community and overseas humanitarian work.
'With a facility to house the church's growing congregation and multifaceted ministries, we can serve the needs of the community in an even greater way.'
He said that while some areas will be used solely by CHC - such as the sixth and seventh storeys which will be used to house its 12,000-seater auditorium - other areas like the three ballrooms on the second floor and the exhibition halls will be open to the public for rental.
'But as co-owners of the entire convention centre, we have a share of the annual revenues of all facilities. Every time somebody rents a room there, we get a cut for the next 78 years,' he said.
The news coincided with the start of CHC's fund-raising drive that hopes to raise $17.3 million from this month to June, its fifth campaign in a series of 13. It has raised $99 million in its past four campaigns.
Knight Frank group managing director Danny Yeo said the acquisition was a good alternative to buying a plot of land.
'Existing plots of land offered by the Government are too small for the large auditorium that City Harvest is looking to build and it's even more difficult if you're looking for somewhere central.'
Similar plans were also announced in 2007 by New Creation Church, another large Christian group.
New Creation's business arm Rock Productions has teamed up with mall developer CapitaMalls Asia to build an 'integrated hub' in Buona Vista. When ready in 2012, the $1 billion project will house shops, a concert hall and a theatre.
Additional reporting by Yen Feng
ST : Property agents call for curbs on subletting
Mar 7, 2010
Property agents call for curbs on subletting
They say rule changes on reselling do not go far enough in controlling speculation
By Irene Tham
The slew of new measures announced by the Government last Friday to curb speculative buying and selling of Housing Board flats does not address one issue - subletting - said property experts.
Under current rules, buyers of resale HDB flats can sublet the entire flat after three years if they did not take a government grant or HDB loan.
If they bought the flat with the grant and HDB loan, the minimum stay-in period is five years.
'If you want to stop prices from rising and people from speculating, control the rental market too,' said Mr Raymond Quah, president of Dennis Wee Properties.
The rental market indirectly influences the price of resale flats, said agents.
Home owners, realising that they can make money from rentals, are unlikely to sell their flats should they go on to buy private property.
This may lead to a dip in the supply of resale flats in the market, resulting in resale flat prices going up, said Mr Steven Tan, executive director of OrangeTee's residential division.
There are also other factors that influence resale flat prices. One is the reselling of flats as soon as the minimum occupation period is up - one year for those who bought a resale flat without government subsidies or loans.
That is why the Government unveiled new rules last Friday to curb speculative buying and selling of public housing.
Among these new rules is one that states that the minimum occupation period for resale flats with and without subsidy is now three years.
The current rules on subletting were laid down in 2007 - after earlier rule changes in 2005 and 2003 - to allow more people to earn cash from leasing out their property.
Before 2003, owners were not allowed to rent out their flats unless they were working abroad, for example.
That year, HDB relaxed the rule to allow home owners to rent out their flats after 10 years if they had paid up the loan, and 15 years if they had not. In 2005, this was cut to five and 10 years respectively.
'But the circumstances are different now - prices have spiked - and it is time to go back to the old rules,' said Mr Quah.
There had been spikes in HDB resale prices in the three months following every rental rule change, suggesting there may be a connection between resale prices and subletting.
For instance, in the second quarter of 2003 following the February 2003 HDB rental rule change, resale prices went up by 2.13 per cent from first-quarter prices, according to HDB's resale price index. This compared with only a 0.2 per cent increase in the same period a year ago.
More recently, after further easing of subletting rules in March 2007, the three months that followed saw resale prices jump 2.95 per cent. This compares with a 0.98 per cent increase during the same period in 2006.
Ms Jarina Shamsudeen, an agent with property firm PropNex, also felt the Government should revert to the old subletting rules to control property prices.
Based on anecdotal evidence, more Singaporeans approaching 35 years old are buying and subletting their flats for income. 'Permanent residents are doing that too,' she said.
Ms Jarina suggested that only Singaporeans posted overseas should be allowed to sublet their flats, and that private home owners should also be barred from subletting.
According to OrangeTee's Mr Tan, tweaking subletting rules is necessary because 'no matter how small the contributing factors are, they do add up'.
He was responding to a comment from National Development Minister Mah Bow Tan that only
3 per cent - or 20,460 flats - of eligible homes are sublet.
Mr Mah suggested that most flat owners are buying their flats for occupation and not rental.
'If private property owners can buy HDB flats or keep their existing flat to earn money from rentals, the supply of resale HDB flats will dip,' Mr Tan said. This will push up the prices of resale flats.
Illegal subletting may have indirectly contributed to rising HDB prices, said Knight Frank consultant Peter Ow.
It is known that some people lock up a room in the flat but lease out the entire unit, exploiting a loophole in the law.
'This is not an issue of policy but policing,' Mr Ow said.
Unless rules are enforced rigorously, having them will not deter people from doing things behind the backs of the authorities.
'Even if there are rules to control subletting, people will still break them. So the rules - tighter or not - would not have much of an impact,' said an ERA agent who did not want to be named.
But not all home owners who rent out their flats are speculators.
Retiree Christine Chan, 65, rents out two rooms in her five-room flat in Choa Chu Kang as this is her only source of income.
'I cannot find employment anymore due to my age, so I rely on the $1,000 I make from renting out two rooms for retirement,' she said.
'I am not looking to make a quick buck. I feel that if the Government were to tighten the rules, it should make some exceptions.'
itham@sph.com.sg
Additional reporting by Kueh Xiu Qing and Sumita Sreedharan
Property agents call for curbs on subletting
They say rule changes on reselling do not go far enough in controlling speculation
By Irene Tham
The slew of new measures announced by the Government last Friday to curb speculative buying and selling of Housing Board flats does not address one issue - subletting - said property experts.
Under current rules, buyers of resale HDB flats can sublet the entire flat after three years if they did not take a government grant or HDB loan.
If they bought the flat with the grant and HDB loan, the minimum stay-in period is five years.
'If you want to stop prices from rising and people from speculating, control the rental market too,' said Mr Raymond Quah, president of Dennis Wee Properties.
The rental market indirectly influences the price of resale flats, said agents.
Home owners, realising that they can make money from rentals, are unlikely to sell their flats should they go on to buy private property.
This may lead to a dip in the supply of resale flats in the market, resulting in resale flat prices going up, said Mr Steven Tan, executive director of OrangeTee's residential division.
There are also other factors that influence resale flat prices. One is the reselling of flats as soon as the minimum occupation period is up - one year for those who bought a resale flat without government subsidies or loans.
That is why the Government unveiled new rules last Friday to curb speculative buying and selling of public housing.
Among these new rules is one that states that the minimum occupation period for resale flats with and without subsidy is now three years.
The current rules on subletting were laid down in 2007 - after earlier rule changes in 2005 and 2003 - to allow more people to earn cash from leasing out their property.
Before 2003, owners were not allowed to rent out their flats unless they were working abroad, for example.
That year, HDB relaxed the rule to allow home owners to rent out their flats after 10 years if they had paid up the loan, and 15 years if they had not. In 2005, this was cut to five and 10 years respectively.
'But the circumstances are different now - prices have spiked - and it is time to go back to the old rules,' said Mr Quah.
There had been spikes in HDB resale prices in the three months following every rental rule change, suggesting there may be a connection between resale prices and subletting.
For instance, in the second quarter of 2003 following the February 2003 HDB rental rule change, resale prices went up by 2.13 per cent from first-quarter prices, according to HDB's resale price index. This compared with only a 0.2 per cent increase in the same period a year ago.
More recently, after further easing of subletting rules in March 2007, the three months that followed saw resale prices jump 2.95 per cent. This compares with a 0.98 per cent increase during the same period in 2006.
Ms Jarina Shamsudeen, an agent with property firm PropNex, also felt the Government should revert to the old subletting rules to control property prices.
Based on anecdotal evidence, more Singaporeans approaching 35 years old are buying and subletting their flats for income. 'Permanent residents are doing that too,' she said.
Ms Jarina suggested that only Singaporeans posted overseas should be allowed to sublet their flats, and that private home owners should also be barred from subletting.
According to OrangeTee's Mr Tan, tweaking subletting rules is necessary because 'no matter how small the contributing factors are, they do add up'.
He was responding to a comment from National Development Minister Mah Bow Tan that only
3 per cent - or 20,460 flats - of eligible homes are sublet.
Mr Mah suggested that most flat owners are buying their flats for occupation and not rental.
'If private property owners can buy HDB flats or keep their existing flat to earn money from rentals, the supply of resale HDB flats will dip,' Mr Tan said. This will push up the prices of resale flats.
Illegal subletting may have indirectly contributed to rising HDB prices, said Knight Frank consultant Peter Ow.
It is known that some people lock up a room in the flat but lease out the entire unit, exploiting a loophole in the law.
'This is not an issue of policy but policing,' Mr Ow said.
Unless rules are enforced rigorously, having them will not deter people from doing things behind the backs of the authorities.
'Even if there are rules to control subletting, people will still break them. So the rules - tighter or not - would not have much of an impact,' said an ERA agent who did not want to be named.
But not all home owners who rent out their flats are speculators.
Retiree Christine Chan, 65, rents out two rooms in her five-room flat in Choa Chu Kang as this is her only source of income.
'I cannot find employment anymore due to my age, so I rely on the $1,000 I make from renting out two rooms for retirement,' she said.
'I am not looking to make a quick buck. I feel that if the Government were to tighten the rules, it should make some exceptions.'
itham@sph.com.sg
Additional reporting by Kueh Xiu Qing and Sumita Sreedharan
ST : Mixed feelings over Katong Mall revamp
Mar 7, 2010
Mixed feelings over Katong Mall revamp
Departing tenants fear losing customer base but some patrons welcome more shopping options
By Kueh Xiu Qing and Ng Hui Ying
A planned makeover of Katong Mall, a popular retail space in its heyday, has provoked mixed feelings and even grouses among tenants and their patrons.
Some worry about finding nearby retail space while others will miss its laid-back retro ambience.
Built in 1983, the mall has in recent years become an educational and enrichment hub for children, with several tenants offering services from tuition to ballet classes.
But its new owner wants to move with the times. Last year, it was reported that Perennial Katong Retail Trust bought over the mall for $247.6 million.
A $55 million revamp will see the mall converted into a food and beverage and lifestyle hub with facilities that include a cinema, foodcourt and gourmet supermarket.
The BreadTalk Group is already interested in leasing space there to house some of its brands, such as Food Republic and Din Tai Fung.
When The Sunday Times visited the mall last week, about 30 tenants - less than 20 per cent of the original number - were still there.
They have until June this year to move out. The makeover will take 12 to 15 months.
Several tenants said they had difficulty finding a new place in the vicinity so as to maintain their customer base.
Ms Vicky Yu, 42, a teacher at Forever Education School, which provides Chinese enrichment at primary level, said: 'Everyone's moving out at the same time, so many spots are filling up fast.
'In nearby Parkway Centre, only two units are left.'
Mr Peter Ng, 37, owner of Baby Meadows, a mothercare shop, has moved to Parkway Centre. He said: 'What I'll miss is the more personal feel of Katong Mall - it's not as busy or clinical as typical shopping malls.'
Mr Paul Lee, 44, founder of UniqArts & Technologies, which has moved to nearby Roxy Square, said: 'I'll definitely miss the mall. After being here for over 10 years, I'm familiar and comfortable with the environment, and am good friends with the other tenants.' He provides art and creativity programmes for children and adults.
Tenants moving farther away were worried about their customer bases. One tenant, who runs a Chinese language enrichment centre at primary level, said: 'We're moving to Joo Chiat and it's inconvenient for some customers.'
Some tenants felt the new management had kept them in the dark for a long time about its renovation plans. An employee of Lilac Fashion, which sells women's apparel and costume jewellery, said: 'Our queries were pushed around from person to person.'
Others said they had wanted to terminate their contracts early to facilitate their moves to new locations but were not allowed to do so.
When asked about these issues, a spokesman for the mall's owner said: 'We have been working closely and communicating with many tenants since Jan 29. For early termination, we have acceded to nearly all requests.'
Patrons had mixed views.
Mrs Lorraine Tan, 48, a housewife, said: 'The mall has built up a reputation as an education hub. It'll be inconvenient for parents like me who now have to travel from one place to another.'
Her daughter Teresa, eight, attended Chinese enrichment classes and piano lessons at two different providers in the mall. They have moved to different locations.
But Mrs Dawn Yee, 35, an image consultant, welcomed the change, saying: 'It's good to have more options. There is no other good mall nearby except Parkway Parade, which is always crowded.'
Mixed feelings over Katong Mall revamp
Departing tenants fear losing customer base but some patrons welcome more shopping options
By Kueh Xiu Qing and Ng Hui Ying
A planned makeover of Katong Mall, a popular retail space in its heyday, has provoked mixed feelings and even grouses among tenants and their patrons.
Some worry about finding nearby retail space while others will miss its laid-back retro ambience.
Built in 1983, the mall has in recent years become an educational and enrichment hub for children, with several tenants offering services from tuition to ballet classes.
But its new owner wants to move with the times. Last year, it was reported that Perennial Katong Retail Trust bought over the mall for $247.6 million.
A $55 million revamp will see the mall converted into a food and beverage and lifestyle hub with facilities that include a cinema, foodcourt and gourmet supermarket.
The BreadTalk Group is already interested in leasing space there to house some of its brands, such as Food Republic and Din Tai Fung.
When The Sunday Times visited the mall last week, about 30 tenants - less than 20 per cent of the original number - were still there.
They have until June this year to move out. The makeover will take 12 to 15 months.
Several tenants said they had difficulty finding a new place in the vicinity so as to maintain their customer base.
Ms Vicky Yu, 42, a teacher at Forever Education School, which provides Chinese enrichment at primary level, said: 'Everyone's moving out at the same time, so many spots are filling up fast.
'In nearby Parkway Centre, only two units are left.'
Mr Peter Ng, 37, owner of Baby Meadows, a mothercare shop, has moved to Parkway Centre. He said: 'What I'll miss is the more personal feel of Katong Mall - it's not as busy or clinical as typical shopping malls.'
Mr Paul Lee, 44, founder of UniqArts & Technologies, which has moved to nearby Roxy Square, said: 'I'll definitely miss the mall. After being here for over 10 years, I'm familiar and comfortable with the environment, and am good friends with the other tenants.' He provides art and creativity programmes for children and adults.
Tenants moving farther away were worried about their customer bases. One tenant, who runs a Chinese language enrichment centre at primary level, said: 'We're moving to Joo Chiat and it's inconvenient for some customers.'
Some tenants felt the new management had kept them in the dark for a long time about its renovation plans. An employee of Lilac Fashion, which sells women's apparel and costume jewellery, said: 'Our queries were pushed around from person to person.'
Others said they had wanted to terminate their contracts early to facilitate their moves to new locations but were not allowed to do so.
When asked about these issues, a spokesman for the mall's owner said: 'We have been working closely and communicating with many tenants since Jan 29. For early termination, we have acceded to nearly all requests.'
Patrons had mixed views.
Mrs Lorraine Tan, 48, a housewife, said: 'The mall has built up a reputation as an education hub. It'll be inconvenient for parents like me who now have to travel from one place to another.'
Her daughter Teresa, eight, attended Chinese enrichment classes and piano lessons at two different providers in the mall. They have moved to different locations.
But Mrs Dawn Yee, 35, an image consultant, welcomed the change, saying: 'It's good to have more options. There is no other good mall nearby except Parkway Parade, which is always crowded.'
ST : Get first pick at condo previews
Mar 7, 2010
Get first pick at condo previews
No longer as exclusive as before, they are a win-win for buyer and developer
By Joyce Teo
Official property launches, often announced in full-page colour advertisements in newspapers, are for the masses.
That is when the public throngs the showflat. Individuals, couples and families with kids in tow turn up in full force. Many are not really buyers.
What can a keen buyer do to avoid the crowds? He can simply head for the VVIP preview - a preview for very, very important persons, or quite simply, a preview.
Contrary to what the name suggests, you become truly important to developers these days once you show keen interest. Gone are the days - at least for now - when some developers screened their potential buyers.
'Previously, the VVIPs were bosses' friends, business associates. Now, anybody with money to buy will become one,' said a property agent who declined to be named.
'The whole intention (of the VVIP preview) is for the property agency to assess interest, and accumulate names of potential buyers. Nowadays, we assess the interest first, before the launch.'
Indeed, previews or soft launches are a way for developers to test the market. If the preview response is strong, the developer will likely raise prices come launch time, experts said.
Take the latest mass market preview of the 608-unit The Estuary in Yishun, which was launched yesterday. During the preview, its units went for an initial average price of $750 per sq ft.
But following strong demand after a preview starting on Feb 25 for staff, business associates and its property agencies' clients, developer MCL Land raised prices twice, by 2 per cent each time, for the new units released the following two days.
On Feb 25, about 150 units were snapped up. The next day, the figure was more than 200 units. By Feb 27, more than 300 of about 350 units that were released for sale were taken up.
For keen investors, attending a condo preview means getting the first bite of the cherry. 'You don't wait until the launch date to buy because the unit you want may not be available any more,' said ERA Asia-Pacific associate director Eugene Lim. 'Besides, the first day of the launch is usually packed.'
Buyers now do their homework way before the preview and why not, given the service property agents happily render these days? These agents now take a proactive approach and will even visit potential buyers' homes to do presentations on a new launch.
Mr Lim said property agents started doing presentations at potential buyers' homes last year.
Buyers can also get quite a lot of information these days on the Internet. 'You look at the floor plans, identify which unit you want to buy, and book it with the agent, all before the preview,' said Mr Lim.
Agents will give an indicative price range for the buyers to work with, as the property's pricing will be announced only on the preview day.
On the day itself, the agent will book the unit for his client, as long as the client's choice unit is available and it fits his budget, experts said.
'There's been a change of buying behaviour. Buyers used to want to see the showflat before they made a decision,' said Mr Steven Tan, executive director of OrangeTee's residential division. 'But during the boom in 2007, they realised the units they wanted were sold by the time they arrived at the showflat.'
He added: 'Buyers want to feel special. So agents now let them book the units first.'
joyceteo@sph.com.sg
Get first pick at condo previews
No longer as exclusive as before, they are a win-win for buyer and developer
By Joyce Teo
Official property launches, often announced in full-page colour advertisements in newspapers, are for the masses.
That is when the public throngs the showflat. Individuals, couples and families with kids in tow turn up in full force. Many are not really buyers.
What can a keen buyer do to avoid the crowds? He can simply head for the VVIP preview - a preview for very, very important persons, or quite simply, a preview.
Contrary to what the name suggests, you become truly important to developers these days once you show keen interest. Gone are the days - at least for now - when some developers screened their potential buyers.
'Previously, the VVIPs were bosses' friends, business associates. Now, anybody with money to buy will become one,' said a property agent who declined to be named.
'The whole intention (of the VVIP preview) is for the property agency to assess interest, and accumulate names of potential buyers. Nowadays, we assess the interest first, before the launch.'
Indeed, previews or soft launches are a way for developers to test the market. If the preview response is strong, the developer will likely raise prices come launch time, experts said.
Take the latest mass market preview of the 608-unit The Estuary in Yishun, which was launched yesterday. During the preview, its units went for an initial average price of $750 per sq ft.
But following strong demand after a preview starting on Feb 25 for staff, business associates and its property agencies' clients, developer MCL Land raised prices twice, by 2 per cent each time, for the new units released the following two days.
On Feb 25, about 150 units were snapped up. The next day, the figure was more than 200 units. By Feb 27, more than 300 of about 350 units that were released for sale were taken up.
For keen investors, attending a condo preview means getting the first bite of the cherry. 'You don't wait until the launch date to buy because the unit you want may not be available any more,' said ERA Asia-Pacific associate director Eugene Lim. 'Besides, the first day of the launch is usually packed.'
Buyers now do their homework way before the preview and why not, given the service property agents happily render these days? These agents now take a proactive approach and will even visit potential buyers' homes to do presentations on a new launch.
Mr Lim said property agents started doing presentations at potential buyers' homes last year.
Buyers can also get quite a lot of information these days on the Internet. 'You look at the floor plans, identify which unit you want to buy, and book it with the agent, all before the preview,' said Mr Lim.
Agents will give an indicative price range for the buyers to work with, as the property's pricing will be announced only on the preview day.
On the day itself, the agent will book the unit for his client, as long as the client's choice unit is available and it fits his budget, experts said.
'There's been a change of buying behaviour. Buyers used to want to see the showflat before they made a decision,' said Mr Steven Tan, executive director of OrangeTee's residential division. 'But during the boom in 2007, they realised the units they wanted were sold by the time they arrived at the showflat.'
He added: 'Buyers want to feel special. So agents now let them book the units first.'
joyceteo@sph.com.sg
ST : Prinsep's new life
Mar 7, 2010
Prinsep's new life
Once a sleepy enclave, Prinsep Street is now such a bustling spot, the valets there sometimes have to turn away customers
By Cara Van Miriah
It is a Thursday evening and Prinsep Street is heaving with funseekers. Cars line the narrow street in front of a stretch of shophouses that are venues for several drinking holes.
Yes, Prinsep Street. The once sleepy enclave located opposite Parklane Mall in Selegie Road has undergone a change.
Inside one of the shophouses, the Room Full Of Blues music bar, a four-piece live band entertain a crowded room with good old rock classics.
Next door, karaoke fans are crooning Mandarin ballads at the four-month-old LeBar.
Not far away, students and families are hard at play at the latest venue The Hangout Cafe, which offers boardgames, Xbox and Wii console games.
On weekends, the parking lots at the chill-out district are full and, sometimes, the valets have to turn customers away.
Prinsep Street has recently been drawing more working adults and families to its new food and beverage outlets, including year-old Sumomo Okonomiyaki Japanese eatery at Prinsep Place.
The shophouses along Prinsep are managed or owned by individuals and companies.
Mr Maximilien Fedkiw, who runs Le Bistrot du Sommelier at Prinsep Place, declines to reveal figures but says of the lively business vibe: 'Surprisingly, the weekdays have been fairly busy and we usually advise customers to make table reservations towards the end of the week.'
Mr Steven Low, 51, who runs Room Full Of Blues, says: 'The new tenants such as LeBar have attracted more young working adults to the area.
'There have also been more residents from the residential properties in the Mount Sophia and Wilkie estates coming here to unwind.'
He is one of the oldest tenants along Prinsep Street, having operated the bar there for 11 years.
For new business owners, Prinsep's proximity to the Singapore Management University, Nanyang Academy of Fine Arts and LaSalle College of the Arts is a draw.
It is also popular among young adults as a game venue with outlets such as Homeground, e-games and The Mind Cafe.
Ms Wong Kai Yun, 25, who runs The Hangout Cafe, chose Prinsep over a space in Bugis Junction as 'the student community is set to grow with the upcoming School of the Arts'.
The school is located opposite Prinsep Street.
Together with a partner, Ms Wong, a former auditor, sank a 'high six-figure' sum refurbishing the 297 sq m premises, which used to house a steamboat restaurant.
The Hangout Cafe, which is divided into two sections, caters to boardgame and console game lovers.
Another new kid on the block, Le Bar karaoke, opened its second outlet in Prinsep Street in October last year. The $300,000 Zen-inspired venue occupies two levels of a shophouse.
Its business development manager, MrZacc Tay, says: 'The area has matured and it no longer has that rowdy vibe. We also checked out the available space at the Boat Quay area but it seems to draw a younger crowd in their 20s.'
However, the popularity of Prinsep has also led to a rise in rentals.
Mr Low says: 'It has gone up from $3 to nearly $10 per square foot (psf) in a decade for the commercial properties in Prinsep.'
Ms Wong is paying about $6 psf but she says: 'I was offered about the same rental for a third-floor space in a shopping mall. But the advantage of being in a shophouse is that you get walk-in traffic from the street.'
She adds: 'The Prinsep area, which is part of the Bras Basah and Bugis precinct, is developing into a thriving entertainment and arts hub.'
And it is among the reasons British expatriate Russ Aldridge, a private banker, moved into a three-bedroom apartment in Sunshine Plaza in Prinsep Street early this year.
The 29-year-old bachelor says: 'I was drawn to the quaint F&B enclave. It's very convenient if you want to wine and dine or entertain friends. I don't have to travel so far.
'The shopping malls Iluma and Bugis Junction, plus the Singapore Art Museum and the National Museum, are also a stone's throw away.'
caravm@sph.com.sg
--------------------------------------------------------------------------------
'The weekdays have been fairly busy and we usually advise customers to make table reservations towards the end of the week.'
MR MAXIMILIEN FEDKIW on business at his Le Bistrot du Sommelier at Prinsep Place
Prinsep's new life
Once a sleepy enclave, Prinsep Street is now such a bustling spot, the valets there sometimes have to turn away customers
By Cara Van Miriah
It is a Thursday evening and Prinsep Street is heaving with funseekers. Cars line the narrow street in front of a stretch of shophouses that are venues for several drinking holes.
Yes, Prinsep Street. The once sleepy enclave located opposite Parklane Mall in Selegie Road has undergone a change.
Inside one of the shophouses, the Room Full Of Blues music bar, a four-piece live band entertain a crowded room with good old rock classics.
Next door, karaoke fans are crooning Mandarin ballads at the four-month-old LeBar.
Not far away, students and families are hard at play at the latest venue The Hangout Cafe, which offers boardgames, Xbox and Wii console games.
On weekends, the parking lots at the chill-out district are full and, sometimes, the valets have to turn customers away.
Prinsep Street has recently been drawing more working adults and families to its new food and beverage outlets, including year-old Sumomo Okonomiyaki Japanese eatery at Prinsep Place.
The shophouses along Prinsep are managed or owned by individuals and companies.
Mr Maximilien Fedkiw, who runs Le Bistrot du Sommelier at Prinsep Place, declines to reveal figures but says of the lively business vibe: 'Surprisingly, the weekdays have been fairly busy and we usually advise customers to make table reservations towards the end of the week.'
Mr Steven Low, 51, who runs Room Full Of Blues, says: 'The new tenants such as LeBar have attracted more young working adults to the area.
'There have also been more residents from the residential properties in the Mount Sophia and Wilkie estates coming here to unwind.'
He is one of the oldest tenants along Prinsep Street, having operated the bar there for 11 years.
For new business owners, Prinsep's proximity to the Singapore Management University, Nanyang Academy of Fine Arts and LaSalle College of the Arts is a draw.
It is also popular among young adults as a game venue with outlets such as Homeground, e-games and The Mind Cafe.
Ms Wong Kai Yun, 25, who runs The Hangout Cafe, chose Prinsep over a space in Bugis Junction as 'the student community is set to grow with the upcoming School of the Arts'.
The school is located opposite Prinsep Street.
Together with a partner, Ms Wong, a former auditor, sank a 'high six-figure' sum refurbishing the 297 sq m premises, which used to house a steamboat restaurant.
The Hangout Cafe, which is divided into two sections, caters to boardgame and console game lovers.
Another new kid on the block, Le Bar karaoke, opened its second outlet in Prinsep Street in October last year. The $300,000 Zen-inspired venue occupies two levels of a shophouse.
Its business development manager, MrZacc Tay, says: 'The area has matured and it no longer has that rowdy vibe. We also checked out the available space at the Boat Quay area but it seems to draw a younger crowd in their 20s.'
However, the popularity of Prinsep has also led to a rise in rentals.
Mr Low says: 'It has gone up from $3 to nearly $10 per square foot (psf) in a decade for the commercial properties in Prinsep.'
Ms Wong is paying about $6 psf but she says: 'I was offered about the same rental for a third-floor space in a shopping mall. But the advantage of being in a shophouse is that you get walk-in traffic from the street.'
She adds: 'The Prinsep area, which is part of the Bras Basah and Bugis precinct, is developing into a thriving entertainment and arts hub.'
And it is among the reasons British expatriate Russ Aldridge, a private banker, moved into a three-bedroom apartment in Sunshine Plaza in Prinsep Street early this year.
The 29-year-old bachelor says: 'I was drawn to the quaint F&B enclave. It's very convenient if you want to wine and dine or entertain friends. I don't have to travel so far.
'The shopping malls Iluma and Bugis Junction, plus the Singapore Art Museum and the National Museum, are also a stone's throw away.'
caravm@sph.com.sg
--------------------------------------------------------------------------------
'The weekdays have been fairly busy and we usually advise customers to make table reservations towards the end of the week.'
MR MAXIMILIEN FEDKIW on business at his Le Bistrot du Sommelier at Prinsep Place
ST : Two new nursing homes in the west
Mar 7, 2010
Two new nursing homes in the west
By Goh Chin Lian
Singapore's western region will have two new nursing homes by 2012, to meet the demands of the country's rapidly ageing population.
The Government will pick up the tab of building the facilities at Bukit Batok Street 51 and Jurong West Street 91, the Ministry of Health (MOH) said last month.
Each 250-bed home will cost an estimated $15 million to $20 million to build, it said in a document obtained by The Sunday Times
inviting consultants to provide building-related services.
The homes - scheduled to be completed around the second or third quarter of 2012 - are part of a plan to add 5,000 nursing-home beds here over a decade.
The Government is already footing the bill for three new 250-bed nursing homes in the northern region. They are due to open next year.
The three - in Yishun, Punggol and Sembawang - are estimated to cost $25 million each. They will be run by voluntary welfare organisations Villa Francis, Bright Hill Evergreen Home and Singapore Christian Home respectively.
The MOH told The Sunday Times it will identify the operators of the two new nursing homes in the west at a later stage.
Explaining the choice of location, it said there were fewer nursing homes in the west compared with the number in other regions.
Of the 63 nursing homes run by private operators and voluntary welfare organisations, seven are in the west.
The east and the north each have double that figure, while the central/south region has more than three times that number, the MOH said.
There were 9,200 nursing-home beds, as of December last year, but demand is expected to go up as the population of the elderly soars.
By 2030, 900,000 people here will be over the age of 65, about treble the number today.
The MOH said the new nursing homes in the west are expected to serve primarily subsidised patients. The facilities will not be very different from those in many existing purpose-built nursing homes, it added.
The new homes will be equipped to handle people with dementia who cannot do simple things like dressing or eating.
Five nursing homes in the west told The Sunday Times they have reached full - or almost full - capacity. Patients typically stay for a period ranging from a few months to several years.
Hong Kah GRC MP Ang Mong Seng, whose ward will include the Bukit Batok nursing home, noted the lack of nursing homes serving the western region.
As demand goes up, senior citizens in the area will benefit from having one close by, he said.
Two new nursing homes in the west
By Goh Chin Lian
Singapore's western region will have two new nursing homes by 2012, to meet the demands of the country's rapidly ageing population.
The Government will pick up the tab of building the facilities at Bukit Batok Street 51 and Jurong West Street 91, the Ministry of Health (MOH) said last month.
Each 250-bed home will cost an estimated $15 million to $20 million to build, it said in a document obtained by The Sunday Times
inviting consultants to provide building-related services.
The homes - scheduled to be completed around the second or third quarter of 2012 - are part of a plan to add 5,000 nursing-home beds here over a decade.
The Government is already footing the bill for three new 250-bed nursing homes in the northern region. They are due to open next year.
The three - in Yishun, Punggol and Sembawang - are estimated to cost $25 million each. They will be run by voluntary welfare organisations Villa Francis, Bright Hill Evergreen Home and Singapore Christian Home respectively.
The MOH told The Sunday Times it will identify the operators of the two new nursing homes in the west at a later stage.
Explaining the choice of location, it said there were fewer nursing homes in the west compared with the number in other regions.
Of the 63 nursing homes run by private operators and voluntary welfare organisations, seven are in the west.
The east and the north each have double that figure, while the central/south region has more than three times that number, the MOH said.
There were 9,200 nursing-home beds, as of December last year, but demand is expected to go up as the population of the elderly soars.
By 2030, 900,000 people here will be over the age of 65, about treble the number today.
The MOH said the new nursing homes in the west are expected to serve primarily subsidised patients. The facilities will not be very different from those in many existing purpose-built nursing homes, it added.
The new homes will be equipped to handle people with dementia who cannot do simple things like dressing or eating.
Five nursing homes in the west told The Sunday Times they have reached full - or almost full - capacity. Patients typically stay for a period ranging from a few months to several years.
Hong Kah GRC MP Ang Mong Seng, whose ward will include the Bukit Batok nursing home, noted the lack of nursing homes serving the western region.
As demand goes up, senior citizens in the area will benefit from having one close by, he said.
ASIAONE : Jumbo Queenstown flat valued at $1m
Jumbo Queenstown flat valued at $1m
15-year-old unit along Strathmore Ave is about 40% larger than most units there. -AsiaOne
Fri, Mar 05, 2010
AsiaOne
A Housing Development Board (HDB) flat in Queenstown has been valued at close to a million dollars, and its owner is considering selling the unit.
The 15-year-old apartment is one of units in the 25-storey blocks along Strathmore Avenue in Queenstown. It is about 10 minutes away from Queenstown MRT station, has a balcony, and reportedly an unobstructed view.
The property agent selling this unit told Shin Min Daily that based on the floor area, the flat has been valued at about $1 million.
Shin Min Daily reports that the flat's floor area totals 192 square metres, which is about 2000 square feet. Based on HDB statistics, Queenstown flats can fetch about $400 to $450 per square foot. Based on the rate of $450 psf, the unit is valued at more than $900,000.
However, units along Strathmore Avenue can often fetch a higher price. For example, in February, a flat of 110 square metres was sold for $688,000, which averages out to close to $600 psf. Looking at the transactions of five-room flats in that area in the last three months , the average price psf of is about $540.
Mr Steven Tan, executive director of property firm OrangeTee told Shin Min Daily that the average price psf of flats in that area should be above $500.
Property agents say that flats in that area usually transact in the range of $700,000, but they have not come across a flat of that size.
Mr Lim Yong Hock, senior vice president of PropNex told Shin Min Daily that most buyers of HDB flats will not have a budget of $1 million. For the same amount, the buyer can buy a unit in Toa Payoh, Redhill or Tiong Bahru, which are even nearer to town.
15-year-old unit along Strathmore Ave is about 40% larger than most units there. -AsiaOne
Fri, Mar 05, 2010
AsiaOne
A Housing Development Board (HDB) flat in Queenstown has been valued at close to a million dollars, and its owner is considering selling the unit.
The 15-year-old apartment is one of units in the 25-storey blocks along Strathmore Avenue in Queenstown. It is about 10 minutes away from Queenstown MRT station, has a balcony, and reportedly an unobstructed view.
The property agent selling this unit told Shin Min Daily that based on the floor area, the flat has been valued at about $1 million.
Shin Min Daily reports that the flat's floor area totals 192 square metres, which is about 2000 square feet. Based on HDB statistics, Queenstown flats can fetch about $400 to $450 per square foot. Based on the rate of $450 psf, the unit is valued at more than $900,000.
However, units along Strathmore Avenue can often fetch a higher price. For example, in February, a flat of 110 square metres was sold for $688,000, which averages out to close to $600 psf. Looking at the transactions of five-room flats in that area in the last three months , the average price psf of is about $540.
Mr Steven Tan, executive director of property firm OrangeTee told Shin Min Daily that the average price psf of flats in that area should be above $500.
Property agents say that flats in that area usually transact in the range of $700,000, but they have not come across a flat of that size.
Mr Lim Yong Hock, senior vice president of PropNex told Shin Min Daily that most buyers of HDB flats will not have a budget of $1 million. For the same amount, the buyer can buy a unit in Toa Payoh, Redhill or Tiong Bahru, which are even nearer to town.
CNA : Housing policy changes not enough for some PRs to take up citizenship
Housing policy changes not enough for some PRs to take up citizenship
By Joanne Chan, Channel NewsAsia | Posted: 06 March 2010 1911 hrs
SINGAPORE : The government has sharpened the differentiation in housing benefits enjoyed by citizens and permanent residents (PRs), but some PRs have said it is still not enough for them to take up citizenship.
And as revealed in Parliament on Friday, households comprising one citizen and one PR will now have to pay more to buy an HDB flat.
A new quota for non-Malaysian PRs has also been implemented to prevent enclaves from forming in estates.
28-year-old Vina Mubtadi has been a PR for the last 1.5 years.
She recently married a Singaporean, and the couple hopes to buy a flat soon and start a family.
With rising housing prices already a concern, the latest changes in housing policy will make it even more expensive for them to own a home.
Still, Ms Vina said she is not quite ready to give up her Indonesian citizenship, despite the carrot being dangled by the Singapore government.
She said: "If I give up my nationality, that means I cannot have a property in Indonesia. But if I stay a PR (in Singapore), although I have to pay a higher price to own a property here, at least I can have a property here and I can also have a property in Indonesia."
Previously, a household comprising one Singapore citizen and one PR would have enjoyed the same level of housing subsidies as a Singaporean couple.
With the changes, Singaporeans married to PRs will receive S$10,000 less in housing grants if they buy a resale flat. Alternatively, they will have to pay a S$10,000 premium if they buy a new HDB flat. However, the amount will be restored if the PR family member becomes a citizen, or if the couple has a child who is Singaporean.
National Development Minister Mah Bow Tan had also announced a new quota for non-Malaysian PRs in housing estates. He noted that this would help to encourage integration.
Market watchers said this may affect Singaporean homeowners more than the PRs.
David Poh, senior group district director, PropNex, explained: "If a certain estate has reached its maximum PR quota, then Singaporeans can only choose to sell to Singaporeans. So they cannot be so choosy about it, because if a PR wants to buy their house, they cannot sell it to them. So they probably cannot ask for too high a price.
"Whereas if you are a PR living in an estate with a full PR quota, then you can choose to sell to both Singaporeans and PRs. In this case, you probably can ask for a slightly higher price."
The quota is set at five per cent at the neighbourhood level, and eight per cent at the block level. This is in addition to the Ethnic Integration Policy already in place.
HDB said that 13 out of the 162 neighbourhoods islandwide are likely to be affected by the new quota for PRs. - CNA/ms
By Joanne Chan, Channel NewsAsia | Posted: 06 March 2010 1911 hrs
SINGAPORE : The government has sharpened the differentiation in housing benefits enjoyed by citizens and permanent residents (PRs), but some PRs have said it is still not enough for them to take up citizenship.
And as revealed in Parliament on Friday, households comprising one citizen and one PR will now have to pay more to buy an HDB flat.
A new quota for non-Malaysian PRs has also been implemented to prevent enclaves from forming in estates.
28-year-old Vina Mubtadi has been a PR for the last 1.5 years.
She recently married a Singaporean, and the couple hopes to buy a flat soon and start a family.
With rising housing prices already a concern, the latest changes in housing policy will make it even more expensive for them to own a home.
Still, Ms Vina said she is not quite ready to give up her Indonesian citizenship, despite the carrot being dangled by the Singapore government.
She said: "If I give up my nationality, that means I cannot have a property in Indonesia. But if I stay a PR (in Singapore), although I have to pay a higher price to own a property here, at least I can have a property here and I can also have a property in Indonesia."
Previously, a household comprising one Singapore citizen and one PR would have enjoyed the same level of housing subsidies as a Singaporean couple.
With the changes, Singaporeans married to PRs will receive S$10,000 less in housing grants if they buy a resale flat. Alternatively, they will have to pay a S$10,000 premium if they buy a new HDB flat. However, the amount will be restored if the PR family member becomes a citizen, or if the couple has a child who is Singaporean.
National Development Minister Mah Bow Tan had also announced a new quota for non-Malaysian PRs in housing estates. He noted that this would help to encourage integration.
Market watchers said this may affect Singaporean homeowners more than the PRs.
David Poh, senior group district director, PropNex, explained: "If a certain estate has reached its maximum PR quota, then Singaporeans can only choose to sell to Singaporeans. So they cannot be so choosy about it, because if a PR wants to buy their house, they cannot sell it to them. So they probably cannot ask for too high a price.
"Whereas if you are a PR living in an estate with a full PR quota, then you can choose to sell to both Singaporeans and PRs. In this case, you probably can ask for a slightly higher price."
The quota is set at five per cent at the neighbourhood level, and eight per cent at the block level. This is in addition to the Ethnic Integration Policy already in place.
HDB said that 13 out of the 162 neighbourhoods islandwide are likely to be affected by the new quota for PRs. - CNA/ms
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