Mar 9, 2010
Tweak rental rules for public flats
I REFER to Sunday's report, 'Property agents call for curbs on subletting'. It was mentioned that the new measures taken by the Government to reduce speculation may not be sufficient to keep prices of resale flats in check, since prices may still be driven up by those who keep flats to rent out rather than to occupy.
I believe a simple solution is to limit the number of HDB owners who can rent out their flats.
Some HDB owners may be compelled to rent out their flats because they have no other source of income or because they face financial difficulty. It would not be wise for the Government to restrict this group of owners who need the rental income to sustain themselves in the face of financial difficulty.
Nonetheless, HDB should not condone owners who view their HDB flats solely as a form of investment.
The Government should impose restrictions by not allowing owners whose income exceeds a certain limit or own private property to rent out their HDB flats.
This policy takes into account the predicament of owners who are genuinely in need of rental income and underlines the principle that flats are primarily intended to provide shelter.
Javern Sim
Wednesday, March 10, 2010
TODAY ONLINE : A more responsive trigger
A more responsive trigger
Also, a wider variety of sites in the second half
05:55 AM Mar 09, 2010
by Ong Dai Lin
SINGAPORE - The National Development Ministry has found a possible way to meet the call by the Economic Strategies Committee to make land supply more responsive to market forces.
And as it considers this new procedure - releasing sites for sale as long as more than one bid comes close to the Government's minimum asking price, within a reasonable period - the ministry announced a more immediate piece of good news for developers.
The deposit to be provided by successful applicants for Reserve List sites has been reduced from 5 per cent to 3 per cent of the minimum price, capped at $5 million.
This tweak to the Reserve List system will reduce the cash flow burden of successful bidders, National Development Minister Mah Bow Tan said as the parliamentary debate on his ministry's upcoming plans ended yesterday.
The Reserve List was introduced in 2001 to make more sites available to business needs, other than those on the Confirmed List of land sales. In the case of the former, a public tender is called only if a developer's bid matches or exceeds the Reserve Price for the site.
The system has "worked well", Mr Mah said, and a total of 65 sites have been successfully triggered and sold under the system. This includes 11 sites last year for residential, hotel and industrial developments.
So how might the lower deposit and potential new procedure impact prices and bidding?
As far as bidding prices - and home prices - go, property analysts said there would be little impact.
"It's unlikely to inadvertently drive up bidding prices as developers are likely to adopt the bigger picture when bidding for the land. Developers are expected to pay premiums for lands they are interested in, and which they see business potential in," said Mr Tan Tiong Cheng, chairman of property consultancy Knight Frank.
Market sentiments should still rule, added Mr Colin Tan, director of property consultancy Chesterton International. At this time, he said, developers are likely to put in higher bids because "they want to secure a land quickly to take advantage of the robust market". "They know that it will not last forever," he said.
More Home Choices, Better Prices
Of greater impact will be MND's final announcement yesterday, that the Government will make available a larger supply and wider variety of sites in the second half of the Government Land Sales Programme this year.
"If there are more attractive sites, developers may put in bids to trigger and that will create more activity in the market," said Mr Tan.
There are 22 sites listed now on the Reserve list now for residential, commercial and hotel purposes. With more sites available, "there would be more choices for homebuyers one to two years later," Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
"More choices for homebuyers could stabilise prices. With more choices, there is more supply out there and there's a possiblity that it will meet the demand and prices of houses will not increase at a very fast pace," said Mr Mak.
He thinks that most of the new sites will be residential ones, with the variety coming from more landed property sites, and mixed commercial and residential developments such as Jurong Point.
In the long term, all the measures could make for a steadier supply of developments, "especially in a turning market when reserve prices could be out of sync with market trends", said Dr Chua Yang Liang, director of research for southeast Asia from Jones Lang La Salle.
On the possible Reserve List procedure, he said: "This would ensure that sites are awarded not based primarily on minimum prices but a reflection of market demand, based on the number of bids offered."
In a statement yesterday, the Real Estate Developers Association welcomed the measures, particularly the deposit reduction and the releasing of sites from sufficient market interest, adding that they will "minimise cost burden" for successful applicants of the land bid.
Mr Mah also told Parliament yesterday that Singaporeans accounted for close to 90 per cent of all private housing transactions last year and gave the reassurance that "properties in Singapore still remain largely in the hands of Singaporeans" despite the influx of foreigners.
He added that buyers do not need to rush into the market as there is "an ample supply of private housing" to meet demand over the next two years.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
Also, a wider variety of sites in the second half
05:55 AM Mar 09, 2010
by Ong Dai Lin
SINGAPORE - The National Development Ministry has found a possible way to meet the call by the Economic Strategies Committee to make land supply more responsive to market forces.
And as it considers this new procedure - releasing sites for sale as long as more than one bid comes close to the Government's minimum asking price, within a reasonable period - the ministry announced a more immediate piece of good news for developers.
The deposit to be provided by successful applicants for Reserve List sites has been reduced from 5 per cent to 3 per cent of the minimum price, capped at $5 million.
This tweak to the Reserve List system will reduce the cash flow burden of successful bidders, National Development Minister Mah Bow Tan said as the parliamentary debate on his ministry's upcoming plans ended yesterday.
The Reserve List was introduced in 2001 to make more sites available to business needs, other than those on the Confirmed List of land sales. In the case of the former, a public tender is called only if a developer's bid matches or exceeds the Reserve Price for the site.
The system has "worked well", Mr Mah said, and a total of 65 sites have been successfully triggered and sold under the system. This includes 11 sites last year for residential, hotel and industrial developments.
So how might the lower deposit and potential new procedure impact prices and bidding?
As far as bidding prices - and home prices - go, property analysts said there would be little impact.
"It's unlikely to inadvertently drive up bidding prices as developers are likely to adopt the bigger picture when bidding for the land. Developers are expected to pay premiums for lands they are interested in, and which they see business potential in," said Mr Tan Tiong Cheng, chairman of property consultancy Knight Frank.
Market sentiments should still rule, added Mr Colin Tan, director of property consultancy Chesterton International. At this time, he said, developers are likely to put in higher bids because "they want to secure a land quickly to take advantage of the robust market". "They know that it will not last forever," he said.
More Home Choices, Better Prices
Of greater impact will be MND's final announcement yesterday, that the Government will make available a larger supply and wider variety of sites in the second half of the Government Land Sales Programme this year.
"If there are more attractive sites, developers may put in bids to trigger and that will create more activity in the market," said Mr Tan.
There are 22 sites listed now on the Reserve list now for residential, commercial and hotel purposes. With more sites available, "there would be more choices for homebuyers one to two years later," Ngee Ann Polytechnic real estate lecturer Nicholas Mak.
"More choices for homebuyers could stabilise prices. With more choices, there is more supply out there and there's a possiblity that it will meet the demand and prices of houses will not increase at a very fast pace," said Mr Mak.
He thinks that most of the new sites will be residential ones, with the variety coming from more landed property sites, and mixed commercial and residential developments such as Jurong Point.
In the long term, all the measures could make for a steadier supply of developments, "especially in a turning market when reserve prices could be out of sync with market trends", said Dr Chua Yang Liang, director of research for southeast Asia from Jones Lang La Salle.
On the possible Reserve List procedure, he said: "This would ensure that sites are awarded not based primarily on minimum prices but a reflection of market demand, based on the number of bids offered."
In a statement yesterday, the Real Estate Developers Association welcomed the measures, particularly the deposit reduction and the releasing of sites from sufficient market interest, adding that they will "minimise cost burden" for successful applicants of the land bid.
Mr Mah also told Parliament yesterday that Singaporeans accounted for close to 90 per cent of all private housing transactions last year and gave the reassurance that "properties in Singapore still remain largely in the hands of Singaporeans" despite the influx of foreigners.
He added that buyers do not need to rush into the market as there is "an ample supply of private housing" to meet demand over the next two years.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
ST Forum : Estate agent may have breached ethical code if...
Mar 9, 2010
Estate agent may have breached ethical code if...
I REFER to Mr Roger Tan's Forum Online letter yesterday, 'Agents trustworthy? Take it with a pinch of salt'.
We thank Mr Tan for sharing his encounter with a property agent. We agree that the agent should have explained to Mr Tan clearly why he was not given the Option to Purchase. The service lapse or misunderstanding could have been avoided.
It would appear from Mr Tan's version of the incident that it was the seller's appointed agent he negotiated with. While Mr Tan might have confirmed the sale price he was prepared to pay with the agent, he had not given the 1 per cent option money yet and no contract had been entered upon.
One likelihood is that the seller's agent might still have been trying to obtain the best possible sale price for his client by showing other prospective buyers before consolidating all offers for his client's consideration. There were at the same time instances when, unlike Mr Tan, buyers did not turn up to pay the 1 per cent option money as agreed and other potential buyers were turned away in the interim at the expense of sellers. It is also the seller's prerogative to decide finally on the sale.
The agent would have breached the ethical code if he had explicitly stated that Mr Tan's offer to his client would be presented only upon the latter's agreement to pay him a commission. Should this have arisen, he could be acting in dual representation and in conflict of interest with his seller-client. Or if the agent had concealed any offers to his client, he would also be acting unethically.
For alleged misconduct, Singapore Accredited Estate Agencies is prepared to probe and initiate disciplinary proceedings if the agent is accredited or the agency he works with is accredited, and the seller-client comes forward to lodge a complaint with Mr Tan.
Dr Tan Tee Khoon
Chief Executive Officer
Singapore Accredited Estate Agencies
Estate agent may have breached ethical code if...
I REFER to Mr Roger Tan's Forum Online letter yesterday, 'Agents trustworthy? Take it with a pinch of salt'.
We thank Mr Tan for sharing his encounter with a property agent. We agree that the agent should have explained to Mr Tan clearly why he was not given the Option to Purchase. The service lapse or misunderstanding could have been avoided.
It would appear from Mr Tan's version of the incident that it was the seller's appointed agent he negotiated with. While Mr Tan might have confirmed the sale price he was prepared to pay with the agent, he had not given the 1 per cent option money yet and no contract had been entered upon.
One likelihood is that the seller's agent might still have been trying to obtain the best possible sale price for his client by showing other prospective buyers before consolidating all offers for his client's consideration. There were at the same time instances when, unlike Mr Tan, buyers did not turn up to pay the 1 per cent option money as agreed and other potential buyers were turned away in the interim at the expense of sellers. It is also the seller's prerogative to decide finally on the sale.
The agent would have breached the ethical code if he had explicitly stated that Mr Tan's offer to his client would be presented only upon the latter's agreement to pay him a commission. Should this have arisen, he could be acting in dual representation and in conflict of interest with his seller-client. Or if the agent had concealed any offers to his client, he would also be acting unethically.
For alleged misconduct, Singapore Accredited Estate Agencies is prepared to probe and initiate disciplinary proceedings if the agent is accredited or the agency he works with is accredited, and the seller-client comes forward to lodge a complaint with Mr Tan.
Dr Tan Tee Khoon
Chief Executive Officer
Singapore Accredited Estate Agencies
TODAY Online : Grants, smaller flats instead of shorter lease tenure
Grants, smaller flats instead of shorter lease tenure
05:55 AM Mar 09, 2010
by Ong Dai Lin
SINGAPORE - Instead of reducing the HDB flat lease of 99 years to make the flats more affordable, the Government prefers to use other methods to help those with a lower income own a flat, said National Development Minister Mah Bow Tan.
Mr Mah told Parliament the HDB now provides additional grants to the lower-income group and builds smaller flats that are priced more affordably. Another way is to make sure higher-income flat applicants do not compete with them for the same flat - this is why the HDB has a income ceiling for applicants of two-and three-room flats. "With all these in place, we do not see any problem in making HDB flats affordable for first time lower-income families."
Having shorter leases of 60 years for young couples could also be an issue with time - "we are going to run into trouble especially when that particular family grows old", said the minister.
Mr Mah was also asked by MP Cedric Foo if Singaporeans are not buying the flats situated in poorer locations because they are not "priced correctly".
Mr Mah responded: "We do price these less attractive flats cheaper than the other flats. Is it cheap enough? I don't know how cheap is cheap enough."
"But I think the evidence says that people who reject these flats, some of them don't even look at the price when they do reject them. So, it's not just a matter of pricing." Ong Dai Lin
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
05:55 AM Mar 09, 2010
by Ong Dai Lin
SINGAPORE - Instead of reducing the HDB flat lease of 99 years to make the flats more affordable, the Government prefers to use other methods to help those with a lower income own a flat, said National Development Minister Mah Bow Tan.
Mr Mah told Parliament the HDB now provides additional grants to the lower-income group and builds smaller flats that are priced more affordably. Another way is to make sure higher-income flat applicants do not compete with them for the same flat - this is why the HDB has a income ceiling for applicants of two-and three-room flats. "With all these in place, we do not see any problem in making HDB flats affordable for first time lower-income families."
Having shorter leases of 60 years for young couples could also be an issue with time - "we are going to run into trouble especially when that particular family grows old", said the minister.
Mr Mah was also asked by MP Cedric Foo if Singaporeans are not buying the flats situated in poorer locations because they are not "priced correctly".
Mr Mah responded: "We do price these less attractive flats cheaper than the other flats. Is it cheap enough? I don't know how cheap is cheap enough."
"But I think the evidence says that people who reject these flats, some of them don't even look at the price when they do reject them. So, it's not just a matter of pricing." Ong Dai Lin
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
TODAY Online : 'Volume to be limited this year'
'Volume to be limited this year'
05:55 AM Mar 09, 2010
by Desmond Wong desmondwong@mediacorp.com.sg
SINGAPORE - Singapore's property market has been on a run but banks here are not likely to see a significant jump in home loans growth this year.
According to analysts, that is because they do not expect the number of transactions to increase greatly from last year, as the steam runs out of the mass market property segment, but they say support could come from interest in the mid-tier to high-end property sectors.
The number of home sales came in at between 33,000 and 34,000 last year, close to the peak seen in 2007 and that has helped Singapore banks pull through a challenging year.
However, market-watchers do not expect to see the same pace of growth in home sales this year and some say, this could put a dent in the plans of local banks to grow loans here as they try to expand.
DMG and Partners Securities' associate director and co-head of research Leng Seng Choon said: "From the over all perspective, if the loans market is only so big in Singapore, and a few major players want to expand their market share or have higher loan growth, we may see some of them falling behind in some of their guidance."
Recently, during their financial results briefing, DBS Bank and United Overseas Bank have suggested single digit growth in loans for the year, while OCBC Bank targets low double digits, with home loans making up about a quarter of their portfolios.
While the number of transactions may not increase as sharply as last year, their value may improve. This is because interest could be returning for the higher end of the property markets.
DTZ Debenham Tie Leung's head of South-east Asia research Chua Chor Hoon said: "In terms of value, they may be able to lend out more than they did last year and that is because prices have moved up a fair bit from last year, and we're seeing more interest in the mid-tier and higher end."
Analysts also said that growing economic stability could provide more help for banks. With job security and growth seemingly on the way, more buyers are expected to enter the market, expanding the pool of borrowers for local lenders.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
05:55 AM Mar 09, 2010
by Desmond Wong desmondwong@mediacorp.com.sg
SINGAPORE - Singapore's property market has been on a run but banks here are not likely to see a significant jump in home loans growth this year.
According to analysts, that is because they do not expect the number of transactions to increase greatly from last year, as the steam runs out of the mass market property segment, but they say support could come from interest in the mid-tier to high-end property sectors.
The number of home sales came in at between 33,000 and 34,000 last year, close to the peak seen in 2007 and that has helped Singapore banks pull through a challenging year.
However, market-watchers do not expect to see the same pace of growth in home sales this year and some say, this could put a dent in the plans of local banks to grow loans here as they try to expand.
DMG and Partners Securities' associate director and co-head of research Leng Seng Choon said: "From the over all perspective, if the loans market is only so big in Singapore, and a few major players want to expand their market share or have higher loan growth, we may see some of them falling behind in some of their guidance."
Recently, during their financial results briefing, DBS Bank and United Overseas Bank have suggested single digit growth in loans for the year, while OCBC Bank targets low double digits, with home loans making up about a quarter of their portfolios.
While the number of transactions may not increase as sharply as last year, their value may improve. This is because interest could be returning for the higher end of the property markets.
DTZ Debenham Tie Leung's head of South-east Asia research Chua Chor Hoon said: "In terms of value, they may be able to lend out more than they did last year and that is because prices have moved up a fair bit from last year, and we're seeing more interest in the mid-tier and higher end."
Analysts also said that growing economic stability could provide more help for banks. With job security and growth seemingly on the way, more buyers are expected to enter the market, expanding the pool of borrowers for local lenders.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
ST Forum : Long wait for flats a hurdle
Mar 9, 2010
HAVING MORE BABIES
Long wait for flats a hurdle
I REFER to last Friday's report, 'Baby bonus? Look into costs instead: Chiam', in which opposition MP Chiam See Tong said a more holistic approach is needed to tackle fertility trends.
We are a newly married couple with a combined income of about $6,500. A major obstacle we face is obtaining a flat we can pay for with our Central Provident Fund contributions, which will free us to set aside enough cash to have children.
Only two options are available to us: buying resale or build-to-order (BTO) flats. Resale is out of the question for reasons that are obvious: prohibitive prices. The second option, BTO, is a poor system for couples who want to have children for two reasons:
· First, the current generation of university graduates usually start work when they are about 25 years old. By the time they decide to apply for a BTO flat, they will already be in their late 20s or early 30s.
Factor in five more years of waiting before they move into their new home and couples can start having children only when they are in their early to late 30s. How does the Government expect us to have more children if such circumstances force us to start a family so late?
· Second, about 95 per cent of BTO flats are allocated to first-timers, mostly newly engaged or married couples. This ensures that most couples will start having children only after they move in, which is about five years later - when they are most likely over 30 years old.
If policymakers want Singaporeans to have more children, they should make housing available to us much earlier, preferably by the time we are 30. The point about the current low rate of fertility is not that my generation does not want to start a family early. It is the difficulty in obtaining a flat that makes it hard for us to start a family early. An earlier start will give us more precious time to plan for a larger family.
The Government can make it easier for us to buy a resale flat by offering the means to offset the cash-over-valuation component, or by increasing our housing grant.
Jason Zheng
HAVING MORE BABIES
Long wait for flats a hurdle
I REFER to last Friday's report, 'Baby bonus? Look into costs instead: Chiam', in which opposition MP Chiam See Tong said a more holistic approach is needed to tackle fertility trends.
We are a newly married couple with a combined income of about $6,500. A major obstacle we face is obtaining a flat we can pay for with our Central Provident Fund contributions, which will free us to set aside enough cash to have children.
Only two options are available to us: buying resale or build-to-order (BTO) flats. Resale is out of the question for reasons that are obvious: prohibitive prices. The second option, BTO, is a poor system for couples who want to have children for two reasons:
· First, the current generation of university graduates usually start work when they are about 25 years old. By the time they decide to apply for a BTO flat, they will already be in their late 20s or early 30s.
Factor in five more years of waiting before they move into their new home and couples can start having children only when they are in their early to late 30s. How does the Government expect us to have more children if such circumstances force us to start a family so late?
· Second, about 95 per cent of BTO flats are allocated to first-timers, mostly newly engaged or married couples. This ensures that most couples will start having children only after they move in, which is about five years later - when they are most likely over 30 years old.
If policymakers want Singaporeans to have more children, they should make housing available to us much earlier, preferably by the time we are 30. The point about the current low rate of fertility is not that my generation does not want to start a family early. It is the difficulty in obtaining a flat that makes it hard for us to start a family early. An earlier start will give us more precious time to plan for a larger family.
The Government can make it easier for us to buy a resale flat by offering the means to offset the cash-over-valuation component, or by increasing our housing grant.
Jason Zheng
ST : Govt keeping tabs on home prices
Mar 9, 2010
Govt keeping tabs on home prices
Reserve list system tweaked to make land supply flexible
By Jessica Cheam
THE Government will not introduce more measures relating to the property market for now, but will monitor the market closely, said National Development Minister Mah Bow Tan yesterday.
This follows a string of measures aimed at cooling both the private and HDB property markets unveiled by the Government in the past two months.
But Mr Mah said that to address land supply concerns - and to increase flexibility - the Government is tweaking one of the methods used to release new land sites, and will make more land available to developers.
He announced the move in Parliament during the Committee of Supply debate, as he fielded questions from several MPs on the health of the real estate sector.
Dr Amy Khor, MP for Hong Kah GRC, said complaints aired by buyers in recent months - on rising property prices and project sellouts - are 'symptomatic of short-term dislocations between the housing market and the overall economy'.
'If overall economic growth and property prices continue to diverge for a prolonged period, we run the risk of blowing a real estate bubble,' she said.
Mr Mah said the Government had acted quickly to pre-empt such a scenario by introducing measures to cool the market.
Last month it said a property buyer now has to pay extra stamp duty if he sells a property within a year. The proportion of the valuation price that buyers can borrow for home loans has also been cut.
Last September, the Government stopped allowing developers to absorb interest payments for homes under construction to deter speculative purchases.
When asked what other measures the Government would adopt to pre-empt runaway prices, Mr Mah said there would be no more measures for now. 'If there are signs that the market will overheat again, we are ready to introduce additional measures to stabilise the market.'
His comments are likely to come as a relief to an industry absorbing a slew of recent market-cooling measures.
Mr Mah recently also introduced new rules for the Housing Board (HDB) resale market: Buyers of non-subsidised HDB resale flats must now occupy their flats for at least three years before they can sell - up from 2.5 years or one year previously, depending on the financing.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said Mr Mah's assurance would give the market a breather to digest recent measures and see the impact.
Real Estate Developers' Association of Singapore (Redas) chief executive Steven Choo noted, however, that the Government's approach has not changed as it is still monitoring the market.
MP for Sembawang GRC Lim Wee Kiak asked what form future measures might take. Mr Mah replied: 'If I tell you, then there's no point having those other measures in place in our pockets.'
He also said the Government would ensure there was an adequate supply of land to support economic growth.
The Government is tweaking the Urban Redevelopment Authority's reserve site system in which sites are put out to tender if sufficient interest is shown.
With immediate effect, the deposit to be lodged by developers who trigger tenders under the reserve list will be cut from 5 per cent to 3 per cent of the minimum price, capped at $5 million.
The reserve list system offers sites on top of those on the confirmed list, which are tendered according to a set schedule.
The reduced deposit will help lower upfront costs and the cashflow burdens of developers, URA said.
Mr Mah also said the Government would consider releasing a reserve list site for sale immediately if more than one bidder submitted a price close to the Government's reserve price.
Previously, a site was released for sale only if a developer's submitted bid matched or exceeded the reserve price.
The Government will also offer a larger supply and wider variety of sites in the reserve list in the second half of the year to give developers more choice.
Details will be announced by June.
Industry observers said the tweaks could further cool the booming property market.
Mr Colin Tan, director of property consultancy Chesterton International, suggested however that the Government consider selling two or three sites at the same time to temper developers' bids - which have been aggressive in recent months as competition for land heats up as they seek to replenish their land banks.
jcheam@sph.com.sg
Govt keeping tabs on home prices
Reserve list system tweaked to make land supply flexible
By Jessica Cheam
THE Government will not introduce more measures relating to the property market for now, but will monitor the market closely, said National Development Minister Mah Bow Tan yesterday.
This follows a string of measures aimed at cooling both the private and HDB property markets unveiled by the Government in the past two months.
But Mr Mah said that to address land supply concerns - and to increase flexibility - the Government is tweaking one of the methods used to release new land sites, and will make more land available to developers.
He announced the move in Parliament during the Committee of Supply debate, as he fielded questions from several MPs on the health of the real estate sector.
Dr Amy Khor, MP for Hong Kah GRC, said complaints aired by buyers in recent months - on rising property prices and project sellouts - are 'symptomatic of short-term dislocations between the housing market and the overall economy'.
'If overall economic growth and property prices continue to diverge for a prolonged period, we run the risk of blowing a real estate bubble,' she said.
Mr Mah said the Government had acted quickly to pre-empt such a scenario by introducing measures to cool the market.
Last month it said a property buyer now has to pay extra stamp duty if he sells a property within a year. The proportion of the valuation price that buyers can borrow for home loans has also been cut.
Last September, the Government stopped allowing developers to absorb interest payments for homes under construction to deter speculative purchases.
When asked what other measures the Government would adopt to pre-empt runaway prices, Mr Mah said there would be no more measures for now. 'If there are signs that the market will overheat again, we are ready to introduce additional measures to stabilise the market.'
His comments are likely to come as a relief to an industry absorbing a slew of recent market-cooling measures.
Mr Mah recently also introduced new rules for the Housing Board (HDB) resale market: Buyers of non-subsidised HDB resale flats must now occupy their flats for at least three years before they can sell - up from 2.5 years or one year previously, depending on the financing.
Ngee Ann Polytechnic real estate lecturer Nicholas Mak said Mr Mah's assurance would give the market a breather to digest recent measures and see the impact.
Real Estate Developers' Association of Singapore (Redas) chief executive Steven Choo noted, however, that the Government's approach has not changed as it is still monitoring the market.
MP for Sembawang GRC Lim Wee Kiak asked what form future measures might take. Mr Mah replied: 'If I tell you, then there's no point having those other measures in place in our pockets.'
He also said the Government would ensure there was an adequate supply of land to support economic growth.
The Government is tweaking the Urban Redevelopment Authority's reserve site system in which sites are put out to tender if sufficient interest is shown.
With immediate effect, the deposit to be lodged by developers who trigger tenders under the reserve list will be cut from 5 per cent to 3 per cent of the minimum price, capped at $5 million.
The reserve list system offers sites on top of those on the confirmed list, which are tendered according to a set schedule.
The reduced deposit will help lower upfront costs and the cashflow burdens of developers, URA said.
Mr Mah also said the Government would consider releasing a reserve list site for sale immediately if more than one bidder submitted a price close to the Government's reserve price.
Previously, a site was released for sale only if a developer's submitted bid matched or exceeded the reserve price.
The Government will also offer a larger supply and wider variety of sites in the reserve list in the second half of the year to give developers more choice.
Details will be announced by June.
Industry observers said the tweaks could further cool the booming property market.
Mr Colin Tan, director of property consultancy Chesterton International, suggested however that the Government consider selling two or three sites at the same time to temper developers' bids - which have been aggressive in recent months as competition for land heats up as they seek to replenish their land banks.
jcheam@sph.com.sg
ST : Life's a beach but it's no holiday
Mar 9, 2010
Life's a beach but it's no holiday
Parents' irresponsibility, greed and policy are depriving kids of homes
By Radha Basu
MR I.B. YUSOF, a father of four young children, sold three Housing Board flats in nine years, netting $90,000 in profits.
Flush with cash after the first two sales, Mr Yusof, 44, took out a hefty bank loan and upgraded to a four-room flat in 2005. At the time, the sole breadwinner, who has a hearing-impaired wife, earned only $800 per month. He hoped to get a better job to pay for the new flat.
Then his fortunes dived. He lost his job as a technician in early 2006 and was unemployed for the next nine months. Living expenses ate up most of his savings. Unable to pay his loans, he was forced to sell his home in 2007.
The family stayed with relatives for nearly two years before being thrown out last June after his 13-year-old daughter was accused of theft. The beach became their home.
On Feb 21, Prime Minister Lee Hsien Loong advised Singaporeans not to sell their flats to make a quick buck. Days after his comments, two MPs told Parliament last week how, going by the cases they have handled, many families end up homeless because they sell off their flats and spend the cash.
The number of homeless people being picked up at beaches, void decks and parks has doubled in two years, with about 300 such individuals and families seeking help from the Ministry of Community Development, Youth and Sports last year alone.
Unlike in some countries, where people are often too poor to rent - let alone buy - their first home, homelessness in Singapore is often the result of personal irresponsibility, stemming from avarice or divorce and dysfunction.
Some, like Mr Yusof, commit to homes more expensive than they can afford. Others sell their homes for cash to settle gambling or credit card debts, and end up on the beach.
The HDB's move last week banning buyers of resale flats from selling them within three years of purchase will no doubt prevent some cash-strapped folk from churning their homes to pay off debts. But further changes - both at the personal and policy level - could help nip this nascent trend of homelessness in the bud. As the sorry sagas of Mr Yusof and others show, personal prudence is paramount.
Some wealthier folks who have alternative housing still try their luck at a highly subsidised rental flat, clogging up the queue for those genuinely without a roof over their heads. Some time ago, HDB discovered that one retired couple in the rental flat queue had no income, but owned nine private properties worth $6 million. Such people delay the truly needy from getting shelter.
At the systemic level, better credit assessment on the part of those who disburse loans can help weed out potential home buyers aiming to spend beyond their means. For instance, Mr Yusof was given a bank loan large enough to buy a four-room flat when his $800 a month was the only income for his family of six.
It's also time to ensure that irresponsible home sellers with no alternative accommodation don't fritter away profits - and waste the housing subsidies they receive from the HDB. For instance, those earning below a certain limit who have made use of HDB subsidies could be barred from selling their flats even after they have satisfied the HDB-stipulated minimum occupation period unless they can prove they have another place to live in the long term. The flats, after all, were subsidised by the Government so that they could be homes first, not assets to be pawned on a whim.
Meanwhile, families who are already homeless or on the verge of losing their homes also need more help.
The only two temporary shelters for such folk are packed, with dozens of families on the waiting list. More shelters are needed so that the children of the homeless, in particular, have a home, as social workers sort out the mess in their parents' lives.
The allocation of rental flats could also be made more flexible and fast for those who lose homes through no fault of their own - such as the elderly, divorced mothers and, above all, children. Contrary to popular belief, not all those in danger of losing their homes are feckless folk caught in an endless cycle of over-consumption.
One 27-year-old divorcee, who earns $800 a month and has never taken an HDB loan, was repeatedly denied the chance to rent or buy a resale flat with her six-year-old daughter because the child was born out of wedlock.
The duo shared a one-room flat with her siblings for a year. But the others drank and smoked heavily and brought home strangers at night. After this newspaper inquired about her plight with the HDB, she was told she would be given a rental flat on 'compassionate' grounds. She faces a year-long wait for a home - no thanks to those who could find some other place to stay but who try their luck for a rental flat.
The Government has so far shied away from automatically granting rental flats to mothers with young children for fear that the move will cause an explosion in divorce rates or illegitimate births. This fear is not unfounded. Britain, which offers the most generous welfare benefits for single mothers, also has the highest divorce rate in Europe. In a case that made headlines in Britain last month, a single mother of six rented a mansion in a London suburb for £7,000 (S$14,800) a month - fully paid for by taxpayers.
No one wants such excesses. But Singapore is probably near the other end of the scale at present, in terms of help for unwed or divorced mothers and their children. Shifting a step closer to the middle ground - like building more shelters for the homeless - would help.
A parsimonious approach that restricts help for the homeless for fear of moral hazard or 'abuse' actually creates problems in the long run if the children in homeless families do not get a chance to straighten out their lives.
Take the Yusof family. The elder daughter sat her Primary School Leaving Examination twice while the family shuttled between relatives' homes. She failed both times. I asked the reticent teen if the lack of a proper home had contributed to her poor performance. Her tears were the only answer.
Policies penalise parents for their reckless misdeeds. But their innocent children should be spared the consequences.
radhab@sph.com.sg
Life's a beach but it's no holiday
Parents' irresponsibility, greed and policy are depriving kids of homes
By Radha Basu
MR I.B. YUSOF, a father of four young children, sold three Housing Board flats in nine years, netting $90,000 in profits.
Flush with cash after the first two sales, Mr Yusof, 44, took out a hefty bank loan and upgraded to a four-room flat in 2005. At the time, the sole breadwinner, who has a hearing-impaired wife, earned only $800 per month. He hoped to get a better job to pay for the new flat.
Then his fortunes dived. He lost his job as a technician in early 2006 and was unemployed for the next nine months. Living expenses ate up most of his savings. Unable to pay his loans, he was forced to sell his home in 2007.
The family stayed with relatives for nearly two years before being thrown out last June after his 13-year-old daughter was accused of theft. The beach became their home.
On Feb 21, Prime Minister Lee Hsien Loong advised Singaporeans not to sell their flats to make a quick buck. Days after his comments, two MPs told Parliament last week how, going by the cases they have handled, many families end up homeless because they sell off their flats and spend the cash.
The number of homeless people being picked up at beaches, void decks and parks has doubled in two years, with about 300 such individuals and families seeking help from the Ministry of Community Development, Youth and Sports last year alone.
Unlike in some countries, where people are often too poor to rent - let alone buy - their first home, homelessness in Singapore is often the result of personal irresponsibility, stemming from avarice or divorce and dysfunction.
Some, like Mr Yusof, commit to homes more expensive than they can afford. Others sell their homes for cash to settle gambling or credit card debts, and end up on the beach.
The HDB's move last week banning buyers of resale flats from selling them within three years of purchase will no doubt prevent some cash-strapped folk from churning their homes to pay off debts. But further changes - both at the personal and policy level - could help nip this nascent trend of homelessness in the bud. As the sorry sagas of Mr Yusof and others show, personal prudence is paramount.
Some wealthier folks who have alternative housing still try their luck at a highly subsidised rental flat, clogging up the queue for those genuinely without a roof over their heads. Some time ago, HDB discovered that one retired couple in the rental flat queue had no income, but owned nine private properties worth $6 million. Such people delay the truly needy from getting shelter.
At the systemic level, better credit assessment on the part of those who disburse loans can help weed out potential home buyers aiming to spend beyond their means. For instance, Mr Yusof was given a bank loan large enough to buy a four-room flat when his $800 a month was the only income for his family of six.
It's also time to ensure that irresponsible home sellers with no alternative accommodation don't fritter away profits - and waste the housing subsidies they receive from the HDB. For instance, those earning below a certain limit who have made use of HDB subsidies could be barred from selling their flats even after they have satisfied the HDB-stipulated minimum occupation period unless they can prove they have another place to live in the long term. The flats, after all, were subsidised by the Government so that they could be homes first, not assets to be pawned on a whim.
Meanwhile, families who are already homeless or on the verge of losing their homes also need more help.
The only two temporary shelters for such folk are packed, with dozens of families on the waiting list. More shelters are needed so that the children of the homeless, in particular, have a home, as social workers sort out the mess in their parents' lives.
The allocation of rental flats could also be made more flexible and fast for those who lose homes through no fault of their own - such as the elderly, divorced mothers and, above all, children. Contrary to popular belief, not all those in danger of losing their homes are feckless folk caught in an endless cycle of over-consumption.
One 27-year-old divorcee, who earns $800 a month and has never taken an HDB loan, was repeatedly denied the chance to rent or buy a resale flat with her six-year-old daughter because the child was born out of wedlock.
The duo shared a one-room flat with her siblings for a year. But the others drank and smoked heavily and brought home strangers at night. After this newspaper inquired about her plight with the HDB, she was told she would be given a rental flat on 'compassionate' grounds. She faces a year-long wait for a home - no thanks to those who could find some other place to stay but who try their luck for a rental flat.
The Government has so far shied away from automatically granting rental flats to mothers with young children for fear that the move will cause an explosion in divorce rates or illegitimate births. This fear is not unfounded. Britain, which offers the most generous welfare benefits for single mothers, also has the highest divorce rate in Europe. In a case that made headlines in Britain last month, a single mother of six rented a mansion in a London suburb for £7,000 (S$14,800) a month - fully paid for by taxpayers.
No one wants such excesses. But Singapore is probably near the other end of the scale at present, in terms of help for unwed or divorced mothers and their children. Shifting a step closer to the middle ground - like building more shelters for the homeless - would help.
A parsimonious approach that restricts help for the homeless for fear of moral hazard or 'abuse' actually creates problems in the long run if the children in homeless families do not get a chance to straighten out their lives.
Take the Yusof family. The elder daughter sat her Primary School Leaving Examination twice while the family shuttled between relatives' homes. She failed both times. I asked the reticent teen if the lack of a proper home had contributed to her poor performance. Her tears were the only answer.
Policies penalise parents for their reckless misdeeds. But their innocent children should be spared the consequences.
radhab@sph.com.sg
ST Forum : Curbing subletting not the best solution
Mar 9, 2010
Curbing subletting not the best solution
WITH regard to property agents' call for curbs on subletting ('Property agents call for curbs on subletting', Sunday), I do not think the restrictions will work.
If 10,000 HDB flats and 10,000 private flats are available for subletting, and the HDB introduces a new rule that means only 7,000 HDB flats are available, the net supply reduction of rental homes will push tenants to compete for the remaining 17,000 HDB or private flats and individual rooms in HDB or private flats.
The net result is an increase in rental rates. This increase in rental rates will encourage people to buy more HDB and private flats for rental return or capital gain.
In other words, tweaking the rules will only redistribute rental income among home owners.
A more effective solution is to moderately regulate dual ownership of HDB and private property by taxation, rental restriction and other ways.
This will reduce actual demand for homes, rental rates and home prices.
David Loo
Curbing subletting not the best solution
WITH regard to property agents' call for curbs on subletting ('Property agents call for curbs on subletting', Sunday), I do not think the restrictions will work.
If 10,000 HDB flats and 10,000 private flats are available for subletting, and the HDB introduces a new rule that means only 7,000 HDB flats are available, the net supply reduction of rental homes will push tenants to compete for the remaining 17,000 HDB or private flats and individual rooms in HDB or private flats.
The net result is an increase in rental rates. This increase in rental rates will encourage people to buy more HDB and private flats for rental return or capital gain.
In other words, tweaking the rules will only redistribute rental income among home owners.
A more effective solution is to moderately regulate dual ownership of HDB and private property by taxation, rental restriction and other ways.
This will reduce actual demand for homes, rental rates and home prices.
David Loo
ST Forum : Restrict en bloc sales to older properties
Mar 9, 2010
Restrict en bloc sales to older properties
I REFER to last Wednesday's letter by the Ministry of Law, 'Allowing one
owner to stop majority untenable', in response to Mr Tan Keng Ann's letter,
'Review law on en bloc sales' (Feb 27).
In the same manner, it is also untenable that 90 per cent of owners of
property developments less than 10 years old, and 80 per cent for
developments at least 10 years old, can decide to sell such properties
collectively.
This is because it is wasteful of resources to demolish buildings by using
the 'less than 10 years' or 'at least 10 years' benchmarks.
Therefore I suggest the Government review the law on collective sales and
restrict the age of such properties to at least 40 years old.
Not only is it less wasteful but also the building's owners can at least
enjoy a lifetime there, even if the collective sale is eventually
successful.
Tony Lee
Restrict en bloc sales to older properties
I REFER to last Wednesday's letter by the Ministry of Law, 'Allowing one
owner to stop majority untenable', in response to Mr Tan Keng Ann's letter,
'Review law on en bloc sales' (Feb 27).
In the same manner, it is also untenable that 90 per cent of owners of
property developments less than 10 years old, and 80 per cent for
developments at least 10 years old, can decide to sell such properties
collectively.
This is because it is wasteful of resources to demolish buildings by using
the 'less than 10 years' or 'at least 10 years' benchmarks.
Therefore I suggest the Government review the law on collective sales and
restrict the age of such properties to at least 40 years old.
Not only is it less wasteful but also the building's owners can at least
enjoy a lifetime there, even if the collective sale is eventually
successful.
Tony Lee
ST : Govt agencies to move to alternative city centres
Mar 9, 2010
budget debate
Govt agencies to move to alternative city centres
IT IS full steam ahead for Singapore's new growth areas such as Jurong and Paya Lebar as the Government ramps up plans to develop the Republic's alternative city centres.
National Development Minister Mah Bow Tan yesterday said several government agencies, including the Ministry of National Development (MND) and some of its statutory boards, will relocate to Jurong Gateway by 2015.
The development of new growth areas such as Jurong Gateway, Paya Lebar Central and Kallang Riverside was first announced in the Urban Redevelopment Authority's (URA) draft Masterplan 2008.
'Despite the downturn, we pressed on with infrastructure works and more sites at these areas will be progressively released for development from this year onwards,' said Mr Mah in Parliament.
'Together with Grade A office space in the CBD, they will offer commercial firms more choices in business locations,' he said.
The Agri-Food and Veterinary Authority, the Building and Construction Authority - along with the Ministry of the Environment and Water Resources and its statutory boards - are planning to move to Jurong by 2015, said Mr Mah.
The Singapore Workforce Development Agency will move to Paya Lebar Central, while its new Continuing Education and Training Campus, due for completion by 2013, will also be located there.
Mr Mah said the relocations will free up prime office space in the city to meet private sector demand: 'By 2015, the current supply of about one million sq m of office space in the pipeline should have been taken up. The relocation... will help to free up more space for the private sector.'
Responding to questions raised by MPs such as Mr Teo Ser Luck (Pasir Ris-Punggol GRC) and Ms Jessica Tan (East Coast GRC) on land constraints on growth, Mr Mah said MND and URA have embarked on the Concept Plan 2011 which will chart Singapore's land use strategies over the next 40 to 50 years.
'Under the review, we will develop strategies to increase land productivity to support future growth,' he said.
Mr Mah also noted that as a key city in growing Asia, Singapore will naturally see foreign interest in private residential properties here. But he said Singapore residents still account for nearly 90 per cent of all private housing transactions last year.
He was responding to Mr Liang Eng Hwa (Holland-Bukit Timah GRC), who asked about foreign buyers and steps to pre-empt a collective sale fever.
Mr Mah said the Ministry of Law has been reviewing existing en-bloc sale regulations, and has been taking feedback and suggestions from members of the public. Any changes to collective sale rules will be announced by the ministry in due course.
JESSICA CHEAM
budget debate
Govt agencies to move to alternative city centres
IT IS full steam ahead for Singapore's new growth areas such as Jurong and Paya Lebar as the Government ramps up plans to develop the Republic's alternative city centres.
National Development Minister Mah Bow Tan yesterday said several government agencies, including the Ministry of National Development (MND) and some of its statutory boards, will relocate to Jurong Gateway by 2015.
The development of new growth areas such as Jurong Gateway, Paya Lebar Central and Kallang Riverside was first announced in the Urban Redevelopment Authority's (URA) draft Masterplan 2008.
'Despite the downturn, we pressed on with infrastructure works and more sites at these areas will be progressively released for development from this year onwards,' said Mr Mah in Parliament.
'Together with Grade A office space in the CBD, they will offer commercial firms more choices in business locations,' he said.
The Agri-Food and Veterinary Authority, the Building and Construction Authority - along with the Ministry of the Environment and Water Resources and its statutory boards - are planning to move to Jurong by 2015, said Mr Mah.
The Singapore Workforce Development Agency will move to Paya Lebar Central, while its new Continuing Education and Training Campus, due for completion by 2013, will also be located there.
Mr Mah said the relocations will free up prime office space in the city to meet private sector demand: 'By 2015, the current supply of about one million sq m of office space in the pipeline should have been taken up. The relocation... will help to free up more space for the private sector.'
Responding to questions raised by MPs such as Mr Teo Ser Luck (Pasir Ris-Punggol GRC) and Ms Jessica Tan (East Coast GRC) on land constraints on growth, Mr Mah said MND and URA have embarked on the Concept Plan 2011 which will chart Singapore's land use strategies over the next 40 to 50 years.
'Under the review, we will develop strategies to increase land productivity to support future growth,' he said.
Mr Mah also noted that as a key city in growing Asia, Singapore will naturally see foreign interest in private residential properties here. But he said Singapore residents still account for nearly 90 per cent of all private housing transactions last year.
He was responding to Mr Liang Eng Hwa (Holland-Bukit Timah GRC), who asked about foreign buyers and steps to pre-empt a collective sale fever.
Mr Mah said the Ministry of Law has been reviewing existing en-bloc sale regulations, and has been taking feedback and suggestions from members of the public. Any changes to collective sale rules will be announced by the ministry in due course.
JESSICA CHEAM
ST : MND considers total ecosystem in planning
Mar 9, 2010
budget debate
MND considers total ecosystem in planning
IN ITS urban planning blueprints, the Ministry for National Development (MND) won't miss the forest for the trees. Instead, it takes a well-rounded approach when drawing up its development concept plans, taking into account existing infrastructure and consulting MPs and other agencies.
This was National Development Minister Mah Bow Tan's assurance to the House yesterday. 'When we do make changes, they will be taken as a whole. It's not just development for its own sake,' he said.
'On an overall basis, the whole planning process takes into account the whole gamut of requirements, ranging from housing, to roads, to schools, to nature areas, even right down to things like markets, places of worship and so on.'
Earlier, Mr Lim Biow Chuan (Marine Parade GRC) had asked about the Government's planning methods. Were new projects drawn up in isolation, or was the total 'ecosystem' of the area taken into account?
He was particularly concerned about the growing density of the Amber and Katong areas. After the Urban Redevelopment Authority (URA) approved the construction of new residences in the area, a clutch of condominiums had sprung up. With more such estates on the way, traffic congestion, overcrowding and rising social pressure are becoming a definite possibility, Mr Lim said.
Mr Mah said the URA's integrated approach to planning would mitigate such problems. In fact, the development of the Amber and Katong districts was precisely an example of such consultation bearing fruit.
'The master plan takes into account what the increased density in the area means for traffic congestion and discussions were held with the relevant agencies, such as the Land Transport Authority.'
This helped the URA pre-empt overcrowding, he explained. The MRT network will be extended into the area and the Marina Coastal Expressway will take pressure off the existing East Coast Parkway.
'I think this is one of the strengths of the Singapore planning system: That when we plan, we plan it on a holistic level, taking everything into consideration,' he said.
RACHEL LIN
budget debate
MND considers total ecosystem in planning
IN ITS urban planning blueprints, the Ministry for National Development (MND) won't miss the forest for the trees. Instead, it takes a well-rounded approach when drawing up its development concept plans, taking into account existing infrastructure and consulting MPs and other agencies.
This was National Development Minister Mah Bow Tan's assurance to the House yesterday. 'When we do make changes, they will be taken as a whole. It's not just development for its own sake,' he said.
'On an overall basis, the whole planning process takes into account the whole gamut of requirements, ranging from housing, to roads, to schools, to nature areas, even right down to things like markets, places of worship and so on.'
Earlier, Mr Lim Biow Chuan (Marine Parade GRC) had asked about the Government's planning methods. Were new projects drawn up in isolation, or was the total 'ecosystem' of the area taken into account?
He was particularly concerned about the growing density of the Amber and Katong areas. After the Urban Redevelopment Authority (URA) approved the construction of new residences in the area, a clutch of condominiums had sprung up. With more such estates on the way, traffic congestion, overcrowding and rising social pressure are becoming a definite possibility, Mr Lim said.
Mr Mah said the URA's integrated approach to planning would mitigate such problems. In fact, the development of the Amber and Katong districts was precisely an example of such consultation bearing fruit.
'The master plan takes into account what the increased density in the area means for traffic congestion and discussions were held with the relevant agencies, such as the Land Transport Authority.'
This helped the URA pre-empt overcrowding, he explained. The MRT network will be extended into the area and the Marina Coastal Expressway will take pressure off the existing East Coast Parkway.
'I think this is one of the strengths of the Singapore planning system: That when we plan, we plan it on a holistic level, taking everything into consideration,' he said.
RACHEL LIN
ST : Shhh! No noisy work near homes on Sunday mornings
Mar 9, 2010
Shhh! No noisy work near homes on Sunday mornings
By Grace Chua
THE noise from construction projects has long been the bane of residents hoping to sleep in on Sundays.
But there is hope for some peace soon.
From Sept 1, all new projects will have to stop work from 10pm on Saturday to 10am on Sunday.
This ban applies to any building project within 150m of a residential area. It also applies to the eve of public holidays and public holidays.
The duration of the ban will be further extended next year, with the stop-work rule stretching from 10pm on Saturday till Monday morning.
It will start from Sept 1 next year and apply to new projects that begin work then.
These measures, announced by Minister for the Environment and Water Resources Yaacob Ibrahim in Parliament yesterday, were greeted with equanimity by contractors.
Mr Andrew Khng, president of the Singapore Contractors Association, told The Straits Times: 'I don't think it's a huge burden. Contractors and workers also need time at the weekend to rest.
'We will probably work harder during weekdays.'
Currently, contractors can bang away on Sundays as long as the noise level from 7am to 7pm stays under 75 decibels, which is close to the sound of a car travelling on a road.
After 7pm, the noise level has to go down to 65 decibels till 10pm, when all work must stop.
But, said MP Hri Kumar Nair, 'there will be instances where the work will from time to time exceed the limit but not break the regulations because it is sustained'.
Added the Bishan-Toa Payoh GRC MP: 'This is of little comfort to those who have had their rest disturbed.'
Dr Yaacob admitted as much when he disclosed that 12,000 complaints were received last year. That is around 33 a day.
It was worse in 2008, when the National Environment Agency (NEA) received 14,000 complaints, up from 9,000 in 2007 and 6,000 in 2006.
MP Lim Biow Chuan (Marine Parade GRC) noted that construction noise in the middle of the night seems louder, as there is no other background noise to drown it out.
The NEA estimates that the new measures will raise construction costs by 2 to 2.5 per cent, and projects will take 10 to 17 per cent longer to finish.
While residents interviewed welcomed the move, they felt more could be done.
Mr David Seah, 54, whose Farrer Road home is a stone's throw from the construction site of a Circle Line MRT station, suggested that the Government plant more trees and shrubs in his estate to act as a sound buffer.
Mr Seah, who works the evening shift in the food business, said: 'They should consider people who do shift work.'
To reduce noise from cars and other vehicles, the NEA will introduce standards to match those of Japan and the European Union.
These will take effect from Oct 1 this year.
An ongoing construction project in Woodlands with a housing block next door. In Singapore, one is never far from a construction site. But residents will be able to sleep easier on weekends once new measures are in place to cut construction noise. -- ST PHOTO: TERENCE TAN
Shhh! No noisy work near homes on Sunday mornings
By Grace Chua
THE noise from construction projects has long been the bane of residents hoping to sleep in on Sundays.
But there is hope for some peace soon.
From Sept 1, all new projects will have to stop work from 10pm on Saturday to 10am on Sunday.
This ban applies to any building project within 150m of a residential area. It also applies to the eve of public holidays and public holidays.
The duration of the ban will be further extended next year, with the stop-work rule stretching from 10pm on Saturday till Monday morning.
It will start from Sept 1 next year and apply to new projects that begin work then.
These measures, announced by Minister for the Environment and Water Resources Yaacob Ibrahim in Parliament yesterday, were greeted with equanimity by contractors.
Mr Andrew Khng, president of the Singapore Contractors Association, told The Straits Times: 'I don't think it's a huge burden. Contractors and workers also need time at the weekend to rest.
'We will probably work harder during weekdays.'
Currently, contractors can bang away on Sundays as long as the noise level from 7am to 7pm stays under 75 decibels, which is close to the sound of a car travelling on a road.
After 7pm, the noise level has to go down to 65 decibels till 10pm, when all work must stop.
But, said MP Hri Kumar Nair, 'there will be instances where the work will from time to time exceed the limit but not break the regulations because it is sustained'.
Added the Bishan-Toa Payoh GRC MP: 'This is of little comfort to those who have had their rest disturbed.'
Dr Yaacob admitted as much when he disclosed that 12,000 complaints were received last year. That is around 33 a day.
It was worse in 2008, when the National Environment Agency (NEA) received 14,000 complaints, up from 9,000 in 2007 and 6,000 in 2006.
MP Lim Biow Chuan (Marine Parade GRC) noted that construction noise in the middle of the night seems louder, as there is no other background noise to drown it out.
The NEA estimates that the new measures will raise construction costs by 2 to 2.5 per cent, and projects will take 10 to 17 per cent longer to finish.
While residents interviewed welcomed the move, they felt more could be done.
Mr David Seah, 54, whose Farrer Road home is a stone's throw from the construction site of a Circle Line MRT station, suggested that the Government plant more trees and shrubs in his estate to act as a sound buffer.
Mr Seah, who works the evening shift in the food business, said: 'They should consider people who do shift work.'
To reduce noise from cars and other vehicles, the NEA will introduce standards to match those of Japan and the European Union.
These will take effect from Oct 1 this year.
An ongoing construction project in Woodlands with a housing block next door. In Singapore, one is never far from a construction site. But residents will be able to sleep easier on weekends once new measures are in place to cut construction noise. -- ST PHOTO: TERENCE TAN
ST : Conservancy fees up at two town councils
Mar 9, 2010
Conservancy fees up at two town councils
Higher maintenance and operating costs cited, particularly for new lifts
By Carolyn Quek & Kimberly Spykerman
ALJUNIED and Jurong town councils will raise their monthly service and conservancy (S&C) charges from April for the first time in five years.
They have cited higher maintenance and operating costs - particularly for the numerous new lifts in the older estates - as reasons for the hike.
Charges will go up by between 50 cents and $4.50 for Singapore homeowners, depending on the type of flat.
This will raise the charges to between $19.50 for a one-room flat in Jurong and $109.50 for an HUDC apartment in Aljunied each month.
The increase for permanent residents and foreigners will be between $2.80 and $7.50. They already pay more in fees than Singaporeans, providing a larger baseline for the increase. Aljunied Town Council, for example, will raise fees by between 5.5 and 7per cent.
The changes are expected to affect about 50,000 households in Aljunied and 53,500 households in Jurong.
Rates will also go up for shops, offices and market stalls in the estates.
While Jurong did not give details, Aljunied said its shops will now have to pay $1.83 per sq m, up from $1.66 per sq m. Market and hawker stalls have to pay between $6.27 and $21.65 more.
Checks on the websites of the 14 other town councils, all of which charge different S&C fees, showed no one else is raising them.
MPs for both Aljunied and Jurong GRCs said they were older estates which, because of the Lift Upgrading Programme, have an influx of new lifts, all of which need to be maintained.
In circulars sent out to residents and lessees of shops, offices and hawker stalls, both town councils said the hikes were to pay for higher electricity tariffs and cleaning expenses, in addition to the upkeep of new lifts.
Though tariffs have fluctuated, they have risen by 38.4 per cent between October 2004 and January this year, they said.
Jurong noted that electricity charges formed 30 per cent of its overall operating costs and would increase with 'the installation of more lifts, linkways and amenities within the town'.
But it is lift maintenance which takes up the biggest chunk of funds, said MPs for both town councils.
In Aljunied GRC, 1,109 blocks are now equipped with lifts stopping at every level, up from 884 in 2005. In Jurong, the figure is now 1,139, up from 1,002 in 2005.
On its website, Aljunied Town Council said it was 'no longer sustainable' to maintain charges at the current level without running into an operating deficit. Keeping the current charges would mean deteriorating standards over time, which would only raise costs further.
MP for Aljunied GRC Cynthia Phua said that while Singapore was emerging from a recession, she was mindful there was 'no good time' for a fee hike.
She told The Straits Times that the town council had wanted to increase the fees as early as February 2008, but held back as high inflation rates were adding to residents' burdens. Finance Minister Tharman Shanmugaratnam had called on town councils then to freeze their fees but left it to them to make the call.
Then the recession hit last year, and the town council had to absorb the costs.
'We are playing catch-up with costs now, and we also have to set aside money for future costs,' she said.
On their websites, both town councils said the increases were not tied to losses made in investments linked to the failed Lehman Brothers investment bank.
In 2008, town council investments came under the spotlight when it was revealed in Parliament that several had sunk a total of $16 million into such products. Jurong was not one of them, but Aljunied had some exposure.
On their websites, both town councils claimed to have made money from their investments.
Both MPs also said that the town councils would help residents who might find the fee hike difficult to afford.
'We can consider their case, and help will be provided to them,' said Madam Halimah Yacob for Jurong GRC.
Aljunied also said in its FAQs that it does not expect S&C fee arrears to rise.
carolynq@sph.com.sg
kimspyke@sph.com.sg
Conservancy fees up at two town councils
Higher maintenance and operating costs cited, particularly for new lifts
By Carolyn Quek & Kimberly Spykerman
ALJUNIED and Jurong town councils will raise their monthly service and conservancy (S&C) charges from April for the first time in five years.
They have cited higher maintenance and operating costs - particularly for the numerous new lifts in the older estates - as reasons for the hike.
Charges will go up by between 50 cents and $4.50 for Singapore homeowners, depending on the type of flat.
This will raise the charges to between $19.50 for a one-room flat in Jurong and $109.50 for an HUDC apartment in Aljunied each month.
The increase for permanent residents and foreigners will be between $2.80 and $7.50. They already pay more in fees than Singaporeans, providing a larger baseline for the increase. Aljunied Town Council, for example, will raise fees by between 5.5 and 7per cent.
The changes are expected to affect about 50,000 households in Aljunied and 53,500 households in Jurong.
Rates will also go up for shops, offices and market stalls in the estates.
While Jurong did not give details, Aljunied said its shops will now have to pay $1.83 per sq m, up from $1.66 per sq m. Market and hawker stalls have to pay between $6.27 and $21.65 more.
Checks on the websites of the 14 other town councils, all of which charge different S&C fees, showed no one else is raising them.
MPs for both Aljunied and Jurong GRCs said they were older estates which, because of the Lift Upgrading Programme, have an influx of new lifts, all of which need to be maintained.
In circulars sent out to residents and lessees of shops, offices and hawker stalls, both town councils said the hikes were to pay for higher electricity tariffs and cleaning expenses, in addition to the upkeep of new lifts.
Though tariffs have fluctuated, they have risen by 38.4 per cent between October 2004 and January this year, they said.
Jurong noted that electricity charges formed 30 per cent of its overall operating costs and would increase with 'the installation of more lifts, linkways and amenities within the town'.
But it is lift maintenance which takes up the biggest chunk of funds, said MPs for both town councils.
In Aljunied GRC, 1,109 blocks are now equipped with lifts stopping at every level, up from 884 in 2005. In Jurong, the figure is now 1,139, up from 1,002 in 2005.
On its website, Aljunied Town Council said it was 'no longer sustainable' to maintain charges at the current level without running into an operating deficit. Keeping the current charges would mean deteriorating standards over time, which would only raise costs further.
MP for Aljunied GRC Cynthia Phua said that while Singapore was emerging from a recession, she was mindful there was 'no good time' for a fee hike.
She told The Straits Times that the town council had wanted to increase the fees as early as February 2008, but held back as high inflation rates were adding to residents' burdens. Finance Minister Tharman Shanmugaratnam had called on town councils then to freeze their fees but left it to them to make the call.
Then the recession hit last year, and the town council had to absorb the costs.
'We are playing catch-up with costs now, and we also have to set aside money for future costs,' she said.
On their websites, both town councils said the increases were not tied to losses made in investments linked to the failed Lehman Brothers investment bank.
In 2008, town council investments came under the spotlight when it was revealed in Parliament that several had sunk a total of $16 million into such products. Jurong was not one of them, but Aljunied had some exposure.
On their websites, both town councils claimed to have made money from their investments.
Both MPs also said that the town councils would help residents who might find the fee hike difficult to afford.
'We can consider their case, and help will be provided to them,' said Madam Halimah Yacob for Jurong GRC.
Aljunied also said in its FAQs that it does not expect S&C fee arrears to rise.
carolynq@sph.com.sg
kimspyke@sph.com.sg
ST : Let market forces decide prices and sizes of homes
Mar 9, 2010
budget debate
Let market forces decide prices and sizes of homes
SHOULD the Government do something about 'Mickey Mouse-size' apartments that are all the rage now?
No, said National Development Minister Mah Bow Tan yesterday, reiterating that market forces should continue to determine the prices and sizes of homes that will be developed.
He was responding to concerns raised by Dr Amy Khor (Hong Kah GRC) about the proliferation of such small units in Singapore.
'Profit-maximising developers want to push per square foot (psf) prices of every unit up,' she noted.
'The way to do so without hurting sales is to reduce unit sizes to make them more affordable on a lump sum basis.'
She also warned that such high psf prices could influence buyers in the highly sentiment-driven market and give the perception that property prices are experiencing steep price rises.
She gave the example of Siglap V, a new development comprising small units in the east, where headline prices hit $1,634 psf recently.
There is no market data on the number of these small apartments, but some projects such as Suites@Guillemard have offered units as small as 258 sq ft.
In response, Mr Mah said that 'beyond ensuring market stability, we should let market forces determine prices and the type of unit sizes that will be developed'.
But he agreed that headline prices of these units 'are indeed misleading', and suggested that 'we do more to educate consumers not to take such headlines at face value'.
budget debate
Let market forces decide prices and sizes of homes
SHOULD the Government do something about 'Mickey Mouse-size' apartments that are all the rage now?
No, said National Development Minister Mah Bow Tan yesterday, reiterating that market forces should continue to determine the prices and sizes of homes that will be developed.
He was responding to concerns raised by Dr Amy Khor (Hong Kah GRC) about the proliferation of such small units in Singapore.
'Profit-maximising developers want to push per square foot (psf) prices of every unit up,' she noted.
'The way to do so without hurting sales is to reduce unit sizes to make them more affordable on a lump sum basis.'
She also warned that such high psf prices could influence buyers in the highly sentiment-driven market and give the perception that property prices are experiencing steep price rises.
She gave the example of Siglap V, a new development comprising small units in the east, where headline prices hit $1,634 psf recently.
There is no market data on the number of these small apartments, but some projects such as Suites@Guillemard have offered units as small as 258 sq ft.
In response, Mr Mah said that 'beyond ensuring market stability, we should let market forces determine prices and the type of unit sizes that will be developed'.
But he agreed that headline prices of these units 'are indeed misleading', and suggested that 'we do more to educate consumers not to take such headlines at face value'.
BT : Feasibility study for 3rd underground facility
Business Times - 09 Mar 2010
Feasibility study for 3rd underground facility
JTC invites consultants to study impact of cavern at Tanjung Kling site
By RONNIE LIM
(SINGAPORE) No stone is being left unturned in Singapore's underground push. Even the birds at Jurong Bird Park will not be ignored as the impact of construction and cavern operation on them will also be taken into account under a full-scale feasibility study called last Friday for an underground warehousing/logistics and data centre in Jurong.
The three-phased comprehensive study of the Tanjung Kling site - from preliminary geological assessment and market research to concept development - is expected to take up to two years in all, and follows a five-month 'geological investigation and ground characterisation' study called last November.
JTC Corporation on Friday invited consultants to undertake the latest study for what will be its third mega underground facility - following the start of construction recently of its $1 billion first-phase Jurong Rock Cavern to store oil, and its on-going 14-month feasibility study for an underground science city (USC) at Kent Ridge.
Both the USC and underground warehousing and data centre could be undertaken concurrently if the studies prove feasible, JTC earlier told BT.
Even the Economic Strategies Committee in its report last month recommended that Singapore's push underground - given the limited surface land available here - be supported by a national geology office which should, among other things, develop a subterranean land rights system and determine how underground areas can be priced.
For JTC's latest study, the appointed consultant will need to assess the technical requirements of warehousing and logistics players and developers and data centre operators, in order to develop the facility's conceptual design.
The site comprises Tanjung Kling and Jurong Hill and is bounded by four roads - Jalan Ahmad Ibrahim, Jurong Pier Road, Jalan Buroh and Pioneer Road. It can potentially provide cavern space of over 1.1 million square metres and free up 45 hectares of surface land for other uses.
The consultant will also engage specialists, including environmental consultants and ornithologists, to 'study the impact of the underground development, during both the construction phase and the operational phase, to existing surface developments, traffic, environment, population working in the area and birds residing in the Jurong Bird Park,' the JTC tender said.
'Of particular concern will be the impact of construction noise and vibration... to the behaviour of birds in the Bird Park. The consultant shall engage with Jurong Bird Park to address their concerns on such impact to their bird population as well as to their operations,' it stressed.
The preliminary geological assessment - expected to take five months - will include the consultant's take on the total cavern space and volume that can be constructed.
Next will be the preliminary concepts, with the consultant recommending - from a list of usage possibilities like general cargo and chemical logistics to container depot - on what will be viable for siting in the underground cavern.
Finally, the study's concept development phase will include its design, method of excavation and will even explore the feasibility of locating a district cooling system in the cavern complex.
The Tanjung Kling area was chosen for the underground ware- housing/data centre facility after earlier studies of geological conditions, JTC said. By going underground, the facility will enjoy advantages like shielding from heat and temperature humidity, have low background radiation and have less disturbance from vibration.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Feasibility study for 3rd underground facility
JTC invites consultants to study impact of cavern at Tanjung Kling site
By RONNIE LIM
(SINGAPORE) No stone is being left unturned in Singapore's underground push. Even the birds at Jurong Bird Park will not be ignored as the impact of construction and cavern operation on them will also be taken into account under a full-scale feasibility study called last Friday for an underground warehousing/logistics and data centre in Jurong.
The three-phased comprehensive study of the Tanjung Kling site - from preliminary geological assessment and market research to concept development - is expected to take up to two years in all, and follows a five-month 'geological investigation and ground characterisation' study called last November.
JTC Corporation on Friday invited consultants to undertake the latest study for what will be its third mega underground facility - following the start of construction recently of its $1 billion first-phase Jurong Rock Cavern to store oil, and its on-going 14-month feasibility study for an underground science city (USC) at Kent Ridge.
Both the USC and underground warehousing and data centre could be undertaken concurrently if the studies prove feasible, JTC earlier told BT.
Even the Economic Strategies Committee in its report last month recommended that Singapore's push underground - given the limited surface land available here - be supported by a national geology office which should, among other things, develop a subterranean land rights system and determine how underground areas can be priced.
For JTC's latest study, the appointed consultant will need to assess the technical requirements of warehousing and logistics players and developers and data centre operators, in order to develop the facility's conceptual design.
The site comprises Tanjung Kling and Jurong Hill and is bounded by four roads - Jalan Ahmad Ibrahim, Jurong Pier Road, Jalan Buroh and Pioneer Road. It can potentially provide cavern space of over 1.1 million square metres and free up 45 hectares of surface land for other uses.
The consultant will also engage specialists, including environmental consultants and ornithologists, to 'study the impact of the underground development, during both the construction phase and the operational phase, to existing surface developments, traffic, environment, population working in the area and birds residing in the Jurong Bird Park,' the JTC tender said.
'Of particular concern will be the impact of construction noise and vibration... to the behaviour of birds in the Bird Park. The consultant shall engage with Jurong Bird Park to address their concerns on such impact to their bird population as well as to their operations,' it stressed.
The preliminary geological assessment - expected to take five months - will include the consultant's take on the total cavern space and volume that can be constructed.
Next will be the preliminary concepts, with the consultant recommending - from a list of usage possibilities like general cargo and chemical logistics to container depot - on what will be viable for siting in the underground cavern.
Finally, the study's concept development phase will include its design, method of excavation and will even explore the feasibility of locating a district cooling system in the cavern complex.
The Tanjung Kling area was chosen for the underground ware- housing/data centre facility after earlier studies of geological conditions, JTC said. By going underground, the facility will enjoy advantages like shielding from heat and temperature humidity, have low background radiation and have less disturbance from vibration.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Land sales tweaked to ensure smoother supply
Business Times - 09 Mar 2010
Land sales tweaked to ensure smoother supply
Changes made to reserve list system make it easier for developers to trigger sites for sale
By UMA SHANKARI
(SINGAPORE) The government has tweaked its bi-annual land sales programme to make land supply more responsive to market demand.
Three changes have been made to the reserve list system, National Development Minister Mah Bow Tan said in Parliament.
He added that the government does not intend to introduce more measures to curb speculation at the moment.
'We don't intend to introduce more measures for now, but we will monitor the market closely. If there are signs that the market will overheat again, we are ready to introduce additional measures to stabilise the market.'
The second-half 2010 government land sales programme will have a 'larger supply and wider variety of sites' on the reserve list to give developers more choices.
The Ministry of National Development (MND) will also now consider releasing a site on the reserve list for sale once it has received 'sufficient market interest' - that is, if two or more developers submit minimum bids that are close to the government's reserve price for the site within a reasonable period.
Right now, a site is only released for sale if a developer submits a minimum bid that matches or exceeds an undisclosed reserve price set by the government.
The deposit due from applicants of reserve list sites will also be reduced from 5 per cent of the minimum bid price to 3 per cent, capped at $5 million. The reduced deposit is expected to lower upfront costs to developers and reduce their cashflow burden when they trigger sites on the reserve list.
Developers welcomed the increase in future supply.
'I think that the changes are a good sign,' said MCL Land chief executive Koh Teck Chuan. 'The government probably felt that they needed to balance the demand (for land sites) with more supply.'
He hopes that the increase in supply could moderate the aggressive bidding by developers seen for recent state land tenders.
The Real Estate Developers' Association of Singapore (Redas) said that it welcomes the improvements made to the reserve list system. 'These measures (the lower deposit and the release of sites as and when there is sufficient market interest) will help minimise the cost burden on developers who trigger the sites for sale and make the reserve list system more responsive as a whole to market conditions.'
Redas president Simon Cheong warned last month that many developers are now facing depleting landbanks following brisk home sales in recent months. Developers, he said, were surprised at the speed of the recovery in the property market and are looking forward to sites in the confirmed list to replenish their landbanks.
The changes announced yesterday could also be aimed at keeping private home prices affordable, analysts said.
'We believe that these measures are being introduced so as to enhance flexibility in the land sale system as well as to try and increase affordability in the mass-market private housing market,' DBS Group Research analyst Adrian Chua said.
But he noted that while the land bidding process may become less competitive, the impact on land prices may be marginal in a buoyant market.
Others similarly said that if the government's intention is to check land prices - and also check climbing private home prices - increasing future supply is unlikely to have much of an impact now.
'Developers are still going to bid aggressively because they want their sites now,' said Colin Tan, Chesterton Suntec International research and consultancy director. He said that the government should consider releasing two or three sites at a go as this will have a bigger impact.
Colliers director for research and advisory Tay Huey Ying said that new sites on the H2 2010 land sales programme could include plots in newer towns and with no particular MRT advantage.
'As prices of mass-market home in prime mass-market locales or near MRT stations are near peak, the market has been urging the government to release more affordable mass-market sites to the meet demand by upgraders,' Ms Tay said.
The tweaks come a month after the Economic Strategies Committee recommended a review of and improvements to the reserve list system to make it less onerous for developers to trigger sites on the list.
Mr Mah also said that the government would progressively release sites at new growth areas in Jurong Gateway, Paya Lebar Central and Kallang Riverside for development from this year. Several government agencies will also be relocated out of the central area to Jurong Gateway and Paya Lebar Central to catalyse growth there.
MND and two of its statutory boards, Agri-Food & Veterinary Authority of Singapore and the Building & Construction Authority, will move to Jurong Gateway by 2015. They will be joined by the Ministry of the Environment and Water Resources and its statutory boards PUB and National Environment Agency.
Elsewhere, the Singapore Workforce Development Agency will move to Paya Lebar Central. Its new continuing education and training campus, due to be completed by the end of 2013, will also be located there.
'The relocation of government agencies will free up prime office space in the city to meet private sector demand, as, by 2015, the current supply of about one million square metres of office space in the pipeline should have been taken up,' Mr Mah said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Land sales tweaked to ensure smoother supply
Changes made to reserve list system make it easier for developers to trigger sites for sale
By UMA SHANKARI
(SINGAPORE) The government has tweaked its bi-annual land sales programme to make land supply more responsive to market demand.
Three changes have been made to the reserve list system, National Development Minister Mah Bow Tan said in Parliament.
He added that the government does not intend to introduce more measures to curb speculation at the moment.
'We don't intend to introduce more measures for now, but we will monitor the market closely. If there are signs that the market will overheat again, we are ready to introduce additional measures to stabilise the market.'
The second-half 2010 government land sales programme will have a 'larger supply and wider variety of sites' on the reserve list to give developers more choices.
The Ministry of National Development (MND) will also now consider releasing a site on the reserve list for sale once it has received 'sufficient market interest' - that is, if two or more developers submit minimum bids that are close to the government's reserve price for the site within a reasonable period.
Right now, a site is only released for sale if a developer submits a minimum bid that matches or exceeds an undisclosed reserve price set by the government.
The deposit due from applicants of reserve list sites will also be reduced from 5 per cent of the minimum bid price to 3 per cent, capped at $5 million. The reduced deposit is expected to lower upfront costs to developers and reduce their cashflow burden when they trigger sites on the reserve list.
Developers welcomed the increase in future supply.
'I think that the changes are a good sign,' said MCL Land chief executive Koh Teck Chuan. 'The government probably felt that they needed to balance the demand (for land sites) with more supply.'
He hopes that the increase in supply could moderate the aggressive bidding by developers seen for recent state land tenders.
The Real Estate Developers' Association of Singapore (Redas) said that it welcomes the improvements made to the reserve list system. 'These measures (the lower deposit and the release of sites as and when there is sufficient market interest) will help minimise the cost burden on developers who trigger the sites for sale and make the reserve list system more responsive as a whole to market conditions.'
Redas president Simon Cheong warned last month that many developers are now facing depleting landbanks following brisk home sales in recent months. Developers, he said, were surprised at the speed of the recovery in the property market and are looking forward to sites in the confirmed list to replenish their landbanks.
The changes announced yesterday could also be aimed at keeping private home prices affordable, analysts said.
'We believe that these measures are being introduced so as to enhance flexibility in the land sale system as well as to try and increase affordability in the mass-market private housing market,' DBS Group Research analyst Adrian Chua said.
But he noted that while the land bidding process may become less competitive, the impact on land prices may be marginal in a buoyant market.
Others similarly said that if the government's intention is to check land prices - and also check climbing private home prices - increasing future supply is unlikely to have much of an impact now.
'Developers are still going to bid aggressively because they want their sites now,' said Colin Tan, Chesterton Suntec International research and consultancy director. He said that the government should consider releasing two or three sites at a go as this will have a bigger impact.
Colliers director for research and advisory Tay Huey Ying said that new sites on the H2 2010 land sales programme could include plots in newer towns and with no particular MRT advantage.
'As prices of mass-market home in prime mass-market locales or near MRT stations are near peak, the market has been urging the government to release more affordable mass-market sites to the meet demand by upgraders,' Ms Tay said.
The tweaks come a month after the Economic Strategies Committee recommended a review of and improvements to the reserve list system to make it less onerous for developers to trigger sites on the list.
Mr Mah also said that the government would progressively release sites at new growth areas in Jurong Gateway, Paya Lebar Central and Kallang Riverside for development from this year. Several government agencies will also be relocated out of the central area to Jurong Gateway and Paya Lebar Central to catalyse growth there.
MND and two of its statutory boards, Agri-Food & Veterinary Authority of Singapore and the Building & Construction Authority, will move to Jurong Gateway by 2015. They will be joined by the Ministry of the Environment and Water Resources and its statutory boards PUB and National Environment Agency.
Elsewhere, the Singapore Workforce Development Agency will move to Paya Lebar Central. Its new continuing education and training campus, due to be completed by the end of 2013, will also be located there.
'The relocation of government agencies will free up prime office space in the city to meet private sector demand, as, by 2015, the current supply of about one million square metres of office space in the pipeline should have been taken up,' Mr Mah said.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : BCA pushing industry into being leaner and greener
Business Times - 09 Mar 2010
YESTERDAY IN PARLIAMENT
BCA pushing industry into being leaner and greener
Buildability score, energy efficiency certification being revised upwards
By UMA SHANKARI
THE Building & Construction Authority (BCA) is set to make changes to some of its regulations to push the construction industry towards green building and greater productivity.
The mandatory minimum energy efficiency standard that must be met before a new building can receive a Green Mark certification will be raised by 10 per cent from today's standard. The energy efficiency standards for other Green Mark levels - Gold, GoldPlus, and Platinum - will also be upped.
BCA will also increase the regulated minimum buildability score so that firms will have to use labour-efficient construction technologies. The industry regulator said that it has not yet decided on the new minimum score, which now stands at 75 - a significant climb from 61 in 2001.
'The industry can seek government funding to build capability in areas such as prefabrication, precast technology and other construction technology to meet the new buildability requirements,' said Grace Fu, Senior Minister of State at the Ministry of National Development. She announced the changes in Parliament yesterday.
During the Budget announcement on Feb 22, the government said that it will set aside $250 million to steer the construction sector towards higher productivity. This followed the Economic Strategies Committee last month highlighting the need for strong measures to boost Singapore's productivity level.
Giving more details yesterday, BCA said that the funds will be used to cover three broad aspects: to co-fund manpower development; to provide funding support to encourage companies to adopt technology and equipment that could lead to significant productivity improvement; and to provide financial support to builders to help them develop capability in more complicated civil engineering projects and building projects.
BCA hopes to get the construction sector to raise the quality of its workforce, design buildings that are easier to construct and adopt more advanced construction technologies. The government has said that it will raise its foreign worker levies from July this year. Yesterday, Ms Fu said that it is estimated that the higher levies could result in 1-2 per cent rise in construction costs for the industry - although the actual cost impact will vary from firm to firm. On the other hand, the $250 million fund will work as a carrot and support the construction firms as they try to adopt productivity improvement measures.
Further upstream, developers and architects will have to design for greater buildability. BCA also wants to raise the energy efficiency standard for new buildings by 10 per cent - which means that the power consumption for new buildings that are Green Mark-certified will be about 10 per cent lower as compared to their older counterparts.
Developers said that they welcomed the move and added that the new target is within reach.
'The revised standards will definitely improve the long-term sustainability of Singapore and contribute towards our overall energy efficiency goal of 35 per cent savings by 2030,' said Tan Swee Yiow, Keppel Land's chief executive for its Singapore commercial business unit.
Added a City Developments spokesman: 'While the development of green buildings may cost more, by adopting the low-energy passive facade design, we do not foresee the need to increase our present green building investment of between 2 per cent and 5 per cent of our construction cost.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
__._,_.___
YESTERDAY IN PARLIAMENT
BCA pushing industry into being leaner and greener
Buildability score, energy efficiency certification being revised upwards
By UMA SHANKARI
THE Building & Construction Authority (BCA) is set to make changes to some of its regulations to push the construction industry towards green building and greater productivity.
The mandatory minimum energy efficiency standard that must be met before a new building can receive a Green Mark certification will be raised by 10 per cent from today's standard. The energy efficiency standards for other Green Mark levels - Gold, GoldPlus, and Platinum - will also be upped.
BCA will also increase the regulated minimum buildability score so that firms will have to use labour-efficient construction technologies. The industry regulator said that it has not yet decided on the new minimum score, which now stands at 75 - a significant climb from 61 in 2001.
'The industry can seek government funding to build capability in areas such as prefabrication, precast technology and other construction technology to meet the new buildability requirements,' said Grace Fu, Senior Minister of State at the Ministry of National Development. She announced the changes in Parliament yesterday.
During the Budget announcement on Feb 22, the government said that it will set aside $250 million to steer the construction sector towards higher productivity. This followed the Economic Strategies Committee last month highlighting the need for strong measures to boost Singapore's productivity level.
Giving more details yesterday, BCA said that the funds will be used to cover three broad aspects: to co-fund manpower development; to provide funding support to encourage companies to adopt technology and equipment that could lead to significant productivity improvement; and to provide financial support to builders to help them develop capability in more complicated civil engineering projects and building projects.
BCA hopes to get the construction sector to raise the quality of its workforce, design buildings that are easier to construct and adopt more advanced construction technologies. The government has said that it will raise its foreign worker levies from July this year. Yesterday, Ms Fu said that it is estimated that the higher levies could result in 1-2 per cent rise in construction costs for the industry - although the actual cost impact will vary from firm to firm. On the other hand, the $250 million fund will work as a carrot and support the construction firms as they try to adopt productivity improvement measures.
Further upstream, developers and architects will have to design for greater buildability. BCA also wants to raise the energy efficiency standard for new buildings by 10 per cent - which means that the power consumption for new buildings that are Green Mark-certified will be about 10 per cent lower as compared to their older counterparts.
Developers said that they welcomed the move and added that the new target is within reach.
'The revised standards will definitely improve the long-term sustainability of Singapore and contribute towards our overall energy efficiency goal of 35 per cent savings by 2030,' said Tan Swee Yiow, Keppel Land's chief executive for its Singapore commercial business unit.
Added a City Developments spokesman: 'While the development of green buildings may cost more, by adopting the low-energy passive facade design, we do not foresee the need to increase our present green building investment of between 2 per cent and 5 per cent of our construction cost.'
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
__._,_.___
BT : 95,000 sq ft of offices for lease at JTC's HQ
Business Times - 09 Mar 2010
95,000 sq ft of offices for lease at JTC's HQ
Five parties said to have tendered for job of marketing Jurong East building
By KALPANA RASHIWALA
JTC Corporation is seeking to lease out about 95,000 square feet of offices at its headquarters building near Jurong East MRT Station. It recently conducted a tender exercise to appoint a sole marketing agent to help it find tenants for the building.
The space to be leased represents about 21 per cent of the building's total 447,778 sq ft net lettable area.
BT understands that JTC itself occupies about 10 floors in the 32-storey building; the rest of the building's occupied space is leased to other tenants.
The 95,000 sq ft of offices is believed to be from expiry of tenancies and JTC intensifying its space usage by reducing space per head and regrouping its staff according to industry clusters. The statutory board has been at JTC Summit for a decade.
'As part of JTC's process for leasing space, JTC called a tender on Jan 29, 2010 for the appointment of a sole marketing agent to undertake the leasing of JTC Summit's office space, for a period of one year,' a JTC spokeswoman told BT.
The tender closed on Feb 12. JTC is evaluating the proposals, and the results should be available by next month, she added.
Five parties are said to have tendered for the job - CB Richard Ellis, DTZ Debenham Tie Leung (SEA), Savills (Singapore), United Premas and Advanz International.
BT understands that some of the space to be leased at JTC Summit covers entire floors - such as the 27th and 28th levels.
According to its website, JTC is seeking a flat rent of $44 per square metre a month (or $4.09 per square foot a month) for space on Levels 1 to 30.
Industry observers point to limited supply of office space in the western part of Singapore, although there is business park space.
BT understands that landlords of newer office blocks in Tampines are seeking monthly rentals of $4-5 psf.
According to JTC's tender documents for appointing a JTC Summit marketing agent, the commission rate will be one month's gross rental for areas up to 5,000 square metres or 1.25 months gross rentals for areas above 5,000 square metres.
Tenderers' marketing proposals will be evaluated on their marketing strategies and concept, as well as track records on similar projects and manpower commitment.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
JTC Summit: Website says JTC is seeking a flat rent of $44 per sq m a month for space on Levels 1 to 30
95,000 sq ft of offices for lease at JTC's HQ
Five parties said to have tendered for job of marketing Jurong East building
By KALPANA RASHIWALA
JTC Corporation is seeking to lease out about 95,000 square feet of offices at its headquarters building near Jurong East MRT Station. It recently conducted a tender exercise to appoint a sole marketing agent to help it find tenants for the building.
The space to be leased represents about 21 per cent of the building's total 447,778 sq ft net lettable area.
BT understands that JTC itself occupies about 10 floors in the 32-storey building; the rest of the building's occupied space is leased to other tenants.
The 95,000 sq ft of offices is believed to be from expiry of tenancies and JTC intensifying its space usage by reducing space per head and regrouping its staff according to industry clusters. The statutory board has been at JTC Summit for a decade.
'As part of JTC's process for leasing space, JTC called a tender on Jan 29, 2010 for the appointment of a sole marketing agent to undertake the leasing of JTC Summit's office space, for a period of one year,' a JTC spokeswoman told BT.
The tender closed on Feb 12. JTC is evaluating the proposals, and the results should be available by next month, she added.
Five parties are said to have tendered for the job - CB Richard Ellis, DTZ Debenham Tie Leung (SEA), Savills (Singapore), United Premas and Advanz International.
BT understands that some of the space to be leased at JTC Summit covers entire floors - such as the 27th and 28th levels.
According to its website, JTC is seeking a flat rent of $44 per square metre a month (or $4.09 per square foot a month) for space on Levels 1 to 30.
Industry observers point to limited supply of office space in the western part of Singapore, although there is business park space.
BT understands that landlords of newer office blocks in Tampines are seeking monthly rentals of $4-5 psf.
According to JTC's tender documents for appointing a JTC Summit marketing agent, the commission rate will be one month's gross rental for areas up to 5,000 square metres or 1.25 months gross rentals for areas above 5,000 square metres.
Tenderers' marketing proposals will be evaluated on their marketing strategies and concept, as well as track records on similar projects and manpower commitment.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
JTC Summit: Website says JTC is seeking a flat rent of $44 per sq m a month for space on Levels 1 to 30
BT : New measures to reduce noise and save energy
Business Times - 09 Mar 2010
New measures to reduce noise and save energy
By JOYCE HOOI
THE National Environment Agency (NEA) will soon start prohibiting construction activities from 10pm on the night before a Sunday or a public holiday to 10am on the day itself. This new prohibition will apply to construction sites within 150 metres of residential areas and noise-sensitive developments that start work from Sept 1 this year.
'We will implement the changes progressively to give the construction industry sufficient time to adjust,' said Yaacob Ibrahim, Minister for the Environment and Water Resources, while announcing the ministry's latest measures in Parliament yesterday. 'NEA will extend this prohibition to the rest of the day on Sundays and public holidays for sites starting work from Sept 1, 2011,' Dr Yaacob added.
According to the minister, NEA received 14,000 and 12,000 complaints about construction noise in 2008 and 2009 respectively, compared to 9,000 and 6,000 such complaints in 2007 and 2006 respectively.
This change in policy will create a need for construction firms to rejig their work schedules, CSC Holdings Ltd CEO See Yen Tarn noted.
'There are certain activities that have to be carried out continuously, one process after another. You cannot excavate something and then let it sit there for 24 hours, for example,' said Mr See.
Tan Wey Pin, executive director of Lum Chang Building Contractors, also noted that almost all construction sites in Singapore will be situated within 150 metres of a residential area. Currently, his firm's workers end work any time between 7pm and midnight on Saturday and work from 8am to 5pm on Sunday, excluding overtime.
NEA will also tighten noise standards for new and in-use vehicles, from Oct 1, 2010 and April 1, 2011, respectively. The new-vehicle standards will be based on those currently used in Japan and the European Union.
On the industrial front, there will be a mandatory requirement for companies in the industry sector using more than 15 gigawatt- hours of energy each year to appoint an energy manager that will monitor and report energy use to NEA from 2013, as part of the Energy Conservation Act that will come into force in the same year.
'NEA will introduce the Energy Efficiency National Partnership, or EENP, in April to help companies build up the necessary capabilities before the mandatory energy management practices come into effect,' said Dr Yaacob.
Several companies that fall in this category appear to be ahead of the curve.
'We do more than an energy manager's job. We have monitored the consumption of energy from Day 1,' said CV Jagadish, CEO of Systems on Silicon Manufacturing Co Pte Ltd. This year, the company aims to reduce energy usage by almost 4 million kilowatt-hours.
STMicroelectronics will also have no trouble complying with the requirement. 'Our site electrical manager is our resident Energy Conservation Champion, who constantly drives energy reduction opportunities at our wafer fab,' said Renato Sirtori, group vice-president and chief financial officer of Asia STMicroelectronics.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
New measures to reduce noise and save energy
By JOYCE HOOI
THE National Environment Agency (NEA) will soon start prohibiting construction activities from 10pm on the night before a Sunday or a public holiday to 10am on the day itself. This new prohibition will apply to construction sites within 150 metres of residential areas and noise-sensitive developments that start work from Sept 1 this year.
'We will implement the changes progressively to give the construction industry sufficient time to adjust,' said Yaacob Ibrahim, Minister for the Environment and Water Resources, while announcing the ministry's latest measures in Parliament yesterday. 'NEA will extend this prohibition to the rest of the day on Sundays and public holidays for sites starting work from Sept 1, 2011,' Dr Yaacob added.
According to the minister, NEA received 14,000 and 12,000 complaints about construction noise in 2008 and 2009 respectively, compared to 9,000 and 6,000 such complaints in 2007 and 2006 respectively.
This change in policy will create a need for construction firms to rejig their work schedules, CSC Holdings Ltd CEO See Yen Tarn noted.
'There are certain activities that have to be carried out continuously, one process after another. You cannot excavate something and then let it sit there for 24 hours, for example,' said Mr See.
Tan Wey Pin, executive director of Lum Chang Building Contractors, also noted that almost all construction sites in Singapore will be situated within 150 metres of a residential area. Currently, his firm's workers end work any time between 7pm and midnight on Saturday and work from 8am to 5pm on Sunday, excluding overtime.
NEA will also tighten noise standards for new and in-use vehicles, from Oct 1, 2010 and April 1, 2011, respectively. The new-vehicle standards will be based on those currently used in Japan and the European Union.
On the industrial front, there will be a mandatory requirement for companies in the industry sector using more than 15 gigawatt- hours of energy each year to appoint an energy manager that will monitor and report energy use to NEA from 2013, as part of the Energy Conservation Act that will come into force in the same year.
'NEA will introduce the Energy Efficiency National Partnership, or EENP, in April to help companies build up the necessary capabilities before the mandatory energy management practices come into effect,' said Dr Yaacob.
Several companies that fall in this category appear to be ahead of the curve.
'We do more than an energy manager's job. We have monitored the consumption of energy from Day 1,' said CV Jagadish, CEO of Systems on Silicon Manufacturing Co Pte Ltd. This year, the company aims to reduce energy usage by almost 4 million kilowatt-hours.
STMicroelectronics will also have no trouble complying with the requirement. 'Our site electrical manager is our resident Energy Conservation Champion, who constantly drives energy reduction opportunities at our wafer fab,' said Renato Sirtori, group vice-president and chief financial officer of Asia STMicroelectronics.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
CNA : Home loans volume could be lower in 2010 but values expected to rise
Home loans volume could be lower in 2010 but values expected to rise
By Desmond Wong, Channel NewsAsia | Posted: 08 March 2010 2109 hrs
SINGAPORE: Singapore banks are not likely to see a significant jump in home loans growth this year.
According to analysts, that's because they do not expect the number of transactions to increase greatly from last year as the steam runs out of the mass market property segment.
But they said support could come from interest in the mid-tier to high-end property sectors.
Singapore's property market has been on a run. The number of home sales came in at between 33,000 and 34,000 last year, close to the peak seen in 2007 and that has helped Singapore banks pull through a challenging year.
But market-watchers do not expect to see the same pace of growth in home sales this year.
And some said this could put a dent in the plans of local banks to grow loans here as they try to expand.
Leng Seng Choon, associate director, co-head of Research, DMG & Partners Securities, said: "From the overall perspective, if the loans market is only so big in Singapore, and a few major players want to expand their market share or have higher loan growth, we may see some of them falling behind in some of their guidances."
DBS and UOB have suggested single digit growth in loans for the year while OCBC targets low double digits with home loans making up about a quarter of their portfolios.
While the number of transactions may not increase as sharply as last year, their value may improve.
This is because, interest could be returning, for the higher end of the property markets.
Chua Chor Hoon, head of Southeast Asia Research, DTZ Debenham Tie Leung, said: "In terms of value, they may be able to lend out more than they did last year... and that's because prices have moved up a fair bit from last year, and we're seeing more interest in the mid tier and higher end."
Analysts also said that growing economic stability could provide more help for banks. With job security and growth seemingly on the way, more buyers are expected to enter the market, expanding the pool of borrowers for local lenders. - CNA/vm
By Desmond Wong, Channel NewsAsia | Posted: 08 March 2010 2109 hrs
SINGAPORE: Singapore banks are not likely to see a significant jump in home loans growth this year.
According to analysts, that's because they do not expect the number of transactions to increase greatly from last year as the steam runs out of the mass market property segment.
But they said support could come from interest in the mid-tier to high-end property sectors.
Singapore's property market has been on a run. The number of home sales came in at between 33,000 and 34,000 last year, close to the peak seen in 2007 and that has helped Singapore banks pull through a challenging year.
But market-watchers do not expect to see the same pace of growth in home sales this year.
And some said this could put a dent in the plans of local banks to grow loans here as they try to expand.
Leng Seng Choon, associate director, co-head of Research, DMG & Partners Securities, said: "From the overall perspective, if the loans market is only so big in Singapore, and a few major players want to expand their market share or have higher loan growth, we may see some of them falling behind in some of their guidances."
DBS and UOB have suggested single digit growth in loans for the year while OCBC targets low double digits with home loans making up about a quarter of their portfolios.
While the number of transactions may not increase as sharply as last year, their value may improve.
This is because, interest could be returning, for the higher end of the property markets.
Chua Chor Hoon, head of Southeast Asia Research, DTZ Debenham Tie Leung, said: "In terms of value, they may be able to lend out more than they did last year... and that's because prices have moved up a fair bit from last year, and we're seeing more interest in the mid tier and higher end."
Analysts also said that growing economic stability could provide more help for banks. With job security and growth seemingly on the way, more buyers are expected to enter the market, expanding the pool of borrowers for local lenders. - CNA/vm
CNA : Changes made to Reserve List system
Changes made to Reserve List system
By Mok Fei Fei, Channel NewsAsia | Posted: 08 March 2010 1701 hrs
SINGAPORE: Changes will be made to the government's Reserve List system to make the supply of land more responsive to the market.
Announcing the changes in parliament on Monday, National Development Minister Mah Bow Tan said his ministry will ensure that there is an adequate supply of land to support economic growth.
Among the changes is the reduction of the deposit required from successful applicants of the Reserve List sites from five per cent to three per cent of the minimum bid.
The deposit will be subject to a cap of S$5 million, to reduce the cash flow burden to successful applicants.
Another change is that a Reserve List site may be released for sale immediately if there is more than one party that submits a minimum bid price close to the government's reserve price for the site.
Previously, a site is only released for sale if a developer submits a minimum bid that matches or exceeds the reserve price.
The third change to the system is that the government will make available a larger supply and wider variety of sites in the Reserve List in the second half this year.
Mr Mah said that the aim is to give developers more choices.
He said: "The government will continue to ensure that there is adequate supply of private housing to meet the needs of both locals and foreigners through the Government Land Sales (GLS) programme. There is an ample supply of private housing in the pipeline to meet demand over the next one to two years, so buyers need not rush into the market.
"We will also continue to ensure that we have an adequate supply of commercial space, in terms of both quantity and mix."
The government will announce details of the second half of the GLS programme by June 2010.
- CNA/sc
By Mok Fei Fei, Channel NewsAsia | Posted: 08 March 2010 1701 hrs
SINGAPORE: Changes will be made to the government's Reserve List system to make the supply of land more responsive to the market.
Announcing the changes in parliament on Monday, National Development Minister Mah Bow Tan said his ministry will ensure that there is an adequate supply of land to support economic growth.
Among the changes is the reduction of the deposit required from successful applicants of the Reserve List sites from five per cent to three per cent of the minimum bid.
The deposit will be subject to a cap of S$5 million, to reduce the cash flow burden to successful applicants.
Another change is that a Reserve List site may be released for sale immediately if there is more than one party that submits a minimum bid price close to the government's reserve price for the site.
Previously, a site is only released for sale if a developer submits a minimum bid that matches or exceeds the reserve price.
The third change to the system is that the government will make available a larger supply and wider variety of sites in the Reserve List in the second half this year.
Mr Mah said that the aim is to give developers more choices.
He said: "The government will continue to ensure that there is adequate supply of private housing to meet the needs of both locals and foreigners through the Government Land Sales (GLS) programme. There is an ample supply of private housing in the pipeline to meet demand over the next one to two years, so buyers need not rush into the market.
"We will also continue to ensure that we have an adequate supply of commercial space, in terms of both quantity and mix."
The government will announce details of the second half of the GLS programme by June 2010.
- CNA/sc
CNA : No further measures to cool property market for now: Mah Bow Tan
No further measures to cool property market for now: Mah Bow Tan
By Mok Fei Fei, Channel NewsAsia | Posted: 08 March 2010 1315 hrs
SINGAPORE: National Development Minister Mah Bow Tan said the government will not introduce more measures to cool the property market for now.
Speaking in parliament on Monday, he said his ministry will monitor the market closely. If there are signs that the market will overheat again, Mr Mah said the government will then introduce additional measures to stabilise the market.
Last month, the Ministry of National Development said it will impose a Seller's Stamp Duty on all residential properties and residential lands that are bought and sold within one year from the date of purchase.
There will also be a cap to the housing loan limit, which will be set at 80 per cent of the private property's value, instead of the current 90 per cent.
It was the latest move by the Ministry of National Development after it took action last September, when it removed the interest absorption scheme and interest-only housing loans.
- CNA/sc
By Mok Fei Fei, Channel NewsAsia | Posted: 08 March 2010 1315 hrs
SINGAPORE: National Development Minister Mah Bow Tan said the government will not introduce more measures to cool the property market for now.
Speaking in parliament on Monday, he said his ministry will monitor the market closely. If there are signs that the market will overheat again, Mr Mah said the government will then introduce additional measures to stabilise the market.
Last month, the Ministry of National Development said it will impose a Seller's Stamp Duty on all residential properties and residential lands that are bought and sold within one year from the date of purchase.
There will also be a cap to the housing loan limit, which will be set at 80 per cent of the private property's value, instead of the current 90 per cent.
It was the latest move by the Ministry of National Development after it took action last September, when it removed the interest absorption scheme and interest-only housing loans.
- CNA/sc
ST : Deposit cut for reserve sites
Mar 8, 2010
Deposit cut for reserve sites
THE Government has, with immediate effect, reduced the deposit for successful applicants of Reserve List sites from 5 per cent to 3 per cent of the minimum price, capped at S$5 million, to help lower upfront cost and the cash flow burden of the developers.
It will also consider launching a Reserve List site for sale once it has received sufficient market interest for the site, National Development Minister Mah Bow Tan announced in Parliament on Monday.
A site is deemed to have received sufficient market interest if more than one unrelated party submit minimum prices that are close to the Government's Reserve Price for the site within a reasonable period.
With this improvement, a site on the Reserve List can be released for sale by public tender even if the application prices are below the Government's Reserve Price. This will also enhance the responsiveness of the Reserve List system to dynamic market conditions, said Mr Mah. This new process will also take effect immediately.
Mr Mah also said a larger supply and wider variety of sites in the Reserve List will be made available in the second half of the the Government Land Sales (GLS) Programme this year.
The Reserve List system was introduced in 2001. It makes available additional sites, in addition to those on the Confirmed List, so that there is more than sufficient supply to meet any surge in demand.
Under this system, a developer who is interested in a site on the Reserve List would submit an application to the Government for the sale of the site, stating the minimum price to be committed for the land parcel. If the minimum price meets or exceeds the Government's reserve price, the application would be accepted. The applicant is then invited to execute an agreement to bid for the site at a price not less than the minimum price and to pay a deposit equivalent to 5 per cent of the minimum price.
Following this, the site will be launched for sale by public tender.
The Reserve List system has worked well. A total of 65 sites have been successfully triggered and sold under this system. In 2009 alone, 11 sites for residential, hotel and industrial developments were successfully triggered and sold.
To ensure that the Reserve List system remains responsive to dynamic market conditions and business needs, the Economic Strategies Committee (ESC) has earlier recommended that the Government review and make improvements to the system to make it less onerous for developers to trigger sites on the Reserve List.
This will enable supply to be more easily activated when needed. In response, the Government has conducted a review of the Reserve List and has decided to implement a number of improvements.
Deposit cut for reserve sites
THE Government has, with immediate effect, reduced the deposit for successful applicants of Reserve List sites from 5 per cent to 3 per cent of the minimum price, capped at S$5 million, to help lower upfront cost and the cash flow burden of the developers.
It will also consider launching a Reserve List site for sale once it has received sufficient market interest for the site, National Development Minister Mah Bow Tan announced in Parliament on Monday.
A site is deemed to have received sufficient market interest if more than one unrelated party submit minimum prices that are close to the Government's Reserve Price for the site within a reasonable period.
With this improvement, a site on the Reserve List can be released for sale by public tender even if the application prices are below the Government's Reserve Price. This will also enhance the responsiveness of the Reserve List system to dynamic market conditions, said Mr Mah. This new process will also take effect immediately.
Mr Mah also said a larger supply and wider variety of sites in the Reserve List will be made available in the second half of the the Government Land Sales (GLS) Programme this year.
The Reserve List system was introduced in 2001. It makes available additional sites, in addition to those on the Confirmed List, so that there is more than sufficient supply to meet any surge in demand.
Under this system, a developer who is interested in a site on the Reserve List would submit an application to the Government for the sale of the site, stating the minimum price to be committed for the land parcel. If the minimum price meets or exceeds the Government's reserve price, the application would be accepted. The applicant is then invited to execute an agreement to bid for the site at a price not less than the minimum price and to pay a deposit equivalent to 5 per cent of the minimum price.
Following this, the site will be launched for sale by public tender.
The Reserve List system has worked well. A total of 65 sites have been successfully triggered and sold under this system. In 2009 alone, 11 sites for residential, hotel and industrial developments were successfully triggered and sold.
To ensure that the Reserve List system remains responsive to dynamic market conditions and business needs, the Economic Strategies Committee (ESC) has earlier recommended that the Government review and make improvements to the system to make it less onerous for developers to trigger sites on the Reserve List.
This will enable supply to be more easily activated when needed. In response, the Government has conducted a review of the Reserve List and has decided to implement a number of improvements.
CNA : Second concessionary loan to help people manage mortgage obligations
Second concessionary loan to help people manage mortgage obligations
By Satish Cheney, Channel NewsAsia | Posted: 07 March 2010 2148 hrs
SINGAPORE: Senior Minister of State for the Ministry of National Development & Ministry of Education Grace Fu said the recent announcement to extend a second loan to more HDB flat buyers is to help manage their mortgage obligations and not to encourage property speculation.
"The objective of allowing a second loan regardless of whether it's upgrade or downgrading, it's really to allow some families to make adjustments to their mortgage plan," she said.
"We recognise that some families may go through changes in their lives or in their jobs or the career, that will require them to find a permanent solution in reducing their mortgage obligations. So, the second loan is to allow them to do that."
The minister was attending celebrations to mark International Women's Day at Yuhua Community Club Sunday afternoon.
The event saw various activities lined up, from health checks to a cooking competition.
- CNA/yb
By Satish Cheney, Channel NewsAsia | Posted: 07 March 2010 2148 hrs
SINGAPORE: Senior Minister of State for the Ministry of National Development & Ministry of Education Grace Fu said the recent announcement to extend a second loan to more HDB flat buyers is to help manage their mortgage obligations and not to encourage property speculation.
"The objective of allowing a second loan regardless of whether it's upgrade or downgrading, it's really to allow some families to make adjustments to their mortgage plan," she said.
"We recognise that some families may go through changes in their lives or in their jobs or the career, that will require them to find a permanent solution in reducing their mortgage obligations. So, the second loan is to allow them to do that."
The minister was attending celebrations to mark International Women's Day at Yuhua Community Club Sunday afternoon.
The event saw various activities lined up, from health checks to a cooking competition.
- CNA/yb
ST Forum : Agents trustworthy? Take it with a pinch of salt
Mar 8, 2010
Agents trustworthy? Take it with a pinch of salt
I REFER to last Friday's letter by Singapore Accredited Estate Agencies, 'Untrustworthy? Not property agents', and beg to differ from its over-optimistic and illusory views of property agents.
Recently, I saw a property and after some negotiations via an agent, confirmed the purchase. I was scheduled to make a 1 per cent payment for the option to purchase that evening. I arrived slightly early and was surprised to see the agent showing the unit to other potential buyers.
When I confronted him, he tried to explain it away. That evening, I was not given the option to purchase. The agent gave a lot of excuses. I was upset. I went to the owner's home and learnt that the owner did not know we were supposed to close the deal that evening.
The property was sold to another the day after the evening I was scheduled to accept the option to purchase.
I am disappointed there are no regulations to curb unscrupulous agents who manipulate transactions to their own benefit, at the expense of the seller or the buyer.
Roger Tan
Agents trustworthy? Take it with a pinch of salt
I REFER to last Friday's letter by Singapore Accredited Estate Agencies, 'Untrustworthy? Not property agents', and beg to differ from its over-optimistic and illusory views of property agents.
Recently, I saw a property and after some negotiations via an agent, confirmed the purchase. I was scheduled to make a 1 per cent payment for the option to purchase that evening. I arrived slightly early and was surprised to see the agent showing the unit to other potential buyers.
When I confronted him, he tried to explain it away. That evening, I was not given the option to purchase. The agent gave a lot of excuses. I was upset. I went to the owner's home and learnt that the owner did not know we were supposed to close the deal that evening.
The property was sold to another the day after the evening I was scheduled to accept the option to purchase.
I am disappointed there are no regulations to curb unscrupulous agents who manipulate transactions to their own benefit, at the expense of the seller or the buyer.
Roger Tan
ST : Terrace house 'hostels' for medical tourists
Mar 8, 2010
Terrace house 'hostels' for medical tourists
Homes near Orchard Rd hospital found illegally offering budget lodging to patients, travellers
By Karen Zainal
SEVERAL terrace house owners in the quiet lanes near Mount Elizabeth Hospital are opening their doors to medical tourists and travellers seeking budget accommodation in the heart of Orchard Road.
They charge between $50 and $120 per room a night, depending on the number of guests and whether it is peak season.
A room in a hotel in that area could cost at least three or four times more. For the price they pay, tenants get a bed, bathroom access, air-conditioning and housekeeping services. Rooms with bathrooms are pricier. These 'hostels' are often fronted by the owners' maids, usually Indonesians, who can communicate better with these overseas patients, many of whom are also Indonesians.
The owners, however, appear to be breaking the Urban Redevelopment Authority's (URA) rules, which state that private properties cannot be converted to other uses such as workers' dormitories or boarding houses. The Straits Times found at least eight terrace houses within a two-minute walk of Mount Elizabeth Hospital where foreigners can stay on a short-term basis for a fee.
Most are in Jalan Elok, between the hospital grounds and York Hotel, but there are also a few along Jalan Lada Puteh, which is behind the hospital and next to Lucky Plaza.
On one Tuesday afternoon, The Straits Times spotted a group of six Indonesians dragging their suitcases behind them and entering one of the houses along Jalan Elok. When approached, one said they were in Singapore on vacation and had heard about the lodging from a friend back home. The group booked two rooms for $120 a night.
Moments after the group entered, a woman in a blue sports car pulled up just outside the house. Madam S.L. Chong, 64, identified herself as the owner but said the group who had just walked in were her Indonesian husband's relatives.
The housewife said she charged them a minimal fee, as she was 'unemployed and needed to make a living'. She claimed that she had approval from the URA to do this.
However, a check with the authority showed that this was not true. Its spokesman said it would investigate the possible infringement. The URA usually issues a warning notice to offenders and, if the unauthorised use does not stop, they can be charged in court and face fines of up to $200,000 or jail of up to a year, or both.
Two doors away from Madam Chong's house, Madam Lily Lim told a similar story - that those staying temporarily in her house were her in-laws from Indonesia.
However, when The Straits Times contacted Madam Lim as an interested customer to inquire about lodging, she offered a room in her house at $50 a day.
When asked about this, Madam Lim insisted these rates were only for her relatives and said she did not require government approval for this.
Like Madam Chong, she said she could not afford to house them for free.
Business appears brisk at these 'hostels'. The housekeepers of two of such houses said all their six bedrooms were fully occupied, for the next eight days for one of them.
A 47-year-old Indonesian businessman who has helped friends book accommodation at these houses said that, during the Formula One race season or other peak periods, these 'hostels' charged almost double the usual rates to cash in on the hotter demand.
Two houses at Jalan Elok even had an additional room built in the parking space, he said. It is understood that some houses have also repartitioned their bedrooms. 'You can tell; some of the walls sound hollow,' said the businessman.
Unauthorised repartitioning with the purpose of operating a boarding house is also illegal, said the URA.
Some of the owners of these terrace houses do not even live there, said other Jalan Elok residents. Indonesian housekeepers, allegedly employed as maids, are left in charge of a host of additional responsibilities such as providing housekeeping services to tenants.
Such accommodation, though illegal, do cater to the need for affordable short-term stays, filling a gap between hotels and hostels, which are usually run-down.
Several guests The Straits Times approached said they were in Singapore either to seek medical help or to visit relatives in hospital. Some were private students from countries such as Vietnam and China.
Mr Jim Chen, 40, a tenant from the Philippines, ditched his initial plans of staying at a serviced apartment at the nearby Lucky Plaza because it was 'just too crowded and too noisy'. The fitness centre manager, who is in Singapore for physiotherapy, settled for a room in a Jalan Elok house, where he found the environment more tranquil.
An Indonesian maid, who gave her name as Madam Kartini and who advertises a house on Jalan Lada Puteh with rooms for rent on a website, said: 'Most of them are here for medical treatments. We rarely have tourists.'
She added that most patients and their relatives stayed for a couple of days but some, such as cancer patients undergoing chemotherapy, would stay much longer, sometimes for more than a month.
Apart from the convenient distance from one of the region's largest private hospitals, the main draw of these 'hostels' is their affordability. 'Medical expenses are already so costly, and everything else in Singapore is also very expensive,' said Madam Kartini. 'At least they can now save on lodging.'
A hotel room in this prime area goes for between $200 and $600 a night.
Some residents in the area, though, are unhappy.
A resident in her 30s, who declined to be named, is disturbed by how such businesses have 'spoilt the neighbourhood'. She complained of shady characters. 'It is no longer the case where I can let my son play outside,' she added.
Mr Woo Chan Joo, a 77-year-old retiree, lives across a house where rooms used to be rented out until a fire there two months ago put an end to that. He said: 'There were many people coming and going, some of them were in wheelchairs, some bandaged... It's more peaceful now.'
kzainal@sph.com.sg
Additional reporting by Yeo Shang Long and Ang Yiying
--------------------------------------------------------------------------------
Some maids double as 'hostel manager' or 'concierge'
By Karen Zainal & Yeo Shang Long
DOMESTIC helpers or hostel managers? When it comes to some maids working in several private houses surrounding the Mt Elizabeth Hospital, the distinction is often not so clear.
One such maid, who gave her name as Madam Kartini, cooks, does the dishes and irons the laundry for 71-year-old 'Lina' and her son in a two-storey house in Jalan Lada Puteh.
When she is not cleaning, she acts as the concierge for the illegal budget accommodation at her employer's house.
Madam Kartini's contact details, as well as photographs of the house, are listed on a website advertising the house as a hostel for Indonesian visitors. Charges are between $60 and $110 for a night, depending on the number of guests.
As the contact person for the business, Madam Kartini liaises with the largely Indonesian clientele in their native tongue - overcoming the language barrier faced by her Mandarin-speaking employer.
'She handles everything. She's the one who handles telephone bookings, prepares the rooms, hands over the keys and settles payment,' explained a 47-year-old Indonesian businessman who has helped several of his friends book rooms from Madam Kartini over the last three years.
'Once, my friend arrived past midnight and she was at the house waiting for him,' he added.
According to Madam Kartini, her employer lives there, but is usually not around during the day. Her son lives in a terrace house across the road, where the doors are also open to foreigners.
It is a similar story at the stretch of private houses along the nearby Jalan Elok where, residents told The Straits Times, maids acted as the contact points for their respective houses.
The owners of these houses - on the other hand - were rarely seen, said residents, and some do not even live there. One resident sees her neighbour only occasionally dropping off her laundry.
'The maids run the show - they will even dress properly to fetch tenants from the hospital,' said a resident who declined to be named. One of the maids even handed out a name card with her name, contact number, and the heading 'Rental Room With AC'. AC stands for air-conditioning.
These maids seem unaware that their activities are illegal. Under the Ministry of Manpower's regulations, maids are allowed to perform domestic duties at only their employers' residences.
Employers violate work permit conditions when they use their maids to perform non-domestic work, or to work outside of employers' residences. If convicted, employers can be fined up to $5,000 or jailed up to six months, or both.
Those with information on such offences can contact the ministry on 6438-5122 or e-mail mom_fmmd@mom.gov.sg.
Terrace house 'hostels' for medical tourists
Homes near Orchard Rd hospital found illegally offering budget lodging to patients, travellers
By Karen Zainal
SEVERAL terrace house owners in the quiet lanes near Mount Elizabeth Hospital are opening their doors to medical tourists and travellers seeking budget accommodation in the heart of Orchard Road.
They charge between $50 and $120 per room a night, depending on the number of guests and whether it is peak season.
A room in a hotel in that area could cost at least three or four times more. For the price they pay, tenants get a bed, bathroom access, air-conditioning and housekeeping services. Rooms with bathrooms are pricier. These 'hostels' are often fronted by the owners' maids, usually Indonesians, who can communicate better with these overseas patients, many of whom are also Indonesians.
The owners, however, appear to be breaking the Urban Redevelopment Authority's (URA) rules, which state that private properties cannot be converted to other uses such as workers' dormitories or boarding houses. The Straits Times found at least eight terrace houses within a two-minute walk of Mount Elizabeth Hospital where foreigners can stay on a short-term basis for a fee.
Most are in Jalan Elok, between the hospital grounds and York Hotel, but there are also a few along Jalan Lada Puteh, which is behind the hospital and next to Lucky Plaza.
On one Tuesday afternoon, The Straits Times spotted a group of six Indonesians dragging their suitcases behind them and entering one of the houses along Jalan Elok. When approached, one said they were in Singapore on vacation and had heard about the lodging from a friend back home. The group booked two rooms for $120 a night.
Moments after the group entered, a woman in a blue sports car pulled up just outside the house. Madam S.L. Chong, 64, identified herself as the owner but said the group who had just walked in were her Indonesian husband's relatives.
The housewife said she charged them a minimal fee, as she was 'unemployed and needed to make a living'. She claimed that she had approval from the URA to do this.
However, a check with the authority showed that this was not true. Its spokesman said it would investigate the possible infringement. The URA usually issues a warning notice to offenders and, if the unauthorised use does not stop, they can be charged in court and face fines of up to $200,000 or jail of up to a year, or both.
Two doors away from Madam Chong's house, Madam Lily Lim told a similar story - that those staying temporarily in her house were her in-laws from Indonesia.
However, when The Straits Times contacted Madam Lim as an interested customer to inquire about lodging, she offered a room in her house at $50 a day.
When asked about this, Madam Lim insisted these rates were only for her relatives and said she did not require government approval for this.
Like Madam Chong, she said she could not afford to house them for free.
Business appears brisk at these 'hostels'. The housekeepers of two of such houses said all their six bedrooms were fully occupied, for the next eight days for one of them.
A 47-year-old Indonesian businessman who has helped friends book accommodation at these houses said that, during the Formula One race season or other peak periods, these 'hostels' charged almost double the usual rates to cash in on the hotter demand.
Two houses at Jalan Elok even had an additional room built in the parking space, he said. It is understood that some houses have also repartitioned their bedrooms. 'You can tell; some of the walls sound hollow,' said the businessman.
Unauthorised repartitioning with the purpose of operating a boarding house is also illegal, said the URA.
Some of the owners of these terrace houses do not even live there, said other Jalan Elok residents. Indonesian housekeepers, allegedly employed as maids, are left in charge of a host of additional responsibilities such as providing housekeeping services to tenants.
Such accommodation, though illegal, do cater to the need for affordable short-term stays, filling a gap between hotels and hostels, which are usually run-down.
Several guests The Straits Times approached said they were in Singapore either to seek medical help or to visit relatives in hospital. Some were private students from countries such as Vietnam and China.
Mr Jim Chen, 40, a tenant from the Philippines, ditched his initial plans of staying at a serviced apartment at the nearby Lucky Plaza because it was 'just too crowded and too noisy'. The fitness centre manager, who is in Singapore for physiotherapy, settled for a room in a Jalan Elok house, where he found the environment more tranquil.
An Indonesian maid, who gave her name as Madam Kartini and who advertises a house on Jalan Lada Puteh with rooms for rent on a website, said: 'Most of them are here for medical treatments. We rarely have tourists.'
She added that most patients and their relatives stayed for a couple of days but some, such as cancer patients undergoing chemotherapy, would stay much longer, sometimes for more than a month.
Apart from the convenient distance from one of the region's largest private hospitals, the main draw of these 'hostels' is their affordability. 'Medical expenses are already so costly, and everything else in Singapore is also very expensive,' said Madam Kartini. 'At least they can now save on lodging.'
A hotel room in this prime area goes for between $200 and $600 a night.
Some residents in the area, though, are unhappy.
A resident in her 30s, who declined to be named, is disturbed by how such businesses have 'spoilt the neighbourhood'. She complained of shady characters. 'It is no longer the case where I can let my son play outside,' she added.
Mr Woo Chan Joo, a 77-year-old retiree, lives across a house where rooms used to be rented out until a fire there two months ago put an end to that. He said: 'There were many people coming and going, some of them were in wheelchairs, some bandaged... It's more peaceful now.'
kzainal@sph.com.sg
Additional reporting by Yeo Shang Long and Ang Yiying
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Some maids double as 'hostel manager' or 'concierge'
By Karen Zainal & Yeo Shang Long
DOMESTIC helpers or hostel managers? When it comes to some maids working in several private houses surrounding the Mt Elizabeth Hospital, the distinction is often not so clear.
One such maid, who gave her name as Madam Kartini, cooks, does the dishes and irons the laundry for 71-year-old 'Lina' and her son in a two-storey house in Jalan Lada Puteh.
When she is not cleaning, she acts as the concierge for the illegal budget accommodation at her employer's house.
Madam Kartini's contact details, as well as photographs of the house, are listed on a website advertising the house as a hostel for Indonesian visitors. Charges are between $60 and $110 for a night, depending on the number of guests.
As the contact person for the business, Madam Kartini liaises with the largely Indonesian clientele in their native tongue - overcoming the language barrier faced by her Mandarin-speaking employer.
'She handles everything. She's the one who handles telephone bookings, prepares the rooms, hands over the keys and settles payment,' explained a 47-year-old Indonesian businessman who has helped several of his friends book rooms from Madam Kartini over the last three years.
'Once, my friend arrived past midnight and she was at the house waiting for him,' he added.
According to Madam Kartini, her employer lives there, but is usually not around during the day. Her son lives in a terrace house across the road, where the doors are also open to foreigners.
It is a similar story at the stretch of private houses along the nearby Jalan Elok where, residents told The Straits Times, maids acted as the contact points for their respective houses.
The owners of these houses - on the other hand - were rarely seen, said residents, and some do not even live there. One resident sees her neighbour only occasionally dropping off her laundry.
'The maids run the show - they will even dress properly to fetch tenants from the hospital,' said a resident who declined to be named. One of the maids even handed out a name card with her name, contact number, and the heading 'Rental Room With AC'. AC stands for air-conditioning.
These maids seem unaware that their activities are illegal. Under the Ministry of Manpower's regulations, maids are allowed to perform domestic duties at only their employers' residences.
Employers violate work permit conditions when they use their maids to perform non-domestic work, or to work outside of employers' residences. If convicted, employers can be fined up to $5,000 or jailed up to six months, or both.
Those with information on such offences can contact the ministry on 6438-5122 or e-mail mom_fmmd@mom.gov.sg.
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