Sep 14, 2010
Less demand for new flats as measures bite
Yishun BTO project attracts fewer than three buyers per unit, well below the usual
By Jessica Cheam
MEASURES to cool the property market appear to be having an effect going by the lower level of demand for a new build-to-order (BTO) development.
The Yishun Riverwalk project attracted 3,225 applications for 1,408 flats - well below the ratio seen in past BTO launches when up to six times the number of bids were seen for each unit.
Demand for four- and five-room flats - typically more popular - was slightly under three applications for every unit. Four-roomers received 1,608 applications for 652 flats while the 252 five-roomers attracted 718 bids.
But demand was still robust for HDB's sale of balance flats, which offers homes ready for occupation within months.
The HDB received 10,968 applications for 1,624 homes on offer - almost seven for every flat.
Both sales launches closed yesterday.
Industry analysts say the flatter demand for new flats indicates that the cooling measures introduced two weeks ago have started to bite.
BTO launches held over the past couple of years have attracted up to six applications for every flat.
ERA Asia Pacific associate director Eugene Lim said the lower-than-usual demand could be due to location and the recent measures.
First-timers are likely also returning to the HDB resale market in anticipation of falling prices, he said. These buyers had found themselves priced out of the resale market amid the property boom and flocked to join the queue for new HDB flats.
'But now buyers are waiting to see if prices will drop. Those who have a need for homes will go to the resale market instead of queueing for a new flat which takes three years to build,' said Mr Lim.
Robust application numbers also do not necessarily translate into actual demand.
The HDB said recently that despite an overwhelming number of applications for landmark projects at Dawson, first-time buyers have been dropping out. It said that 23 per cent of first-time applicants did not select flats even though they were invited to.
The dropout rate was even higher on the first day of the selection process, with 25 per cent of first-timers declining the opportunity to secure a unit. The main reason given was that their choice of unit had been sold or they wanted to 'reconsider other housing options'.
Demand could drop further given the ample choice of homes as the HDB boosts supply.
Meanwhile, a residential site at Bedok Reservoir Crescent will be launched for sale today under the HDB's design, build and sell scheme (DBSS).
The site, which is near established amenities, has a gross floor area of 502,362 sq ft that could yield 430 homes. The tender closes on Nov 2.
Under the DBSS, private developers build public housing flats that come with condo-like finishes.
More buyers are also eligible for DBSS flats after the Government recently lifted the $8,000 monthly income ceiling for such buyers to $10,000.
jcheam@sph.com.sg
See Money
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WAIT AND SEE
'Now buyers are waiting to see if prices will drop. Those who have a need for homes will go to the resale market instead of queueing for a new flat which takes three years to build.'
ERA Asia Pacific associate director Eugene Lim
Tuesday, September 14, 2010
ST : HDB clarifies rules on flat ownership relating to inheritance
Sep 14, 2010
HDB clarifies rules on flat ownership relating to inheritance
By Esther Teo
THE new rules on real estate ownership will not necessarily force private property owners who inherit an HDB flat to sell one of the homes.
There is some leeway in the rule that states that if you buy an HDB resale flat you must dispose of any additional private property - held locally or abroad - within six months of the purchase.
The Housing Board clarified yesterday that if a property owner inherits an HDB flat that was bought before Aug 30 - the day the measures came into effect - he could keep both homes.
But if the flat's minimum occupation period (MOP) has yet to be met, the person inheriting it will have to move in until the MOP is complete, unless prior approval from HDB has been obtained to sublet the whole flat. This is in line with existing rules.
The dilemma will arise if a private property owner inherits an HDB flat that was bought on or after Aug 30.
The owner will have to decide which property - public or private - to sell.
Once a flat's MOP is met, a private property owner will be able to inherit it as long as he meets the relevant eligibility conditions.
This means that any resale flat bought within the past two weeks will only be able to be inherited and kept by a private property-owning beneficiary in 2015 at the earliest.
But the HDB may consider exemptions on a case-by-case basis.
In situations where the inherited flat has already met the MOP but the beneficiary decides not to take it over - or is not eligible - it can be sold on the open market within 12 months from the date it was vested.
If the inherited flat does not meet the MOP, the beneficiary can ask the HDB for help. 'We will assess the merits of the case to see how we can assist him,' it said.
Based on existing rules, an HDB flat owner can own only one HDB flat at any one time. An HDB flat owner who inherits another HDB flat has to decide which one to keep.
'If he decides to keep the inherited flat, he has to sell his existing HDB flat - subject to eligibility conditions for sale such as the MOP - before he can take possession of the inherited flat,' the HDB said.
Mrs Linda Chew, 52, said that it was only fair that beneficiaries who own private property are not forced to dispose of flats that their parents might have left them.
Her 74-year-old mother lives in a three-room HDB flat in Tampines while she lives in a condo in Simei.
'My mum is still healthy but eventually when we have to decide on what to do with her flat, I think we want to have all options available to us still... Maybe even holding on to it as a long-term investment,' said Mrs Chew.
Experts say that inheritance seems to be the only way for private property owners to enter the HDB resale market without having to sell their existing homes.
They say that the new rules might not affect that many people as many sell inherited flats and share the proceeds among siblings.
Mr Colin Tan, research and consultancy director of Chesterton Suntec International, said the new rules were fair and would set people's minds at rest since inheriting a flat was often a situation outside of one's control.
'In most cases, unless the property gives you an incentive to keep it, such as if it's centrally located in a good location, most people will liquidate... With more resale flats expected to enter the market, it might also be better to cash out now,' he added.
HDB clarifies rules on flat ownership relating to inheritance
By Esther Teo
THE new rules on real estate ownership will not necessarily force private property owners who inherit an HDB flat to sell one of the homes.
There is some leeway in the rule that states that if you buy an HDB resale flat you must dispose of any additional private property - held locally or abroad - within six months of the purchase.
The Housing Board clarified yesterday that if a property owner inherits an HDB flat that was bought before Aug 30 - the day the measures came into effect - he could keep both homes.
But if the flat's minimum occupation period (MOP) has yet to be met, the person inheriting it will have to move in until the MOP is complete, unless prior approval from HDB has been obtained to sublet the whole flat. This is in line with existing rules.
The dilemma will arise if a private property owner inherits an HDB flat that was bought on or after Aug 30.
The owner will have to decide which property - public or private - to sell.
Once a flat's MOP is met, a private property owner will be able to inherit it as long as he meets the relevant eligibility conditions.
This means that any resale flat bought within the past two weeks will only be able to be inherited and kept by a private property-owning beneficiary in 2015 at the earliest.
But the HDB may consider exemptions on a case-by-case basis.
In situations where the inherited flat has already met the MOP but the beneficiary decides not to take it over - or is not eligible - it can be sold on the open market within 12 months from the date it was vested.
If the inherited flat does not meet the MOP, the beneficiary can ask the HDB for help. 'We will assess the merits of the case to see how we can assist him,' it said.
Based on existing rules, an HDB flat owner can own only one HDB flat at any one time. An HDB flat owner who inherits another HDB flat has to decide which one to keep.
'If he decides to keep the inherited flat, he has to sell his existing HDB flat - subject to eligibility conditions for sale such as the MOP - before he can take possession of the inherited flat,' the HDB said.
Mrs Linda Chew, 52, said that it was only fair that beneficiaries who own private property are not forced to dispose of flats that their parents might have left them.
Her 74-year-old mother lives in a three-room HDB flat in Tampines while she lives in a condo in Simei.
'My mum is still healthy but eventually when we have to decide on what to do with her flat, I think we want to have all options available to us still... Maybe even holding on to it as a long-term investment,' said Mrs Chew.
Experts say that inheritance seems to be the only way for private property owners to enter the HDB resale market without having to sell their existing homes.
They say that the new rules might not affect that many people as many sell inherited flats and share the proceeds among siblings.
Mr Colin Tan, research and consultancy director of Chesterton Suntec International, said the new rules were fair and would set people's minds at rest since inheriting a flat was often a situation outside of one's control.
'In most cases, unless the property gives you an incentive to keep it, such as if it's centrally located in a good location, most people will liquidate... With more resale flats expected to enter the market, it might also be better to cash out now,' he added.
ST : New property rules: 'Small impact' on private sector
Sep 14, 2010
New property rules: 'Small impact' on private sector
By Joyce Teo
THE measures introduced to cool the property boom are 'really for the HDB market' and not the private real estate sector, said CapitaLand Residential Singapore chief executive Wong Heang Fine.
Mr Wong pointed out yesterday that people are still unsure about how the steps unveiled last month will affect the market.
'That will settle in a couple of months and then we'll be able to assess what the real impact is,' he said.
'But as you can see from the measures, it doesn't affect first-time buyers and buyers of private housing, except if you're a speculator.'
Mr Wong told the media and analysts that the measures will have some impact but it will be small.
He said the market is strong with good liquidity and low interest rates, and underpinned by good economic growth.
The measures include tighter lending rules for home owners with mortgages who are looking to buy another property.
Mr Wong was speaking during a visit to a Bedok Town Centre site that CapitaLand Residential Singapore and CapitaMalls Asia won in a tender last week with a bid of $788.89 million or $841 per sq ft (psf) per plot ratio.
The two CapitaLand units will build a 13-storey mall and residential complex on the land.
The mall - similar in size to Bishan Junction 8 - will take up three floors or a gross floor area of 375,266 sq ft, from level one to basement two.
It will have an estimated net lettable area of 230,000 sq ft to 240,000 sq ft.
This makes it about three times bigger than the neighbouring Bedok Point mall.
Basements one and two will be linked directly to Bedok MRT station and level one to a new bus interchange, which will occupy about 3,000 sq m.
When completed in the first half of 2014, the mall's capital value will be about $3,000 psf of net lettable area.
Knight Frank group managing director Danny Yeo said the Bedok mall should be able to fetch rents of $15 psf to $17 psf, higher than that of a typical suburban mall.
Mr Yeo said the location is promising as there is a lack of malls in the Bedok area and that catchment is not an issue.
The new mall will increase the estimated retail space per capita in Bedok from 2 sq ft to 2.8 sq ft, compared with 5.2 sq ft in Tampines, said CapitaMalls Asia chief executive Lim Beng Chee.
The 500 apartments will sit on top of the mall, taking up a gross floor area of 562,899 sq ft, or 60 per cent of the space.
They will be launched nine months or so after.
Construction of the building will start in the fourth quarter of next year after CapitaLand builds a temporary bus interchange next to the site.
The existing interchange is on the land CapitaLand has bought.
Meanwhile, CapitaLand will push out its designer condo project on the former Farrer Court site by the end of this year, said Mr Wong.
The launch of the upmarket condo, which was designed by well-known architect Zaha Hadid, has been delayed by market conditions.
It was to have been launched for sale in the first half of 2009 and then in the first half of this year.
--------------------------------------------------------------------------------
The market is strong with good liquidity and low interest rates, and underpinned by good economic growth.
New property rules: 'Small impact' on private sector
By Joyce Teo
THE measures introduced to cool the property boom are 'really for the HDB market' and not the private real estate sector, said CapitaLand Residential Singapore chief executive Wong Heang Fine.
Mr Wong pointed out yesterday that people are still unsure about how the steps unveiled last month will affect the market.
'That will settle in a couple of months and then we'll be able to assess what the real impact is,' he said.
'But as you can see from the measures, it doesn't affect first-time buyers and buyers of private housing, except if you're a speculator.'
Mr Wong told the media and analysts that the measures will have some impact but it will be small.
He said the market is strong with good liquidity and low interest rates, and underpinned by good economic growth.
The measures include tighter lending rules for home owners with mortgages who are looking to buy another property.
Mr Wong was speaking during a visit to a Bedok Town Centre site that CapitaLand Residential Singapore and CapitaMalls Asia won in a tender last week with a bid of $788.89 million or $841 per sq ft (psf) per plot ratio.
The two CapitaLand units will build a 13-storey mall and residential complex on the land.
The mall - similar in size to Bishan Junction 8 - will take up three floors or a gross floor area of 375,266 sq ft, from level one to basement two.
It will have an estimated net lettable area of 230,000 sq ft to 240,000 sq ft.
This makes it about three times bigger than the neighbouring Bedok Point mall.
Basements one and two will be linked directly to Bedok MRT station and level one to a new bus interchange, which will occupy about 3,000 sq m.
When completed in the first half of 2014, the mall's capital value will be about $3,000 psf of net lettable area.
Knight Frank group managing director Danny Yeo said the Bedok mall should be able to fetch rents of $15 psf to $17 psf, higher than that of a typical suburban mall.
Mr Yeo said the location is promising as there is a lack of malls in the Bedok area and that catchment is not an issue.
The new mall will increase the estimated retail space per capita in Bedok from 2 sq ft to 2.8 sq ft, compared with 5.2 sq ft in Tampines, said CapitaMalls Asia chief executive Lim Beng Chee.
The 500 apartments will sit on top of the mall, taking up a gross floor area of 562,899 sq ft, or 60 per cent of the space.
They will be launched nine months or so after.
Construction of the building will start in the fourth quarter of next year after CapitaLand builds a temporary bus interchange next to the site.
The existing interchange is on the land CapitaLand has bought.
Meanwhile, CapitaLand will push out its designer condo project on the former Farrer Court site by the end of this year, said Mr Wong.
The launch of the upmarket condo, which was designed by well-known architect Zaha Hadid, has been delayed by market conditions.
It was to have been launched for sale in the first half of 2009 and then in the first half of this year.
--------------------------------------------------------------------------------
The market is strong with good liquidity and low interest rates, and underpinned by good economic growth.
BT : DBSS site at Bedok Reservoir launched
Business Times - 14 Sep 2010
DBSS site at Bedok Reservoir launched
By UMA SHANKARI
THE Housing and Development Board (HDB) has launched a plot at Bedok Reservoir Crescent for sale by public tender under the design, build and sell scheme (DBSS).
Around 430 public housing units can be built on the site, which is 179,400 square feet in size and can be built up to a maximum gross floor area of 502,400 sq ft.
Analysts expect it to sell for $250-300 per sq ft per plot ratio (psf ppr).
It is likely to be popular with developers because it is an established area, says Dennis Wee, chairman of Dennis Wee Realty.
PropNex chief executive Mohamed Ismail said: 'The entire Bedok Reservoir belt is being built up into a rich belt of attractive mass-market housing.'
Compared with private homes in the area - such as the Bedok Waterfront collection developed jointly by Frasers Centrepoint and Far East Organization - the DBSS flats will be appealing in price terms, he said. New private apartments in the area are selling for a median price of $1,000 psf, while the DBSS flats should be priced around $600 psf.
Analysts reckon buyer interest in the flats will be strong, as the income ceiling for buying DBSS flats was revised recently. First-time buyers earning up to $10,000 a month can now buy new DBSS flats with a $30,000 CPF Housing Grant.
Including the latest Bedok Reservoir plot, HDB has released three DBSS sites with a combined estimated yield of 1,710 flats so far this year. Another two DBSS sites with a combined estimated yield of 1,210 units - one at Upper Serangoon Road and the other at Jurong West - will be launched for sale in the coming months.
More sites for DBSS development will be made available if there is sustained demand, HDB says.
Flats sold under the DBSS come with a 99-year lease and are offered to buyers under HDB's eligibility conditions. But the developers who buy such sites have flexibility in designing, pricing and selling the flats - subject to legislation and regulations.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
DBSS site at Bedok Reservoir launched
By UMA SHANKARI
THE Housing and Development Board (HDB) has launched a plot at Bedok Reservoir Crescent for sale by public tender under the design, build and sell scheme (DBSS).
Around 430 public housing units can be built on the site, which is 179,400 square feet in size and can be built up to a maximum gross floor area of 502,400 sq ft.
Analysts expect it to sell for $250-300 per sq ft per plot ratio (psf ppr).
It is likely to be popular with developers because it is an established area, says Dennis Wee, chairman of Dennis Wee Realty.
PropNex chief executive Mohamed Ismail said: 'The entire Bedok Reservoir belt is being built up into a rich belt of attractive mass-market housing.'
Compared with private homes in the area - such as the Bedok Waterfront collection developed jointly by Frasers Centrepoint and Far East Organization - the DBSS flats will be appealing in price terms, he said. New private apartments in the area are selling for a median price of $1,000 psf, while the DBSS flats should be priced around $600 psf.
Analysts reckon buyer interest in the flats will be strong, as the income ceiling for buying DBSS flats was revised recently. First-time buyers earning up to $10,000 a month can now buy new DBSS flats with a $30,000 CPF Housing Grant.
Including the latest Bedok Reservoir plot, HDB has released three DBSS sites with a combined estimated yield of 1,710 flats so far this year. Another two DBSS sites with a combined estimated yield of 1,210 units - one at Upper Serangoon Road and the other at Jurong West - will be launched for sale in the coming months.
More sites for DBSS development will be made available if there is sustained demand, HDB says.
Flats sold under the DBSS come with a 99-year lease and are offered to buyers under HDB's eligibility conditions. But the developers who buy such sites have flexibility in designing, pricing and selling the flats - subject to legislation and regulations.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
ST : Muted sales after new property rules kick in
Sep 13, 2010
Muted sales after new property rules kick in
Buyers waiting for prices to drop, but developers hold steady
By Esther Teo
IT IS fewer visitors and even fewer sales for property showflats across the island as buyers play a waiting game in the hope of seeing prices fall.
However, developers have yet to blink, with asking prices at most showflats holding steady, with one - NV Residences in Pasir Ris - even raising prices marginally at the weekend.
Two weeks after measures to cool the property market were introduced, NV Residences bucked the trend of muted sales with a strong showing of 90 units sold at the Hari Raya weekend.
This brings total sales to 250 out of 300 units released. Eighty per cent of buyers were Singaporeans; the rest were permanent residents and foreigners, a City Developments (CDL) spokesman said.
Prices were raised by between 1 per cent and 2 per cent at the weekend from its average selling price of $830 per sq feet (psf) when the condominium first previewed last Wednesday. The 642-unit condo is the first large residential project to be released after the Government introduced new property rules on Aug 30.
The new measures included tighter lending rules for home owners with existing mortgages looking to buy another property. They can now borrow up to only 70 per cent of the value, down from 80 per cent. Those who buy an HDB resale flat on or after Aug 30 must also dispose of their private property - including any held overseas - within six months of the HDB purchase.
When The Straits Times visited NV Residences on Saturday afternoon, more than 100 potential buyers crowded its showflat at Pasir Ris.
Madam Linda Tay, 55, who bought a two-bedroom apartment there, said she was unaffected by the new rules as the mortgage on the HDB flat she and her husband have been living in for the past 22 years was paid up.
'This is a long-term investment for us, we can rent it out or pass it on to our children...We think it is better than just leaving our money in the bank,' she said.
PropNex chief executive Mohamed Ismail said the project's good location and reasonable pricing were key to its strong sales. Other sites sold to developers this year are expected to be launched for up to $1,000 psf, given their break-even prices of about $800 psf, he said.
Another analyst said that NV Residences, as the newest launch on the market, would attract the most buyer interest.
At other showflats across the island, buyer traffic was down, with only a handful of visitors at any one time. It was a quiet Saturday afternoon for the showflats at Waterfront Gold at Bedok Reservoir Road, Centro Residences near Ang Mo Kio MRT and Flamingo Valley in Siglap.
Some agents said the number of walk-in buyers at showflats has dropped by up to 10 per cent since the cooling measures were introduced.
Far East Organization's Centro Residences did not record any sales at the weekend. Phase Two of 319-unit leasehold project The Greenwich at Seletar Hills saw nine homes sold, bringing total sales to 225 out of 265 units launched, at an average selling price of $1,074 psf.
Frasers Centrepoint Homes declined to give weekend sales figures for Flamingo Valley and Waterfront Gold.
DMG and Partners property consultant Brandon Lee said it was unlikely developers would lower prices immediately as the strong run up in property prices and sales over the past year have given them a strong holding power.
Mr Ong Kah Seng, Cushman & Wakefield Asia-Pacific research senior manager, said that for prices to fall, take-up must first moderate, reflecting the onset of a contraction in homebuying interest.
'Developers and home owners are reluctant to lower prices and...will consider doing so only when all circumstances dictate a necessity,' he said.
But PropNex's Mr Ismail said that while it was still too early to expect any price adjustment, the mass market segment might see a 5 per cent to 10 per cent reduction in prices should the take-up rate in newer launches be lukewarm. 'This will probably unfold in the next couple of months,' he said.
esthert@sph.com.sg
Muted sales after new property rules kick in
Buyers waiting for prices to drop, but developers hold steady
By Esther Teo
IT IS fewer visitors and even fewer sales for property showflats across the island as buyers play a waiting game in the hope of seeing prices fall.
However, developers have yet to blink, with asking prices at most showflats holding steady, with one - NV Residences in Pasir Ris - even raising prices marginally at the weekend.
Two weeks after measures to cool the property market were introduced, NV Residences bucked the trend of muted sales with a strong showing of 90 units sold at the Hari Raya weekend.
This brings total sales to 250 out of 300 units released. Eighty per cent of buyers were Singaporeans; the rest were permanent residents and foreigners, a City Developments (CDL) spokesman said.
Prices were raised by between 1 per cent and 2 per cent at the weekend from its average selling price of $830 per sq feet (psf) when the condominium first previewed last Wednesday. The 642-unit condo is the first large residential project to be released after the Government introduced new property rules on Aug 30.
The new measures included tighter lending rules for home owners with existing mortgages looking to buy another property. They can now borrow up to only 70 per cent of the value, down from 80 per cent. Those who buy an HDB resale flat on or after Aug 30 must also dispose of their private property - including any held overseas - within six months of the HDB purchase.
When The Straits Times visited NV Residences on Saturday afternoon, more than 100 potential buyers crowded its showflat at Pasir Ris.
Madam Linda Tay, 55, who bought a two-bedroom apartment there, said she was unaffected by the new rules as the mortgage on the HDB flat she and her husband have been living in for the past 22 years was paid up.
'This is a long-term investment for us, we can rent it out or pass it on to our children...We think it is better than just leaving our money in the bank,' she said.
PropNex chief executive Mohamed Ismail said the project's good location and reasonable pricing were key to its strong sales. Other sites sold to developers this year are expected to be launched for up to $1,000 psf, given their break-even prices of about $800 psf, he said.
Another analyst said that NV Residences, as the newest launch on the market, would attract the most buyer interest.
At other showflats across the island, buyer traffic was down, with only a handful of visitors at any one time. It was a quiet Saturday afternoon for the showflats at Waterfront Gold at Bedok Reservoir Road, Centro Residences near Ang Mo Kio MRT and Flamingo Valley in Siglap.
Some agents said the number of walk-in buyers at showflats has dropped by up to 10 per cent since the cooling measures were introduced.
Far East Organization's Centro Residences did not record any sales at the weekend. Phase Two of 319-unit leasehold project The Greenwich at Seletar Hills saw nine homes sold, bringing total sales to 225 out of 265 units launched, at an average selling price of $1,074 psf.
Frasers Centrepoint Homes declined to give weekend sales figures for Flamingo Valley and Waterfront Gold.
DMG and Partners property consultant Brandon Lee said it was unlikely developers would lower prices immediately as the strong run up in property prices and sales over the past year have given them a strong holding power.
Mr Ong Kah Seng, Cushman & Wakefield Asia-Pacific research senior manager, said that for prices to fall, take-up must first moderate, reflecting the onset of a contraction in homebuying interest.
'Developers and home owners are reluctant to lower prices and...will consider doing so only when all circumstances dictate a necessity,' he said.
But PropNex's Mr Ismail said that while it was still too early to expect any price adjustment, the mass market segment might see a 5 per cent to 10 per cent reduction in prices should the take-up rate in newer launches be lukewarm. 'This will probably unfold in the next couple of months,' he said.
esthert@sph.com.sg
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To know more how this is really work for you and your clients....
Please contact me Terence Tay @ (+65) 9387-5896 or email : terencetay.kh@gmail.com
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