Oct 21, 2010
HDB allays fears it may block sales
By Jessica Cheam, Housing Correspondent
THE Housing Board (HDB) yesterday said that the additional disclosures it is requiring from flat sellers are meant to help them make responsible decisions, not block the sale of flats.
Earlier this week, the HDB introduced a seven-day cooling-off period which sellers must go through, as well as a requirement to submit an enhanced 'resale checklist'.
The new checklist requires those wanting to sell their HDB flats from Nov 1 to disclose certain information.
Flat sellers will have to state their next housing arrangement, and those buying another HDB flat will have to work out the sales proceeds of their current flat and submit a financial plan for buying the next flat.
This has raised concerns about whether such disclosures by home buyers could be a basis for HDB to reject sale applications. HDB could disagree with the financial plans, for instance.
The resale checklist was first introduced in 2008.
Responding to queries yesterday, HDB said the objective of the enhanced checklist and financial plan was to assist sellers in making an informed decision.
'More importantly, it is to help sellers plan ahead and consider where they would be moving to after they sell their flats. It is not meant to make the resale process unduly onerous or to block the sale of the flat,' it said.
'However, it is the sellers' and their agents' responsibility to work out the financial plan and to draw their own conclusions on whether the seller would have proper alternative accommodation after the sale of the flat,' it added.
PropNex chief executive Mohamed Ismail said it was unlikely that HDB would intervene in practice. 'This form is just a thought process for HDB sellers, to see roughly whether or not they can afford the next purchase,' he said.
Home seller Victor Ching, 52, who recently put his Yishun flat up for sale to test the market, felt that the checklist was slightly troublesome but a good thing.
'Many buyers tend to spend the money too quickly after they sell their homes, but they don't know how to calculate how much they actually earn from the sale after the deductions, like CPF (Central Provident Fund) and paying for the next flat,' he said.
Another potential seller, Ms Teh Ailin, in her 30s and living in Sengkang, noted that the information required was 'quite personal', but agreed that it was justified as she would have to do those sums anyway.
Also, some of the information required, such as the seller's monthly income, is already provided to the HDB.
HDB provides a financial calculator on its website for flat sellers to determine their sale proceeds and financial plan.
Sellers are asked for information such as the price of the flat, their gross monthly income and expenditure to determine the amount of monthly repayment for their new flat.
After sellers have submitted the checklist and waited for seven days, they can grant the option to purchase to the buyer.
The cooling-off period and the enhanced checklist came after MPs called for such a provision during a recent Parliament sitting.
MP for Hong Kah GRC Ang Mong Seng told The Straits Times he fully supported the changes as he had seen appeals from constituents who sold their flats because of bad financial advice or pressure to sell their homes fast.
'I've encountered aged home owners who sell their flats to settle debts in the family, then they end up with no money left to buy the next house,' he said.
West Coast GRC MP Cedric Foo, chairman of the Government Parliamentary Committee for National Development and Environment, said he had come across similar situations where residents who had already sold their flats were desperately looking for new accommodation, claiming they had been misled by agents.
'I think the checklist helps in terms of making sure that anyone who sells is clearly aware of how they're going to get the next flat, and how they are going to finance it,' he added.
Additional reporting by Cheryl Ong
Thursday, October 21, 2010
ST : Number of property agents set to fall
Oct 21, 2010
Number of property agents set to fall
Stricter standards from sector's first regulator to target errant agents
By Jessica Cheam & Esther Teo
FEWER property agents will be plying the trade from next year, but they will - hopefully - be better informed.
The property industry is bracing itself for a mass cull of estate agents as the industry's first ever regulator, the Council for Estate Agencies (CEA), begins operations tomorrow.
Agency bosses estimate that the current national 30,000-strong pool of agents will shrink by a third to about 20,000 overnight because of stricter standards laid down by the new council.
The new regulations mainly involve the strict enforcement of industry exams, and are aimed at ridding the industry of errant, sub-standard agents who have tarred its reputation.
Industry watchers expect the rising number of complaints in recent years to decline as the quality of agents rises.
Agencies are expected to submit a final list of names of agents who make the cut to the CEA by midnight tomorrow.
Registration with the council, which comes under the Ministry of National Development (MND), will become mandatory from Jan 1.
PropNex chief executive Mohamed Ismail said his firm's headcount will slide from 6,000 to about 4,000.
HSR chief executive Patrick Liew said his firm will lose about half of its 7,000 agents.
It is the same story islandwide: Dennis Wee Group director Chris Koh said its number of agents will fall from 5,000 to 3,000, while ERA Asia Pacific will lose almost half of its agents, falling from 8,000 to 4,200. At OrangeTee, the 3,600 agent pool will shrink to 2,500.
The CEA was set up after legislation to regulate property agents for the first time was passed in Parliament last month. It was a milestone for the real estate sector here.
For many years, consumers had lobbied for greater regulation of an industry dogged by a rising number of complaints against agents who were attracted by Singapore's periodic property booms.
Complaints against real estate firms and agents shot up almost 60 per cent in recent years: from 670 in 2005 to 1,070 last year, according to the Consumers Association of Singapore.
To make the cut, agents must have passed existing industry examinations. Those who have not must have brokered at least three deals in the past two years. The latter group are given more time to pass the exams.
Agents who fail to meet these criteria will be treated like new applicants who must take new courses and a stricter exam set by the CEA.
Dennis Wee's Mr Koh said the agencies had been prepared for the new regime 'for some time' as a result of frequent updates from the MND.
'The quantity of agents will go down, but at least the quality will go up, because for the first time, all agents have to pass an exam before being able to practise in the property market,' he said.
HSR's Mr Liew noted that smaller to mid-sized agencies would have to spend money to ensure their systems were up to scratch to meet CEA standards.
Further industry consolidation is also expected. Already, C&H Realty has merged with its sister company C&H Properties to reduce overhead costs.
'There will be less competition in the industry now, which will be a good thing as service standards should go up,' said C&H Realty managing director Albert Lu.
The existing Institute of Estate Agents (IEA) and Singapore Accredited Estate Agencies (SAEA) will still operate.
Mr Ismail, who is also the IEA president, said the institute, which has about 2,000 property agents as members, will apply to be an approved trainer to offer training for new recruits to property agencies.
SAEA chief executive Tan Tee Khoon said the body, with the Singapore Institute of Surveyors and Valuers, will continue its enhanced accreditation scheme, which will complement the Government's mandatory licensing scheme.
Property agents interviewed welcomed the regulation of the industry, saying that for too long, inexperienced agents or part-timers made promises they could not deliver, and tarnished the profession.
Property agent Jasmine Png, 29, said agents who are experienced will not be affected by the rules. 'The regulations will make sure only the professionals make the cut,' she added.
jcheam@sph.com.sg
esthert@sph.com.sg
--------------------------------------------------------------------------------
WHO WILL MAKE THE CUT?
· PropNex: 4,000 of its 6,000 agents
· HSR: 3,500 of its 7,000 agents
· Dennis Wee: 3,000 of its 5,000 agents
· ERA Asia Pacific: 4,200 of its 8,000 agents
· OrangeTee: 2,500 of its 3,600 agents
Number of property agents set to fall
Stricter standards from sector's first regulator to target errant agents
By Jessica Cheam & Esther Teo
FEWER property agents will be plying the trade from next year, but they will - hopefully - be better informed.
The property industry is bracing itself for a mass cull of estate agents as the industry's first ever regulator, the Council for Estate Agencies (CEA), begins operations tomorrow.
Agency bosses estimate that the current national 30,000-strong pool of agents will shrink by a third to about 20,000 overnight because of stricter standards laid down by the new council.
The new regulations mainly involve the strict enforcement of industry exams, and are aimed at ridding the industry of errant, sub-standard agents who have tarred its reputation.
Industry watchers expect the rising number of complaints in recent years to decline as the quality of agents rises.
Agencies are expected to submit a final list of names of agents who make the cut to the CEA by midnight tomorrow.
Registration with the council, which comes under the Ministry of National Development (MND), will become mandatory from Jan 1.
PropNex chief executive Mohamed Ismail said his firm's headcount will slide from 6,000 to about 4,000.
HSR chief executive Patrick Liew said his firm will lose about half of its 7,000 agents.
It is the same story islandwide: Dennis Wee Group director Chris Koh said its number of agents will fall from 5,000 to 3,000, while ERA Asia Pacific will lose almost half of its agents, falling from 8,000 to 4,200. At OrangeTee, the 3,600 agent pool will shrink to 2,500.
The CEA was set up after legislation to regulate property agents for the first time was passed in Parliament last month. It was a milestone for the real estate sector here.
For many years, consumers had lobbied for greater regulation of an industry dogged by a rising number of complaints against agents who were attracted by Singapore's periodic property booms.
Complaints against real estate firms and agents shot up almost 60 per cent in recent years: from 670 in 2005 to 1,070 last year, according to the Consumers Association of Singapore.
To make the cut, agents must have passed existing industry examinations. Those who have not must have brokered at least three deals in the past two years. The latter group are given more time to pass the exams.
Agents who fail to meet these criteria will be treated like new applicants who must take new courses and a stricter exam set by the CEA.
Dennis Wee's Mr Koh said the agencies had been prepared for the new regime 'for some time' as a result of frequent updates from the MND.
'The quantity of agents will go down, but at least the quality will go up, because for the first time, all agents have to pass an exam before being able to practise in the property market,' he said.
HSR's Mr Liew noted that smaller to mid-sized agencies would have to spend money to ensure their systems were up to scratch to meet CEA standards.
Further industry consolidation is also expected. Already, C&H Realty has merged with its sister company C&H Properties to reduce overhead costs.
'There will be less competition in the industry now, which will be a good thing as service standards should go up,' said C&H Realty managing director Albert Lu.
The existing Institute of Estate Agents (IEA) and Singapore Accredited Estate Agencies (SAEA) will still operate.
Mr Ismail, who is also the IEA president, said the institute, which has about 2,000 property agents as members, will apply to be an approved trainer to offer training for new recruits to property agencies.
SAEA chief executive Tan Tee Khoon said the body, with the Singapore Institute of Surveyors and Valuers, will continue its enhanced accreditation scheme, which will complement the Government's mandatory licensing scheme.
Property agents interviewed welcomed the regulation of the industry, saying that for too long, inexperienced agents or part-timers made promises they could not deliver, and tarnished the profession.
Property agent Jasmine Png, 29, said agents who are experienced will not be affected by the rules. 'The regulations will make sure only the professionals make the cut,' she added.
jcheam@sph.com.sg
esthert@sph.com.sg
--------------------------------------------------------------------------------
WHO WILL MAKE THE CUT?
· PropNex: 4,000 of its 6,000 agents
· HSR: 3,500 of its 7,000 agents
· Dennis Wee: 3,000 of its 5,000 agents
· ERA Asia Pacific: 4,200 of its 8,000 agents
· OrangeTee: 2,500 of its 3,600 agents
ST : Impact of new landed property rules 'negligible'
Oct 20, 2010
Impact of new landed property rules 'negligible'
Foreigners, PRs make up just small part of this housing sector: Experts
By Esther Teo
PLANNED changes to rules on foreign ownership of landed property are not expected to make much of a splash, with demand and prices for these high-end homes set to stay the same, experts said.
Foreigners and permanent residents (PRs) make up only a small portion of the landed housing market - an average of 6.6 per cent of total transactions over the last 10 years according to CB Richard Ellis (CBRE).
Any ripple effect from the new rules would be 'negligible', the experts added.
One of the proposed changes set out in the Residential Property (Amendment) Bill, introduced in Parliament on Monday, states that home owners with landed property would have to dispose of their property within two years if they give up their Singapore permanent residency or citizenship status.
Failure to do so could see owners faced with a fine not exceeding $20,000 or a three-year jail term, or both.
PRs who are uncertain about where they want to be based permanently, however, might now choose to purchase a condo rather than a landed property as doing so would come without such obligations, the experts added.
On Monday, National Development Minister Mah Bow Tan released figures showing that locals make up the bulk of private home buyers in Singapore. PRs made up 13 per cent and foreigners 12 per cent of sales in the second quarter, respectively.
Mr Ong Teck Hui, Credo Real Estate head of research and consultancy, said that since the landed housing market was primarily driven by locals, the impact of the new rules would be insignificant.
'A PR who is interested in purchasing a landed home is unlikely to be deterred unless he has a sense of uncertainty over staying on in Singapore,' he added.
Cushman & Wakefield managing director Donald Han said the changes served to 'tie up the loose ends', bringing the existing Act - introduced in 1973 - in line with housing policies as it prevented foreigners from speculating in Singapore's property market.
OrangeTee's head of research and consultancy Tan Kok Keong said the rules might provide a push for PRs to buy high-end condos instead as PRs who could afford landed homes were affluent.
He said that foreigners made up only a small segment of the landed housing market as the Government had been quite strict with them owning such properties. Foreigners need permission from the Land Dealings (Approval) Unit (LDAU) before they can own landed property.
On mainland Singapore, the main criteria are that they are PRs and that they make an adequate economic contribution. However, non-PR foreigners may buy landed homes at Sentosa Cove, subject to LDAU approval.
Usually, foreigners may buy landed homes not exceeding 15,000 sq ft in land area. They may, at any one time, own just one landed home in Singapore and it must be for owner occupation only.
On the mainland, foreigners also have to hold the property for at least three years before selling. There is no minimum holding period for Sentosa Cove.
CBRE said PRs were responsible for 165 - or 5.5 per cent - of 3,007 landed home transactions from Jan 1 to Sept 9.
This figure ranged from a low of 4.4 per cent in 2000 to a high of 6.8 per cent in 2006 over the past 10 years.
Most of the PRs bought terrace houses this year, with the highest number of landed home transactions taking place in District 15 - which includes Katong, Telok Kurau and East Coast Road - followed by Districts 10 and 19.
esthert@sph.com.sg
Impact of new landed property rules 'negligible'
Foreigners, PRs make up just small part of this housing sector: Experts
By Esther Teo
PLANNED changes to rules on foreign ownership of landed property are not expected to make much of a splash, with demand and prices for these high-end homes set to stay the same, experts said.
Foreigners and permanent residents (PRs) make up only a small portion of the landed housing market - an average of 6.6 per cent of total transactions over the last 10 years according to CB Richard Ellis (CBRE).
Any ripple effect from the new rules would be 'negligible', the experts added.
One of the proposed changes set out in the Residential Property (Amendment) Bill, introduced in Parliament on Monday, states that home owners with landed property would have to dispose of their property within two years if they give up their Singapore permanent residency or citizenship status.
Failure to do so could see owners faced with a fine not exceeding $20,000 or a three-year jail term, or both.
PRs who are uncertain about where they want to be based permanently, however, might now choose to purchase a condo rather than a landed property as doing so would come without such obligations, the experts added.
On Monday, National Development Minister Mah Bow Tan released figures showing that locals make up the bulk of private home buyers in Singapore. PRs made up 13 per cent and foreigners 12 per cent of sales in the second quarter, respectively.
Mr Ong Teck Hui, Credo Real Estate head of research and consultancy, said that since the landed housing market was primarily driven by locals, the impact of the new rules would be insignificant.
'A PR who is interested in purchasing a landed home is unlikely to be deterred unless he has a sense of uncertainty over staying on in Singapore,' he added.
Cushman & Wakefield managing director Donald Han said the changes served to 'tie up the loose ends', bringing the existing Act - introduced in 1973 - in line with housing policies as it prevented foreigners from speculating in Singapore's property market.
OrangeTee's head of research and consultancy Tan Kok Keong said the rules might provide a push for PRs to buy high-end condos instead as PRs who could afford landed homes were affluent.
He said that foreigners made up only a small segment of the landed housing market as the Government had been quite strict with them owning such properties. Foreigners need permission from the Land Dealings (Approval) Unit (LDAU) before they can own landed property.
On mainland Singapore, the main criteria are that they are PRs and that they make an adequate economic contribution. However, non-PR foreigners may buy landed homes at Sentosa Cove, subject to LDAU approval.
Usually, foreigners may buy landed homes not exceeding 15,000 sq ft in land area. They may, at any one time, own just one landed home in Singapore and it must be for owner occupation only.
On the mainland, foreigners also have to hold the property for at least three years before selling. There is no minimum holding period for Sentosa Cove.
CBRE said PRs were responsible for 165 - or 5.5 per cent - of 3,007 landed home transactions from Jan 1 to Sept 9.
This figure ranged from a low of 4.4 per cent in 2000 to a high of 6.8 per cent in 2006 over the past 10 years.
Most of the PRs bought terrace houses this year, with the highest number of landed home transactions taking place in District 15 - which includes Katong, Telok Kurau and East Coast Road - followed by Districts 10 and 19.
esthert@sph.com.sg
ST : Work starts on medical complex with hotel
Oct 19, 2010
Work starts on medical complex with hotel
230-room hotel will cater to foreign patients
By Salma Khalik
A PRIVATELY run medical complex in Farrer Park will be up by early 2013 - about two years later than planned.
Connexion, as it has been named, will comprise the 189 clinics of Farrer Medical Centre, the 220-bed Farrer Park Hospital and the 230-room hotel called One Farrer for foreign patients here for day treatment, their families and other guests.
The $800 million complex will sit atop the Farrer Park MRT station.
It is the baby of a group of doctors who want to set up their own outfit to break Parkway Group's near-stranglehold on private health-care here.
They are also eyeing a slice of the regional medical pie: Singapore expects to treat a million foreign patients a year by the middle of this decade, adding about $3 billion to the economy and creating 13,000 more jobs.
That the 40 doctors, who now have practices in Parkway's hospitals, see an opportunity is clear. It is what spurred each of them to put up $1 million each - three to four months' earnings - into Connexion.
But along the way, infighting landed the group in the courts and delayed work on Connexion.
Parkway is the biggest player in the foreign-patient market. The group, majority-owned by Malaysian sovereign wealth fund Khazanah Nasional, owns Mt Elizabeth Hospital, Gleneagles Hospital and Parkway East, with a fourth, 350-bed facility coming up in Novena in 2012.
Other than Raffles Hospital which hires its own doctors, the 'private' scene here is made up mainly of independent doctors using the facilities of the Parkway hospitals, the Mission-run Mount Alvernia and Thomson Medical Centre.
Some years back, Parkway's ties with some of its independent specialists hit a low when its hospitals set about monitoring standards. Things got worse when Parkway set up its own specialist services such as its eye centre, which its independent tenants saw as competition.
An attempt by two doctors to provide cheaper day-surgery facilities in Paragon and Camden folded last year, after bleeding to the tune of $2 million in two years.
The Farrer Park project also looked doomed when internal bickering over the running of the project descended into legal action that took nine months of litigation to untangle.
With the dust from that settled, only 22 doctors are left from the group of 40. With their two Indonesian partners, they bought out the other side.
'The schism was between those who want to practise and the others. We were not interested to sell and were finding every means to keep the project,' said cardiologist Maurice Choo, 60, who led the triumphant faction that wants to focus on practising.
Work on Connexion has begun, with the above-ground work expected to start next month.
Dr Choo said they plan to 'disrupt the market' with lower prices by doing more day surgery so patients do not need to spend a single night in hospital; in-patients will, however, be able to pick from suites, and single and four-bedded rooms.
Professor Euston Quah, head of economics at the Nanyang Technological University, thinks the group may just succeed. 'This independent hospital is going to put pressure on prices.'
Dr Francis Seow-Choen, a surgeon in private practice who is not in the group developing Connexion, expects a glut in clinic space. Novena Medical Centre is standing half empty, but this may change when Parkway's fourth hospital opens nearby.
Dr Lam Pin Min, who chairs the Government Parliamentary Committee (GPC) for Health, is more optimistic. 'If the projection for the number of medical tourists and its potential growth in the next five to 10 years is anything to go by, this private hospital will meet the anticipated increase in demand.'
Added Prof Quah: 'With more private hospitals and increasing competition, prices will come down...' This would be good for locals too, he said.
salma@sph.com.sg
Work starts on medical complex with hotel
230-room hotel will cater to foreign patients
By Salma Khalik
A PRIVATELY run medical complex in Farrer Park will be up by early 2013 - about two years later than planned.
Connexion, as it has been named, will comprise the 189 clinics of Farrer Medical Centre, the 220-bed Farrer Park Hospital and the 230-room hotel called One Farrer for foreign patients here for day treatment, their families and other guests.
The $800 million complex will sit atop the Farrer Park MRT station.
It is the baby of a group of doctors who want to set up their own outfit to break Parkway Group's near-stranglehold on private health-care here.
They are also eyeing a slice of the regional medical pie: Singapore expects to treat a million foreign patients a year by the middle of this decade, adding about $3 billion to the economy and creating 13,000 more jobs.
That the 40 doctors, who now have practices in Parkway's hospitals, see an opportunity is clear. It is what spurred each of them to put up $1 million each - three to four months' earnings - into Connexion.
But along the way, infighting landed the group in the courts and delayed work on Connexion.
Parkway is the biggest player in the foreign-patient market. The group, majority-owned by Malaysian sovereign wealth fund Khazanah Nasional, owns Mt Elizabeth Hospital, Gleneagles Hospital and Parkway East, with a fourth, 350-bed facility coming up in Novena in 2012.
Other than Raffles Hospital which hires its own doctors, the 'private' scene here is made up mainly of independent doctors using the facilities of the Parkway hospitals, the Mission-run Mount Alvernia and Thomson Medical Centre.
Some years back, Parkway's ties with some of its independent specialists hit a low when its hospitals set about monitoring standards. Things got worse when Parkway set up its own specialist services such as its eye centre, which its independent tenants saw as competition.
An attempt by two doctors to provide cheaper day-surgery facilities in Paragon and Camden folded last year, after bleeding to the tune of $2 million in two years.
The Farrer Park project also looked doomed when internal bickering over the running of the project descended into legal action that took nine months of litigation to untangle.
With the dust from that settled, only 22 doctors are left from the group of 40. With their two Indonesian partners, they bought out the other side.
'The schism was between those who want to practise and the others. We were not interested to sell and were finding every means to keep the project,' said cardiologist Maurice Choo, 60, who led the triumphant faction that wants to focus on practising.
Work on Connexion has begun, with the above-ground work expected to start next month.
Dr Choo said they plan to 'disrupt the market' with lower prices by doing more day surgery so patients do not need to spend a single night in hospital; in-patients will, however, be able to pick from suites, and single and four-bedded rooms.
Professor Euston Quah, head of economics at the Nanyang Technological University, thinks the group may just succeed. 'This independent hospital is going to put pressure on prices.'
Dr Francis Seow-Choen, a surgeon in private practice who is not in the group developing Connexion, expects a glut in clinic space. Novena Medical Centre is standing half empty, but this may change when Parkway's fourth hospital opens nearby.
Dr Lam Pin Min, who chairs the Government Parliamentary Committee (GPC) for Health, is more optimistic. 'If the projection for the number of medical tourists and its potential growth in the next five to 10 years is anything to go by, this private hospital will meet the anticipated increase in demand.'
Added Prof Quah: 'With more private hospitals and increasing competition, prices will come down...' This would be good for locals too, he said.
salma@sph.com.sg
ST : Foreign landed home owners: new rules
Oct 19, 2010
Foreign landed home owners: new rules
PRs, citizens who give up status have to sell property within 2 years
By Jessica Cheam
HOME owners with that prized landed property address may have to dispose of their property within two years if they give up their Singapore permanent residency or citizenship status.
Failure to do so could see owners faced with a fine not exceeding $20,000 or a three-year jail term, or both.
There is no such requirement currently. This new rule is one of the proposed changes set out in the Residential Property (Amendment) Bill, introduced in Parliament yesterday. If passed, the new Bill will also stiffen penalties.
The Act, first introduced in 1973, imposes restrictions on foreign ownership of restricted properties, namely landed homes, strata-landed housing and vacant residential land.
Foreigners - who must be permanent residents in this case - must get approval from the Singapore Land Authority before buying such 'restricted' properties.
The penalties have not been revised since 1974. The new Bill will introduce harsher penalties for those who breach the rules.
Under the Act, foreign buyers can only purchase one landed home for owner-occupation and cannot rent it out.
He must also sell his existing property before buying a new one, and is not allowed to sell the property in the first few years of ownership. The exact period depends on whether the property is still under construction or completed.
Owners found to breach the above rules will be fined up to $200,000 - up from $5,000 previously, with a new fine introduced of $2,000 per day for any continuing offence.
Another change requires a foreigner who inherits a landed property to sell it off within five years instead of 10 years.
Rules for foreign private developers will also change. A developer is considered 'foreign' if it has any foreign shareholders or directors, so this includes major developers here such as public-listed developers CapitaLand, Keppel Land and City Developments.
Under existing rules, they have to complete their developments within a certain timeframe and sell all units within two years of receiving the Temporary Occupation Permit.
Under the Bill, developers may be charged a fee for any extension of time beyond the given period, similar to rules under the Urban Redevelopment Authority's Government Land Sales programme.
Managing director William Wong of RealStar Premier Property, a landed home specialist, did not think the proposed changes would have a big impact on the landed housing market, noting that 'most PRs who relinquish their status do try and sell their homes when they leave Singapore anyway'.
jcheam@sph.com.sg
Foreign landed home owners: new rules
PRs, citizens who give up status have to sell property within 2 years
By Jessica Cheam
HOME owners with that prized landed property address may have to dispose of their property within two years if they give up their Singapore permanent residency or citizenship status.
Failure to do so could see owners faced with a fine not exceeding $20,000 or a three-year jail term, or both.
There is no such requirement currently. This new rule is one of the proposed changes set out in the Residential Property (Amendment) Bill, introduced in Parliament yesterday. If passed, the new Bill will also stiffen penalties.
The Act, first introduced in 1973, imposes restrictions on foreign ownership of restricted properties, namely landed homes, strata-landed housing and vacant residential land.
Foreigners - who must be permanent residents in this case - must get approval from the Singapore Land Authority before buying such 'restricted' properties.
The penalties have not been revised since 1974. The new Bill will introduce harsher penalties for those who breach the rules.
Under the Act, foreign buyers can only purchase one landed home for owner-occupation and cannot rent it out.
He must also sell his existing property before buying a new one, and is not allowed to sell the property in the first few years of ownership. The exact period depends on whether the property is still under construction or completed.
Owners found to breach the above rules will be fined up to $200,000 - up from $5,000 previously, with a new fine introduced of $2,000 per day for any continuing offence.
Another change requires a foreigner who inherits a landed property to sell it off within five years instead of 10 years.
Rules for foreign private developers will also change. A developer is considered 'foreign' if it has any foreign shareholders or directors, so this includes major developers here such as public-listed developers CapitaLand, Keppel Land and City Developments.
Under existing rules, they have to complete their developments within a certain timeframe and sell all units within two years of receiving the Temporary Occupation Permit.
Under the Bill, developers may be charged a fee for any extension of time beyond the given period, similar to rules under the Urban Redevelopment Authority's Government Land Sales programme.
Managing director William Wong of RealStar Premier Property, a landed home specialist, did not think the proposed changes would have a big impact on the landed housing market, noting that 'most PRs who relinquish their status do try and sell their homes when they leave Singapore anyway'.
jcheam@sph.com.sg
ST : Cooling-off period for flat sellers
Oct 19, 2010
Cooling-off period for flat sellers
By Esther Teo & Cheryl Ong
PEOPLE intending to sell their Housing Board (HDB) flats from Nov 1 will have to observe a seven-day cooling-off period before the deal can proceed.
If the designated waiting time has not been met, the HDB will reject the resale application. The seven-day period starts from the time the resale checklist has been completed until the granting of the option to purchase.
The new rules announced yesterday underline the need for financial prudence before buying or selling a home, said the HDB. It noted that its flats are meant for long-term owner occupation and that buying or selling one is a significant decision that should be considered carefully.
The cooling-off move is part of a series of enhancements to the resale checklist and sale procedures to help buyers and sellers make informed decisions, the HDB said.
Checklists were introduced in 2008 to ensure that both parties in a transaction know the key resale and financial policies before they sign on the dotted line.
People who intend to sell their flats should consider their finances carefully and plan for their next accommodation, while buyers should also exercise financial prudence, the HDB said.
The new rules will require buyers and sellers to be a bit more hands-on with the checklist. New requirements include:
· Sellers will have to state their next housing arrangement. If they intend to buy another flat, they will have to work out the estimated sales proceeds of the existing home and submit a financial plan for their next purchase, said the HDB.
· Sellers must deposit a soft-copy of the checklist and supporting documents such as estimated sales proceeds and their financial plan at the HDB's website by the following day after they complete the resale checklist.
· They will then need to submit the original copy of the checklist together with the option-to-purchase (OTP) at the first resale appointment. This is scheduled with HDB for the resale transaction to be processed.
'If the date on the original copy differs from the soft-copy submitted through (the HDB website), or if the OTP is dated within seven days from the checklist, the resale application will be rejected,' the HDB said.
· Buyers of resale flats who are not using an agent will also have to submit the resale checklist together with the resale application form. Previously, only buyers with agents had to.
Some of the changes were advocated in Parliament by MPs, including Mr Ang Mong Seng (Hong Kah GRC), who suggested earlier in the year that a one-week cooling-off period be imposed.
Madam Halimah Yacob (Jurong GRC) said yesterday that people would now get a chance to reassess their situation, especially if they were subject to pressure to buy or sell their flat fast.
She cited a couple with four young children who sold their flat as they could not service the loan and wanted to downgrade. But they went into a business venture using the sales proceeds and lost everything. The couple could not get a bank loan and had to look for a rental flat.
'It's such a sad situation because it could have been avoided had they been given proper financial advice, or some time to think it through,' she said.
Madam Halimah added that the resale checklist was also very important as many people do not realise that a portion of the sales proceeds go back to their Central Provident Fund accounts.
HSR chief executive Patrick Liew said that he would occasionally hear of sellers who had not done their calculations well and had sold their property despite being unable to afford another.
HDB flat owner Stella Ong said that although she has no plans to sell her flat, the rules were welcome as they would give her more time to think through the complicated sale process.
'At least now I know that there's a temporary exit door to take if I ever feel uncomfortable with a transaction after thinking about it,' she said.
Cooling-off period for flat sellers
By Esther Teo & Cheryl Ong
PEOPLE intending to sell their Housing Board (HDB) flats from Nov 1 will have to observe a seven-day cooling-off period before the deal can proceed.
If the designated waiting time has not been met, the HDB will reject the resale application. The seven-day period starts from the time the resale checklist has been completed until the granting of the option to purchase.
The new rules announced yesterday underline the need for financial prudence before buying or selling a home, said the HDB. It noted that its flats are meant for long-term owner occupation and that buying or selling one is a significant decision that should be considered carefully.
The cooling-off move is part of a series of enhancements to the resale checklist and sale procedures to help buyers and sellers make informed decisions, the HDB said.
Checklists were introduced in 2008 to ensure that both parties in a transaction know the key resale and financial policies before they sign on the dotted line.
People who intend to sell their flats should consider their finances carefully and plan for their next accommodation, while buyers should also exercise financial prudence, the HDB said.
The new rules will require buyers and sellers to be a bit more hands-on with the checklist. New requirements include:
· Sellers will have to state their next housing arrangement. If they intend to buy another flat, they will have to work out the estimated sales proceeds of the existing home and submit a financial plan for their next purchase, said the HDB.
· Sellers must deposit a soft-copy of the checklist and supporting documents such as estimated sales proceeds and their financial plan at the HDB's website by the following day after they complete the resale checklist.
· They will then need to submit the original copy of the checklist together with the option-to-purchase (OTP) at the first resale appointment. This is scheduled with HDB for the resale transaction to be processed.
'If the date on the original copy differs from the soft-copy submitted through (the HDB website), or if the OTP is dated within seven days from the checklist, the resale application will be rejected,' the HDB said.
· Buyers of resale flats who are not using an agent will also have to submit the resale checklist together with the resale application form. Previously, only buyers with agents had to.
Some of the changes were advocated in Parliament by MPs, including Mr Ang Mong Seng (Hong Kah GRC), who suggested earlier in the year that a one-week cooling-off period be imposed.
Madam Halimah Yacob (Jurong GRC) said yesterday that people would now get a chance to reassess their situation, especially if they were subject to pressure to buy or sell their flat fast.
She cited a couple with four young children who sold their flat as they could not service the loan and wanted to downgrade. But they went into a business venture using the sales proceeds and lost everything. The couple could not get a bank loan and had to look for a rental flat.
'It's such a sad situation because it could have been avoided had they been given proper financial advice, or some time to think it through,' she said.
Madam Halimah added that the resale checklist was also very important as many people do not realise that a portion of the sales proceeds go back to their Central Provident Fund accounts.
HSR chief executive Patrick Liew said that he would occasionally hear of sellers who had not done their calculations well and had sold their property despite being unable to afford another.
HDB flat owner Stella Ong said that although she has no plans to sell her flat, the rules were welcome as they would give her more time to think through the complicated sale process.
'At least now I know that there's a temporary exit door to take if I ever feel uncomfortable with a transaction after thinking about it,' she said.
ST : HDB spot checks on property ownership
Oct 19, 2010
HDB spot checks on property ownership
SPOT CHECKS are in store for Housing Board (HDB) flat buyers, to see if they are breaking the rules on owning private property in Singapore or overseas.
Minister for National Development Mah Bow Tan said yesterday the public housing authority will conduct spot checks both locally and overseas, to determine if HDB flat buyers are lying about their interests in other properties.
He was responding to a question from Ms Lee Bee Wah (Ang Mo Kio GRC) who voiced what has been on the minds of Singaporeans: how HDB will trace whether an HDB owner has a foreign property.
The HDB had recently announced that those who buy an HDB resale flat on or after Aug 30 must dispose of their private property - including any held overseas - within six months of the HDB purchase.
Mr Mah explained that at the point of purchase, HDB flat buyers are required to declare any interest or ownership in private property, local or overseas.
Those guilty of false declarations can be liable, on conviction, to a fine of up to $5,000 or to imprisonment for a term up to six months, or both.
If it is discovered before the completion of the purchase, HDB can cancel the application.
If the discovery is made after the sale, HDB can compulsorily acquire the flat.
'For practical reasons, HDB adopts different approaches to check on private property ownership in different countries.
'I am unable to disclose the details to avoid hampering HDB's enforcement work,' said Mr Mah.
HDB spot checks on property ownership
SPOT CHECKS are in store for Housing Board (HDB) flat buyers, to see if they are breaking the rules on owning private property in Singapore or overseas.
Minister for National Development Mah Bow Tan said yesterday the public housing authority will conduct spot checks both locally and overseas, to determine if HDB flat buyers are lying about their interests in other properties.
He was responding to a question from Ms Lee Bee Wah (Ang Mo Kio GRC) who voiced what has been on the minds of Singaporeans: how HDB will trace whether an HDB owner has a foreign property.
The HDB had recently announced that those who buy an HDB resale flat on or after Aug 30 must dispose of their private property - including any held overseas - within six months of the HDB purchase.
Mr Mah explained that at the point of purchase, HDB flat buyers are required to declare any interest or ownership in private property, local or overseas.
Those guilty of false declarations can be liable, on conviction, to a fine of up to $5,000 or to imprisonment for a term up to six months, or both.
If it is discovered before the completion of the purchase, HDB can cancel the application.
If the discovery is made after the sale, HDB can compulsorily acquire the flat.
'For practical reasons, HDB adopts different approaches to check on private property ownership in different countries.
'I am unable to disclose the details to avoid hampering HDB's enforcement work,' said Mr Mah.
ST : S'poreans driving private property market, says Mah
Oct 19, 2010
S'poreans driving private property market, says Mah
By Jessica Cheam
LOCAL buyers still make up the bulk of private home buyers in Singapore. Permanent residents (PRs) made up 13 per cent and foreigners 12 per cent of sales in the second quarter respectively.
Similarly, speculative activity in the private property market is driven mostly by locals. PRs and foreigners accounted for about 27 per cent of all sub-sales in the past two years.
National Development Minister Mah Bow Tan revealed these figures yesterday in Parliament in response to MPs who asked if PRs and foreigners were 'flipping' properties in Singapore.
Flipping, or a sub-sale, takes place when a buyer purchases a new apartment, then resells it before construction is complete.
Mr Mah added that the second quarter sales figures were close to the average of 12 per cent and 10 per cent for PRs and foreigners respectively over the past two years. PRs and foreigners also account for a relatively low 6 per cent of all landed home sales.
As a cosmopolitan city, it was important for Singapore to let foreigners and PRs buy properties here, while monitoring 'how much of the market is actually made up of foreigners and PRs', he said.
MPs also voiced their concerns on the health of Singapore's property market, with Madam Cynthia Phua (Aljunied GRC) asking whether any more measures would be introduced.
Mr Mah responded that this 'ultimately depends on what happens in the (property market) situation'.
'We have taken an approach of having few calibrated steps rather than to take one big step or one big bang approach to try to cool the market down.'
Given many factors involved in shaping the property market, Mr Mah said it was 'presumptuous or even foolhardy' to predict what the market would be like in a year.
He added: 'Where we see that there is a danger of the market heating up further or not moving in a healthy direction, we reserve the right to take the appropriate action.'
On the market reaction to the recent measures, Mr Mah noted that 'there are signs of greater stability in the market'.
Based on flash estimates, the increase in private home prices has moderated to a 3.1 per cent increase in the third quarter, compared to 5.3 per cent in the second.
Volume of sales of private homes and HDB resale flats declined 28 per cent and 25 per cent respectively last month compared to August.
Responding to Ms Lee Bee Wah (Ang Mo Kio GRC), Mr Mah reiterated that the recent rules tightening ownership of HDB flats was to dampen demand from those who are not in urgent need of housing.
For example, those who own private property here or overseas, and want to buy an HDB flat, must dispose of their private property within six months. Responding to MPs' concerns, Mr Mah said that HDB will look into the circumstances of special cases.
HDB has received over 100 appeals from potential flat buyers who own overseas properties, and over 150 appeals from those who own local private properties.
jcheam@sph.com.sg
S'poreans driving private property market, says Mah
By Jessica Cheam
LOCAL buyers still make up the bulk of private home buyers in Singapore. Permanent residents (PRs) made up 13 per cent and foreigners 12 per cent of sales in the second quarter respectively.
Similarly, speculative activity in the private property market is driven mostly by locals. PRs and foreigners accounted for about 27 per cent of all sub-sales in the past two years.
National Development Minister Mah Bow Tan revealed these figures yesterday in Parliament in response to MPs who asked if PRs and foreigners were 'flipping' properties in Singapore.
Flipping, or a sub-sale, takes place when a buyer purchases a new apartment, then resells it before construction is complete.
Mr Mah added that the second quarter sales figures were close to the average of 12 per cent and 10 per cent for PRs and foreigners respectively over the past two years. PRs and foreigners also account for a relatively low 6 per cent of all landed home sales.
As a cosmopolitan city, it was important for Singapore to let foreigners and PRs buy properties here, while monitoring 'how much of the market is actually made up of foreigners and PRs', he said.
MPs also voiced their concerns on the health of Singapore's property market, with Madam Cynthia Phua (Aljunied GRC) asking whether any more measures would be introduced.
Mr Mah responded that this 'ultimately depends on what happens in the (property market) situation'.
'We have taken an approach of having few calibrated steps rather than to take one big step or one big bang approach to try to cool the market down.'
Given many factors involved in shaping the property market, Mr Mah said it was 'presumptuous or even foolhardy' to predict what the market would be like in a year.
He added: 'Where we see that there is a danger of the market heating up further or not moving in a healthy direction, we reserve the right to take the appropriate action.'
On the market reaction to the recent measures, Mr Mah noted that 'there are signs of greater stability in the market'.
Based on flash estimates, the increase in private home prices has moderated to a 3.1 per cent increase in the third quarter, compared to 5.3 per cent in the second.
Volume of sales of private homes and HDB resale flats declined 28 per cent and 25 per cent respectively last month compared to August.
Responding to Ms Lee Bee Wah (Ang Mo Kio GRC), Mr Mah reiterated that the recent rules tightening ownership of HDB flats was to dampen demand from those who are not in urgent need of housing.
For example, those who own private property here or overseas, and want to buy an HDB flat, must dispose of their private property within six months. Responding to MPs' concerns, Mr Mah said that HDB will look into the circumstances of special cases.
HDB has received over 100 appeals from potential flat buyers who own overseas properties, and over 150 appeals from those who own local private properties.
jcheam@sph.com.sg
ST : Canopy sells 100 units over the weekend
Oct 18, 2010
Canopy sells 100 units over the weekend
WITHIN an hour of opening its doors on Saturday, The Canopy in Yishun had sold all the 20 units allocated to upgraders.
Another 80 or so units were booked by first-time buyers over the weekend, said Mr Tan Zhi Yong, managing director of MCC Land, which is developing the project.
The executive condominium (EC) - only the second to be launched in the last five years - has 406 units in total. In the first month of sale, 95 per cent of the units are set aside for first-timers, which means upgraders and other buyers can only buy 5 per cent of these units.
But next month, the remaining unsold units will be opened up to all buyers.
Mr Tan expects better sales then, saying demand is especially strong from upgraders.
In total, the project drew about 450 applications for its units, Mr Tan told The Straits Times.
But he said some applicants dropped out of the race because their monthly income levels exceeded the $10,000 cap imposed on EC buyers.
ECs, the most premium form of public housing, are subject to similar restrictions on eligibility, ownership and resale as normal HDB flats. But after 10 years, these restrictions are lifted and the developments become like private condos.
Several hundred interested buyers thronged the showroom over the weekend, Mr Tan said.
But not all the visitors ended up booking a flat, because while ECs have risen in price and quality over the last 10 years, the income ceiling for eligible buyers has stayed the same.
This means many buyers who can afford the units in The Canopy have breached the income cap, he said.
'A lot of buyers asked us to appeal for them, some saying that they had just crossed the income ceiling this month only.'
FIONA CHAN
Canopy sells 100 units over the weekend
WITHIN an hour of opening its doors on Saturday, The Canopy in Yishun had sold all the 20 units allocated to upgraders.
Another 80 or so units were booked by first-time buyers over the weekend, said Mr Tan Zhi Yong, managing director of MCC Land, which is developing the project.
The executive condominium (EC) - only the second to be launched in the last five years - has 406 units in total. In the first month of sale, 95 per cent of the units are set aside for first-timers, which means upgraders and other buyers can only buy 5 per cent of these units.
But next month, the remaining unsold units will be opened up to all buyers.
Mr Tan expects better sales then, saying demand is especially strong from upgraders.
In total, the project drew about 450 applications for its units, Mr Tan told The Straits Times.
But he said some applicants dropped out of the race because their monthly income levels exceeded the $10,000 cap imposed on EC buyers.
ECs, the most premium form of public housing, are subject to similar restrictions on eligibility, ownership and resale as normal HDB flats. But after 10 years, these restrictions are lifted and the developments become like private condos.
Several hundred interested buyers thronged the showroom over the weekend, Mr Tan said.
But not all the visitors ended up booking a flat, because while ECs have risen in price and quality over the last 10 years, the income ceiling for eligible buyers has stayed the same.
This means many buyers who can afford the units in The Canopy have breached the income cap, he said.
'A lot of buyers asked us to appeal for them, some saying that they had just crossed the income ceiling this month only.'
FIONA CHAN
ST : Condo's by-laws have teeth
Oct 17, 2010
Condo mayhem
Residents who behave badly can make life miserable for others
By Sandra Leong
Beyond the idyllic depiction of classy condominium living, another facet may lurk: the resident or visitor from hell.
For instance, residents at a condominium in the East suspected that the same culprit was repeatedly urinating and defecating in the swimming pool, said the estate's managing agent Victor Charles.
The company he works for, Philip Motha Property Management, manages more than 40 private estates here.
To catch the mischief maker, Mr Charles, 50, installed a closed-circuit television camera system around the pool. No one was caught but the cameras seemed to have scared off the culprit.
There have also been cases of balconies used as dumping grounds.
Media director Jamie Sze, 42, found used tissue paper, onion skins, cigarette butts and even used sanitary pads thrown onto her second-storey balcony at Goodluck Garden in Toh Tuck Road.
Said the mother of three, who has since moved to Maplewood along Bukit Timah Road: 'There was no way we could stop them. It's not as if I could park myself at the balcony all day...We didn't have concrete evidence but we had our suspicions. The sanitary pad was the ultimate.'
Unlike the happier outcome in the earlier example, the litterbug was never caught. Her complaint to the condo management merely led to a general letter reminding residents not to litter.
Earlier this month, former Singapore Idol Hady Mirza, a tenant at Mimosa Park in Yio Chu Kang, was banned from using the condo's recreational facilities for six months after a poolside party his family hosted left behind a mess.
Paper plates and uneaten food were found in the swimming pool, the management council said. Toilets were choked and damaged.
Hady has since apologised. The party, he said, was a children's bash gone awry.
People want to live in private estates for the pluses, including facilities such as swimming pools and gyms, and the 'exclusivity'.
But residents, management councils and managing agents told The Sunday Times that there will always be people who behave badly in their estates.
Boorish behaviour may range from littering to bizarre acts, like soiling the pool, skinny dipping or using communal shower facilities to save on the water bill.
On the other hand, management corporations or councils have the power to act. The office-bearers are fellow residents voted in by the others.
Managing agents are professionals hired to run the estates.
These bodies have a mandate to upkeep the condo by tapping into maintenance contribution funds - which range from about $280 to $500 a month - paid by owner- residents.
One of their responsibilities is to uphold the condo's by-laws, essentially a set of rules to foster harmonious living.
Depending on what the by-laws allow, warnings, fines and bans can be meted out. But the enforcement of these rules can be a challenge.
'Sometimes a resident may say to the manager, 'I'm paying your salary'. But we have to be clear that certain behaviour is unacceptable,' said Mr Lionel de Souza, 67, a former council chairman of Stratford Court in Bedok.
Mr Francis Zhan, 65, chief executive officer of the Association of Management Corporations in Singapore, said problems such as residents not cleaning up after booking facilities like barbecue pits and function rooms are 'widespread'.
But these occurrences are seldom severe, said Mr Eric Tay, 48, director of Total Estate Management Services, which manages 25 condominium properties.
He estimated that there are fewer than 10 such disputes in each estate every year, most of which are resolved without the need for external mediation.
It can cost at least $200 to clean up after irresponsible residents, he said.
In one serious case he saw at a condo in the East, a rowdy party of 20-somethings repeatedly ignored requests by security guards to clear up after a barbecue. The management then retained the hosts' $100 deposit to pay for the cleaning services, and barred them from using the facilities for the next three months.
Though they did not cause any permanent damage, they had left food and furniture strewn around the common areas. The condo's cleaners had to do 'extra work' to clear up the mess, said Mr Tay.
A check with the Strata Titles Board, which arbitrates disputes between owners or between owners and management, found that over the past two years, there were no cases brought before it over misuse of facilities.
Still, the horror stories do go round, even within swankier developments.
At the Caribbean at Keppel Bay, resident Eugene Wee, 38, went to the carpark one morning about two years ago to find the windscreen of his Toyota MR2 convertible smashed by a pole.
The vandal was a drunk tenant who had also destroyed two other cars in the early hours of the morning. Luckily for Mr Wee, a general manager in the marine industry, the culprit forked out $10,000 for the damage to his car.
The main perpetrators of bad conduct are tenants, not owner-residents, say estate managers.
Mr Zhan, who was the council chairman of Regent Garden in West Coast Road until it was sold to developers in 2007, said: 'Owners are less likely to misbehave as they do not want to affect the value of the property. Tenants don't have a stake; why should they take care of it?'
To address this problem at Regent Garden, the council there introduced maintenance fund rebates to owner-occupiers so they would not have to feel as if they were subsidising excess maintenance costs created by the tenants, he added.
Fairly or unfairly, some residents say the lifestyles of some foreigners may be a factor.
Mr Jimmy Ling, 57, the estate manager of Woodsvale condominium in Woodlands, has encountered foreign residents who invite up to 100 guests for weekend parties that mess up the barbecue pits.
He said he also dealt with a non-local family who lived on a high floor. They threw water out of their window every day as part of a religious cleansing ritual.
But locals are not blameless either.
'Attitude is the biggest problem we face,' said Mr Ling, who added that some condo residents feel no need to take personal responsibility for their surroundings because 'they don't actually see what they are paying'. Money for repairs is usually taken from maintenance funds.
Sociologist Paulin Tay Straughan from the National University of Singapore said bad behaviour can occur in any type of communal living.
'It is not limited to those living in HDB estates. It is just that in condominiums, because there is a condo manager and security personnel, there is an on-site outlet for grievances to be heard.
'Expectations will tend to be elevated and tolerance is lowered as well.'
sandral@sph.com.sg
Additional reporting by Cheryl Ong
--------------------------------------------------------------------------------
Condo's by-laws have teeth
It is rare for the police to step in when a boorish resident upsets his fellow condo residents or the estate's managers.
Typically, the condominium's by-laws have the teeth to deal with the perpetrator.
Most such offences - like dirtying or damaging common property or leaving cars in non- designated areas - are spelt out in the by-laws, so the condo managers can deal with them.
Owners of condo units are subsidiary proprietors and they all have a share in the common facilities.
'As subsidiary proprietors, they voted to pass these by-laws,' said property lawyer Norman Ho. So anyone who breaches any by-law faces the stipulated penalty, he said.
Penalties may be warnings, bans and fines.
Even if a resident disputes, say, damage done to a shared facility, what may happen next is a civil suit, not a criminal case, Mr Ho said.
But Dr Lim Lan Yuan, a real estate lecturer at the National University of Singapore and chairman of the Association of Facility and Property Managers, felt that mediation through bodies like the Strata Titles Board and the Singapore Institute of Surveyors and Valuers is a better option.
'Even the courts will probably ask you to resolve the problem amicably,' he said. 'The aim as a community should be to establish good rapport with one another.'
The police, however, can and should be called in for cases of vandalism or when residents or their visitors become a public nuisance.
Never take the law into your hands, Mr Ho advised. 'If a fight starts and the resident accuses the management council or managing agent of using force, they will be in a difficult position.'
Sandra Leong
Additional reporting by Cheryl Ong
Condo mayhem
Residents who behave badly can make life miserable for others
By Sandra Leong
Beyond the idyllic depiction of classy condominium living, another facet may lurk: the resident or visitor from hell.
For instance, residents at a condominium in the East suspected that the same culprit was repeatedly urinating and defecating in the swimming pool, said the estate's managing agent Victor Charles.
The company he works for, Philip Motha Property Management, manages more than 40 private estates here.
To catch the mischief maker, Mr Charles, 50, installed a closed-circuit television camera system around the pool. No one was caught but the cameras seemed to have scared off the culprit.
There have also been cases of balconies used as dumping grounds.
Media director Jamie Sze, 42, found used tissue paper, onion skins, cigarette butts and even used sanitary pads thrown onto her second-storey balcony at Goodluck Garden in Toh Tuck Road.
Said the mother of three, who has since moved to Maplewood along Bukit Timah Road: 'There was no way we could stop them. It's not as if I could park myself at the balcony all day...We didn't have concrete evidence but we had our suspicions. The sanitary pad was the ultimate.'
Unlike the happier outcome in the earlier example, the litterbug was never caught. Her complaint to the condo management merely led to a general letter reminding residents not to litter.
Earlier this month, former Singapore Idol Hady Mirza, a tenant at Mimosa Park in Yio Chu Kang, was banned from using the condo's recreational facilities for six months after a poolside party his family hosted left behind a mess.
Paper plates and uneaten food were found in the swimming pool, the management council said. Toilets were choked and damaged.
Hady has since apologised. The party, he said, was a children's bash gone awry.
People want to live in private estates for the pluses, including facilities such as swimming pools and gyms, and the 'exclusivity'.
But residents, management councils and managing agents told The Sunday Times that there will always be people who behave badly in their estates.
Boorish behaviour may range from littering to bizarre acts, like soiling the pool, skinny dipping or using communal shower facilities to save on the water bill.
On the other hand, management corporations or councils have the power to act. The office-bearers are fellow residents voted in by the others.
Managing agents are professionals hired to run the estates.
These bodies have a mandate to upkeep the condo by tapping into maintenance contribution funds - which range from about $280 to $500 a month - paid by owner- residents.
One of their responsibilities is to uphold the condo's by-laws, essentially a set of rules to foster harmonious living.
Depending on what the by-laws allow, warnings, fines and bans can be meted out. But the enforcement of these rules can be a challenge.
'Sometimes a resident may say to the manager, 'I'm paying your salary'. But we have to be clear that certain behaviour is unacceptable,' said Mr Lionel de Souza, 67, a former council chairman of Stratford Court in Bedok.
Mr Francis Zhan, 65, chief executive officer of the Association of Management Corporations in Singapore, said problems such as residents not cleaning up after booking facilities like barbecue pits and function rooms are 'widespread'.
But these occurrences are seldom severe, said Mr Eric Tay, 48, director of Total Estate Management Services, which manages 25 condominium properties.
He estimated that there are fewer than 10 such disputes in each estate every year, most of which are resolved without the need for external mediation.
It can cost at least $200 to clean up after irresponsible residents, he said.
In one serious case he saw at a condo in the East, a rowdy party of 20-somethings repeatedly ignored requests by security guards to clear up after a barbecue. The management then retained the hosts' $100 deposit to pay for the cleaning services, and barred them from using the facilities for the next three months.
Though they did not cause any permanent damage, they had left food and furniture strewn around the common areas. The condo's cleaners had to do 'extra work' to clear up the mess, said Mr Tay.
A check with the Strata Titles Board, which arbitrates disputes between owners or between owners and management, found that over the past two years, there were no cases brought before it over misuse of facilities.
Still, the horror stories do go round, even within swankier developments.
At the Caribbean at Keppel Bay, resident Eugene Wee, 38, went to the carpark one morning about two years ago to find the windscreen of his Toyota MR2 convertible smashed by a pole.
The vandal was a drunk tenant who had also destroyed two other cars in the early hours of the morning. Luckily for Mr Wee, a general manager in the marine industry, the culprit forked out $10,000 for the damage to his car.
The main perpetrators of bad conduct are tenants, not owner-residents, say estate managers.
Mr Zhan, who was the council chairman of Regent Garden in West Coast Road until it was sold to developers in 2007, said: 'Owners are less likely to misbehave as they do not want to affect the value of the property. Tenants don't have a stake; why should they take care of it?'
To address this problem at Regent Garden, the council there introduced maintenance fund rebates to owner-occupiers so they would not have to feel as if they were subsidising excess maintenance costs created by the tenants, he added.
Fairly or unfairly, some residents say the lifestyles of some foreigners may be a factor.
Mr Jimmy Ling, 57, the estate manager of Woodsvale condominium in Woodlands, has encountered foreign residents who invite up to 100 guests for weekend parties that mess up the barbecue pits.
He said he also dealt with a non-local family who lived on a high floor. They threw water out of their window every day as part of a religious cleansing ritual.
But locals are not blameless either.
'Attitude is the biggest problem we face,' said Mr Ling, who added that some condo residents feel no need to take personal responsibility for their surroundings because 'they don't actually see what they are paying'. Money for repairs is usually taken from maintenance funds.
Sociologist Paulin Tay Straughan from the National University of Singapore said bad behaviour can occur in any type of communal living.
'It is not limited to those living in HDB estates. It is just that in condominiums, because there is a condo manager and security personnel, there is an on-site outlet for grievances to be heard.
'Expectations will tend to be elevated and tolerance is lowered as well.'
sandral@sph.com.sg
Additional reporting by Cheryl Ong
--------------------------------------------------------------------------------
Condo's by-laws have teeth
It is rare for the police to step in when a boorish resident upsets his fellow condo residents or the estate's managers.
Typically, the condominium's by-laws have the teeth to deal with the perpetrator.
Most such offences - like dirtying or damaging common property or leaving cars in non- designated areas - are spelt out in the by-laws, so the condo managers can deal with them.
Owners of condo units are subsidiary proprietors and they all have a share in the common facilities.
'As subsidiary proprietors, they voted to pass these by-laws,' said property lawyer Norman Ho. So anyone who breaches any by-law faces the stipulated penalty, he said.
Penalties may be warnings, bans and fines.
Even if a resident disputes, say, damage done to a shared facility, what may happen next is a civil suit, not a criminal case, Mr Ho said.
But Dr Lim Lan Yuan, a real estate lecturer at the National University of Singapore and chairman of the Association of Facility and Property Managers, felt that mediation through bodies like the Strata Titles Board and the Singapore Institute of Surveyors and Valuers is a better option.
'Even the courts will probably ask you to resolve the problem amicably,' he said. 'The aim as a community should be to establish good rapport with one another.'
The police, however, can and should be called in for cases of vandalism or when residents or their visitors become a public nuisance.
Never take the law into your hands, Mr Ho advised. 'If a fight starts and the resident accuses the management council or managing agent of using force, they will be in a difficult position.'
Sandra Leong
Additional reporting by Cheryl Ong
ST : ECs may bebetter investments than private housing
Oct 17, 2010
property
ECs may bebetter investments than private housing
Prices of some ECs have gone up more than mass market private condos in same area since launch
By Esther Teo
Are executive condominiums better investments than private housing? They may well be, if price gains are anything to go by.
Some executive condominiums (ECs) - the poshest type of public housing - have gone up more in price over the years than private mass market condominiums in the same areas, a check by The Sunday Times has found.
ECs such as Bishan Loft, Woodsvale in Woodlands and The Eden in Tampines have beaten the big boys by chalking up higher price gains compared to nearby mass market condos launched during the same periods.
Pinevale, for example, an EC in Tampines launched in 1997 at $450 per sq ft (psf), has seen an average selling price of $569 psf for its 13 transactions this year - an increase of 26 per cent.
Nearby, however, Hong Leong's 537-unit The Tropica - also launched in 1997 - has sold at an average of $663 psf this year, an 11 per cent increase from its launch price of $600 psf.
ECs were first introduced for homeowners with rising housing aspirations and whose household income is above $8,000 but below $10,000.
They are more popular when the gap between public and private housing widens and lose popularity when mass market condos become more affordable.
The last EC launch was La Casa in Woodlands in 2005 before Esparina Residences near Buangkok MRT station was launched this month.
ECs, like other Housing Board (HDB) flats, are subject to a minimum occupation period (MOP) of five years. After that, they can be sold only to Singaporeans and permanent residents. They become private property after 10 years, and can then be sold to foreigners.
They are usually priced up to 25 per cent lower to compensate for these sales restrictions and thus start off from a lower base, experts say.
They note, however, that since EC owners need to meet a MOP of five years, they might not be able to profit even if residential capital values are on the uptrend.
Mr Png Poh Soon, Knight Frank senior manager of consultancy and research, said that an analysis of the ECs that have met their MOP has shown a 66.9 per cent price appreciation from 2004 to this year.
This is higher than the 51.8 per cent price increase in mass market residential homes based off the change in the Urban Redevelopment Authority price index of non-landed properties outside the central region, he said.
'Interestingly, the price gap of ECs narrowed significantly with nearby properties after the fifth-year mark,' he added, with location playing a significant part in the rate of price appreciation.
However, some experts say that buying an EC requires some good luck and timing if an owner is looking for an investment as well.
Mr Colin Tan, head of research and consultancy at Chesterton Suntec International, said that ECs which serve the so-called sandwich class thrive only during periods of high property prices.
'The quality of ECs is still generally inferior to that of private property. When private property prices decline, the difference in quality will show and ECs will become less popular...So if you need to invest in ECs, you need to time your entry and exit,' he added.
DMG and Partners analyst Brandon Lee added that historically, EC prices have shot up only when mass market prices increased since demand for mass market condos would filter into ECs that have fulfilled their MOPs.
Buyers however are still biting, with recent launches of ECs - the first in five years - such as Esparina Residences, and The Canopy in Yishun Avenue 11, receiving keen interest.
But Knight Frank's Mr Png added that as the Government launches more EC sites, not all will be equally attractive.
Interested buyers should assess the location of the development, as well as how much lower the price of the EC units will be compared with surrounding private properties, before making a purchase.
esthert@sph.com.sg
--------------------------------------------------------------------------------
Timing crucial for investors
'The quality of ECs is still generally inferior to that of private property...So if you need to invest in ECs, you need to time your entry and exit.'
MR COLIN TAN, head of research and consultancy at Chesterton Suntec International. The Bishan Loft EC has chalked up higher price gains than nearby mass market condos.
property
ECs may bebetter investments than private housing
Prices of some ECs have gone up more than mass market private condos in same area since launch
By Esther Teo
Are executive condominiums better investments than private housing? They may well be, if price gains are anything to go by.
Some executive condominiums (ECs) - the poshest type of public housing - have gone up more in price over the years than private mass market condominiums in the same areas, a check by The Sunday Times has found.
ECs such as Bishan Loft, Woodsvale in Woodlands and The Eden in Tampines have beaten the big boys by chalking up higher price gains compared to nearby mass market condos launched during the same periods.
Pinevale, for example, an EC in Tampines launched in 1997 at $450 per sq ft (psf), has seen an average selling price of $569 psf for its 13 transactions this year - an increase of 26 per cent.
Nearby, however, Hong Leong's 537-unit The Tropica - also launched in 1997 - has sold at an average of $663 psf this year, an 11 per cent increase from its launch price of $600 psf.
ECs were first introduced for homeowners with rising housing aspirations and whose household income is above $8,000 but below $10,000.
They are more popular when the gap between public and private housing widens and lose popularity when mass market condos become more affordable.
The last EC launch was La Casa in Woodlands in 2005 before Esparina Residences near Buangkok MRT station was launched this month.
ECs, like other Housing Board (HDB) flats, are subject to a minimum occupation period (MOP) of five years. After that, they can be sold only to Singaporeans and permanent residents. They become private property after 10 years, and can then be sold to foreigners.
They are usually priced up to 25 per cent lower to compensate for these sales restrictions and thus start off from a lower base, experts say.
They note, however, that since EC owners need to meet a MOP of five years, they might not be able to profit even if residential capital values are on the uptrend.
Mr Png Poh Soon, Knight Frank senior manager of consultancy and research, said that an analysis of the ECs that have met their MOP has shown a 66.9 per cent price appreciation from 2004 to this year.
This is higher than the 51.8 per cent price increase in mass market residential homes based off the change in the Urban Redevelopment Authority price index of non-landed properties outside the central region, he said.
'Interestingly, the price gap of ECs narrowed significantly with nearby properties after the fifth-year mark,' he added, with location playing a significant part in the rate of price appreciation.
However, some experts say that buying an EC requires some good luck and timing if an owner is looking for an investment as well.
Mr Colin Tan, head of research and consultancy at Chesterton Suntec International, said that ECs which serve the so-called sandwich class thrive only during periods of high property prices.
'The quality of ECs is still generally inferior to that of private property. When private property prices decline, the difference in quality will show and ECs will become less popular...So if you need to invest in ECs, you need to time your entry and exit,' he added.
DMG and Partners analyst Brandon Lee added that historically, EC prices have shot up only when mass market prices increased since demand for mass market condos would filter into ECs that have fulfilled their MOPs.
Buyers however are still biting, with recent launches of ECs - the first in five years - such as Esparina Residences, and The Canopy in Yishun Avenue 11, receiving keen interest.
But Knight Frank's Mr Png added that as the Government launches more EC sites, not all will be equally attractive.
Interested buyers should assess the location of the development, as well as how much lower the price of the EC units will be compared with surrounding private properties, before making a purchase.
esthert@sph.com.sg
--------------------------------------------------------------------------------
Timing crucial for investors
'The quality of ECs is still generally inferior to that of private property...So if you need to invest in ECs, you need to time your entry and exit.'
MR COLIN TAN, head of research and consultancy at Chesterton Suntec International. The Bishan Loft EC has chalked up higher price gains than nearby mass market condos.
ST : Remaking KL
Oct 16, 2010
Remaking KL
Plans to turn Malaysian capital into a top city spark cheer as well as worry
By Leslie Lopez
KUALA LUMPUR: Malaysia is making sweeping plans to turn Kuala Lumpur into a world-class financial hub by 2020 via a slew of multibillion-dollar land privatisation deals, stirring both excitement and concern.
The remaking of Kuala Lumpur - a central plank of Prime Minister Najib Razak's ambitious 10-year Economic Transformation Programme (ETP) - will involve the redevelopment of large swathes of real estate, including a military airbase on the fringe of the capital and the construction of an underground mass rail transit (MRT) network.
A major part of the plans is relocating the 196ha Sungei Besi airbase, located in the capital's southern district, to pave the way for a RM26 billion (S$11 billion) Kuala Lumpur International Financial District led by sovereign wealth fund 1Malaysia Development Berhad (1MDB), which has signed a memorandum of understanding with Abu Dhabi's Mubadala Group to develop the project.
Also on the cards is the redevelopment of Kampung Baru, a Malay enclave near the landmark Petronas Towers. It has been a symbol of ethnic Malay pride but also a nagging boil to pro-development politicians, like former premier Mahathir Mohamad, who have long wanted the wood and concrete kampung houses to make way for more upscale development.
To alleviate public transport woes, a RM40 billion MRT project has been announced. Set to emerge as the single-largest infrastructure undertaking in Malaysia, the rail network will comprise three networks running over a stretch of 141km.
A 100-storey building is also being planned, set to be completed in 2015.
The sprawling city and proposed economic hub will include 10 municipalities and encompass an area of 279,327ha - which is four times that of Singapore.
The plans will transform the city into one of the top 20 in city economic growth and put it among the global top 20 most liveable cities by 2020, said Federal Territories and Urban Well-being Minister Raja Nong Chik Raja Zainal Abidin.
They are also the latest in a series of initiatives over the last 15 years which have changed Kuala Lumpur's skyline dramatically. Landmark projects such as the Petronas Towers, once ranked as the world's tallest structures, have been completed, and lifestyle hubs such as those in suburbs like Mont Kiara and Bandar Utama have sprouted.
Despite this, Kuala Lumpur faces fierce competition from regional cities in its push to attract talent and multinational corporations.
It lags behind many other Asian cities because of bureaucratic corruption, red tape in securing work permits and concerns over crime. Also, transportation infrastructure has not kept pace with rapid development.
To kick-start the ambitious new initiatives, the government has tapped several state-owned corporations, including 1MDB and the state pension agency, the Employees Provident Fund, to take the lead in joint ventures with foreign groups.
The plans have triggered a stampede among politically well-connected business groups eager for a piece of the action. They include businessman Syed Mokhtar Al-Bukhary, who wants to secure rights to develop 1,200ha of land in a north-west suburb of Kuala Lumpur, and low-key businessman Desmond Lim, a close confidant of Datuk Seri Najib, who is eyeing a stake in the Sungei Besi airbase redevelopment.
But while a significant amount of interest has been generated, there has also been unease.
For a start, bankers and private economists wonder how this mammoth undertaking will be financed.
Government economic planners are hoping that the private sector, including foreign investors, will fund up to 90 per cent of Kuala Lumpur's makeover and the entire national ETP, which is estimated to cost US$443 billion (S$574 billion).
Property consultants, stunned by the gargantuan dimensions of the redevelopment, also worry that Malaysia's already sluggish property sector could face an overhang of new office and residential properties that would take decades for the market to absorb.
The ETP is also drawing heat from opposition and government politicians who are demanding greater transparency in the privatisation of the land deals.
They want the government to adopt public auctions as practised in Hong Kong and Singapore, where land is sold under a public bidding exercise and funds derived from the sale are directed towards infrastructure development.
'Land is a very sensitive topic among Malays and the opposition parties are now claiming that the government is selling strategic land to foreigners and non-Malay cronies,' said a senior Umno official, referring to the military airbase. 'We need to be ready to counter these claims.'
ljlopez@sph.com.sg
--------------------------------------------------------------------------------
Big plans in store
· Sungei Besi airbase will be relocated for the RM26 billion (S$11 billion) Kuala Lumpur International Financial District.
· Sungei Buloh, with about 1,200ha of land in KL's north-west, will be redeveloped as one of the green belts. Estimated cost: RM10 billion.
· A 100-storey building will be finished in 2015. Estimated cost: RM5 billion.
· A three-network MRT will include two rail lines running through the main economic clusters. A circular rail network linking the inner city is also planned. Estimated cost: RM40 billion.
Remaking KL
Plans to turn Malaysian capital into a top city spark cheer as well as worry
By Leslie Lopez
KUALA LUMPUR: Malaysia is making sweeping plans to turn Kuala Lumpur into a world-class financial hub by 2020 via a slew of multibillion-dollar land privatisation deals, stirring both excitement and concern.
The remaking of Kuala Lumpur - a central plank of Prime Minister Najib Razak's ambitious 10-year Economic Transformation Programme (ETP) - will involve the redevelopment of large swathes of real estate, including a military airbase on the fringe of the capital and the construction of an underground mass rail transit (MRT) network.
A major part of the plans is relocating the 196ha Sungei Besi airbase, located in the capital's southern district, to pave the way for a RM26 billion (S$11 billion) Kuala Lumpur International Financial District led by sovereign wealth fund 1Malaysia Development Berhad (1MDB), which has signed a memorandum of understanding with Abu Dhabi's Mubadala Group to develop the project.
Also on the cards is the redevelopment of Kampung Baru, a Malay enclave near the landmark Petronas Towers. It has been a symbol of ethnic Malay pride but also a nagging boil to pro-development politicians, like former premier Mahathir Mohamad, who have long wanted the wood and concrete kampung houses to make way for more upscale development.
To alleviate public transport woes, a RM40 billion MRT project has been announced. Set to emerge as the single-largest infrastructure undertaking in Malaysia, the rail network will comprise three networks running over a stretch of 141km.
A 100-storey building is also being planned, set to be completed in 2015.
The sprawling city and proposed economic hub will include 10 municipalities and encompass an area of 279,327ha - which is four times that of Singapore.
The plans will transform the city into one of the top 20 in city economic growth and put it among the global top 20 most liveable cities by 2020, said Federal Territories and Urban Well-being Minister Raja Nong Chik Raja Zainal Abidin.
They are also the latest in a series of initiatives over the last 15 years which have changed Kuala Lumpur's skyline dramatically. Landmark projects such as the Petronas Towers, once ranked as the world's tallest structures, have been completed, and lifestyle hubs such as those in suburbs like Mont Kiara and Bandar Utama have sprouted.
Despite this, Kuala Lumpur faces fierce competition from regional cities in its push to attract talent and multinational corporations.
It lags behind many other Asian cities because of bureaucratic corruption, red tape in securing work permits and concerns over crime. Also, transportation infrastructure has not kept pace with rapid development.
To kick-start the ambitious new initiatives, the government has tapped several state-owned corporations, including 1MDB and the state pension agency, the Employees Provident Fund, to take the lead in joint ventures with foreign groups.
The plans have triggered a stampede among politically well-connected business groups eager for a piece of the action. They include businessman Syed Mokhtar Al-Bukhary, who wants to secure rights to develop 1,200ha of land in a north-west suburb of Kuala Lumpur, and low-key businessman Desmond Lim, a close confidant of Datuk Seri Najib, who is eyeing a stake in the Sungei Besi airbase redevelopment.
But while a significant amount of interest has been generated, there has also been unease.
For a start, bankers and private economists wonder how this mammoth undertaking will be financed.
Government economic planners are hoping that the private sector, including foreign investors, will fund up to 90 per cent of Kuala Lumpur's makeover and the entire national ETP, which is estimated to cost US$443 billion (S$574 billion).
Property consultants, stunned by the gargantuan dimensions of the redevelopment, also worry that Malaysia's already sluggish property sector could face an overhang of new office and residential properties that would take decades for the market to absorb.
The ETP is also drawing heat from opposition and government politicians who are demanding greater transparency in the privatisation of the land deals.
They want the government to adopt public auctions as practised in Hong Kong and Singapore, where land is sold under a public bidding exercise and funds derived from the sale are directed towards infrastructure development.
'Land is a very sensitive topic among Malays and the opposition parties are now claiming that the government is selling strategic land to foreigners and non-Malay cronies,' said a senior Umno official, referring to the military airbase. 'We need to be ready to counter these claims.'
ljlopez@sph.com.sg
--------------------------------------------------------------------------------
Big plans in store
· Sungei Besi airbase will be relocated for the RM26 billion (S$11 billion) Kuala Lumpur International Financial District.
· Sungei Buloh, with about 1,200ha of land in KL's north-west, will be redeveloped as one of the green belts. Estimated cost: RM10 billion.
· A 100-storey building will be finished in 2015. Estimated cost: RM5 billion.
· A three-network MRT will include two rail lines running through the main economic clusters. A circular rail network linking the inner city is also planned. Estimated cost: RM40 billion.
ST : 'Govt watches out for bubbles'
Oct 16, 2010
'Govt watches out for bubbles'
Direct, targeted actions are effective: SM Goh
By Zakir Hussain
THE Government is always looking out for potential bubbles, especially in property, said Senior Minister Goh Chok Tong.
'We periodically act pre-emptively to let some air out of property bubbles before they burst with a bang,' he told alumni at his alma mater Williams College in Massachusetts on Thursday.
And what has proven effective in cooling the property markets are direct and targeted measures, he added.
These include reducing the maximum loan for buying a second residential property and imposing stamp duty on owners who sell their properties within three years of buying them.
But, he added: 'Broad monetary policy actions may not be best suited since they can be blunt, and if applied too aggressively, can have unintended negative effects on the entire economy.'
Mr Goh made these points in a speech at a panel discussion, during which Williams College graduates from several countries discussed the lessons the United States can draw from developing countries in the recent global financial crisis.
His remarks come two months after the Government announced sweeping measures to take some heat out of the booming property market, the third cooling measure in a one-year period.
Mr Goh, however, stressed that he would hesitate to draw lessons from the way Singapore and China handled the financial crisis for the US.
The nature of the problems the US and various countries faced was vastly different, and 'the firestorm was in the US while the Asian economies felt only the heat'.
But, he said, he wanted to make the point that growth in the property sector and stock markets must be based on underlying economic fundamentals. 'Regulators must be vigilant of short-term speculative bubbles leveraged off cheap liquid funds,' he said.
Asia learnt its lesson from the property and stock market bubble during the Asian financial crisis in 1997, he added.
Mr Goh, who got a master's degree in development economics from Williams in 1967, is on a private visit to the US where he attended the 50th anniversary celebrations of the university's Centre for Development Economics.
In his speech, he outlined briefly how China and Singapore had managed the impact of the latest financial crisis.
Singapore's approach of cutting costs to save jobs rather than cutting jobs to save costs in the measures it adopted - Jobs Credit and skills upgrading - worked, he added.
It helped companies ramp up production to meet the surge in demand when the global economy recovered, enabling the economy to rebound.
But he indicated a similar approach may not be possible in the US because of the size of its economy and its free market philosophy.
Mr Goh also cautioned against innovative activity carried to extremes, such as creative credit instruments, which can have far-reaching risks.
He also argued that globalisation is beneficial to all countries and that governments cannot turn their backs on it, political pressure notwithstanding.
Mr Goh believes Asia will remain open and growing in the next decade and hold much economic opportunity for the US.
It was therefore better for Asian economies to stay coupled with the US, he said.
zakirh@sph.com.sg
'Govt watches out for bubbles'
Direct, targeted actions are effective: SM Goh
By Zakir Hussain
THE Government is always looking out for potential bubbles, especially in property, said Senior Minister Goh Chok Tong.
'We periodically act pre-emptively to let some air out of property bubbles before they burst with a bang,' he told alumni at his alma mater Williams College in Massachusetts on Thursday.
And what has proven effective in cooling the property markets are direct and targeted measures, he added.
These include reducing the maximum loan for buying a second residential property and imposing stamp duty on owners who sell their properties within three years of buying them.
But, he added: 'Broad monetary policy actions may not be best suited since they can be blunt, and if applied too aggressively, can have unintended negative effects on the entire economy.'
Mr Goh made these points in a speech at a panel discussion, during which Williams College graduates from several countries discussed the lessons the United States can draw from developing countries in the recent global financial crisis.
His remarks come two months after the Government announced sweeping measures to take some heat out of the booming property market, the third cooling measure in a one-year period.
Mr Goh, however, stressed that he would hesitate to draw lessons from the way Singapore and China handled the financial crisis for the US.
The nature of the problems the US and various countries faced was vastly different, and 'the firestorm was in the US while the Asian economies felt only the heat'.
But, he said, he wanted to make the point that growth in the property sector and stock markets must be based on underlying economic fundamentals. 'Regulators must be vigilant of short-term speculative bubbles leveraged off cheap liquid funds,' he said.
Asia learnt its lesson from the property and stock market bubble during the Asian financial crisis in 1997, he added.
Mr Goh, who got a master's degree in development economics from Williams in 1967, is on a private visit to the US where he attended the 50th anniversary celebrations of the university's Centre for Development Economics.
In his speech, he outlined briefly how China and Singapore had managed the impact of the latest financial crisis.
Singapore's approach of cutting costs to save jobs rather than cutting jobs to save costs in the measures it adopted - Jobs Credit and skills upgrading - worked, he added.
It helped companies ramp up production to meet the surge in demand when the global economy recovered, enabling the economy to rebound.
But he indicated a similar approach may not be possible in the US because of the size of its economy and its free market philosophy.
Mr Goh also cautioned against innovative activity carried to extremes, such as creative credit instruments, which can have far-reaching risks.
He also argued that globalisation is beneficial to all countries and that governments cannot turn their backs on it, political pressure notwithstanding.
Mr Goh believes Asia will remain open and growing in the next decade and hold much economic opportunity for the US.
It was therefore better for Asian economies to stay coupled with the US, he said.
zakirh@sph.com.sg
ST : More affordable housing for Taiwan
Oct 16, 2010
More affordable housing for Taiwan
TAIPEI: Taiwan officials said yesterday they planned to resume construction of affordable housing after an 11-year hiatus, another step to offset rising home prices that have kept average income earners out of the market.
The island's Interior Ministry will recommend by the end of this month how many more units to build and at what cost, ministry construction office head Yeh Shih-wen said.
That would raise the amount of affordable housing past the 5 per cent of today's total.
A new scramble to add affordable housing is designed to ease six straight years of price increases as speculators have taken advantage of low-interest loans, particularly in the capital Taipei.
Taiwan's central bank raised rates last month to 1.5 per cent, as the island's economy recovers steadily and to pre-empt asset bubbles from forming.
The ratio of home prices to disposable income in Taipei is at the highest in 20 years and the average price for an existing apartment was US$442,100 (S$571,500) in the first eight months of the year, 11.5 times the average yearly household income.
'Because home prices in the Taipei area have gone so high, average income earners can't afford them,' Mr Yeh said. 'The first phase of affordable housing will be directed at Taipei.'
Taiwan joins Hong Kong and major cities in mainland China, among other places, in trying to rein in home prices driven up largely by speculators.
Plans to add affordable housing follow a directive from Taiwan President Ma Ying-jeou earlier in the week. Mr Ma's Kuomintang faces mayoral and county magistrate elections next month as spiralling home prices weigh on voters.
In another move to check property prices, the central bank will ask lenders to report every two weeks loans made to construction firms and for land development, sources familiar with the issue said this month.
'Efforts to contain asset prices involve market-based measures as well as increasing the supply of housing,' said Mr Tim Condon, chief Asia economist with ING in Singapore.
Taiwan quit building affordable housing in 1999, replacing it with subsidies. But only about 70,000 households qualify for those, keeping middle-class Taipei residents out of the market.
Much of today's affordable housing is also reserved for military families or retired military personnel.
REUTERS
More affordable housing for Taiwan
TAIPEI: Taiwan officials said yesterday they planned to resume construction of affordable housing after an 11-year hiatus, another step to offset rising home prices that have kept average income earners out of the market.
The island's Interior Ministry will recommend by the end of this month how many more units to build and at what cost, ministry construction office head Yeh Shih-wen said.
That would raise the amount of affordable housing past the 5 per cent of today's total.
A new scramble to add affordable housing is designed to ease six straight years of price increases as speculators have taken advantage of low-interest loans, particularly in the capital Taipei.
Taiwan's central bank raised rates last month to 1.5 per cent, as the island's economy recovers steadily and to pre-empt asset bubbles from forming.
The ratio of home prices to disposable income in Taipei is at the highest in 20 years and the average price for an existing apartment was US$442,100 (S$571,500) in the first eight months of the year, 11.5 times the average yearly household income.
'Because home prices in the Taipei area have gone so high, average income earners can't afford them,' Mr Yeh said. 'The first phase of affordable housing will be directed at Taipei.'
Taiwan joins Hong Kong and major cities in mainland China, among other places, in trying to rein in home prices driven up largely by speculators.
Plans to add affordable housing follow a directive from Taiwan President Ma Ying-jeou earlier in the week. Mr Ma's Kuomintang faces mayoral and county magistrate elections next month as spiralling home prices weigh on voters.
In another move to check property prices, the central bank will ask lenders to report every two weeks loans made to construction firms and for land development, sources familiar with the issue said this month.
'Efforts to contain asset prices involve market-based measures as well as increasing the supply of housing,' said Mr Tim Condon, chief Asia economist with ING in Singapore.
Taiwan quit building affordable housing in 1999, replacing it with subsidies. But only about 70,000 households qualify for those, keeping middle-class Taipei residents out of the market.
Much of today's affordable housing is also reserved for military families or retired military personnel.
REUTERS
ST : Chinese property prices up in Sept
Oct 16, 2010
Chinese property prices up in Sept
BEIJING: Chinese property prices rose for the first time in four months in September, a sign that the market is ready to pounce on any let-up by the government in its crackdown on speculation.
A resumption of capital inflows to China in recent weeks and expectations of more monetary easing in developed markets have triggered worries that Chinese asset markets could soon face steep upward pressure.
In fact, Beijing had already detected the return of property inflation, reinforcing its tightening measures at the end of last month.
'It looked like the impact of the April (initial tightening) policy had started to fade, because we did see prices picking up again,' said Ms Jinny Yan, an economist at Shanghai's Standard Chartered Bank. 'So it was obviously conviction from the centre that we need to keep prices stable. Without any movement in interest rate policy, this is perhaps the No.1 focus for Beijing to keep asset price inflation at bay.'
Property prices were up 0.5 per cent in September from a month earlier, the first month-on- month rise since May, according to figures released by the National Bureau of Statistics yesterday.
Beijing took fresh steps on Sept 29 to reinforce its curbs on property speculation, in response to signs of a pick-up in housing deals and prices. Early evidence is that it has been successful.
'There has to be a downward correction in property prices,' said Mr Yi Xianrong, an economist at the Chinese Academy of Social Sciences, a government think-tank. 'Otherwise, we may see a big bubble in property market.'
Mr Yi said the tool needed to curb property speculation would be an annual housing tax, a levy based on the appraised value of homes.
REUTERS
Chinese property prices up in Sept
BEIJING: Chinese property prices rose for the first time in four months in September, a sign that the market is ready to pounce on any let-up by the government in its crackdown on speculation.
A resumption of capital inflows to China in recent weeks and expectations of more monetary easing in developed markets have triggered worries that Chinese asset markets could soon face steep upward pressure.
In fact, Beijing had already detected the return of property inflation, reinforcing its tightening measures at the end of last month.
'It looked like the impact of the April (initial tightening) policy had started to fade, because we did see prices picking up again,' said Ms Jinny Yan, an economist at Shanghai's Standard Chartered Bank. 'So it was obviously conviction from the centre that we need to keep prices stable. Without any movement in interest rate policy, this is perhaps the No.1 focus for Beijing to keep asset price inflation at bay.'
Property prices were up 0.5 per cent in September from a month earlier, the first month-on- month rise since May, according to figures released by the National Bureau of Statistics yesterday.
Beijing took fresh steps on Sept 29 to reinforce its curbs on property speculation, in response to signs of a pick-up in housing deals and prices. Early evidence is that it has been successful.
'There has to be a downward correction in property prices,' said Mr Yi Xianrong, an economist at the Chinese Academy of Social Sciences, a government think-tank. 'Otherwise, we may see a big bubble in property market.'
Mr Yi said the tool needed to curb property speculation would be an annual housing tax, a levy based on the appraised value of homes.
REUTERS
ST : Private home sales down
Oct 16, 2010
Private home sales down
Cooling measures seem to have immediate impact, with 911 units sold last month
By Joyce Teo
PRIVATE home sales last month were down sharply from August, suggesting that the recent steps to cool the surging property market had immediate impact.
Developers sold 911 flats last month - down from 1,259 in August - and a substantial part of that was due to heavy demand for one project.
The level of launches was slightly lower, with 1,058 units released last month, from 1,165 in August, according to the Urban Redevelopment Authority yesterday.
While last month's figures were down, in comparison with the preceding months of mostly bumper transactions, they were still fairly robust and brought sales of new private homes for the first nine months to 12,136. This compares with 12,828 units shifted in the same period last year.
Developers sold 14,688 new homes in the whole of last year, just short of the 2007 record of 14,811 units.
The Aug 30 cooling measures introduced tighter lending rules for people with existing mortgages looking to buy another home, and barred owners who plan to buy a HDB resale flat from keeping their private property, including any held overseas.
Experts say the steps managed to dampen demand although the extent of the fall in sales was largely expected.
But marketing agent Jones Lang LaSalle said the move fell short of expectations as cooling measures introduced in September last year had a greater and faster effect in moderating sales volumes.
'The numbers suggest that the initial shock of government policies is over as the market adjusts to a stricter regulatory environment each time,' said Dr Chua Yang Liang, its head of research for South-east Asia.
'In contrast with the first set of measures (last year), which were aimed at cooling the overall market, the latest measures are targeted specifically at the 'double-barrelled speculators' who form only a small part of the universe as shown by the smaller drop in sales volume.'
Last month's sales would have been much lower if not for strong demand for NV Residences. The Pasir Ris project was last month's clear top seller, moving 347 units at a median price of $859 per sq ft (psf).
Vacanza@East in Lengkong Tujuh was next with 89 units sold at a median price of $1,107 psf.
Experts noted that last month's sales in suburban areas, or what is known as the outside central region, grew by 10 per cent over August to reach 601 units.
Sales in the city fringes and core city centre fell by 50 per cent and 60 per cent respectively from August, indicating that some with deeper pockets were holding back.
There had been forecasts that the dampening moves would hit the mass market fairly hard but the segment seems to have 'held its own' and 'could buck the declining sales trend in spite of the cooling measures', said Colliers International's director for research and advisory, Ms Tay Huey Ying.
She said it could be a sign that the fall in demand from buyers with HDB addresses could have been offset by a rise in demand from new groups of buyers.
These include people priced out of the higher-tier markets by the tighter financing rules and those planning to buy HDB flats who may now choose a private home to avoid giving up their foreign property.
Experts say developers' sales may hover around 800 to 1,000 units in the fourth quarter, with transactions for the year likely exceeding 14,000.
Knight Frank's managing director of residential services, Mr Peter Ow, told The Straits Times: 'People have a lot of confidence in the market because there's plenty of liquidity, the stock market is strong, and interest rates remain low.'
Home prices are also tipped to remain stable for the rest of the year.
According to Ms Tay, any possible rise in mass market prices would have been curbed by buyer resistance and developers' need to move sales and clear their inventory.
PropNex chief executive Mohamed Ismail said developers could price their new projects lower as recent land bids have moderated.
Mr Ow added that price direction next year will largely hinge on the amount of supply coming onstream.
joyceteo@sph.com.sg
Private home sales down
Cooling measures seem to have immediate impact, with 911 units sold last month
By Joyce Teo
PRIVATE home sales last month were down sharply from August, suggesting that the recent steps to cool the surging property market had immediate impact.
Developers sold 911 flats last month - down from 1,259 in August - and a substantial part of that was due to heavy demand for one project.
The level of launches was slightly lower, with 1,058 units released last month, from 1,165 in August, according to the Urban Redevelopment Authority yesterday.
While last month's figures were down, in comparison with the preceding months of mostly bumper transactions, they were still fairly robust and brought sales of new private homes for the first nine months to 12,136. This compares with 12,828 units shifted in the same period last year.
Developers sold 14,688 new homes in the whole of last year, just short of the 2007 record of 14,811 units.
The Aug 30 cooling measures introduced tighter lending rules for people with existing mortgages looking to buy another home, and barred owners who plan to buy a HDB resale flat from keeping their private property, including any held overseas.
Experts say the steps managed to dampen demand although the extent of the fall in sales was largely expected.
But marketing agent Jones Lang LaSalle said the move fell short of expectations as cooling measures introduced in September last year had a greater and faster effect in moderating sales volumes.
'The numbers suggest that the initial shock of government policies is over as the market adjusts to a stricter regulatory environment each time,' said Dr Chua Yang Liang, its head of research for South-east Asia.
'In contrast with the first set of measures (last year), which were aimed at cooling the overall market, the latest measures are targeted specifically at the 'double-barrelled speculators' who form only a small part of the universe as shown by the smaller drop in sales volume.'
Last month's sales would have been much lower if not for strong demand for NV Residences. The Pasir Ris project was last month's clear top seller, moving 347 units at a median price of $859 per sq ft (psf).
Vacanza@East in Lengkong Tujuh was next with 89 units sold at a median price of $1,107 psf.
Experts noted that last month's sales in suburban areas, or what is known as the outside central region, grew by 10 per cent over August to reach 601 units.
Sales in the city fringes and core city centre fell by 50 per cent and 60 per cent respectively from August, indicating that some with deeper pockets were holding back.
There had been forecasts that the dampening moves would hit the mass market fairly hard but the segment seems to have 'held its own' and 'could buck the declining sales trend in spite of the cooling measures', said Colliers International's director for research and advisory, Ms Tay Huey Ying.
She said it could be a sign that the fall in demand from buyers with HDB addresses could have been offset by a rise in demand from new groups of buyers.
These include people priced out of the higher-tier markets by the tighter financing rules and those planning to buy HDB flats who may now choose a private home to avoid giving up their foreign property.
Experts say developers' sales may hover around 800 to 1,000 units in the fourth quarter, with transactions for the year likely exceeding 14,000.
Knight Frank's managing director of residential services, Mr Peter Ow, told The Straits Times: 'People have a lot of confidence in the market because there's plenty of liquidity, the stock market is strong, and interest rates remain low.'
Home prices are also tipped to remain stable for the rest of the year.
According to Ms Tay, any possible rise in mass market prices would have been curbed by buyer resistance and developers' need to move sales and clear their inventory.
PropNex chief executive Mohamed Ismail said developers could price their new projects lower as recent land bids have moderated.
Mr Ow added that price direction next year will largely hinge on the amount of supply coming onstream.
joyceteo@sph.com.sg
ST : Lukewarm response to HK housing measures
Oct 15, 2010
Lukewarm response to HK housing measures
Move not enough to meet people's needs or curb prices, analysts say
HONG KONG: New measures outlined in Hong Kong chief executive Donald Tsang's policy blueprint will not satisfy the people's demand for government help to become home owners and will have no immediate impact on rising property prices, academics and market watchers said.
Mr Tsang announced on Wednesday measures aimed at cooling the housing market - which took up nearly a quarter of his policy address, the South China Morning Post reported yesterday.
Mr Nicholas Brooke, chairman of Professional Property Services, said the policies were medium-term measures which will not solve the immediate problems facing society, the Post reported. A new subsidised-housing scheme under which 5,000 rent-and-buy flats will be supplied is not enough to solve the problem, he said. The first batch of 1,000 such flats in Tsing Yi will be available only by 2014.
'Why can't we sell the sites this year, or next month?' said Mr Brooke. 'Home prices will continue to rise.'
Mr Tsang had announced the 'rent-and-buy' programme called My Home Purchase Plan for the sandwich class who are too affluent to get public rental housing, but who do not have enough savings to make a down payment on a home.
Under the new scheme, the government will provide land for the Housing Society to build about 5,000 'no-frills' flats for lease to individuals and families at prevailing market rent for up to five years. During that time, tenants can buy the flat they are renting or another flat under the plan at its market price, or they can buy a flat in the private market, within a specified time.
They will receive a subsidy equivalent to half the net rental they paid during the tenancy period, and use it for part of the down payment.
To qualify for the scheme, applicants with families should earn a household income of no more than HK$39,000 (S$6,500) a month and have assets of no more than HK$600,000, the Post reported.
Primary school teacher Brian Cheung, 29, said it would be a long time before the rent-and-buy scheme starts. He hoped the HK$39,000 cap under the scheme could be raised because his earnings, combined with his fiancee's, exceeded it, but they still found it difficult to buy with government help.
Mr Tsang admitted that the scheme could not answer the public's immediate need, but said land and flat supply would be sufficient in the coming years, the Post reported.
His housing plans include increasing land supply by launching a public consultation on the reclamation outside Victoria Harbour to generate more land in the long run. The authorities will also speed up internal procedures to make more residential sites available to the market.
He pledged that in the next decade, the government would offer enough sites to build an average of 20,000 private flats a year.
And from yesterday, applicants to the Capital Investment Entrant Scheme - which earlier allowed investors, such as those from the Chinese mainland, to invest in real estate or specified financial assets to obtain permanent residency in Hong Kong - are no longer able to use real estate as an investment category. The government also raised the minimum investment under the scheme from HK$6.5 million to HK$10 million.
Mr Louis Chan, real estate agency Centaline's managing director for residential sales, predicted just a 5 per cent drop in the number of mainlanders buying high-end property following Mr Tsang's announcement, Agence France-Presse reported.
Property prices here have risen 15 per cent since the beginning of the year, after rising by a third last year. The increase is fuelled mainly by low interest rates and purchases by wealthy mainland Chinese facing policy tightening at home.
Dr Lau Kwok Yu, associate professor at City University's public and social administration department, said he was disappointed that the government rejected public calls for the resumption of the subsidised Home Ownership Scheme.
Mr Stewart Leung, vice-president of the Real Estate Developers Association, believed the new measures would not dampen the market, saying the land supply target of 20,000 units a year would have a positive impact on prices, the Post said.
Lukewarm response to HK housing measures
Move not enough to meet people's needs or curb prices, analysts say
HONG KONG: New measures outlined in Hong Kong chief executive Donald Tsang's policy blueprint will not satisfy the people's demand for government help to become home owners and will have no immediate impact on rising property prices, academics and market watchers said.
Mr Tsang announced on Wednesday measures aimed at cooling the housing market - which took up nearly a quarter of his policy address, the South China Morning Post reported yesterday.
Mr Nicholas Brooke, chairman of Professional Property Services, said the policies were medium-term measures which will not solve the immediate problems facing society, the Post reported. A new subsidised-housing scheme under which 5,000 rent-and-buy flats will be supplied is not enough to solve the problem, he said. The first batch of 1,000 such flats in Tsing Yi will be available only by 2014.
'Why can't we sell the sites this year, or next month?' said Mr Brooke. 'Home prices will continue to rise.'
Mr Tsang had announced the 'rent-and-buy' programme called My Home Purchase Plan for the sandwich class who are too affluent to get public rental housing, but who do not have enough savings to make a down payment on a home.
Under the new scheme, the government will provide land for the Housing Society to build about 5,000 'no-frills' flats for lease to individuals and families at prevailing market rent for up to five years. During that time, tenants can buy the flat they are renting or another flat under the plan at its market price, or they can buy a flat in the private market, within a specified time.
They will receive a subsidy equivalent to half the net rental they paid during the tenancy period, and use it for part of the down payment.
To qualify for the scheme, applicants with families should earn a household income of no more than HK$39,000 (S$6,500) a month and have assets of no more than HK$600,000, the Post reported.
Primary school teacher Brian Cheung, 29, said it would be a long time before the rent-and-buy scheme starts. He hoped the HK$39,000 cap under the scheme could be raised because his earnings, combined with his fiancee's, exceeded it, but they still found it difficult to buy with government help.
Mr Tsang admitted that the scheme could not answer the public's immediate need, but said land and flat supply would be sufficient in the coming years, the Post reported.
His housing plans include increasing land supply by launching a public consultation on the reclamation outside Victoria Harbour to generate more land in the long run. The authorities will also speed up internal procedures to make more residential sites available to the market.
He pledged that in the next decade, the government would offer enough sites to build an average of 20,000 private flats a year.
And from yesterday, applicants to the Capital Investment Entrant Scheme - which earlier allowed investors, such as those from the Chinese mainland, to invest in real estate or specified financial assets to obtain permanent residency in Hong Kong - are no longer able to use real estate as an investment category. The government also raised the minimum investment under the scheme from HK$6.5 million to HK$10 million.
Mr Louis Chan, real estate agency Centaline's managing director for residential sales, predicted just a 5 per cent drop in the number of mainlanders buying high-end property following Mr Tsang's announcement, Agence France-Presse reported.
Property prices here have risen 15 per cent since the beginning of the year, after rising by a third last year. The increase is fuelled mainly by low interest rates and purchases by wealthy mainland Chinese facing policy tightening at home.
Dr Lau Kwok Yu, associate professor at City University's public and social administration department, said he was disappointed that the government rejected public calls for the resumption of the subsidised Home Ownership Scheme.
Mr Stewart Leung, vice-president of the Real Estate Developers Association, believed the new measures would not dampen the market, saying the land supply target of 20,000 units a year would have a positive impact on prices, the Post said.
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