Dec 04,2010
Gradual price rises work best for developers: Redas chief
By Cheryl Lim & Esther Teo
ROCKETING real estate prices might sound good for developers at first glance. But a calmer market, with values rising in a smooth line, works best, according to an industry leader last night.
Mr Simon Cheong, president of the Real Estate Developers' Association of Singapore (Redas), said at the body's 51st anniversary dinner that developers should welcome gradual price increases.
'It is in our interest to see a more graduated trend in value movements, in order to realise a sustainable environment for real estate development, rather than face the volatility from mismatched market forces,' he said.
Investors most want certainty, political stability and a stable policy framework: three attributes which the Singapore market has, he added.
Although many investors are concerned that real estate cycles are getting shorter and price swings are becoming more pronounced, they still believe that Singapore has sound fundamentals and a long-term policy framework to deal with the changes taking place, he said.
Mr Cheong also touched on the eventful year which developers have had.
Urban Redevelopment Authority (URA) statistics for the second quarter recorded a new peak in developers' sales, reaching 2,208 units in April alone, he said. In the same quarter, the URA property price index also surpassed its former all-time peak in the second quarter of 1996.
The Government Land Sales Programme has also added about $9.4 billion in revenue to state coffers - more than five times the $1.8 billion in sales recorded for the whole of last year.
But signs of a slowdown are appearing, he said, with prices moderating to 2.9 per cent in the third quarter from 5.3 per cent in the second quarter.
However, private home prices are still up 14.4 per cent for the first nine months of the year.
Mr Cheong is confident about the long-term prospects of developers.
'We are positive about the real estate market in Singapore, given the Government's continuous drive to reposition the economy. We believe that the market will continue to be underpinned by sound economic fundamentals and a favourable business environment,' he said.
Some experts say that while the market appears to have moderated after the Government introduced cooling measures in August, additional steps could be taken should prices and activity start to shoot up again.
At the dinner last night, Cushman & Wakefield Singapore vice-chairman Donald Han told The Straits Times that although transaction volumes have slowed, the Government might still step in if the pace of private home sales returns to the buoyancy of April.
But Knight Frank chairman Tan Tiong Cheng said that developers have already turned more cautious, as reflected in their more realistic bid prices for land: 'It's a sign that they feel the market won't be charging ahead. In such a scenario, there is no need to introduce measures to curb demand.'
Trade and Industry Minister Lim Hng Kiang was guest of honour at last night's dinner, held at The Ritz-Carlton, Millenia Singapore.
Thursday, December 9, 2010
ST : Refer a home buyer
Dec 04,2010
DEVELOPERS DANGLE GOODIES TO DRUM UP SALES
Refer a home buyer...
...he gets a discount on his purchase
... and you get a cash reward
By Cheryl Lim & Esther Teo
SOME developers are trying to lift sales by offering cash handouts and generous discounts if existing owners refer other people who then buy a flat in one of the company's condominiums.
The owner making the referral can get a cash reward - it could be as much as $7,500 if a $1 million flat is sold - while the referred buyer gets a discount on his new purchase.
Other developers are using inducements such as free air tickets and other gifts to entice buyers to sign up.
But there is a catch: incentives like discounts, rebates and gifts must be declared when a mortgage application is filed with the bank.
A spokesman for the Monetary Authority of Singapore (MAS) said that financial institutions are required to deduct benefits offered by the developer from the property's purchase price, and apply the loan-to-value (LTV) limit on this lower amount.
This housing loan rule applies to any benefit that reduces the purchase price of the property.
Several financial institutions, including OCBC and United Overseas Bank, require that clients declare any incentives received in cash or in kind.
One bank told The Straits Times that making a false application could even spell legal trouble.
But the tight rules have not stopped developers dangling carrots in front of buyers.
The Straits Times understands that Far East Organization's scheme rewards an existing Far East home owner making the referral and a buyer who signs up.
The kitty is 1.5 per cent of the initial purchase price of the new unit: the person making the referral gets 0.75 per cent, while the new buyer enjoys a 0.75 per cent cut in the price.
Assume the person you referred to Far East buys a $1 million home. You can get a cheque for $7,500 and he gets a $7,500 cut on the price.
Property developer EL Development also gives out similar 'goodwill discounts'. Managing director Lim Yew Soon said the initiative, which started in 2008, rewards buyers referred by friends or relatives with discounts of 0.5 per cent to 1 per cent of the purchase price.
But the scheme applies only to certain developments, including Rosewood Suites in Rosewood Drive and Steven Suites in Stevens Close.
Discounts are assessed on a case by case basis and only six clients have been approved, he added.
Last month, Wing Tai Holdings gave air tickets for a Hokkaido ski trip to buyers who bought units at its Ascentia Sky project in Alexandra View.
Industry experts said such schemes are not new and usually apply only to selected developments, such as those with units that need to be sold quickly.
ERA Asia Pacific associate director Eugene Lim said these strategies are also often used as a long-term game plan to buff up their customer loyalty and brand name.
Ms Wendy Tang, Knight Frank's director of residential services, added: 'Previous buyers make the best ambassadors because they will say, 'I've purchased it and I'm recommending it because I believe it's good'.'
Situations where buyers refer family and friends are also now a common occurrence - especially with the bigger developers, experts added.
'They might have sold (previous projects) to buyers and now they're selling to their children. Friends who like the idea of living together might also band together to purchase units near each other,' DTZ executive director Ong Choon Fah said.
But depending on such tactics could backfire on developers and ultimately affect their profit margins, said analysts. Still, they are seen as preferable to cutting prices, which can become a slippery slope.
'If you launch at this price from the onset and then reduce, buyers might expect prices to be slashed even further. Buyers might even expect (developers) to move their prices before they launch,' said OrangeTee research head Tan Kok Keong.
But Ms Tang pointed out that factors like price and location ultimately outrank incentives when it comes to making the final purchasing decisions.
cherlim@sph.com.sg
esthert@sph.com.sg
DEVELOPERS DANGLE GOODIES TO DRUM UP SALES
Refer a home buyer...
...he gets a discount on his purchase
... and you get a cash reward
By Cheryl Lim & Esther Teo
SOME developers are trying to lift sales by offering cash handouts and generous discounts if existing owners refer other people who then buy a flat in one of the company's condominiums.
The owner making the referral can get a cash reward - it could be as much as $7,500 if a $1 million flat is sold - while the referred buyer gets a discount on his new purchase.
Other developers are using inducements such as free air tickets and other gifts to entice buyers to sign up.
But there is a catch: incentives like discounts, rebates and gifts must be declared when a mortgage application is filed with the bank.
A spokesman for the Monetary Authority of Singapore (MAS) said that financial institutions are required to deduct benefits offered by the developer from the property's purchase price, and apply the loan-to-value (LTV) limit on this lower amount.
This housing loan rule applies to any benefit that reduces the purchase price of the property.
Several financial institutions, including OCBC and United Overseas Bank, require that clients declare any incentives received in cash or in kind.
One bank told The Straits Times that making a false application could even spell legal trouble.
But the tight rules have not stopped developers dangling carrots in front of buyers.
The Straits Times understands that Far East Organization's scheme rewards an existing Far East home owner making the referral and a buyer who signs up.
The kitty is 1.5 per cent of the initial purchase price of the new unit: the person making the referral gets 0.75 per cent, while the new buyer enjoys a 0.75 per cent cut in the price.
Assume the person you referred to Far East buys a $1 million home. You can get a cheque for $7,500 and he gets a $7,500 cut on the price.
Property developer EL Development also gives out similar 'goodwill discounts'. Managing director Lim Yew Soon said the initiative, which started in 2008, rewards buyers referred by friends or relatives with discounts of 0.5 per cent to 1 per cent of the purchase price.
But the scheme applies only to certain developments, including Rosewood Suites in Rosewood Drive and Steven Suites in Stevens Close.
Discounts are assessed on a case by case basis and only six clients have been approved, he added.
Last month, Wing Tai Holdings gave air tickets for a Hokkaido ski trip to buyers who bought units at its Ascentia Sky project in Alexandra View.
Industry experts said such schemes are not new and usually apply only to selected developments, such as those with units that need to be sold quickly.
ERA Asia Pacific associate director Eugene Lim said these strategies are also often used as a long-term game plan to buff up their customer loyalty and brand name.
Ms Wendy Tang, Knight Frank's director of residential services, added: 'Previous buyers make the best ambassadors because they will say, 'I've purchased it and I'm recommending it because I believe it's good'.'
Situations where buyers refer family and friends are also now a common occurrence - especially with the bigger developers, experts added.
'They might have sold (previous projects) to buyers and now they're selling to their children. Friends who like the idea of living together might also band together to purchase units near each other,' DTZ executive director Ong Choon Fah said.
But depending on such tactics could backfire on developers and ultimately affect their profit margins, said analysts. Still, they are seen as preferable to cutting prices, which can become a slippery slope.
'If you launch at this price from the onset and then reduce, buyers might expect prices to be slashed even further. Buyers might even expect (developers) to move their prices before they launch,' said OrangeTee research head Tan Kok Keong.
But Ms Tang pointed out that factors like price and location ultimately outrank incentives when it comes to making the final purchasing decisions.
cherlim@sph.com.sg
esthert@sph.com.sg
ST : Can our buildings withstand quakes?
Dec 04,2010
Can our buildings withstand quakes?
More time needed for studies on impact of regional tremors
By Christopher Tan
JUST how vulnerable buildings in Singapore will be to tremors from major earthquakes in the region is still being investigated.
Two studies commissioned two years ago, following the massive quakes that devastated nearby Sumatra in 2004, 2005 and 2007, have yet to be completed.
They were initially expected to be ready this year.
Among other things, the projects set out to determine whether Singapore's construction codes need to include provisions for tremors. This is a consideration that had never cropped up before because the island was long deemed quake-free.
One study is by the Building and Construction Authority (BCA), which commissioned Nanyang Technological University (NTU) to conduct an 'earthquake vulnerability' study.
The BCA told The Straits Times last month that the study will take 'at least another year' to complete.
The other study, also not completed, is by the Housing Board (HDB), which engaged the National University of Singapore (NUS) to develop 'cost-effective monitoring sensors' to be mounted on HDB blocks, said an HDB spokesman.
He said these sensors will enable the HDB to prioritise building inspections in the event of tremors, not to assess the vulnerability of buildings to tremors.
NUS researchers involved in the HDB study declined to talk about it, describing it as 'a very sensitive topic'.
One of them, Professor Koh Chan Ghee of NUS' Centre for Hazards Research, told The Straits Times two years ago that it is not uncommon for building codes to be revised, if necessary, given that a big earthquake is 'a low-probability but high-consequence event'.
Over at NTU, however, geologist Kerry Sieh, the director of the university's Earth Observatory of Singapore, predicts that a quake of 8.8 magnitude will hit north of Padang in Sumatra within the next few decades.
Such a quake, considered a 'great' quake, can affect buildings several hundred kilometres away. Singapore lies about 450km from the predicted zone.
Professor Sieh's colleague, Assistant Professor Kusnowidjaja Megawati, said a real worry for Singapore is for buildings which stand on marine clay and some reclaimed land. These soil types tend to amplify low-frequency vibrations from quakes hundreds of kilometres away.
These soft soils make up about a quarter of Singapore's land mass, mostly in the south-east, like in Kallang.
Prof Megawati explained that geologists use a measure called centimetre per second squared (cm/ss) to indicate the degree of 'shaking' felt on the ground.
Recent simulations have shown that an 8.8-magnitude quake in Sumatra will create 'ground acceleration' of plus-minus 10cm/ss in Bukit Timah - an area with underlying hard rock - and plus-minus 30 to 40cm/ss in Kallang, he said.
In the 8.4-magnitude Sumatran quake in 2007 - the most severe quake felt here in recent times - the ground acceleration was less than 1 cm/ss in Bukit Timah and 3cm/ss in Kallang, he noted.
Even at that level, buildings as far inland as Toa Payoh and Little India shook, so if Prof Megawati is right and 'the next big one' happens, the effects felt here could be 10 times that.
But the experts do not all agree on the extent of Singapore's risk exposure to quakes and how it should respond to them.
Professor Pan Tso-Chien, the dean of NTU's School of Engineering, for instance, believes Singapore should not rush to change its building codes to guard against earthquake damage.
He said: 'It's a major issue in addressing a code change. It's not only a question of science or technology any more, but economics and costs as well.'
Arguing against jumping into a code change, he said: 'Are our current codes enough protection? Will we be over-providing? Are you going to make it so safe that it's safer than crossing a street? You have other competing needs for your resources - like terrorism, road accidents and defence.'
Prof Pan, who is also director of the Institute of Catastrophe Risk Management, a research body co-funded by the Monetary Authority of Singapore, said the issue may well resolve itself over time, as buildings 'are always getting stronger because of better materials, better engineering, better accuracy in design'.
At best, he said, resources should go into strengthening buildings gradually over time, systemically, so 'there's no need to rush or worry'.
Asked about the 'next big one', Prof Pan said: 'Personally, I'm not in favour of earthquake predictions because it's very difficult - you have to involve not only a place, but also time. It's too much consequence for one to be correct or incorrect.'
He also pointed out that the majority of deaths from earthquakes have been in rural areas, not urban high-rise ones.
Meanwhile, the insurance industry has not decided to start charging for earthquake coverage, even after having mulled over it in the past few years.
General Insurance Association president Derek Teo said 'exposures are still within a tolerable range'.
He added: 'Nevertheless, tremors here will be monitored on frequency and severity before a rate charge is considered.'
christan@sph.com.sg
Can our buildings withstand quakes?
More time needed for studies on impact of regional tremors
By Christopher Tan
JUST how vulnerable buildings in Singapore will be to tremors from major earthquakes in the region is still being investigated.
Two studies commissioned two years ago, following the massive quakes that devastated nearby Sumatra in 2004, 2005 and 2007, have yet to be completed.
They were initially expected to be ready this year.
Among other things, the projects set out to determine whether Singapore's construction codes need to include provisions for tremors. This is a consideration that had never cropped up before because the island was long deemed quake-free.
One study is by the Building and Construction Authority (BCA), which commissioned Nanyang Technological University (NTU) to conduct an 'earthquake vulnerability' study.
The BCA told The Straits Times last month that the study will take 'at least another year' to complete.
The other study, also not completed, is by the Housing Board (HDB), which engaged the National University of Singapore (NUS) to develop 'cost-effective monitoring sensors' to be mounted on HDB blocks, said an HDB spokesman.
He said these sensors will enable the HDB to prioritise building inspections in the event of tremors, not to assess the vulnerability of buildings to tremors.
NUS researchers involved in the HDB study declined to talk about it, describing it as 'a very sensitive topic'.
One of them, Professor Koh Chan Ghee of NUS' Centre for Hazards Research, told The Straits Times two years ago that it is not uncommon for building codes to be revised, if necessary, given that a big earthquake is 'a low-probability but high-consequence event'.
Over at NTU, however, geologist Kerry Sieh, the director of the university's Earth Observatory of Singapore, predicts that a quake of 8.8 magnitude will hit north of Padang in Sumatra within the next few decades.
Such a quake, considered a 'great' quake, can affect buildings several hundred kilometres away. Singapore lies about 450km from the predicted zone.
Professor Sieh's colleague, Assistant Professor Kusnowidjaja Megawati, said a real worry for Singapore is for buildings which stand on marine clay and some reclaimed land. These soil types tend to amplify low-frequency vibrations from quakes hundreds of kilometres away.
These soft soils make up about a quarter of Singapore's land mass, mostly in the south-east, like in Kallang.
Prof Megawati explained that geologists use a measure called centimetre per second squared (cm/ss) to indicate the degree of 'shaking' felt on the ground.
Recent simulations have shown that an 8.8-magnitude quake in Sumatra will create 'ground acceleration' of plus-minus 10cm/ss in Bukit Timah - an area with underlying hard rock - and plus-minus 30 to 40cm/ss in Kallang, he said.
In the 8.4-magnitude Sumatran quake in 2007 - the most severe quake felt here in recent times - the ground acceleration was less than 1 cm/ss in Bukit Timah and 3cm/ss in Kallang, he noted.
Even at that level, buildings as far inland as Toa Payoh and Little India shook, so if Prof Megawati is right and 'the next big one' happens, the effects felt here could be 10 times that.
But the experts do not all agree on the extent of Singapore's risk exposure to quakes and how it should respond to them.
Professor Pan Tso-Chien, the dean of NTU's School of Engineering, for instance, believes Singapore should not rush to change its building codes to guard against earthquake damage.
He said: 'It's a major issue in addressing a code change. It's not only a question of science or technology any more, but economics and costs as well.'
Arguing against jumping into a code change, he said: 'Are our current codes enough protection? Will we be over-providing? Are you going to make it so safe that it's safer than crossing a street? You have other competing needs for your resources - like terrorism, road accidents and defence.'
Prof Pan, who is also director of the Institute of Catastrophe Risk Management, a research body co-funded by the Monetary Authority of Singapore, said the issue may well resolve itself over time, as buildings 'are always getting stronger because of better materials, better engineering, better accuracy in design'.
At best, he said, resources should go into strengthening buildings gradually over time, systemically, so 'there's no need to rush or worry'.
Asked about the 'next big one', Prof Pan said: 'Personally, I'm not in favour of earthquake predictions because it's very difficult - you have to involve not only a place, but also time. It's too much consequence for one to be correct or incorrect.'
He also pointed out that the majority of deaths from earthquakes have been in rural areas, not urban high-rise ones.
Meanwhile, the insurance industry has not decided to start charging for earthquake coverage, even after having mulled over it in the past few years.
General Insurance Association president Derek Teo said 'exposures are still within a tolerable range'.
He added: 'Nevertheless, tremors here will be monitored on frequency and severity before a rate charge is considered.'
christan@sph.com.sg
ST : Our First Home
Dec 04,2010
Our First Home
Measures to cool market put resale flats within reach of first-time buyers
By Jessica Cheam & Daryl Chin
RECENT measures to cool the property market have received mixed reactions from home owners, but one group that has emerged better off comprises the young, first-time home buyers.
Property agencies and agents interviewed by The Straits Times say this group is returning to the Housing Board resale market, lured by the softening of cash premiums asked by sellers.
Dennis Wee Group director Chris Koh said the number of young buyers approaching the company's agents has started to rise.
'Young buyers now seem more keen to commit to a resale flat, instead of only new flats,' he said.
PropNex chief executive Mohamed Ismail agreed, noting that more young buyers have approached his agents, as resale flats are now increasingly within their budgets.
'Before the measures, many sellers were quite unrealistic and asking for high cash premiums. Since then, they have become more reasonable in their prices,' he said.
The public housing boom of the past two years had priced many first-time buyers out of the resale market. Most opted to buy cheaper new flats directly from the Housing Board.
But the trend seems to be reversing somewhat.
Application numbers at fresh launches under the Housing Board's Build-To-Order scheme have been lower than those at the launches before the cooling measures were announced in August.
At the recently concluded sale of Yishun Greenwalk, for example, there were about three bids for every new flat - lower than the six bids on average seen at previous launches.
Analysts say the key reason for this is that cash-over-valuation (COV) figures have fallen. COV is the amount over and above the valuation of a Housing Board resale flat. This is payable only in cash, and a major financial barrier for young married couples eager to buy a home.
Agency bosses said that, based on the latest Housing Board figures, the median COV has declined from $30,000 for the third quarter to about $20,000 to $25,000 in October and last month, based on their resale sales data.
National Development Minister Mah Bow Tan confirmed last week that Housing Board figures show that the median COV fell to $25,000 in October.
Industry analysts say the fall in COVs is most pronounced in suburban estates like Yishun, Sembawang, Bukit Batok, Jurong East and Jurong West.
They are also coming down for bigger flat types, such as five-room and executive flats.
ERA Asia-Pacific associate director Eugene Lim said an executive flat in Jurong, for example, used to command from $40,000 to $45,000 cash upfront, but the figure has now gone down to $30,000.
Mr Kelvin Teo, 28, and his wife Alberta, 21, for example, recently managed to buy a four-room flat in Bukit Panjang at a COV of $11,000 - much lower than the median amount (see story above).
This is in stark contrast to just six months ago, when the recovery of the economy and the property market pushed median COV levels to as high as $50,000 to $60,000 in mature estates such as Queenstown, putting the flats out of reach of most first-time buyers.
This had prompted many such buyers to complain via letters to the press and online feedback about the affordability of Housing Board flats.
In late August, the Government moved to stabilise the market by tightening rules on financing and home ownership. For example, private property owners were no longer allowed to simultaneously own Housing Board flats.
But even though COV levels have softened, agency bosses warn that they have to fall further before more first- time buyers can benefit.
Even at COV levels of $20,000 to $25,000, some first-timers - who may be just starting out in their careers - still may not be able to afford resale flats, said Mr Lim.
'There's a limit to how much these young buyers can fork out, unless they have parental support,' he added.
The absolute price of a flat also counts.
'Even if COV decreased by about $10,000 or more, it's still only a marginal 1 per cent to 2 per cent decrease in Housing Board resale flat prices,' said Mr Ismail.
Manager Valda Lee, 28, and her fiance are one such couple still waiting for COVs to fall in the estates which they want to live in.
New flats are not an option for the couple because they exceed the $10,000 household income ceiling which makes them eligible for higher-end executive condos or Design, Build and Sell units offered by the Housing Board.
'We are basically stuck, because the COVs for the places I looked at are at killer levels - $40,000 or more,' she said.
But Mr Lim added that even though valuations have not fallen drastically, the recent measures have at least helped to allay concerns of first-timers.
'Runaway prices seem to have been kept in check for now,' he said.
jcheam@sph.com.sg
www.facebook.com/cheamjessica
darylc@sph.com.sg
Mr Kelvin Teo, wife Alberta and baby Lucius in front of their Bukit Panjang home, which they snagged at a low COV premium of $11,000. For more on the Teo family's journey, see Page B2 -- ST PHOTO: DESMOND FOO
Our First Home
Measures to cool market put resale flats within reach of first-time buyers
By Jessica Cheam & Daryl Chin
RECENT measures to cool the property market have received mixed reactions from home owners, but one group that has emerged better off comprises the young, first-time home buyers.
Property agencies and agents interviewed by The Straits Times say this group is returning to the Housing Board resale market, lured by the softening of cash premiums asked by sellers.
Dennis Wee Group director Chris Koh said the number of young buyers approaching the company's agents has started to rise.
'Young buyers now seem more keen to commit to a resale flat, instead of only new flats,' he said.
PropNex chief executive Mohamed Ismail agreed, noting that more young buyers have approached his agents, as resale flats are now increasingly within their budgets.
'Before the measures, many sellers were quite unrealistic and asking for high cash premiums. Since then, they have become more reasonable in their prices,' he said.
The public housing boom of the past two years had priced many first-time buyers out of the resale market. Most opted to buy cheaper new flats directly from the Housing Board.
But the trend seems to be reversing somewhat.
Application numbers at fresh launches under the Housing Board's Build-To-Order scheme have been lower than those at the launches before the cooling measures were announced in August.
At the recently concluded sale of Yishun Greenwalk, for example, there were about three bids for every new flat - lower than the six bids on average seen at previous launches.
Analysts say the key reason for this is that cash-over-valuation (COV) figures have fallen. COV is the amount over and above the valuation of a Housing Board resale flat. This is payable only in cash, and a major financial barrier for young married couples eager to buy a home.
Agency bosses said that, based on the latest Housing Board figures, the median COV has declined from $30,000 for the third quarter to about $20,000 to $25,000 in October and last month, based on their resale sales data.
National Development Minister Mah Bow Tan confirmed last week that Housing Board figures show that the median COV fell to $25,000 in October.
Industry analysts say the fall in COVs is most pronounced in suburban estates like Yishun, Sembawang, Bukit Batok, Jurong East and Jurong West.
They are also coming down for bigger flat types, such as five-room and executive flats.
ERA Asia-Pacific associate director Eugene Lim said an executive flat in Jurong, for example, used to command from $40,000 to $45,000 cash upfront, but the figure has now gone down to $30,000.
Mr Kelvin Teo, 28, and his wife Alberta, 21, for example, recently managed to buy a four-room flat in Bukit Panjang at a COV of $11,000 - much lower than the median amount (see story above).
This is in stark contrast to just six months ago, when the recovery of the economy and the property market pushed median COV levels to as high as $50,000 to $60,000 in mature estates such as Queenstown, putting the flats out of reach of most first-time buyers.
This had prompted many such buyers to complain via letters to the press and online feedback about the affordability of Housing Board flats.
In late August, the Government moved to stabilise the market by tightening rules on financing and home ownership. For example, private property owners were no longer allowed to simultaneously own Housing Board flats.
But even though COV levels have softened, agency bosses warn that they have to fall further before more first- time buyers can benefit.
Even at COV levels of $20,000 to $25,000, some first-timers - who may be just starting out in their careers - still may not be able to afford resale flats, said Mr Lim.
'There's a limit to how much these young buyers can fork out, unless they have parental support,' he added.
The absolute price of a flat also counts.
'Even if COV decreased by about $10,000 or more, it's still only a marginal 1 per cent to 2 per cent decrease in Housing Board resale flat prices,' said Mr Ismail.
Manager Valda Lee, 28, and her fiance are one such couple still waiting for COVs to fall in the estates which they want to live in.
New flats are not an option for the couple because they exceed the $10,000 household income ceiling which makes them eligible for higher-end executive condos or Design, Build and Sell units offered by the Housing Board.
'We are basically stuck, because the COVs for the places I looked at are at killer levels - $40,000 or more,' she said.
But Mr Lim added that even though valuations have not fallen drastically, the recent measures have at least helped to allay concerns of first-timers.
'Runaway prices seem to have been kept in check for now,' he said.
jcheam@sph.com.sg
www.facebook.com/cheamjessica
darylc@sph.com.sg
Mr Kelvin Teo, wife Alberta and baby Lucius in front of their Bukit Panjang home, which they snagged at a low COV premium of $11,000. For more on the Teo family's journey, see Page B2 -- ST PHOTO: DESMOND FOO
ST : More choices for 'sandwich class'
Dec 04,2010
More choices for 'sandwich class'
IT WAS a five-year wait that eventually bore fruit for Mr Ang Tiong Wei.
After unsuccessfully balloting for new flats directly from the Housing Board for the past few years, the 30-year-old finally clinched a unit at the newly launched Esparina Residences executive condominium in Sengkang last month.
Aggressive moves by the HDB to ramp up supply have seen new executive condominiums (ECs), such as Esparina and The Canopy in Yishun, launched recently.
The last EC launched was in 2005. There had been a hiatus in the building of ECs due to weak demand.
But the recent housing boom led the Government to release more land for ECs, which are a hybrid of public and private housing and include some condominium facilities. They are subject to HDB rules, such as a minimum five-year occupation period.
These units are targeted at helping the middle-income earners, also known as the sandwich class, by catering to households with a monthly income ceiling of $10,000.
Mr Ang, a teacher, said he gave up looking for resale flats as the cash upfront demanded by sellers, known as COV, was as high as $80,000 in some areas.
'I decided that an EC unit was the best choice, and I waited for the new supply,' he said.
The primary school teacher, whose wife is also a teacher, said he felt lucky to have secured a unit of his choice on the 14th storey.
'It was the first launch in a while, so the response was overwhelming,' he said. But the allocation of 95 per cent of the units for first-timers helped a great deal, he added.
'This measure helps because we don't have investors coming in to spoil the market.'
Prices, however, could have been lower, he felt. His three-bedroom, 1,184 sq ft unit cost $929,000 - or $899,000 after taking into account a Central Provident Fund housing grant of $30,000 that he received.
Executive condos such as Esparina Residences (above) and The Canopy are targeted at middle- income earners. --ST FILE PHOTOS
More choices for 'sandwich class'
IT WAS a five-year wait that eventually bore fruit for Mr Ang Tiong Wei.
After unsuccessfully balloting for new flats directly from the Housing Board for the past few years, the 30-year-old finally clinched a unit at the newly launched Esparina Residences executive condominium in Sengkang last month.
Aggressive moves by the HDB to ramp up supply have seen new executive condominiums (ECs), such as Esparina and The Canopy in Yishun, launched recently.
The last EC launched was in 2005. There had been a hiatus in the building of ECs due to weak demand.
But the recent housing boom led the Government to release more land for ECs, which are a hybrid of public and private housing and include some condominium facilities. They are subject to HDB rules, such as a minimum five-year occupation period.
These units are targeted at helping the middle-income earners, also known as the sandwich class, by catering to households with a monthly income ceiling of $10,000.
Mr Ang, a teacher, said he gave up looking for resale flats as the cash upfront demanded by sellers, known as COV, was as high as $80,000 in some areas.
'I decided that an EC unit was the best choice, and I waited for the new supply,' he said.
The primary school teacher, whose wife is also a teacher, said he felt lucky to have secured a unit of his choice on the 14th storey.
'It was the first launch in a while, so the response was overwhelming,' he said. But the allocation of 95 per cent of the units for first-timers helped a great deal, he added.
'This measure helps because we don't have investors coming in to spoil the market.'
Prices, however, could have been lower, he felt. His three-bedroom, 1,184 sq ft unit cost $929,000 - or $899,000 after taking into account a Central Provident Fund housing grant of $30,000 that he received.
Executive condos such as Esparina Residences (above) and The Canopy are targeted at middle- income earners. --ST FILE PHOTOS
ST : Couple snag affordable unit after two-year quest
Dec 04,2010
Couple snag affordable unit after two-year quest
CIVIL servant Kelvin Teo and his wife have been looking for their dream home for almost two years.
But the experience was discouraging, with flat sellers wanting high cash amounts upfront, also known as cash-over-valuation (COV).
But that was before Aug 30, when cooling measures kicked in. These have shifted market dynamics in the couple's favour.
Mr Teo, 28, and his wife Alberta, 21, finally snagged a four-room unit in Bukit Panjang in September for $340,000. The price included a low $11,000 premium.
They preferred resale flats over new ones because those under the HDB's build-to-order (BTO) scheme typically take three years to finish, a wait they felt was too long.
Said Mr Teo: 'The major hindrance was the COV. Flipping through the papers, I could see some of the numbers were getting ridiculous, at more than $50,000.'
They grabbed the four-room flat in Bangkit Road when it came along. 'Though it was more than 20 years old, it was decent and something we could afford,' he said.
The couple, who have a seven-month-old son and a monthly household income of less than $3,500, also had additional help from the Government in the form of a $50,000 housing subsidy.
Mr Teo said the measures to curb speculation in the resale market had helped: 'Before the new measures, high COVs were common. But now I see maybe about three out of 10 sellers demanding a COV of less than $15,000. And that's a good sign.'
DARYL CHIN
Couple snag affordable unit after two-year quest
CIVIL servant Kelvin Teo and his wife have been looking for their dream home for almost two years.
But the experience was discouraging, with flat sellers wanting high cash amounts upfront, also known as cash-over-valuation (COV).
But that was before Aug 30, when cooling measures kicked in. These have shifted market dynamics in the couple's favour.
Mr Teo, 28, and his wife Alberta, 21, finally snagged a four-room unit in Bukit Panjang in September for $340,000. The price included a low $11,000 premium.
They preferred resale flats over new ones because those under the HDB's build-to-order (BTO) scheme typically take three years to finish, a wait they felt was too long.
Said Mr Teo: 'The major hindrance was the COV. Flipping through the papers, I could see some of the numbers were getting ridiculous, at more than $50,000.'
They grabbed the four-room flat in Bangkit Road when it came along. 'Though it was more than 20 years old, it was decent and something we could afford,' he said.
The couple, who have a seven-month-old son and a monthly household income of less than $3,500, also had additional help from the Government in the form of a $50,000 housing subsidy.
Mr Teo said the measures to curb speculation in the resale market had helped: 'Before the new measures, high COVs were common. But now I see maybe about three out of 10 sellers demanding a COV of less than $15,000. And that's a good sign.'
DARYL CHIN
CNA : HDB valuation, resale applications to go fully electronic
HDB valuation, resale applications to go fully electronic
By Mustafa Shafawi | Posted: 03 December 2010 1235 hrs
SINGAPORE : Valuation and resale applications to the HDB will go fully electronic from January 3 next year.
Currently, the majority of these applications are handled by housing agents and more than 85 per cent of all requests are already made online.
HDB said with full electronic submission, customers will benefit from the lower online fees.
The housing board said the move towards 'paper-less' transactions is also more environmentally friendly.
In moving towards full e-submission, HDB has made several enhancements to its ResaleNet system.
It will allow all users to book the First Appointment.
Housing agents who do not subscribe to the ResaleNet system can make use of e-Resale system to submit resale applications and valuation requests.
From January 3, HDB will also allow the buyer and seller, or their agents, to submit their portions of the resale application separately.
The move to allow separate application is also in line with the Estate Agents (Estate Agency Work) Regulations 2010 which disallow the same housing agent to be engaged by both the buyers and sellers in a transaction.
HDB will no longer accept hardcopy applications from 3 January 2011.
Those without Internet access can submit their online applications at the e-Lobby at HDB Hub, or at any HDB Branch Office.
- CNA /ls
By Mustafa Shafawi | Posted: 03 December 2010 1235 hrs
SINGAPORE : Valuation and resale applications to the HDB will go fully electronic from January 3 next year.
Currently, the majority of these applications are handled by housing agents and more than 85 per cent of all requests are already made online.
HDB said with full electronic submission, customers will benefit from the lower online fees.
The housing board said the move towards 'paper-less' transactions is also more environmentally friendly.
In moving towards full e-submission, HDB has made several enhancements to its ResaleNet system.
It will allow all users to book the First Appointment.
Housing agents who do not subscribe to the ResaleNet system can make use of e-Resale system to submit resale applications and valuation requests.
From January 3, HDB will also allow the buyer and seller, or their agents, to submit their portions of the resale application separately.
The move to allow separate application is also in line with the Estate Agents (Estate Agency Work) Regulations 2010 which disallow the same housing agent to be engaged by both the buyers and sellers in a transaction.
HDB will no longer accept hardcopy applications from 3 January 2011.
Those without Internet access can submit their online applications at the e-Lobby at HDB Hub, or at any HDB Branch Office.
- CNA /ls
ST : Land swop deal: Joint team holds 4th meeting
Dec 03,2010
Land swop deal: Joint team holds 4th meeting
OFFICIALS from Singapore and Malaysia met here earlier this week to discuss the implementation details arising from an agreement on Malayan Railway land.
It is the fourth meeting of the Malaysia-Singapore Joint Implementation Team, set up in May after breakthrough negotiations between the two countries' prime ministers. The team also met in July, August and October.
Prime Minister Lee Hsien Loong and Malaysian Prime Minister Najib Razak agreed in May to move forward on issues arising from the 1990 Points of Agreement on Malayan Railway land.
These included relocating the Malayan Railway train station from Tanjong Pagar to Woodlands. In September, both countries agreed to a land swop deal.
It involved a swop of six parcels of land in the Marina South and Ophir-Rochor areas in exchange for three parcels of railway land in Tanjong Pagar, Woodlands and Kranji and another three in Bukit Timah.
The Marina South and Ophir-Rochor land will be developed by M-S Pte Ltd, which is 60 per cent owned by Malaysia's Khazanah Nasional and 40 per cent owned by Singapore's Temasek Holdings.
The meeting was held 'in a cordial atmosphere', and both sides were pleased with the progress made by the sub-committees and working groups, a joint press statement said.
Foreign Affairs Ministry Permanent Secretary Bilahari Kausikan led the Singapore delegation, while Foreign Affairs Ministry secretary-general Mohd Radzi Abdul Rahman led the Malaysian team.
The team will next meet in Kuala Lumpur later this month, and complete its work by the end of the year.
Land swop deal: Joint team holds 4th meeting
OFFICIALS from Singapore and Malaysia met here earlier this week to discuss the implementation details arising from an agreement on Malayan Railway land.
It is the fourth meeting of the Malaysia-Singapore Joint Implementation Team, set up in May after breakthrough negotiations between the two countries' prime ministers. The team also met in July, August and October.
Prime Minister Lee Hsien Loong and Malaysian Prime Minister Najib Razak agreed in May to move forward on issues arising from the 1990 Points of Agreement on Malayan Railway land.
These included relocating the Malayan Railway train station from Tanjong Pagar to Woodlands. In September, both countries agreed to a land swop deal.
It involved a swop of six parcels of land in the Marina South and Ophir-Rochor areas in exchange for three parcels of railway land in Tanjong Pagar, Woodlands and Kranji and another three in Bukit Timah.
The Marina South and Ophir-Rochor land will be developed by M-S Pte Ltd, which is 60 per cent owned by Malaysia's Khazanah Nasional and 40 per cent owned by Singapore's Temasek Holdings.
The meeting was held 'in a cordial atmosphere', and both sides were pleased with the progress made by the sub-committees and working groups, a joint press statement said.
Foreign Affairs Ministry Permanent Secretary Bilahari Kausikan led the Singapore delegation, while Foreign Affairs Ministry secretary-general Mohd Radzi Abdul Rahman led the Malaysian team.
The team will next meet in Kuala Lumpur later this month, and complete its work by the end of the year.
ST : Singapore now more expensive for expats
Dec 03,2010
Singapore now more expensive for expats
It moves from 9th to 8th position in Asia, and 79th to 42nd globally: Survey
By Yasmine Yahya
OVER the past six months, Singapore has become even more expensive for expatriates to live in, climbing from ninth spot in Asia to No. 8, said the latest cost of living survey from ECA International.
Rising prices and the strengthening of the Singapore dollar against major currencies propelled Singapore in the cost of living stakes from 79th position globally to 42nd over the past year.
That means it is more expensive for expatriates to live in Singapore than Central London which is ranked 50th worldwide, but not New York, which came in at No.39, based on ECA's latest twice-yearly survey, released yesterday.
However, it is not all doom and gloom. ECA International regional director for Asia Lee Quane said the rise in Singapore's cost of living is a double-edged sword.
'For companies bringing senior talent into Singapore, the cost of an assignment will increase as higher allowances are required to maintain employees' purchasing power. On the other hand, companies sending employees out of Singapore can apply lower cost of living allowances and still provide sufficient remuneration to maintain a good standard of living.'
The difference between the cost of living in Singapore and that of Hong Kong, the sixth most expensive city in Asia, is also rapidly narrowing, he noted. Two years ago there was a 15 per cent gap in the cost of living between Hong Kong and Singapore. This gap fell to 7 per cent a year ago and now stands at just 2 per cent.
TV producer Sha Liang, 23, who hails from the United States, told The Straits Times that she does feel that certain costs in Singapore are high. Her monthly rent, for example, takes up a third of her salary.
However, an expatriate's cost of living will largely depend on his or her lifestyle, she added. 'If you eat at hawker centres every day, that's affordable. But if you go out with friends a lot and go to nice restaurants, then those bills do add up quickly.'
Overall, Tokyo maintained its position as the most expensive location in Asia and worldwide for expatriates. In fact, ECA International noted that the gap between Tokyo and other locations in the region is widening: a year ago, the difference in cost of living between Tokyo and Hong Kong was 45 per cent. Today, it is 55 per cent.
Stronger currencies have led to HR managers having to increase their cost of living allowances for those in Seoul and Tokyo. Even in typically low-cost locations such as Bangkok and Jakarta, where the relative low cost of living has increased recently, HR managers are having to consider introducing allowances. Equally, the weakening of the euro has seen the cost of living in Dublin plunge.
Worldwide, Luanda in Angola was the second most expensive place after Tokyo. The Japanese city of Nagoya came third.
The survey calculates cost of living allowances for employees assigned around the world. It compiles data on allowances for goods and services consumed by them, such as food, drinks, tobacco and clothing.
yasminey@sph.com.sg
--------------------------------------------------------------------------------
Most expensive Asian cities
1. Tokyo
2. Nagoya
3. Yokohama
4. Kobe
5. Seoul
6. Hong Kong
7. Shanghai
8. Singapore
9. Beijing
10. Busan
Singapore now more expensive for expats
It moves from 9th to 8th position in Asia, and 79th to 42nd globally: Survey
By Yasmine Yahya
OVER the past six months, Singapore has become even more expensive for expatriates to live in, climbing from ninth spot in Asia to No. 8, said the latest cost of living survey from ECA International.
Rising prices and the strengthening of the Singapore dollar against major currencies propelled Singapore in the cost of living stakes from 79th position globally to 42nd over the past year.
That means it is more expensive for expatriates to live in Singapore than Central London which is ranked 50th worldwide, but not New York, which came in at No.39, based on ECA's latest twice-yearly survey, released yesterday.
However, it is not all doom and gloom. ECA International regional director for Asia Lee Quane said the rise in Singapore's cost of living is a double-edged sword.
'For companies bringing senior talent into Singapore, the cost of an assignment will increase as higher allowances are required to maintain employees' purchasing power. On the other hand, companies sending employees out of Singapore can apply lower cost of living allowances and still provide sufficient remuneration to maintain a good standard of living.'
The difference between the cost of living in Singapore and that of Hong Kong, the sixth most expensive city in Asia, is also rapidly narrowing, he noted. Two years ago there was a 15 per cent gap in the cost of living between Hong Kong and Singapore. This gap fell to 7 per cent a year ago and now stands at just 2 per cent.
TV producer Sha Liang, 23, who hails from the United States, told The Straits Times that she does feel that certain costs in Singapore are high. Her monthly rent, for example, takes up a third of her salary.
However, an expatriate's cost of living will largely depend on his or her lifestyle, she added. 'If you eat at hawker centres every day, that's affordable. But if you go out with friends a lot and go to nice restaurants, then those bills do add up quickly.'
Overall, Tokyo maintained its position as the most expensive location in Asia and worldwide for expatriates. In fact, ECA International noted that the gap between Tokyo and other locations in the region is widening: a year ago, the difference in cost of living between Tokyo and Hong Kong was 45 per cent. Today, it is 55 per cent.
Stronger currencies have led to HR managers having to increase their cost of living allowances for those in Seoul and Tokyo. Even in typically low-cost locations such as Bangkok and Jakarta, where the relative low cost of living has increased recently, HR managers are having to consider introducing allowances. Equally, the weakening of the euro has seen the cost of living in Dublin plunge.
Worldwide, Luanda in Angola was the second most expensive place after Tokyo. The Japanese city of Nagoya came third.
The survey calculates cost of living allowances for employees assigned around the world. It compiles data on allowances for goods and services consumed by them, such as food, drinks, tobacco and clothing.
yasminey@sph.com.sg
--------------------------------------------------------------------------------
Most expensive Asian cities
1. Tokyo
2. Nagoya
3. Yokohama
4. Kobe
5. Seoul
6. Hong Kong
7. Shanghai
8. Singapore
9. Beijing
10. Busan
ST : $21m facelift for six private estates
Dec 03,2010
$21m facelift for six private estates
Another $3m will fund small-scale upgrades to benefit 200,000 homes
Mr Mah checking out a scarecrow created by residents in Jalan Remanja Park, during a visit to Hillview estate yesterday to view its upgraded facilities. With him are Hong Kah GRC MP Ang Mong Seng (second from right) and Sembawang GRC MP Maliki Osman (third from right). --ST PHOTO: NEO XIAOBIN
By Esther Teo
MORE than 5,000 private households are set to benefit from a $21 million facelift under the Government's Estate Upgrading Programme (EUP).
The properties, spread across six private estates, will see the money spent on the upgrading of parks, playgrounds and drainage infrastructure. Work is expected to be completed in three years.
The Ministry of National Development (MND) announced yesterday that the Jalan Mata Ayer, Faber Hills, Roxy, Lucky Heights and Cambridge estates, plus the Beng Wan, Moonstone Lane and St Michael's estate, have been selected to benefit from the seventh EUP.
An additional $3 million has been approved under the Interim EUP (I-EUP), which targets small-scale and timely improvements, to benefit an additional 200,000 private residential homes.
National Development Minister Mah Bow Tan said yesterday during a site visit to Hillview estate in Upper Bukit Timah that EUP improvements have helped bring residents together. The estate was in the fourth EUP batch and upgrading works were completed in July.
'It's not just the physical improvements... You provide the facilities, then you have an active neighbourhood community, and together they'll use these facilities properly and bring new residents in to take part in activities.'
The EUP was launched in 2000 and is targeted at older private estates, often more than 30 years old and with scope for enhancement.
The MND spent $117 million in upgrading 35 private estates, comprising more than 29,000 households, in its six previous batches. And between five and eight estates are expected to be selected every 11/2 to two years for the EUP.
The three-year I-EUP pilot scheme - which was launched in June last year - will look at providing faster upgrades of features such as footpaths, rain shelters, covered linkways and directional signs.
The initial $3 million will benefit private estates under 49 of the 68 eligible Citizens Consultative Committees (CCCs), with $25 million in total set aside over a three-year period.
Mr Mah said that as the I-EUP is a newly introduced programme, publicity for the initiative will be boosted so that more CCCs become familiar with it.
Residents in line to benefit from the I-EUP can look forward to using the new facilities as early as the second quarter of next year once building works are completed, MND said.
MND is also collaborating with national water agency PUB to integrate 'active, beautiful, clean waters' design features such as rain gardens and wetlands into the overall EUP upgrading plans.
And Windsor Park estate in Upper Thomson, which was in the EUP's sixth batch, has been selected for a pilot project.
Mr Mah said opposition wards will not be left out of the upgrading programme, noting that Sennett estate in Potong Pasir had been selected for the EUP's third batch in 2003.
'We select them based on criteria. We've already selected Potong Pasir. I don't see any reason why we cannot select Hougang, but the main thing is if they satisfy the criteria,' he added.
esthert@sph.com.sg
--------------------------------------------------------------------------------
Previous batches
ESTATES that had been selected for the Estate Upgrading Programme in earlier batches include:
BATCH 5 (FEBRUARY 2007)
Happy Park
Yew Lian and Thomson Park
Mount Sinai
Chestnut
East View Garden
Opera Estate
Braddell Heights
BATCH 6 (NOVEMBER 2008)
Seletar and Gerald Drive
Kebun Bahru Villas
Windsor Park and Thomson Ridge
Charlton Park
Sembawang Springs
Jalan Bunga Rampai
Lorong Melayu
Phoenix
$21m facelift for six private estates
Another $3m will fund small-scale upgrades to benefit 200,000 homes
Mr Mah checking out a scarecrow created by residents in Jalan Remanja Park, during a visit to Hillview estate yesterday to view its upgraded facilities. With him are Hong Kah GRC MP Ang Mong Seng (second from right) and Sembawang GRC MP Maliki Osman (third from right). --ST PHOTO: NEO XIAOBIN
By Esther Teo
MORE than 5,000 private households are set to benefit from a $21 million facelift under the Government's Estate Upgrading Programme (EUP).
The properties, spread across six private estates, will see the money spent on the upgrading of parks, playgrounds and drainage infrastructure. Work is expected to be completed in three years.
The Ministry of National Development (MND) announced yesterday that the Jalan Mata Ayer, Faber Hills, Roxy, Lucky Heights and Cambridge estates, plus the Beng Wan, Moonstone Lane and St Michael's estate, have been selected to benefit from the seventh EUP.
An additional $3 million has been approved under the Interim EUP (I-EUP), which targets small-scale and timely improvements, to benefit an additional 200,000 private residential homes.
National Development Minister Mah Bow Tan said yesterday during a site visit to Hillview estate in Upper Bukit Timah that EUP improvements have helped bring residents together. The estate was in the fourth EUP batch and upgrading works were completed in July.
'It's not just the physical improvements... You provide the facilities, then you have an active neighbourhood community, and together they'll use these facilities properly and bring new residents in to take part in activities.'
The EUP was launched in 2000 and is targeted at older private estates, often more than 30 years old and with scope for enhancement.
The MND spent $117 million in upgrading 35 private estates, comprising more than 29,000 households, in its six previous batches. And between five and eight estates are expected to be selected every 11/2 to two years for the EUP.
The three-year I-EUP pilot scheme - which was launched in June last year - will look at providing faster upgrades of features such as footpaths, rain shelters, covered linkways and directional signs.
The initial $3 million will benefit private estates under 49 of the 68 eligible Citizens Consultative Committees (CCCs), with $25 million in total set aside over a three-year period.
Mr Mah said that as the I-EUP is a newly introduced programme, publicity for the initiative will be boosted so that more CCCs become familiar with it.
Residents in line to benefit from the I-EUP can look forward to using the new facilities as early as the second quarter of next year once building works are completed, MND said.
MND is also collaborating with national water agency PUB to integrate 'active, beautiful, clean waters' design features such as rain gardens and wetlands into the overall EUP upgrading plans.
And Windsor Park estate in Upper Thomson, which was in the EUP's sixth batch, has been selected for a pilot project.
Mr Mah said opposition wards will not be left out of the upgrading programme, noting that Sennett estate in Potong Pasir had been selected for the EUP's third batch in 2003.
'We select them based on criteria. We've already selected Potong Pasir. I don't see any reason why we cannot select Hougang, but the main thing is if they satisfy the criteria,' he added.
esthert@sph.com.sg
--------------------------------------------------------------------------------
Previous batches
ESTATES that had been selected for the Estate Upgrading Programme in earlier batches include:
BATCH 5 (FEBRUARY 2007)
Happy Park
Yew Lian and Thomson Park
Mount Sinai
Chestnut
East View Garden
Opera Estate
Braddell Heights
BATCH 6 (NOVEMBER 2008)
Seletar and Gerald Drive
Kebun Bahru Villas
Windsor Park and Thomson Ridge
Charlton Park
Sembawang Springs
Jalan Bunga Rampai
Lorong Melayu
Phoenix
ST : Bukit Panjang EC site: CDL unit places top bid
Dec 03,2010
Bukit Panjang EC site: CDL unit places top bid
By Cheryl Lim
CITY Developments (CDL) unit Grand Isle Holdings has emerged as the top bidder for an executive condominium (EC) site in Segar Road.
Yesterday's tender results saw CDL's top bid of almost $182 million, or $271 per square foot per plot ratio (psf ppr), coming in 15.5 per cent ahead of the second-highest offer of $157.5 million, or $234 psf ppr, submitted by EL Development.
Three other bids were submitted - Opal Star and Lum Chang Building Contractors sent in a joint offer of $128.3 million, Pinnacle Realty bid $120 million, and Sim Lian Land came in with the lowest tender at $113 million.
A CDL spokesman said the developer has plans to build a 15- to 17-storey EC on the 1,936 sq ft site and, if awarded, it would be CDL's fourth EC project.
Previous ECs developed by CDL were The Esparis in Pasir Ris, The Florida in Hougang, and Nuovo in Ang Mo Kio.
Located in Bukit Panjang, the 99-year leasehold Segar Road site has a plot ratio of 3 and a maximum gross floor area of 5,806.6 sq ft. It can potentially yield an estimated 570 units.
Mr Joseph Tan, CBRE's residential executive director, said CDL's bid translates to a breakeven cost of $570 psf to $590 psf.
He added that there will be a market for the new EC project if it is priced
20 per cent to 25 per cent lower than nearby private condo Tree House, which sold at an average price of $830 psf in the second quarter of this year.
ECs are a hybrid of public and private housing with ownership and resale restrictions applying in the first 10 years, after which they are fully privatised.
Boasting private condo facilities, they are an attractive housing option for buyers who meet the eligibility criteria, including a monthly household income ceiling of $10,000.
Under the current Residential Property Act, foreign developers are subject to the stipulated project completion period of five years.
This rule, however, does not apply to local developers.
Bukit Panjang EC site: CDL unit places top bid
By Cheryl Lim
CITY Developments (CDL) unit Grand Isle Holdings has emerged as the top bidder for an executive condominium (EC) site in Segar Road.
Yesterday's tender results saw CDL's top bid of almost $182 million, or $271 per square foot per plot ratio (psf ppr), coming in 15.5 per cent ahead of the second-highest offer of $157.5 million, or $234 psf ppr, submitted by EL Development.
Three other bids were submitted - Opal Star and Lum Chang Building Contractors sent in a joint offer of $128.3 million, Pinnacle Realty bid $120 million, and Sim Lian Land came in with the lowest tender at $113 million.
A CDL spokesman said the developer has plans to build a 15- to 17-storey EC on the 1,936 sq ft site and, if awarded, it would be CDL's fourth EC project.
Previous ECs developed by CDL were The Esparis in Pasir Ris, The Florida in Hougang, and Nuovo in Ang Mo Kio.
Located in Bukit Panjang, the 99-year leasehold Segar Road site has a plot ratio of 3 and a maximum gross floor area of 5,806.6 sq ft. It can potentially yield an estimated 570 units.
Mr Joseph Tan, CBRE's residential executive director, said CDL's bid translates to a breakeven cost of $570 psf to $590 psf.
He added that there will be a market for the new EC project if it is priced
20 per cent to 25 per cent lower than nearby private condo Tree House, which sold at an average price of $830 psf in the second quarter of this year.
ECs are a hybrid of public and private housing with ownership and resale restrictions applying in the first 10 years, after which they are fully privatised.
Boasting private condo facilities, they are an attractive housing option for buyers who meet the eligibility criteria, including a monthly household income ceiling of $10,000.
Under the current Residential Property Act, foreign developers are subject to the stipulated project completion period of five years.
This rule, however, does not apply to local developers.
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