Mar 13, 2010
Illegal subletting: HDB to repossess man's flats
By Yeo Shang Long
IN A clear warning to those who sublet their flats illegally, the Housing Board (HDB) has moved to take back three apartments linked to a real estate agent who owns five private properties.
One flat to be repossessed belongs to the real estate agent, Mr Poh Boon Kay, 61, and his wife, Madam Khoo Kim Cheng, 52, who had illegally sublet their four-room flat in Bukit Batok.
The other two flats in Telok Blangah and Bukit Batok are owned by the couple's daughter and Madam Khoo's 91-year-old aunt respectively. Both flats were also illegally rented out.
He acted as agent for the elderly woman and collected rent on her behalf.
The HDB said it is taking legal action to take back the units.
It is the most serious case of illegal subletting in the last two years. Only three other flats have been compulsorily acquired in that time.
In November last year, the HDB checked and found that Mr Poh had sublet his flat to three Myanmar couples without HDB approval.
The Pohs, who were not living there at that time, had also breached the Minimum Occupation Period (MOP) of three years. This rule states that buyers who purchase resale flats without a housing grant from the Central Provident Fund Board have to live in the flat for three years before they can rent out the whole unit.
The HDB then told Mr Poh this was unauthorised, and that they were intending to repossess his flat. On Dec 23, the HDB pasted a notice of intention to compulsorily acquire his flat.
The HDB told The Straits Times yesterday that Mr Poh will continue to hold the title deeds until investigations are complete. It will then decide whether to take back the title deeds officially and compensate him to the amount of $125,000.
Mr Poh, who claims he paid $155,000 for the house, can lodge an appeal against the notice. When asked, he said he was intending to appeal.
Mr Poh, an ordinary member of the Institute of Estate Agents (IEA), pleaded ignorance of the three-year MOP; he said he had been told by the HDB's counter staff that he could sublet the flat after a year. He could not name the HDB employee.
But the HDB said that because of Mr Poh's links to the other illegal subletting cases, his claims of ignorance could not be substantiated.
'There is clear evidence that Mr Poh, a housing agent by profession, has been intentionally abusing HDB flats for monetary gains,' said the HDB spokesman.
Mr Poh said he had not seen the acquisition coming. He added: 'I can't believe a notice can be served within a month of the HDB giving a warning letter.'
He said it was more usual for the HDB to send a second warning, or even fine an errant owner first.
The Housing and Development Act says, however, that the HDB can compulsorily acquire a flat once it ascertains that the owner is illegally subletting it.
'HDB takes a stern view of unauthorised subletting, and will not hesitate to take strong action against those who flout the rules,' it said.
The Board added that it will bring Mr Poh's case to the attention of the IEA.
Mr Poh, who claims his daughter is stuck in the United States with marital problems, declined to discuss the cases involving her and his wife's aunt.
He said he did not know for sure when they bought their flats.
The HDB has taken action against 56 such owners in the last two years, dishing out punishments ranging from fines of $1,000 to $21,000, to repossessing the flats involved.
HDB added that there was no discernible upward trend.
Flat owners who wish to rent out their flats must obtain approval from the Board and fulfil the MOP. The current MOP for subletting flats is five years for flats bought directly from the HDB or resale flats purchased with a CPF Housing Grant, and three years for resale flats bought without the CPF grant.
About 682,000 flats are eligible for subletting, but only 3per cent of these flats are sublet.
yeoslong@sph.com.sg
Additional reporting by Joan Chew
Sunday, March 14, 2010
ST : Lift upgrading in Eunos resumes
Mar 13, 2010
Lift upgrading in Eunos resumes
HDB agrees to 10 of 15 requests from residents, ending 10-month delay
By Ang Yiying
WORKS on a lift upgrading project in Eunos that had been delayed for about 10 months restarted yesterday.
Progress was made at a meeting on Thursday when the Housing Board agreed to 10 out of 15 requests from unhappy residents.
The home owners in Blocks 411, 415 and 417 in Eunos Road 5 had protested that new lift shafts already built blocked light and ventilation to their flats.
The HDB, which stopped work in the middle of last year to attend to the grievances, agreed to modify the external lift shafts and install extra lighting and ventilation fins.
It did not agree to some other requests, such as replacing residents' windows with new slide and casement windows, and installing full-floor tiles and false ceilings for the lift lobbies.
Most of the dissenters said they wanted the project to move on.
One of them, Block 415 resident Lee Wong Mun, 61, a retired technical adviser, said: 'I think the lift (works) should go on, then the rest - the minor things - we can thrash out later.
'Some residents have problems climbing up stairs, especially the older ones.'
Altogether, 14 units out of 116 in each of the three U-shaped blocks had been affected by the new lifts, and some home owners had wanted them torn down.
HDB is picking up the tab for the 10 measures it is now extending, which will come up to $780,000.
The requests were gathered through a work group formed in January, comprising some unhappy residents as well as representatives from the residents' committee, town council and the HDB.
Another affected resident, Madam Shamshiyati Sayas, 54, an operations assistant who lives in Block 417, said she was not totally happy with the package but wanted a closure. 'What to do? You cannot turn back the clock.'
She said the unfinished works and construction site were an eyesore and could not be left indefinitely.
But others were unhappy that not all requests were granted.
Retiree Eng Ah Hee, 63, a resident in Block 417, said he did not accept HDB's reasons: ''Non-standard' and 'norms' are not good enough.'
But the HDB said it had agreed only to items that had an impact on the primary concerns of the light, view and ventilation being blocked.
Responding, Dr Ong Seh Hong, the MP for the precinct, said he felt HDB's solutions were reasonable.
He noted that some of the works not granted were also not part of lift upgrading programmes in other areas, and that HDB had to be prudent with public funds.
'I think there must be a line drawn. Those that are for mitigating (the problem) have been agreed to,' he said.
With works resuming, the entire project - which was supposed to have been completed this year - will now be completed by the second quarter of next year.
Yesterday, an HDB spokesman said: 'This will be the final package of goodwill and mitigation measures that HDB will be able to provide to affected residents.
'HDB cannot continue to engage in discussions to improve the package, as works have been delayed by 10 months. It is also not fair to the majority of residents who are waiting for the lift upgrading works to be completed.'
One of them is Block 417 resident Goh Tee Juan, a 59-year-old plumber living on a non-lift landing floor, who said in Mandarin, 'Of course, I hope for the lifts to be operational. They will be more convenient.'
But he said he could empathise with the predicament of the home owners who were getting less light and air.
ayiying@sph.com.sg
--------------------------------------------------------------------------------
What HDB is funding
CHANGES AGREED TO:
· Rebuilding part of the lift lobby wall facing flats so it is angled and becomes a niche for potted plants on alternate floors.
· Replacing part of the same wall with horizontal and vertical fins to allow ventilation.
· Adding daytime lighting to the corridor outside the bedrooms of blocked flats.
· Adding ventilation fans to bedrooms and living rooms, if residents want them.
· Using a different material for the canopy at lift lobbies to reduce the sound of rain.
· Rounding the sharp edges of the column facing front doors.
· Using daytime lighting instead of warm lighting at lift lobbies.
IN ADDITION:
· Residents may also choose to replace their bedroom windows with windows that are angled, with HDB paying 80 per cent of the cost as a goodwill measure.
Workers carrying out lift upgrading works at Block 411, Eunos Road 5 yesterday. Works had been delayed because some home owners protested that new lift shafts already built blocked light and ventilation to their flats. the HDB agreed to modify the external shafts. -- ST PHOTO: CHEW SENG KIM
Lift upgrading in Eunos resumes
HDB agrees to 10 of 15 requests from residents, ending 10-month delay
By Ang Yiying
WORKS on a lift upgrading project in Eunos that had been delayed for about 10 months restarted yesterday.
Progress was made at a meeting on Thursday when the Housing Board agreed to 10 out of 15 requests from unhappy residents.
The home owners in Blocks 411, 415 and 417 in Eunos Road 5 had protested that new lift shafts already built blocked light and ventilation to their flats.
The HDB, which stopped work in the middle of last year to attend to the grievances, agreed to modify the external lift shafts and install extra lighting and ventilation fins.
It did not agree to some other requests, such as replacing residents' windows with new slide and casement windows, and installing full-floor tiles and false ceilings for the lift lobbies.
Most of the dissenters said they wanted the project to move on.
One of them, Block 415 resident Lee Wong Mun, 61, a retired technical adviser, said: 'I think the lift (works) should go on, then the rest - the minor things - we can thrash out later.
'Some residents have problems climbing up stairs, especially the older ones.'
Altogether, 14 units out of 116 in each of the three U-shaped blocks had been affected by the new lifts, and some home owners had wanted them torn down.
HDB is picking up the tab for the 10 measures it is now extending, which will come up to $780,000.
The requests were gathered through a work group formed in January, comprising some unhappy residents as well as representatives from the residents' committee, town council and the HDB.
Another affected resident, Madam Shamshiyati Sayas, 54, an operations assistant who lives in Block 417, said she was not totally happy with the package but wanted a closure. 'What to do? You cannot turn back the clock.'
She said the unfinished works and construction site were an eyesore and could not be left indefinitely.
But others were unhappy that not all requests were granted.
Retiree Eng Ah Hee, 63, a resident in Block 417, said he did not accept HDB's reasons: ''Non-standard' and 'norms' are not good enough.'
But the HDB said it had agreed only to items that had an impact on the primary concerns of the light, view and ventilation being blocked.
Responding, Dr Ong Seh Hong, the MP for the precinct, said he felt HDB's solutions were reasonable.
He noted that some of the works not granted were also not part of lift upgrading programmes in other areas, and that HDB had to be prudent with public funds.
'I think there must be a line drawn. Those that are for mitigating (the problem) have been agreed to,' he said.
With works resuming, the entire project - which was supposed to have been completed this year - will now be completed by the second quarter of next year.
Yesterday, an HDB spokesman said: 'This will be the final package of goodwill and mitigation measures that HDB will be able to provide to affected residents.
'HDB cannot continue to engage in discussions to improve the package, as works have been delayed by 10 months. It is also not fair to the majority of residents who are waiting for the lift upgrading works to be completed.'
One of them is Block 417 resident Goh Tee Juan, a 59-year-old plumber living on a non-lift landing floor, who said in Mandarin, 'Of course, I hope for the lifts to be operational. They will be more convenient.'
But he said he could empathise with the predicament of the home owners who were getting less light and air.
ayiying@sph.com.sg
--------------------------------------------------------------------------------
What HDB is funding
CHANGES AGREED TO:
· Rebuilding part of the lift lobby wall facing flats so it is angled and becomes a niche for potted plants on alternate floors.
· Replacing part of the same wall with horizontal and vertical fins to allow ventilation.
· Adding daytime lighting to the corridor outside the bedrooms of blocked flats.
· Adding ventilation fans to bedrooms and living rooms, if residents want them.
· Using a different material for the canopy at lift lobbies to reduce the sound of rain.
· Rounding the sharp edges of the column facing front doors.
· Using daytime lighting instead of warm lighting at lift lobbies.
IN ADDITION:
· Residents may also choose to replace their bedroom windows with windows that are angled, with HDB paying 80 per cent of the cost as a goodwill measure.
Workers carrying out lift upgrading works at Block 411, Eunos Road 5 yesterday. Works had been delayed because some home owners protested that new lift shafts already built blocked light and ventilation to their flats. the HDB agreed to modify the external shafts. -- ST PHOTO: CHEW SENG KIM
ST : HDB started checks after getting tip-off
Mar 13, 2010
HDB started checks after getting tip-off
IT ALL started with a tip-off to the Housing Board (HDB): A four-room flat in Bukit Batok was being rented out illegally.
Further checks confirmed that the flat - bought by Mr Poh Boon Kay and his wife Khoo Kim Cheng in June 2007 - had been sublet without the HDB's prior approval to three Myanmar couples at a monthly rent of $1,900.
Mr Poh, a housing agent, and his family did not live in the flat.
They were told to evict the sub-tenants immediately on Nov 25 last year, failing which the board would take possession of the flat.
But the sub-tenants did not go.
On Dec 23, the HDB sent Mr Poh a notice to say it would take back his flat.
But Mr Poh, 61, claimed his tenants had agreed in writing to vacate the flat by the end of December.
The next day, he and his wife appealed against the HDB's move. They said they intended to sell the flat to one of the tenants, who needed to sort out his finances.
The HDB then interviewed the couple on Jan 5 this year, during which they claimed they did not know that they needed prior approval to sublet the flat.
They also claimed that they were not aware of the minimum occupation period (MOP) of three years before they were allowed to sublet the flat.
But further HDB investigations showed that Mr Poh was connected with two other cases of unauthorised subletting of flats belonging to his relatives in Bukit Batok and Telok Blangah.
The flat in Bukit Batok belonged to his aunt, aged 91, and had been sublet to Myanmar monks since July last year for a monthly rent of $1,400.
The monks used it as a meditation centre, and the rent was paid to Mr Poh, who acted as his aunt's housing agent.
The Telok Blangah flat, meanwhile, was owned by his daughter.
It had been rented out for $900 monthly since May.
Checks with neighbours confirmed that Mr Poh's daughter was not living there.
Both flats were also sublet without obtaining the HDB's prior consent, and the board said that it would be taking steps to acquire them compulsorily.
In a statement yesterday, the HDB said that the additional cases of illegal subletting by Mr Poh showed that his claims of being unaware of the HDB's rules cannot be substantiated.
'These regulations are publicly available from many sources,' it said, adding that 'there is clear evidence that Mr Poh, a housing agent by profession, has been intentionally abusing HDB flats for monetary gains'.
It concluded: 'As he has blatantly flouted HDB's rules, there are no grounds for leniency.'
HDB started checks after getting tip-off
IT ALL started with a tip-off to the Housing Board (HDB): A four-room flat in Bukit Batok was being rented out illegally.
Further checks confirmed that the flat - bought by Mr Poh Boon Kay and his wife Khoo Kim Cheng in June 2007 - had been sublet without the HDB's prior approval to three Myanmar couples at a monthly rent of $1,900.
Mr Poh, a housing agent, and his family did not live in the flat.
They were told to evict the sub-tenants immediately on Nov 25 last year, failing which the board would take possession of the flat.
But the sub-tenants did not go.
On Dec 23, the HDB sent Mr Poh a notice to say it would take back his flat.
But Mr Poh, 61, claimed his tenants had agreed in writing to vacate the flat by the end of December.
The next day, he and his wife appealed against the HDB's move. They said they intended to sell the flat to one of the tenants, who needed to sort out his finances.
The HDB then interviewed the couple on Jan 5 this year, during which they claimed they did not know that they needed prior approval to sublet the flat.
They also claimed that they were not aware of the minimum occupation period (MOP) of three years before they were allowed to sublet the flat.
But further HDB investigations showed that Mr Poh was connected with two other cases of unauthorised subletting of flats belonging to his relatives in Bukit Batok and Telok Blangah.
The flat in Bukit Batok belonged to his aunt, aged 91, and had been sublet to Myanmar monks since July last year for a monthly rent of $1,400.
The monks used it as a meditation centre, and the rent was paid to Mr Poh, who acted as his aunt's housing agent.
The Telok Blangah flat, meanwhile, was owned by his daughter.
It had been rented out for $900 monthly since May.
Checks with neighbours confirmed that Mr Poh's daughter was not living there.
Both flats were also sublet without obtaining the HDB's prior consent, and the board said that it would be taking steps to acquire them compulsorily.
In a statement yesterday, the HDB said that the additional cases of illegal subletting by Mr Poh showed that his claims of being unaware of the HDB's rules cannot be substantiated.
'These regulations are publicly available from many sources,' it said, adding that 'there is clear evidence that Mr Poh, a housing agent by profession, has been intentionally abusing HDB flats for monetary gains'.
It concluded: 'As he has blatantly flouted HDB's rules, there are no grounds for leniency.'
ST : Rush for condo units despite record prices
Mar 13, 2010
Rush for condo units despite record prices
100 units of The Vision, a mass market project, sold out upon release
By Joyce Teo
BUYERS have snapped up units at a West Coast condominium despite the developer setting record prices for a mass market project.
Cheung Kong (Holdings) has sold all 100 units of The Vision released for its Phase 1 sale at prices 'from $1,000 to $1,200 per sq ft (psf)' for the two- to four-bedroom units, according to sales manager Cannas Ho yesterday.
However, market talk suggests that around 130 units or more have been booked. Sales apparently started on Thursday, when buyers handed over their cheques to confirm sales of 80 or so units without even viewing the showflat.
'The response is unexpected. However, it proves that there is strong demand for mass market homes,' said Colliers International's director for research and advisory, Ms Tay Huey Ying.
The Hong Kong-based developer said the 100 units sold included two penthouses and 'nearly half of the 14 strata terrace units'.
The Vision, a 99-year leasehold condo across the road from West Coast Park, has 281 apartments and 14 strata terrace units.
It is next to Blue Horizon, where units in the resale market have gone for $764 to $841 psf this year.
Ms Ho told a media briefing on Wednesday that The Vision will be the most luxurious building in the area.
She said then that the plan was to offer a second phase for sale by the end of the year.
The highest price done - for a strata terrace unit - was $3.2 million, she added yesterday.
About 70 per cent of the buyers are locals. The rest are from Malaysia, China and the United States.
More than 60 per cent are upgraders, while the rest are long-term investors in the leasing market, Ms Ho said.
Yesterday, Cheung Kong would say only that it had sold 100 units and that it would release another 20 units over the weekend.
A property expert said some buyers are clearly motivated by low interest rates and the fear of prices rising further, given the high land bids seen in recent tenders.
Colliers' Ms Tay said: 'There's a possibility that these record prices can help to raise the negotiation power of home owners in the vicinity in asking for higher prices.
'It is also likely to have the effect of raising the value of mass market homes in Singapore.'
joyceteo@sph.com.sg
Potential buyers packing the showroom of the West Coast development during its soft launch yesterday. -- PHOTO: CHEUNG KONG (HOLDINGS)
Rush for condo units despite record prices
100 units of The Vision, a mass market project, sold out upon release
By Joyce Teo
BUYERS have snapped up units at a West Coast condominium despite the developer setting record prices for a mass market project.
Cheung Kong (Holdings) has sold all 100 units of The Vision released for its Phase 1 sale at prices 'from $1,000 to $1,200 per sq ft (psf)' for the two- to four-bedroom units, according to sales manager Cannas Ho yesterday.
However, market talk suggests that around 130 units or more have been booked. Sales apparently started on Thursday, when buyers handed over their cheques to confirm sales of 80 or so units without even viewing the showflat.
'The response is unexpected. However, it proves that there is strong demand for mass market homes,' said Colliers International's director for research and advisory, Ms Tay Huey Ying.
The Hong Kong-based developer said the 100 units sold included two penthouses and 'nearly half of the 14 strata terrace units'.
The Vision, a 99-year leasehold condo across the road from West Coast Park, has 281 apartments and 14 strata terrace units.
It is next to Blue Horizon, where units in the resale market have gone for $764 to $841 psf this year.
Ms Ho told a media briefing on Wednesday that The Vision will be the most luxurious building in the area.
She said then that the plan was to offer a second phase for sale by the end of the year.
The highest price done - for a strata terrace unit - was $3.2 million, she added yesterday.
About 70 per cent of the buyers are locals. The rest are from Malaysia, China and the United States.
More than 60 per cent are upgraders, while the rest are long-term investors in the leasing market, Ms Ho said.
Yesterday, Cheung Kong would say only that it had sold 100 units and that it would release another 20 units over the weekend.
A property expert said some buyers are clearly motivated by low interest rates and the fear of prices rising further, given the high land bids seen in recent tenders.
Colliers' Ms Tay said: 'There's a possibility that these record prices can help to raise the negotiation power of home owners in the vicinity in asking for higher prices.
'It is also likely to have the effect of raising the value of mass market homes in Singapore.'
joyceteo@sph.com.sg
Potential buyers packing the showroom of the West Coast development during its soft launch yesterday. -- PHOTO: CHEUNG KONG (HOLDINGS)
ST : Water World
Mar 13, 2010
life! home and garden
Water World
By tay suan chiang
Imagine walking along a horseshoe-shaped bridge on a Sunday morning, catching the first glimpse of the sun as it rises from a waterway.
Or in the evening, heading to another similarly shaped bridge, but this one with a shaded dome, where you can see the setting sun reflected in the water.
And best of all, there is no need to travel overseas to enjoy these scenes.
By the end of the year, all this will be possible when a 4.2km waterway at Punggol is completed.
Besides viewing sunrises and sunsets, visitors to the more than $25 million waterway, called My Waterway@Punggol, will be able to kayak or canoe as well as dine alfresco.
Four footbridges will provide access to both banks of the promenade. Two of them will be prime spots to enjoy sunrise and sunset views.
Construction of the waterway is underway on an empty field in Punggol that is parallel to Punggol Drive. The waterway is being built by damming two rivers at the east and west of Punggol, the Sungei Serangoon and Sungei Punggol, to form two reservoirs to meet Singapore's increasing water needs.
When completed, the waterway will link the two reservoirs to transfer water from one to the other.
Mr Alan Tan, principal architect and a deputy managing director at the Housing Board (HDB), which is in charge of the project, says that together with national water agency PUB, they saw that the waterway could 'complement the housing parcel for waterfront living'.
In May 2008, a landscape masterplan competition for the waterway was announced.
Local firm Surbana International Consultants and its Japanese partner Sen Inc were named winners in December that year.
The winning proposal not only showcased what could be done along the waterway, but also featured four distinctive footbridges that were both functional and reflective of the surroundings and Punggol's history.
'We want to give visitors an experiential journey from one end of the waterway to the other,' says Mr Tan.
Surbana's senior architectural associate Bonita Tan says the bridges are about 1km apart, helping give easy access to both sides of the 20m- to 60m-wide, and 4m-deep, waterway.
She adds that the two footbridges where the waterway meets the two rivers are designed to project out into the rivers, so visitors can fully enjoy the views of the sun rising and setting.
Another bridge, which resembles stilts on water, has been nicknamed the 'kelong' bridge.
'We wanted to bring home the idea of old Punggol,' says Ms Tan.
Back in the early days, Punggol was a fishing village and there were many kelongs that dotted the area. 'Walking on this bridge gives the experience of walking on water, like on a kelong,' she adds.
The last bridge, which will lead to a future commercial centre, has a more modern look. 'But it will have an undulating form that reflects the nature of the landscape,' says Ms Tan.
To make the bridges blend in with the surroundings, she says materials such as composite timber and steel, which will be painted for a more rustic look, will be used.
'There will also be plenty of greenery on the bridges,' she adds.
The team is also working on creating a heritage trail along the waterway to remind visitors of Punggol's transformation.
For example, photographs of Punggol during its early days will be put up along the waterway.
On a 280m-long wall at Punggol town centre, there will be panels depicting the old Punggol.
'It could be motifs of fishing villages, or even chilli crab, since the dish is well-known here,' suggests Mr Tan.
My Waterway @ Punggol is the first of its kind to be built in Singapore. It is part of the transformation plan to turn Punggol into a waterfront town.
Catching the sunset at Punggol
Plans for Punggol's makeover were first announced in 1996, by then Prime Minister Goh Chok Tong. But the Asian financial crisis halted the town's development.
Developments have accelerated in the last two years since Prime Minister Lee Hsien Loong offered a new vision for it in his 2007 National Day Rally Speech.
Today, the town has a population of about 53,600 and this is projected to grow to 70,000 by next year.
The Government aims to build an extra 21,000 homes along the waterway, comprising 60 per cent HDB flats and 40 per cent private homes.
Last November, the HDB unveiled the winning design for the first batch of flats that will line the waterway.
Designed by international architectural firm Group8asia and local firm Aedas, there will be 1,200 flats featuring sky terraces, roof gardens and panoramic views of the Punggol Waterway.
The HDB hopes to offer these flats for sale this year and residents are expected to get their flats by 2014 or 2015.
While Punggol resident Tan Bee Bee, 24, is not living near the waterway, she is excited about it. The tertiary student lives a five-minute drive away.
'I can imagine it will be so scenic then and I won't have to travel to East Coast Park to view the sunset,' she says.
taysc@sph.com.sg
--------------------------------------------------------------------------------
'We wanted to bring home the idea of old Punggol'
Surbana's senior architectural associate Bonita Tan on building a bridge along My Waterway @ Punggol that resembles a kelong
Apart from East Coast Park, Punggol's Sunrise Gateway (above) is the next place to catch sunrises. Located near Sungei Serangoon, it offers unblocked scenery views and has bridges that extend out to the water. -- PHOTOS: HDB
life! home and garden
Water World
By tay suan chiang
Imagine walking along a horseshoe-shaped bridge on a Sunday morning, catching the first glimpse of the sun as it rises from a waterway.
Or in the evening, heading to another similarly shaped bridge, but this one with a shaded dome, where you can see the setting sun reflected in the water.
And best of all, there is no need to travel overseas to enjoy these scenes.
By the end of the year, all this will be possible when a 4.2km waterway at Punggol is completed.
Besides viewing sunrises and sunsets, visitors to the more than $25 million waterway, called My Waterway@Punggol, will be able to kayak or canoe as well as dine alfresco.
Four footbridges will provide access to both banks of the promenade. Two of them will be prime spots to enjoy sunrise and sunset views.
Construction of the waterway is underway on an empty field in Punggol that is parallel to Punggol Drive. The waterway is being built by damming two rivers at the east and west of Punggol, the Sungei Serangoon and Sungei Punggol, to form two reservoirs to meet Singapore's increasing water needs.
When completed, the waterway will link the two reservoirs to transfer water from one to the other.
Mr Alan Tan, principal architect and a deputy managing director at the Housing Board (HDB), which is in charge of the project, says that together with national water agency PUB, they saw that the waterway could 'complement the housing parcel for waterfront living'.
In May 2008, a landscape masterplan competition for the waterway was announced.
Local firm Surbana International Consultants and its Japanese partner Sen Inc were named winners in December that year.
The winning proposal not only showcased what could be done along the waterway, but also featured four distinctive footbridges that were both functional and reflective of the surroundings and Punggol's history.
'We want to give visitors an experiential journey from one end of the waterway to the other,' says Mr Tan.
Surbana's senior architectural associate Bonita Tan says the bridges are about 1km apart, helping give easy access to both sides of the 20m- to 60m-wide, and 4m-deep, waterway.
She adds that the two footbridges where the waterway meets the two rivers are designed to project out into the rivers, so visitors can fully enjoy the views of the sun rising and setting.
Another bridge, which resembles stilts on water, has been nicknamed the 'kelong' bridge.
'We wanted to bring home the idea of old Punggol,' says Ms Tan.
Back in the early days, Punggol was a fishing village and there were many kelongs that dotted the area. 'Walking on this bridge gives the experience of walking on water, like on a kelong,' she adds.
The last bridge, which will lead to a future commercial centre, has a more modern look. 'But it will have an undulating form that reflects the nature of the landscape,' says Ms Tan.
To make the bridges blend in with the surroundings, she says materials such as composite timber and steel, which will be painted for a more rustic look, will be used.
'There will also be plenty of greenery on the bridges,' she adds.
The team is also working on creating a heritage trail along the waterway to remind visitors of Punggol's transformation.
For example, photographs of Punggol during its early days will be put up along the waterway.
On a 280m-long wall at Punggol town centre, there will be panels depicting the old Punggol.
'It could be motifs of fishing villages, or even chilli crab, since the dish is well-known here,' suggests Mr Tan.
My Waterway @ Punggol is the first of its kind to be built in Singapore. It is part of the transformation plan to turn Punggol into a waterfront town.
Catching the sunset at Punggol
Plans for Punggol's makeover were first announced in 1996, by then Prime Minister Goh Chok Tong. But the Asian financial crisis halted the town's development.
Developments have accelerated in the last two years since Prime Minister Lee Hsien Loong offered a new vision for it in his 2007 National Day Rally Speech.
Today, the town has a population of about 53,600 and this is projected to grow to 70,000 by next year.
The Government aims to build an extra 21,000 homes along the waterway, comprising 60 per cent HDB flats and 40 per cent private homes.
Last November, the HDB unveiled the winning design for the first batch of flats that will line the waterway.
Designed by international architectural firm Group8asia and local firm Aedas, there will be 1,200 flats featuring sky terraces, roof gardens and panoramic views of the Punggol Waterway.
The HDB hopes to offer these flats for sale this year and residents are expected to get their flats by 2014 or 2015.
While Punggol resident Tan Bee Bee, 24, is not living near the waterway, she is excited about it. The tertiary student lives a five-minute drive away.
'I can imagine it will be so scenic then and I won't have to travel to East Coast Park to view the sunset,' she says.
taysc@sph.com.sg
--------------------------------------------------------------------------------
'We wanted to bring home the idea of old Punggol'
Surbana's senior architectural associate Bonita Tan on building a bridge along My Waterway @ Punggol that resembles a kelong
Apart from East Coast Park, Punggol's Sunrise Gateway (above) is the next place to catch sunrises. Located near Sungei Serangoon, it offers unblocked scenery views and has bridges that extend out to the water. -- PHOTOS: HDB
BT : Strong sales at Singapore launches of US, UK properties
Business Times - 13 Mar 2010
Strong sales at Singapore launches of US, UK properties
By CHEAH UI-HOON
SELL-OUT launches - that's what local property agents representing UK and US developers are enjoying.
The buying interest is thanks to depressed prices in the two markets and favourable currency rates; a confluence of factors that is giving Asians a buying opportunity like no other in recent years, leading some overseas developers to even bypass their own markets to market projects here.
When Savills Singapore marketed a high-end San Francisco condominium development last September, for example, it expected to sell fewer than 10 units. In the end, 24 sales for units ranging from US$650,000 to over US$3 million - were closed, says Julian Sedgewick, senior associate director for Savills Singapore's international residential sales section.
'It caught us by surprise, as we didn't expect this. It was the first American property we'd marketed in a couple of years,' says Mr Sedgewick, who heads the department created just last September to tap the overseas property investment market. San Francisco's Millennium Tower was built by New York-based Millennium Partners, which holds some Ritz Carlton franchises in the US. The developer had approached Savills to market the property in Asia, says Mr Sedgewick.
The weak US dollar and lower home prices are contributing to the foreign buying spate, especially as there's now some stability in the market, he says. 'For investors, this potentially can mean a 20 to 30 per cent capital growth in the next few years.'
The pound's current low is definitely the reason for the boom in London property sales in Singapore this year, says Stephen Ho, associate director of Colliers' International's projects team. 'The current 2.1 exchange rate is the biggest draw now, with high-end properties costing about 15-20 per cent less than they did in 2007,' he says.
Prices are creeping up, according to him. But Colliers is still seeing a 'steady flow of good buyers', rather than the kind of frenzied buying four or five years ago.
Developers are approaching international property agents, and Colliers expects to hold about three exhibitions a month in its bid to represent international developments at asking prices of £pounds;500-£pounds;800 psf in general, in mid-high to high-end projects.
Mr Ho's advice for would-be buyers is that they should be familiar with the area they're thinking of buying into. Colliers, for example, mainly markets projects in established locations, rather than regeneration areas in London.
Location, location and location is definitely the mantra when buying overseas, says Doris Tan, managing director of DST International Property Services which specialises in selling London property.
'With the booming international property market now, buyers have to be very careful about what they're buying,' says Ms Tan. A check with the newspaper this week showed some four to five London projects advertised daily, for example. 'Like all things, location is the most important as the properties in prime locations will come out alright when the economy picks up again,' she says. 'Cheap doesn't mean good.'
International selling activity picked up at the end of last year, says Ms Tan, with some projects, like the Central St Giles development marketed here last week, launching here instead of in London.
DST will also launch some New York property here, but a key drawback is capital gains tax and various other taxes in the US real estate market which the UK does not impose. 'That said, this is still a good time to consider investing in New York property, but one has to be prepared to hold it for five years or so,' says Ms Tan.
Who are the buyers? Agents are seeing a wide range - from first-time investors to parents who have children studying in London or US cities. 'About half are Singaporeans, followed by Malaysians and Indonesians and then about 5 per cent expatriates,' says Colliers' Mr Ho.
In London - by far the favoured and familiar market for Singaporeans - the majority buy as an investment, while the rest are mainly parents who buy properties for children studying or working there.
'Buyers include those who have made money from Asian property so they're now looking for another place to invest,' says Mr Ho.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
Strong sales at Singapore launches of US, UK properties
By CHEAH UI-HOON
SELL-OUT launches - that's what local property agents representing UK and US developers are enjoying.
The buying interest is thanks to depressed prices in the two markets and favourable currency rates; a confluence of factors that is giving Asians a buying opportunity like no other in recent years, leading some overseas developers to even bypass their own markets to market projects here.
When Savills Singapore marketed a high-end San Francisco condominium development last September, for example, it expected to sell fewer than 10 units. In the end, 24 sales for units ranging from US$650,000 to over US$3 million - were closed, says Julian Sedgewick, senior associate director for Savills Singapore's international residential sales section.
'It caught us by surprise, as we didn't expect this. It was the first American property we'd marketed in a couple of years,' says Mr Sedgewick, who heads the department created just last September to tap the overseas property investment market. San Francisco's Millennium Tower was built by New York-based Millennium Partners, which holds some Ritz Carlton franchises in the US. The developer had approached Savills to market the property in Asia, says Mr Sedgewick.
The weak US dollar and lower home prices are contributing to the foreign buying spate, especially as there's now some stability in the market, he says. 'For investors, this potentially can mean a 20 to 30 per cent capital growth in the next few years.'
The pound's current low is definitely the reason for the boom in London property sales in Singapore this year, says Stephen Ho, associate director of Colliers' International's projects team. 'The current 2.1 exchange rate is the biggest draw now, with high-end properties costing about 15-20 per cent less than they did in 2007,' he says.
Prices are creeping up, according to him. But Colliers is still seeing a 'steady flow of good buyers', rather than the kind of frenzied buying four or five years ago.
Developers are approaching international property agents, and Colliers expects to hold about three exhibitions a month in its bid to represent international developments at asking prices of £pounds;500-£pounds;800 psf in general, in mid-high to high-end projects.
Mr Ho's advice for would-be buyers is that they should be familiar with the area they're thinking of buying into. Colliers, for example, mainly markets projects in established locations, rather than regeneration areas in London.
Location, location and location is definitely the mantra when buying overseas, says Doris Tan, managing director of DST International Property Services which specialises in selling London property.
'With the booming international property market now, buyers have to be very careful about what they're buying,' says Ms Tan. A check with the newspaper this week showed some four to five London projects advertised daily, for example. 'Like all things, location is the most important as the properties in prime locations will come out alright when the economy picks up again,' she says. 'Cheap doesn't mean good.'
International selling activity picked up at the end of last year, says Ms Tan, with some projects, like the Central St Giles development marketed here last week, launching here instead of in London.
DST will also launch some New York property here, but a key drawback is capital gains tax and various other taxes in the US real estate market which the UK does not impose. 'That said, this is still a good time to consider investing in New York property, but one has to be prepared to hold it for five years or so,' says Ms Tan.
Who are the buyers? Agents are seeing a wide range - from first-time investors to parents who have children studying in London or US cities. 'About half are Singaporeans, followed by Malaysians and Indonesians and then about 5 per cent expatriates,' says Colliers' Mr Ho.
In London - by far the favoured and familiar market for Singaporeans - the majority buy as an investment, while the rest are mainly parents who buy properties for children studying or working there.
'Buyers include those who have made money from Asian property so they're now looking for another place to invest,' says Mr Ho.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : HDB steps up enforcement on illegal subletting
Business Times - 13 Mar 2010
HDB steps up enforcement on illegal subletting
Action taken against 56 owners from January 2008 to December last year
By UMA SHANKARI
THE Housing & Development Board yesterday said it has stepped up enforcement action against home-owners who illegally sub-let their government-subsidised flats. The move comes weeks after HDB unveiled policy changes designed to hurt speculators, including increases to the minimum occupation period (MOP).
HDB said that from January 2008 to December last year, it took enforcement action against 56 flat owners. They faced penalties that ranged from fines of $1,000 to $21,000, to repossession of their flats.
In particular, HDB shared details of a case in which a Bukit Batok flat owned by Poh Boon Kay and his wife Khoo Kim Cheng was repossessed after there was 'blatant flouting of sub-letting rules'.
Mr and Mrs Poh own five private properties and Mr Poh is also a registered real estate agent. The couple did not fulfil the MOP of three years, which is required under HDB's rules before a whole flat can be sub-let. They claimed that they were not aware of this policy. Further investigations showed that Mr Poh was related to two other cases of unauthorised sub-letting, at Bukit Batok and Telok Blangah. HDB will also take legal action to compulsorily acquire those two flats.
It reiterated yesterday that owners who wish to sub- let their whole flat must obtain approval from HDB and fulfil the MOP. The MOP for sub-letting is now five years for flats bought direct from HDB and resale flats bought with any CPF housing grant, and three years for resale flats bought without the CPF housing grant.
Home-owners must also comply with HDB rules regarding the maximum number of sub-tenants allowed for the flat's size.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
HDB steps up enforcement on illegal subletting
Action taken against 56 owners from January 2008 to December last year
By UMA SHANKARI
THE Housing & Development Board yesterday said it has stepped up enforcement action against home-owners who illegally sub-let their government-subsidised flats. The move comes weeks after HDB unveiled policy changes designed to hurt speculators, including increases to the minimum occupation period (MOP).
HDB said that from January 2008 to December last year, it took enforcement action against 56 flat owners. They faced penalties that ranged from fines of $1,000 to $21,000, to repossession of their flats.
In particular, HDB shared details of a case in which a Bukit Batok flat owned by Poh Boon Kay and his wife Khoo Kim Cheng was repossessed after there was 'blatant flouting of sub-letting rules'.
Mr and Mrs Poh own five private properties and Mr Poh is also a registered real estate agent. The couple did not fulfil the MOP of three years, which is required under HDB's rules before a whole flat can be sub-let. They claimed that they were not aware of this policy. Further investigations showed that Mr Poh was related to two other cases of unauthorised sub-letting, at Bukit Batok and Telok Blangah. HDB will also take legal action to compulsorily acquire those two flats.
It reiterated yesterday that owners who wish to sub- let their whole flat must obtain approval from HDB and fulfil the MOP. The MOP for sub-letting is now five years for flats bought direct from HDB and resale flats bought with any CPF housing grant, and three years for resale flats bought without the CPF housing grant.
Home-owners must also comply with HDB rules regarding the maximum number of sub-tenants allowed for the flat's size.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
BT : Hike in rentals at revamped Northpoint
Business Times - 13 Mar 2010
Hike in rentals at revamped Northpoint
By UMA SHANKARI
FRASERS Centrepoint Trust's (FCT) Northpoint mall has seen a 20 per cent hike in average rentals and a 70 per cent climb in shopper traffic after it was expanded and revamped.
The mall, which is located right next to Yishun MRT station, increased its net lettable area by more than 50 per cent with the addition of a $165 million new wing and a $38.6 million asset enhancement initiative. The new NLA is 235,000 sq ft, up from 149,200 sq ft.
With all the changes, the number of shoppers who visit the mall every month has jumped to 2.4 million, from 1.4-1.6 million three-and-a-half years ago, said Wendy Low, general manager of Frasers Centrepoint Malls. She was speaking to reporters at the 'new' Northpoint's official opening ceremony yesterday.
The average rental fetched by the landlord has also gone up by about 20 per cent on a per square foot (psf) basis. Rents are understood to be in the region of $12-14 psf. 'The enhancement is part of FCT's strategic initiative in unlocking values in existing assets,' said Mrs Low.
From 90 shops previously, Northpoint has almost doubled the number of shops to 168. Occupancy stands at close to 100 per cent.
Next in line for asset enhancement is Causeway Point at Woodlands. Work at the 419,000 sq ft mall could begin sometime later this year. The $710 million Causeway Point is the largest mall in FCT's portfolio and draws the most visitors on a yearly basis.
FCT, which is part of the Fraser and Neave group, listed in 2006 with three malls in its portfolio - Causeway Point, Northpoint and Anchorpoint.
Earlier this year, it bought another two properties - the newly built extension to Northpoint and YewTee Point in Choa Chu Kang - for $290 million from parent company Frasers Centrepoint, the property arm of Fraser and Neave.
FCT shares lost one cent to close at $1.34 yesterday.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
EXPANDED
With the addition of a $165 million new wing and a $38.6 million asset enhancement initiative, net lettable area of Northpoint mall is now 235,000 sq ft, up from 149,200 sq ft
Hike in rentals at revamped Northpoint
By UMA SHANKARI
FRASERS Centrepoint Trust's (FCT) Northpoint mall has seen a 20 per cent hike in average rentals and a 70 per cent climb in shopper traffic after it was expanded and revamped.
The mall, which is located right next to Yishun MRT station, increased its net lettable area by more than 50 per cent with the addition of a $165 million new wing and a $38.6 million asset enhancement initiative. The new NLA is 235,000 sq ft, up from 149,200 sq ft.
With all the changes, the number of shoppers who visit the mall every month has jumped to 2.4 million, from 1.4-1.6 million three-and-a-half years ago, said Wendy Low, general manager of Frasers Centrepoint Malls. She was speaking to reporters at the 'new' Northpoint's official opening ceremony yesterday.
The average rental fetched by the landlord has also gone up by about 20 per cent on a per square foot (psf) basis. Rents are understood to be in the region of $12-14 psf. 'The enhancement is part of FCT's strategic initiative in unlocking values in existing assets,' said Mrs Low.
From 90 shops previously, Northpoint has almost doubled the number of shops to 168. Occupancy stands at close to 100 per cent.
Next in line for asset enhancement is Causeway Point at Woodlands. Work at the 419,000 sq ft mall could begin sometime later this year. The $710 million Causeway Point is the largest mall in FCT's portfolio and draws the most visitors on a yearly basis.
FCT, which is part of the Fraser and Neave group, listed in 2006 with three malls in its portfolio - Causeway Point, Northpoint and Anchorpoint.
Earlier this year, it bought another two properties - the newly built extension to Northpoint and YewTee Point in Choa Chu Kang - for $290 million from parent company Frasers Centrepoint, the property arm of Fraser and Neave.
FCT shares lost one cent to close at $1.34 yesterday.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
EXPANDED
With the addition of a $165 million new wing and a $38.6 million asset enhancement initiative, net lettable area of Northpoint mall is now 235,000 sq ft, up from 149,200 sq ft
BT : All units in phase1 of The Vision sold out
Business Times - 13 Mar 2010
All units in phase1 of The Vision sold out
Buyers pay $1,332 psf for two penthouses
By EMILYN YAP
HONG Kong developer Cheung Kong has set record selling prices for residential projects in the West Coast area.
It managed to sell all 100 units released in the first phase of sale for the 99-year-leasehold The Vision yesterday. Of these, two penthouses went for $3.6 million each, which works out to around $1,332 per square foot (psf).
Buyers paid around $1,000-$1,200 psf for two, three and four-bedroom units, which start from 818 sq ft in size. Cheung Kong also sold several strata terrace units, and the highest price fetched was $3.2 million.
According to the developer's sales manager Cannas Ho, upgraders made up more than 60 per cent of the buyers, and investors accounted for the remainder.
The Vision will have 281 apartments and 14 strata terrace units altogether. In view of the strong demand, the developer will release another 20 units of two to four-bedders for sale this weekend. Cheung Kong had planned to start the second phase of sale by Q4 this year. Whether it brings the release forward will depend on market response to the project, Ms Ho said.
Take-up so far surprised some market watchers, given that The Vision's asking prices are higher than those of other developments nearby.
One of the newer launches in the area, City Developments' Hundred Trees, achieved prices of above $1,100 psf in recent months. But those transactions involved mainly smaller units measuring 484 sq ft, and the project has a 956-year lease.
The robust take-up of units at The Vision 'shows the strong underlying demand for mass-market homes', said Colliers International research and advisory director Tay Huey Ying. The prices achieved could raise the value of homes in the vicinity, and provide a guide for future launches, she added.
Cheung Kong's Ms Ho attributed The Vision's attractiveness to 'good location and first-class amenities'. The site is across the road from West Coast Park and the sea.
Another developer felt that prices at The Vision are not that staggering, considering the attributes of the site, and that West Coast is home to several private housing estates. The market should not see the prices as signs of a bubble forming, he said.
Nevertheless, observers will be keeping watch on prices of upcoming launches nearby. Far East Organization's Horizon Residences, a freehold 72-unit project in the Pasir Panjang area, could be previewed in the next few weeks.
Elsewhere, the buzz is starting for property agents promoting 76 Shenton Way. Some will be presenting information on the 99-year-leasehold 202-unit project to potential buyers today. Asking prices are said to range from $1,600 psf to above $2,000 psf, depending on the level of the units.
Agents are also gathering interest for Fragrance Group's 161-unit Parc Elegance in Telok Kurau and Novelty Group's Primo Residences near Kovan MRT station.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
MEETING DEMAND
The Vision will have 281 apartments and 14 strata terrace units altogether. In view of strong demand, the developer will release another 20 units of two to four-bedders for sale this weekend
All units in phase1 of The Vision sold out
Buyers pay $1,332 psf for two penthouses
By EMILYN YAP
HONG Kong developer Cheung Kong has set record selling prices for residential projects in the West Coast area.
It managed to sell all 100 units released in the first phase of sale for the 99-year-leasehold The Vision yesterday. Of these, two penthouses went for $3.6 million each, which works out to around $1,332 per square foot (psf).
Buyers paid around $1,000-$1,200 psf for two, three and four-bedroom units, which start from 818 sq ft in size. Cheung Kong also sold several strata terrace units, and the highest price fetched was $3.2 million.
According to the developer's sales manager Cannas Ho, upgraders made up more than 60 per cent of the buyers, and investors accounted for the remainder.
The Vision will have 281 apartments and 14 strata terrace units altogether. In view of the strong demand, the developer will release another 20 units of two to four-bedders for sale this weekend. Cheung Kong had planned to start the second phase of sale by Q4 this year. Whether it brings the release forward will depend on market response to the project, Ms Ho said.
Take-up so far surprised some market watchers, given that The Vision's asking prices are higher than those of other developments nearby.
One of the newer launches in the area, City Developments' Hundred Trees, achieved prices of above $1,100 psf in recent months. But those transactions involved mainly smaller units measuring 484 sq ft, and the project has a 956-year lease.
The robust take-up of units at The Vision 'shows the strong underlying demand for mass-market homes', said Colliers International research and advisory director Tay Huey Ying. The prices achieved could raise the value of homes in the vicinity, and provide a guide for future launches, she added.
Cheung Kong's Ms Ho attributed The Vision's attractiveness to 'good location and first-class amenities'. The site is across the road from West Coast Park and the sea.
Another developer felt that prices at The Vision are not that staggering, considering the attributes of the site, and that West Coast is home to several private housing estates. The market should not see the prices as signs of a bubble forming, he said.
Nevertheless, observers will be keeping watch on prices of upcoming launches nearby. Far East Organization's Horizon Residences, a freehold 72-unit project in the Pasir Panjang area, could be previewed in the next few weeks.
Elsewhere, the buzz is starting for property agents promoting 76 Shenton Way. Some will be presenting information on the 99-year-leasehold 202-unit project to potential buyers today. Asking prices are said to range from $1,600 psf to above $2,000 psf, depending on the level of the units.
Agents are also gathering interest for Fragrance Group's 161-unit Parc Elegance in Telok Kurau and Novelty Group's Primo Residences near Kovan MRT station.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
MEETING DEMAND
The Vision will have 281 apartments and 14 strata terrace units altogether. In view of strong demand, the developer will release another 20 units of two to four-bedders for sale this weekend
BT : It may look like a bubble, but it's stronger
Business Times - 13 Mar 2010
SHOW ME THE MONEY
It may look like a bubble, but it's stronger
Beijing, it seems, will have to come up with harsher measures to control the rapid rise in property prices
By TEH HOOI LING
SENIOR CORRESPONDENT
IS there or is there not a property bubble in China? That is the billion-dollar question that everybody is asking now. Before we attempt to answer that, it is instructive to examine what caused prices to race ahead in the last one year.
The obvious answer was the government's four trillion yuan (S$816 billion) stimulus package introduced to support the economy in view of the collapse in exports. In his weekly market report recently, Tan Teng Boo of Capital Dynamics outlined how the stimulus package led to the rapid increase in property prices last year.
As part of the stimulus package, the central government ordered banks to turn on the tap to give loans freely. Last year, China's financial institutions extended 9.59 trillion yuan in new credit. Of that, 1.4 trillion yuan went to individual housing loans and 576.4 billion yuan to housing development loans.
At the same time, the government was carrying out its stimulus programmes through the state-owned enterprises (SOEs). With slacking demand, many SOEs found themselves with excess capacities. Where to put the money that the government has injected? Since the property market has a reputation of generating quick and high returns, it became the natural choice for the SOEs to channel the extra money that they had received. Many SOEs established new business entities to venture into the lucrative property market. The participation of the SOEs with deep pockets into the property market initially sent land prices sky high. This subsequently led to elevated house prices.
Two, with the real economy slowing down significantly, some businesses decided to get out of their original business activities and instead used the profits that they had made in the past few years to invest in the property market. The switch gave further impetus to the property market. And three, in addition to the measures provided in the stimulus package to accelerate the construction of low-cost housing, the government also introduced other preferential policies in 2008-2009, directed specifically at the property sector. These included:
* Cutting the deed tax rate for first-time buyers of houses under 90 sq m from 3.5 per cent to one per cent;
* Exempting stamp duty on property purchases;
* Exempting land value-added tax on property sales;
* Cutting the minimum down payment for first-time home buyers to 20 per cent from 30 per cent;
* Cutting the interest rate for personal housing provident fund loans from 4.32 per cent to 4.05 per cent for five-year loans; for loans above five years, the reduction was from 4.86 per cent to 4.59 per cent;
* Cutting the interest rate on mortgages to 70 per cent of the benchmark lending rate;
* Reducing the ownership period eligible for tax exemption for sales of homes by individuals from five years to two years.
All the above measures drew in droves of buyers. Prices climbed. Then there was the hot money. China's economy bottomed out in the first quarter of 2009.
According to Mr Tan, when it became apparent that economic activities have been successfully revived by the Chinese government's aggressive expansionary policies, hot money began to flow in to take advantage of the opportunities presented by the fact that China's economy would recover earlier and faster than the other economies. In 2009, China's trade surplus fell US$99.4 billion from 2008, yet its foreign exchange reserves surged by US$453.1 billion to US$2.4 trillion. The strong inflow of hot money also played a role in pushing up property prices.
Meanwhile, there are compelling factors which ensure a strong and sustained domestic demand for property. First, the rapid rate of urbanisation. According to Lu Dadao, president of the Geographic Society of China, China took 22 years to increase its urbanisation rate from 17.9 per cent to 39.1 per cent. It took the UK 120 years, the United States 80 years and Japan more than 30 years to accomplish the same feat. With the relaxation of the household registration system, more and more people are moving to the cities, creating strong demand for urban housing.
Meanwhile, the psychological make-up of the Chinese, coupled with the lack of options in which to grow their nest eggs, make real estate an attractive place to park one's money. Real estate is like the proverbial bar of gold. In a recent article, Time magazine interviewed a taxi driver in Shanghai who owns three apartments in the city. He hasn't tried to rent out two of his three apartments, saying: 'It's not that important to gain income from them; there is security in just owning them. They are paid for, and I know that if I ever get into any kind of economic trouble, I can sell them. That's real security.'
Real estate makes for a good hedge against inflation given the sharp expansion in money supply in 2009. That many are using their savings to pay for the apartment is supported by the statistics that China's mortgage market constitutes only about 10 per cent of its gross domestic product. This compared with 48 per cent for Hong Kong. Keeping money in the bank yields only 2.25 per cent in a one-year fixed deposit.
Now, of course, the government is trying to reverse some of the policies. The question is, is it too late? For that, we need to answer how far ahead of fundamentals have property prices gone in China. In Japan, in the four years right before its property bubble went bust the average growth rate of residential land prices in the country's six major cities was 25 per cent. China's appreciation is nowhere near that.
And while the growth rate in US house prices in the 10 years before the sub-prime crisis broke out was not as strong as that of Japan's, it was stronger and more sustained than that of China's.
The worrying thing is, China's prices are catching up fast. House prices in 70 large and medium-sized Chinese cities climbed 3.9 per cent in October last year. The pace of increase picked up to 5.7 per cent in November, and yet even higher to 7.8 per cent in December. In January this year, the number was a 9.5 per cent rise from one year earlier, the fastest growth in 19 months.
The government, it seems, will have to come up with harsher measures to cool things down. The consolation is, the consequences of a reversal in property prices would not inflict that great a pain in the Chinese economy given the lesser extent of credit being used in the market.
In China, personal savings and parental contribution are the two major sources of financing for home purchases. According to Patrick Chovanec, a professor at Beijing's Tsinghua University who studies the Chinese real estate sector, only about 50 per cent of residential purchases are made using mortgages. The other half are paid for in full at the time of acquisition. (In the US, by contrast, over 90 per cent of residential housing transactions are financed with mortgages.) Wong Kok Hoi of APS Asset Management is of the view that if prices were to decline 20 per cent, a portion of the Chinese people's substantial savings would be moved to the property market.
Even if prices were to decline by 30 per cent, the majority of home-owners would still not walk away from their mortgage obligations, as we saw in the US, because they still have positive equity in their homes, reckons Mr Wong. In that scenario, Shanghai-based banks would see their non-performing loans rise to 2 per cent and their profits impacted by 7 per cent.
All in all, it seems the bubble trouble in China is not as big as a lot of people fear it to be.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
VALUABLE ASSET
In China, property is like the proverbial bar of gold, and a good hedge against inflation given the sharp expansion in money supply last year.
SHOW ME THE MONEY
It may look like a bubble, but it's stronger
Beijing, it seems, will have to come up with harsher measures to control the rapid rise in property prices
By TEH HOOI LING
SENIOR CORRESPONDENT
IS there or is there not a property bubble in China? That is the billion-dollar question that everybody is asking now. Before we attempt to answer that, it is instructive to examine what caused prices to race ahead in the last one year.
The obvious answer was the government's four trillion yuan (S$816 billion) stimulus package introduced to support the economy in view of the collapse in exports. In his weekly market report recently, Tan Teng Boo of Capital Dynamics outlined how the stimulus package led to the rapid increase in property prices last year.
As part of the stimulus package, the central government ordered banks to turn on the tap to give loans freely. Last year, China's financial institutions extended 9.59 trillion yuan in new credit. Of that, 1.4 trillion yuan went to individual housing loans and 576.4 billion yuan to housing development loans.
At the same time, the government was carrying out its stimulus programmes through the state-owned enterprises (SOEs). With slacking demand, many SOEs found themselves with excess capacities. Where to put the money that the government has injected? Since the property market has a reputation of generating quick and high returns, it became the natural choice for the SOEs to channel the extra money that they had received. Many SOEs established new business entities to venture into the lucrative property market. The participation of the SOEs with deep pockets into the property market initially sent land prices sky high. This subsequently led to elevated house prices.
Two, with the real economy slowing down significantly, some businesses decided to get out of their original business activities and instead used the profits that they had made in the past few years to invest in the property market. The switch gave further impetus to the property market. And three, in addition to the measures provided in the stimulus package to accelerate the construction of low-cost housing, the government also introduced other preferential policies in 2008-2009, directed specifically at the property sector. These included:
* Cutting the deed tax rate for first-time buyers of houses under 90 sq m from 3.5 per cent to one per cent;
* Exempting stamp duty on property purchases;
* Exempting land value-added tax on property sales;
* Cutting the minimum down payment for first-time home buyers to 20 per cent from 30 per cent;
* Cutting the interest rate for personal housing provident fund loans from 4.32 per cent to 4.05 per cent for five-year loans; for loans above five years, the reduction was from 4.86 per cent to 4.59 per cent;
* Cutting the interest rate on mortgages to 70 per cent of the benchmark lending rate;
* Reducing the ownership period eligible for tax exemption for sales of homes by individuals from five years to two years.
All the above measures drew in droves of buyers. Prices climbed. Then there was the hot money. China's economy bottomed out in the first quarter of 2009.
According to Mr Tan, when it became apparent that economic activities have been successfully revived by the Chinese government's aggressive expansionary policies, hot money began to flow in to take advantage of the opportunities presented by the fact that China's economy would recover earlier and faster than the other economies. In 2009, China's trade surplus fell US$99.4 billion from 2008, yet its foreign exchange reserves surged by US$453.1 billion to US$2.4 trillion. The strong inflow of hot money also played a role in pushing up property prices.
Meanwhile, there are compelling factors which ensure a strong and sustained domestic demand for property. First, the rapid rate of urbanisation. According to Lu Dadao, president of the Geographic Society of China, China took 22 years to increase its urbanisation rate from 17.9 per cent to 39.1 per cent. It took the UK 120 years, the United States 80 years and Japan more than 30 years to accomplish the same feat. With the relaxation of the household registration system, more and more people are moving to the cities, creating strong demand for urban housing.
Meanwhile, the psychological make-up of the Chinese, coupled with the lack of options in which to grow their nest eggs, make real estate an attractive place to park one's money. Real estate is like the proverbial bar of gold. In a recent article, Time magazine interviewed a taxi driver in Shanghai who owns three apartments in the city. He hasn't tried to rent out two of his three apartments, saying: 'It's not that important to gain income from them; there is security in just owning them. They are paid for, and I know that if I ever get into any kind of economic trouble, I can sell them. That's real security.'
Real estate makes for a good hedge against inflation given the sharp expansion in money supply in 2009. That many are using their savings to pay for the apartment is supported by the statistics that China's mortgage market constitutes only about 10 per cent of its gross domestic product. This compared with 48 per cent for Hong Kong. Keeping money in the bank yields only 2.25 per cent in a one-year fixed deposit.
Now, of course, the government is trying to reverse some of the policies. The question is, is it too late? For that, we need to answer how far ahead of fundamentals have property prices gone in China. In Japan, in the four years right before its property bubble went bust the average growth rate of residential land prices in the country's six major cities was 25 per cent. China's appreciation is nowhere near that.
And while the growth rate in US house prices in the 10 years before the sub-prime crisis broke out was not as strong as that of Japan's, it was stronger and more sustained than that of China's.
The worrying thing is, China's prices are catching up fast. House prices in 70 large and medium-sized Chinese cities climbed 3.9 per cent in October last year. The pace of increase picked up to 5.7 per cent in November, and yet even higher to 7.8 per cent in December. In January this year, the number was a 9.5 per cent rise from one year earlier, the fastest growth in 19 months.
The government, it seems, will have to come up with harsher measures to cool things down. The consolation is, the consequences of a reversal in property prices would not inflict that great a pain in the Chinese economy given the lesser extent of credit being used in the market.
In China, personal savings and parental contribution are the two major sources of financing for home purchases. According to Patrick Chovanec, a professor at Beijing's Tsinghua University who studies the Chinese real estate sector, only about 50 per cent of residential purchases are made using mortgages. The other half are paid for in full at the time of acquisition. (In the US, by contrast, over 90 per cent of residential housing transactions are financed with mortgages.) Wong Kok Hoi of APS Asset Management is of the view that if prices were to decline 20 per cent, a portion of the Chinese people's substantial savings would be moved to the property market.
Even if prices were to decline by 30 per cent, the majority of home-owners would still not walk away from their mortgage obligations, as we saw in the US, because they still have positive equity in their homes, reckons Mr Wong. In that scenario, Shanghai-based banks would see their non-performing loans rise to 2 per cent and their profits impacted by 7 per cent.
All in all, it seems the bubble trouble in China is not as big as a lot of people fear it to be.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
VALUABLE ASSET
In China, property is like the proverbial bar of gold, and a good hedge against inflation given the sharp expansion in money supply last year.
CNA : HDB takes action against 56 flat owners for illegal sub-letting
HDB takes action against 56 flat owners for illegal sub-letting
By Mustafa Shafawi | Posted: 12 March 2010 1946 hrs
SINGAPORE : The Housing and Development Board (HDB) has taken action against 56 flat owners for illegal sub-letting between January 2008 and December last year.
Most were fined between S$1,000 and S$21,000.
One owner had his flat repossessed for blatantly flouting HDB's sub-letting rules.
Giving details of the case, HDB said it first received feedback on the unauthorised sub-letting of a unit in Block 336 Bukit Batok Street 32 on November 11 last year.
The flat was bought by Poh Boon Kay, who is a registered real estate agent. His wife was listed as an occupier.
He purchased the four-room flat from the open market in June 2007 without any loan.
HDB said the couple are also owners of five private properties. Its investigations found that the flat was sublet without its prior approval to three couples.
Mr Poh and his family did not live in the flat.
He was informed on November 25 to take immediate steps to evict the unauthorised sub-tenants, failing which HDB would take compulsory acquisition action.
However, the subtenants continued to occupy the flat. A notice to compulsorily acquire the flat was then served on December 23.
Mr Poh informed HDB on the same day that the sub-tenants had signed an undertaking to vacate the flat by the end of December.
A day later, the couple appealed. He claimed that the sub-tenant needed time to work out his finances before buying over the flat from Mr Poh.
He had therefore decided to rent out the flat to the sub-tenants in the interim.
On January 5, when the couple was interviewed by HDB, they claimed they did not know that they needed to seek the board's prior approval before subletting the flat.
They also claimed that they were not aware of the policy for flat owners to fulfil the Minimum Occupation Period (MOP) of three years before they were eligible to sublet the whole flat.
HDB's further investigations have shown that Mr Poh is also related to two other cases of unauthorised subletting at Bukit Batok and Telok Blangah.
With these further instances of unauthorised subletting related to Mr Poh, his claims that he is "unaware" of HDB rules cannot be substantiated.
HDB said as he has blatantly flouted HDB's rules, there are no grounds for leniency and legal action has been taken to compulsorily acquire the flat.
HDB will also be taking legal action to compulsorily acquire the other two flats.
HDB would like to emphasise the severity of unauthorised subletting. HDB flats are meant for owner occupation. Flat owners who wish to sublet their whole flat must obtain approval from HDB and fulfil the MOP.
The current MOP for the subletting of flats is as follows:
*Flats bought directly from HDB - 5 years
*Resale flats purchased with CPF Housing Grant - 5 years
*Resale flats purchased without CPF Housing Grant - 3 years
- CNA/ms
By Mustafa Shafawi | Posted: 12 March 2010 1946 hrs
SINGAPORE : The Housing and Development Board (HDB) has taken action against 56 flat owners for illegal sub-letting between January 2008 and December last year.
Most were fined between S$1,000 and S$21,000.
One owner had his flat repossessed for blatantly flouting HDB's sub-letting rules.
Giving details of the case, HDB said it first received feedback on the unauthorised sub-letting of a unit in Block 336 Bukit Batok Street 32 on November 11 last year.
The flat was bought by Poh Boon Kay, who is a registered real estate agent. His wife was listed as an occupier.
He purchased the four-room flat from the open market in June 2007 without any loan.
HDB said the couple are also owners of five private properties. Its investigations found that the flat was sublet without its prior approval to three couples.
Mr Poh and his family did not live in the flat.
He was informed on November 25 to take immediate steps to evict the unauthorised sub-tenants, failing which HDB would take compulsory acquisition action.
However, the subtenants continued to occupy the flat. A notice to compulsorily acquire the flat was then served on December 23.
Mr Poh informed HDB on the same day that the sub-tenants had signed an undertaking to vacate the flat by the end of December.
A day later, the couple appealed. He claimed that the sub-tenant needed time to work out his finances before buying over the flat from Mr Poh.
He had therefore decided to rent out the flat to the sub-tenants in the interim.
On January 5, when the couple was interviewed by HDB, they claimed they did not know that they needed to seek the board's prior approval before subletting the flat.
They also claimed that they were not aware of the policy for flat owners to fulfil the Minimum Occupation Period (MOP) of three years before they were eligible to sublet the whole flat.
HDB's further investigations have shown that Mr Poh is also related to two other cases of unauthorised subletting at Bukit Batok and Telok Blangah.
With these further instances of unauthorised subletting related to Mr Poh, his claims that he is "unaware" of HDB rules cannot be substantiated.
HDB said as he has blatantly flouted HDB's rules, there are no grounds for leniency and legal action has been taken to compulsorily acquire the flat.
HDB will also be taking legal action to compulsorily acquire the other two flats.
HDB would like to emphasise the severity of unauthorised subletting. HDB flats are meant for owner occupation. Flat owners who wish to sublet their whole flat must obtain approval from HDB and fulfil the MOP.
The current MOP for the subletting of flats is as follows:
*Flats bought directly from HDB - 5 years
*Resale flats purchased with CPF Housing Grant - 5 years
*Resale flats purchased without CPF Housing Grant - 3 years
- CNA/ms
CNA : URA to launch sale of residential site
URA to launch sale of residential site
By Mustafa Shafawi | Posted: 12 March 2010 1439 hrs
SINGAPORE: Another Reserve List site has been triggered.
The Urban Redevelopment Authority (URA) said it will launch for sale a residential site at the junction of Upper Changi Road North and Flora Drive in two weeks' time.
It said a developer has committed to bid no less than S$82 million for the three-hectare site. The minimum price is acceptable to the government.
URA said the land parcel can yield 390 units.
Some analysts said the top bid for the Upper Changi Road North site could range between S$160 million and S$185 million.
That would translate to about S$350 to S$400 per square foot per plot ratio.
A residential site at Sengkang West Avenue has already been sold via the Reserve List in February.
Together these two sites can potentially yield about 855 residential units.
There are another 16 residential sites remaining on the Reserve List of the first half of 2010 Government Land Sales (GLS) Programme that can potentially be triggered for sale.
- CNA/sc/ms
By Mustafa Shafawi | Posted: 12 March 2010 1439 hrs
SINGAPORE: Another Reserve List site has been triggered.
The Urban Redevelopment Authority (URA) said it will launch for sale a residential site at the junction of Upper Changi Road North and Flora Drive in two weeks' time.
It said a developer has committed to bid no less than S$82 million for the three-hectare site. The minimum price is acceptable to the government.
URA said the land parcel can yield 390 units.
Some analysts said the top bid for the Upper Changi Road North site could range between S$160 million and S$185 million.
That would translate to about S$350 to S$400 per square foot per plot ratio.
A residential site at Sengkang West Avenue has already been sold via the Reserve List in February.
Together these two sites can potentially yield about 855 residential units.
There are another 16 residential sites remaining on the Reserve List of the first half of 2010 Government Land Sales (GLS) Programme that can potentially be triggered for sale.
- CNA/sc/ms
CNA : Govt amends Stamp Duties Act
Govt amends Stamp Duties Act
By May Wong | Posted: 12 March 2010 2146 hrs
SINGAPORE: Parliament has passed changes to the Stamp Duties Act. The amendments will give legislative effect to the seller's stamp duty, which was re-introduced on February 20 as one of the measures to discourage property speculation.
Those who sell their residential properties and residential lands within one year of purchase February 20 will have to pay a duty of one per cent for the first S$180,000, two per cent for the next S$180,000 and three per cent for the balance.
Speaking at the second reading of the bill on Friday, Finance Minister Tharman Shanmugaratnam said the government first introduced the seller's stamp duty in 1996 to cool the overheating property market.
It was subsequently suspended in November 1997. Relevant provisions in the Stamp Duties Act were subsequently repealed in 2005.
Another key change - the government will now be able to introduce, vary or remove the seller's stamp duty, via a Ministerial Order that will be published in the Government Gazette.
The Finance Minister said the process of introducing and repealing provisions in the Stamp Duties Act each time the government wants to introduce, vary or remove the duty is not efficient, especially when it has to respond to changes in the property market cycle in a timely and calibrated manner.
Mr Tharman stressed that the government does not intend to change the seller's stamp duty liberally.
He said: "Any future change to the seller's stamp duty will be a carefully considered decision, taking into account all prevailing and projected factors at the time.” - CNA/vm
By May Wong | Posted: 12 March 2010 2146 hrs
SINGAPORE: Parliament has passed changes to the Stamp Duties Act. The amendments will give legislative effect to the seller's stamp duty, which was re-introduced on February 20 as one of the measures to discourage property speculation.
Those who sell their residential properties and residential lands within one year of purchase February 20 will have to pay a duty of one per cent for the first S$180,000, two per cent for the next S$180,000 and three per cent for the balance.
Speaking at the second reading of the bill on Friday, Finance Minister Tharman Shanmugaratnam said the government first introduced the seller's stamp duty in 1996 to cool the overheating property market.
It was subsequently suspended in November 1997. Relevant provisions in the Stamp Duties Act were subsequently repealed in 2005.
Another key change - the government will now be able to introduce, vary or remove the seller's stamp duty, via a Ministerial Order that will be published in the Government Gazette.
The Finance Minister said the process of introducing and repealing provisions in the Stamp Duties Act each time the government wants to introduce, vary or remove the duty is not efficient, especially when it has to respond to changes in the property market cycle in a timely and calibrated manner.
Mr Tharman stressed that the government does not intend to change the seller's stamp duty liberally.
He said: "Any future change to the seller's stamp duty will be a carefully considered decision, taking into account all prevailing and projected factors at the time.” - CNA/vm
ASIAONE : Housing agent sublet flat illegally three times
Housing agent sublet flat illegally three times
HDB will now acquire his flat as they step up enforcement against illegal sub-letting. -AsiaOne
Fri, Mar 12, 2010
AsiaOne
In 2007, Mr Poh Boon Kay, a registered real estate agent with five other properties, bought his 4-room Bukit Batok flat at $150,000 without any loans, listing his wife, Mdm Khoo Kim Cheng as occupier.
However, in November 2009, the Housing and Development Board (HDB) discovered that Mr Poh was actually subletting the flat - without HDB's prior approval - to 3 Burmese couples (six adults and one child) at a monthly rent of $1,900. Mr Poh and his family were not residing in the flat.
Two weeks later, HDB informed him that unless the unauthorised sub-tenants are evicted, HDB would take compulsory acquisition action. As the subtenants continued to stay in the flat, a Notice of Board's Intention to compulsorily acquire the flat was served on December 23. On the same day, he said the sub-tenants had signed an undertaking that they would vacate the flat by the end of December.
Mr Poh appealed the next day, claiming that he rented out the flat to the sub-tenants while they worked out their finances in order to buy the flat from him.
When interviewed, he and his wife claimed they did not know that they needed to seek prior approval from HDB before subletting the flat, or that they needed to fulfill the Minimum Occupation Period (MOP) of three years before they are eligible to do so.
Two other cases of illegal sub-letting
HDB subsequently discovered that Mr Poh is related to two more cases of unauthorised sub-letting.
In the second case, he acted as the housing agent for his 91-year-old aunt, whose flat was sublet without HDB's approval to Burmese monks at a monthly rent of $1,400 since July last year. They had used it as a meditation centre, with monthly rents paid out to Mr Poh.
The third case involved his daughter's Telok Blangah flat which was again sublet without HDB's consent to subtenants for $900 a month.
According to a statement released by the HDB, "With these further instances of unauthorised subletting related to Mr. Poh, his claims that he is "unaware" of HDB rules cannot be substantiated. Furthermore, these regulations are publicly available from many sources such as HDB's InfoWeb or service hotline. There is clear evidence that Mr Poh, a housing agent by profession, has been intentionally abusing HDB flats for monetary gains."
HDB has now taken legal action to compulsorily acquire Mr Poh's flat. It plans to take the same action towards his aunt's and daughter's flats as well.
HDB ramps up enforcement against unauthorised subletting
In its statement, HDB said it 'would like to emphasize the severity of unauthorised subletting'.
It said it would take action in those who commit this infringement, from penalties that ranged from fines of $1,000 to $21,000, to repossession of flat. 56 owners have received these penalties from January 2008 to December 2009.
Flat owners who wish to sublet their whole flat must obtain approval from HDB and fulfil the Minimum Occupation Period (MOP). The current MOP for the subletting of flats is as follows:
Flats bought directly from HDB: 5 years
Resale flats purchased with CPF Housing Grant: 5 years
Resale flats purchased without CPF Housing Grant: 3 years
They must also comply with HDB's terms and conditions. For instance, the maximum number of subtenants allowed. 1-Room and 2-Room flats are allowed a maximum of four persons, 3-room flats can have 6 persons, while 4-Room and bigger flat types can have 9 persons in total.
Residents are encouraged to call our dedicated hotline at 1800-5556370 [Monday to Friday - 8am to 5pm] to report any suspected cases.
HDB will now acquire his flat as they step up enforcement against illegal sub-letting. -AsiaOne
Fri, Mar 12, 2010
AsiaOne
In 2007, Mr Poh Boon Kay, a registered real estate agent with five other properties, bought his 4-room Bukit Batok flat at $150,000 without any loans, listing his wife, Mdm Khoo Kim Cheng as occupier.
However, in November 2009, the Housing and Development Board (HDB) discovered that Mr Poh was actually subletting the flat - without HDB's prior approval - to 3 Burmese couples (six adults and one child) at a monthly rent of $1,900. Mr Poh and his family were not residing in the flat.
Two weeks later, HDB informed him that unless the unauthorised sub-tenants are evicted, HDB would take compulsory acquisition action. As the subtenants continued to stay in the flat, a Notice of Board's Intention to compulsorily acquire the flat was served on December 23. On the same day, he said the sub-tenants had signed an undertaking that they would vacate the flat by the end of December.
Mr Poh appealed the next day, claiming that he rented out the flat to the sub-tenants while they worked out their finances in order to buy the flat from him.
When interviewed, he and his wife claimed they did not know that they needed to seek prior approval from HDB before subletting the flat, or that they needed to fulfill the Minimum Occupation Period (MOP) of three years before they are eligible to do so.
Two other cases of illegal sub-letting
HDB subsequently discovered that Mr Poh is related to two more cases of unauthorised sub-letting.
In the second case, he acted as the housing agent for his 91-year-old aunt, whose flat was sublet without HDB's approval to Burmese monks at a monthly rent of $1,400 since July last year. They had used it as a meditation centre, with monthly rents paid out to Mr Poh.
The third case involved his daughter's Telok Blangah flat which was again sublet without HDB's consent to subtenants for $900 a month.
According to a statement released by the HDB, "With these further instances of unauthorised subletting related to Mr. Poh, his claims that he is "unaware" of HDB rules cannot be substantiated. Furthermore, these regulations are publicly available from many sources such as HDB's InfoWeb or service hotline. There is clear evidence that Mr Poh, a housing agent by profession, has been intentionally abusing HDB flats for monetary gains."
HDB has now taken legal action to compulsorily acquire Mr Poh's flat. It plans to take the same action towards his aunt's and daughter's flats as well.
HDB ramps up enforcement against unauthorised subletting
In its statement, HDB said it 'would like to emphasize the severity of unauthorised subletting'.
It said it would take action in those who commit this infringement, from penalties that ranged from fines of $1,000 to $21,000, to repossession of flat. 56 owners have received these penalties from January 2008 to December 2009.
Flat owners who wish to sublet their whole flat must obtain approval from HDB and fulfil the Minimum Occupation Period (MOP). The current MOP for the subletting of flats is as follows:
Flats bought directly from HDB: 5 years
Resale flats purchased with CPF Housing Grant: 5 years
Resale flats purchased without CPF Housing Grant: 3 years
They must also comply with HDB's terms and conditions. For instance, the maximum number of subtenants allowed. 1-Room and 2-Room flats are allowed a maximum of four persons, 3-room flats can have 6 persons, while 4-Room and bigger flat types can have 9 persons in total.
Residents are encouraged to call our dedicated hotline at 1800-5556370 [Monday to Friday - 8am to 5pm] to report any suspected cases.
Friday, March 12, 2010
TODAY ONLINE : Land parcel at Woodlands Avenue 12 up for public tender
Land parcel at Woodlands Avenue 12 up for public tender
05:55 AM Mar 12, 2010
SINGAPORE - A land parcel at Woodlands Avenue 12 is set to be launched for public tender by the end of the month.
The Urban Redevelopment Authority (URA) said it had accepted an application from a developer which had committed to bid a price of not less than $25 million for the industrial site.
The land parcel was made available for sale through the Reserve List System last year.
Under the system, the Government will put up a Reserve List Site for public tender if it receives an application from a developer who commits to bid for the site at or above the minimum price which is acceptable to the Government.
The land parcel has a site area of about 3.2 hectares and a maximum gross plot ratio of 2.5. It is accessible via a network of roads such as Woodlands Avenue 12 and Seletar Expressway. Admiralty MRT is located about 600 metres from the site. It can be developed for a variety of uses under "Business 1" zoning, which includes clean and light industries. The site has a lease period of 60 years.
URA will launch the public tender for the site in about two weeks.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
05:55 AM Mar 12, 2010
SINGAPORE - A land parcel at Woodlands Avenue 12 is set to be launched for public tender by the end of the month.
The Urban Redevelopment Authority (URA) said it had accepted an application from a developer which had committed to bid a price of not less than $25 million for the industrial site.
The land parcel was made available for sale through the Reserve List System last year.
Under the system, the Government will put up a Reserve List Site for public tender if it receives an application from a developer who commits to bid for the site at or above the minimum price which is acceptable to the Government.
The land parcel has a site area of about 3.2 hectares and a maximum gross plot ratio of 2.5. It is accessible via a network of roads such as Woodlands Avenue 12 and Seletar Expressway. Admiralty MRT is located about 600 metres from the site. It can be developed for a variety of uses under "Business 1" zoning, which includes clean and light industries. The site has a lease period of 60 years.
URA will launch the public tender for the site in about two weeks.
Copyright 2010 MediaCorp Pte Ltd | All Rights Reserved
ST Forum : Leasing checklist for foreigners and bosses hiring them
Mar 12, 2010
Leasing checklist for foreigners and bosses hiring them
WITH reference to yesterday's report, 'Agent targeted foreigners in rental scam', we would like to offer the following guide to employers recruiting foreign talent as well as individual foreigners who are leasing residential properties in Singapore.
· Request for verification of property ownership such as the latest property tax statement or utilise the e-Valuation List service at the Internal Revenue Authority of Singapore (Iras) website to find out the name of the property owner for $2.50.
· If the property is an HDB flat, request for a copy of the Housing Board's approval letter to the landlord for subletting.
· Avoid paying a security deposit and advance rent by cash or cash cheque. Make out the cheque payable directly to the landlord. If you have no cheque account, buy a cashier's order with the appropriate payee's name.
· Whenever possible, make an appointment to meet the landlord to satisfy yourself that the prospective lease is in good faith.
· When responding to Internet advertisements, ensure that the source of the advertisement is from a credible website or property portal. If in doubt, contact the agency of the estate agent who posts the advertisement online to ensure it is not a hoax.
· Be aware of comparative rentals in the area where one is planning to lease a flat/ apartment and be wary of anyone who touts an incredibly low or attractive rental.
· Be sure that tenancy agreements signed are stamped by Iras as it is an offence to evade stamp duty on tenancy agreements. Moreover, if the tenancy agreement is not stamped, it may not be admissible in a court of law in the event of a legal dispute.
· Appoint an accredited estate agent or an agent from an accredited agency who has professional indemnity insurance.
Dr Tan Tee Khoon
Chief Executive Officer
Singapore Accredited Estate Agencies
Leasing checklist for foreigners and bosses hiring them
WITH reference to yesterday's report, 'Agent targeted foreigners in rental scam', we would like to offer the following guide to employers recruiting foreign talent as well as individual foreigners who are leasing residential properties in Singapore.
· Request for verification of property ownership such as the latest property tax statement or utilise the e-Valuation List service at the Internal Revenue Authority of Singapore (Iras) website to find out the name of the property owner for $2.50.
· If the property is an HDB flat, request for a copy of the Housing Board's approval letter to the landlord for subletting.
· Avoid paying a security deposit and advance rent by cash or cash cheque. Make out the cheque payable directly to the landlord. If you have no cheque account, buy a cashier's order with the appropriate payee's name.
· Whenever possible, make an appointment to meet the landlord to satisfy yourself that the prospective lease is in good faith.
· When responding to Internet advertisements, ensure that the source of the advertisement is from a credible website or property portal. If in doubt, contact the agency of the estate agent who posts the advertisement online to ensure it is not a hoax.
· Be aware of comparative rentals in the area where one is planning to lease a flat/ apartment and be wary of anyone who touts an incredibly low or attractive rental.
· Be sure that tenancy agreements signed are stamped by Iras as it is an offence to evade stamp duty on tenancy agreements. Moreover, if the tenancy agreement is not stamped, it may not be admissible in a court of law in the event of a legal dispute.
· Appoint an accredited estate agent or an agent from an accredited agency who has professional indemnity insurance.
Dr Tan Tee Khoon
Chief Executive Officer
Singapore Accredited Estate Agencies
ST : China firm tops bid for EC site
Mar 12, 2010
China firm tops bid for EC site
MCC's $281 psf bid for Yishun site beats experts' forecast of $150-$210 psf
By Joyce Teo
A CHINESE firm new to Singapore's residential development scene has topped the bidding for an executive condominium (EC) site in Yishun.
Beijing-headquartered MCC Land (Singapore), which lost out on last week's tender for an EC site in Sengkang, was the highest bidder for the 15,074 sq m Yishun plot.
Its $127.8 million bid, or $281.31 per sq ft (psf) of gross floor area, easily beat earlier analysts' expectations of $150-$210 psf of gross floor area.
Qingdao-based firm Qingjian Realty - which is behind the Natura Loft HDB design, build and sell scheme in Bishan - came in second, with a bid of $118.89 million or $261.71 psf of gross floor area.
Maxdin, part of United Engineers' unit Greatearth Holding, was edged into a close third place with its offer of $117 million or $257.53 psf of gross floor area.
Among the other unsuccessful contenders were Far East Organization, Sim Lian Land and Boon Keng Development.
Most bidders also tendered for the Sengkang site last week.
Many of them are construction companies with the know-how to control and manage building costs, and are well placed to keep development expenses as low as possible, experts noted.
'The results of this second EC site tender demonstrate developers' fervour in acquiring sites for mass-market housing,' said CBRE Research executive director Li Hiaw Ho.
MCC Land is part of listed Metallurgical Corporation of China, one of the world's largest engineering and construction firms.
It has provided engineering and construction services in Singapore, and in 2008 clinched a contract for Universal Studios Singapore at Resorts World Sentosa. Qingjian Realty also began operations here as a contractor.
The Yishun EC plot can yield about 385 units and is near the completed Lilydale EC project. In the resale market of January-February this year, units there were selling at between $510 psf and $540 psf.
Although not within walking distance of an MRT station, the Yishun site is close to Yishun Park, Orchid Country Club and Lower Seletar Reservoir.
CBRE Research said the winning bid will translate into a break-even price of around $520 psf.
At this level, the final selling price of the EC units is likely to be around $600-$650 psf, said Colliers International's executive director of investment sales Ho Eng Joo.
The winning bid, he said, took its cue from last week's Sengkang EC tender, which attracted a higher-than-expected top bid of $315 psf of gross floor area.
Mr Li said the success of the recent launch of The Estuary private condominium in Yishun Avenue 1 had boosted developer confidence in selling EC projects in this location to first-timers. Over 500 units of The Estuary were reportedly sold at a price of $750-$800 psf, he said.
The winners of the Sengkang and Yishun EC tenders have to set aside 95 per cent of units in the initial month of sale for first-time home buyers.
ECs were introduced in 1995 to bridge the gap between public housing and private apartments. Only those with a gross monthly household income of $10,000 or less can apply.
joyceteo@sph.com.sg
China firm tops bid for EC site
MCC's $281 psf bid for Yishun site beats experts' forecast of $150-$210 psf
By Joyce Teo
A CHINESE firm new to Singapore's residential development scene has topped the bidding for an executive condominium (EC) site in Yishun.
Beijing-headquartered MCC Land (Singapore), which lost out on last week's tender for an EC site in Sengkang, was the highest bidder for the 15,074 sq m Yishun plot.
Its $127.8 million bid, or $281.31 per sq ft (psf) of gross floor area, easily beat earlier analysts' expectations of $150-$210 psf of gross floor area.
Qingdao-based firm Qingjian Realty - which is behind the Natura Loft HDB design, build and sell scheme in Bishan - came in second, with a bid of $118.89 million or $261.71 psf of gross floor area.
Maxdin, part of United Engineers' unit Greatearth Holding, was edged into a close third place with its offer of $117 million or $257.53 psf of gross floor area.
Among the other unsuccessful contenders were Far East Organization, Sim Lian Land and Boon Keng Development.
Most bidders also tendered for the Sengkang site last week.
Many of them are construction companies with the know-how to control and manage building costs, and are well placed to keep development expenses as low as possible, experts noted.
'The results of this second EC site tender demonstrate developers' fervour in acquiring sites for mass-market housing,' said CBRE Research executive director Li Hiaw Ho.
MCC Land is part of listed Metallurgical Corporation of China, one of the world's largest engineering and construction firms.
It has provided engineering and construction services in Singapore, and in 2008 clinched a contract for Universal Studios Singapore at Resorts World Sentosa. Qingjian Realty also began operations here as a contractor.
The Yishun EC plot can yield about 385 units and is near the completed Lilydale EC project. In the resale market of January-February this year, units there were selling at between $510 psf and $540 psf.
Although not within walking distance of an MRT station, the Yishun site is close to Yishun Park, Orchid Country Club and Lower Seletar Reservoir.
CBRE Research said the winning bid will translate into a break-even price of around $520 psf.
At this level, the final selling price of the EC units is likely to be around $600-$650 psf, said Colliers International's executive director of investment sales Ho Eng Joo.
The winning bid, he said, took its cue from last week's Sengkang EC tender, which attracted a higher-than-expected top bid of $315 psf of gross floor area.
Mr Li said the success of the recent launch of The Estuary private condominium in Yishun Avenue 1 had boosted developer confidence in selling EC projects in this location to first-timers. Over 500 units of The Estuary were reportedly sold at a price of $750-$800 psf, he said.
The winners of the Sengkang and Yishun EC tenders have to set aside 95 per cent of units in the initial month of sale for first-time home buyers.
ECs were introduced in 1995 to bridge the gap between public housing and private apartments. Only those with a gross monthly household income of $10,000 or less can apply.
joyceteo@sph.com.sg
CNA : EC site at Yishun Ave 11 attracts 10 bids
EC site at Yishun Ave 11 attracts 10 bids
By Wong Siew Ying | Posted: 11 March 2010 2307 hrs
The site at Yishun Ave 11 earmarked for executive condo development
SINGAPORE: The executive condominium site at Yishun Avenue 11 has attracted 10 bids.
MCC Land Singapore put in the top bid of $127.8m for the 99-year leasehold plot. This translates into S$281 per square foot per plot ratio.
The second highest bid came from Qingjian Realty, at S$118.8m, followed by Maxdin Pte Ltd which placed a bid of S$117m. The remaining offers range between S$46.8m and S$116m.
Real estate consultancy firm CB Richard Ellis says the tender results show that developers in Singapore are keen to acquire land for mass market housing.
An earlier tender for an EC site at Compassvale Bow had attracted 11 bids.
CBRE also noted that developers may have been more confident, following the success of The Estuary project which was launched recently at Yishun Avenue 1.
CBRE said the top bid of $127.8m for the latest EC site will work out to a breakeven price of S$520 psf.
- CNA/ir
By Wong Siew Ying | Posted: 11 March 2010 2307 hrs
The site at Yishun Ave 11 earmarked for executive condo development
SINGAPORE: The executive condominium site at Yishun Avenue 11 has attracted 10 bids.
MCC Land Singapore put in the top bid of $127.8m for the 99-year leasehold plot. This translates into S$281 per square foot per plot ratio.
The second highest bid came from Qingjian Realty, at S$118.8m, followed by Maxdin Pte Ltd which placed a bid of S$117m. The remaining offers range between S$46.8m and S$116m.
Real estate consultancy firm CB Richard Ellis says the tender results show that developers in Singapore are keen to acquire land for mass market housing.
An earlier tender for an EC site at Compassvale Bow had attracted 11 bids.
CBRE also noted that developers may have been more confident, following the success of The Estuary project which was launched recently at Yishun Avenue 1.
CBRE said the top bid of $127.8m for the latest EC site will work out to a breakeven price of S$520 psf.
- CNA/ir
CNA : Govt building vacancies in CBD could open half a million square feet of space
Govt building vacancies in CBD could open half a million square feet of space
By Desmond Wong | Posted: 11 March 2010 2133 hrs
SINGAPORE: About half a million square feet of office space in the core business district and fringe areas could become available when government bodies move out of Singapore's city centre by 2015.
Experts said that with occupancy in the CBD bouncing back after the downturn, the space will be sorely needed.
Government agencies such as the Ministry of National Development will be moving out of their premises in the CBD by 2015.
And when that happens, they could be leaving behind as much as half a million square feet of real estate space.
While this could present an opportunity for market players and tenants to pick up a bargain, experts said full redevelopment will be needed, for these properties to reach full commercial potential.
Chris Archibold, regional director, Head of Markets, Jones Lang LaSalle, said: "It's going to be a land sale and a total redevelopment. That's probably the most likely scenario. A top up of the land lease so that they're a 99 year lease, then a sale to the private sector so the buildings can be redeveloped to international standards and specifications.
“I think releasing a number of those buildings in their existing condition, the older ones, is not necessarily a good thing."
The government bodies that are slated to move include the Ministry of National Development, the Agri-Food and Veterinary Authority, the Building and Construction Authority and the Ministry of the Environment and Water Resources.
Office occupancy rates within the CBD have hit 93 per cent in recent months, their highest levels in a year.
And property-watchers said the additional space left vacant by the government agencies will help to relieve growing pressure on demand for prime office space.
They expect supply to be tight, even with additional space at the Marina Bay Financial Centre.
Donald Han, managing director, Cushman & Wakefield, said: "There will be a scenario of supply overhang that flows into the year but the scenario is that landlords are becoming more confident of the market.
They're no longer dropping rentals as fast as they did 12 months ago. On top of that, if you look at the economic prospects, a lot of tenants are looking into an expansionary process, looking to increase head count."
And with little new space in the pipeline after 2013 in both the fringe and non-core CBD areas, experts said the government's plan to move out within three to five years is timely because it gives developers additional time to figure out what to do with the area once it becomes available.
By Desmond Wong | Posted: 11 March 2010 2133 hrs
SINGAPORE: About half a million square feet of office space in the core business district and fringe areas could become available when government bodies move out of Singapore's city centre by 2015.
Experts said that with occupancy in the CBD bouncing back after the downturn, the space will be sorely needed.
Government agencies such as the Ministry of National Development will be moving out of their premises in the CBD by 2015.
And when that happens, they could be leaving behind as much as half a million square feet of real estate space.
While this could present an opportunity for market players and tenants to pick up a bargain, experts said full redevelopment will be needed, for these properties to reach full commercial potential.
Chris Archibold, regional director, Head of Markets, Jones Lang LaSalle, said: "It's going to be a land sale and a total redevelopment. That's probably the most likely scenario. A top up of the land lease so that they're a 99 year lease, then a sale to the private sector so the buildings can be redeveloped to international standards and specifications.
“I think releasing a number of those buildings in their existing condition, the older ones, is not necessarily a good thing."
The government bodies that are slated to move include the Ministry of National Development, the Agri-Food and Veterinary Authority, the Building and Construction Authority and the Ministry of the Environment and Water Resources.
Office occupancy rates within the CBD have hit 93 per cent in recent months, their highest levels in a year.
And property-watchers said the additional space left vacant by the government agencies will help to relieve growing pressure on demand for prime office space.
They expect supply to be tight, even with additional space at the Marina Bay Financial Centre.
Donald Han, managing director, Cushman & Wakefield, said: "There will be a scenario of supply overhang that flows into the year but the scenario is that landlords are becoming more confident of the market.
They're no longer dropping rentals as fast as they did 12 months ago. On top of that, if you look at the economic prospects, a lot of tenants are looking into an expansionary process, looking to increase head count."
And with little new space in the pipeline after 2013 in both the fringe and non-core CBD areas, experts said the government's plan to move out within three to five years is timely because it gives developers additional time to figure out what to do with the area once it becomes available.
CNA : Industrial site at Woodlands Ave 12 put up for public tender
Industrial site at Woodlands Ave 12 put up for public tender
By Jonathan Peeris | Posted: 11 March 2010 1504 hrs
SINGAPORE: The government has accepted an application from a developer to put up an industrial site at Woodlands Avenue 12 for public tender.
The Urban Redevelopment Authority (URA) said it has received an application from a developer who has committed to bid a price of not less than S$25 million for the land parcel.
The land parcel has a site area of about 3.2 hectares and a maximum gross plot ratio of 2.5. It can be developed for a variety of uses under "Business 1" zoning and has a lease period of 60 years.
URA will launch the public tender for the site in about four weeks.
The land parcel was made available for sale through the Reserve List System.
Under the system, the government will put up a Reserve List Site for public tender if it receives an application from a developer who commits to bid at or above an acceptable minimum price.
- CNA/sc
By Jonathan Peeris | Posted: 11 March 2010 1504 hrs
SINGAPORE: The government has accepted an application from a developer to put up an industrial site at Woodlands Avenue 12 for public tender.
The Urban Redevelopment Authority (URA) said it has received an application from a developer who has committed to bid a price of not less than S$25 million for the land parcel.
The land parcel has a site area of about 3.2 hectares and a maximum gross plot ratio of 2.5. It can be developed for a variety of uses under "Business 1" zoning and has a lease period of 60 years.
URA will launch the public tender for the site in about four weeks.
The land parcel was made available for sale through the Reserve List System.
Under the system, the government will put up a Reserve List Site for public tender if it receives an application from a developer who commits to bid at or above an acceptable minimum price.
- CNA/sc
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