17 Feb 2011,
Son and parents settle dispute over house
THE son said he was not angry that his parents had sued him over the ownership of a terrace house in Langsat Road in Joo Chiat.
But speaking to reporters after both sides had reached an out-of-court settlement yesterday, the parents - Mr Ang Kim Sai and Madam Ang Gim Yen, both 86 - said they were disappointed with their younger son Ang Kok Beng, 57.
The terms of the settlement are confidential.
The parents had bought the double- storey corner house in 1974 for about $100,000. Their older son and daughter were initially registered as the owners because Housing Board regulations prohibited the couple, who already had a flat, from owning the property.
In 1983, the ownership of the house was transferred to their younger son, who is a sub-contractor.
In their suit, the couple contended that they are the owners and that he was holding the house - valued at $2.5 million in 2009 - in trust for them. But the younger Mr Ang said it was a gift.
The hearing started on Monday but ended on Tuesday after Madam Ang, diagnosed with dementia in 2009, took the stand and seemed to have trouble recalling details.
Yesterday, both sides reached a settlement. Speaking to reporters, the younger Mr Ang said he felt 'not bad' about the settlement. He last saw his parents more than a year ago and hoped to see them soon.
'If we continue to fight, both sides lose,' he said.
Madam Ang told reporters their son was 'unfilial' while the father said he had 'no face' in having brought up such a son.
SELINA LUM
Thursday, February 17, 2011
ST : Living under one roof: The more the merrier
17 Feb 2011,
Living under one roof: The more the merrier
Some families are bucking the trend of smaller households
By Cheryl Ong & Ng Kai Ling
LAST year's population census found that the average household size here has shrunk to a new low of 3.5, but some families - a declining minority - are bucking this trend.
These are large families who live together and look out for and help one another.
The four-room flat of the Yeos in Pasir Ris, for example, is home to 11 people: restaurant owner Nicholas Yeo, 32, his wife, 33, their three young children - aged five years to one month old - his sister, parents, grandparents and the family's maid.
Mr Yeo said he chose this living arrangement to teach his children about family values as well as to take care of his parents.
When they visited their relatives and friends during the Chinese New Year, organising the outing was a logistical challenge.
With Mr Yeo's two other sisters, who live elsewhere, and his brother-in-law joining in, they needed three cars, including a borrowed sedan with enough space in the boot for his grandparents' wheelchairs.
At home, having guests over is out of the question, said Mr Yeo, who takes up a bedroom with his wife and children.
'There's no more room,' he said emphatically, adding: 'There're only two bathrooms in the house, so we have to learn to be patient and take turns. I don't want to imagine the day we all get food poisoning!'
He said the best part about the living arrangement is having the family bond over dinner every night: 'The kids get to learn about traditions and the importance of family.'
His parents and grandparents keep an eye on the children while he and his wife are at work.
The census found that the average Chinese household size last year was 3.4 people, down from 3.6 in 2000. The average Indian household size also fell over the period from 3.7 to 3.6, while the number in Malay households held steady at 4.2.
Families like the Yeos, with more than six people under one roof, made up 11.1 per cent of the total number of households last year, down from 12 per cent in 2000.
The number of households with five or more people fell from 29.9 per cent in 2000 to 26.8 per cent last year, while one-person households rose from 8.2 per cent to 12.2 per cent over the same period.
Sociologists said the main reasons household sizes have shrunk are that attitudes towards the composition of a family have changed and parents no longer see children as a safety net of support for when they are old.
Sociologist Paulin Straughan said: 'The notion of filial piety has also been redefined. It no longer means that you have to be living in the same household - just visiting your parents regularly is enough.'
This was what primary school teacher Marion Chew, 35, had planned on doing when she got married in late 2002. She and her husband moved into their matrimonial home, a four-room HDB flat in Woodlands, and for about a year, they visited her parents and in-laws regularly.
Then she became pregnant with twins and her mother wanted to take care of her during the pregnancy, so the couple moved into her parents' landed property in Sembawang - and they have not moved out in the seven years since, even after the birth of their third child, now aged five.
Ms Chew said: 'My parents help to take care of the children while my husband and I are at work. It's the kind of care you can't get anywhere else.'
Their Woodlands flat is being rented out, while her parents' house is now also home to her sister and two maids.
Like Ms Chew, many who live with their parents do so for pragmatic reasons, especially when husband and wife work and have young children.
Take Madam Neo Geok Kuan, a 73-year-old retiree, who gladly plays the role of grandmother-cum-chauffeur.
Her eldest son, tour agency chief John Lew, his wife and two teenage daughters moved in with her and her husband in their semi-detached house in Hong Leong Garden in the West Coast.
She spends her weekdays picking up her two younger sons' children from school, cooking lunch for them and taking them to tuition classes.
In the evenings, her sons gather at her home for dinner.
She said: 'I like being around to help my children, so I don't mind being like the family driver.'
Mr Lew, 49, said the living arrangement is mutually beneficial: 'I feel more at ease knowing my mum is home to oversee the household, and my wife helps to care for my parents when I'm not around.'
kailing@sph.com.sg
ongyiern@sph.com.sg
Living under one roof: The more the merrier
Some families are bucking the trend of smaller households
By Cheryl Ong & Ng Kai Ling
LAST year's population census found that the average household size here has shrunk to a new low of 3.5, but some families - a declining minority - are bucking this trend.
These are large families who live together and look out for and help one another.
The four-room flat of the Yeos in Pasir Ris, for example, is home to 11 people: restaurant owner Nicholas Yeo, 32, his wife, 33, their three young children - aged five years to one month old - his sister, parents, grandparents and the family's maid.
Mr Yeo said he chose this living arrangement to teach his children about family values as well as to take care of his parents.
When they visited their relatives and friends during the Chinese New Year, organising the outing was a logistical challenge.
With Mr Yeo's two other sisters, who live elsewhere, and his brother-in-law joining in, they needed three cars, including a borrowed sedan with enough space in the boot for his grandparents' wheelchairs.
At home, having guests over is out of the question, said Mr Yeo, who takes up a bedroom with his wife and children.
'There's no more room,' he said emphatically, adding: 'There're only two bathrooms in the house, so we have to learn to be patient and take turns. I don't want to imagine the day we all get food poisoning!'
He said the best part about the living arrangement is having the family bond over dinner every night: 'The kids get to learn about traditions and the importance of family.'
His parents and grandparents keep an eye on the children while he and his wife are at work.
The census found that the average Chinese household size last year was 3.4 people, down from 3.6 in 2000. The average Indian household size also fell over the period from 3.7 to 3.6, while the number in Malay households held steady at 4.2.
Families like the Yeos, with more than six people under one roof, made up 11.1 per cent of the total number of households last year, down from 12 per cent in 2000.
The number of households with five or more people fell from 29.9 per cent in 2000 to 26.8 per cent last year, while one-person households rose from 8.2 per cent to 12.2 per cent over the same period.
Sociologists said the main reasons household sizes have shrunk are that attitudes towards the composition of a family have changed and parents no longer see children as a safety net of support for when they are old.
Sociologist Paulin Straughan said: 'The notion of filial piety has also been redefined. It no longer means that you have to be living in the same household - just visiting your parents regularly is enough.'
This was what primary school teacher Marion Chew, 35, had planned on doing when she got married in late 2002. She and her husband moved into their matrimonial home, a four-room HDB flat in Woodlands, and for about a year, they visited her parents and in-laws regularly.
Then she became pregnant with twins and her mother wanted to take care of her during the pregnancy, so the couple moved into her parents' landed property in Sembawang - and they have not moved out in the seven years since, even after the birth of their third child, now aged five.
Ms Chew said: 'My parents help to take care of the children while my husband and I are at work. It's the kind of care you can't get anywhere else.'
Their Woodlands flat is being rented out, while her parents' house is now also home to her sister and two maids.
Like Ms Chew, many who live with their parents do so for pragmatic reasons, especially when husband and wife work and have young children.
Take Madam Neo Geok Kuan, a 73-year-old retiree, who gladly plays the role of grandmother-cum-chauffeur.
Her eldest son, tour agency chief John Lew, his wife and two teenage daughters moved in with her and her husband in their semi-detached house in Hong Leong Garden in the West Coast.
She spends her weekdays picking up her two younger sons' children from school, cooking lunch for them and taking them to tuition classes.
In the evenings, her sons gather at her home for dinner.
She said: 'I like being around to help my children, so I don't mind being like the family driver.'
Mr Lew, 49, said the living arrangement is mutually beneficial: 'I feel more at ease knowing my mum is home to oversee the household, and my wife helps to care for my parents when I'm not around.'
kailing@sph.com.sg
ongyiern@sph.com.sg
ST Forum : Housing woes mar bundles of joy
16 Feb 2011,
Housing woes mar bundles of joy
MY HUSBAND and I welcomed our twin girls last year, and our brood doubled to four children, which forced us to hire a second maid.
Our 75 sq m flat, the smallest four-roomer in our area, could no longer accommodate what was effectively a family of eight, including the domestic help.
So we went through the usual HDB flat-hunting process, applying for build-to-order flats and balance flats, but we could not secure a ballot number.
We then went resale flat hunting, but the high cash-over-valuation and the lower loan amounts offered by the bank because of HDB's new rules meant that we had to fork out at least $80,000.
To meet the requirements of the new rules, we would have had to sell our current flat and move to a rental flat before we could go resale flat hunting. This would entail us moving house twice, with four young children in tow, in order to upgrade to a bigger flat. It proved too hard and we had to abandon the idea.
I then appealed to the HDB to sell us a flat on its list of leftover five-room flats in our vicinity, but it did not reply.
I sought the help of my MP to appeal on my family's behalf. After four letters of appeal, the Housing Board replied that it had only a limited number of returned five-room flats, and our case was not special enough to warrant HDB to look into it.
So while I would love to encourage Singaporeans to have more children, I am forced by my experience to advise them to think twice.
Our parents' generation enjoyed the possibility of upgrading to a bigger HDB flat to accommodate a bigger family.
That avenue does not appear to be available anymore for my husband and me, and our generation.
With limited supply of new flats and competition in the resale market, the HDB's priority is given to first-timers and not upgraders.
If we could have turned back the clock, my husband and I would have stopped at two, because having more children means less space at home.
Lim Yu Hong (Madam)
Housing woes mar bundles of joy
MY HUSBAND and I welcomed our twin girls last year, and our brood doubled to four children, which forced us to hire a second maid.
Our 75 sq m flat, the smallest four-roomer in our area, could no longer accommodate what was effectively a family of eight, including the domestic help.
So we went through the usual HDB flat-hunting process, applying for build-to-order flats and balance flats, but we could not secure a ballot number.
We then went resale flat hunting, but the high cash-over-valuation and the lower loan amounts offered by the bank because of HDB's new rules meant that we had to fork out at least $80,000.
To meet the requirements of the new rules, we would have had to sell our current flat and move to a rental flat before we could go resale flat hunting. This would entail us moving house twice, with four young children in tow, in order to upgrade to a bigger flat. It proved too hard and we had to abandon the idea.
I then appealed to the HDB to sell us a flat on its list of leftover five-room flats in our vicinity, but it did not reply.
I sought the help of my MP to appeal on my family's behalf. After four letters of appeal, the Housing Board replied that it had only a limited number of returned five-room flats, and our case was not special enough to warrant HDB to look into it.
So while I would love to encourage Singaporeans to have more children, I am forced by my experience to advise them to think twice.
Our parents' generation enjoyed the possibility of upgrading to a bigger HDB flat to accommodate a bigger family.
That avenue does not appear to be available anymore for my husband and me, and our generation.
With limited supply of new flats and competition in the resale market, the HDB's priority is given to first-timers and not upgraders.
If we could have turned back the clock, my husband and I would have stopped at two, because having more children means less space at home.
Lim Yu Hong (Madam)
ST Forum : Relook price benchmark for first flats
16 Feb 2011,
Three Budget wishes
Relook price benchmark for first flats
AS THE father of a daughter who will be entering the market for a flat with her fiance for the first time, I wonder if the issue of housing affordability can be addressed if the Housing Board changes the way it sets prices.
Currently, new HDB flat prices are benchmarked against resale transaction prices. This approach worked well in the past because it was aimed at solving a simpler situation reflecting organic population growth and housing upgrading.
Today, while the first-time home market segment remains as robust as it was previously, the resale market has been hammered by a demand shock from a very sizeable segment of permanent residents.
Given that the resale market and first-time segments have different dynamics, and as the prime policy concern is aimed at helping first-time buyers, should we now decouple the benchmarking of new HDB flat prices from resale prices?
There may be alternative ways to set prices that can strongly couple with affordability - for instance, prices can be indexed to a multiple of, say, average starting salaries, or salaries of a percentile of taxpayers in the 25 to 30 age group.
I am not sure if the idea is coloured by my daughter's dilemma, but many of my friends have also confided that they were forced to fork out hefty sums to help their children buy their first flats.
I cannot see how this can be sustainable for future generations when our children's children come knocking.
Chiang Shao Soong
Three Budget wishes
Relook price benchmark for first flats
AS THE father of a daughter who will be entering the market for a flat with her fiance for the first time, I wonder if the issue of housing affordability can be addressed if the Housing Board changes the way it sets prices.
Currently, new HDB flat prices are benchmarked against resale transaction prices. This approach worked well in the past because it was aimed at solving a simpler situation reflecting organic population growth and housing upgrading.
Today, while the first-time home market segment remains as robust as it was previously, the resale market has been hammered by a demand shock from a very sizeable segment of permanent residents.
Given that the resale market and first-time segments have different dynamics, and as the prime policy concern is aimed at helping first-time buyers, should we now decouple the benchmarking of new HDB flat prices from resale prices?
There may be alternative ways to set prices that can strongly couple with affordability - for instance, prices can be indexed to a multiple of, say, average starting salaries, or salaries of a percentile of taxpayers in the 25 to 30 age group.
I am not sure if the idea is coloured by my daughter's dilemma, but many of my friends have also confided that they were forced to fork out hefty sums to help their children buy their first flats.
I cannot see how this can be sustainable for future generations when our children's children come knocking.
Chiang Shao Soong
ST Forum : Make property tax more equitable
16 Feb 2011,
Make property tax more equitable
ACCORDING to Saturday's report ("Housing affordability of key concern"), the general sentiment is that the Government would be dishing out property, utility and service and conservancy rebates, upgrading old estates to increase the supply of HDB flats and providing larger housing grants for lower-income households in this year's Budget.
While these measures would be welcomed, they are just stop-gap measures and do not address the root of the problem: land scarcity in Singapore.
Land scarcity inevitably leads to high property prices as the supply of properties is insufficient to meet demand. Living in landed property is definitely a luxury and to ensure efficient and equitable allocation of resources, luxuries should be priced accordingly to reflect their scarcity. The current property tax policy in Singapore does not adhere to this principle of efficient allocation.
Currently, properties are taxed based on their annual value, which is the estimated amount of rental the properties would fetch if they were to be rented out. At first glance, one might be convinced that the landed property owner is paying a higher property tax and is thus paying a fair price for his luxury. However, the current tax rates fail to separate the concept of property from land.
Take, for example, a bungalow that sits on a 10,000 sq m plot of land could accommodate 40 three-room flats. Thus we can say that for the same size of land, HDB flat dwellers collectively pay a higher amount of tax than a landed property dweller.
Furthermore, the tax places a bigger financial burden on the lower-income group.
A property tax reform where the notions of land and property are separated is due. Property owners should still be taxed based on the estimated rental revenue, but at a lower rate. The balance should come from a land tax, where property owners are taxed based on the size of the plot they occupy and also the share of the plot which they occupy. Thus, the landed property owner would pay tax for the whole of his bungalow, while an HDB flat dweller living in a 20-storey block would pay 1/20 of the land tax. This new tax regime would be more equitable.
Goh Ching Soon
Make property tax more equitable
ACCORDING to Saturday's report ("Housing affordability of key concern"), the general sentiment is that the Government would be dishing out property, utility and service and conservancy rebates, upgrading old estates to increase the supply of HDB flats and providing larger housing grants for lower-income households in this year's Budget.
While these measures would be welcomed, they are just stop-gap measures and do not address the root of the problem: land scarcity in Singapore.
Land scarcity inevitably leads to high property prices as the supply of properties is insufficient to meet demand. Living in landed property is definitely a luxury and to ensure efficient and equitable allocation of resources, luxuries should be priced accordingly to reflect their scarcity. The current property tax policy in Singapore does not adhere to this principle of efficient allocation.
Currently, properties are taxed based on their annual value, which is the estimated amount of rental the properties would fetch if they were to be rented out. At first glance, one might be convinced that the landed property owner is paying a higher property tax and is thus paying a fair price for his luxury. However, the current tax rates fail to separate the concept of property from land.
Take, for example, a bungalow that sits on a 10,000 sq m plot of land could accommodate 40 three-room flats. Thus we can say that for the same size of land, HDB flat dwellers collectively pay a higher amount of tax than a landed property dweller.
Furthermore, the tax places a bigger financial burden on the lower-income group.
A property tax reform where the notions of land and property are separated is due. Property owners should still be taxed based on the estimated rental revenue, but at a lower rate. The balance should come from a land tax, where property owners are taxed based on the size of the plot they occupy and also the share of the plot which they occupy. Thus, the landed property owner would pay tax for the whole of his bungalow, while an HDB flat dweller living in a 20-storey block would pay 1/20 of the land tax. This new tax regime would be more equitable.
Goh Ching Soon
Wednesday, February 16, 2011
ST : Households smaller but more affluent
16 Feb 2011,
Households smaller but more affluent
Changes reflect social transformation in Singapore, says minister
By Andrea Ong
HOUSEHOLDS here have grown smaller over the last decade, while the proportion of families and individuals who now live in condominiums and private flats has nearly doubled in the same period.
These trends were revealed in the latest Census 2010 data on households and housing released yesterday.
And the picture it presented showed that the family unit here has shrunk and grown older - but is generally more affluent compared to 11 years ago.
According to the Census, there were 1.15 million resident households - Singaporeans and permanent residents - last year, a 25 per cent increase from 2000.
The average household size last year was 3.5 people, a drop from 3.7 in 2000.
Data showed that households comprising three or fewer family members made up more than half the total resident households here last year - an increase from 44.5 per cent in 2000.
Commenting yesterday, Community Development, Youth and Sports Minister Vivian Balakrishnan said the changes reflected the 'long-term social transformation occurring in Singapore, lower fertility, an ageing population and more job opportunities in the region'.
'The result of all this is the household size will shrink,' he said. But efforts will continue to be made to ensure 'the family remains the centrepiece of our lives'.
Agreeing, analysts said matters have not been helped by married couples not having children or having fewer children. Singapore's total fertility rate hit a historic low of 1.16 last year.
Explaining the smaller household size, National University of Singapore (NUS) sociologist Tan Ern Ser said it could be due to a growing number of couples and singles across all age groups preferring and having the means to live alone: 'Sometimes, couples may prefer to live with their parents. But it may be more practical to live on their own near their workplace or school of choice.'
The drop in household size was most apparent among the Chinese, where the average size fell to 3.4 from 3.6 in 2000.
The average Indian household size fell to 3.6 from 3.7 in 2000, while it held steady for Malay households at 4.2.
Still, the experts say the smaller size is not cause for concern, unless it leads to social isolation and less support from other family members and caregivers.
'There should not be a problem if they are socially engaged or if they remain integral parts of their families,' said Institute of Policy Studies (IPS) demographer Yap Mui Teng.
The Census also showed a larger proportion of families and individuals lived in condominiums, private flats and landed property compared to 2000.
Last year, 16.9 per cent of households did so, compared to 11.4 per cent in 2000.
The sharpest rise was for those living in condominiums and private flats: 11.2 per cent were in such housing compared to 6.3 per cent in 2000.
While the proportion living in HDB flats declined by 5.3 percentage points to 82.4 per cent last year, five-room and executive flats comprised the only public housing category to see an increase.
The rise in the number living in private housing is possibly a sign of growing affluence, said Dr Yap. It could also be due to a larger supply of such housing types.
It is also part of 'the Singapore dream' to cross over from public to private housing, added Professor Tan.
Other signs of affluence were in the rise in household income among ethnic groups. The median monthly household income from work increased from $3,640 in 2000 to $5,000 last year.
Indians overtook the Chinese as the ethnic group earning the highest household income. Last year, Indian households earned a median monthly income of $5,370. This compares to $5,100 for Chinese and $3,844 for Malay households.
In 2000, Chinese households were the top earners with a median monthly income of $3,880. The shift is probably tied to the growth in the number of better-educated Indian immigrants, said Dr Yap.
Nearly half of married couples last year were also drawing a dual income, compared to 41 per cent in 2000.
The data also pointed to the rise of the professional, well-off single living alone.
One-person households saw the largest growth in percentage points among different household sizes: 12.2 per cent of households had one member last year, compared to 8.2 per cent in 2000.
More than half of them were single, and almost half lived in private housing or HDB flats with at least four rooms, compared to 30.3 per cent in 2000.
This group is likely to grow, said NUS sociologist Paulin Straughan.
Assessing the trends, she said they gave an indication of the future: 'In 20 to 30 years' time, there will be a big chunk of the elderly population living alone, and they will be quite happy to do so. But at some point, they will need support.'
This has implications on government support structures for the elderly, which are 'hinged very much on family'.
Both she and IPS research fellow Kang Soon Hock called for a change in the support strategies. These include more community support facilities for the elderly and more step-down care options such as retirement villages.
andreao@sph.com.sg
Households smaller but more affluent
Changes reflect social transformation in Singapore, says minister
By Andrea Ong
HOUSEHOLDS here have grown smaller over the last decade, while the proportion of families and individuals who now live in condominiums and private flats has nearly doubled in the same period.
These trends were revealed in the latest Census 2010 data on households and housing released yesterday.
And the picture it presented showed that the family unit here has shrunk and grown older - but is generally more affluent compared to 11 years ago.
According to the Census, there were 1.15 million resident households - Singaporeans and permanent residents - last year, a 25 per cent increase from 2000.
The average household size last year was 3.5 people, a drop from 3.7 in 2000.
Data showed that households comprising three or fewer family members made up more than half the total resident households here last year - an increase from 44.5 per cent in 2000.
Commenting yesterday, Community Development, Youth and Sports Minister Vivian Balakrishnan said the changes reflected the 'long-term social transformation occurring in Singapore, lower fertility, an ageing population and more job opportunities in the region'.
'The result of all this is the household size will shrink,' he said. But efforts will continue to be made to ensure 'the family remains the centrepiece of our lives'.
Agreeing, analysts said matters have not been helped by married couples not having children or having fewer children. Singapore's total fertility rate hit a historic low of 1.16 last year.
Explaining the smaller household size, National University of Singapore (NUS) sociologist Tan Ern Ser said it could be due to a growing number of couples and singles across all age groups preferring and having the means to live alone: 'Sometimes, couples may prefer to live with their parents. But it may be more practical to live on their own near their workplace or school of choice.'
The drop in household size was most apparent among the Chinese, where the average size fell to 3.4 from 3.6 in 2000.
The average Indian household size fell to 3.6 from 3.7 in 2000, while it held steady for Malay households at 4.2.
Still, the experts say the smaller size is not cause for concern, unless it leads to social isolation and less support from other family members and caregivers.
'There should not be a problem if they are socially engaged or if they remain integral parts of their families,' said Institute of Policy Studies (IPS) demographer Yap Mui Teng.
The Census also showed a larger proportion of families and individuals lived in condominiums, private flats and landed property compared to 2000.
Last year, 16.9 per cent of households did so, compared to 11.4 per cent in 2000.
The sharpest rise was for those living in condominiums and private flats: 11.2 per cent were in such housing compared to 6.3 per cent in 2000.
While the proportion living in HDB flats declined by 5.3 percentage points to 82.4 per cent last year, five-room and executive flats comprised the only public housing category to see an increase.
The rise in the number living in private housing is possibly a sign of growing affluence, said Dr Yap. It could also be due to a larger supply of such housing types.
It is also part of 'the Singapore dream' to cross over from public to private housing, added Professor Tan.
Other signs of affluence were in the rise in household income among ethnic groups. The median monthly household income from work increased from $3,640 in 2000 to $5,000 last year.
Indians overtook the Chinese as the ethnic group earning the highest household income. Last year, Indian households earned a median monthly income of $5,370. This compares to $5,100 for Chinese and $3,844 for Malay households.
In 2000, Chinese households were the top earners with a median monthly income of $3,880. The shift is probably tied to the growth in the number of better-educated Indian immigrants, said Dr Yap.
Nearly half of married couples last year were also drawing a dual income, compared to 41 per cent in 2000.
The data also pointed to the rise of the professional, well-off single living alone.
One-person households saw the largest growth in percentage points among different household sizes: 12.2 per cent of households had one member last year, compared to 8.2 per cent in 2000.
More than half of them were single, and almost half lived in private housing or HDB flats with at least four rooms, compared to 30.3 per cent in 2000.
This group is likely to grow, said NUS sociologist Paulin Straughan.
Assessing the trends, she said they gave an indication of the future: 'In 20 to 30 years' time, there will be a big chunk of the elderly population living alone, and they will be quite happy to do so. But at some point, they will need support.'
This has implications on government support structures for the elderly, which are 'hinged very much on family'.
Both she and IPS research fellow Kang Soon Hock called for a change in the support strategies. These include more community support facilities for the elderly and more step-down care options such as retirement villages.
andreao@sph.com.sg
ST : Punggol site surprises with $1.02b top bid
16 Feb 2011,
Punggol site surprises with $1.02b top bid
Analysts say bids reflect developers' continuing hunger for unique sites
By Cheryl Lim
A PRIME Punggol waterfront site has attracted a surprisingly high tender of $1.02 billion, amid a fierce bidding battle between seven development groups.
Analysts had predicted that the 30ha plot at Punggol Central and Punggol Walk would attract plenty of interest but even they were surprised by the response.
The top bid - it was lodged by a joint venture comprising Frasers Centrepoint, Far East Organization and Sekisui House - works out to $753 per square foot, well above the $450 psf predicted.
The bid was also more than four times as high as the lowest at $250 million, which was submitted by Mezzo Development.
It was 20 per cent ahead of the $850 million second-place bid submitted by a joint venture between Mr Pua Seck Guan, Osim International founder Ron Sim and QingDao Construction.
Keppel Group was next with a $786 million bid, CapitaLand and CapitaMalls Asia bid $764 million, while Singapore Press Holdings teamed up with United Engineers with an offer of $693 million. Two GuocoLand units jointly tendered $681 million.
The winning group said yesterday that it wanted to build a waterfront development with about 680 flats with water views and a shopping mall with an estimated 365,000 sq ft of lettable space.
The development would be integrated with the upcoming town square and riverside promenade.
The developer will have to complete the project within seven years.
Credo Real Estate executive director Ong Teck Hui said the top bid was an optimistic one that leveraged on the long-term prospects of the blossoming new town.
Mr Nicholas Mak, executive director of research and consultancy at SLP International, said the bids reflected the fact that developers are still hungry for attractive sites, especially those with unique selling points.
Mr Mak said the healthy interest from developers could also be attributed to a number of different factors.
He said the winner of the tender would be able to lay claim to the first mixed-use site to be built by private developers. The commercial element would allow the site to be developed into the first retail mall in Punggol, giving a first-mover advantage in the up-and-coming residential area.
'Punggol has an expanding young middle-class population. Some of the HDB flats are more than five years old. Therefore, there could be a healthy upgraders demand for private homes in this housing estate,' said Mr Mak.
Mr Ong agreed: 'Pricing for residential and retail rentals can be expected to be optimistic given the site's prime location next to the Punggol MRT station, proximity to the bus interchange, schools and other amenities.'
cherlim@sph.com.sg
Punggol site surprises with $1.02b top bid
Analysts say bids reflect developers' continuing hunger for unique sites
By Cheryl Lim
A PRIME Punggol waterfront site has attracted a surprisingly high tender of $1.02 billion, amid a fierce bidding battle between seven development groups.
Analysts had predicted that the 30ha plot at Punggol Central and Punggol Walk would attract plenty of interest but even they were surprised by the response.
The top bid - it was lodged by a joint venture comprising Frasers Centrepoint, Far East Organization and Sekisui House - works out to $753 per square foot, well above the $450 psf predicted.
The bid was also more than four times as high as the lowest at $250 million, which was submitted by Mezzo Development.
It was 20 per cent ahead of the $850 million second-place bid submitted by a joint venture between Mr Pua Seck Guan, Osim International founder Ron Sim and QingDao Construction.
Keppel Group was next with a $786 million bid, CapitaLand and CapitaMalls Asia bid $764 million, while Singapore Press Holdings teamed up with United Engineers with an offer of $693 million. Two GuocoLand units jointly tendered $681 million.
The winning group said yesterday that it wanted to build a waterfront development with about 680 flats with water views and a shopping mall with an estimated 365,000 sq ft of lettable space.
The development would be integrated with the upcoming town square and riverside promenade.
The developer will have to complete the project within seven years.
Credo Real Estate executive director Ong Teck Hui said the top bid was an optimistic one that leveraged on the long-term prospects of the blossoming new town.
Mr Nicholas Mak, executive director of research and consultancy at SLP International, said the bids reflected the fact that developers are still hungry for attractive sites, especially those with unique selling points.
Mr Mak said the healthy interest from developers could also be attributed to a number of different factors.
He said the winner of the tender would be able to lay claim to the first mixed-use site to be built by private developers. The commercial element would allow the site to be developed into the first retail mall in Punggol, giving a first-mover advantage in the up-and-coming residential area.
'Punggol has an expanding young middle-class population. Some of the HDB flats are more than five years old. Therefore, there could be a healthy upgraders demand for private homes in this housing estate,' said Mr Mak.
Mr Ong agreed: 'Pricing for residential and retail rentals can be expected to be optimistic given the site's prime location next to the Punggol MRT station, proximity to the bus interchange, schools and other amenities.'
cherlim@sph.com.sg
ST : Work starts on next phase of Fusionopolis
16 Feb 2011,
Work starts on next phase of Fusionopolis
WORK has started on the next phase of technology and research hub Fusionopolis at one-north in Buona Vista.
Two new towers - 18 storeys and 11 storeys respectively - will be built at the junction of Fusionopolis Way and Ayer Rajah Avenue, in what will become Fusionopolis Phase 2A.
Industrial landlord JTC Corporation, which is overseeing the development of one-north, has called a tender for the construction and completion of all the works for both towers, it said yesterday.
JTC aims to develop Fusionopolis Phase 2A into a research node 'that will nurture a vibrant research community', it added.
To this end, Phase 2A will take up a 1.04ha site with an approximate gross floor area of 904,168 sq ft. This will include a multi-storey business park, wet/dry laboratories and office areas.
JTC has previously said that Phase 2A, which will feature Singapore's largest R&D clean-room facility, should be ready by 2013.
Phase 1 was officially opened in October 2008 and Phase 2B was completed early this year.
JTC is planning to launch the site for Phase 3 by the end of this month.
Work starts on next phase of Fusionopolis
WORK has started on the next phase of technology and research hub Fusionopolis at one-north in Buona Vista.
Two new towers - 18 storeys and 11 storeys respectively - will be built at the junction of Fusionopolis Way and Ayer Rajah Avenue, in what will become Fusionopolis Phase 2A.
Industrial landlord JTC Corporation, which is overseeing the development of one-north, has called a tender for the construction and completion of all the works for both towers, it said yesterday.
JTC aims to develop Fusionopolis Phase 2A into a research node 'that will nurture a vibrant research community', it added.
To this end, Phase 2A will take up a 1.04ha site with an approximate gross floor area of 904,168 sq ft. This will include a multi-storey business park, wet/dry laboratories and office areas.
JTC has previously said that Phase 2A, which will feature Singapore's largest R&D clean-room facility, should be ready by 2013.
Phase 1 was officially opened in October 2008 and Phase 2B was completed early this year.
JTC is planning to launch the site for Phase 3 by the end of this month.
ST : Private home sales feeling the chill of cooling measures
16 Feb 2011,
Private home sales feeling the chill of cooling measures
January numbers down 11%, but still higher than expected by analysts
By Esther Teo
PRIVATE home sales stayed buoyant last month, but experts believe the cooling measures imposed in the middle of the month will likely take some of the heat out of the market.
That will not be apparent until this month's numbers are released next month, but figures out yesterday have given the industry plenty to digest.
They showed that 1,189 new units were sold last month, 11 per cent down on December and nearly 40 per cent lower than November, but higher than expected by market watchers.
If sales at executive condominium estates such as Prive and Austville Residences were included, last month's sales would be 1,534 units.
But early signs have emerged that the tougher new rules, which include a sellers' stamp duty of up to 16 per cent, might have dampened sales activity and prompted some buyers to rethink their purchases.
Mr Li Hiaw Ho, executive director of CB Richard Ellis (CBRE) Research, can point to about 30 cancellations for units at new launches at The Tennery, Robinson Suites and the Prive last month.
Last month's lower sales could also be due to the measures weeding out purchases by short-term investors. Genuine buyers who bought either for occupation or long-term investment were likely to have made up January's figures, said Mr Li.
Jones Lang LaSalle's (JLL) head of research for South-east Asia, Dr Chua Yang Liang, added that new projects launched last month generally saw a take-up rate of under 50 per cent.
But Spottiswoode 18 and Loft@Holland, which have a large number of so-called shoebox apartments of less than 500 sq ft, were some of the exceptions, with more than 80 per cent of units launched last month snapped up.
These small-sized flats saw robust sales as their lower overall price attracts both owner-occupiers and investors, said Mr Png Poh Soon, Knight Frank's head of research and consultancy.
Most homes sold last month were in the suburban and city fringe areas. The city fringe was especially popular, with sales up 42 per cent to 401 units compared with December's numbers.
'The provides support...to our view that prime properties are likely to see better performances this year as savvy investors return to pick up bargains in this segment of the market,' said JLL's Dr Chua.
The luxury market also enjoyed a fair level of interest, particularly projects that were newly completed or approaching completion, said CBRE's Mr Li.
The most expensive properties sold last month were three units of Scotts Square, which went for a median price of $4,621 per sq ft (psf), and a unit of The Orchard Residences at $4,258 psf.
OrangeTee Research, however, found that islandwide median prices inched up 1.8 per cent to $1,573 psf from the previous month. This could be due to the large number of shoebox apartments being sold, which generally have a relatively higher psf price.
Experts say that current market sentiment may not be easily subdued in the short term as the vibrant buying has been driven largely by record low interest rates and an economy flush with cash.
The brakes might be applied when interest rates start to rise and an increase in supply enters the market in the next few quarters from the recent government land sales, said Ms Christine Sun, senior manager at Savills Research & Consultancy.
'As it stands, the cumulative units launched but unsold have been increasing over the past few months, indicating that supply has already started to outstrip demand...Therefore, some downward pressure on mass-market home prices could be expected in the months ahead,' she said.
Knight Frank's Mr Poh estimates that between 800 and 900 homes will be bought this month. Propnex chief executive Mohamed Ismail expects close to 1,000, as almost 500 units have already been sold, he said.
Last month's top-selling projects included Spottiswoode 18, with 204 units sold at a median price of $1,992 psf, and Canberra Residences, where 155 flats went at a median price of $831 psf.
esthert@sph.com.sg
Private home sales feeling the chill of cooling measures
January numbers down 11%, but still higher than expected by analysts
By Esther Teo
PRIVATE home sales stayed buoyant last month, but experts believe the cooling measures imposed in the middle of the month will likely take some of the heat out of the market.
That will not be apparent until this month's numbers are released next month, but figures out yesterday have given the industry plenty to digest.
They showed that 1,189 new units were sold last month, 11 per cent down on December and nearly 40 per cent lower than November, but higher than expected by market watchers.
If sales at executive condominium estates such as Prive and Austville Residences were included, last month's sales would be 1,534 units.
But early signs have emerged that the tougher new rules, which include a sellers' stamp duty of up to 16 per cent, might have dampened sales activity and prompted some buyers to rethink their purchases.
Mr Li Hiaw Ho, executive director of CB Richard Ellis (CBRE) Research, can point to about 30 cancellations for units at new launches at The Tennery, Robinson Suites and the Prive last month.
Last month's lower sales could also be due to the measures weeding out purchases by short-term investors. Genuine buyers who bought either for occupation or long-term investment were likely to have made up January's figures, said Mr Li.
Jones Lang LaSalle's (JLL) head of research for South-east Asia, Dr Chua Yang Liang, added that new projects launched last month generally saw a take-up rate of under 50 per cent.
But Spottiswoode 18 and Loft@Holland, which have a large number of so-called shoebox apartments of less than 500 sq ft, were some of the exceptions, with more than 80 per cent of units launched last month snapped up.
These small-sized flats saw robust sales as their lower overall price attracts both owner-occupiers and investors, said Mr Png Poh Soon, Knight Frank's head of research and consultancy.
Most homes sold last month were in the suburban and city fringe areas. The city fringe was especially popular, with sales up 42 per cent to 401 units compared with December's numbers.
'The provides support...to our view that prime properties are likely to see better performances this year as savvy investors return to pick up bargains in this segment of the market,' said JLL's Dr Chua.
The luxury market also enjoyed a fair level of interest, particularly projects that were newly completed or approaching completion, said CBRE's Mr Li.
The most expensive properties sold last month were three units of Scotts Square, which went for a median price of $4,621 per sq ft (psf), and a unit of The Orchard Residences at $4,258 psf.
OrangeTee Research, however, found that islandwide median prices inched up 1.8 per cent to $1,573 psf from the previous month. This could be due to the large number of shoebox apartments being sold, which generally have a relatively higher psf price.
Experts say that current market sentiment may not be easily subdued in the short term as the vibrant buying has been driven largely by record low interest rates and an economy flush with cash.
The brakes might be applied when interest rates start to rise and an increase in supply enters the market in the next few quarters from the recent government land sales, said Ms Christine Sun, senior manager at Savills Research & Consultancy.
'As it stands, the cumulative units launched but unsold have been increasing over the past few months, indicating that supply has already started to outstrip demand...Therefore, some downward pressure on mass-market home prices could be expected in the months ahead,' she said.
Knight Frank's Mr Poh estimates that between 800 and 900 homes will be bought this month. Propnex chief executive Mohamed Ismail expects close to 1,000, as almost 500 units have already been sold, he said.
Last month's top-selling projects included Spottiswoode 18, with 204 units sold at a median price of $1,992 psf, and Canberra Residences, where 155 flats went at a median price of $831 psf.
esthert@sph.com.sg
ST Forum : En bloc interest: Law requires conflict of interest declaration
15 Feb 2011,
En bloc interest: Law requires conflict of interest declaration
MS GRACE Francis suggested that those interested in running for office in an estate declare non-conflict of interest ("En bloc roadblocks"; last Thursday).
With the amendments to the Land Titles (Strata) Act in 2010, candidates standing for election to the collective sale committee (CSC) and any existing CSC members are required to declare any conflict of interest. This includes any direct or indirect interest in entities such as property developer and property consultant, and the extent of ownership they or persons connected to them (such as immediate family members) have in the strata development.
Ms Francis also commented that there are pro-en bloc residents who join the estate's management corporation (MC) council and oppose attempts to improve the estate.
Under the Building Maintenance and Strata Management Act, the MC council is duty-bound to ensure that the estate is well-maintained and kept in a state of good and serviceable repair.
Should the MC council fail to perform its duties, subsidiary proprietors/owners can seek redress through the Strata Titles Boards or the court to compel the MC council to perform its duties.
Chong Wan Yieng (Ms)
Director
Corporate Communications Division
Ministry of Law
En bloc interest: Law requires conflict of interest declaration
MS GRACE Francis suggested that those interested in running for office in an estate declare non-conflict of interest ("En bloc roadblocks"; last Thursday).
With the amendments to the Land Titles (Strata) Act in 2010, candidates standing for election to the collective sale committee (CSC) and any existing CSC members are required to declare any conflict of interest. This includes any direct or indirect interest in entities such as property developer and property consultant, and the extent of ownership they or persons connected to them (such as immediate family members) have in the strata development.
Ms Francis also commented that there are pro-en bloc residents who join the estate's management corporation (MC) council and oppose attempts to improve the estate.
Under the Building Maintenance and Strata Management Act, the MC council is duty-bound to ensure that the estate is well-maintained and kept in a state of good and serviceable repair.
Should the MC council fail to perform its duties, subsidiary proprietors/owners can seek redress through the Strata Titles Boards or the court to compel the MC council to perform its duties.
Chong Wan Yieng (Ms)
Director
Corporate Communications Division
Ministry of Law
ST : Property agent jailed for cheating and forgery
15 Feb 2011,
Property agent jailed for cheating and forgery
By Khushwant Singh
BETWEEN November 2007 and February last year, property agent Anika Priyadharshini cheated clients and credit companies of nearly $292,000.
Priyadharshini, 38, was jailed 41/2 years by a district court yesterday.
The mother of three, who is twice divorced, pleaded guilty to 23 charges. The judge took into consideration 44 other charges when passing sentence.
She was an agent with DTZ Debenham Tie Leung when she met Ms Lohambal Doraisamy, 49, in a temple in late 2008.
In December that year, Priyadharshini claimed that she had been able to convince a seller of a Bukit Panjang flat to lower his asking price by $20,000.
She then pocketed the $40,000 that Ms Doraisamy handed over to her as a deposit to buy the unit.
A month later, she convinced Ms Doraisamy to hand over $14,390 for stamp duties.
During that period, the agent also led a computer programmer to believe that she had a flat to rent out. She then disappeared with the $4,410 he gave her as the rental and security deposit.
She also forged court papers to state that she would receive the full proceeds from the sale of her matrimonial flat after her divorce proceedings. This allowed her to get a $15,000 loan from a licensed moneylender in High Street Plaza.
Priyadharshini, a bankrupt, also lied on the loan application form about her bankruptcy status.
The court heard that she used her boyfriend's particulars to apply for credit cards and used these for fraudulent purchases amounting to $9,680.
She also used the identity cards of her clients to subscribe to cellphone plans.
Police recovered only $163,000 from her. Defence counsel Sunil Sudheesan said that she would be getting $57,000 from the sale of a flat and this would be used to pay the credit companies.
For each cheating offence, she could have been jailed for up to 10 years and fined up to $10,000.
Property agent jailed for cheating and forgery
By Khushwant Singh
BETWEEN November 2007 and February last year, property agent Anika Priyadharshini cheated clients and credit companies of nearly $292,000.
Priyadharshini, 38, was jailed 41/2 years by a district court yesterday.
The mother of three, who is twice divorced, pleaded guilty to 23 charges. The judge took into consideration 44 other charges when passing sentence.
She was an agent with DTZ Debenham Tie Leung when she met Ms Lohambal Doraisamy, 49, in a temple in late 2008.
In December that year, Priyadharshini claimed that she had been able to convince a seller of a Bukit Panjang flat to lower his asking price by $20,000.
She then pocketed the $40,000 that Ms Doraisamy handed over to her as a deposit to buy the unit.
A month later, she convinced Ms Doraisamy to hand over $14,390 for stamp duties.
During that period, the agent also led a computer programmer to believe that she had a flat to rent out. She then disappeared with the $4,410 he gave her as the rental and security deposit.
She also forged court papers to state that she would receive the full proceeds from the sale of her matrimonial flat after her divorce proceedings. This allowed her to get a $15,000 loan from a licensed moneylender in High Street Plaza.
Priyadharshini, a bankrupt, also lied on the loan application form about her bankruptcy status.
The court heard that she used her boyfriend's particulars to apply for credit cards and used these for fraudulent purchases amounting to $9,680.
She also used the identity cards of her clients to subscribe to cellphone plans.
Police recovered only $163,000 from her. Defence counsel Sunil Sudheesan said that she would be getting $57,000 from the sale of a flat and this would be used to pay the credit companies.
For each cheating offence, she could have been jailed for up to 10 years and fined up to $10,000.
ST : Parents suing son over house ownership
15 Feb 2011,
Parents suing son over house ownership
They say son is holding property in trust; he says it was a gift to him
By Selina Lum
A MARRIED couple are suing their younger son over a terrace house in Joo Chiat.
Mr Ang Kim Sai and Madam Ang Gim Yen, both 86, said they are the actual owners and that their son, Mr Ang Kok Beng, 57, is holding the property in trust for them. But the son contended that it was given to him when it was transferred to his name in 1983.
The double-storey house in Langsat Road was bought for about $100,000 in 1974 and valued at $2.5 million in 2009.
The 10-day hearing opened in the High Court yesterday.
Mr Ang Kim Sai, a former Chinese physician, and his wife, a former teacher, have four children, one of whom has died. The elder Mr Ang also has a child with his mistress.
At the time, the couple's understanding of the Housing Board policy was that they were prohibited from being registered as legal owners of the house because they already owned an HDB flat.
They decided to buy the house in the names of their elder son Ang Thye Peng and eldest daughter Ang Keng Hui.
They paid the entire purchase price, stamp fees and legal costs.
In 1977, the daughter's name was withdrawn because she wanted to buy an HDB flat with her own family.
In 1983, the elder son's name was withdrawn too and the house was transferred to Mr Ang Kok Beng.
Mr Ang Thye Peng testified in court yesterday that he moved out because his wife and his mother could not get along and his mother wanted to rent out the master bedroom of the house.
In February last year, the couple proposed in a note to Mr Ang Kok Beng, a sub-contractor, that the house be sold and he be given 46.6 per cent of the sale proceeds, with the rest distributed among the other siblings and grandchildren.
He refused and the couple instructed lawyers to start legal action against him.
It was then discovered that in December 2009, Mr Ang Kok Beng had applied for a replacement title certificate to be issued to him when he made a statutory declaration that he had lost the title deed.
The couple contended that, in doing so, he was wrongfully trying to "convert the property to his own".
Mr Ang Kok Beng asserted that when the property was transferred to his name, his mother "specifically told" him it was a gift as he was the youngest male child in the family.
The couple denied this and said there was no reason to give him the house, favouring him over the other children.
The couple argued that even after the property was registered in Mr Ang Kok Beng's name, the title deed and all other documents were kept by them.
Madam Ang also controlled all affairs relating to the house, like arranging payments for the maintenance, property tax and utilities. She also sought tenants and collected rent.
But Mr Ang Kok Beng contended that he agreed to allow his mother to collect rent and that the original title was kept with her for convenience.
He argued that if his parents intended for him to hold the house in trust for them, why had lawyers prepared a transfer document instead of a trust deed?
He also questioned why, if his mother still considered herself the beneficial owner of the house, she had not mentioned the property in a will she made in 1998.
The trial continues.
selinal@sph.com.sg
The house in Langsat Road was bought for about $100,000 in 1974 and valued at $2.5 million in 2009. -- ST PHOTO: SAMUEL HE
Parents suing son over house ownership
They say son is holding property in trust; he says it was a gift to him
By Selina Lum
A MARRIED couple are suing their younger son over a terrace house in Joo Chiat.
Mr Ang Kim Sai and Madam Ang Gim Yen, both 86, said they are the actual owners and that their son, Mr Ang Kok Beng, 57, is holding the property in trust for them. But the son contended that it was given to him when it was transferred to his name in 1983.
The double-storey house in Langsat Road was bought for about $100,000 in 1974 and valued at $2.5 million in 2009.
The 10-day hearing opened in the High Court yesterday.
Mr Ang Kim Sai, a former Chinese physician, and his wife, a former teacher, have four children, one of whom has died. The elder Mr Ang also has a child with his mistress.
At the time, the couple's understanding of the Housing Board policy was that they were prohibited from being registered as legal owners of the house because they already owned an HDB flat.
They decided to buy the house in the names of their elder son Ang Thye Peng and eldest daughter Ang Keng Hui.
They paid the entire purchase price, stamp fees and legal costs.
In 1977, the daughter's name was withdrawn because she wanted to buy an HDB flat with her own family.
In 1983, the elder son's name was withdrawn too and the house was transferred to Mr Ang Kok Beng.
Mr Ang Thye Peng testified in court yesterday that he moved out because his wife and his mother could not get along and his mother wanted to rent out the master bedroom of the house.
In February last year, the couple proposed in a note to Mr Ang Kok Beng, a sub-contractor, that the house be sold and he be given 46.6 per cent of the sale proceeds, with the rest distributed among the other siblings and grandchildren.
He refused and the couple instructed lawyers to start legal action against him.
It was then discovered that in December 2009, Mr Ang Kok Beng had applied for a replacement title certificate to be issued to him when he made a statutory declaration that he had lost the title deed.
The couple contended that, in doing so, he was wrongfully trying to "convert the property to his own".
Mr Ang Kok Beng asserted that when the property was transferred to his name, his mother "specifically told" him it was a gift as he was the youngest male child in the family.
The couple denied this and said there was no reason to give him the house, favouring him over the other children.
The couple argued that even after the property was registered in Mr Ang Kok Beng's name, the title deed and all other documents were kept by them.
Madam Ang also controlled all affairs relating to the house, like arranging payments for the maintenance, property tax and utilities. She also sought tenants and collected rent.
But Mr Ang Kok Beng contended that he agreed to allow his mother to collect rent and that the original title was kept with her for convenience.
He argued that if his parents intended for him to hold the house in trust for them, why had lawyers prepared a transfer document instead of a trust deed?
He also questioned why, if his mother still considered herself the beneficial owner of the house, she had not mentioned the property in a will she made in 1998.
The trial continues.
selinal@sph.com.sg
The house in Langsat Road was bought for about $100,000 in 1974 and valued at $2.5 million in 2009. -- ST PHOTO: SAMUEL HE
ST : HDB scraps scheme for siblings to buy flats
15 Feb 2011,
HDB scraps scheme for siblings to buy flats
It's not needed since subletting market has been liberalised: MND
By Jessica Cheam
THE Government has moved quickly to scrap a scheme that allows siblings whose parents live overseas to buy HDB flats, after unhappiness surfaced online recently over how it seemed to favour permanent residents over citizens.
Senior Minister of State for National Development Grace Fu yesterday told Parliament that the Housing Board would discontinue the scheme with immediate effect as it "is no longer necessary".
It was introduced in 1990 to enable unmarried Singaporean and PR siblings to buy an HDB flat. To qualify, their parents cannot own another HDB flat and must reside overseas.
"This was necessary then because the sublet market for HDB flats and rooms was limited, and there were few viable housing options for these siblings," Ms Fu said in response to Marine Parade GRC MP Lim Biow Chuan's question.
Under the scheme, Singaporean siblings could buy a new or resale flat while PR siblings could buy only a resale flat.
Ms Fu also revealed that only about 300 such cases got the go-ahead each year. That is less than 1 per cent of total flat transactions.
But there was no longer a need for the scheme, she said, because "with the liberalisation of the subletting market for HDB flats over the years, unmarried Singaporean or PR siblings whose parents are residing overseas can now rent a room or a small flat from the open market".
The HDB first announced a review of the scheme last month, after The Straits Times sent in questions about netizens' perception that the scheme enabled unmarried PR siblings above the age of 21 to buy HDB resale flats, whereas Singapore citizen siblings could not.
The HDB later clarified that citizen siblings whose parents live abroad can also apply to buy resale flats and that all such applications will be considered on a case-by-case basis.
But now, the Government has decided to do away with that scheme altogether.
Citizens who are single and aged 35 or older can buy a resale flat under the Single Singapore Citizen Scheme. Unmarried siblings whose parents are dead can also buy flats under the Orphans Scheme.
When contacted, Forum letter writer Tony Tan Keng Hong, 33, who raised this issue previously, said he was glad that the scheme has been discontinued.
"I think it's a fair policy. HDB flats are meant for families primarily," he said.
During yesterday's Parliament sitting, National Development Minister Mah Bow Tan also fielded questions on the property cooling measures introduced last month. He said they were "pre-emptive in nature" as the Government wanted to act before a property bubble formed.
It was too early to say how effective the measures have been. The Government "will continue to monitor the property market closely", he added.
Mr Mah revealed last Sunday that the median cash-over-valuation for HDB resale transactions in January has dipped to $20,000, from $23,000 in the fourth quarter of last year.
jcheam@sph.com.sg
HDB scraps scheme for siblings to buy flats
It's not needed since subletting market has been liberalised: MND
By Jessica Cheam
THE Government has moved quickly to scrap a scheme that allows siblings whose parents live overseas to buy HDB flats, after unhappiness surfaced online recently over how it seemed to favour permanent residents over citizens.
Senior Minister of State for National Development Grace Fu yesterday told Parliament that the Housing Board would discontinue the scheme with immediate effect as it "is no longer necessary".
It was introduced in 1990 to enable unmarried Singaporean and PR siblings to buy an HDB flat. To qualify, their parents cannot own another HDB flat and must reside overseas.
"This was necessary then because the sublet market for HDB flats and rooms was limited, and there were few viable housing options for these siblings," Ms Fu said in response to Marine Parade GRC MP Lim Biow Chuan's question.
Under the scheme, Singaporean siblings could buy a new or resale flat while PR siblings could buy only a resale flat.
Ms Fu also revealed that only about 300 such cases got the go-ahead each year. That is less than 1 per cent of total flat transactions.
But there was no longer a need for the scheme, she said, because "with the liberalisation of the subletting market for HDB flats over the years, unmarried Singaporean or PR siblings whose parents are residing overseas can now rent a room or a small flat from the open market".
The HDB first announced a review of the scheme last month, after The Straits Times sent in questions about netizens' perception that the scheme enabled unmarried PR siblings above the age of 21 to buy HDB resale flats, whereas Singapore citizen siblings could not.
The HDB later clarified that citizen siblings whose parents live abroad can also apply to buy resale flats and that all such applications will be considered on a case-by-case basis.
But now, the Government has decided to do away with that scheme altogether.
Citizens who are single and aged 35 or older can buy a resale flat under the Single Singapore Citizen Scheme. Unmarried siblings whose parents are dead can also buy flats under the Orphans Scheme.
When contacted, Forum letter writer Tony Tan Keng Hong, 33, who raised this issue previously, said he was glad that the scheme has been discontinued.
"I think it's a fair policy. HDB flats are meant for families primarily," he said.
During yesterday's Parliament sitting, National Development Minister Mah Bow Tan also fielded questions on the property cooling measures introduced last month. He said they were "pre-emptive in nature" as the Government wanted to act before a property bubble formed.
It was too early to say how effective the measures have been. The Government "will continue to monitor the property market closely", he added.
Mr Mah revealed last Sunday that the median cash-over-valuation for HDB resale transactions in January has dipped to $20,000, from $23,000 in the fourth quarter of last year.
jcheam@sph.com.sg
ST : Showing the real picture in that dream home
15 Feb 2011,
Showing the real picture in that dream home
THE Urban Redevelopment Authority's (URA's) recent announcement that it is reviewing its rules for developers to provide "more accurate and transparent information on housing projects" is indeed welcome.
In particular, its review of the Housing Developers (Control & Licensing) Act and Housing Developers Rules will ensure that showflats look like the apartments that eventually get built so that buyers get what they pay for.
The move will effectively stop developers who take artistic licence with display homes by removing structural walls and columns and placing ceilings high to make units look bigger than they will actually be. They would also now have to represent accurately the presence of bomb shelters in the units. This is especially timely as property, despite the recent cooling measures introduced by the Government, is still a hot buy, whether it be for keeps or as an investment.
Also, the recent popularity of shoebox flats - those under 500 sq ft in size - has upped the ante in creative marketing by some developers. Some smaller flats even brand themselves grandly as SOHO flats - for both residential and office use - when they are merely small apartments.
Showflats have always indulged in some measure of smoke and mirrors to mask awkward spaces and unsightly flaws. They are meant to dazzle potential buyers with their bright lights, glass partitions and crystal chandeliers, to give the illusion that there is more than meets the eye. And this creative obfuscation has largely been an acceptable part of the wooing process. However, the tiny size of shoebox flats has thrown fiction harshly against fact as more and more disgruntled buyers have been shocked by the reality of their purchases. These are also buyers who have paid more per square foot for their smaller units in order to grab their slice of the property pie at an affordable budget.
Ultimately, buyers should take responsibility for their decisions and examine closely their proposed purchases before committing themselves to hundreds of thousands of dollars. That said, the property market, especially in Singapore, has never been driven purely by logic, but also by sheer emotion, which makes the URA's decision all the more crucial.
As long as property, which necessitates a large capital outlay, is seen as the holy grail of investments, taking up a huge chunk of one's savings, one definitely has a right to transparency, which includes the accurate representation of showflats. Marketing can legitimately soften the edges perhaps, but not blur reality.
Showing the real picture in that dream home
THE Urban Redevelopment Authority's (URA's) recent announcement that it is reviewing its rules for developers to provide "more accurate and transparent information on housing projects" is indeed welcome.
In particular, its review of the Housing Developers (Control & Licensing) Act and Housing Developers Rules will ensure that showflats look like the apartments that eventually get built so that buyers get what they pay for.
The move will effectively stop developers who take artistic licence with display homes by removing structural walls and columns and placing ceilings high to make units look bigger than they will actually be. They would also now have to represent accurately the presence of bomb shelters in the units. This is especially timely as property, despite the recent cooling measures introduced by the Government, is still a hot buy, whether it be for keeps or as an investment.
Also, the recent popularity of shoebox flats - those under 500 sq ft in size - has upped the ante in creative marketing by some developers. Some smaller flats even brand themselves grandly as SOHO flats - for both residential and office use - when they are merely small apartments.
Showflats have always indulged in some measure of smoke and mirrors to mask awkward spaces and unsightly flaws. They are meant to dazzle potential buyers with their bright lights, glass partitions and crystal chandeliers, to give the illusion that there is more than meets the eye. And this creative obfuscation has largely been an acceptable part of the wooing process. However, the tiny size of shoebox flats has thrown fiction harshly against fact as more and more disgruntled buyers have been shocked by the reality of their purchases. These are also buyers who have paid more per square foot for their smaller units in order to grab their slice of the property pie at an affordable budget.
Ultimately, buyers should take responsibility for their decisions and examine closely their proposed purchases before committing themselves to hundreds of thousands of dollars. That said, the property market, especially in Singapore, has never been driven purely by logic, but also by sheer emotion, which makes the URA's decision all the more crucial.
As long as property, which necessitates a large capital outlay, is seen as the holy grail of investments, taking up a huge chunk of one's savings, one definitely has a right to transparency, which includes the accurate representation of showflats. Marketing can legitimately soften the edges perhaps, but not blur reality.
ST : Robust sales at new launches
15 Feb 2011,
Robust sales at new launches
270 out of 384 units sold at Waterfront Isle; sales good at other projects too
By Cheryl Lim
SALES have been robust at new property launches across the island, with buyers especially keen on Waterfront Isle near Bedok Reservoir.
Of the 384 flats released for sale at the 561-unit estate, 270 have been sold.
Prices were about $922 per sq ft (psf) when the condominium - a joint venture by Far East Organization and Frasers Centrepoint - was launched on Feb 5, but have since risen to $936 psf.
Waterfront Isle's one-bedroom units of 592 sq ft are selling from $575,000. The Straits Times understands that the prices of some units with a reservoir view have climbed to an average of $1,050 psf.
Preview sales at other new developments paint an equally robust picture.
Oxley Holdings' Loft@Stevens in Stevens Road has sold between 70 per cent and 80 per cent of its 44 units. Most of the apartments at this freehold condo in District 10 are small one-bedders between 335 sq ft and 570 sq ft. Agents said only two or three of these units were left after yesterday's preview sale.
The six-storey development has a mix of one- and two-bedders with prices starting at $720,000 for a 335 sq ft unit.
Nin Residences in Pheng Geck Avenue in Potong Pasir was also well-received, with almost half of the 219 units sold. The 99-year leasehold project is being developed by Qingjian Realty and comprises two blocks, one of five storeys, the other 19.
Nin Residences has one-, two- and three-bedroom units with prices between $1,200 psf and $1,300 psf. A 452 sq ft one-bedder starts from around $700,000.
Meanwhile, experts are about to get a better picture of the market.
The Urban Redevelopment Authority said developers sold 1,332 private homes in December. But market watchers predict the latest figures for last month, set to be out today, will reflect a more subdued market.
Mr Eugene Lim, key executive officer at ERA, expects sales to have dipped below the 1,000 mark.
Although sales last month were off to a strong start, they were dampened in the second half of the month by the twin factors of festive celebrations and the Government's cooling measures, said PropNex chief executive Mohamed Ismail.
ERA's Mr Lim said a clearer snapshot of the market might emerge next month, with this month's data likely to show a carry-over effect from the Chinese New Year period.
"Several projects like The Tennery, Canberra Residences and Waterfront Isle have chalked up respectable sales in the current market climate," said Mr Lim.
"This shows speculators are being priced out and there is a ready pool of serious buyers, with most understanding that property is not a short-term investment."
cherlim@sph.com.sg
An artist's impression of the 561-unit Waterfront Isle near Bedok Reservoir, which has released 384 flats for sale. Its one- bedroom units of 592 sq ft are selling from $575,000. -- PHOTO: FAR EAST ORGANIZATION
Robust sales at new launches
270 out of 384 units sold at Waterfront Isle; sales good at other projects too
By Cheryl Lim
SALES have been robust at new property launches across the island, with buyers especially keen on Waterfront Isle near Bedok Reservoir.
Of the 384 flats released for sale at the 561-unit estate, 270 have been sold.
Prices were about $922 per sq ft (psf) when the condominium - a joint venture by Far East Organization and Frasers Centrepoint - was launched on Feb 5, but have since risen to $936 psf.
Waterfront Isle's one-bedroom units of 592 sq ft are selling from $575,000. The Straits Times understands that the prices of some units with a reservoir view have climbed to an average of $1,050 psf.
Preview sales at other new developments paint an equally robust picture.
Oxley Holdings' Loft@Stevens in Stevens Road has sold between 70 per cent and 80 per cent of its 44 units. Most of the apartments at this freehold condo in District 10 are small one-bedders between 335 sq ft and 570 sq ft. Agents said only two or three of these units were left after yesterday's preview sale.
The six-storey development has a mix of one- and two-bedders with prices starting at $720,000 for a 335 sq ft unit.
Nin Residences in Pheng Geck Avenue in Potong Pasir was also well-received, with almost half of the 219 units sold. The 99-year leasehold project is being developed by Qingjian Realty and comprises two blocks, one of five storeys, the other 19.
Nin Residences has one-, two- and three-bedroom units with prices between $1,200 psf and $1,300 psf. A 452 sq ft one-bedder starts from around $700,000.
Meanwhile, experts are about to get a better picture of the market.
The Urban Redevelopment Authority said developers sold 1,332 private homes in December. But market watchers predict the latest figures for last month, set to be out today, will reflect a more subdued market.
Mr Eugene Lim, key executive officer at ERA, expects sales to have dipped below the 1,000 mark.
Although sales last month were off to a strong start, they were dampened in the second half of the month by the twin factors of festive celebrations and the Government's cooling measures, said PropNex chief executive Mohamed Ismail.
ERA's Mr Lim said a clearer snapshot of the market might emerge next month, with this month's data likely to show a carry-over effect from the Chinese New Year period.
"Several projects like The Tennery, Canberra Residences and Waterfront Isle have chalked up respectable sales in the current market climate," said Mr Lim.
"This shows speculators are being priced out and there is a ready pool of serious buyers, with most understanding that property is not a short-term investment."
cherlim@sph.com.sg
An artist's impression of the 561-unit Waterfront Isle near Bedok Reservoir, which has released 384 flats for sale. Its one- bedroom units of 592 sq ft are selling from $575,000. -- PHOTO: FAR EAST ORGANIZATION
Monday, February 14, 2011
ST Forum : An indicative valuation isn't the final word
12 Feb 2011,
An indicative valuation isn't the final word
TO START with, 'indicative valuation' is a term coined to reflect the indicative market value, which should not be interpreted as the proper valuation of a property ('Indicative valuations are a vital tool' by Ms Monika Fischer; Jan 26).
The aim of valuation or appraisal is to determine the market value of a particular interest in a property at a point in time for a specific purpose. Valuation is an opinion arrived at logically using established techniques and methodologies.
Ms Fischer expressed her concern that she obtained four 'indicative valuations' of the same property ranging from $3.2 million to $4 million.
This is to be expected as an 'indicative valuation' is carried out without any field inspection, detailed research and analysis.
While Ms Fischer finds that 'indicative valuations' are useful, they must not be relied upon for one's property investment decisions. The institute maintains that any form of endorsement by valuers on the figures stated as 'indicative valuations' (before proper valuations are carried out) is not a subscribed valuation practice.
Evelyn Chang (Ms)
Executive Director
Singapore Institute of Surveyors and Valuers
An indicative valuation isn't the final word
TO START with, 'indicative valuation' is a term coined to reflect the indicative market value, which should not be interpreted as the proper valuation of a property ('Indicative valuations are a vital tool' by Ms Monika Fischer; Jan 26).
The aim of valuation or appraisal is to determine the market value of a particular interest in a property at a point in time for a specific purpose. Valuation is an opinion arrived at logically using established techniques and methodologies.
Ms Fischer expressed her concern that she obtained four 'indicative valuations' of the same property ranging from $3.2 million to $4 million.
This is to be expected as an 'indicative valuation' is carried out without any field inspection, detailed research and analysis.
While Ms Fischer finds that 'indicative valuations' are useful, they must not be relied upon for one's property investment decisions. The institute maintains that any form of endorsement by valuers on the figures stated as 'indicative valuations' (before proper valuations are carried out) is not a subscribed valuation practice.
Evelyn Chang (Ms)
Executive Director
Singapore Institute of Surveyors and Valuers
ST : Tighter rules for US home buyers
12 Feb 2011,
Tighter rules for US home buyers
They include mandatory 10 per cent downpayment for purchase of homes and other reforms
WASHINGTON: The Treasury Department yesterday proposed to set a mandatory 10 per cent down payment for US home buyers and to wind down state-backed mortgage lenders that have underpinned the housing market for 40 years.
'The plan is for fundamental reform, to wind down the GSEs (government-sponsored enterprises), strengthen consumer protection and preserve access to affordable housing for the people who need it,' it said in a report.
Launching what could be the biggest shake-up of the housing market in a generation, the Obama administration said home buyers should have to put down at least a 10 per cent deposit to buy a home.
The wide-ranging proposals effectively end the US government's long-standing support for the goal of having every American own their own home.
'The administration believes that we must continue to help ensure that Americans have access to quality housing they can afford,' the proposals said.
'This does not mean, however, that our goal is for all Americans to become homeowners.'
While some proposals would have a direct and quick impact on home buyers, it is the reforms of Fannie Mae and Freddie Mac that may have the broadest effect.
The two firms, which before the crisis back-stopped around three quarters of the housing market, have come under fire for their role in fuelling the housing bubble.
In the wake of a long and painful recession, the government has been left to guarantee - directly or via deals with bank lenders - 'more than nine out of every 10 new mortgages.' Yet despite their role in the financial melt-down, reforming Fannie and Freddie remains politically charged.
Supporters argue the lenders have made housing affordable for millions of poorer Americans. Critics say they represent unwarranted government interference in the housing market.
The Obama administration called on Congress and stakeholders to have an 'honest discussion' about the way forward.
While laying out three broad options to overhaul the mortgage lending system, the administration is letting Congress make the final decision.
The Treasury Department said in its report that the government should withdraw its support for the mortgage market slowly, over five years or more. The report describes a path for winding down Fannie Mae and Freddie Mac, which have swallowed US$150 billion (S$192 billion) in federal aid since the government took them over in September 2008.
Under any scenario, the private sector will assume a greater role in housing finance as the government scales back its involvement.
By handing the decision to Congress, the administration sidesteps one of the most complex and politically explosive questions facing America's financial system. Any of the three options will almost certain force mortgage rates to rise.
AGENCE FRANCE-PRESSE, ASSOCIATED PRESS
Tighter rules for US home buyers
They include mandatory 10 per cent downpayment for purchase of homes and other reforms
WASHINGTON: The Treasury Department yesterday proposed to set a mandatory 10 per cent down payment for US home buyers and to wind down state-backed mortgage lenders that have underpinned the housing market for 40 years.
'The plan is for fundamental reform, to wind down the GSEs (government-sponsored enterprises), strengthen consumer protection and preserve access to affordable housing for the people who need it,' it said in a report.
Launching what could be the biggest shake-up of the housing market in a generation, the Obama administration said home buyers should have to put down at least a 10 per cent deposit to buy a home.
The wide-ranging proposals effectively end the US government's long-standing support for the goal of having every American own their own home.
'The administration believes that we must continue to help ensure that Americans have access to quality housing they can afford,' the proposals said.
'This does not mean, however, that our goal is for all Americans to become homeowners.'
While some proposals would have a direct and quick impact on home buyers, it is the reforms of Fannie Mae and Freddie Mac that may have the broadest effect.
The two firms, which before the crisis back-stopped around three quarters of the housing market, have come under fire for their role in fuelling the housing bubble.
In the wake of a long and painful recession, the government has been left to guarantee - directly or via deals with bank lenders - 'more than nine out of every 10 new mortgages.' Yet despite their role in the financial melt-down, reforming Fannie and Freddie remains politically charged.
Supporters argue the lenders have made housing affordable for millions of poorer Americans. Critics say they represent unwarranted government interference in the housing market.
The Obama administration called on Congress and stakeholders to have an 'honest discussion' about the way forward.
While laying out three broad options to overhaul the mortgage lending system, the administration is letting Congress make the final decision.
The Treasury Department said in its report that the government should withdraw its support for the mortgage market slowly, over five years or more. The report describes a path for winding down Fannie Mae and Freddie Mac, which have swallowed US$150 billion (S$192 billion) in federal aid since the government took them over in September 2008.
Under any scenario, the private sector will assume a greater role in housing finance as the government scales back its involvement.
By handing the decision to Congress, the administration sidesteps one of the most complex and politically explosive questions facing America's financial system. Any of the three options will almost certain force mortgage rates to rise.
AGENCE FRANCE-PRESSE, ASSOCIATED PRESS
ST : Housing affordability of key concern
12 Feb 2011,
Housing affordability of key concern
This is the fifth of a special 10-part series in which The Straits Times explores some of the key issues expected to be tackled in the Budget on Feb 18. Property, utility rebates, bigger grants and higher income ceilings top list
By Jessica Cheam
ASK Mr Chandra Mohan what he hopes for when the Budget is announced next week and he will tell you matter-of-factly: utility and rental rebates.
The 65-year-old, who works in an events firm, lives in a three-room rental flat in Woodlands with his mother and sister, paying about $100 a month.
Because his mother has had a stroke and requires 24-hour care, the siblings have faced financial difficulties in recent years. They had to sell their four-room HDB flat in Sembawang a few years ago.
'If we can get some form of rental-flat or utility rebates, it would help us cope with rising costs,' he said.
In the longer term, the family hopes to own a Housing Board flat again, maybe with the help of grants for needy families.
Families like Mr Mohan's should be at the top of the priority list for measures in the upcoming Budget, said West Coast GRC MP Cedric Foo, who chairs the Government Parliamentary Committee for National Development.
Any rebates would be of help and additional housing grants for needy families should be considered, including raising the income ceiling to qualify for them, he added.
Those in the sandwich class are also hoping for measures to help them combat rising housing costs and living expenses. Take civil servant Charan Jaipragas, 26, for example. He recently bought a resale HDB maisonette in Taman Jurong for $495,000 with his fiancee.
Even though they received a housing grant of $25,000 from the HDB, the purchase wiped out their savings. 'Any rebates will help us young households,' he said.
Experts whom The Straits Times spoke to had differing views on whether measures in the Budget would address home buyers, owners or both. Most said the usual staples of property, utility and service and conservancy rebates could be announced.
Some said the Budget could see larger housing grants, perhaps for the lower-income households, and flexibility on who qualifies for the grants.
'The traditional remedies of upgrading of old estates, increasing the supply of HDB flats and sharpening the differential between Singaporeans and PRs (permanent residents) (in terms of benefits given) may again be applied,' said OCBC economist Selena Ling.
KPMG Advisory tax partner Leonard Ong said: 'We hope to see the one-off 40 per cent property tax rebate given for owner-occupied residential properties in the 2009 Budget reinstated in the current Budget.'
Ernst & Young tax services partner Choo Eng Chuan feels, however, that higher housing grants could further fuel the property boom. 'This could make prices rise further, making the situation worsen indirectly,' he said.
Prices of HDB resale flats, which rose 14.1 per cent last year, have hit new records on the back of a recovering economy.
Mr Choo feels that the growing income gap is also a big concern and traditional measures such as rebates for HDB dwellers would be more effective in addressing this divide.
One thing that the Government could do is to perhaps raise the income ceiling to qualify for the Central Provident Fund housing grant, he said.
The ceiling for each household is now $8,000 or $10,000, depending on the type of flat. 'As the economy grows, salaries do get higher, so this is something they could review,' suggested Mr Choo.
Housing affordability of key concern
This is the fifth of a special 10-part series in which The Straits Times explores some of the key issues expected to be tackled in the Budget on Feb 18. Property, utility rebates, bigger grants and higher income ceilings top list
By Jessica Cheam
ASK Mr Chandra Mohan what he hopes for when the Budget is announced next week and he will tell you matter-of-factly: utility and rental rebates.
The 65-year-old, who works in an events firm, lives in a three-room rental flat in Woodlands with his mother and sister, paying about $100 a month.
Because his mother has had a stroke and requires 24-hour care, the siblings have faced financial difficulties in recent years. They had to sell their four-room HDB flat in Sembawang a few years ago.
'If we can get some form of rental-flat or utility rebates, it would help us cope with rising costs,' he said.
In the longer term, the family hopes to own a Housing Board flat again, maybe with the help of grants for needy families.
Families like Mr Mohan's should be at the top of the priority list for measures in the upcoming Budget, said West Coast GRC MP Cedric Foo, who chairs the Government Parliamentary Committee for National Development.
Any rebates would be of help and additional housing grants for needy families should be considered, including raising the income ceiling to qualify for them, he added.
Those in the sandwich class are also hoping for measures to help them combat rising housing costs and living expenses. Take civil servant Charan Jaipragas, 26, for example. He recently bought a resale HDB maisonette in Taman Jurong for $495,000 with his fiancee.
Even though they received a housing grant of $25,000 from the HDB, the purchase wiped out their savings. 'Any rebates will help us young households,' he said.
Experts whom The Straits Times spoke to had differing views on whether measures in the Budget would address home buyers, owners or both. Most said the usual staples of property, utility and service and conservancy rebates could be announced.
Some said the Budget could see larger housing grants, perhaps for the lower-income households, and flexibility on who qualifies for the grants.
'The traditional remedies of upgrading of old estates, increasing the supply of HDB flats and sharpening the differential between Singaporeans and PRs (permanent residents) (in terms of benefits given) may again be applied,' said OCBC economist Selena Ling.
KPMG Advisory tax partner Leonard Ong said: 'We hope to see the one-off 40 per cent property tax rebate given for owner-occupied residential properties in the 2009 Budget reinstated in the current Budget.'
Ernst & Young tax services partner Choo Eng Chuan feels, however, that higher housing grants could further fuel the property boom. 'This could make prices rise further, making the situation worsen indirectly,' he said.
Prices of HDB resale flats, which rose 14.1 per cent last year, have hit new records on the back of a recovering economy.
Mr Choo feels that the growing income gap is also a big concern and traditional measures such as rebates for HDB dwellers would be more effective in addressing this divide.
One thing that the Government could do is to perhaps raise the income ceiling to qualify for the Central Provident Fund housing grant, he said.
The ceiling for each household is now $8,000 or $10,000, depending on the type of flat. 'As the economy grows, salaries do get higher, so this is something they could review,' suggested Mr Choo.
ST : Older office buildings taking on competition
12 Feb 2011,
Older office buildings taking on competition
Upgrading and makeovers in the works for those in prime CBD areas
By Esther Teo
LANDLORDS of older buildings in the traditionally prime areas of Raffles Place and Robinson Road are not taking the emergence of new blocks in areas like Marina Bay lying down.
Renovation works, ranging from simple upgrading to full-scale makeovers, are being undertaken to give ageing Grade A offices a smarter new face.
While the booming economy is certainly helping landlords as firms expand and take up more space, early signs are that the makeover strategy is working.
Leases are being renewed and new tenants signed up - with some even paying record rents.
But experts say it is still too early to determine how the older blocks will fare - with the age and quality of each building determining if it can keep tenants.
It is also hard to put a finger on any firm trend as many companies have taken out pre-commitments for space in new blocks such as the Marina Bay Financial Centre (MBFC) and Asia Square, but have yet to physically relocate.
This means occupancy rates and rents at older buildings are still holding up - for now.
Pontiac Land Group - which owns Centennial and Millenia towers - will lose a major tenant when Citibank goes to Asia Square. The bank's employees, some of whom are also at Capital Square, will move out in stages, from the last quarter of this year through to 2013, as existing leases expire. But the firm said that over the next few months, it is confident of achieving a pre-commitment level of about 60 per cent of the space that will be vacated by Citibank this year.
Replacement tenants include PetroChina International (Singapore), which will occupy about 70,000 sq ft by this year, said Pontiac Land.
'We believe that (ample parking space in a prime location) is a strong feature about Millenia Singapore that MBFC cannot meet,' the firm added.
Mr Andy Tan, executive vice-president of MEAG Pacific Star Asset Management - the manager of Capital Square - said Morgan Stanley, Bloomberg and Aberdeen Asset Management have recently renewed their leases, with some expanding their space by up to 46 per cent.
Capital Square in Raffles Place houses units of Barclays Capital and Macquarie, which have announced their move to MBFC. Mr Tan said that Pacific Star secured 180,000 sq ft of lease renewals and expansion last year alone, and is even signing new tenants from the IT and chemical sectors at record rentals.
CapitaCommercial Trust (CCT) is also planning to smarten up Six Battery Road in a bid to get higher rents.
Standard Chartered Bank and Nomura are moving at least part of their operations from Six Battery Road to MBFC, so CCT will take advantage of the downtime during tenant changes to include energy-saving features.
'Of the 65,600 sq ft of lettable area expected to be upgraded and available this year, 52 per cent has already been pre-leased to new and existing tenants,' said Ms Lynette Leong, chief executive of CapitaCommercial Trust Management Limited.
Buildings older than 15 years and strata-owned ones are expected to be most vulnerable to the siren call of Marina Bay and newer offices.
Knight Frank's director of office space, Mr Robert MacDonald, said investors will probably have to spend plenty of cash to smarten up these blocks while also providing attractive incentives if they want to keep tenants.
He said that Centennial and Millenia towers will be the ones to watch once Citigroup and Baker & McKenzie vacate.
esthert@sph.com.sg
Older office buildings taking on competition
Upgrading and makeovers in the works for those in prime CBD areas
By Esther Teo
LANDLORDS of older buildings in the traditionally prime areas of Raffles Place and Robinson Road are not taking the emergence of new blocks in areas like Marina Bay lying down.
Renovation works, ranging from simple upgrading to full-scale makeovers, are being undertaken to give ageing Grade A offices a smarter new face.
While the booming economy is certainly helping landlords as firms expand and take up more space, early signs are that the makeover strategy is working.
Leases are being renewed and new tenants signed up - with some even paying record rents.
But experts say it is still too early to determine how the older blocks will fare - with the age and quality of each building determining if it can keep tenants.
It is also hard to put a finger on any firm trend as many companies have taken out pre-commitments for space in new blocks such as the Marina Bay Financial Centre (MBFC) and Asia Square, but have yet to physically relocate.
This means occupancy rates and rents at older buildings are still holding up - for now.
Pontiac Land Group - which owns Centennial and Millenia towers - will lose a major tenant when Citibank goes to Asia Square. The bank's employees, some of whom are also at Capital Square, will move out in stages, from the last quarter of this year through to 2013, as existing leases expire. But the firm said that over the next few months, it is confident of achieving a pre-commitment level of about 60 per cent of the space that will be vacated by Citibank this year.
Replacement tenants include PetroChina International (Singapore), which will occupy about 70,000 sq ft by this year, said Pontiac Land.
'We believe that (ample parking space in a prime location) is a strong feature about Millenia Singapore that MBFC cannot meet,' the firm added.
Mr Andy Tan, executive vice-president of MEAG Pacific Star Asset Management - the manager of Capital Square - said Morgan Stanley, Bloomberg and Aberdeen Asset Management have recently renewed their leases, with some expanding their space by up to 46 per cent.
Capital Square in Raffles Place houses units of Barclays Capital and Macquarie, which have announced their move to MBFC. Mr Tan said that Pacific Star secured 180,000 sq ft of lease renewals and expansion last year alone, and is even signing new tenants from the IT and chemical sectors at record rentals.
CapitaCommercial Trust (CCT) is also planning to smarten up Six Battery Road in a bid to get higher rents.
Standard Chartered Bank and Nomura are moving at least part of their operations from Six Battery Road to MBFC, so CCT will take advantage of the downtime during tenant changes to include energy-saving features.
'Of the 65,600 sq ft of lettable area expected to be upgraded and available this year, 52 per cent has already been pre-leased to new and existing tenants,' said Ms Lynette Leong, chief executive of CapitaCommercial Trust Management Limited.
Buildings older than 15 years and strata-owned ones are expected to be most vulnerable to the siren call of Marina Bay and newer offices.
Knight Frank's director of office space, Mr Robert MacDonald, said investors will probably have to spend plenty of cash to smarten up these blocks while also providing attractive incentives if they want to keep tenants.
He said that Centennial and Millenia towers will be the ones to watch once Citigroup and Baker & McKenzie vacate.
esthert@sph.com.sg
Friday, February 11, 2011
ST : Developers: Too soon to assess property curbs
10 Feb 2011,
Developers: Too soon to assess property curbs
By Esther Teo
DEVELOPERS say that although sales volumes might have fallen, it is still too early to assess the impact of the cooling measures.
Industry players at the annual Spring Festival lunch of the Real Estate Developers' Association of Singapore (Redas) yesterday noted that the Jan 13 intervention was soon followed by Chinese New Year, so buyers will need more time to take stock before deciding whether to buy.
Mr Lim Ee Seng, Redas' first vice-president and Frasers Centrepoint chief executive, said that although the number of transactions has fallen, this was expected due to buyers' initial hesitation and the uncertainty in the market after the measures were introduced.
He noted that projects launched after Jan 13 still had 'very decent take-up', demonstrating that there is still a pool of people genuinely in need of homes. 'As long as the location is good and the price is deemed to be not unduly unreasonable, they will buy,' added Mr Lim.
Developers also said the cooling steps are just one more factor to take on board when assessing investment decisions and sales campaigns.
Redas president Wong Heang Fine said that today's vibrant and dynamic market means developers are constantly reviewing their launches and marketing, irrespective of the Government's measures.
Mr Chia Ngiang Hong, Redas' second vice-president and City Developments group general manager, added that developers will have to monitor the market and plan accordingly, even as buyers re-evaluate their positions.
'It is an ongoing process that is always happening at all times, nothing is static,' Mr Chia added.
Mr Wong, who is also CapitaLand Residential chief executive, noted in his opening address that while the Government has rolled out long-term policies that have helped the industry, developers are not keen on any more measures.
'With the property market stabilising after the latest round of cooling measures by the Government, I hope that any further measures...would be made only after considering all options,' said Mr Wong.
If sales do slip, developers could introduce sweeteners to attract home buyers, but Mr Lim said market-wide incentives such as those seen in the recession have not been introduced yet.
When the property boom ended in 2008, developers started absorbing stamp duty for selected projects and rolled out gimmicks such as renovation allowances and vouchers for electrical appliances to encourage sales.
Developers are also looking forward to Budget policies that will further support economic growth, as the property sector will be able to ride on that growth, Mr Wong added. The challenge this year will be to grow on a sustainable basis and to innovate and upgrade to produce better quality homes that can continue to attract global investors.
'I think the Singapore market is now quite transformed, if you look at the tourism figures...We are very exposed to world markets now,' said Mr Wong.
He also announced that Redas will hold regular dialogues with various government agencies and industry associations this year as well as introduce specific focus groups. Mr Wong championed tapping into Generations X and Y - future leaders and home buyers - to form a youth focus group to gather the energy and ideas of younger members.
Developers also welcomed suggestions that the Government might introduce new rules to ensure that showflats accurately represent their completed products, especially with more builders entering the market.
Mr Chia said: 'If the objective is to ensure that (the showflat) is correctly represented, then it is good for the market.'
Separately, MCC Land's 320-unit Canberra Residences in Sembawang has sold 160 of the 200 preview units. The average prices of typical units range from $830 to $860 per sq ft with sizes varying between 614 sq ft and 2,250 sq ft. The project will be officially launched tomorrow.
Developers: Too soon to assess property curbs
By Esther Teo
DEVELOPERS say that although sales volumes might have fallen, it is still too early to assess the impact of the cooling measures.
Industry players at the annual Spring Festival lunch of the Real Estate Developers' Association of Singapore (Redas) yesterday noted that the Jan 13 intervention was soon followed by Chinese New Year, so buyers will need more time to take stock before deciding whether to buy.
Mr Lim Ee Seng, Redas' first vice-president and Frasers Centrepoint chief executive, said that although the number of transactions has fallen, this was expected due to buyers' initial hesitation and the uncertainty in the market after the measures were introduced.
He noted that projects launched after Jan 13 still had 'very decent take-up', demonstrating that there is still a pool of people genuinely in need of homes. 'As long as the location is good and the price is deemed to be not unduly unreasonable, they will buy,' added Mr Lim.
Developers also said the cooling steps are just one more factor to take on board when assessing investment decisions and sales campaigns.
Redas president Wong Heang Fine said that today's vibrant and dynamic market means developers are constantly reviewing their launches and marketing, irrespective of the Government's measures.
Mr Chia Ngiang Hong, Redas' second vice-president and City Developments group general manager, added that developers will have to monitor the market and plan accordingly, even as buyers re-evaluate their positions.
'It is an ongoing process that is always happening at all times, nothing is static,' Mr Chia added.
Mr Wong, who is also CapitaLand Residential chief executive, noted in his opening address that while the Government has rolled out long-term policies that have helped the industry, developers are not keen on any more measures.
'With the property market stabilising after the latest round of cooling measures by the Government, I hope that any further measures...would be made only after considering all options,' said Mr Wong.
If sales do slip, developers could introduce sweeteners to attract home buyers, but Mr Lim said market-wide incentives such as those seen in the recession have not been introduced yet.
When the property boom ended in 2008, developers started absorbing stamp duty for selected projects and rolled out gimmicks such as renovation allowances and vouchers for electrical appliances to encourage sales.
Developers are also looking forward to Budget policies that will further support economic growth, as the property sector will be able to ride on that growth, Mr Wong added. The challenge this year will be to grow on a sustainable basis and to innovate and upgrade to produce better quality homes that can continue to attract global investors.
'I think the Singapore market is now quite transformed, if you look at the tourism figures...We are very exposed to world markets now,' said Mr Wong.
He also announced that Redas will hold regular dialogues with various government agencies and industry associations this year as well as introduce specific focus groups. Mr Wong championed tapping into Generations X and Y - future leaders and home buyers - to form a youth focus group to gather the energy and ideas of younger members.
Developers also welcomed suggestions that the Government might introduce new rules to ensure that showflats accurately represent their completed products, especially with more builders entering the market.
Mr Chia said: 'If the objective is to ensure that (the showflat) is correctly represented, then it is good for the market.'
Separately, MCC Land's 320-unit Canberra Residences in Sembawang has sold 160 of the 200 preview units. The average prices of typical units range from $830 to $860 per sq ft with sizes varying between 614 sq ft and 2,250 sq ft. The project will be officially launched tomorrow.
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