Sep 19, 2010
property
More keen on buying homes: Poll
Survey shows higher interest after cooling measures; many expect prices to stabilise or fall
By Joyce Teo
A Savills Singapore survey has found that more people are keen on buying a home in the next six months after the Government announced measures to cool the property market on Aug 30.
The property consultancy said this could be because more respondents now expect prices to stabilise or fall.
Savills conducted two separate surveys involving 200 respondents each - one four weeks before the measures were introduced and one right after.
More than 90 per cent of the respondents in both surveys are in the 21-59 age group. About two-thirds of them own Housing Board (HDB) flats.
Savills said the number of people who would consider buying a property post-measures rose by 20 percentage points, from 14 per cent to 34 per cent.
Although 80 per cent of the respondents still feel that Singapore's home prices are high, a bigger group than before now believes prices will fall.
Some 45 per cent of the respondents expect home prices to fall after the implementation of the measures, compared with 15 per cent before the measures were announced.
A much smaller group than before - 26 per cent of the respondents compared with 62 per cent previously - expect prices to continue to rise.
The new cooling measures include tighter lending rules for those with existing mortgages looking to buy another property. They can now borrow up to only 70 per cent of the property's value, down from 80 per cent.
Also, those who buy an HDB resale flat on or after Aug 30 must sell their private property - including any held overseas - within six months of the purchase.
The housing market had resisted two earlier rounds of cooling measures - in September last year and in February this year. The measures included doing away with the interest absorption scheme and the imposition of a stamp duty for those who sell their property within a year of buying it.
Private home prices have surged since the middle of last year while HDB resale prices have continued to reach new quarterly highs since 2008.
For a start, property experts expect the new measures to slow home sales for the rest of the year. Already, the impact can be felt in the HDB and private resale markets, they said.
Cushman and Wakefield's senior manager of research, Asia-Pacific, Mr Ong Kah Seng, said the slowdown in the private market will be most evident in the suburban areas as the government measures are targeted at stabilising prices of mass-market private homes.
The softening of the market may signal a buying opportunity for some people, said Savills.
However, nearly half of the respondents - down nine percentage points from 57 per cent - said they would still not consider buying a property.
'These people may be cautious about entering the market now and prefer to take a step back to assess the market impact of the new measures first before making a decision,' said Savills' senior manager, research and consultancy, Ms Christine Sun.
The other reason is that they do not need a home in the next six months, she said.
The survey also found that more repeat buyers than first-time buyers perceived that there was ample housing supply for them.
'This could be due to the tight supply in the public housing market, which is predominantly the domain of first-time buyers,' said Ms Sun.
As the Government plans to raise the supply of new HDB flats from more than 16,000 this year to as many as 22,000 next year, this perception of first-time buyers may change, she said.
And with the new measures, more buyers - apart from repeat buyers - felt more confident entering the property market in the next six months, Savills said.
Some respondents had commented that they were more willing to enter the market now, knowing that the Government was closely monitoring the situation and may do more to prevent any further price spikes or property bubble from forming, it said.
Others are also expecting more home options, given the huge upcoming supply in the private and public markets.
'These new measures may therefore sway some buyers who were sitting on the sidelines... to make a purchase in the next six months,' said Ms Sun.
'We can expect more rational buying in the coming months.'
joyceteo@sph.com.sg
Thursday, September 23, 2010
ST Forum : Confused over stand on fixed commission rates
Sep 18, 2010
Confused over stand on fixed commission rates
ACCORDING to Minister for National Development Mah Bow Tan, the Council for Estate Agencies cannot fix commission rates as such a measure is anti-competitive; and it is better for such rates to be influenced by market forces ('Oct 22 start for real estate stat board'; Thursday).
If it is possible to fix commission rates for the insurance industry without such fixing being viewed as anti-competitive, why can't the same apply to property brokers?
By adopting fixed commission rates as a rule, a chunk of current issues, such as the complaints about unethical agents, will be resolved.
The insurance industry penalises an agent who is caught under-cutting commissions by revoking his licence.
The same deterrent can be applied with equal effectiveness to real estate agents.
Koh Wee Leng (Miss)
Confused over stand on fixed commission rates
ACCORDING to Minister for National Development Mah Bow Tan, the Council for Estate Agencies cannot fix commission rates as such a measure is anti-competitive; and it is better for such rates to be influenced by market forces ('Oct 22 start for real estate stat board'; Thursday).
If it is possible to fix commission rates for the insurance industry without such fixing being viewed as anti-competitive, why can't the same apply to property brokers?
By adopting fixed commission rates as a rule, a chunk of current issues, such as the complaints about unethical agents, will be resolved.
The insurance industry penalises an agent who is caught under-cutting commissions by revoking his licence.
The same deterrent can be applied with equal effectiveness to real estate agents.
Koh Wee Leng (Miss)
ST : Hougang condo plot draws six bidders
Sep 18, 2010
Hougang condo plot draws six bidders
Cautious tenders show developers less bullish about residential market
By Joyce Teo
A CONDOMINIUM plot in Hougang Avenue 7 has attracted six bidders, but their fairly conservative tenders show that developers are taking a cautious approach.
The top bid of $160 million or $339.6 per sq ft per plot ratio (psf ppr) came from Sim Lian Land.
Its offer was just 2.5 per cent above the second highest bid of $331.3 psf ppr from a Hoi Hup Realty, Sunway Developments and SC Wong Holdings joint venture.
Analysts had expected bids between $320 and $370 psf ppr.
Sim Lian's bid was also only 50 per cent above the bottom bid of $225 psf ppr from Meadows Investment, a firm owned by Tiong Aik Group executive director Neo Tiam Boon.
Other bidders include GuocoLand's First Changi Development and Hong Leong Group's Intrepid Investments.
Sim Lian wants to build 400 to 450 units, with a good mix of two- to four-bedders, said Sim Lian Group executive director Diana Kuik.
The launch could be in the next nine to 12 months, although a lot would depend on the market conditions, Ms Kuik added.
The 99-year leasehold Hougang plot is within the Hougang Housing Board estate. It is 15,630 sq m in size, with a maximum gross floor area of 43,765 sq m.
CBRE Research executive director Li Hiaw Ho said the six bids showed that developers are interested, but 'as the top bid is only 50 per cent higher than the last bid, it shows that developers are cautious and less bullish about the residential market'.
The Government had announced measures to cool the property market on Aug 30. While the impact is not clear as yet, experts expect home sales this year to be hit.
Cushman & Wakefield managing director Donald Han said the tender results showed that developers are 'constrained' in their bids.
'They are no longer putting in aggressive bids that will lead to runaway prices. If you miss this, you can go for another site coming up for tender,' he said.
You can now see the impact of the cooling measures on developers' price expectations, he added.
DTZ head of South- east Asia research Chua Chor Hoon believes developers are now more selective in bidding for sites.
The Hougang plot is targeted at HDB upgraders, so the bids were adjusted accordingly, she said.
Ms Chua estimates a break-even cost of $640 psf, based on the top bid. The final selling price of the units could be around $770 psf.
CBRE's Mr Li said the top bid reflects a higher break-even cost of around $680 psf, and that units in the new project will possibly sell for $800 to $850 psf.
For comparison, units in the recently launched The Minton in Lorong Ah Soo sold at around $860 psf from June to August.
Units in Kovan Residences, adjacent to Kovan MRT station, were transacting at around $900 psf over the same period, Mr Li said.
joyceteo@sph.com.sg
Hougang condo plot draws six bidders
Cautious tenders show developers less bullish about residential market
By Joyce Teo
A CONDOMINIUM plot in Hougang Avenue 7 has attracted six bidders, but their fairly conservative tenders show that developers are taking a cautious approach.
The top bid of $160 million or $339.6 per sq ft per plot ratio (psf ppr) came from Sim Lian Land.
Its offer was just 2.5 per cent above the second highest bid of $331.3 psf ppr from a Hoi Hup Realty, Sunway Developments and SC Wong Holdings joint venture.
Analysts had expected bids between $320 and $370 psf ppr.
Sim Lian's bid was also only 50 per cent above the bottom bid of $225 psf ppr from Meadows Investment, a firm owned by Tiong Aik Group executive director Neo Tiam Boon.
Other bidders include GuocoLand's First Changi Development and Hong Leong Group's Intrepid Investments.
Sim Lian wants to build 400 to 450 units, with a good mix of two- to four-bedders, said Sim Lian Group executive director Diana Kuik.
The launch could be in the next nine to 12 months, although a lot would depend on the market conditions, Ms Kuik added.
The 99-year leasehold Hougang plot is within the Hougang Housing Board estate. It is 15,630 sq m in size, with a maximum gross floor area of 43,765 sq m.
CBRE Research executive director Li Hiaw Ho said the six bids showed that developers are interested, but 'as the top bid is only 50 per cent higher than the last bid, it shows that developers are cautious and less bullish about the residential market'.
The Government had announced measures to cool the property market on Aug 30. While the impact is not clear as yet, experts expect home sales this year to be hit.
Cushman & Wakefield managing director Donald Han said the tender results showed that developers are 'constrained' in their bids.
'They are no longer putting in aggressive bids that will lead to runaway prices. If you miss this, you can go for another site coming up for tender,' he said.
You can now see the impact of the cooling measures on developers' price expectations, he added.
DTZ head of South- east Asia research Chua Chor Hoon believes developers are now more selective in bidding for sites.
The Hougang plot is targeted at HDB upgraders, so the bids were adjusted accordingly, she said.
Ms Chua estimates a break-even cost of $640 psf, based on the top bid. The final selling price of the units could be around $770 psf.
CBRE's Mr Li said the top bid reflects a higher break-even cost of around $680 psf, and that units in the new project will possibly sell for $800 to $850 psf.
For comparison, units in the recently launched The Minton in Lorong Ah Soo sold at around $860 psf from June to August.
Units in Kovan Residences, adjacent to Kovan MRT station, were transacting at around $900 psf over the same period, Mr Li said.
joyceteo@sph.com.sg
ST : HDB resale prices soften as sales slow down
Sep 18, 2010
HDB resale prices soften as sales slow down
By Jessica Cheam
PRICES in the red-hot Housing Board (HDB) resale flat market are beginning to soften, with the number of sales also dipping as home buyers and sellers respond to recent government moves to cool the market.
Property agencies interviewed by The Straits Times said median cash upfront paid by buyers, known as cash-over-valuation (COV), is expected to drop from $30,000 in the second quarter to about $20,000 by year-end.
At ERA Asia Pacific, PropNex and HSR Property Group, sales transactions were reported to have dropped 15 per cent to 30 per cent in the two weeks or so since the measures were announced on Aug 30.
Together, the three agencies account for the lion's share of the HDB market.
Until the recent pause, HDB resale flat prices were rising strongly. They shot up 4.1 per cent in the second quarter, smashing records for the eighth straight quarter, and prompting concerns that prices were beyond the reach of Singaporeans.
The Government responded by tightening lending rules and added restrictions to home ownership to dampen demand.
The new rules have changed the dynamics of the market virtually overnight, say analysts, transforming it from a seller's market to a buyer's market.
The days of high COVs, where cash-rich buyers paid $75,000 to $100,000 cash upfront for flats in popular estates, are long gone, said Dennis Wee Group director Chris Koh.
'Sellers are more realistic now. They have lowered their asking prices,' he said. However, he noted that prices are still holding firm for flats in established towns such as Toa Payoh and Bishan.
At suburban estates such as Punggol and Sengkang, asking COVs seem to be weakening, although if these flats are near amenities like MRT stations, sellers are holding to their asking prices, he said.
PropNex communications manager Adam Tan said its data showed COV values rose in July from second quarter levels, though this was prior to the government measures.
For three-room flats, median COV rose to $35,000 in July from $26,000 in the second quarter. For four-room flats, it rose to $40,000 from $30,000, and for five-room units, to $45,000 from $33,000.
However, COV has softened by up to 5 per cent to 10 per cent in recent weeks. Recent price levels are still being collated, said Mr Tan.
As an example of how the market has shifted in the buyers' favour, he said PropNex recently brokered a sale of a Punggol executive flat at $20,000 COV - $30,000 below the median COV for that flat type and location in the second quarter according to HDB data.
'We can see buyers adopting a wait-and-see attitude now, so those desperate to sell have had to adjust their expectations,' said Mr Tan.
ERA Asia Pacific associate director Eugene Lim said sales are slower 'because of the current stand-off between sellers and buyers. But this low volume is temporary as the market is trying to find its footing,' he said.
The tighter financing rules, which do not allow buyers to qualify for an 80 per cent loan unless they sell an existing home, are also affecting sales, said Mr Koh.
'Sellers are asking for an extension of stay, making sales harder to close,' he said.
IT executive Cai Yong Jie, 30, a first-time buyer who welcomed the recent moves, has been negotiating with sellers to bring down the COV amount.
'Many sellers are a bit more realistic now and will consider my lower offer,' he said. But he has also applied for a new flat under the HDB's build-to-order (BTO) scheme as such flats are still cheaper.
The measures seemed to have somewhat dampened demand for new flats, as HDB's latest sales launch at Yishun closed with slightly less than three applicants for every flat - well below the typical six bids each seen in past years.
Still, analysts say it might be too early to see the full effects of the measures.
HSR chief executive Patrick Liew predicted that the market 'will be flat for three months, and then we will see activity again because we have genuine buyers and sellers out there in the market'.
In terms of demand and supply, there is still an undersupply of HDB resale flats in many areas, he said.
HDB resale prices soften as sales slow down
By Jessica Cheam
PRICES in the red-hot Housing Board (HDB) resale flat market are beginning to soften, with the number of sales also dipping as home buyers and sellers respond to recent government moves to cool the market.
Property agencies interviewed by The Straits Times said median cash upfront paid by buyers, known as cash-over-valuation (COV), is expected to drop from $30,000 in the second quarter to about $20,000 by year-end.
At ERA Asia Pacific, PropNex and HSR Property Group, sales transactions were reported to have dropped 15 per cent to 30 per cent in the two weeks or so since the measures were announced on Aug 30.
Together, the three agencies account for the lion's share of the HDB market.
Until the recent pause, HDB resale flat prices were rising strongly. They shot up 4.1 per cent in the second quarter, smashing records for the eighth straight quarter, and prompting concerns that prices were beyond the reach of Singaporeans.
The Government responded by tightening lending rules and added restrictions to home ownership to dampen demand.
The new rules have changed the dynamics of the market virtually overnight, say analysts, transforming it from a seller's market to a buyer's market.
The days of high COVs, where cash-rich buyers paid $75,000 to $100,000 cash upfront for flats in popular estates, are long gone, said Dennis Wee Group director Chris Koh.
'Sellers are more realistic now. They have lowered their asking prices,' he said. However, he noted that prices are still holding firm for flats in established towns such as Toa Payoh and Bishan.
At suburban estates such as Punggol and Sengkang, asking COVs seem to be weakening, although if these flats are near amenities like MRT stations, sellers are holding to their asking prices, he said.
PropNex communications manager Adam Tan said its data showed COV values rose in July from second quarter levels, though this was prior to the government measures.
For three-room flats, median COV rose to $35,000 in July from $26,000 in the second quarter. For four-room flats, it rose to $40,000 from $30,000, and for five-room units, to $45,000 from $33,000.
However, COV has softened by up to 5 per cent to 10 per cent in recent weeks. Recent price levels are still being collated, said Mr Tan.
As an example of how the market has shifted in the buyers' favour, he said PropNex recently brokered a sale of a Punggol executive flat at $20,000 COV - $30,000 below the median COV for that flat type and location in the second quarter according to HDB data.
'We can see buyers adopting a wait-and-see attitude now, so those desperate to sell have had to adjust their expectations,' said Mr Tan.
ERA Asia Pacific associate director Eugene Lim said sales are slower 'because of the current stand-off between sellers and buyers. But this low volume is temporary as the market is trying to find its footing,' he said.
The tighter financing rules, which do not allow buyers to qualify for an 80 per cent loan unless they sell an existing home, are also affecting sales, said Mr Koh.
'Sellers are asking for an extension of stay, making sales harder to close,' he said.
IT executive Cai Yong Jie, 30, a first-time buyer who welcomed the recent moves, has been negotiating with sellers to bring down the COV amount.
'Many sellers are a bit more realistic now and will consider my lower offer,' he said. But he has also applied for a new flat under the HDB's build-to-order (BTO) scheme as such flats are still cheaper.
The measures seemed to have somewhat dampened demand for new flats, as HDB's latest sales launch at Yishun closed with slightly less than three applicants for every flat - well below the typical six bids each seen in past years.
Still, analysts say it might be too early to see the full effects of the measures.
HSR chief executive Patrick Liew predicted that the market 'will be flat for three months, and then we will see activity again because we have genuine buyers and sellers out there in the market'.
In terms of demand and supply, there is still an undersupply of HDB resale flats in many areas, he said.
ST : Landed home prices up sharply
Sep 18, 2010
Landed home prices up sharply
District 10 properties lead rise, increasing more than 40%
By Esther Teo
PRICES for landed homes have rocketed this year, with the prime District 10 area recording increases of more than 40 per cent.
The surging values have also sent records tumbling across the island as cashed up buyers jostle for real estate.
Two new price quantum benchmarks were set in May: A semi-detached home, 1, Lermit Road in Tanglin, sold for $12.3 million, while a terrace at 83, Emerald Hill Road, near Somerset, went for a record $11.8 million.
And last month, a terrace at 78, Emerald Hill Road sold for $7.3 million - a jaw-dropping record of $4,527 per square foot (psf).
Sales have been robust in the key districts of 19, 15, 16 and 28, but District 10, which includes Bukit Timah, Holland and River Valley, has outstripped them all.
CB Richard Ellis (CBRE) said the median price quantum of landed homes in District 10 shot up by 43 per cent from January to last month compared with the median price quantum for the whole of last year.
This is a stark reversal over the 16.5 per cent price drop last year compared with 2008.
District 16 - Upper East Coast, Bedok and part of Upper Changi Road East - was well back with a 15.6 per cent jump, while District 19 - Serangoon Garden and Yio Chu Kang - recorded a 14.5 per cent rise in prices this year.
District 15 - Katong, Telok Kurau, East Coast Road and Siglap - recorded a 6.4 per cent gain, while District 28 rose 6.1 per cent.
Last year, District 28 - Seletar Hills Estate, Luxus Hill and the Mimosa and Saraca areas - had the fastest growth, with prices up 34.3 per cent over 2008.
Experts say District 10 is tops because owners had the holding power and would not sell unless the price was right.
The roaring economy also meant that wealthy potential buyers were now looking for the best homes and heading to prime districts to find them.
Mr Steven Tan, executive director of residential at OrangeTee agency, said the sale of 99-year leasehold Sentosa Cove houses at more than $2,000 psf has set new benchmarks for prime landed properties. This has left owners clamouring for ever higher prices in a sector that already has a limited supply.
The recent property cooling measures could hit demand and transaction volumes over the next few months, although prices may hold up, say experts.
The managing director of RealStar Premier Property, Mr William Wong, said landed properties were often more resilient than condominiums in weathering economic cycles as their limited supply meant demand was always relatively high.
More PRs willing to pay higher prices were also going into the market, he said.
Mr Wong played down the possible impact of the cooling measures: 'There are not that many speculators in the landed housing segment. Most usually take a mid- to long-term perspective on their purchases as well and take loans of less than 70 per cent...so they will not be as affected.'
Mr Alexs Chua, managing director of property agency AC MacGyver, a specialist in landed homes, said prices have risen by about 20 per cent in areas such as Clementi Park over the past two years.
District 15 prices were also catching up with District 10, with a recent bungalow at Branksome Road selling at $1,497 psf. This was comparable with the prices in District 10, which ranged between $1,300 and $1,800 psf, he said.
'Parents are also increasingly willing to shell out high prices for properties located near renowned primary schools,' Mr Chua said.
CBRE's analysis of the Urban Redevelopment Authority record of caveats lodged found that 79 per cent of the 2,681 landed homes sold up to last month were to private home owners.
This is up from the 70.5 per cent over all of last year. Buyers with Housing Board home addresses made up the remaining 564 transactions this year.
esthert@sph.com.sg
Landed home prices up sharply
District 10 properties lead rise, increasing more than 40%
By Esther Teo
PRICES for landed homes have rocketed this year, with the prime District 10 area recording increases of more than 40 per cent.
The surging values have also sent records tumbling across the island as cashed up buyers jostle for real estate.
Two new price quantum benchmarks were set in May: A semi-detached home, 1, Lermit Road in Tanglin, sold for $12.3 million, while a terrace at 83, Emerald Hill Road, near Somerset, went for a record $11.8 million.
And last month, a terrace at 78, Emerald Hill Road sold for $7.3 million - a jaw-dropping record of $4,527 per square foot (psf).
Sales have been robust in the key districts of 19, 15, 16 and 28, but District 10, which includes Bukit Timah, Holland and River Valley, has outstripped them all.
CB Richard Ellis (CBRE) said the median price quantum of landed homes in District 10 shot up by 43 per cent from January to last month compared with the median price quantum for the whole of last year.
This is a stark reversal over the 16.5 per cent price drop last year compared with 2008.
District 16 - Upper East Coast, Bedok and part of Upper Changi Road East - was well back with a 15.6 per cent jump, while District 19 - Serangoon Garden and Yio Chu Kang - recorded a 14.5 per cent rise in prices this year.
District 15 - Katong, Telok Kurau, East Coast Road and Siglap - recorded a 6.4 per cent gain, while District 28 rose 6.1 per cent.
Last year, District 28 - Seletar Hills Estate, Luxus Hill and the Mimosa and Saraca areas - had the fastest growth, with prices up 34.3 per cent over 2008.
Experts say District 10 is tops because owners had the holding power and would not sell unless the price was right.
The roaring economy also meant that wealthy potential buyers were now looking for the best homes and heading to prime districts to find them.
Mr Steven Tan, executive director of residential at OrangeTee agency, said the sale of 99-year leasehold Sentosa Cove houses at more than $2,000 psf has set new benchmarks for prime landed properties. This has left owners clamouring for ever higher prices in a sector that already has a limited supply.
The recent property cooling measures could hit demand and transaction volumes over the next few months, although prices may hold up, say experts.
The managing director of RealStar Premier Property, Mr William Wong, said landed properties were often more resilient than condominiums in weathering economic cycles as their limited supply meant demand was always relatively high.
More PRs willing to pay higher prices were also going into the market, he said.
Mr Wong played down the possible impact of the cooling measures: 'There are not that many speculators in the landed housing segment. Most usually take a mid- to long-term perspective on their purchases as well and take loans of less than 70 per cent...so they will not be as affected.'
Mr Alexs Chua, managing director of property agency AC MacGyver, a specialist in landed homes, said prices have risen by about 20 per cent in areas such as Clementi Park over the past two years.
District 15 prices were also catching up with District 10, with a recent bungalow at Branksome Road selling at $1,497 psf. This was comparable with the prices in District 10, which ranged between $1,300 and $1,800 psf, he said.
'Parents are also increasingly willing to shell out high prices for properties located near renowned primary schools,' Mr Chua said.
CBRE's analysis of the Urban Redevelopment Authority record of caveats lodged found that 79 per cent of the 2,681 landed homes sold up to last month were to private home owners.
This is up from the 70.5 per cent over all of last year. Buyers with Housing Board home addresses made up the remaining 564 transactions this year.
esthert@sph.com.sg
ST : 'Bubbles forming' in Asia's property markets
Sep 17, 2010
'Bubbles forming' in Asia's property markets
By Jessica Cheam
EXUBERANCE in the Asian property sector is hard to rein in once the market has accelerated, says a real estate expert.
And despite government cooling measures, the inflow of money from the United States and Europe into Asia might continue to fuel property prices, said Mr Beat Lenherr yesterday.
Speaking at a forum held by the National University of Singapore's (NUS) Institute of Real Estate Studies, he said property bubbles were developing in Asian markets such as Singapore and Hong Kong, where there are 'elements of exaggeration... and it doesn't make sense to buy in terms of rental yield or expected capital gains'.
Risk aversion shown by investors towards the US and Europe was leading to 'money just flowing into Asia', said Mr Lenherr, the global chief strategist at asset management firm LGT Capital Management. He has more than 20 years of experience in the real estate industry.
'Domestic sentiment will be fuelled by this confidence, and we see this tendency towards excesses.'
Singapore's private home prices surged 38.2 per cent in the year to June, exceeding the historical peak of 1996. Public resale flat prices jumped 3.8 per cent in the second quarter, the eighth straight quarter of record-breaking prices since 2008.
Three rounds of cooling measures have been introduced by the Government over the past year; the most recent round, on Aug 30, saw tightening of financing and certain home ownership curbs to dampen demand. But Mr Lenherr said it remains to be seen whether such moves will be effective, as 'money has a way around the measures'.
Speaking on the topic of whether Asian property markets will derail economic recovery in 2011, he said a market fall could be triggered by a number of factors, such as external economic headwinds, a change in the interest rate environment and stronger government controls such as capital gains tax.
Such a trigger could lead to a market correction of 30 per cent to 50 per cent in property prices, he said.
Other panel members at the forum - held at the Shangri-La Hotel - agreed that bubbles could be forming, particularly in larger markets such as China and India, where high-end residential prices have spiked in tier-one cities.
But they disagreed on whether the bubbles were on the verge of bursting, and whether they could derail economic recovery in the same way that the US sub-prime mortgage crisis did in 2008.
Professor Joseph Gyourko, director of the Wharton Real Estate Centre, said this was highly unlikely because Asia's households were not over-leveraged in the way US households were and the region's banking sector was more robust.
The dean of the NUS Business School, Professor Bernard Yeung, noted that the Chinese government was taking steps to rein in the market, and was addressing supply problems.
GIC Real Estate regional head for Asia Goh Kok Huat said India was 'messier around the edges', compared to China, but that it still presented huge growth opportunities.
Risk aversion shown by investors towards the US and Europe is leading to the inflow of money to Asia, fuelling property price rises, says an industry expert. -- PHOTO: REUTERS
'Bubbles forming' in Asia's property markets
By Jessica Cheam
EXUBERANCE in the Asian property sector is hard to rein in once the market has accelerated, says a real estate expert.
And despite government cooling measures, the inflow of money from the United States and Europe into Asia might continue to fuel property prices, said Mr Beat Lenherr yesterday.
Speaking at a forum held by the National University of Singapore's (NUS) Institute of Real Estate Studies, he said property bubbles were developing in Asian markets such as Singapore and Hong Kong, where there are 'elements of exaggeration... and it doesn't make sense to buy in terms of rental yield or expected capital gains'.
Risk aversion shown by investors towards the US and Europe was leading to 'money just flowing into Asia', said Mr Lenherr, the global chief strategist at asset management firm LGT Capital Management. He has more than 20 years of experience in the real estate industry.
'Domestic sentiment will be fuelled by this confidence, and we see this tendency towards excesses.'
Singapore's private home prices surged 38.2 per cent in the year to June, exceeding the historical peak of 1996. Public resale flat prices jumped 3.8 per cent in the second quarter, the eighth straight quarter of record-breaking prices since 2008.
Three rounds of cooling measures have been introduced by the Government over the past year; the most recent round, on Aug 30, saw tightening of financing and certain home ownership curbs to dampen demand. But Mr Lenherr said it remains to be seen whether such moves will be effective, as 'money has a way around the measures'.
Speaking on the topic of whether Asian property markets will derail economic recovery in 2011, he said a market fall could be triggered by a number of factors, such as external economic headwinds, a change in the interest rate environment and stronger government controls such as capital gains tax.
Such a trigger could lead to a market correction of 30 per cent to 50 per cent in property prices, he said.
Other panel members at the forum - held at the Shangri-La Hotel - agreed that bubbles could be forming, particularly in larger markets such as China and India, where high-end residential prices have spiked in tier-one cities.
But they disagreed on whether the bubbles were on the verge of bursting, and whether they could derail economic recovery in the same way that the US sub-prime mortgage crisis did in 2008.
Professor Joseph Gyourko, director of the Wharton Real Estate Centre, said this was highly unlikely because Asia's households were not over-leveraged in the way US households were and the region's banking sector was more robust.
The dean of the NUS Business School, Professor Bernard Yeung, noted that the Chinese government was taking steps to rein in the market, and was addressing supply problems.
GIC Real Estate regional head for Asia Goh Kok Huat said India was 'messier around the edges', compared to China, but that it still presented huge growth opportunities.
Risk aversion shown by investors towards the US and Europe is leading to the inflow of money to Asia, fuelling property price rises, says an industry expert. -- PHOTO: REUTERS
ST : Pilot test for landed home designs
Sep 17, 2010
Pilot test for landed home designs
URA guidelines to give architects more leeway at Sembawang parcels
By Joyce Teo
DEVELOPERS will be given more flexibility in the design of landed homes at a new development site in Sembawang.
The Urban Redevelopment Authority (URA) is testing new guidelines at nine landed home parcels near Sembawang beach that could yield 57 units.
If the pilot test works out, URA said it might consider extending the guidelines to other locations.
Architects will gain more leeway in terms of the building's interior dimensions, although the overall external size must still follow fixed guidelines.
For instance, existing floor-to-floor guidelines for the sites will be relaxed so that homes built there can include four storeys.
Currently, the limit is three.
Other options include loftier living rooms and more compact bedrooms.
The sites are among 14 parcels at Phase Three of the new Sembawang Greenvale estate to be put up for auction on Oct 28, said URA.
They include individual bungalow lots, small parcels of four to 17 lots for terrace and semi-detached homes, and one parcel for strata housing. Individuals and small developers will be able to bid.
Under the new guidelines, part of the envelope control approach, URA will fix only the overall size of the house and do away with guidelines on internal features.
Thus, while the Greenvale site will still be designated a three-storey development under the new guidelines, there will be room for more creative layering of the floors within each house, URA said.
It said the guidelines would allow greater variety in designs for landed homes while keeping them in line with surrounding houses in terms of size and scale.
The changes followed a focus group consultation involving both landed house owners and industry professionals.
As one participant noted, individuality is hard to come by when there are more micro controls. Mr Tai Lee Siang, architecture firm Ong & Ong's group managing director designate, said: 'Every house ends up looking the same.'
W Architects managing director Mok Wei Wei said homes could have basements with higher protrusions above ground level, to let more light in.
Said Jones Lang LaSalle's head of Southeast Asia research, Dr Chua Yang Liang: 'Developers are always under pressure to maximise site use given high land prices. Still, their products must appeal to consumers. For example, people today like a large family entertainment area.'
Prices of the land parcels involved might rise later, but developers are unlikely to factor that in now as they need time to digest the guidelines, Dr Chua noted.
He felt the terrace plots could draw bids of $420 to $450 per sq ft (psf), and the bungalow and semi-detached plots, $200 to $350 psf. Another expert thought bids would reach only $150 to $240 psf.
Yesterday, URA also made available for sale a housing plot at Stirling Road that can yield about 445 housing units.
joyceteo@sph.com.sg
--------------------------------------------------------------------------------
Specific guidelines
UNDER current guidelines, landed homes are limited to three storeys.
There are guidelines on specific features. For instance, height is fixed at 4.5m for the first storey and 3.6m for the second and third storeys.
The floor to roof height of the attic space cannot exceed 5m at any point. The basement cannot protrude more than 1m above ground level if it is not to be regarded as a storey.
Flexi space use
UNDER new test guidelines, only the overall envelope, or size of the development, is fixed.
There are no guidelines on specific features such as floor-to-floor height and attic space. Instead, an overall volume approach is used, allowing for more lofty spaces in certain parts of the house such as the living room and more compact spaces elsewhere in places such as the study room.
Pilot test for landed home designs
URA guidelines to give architects more leeway at Sembawang parcels
By Joyce Teo
DEVELOPERS will be given more flexibility in the design of landed homes at a new development site in Sembawang.
The Urban Redevelopment Authority (URA) is testing new guidelines at nine landed home parcels near Sembawang beach that could yield 57 units.
If the pilot test works out, URA said it might consider extending the guidelines to other locations.
Architects will gain more leeway in terms of the building's interior dimensions, although the overall external size must still follow fixed guidelines.
For instance, existing floor-to-floor guidelines for the sites will be relaxed so that homes built there can include four storeys.
Currently, the limit is three.
Other options include loftier living rooms and more compact bedrooms.
The sites are among 14 parcels at Phase Three of the new Sembawang Greenvale estate to be put up for auction on Oct 28, said URA.
They include individual bungalow lots, small parcels of four to 17 lots for terrace and semi-detached homes, and one parcel for strata housing. Individuals and small developers will be able to bid.
Under the new guidelines, part of the envelope control approach, URA will fix only the overall size of the house and do away with guidelines on internal features.
Thus, while the Greenvale site will still be designated a three-storey development under the new guidelines, there will be room for more creative layering of the floors within each house, URA said.
It said the guidelines would allow greater variety in designs for landed homes while keeping them in line with surrounding houses in terms of size and scale.
The changes followed a focus group consultation involving both landed house owners and industry professionals.
As one participant noted, individuality is hard to come by when there are more micro controls. Mr Tai Lee Siang, architecture firm Ong & Ong's group managing director designate, said: 'Every house ends up looking the same.'
W Architects managing director Mok Wei Wei said homes could have basements with higher protrusions above ground level, to let more light in.
Said Jones Lang LaSalle's head of Southeast Asia research, Dr Chua Yang Liang: 'Developers are always under pressure to maximise site use given high land prices. Still, their products must appeal to consumers. For example, people today like a large family entertainment area.'
Prices of the land parcels involved might rise later, but developers are unlikely to factor that in now as they need time to digest the guidelines, Dr Chua noted.
He felt the terrace plots could draw bids of $420 to $450 per sq ft (psf), and the bungalow and semi-detached plots, $200 to $350 psf. Another expert thought bids would reach only $150 to $240 psf.
Yesterday, URA also made available for sale a housing plot at Stirling Road that can yield about 445 housing units.
joyceteo@sph.com.sg
--------------------------------------------------------------------------------
Specific guidelines
UNDER current guidelines, landed homes are limited to three storeys.
There are guidelines on specific features. For instance, height is fixed at 4.5m for the first storey and 3.6m for the second and third storeys.
The floor to roof height of the attic space cannot exceed 5m at any point. The basement cannot protrude more than 1m above ground level if it is not to be regarded as a storey.
Flexi space use
UNDER new test guidelines, only the overall envelope, or size of the development, is fixed.
There are no guidelines on specific features such as floor-to-floor height and attic space. Instead, an overall volume approach is used, allowing for more lofty spaces in certain parts of the house such as the living room and more compact spaces elsewhere in places such as the study room.
ST : Oct 22 start for real estate stat board
Sep 16, 2010
Oct 22 start for real estate stat board
All property agents must be registered with Council for Estate Agencies from next year
By Jessica Cheam
PARLIAMENT yesterday passed the Estate Agents Bill which will regulate property agents for the first time, marking an important milestone for Singapore's real estate industry.
The new statutory board to oversee the industry - the Council for Estate Agencies (CEA) - will begin operations on Oct 22, said National Development Minister Mah Bow Tan.
From Jan 1 next year, all property agents will have to be registered with the CEA and have to meet certain standards to continue working.
The Bill comes as the Government moves to address the standards of an industry dogged by a rising number of complaints against errant agents.
It follows a housing Bill sped through Parliament and passed in July to close a loophole which had allowed moneylenders to lodge caveats on HDB flats to claim a stake in sale proceeds.
MPs had highlighted the role of irresponsible housing agents who act in cahoots with moneylenders to mislead home owners as one of the unethical practices seen in recent years as Singapore experiences a property boom.
The new regulatory landscape forbids property agencies and agents from simultaneously acting as moneylenders. It also features a new code on ethics and conduct which bans agents from making referrals to moneylenders, among other practices, said Mr Mah.
Many MPs who spoke yesterday supported the Bill, although they also raised various concerns, ranging from foreigners operating as agents to commission guidelines and consumer awareness.
MPs Ho Geok Choo (West Coast GRC) and Lee Bee Wah (Ang Mo Kio GRC) asked if foreigners without knowledge of local laws should be allowed to work as agents. Mr Ang Mong Seng (Hong Kah GRC) went a step further to ask if foreigners could be banned from such jobs.
Mr Mah said 'no' as such measures would contravene the various free trade agreements Singapore has signed with its trading partners and would be considered a discriminatory practice.
However, although foreigners will still be allowed to operate as property agents, they will need to qualify for a work pass from the Manpower Ministry, comply with new rules and be registered with an agency under the new Bill.
Questions also surfaced from MPs such as Mr Cedric Foo (West Coast GRC) on how the new standard agreements - to replace current commission contracts between agents and buyers - will protect consumer interests.
Mr Mah said the new standard contracts will remove the auto-renewal clause that current contracts contain, and will also require the disclosure of any potential conflict of interest by the agent.
It will also allow for the commission to be paid to the agent only upon the completion of the transaction.
'Our main intention is to protect the consumer and we will endeavour to do so as much as possible without micro-managing the industry,' said Mr Mah.
Many MPs spoke on the issue of commissions, urging the CEA to fix commission rates. Mr Mah said the CEA cannot do so as this would be anti-competitive, and it was better for such rates to be influenced by market forces.
He also assured MPs that the ministry will work with the industry to ensure a smooth transition - a concern raised by Madam Ho and MP Halimah Yacob (Jurong GRC).
'We have been working with the industry for over a year, consulted them on the key changes and prepared them for the transition,' Mr Mah said.
Most importantly, he added, the key to a healthy, professional industry was public education - a theme MPs touched upon. 'We can have seminars, forums, and consumer guides...but CEA cannot do it on its own,' he said.
He advised consumers to look up their agents in the CEA's central database - which has details of all registered agents - before engaging them.
'The purpose of the new regulatory framework is not just to safeguard consumers against errant agents and salespersons, but also to preserve the integrity of the industry and the reputation of the large number of agents and salespersons providing professional service,' he said.
'Consumers must also exercise due vigilance in their property transactions. Only then can the new regime succeed.'
jcheam@sph.com.sg
The new regulations are not just to guard consumers against errant housing agents, but also to preserve the integrity of the industry and the reputation of agents. -- ST FILE PHOTO
Oct 22 start for real estate stat board
All property agents must be registered with Council for Estate Agencies from next year
By Jessica Cheam
PARLIAMENT yesterday passed the Estate Agents Bill which will regulate property agents for the first time, marking an important milestone for Singapore's real estate industry.
The new statutory board to oversee the industry - the Council for Estate Agencies (CEA) - will begin operations on Oct 22, said National Development Minister Mah Bow Tan.
From Jan 1 next year, all property agents will have to be registered with the CEA and have to meet certain standards to continue working.
The Bill comes as the Government moves to address the standards of an industry dogged by a rising number of complaints against errant agents.
It follows a housing Bill sped through Parliament and passed in July to close a loophole which had allowed moneylenders to lodge caveats on HDB flats to claim a stake in sale proceeds.
MPs had highlighted the role of irresponsible housing agents who act in cahoots with moneylenders to mislead home owners as one of the unethical practices seen in recent years as Singapore experiences a property boom.
The new regulatory landscape forbids property agencies and agents from simultaneously acting as moneylenders. It also features a new code on ethics and conduct which bans agents from making referrals to moneylenders, among other practices, said Mr Mah.
Many MPs who spoke yesterday supported the Bill, although they also raised various concerns, ranging from foreigners operating as agents to commission guidelines and consumer awareness.
MPs Ho Geok Choo (West Coast GRC) and Lee Bee Wah (Ang Mo Kio GRC) asked if foreigners without knowledge of local laws should be allowed to work as agents. Mr Ang Mong Seng (Hong Kah GRC) went a step further to ask if foreigners could be banned from such jobs.
Mr Mah said 'no' as such measures would contravene the various free trade agreements Singapore has signed with its trading partners and would be considered a discriminatory practice.
However, although foreigners will still be allowed to operate as property agents, they will need to qualify for a work pass from the Manpower Ministry, comply with new rules and be registered with an agency under the new Bill.
Questions also surfaced from MPs such as Mr Cedric Foo (West Coast GRC) on how the new standard agreements - to replace current commission contracts between agents and buyers - will protect consumer interests.
Mr Mah said the new standard contracts will remove the auto-renewal clause that current contracts contain, and will also require the disclosure of any potential conflict of interest by the agent.
It will also allow for the commission to be paid to the agent only upon the completion of the transaction.
'Our main intention is to protect the consumer and we will endeavour to do so as much as possible without micro-managing the industry,' said Mr Mah.
Many MPs spoke on the issue of commissions, urging the CEA to fix commission rates. Mr Mah said the CEA cannot do so as this would be anti-competitive, and it was better for such rates to be influenced by market forces.
He also assured MPs that the ministry will work with the industry to ensure a smooth transition - a concern raised by Madam Ho and MP Halimah Yacob (Jurong GRC).
'We have been working with the industry for over a year, consulted them on the key changes and prepared them for the transition,' Mr Mah said.
Most importantly, he added, the key to a healthy, professional industry was public education - a theme MPs touched upon. 'We can have seminars, forums, and consumer guides...but CEA cannot do it on its own,' he said.
He advised consumers to look up their agents in the CEA's central database - which has details of all registered agents - before engaging them.
'The purpose of the new regulatory framework is not just to safeguard consumers against errant agents and salespersons, but also to preserve the integrity of the industry and the reputation of the large number of agents and salespersons providing professional service,' he said.
'Consumers must also exercise due vigilance in their property transactions. Only then can the new regime succeed.'
jcheam@sph.com.sg
The new regulations are not just to guard consumers against errant housing agents, but also to preserve the integrity of the industry and the reputation of agents. -- ST FILE PHOTO
ST : Demand due not just to immigration
Sep 16, 2010
parliament
Demand due not just to immigration
IMMIGRATION is not solely to blame for strong housing demand, National Development Minister Mah Bow Tan said yesterday.
While the influx of new immigrants has been higher than usual, and has contributed to housing demand, it is only one of many demand-determining factors.
The 'sentiment-driven nature of the market' plays an important role, given that buyers bring forward home purchases if they feel prices will continue trending upwards, Mr Mah said.
Broader economic forces that impact overall demand are also at work. And the recent rise in property prices is a reflection of the improved economic outlook and low interest rates, he said.
That is why in the first half of last year - when the outlook was still looking very gloomy - property prices fell despite there being many foreigners and permanent residents here, Mr Mah added.
His reply came in response to a question from Mr Liang Eng Hwa (Holland-Bukit Timah GRC) about why the Ministry of National Development (MND) did not increase flat supply earlier to cater for the increased number of immigrants.
Mr Mah said it would have been 'foolhardy' to continue pushing out flats or land for housing at an increased rate when there was talk of the world entering a depression or a prolonged recession in the first half of last year.
With the economic outlook then uncertain, the MND had to further scale back its housing supply.
'We take a long-term view, but we also need to be cognizant of the short term... We have to be very flexible and view our housing supply in a very pragmatic manner,' Mr Mah said.
The government land sales programme, for example, is reviewed every six months to keep pace with projected demand, both in the short term as well as in the medium to long term, he noted.
Similarly, the number of new flats pushed out by HDB must take into account the long as well as the short term.
Apart from supply side measures, Mr Mah said, demand management initiatives to discourage speculative purchases will tackle current imbalances and help restore some stability in the HDB resale market.
ESTHER TEO
parliament
Demand due not just to immigration
IMMIGRATION is not solely to blame for strong housing demand, National Development Minister Mah Bow Tan said yesterday.
While the influx of new immigrants has been higher than usual, and has contributed to housing demand, it is only one of many demand-determining factors.
The 'sentiment-driven nature of the market' plays an important role, given that buyers bring forward home purchases if they feel prices will continue trending upwards, Mr Mah said.
Broader economic forces that impact overall demand are also at work. And the recent rise in property prices is a reflection of the improved economic outlook and low interest rates, he said.
That is why in the first half of last year - when the outlook was still looking very gloomy - property prices fell despite there being many foreigners and permanent residents here, Mr Mah added.
His reply came in response to a question from Mr Liang Eng Hwa (Holland-Bukit Timah GRC) about why the Ministry of National Development (MND) did not increase flat supply earlier to cater for the increased number of immigrants.
Mr Mah said it would have been 'foolhardy' to continue pushing out flats or land for housing at an increased rate when there was talk of the world entering a depression or a prolonged recession in the first half of last year.
With the economic outlook then uncertain, the MND had to further scale back its housing supply.
'We take a long-term view, but we also need to be cognizant of the short term... We have to be very flexible and view our housing supply in a very pragmatic manner,' Mr Mah said.
The government land sales programme, for example, is reviewed every six months to keep pace with projected demand, both in the short term as well as in the medium to long term, he noted.
Similarly, the number of new flats pushed out by HDB must take into account the long as well as the short term.
Apart from supply side measures, Mr Mah said, demand management initiatives to discourage speculative purchases will tackle current imbalances and help restore some stability in the HDB resale market.
ESTHER TEO
ST : Giving first crack to first timers
Sep 16, 2010
parliament
Giving first crack to first timers
New rules also level playing field for private property and HDB flat owners: Mah
By Esther Teo
NATIONAL Development Minister Mah Bow Tan acknowledged concerns of genuine upgraders and retirees yesterday but emphasised that the new property rules were meant to give first-time buyers 'first crack' at the market.
Mr Mah said that while some might be inconvenienced and disadvantaged, the broader goal of the rules was to reinforce the use of a Housing Board (HDB) flat for long-term owner occupation - not a mode of investment - and to give first-time home buyers priority.
'If you already own a private property then please don't at this point in time go and compete with the others to buy an HDB resale (flat) unless you're genuinely downgrading,' he said.
Mr Mah was responding to questions from Non-Constituency MP Sylvia Lim and Mr Lim Biow Chuan (Marine Parade GRC) on the way the new rules were making it harder to own a public and private home concurrently.
Those who buy an HDB resale flat on or after Aug 30 must also dispose of any private property they own - including any held overseas - within six months of the HDB purchase.
The measures also included tighter lending rules for home owners with mortgages looking to buy another property. They can now borrow up to only 70 per cent of the value, down from 80 per cent.
Ms Lim asked if the 'legitimate plans' of some private property owners who wished to monetise their investment would be jeopardised. Home owners close to retirement who wished to downgrade to an HDB flat and rent out their private property for retirement income would now face problems, she said.
Mr Mah said that while there are those who wanted the best of both worlds, some buyers had more pressing needs.
'We have a genuine need from first-timer couples for HDB resale flats and I think we should let them have first crack at it.'
While a good portion of complaints on the ground had centred on upgraders being disadvantaged, he said the rules encouraged them to be more prudent.
Complaints from upgraders were genuine, however they were premised on the assumption that the property market would keep going up, which was what made him worry, Mr Mah said. He said he did not want to witness a peak and crash of the market similar to that in 1997 which left many losing their homes and facing negative equity.
'(The new rules) will inconvenience some who already own a home who hope to upgrade or who hope to downsize but even then, I think they will agree with me that they will also benefit from a more stable market,' he added.
The rules also made the treatment of private property and HDB flat owners more equitable, redressing the anomaly before they were introduced, he said.
In the past, while HDB flat owners could not buy private property till their minimum occupation period (MOP) was completed, private property owners could enter the HDB resale market at any time while keeping their private property.
'Rather than saying that you are penalising the private property owner, we are actually making it equitable for both HDB owners as well as private property owners and we are also making these rules... fair for all property owners, whether you are PRs (permanent residents) or citizens,' he said.
Mr Mah also revealed that about 3 per cent - or 24,000 - of HDB flats owners held private property as well.
In response to Madam Ho Geok Choo's (West Coast GRC) question on providing adequate housing for the sandwich class - households earning $8,000 to $10,000 a month - Mr Mah said that HDB planned to release land sites for about 7,000 design, build and sell scheme (DBSS) flats and 8,000 executive condominium (EC) units this year and the next.
This will triple the current stock of DBSS flats and double that of ECs in two years, he said. Unsold DBSS flats tendered under the old rules, however, will still not be available for purchase by the sandwich class.
esthert@sph.com.sg
--------------------------------------------------------------------------------
STABLE MARKET
'(The new rules) will inconvenience some who already own a home who hope to upgrade or who hope to downsize but even then, I think they will agree with me that they will also benefit from a more stable market.'
National Development Minister Mah Bow Tan
parliament
Giving first crack to first timers
New rules also level playing field for private property and HDB flat owners: Mah
By Esther Teo
NATIONAL Development Minister Mah Bow Tan acknowledged concerns of genuine upgraders and retirees yesterday but emphasised that the new property rules were meant to give first-time buyers 'first crack' at the market.
Mr Mah said that while some might be inconvenienced and disadvantaged, the broader goal of the rules was to reinforce the use of a Housing Board (HDB) flat for long-term owner occupation - not a mode of investment - and to give first-time home buyers priority.
'If you already own a private property then please don't at this point in time go and compete with the others to buy an HDB resale (flat) unless you're genuinely downgrading,' he said.
Mr Mah was responding to questions from Non-Constituency MP Sylvia Lim and Mr Lim Biow Chuan (Marine Parade GRC) on the way the new rules were making it harder to own a public and private home concurrently.
Those who buy an HDB resale flat on or after Aug 30 must also dispose of any private property they own - including any held overseas - within six months of the HDB purchase.
The measures also included tighter lending rules for home owners with mortgages looking to buy another property. They can now borrow up to only 70 per cent of the value, down from 80 per cent.
Ms Lim asked if the 'legitimate plans' of some private property owners who wished to monetise their investment would be jeopardised. Home owners close to retirement who wished to downgrade to an HDB flat and rent out their private property for retirement income would now face problems, she said.
Mr Mah said that while there are those who wanted the best of both worlds, some buyers had more pressing needs.
'We have a genuine need from first-timer couples for HDB resale flats and I think we should let them have first crack at it.'
While a good portion of complaints on the ground had centred on upgraders being disadvantaged, he said the rules encouraged them to be more prudent.
Complaints from upgraders were genuine, however they were premised on the assumption that the property market would keep going up, which was what made him worry, Mr Mah said. He said he did not want to witness a peak and crash of the market similar to that in 1997 which left many losing their homes and facing negative equity.
'(The new rules) will inconvenience some who already own a home who hope to upgrade or who hope to downsize but even then, I think they will agree with me that they will also benefit from a more stable market,' he added.
The rules also made the treatment of private property and HDB flat owners more equitable, redressing the anomaly before they were introduced, he said.
In the past, while HDB flat owners could not buy private property till their minimum occupation period (MOP) was completed, private property owners could enter the HDB resale market at any time while keeping their private property.
'Rather than saying that you are penalising the private property owner, we are actually making it equitable for both HDB owners as well as private property owners and we are also making these rules... fair for all property owners, whether you are PRs (permanent residents) or citizens,' he said.
Mr Mah also revealed that about 3 per cent - or 24,000 - of HDB flats owners held private property as well.
In response to Madam Ho Geok Choo's (West Coast GRC) question on providing adequate housing for the sandwich class - households earning $8,000 to $10,000 a month - Mr Mah said that HDB planned to release land sites for about 7,000 design, build and sell scheme (DBSS) flats and 8,000 executive condominium (EC) units this year and the next.
This will triple the current stock of DBSS flats and double that of ECs in two years, he said. Unsold DBSS flats tendered under the old rules, however, will still not be available for purchase by the sandwich class.
esthert@sph.com.sg
--------------------------------------------------------------------------------
STABLE MARKET
'(The new rules) will inconvenience some who already own a home who hope to upgrade or who hope to downsize but even then, I think they will agree with me that they will also benefit from a more stable market.'
National Development Minister Mah Bow Tan
ST Forum : Privatising HUDC estate is the residents' call
Sep 15, 2010
Privatising HUDC estate is the residents' call
I REFER to the letter by Mr Justin Zhuang ('Why it's not right to privatise my HUDC'; Aug 28).
HUDC flats were built in the 1970s and 1980s as a housing option for middle-income Singapore citizen families.
The scheme to privatise HUDC estates was announced in 1995 as part of the Government's effort to meet the rising aspirations of Singaporeans to own private housing.
Privatisation enables the flat owners to have better control over the management of their estate.
The decision to proceed, or not, with the privatisation lies entirely with the residents.
A mandate for privatisation from at least 75 per cent of the flat owners of the estate must be obtained before privatisation may proceed.
HDB will facilitate the process only if the required mandate is obtained.
In determining the conversion cost, HDB needs to take into account the redevelopment potential and the current market value of the land.
Nonetheless, a concession is provided to cap the conversion cost at $30,000 per flat.
However, the concession cannot be extended indefinitely; hence, residents will have to obtain the mandate for privatisation within a three-year grace period to enjoy this concession.
Wen-Tan Hui Kuan (Mrs)
Deputy Director
(Projects & Development)
Housing & Development Board
Privatising HUDC estate is the residents' call
I REFER to the letter by Mr Justin Zhuang ('Why it's not right to privatise my HUDC'; Aug 28).
HUDC flats were built in the 1970s and 1980s as a housing option for middle-income Singapore citizen families.
The scheme to privatise HUDC estates was announced in 1995 as part of the Government's effort to meet the rising aspirations of Singaporeans to own private housing.
Privatisation enables the flat owners to have better control over the management of their estate.
The decision to proceed, or not, with the privatisation lies entirely with the residents.
A mandate for privatisation from at least 75 per cent of the flat owners of the estate must be obtained before privatisation may proceed.
HDB will facilitate the process only if the required mandate is obtained.
In determining the conversion cost, HDB needs to take into account the redevelopment potential and the current market value of the land.
Nonetheless, a concession is provided to cap the conversion cost at $30,000 per flat.
However, the concession cannot be extended indefinitely; hence, residents will have to obtain the mandate for privatisation within a three-year grace period to enjoy this concession.
Wen-Tan Hui Kuan (Mrs)
Deputy Director
(Projects & Development)
Housing & Development Board
Tuesday, September 14, 2010
ST : Less demand for new flats as measures bite
Sep 14, 2010
Less demand for new flats as measures bite
Yishun BTO project attracts fewer than three buyers per unit, well below the usual
By Jessica Cheam
MEASURES to cool the property market appear to be having an effect going by the lower level of demand for a new build-to-order (BTO) development.
The Yishun Riverwalk project attracted 3,225 applications for 1,408 flats - well below the ratio seen in past BTO launches when up to six times the number of bids were seen for each unit.
Demand for four- and five-room flats - typically more popular - was slightly under three applications for every unit. Four-roomers received 1,608 applications for 652 flats while the 252 five-roomers attracted 718 bids.
But demand was still robust for HDB's sale of balance flats, which offers homes ready for occupation within months.
The HDB received 10,968 applications for 1,624 homes on offer - almost seven for every flat.
Both sales launches closed yesterday.
Industry analysts say the flatter demand for new flats indicates that the cooling measures introduced two weeks ago have started to bite.
BTO launches held over the past couple of years have attracted up to six applications for every flat.
ERA Asia Pacific associate director Eugene Lim said the lower-than-usual demand could be due to location and the recent measures.
First-timers are likely also returning to the HDB resale market in anticipation of falling prices, he said. These buyers had found themselves priced out of the resale market amid the property boom and flocked to join the queue for new HDB flats.
'But now buyers are waiting to see if prices will drop. Those who have a need for homes will go to the resale market instead of queueing for a new flat which takes three years to build,' said Mr Lim.
Robust application numbers also do not necessarily translate into actual demand.
The HDB said recently that despite an overwhelming number of applications for landmark projects at Dawson, first-time buyers have been dropping out. It said that 23 per cent of first-time applicants did not select flats even though they were invited to.
The dropout rate was even higher on the first day of the selection process, with 25 per cent of first-timers declining the opportunity to secure a unit. The main reason given was that their choice of unit had been sold or they wanted to 'reconsider other housing options'.
Demand could drop further given the ample choice of homes as the HDB boosts supply.
Meanwhile, a residential site at Bedok Reservoir Crescent will be launched for sale today under the HDB's design, build and sell scheme (DBSS).
The site, which is near established amenities, has a gross floor area of 502,362 sq ft that could yield 430 homes. The tender closes on Nov 2.
Under the DBSS, private developers build public housing flats that come with condo-like finishes.
More buyers are also eligible for DBSS flats after the Government recently lifted the $8,000 monthly income ceiling for such buyers to $10,000.
jcheam@sph.com.sg
See Money
--------------------------------------------------------------------------------
WAIT AND SEE
'Now buyers are waiting to see if prices will drop. Those who have a need for homes will go to the resale market instead of queueing for a new flat which takes three years to build.'
ERA Asia Pacific associate director Eugene Lim
Less demand for new flats as measures bite
Yishun BTO project attracts fewer than three buyers per unit, well below the usual
By Jessica Cheam
MEASURES to cool the property market appear to be having an effect going by the lower level of demand for a new build-to-order (BTO) development.
The Yishun Riverwalk project attracted 3,225 applications for 1,408 flats - well below the ratio seen in past BTO launches when up to six times the number of bids were seen for each unit.
Demand for four- and five-room flats - typically more popular - was slightly under three applications for every unit. Four-roomers received 1,608 applications for 652 flats while the 252 five-roomers attracted 718 bids.
But demand was still robust for HDB's sale of balance flats, which offers homes ready for occupation within months.
The HDB received 10,968 applications for 1,624 homes on offer - almost seven for every flat.
Both sales launches closed yesterday.
Industry analysts say the flatter demand for new flats indicates that the cooling measures introduced two weeks ago have started to bite.
BTO launches held over the past couple of years have attracted up to six applications for every flat.
ERA Asia Pacific associate director Eugene Lim said the lower-than-usual demand could be due to location and the recent measures.
First-timers are likely also returning to the HDB resale market in anticipation of falling prices, he said. These buyers had found themselves priced out of the resale market amid the property boom and flocked to join the queue for new HDB flats.
'But now buyers are waiting to see if prices will drop. Those who have a need for homes will go to the resale market instead of queueing for a new flat which takes three years to build,' said Mr Lim.
Robust application numbers also do not necessarily translate into actual demand.
The HDB said recently that despite an overwhelming number of applications for landmark projects at Dawson, first-time buyers have been dropping out. It said that 23 per cent of first-time applicants did not select flats even though they were invited to.
The dropout rate was even higher on the first day of the selection process, with 25 per cent of first-timers declining the opportunity to secure a unit. The main reason given was that their choice of unit had been sold or they wanted to 'reconsider other housing options'.
Demand could drop further given the ample choice of homes as the HDB boosts supply.
Meanwhile, a residential site at Bedok Reservoir Crescent will be launched for sale today under the HDB's design, build and sell scheme (DBSS).
The site, which is near established amenities, has a gross floor area of 502,362 sq ft that could yield 430 homes. The tender closes on Nov 2.
Under the DBSS, private developers build public housing flats that come with condo-like finishes.
More buyers are also eligible for DBSS flats after the Government recently lifted the $8,000 monthly income ceiling for such buyers to $10,000.
jcheam@sph.com.sg
See Money
--------------------------------------------------------------------------------
WAIT AND SEE
'Now buyers are waiting to see if prices will drop. Those who have a need for homes will go to the resale market instead of queueing for a new flat which takes three years to build.'
ERA Asia Pacific associate director Eugene Lim
ST : HDB clarifies rules on flat ownership relating to inheritance
Sep 14, 2010
HDB clarifies rules on flat ownership relating to inheritance
By Esther Teo
THE new rules on real estate ownership will not necessarily force private property owners who inherit an HDB flat to sell one of the homes.
There is some leeway in the rule that states that if you buy an HDB resale flat you must dispose of any additional private property - held locally or abroad - within six months of the purchase.
The Housing Board clarified yesterday that if a property owner inherits an HDB flat that was bought before Aug 30 - the day the measures came into effect - he could keep both homes.
But if the flat's minimum occupation period (MOP) has yet to be met, the person inheriting it will have to move in until the MOP is complete, unless prior approval from HDB has been obtained to sublet the whole flat. This is in line with existing rules.
The dilemma will arise if a private property owner inherits an HDB flat that was bought on or after Aug 30.
The owner will have to decide which property - public or private - to sell.
Once a flat's MOP is met, a private property owner will be able to inherit it as long as he meets the relevant eligibility conditions.
This means that any resale flat bought within the past two weeks will only be able to be inherited and kept by a private property-owning beneficiary in 2015 at the earliest.
But the HDB may consider exemptions on a case-by-case basis.
In situations where the inherited flat has already met the MOP but the beneficiary decides not to take it over - or is not eligible - it can be sold on the open market within 12 months from the date it was vested.
If the inherited flat does not meet the MOP, the beneficiary can ask the HDB for help. 'We will assess the merits of the case to see how we can assist him,' it said.
Based on existing rules, an HDB flat owner can own only one HDB flat at any one time. An HDB flat owner who inherits another HDB flat has to decide which one to keep.
'If he decides to keep the inherited flat, he has to sell his existing HDB flat - subject to eligibility conditions for sale such as the MOP - before he can take possession of the inherited flat,' the HDB said.
Mrs Linda Chew, 52, said that it was only fair that beneficiaries who own private property are not forced to dispose of flats that their parents might have left them.
Her 74-year-old mother lives in a three-room HDB flat in Tampines while she lives in a condo in Simei.
'My mum is still healthy but eventually when we have to decide on what to do with her flat, I think we want to have all options available to us still... Maybe even holding on to it as a long-term investment,' said Mrs Chew.
Experts say that inheritance seems to be the only way for private property owners to enter the HDB resale market without having to sell their existing homes.
They say that the new rules might not affect that many people as many sell inherited flats and share the proceeds among siblings.
Mr Colin Tan, research and consultancy director of Chesterton Suntec International, said the new rules were fair and would set people's minds at rest since inheriting a flat was often a situation outside of one's control.
'In most cases, unless the property gives you an incentive to keep it, such as if it's centrally located in a good location, most people will liquidate... With more resale flats expected to enter the market, it might also be better to cash out now,' he added.
HDB clarifies rules on flat ownership relating to inheritance
By Esther Teo
THE new rules on real estate ownership will not necessarily force private property owners who inherit an HDB flat to sell one of the homes.
There is some leeway in the rule that states that if you buy an HDB resale flat you must dispose of any additional private property - held locally or abroad - within six months of the purchase.
The Housing Board clarified yesterday that if a property owner inherits an HDB flat that was bought before Aug 30 - the day the measures came into effect - he could keep both homes.
But if the flat's minimum occupation period (MOP) has yet to be met, the person inheriting it will have to move in until the MOP is complete, unless prior approval from HDB has been obtained to sublet the whole flat. This is in line with existing rules.
The dilemma will arise if a private property owner inherits an HDB flat that was bought on or after Aug 30.
The owner will have to decide which property - public or private - to sell.
Once a flat's MOP is met, a private property owner will be able to inherit it as long as he meets the relevant eligibility conditions.
This means that any resale flat bought within the past two weeks will only be able to be inherited and kept by a private property-owning beneficiary in 2015 at the earliest.
But the HDB may consider exemptions on a case-by-case basis.
In situations where the inherited flat has already met the MOP but the beneficiary decides not to take it over - or is not eligible - it can be sold on the open market within 12 months from the date it was vested.
If the inherited flat does not meet the MOP, the beneficiary can ask the HDB for help. 'We will assess the merits of the case to see how we can assist him,' it said.
Based on existing rules, an HDB flat owner can own only one HDB flat at any one time. An HDB flat owner who inherits another HDB flat has to decide which one to keep.
'If he decides to keep the inherited flat, he has to sell his existing HDB flat - subject to eligibility conditions for sale such as the MOP - before he can take possession of the inherited flat,' the HDB said.
Mrs Linda Chew, 52, said that it was only fair that beneficiaries who own private property are not forced to dispose of flats that their parents might have left them.
Her 74-year-old mother lives in a three-room HDB flat in Tampines while she lives in a condo in Simei.
'My mum is still healthy but eventually when we have to decide on what to do with her flat, I think we want to have all options available to us still... Maybe even holding on to it as a long-term investment,' said Mrs Chew.
Experts say that inheritance seems to be the only way for private property owners to enter the HDB resale market without having to sell their existing homes.
They say that the new rules might not affect that many people as many sell inherited flats and share the proceeds among siblings.
Mr Colin Tan, research and consultancy director of Chesterton Suntec International, said the new rules were fair and would set people's minds at rest since inheriting a flat was often a situation outside of one's control.
'In most cases, unless the property gives you an incentive to keep it, such as if it's centrally located in a good location, most people will liquidate... With more resale flats expected to enter the market, it might also be better to cash out now,' he added.
ST : New property rules: 'Small impact' on private sector
Sep 14, 2010
New property rules: 'Small impact' on private sector
By Joyce Teo
THE measures introduced to cool the property boom are 'really for the HDB market' and not the private real estate sector, said CapitaLand Residential Singapore chief executive Wong Heang Fine.
Mr Wong pointed out yesterday that people are still unsure about how the steps unveiled last month will affect the market.
'That will settle in a couple of months and then we'll be able to assess what the real impact is,' he said.
'But as you can see from the measures, it doesn't affect first-time buyers and buyers of private housing, except if you're a speculator.'
Mr Wong told the media and analysts that the measures will have some impact but it will be small.
He said the market is strong with good liquidity and low interest rates, and underpinned by good economic growth.
The measures include tighter lending rules for home owners with mortgages who are looking to buy another property.
Mr Wong was speaking during a visit to a Bedok Town Centre site that CapitaLand Residential Singapore and CapitaMalls Asia won in a tender last week with a bid of $788.89 million or $841 per sq ft (psf) per plot ratio.
The two CapitaLand units will build a 13-storey mall and residential complex on the land.
The mall - similar in size to Bishan Junction 8 - will take up three floors or a gross floor area of 375,266 sq ft, from level one to basement two.
It will have an estimated net lettable area of 230,000 sq ft to 240,000 sq ft.
This makes it about three times bigger than the neighbouring Bedok Point mall.
Basements one and two will be linked directly to Bedok MRT station and level one to a new bus interchange, which will occupy about 3,000 sq m.
When completed in the first half of 2014, the mall's capital value will be about $3,000 psf of net lettable area.
Knight Frank group managing director Danny Yeo said the Bedok mall should be able to fetch rents of $15 psf to $17 psf, higher than that of a typical suburban mall.
Mr Yeo said the location is promising as there is a lack of malls in the Bedok area and that catchment is not an issue.
The new mall will increase the estimated retail space per capita in Bedok from 2 sq ft to 2.8 sq ft, compared with 5.2 sq ft in Tampines, said CapitaMalls Asia chief executive Lim Beng Chee.
The 500 apartments will sit on top of the mall, taking up a gross floor area of 562,899 sq ft, or 60 per cent of the space.
They will be launched nine months or so after.
Construction of the building will start in the fourth quarter of next year after CapitaLand builds a temporary bus interchange next to the site.
The existing interchange is on the land CapitaLand has bought.
Meanwhile, CapitaLand will push out its designer condo project on the former Farrer Court site by the end of this year, said Mr Wong.
The launch of the upmarket condo, which was designed by well-known architect Zaha Hadid, has been delayed by market conditions.
It was to have been launched for sale in the first half of 2009 and then in the first half of this year.
--------------------------------------------------------------------------------
The market is strong with good liquidity and low interest rates, and underpinned by good economic growth.
New property rules: 'Small impact' on private sector
By Joyce Teo
THE measures introduced to cool the property boom are 'really for the HDB market' and not the private real estate sector, said CapitaLand Residential Singapore chief executive Wong Heang Fine.
Mr Wong pointed out yesterday that people are still unsure about how the steps unveiled last month will affect the market.
'That will settle in a couple of months and then we'll be able to assess what the real impact is,' he said.
'But as you can see from the measures, it doesn't affect first-time buyers and buyers of private housing, except if you're a speculator.'
Mr Wong told the media and analysts that the measures will have some impact but it will be small.
He said the market is strong with good liquidity and low interest rates, and underpinned by good economic growth.
The measures include tighter lending rules for home owners with mortgages who are looking to buy another property.
Mr Wong was speaking during a visit to a Bedok Town Centre site that CapitaLand Residential Singapore and CapitaMalls Asia won in a tender last week with a bid of $788.89 million or $841 per sq ft (psf) per plot ratio.
The two CapitaLand units will build a 13-storey mall and residential complex on the land.
The mall - similar in size to Bishan Junction 8 - will take up three floors or a gross floor area of 375,266 sq ft, from level one to basement two.
It will have an estimated net lettable area of 230,000 sq ft to 240,000 sq ft.
This makes it about three times bigger than the neighbouring Bedok Point mall.
Basements one and two will be linked directly to Bedok MRT station and level one to a new bus interchange, which will occupy about 3,000 sq m.
When completed in the first half of 2014, the mall's capital value will be about $3,000 psf of net lettable area.
Knight Frank group managing director Danny Yeo said the Bedok mall should be able to fetch rents of $15 psf to $17 psf, higher than that of a typical suburban mall.
Mr Yeo said the location is promising as there is a lack of malls in the Bedok area and that catchment is not an issue.
The new mall will increase the estimated retail space per capita in Bedok from 2 sq ft to 2.8 sq ft, compared with 5.2 sq ft in Tampines, said CapitaMalls Asia chief executive Lim Beng Chee.
The 500 apartments will sit on top of the mall, taking up a gross floor area of 562,899 sq ft, or 60 per cent of the space.
They will be launched nine months or so after.
Construction of the building will start in the fourth quarter of next year after CapitaLand builds a temporary bus interchange next to the site.
The existing interchange is on the land CapitaLand has bought.
Meanwhile, CapitaLand will push out its designer condo project on the former Farrer Court site by the end of this year, said Mr Wong.
The launch of the upmarket condo, which was designed by well-known architect Zaha Hadid, has been delayed by market conditions.
It was to have been launched for sale in the first half of 2009 and then in the first half of this year.
--------------------------------------------------------------------------------
The market is strong with good liquidity and low interest rates, and underpinned by good economic growth.
BT : DBSS site at Bedok Reservoir launched
Business Times - 14 Sep 2010
DBSS site at Bedok Reservoir launched
By UMA SHANKARI
THE Housing and Development Board (HDB) has launched a plot at Bedok Reservoir Crescent for sale by public tender under the design, build and sell scheme (DBSS).
Around 430 public housing units can be built on the site, which is 179,400 square feet in size and can be built up to a maximum gross floor area of 502,400 sq ft.
Analysts expect it to sell for $250-300 per sq ft per plot ratio (psf ppr).
It is likely to be popular with developers because it is an established area, says Dennis Wee, chairman of Dennis Wee Realty.
PropNex chief executive Mohamed Ismail said: 'The entire Bedok Reservoir belt is being built up into a rich belt of attractive mass-market housing.'
Compared with private homes in the area - such as the Bedok Waterfront collection developed jointly by Frasers Centrepoint and Far East Organization - the DBSS flats will be appealing in price terms, he said. New private apartments in the area are selling for a median price of $1,000 psf, while the DBSS flats should be priced around $600 psf.
Analysts reckon buyer interest in the flats will be strong, as the income ceiling for buying DBSS flats was revised recently. First-time buyers earning up to $10,000 a month can now buy new DBSS flats with a $30,000 CPF Housing Grant.
Including the latest Bedok Reservoir plot, HDB has released three DBSS sites with a combined estimated yield of 1,710 flats so far this year. Another two DBSS sites with a combined estimated yield of 1,210 units - one at Upper Serangoon Road and the other at Jurong West - will be launched for sale in the coming months.
More sites for DBSS development will be made available if there is sustained demand, HDB says.
Flats sold under the DBSS come with a 99-year lease and are offered to buyers under HDB's eligibility conditions. But the developers who buy such sites have flexibility in designing, pricing and selling the flats - subject to legislation and regulations.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
DBSS site at Bedok Reservoir launched
By UMA SHANKARI
THE Housing and Development Board (HDB) has launched a plot at Bedok Reservoir Crescent for sale by public tender under the design, build and sell scheme (DBSS).
Around 430 public housing units can be built on the site, which is 179,400 square feet in size and can be built up to a maximum gross floor area of 502,400 sq ft.
Analysts expect it to sell for $250-300 per sq ft per plot ratio (psf ppr).
It is likely to be popular with developers because it is an established area, says Dennis Wee, chairman of Dennis Wee Realty.
PropNex chief executive Mohamed Ismail said: 'The entire Bedok Reservoir belt is being built up into a rich belt of attractive mass-market housing.'
Compared with private homes in the area - such as the Bedok Waterfront collection developed jointly by Frasers Centrepoint and Far East Organization - the DBSS flats will be appealing in price terms, he said. New private apartments in the area are selling for a median price of $1,000 psf, while the DBSS flats should be priced around $600 psf.
Analysts reckon buyer interest in the flats will be strong, as the income ceiling for buying DBSS flats was revised recently. First-time buyers earning up to $10,000 a month can now buy new DBSS flats with a $30,000 CPF Housing Grant.
Including the latest Bedok Reservoir plot, HDB has released three DBSS sites with a combined estimated yield of 1,710 flats so far this year. Another two DBSS sites with a combined estimated yield of 1,210 units - one at Upper Serangoon Road and the other at Jurong West - will be launched for sale in the coming months.
More sites for DBSS development will be made available if there is sustained demand, HDB says.
Flats sold under the DBSS come with a 99-year lease and are offered to buyers under HDB's eligibility conditions. But the developers who buy such sites have flexibility in designing, pricing and selling the flats - subject to legislation and regulations.
Copyright © 2010 Singapore Press Holdings Ltd. All rights reserved.
ST : Muted sales after new property rules kick in
Sep 13, 2010
Muted sales after new property rules kick in
Buyers waiting for prices to drop, but developers hold steady
By Esther Teo
IT IS fewer visitors and even fewer sales for property showflats across the island as buyers play a waiting game in the hope of seeing prices fall.
However, developers have yet to blink, with asking prices at most showflats holding steady, with one - NV Residences in Pasir Ris - even raising prices marginally at the weekend.
Two weeks after measures to cool the property market were introduced, NV Residences bucked the trend of muted sales with a strong showing of 90 units sold at the Hari Raya weekend.
This brings total sales to 250 out of 300 units released. Eighty per cent of buyers were Singaporeans; the rest were permanent residents and foreigners, a City Developments (CDL) spokesman said.
Prices were raised by between 1 per cent and 2 per cent at the weekend from its average selling price of $830 per sq feet (psf) when the condominium first previewed last Wednesday. The 642-unit condo is the first large residential project to be released after the Government introduced new property rules on Aug 30.
The new measures included tighter lending rules for home owners with existing mortgages looking to buy another property. They can now borrow up to only 70 per cent of the value, down from 80 per cent. Those who buy an HDB resale flat on or after Aug 30 must also dispose of their private property - including any held overseas - within six months of the HDB purchase.
When The Straits Times visited NV Residences on Saturday afternoon, more than 100 potential buyers crowded its showflat at Pasir Ris.
Madam Linda Tay, 55, who bought a two-bedroom apartment there, said she was unaffected by the new rules as the mortgage on the HDB flat she and her husband have been living in for the past 22 years was paid up.
'This is a long-term investment for us, we can rent it out or pass it on to our children...We think it is better than just leaving our money in the bank,' she said.
PropNex chief executive Mohamed Ismail said the project's good location and reasonable pricing were key to its strong sales. Other sites sold to developers this year are expected to be launched for up to $1,000 psf, given their break-even prices of about $800 psf, he said.
Another analyst said that NV Residences, as the newest launch on the market, would attract the most buyer interest.
At other showflats across the island, buyer traffic was down, with only a handful of visitors at any one time. It was a quiet Saturday afternoon for the showflats at Waterfront Gold at Bedok Reservoir Road, Centro Residences near Ang Mo Kio MRT and Flamingo Valley in Siglap.
Some agents said the number of walk-in buyers at showflats has dropped by up to 10 per cent since the cooling measures were introduced.
Far East Organization's Centro Residences did not record any sales at the weekend. Phase Two of 319-unit leasehold project The Greenwich at Seletar Hills saw nine homes sold, bringing total sales to 225 out of 265 units launched, at an average selling price of $1,074 psf.
Frasers Centrepoint Homes declined to give weekend sales figures for Flamingo Valley and Waterfront Gold.
DMG and Partners property consultant Brandon Lee said it was unlikely developers would lower prices immediately as the strong run up in property prices and sales over the past year have given them a strong holding power.
Mr Ong Kah Seng, Cushman & Wakefield Asia-Pacific research senior manager, said that for prices to fall, take-up must first moderate, reflecting the onset of a contraction in homebuying interest.
'Developers and home owners are reluctant to lower prices and...will consider doing so only when all circumstances dictate a necessity,' he said.
But PropNex's Mr Ismail said that while it was still too early to expect any price adjustment, the mass market segment might see a 5 per cent to 10 per cent reduction in prices should the take-up rate in newer launches be lukewarm. 'This will probably unfold in the next couple of months,' he said.
esthert@sph.com.sg
Muted sales after new property rules kick in
Buyers waiting for prices to drop, but developers hold steady
By Esther Teo
IT IS fewer visitors and even fewer sales for property showflats across the island as buyers play a waiting game in the hope of seeing prices fall.
However, developers have yet to blink, with asking prices at most showflats holding steady, with one - NV Residences in Pasir Ris - even raising prices marginally at the weekend.
Two weeks after measures to cool the property market were introduced, NV Residences bucked the trend of muted sales with a strong showing of 90 units sold at the Hari Raya weekend.
This brings total sales to 250 out of 300 units released. Eighty per cent of buyers were Singaporeans; the rest were permanent residents and foreigners, a City Developments (CDL) spokesman said.
Prices were raised by between 1 per cent and 2 per cent at the weekend from its average selling price of $830 per sq feet (psf) when the condominium first previewed last Wednesday. The 642-unit condo is the first large residential project to be released after the Government introduced new property rules on Aug 30.
The new measures included tighter lending rules for home owners with existing mortgages looking to buy another property. They can now borrow up to only 70 per cent of the value, down from 80 per cent. Those who buy an HDB resale flat on or after Aug 30 must also dispose of their private property - including any held overseas - within six months of the HDB purchase.
When The Straits Times visited NV Residences on Saturday afternoon, more than 100 potential buyers crowded its showflat at Pasir Ris.
Madam Linda Tay, 55, who bought a two-bedroom apartment there, said she was unaffected by the new rules as the mortgage on the HDB flat she and her husband have been living in for the past 22 years was paid up.
'This is a long-term investment for us, we can rent it out or pass it on to our children...We think it is better than just leaving our money in the bank,' she said.
PropNex chief executive Mohamed Ismail said the project's good location and reasonable pricing were key to its strong sales. Other sites sold to developers this year are expected to be launched for up to $1,000 psf, given their break-even prices of about $800 psf, he said.
Another analyst said that NV Residences, as the newest launch on the market, would attract the most buyer interest.
At other showflats across the island, buyer traffic was down, with only a handful of visitors at any one time. It was a quiet Saturday afternoon for the showflats at Waterfront Gold at Bedok Reservoir Road, Centro Residences near Ang Mo Kio MRT and Flamingo Valley in Siglap.
Some agents said the number of walk-in buyers at showflats has dropped by up to 10 per cent since the cooling measures were introduced.
Far East Organization's Centro Residences did not record any sales at the weekend. Phase Two of 319-unit leasehold project The Greenwich at Seletar Hills saw nine homes sold, bringing total sales to 225 out of 265 units launched, at an average selling price of $1,074 psf.
Frasers Centrepoint Homes declined to give weekend sales figures for Flamingo Valley and Waterfront Gold.
DMG and Partners property consultant Brandon Lee said it was unlikely developers would lower prices immediately as the strong run up in property prices and sales over the past year have given them a strong holding power.
Mr Ong Kah Seng, Cushman & Wakefield Asia-Pacific research senior manager, said that for prices to fall, take-up must first moderate, reflecting the onset of a contraction in homebuying interest.
'Developers and home owners are reluctant to lower prices and...will consider doing so only when all circumstances dictate a necessity,' he said.
But PropNex's Mr Ismail said that while it was still too early to expect any price adjustment, the mass market segment might see a 5 per cent to 10 per cent reduction in prices should the take-up rate in newer launches be lukewarm. 'This will probably unfold in the next couple of months,' he said.
esthert@sph.com.sg
Monday, September 13, 2010
ST : Wait-and-see over property measures
Sep 12, 2010
Wait-and-see over property measures
Analysts say more people are sitting on the sidelines and prices unlikely to head south any time soon
By Joyce Teo
Last Wednesday, one mass market condominium project in Pasir Ris attracted 160 buyers on its preview day.
This caught many property experts by surprise because the Government had just announced measures aimed at cooling the property market on Aug 30.
But the market has since largely settled into a stalemate, as buyers wait for prices to fall while sellers refuse to budge on their prices.
But property experts say robust sales at the 642-unit NV Residences in Pasir Ris Grove have not affected the general mood in the market.
'Most people are still in the wait-and- see mode,' said ERA Asia Pacific associate director Eugene Lim.
'NV Residences is near the MRT station and keen buyers got the first cut. This was the initial response, which is usually good,' he said.
'We'll have to see how quickly the rest of the project sells.'
Experts believe buyers were likely drawn to the project's affordable pricing. Also, agents had started drumming up interest in the project some time back, before the cooling measures were introduced.
Said ECG Property chief executive Eric Cheng: 'We can't judge the market by one launch. There are other projects that are not performing as well.
'I believe market sentiment has been affected by the measures and developers will have to be realistic.'
Property experts say sales volume will drop as more prefer to sit on the sidelines. They are unsure if prices will head south but if they do, it will not be any time soon.
Mr Cheng's advice for buyers is: 'If you're not in need of a property immediately, you can wait a while. We feel that prices will stabilise or fall slightly by 3 per cent to 7 per cent.'
The new measures include tighter lending rules for those with existing mortgages looking to buy another property. They can now borrow up to only 70 per cent of the property's value, down from 80 per cent.
Those who buy an HDB resale flat on or after Aug 30 must sell their private property - including any held overseas - within six months of the HDB purchase.
'I think the HDB resale market prices will correct first,' said Chesterton Suntec International's research and consultancy director, Mr Colin Tan.
'If we bar investment monies from flowing into this HDB segment, prices may start to correct, especially if these hot monies have been mainly responsible for the rise in resale flat prices.'
But at the moment, liquidity is still very strong, said Mr Tan.
'It is a global problem and it is not easy to tackle... We may have slowed down the price increases, but prices are still rising.'
Another property expert said: 'We will have to wait till the end of the year to see if there is a price correction in the HDB market.'
But certainly, 'sellers can no longer ask for high COVs unless their flats are very special. For example, if they were very nicely renovated', said ERA's Mr Lim.
COV is cash over valuation, the amount of cash a buyer has to fork out on top of the valuation price.
An experienced industry source who declined to be named said: 'Things won't likely change very much in the next few months.
'I think people will still buy and prices may still rise. We will have to wait till perhaps early next year when supply kicks in, in both the HDB and private markets.'
The Government will offer more than 16,000 new build-to-order flats this year and up to 22,000 next year.
It is also pushing out a record amount of land for sale in the second half of this year.
joyceteo@sph.com.sg
Wait-and-see over property measures
Analysts say more people are sitting on the sidelines and prices unlikely to head south any time soon
By Joyce Teo
Last Wednesday, one mass market condominium project in Pasir Ris attracted 160 buyers on its preview day.
This caught many property experts by surprise because the Government had just announced measures aimed at cooling the property market on Aug 30.
But the market has since largely settled into a stalemate, as buyers wait for prices to fall while sellers refuse to budge on their prices.
But property experts say robust sales at the 642-unit NV Residences in Pasir Ris Grove have not affected the general mood in the market.
'Most people are still in the wait-and- see mode,' said ERA Asia Pacific associate director Eugene Lim.
'NV Residences is near the MRT station and keen buyers got the first cut. This was the initial response, which is usually good,' he said.
'We'll have to see how quickly the rest of the project sells.'
Experts believe buyers were likely drawn to the project's affordable pricing. Also, agents had started drumming up interest in the project some time back, before the cooling measures were introduced.
Said ECG Property chief executive Eric Cheng: 'We can't judge the market by one launch. There are other projects that are not performing as well.
'I believe market sentiment has been affected by the measures and developers will have to be realistic.'
Property experts say sales volume will drop as more prefer to sit on the sidelines. They are unsure if prices will head south but if they do, it will not be any time soon.
Mr Cheng's advice for buyers is: 'If you're not in need of a property immediately, you can wait a while. We feel that prices will stabilise or fall slightly by 3 per cent to 7 per cent.'
The new measures include tighter lending rules for those with existing mortgages looking to buy another property. They can now borrow up to only 70 per cent of the property's value, down from 80 per cent.
Those who buy an HDB resale flat on or after Aug 30 must sell their private property - including any held overseas - within six months of the HDB purchase.
'I think the HDB resale market prices will correct first,' said Chesterton Suntec International's research and consultancy director, Mr Colin Tan.
'If we bar investment monies from flowing into this HDB segment, prices may start to correct, especially if these hot monies have been mainly responsible for the rise in resale flat prices.'
But at the moment, liquidity is still very strong, said Mr Tan.
'It is a global problem and it is not easy to tackle... We may have slowed down the price increases, but prices are still rising.'
Another property expert said: 'We will have to wait till the end of the year to see if there is a price correction in the HDB market.'
But certainly, 'sellers can no longer ask for high COVs unless their flats are very special. For example, if they were very nicely renovated', said ERA's Mr Lim.
COV is cash over valuation, the amount of cash a buyer has to fork out on top of the valuation price.
An experienced industry source who declined to be named said: 'Things won't likely change very much in the next few months.
'I think people will still buy and prices may still rise. We will have to wait till perhaps early next year when supply kicks in, in both the HDB and private markets.'
The Government will offer more than 16,000 new build-to-order flats this year and up to 22,000 next year.
It is also pushing out a record amount of land for sale in the second half of this year.
joyceteo@sph.com.sg
TODAY ONLINE : Cooling measures not meant to punish but to protect
Cooling measures not meant to punish but to protect
by Colin Tan
05:55 AM Sep 10, 2010
There have been numerous analyses recently on how the housing market is reacting to the Government's property cooling measures.
But to date, the only impact we can be truly certain of is the huge toll they have taken on the health of overworked reporters. Many have taken ill after rushing out market updates and analyses.
Beyond that, it is too early to assess how much the market has changed. The strongest buying interest has always been for new launches. The correlation between launches and sales is high.
Understandably, developers have held back their projects, taking time to re-assess the market and come up with new pricing strategies. Without new launches, we are never going to be sure of the effectiveness of the measures.
It is two weeks now since the big announcement but many are still not getting it. There have been an unusually high number of complaints about the unfairness of the measures.
Contrary to what some may think, the measures are not meant to penalise any group of buyers but to protect the financial system. It is to weed out risky buying - be it from speculators, investors or even genuine upgraders. What has fairness got to do with it?
If risky buying is allowed to continue, the bubble will become bigger as prices and fundamentals grow further apart. If it bursts, the system may collapse. Nobody benefits - everyone is a loser.
For speculators and investors, the message is clear: Manage your risks to make your money but do not be so greedy as to put the entire system at risk.
To genuine upgraders: If the timing of your sale and purchase under the new rules is so precarious financing-wise, you should seriously reconsider whether you should be upgrading at all in the current overly bullish market.
Do remember that the authorities see an overall heightened market risk, hence they have put in place the measures.
For most of us, property buying is almost always an emotional decision. Often, a great deal of objectivity is lost during the buying stage. A year or two later, these same measures may be looked upon as a blessing in disguise.
Some recent analyses also appear to assume that prices will always be rising. Prices do and will come down eventually. It should not be a case of upgrade now or never. It is much safer to upgrade during a stable or market correction phase.
Similarly, new ownership rules for HDB resale flats that exclude private property owners unless they sell their private homes first are meant to solve the shortage of resale flats for genuine occupiers, not to penalise investors. Surely even they cannot begrudge the advantage given to those who have yet to own their first property.
But what got me really baffled was the advice to people not to give up owning an HDB flat as it keeps its value better than a leasehold private apartment. Surely, a golden rule of investing is to buy low and sell high.
If prices of HDB resale flats have reached record highs with little further upside expected, is it not better to sell? One should not be unduly fixated on whether it has turned into something that sometimes money cannot buy.
The measures are meant to stabilise the resale market, which means less volatility going forward. Less volatility means less opportunity for profit making. Such advice does not make sense for investors.
For the average Singaporean, it would not matter much anyway. The majority of Singaporeans have enough financial resources to own only one property. And if they upgrade, most cannot afford to keep their previous property.
That is the reality. It is the reason why most are unhappy about runaway property prices. They see their upgrading dreams dashed, not because they lost out on making money.
The writer is head of research and consultancy at Chesterton Suntec International.
by Colin Tan
05:55 AM Sep 10, 2010
There have been numerous analyses recently on how the housing market is reacting to the Government's property cooling measures.
But to date, the only impact we can be truly certain of is the huge toll they have taken on the health of overworked reporters. Many have taken ill after rushing out market updates and analyses.
Beyond that, it is too early to assess how much the market has changed. The strongest buying interest has always been for new launches. The correlation between launches and sales is high.
Understandably, developers have held back their projects, taking time to re-assess the market and come up with new pricing strategies. Without new launches, we are never going to be sure of the effectiveness of the measures.
It is two weeks now since the big announcement but many are still not getting it. There have been an unusually high number of complaints about the unfairness of the measures.
Contrary to what some may think, the measures are not meant to penalise any group of buyers but to protect the financial system. It is to weed out risky buying - be it from speculators, investors or even genuine upgraders. What has fairness got to do with it?
If risky buying is allowed to continue, the bubble will become bigger as prices and fundamentals grow further apart. If it bursts, the system may collapse. Nobody benefits - everyone is a loser.
For speculators and investors, the message is clear: Manage your risks to make your money but do not be so greedy as to put the entire system at risk.
To genuine upgraders: If the timing of your sale and purchase under the new rules is so precarious financing-wise, you should seriously reconsider whether you should be upgrading at all in the current overly bullish market.
Do remember that the authorities see an overall heightened market risk, hence they have put in place the measures.
For most of us, property buying is almost always an emotional decision. Often, a great deal of objectivity is lost during the buying stage. A year or two later, these same measures may be looked upon as a blessing in disguise.
Some recent analyses also appear to assume that prices will always be rising. Prices do and will come down eventually. It should not be a case of upgrade now or never. It is much safer to upgrade during a stable or market correction phase.
Similarly, new ownership rules for HDB resale flats that exclude private property owners unless they sell their private homes first are meant to solve the shortage of resale flats for genuine occupiers, not to penalise investors. Surely even they cannot begrudge the advantage given to those who have yet to own their first property.
But what got me really baffled was the advice to people not to give up owning an HDB flat as it keeps its value better than a leasehold private apartment. Surely, a golden rule of investing is to buy low and sell high.
If prices of HDB resale flats have reached record highs with little further upside expected, is it not better to sell? One should not be unduly fixated on whether it has turned into something that sometimes money cannot buy.
The measures are meant to stabilise the resale market, which means less volatility going forward. Less volatility means less opportunity for profit making. Such advice does not make sense for investors.
For the average Singaporean, it would not matter much anyway. The majority of Singaporeans have enough financial resources to own only one property. And if they upgrade, most cannot afford to keep their previous property.
That is the reality. It is the reason why most are unhappy about runaway property prices. They see their upgrading dreams dashed, not because they lost out on making money.
The writer is head of research and consultancy at Chesterton Suntec International.
TODAY ONLINE : Will proposed supply lead to more proposals?
Will proposed supply lead to more proposals?
by Dr Megan Walters
05:55 AM Sep 10, 2010
For any young Singaporean looking to get married and start a family, the new measures to help first-time buyers, together with those to maintain a stable and sustainable property market, should come as welcome news.
The Government and the Housing and Development Board (HDB) have done a good job in keeping the cost of public housing broadly in line with general inflation.
Recent research by Jones Lang LaSalle shows after adjusting for consumer price inflation, HDB flat prices had been largely rising at just below or in line with the rate of inflation from 1998 to 2007.
But in the last couple of years, HDB prices have started to accelerate away.
The recent rise in HDB flat prices beyond the general inflation rate is down to the supply and demand characteristics of the housing market.
So the announcement from the HDB that it will be offering 16,000 new flats this year is good news - as it is close to the number of households formed by first-time marriage, thereby broadly balancing supply with demand.
Household formation from first-time marriages in Singapore is around 17,500 per year. Not all of these young couples will want to live with their parents. Many will want a place of their own. Ramping up new flat supply to 16,000 units a year is a good start. However, it is likely that the HDB will need to further increase supply and go ahead with its preparations for 22,000 flats next year.
This additional supply will help to bring housing prices back into a long-term sustainable rate of increase and prevent prices from escalating out of control. In recent years, the rate of HDB market supply has been well below what is required to meet the first-time marriage rate. There are two reasons for this.
First, the HDB has done a good job of refurbishing and redeveloping older estates to meet the rising wealth and aspirations of the population. But the downside is that this temporarily reduces net additional supply into the market, as withdrawing the older flats reduces the net supply of new flats any particular year.
Second, and more importantly, is the move from walk-in selection to build-to-order. In the switch to build-to-order, on an annual basis, fewer flats are delivered and available to live in, due to the longer time to build the flats. The decision to switch to build-to-order was a sensible move as it maximised Singapore's resources and stopped any oversupply of empty flats from occurring.
The downside is that it may take another two years to get supply back up to a rate that meets the demand from first-time marriages. The new HDB plans to shorten build-to-order waiting times from 3 years to 2.5 years will help alleviate this problem.
While the recent move to increase supply will bring the HDB market roughly in line with demand from first-time marriages, what is more difficult to determine is the number of flats required to meet the shortfall that has built up over the last few years.
So the recent moves by the Government and the statement by the HDB that it can ramp up supply to 22,000 units, if required, is welcome news for young couples currently living with their parents.
Furthermore, helping more newly-weds own a home of their own might have the welcome side effect of boosting the nation's falling birth rates.
The writer is head of research for Asia-Pacific capital markets, Jones Lang LaSalle.
by Dr Megan Walters
05:55 AM Sep 10, 2010
For any young Singaporean looking to get married and start a family, the new measures to help first-time buyers, together with those to maintain a stable and sustainable property market, should come as welcome news.
The Government and the Housing and Development Board (HDB) have done a good job in keeping the cost of public housing broadly in line with general inflation.
Recent research by Jones Lang LaSalle shows after adjusting for consumer price inflation, HDB flat prices had been largely rising at just below or in line with the rate of inflation from 1998 to 2007.
But in the last couple of years, HDB prices have started to accelerate away.
The recent rise in HDB flat prices beyond the general inflation rate is down to the supply and demand characteristics of the housing market.
So the announcement from the HDB that it will be offering 16,000 new flats this year is good news - as it is close to the number of households formed by first-time marriage, thereby broadly balancing supply with demand.
Household formation from first-time marriages in Singapore is around 17,500 per year. Not all of these young couples will want to live with their parents. Many will want a place of their own. Ramping up new flat supply to 16,000 units a year is a good start. However, it is likely that the HDB will need to further increase supply and go ahead with its preparations for 22,000 flats next year.
This additional supply will help to bring housing prices back into a long-term sustainable rate of increase and prevent prices from escalating out of control. In recent years, the rate of HDB market supply has been well below what is required to meet the first-time marriage rate. There are two reasons for this.
First, the HDB has done a good job of refurbishing and redeveloping older estates to meet the rising wealth and aspirations of the population. But the downside is that this temporarily reduces net additional supply into the market, as withdrawing the older flats reduces the net supply of new flats any particular year.
Second, and more importantly, is the move from walk-in selection to build-to-order. In the switch to build-to-order, on an annual basis, fewer flats are delivered and available to live in, due to the longer time to build the flats. The decision to switch to build-to-order was a sensible move as it maximised Singapore's resources and stopped any oversupply of empty flats from occurring.
The downside is that it may take another two years to get supply back up to a rate that meets the demand from first-time marriages. The new HDB plans to shorten build-to-order waiting times from 3 years to 2.5 years will help alleviate this problem.
While the recent move to increase supply will bring the HDB market roughly in line with demand from first-time marriages, what is more difficult to determine is the number of flats required to meet the shortfall that has built up over the last few years.
So the recent moves by the Government and the statement by the HDB that it can ramp up supply to 22,000 units, if required, is welcome news for young couples currently living with their parents.
Furthermore, helping more newly-weds own a home of their own might have the welcome side effect of boosting the nation's falling birth rates.
The writer is head of research for Asia-Pacific capital markets, Jones Lang LaSalle.
TODAY ONLINE : Condo launch draws the crowds
Condo launch draws the crowds
by Joanne Chan
05:55 AM Sep 11, 2010
SINGAPORE - Almost two weeks after the Government unveiled its latest round of property cooling measures, demand was high for the newest condominium project to hit the market.
On Friday, the afternoon rain did not deter the interest of home-seekers who flocked to NV Residences in Pasir Ris, the latest condo to be launched.
Huttons, the marketing agent for NV Residences, said the cooling measures have weeded out the speculators but there was still a "healthy demand" from those looking for a unit for owner-occupation or mid- to long-term investment.
One buyer, a 48-year-old IT trainer, bought a 2-bedroom unit for rental investment. He said the recent changes, which includes a higher cash outlay, meant he had to lower his expectations and buy a smaller unit.
Huttons Asia senior associate director Daniel Lim noted a greater interest from permanent residents in the project - and he attributed this partly to the anti-specutive measures.
Said Mr Lim: "In order for them to buy an HDB resale flat now, they would have to give up their properties back home ... So perhaps due to this, PRs are more keen to buy private property now."
At 5pm on Friday, the condo's developer, City Developments Limited, said 40 units have been sold since Wednesday's launch. This brings the total number of units sold to 200, out of the 250 units released so far.
Suntec Chesterton International head of research and consultancy Colin Tan observed: "For some investors and buyers who are on the margins, (the cooling measures) would make them think twice or even go for smaller flats. But there are still lots of other people who are interested, so they probably more than make up for those who fall by the wayside."
Mr Tan said the response to NV Residences would probably give other developers the confidence to go ahead with their launches. And prices are likely to maintain at current levels or even rise further, fuelled by continued demand, he added.
by Joanne Chan
05:55 AM Sep 11, 2010
SINGAPORE - Almost two weeks after the Government unveiled its latest round of property cooling measures, demand was high for the newest condominium project to hit the market.
On Friday, the afternoon rain did not deter the interest of home-seekers who flocked to NV Residences in Pasir Ris, the latest condo to be launched.
Huttons, the marketing agent for NV Residences, said the cooling measures have weeded out the speculators but there was still a "healthy demand" from those looking for a unit for owner-occupation or mid- to long-term investment.
One buyer, a 48-year-old IT trainer, bought a 2-bedroom unit for rental investment. He said the recent changes, which includes a higher cash outlay, meant he had to lower his expectations and buy a smaller unit.
Huttons Asia senior associate director Daniel Lim noted a greater interest from permanent residents in the project - and he attributed this partly to the anti-specutive measures.
Said Mr Lim: "In order for them to buy an HDB resale flat now, they would have to give up their properties back home ... So perhaps due to this, PRs are more keen to buy private property now."
At 5pm on Friday, the condo's developer, City Developments Limited, said 40 units have been sold since Wednesday's launch. This brings the total number of units sold to 200, out of the 250 units released so far.
Suntec Chesterton International head of research and consultancy Colin Tan observed: "For some investors and buyers who are on the margins, (the cooling measures) would make them think twice or even go for smaller flats. But there are still lots of other people who are interested, so they probably more than make up for those who fall by the wayside."
Mr Tan said the response to NV Residences would probably give other developers the confidence to go ahead with their launches. And prices are likely to maintain at current levels or even rise further, fuelled by continued demand, he added.
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