05 Feb 2011,
District 19 leaps into favour
Area in north-east is second-most popular among home buyers, up from 7th spot in 2009
By Esther Teo
THE evergreen estates of Katong, Marine Parade and Siglap in District 15 continued to top the charts of home buyers last year, although new areas gained popularity as well.
There were 4,053 non-landed transactions made in District 15 - about 12 per cent of the 34,767 caveats in total - entrenching its position as the most favoured district among Singapore home buyers.
District 19 followed with 2,911 transactions, a jump from seventh place in 2009.
Third place went to District 9 - the prime areas of Orchard, Cairnhill and Leonie Hill - with 2,478 caveats lodged, according to an analysis by Dennis Wee Group.
The main change in the pecking order last year centred on new areas such as District 19, which covers Hougang, Serangoon and other suburban areas.
Experts said the rankings show that estates in the north-east, such as Punggol and Sengkang, are beginning to gain popularity, in line with the Government's plans to spruce up these new towns.
Mr Colin Tan, research and consultancy director at Chesterton Suntec International, said the rise in popularity of District 19 could be attributed to the increased number of residential launches there, as the Government released more land for sale in the north-east.
'People tend to buy where they are familiar with, and with the HDB's movement into Punggol and Sengkang, the population there has increased...Some of these buyers might be HDB upgraders,' he added.
Projects in District 19 such as The Scala, The Minton and Kovan Grandeur, which were launched last year, were all well received.
PropNex chief executive Mohamed Ismail said newer developments, such as the Australian International School, have also livened up the area.
He expects increased demand and higher prices in the district as it continues to get spruced up in line with the Government's rejuvenation plans.
He also flagged the Jurong Lake District as the area with the highest potential for capital appreciation - even greater than District 19 - after it was earmarked by the Government as the biggest commercial hub outside the city centre.
But District 15 remains a perennial favourite. It straddles the mid-tier to high-end market, falls between the city fringe and suburban regions, and brings a cosmopolitan yet local flavour, experts said. It also offers the largest supply of private homes.
Dennis Wee Group director Chris Koh said the many condominium projects in the district offer more affordable prices compared with those in prime districts 9, 10 and 11. Most Indian and Chinese nationals have chosen to settle in the east, he added.
Chesterton's Mr Tan said the area tends to attract middle-income buyers and is 'easy to assimilate' into.
Private homes in districts 9 and 10 also remained popular due to the continued interest of investors in centrally located homes, said experts.
Cushman & Wakefield's senior manager of Asia-Pacific research, Mr Ong Kah Seng, said the many collective sales in prime districts in 2007 mean that new projects have been going onstream at attractive prices.
'Homes in the area could also have partially benefited from the successful remaking of Orchard Road...with the completion of new major malls,' he added.
For landed homes, districts 19, 15 and 16, which cover Bedok and Upper East Coast Road, were the three most popular districts last year, as in 2009.
Experts said landed homes in areas like Serangoon Gardens in District 19 are cheaper compared with those in prime districts, possibly attracting more buyers.
esthert@sph.com.sg
Friday, February 11, 2011
ST : LTA assures residents about noise
04 Feb 2011,
PLANNED NORTH-SOUTH EXPRESSWAY
LTA assures residents about noise
MP says it will look into various ways to cut noise from expressway
By Goh Chin Lian
RESIDENTS from three condominiums next to the planned North-South Expressway (NSE) have been assured by the authorities that the noise will conform to environmental standards for traffic.
To cut the noise, the Land Transport Authority (LTA) will consider putting in screens to deflect traffic noise away from homes and into a 'semi-tunnel' stretch of the expressway, among other measures.
Ang Mo Kio GRC MP Lee Bee Wah, whose ward includes Bullion Park, Castle Green and Nuovo condominiums, gave this update to The Straits Times after a dialogue last week involving about 80 residents and representatives from the LTA and the Singapore Land Authority.
Construction work is expected to start in two years. The project, costing $7 billion to $8 billion, will link northern Singapore to the city and is expected to be ready by 2020.
It will have the longest viaduct as well as surface road, 'open' or semi-tunnels and tunnels. It is expected to cut travelling time from Woodlands to the city by 30 per cent at peak hours and ease congestion on the Central Expressway. Its 15.9km northern section from Admiralty Road West to Toa Payoh Rise was announced on Jan 19.
After the Jan 26 dialogue, Ms Lee announced via Facebook that the LTA had given the assurance that the noise level would not exceed 67 decibels when the expressway is open.
An LTA spokesman confirmed that the NSE would have to comply with the National Environment Agency's standards for road traffic noise, capped at 67 decibels.
Ms Lee said the LTA would also plant a row of trees along the 'open' tunnel section to soften the view of the highway, and consider using porous asphalt on the road to reduce traffic noise.
The LTA said it will do a detailed study and implement suitable measures to meet the NEA noise standard.
'LTA is committed to doing all we can to minimise the impact of NSE on residents,' it said.
Along with other government agencies, it has been working with advisers and grassroots leaders to hold dialogues with residents, businesses, property owners and community leaders to take questions and clarify doubts on the NSE.
'These dialogues will continue as part of LTA's regular engagement to provide information to our stakeholders on our road and rail infrastructure projects,' it added.
On her part, Ms Lee said she had sent every household in the three affected condominiums an LTA information sheet on the NSE in a question and answer format.
She has also formed a working committee of representatives from the three condominiums to engage the LTA during the design and construction of the NSE.
Over at Chong Pang ward, where an 8.8km viaduct will pass several Housing Board blocks, the MP, Home Affairs and Law Minister K. Shanmugam, said he has met some residents and was looking into the issues raised.
Residents have also contacted the LTA themselves asking for more information about the work near their homes.
Those living at Nuovo, along Ang Mo Kio Avenue 6, have been signing a petition since Monday for the 'open' tunnel section next to the executive condominium to be made a covered tunnel instead.
About half the owners of the 297-unit development have signed the petition, which will be given to the authorities, said management committee chairman Dennis Toh, 40.
Resident Cheong Choon Ghee, 40, an engineer, said people living there were concerned that screens would have only limited effect in reducing noise.
He said many had young children and aged parents and were also concerned about the air quality after the expressway opens.
According to the LTA information sheet distributed by Ms Lee, making the whole of NSE south of the Seletar Expressway a tunnel would require six large ventilation buildings. These are needed to suck in fresh air and blow out foul air from the tunnel.
These would have to be built close to the tunnel at intervals, and each would need about 15,000 sq m of land and be taller than surrounding buildings to meet minimum emission height requirements, it said.�Given competing land uses, the LTA could identify only five suitable sites.
It said: 'As a result, LTA had to design the sections of the NSE between the SLE and Ang Mo Kio Avenue 9, and between Sin Ming Avenue and north of Pemimpin Place, as semi-tunnels for natural ventilation.'
Nuovo's Mr Toh reckoned the residents' petition would entail stretching the full tunnel northwards by about another 800m.
He said: 'The question is whether this will warrant another ventilation building. If not, then it is feasible to stretch the full tunnel without too much additional cost or acquisition of land.'
chinlian@sph.com.sg
PLANNED NORTH-SOUTH EXPRESSWAY
LTA assures residents about noise
MP says it will look into various ways to cut noise from expressway
By Goh Chin Lian
RESIDENTS from three condominiums next to the planned North-South Expressway (NSE) have been assured by the authorities that the noise will conform to environmental standards for traffic.
To cut the noise, the Land Transport Authority (LTA) will consider putting in screens to deflect traffic noise away from homes and into a 'semi-tunnel' stretch of the expressway, among other measures.
Ang Mo Kio GRC MP Lee Bee Wah, whose ward includes Bullion Park, Castle Green and Nuovo condominiums, gave this update to The Straits Times after a dialogue last week involving about 80 residents and representatives from the LTA and the Singapore Land Authority.
Construction work is expected to start in two years. The project, costing $7 billion to $8 billion, will link northern Singapore to the city and is expected to be ready by 2020.
It will have the longest viaduct as well as surface road, 'open' or semi-tunnels and tunnels. It is expected to cut travelling time from Woodlands to the city by 30 per cent at peak hours and ease congestion on the Central Expressway. Its 15.9km northern section from Admiralty Road West to Toa Payoh Rise was announced on Jan 19.
After the Jan 26 dialogue, Ms Lee announced via Facebook that the LTA had given the assurance that the noise level would not exceed 67 decibels when the expressway is open.
An LTA spokesman confirmed that the NSE would have to comply with the National Environment Agency's standards for road traffic noise, capped at 67 decibels.
Ms Lee said the LTA would also plant a row of trees along the 'open' tunnel section to soften the view of the highway, and consider using porous asphalt on the road to reduce traffic noise.
The LTA said it will do a detailed study and implement suitable measures to meet the NEA noise standard.
'LTA is committed to doing all we can to minimise the impact of NSE on residents,' it said.
Along with other government agencies, it has been working with advisers and grassroots leaders to hold dialogues with residents, businesses, property owners and community leaders to take questions and clarify doubts on the NSE.
'These dialogues will continue as part of LTA's regular engagement to provide information to our stakeholders on our road and rail infrastructure projects,' it added.
On her part, Ms Lee said she had sent every household in the three affected condominiums an LTA information sheet on the NSE in a question and answer format.
She has also formed a working committee of representatives from the three condominiums to engage the LTA during the design and construction of the NSE.
Over at Chong Pang ward, where an 8.8km viaduct will pass several Housing Board blocks, the MP, Home Affairs and Law Minister K. Shanmugam, said he has met some residents and was looking into the issues raised.
Residents have also contacted the LTA themselves asking for more information about the work near their homes.
Those living at Nuovo, along Ang Mo Kio Avenue 6, have been signing a petition since Monday for the 'open' tunnel section next to the executive condominium to be made a covered tunnel instead.
About half the owners of the 297-unit development have signed the petition, which will be given to the authorities, said management committee chairman Dennis Toh, 40.
Resident Cheong Choon Ghee, 40, an engineer, said people living there were concerned that screens would have only limited effect in reducing noise.
He said many had young children and aged parents and were also concerned about the air quality after the expressway opens.
According to the LTA information sheet distributed by Ms Lee, making the whole of NSE south of the Seletar Expressway a tunnel would require six large ventilation buildings. These are needed to suck in fresh air and blow out foul air from the tunnel.
These would have to be built close to the tunnel at intervals, and each would need about 15,000 sq m of land and be taller than surrounding buildings to meet minimum emission height requirements, it said.�Given competing land uses, the LTA could identify only five suitable sites.
It said: 'As a result, LTA had to design the sections of the NSE between the SLE and Ang Mo Kio Avenue 9, and between Sin Ming Avenue and north of Pemimpin Place, as semi-tunnels for natural ventilation.'
Nuovo's Mr Toh reckoned the residents' petition would entail stretching the full tunnel northwards by about another 800m.
He said: 'The question is whether this will warrant another ventilation building. If not, then it is feasible to stretch the full tunnel without too much additional cost or acquisition of land.'
chinlian@sph.com.sg
ST : Capitol gains
04 Feb 2011,
Capitol gains
Pritzker Prize-winning architect Richard Meier is aiming to turn the Capitol project into a landmark building in Singapore
By tay suan chiang
One of Singapore's most exciting landmark transformations is in the hands of his company.
It involves developing the site of the much-loved Capitol Theatre building and its Stamford Road surrounds into an iconic arts and commerce destination worthy of its former glory.
Meet American Richard Meier, one of the world's best-known architects. His company, Richard Meier & Partners Architects, which he founded in 1963, was appointed project designers last year.
So just who is the man on whom Singaporeans are pinning their hopes to do justice to reviving the faded grand dame Capitol Theatre, plus Capitol Building and Stamford House?
Well, someone not without his quirks.
Mr Meier says he loves building houses but, ironically, his home of 40 years is not one that he built.
Home is a 5,000 sq ft duplex on New York's Upper East Side in a pre-war limestone building, where Mr Meier lives on his own.
Asked why he has not built his own home, he says: 'I've no time, I'm too busy. Someday I will build my own home and I look forward to that time.'
This from a man aged all of 76.
He spoke to Life! on the telephone from his New York office last month. The divorced father of two is the managing partner of his architectural company.
Fans of the old white neo-classical building that is Capitol Theatre will be pleased to know that Mr Meier is renowned for the use of white in his buildings.
'In architecture, I feel white best reflects the colours of nature around you, and allows you to appreciate the architecture in its context,' he says.
His love of white extends to all aspects of his life. 'My office is white, my kitchen is white, my shirts are white. It's my colour,' he adds.
On the other hand, he is also known for his Modernist style - using plain geometry, layered definition of spaces and the effects of light and shade to create clear, comprehensible spaces.
He reassures: 'We have proposed a timeless architecture to give the area the authority of a landmark without diminishing the quality and presence of the historic Capitol Theatre, Capitol Building and Stamford House.'
The primary goal in redeveloping the Capitol site is to create a strong sense of place by enhancing and transforming the existing site in a dramatic way, he adds. What is more, he foresees the Capitol project as the landmark building in Singapore when it is completed.
'We hope it becomes a landmark, a destination for art, culture and commerce,' he says. 'People can visit the theatre, they can enjoy the public spaces and they can live and stay in beautifully, well-appointed environments.'
Mr Meier landed the prestigious project after being appointed by Capitol Investment Holdings, the consortium that made the winning bid for the Capitol site for $250 million last year.
It consists of joint venture partners Kwee Liong Seen's Chesham Properties, Pua Seck Guan's Perennial Real Estate and Sukmawati Widjaja's Top Global, all property developers.
'Mr Kwee approached us to ask if this is a design competition in which we would like to participate. There is a lot of great architecture being built in Singapore and we wanted to be part of it,' says MrMeier.
The Capitol development is his second project in Singapore. His first was Camden Medical Centre in Orchard Boulevard which was completed in 1999.
Though the silver-haired architect has not been back to Singapore since completing the Camden building, he has seen Singapore's development since then through photographs.
'There is a very high quality of architecture built throughout the city, although there is not one building that stands superior to the others,' he points out.
While he has not seen the site of the Capitol project, Mr Michael Palladino, the firm's design partner, has. 'This is an opportunity for us to create a unique civic centre that will reflect the city's past through the historic structures and celebrate the future with the new and contemporary additions,' says Mr Palladino.
Under the project, Capitol Theatre, Capitol Building and Stamford House will be conserved and restored.
The theatre will be refurbished and transformed into Singapore's largest single-screen cinema with about 800 seats. It will be operated by Golden Village for most of the year.
The theatre will also alternate as a performance venue for dance and theatre groups.
Capitol Building and Stamford House will be restored into a new luxury hotel with about 200 rooms.
Capitol Centre will be torn down to make way for a 15-storey building that will have retail space, and 60 to 70 apartments.
There will also be a public plaza with a glass canopy that will provide sheltered outdoor space.
Construction of the $500-million development will start in the third quarter of this year and it is expected to be ready by 2014.
With just a few years to complete the project, MrMeier says one of the challenges he foresees is the deadline.
'The construction schedule is very ambitious,' he says. 'Our goal is to make this as fine a project as humanly possible.'
His longest project so far was the Getty Center art museum in Los Angeles, which opened in 1997 and is named after its benefactor, the late oil tycoon J. Paul Getty.
It is also Mr Meier's most famous building. 'The Getty is probably my most important building. It was 13 years of my life,' says Mr Meier, who was commissioned to design the US$1-billion building in 1984.
It was a complex project due to site challenges and other restrictions but Mr Meier speaks of it fondly: 'There are as many people visiting it today as there were when it first opened. People come up to me when I'm at the centre and they tell me how much they enjoy it. It is very gratifying.'
When asked for three words that best describe his buildings, he says: 'Beautiful, inspiring... functional. No, forget functional, memorable is the third. Any good building is functional. Architecture has to go beyond functional, but have meaning for the place and the people who use it.'
His favourite moment of a project is 'when it is finished, but that is also the saddest moment'.
'I enjoy working on the project so much that I want to keep working on it. But once it is done, it is no longer my building anymore,' he says.
As for which of his buildings is his favourite, he breaks into a chuckle and says: 'The next one is always my favourite.'
When it comes to building types, museums are a clear favourite of his. 'I love to build museums. I love to create public spaces where people can come together and appreciate art or just appreciate the environment around them,' he says.
Museums he has designed include the High Museum of Art in Atlanta, the Barcelona Museum of Contemporary Art and the Frankfurt Museum for the Decorative Arts.
Mr Meier says he rarely turns down jobs but there are some buildings that he 'wouldn't be interested in doing'.
A prison is one such building as 'it is a place without life, not a humanistic kind of place to build'.
The other is a hospital which he says is very special and specific. 'Its main role is in getting a patient well. Architecture is not important in a hospital. It is not a place I want to get involved in.'
In 1984, he was awarded the Pritzker Prize for Architecture, considered the field's highest honour. At 49, he was then the youngest recipient. 'It was great to get it but I didn't think about being the youngest,' he says. 'I thought it was gratifying to receive it but it was nothing that changed my life.'
He has wanted to be an architect since he was 14. 'I feel you need that passion and drive to be an architect. It takes total dedication,' he says.
He adds that his love for making things such as model airplanes and boats during his childhood created an interest in this profession. 'I could never get the airplanes to fly, and my boats sometimes sank,' he says with a laugh.
The man has humour. When asked what is the best thing about being Richard Meier, his immediate response is: 'I can tell you what's worst. Growing old,' before bursting into a chuckle.
His two children have not followed in his footsteps. His 33-year-old son Joseph is a sculptor, while daughter Ana, 30, designs furniture.
'It would be nice if they had become architects but it is up to them,' he says.
While some see architects such as Briton Norman Foster and American Daniel Libeskind as the design stars of today, Mr Meier does not think of himself as one. In Singapore, Mr Foster designed the Supreme Court building, while Mr Libeskind designed the Reflections at Keppel Bay condominium.
Mr Meier says there are stars in every field, be it in architecture, medicine, law or film.
'There are certain people who do well and people respond to that. Some of us are better than others. I am happy for the opportunity to build good architecture, but I don't respond to the notion of 'starchitects'.'
Despite his own stellar success, there are no airs about him.
When complimented, he replies with a polite 'thank you'.
Was there a moment in his career when he knew he made it as an architect? He answers: 'I'm not sure I have yet made it.
'There's no point at which you made it, but you keep working and do the best you can.'
taysc@sph.com.sg
--------------------------------------------------------------------------------
PHOTOS: AMY ETRA, CAPITOL INVESTMENT HOLDINGS
Capitol gains
Pritzker Prize-winning architect Richard Meier is aiming to turn the Capitol project into a landmark building in Singapore
By tay suan chiang
One of Singapore's most exciting landmark transformations is in the hands of his company.
It involves developing the site of the much-loved Capitol Theatre building and its Stamford Road surrounds into an iconic arts and commerce destination worthy of its former glory.
Meet American Richard Meier, one of the world's best-known architects. His company, Richard Meier & Partners Architects, which he founded in 1963, was appointed project designers last year.
So just who is the man on whom Singaporeans are pinning their hopes to do justice to reviving the faded grand dame Capitol Theatre, plus Capitol Building and Stamford House?
Well, someone not without his quirks.
Mr Meier says he loves building houses but, ironically, his home of 40 years is not one that he built.
Home is a 5,000 sq ft duplex on New York's Upper East Side in a pre-war limestone building, where Mr Meier lives on his own.
Asked why he has not built his own home, he says: 'I've no time, I'm too busy. Someday I will build my own home and I look forward to that time.'
This from a man aged all of 76.
He spoke to Life! on the telephone from his New York office last month. The divorced father of two is the managing partner of his architectural company.
Fans of the old white neo-classical building that is Capitol Theatre will be pleased to know that Mr Meier is renowned for the use of white in his buildings.
'In architecture, I feel white best reflects the colours of nature around you, and allows you to appreciate the architecture in its context,' he says.
His love of white extends to all aspects of his life. 'My office is white, my kitchen is white, my shirts are white. It's my colour,' he adds.
On the other hand, he is also known for his Modernist style - using plain geometry, layered definition of spaces and the effects of light and shade to create clear, comprehensible spaces.
He reassures: 'We have proposed a timeless architecture to give the area the authority of a landmark without diminishing the quality and presence of the historic Capitol Theatre, Capitol Building and Stamford House.'
The primary goal in redeveloping the Capitol site is to create a strong sense of place by enhancing and transforming the existing site in a dramatic way, he adds. What is more, he foresees the Capitol project as the landmark building in Singapore when it is completed.
'We hope it becomes a landmark, a destination for art, culture and commerce,' he says. 'People can visit the theatre, they can enjoy the public spaces and they can live and stay in beautifully, well-appointed environments.'
Mr Meier landed the prestigious project after being appointed by Capitol Investment Holdings, the consortium that made the winning bid for the Capitol site for $250 million last year.
It consists of joint venture partners Kwee Liong Seen's Chesham Properties, Pua Seck Guan's Perennial Real Estate and Sukmawati Widjaja's Top Global, all property developers.
'Mr Kwee approached us to ask if this is a design competition in which we would like to participate. There is a lot of great architecture being built in Singapore and we wanted to be part of it,' says MrMeier.
The Capitol development is his second project in Singapore. His first was Camden Medical Centre in Orchard Boulevard which was completed in 1999.
Though the silver-haired architect has not been back to Singapore since completing the Camden building, he has seen Singapore's development since then through photographs.
'There is a very high quality of architecture built throughout the city, although there is not one building that stands superior to the others,' he points out.
While he has not seen the site of the Capitol project, Mr Michael Palladino, the firm's design partner, has. 'This is an opportunity for us to create a unique civic centre that will reflect the city's past through the historic structures and celebrate the future with the new and contemporary additions,' says Mr Palladino.
Under the project, Capitol Theatre, Capitol Building and Stamford House will be conserved and restored.
The theatre will be refurbished and transformed into Singapore's largest single-screen cinema with about 800 seats. It will be operated by Golden Village for most of the year.
The theatre will also alternate as a performance venue for dance and theatre groups.
Capitol Building and Stamford House will be restored into a new luxury hotel with about 200 rooms.
Capitol Centre will be torn down to make way for a 15-storey building that will have retail space, and 60 to 70 apartments.
There will also be a public plaza with a glass canopy that will provide sheltered outdoor space.
Construction of the $500-million development will start in the third quarter of this year and it is expected to be ready by 2014.
With just a few years to complete the project, MrMeier says one of the challenges he foresees is the deadline.
'The construction schedule is very ambitious,' he says. 'Our goal is to make this as fine a project as humanly possible.'
His longest project so far was the Getty Center art museum in Los Angeles, which opened in 1997 and is named after its benefactor, the late oil tycoon J. Paul Getty.
It is also Mr Meier's most famous building. 'The Getty is probably my most important building. It was 13 years of my life,' says Mr Meier, who was commissioned to design the US$1-billion building in 1984.
It was a complex project due to site challenges and other restrictions but Mr Meier speaks of it fondly: 'There are as many people visiting it today as there were when it first opened. People come up to me when I'm at the centre and they tell me how much they enjoy it. It is very gratifying.'
When asked for three words that best describe his buildings, he says: 'Beautiful, inspiring... functional. No, forget functional, memorable is the third. Any good building is functional. Architecture has to go beyond functional, but have meaning for the place and the people who use it.'
His favourite moment of a project is 'when it is finished, but that is also the saddest moment'.
'I enjoy working on the project so much that I want to keep working on it. But once it is done, it is no longer my building anymore,' he says.
As for which of his buildings is his favourite, he breaks into a chuckle and says: 'The next one is always my favourite.'
When it comes to building types, museums are a clear favourite of his. 'I love to build museums. I love to create public spaces where people can come together and appreciate art or just appreciate the environment around them,' he says.
Museums he has designed include the High Museum of Art in Atlanta, the Barcelona Museum of Contemporary Art and the Frankfurt Museum for the Decorative Arts.
Mr Meier says he rarely turns down jobs but there are some buildings that he 'wouldn't be interested in doing'.
A prison is one such building as 'it is a place without life, not a humanistic kind of place to build'.
The other is a hospital which he says is very special and specific. 'Its main role is in getting a patient well. Architecture is not important in a hospital. It is not a place I want to get involved in.'
In 1984, he was awarded the Pritzker Prize for Architecture, considered the field's highest honour. At 49, he was then the youngest recipient. 'It was great to get it but I didn't think about being the youngest,' he says. 'I thought it was gratifying to receive it but it was nothing that changed my life.'
He has wanted to be an architect since he was 14. 'I feel you need that passion and drive to be an architect. It takes total dedication,' he says.
He adds that his love for making things such as model airplanes and boats during his childhood created an interest in this profession. 'I could never get the airplanes to fly, and my boats sometimes sank,' he says with a laugh.
The man has humour. When asked what is the best thing about being Richard Meier, his immediate response is: 'I can tell you what's worst. Growing old,' before bursting into a chuckle.
His two children have not followed in his footsteps. His 33-year-old son Joseph is a sculptor, while daughter Ana, 30, designs furniture.
'It would be nice if they had become architects but it is up to them,' he says.
While some see architects such as Briton Norman Foster and American Daniel Libeskind as the design stars of today, Mr Meier does not think of himself as one. In Singapore, Mr Foster designed the Supreme Court building, while Mr Libeskind designed the Reflections at Keppel Bay condominium.
Mr Meier says there are stars in every field, be it in architecture, medicine, law or film.
'There are certain people who do well and people respond to that. Some of us are better than others. I am happy for the opportunity to build good architecture, but I don't respond to the notion of 'starchitects'.'
Despite his own stellar success, there are no airs about him.
When complimented, he replies with a polite 'thank you'.
Was there a moment in his career when he knew he made it as an architect? He answers: 'I'm not sure I have yet made it.
'There's no point at which you made it, but you keep working and do the best you can.'
taysc@sph.com.sg
--------------------------------------------------------------------------------
PHOTOS: AMY ETRA, CAPITOL INVESTMENT HOLDINGS
ST : New head for Redas
01 Feb 2011,
New head for Redas
CapitaLand Residential chief Wong Heang Fine takes over from Simon Cheong
By Cheryl Lim
CAPITALAND Residential chief executive Wong Heang Fine is the new president of the Real Estate Developers' Association of Singapore (Redas).
The 52-year-old took over from SC Global Developments chairman and chief executive Simon Cheong, 53, yesterday.
Mr Wong is in charge of developing CapitaLand's business in the Gulf Cooperation Council region, which comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
Before joining CapitaLand, he was president and chief executive of Sembcorp Engineers and Constructors, and chief executive of Cathay Organisation Holdings.
He has also held several senior appointments at the Singapore Technologies Industrial Corporation and the Economic Development Board.
Mr Wong has a Master of Science in engineering production and management from Birmingham University, and a Bachelor of Science in mechanical engineering from Leeds University.
Mr Cheong led Redas for the maximum two consecutive two-year terms. He will now serve on the new management committee.
The new committee includes Frasers Centrepoint chief executive Lim Ee Seng, who will be first vice-president, and City Developments group general manager Chia Ngiang Hong, who will be second vice-president.
Members of the Redas management committee were elected at an annual general meeting last week, but the make-up of the executive committee was finalised at a meeting only yesterday afternoon.
The committees comprise members from key property developers of Singapore.
The association represents all bodies concerning the planning, organisation, promotion, development, financing and administration of businesses in real estate and public utilities.
cherlim@sph.com.sg
Mr Wong has held senior appointments at several companies.
New head for Redas
CapitaLand Residential chief Wong Heang Fine takes over from Simon Cheong
By Cheryl Lim
CAPITALAND Residential chief executive Wong Heang Fine is the new president of the Real Estate Developers' Association of Singapore (Redas).
The 52-year-old took over from SC Global Developments chairman and chief executive Simon Cheong, 53, yesterday.
Mr Wong is in charge of developing CapitaLand's business in the Gulf Cooperation Council region, which comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
Before joining CapitaLand, he was president and chief executive of Sembcorp Engineers and Constructors, and chief executive of Cathay Organisation Holdings.
He has also held several senior appointments at the Singapore Technologies Industrial Corporation and the Economic Development Board.
Mr Wong has a Master of Science in engineering production and management from Birmingham University, and a Bachelor of Science in mechanical engineering from Leeds University.
Mr Cheong led Redas for the maximum two consecutive two-year terms. He will now serve on the new management committee.
The new committee includes Frasers Centrepoint chief executive Lim Ee Seng, who will be first vice-president, and City Developments group general manager Chia Ngiang Hong, who will be second vice-president.
Members of the Redas management committee were elected at an annual general meeting last week, but the make-up of the executive committee was finalised at a meeting only yesterday afternoon.
The committees comprise members from key property developers of Singapore.
The association represents all bodies concerning the planning, organisation, promotion, development, financing and administration of businesses in real estate and public utilities.
cherlim@sph.com.sg
Mr Wong has held senior appointments at several companies.
ST : Apartments at Capitol site to be priced lower
01 Feb 2011,
Apartments at Capitol site to be priced lower
Luxury units at iconic site to go for at least $2,500 psf
By Esther Teo
NEW high-end apartments to be built on the Capitol site have been priced lower than originally planned due to the recent round of property cooling measures, one of its developers revealed yesterday.
Top Global, part of the consortium undertaking the $500 million makeover of the landmark site, said the units are expected to go for between $2,500 and $3,000 per sq ft (psf).
But the prices may be raised if the market holds up, said Top Global's chief executive Hano Maeloa.
He also disclosed that the initial target price was in the $3,000 to $3,500 psf range until the Jan 13 property cooling measures prompted a rethink.
The 60 to 70 luxury homes are part of a 15-storey development with shops and eateries, to be built on the site of Capitol Centre, which will be demolished.
The building will rise above the site's conservation heritage buildings: Stamford House, Capitol Building and Capitol Theatre.
A consortium comprising Top Global and Mr Kwee Liong Seen's Chesham Properties and led by Mr Pua Seck Guan's Perennial Real Estate is redeveloping the site. It revealed more details at a ceremony to sign the building agreement yesterday.
The homes, ranging in size from 1,200 sq ft to more than 2,000 sq ft, are expected to be launched for sale in the second half of this year. Mr Maeloa said they will be targeted mainly at owner-occupiers and not speculators, so the measures are unlikely to affect sales greatly.
The consortium also said that at least $30 million will be spent to conserve the Capitol Theatre, Singapore's first cinema.
It is expected to be converted into a single-screen cinema with about 800 seats. About half the season will be allocated to screening blockbuster films, with the rest to works by arts groups.
Six dance and theatre companies have been identified and plans are being finalised to present a primarily Singaporean and Asian repertoire.
The retail component of the project - which will take up almost half of the site's total gross floor area (GFA) - will include at least eight retail and 30 food and beverage flagship outlets.
At least 40 per cent of it will also be brands that have not been introduced to the local market before. A boutique hotel with about 200 rooms will sit atop the ground-level shop fronts of Stamford House and Capitol Building.
Mr Pua said the site has a historical background that will draw tourists.
He added that the consortium will see 'comfortable break-even costs' for the retail and residential segments due to the relatively low price at which the land was purchased. The winning bid of $250 million for the site tendered in October translates to just $461 psf of GFA.
Construction is set to begin in the third quarter with completion in 2014.
esthert@sph.com.sg
--------------------------------------------------------------------------------
Developer rejects criticism of design
PERENNIAL Real Estate chief executive Pua Seck Guan has rejected criticism that the Capitol site's architectural design is a bit lacklustre.
When impressions of it were unveiled in October, some industry players commented that the design had been more 'okay' than 'wow'.
Mr Pua said yesterday that the winning design was sensitive to the civic and cultural district, and offered a concept that gelled with the Government's vision for the area.
The developers' consortium had initially submitted two proposals, with the rejected one having more of a 'wow' factor, he said. 'That approach could be 'too wow' to the extent that it may not complement the surroundings.'
Mr Michael Palladino, design partner of Richard Meier & Partners - the design architects of the project - added that not every building needs a 'wow' factor. 'This site has important iconic architecture already. Sometimes it's better to stand back and look at what else is around the site and how you can contribute,' he said, adding that the design will evolve as plans are finalised.
ESTHER TEO
Apartments at Capitol site to be priced lower
Luxury units at iconic site to go for at least $2,500 psf
By Esther Teo
NEW high-end apartments to be built on the Capitol site have been priced lower than originally planned due to the recent round of property cooling measures, one of its developers revealed yesterday.
Top Global, part of the consortium undertaking the $500 million makeover of the landmark site, said the units are expected to go for between $2,500 and $3,000 per sq ft (psf).
But the prices may be raised if the market holds up, said Top Global's chief executive Hano Maeloa.
He also disclosed that the initial target price was in the $3,000 to $3,500 psf range until the Jan 13 property cooling measures prompted a rethink.
The 60 to 70 luxury homes are part of a 15-storey development with shops and eateries, to be built on the site of Capitol Centre, which will be demolished.
The building will rise above the site's conservation heritage buildings: Stamford House, Capitol Building and Capitol Theatre.
A consortium comprising Top Global and Mr Kwee Liong Seen's Chesham Properties and led by Mr Pua Seck Guan's Perennial Real Estate is redeveloping the site. It revealed more details at a ceremony to sign the building agreement yesterday.
The homes, ranging in size from 1,200 sq ft to more than 2,000 sq ft, are expected to be launched for sale in the second half of this year. Mr Maeloa said they will be targeted mainly at owner-occupiers and not speculators, so the measures are unlikely to affect sales greatly.
The consortium also said that at least $30 million will be spent to conserve the Capitol Theatre, Singapore's first cinema.
It is expected to be converted into a single-screen cinema with about 800 seats. About half the season will be allocated to screening blockbuster films, with the rest to works by arts groups.
Six dance and theatre companies have been identified and plans are being finalised to present a primarily Singaporean and Asian repertoire.
The retail component of the project - which will take up almost half of the site's total gross floor area (GFA) - will include at least eight retail and 30 food and beverage flagship outlets.
At least 40 per cent of it will also be brands that have not been introduced to the local market before. A boutique hotel with about 200 rooms will sit atop the ground-level shop fronts of Stamford House and Capitol Building.
Mr Pua said the site has a historical background that will draw tourists.
He added that the consortium will see 'comfortable break-even costs' for the retail and residential segments due to the relatively low price at which the land was purchased. The winning bid of $250 million for the site tendered in October translates to just $461 psf of GFA.
Construction is set to begin in the third quarter with completion in 2014.
esthert@sph.com.sg
--------------------------------------------------------------------------------
Developer rejects criticism of design
PERENNIAL Real Estate chief executive Pua Seck Guan has rejected criticism that the Capitol site's architectural design is a bit lacklustre.
When impressions of it were unveiled in October, some industry players commented that the design had been more 'okay' than 'wow'.
Mr Pua said yesterday that the winning design was sensitive to the civic and cultural district, and offered a concept that gelled with the Government's vision for the area.
The developers' consortium had initially submitted two proposals, with the rejected one having more of a 'wow' factor, he said. 'That approach could be 'too wow' to the extent that it may not complement the surroundings.'
Mr Michael Palladino, design partner of Richard Meier & Partners - the design architects of the project - added that not every building needs a 'wow' factor. 'This site has important iconic architecture already. Sometimes it's better to stand back and look at what else is around the site and how you can contribute,' he said, adding that the design will evolve as plans are finalised.
ESTHER TEO
ST : 88 units sold at Bedok preview
01 Feb 2011,
88 units sold at Bedok preview
By Esther Teo
THE preview of Waterfront Isle in Bedok Reservoir Road has found buyers for 88 units, despite talk that last month's cooling measures might dampen enthusiasm.
Prices at the preview, which started last Friday with 132 units up for grabs, have averaged $920 per sq ft (psf).
Waterfront Isle is being jointly developed by Far East Organization and Frasers Centrepoint, and consists of 561 units. It will be officially launched on Saturday.
About 80 per cent of the buyers are Singaporeans and permanent residents, with about half of them living in the east, in areas like Bedok and Tampines, said Far East.
Prices will start at $575,000 for a one-bedroom unit of 592 sq ft, while two-bedders from 915 sq ft will start at $820,000 at the official launch. The three-bedroom apartments of 1,163 sq ft will carry price tags starting from $996,000.
Four-bedroom apartments and penthouses will not be for sale at the launch.
Far East's chief operating officer of property sales Chia Boon Kuah said the good network of MRT and expressways, coupled with government plans to revamp regional centres, have created new value in precincts like Bedok Town Centre.
Experts said the project's close proximity to the upcoming Bedok Reservoir MRT station was also a plus.
Dennis Wee Group director Chris Koh said most buyers were probably genuine first-timers who might not be affected by the Jan 13 cooling measures.
'First-time buyers might have a longer-term perspective. They don't intend to flip, and so by the time the project is completed in about three or four years, some of the measures might have already been lifted,' he added.
The first three projects in the Waterfront collection in Bedok Reservoir Road have seen successful sales. Waterfront Waves is fully sold, Waterfront Key is more than 85 per cent sold, and Waterfront Gold is more than 75 per cent taken up.
An artist's impression of Waterfront Isle in Bedok Reservoir Road. It will be officially launched on Saturday. The project consists of 561 units and prices will start at $575,000 for a one-bedroom unit. -- PHOTO: FAR EAST ORGANIZATION
88 units sold at Bedok preview
By Esther Teo
THE preview of Waterfront Isle in Bedok Reservoir Road has found buyers for 88 units, despite talk that last month's cooling measures might dampen enthusiasm.
Prices at the preview, which started last Friday with 132 units up for grabs, have averaged $920 per sq ft (psf).
Waterfront Isle is being jointly developed by Far East Organization and Frasers Centrepoint, and consists of 561 units. It will be officially launched on Saturday.
About 80 per cent of the buyers are Singaporeans and permanent residents, with about half of them living in the east, in areas like Bedok and Tampines, said Far East.
Prices will start at $575,000 for a one-bedroom unit of 592 sq ft, while two-bedders from 915 sq ft will start at $820,000 at the official launch. The three-bedroom apartments of 1,163 sq ft will carry price tags starting from $996,000.
Four-bedroom apartments and penthouses will not be for sale at the launch.
Far East's chief operating officer of property sales Chia Boon Kuah said the good network of MRT and expressways, coupled with government plans to revamp regional centres, have created new value in precincts like Bedok Town Centre.
Experts said the project's close proximity to the upcoming Bedok Reservoir MRT station was also a plus.
Dennis Wee Group director Chris Koh said most buyers were probably genuine first-timers who might not be affected by the Jan 13 cooling measures.
'First-time buyers might have a longer-term perspective. They don't intend to flip, and so by the time the project is completed in about three or four years, some of the measures might have already been lifted,' he added.
The first three projects in the Waterfront collection in Bedok Reservoir Road have seen successful sales. Waterfront Waves is fully sold, Waterfront Key is more than 85 per cent sold, and Waterfront Gold is more than 75 per cent taken up.
An artist's impression of Waterfront Isle in Bedok Reservoir Road. It will be officially launched on Saturday. The project consists of 561 units and prices will start at $575,000 for a one-bedroom unit. -- PHOTO: FAR EAST ORGANIZATION
ST Forum : Agent's application was late and incomplete
01 Feb 2011,
Agent's application was late and incomplete
I REFER to Mr Yak Kiat Song's letter ('Slow-coach regulator'; Jan 20) about his company's licence application.
The Council for Estate Agencies (CEA) had earlier informed estate agents to submit their licence applications early by Nov 30 last year to avoid any delay in obtaining their licences. Applications received after the deadline may not be registered on time.
The CEA received Mr Yak's estate agent licence application on Dec 3. Moreover, it was incomplete, as he did not include an important document in his application. We promptly informed Mr Yak of this, and he later submitted the required documents to the CEA on Dec 14.
With all documents in place, the CEA has processed his application. We have informed him that his company has been granted a three-year licence.
Yeap Soon Teck
Deputy Director (Licensing)
Council for Estate Agencies
Agent's application was late and incomplete
I REFER to Mr Yak Kiat Song's letter ('Slow-coach regulator'; Jan 20) about his company's licence application.
The Council for Estate Agencies (CEA) had earlier informed estate agents to submit their licence applications early by Nov 30 last year to avoid any delay in obtaining their licences. Applications received after the deadline may not be registered on time.
The CEA received Mr Yak's estate agent licence application on Dec 3. Moreover, it was incomplete, as he did not include an important document in his application. We promptly informed Mr Yak of this, and he later submitted the required documents to the CEA on Dec 14.
With all documents in place, the CEA has processed his application. We have informed him that his company has been granted a three-year licence.
Yeap Soon Teck
Deputy Director (Licensing)
Council for Estate Agencies
ST : Mortgages steal show as bank lending grows
01 Feb 2011,
Mortgages steal show as bank lending grows
Housing loans rose to $112.4b in December from $111b in November
By Gabriel Chen
MORTGAGES are still powering the growth in bank lending although analysts reckon that blistering housing sales will taper off soon once the cooling measures bite.
While a slowdown is expected, the story now is of huge loans growth, in both the commercial and residential sectors.
Total loans by banks - foreign and local - grew to $322.7 billion in December, from $281.3 billion in the same period a year ago, according to the Monetary Authority of Singapore (MAS) yesterday.
Business loans were up 11.7 per cent over the same period in 2009, helped by companies in the manufacturing, building and construction and general commerce space hitting a higher gear.
Housing-related loans rose to an estimated $112.4 billion in December from $111 billion in November.
The jump in mortgages was even more significant on a year-on-year basis, up 23 per cent over December 2009.
This is not surprising given that private home prices climbed 17.6 per cent last year, with the sale of a record 16,292 new homes.
Hot on the heels of the August property cooling measures, the Government recently announced new rules that raised the seller's stamp duty on properties to as much as 16 per cent of the sale price if the home is offloaded within a year.
The amount banks can lend on a second property has also been lowered to 60 per cent of the home's value.
DMG analyst Leng Seng Choon expects housing loans to slow as resale transaction volumes soften.
He said the new residential property loans will take time to 'filter through the system', as the Temporary Occupation Permit dates could be around three years later and the drawdown for these loans would continue over the next few quarters.
'However, we expect the private resale market to see some slowdown in transaction volumes going ahead, due to the government measures. This could lead to loans growth slowing from 2011 onwards,' he said.
Bankers, speaking on condition of anonymity, said that some customers had even been forgoing their option to buy in some newer developments.
Deutsche Bank analyst Andrew Hill said in a report last month that 'although the latest action to cool the residential property market shouldn't come as a great surprise, it will likely dampen sentiment towards the banks near-term'.
He said that in the month following the August measures, banks under-performed the Straits Times Index by 5per cent. UOB shares were the most affected, with a fall of 8 per cent, while DBS' and OCBC's fell by 3 per cent.
Phillip Securities analyst Magdalene Choong estimated that housing loans comprised 29 per cent of UOB's loan book. This compared with 25.3 per cent for DBS and 25.4 per cent for OCBC.
gabrielc@sph.com.sg
Mortgages steal show as bank lending grows
Housing loans rose to $112.4b in December from $111b in November
By Gabriel Chen
MORTGAGES are still powering the growth in bank lending although analysts reckon that blistering housing sales will taper off soon once the cooling measures bite.
While a slowdown is expected, the story now is of huge loans growth, in both the commercial and residential sectors.
Total loans by banks - foreign and local - grew to $322.7 billion in December, from $281.3 billion in the same period a year ago, according to the Monetary Authority of Singapore (MAS) yesterday.
Business loans were up 11.7 per cent over the same period in 2009, helped by companies in the manufacturing, building and construction and general commerce space hitting a higher gear.
Housing-related loans rose to an estimated $112.4 billion in December from $111 billion in November.
The jump in mortgages was even more significant on a year-on-year basis, up 23 per cent over December 2009.
This is not surprising given that private home prices climbed 17.6 per cent last year, with the sale of a record 16,292 new homes.
Hot on the heels of the August property cooling measures, the Government recently announced new rules that raised the seller's stamp duty on properties to as much as 16 per cent of the sale price if the home is offloaded within a year.
The amount banks can lend on a second property has also been lowered to 60 per cent of the home's value.
DMG analyst Leng Seng Choon expects housing loans to slow as resale transaction volumes soften.
He said the new residential property loans will take time to 'filter through the system', as the Temporary Occupation Permit dates could be around three years later and the drawdown for these loans would continue over the next few quarters.
'However, we expect the private resale market to see some slowdown in transaction volumes going ahead, due to the government measures. This could lead to loans growth slowing from 2011 onwards,' he said.
Bankers, speaking on condition of anonymity, said that some customers had even been forgoing their option to buy in some newer developments.
Deutsche Bank analyst Andrew Hill said in a report last month that 'although the latest action to cool the residential property market shouldn't come as a great surprise, it will likely dampen sentiment towards the banks near-term'.
He said that in the month following the August measures, banks under-performed the Straits Times Index by 5per cent. UOB shares were the most affected, with a fall of 8 per cent, while DBS' and OCBC's fell by 3 per cent.
Phillip Securities analyst Magdalene Choong estimated that housing loans comprised 29 per cent of UOB's loan book. This compared with 25.3 per cent for DBS and 25.4 per cent for OCBC.
gabrielc@sph.com.sg
ST : Muted response to China's 'property tax bomb'
1 Feb 2011,
Muted response to China's 'property tax bomb'
By Grace Ng
BEIJING: Days after China's first property tax was announced, the so-called atomic bomb has yet to trigger any chaotic shake-up.
The tax - billed by the local media as Beijing's most powerful weapon in its war against a property bubble and runaway inflation - has had limited impact so far since it kicked in last Thursday.
At about 7.30pm, two of China's largest cities, Shanghai and Chongqing, announced that the top command had finally given them permission - after long months of anticipation - to fire it up.
They were the first to slap a tax on high-end properties, in a pilot scheme that was expected to quickly hit other major cities such as Beijing.
But there were no fireworks thereafter, partly because of the low tax rate - just up to 1.2 per cent of home values in Chongqing, compared with 4 per cent in Singapore.
And it was imposed on only a small group of buyers, unlike in most other countries where every homeowner pays annual tax.
Thus, the property market - a big driver of China's economic growth - is not expected to crash, as the tax trial is too limited.
While Shanghai home sales fell 40 per cent last Friday from the previous day, overall prices remained stable, according to the Shanghai Real Estate Trade Centre.
And only 21 per cent of 2,300 potential homebuyers in a Shanghai online survey said the tax had convinced them to give up plans to buy a home, compared with 62 per cent who said they were either observing the situation or delaying their purchase.
It makes a mockery of the local media's wild speculation, which hailed the tax as an 'atomic bomb' and 'emergency brake' for property sales.
Doomsayers like well-known Chinese economist Lang Xianping had even warned that 'imposing property taxes will cause the economy to crash'.
Ironically, the tax has caused prices to spike in other cities. In Beijing, for example, homebuyers are scrambling to grab flats before the tax bomb hits them.
The tax aims to deter speculation, stabilise housing prices, help shift wealth from the rich to the poor and provide a much-needed new source of income for local governments, which are overly reliant on land sales for revenues.
These advantages of having a real estate tax have been bandied about since 2003, when China first started to mull over its implementation.
By making owners pay an annual levy on their property, the tax seeks to discourage speculators, by making it more costly for them to hoard empty flats until their values rise several years later, explained Professor Xie Baisan of Fudan University.
'The tax would hopefully force multiple-home owners to rent or sell their empty units to cover the cost of the levy, thus allowing prices to fall,' he said.
A tax on luxury properties would also take income from the rich to build subsidised housing for the poor.
It may solve another root cause of the overheated property market: Local governments are believed to derive as much as 40 per cent of their income from land sales. This gives them a perverse incentive to jack bids up as high as possible at land auctions. Higher land costs in turn push up property prices.
Said Mr Lang: 'The local governments and property developers monopolise the market together and force ordinary folk to buy high-priced flats - this is (volcanic) lava that could burst into flames at any minute.'
But he warned that even if a property tax was imposed, the conspiratorial bodies could still resist building low-profit housing for the poor, while passing on the tax to desperate homebuyers. This would fuel asset inflation and an economic crash.
For years, interest groups, including officials and powerful property developers, had resisted the tax, even as house prices in major Chinese cities have reportedly soared by 250 per cent since 2008.
But now, as social tensions threaten to explode amid politically sensitive inflation and a red-hot property market, China has finally pulled the trigger.
The tax trial in Chongqing and Shanghai started two weeks before the annual post-Chinese New Year house-buying frenzy kicks off, and after housing prices rose for the 19th month in a row. This will be in addition to milder cooling measures by Beijing, like interest-rate hikes.
Analysts say the tax is a step in the right direction. Said Beijing Easy Homes real estate agency researcher Li Hong: 'It will take many years to perfect the property tax system. But now that the 'bomb' has gone off, the central government can start to address the root causes of the housing bubble.'
graceng@sph.com.sg
--------------------------------------------------------------------------------
Some reasons for limited impact
· Low tax rate, of up to 1.2 per cent of home values in Chongqing
· Tax imposed on small group of buyers
Muted response to China's 'property tax bomb'
By Grace Ng
BEIJING: Days after China's first property tax was announced, the so-called atomic bomb has yet to trigger any chaotic shake-up.
The tax - billed by the local media as Beijing's most powerful weapon in its war against a property bubble and runaway inflation - has had limited impact so far since it kicked in last Thursday.
At about 7.30pm, two of China's largest cities, Shanghai and Chongqing, announced that the top command had finally given them permission - after long months of anticipation - to fire it up.
They were the first to slap a tax on high-end properties, in a pilot scheme that was expected to quickly hit other major cities such as Beijing.
But there were no fireworks thereafter, partly because of the low tax rate - just up to 1.2 per cent of home values in Chongqing, compared with 4 per cent in Singapore.
And it was imposed on only a small group of buyers, unlike in most other countries where every homeowner pays annual tax.
Thus, the property market - a big driver of China's economic growth - is not expected to crash, as the tax trial is too limited.
While Shanghai home sales fell 40 per cent last Friday from the previous day, overall prices remained stable, according to the Shanghai Real Estate Trade Centre.
And only 21 per cent of 2,300 potential homebuyers in a Shanghai online survey said the tax had convinced them to give up plans to buy a home, compared with 62 per cent who said they were either observing the situation or delaying their purchase.
It makes a mockery of the local media's wild speculation, which hailed the tax as an 'atomic bomb' and 'emergency brake' for property sales.
Doomsayers like well-known Chinese economist Lang Xianping had even warned that 'imposing property taxes will cause the economy to crash'.
Ironically, the tax has caused prices to spike in other cities. In Beijing, for example, homebuyers are scrambling to grab flats before the tax bomb hits them.
The tax aims to deter speculation, stabilise housing prices, help shift wealth from the rich to the poor and provide a much-needed new source of income for local governments, which are overly reliant on land sales for revenues.
These advantages of having a real estate tax have been bandied about since 2003, when China first started to mull over its implementation.
By making owners pay an annual levy on their property, the tax seeks to discourage speculators, by making it more costly for them to hoard empty flats until their values rise several years later, explained Professor Xie Baisan of Fudan University.
'The tax would hopefully force multiple-home owners to rent or sell their empty units to cover the cost of the levy, thus allowing prices to fall,' he said.
A tax on luxury properties would also take income from the rich to build subsidised housing for the poor.
It may solve another root cause of the overheated property market: Local governments are believed to derive as much as 40 per cent of their income from land sales. This gives them a perverse incentive to jack bids up as high as possible at land auctions. Higher land costs in turn push up property prices.
Said Mr Lang: 'The local governments and property developers monopolise the market together and force ordinary folk to buy high-priced flats - this is (volcanic) lava that could burst into flames at any minute.'
But he warned that even if a property tax was imposed, the conspiratorial bodies could still resist building low-profit housing for the poor, while passing on the tax to desperate homebuyers. This would fuel asset inflation and an economic crash.
For years, interest groups, including officials and powerful property developers, had resisted the tax, even as house prices in major Chinese cities have reportedly soared by 250 per cent since 2008.
But now, as social tensions threaten to explode amid politically sensitive inflation and a red-hot property market, China has finally pulled the trigger.
The tax trial in Chongqing and Shanghai started two weeks before the annual post-Chinese New Year house-buying frenzy kicks off, and after housing prices rose for the 19th month in a row. This will be in addition to milder cooling measures by Beijing, like interest-rate hikes.
Analysts say the tax is a step in the right direction. Said Beijing Easy Homes real estate agency researcher Li Hong: 'It will take many years to perfect the property tax system. But now that the 'bomb' has gone off, the central government can start to address the root causes of the housing bubble.'
graceng@sph.com.sg
--------------------------------------------------------------------------------
Some reasons for limited impact
· Low tax rate, of up to 1.2 per cent of home values in Chongqing
· Tax imposed on small group of buyers
Thursday, February 10, 2011
ST : Rents for HDB flats on the rise
31 Jan 2011,
Rents for HDB flats on the rise
But number of subletting deals has fallen amid recent property cooling measures
By Daryl Chin
THE decision to buy a four-room public housing flat in Whampoa 10 years ago is now paying off for sales executive Jennifer Tan. The 35-year-old lived in it for three years and started renting it out in 2004, making $1,000 a month from it.
Today, her rental income is $2,300.
She and her husband, who live with her parents, said: 'The rental market is getting stronger, so I plan to hold on to the flat for as long as I can.'
The median rental for those who have rented out their flats has been rising steadily in the past year or so, except for a slight dip in the second quarter of 2009. A two-room flat that commanded $1,100 in 2009 will fetch $1,300 now; a five-room unit, which could be rented out at $1,800 back then, will earn $2,150 now.
But despite this, the number of subletting transactions among public housing units has fallen, latest figures from the Housing Board show.
At the end of last year, there were 5,868, a 22 per cent fall from 7,540 in the third quarter.
Analysts and industry players The Straits Times spoke to said rentals are likely to head north as the economy grows and more workers come here to take up jobs. And with high property prices now, people will choose to rent instead of buy.
However, these factors have come up against the recent cooling measures: The Government has announced it will ramp up the supply of new flats from 17,700 last year to 22,000 this year.
PropNex spokesman Adam Tan said: 'With an increased supply and a faster completion time for build-to-order flats, there is less of a push for home owners to rent a flat if they can wait it out.'
ERA key executive officer Eugene Lim said that in any case, rentals for HDB flats will not go past $3,000, because at that price, one can rent a private property.
Mr Colin Tan, research and consultancy director of Chesterton Suntec International, said: 'Demand could also be coming from home owners who have sold their homes and are renting HDB flats, while waiting for prices to fall in a market correction.'
Among those who rent their homes and are being hit by rising rentals, some are examining their options. Mr Melvin Seow, 32, who pays $2,000 a month to rent a four-room flat in Punggol, said: 'If rental prices are going to increase and I cannot get a flat soon, I may move back with my parents.'
darylc@sph.com.sg
Rents for HDB flats on the rise
But number of subletting deals has fallen amid recent property cooling measures
By Daryl Chin
THE decision to buy a four-room public housing flat in Whampoa 10 years ago is now paying off for sales executive Jennifer Tan. The 35-year-old lived in it for three years and started renting it out in 2004, making $1,000 a month from it.
Today, her rental income is $2,300.
She and her husband, who live with her parents, said: 'The rental market is getting stronger, so I plan to hold on to the flat for as long as I can.'
The median rental for those who have rented out their flats has been rising steadily in the past year or so, except for a slight dip in the second quarter of 2009. A two-room flat that commanded $1,100 in 2009 will fetch $1,300 now; a five-room unit, which could be rented out at $1,800 back then, will earn $2,150 now.
But despite this, the number of subletting transactions among public housing units has fallen, latest figures from the Housing Board show.
At the end of last year, there were 5,868, a 22 per cent fall from 7,540 in the third quarter.
Analysts and industry players The Straits Times spoke to said rentals are likely to head north as the economy grows and more workers come here to take up jobs. And with high property prices now, people will choose to rent instead of buy.
However, these factors have come up against the recent cooling measures: The Government has announced it will ramp up the supply of new flats from 17,700 last year to 22,000 this year.
PropNex spokesman Adam Tan said: 'With an increased supply and a faster completion time for build-to-order flats, there is less of a push for home owners to rent a flat if they can wait it out.'
ERA key executive officer Eugene Lim said that in any case, rentals for HDB flats will not go past $3,000, because at that price, one can rent a private property.
Mr Colin Tan, research and consultancy director of Chesterton Suntec International, said: 'Demand could also be coming from home owners who have sold their homes and are renting HDB flats, while waiting for prices to fall in a market correction.'
Among those who rent their homes and are being hit by rising rentals, some are examining their options. Mr Melvin Seow, 32, who pays $2,000 a month to rent a four-room flat in Punggol, said: 'If rental prices are going to increase and I cannot get a flat soon, I may move back with my parents.'
darylc@sph.com.sg
ST : 10-unit boutique development sold for $47m
31 Jan 2011,
10-unit boutique development sold for $47m
By Dennis Chan
A 10-UNIT boutique development at Robin Road has been sold to Sing Holdings for $47 million.
With each unit fetching on average $4.7 million in gross proceeds, the sale of Robin Star off Bukit Timah Road understandably had the unanimous agreement of all the owners.
As the owners chose to ink the collective sale agreement by private treaty, approval from the Strata Titles Board was not required.
'An en bloc sale with unanimous consent is not required to adhere to the en bloc law of marketing by tender. They could choose private treaty negotiations,' said Ms Yong Choon Fah, executive director of Credo Real Estate, which brokered the deal.
This price tag works out to about $1,393 per sq ft (psf) on potential gross floor area, after factoring in development charge, she said.
This is comparable to the price of $1,388 psf per plot ratio (ppr) for Serene House, which was sold last month.
A development charge is payable when a developer redevelops sites to a higher intensity or value use.
With the purchase of Robin Star, Sing Holdings was able to average down the cost by amalgamating the site with the adjoining Robin Court and 1 Robin Drive, which the mainboard-listed company purchased for $77.33 million in a tender exercise last September, said Credo.
The amalgamated freehold site will have a combined land area of 64,878 sq ft.
'With a plot ratio of 1.4 and including a 10 per cent balcony area allocation, the property can yield a gross floor area of about 99,913 sq ft,' said Sing Holdings.
The total purchase price of $124.33 million for the sites translates to about $1,297 psf ppr, inclusive of estimated development charges of about $5.28 million.
The site is about 250m to the upcoming Stevens MRT station, part of the Downtown Line, which is expected to be operational in 2015, said Ms Yong.
Sing Holdings chief executive Lee Sze Hao said the acquisitions fit neatly to its strategy of focusing on developing residential projects in prime areas.
'Properties in this location have a special appeal to both locals and foreigners. The three sites, when amalgamated, will be able to offer a good development size and flexibility to achieve a good layout and design,' he said.
Sing Holdings currently has two other development projects. One is BelleRive, a 15-storey apartment tower off Bukit Timah Road which is about 94 per cent sold and is expecting to obtain temporary occupation permit this quarter. The other is The Laurels, a 19-storey residential development along Cairnhill Road which is about 90 per cent sold.
10-unit boutique development sold for $47m
By Dennis Chan
A 10-UNIT boutique development at Robin Road has been sold to Sing Holdings for $47 million.
With each unit fetching on average $4.7 million in gross proceeds, the sale of Robin Star off Bukit Timah Road understandably had the unanimous agreement of all the owners.
As the owners chose to ink the collective sale agreement by private treaty, approval from the Strata Titles Board was not required.
'An en bloc sale with unanimous consent is not required to adhere to the en bloc law of marketing by tender. They could choose private treaty negotiations,' said Ms Yong Choon Fah, executive director of Credo Real Estate, which brokered the deal.
This price tag works out to about $1,393 per sq ft (psf) on potential gross floor area, after factoring in development charge, she said.
This is comparable to the price of $1,388 psf per plot ratio (ppr) for Serene House, which was sold last month.
A development charge is payable when a developer redevelops sites to a higher intensity or value use.
With the purchase of Robin Star, Sing Holdings was able to average down the cost by amalgamating the site with the adjoining Robin Court and 1 Robin Drive, which the mainboard-listed company purchased for $77.33 million in a tender exercise last September, said Credo.
The amalgamated freehold site will have a combined land area of 64,878 sq ft.
'With a plot ratio of 1.4 and including a 10 per cent balcony area allocation, the property can yield a gross floor area of about 99,913 sq ft,' said Sing Holdings.
The total purchase price of $124.33 million for the sites translates to about $1,297 psf ppr, inclusive of estimated development charges of about $5.28 million.
The site is about 250m to the upcoming Stevens MRT station, part of the Downtown Line, which is expected to be operational in 2015, said Ms Yong.
Sing Holdings chief executive Lee Sze Hao said the acquisitions fit neatly to its strategy of focusing on developing residential projects in prime areas.
'Properties in this location have a special appeal to both locals and foreigners. The three sites, when amalgamated, will be able to offer a good development size and flexibility to achieve a good layout and design,' he said.
Sing Holdings currently has two other development projects. One is BelleRive, a 15-storey apartment tower off Bukit Timah Road which is about 94 per cent sold and is expecting to obtain temporary occupation permit this quarter. The other is The Laurels, a 19-storey residential development along Cairnhill Road which is about 90 per cent sold.
ST : Housing remains a hot election issue, says Mah
31 Jan 2011,
Housing remains a hot election issue, says Mah
HOUSING will be a hot topic in the next general election even though property prices could come down, said National Development Minister Mah Bow Tan.
The opposition is likely to zero in on the issue, he said in the last of a three-part interview published yesterday in the Chinese daily Lianhe Wanbao.
The topic will surface during the next election, which must be held by February next year, because 'prices are high and young people are unhappy', he said.
'Prices could come down, but I think they (the opposition) will try to stir it up, which is fine,' said Mr Mah, who described his current portfolio as his most challenging one so far.
The opposition's argument will always have some traction among some people, he added, but most Singaporeans would understand that 'certain things can be done, certain things cannot be done'.
'You cannot expect that in a situation where the economy is growing at 14 per cent, that you know housing prices will not go up. But we try to make sure it doesn't get overheated,' he said.
Housing remains a hot election issue, says Mah
HOUSING will be a hot topic in the next general election even though property prices could come down, said National Development Minister Mah Bow Tan.
The opposition is likely to zero in on the issue, he said in the last of a three-part interview published yesterday in the Chinese daily Lianhe Wanbao.
The topic will surface during the next election, which must be held by February next year, because 'prices are high and young people are unhappy', he said.
'Prices could come down, but I think they (the opposition) will try to stir it up, which is fine,' said Mr Mah, who described his current portfolio as his most challenging one so far.
The opposition's argument will always have some traction among some people, he added, but most Singaporeans would understand that 'certain things can be done, certain things cannot be done'.
'You cannot expect that in a situation where the economy is growing at 14 per cent, that you know housing prices will not go up. But we try to make sure it doesn't get overheated,' he said.
ST : Upgrading to private home? Wait a bit, says Mah
30 Jan 2011,
Upgrading to private home? Wait a bit, says Mah
If you are a Housing Board flat owner looking to upgrade to a private property, wait a little longer before signing on the dotted line.
This was the advice from Minister for National Development Mah Bow Tan in an interview published in the Chinese daily Lianhe Wanbao yesterday.
'Housing prices are rather high now... if you wait for a while, you might find more affordable properties,' Mr Mah was quoted in the paper as saying.
Serious home buyers should be patient, said Mr Mah, as he expects interest rates and the supply of private properties to rise soon, and both these factors should help to curb the steady trend of rising prices.
'When that happens, you will be thankful that you didn't buy right now!' he added.
The property market hit new highs last year, fuelled by strong demand from cash-rich buyers, low interest rates and strong economic growth.
Private home prices moved up 17.6 per cent last year after rising just 1.6 per cent the year before. Non-landed property, which includes condominium units popular with Housing Board upgraders, rose 14 per cent.
Mr Mah said the Government is trying to dampen a 'flock' mentality that seems to have developed among property investors lured by the promise of making a quick profit.
He added that the recent market cooling measures - which include hefty sellers' stamp duties and lowered loan limits for second mortgages - should be seen in this context.
Rather than deterring home buyers from upgrading their houses, or reducing prices, they are meant to stabilise the market so that prices can increase at a more steady rate, he said.
'Reducing prices on purpose is not our aim, and it is of no use at all,' said Mr Mah. 'This may make some home buyers happy, but on the other hand, home sellers will be unhappy.'
For those who cannot wait and need to upgrade their homes right now, Mr Mah said he believed the new measures should not deter them as long as they have sufficient cash flow.
The minister also said that the Government is studying the effects of the latest round of measures closely, and warned that it could act again in three to four months' time.
He said property players will also need some time to digest the new measures and assess their impact before deciding what to do next.
'Although there are some who have reacted in knee-jerk fashion, most buyers and sellers are adopting a wait-and-see approach,' he added.
Amresh Gunasingham
Upgrading to private home? Wait a bit, says Mah
If you are a Housing Board flat owner looking to upgrade to a private property, wait a little longer before signing on the dotted line.
This was the advice from Minister for National Development Mah Bow Tan in an interview published in the Chinese daily Lianhe Wanbao yesterday.
'Housing prices are rather high now... if you wait for a while, you might find more affordable properties,' Mr Mah was quoted in the paper as saying.
Serious home buyers should be patient, said Mr Mah, as he expects interest rates and the supply of private properties to rise soon, and both these factors should help to curb the steady trend of rising prices.
'When that happens, you will be thankful that you didn't buy right now!' he added.
The property market hit new highs last year, fuelled by strong demand from cash-rich buyers, low interest rates and strong economic growth.
Private home prices moved up 17.6 per cent last year after rising just 1.6 per cent the year before. Non-landed property, which includes condominium units popular with Housing Board upgraders, rose 14 per cent.
Mr Mah said the Government is trying to dampen a 'flock' mentality that seems to have developed among property investors lured by the promise of making a quick profit.
He added that the recent market cooling measures - which include hefty sellers' stamp duties and lowered loan limits for second mortgages - should be seen in this context.
Rather than deterring home buyers from upgrading their houses, or reducing prices, they are meant to stabilise the market so that prices can increase at a more steady rate, he said.
'Reducing prices on purpose is not our aim, and it is of no use at all,' said Mr Mah. 'This may make some home buyers happy, but on the other hand, home sellers will be unhappy.'
For those who cannot wait and need to upgrade their homes right now, Mr Mah said he believed the new measures should not deter them as long as they have sufficient cash flow.
The minister also said that the Government is studying the effects of the latest round of measures closely, and warned that it could act again in three to four months' time.
He said property players will also need some time to digest the new measures and assess their impact before deciding what to do next.
'Although there are some who have reacted in knee-jerk fashion, most buyers and sellers are adopting a wait-and-see approach,' he added.
Amresh Gunasingham
ST : Fewer flat owners unable to pay up
29 Jan 2011,
Fewer flat owners unable to pay up
Figure has dropped by nearly 11,000 in two years
By K.C. Vijayan
NEARLY 11,000 fewer Housing Board flat owners are in mortgage arrears compared to two years ago, figures have revealed.
About 23,000 were behind with repayments at the end of last year, down from 33,700 in November 2008.
Six out of every 100 owners were in arrears as of last month, down from eight per 100 about two years earlier.
The Housing Board disclosed the figures when responding to the case of an 83-year-old woman who is having to sell her flat after she fell behind with her mortgage repayments.
Madam Elizabeth Hong, a retired nurse, bought the four-room resale flat in Marine Terrace jointly with her daughter Janet for $230,000 in September 1994.
The Housing Board gave her a housing loan of about $148,000 but she began to fall into arrears in July 1998.
In 2006, she turned up at the Housing Board Geylang Branch Office and informed its staff that her daughter had left the flat. Janet, 43, used to help pay the monthly $705 instalment from her CPF account.
It is understood that mother and daughter did not see eye to eye and the daughter has stayed away ever since.
As the arrears began to mount, the Housing Board served notice in January last year that it intended to re-acquire the flat.
Madam Hong, who had been assigned lawyer Pratap Kishan through the Legal Aid Bureau, sought a High Court order last month to have the flat sold and the proceeds divided equally between her and her daughter.
She needed a court order under the law because she could not locate her daughter, the flat's co-owner, and there was no way of knowing whether she would object to the sale.
However, Janet turned up late last year and notified through lawyer R. Shanmugam that she wished to have the flat sold.
Both their lawyers will go back to the High Court next month to get an order to sell based on mutually agreed terms.
The proceeds from the sale of the flat will help pay off the outstanding Housing Board mortgage loan and should leave Madam Hong enough to relocate to a new flat.
She told The Straits Times on Wednesday that she has not yet decided where to move to after the flat has been sold.
She has two grown-up sons who live with their families.
Looking sprightly and animated, the slim, medium-built white-haired woman said she had given her daughter a good education and was disappointed at what had happened.
'I am very miserable now. I will decide what to do after the flat is sold,' she said. 'I never thought this would happen.'
Madam Hong said her daughter left more than six years ago without telling her she was going, and had not returned since.
In court documents filed she said she had even hired a private investigator to track her down, but to no avail.
The Housing Board said on Wednesday that it had tried to help Madam Hong with various measures but she had not responded.
'We would like to highlight that Madam Hong had more than 10 years to work out her housing situation,' said a spokesman.
Owners are generally given ample time to resolve their loan instalment arrears, the spokesman added.
The Housing Board sends reminders, conducts house visits and works with the families to encourage them to take concrete steps to make the repayments.
Under the law, it can compulsorily acquire a flat if arrears remain unpaid for three months.
However, the spokesman made it clear that the Housing Board will do so only when all other efforts fail.
Even then it 'will assist in alternative accommodation if necessary. The majority of lessees will heed our advice in resolving their arrears situation before reaching the stage where compulsory acquisition is required'.
The spokesman said the Housing Board will help flat owners in financial difficulty, but they 'need to exercise personal responsibility to seek long-term solutions'.
vijayan@sph.com.sg
--------------------------------------------------------------------------------
SADDENED BY SALE
'I am very miserable now... I never thought this would happen.'
Madam Elizabeth Hong on selling her flat to repay her mortgage arrears
ENOUGH TIME GIVEN
'We would like to highlight that Madam Hong had more than 10 years to work out her housing situation.'
A Housing Board spokesman, saying she did not respond to offers of help
--------------------------------------------------------------------------------
Options for financially strapped owners
BUYING a home is a long-term commitment, so it is important to be prudent and keep within your means, said an HDB spokesman.
One common reason for flat owners falling into arrears is that they have lost their jobs.
'HDB will help flat owners in financial straits who are unable to cope with their home loans to transit to a long-term sustainable solution,' said the spokesman.
HDB has housing counsellors at all of its 20 branch offices who can help such flat owners find both short-term and long-term solutions.
Short-term measures:
· Owners can make smaller payments temporarily.
· Payments can be deferred for up to six months.
· Arrears can be paid in stages within a reasonable time.
Long-term measures:
· Getting other family members to help pay the loans, for example, by becoming joint flat owners.
· Giving owners another loan to buy a smaller flat.
· Offering owners interim rental housing at below market rates. Under the scheme, two families share a three-room flat to keep rents low.
· Public rental scheme for those with no other housing options.
Fewer flat owners unable to pay up
Figure has dropped by nearly 11,000 in two years
By K.C. Vijayan
NEARLY 11,000 fewer Housing Board flat owners are in mortgage arrears compared to two years ago, figures have revealed.
About 23,000 were behind with repayments at the end of last year, down from 33,700 in November 2008.
Six out of every 100 owners were in arrears as of last month, down from eight per 100 about two years earlier.
The Housing Board disclosed the figures when responding to the case of an 83-year-old woman who is having to sell her flat after she fell behind with her mortgage repayments.
Madam Elizabeth Hong, a retired nurse, bought the four-room resale flat in Marine Terrace jointly with her daughter Janet for $230,000 in September 1994.
The Housing Board gave her a housing loan of about $148,000 but she began to fall into arrears in July 1998.
In 2006, she turned up at the Housing Board Geylang Branch Office and informed its staff that her daughter had left the flat. Janet, 43, used to help pay the monthly $705 instalment from her CPF account.
It is understood that mother and daughter did not see eye to eye and the daughter has stayed away ever since.
As the arrears began to mount, the Housing Board served notice in January last year that it intended to re-acquire the flat.
Madam Hong, who had been assigned lawyer Pratap Kishan through the Legal Aid Bureau, sought a High Court order last month to have the flat sold and the proceeds divided equally between her and her daughter.
She needed a court order under the law because she could not locate her daughter, the flat's co-owner, and there was no way of knowing whether she would object to the sale.
However, Janet turned up late last year and notified through lawyer R. Shanmugam that she wished to have the flat sold.
Both their lawyers will go back to the High Court next month to get an order to sell based on mutually agreed terms.
The proceeds from the sale of the flat will help pay off the outstanding Housing Board mortgage loan and should leave Madam Hong enough to relocate to a new flat.
She told The Straits Times on Wednesday that she has not yet decided where to move to after the flat has been sold.
She has two grown-up sons who live with their families.
Looking sprightly and animated, the slim, medium-built white-haired woman said she had given her daughter a good education and was disappointed at what had happened.
'I am very miserable now. I will decide what to do after the flat is sold,' she said. 'I never thought this would happen.'
Madam Hong said her daughter left more than six years ago without telling her she was going, and had not returned since.
In court documents filed she said she had even hired a private investigator to track her down, but to no avail.
The Housing Board said on Wednesday that it had tried to help Madam Hong with various measures but she had not responded.
'We would like to highlight that Madam Hong had more than 10 years to work out her housing situation,' said a spokesman.
Owners are generally given ample time to resolve their loan instalment arrears, the spokesman added.
The Housing Board sends reminders, conducts house visits and works with the families to encourage them to take concrete steps to make the repayments.
Under the law, it can compulsorily acquire a flat if arrears remain unpaid for three months.
However, the spokesman made it clear that the Housing Board will do so only when all other efforts fail.
Even then it 'will assist in alternative accommodation if necessary. The majority of lessees will heed our advice in resolving their arrears situation before reaching the stage where compulsory acquisition is required'.
The spokesman said the Housing Board will help flat owners in financial difficulty, but they 'need to exercise personal responsibility to seek long-term solutions'.
vijayan@sph.com.sg
--------------------------------------------------------------------------------
SADDENED BY SALE
'I am very miserable now... I never thought this would happen.'
Madam Elizabeth Hong on selling her flat to repay her mortgage arrears
ENOUGH TIME GIVEN
'We would like to highlight that Madam Hong had more than 10 years to work out her housing situation.'
A Housing Board spokesman, saying she did not respond to offers of help
--------------------------------------------------------------------------------
Options for financially strapped owners
BUYING a home is a long-term commitment, so it is important to be prudent and keep within your means, said an HDB spokesman.
One common reason for flat owners falling into arrears is that they have lost their jobs.
'HDB will help flat owners in financial straits who are unable to cope with their home loans to transit to a long-term sustainable solution,' said the spokesman.
HDB has housing counsellors at all of its 20 branch offices who can help such flat owners find both short-term and long-term solutions.
Short-term measures:
· Owners can make smaller payments temporarily.
· Payments can be deferred for up to six months.
· Arrears can be paid in stages within a reasonable time.
Long-term measures:
· Getting other family members to help pay the loans, for example, by becoming joint flat owners.
· Giving owners another loan to buy a smaller flat.
· Offering owners interim rental housing at below market rates. Under the scheme, two families share a three-room flat to keep rents low.
· Public rental scheme for those with no other housing options.
ST : Analysts expect sober year for private property market
29 Jan 2011,
Analysts expect sober year for private property market
By Esther Teo
PRIVATE home prices may have moved up 17.6 per cent last year, eclipsing historical peaks and setting new highs across various segments in the process, but this year is expected to be far less exciting.
Analysts say price growth is expected to slow, and the volume of sales is set for a significant fall.
There was more evidence of this in new data released by the Urban Redevelopment Authority (URA) yesterday, which saw prices moderating across most segments as the property market continued to take a breather four months into the Government's Aug 30 property market cooling measures.
Fourth-quarter home prices gained 2.7 per cent, slightly down from the 2.9 per cent in the previous quarter and unchanged from flash estimates released earlier this month, the URA said.
However, certain segments - in particular, condominiums and detached homes - showed signs of defying gravity even after three rounds of cooling measures.
This may have contributed to the Government's decision to introduce another round of tougher-than-expected cooling measures two weeks ago, experts said.
Prices of detached homes continued their upward march with an 8.5 per cent jump in the fourth quarter - just eclipsing the already impressive 8.4 per cent gain in the quarter before. Detached home owners saw the value of their properties rise by a hefty 37.6 per cent last year alone - the most out of any segment.
Prices of landed homes in general, however, moderated to a 5.5 per cent rise, from 7.7 per cent in the third quarter.
This was owing to slower price gains in the semi-detached and terrace segments, with a 3.1 per cent and 3.7 per cent rise in prices respectively. This follows a buoyant 7.5 per cent and 7.2 per cent price growth in the quarter before.
An uptick was also noted in the non-landed home segment, which recorded a price rise of 1.8 per cent, up from a gain of 1.6 per cent in the quarter before.
URA data shows that price growth in this segment has been falling since the second quarter of last year.
Other indexes also suggested that non-landed home prices were creeping up again as buying interest returned to the market in the later months of last year, after buyers initially retreated when the Aug 30 measures were first introduced.
The National University of Singapore's Singapore Residential Price Index, which tracks only the prices of completed non-landed projects, posted a 0.9 per cent month-on-month rise last month - the first increase after two months.
Homes in non-central areas recorded an even larger gain of 2.2 per cent.
Ms Tay Huey Ying, Colliers International's director of research and advisory, noted that price gains of suburban homes also strengthened to 2.1 per cent, up from the initial estimate of 1.6 per cent.
'This indicates the continued uptrend in prices for transactions that have taken place in the last two weeks of the quarter, which probably is one of the triggers for the introduction of further cooling measures in January,' she added.
Robust sales were seen in suburban projects such as The Lakefront Residences in the Jurong Lake district, Waterview in Tampines Avenue 10 and The Tennery in Bukit Panjang in the fourth quarter.
Experts said, however, that despite impressive gains last year, this year will be a more sobering one for the market in the light of this month's measures, which caught many by surprise.
CBRE Research executive director Li Hiaw Ho said: 'Prices are likely to remain unchanged in view of this stand-off, but sales volume could fall in the short term. Selectively, new projects that are well-located and with good access will still see a good response.'
Analysts expect sober year for private property market
By Esther Teo
PRIVATE home prices may have moved up 17.6 per cent last year, eclipsing historical peaks and setting new highs across various segments in the process, but this year is expected to be far less exciting.
Analysts say price growth is expected to slow, and the volume of sales is set for a significant fall.
There was more evidence of this in new data released by the Urban Redevelopment Authority (URA) yesterday, which saw prices moderating across most segments as the property market continued to take a breather four months into the Government's Aug 30 property market cooling measures.
Fourth-quarter home prices gained 2.7 per cent, slightly down from the 2.9 per cent in the previous quarter and unchanged from flash estimates released earlier this month, the URA said.
However, certain segments - in particular, condominiums and detached homes - showed signs of defying gravity even after three rounds of cooling measures.
This may have contributed to the Government's decision to introduce another round of tougher-than-expected cooling measures two weeks ago, experts said.
Prices of detached homes continued their upward march with an 8.5 per cent jump in the fourth quarter - just eclipsing the already impressive 8.4 per cent gain in the quarter before. Detached home owners saw the value of their properties rise by a hefty 37.6 per cent last year alone - the most out of any segment.
Prices of landed homes in general, however, moderated to a 5.5 per cent rise, from 7.7 per cent in the third quarter.
This was owing to slower price gains in the semi-detached and terrace segments, with a 3.1 per cent and 3.7 per cent rise in prices respectively. This follows a buoyant 7.5 per cent and 7.2 per cent price growth in the quarter before.
An uptick was also noted in the non-landed home segment, which recorded a price rise of 1.8 per cent, up from a gain of 1.6 per cent in the quarter before.
URA data shows that price growth in this segment has been falling since the second quarter of last year.
Other indexes also suggested that non-landed home prices were creeping up again as buying interest returned to the market in the later months of last year, after buyers initially retreated when the Aug 30 measures were first introduced.
The National University of Singapore's Singapore Residential Price Index, which tracks only the prices of completed non-landed projects, posted a 0.9 per cent month-on-month rise last month - the first increase after two months.
Homes in non-central areas recorded an even larger gain of 2.2 per cent.
Ms Tay Huey Ying, Colliers International's director of research and advisory, noted that price gains of suburban homes also strengthened to 2.1 per cent, up from the initial estimate of 1.6 per cent.
'This indicates the continued uptrend in prices for transactions that have taken place in the last two weeks of the quarter, which probably is one of the triggers for the introduction of further cooling measures in January,' she added.
Robust sales were seen in suburban projects such as The Lakefront Residences in the Jurong Lake district, Waterview in Tampines Avenue 10 and The Tennery in Bukit Panjang in the fourth quarter.
Experts said, however, that despite impressive gains last year, this year will be a more sobering one for the market in the light of this month's measures, which caught many by surprise.
CBRE Research executive director Li Hiaw Ho said: 'Prices are likely to remain unchanged in view of this stand-off, but sales volume could fall in the short term. Selectively, new projects that are well-located and with good access will still see a good response.'
ST : HDB resale market shows signs of cooling
29 Jan 2011,
HDB resale market shows signs of cooling
Some median prices, transaction figures and COV prices dip
By Jessica Cheam
THE HDB resale market enjoyed a boom period last year but numbers out yesterday also show that the heat may finally be coming out of the market.
Some median prices have started to decline, while transaction numbers and cash-over-valuation payments are falling.
Analysts say the trend is likely to be due to the August cooling measures imposed to apply the brakes to a runaway market.
But while the sector is clearly slowing, yesterday's Housing Board data also confirms that 2010 was yet another bumper year for flat owners. Prices rose 2.5 per cent in the fourth quarter over the third to hit another record and bring the total growth for the year to 14.1 per cent.
This follows an 8.2 per cent increase in 2009 when the economy was still hurting from the financial crisis, a 14.5 per cent jump in 2008 and a 17.5 per cent increase in 2007.
It's small beer maybe compared with the 90s boom when prices rocketed 34.3 per cent in 1996 alone, but still a good run for owners.
However, analysts noted yesterday that price rises were 'gentler' in the last three months of 2010, which had the lowest quarterly growth since the second quarter of 2009. Other figures point to the same trend. The HDB's numbers confirmed that cash premium paid by buyers over a flat's valuation, known as cash-over-valuation (COV), fell islandwide in the quarter.
Overall median COV for the fourth quarter fell to $23,000 from $30,000 in the third, with 96 per cent of sales transacted above valuation.
The fall was more obvious in certain areas such as Central, Sembawang and Queenstown, which all recorded declines of about 35 per cent in median COV.
In Queenstown, for example, the median COV fell from $35,000 in the third quarter to $23,000 in the fourth.
The decline in COVs seems to have continued into this month, according to agency sales figures.
The median COV range has fallen further to about $16,500 for three-roomers and $25,000 for five-room flats, said PropNex spokesman Adam Tan.
ERA Asia Pacific key executive officer Eugene Lim said that based on his firm's sales this month, median COVs has fallen to about $21,000.
While COVs are falling, resale prices were still inching up across most towns.
Analysts said this was due to the time lag in the valuations, which are based on transactions in months before the cooling measures hit. Last August, the Government tightened financing and restricted ownership of resale flats in a bid to calm the buoyant market.
While most towns registered slight price increases in the quarter, Jurong East and Choa Chu Kang had declines.
The median resale price of an executive flat in Jurong East dropped from $631,500 in the third quarter to $585,900 in the fourth. A four-roomer in the Central area also dropped, from a median $471,000 to $456,500.
Declining transaction numbers also point to a slowing market. The number of flats sold fell from 8,205 in the third quarter to 6,454 in the fourth, a decline of about 21 per cent. Sales dropped 13 per cent to 32,257 for the full year.
Industry observers said yesterday that the 14.1 per cent price rise for 2010 reflected the economy's record growth of 14.7 per cent. But they also said that HDB resale prices would moderate further this year with marginal price increases as the heightened cooling measures took hold.
Earlier this month, the Government unleashed another round of measures. It reduced the amount a buyer can borrow for a second home to 60 per cent of the purchase price and sharply increased sellers' stamp duties to curb speculation.
'This will lead to less activity in the HDB upgrader segment, as they won't be able to stump up 40 per cent down payment,' said PropNex's Mr Tan.
Mr Colin Tan, a research and consultancy director at Chesterton Suntec International, said the 'problem of runaway HDB price rises looks contained' and expects the market to stabilise further.
Meanwhile, the HDB offered 17,700 new flats under its build-to-order (BTO) scheme last year and plans to offer another 22,000 this year if there is demand.
There will be a further 8,000 executive condominium units and design, build and sell scheme (DBSS) homes as well.
jcheam@sph.com.sg
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HDB resale market shows signs of cooling
Some median prices, transaction figures and COV prices dip
By Jessica Cheam
THE HDB resale market enjoyed a boom period last year but numbers out yesterday also show that the heat may finally be coming out of the market.
Some median prices have started to decline, while transaction numbers and cash-over-valuation payments are falling.
Analysts say the trend is likely to be due to the August cooling measures imposed to apply the brakes to a runaway market.
But while the sector is clearly slowing, yesterday's Housing Board data also confirms that 2010 was yet another bumper year for flat owners. Prices rose 2.5 per cent in the fourth quarter over the third to hit another record and bring the total growth for the year to 14.1 per cent.
This follows an 8.2 per cent increase in 2009 when the economy was still hurting from the financial crisis, a 14.5 per cent jump in 2008 and a 17.5 per cent increase in 2007.
It's small beer maybe compared with the 90s boom when prices rocketed 34.3 per cent in 1996 alone, but still a good run for owners.
However, analysts noted yesterday that price rises were 'gentler' in the last three months of 2010, which had the lowest quarterly growth since the second quarter of 2009. Other figures point to the same trend. The HDB's numbers confirmed that cash premium paid by buyers over a flat's valuation, known as cash-over-valuation (COV), fell islandwide in the quarter.
Overall median COV for the fourth quarter fell to $23,000 from $30,000 in the third, with 96 per cent of sales transacted above valuation.
The fall was more obvious in certain areas such as Central, Sembawang and Queenstown, which all recorded declines of about 35 per cent in median COV.
In Queenstown, for example, the median COV fell from $35,000 in the third quarter to $23,000 in the fourth.
The decline in COVs seems to have continued into this month, according to agency sales figures.
The median COV range has fallen further to about $16,500 for three-roomers and $25,000 for five-room flats, said PropNex spokesman Adam Tan.
ERA Asia Pacific key executive officer Eugene Lim said that based on his firm's sales this month, median COVs has fallen to about $21,000.
While COVs are falling, resale prices were still inching up across most towns.
Analysts said this was due to the time lag in the valuations, which are based on transactions in months before the cooling measures hit. Last August, the Government tightened financing and restricted ownership of resale flats in a bid to calm the buoyant market.
While most towns registered slight price increases in the quarter, Jurong East and Choa Chu Kang had declines.
The median resale price of an executive flat in Jurong East dropped from $631,500 in the third quarter to $585,900 in the fourth. A four-roomer in the Central area also dropped, from a median $471,000 to $456,500.
Declining transaction numbers also point to a slowing market. The number of flats sold fell from 8,205 in the third quarter to 6,454 in the fourth, a decline of about 21 per cent. Sales dropped 13 per cent to 32,257 for the full year.
Industry observers said yesterday that the 14.1 per cent price rise for 2010 reflected the economy's record growth of 14.7 per cent. But they also said that HDB resale prices would moderate further this year with marginal price increases as the heightened cooling measures took hold.
Earlier this month, the Government unleashed another round of measures. It reduced the amount a buyer can borrow for a second home to 60 per cent of the purchase price and sharply increased sellers' stamp duties to curb speculation.
'This will lead to less activity in the HDB upgrader segment, as they won't be able to stump up 40 per cent down payment,' said PropNex's Mr Tan.
Mr Colin Tan, a research and consultancy director at Chesterton Suntec International, said the 'problem of runaway HDB price rises looks contained' and expects the market to stabilise further.
Meanwhile, the HDB offered 17,700 new flats under its build-to-order (BTO) scheme last year and plans to offer another 22,000 this year if there is demand.
There will be a further 8,000 executive condominium units and design, build and sell scheme (DBSS) homes as well.
jcheam@sph.com.sg
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ST : 1st-time flat buyers may face stiffer rules
29 Jan 2011,
1st-time flat buyers may face stiffer rules
NATIONAL Development Minister Mah Bow Tan yesterday said the Government is considering coming up with tougher measures to deter first-time Housing Board flat buyers from repeatedly declining to select a flat.
In an interview with Lianhe Wanbao yesterday, he said changes might be made to the HDB's build-to-order scheme to penalise those who forgo the flat selection process despite being successful during balloting.
This will prevent those who do not need to buy a flat urgently from applying indiscriminately.
Under the current rules, applicants who reject two chances to select a flat will have their first-timer priorities removed for a period of one year.
This means if they apply for a flat in any HDB sales exercise within that one-year period, they will no longer enjoy priorities for first-timers. These priorities include being given two chances in the shortlisting of their applications, as compared to a second-time applicant, who gets only one chance.
When asked if the harsher penalties might include extending the one-year period, Mr Mah said the Government is still looking into the changes.
He added that the Government will also not speed up the implementation of the Selective En bloc Redevelopment Scheme just to satisfy demand from Singaporeans for flats.
The cost of redeveloping such flats is high and the Government's focus is on building new flats that Singaporeans can afford.
The programme will continue but the speed of redevelopment will depend on the cost-benefit situation and economic environment, Mr Mah said.
He also hinted that Singaporeans can expect to see some housing 'goodies' in this year's Budget.
1st-time flat buyers may face stiffer rules
NATIONAL Development Minister Mah Bow Tan yesterday said the Government is considering coming up with tougher measures to deter first-time Housing Board flat buyers from repeatedly declining to select a flat.
In an interview with Lianhe Wanbao yesterday, he said changes might be made to the HDB's build-to-order scheme to penalise those who forgo the flat selection process despite being successful during balloting.
This will prevent those who do not need to buy a flat urgently from applying indiscriminately.
Under the current rules, applicants who reject two chances to select a flat will have their first-timer priorities removed for a period of one year.
This means if they apply for a flat in any HDB sales exercise within that one-year period, they will no longer enjoy priorities for first-timers. These priorities include being given two chances in the shortlisting of their applications, as compared to a second-time applicant, who gets only one chance.
When asked if the harsher penalties might include extending the one-year period, Mr Mah said the Government is still looking into the changes.
He added that the Government will also not speed up the implementation of the Selective En bloc Redevelopment Scheme just to satisfy demand from Singaporeans for flats.
The cost of redeveloping such flats is high and the Government's focus is on building new flats that Singaporeans can afford.
The programme will continue but the speed of redevelopment will depend on the cost-benefit situation and economic environment, Mr Mah said.
He also hinted that Singaporeans can expect to see some housing 'goodies' in this year's Budget.
ST : Boost for Paya Lebar's hub status
28 Jan 2011,
Boost for Paya Lebar's hub status
By Cheryl Lim
THE transformation of part of Paya Lebar into a major city fringe commercial hub is a step closer after the first site in the area was launched for sale.
The land parcel at the junction of Paya Lebar Road and Eunos Road 8 is to boast mainly offices.
The new hub is called Paya Lebar Central. The Government aims to turn the area into a vibrant, pedestrian-friendly commercial hub including retail outlets and hotels, and attractive open spaces.
Overall, about 12 ha will be converted to commercial use, generating potential floor space of more than 5,381,955 sq ft.
The Urban Redevelopment Authority said the district will cater to businesses that do not need to operate within the city centre. It could become a sizeable fringe commercial centre.
The site now being offered is next to the Paya Lebar interchange station, which serves the Circle and East-West MRT lines.
The 159,866 sq ft commercial site sits in the heart of the district, and is just a 10-minute drive to the CBD. The site will be able to contain a maximum gross floor area (GFA) of 671,453 sq ft and can be built to a height of 64m above mean sea level.
At least 80 per cent of the GFA will need to be allocated to office use. The rest can also be used for other activities permitted under the commercial zoning. The tender will close on April 21.
Mr Ong Kah Seng, Cushman & Wakefield senior manager of Asia-Pacific research, anticipates good interest from developers, including those who traditionally stick to residential development.
He said they may 'wish to diversify their development and investment activities, as the office sector seems to be more stable in growth and requires less necessary government intervention to ensure supply-demand balance'.
The recent focus has been on prime offices, said Mr Ong. But the completion of other major suburban commercial sites, like Jurong Gateway, will see the emergence of a new tier of suburban offices in the next few years.
Boost for Paya Lebar's hub status
By Cheryl Lim
THE transformation of part of Paya Lebar into a major city fringe commercial hub is a step closer after the first site in the area was launched for sale.
The land parcel at the junction of Paya Lebar Road and Eunos Road 8 is to boast mainly offices.
The new hub is called Paya Lebar Central. The Government aims to turn the area into a vibrant, pedestrian-friendly commercial hub including retail outlets and hotels, and attractive open spaces.
Overall, about 12 ha will be converted to commercial use, generating potential floor space of more than 5,381,955 sq ft.
The Urban Redevelopment Authority said the district will cater to businesses that do not need to operate within the city centre. It could become a sizeable fringe commercial centre.
The site now being offered is next to the Paya Lebar interchange station, which serves the Circle and East-West MRT lines.
The 159,866 sq ft commercial site sits in the heart of the district, and is just a 10-minute drive to the CBD. The site will be able to contain a maximum gross floor area (GFA) of 671,453 sq ft and can be built to a height of 64m above mean sea level.
At least 80 per cent of the GFA will need to be allocated to office use. The rest can also be used for other activities permitted under the commercial zoning. The tender will close on April 21.
Mr Ong Kah Seng, Cushman & Wakefield senior manager of Asia-Pacific research, anticipates good interest from developers, including those who traditionally stick to residential development.
He said they may 'wish to diversify their development and investment activities, as the office sector seems to be more stable in growth and requires less necessary government intervention to ensure supply-demand balance'.
The recent focus has been on prime offices, said Mr Ong. But the completion of other major suburban commercial sites, like Jurong Gateway, will see the emergence of a new tier of suburban offices in the next few years.
ST : 2 collective sales done at lower prices
28 Jan 2011,
2 collective sales done at lower prices
By Esther Teo
TWO collective sales have been completed, although both were at prices lower than earlier indicated, perhaps showing that recent cooling measures have tempered demand a little.
Marine Point in Marine Parade Road has been acquired by CapitaLand at $101million. The owners wanted $110 million when the tender was launched in October.
If an estimated development charge of $12.8million is included, the price works out to $1,056 per sq ft (psf) per plot ratio (ppr), CapitaLand said.
It plans to redevelop the 51,185 sq ft freehold site into a 150-unit condominium of one-bedroom plus study and two-bedroom apartments.
This will bring CapitaLand's pipeline of homes here to more than 2,600 units.
Mr Wong Heang Fine, chief executive of CapitaLand Residential Singapore, said the firm plans to maximise the project's height to about 19 storeys and is confident that it will get strong interest from young families and professionals who have grown up in the area.
'This will give the majority of the apartments a good view of the surrounding skyline and the sea. We plan to have (it) ready for launch in the first half of 2012,' he added.
Bartley Terrace, near Bartley MRT station, was sold for $40million, which The Straits Times understands to be below its reserve price.
The tender was launched last year with an asking price of $48million.
Meadows Investment, a firm owned by Mr Neo Tiam Boon, executive director of local property and construction firm Tiong Aik Group, bought the site in a private treaty, said marketing agent Urban Front yesterday.
The price works out to about $760 psf ppr, inclusive of about $3million in development charges and a 10per cent balcony allocation.
The District 19 freehold site has a land area of about 40,482 sq ft with a plot ratio of 1.4.
The owners of the 32 units stand to reap $1.14million to $1.8million each, Urban Front said.
Marine Point (above) sold for $101million, despite $110million originally being sought for it. Bartley Terrace also sold below its original asking price of $48million, eventually going for $40million. -- PHOTOS: ERA ASIA PACIFIC, URBAN FRONT
2 collective sales done at lower prices
By Esther Teo
TWO collective sales have been completed, although both were at prices lower than earlier indicated, perhaps showing that recent cooling measures have tempered demand a little.
Marine Point in Marine Parade Road has been acquired by CapitaLand at $101million. The owners wanted $110 million when the tender was launched in October.
If an estimated development charge of $12.8million is included, the price works out to $1,056 per sq ft (psf) per plot ratio (ppr), CapitaLand said.
It plans to redevelop the 51,185 sq ft freehold site into a 150-unit condominium of one-bedroom plus study and two-bedroom apartments.
This will bring CapitaLand's pipeline of homes here to more than 2,600 units.
Mr Wong Heang Fine, chief executive of CapitaLand Residential Singapore, said the firm plans to maximise the project's height to about 19 storeys and is confident that it will get strong interest from young families and professionals who have grown up in the area.
'This will give the majority of the apartments a good view of the surrounding skyline and the sea. We plan to have (it) ready for launch in the first half of 2012,' he added.
Bartley Terrace, near Bartley MRT station, was sold for $40million, which The Straits Times understands to be below its reserve price.
The tender was launched last year with an asking price of $48million.
Meadows Investment, a firm owned by Mr Neo Tiam Boon, executive director of local property and construction firm Tiong Aik Group, bought the site in a private treaty, said marketing agent Urban Front yesterday.
The price works out to about $760 psf ppr, inclusive of about $3million in development charges and a 10per cent balcony allocation.
The District 19 freehold site has a land area of about 40,482 sq ft with a plot ratio of 1.4.
The owners of the 32 units stand to reap $1.14million to $1.8million each, Urban Front said.
Marine Point (above) sold for $101million, despite $110million originally being sought for it. Bartley Terrace also sold below its original asking price of $48million, eventually going for $40million. -- PHOTOS: ERA ASIA PACIFIC, URBAN FRONT
ST : Home sales: Volume to fall, not prices
28 Jan 2011,
Home sales: Volume to fall, not prices
But new housing could see oversupply in next few years, notes DTZ
By Esther Teo
HOME sales are expected to drop in the wake of the Government's recent cooling measures, although prices should hold up fairly well, according to a new report.
But DTZ Research pointed out that the substantial supply of new housing in the pipeline could outstrip demand in the next few years, leading to prices and rentals coming under pressure.
It also flagged the challenges posed by sluggish Western economies and the possibility of more cooling measures.
The property consultancy's report was focused partly on the possible effects of cooling measures introduced on Jan 13.
It tipped that sales volume would fall as short-term speculators would be weeded out of the market by the hefty seller's stamp duty of up to 16 per cent for homes sold within a year of purchase.
But not all investors will withdraw. Some may find the 4 per cent seller's stamp duty on homes sold in their fourth year of purchase to be surmountable.
They could shift their focus to buying unfinished units with completion dates three to four years ahead.
Prices this year are expected to be largely stable with a decline of not more than 5 per cent, said Ms Chua Chor Hoon, DTZ's research head for South-east Asia and one of the report's authors.
'(Prices are) underpinned by economic growth, low interest rates, strong holding power of developers, the appreciation of the Singapore dollar, and the inflow of foreign purchasers due to the property market clampdown in mainland China and Hong Kong,' she added.
Landed homes, small units and high-end apartments are expected to be less affected by the measures.
Said DTZ executive director (residential) Margaret Thean: 'Small units with their low price quantum will continue to attract investors with spare cash or singles wanting their own units.'
She also said the seller's stamp duty will have little impact on landed homes as most are purchased for owner-occupation, while high-end apartments will continue to attract foreign interest.
Other challenges come in the form of a potential oversupply.
A spike in completed units is expected in the next two to three years, with the Government putting out a record number of homes through public housing and land sales programmes.
'There is also uncertainty over the strength of recovery of the major Western economies. If they recover well, interest rates will move up and reduce the affordability of mortgage payments,' the report added.
'On the other hand, if they continue to languish, this will have an effect on the Singapore economy and optimism in the property market eventually.'
With the residential market facing numerous challenges, investors are likely to identify opportunities in other property sectors and alternative investment products, DTZ said.
esthert@sph.com.sg
Home sales: Volume to fall, not prices
But new housing could see oversupply in next few years, notes DTZ
By Esther Teo
HOME sales are expected to drop in the wake of the Government's recent cooling measures, although prices should hold up fairly well, according to a new report.
But DTZ Research pointed out that the substantial supply of new housing in the pipeline could outstrip demand in the next few years, leading to prices and rentals coming under pressure.
It also flagged the challenges posed by sluggish Western economies and the possibility of more cooling measures.
The property consultancy's report was focused partly on the possible effects of cooling measures introduced on Jan 13.
It tipped that sales volume would fall as short-term speculators would be weeded out of the market by the hefty seller's stamp duty of up to 16 per cent for homes sold within a year of purchase.
But not all investors will withdraw. Some may find the 4 per cent seller's stamp duty on homes sold in their fourth year of purchase to be surmountable.
They could shift their focus to buying unfinished units with completion dates three to four years ahead.
Prices this year are expected to be largely stable with a decline of not more than 5 per cent, said Ms Chua Chor Hoon, DTZ's research head for South-east Asia and one of the report's authors.
'(Prices are) underpinned by economic growth, low interest rates, strong holding power of developers, the appreciation of the Singapore dollar, and the inflow of foreign purchasers due to the property market clampdown in mainland China and Hong Kong,' she added.
Landed homes, small units and high-end apartments are expected to be less affected by the measures.
Said DTZ executive director (residential) Margaret Thean: 'Small units with their low price quantum will continue to attract investors with spare cash or singles wanting their own units.'
She also said the seller's stamp duty will have little impact on landed homes as most are purchased for owner-occupation, while high-end apartments will continue to attract foreign interest.
Other challenges come in the form of a potential oversupply.
A spike in completed units is expected in the next two to three years, with the Government putting out a record number of homes through public housing and land sales programmes.
'There is also uncertainty over the strength of recovery of the major Western economies. If they recover well, interest rates will move up and reduce the affordability of mortgage payments,' the report added.
'On the other hand, if they continue to languish, this will have an effect on the Singapore economy and optimism in the property market eventually.'
With the residential market facing numerous challenges, investors are likely to identify opportunities in other property sectors and alternative investment products, DTZ said.
esthert@sph.com.sg
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