Sep 6, 2010
Where's the planning?
'The measures to curb property price escalation, transport congestion and the influx of foreigners appear to be knee-jerk reactions.'
DR GOH PHUAY YEE: 'The measures to curb property price escalation, transport congestion and the influx of foreigners appear to be knee-jerk reactions rather than well-planned measures. The Government is in the best position to plan ahead with information from statistics on population numbers, availability of accommodation, number of commuters the system can take, number of vacancies in schools, and such. It should be able to regulate the inflow of foreigners without causing a sudden crunch on our infrastructure, jobs and social stability. All these problems arose over the years because of a lack of foresight and swift response.'
Wednesday, September 8, 2010
ST Forum : Why it isn't fair
Sep 6, 2010
PROPERTY AS INVESTMENT
Why it isn't fair
IN SATURDAY'S letter ('Property: Nothing wrong in having it both ways'), the writer asks: 'Why shouldn't Singaporeans be allowed to use property investment as a vehicle for growing wealth for future needs while living a modest life as an HDB dweller?'
While it is wise to invest for our future needs, the use of property as a vehicle for investment is not fair in land-scarce Singapore.
Humans have three basic needs: food, water and shelter. If many Singaporeans bought a second property here as investment, it would drive up the property prices, making it more expensive for those who don't own property to meet their minimum needs for shelter.
If many Singaporeans bought extra property to fund their 'future' needs, it would put the less well-to-do at risk of being unable to meet their 'current' needs. The Government is doing the right thing by taking measures to cool the red-hot property market and curb speculation.
It is a little self-centred on the part of some to insist on giving them free rein to speculate in properties. They should invest their money elsewhere, in instruments where others' basic needs are not compromised - like stocks and bonds.
Chan Yeow Chuan
PROPERTY AS INVESTMENT
Why it isn't fair
IN SATURDAY'S letter ('Property: Nothing wrong in having it both ways'), the writer asks: 'Why shouldn't Singaporeans be allowed to use property investment as a vehicle for growing wealth for future needs while living a modest life as an HDB dweller?'
While it is wise to invest for our future needs, the use of property as a vehicle for investment is not fair in land-scarce Singapore.
Humans have three basic needs: food, water and shelter. If many Singaporeans bought a second property here as investment, it would drive up the property prices, making it more expensive for those who don't own property to meet their minimum needs for shelter.
If many Singaporeans bought extra property to fund their 'future' needs, it would put the less well-to-do at risk of being unable to meet their 'current' needs. The Government is doing the right thing by taking measures to cool the red-hot property market and curb speculation.
It is a little self-centred on the part of some to insist on giving them free rein to speculate in properties. They should invest their money elsewhere, in instruments where others' basic needs are not compromised - like stocks and bonds.
Chan Yeow Chuan
ST Forum : Get this
Sep 6, 2010
Get this
'Many Singaporeans are yet to have their first HDB flats, let alone dream of having a second property as investment.' /p>
MR PHILIP SOH: 'I refer to Saturday's letter ('Property: Nothing wrong in having it both ways'). Many Singaporeans are yet to have their first HDB flats, let alone dream of owning a second property as investment. It cannot be our nation's priority to help some achieve future economic gains at the expense of young couples who are waiting for a flat of their own to grow a family.'
Right step
'If the measures work, property prices would come down, making those 'dream homes' more within our reach.'
MR STEFFEN TOH: 'The 30 per cent down payment rule for the purchase of a second property effectively ensures that buyers have sounder fundamentals before they make that commitment. With interest rates currently very low, the danger of Singaporeans over-stretching themselves is very real. If the measures work as they are intended to, property prices would stabilise and possibly even come down, making those 'dream homes' more within our reach.'
Get this
'Many Singaporeans are yet to have their first HDB flats, let alone dream of having a second property as investment.' /p>
MR PHILIP SOH: 'I refer to Saturday's letter ('Property: Nothing wrong in having it both ways'). Many Singaporeans are yet to have their first HDB flats, let alone dream of owning a second property as investment. It cannot be our nation's priority to help some achieve future economic gains at the expense of young couples who are waiting for a flat of their own to grow a family.'
Right step
'If the measures work, property prices would come down, making those 'dream homes' more within our reach.'
MR STEFFEN TOH: 'The 30 per cent down payment rule for the purchase of a second property effectively ensures that buyers have sounder fundamentals before they make that commitment. With interest rates currently very low, the danger of Singaporeans over-stretching themselves is very real. If the measures work as they are intended to, property prices would stabilise and possibly even come down, making those 'dream homes' more within our reach.'
ST : Low-cost housing still out of reach
Sep 6, 2010
Low-cost housing still out of reach
Few financing options available for Shanghai's low-income buyers
SHANGHAI: After months of anxious waiting, Ms Wang Jinxia finally obtained a coveted spot in Shanghai's trial afford-able-housing programme, but now the former factory worker is scrambling to pay for it.
The 53-year-old divorcee, who took early retirement years ago, is desperate to move after living for eight years in a 60 sq m Shanghai apartment with her octo-genarian parents and two other relatives.
'I've been stressed out recently. I have many new grey hairs. I will have to pour all of my 70,000 yuan (S$14,000) savings into this,' Ms Wang said outside a makeshift centre for mortgage applications at a local school.
She is among the first batch of about 1,940 families selected to buy low-cost housing selling for about one-third of market prices, as part of a new affordable housing campaign in the city of more than 20 million.
But Ms Wang and others find even 'affordable' housing out of reach, due to limited financing options for low-income buyers - a hurdle for government efforts to quell public concern over skyrocketing prices.
China's public housing programmes have been neglected for years, as local governments sought to cash in on spiralling property prices with more upmarket developments. But a growing outcry over the past year has put affordable housing back on Beijing's agenda.
The stakes in the housing programme are also high for the economy. It grew 10.3 per cent in the second quarter of this year - slowing from a blistering 11.9 per cent in the first quarter - as Beijing took steps to cool soaring property prices.
'The social housing programme is on track and will constitute an important cushion for any potential slowdown in private, market-based residential property construction,' Morgan Stanley economist Qing Wang wrote in a note.
Beijing's ambitious target to build 5.8 million affordable housing units this year is aimed at preventing a hard landing for property investment growth, and propping up demand for basic materials such as cement and steel, said the economist.
If it succeeds, the programme could boost China's economic growth by up to one percentage point or more, said property analyst Bai Hongwei of China International Capital.
However, only limited and fuzzy official data is available, and the push has been blemished by reports of insufficient land and high-income earners exploiting loopholes to take social housing spots.
Analysts estimate that only 40 per cent of the housing local governments pledged to build last year materialised, as they continued selling land to developers at market rates, and it may rise to 50 per cent this year, at best.
In May, Beijing told local officials that affordable housing would be part of their performance appraisals.
To qualify for the trial, a family's average annual income per capita must be less than 27,600 yuan, while each member's current share of floor space must be under 15 sq m. Yet once chosen, participants must still find a way to pay for the home.
'No bank wants to do this. It's not a profitable business,' said a mortgage officer at the makeshift centre. 'We are here because the government instructed us.'
For Ms Wang, a mortgage for the newly built 70 sq m home on the city outskirts would cost 2,200 yuan a month.
That is 43 per cent of her and her parents' combined pension, payable over 16 years, the longest period the bank offers.
She has persuaded the developer to give her three months to come up with cash to buy the apartment as she asks friends to lend her money. But success is still far from certain, she said.
AGENCE FRANCE-PRESSE
Low-cost housing still out of reach
Few financing options available for Shanghai's low-income buyers
SHANGHAI: After months of anxious waiting, Ms Wang Jinxia finally obtained a coveted spot in Shanghai's trial afford-able-housing programme, but now the former factory worker is scrambling to pay for it.
The 53-year-old divorcee, who took early retirement years ago, is desperate to move after living for eight years in a 60 sq m Shanghai apartment with her octo-genarian parents and two other relatives.
'I've been stressed out recently. I have many new grey hairs. I will have to pour all of my 70,000 yuan (S$14,000) savings into this,' Ms Wang said outside a makeshift centre for mortgage applications at a local school.
She is among the first batch of about 1,940 families selected to buy low-cost housing selling for about one-third of market prices, as part of a new affordable housing campaign in the city of more than 20 million.
But Ms Wang and others find even 'affordable' housing out of reach, due to limited financing options for low-income buyers - a hurdle for government efforts to quell public concern over skyrocketing prices.
China's public housing programmes have been neglected for years, as local governments sought to cash in on spiralling property prices with more upmarket developments. But a growing outcry over the past year has put affordable housing back on Beijing's agenda.
The stakes in the housing programme are also high for the economy. It grew 10.3 per cent in the second quarter of this year - slowing from a blistering 11.9 per cent in the first quarter - as Beijing took steps to cool soaring property prices.
'The social housing programme is on track and will constitute an important cushion for any potential slowdown in private, market-based residential property construction,' Morgan Stanley economist Qing Wang wrote in a note.
Beijing's ambitious target to build 5.8 million affordable housing units this year is aimed at preventing a hard landing for property investment growth, and propping up demand for basic materials such as cement and steel, said the economist.
If it succeeds, the programme could boost China's economic growth by up to one percentage point or more, said property analyst Bai Hongwei of China International Capital.
However, only limited and fuzzy official data is available, and the push has been blemished by reports of insufficient land and high-income earners exploiting loopholes to take social housing spots.
Analysts estimate that only 40 per cent of the housing local governments pledged to build last year materialised, as they continued selling land to developers at market rates, and it may rise to 50 per cent this year, at best.
In May, Beijing told local officials that affordable housing would be part of their performance appraisals.
To qualify for the trial, a family's average annual income per capita must be less than 27,600 yuan, while each member's current share of floor space must be under 15 sq m. Yet once chosen, participants must still find a way to pay for the home.
'No bank wants to do this. It's not a profitable business,' said a mortgage officer at the makeshift centre. 'We are here because the government instructed us.'
For Ms Wang, a mortgage for the newly built 70 sq m home on the city outskirts would cost 2,200 yuan a month.
That is 43 per cent of her and her parents' combined pension, payable over 16 years, the longest period the bank offers.
She has persuaded the developer to give her three months to come up with cash to buy the apartment as she asks friends to lend her money. But success is still far from certain, she said.
AGENCE FRANCE-PRESSE
ST : Lacklustre property sales as cautious mood prevails
Sep 6, 2010
Lacklustre property sales as cautious mood prevails
Homes in mass-market segment appear to be most affected
By Jessica Cheam
WAIT-AND-SEE was the order of the day at showflats over the weekend - the first since measures aimed to cool property speculation were introduced by the Government last Monday.
The mass-market segment appeared to be the most affected, with thinner crowds and noticeably fewer sales. At more upmarket properties, there was still some interest among genuine buyers.
There were no new launches over the weekend, but at projects that The Straits Times visited, sales were poor.
At The Minton, a 1,145-unit condominium in Lorong Ah Soo, a healthy crowd was seen but actual sales were lacklustre, said Mr Peter Ow, managing director of residential services at Knight Frank, the agency selling the condo.
'The crowd levels were the same as the previous weekend, but take-up was poor. The sentiment on the ground now is buyers want to wait and see what happens in the property market.'
The condo has sold 437 units at an average price of $860 per sq ft (psf) to date.
Property agents interviewed said overall, the mood seems to be cautious, with most buyers now keeping that home purchase on hold.
HSR agent John Chan, 26, who took his clients to the Waterfront Gold showflat in the Bedok Reservoir area said the recent measures have 'tipped many borderline buyers into the wait-and-see group'.
'People want more indication of whether prices will hold or fall before making decisions,' he said.
Developers appear to have maintained their selling prices for now, a move which probably gave buyers another reason to hold back.
A Frasers Centrepoint spokesperson said there were no sales done over the weekend for Waterfront Gold. To date, 200 out of 272 units have been sold at an average price of $980 psf.
The showflat was relatively quiet, with more agents milling around than there were buyers drifting in.
Over at Seletar Hills, Far East Organization sold eight homes at an average price of $1,065 psf over the weekend at Phase 2 of The Greenwich, a 319-unit leasehold project.
In contrast, 34 units were snapped up in the week from its Phase 2 launch on Aug 23 to Aug 29. It had sold out 174 units in its Phase 1 launch previously.
This hit on the mass-market segment, typically made up of upgraders, had been expected by property analysts.
'This segment was the star performer this year, so naturally it will take a hit as buying sentiment has cooled as everyone is waiting to see if prices will come down,' said Chesterton Suntec International research and consultancy director Colin Tan.
The new measures included tighter lending rules for home owners with existing mortgages looking to buy another property. They can borrow up to only 70 per cent of the value, down from 80 per cent. Assuming a price tag of $1 million, buyers will have to fork out an extra $100,000 for the down payment, a hefty sum for an upgrader.
Those who buy an HDB resale flat on or after Aug 30 must also dispose of their private property - including any held overseas - within six months of the HDB purchase.
One buyer, Mr Terence Tan, a 37-year-old flight attendant, said that the higher down payment has made it more difficult for buyers such as himself to upgrade.
'But if I really like the home and the price is right, I will fork out the higher down payment to secure it,' he said.
Agents agree that there will still be buyers who will sign on the dotted line if they feel the development is unique enough and will thus keep its value.
Retiree Ng Eng Koon, 65, who was at The Greenwich showflat looking to buy his retirement home, said the new rules will not deter him from buying if he likes a home.
'No one can predict what will happen now, even the Government. I don't think the rules will have great impact on genuine buyers, only the investors,' he said.
Agents added that there will also be some genuine buyers who need homes and cannot wait.
The mid- to high-end market still seemed to attract buyer interest. BS Capital's The Lumiere at Shenton Way saw a muted crowd, but people were buying.
A property agent who declined to be named said that the project - which has been completed - has not been drastically affected as the buyers 'can afford to invest'. He had personally sold two units a few days ago, after the new measures were introduced.
Homes at the 168-unit leasehold project are priced at about $2,500 psf.
Another reason for the lacklustre sales activity could be the Hungry Ghost Festival, which ends tomorrow, said market observers.
With a few of the recent projects having sold out, buyers may also be hoping for new launches to offer more choice.
The best time to gauge the impact of the curbs will be when there are new launches, noted Chesterton's Mr Tan, although this may not be for some time yet as developers are widely expected to put these on the backburner.
'We have received feedback that buyers are waiting to see if developers will lower their prices, and they might return to the market when this happens,' said Mr Tan.
jcheam@sph.com.sg
--------------------------------------------------------------------------------
'The crowd levels were the same as the previous weekend, but take-up was poor. The sentiment on the ground now is buyers want to wait and see what happens.'
Mr Peter Ow, managing director of residential services at Knight Frank on sales at The Minton in Lorong Ah Soo
Lacklustre property sales as cautious mood prevails
Homes in mass-market segment appear to be most affected
By Jessica Cheam
WAIT-AND-SEE was the order of the day at showflats over the weekend - the first since measures aimed to cool property speculation were introduced by the Government last Monday.
The mass-market segment appeared to be the most affected, with thinner crowds and noticeably fewer sales. At more upmarket properties, there was still some interest among genuine buyers.
There were no new launches over the weekend, but at projects that The Straits Times visited, sales were poor.
At The Minton, a 1,145-unit condominium in Lorong Ah Soo, a healthy crowd was seen but actual sales were lacklustre, said Mr Peter Ow, managing director of residential services at Knight Frank, the agency selling the condo.
'The crowd levels were the same as the previous weekend, but take-up was poor. The sentiment on the ground now is buyers want to wait and see what happens in the property market.'
The condo has sold 437 units at an average price of $860 per sq ft (psf) to date.
Property agents interviewed said overall, the mood seems to be cautious, with most buyers now keeping that home purchase on hold.
HSR agent John Chan, 26, who took his clients to the Waterfront Gold showflat in the Bedok Reservoir area said the recent measures have 'tipped many borderline buyers into the wait-and-see group'.
'People want more indication of whether prices will hold or fall before making decisions,' he said.
Developers appear to have maintained their selling prices for now, a move which probably gave buyers another reason to hold back.
A Frasers Centrepoint spokesperson said there were no sales done over the weekend for Waterfront Gold. To date, 200 out of 272 units have been sold at an average price of $980 psf.
The showflat was relatively quiet, with more agents milling around than there were buyers drifting in.
Over at Seletar Hills, Far East Organization sold eight homes at an average price of $1,065 psf over the weekend at Phase 2 of The Greenwich, a 319-unit leasehold project.
In contrast, 34 units were snapped up in the week from its Phase 2 launch on Aug 23 to Aug 29. It had sold out 174 units in its Phase 1 launch previously.
This hit on the mass-market segment, typically made up of upgraders, had been expected by property analysts.
'This segment was the star performer this year, so naturally it will take a hit as buying sentiment has cooled as everyone is waiting to see if prices will come down,' said Chesterton Suntec International research and consultancy director Colin Tan.
The new measures included tighter lending rules for home owners with existing mortgages looking to buy another property. They can borrow up to only 70 per cent of the value, down from 80 per cent. Assuming a price tag of $1 million, buyers will have to fork out an extra $100,000 for the down payment, a hefty sum for an upgrader.
Those who buy an HDB resale flat on or after Aug 30 must also dispose of their private property - including any held overseas - within six months of the HDB purchase.
One buyer, Mr Terence Tan, a 37-year-old flight attendant, said that the higher down payment has made it more difficult for buyers such as himself to upgrade.
'But if I really like the home and the price is right, I will fork out the higher down payment to secure it,' he said.
Agents agree that there will still be buyers who will sign on the dotted line if they feel the development is unique enough and will thus keep its value.
Retiree Ng Eng Koon, 65, who was at The Greenwich showflat looking to buy his retirement home, said the new rules will not deter him from buying if he likes a home.
'No one can predict what will happen now, even the Government. I don't think the rules will have great impact on genuine buyers, only the investors,' he said.
Agents added that there will also be some genuine buyers who need homes and cannot wait.
The mid- to high-end market still seemed to attract buyer interest. BS Capital's The Lumiere at Shenton Way saw a muted crowd, but people were buying.
A property agent who declined to be named said that the project - which has been completed - has not been drastically affected as the buyers 'can afford to invest'. He had personally sold two units a few days ago, after the new measures were introduced.
Homes at the 168-unit leasehold project are priced at about $2,500 psf.
Another reason for the lacklustre sales activity could be the Hungry Ghost Festival, which ends tomorrow, said market observers.
With a few of the recent projects having sold out, buyers may also be hoping for new launches to offer more choice.
The best time to gauge the impact of the curbs will be when there are new launches, noted Chesterton's Mr Tan, although this may not be for some time yet as developers are widely expected to put these on the backburner.
'We have received feedback that buyers are waiting to see if developers will lower their prices, and they might return to the market when this happens,' said Mr Tan.
jcheam@sph.com.sg
--------------------------------------------------------------------------------
'The crowd levels were the same as the previous weekend, but take-up was poor. The sentiment on the ground now is buyers want to wait and see what happens.'
Mr Peter Ow, managing director of residential services at Knight Frank on sales at The Minton in Lorong Ah Soo
Monday, September 6, 2010
ST : Before you make your next move...
Sep 5, 2010
Before you make your next move...
Here's what the new property rules imply for buyers and sellers
By Fiona Chan
Last week's biggest news was the raft of cooling measures that the Government announced on Monday to dampen demand in the sizzling housing market.
The curbs are aimed mainly at deterring property speculators and investors - especially those who may be overstretching themselves financially - from dominating the market and pushing up home prices.
But the nature of some of the restrictions means that many genuine home buyers who are looking for a new place to live in may also find themselves affected by the new rules.
Whether you are a first-time buyer, property investor or aspiring upgrader, The Sunday Times walks you through what the latest changes might mean for you.
1 If you are a property investor or if you want to buy an additional property but have yet to pay off your existing mortgage
You must now pay double the amount of cash upfront and probably take more from your Central Provident Fund (CPF) account as well. The maximum home loan you can obtain will also be smaller.
Previously, if you wanted to buy a home for $1 million - the rough cost of a three-bedroom suburban condo or a studio in the city - you would have to put a 20 per cent down payment, at least 5 per cent of which had to be in cash.
This works out to at least $50,000 in cash and $150,000 in cash or CPF. You could borrow the rest, 80 per cent of the property's price.
These financing rules were the same whether you were buying the home for your own stay or for investment.
But under the new rules, if you have an outstanding home loan, you must put down 30 per cent upfront for any property you buy. The cash portion of the down payment has also doubled, to at least 10 per cent.
This means you now have to fork out a minimum of $100,000 in cash and $200,000 in cash or CPF for your down payment - an increase of $100,000 upfront.
The maximum loan you can take now is capped at 70 per cent of the property's price, or $700,000.
2 If you haven't paid off your mortgage and are planning to upgrade, downgrade or move house
The new regulations will mean a more cumbersome process that will require you to get your timing just right.
To avoid the stricter financing rules for your new home, you will have to sell your current house first and provide proof of the sale.
Selling a house usually takes three months to complete, but you can buy a new home during that time and obtain 80 per cent financing for it as long as you show the following documents:
· For sellers of private property, the signed sale and purchase agreement for the house being sold, as well as a certificate from the Inland Revenue Authority of Singapore (Iras) stating that the buyer of the house has paid the stamp duty.
· For sellers of HDB flats, an approval letter from the HDB within two weeks from the date of the first sales appointment.
Then there's the problem of timing. Unless you manage to buy your new home right after selling the old one, you will probably have to find somewhere to stay in between the transactions.
One way around this is to ask for a longer completion period for the home you are selling so that you can stay in it while the new one is being readied. Alternatively, you could speed up the completion period for the home you are buying so that you can move into it quickly.
3 If you want to buy a newly launched property
Unless you are a first-time buyer or you have paid off all your mortgages, buying an uncompleted property will now become trickier.
It will mean either selling your current home first - in which case you need to find somewhere to live for the three years or so that it takes to complete a new project - or forking out more money upfront under the tighter financing rules.
Effectively, this means new launches will be pretty much limited to first-time buyers; people who have paid off all their home loans; and those who can afford to put a 30 per cent down payment with 10 per cent in cash.
It is a sea change from the past when new property launches, especially of suburban condominiums, were the province of aspiring HDB upgraders such as Mr Christopher Low.
The 30-year-old civil servant, who lives in a five-room flat with his wife, daughter and mother, was planning to buy a bigger place with at least four bedrooms to accommodate the additional children he and his wife plan to have, as well as a maid to help take care of his mother.
But now, he will have to think twice.
'It feels like I'm being penalised for wanting a bigger family because first I have to sell before I buy, and the timing will be very difficult,' he said.
'To me, it contradicts the very message of having more children that the Government has been preaching. At this rate, I'll just stop at one.'
4 If you own an HDB flat and want to buy a private property for investment
You can continue to do so, but only after you have lived in your flat for five years.
Also, unless you have paid off the loan for your HDB flat, you will be subject to the new rules of a higher down payment and a smaller loan for your investment property.
Even if all this does not bother you, there is another issue to bear in mind before snapping up that investment condominium you have your eye on.
If you ever need to move from your current HDB flat to another one, the sale of your existing flat will leave you with just the condominium to your name, classifying you as a de facto private property owner.
This means that when you buy the next HDB flat to live in, you will need to dispose of your private home within six months. If not, HDB can compulsorily take back the flat.
5 If you own a property in another country
You will not be able to buy an HDB resale flat in Singapore, regardless of whether you plan to live in the flat or not.
If you buy a resale flat here, you will have to sell your overseas property within six months - even if it is an inherited property, has your family members living in it, or was bought for your retirement.
However, you can still buy a private property in Singapore under the old rules, provided you have no outstanding mortgage on any other property in Singapore.
That is, you will be required to put a down payment of only 20 per cent of the price of the property you want to buy, and you can take a loan from a bank of up to 80 per cent.
While this may cheer some, the new curb on resale flat ownership has angered some retirees and permanent residents (PRs), many of whom own homes overseas.
Mr Lee Chiu San, 64, wrote in a letter to The Straits Times forum that the rules seem to be sending the message that PRs and retirees should either 'learn to lie or leave town'.
He said that many of his generation have acquired landed properties in Malaysia, Indonesia, Australia and America at prices less than the cost of a resale HDB flat.
However, with strong family ties and business connections here, they might also be looking at buying HDB flats for their frequent visits back.
'(The new rules) will cause those retirees and permanent residents who are honest to make the hard decision as to whether or not to make Singapore their primary home,' said Mr Lee, a retiree and a Singaporean.
6 If you are a first-time home buyer
The new rules do not affect you much in any direct way, but they now make it more important than ever that you right-size your property from the start.
Many first-time buyers are drawn to 'mickey mouse' private apartments that are just a few hundred square feet in size, because the price of these small units is more affordable.
But with the new rules, you must be confident that you can hold on to your home for at least three years - whether that means making sure it is big enough for your family or attractive enough to draw a tenant.
This is essential because if you resell a property within three years of buying it, you will have to pay a penalty in the form of a sellers' stamp duty. Previously, this was applicable only to those who resold their home within a year of buying it.
For HDB flat buyers, you must be prepared to live in your home for at least five years now, even if it is a resale flat that you bought at market price without a concessionary loan from HDB.
This 'minimum occupation period' has always been five years for brand-new HDB flats. But for non-subsidised flats, it has been raised twice in the last six months: from one year to three years in March, and then to five years now.
7 If you are looking for a home to buy, anticipating that property prices will fall after the measures
What you will want to know is: Which segments of the market are likely to crumble the most and the fastest?
Property consultants such as DTZ's head of South-east Asia research, Ms Chua Chor Hoon, say HDB resale flats and private mass market condominiums are expected to take the biggest hit as would-be buyers of these homes will be the ones most affected by the new rules.
This is welcome news to hopeful homebuyers such as Mrs Michelle Cheong, 26, and her husband, who have been living with his parents while balloting unsuccessfully for a new flat.
The couple's income recently breached $8,000 a month after Mr Cheong changed jobs, and they decided to buy a resale flat to move into immediately because they have a baby on the way.
'We were quite happy to hear about the changes, because we've been debating what to do for some time now, with HDB flat prices so high and still rising,' said Mrs Cheong, a teacher.
'We hope the measures will cool the resale market so flats will become more affordable.'
8 If your household income falls between $8,000 and $10,000 a month
You now have more options for your first home. Previously, buyers falling in this 'sandwiched class' category could purchase only private properties or executive condominiums (ECs). They could not buy any other HDB flats, for which the income ceiling is $8,000 a month.
Now, their choices have been extended to flats under the Design, Build and Sell Scheme (DBSS), which are premium HDB flats built by private developers and have better finishes and design.
This will effectively double their chances to secure an HDB flat as there are 2,445 EC units and 2,280 DBSS flats in the pipeline.
DBSS projects are usually located in sought-after established residential areas - such as The Peak at Toa Payoh and Natura Loft in Bishan - and are priced at about $500,000 for a typical four-room flat.
9 If you agreed to sell or buy a property just before the rules were announced on Monday
Say you bought your dream home just the previous week, with no inkling that these measures would be introduced almost immediately after. Will you be affected?
The good news is that the tighter financing rules for those with existing mortgages will not apply to private property buyers who were granted their option to purchase before Monday, even if the option has not yet been exercised.
However, for private home sellers, what matters is the exercise date. They will not be able to escape the sellers' stamp duty for selling their home less than three years after buying it, if the option to purchase had been granted before Monday but not yet exercised.
For buyers of HDB resale flats, they will be subject to the new rules if HDB received their applications on or after Monday, regardless of whether their options to purchase were already granted and exercised well before that.
However, HDB has said that it will consider appeals on a case-by-case basis if the option to purchase had been granted or exercised before Monday but the resale application had not been submitted by then.
It is commonly said that in buying property, the only three things that matter are location, location and location. But as the latest rules clearly show, the most important factor of all may be timing.
fiochan@sph.com.sg
Before you make your next move...
Here's what the new property rules imply for buyers and sellers
By Fiona Chan
Last week's biggest news was the raft of cooling measures that the Government announced on Monday to dampen demand in the sizzling housing market.
The curbs are aimed mainly at deterring property speculators and investors - especially those who may be overstretching themselves financially - from dominating the market and pushing up home prices.
But the nature of some of the restrictions means that many genuine home buyers who are looking for a new place to live in may also find themselves affected by the new rules.
Whether you are a first-time buyer, property investor or aspiring upgrader, The Sunday Times walks you through what the latest changes might mean for you.
1 If you are a property investor or if you want to buy an additional property but have yet to pay off your existing mortgage
You must now pay double the amount of cash upfront and probably take more from your Central Provident Fund (CPF) account as well. The maximum home loan you can obtain will also be smaller.
Previously, if you wanted to buy a home for $1 million - the rough cost of a three-bedroom suburban condo or a studio in the city - you would have to put a 20 per cent down payment, at least 5 per cent of which had to be in cash.
This works out to at least $50,000 in cash and $150,000 in cash or CPF. You could borrow the rest, 80 per cent of the property's price.
These financing rules were the same whether you were buying the home for your own stay or for investment.
But under the new rules, if you have an outstanding home loan, you must put down 30 per cent upfront for any property you buy. The cash portion of the down payment has also doubled, to at least 10 per cent.
This means you now have to fork out a minimum of $100,000 in cash and $200,000 in cash or CPF for your down payment - an increase of $100,000 upfront.
The maximum loan you can take now is capped at 70 per cent of the property's price, or $700,000.
2 If you haven't paid off your mortgage and are planning to upgrade, downgrade or move house
The new regulations will mean a more cumbersome process that will require you to get your timing just right.
To avoid the stricter financing rules for your new home, you will have to sell your current house first and provide proof of the sale.
Selling a house usually takes three months to complete, but you can buy a new home during that time and obtain 80 per cent financing for it as long as you show the following documents:
· For sellers of private property, the signed sale and purchase agreement for the house being sold, as well as a certificate from the Inland Revenue Authority of Singapore (Iras) stating that the buyer of the house has paid the stamp duty.
· For sellers of HDB flats, an approval letter from the HDB within two weeks from the date of the first sales appointment.
Then there's the problem of timing. Unless you manage to buy your new home right after selling the old one, you will probably have to find somewhere to stay in between the transactions.
One way around this is to ask for a longer completion period for the home you are selling so that you can stay in it while the new one is being readied. Alternatively, you could speed up the completion period for the home you are buying so that you can move into it quickly.
3 If you want to buy a newly launched property
Unless you are a first-time buyer or you have paid off all your mortgages, buying an uncompleted property will now become trickier.
It will mean either selling your current home first - in which case you need to find somewhere to live for the three years or so that it takes to complete a new project - or forking out more money upfront under the tighter financing rules.
Effectively, this means new launches will be pretty much limited to first-time buyers; people who have paid off all their home loans; and those who can afford to put a 30 per cent down payment with 10 per cent in cash.
It is a sea change from the past when new property launches, especially of suburban condominiums, were the province of aspiring HDB upgraders such as Mr Christopher Low.
The 30-year-old civil servant, who lives in a five-room flat with his wife, daughter and mother, was planning to buy a bigger place with at least four bedrooms to accommodate the additional children he and his wife plan to have, as well as a maid to help take care of his mother.
But now, he will have to think twice.
'It feels like I'm being penalised for wanting a bigger family because first I have to sell before I buy, and the timing will be very difficult,' he said.
'To me, it contradicts the very message of having more children that the Government has been preaching. At this rate, I'll just stop at one.'
4 If you own an HDB flat and want to buy a private property for investment
You can continue to do so, but only after you have lived in your flat for five years.
Also, unless you have paid off the loan for your HDB flat, you will be subject to the new rules of a higher down payment and a smaller loan for your investment property.
Even if all this does not bother you, there is another issue to bear in mind before snapping up that investment condominium you have your eye on.
If you ever need to move from your current HDB flat to another one, the sale of your existing flat will leave you with just the condominium to your name, classifying you as a de facto private property owner.
This means that when you buy the next HDB flat to live in, you will need to dispose of your private home within six months. If not, HDB can compulsorily take back the flat.
5 If you own a property in another country
You will not be able to buy an HDB resale flat in Singapore, regardless of whether you plan to live in the flat or not.
If you buy a resale flat here, you will have to sell your overseas property within six months - even if it is an inherited property, has your family members living in it, or was bought for your retirement.
However, you can still buy a private property in Singapore under the old rules, provided you have no outstanding mortgage on any other property in Singapore.
That is, you will be required to put a down payment of only 20 per cent of the price of the property you want to buy, and you can take a loan from a bank of up to 80 per cent.
While this may cheer some, the new curb on resale flat ownership has angered some retirees and permanent residents (PRs), many of whom own homes overseas.
Mr Lee Chiu San, 64, wrote in a letter to The Straits Times forum that the rules seem to be sending the message that PRs and retirees should either 'learn to lie or leave town'.
He said that many of his generation have acquired landed properties in Malaysia, Indonesia, Australia and America at prices less than the cost of a resale HDB flat.
However, with strong family ties and business connections here, they might also be looking at buying HDB flats for their frequent visits back.
'(The new rules) will cause those retirees and permanent residents who are honest to make the hard decision as to whether or not to make Singapore their primary home,' said Mr Lee, a retiree and a Singaporean.
6 If you are a first-time home buyer
The new rules do not affect you much in any direct way, but they now make it more important than ever that you right-size your property from the start.
Many first-time buyers are drawn to 'mickey mouse' private apartments that are just a few hundred square feet in size, because the price of these small units is more affordable.
But with the new rules, you must be confident that you can hold on to your home for at least three years - whether that means making sure it is big enough for your family or attractive enough to draw a tenant.
This is essential because if you resell a property within three years of buying it, you will have to pay a penalty in the form of a sellers' stamp duty. Previously, this was applicable only to those who resold their home within a year of buying it.
For HDB flat buyers, you must be prepared to live in your home for at least five years now, even if it is a resale flat that you bought at market price without a concessionary loan from HDB.
This 'minimum occupation period' has always been five years for brand-new HDB flats. But for non-subsidised flats, it has been raised twice in the last six months: from one year to three years in March, and then to five years now.
7 If you are looking for a home to buy, anticipating that property prices will fall after the measures
What you will want to know is: Which segments of the market are likely to crumble the most and the fastest?
Property consultants such as DTZ's head of South-east Asia research, Ms Chua Chor Hoon, say HDB resale flats and private mass market condominiums are expected to take the biggest hit as would-be buyers of these homes will be the ones most affected by the new rules.
This is welcome news to hopeful homebuyers such as Mrs Michelle Cheong, 26, and her husband, who have been living with his parents while balloting unsuccessfully for a new flat.
The couple's income recently breached $8,000 a month after Mr Cheong changed jobs, and they decided to buy a resale flat to move into immediately because they have a baby on the way.
'We were quite happy to hear about the changes, because we've been debating what to do for some time now, with HDB flat prices so high and still rising,' said Mrs Cheong, a teacher.
'We hope the measures will cool the resale market so flats will become more affordable.'
8 If your household income falls between $8,000 and $10,000 a month
You now have more options for your first home. Previously, buyers falling in this 'sandwiched class' category could purchase only private properties or executive condominiums (ECs). They could not buy any other HDB flats, for which the income ceiling is $8,000 a month.
Now, their choices have been extended to flats under the Design, Build and Sell Scheme (DBSS), which are premium HDB flats built by private developers and have better finishes and design.
This will effectively double their chances to secure an HDB flat as there are 2,445 EC units and 2,280 DBSS flats in the pipeline.
DBSS projects are usually located in sought-after established residential areas - such as The Peak at Toa Payoh and Natura Loft in Bishan - and are priced at about $500,000 for a typical four-room flat.
9 If you agreed to sell or buy a property just before the rules were announced on Monday
Say you bought your dream home just the previous week, with no inkling that these measures would be introduced almost immediately after. Will you be affected?
The good news is that the tighter financing rules for those with existing mortgages will not apply to private property buyers who were granted their option to purchase before Monday, even if the option has not yet been exercised.
However, for private home sellers, what matters is the exercise date. They will not be able to escape the sellers' stamp duty for selling their home less than three years after buying it, if the option to purchase had been granted before Monday but not yet exercised.
For buyers of HDB resale flats, they will be subject to the new rules if HDB received their applications on or after Monday, regardless of whether their options to purchase were already granted and exercised well before that.
However, HDB has said that it will consider appeals on a case-by-case basis if the option to purchase had been granted or exercised before Monday but the resale application had not been submitted by then.
It is commonly said that in buying property, the only three things that matter are location, location and location. But as the latest rules clearly show, the most important factor of all may be timing.
fiochan@sph.com.sg
ST : Don't sell that HDB flat
Sep 5, 2010
small change
Don't sell that HDB flat
With new rules, it has become something that sometimes money can't buy
By Dennis Chan
The anti-speculation measures to cool the property market, particularly with regard to public housing, have turned some conventional wisdom about buying a Housing Board flat on its head.
A few months ago, I wrote a column encouraging first-time buyers to be less choosy and to go ahead and get that new flat directly from the HDB; never mind if it is located in far-flung estates like Sengkang and Punggol.
Now I'm not so sure.
Changes in the rules on public housing last week mean that it is imperative for buyers to take extra care in selecting their flats, as there are longer-term implications to their choice than was the case previously.
Before I go on, let's recap the key changes in order to understand how far-reaching the impact they may have on HDB prices as well as on the psychology of home buyers and home owners.
The new restrictions are:
· Private property owners who buy an HDB flat must dispose of their private home within six months of buying the flat.
· If you are an HDB flat owner, you must have lived in your flat for at least five years before you can buy a private property.
· You must live in your HDB flat for five years before you can sell it, regardless of whether you bought directly from the HDB or in the open market. The lock-in is known as the minimum occupation period.
· Buyers with outstanding loans must put down
30 per cent of home valuation, of which 10 per cent must be in cash.
So what are the implications?
First off, the mobility of HDB home owners has been curtailed sharply.
Consider the situation at the start of the year. If you had bought a non-subsidised resale flat and did not take a loan from the HDB, you could sell it after one year.
In March, the time bar was raised to three years. It's now five, effective from last Monday. This change has no impact on first-time buyers who receive a housing subsidy as they have been required all along to occupy their flat for five years.
But it has a big impact on upgraders and downgraders.
The extended minimum occupation period will take away much of the speculative activity, effectively removing a layer of demand from the market.
Another source of demand - that from private property owners - has also been filtered out.
In the past, one in 10 resale flat buyers also owns private property. This is not an insignificant number, given that such buyers tend to gravitate towards the more affluent segment of the HDB market. They prefer flats in popular estates like Bishan, Marine Parade, Central and Queenstown, where prices and rentals are among the highest on the island.
Without the support of cash-rich private property owners, the days of a buyer paying an astronomical sum over and above a flat's valuation are over.
The slackening demand should lead to a moderation in resale flat prices. They could even fall if buyers are spooked badly.
However, it's not all a one-way street on the demand side. If prices were to fall to a level affordable to a first-time buyer, new demand may form as people who were previously put off by the high prices start to shop around again.
This takes me back to my earlier point: Is it still worthwhile for a first-time buyer to buy a new flat?
For the majority, the answer is 'yes' as the incentives for first-time buyers remain attractive. Flat selection priority given to first-time buyers, a generous loan quantum of up to 90 per cent, flat prices significantly below the market level, fresh 99-year leases, and zero cash premium over valuation are some of the advantages of buying new flats.
But for a small group of first-timers, it may be better to consider buying resale instead of new flats, if prices fall to affordable levels.
The extension of the minimum occupation period and the broadening of its use to encompass private property purchases mean that settling for a less-than-ideal home could cramp future housing and investment options.
Take, for example, the life cycle of an upwardly mobile couple.
A well-trodden path for them would be to buy a subsidised new flat and then upgrade to a bigger resale flat, before moving on to owning a private home.
This three-step upgrading plan can be realised through a combination of rising home equity, increased savings and improved earning power as their careers progress.
Prior to March, it could have been achieved in six years - by living five years in the first flat and putting up another year in the second flat.
Now, they will have to wait at least 10 years if they take this path. Perhaps even longer, if the HDB market grows sluggishly as a result of too many ownership restrictions.
It gets more complicated if they want to buy an uncompleted property as they will not be able to execute a sell-and-buy deal back to back that will allow them to take an 80 per cent loan on their new home.
Buying a condo during its launch, for instance, will mean stumping up more cash upfront as banks can lend up to only 70 per cent.
Therefore, if you buy from the resale market, make sure you choose your flat wisely since it is a place that you will have to be content with for the long haul. That means keeping the flat beyond the minimum occupation period.
Bear in mind the high opportunity cost each time you move house due to the five-year lock-in rule.
So don't move house if you are currently an HDB home owner and have plans to invest in a private property in the near future.
As far as possible - I know this can be hard - avoid flats that may be picked for the Government's Selective En Bloc Redevelopment Scheme because the replacement flat that you get in exchange will lock you in on a fresh five-year term.
Also, you should not sell your HDB flat if you currently own a private property as well, unless you intend to say goodbye to public housing ownership for good.
Once you sell your HDB flat, you are allowed to buy another one only if you are prepared to give up private property ownership for five years - a pretty drastic outcome.
Under the circumstances, it's better to rent out your HDB flat than to sell it, even if you were to receive an enticing offer.
After all, rental return from an HDB flat is generally superior to what private residences can achieve.
Whether for your own stay or rental income, one should not give up owning an HDB flat as it keeps its value better than a leasehold private apartment or condo.
The bottom line is: Do not sell that prized HDB flat. Thanks to the new rules, it has become something that money can't buy, if you are a private property owner and intend to remain one.
Either that or hope for a reversal of this rule in the future.
dennis@sph.com.sg
small change
Don't sell that HDB flat
With new rules, it has become something that sometimes money can't buy
By Dennis Chan
The anti-speculation measures to cool the property market, particularly with regard to public housing, have turned some conventional wisdom about buying a Housing Board flat on its head.
A few months ago, I wrote a column encouraging first-time buyers to be less choosy and to go ahead and get that new flat directly from the HDB; never mind if it is located in far-flung estates like Sengkang and Punggol.
Now I'm not so sure.
Changes in the rules on public housing last week mean that it is imperative for buyers to take extra care in selecting their flats, as there are longer-term implications to their choice than was the case previously.
Before I go on, let's recap the key changes in order to understand how far-reaching the impact they may have on HDB prices as well as on the psychology of home buyers and home owners.
The new restrictions are:
· Private property owners who buy an HDB flat must dispose of their private home within six months of buying the flat.
· If you are an HDB flat owner, you must have lived in your flat for at least five years before you can buy a private property.
· You must live in your HDB flat for five years before you can sell it, regardless of whether you bought directly from the HDB or in the open market. The lock-in is known as the minimum occupation period.
· Buyers with outstanding loans must put down
30 per cent of home valuation, of which 10 per cent must be in cash.
So what are the implications?
First off, the mobility of HDB home owners has been curtailed sharply.
Consider the situation at the start of the year. If you had bought a non-subsidised resale flat and did not take a loan from the HDB, you could sell it after one year.
In March, the time bar was raised to three years. It's now five, effective from last Monday. This change has no impact on first-time buyers who receive a housing subsidy as they have been required all along to occupy their flat for five years.
But it has a big impact on upgraders and downgraders.
The extended minimum occupation period will take away much of the speculative activity, effectively removing a layer of demand from the market.
Another source of demand - that from private property owners - has also been filtered out.
In the past, one in 10 resale flat buyers also owns private property. This is not an insignificant number, given that such buyers tend to gravitate towards the more affluent segment of the HDB market. They prefer flats in popular estates like Bishan, Marine Parade, Central and Queenstown, where prices and rentals are among the highest on the island.
Without the support of cash-rich private property owners, the days of a buyer paying an astronomical sum over and above a flat's valuation are over.
The slackening demand should lead to a moderation in resale flat prices. They could even fall if buyers are spooked badly.
However, it's not all a one-way street on the demand side. If prices were to fall to a level affordable to a first-time buyer, new demand may form as people who were previously put off by the high prices start to shop around again.
This takes me back to my earlier point: Is it still worthwhile for a first-time buyer to buy a new flat?
For the majority, the answer is 'yes' as the incentives for first-time buyers remain attractive. Flat selection priority given to first-time buyers, a generous loan quantum of up to 90 per cent, flat prices significantly below the market level, fresh 99-year leases, and zero cash premium over valuation are some of the advantages of buying new flats.
But for a small group of first-timers, it may be better to consider buying resale instead of new flats, if prices fall to affordable levels.
The extension of the minimum occupation period and the broadening of its use to encompass private property purchases mean that settling for a less-than-ideal home could cramp future housing and investment options.
Take, for example, the life cycle of an upwardly mobile couple.
A well-trodden path for them would be to buy a subsidised new flat and then upgrade to a bigger resale flat, before moving on to owning a private home.
This three-step upgrading plan can be realised through a combination of rising home equity, increased savings and improved earning power as their careers progress.
Prior to March, it could have been achieved in six years - by living five years in the first flat and putting up another year in the second flat.
Now, they will have to wait at least 10 years if they take this path. Perhaps even longer, if the HDB market grows sluggishly as a result of too many ownership restrictions.
It gets more complicated if they want to buy an uncompleted property as they will not be able to execute a sell-and-buy deal back to back that will allow them to take an 80 per cent loan on their new home.
Buying a condo during its launch, for instance, will mean stumping up more cash upfront as banks can lend up to only 70 per cent.
Therefore, if you buy from the resale market, make sure you choose your flat wisely since it is a place that you will have to be content with for the long haul. That means keeping the flat beyond the minimum occupation period.
Bear in mind the high opportunity cost each time you move house due to the five-year lock-in rule.
So don't move house if you are currently an HDB home owner and have plans to invest in a private property in the near future.
As far as possible - I know this can be hard - avoid flats that may be picked for the Government's Selective En Bloc Redevelopment Scheme because the replacement flat that you get in exchange will lock you in on a fresh five-year term.
Also, you should not sell your HDB flat if you currently own a private property as well, unless you intend to say goodbye to public housing ownership for good.
Once you sell your HDB flat, you are allowed to buy another one only if you are prepared to give up private property ownership for five years - a pretty drastic outcome.
Under the circumstances, it's better to rent out your HDB flat than to sell it, even if you were to receive an enticing offer.
After all, rental return from an HDB flat is generally superior to what private residences can achieve.
Whether for your own stay or rental income, one should not give up owning an HDB flat as it keeps its value better than a leasehold private apartment or condo.
The bottom line is: Do not sell that prized HDB flat. Thanks to the new rules, it has become something that money can't buy, if you are a private property owner and intend to remain one.
Either that or hope for a reversal of this rule in the future.
dennis@sph.com.sg
ST : Er, what is a bridging loan?
Sep 5, 2010
FINANCIAL QUOTIENT
Er, what is a bridging loan?
Where do you see this?
In loan documents and property-related articles.
What does it mean?
A bridging loan is a short-term loan with a tenor ranging from a fortnight to a few years.
It provides interim financing for an individual or business till a longer-term financing can be secured.
It is often used for residential and commercial real estate purchases to help close a property deal.
Why is it important?
Bridging loans are typically more expensive than conventional financing to compensate for the additional risk of the loan. On the other hand, they are arranged quickly with relatively little documentation.
Let's assume you need help on the initial cash down payment on your property purchase. A bank can extend a bridging loan to you while you are in the process of selling your HDB flat or private property.
Banks typically allow you to borrow up to 15 per cent of the purchase price or fair market value (whichever is lower) at about 6.5 per cent per annum. The maximum tenor of the loan is typically six months.
During the tenor of the loan, you can choose to service the interest only. You repay the principal amount once you have received the cash proceeds from the sale of your existing property.
So you want to use the term. Just say...
'I plan to buy the condo with a combination of cash, my retirement funds and a $150,000 bridging loan.'
Lorna Tan
FINANCIAL QUOTIENT
Er, what is a bridging loan?
Where do you see this?
In loan documents and property-related articles.
What does it mean?
A bridging loan is a short-term loan with a tenor ranging from a fortnight to a few years.
It provides interim financing for an individual or business till a longer-term financing can be secured.
It is often used for residential and commercial real estate purchases to help close a property deal.
Why is it important?
Bridging loans are typically more expensive than conventional financing to compensate for the additional risk of the loan. On the other hand, they are arranged quickly with relatively little documentation.
Let's assume you need help on the initial cash down payment on your property purchase. A bank can extend a bridging loan to you while you are in the process of selling your HDB flat or private property.
Banks typically allow you to borrow up to 15 per cent of the purchase price or fair market value (whichever is lower) at about 6.5 per cent per annum. The maximum tenor of the loan is typically six months.
During the tenor of the loan, you can choose to service the interest only. You repay the principal amount once you have received the cash proceeds from the sale of your existing property.
So you want to use the term. Just say...
'I plan to buy the condo with a combination of cash, my retirement funds and a $150,000 bridging loan.'
Lorna Tan
ST : Many backing out of planned home purchases
Sep 5, 2010
Many backing out of planned home purchases
By Jessica Cheam
Home buyers have already begun to retreat from planned purchases since new government rules to cool the property market kicked in last Monday.
Property agency bosses and agents told The Sunday Times the early effects of the new measures are emerging as buyers back out of option to purchase (OTP) agreements - especially for Housing Board (HDB) flats.
The new regulations include tighter lending rules for home owners with existing mortgages looking to buy another property. They can borrow up to only 70 per cent of the value, down from 80 per cent.
Those who buy an HDB resale flat on or after Aug 30 must also dispose of their private property - including any held overseas - within six months of the HDB purchase.
Those having second thoughts about home purchases either no longer qualify for an 80 per cent loan, or believe that prices are going to crash following the measures, said DTZ's head of South-east Asia research Chua Chor Hoon.
Then there are the private property owners who bought HDB flats and have no intention of selling their private homes.
ERA Asia Pacific associate director Eugene Lim estimates that 10 per cent to 20 per cent of buyers of HDB resale flats belong to this group.
On average, about 3,000 resale flats change hands each month. This means up to 600 sales are at risk of buyers backing out, depending on which stage of the sales process they were at when the rules were announced, said Mr Lim.
'The dust is still settling. Buyers are checking whether they can appeal and they will have to make some hard decisions,' he added.
Dennis Wee Group director Chris Koh said agents have already reported cases where buyers of HDB flats have walked away from deals, choosing to lose the $1,000 option fee instead of going ahead.
These are buyers who have been granted an OTP but have not exercised it. Those who have exercised their options are legally required to complete the purchase.
Malaysian permanent resident May Lee, 30, is one buyer caught in a bind. She had saved for 11 years to buy an HDB resale flat and last week had finally paid the option fee to buy a $260,000 three-room HDB flat in Aljunied.
But as she owns a private property in Malaysia - which she cannot sell because her parents are living there - she now has to give up the HDB flat and lose $1,000.
'The new rules are very unfair as PRs are drastically affected,' she said. 'I cannot ask my parents in Malaysia to move, and yet, my dream to have a permanent HDB home in Singapore for my family has been shattered.'
Ms Lee intends to appeal.
When contacted, the HDB told The Sunday Times that buyers who have already been granted or exercised their OTP but have yet to submit an application 'may approach HDB's Resale Office to see how best they could be assisted'.
The new rules apply to resale applications submitted on or after Aug 30, but many buyers, such as Ms Lee, would have already committed to a purchase although their resale application would not have reached HDB by Aug 30.
HDB said it is 'prepared to exercise flexibility... depending on the merits of each case'.
It added that by last Thursday, it had received about 4,000 inquiries and 100 appeals related to the policy changes.
The ramifications of the new rules have also hit the private property segment.
ERA agent Cindy Chew, 44, said she had a buyer of a private property who had paid the option fee of $14,600 for a unit but had cancelled the cheque when news of the measures broke last Monday.
'Buyers now think prices are going to come down, so they are changing their minds,' said Ms Chew.
Cancelling the cheque, however, is not allowed technically, and the case is now being referred to the lawyers, she said.
DTZ agent Leslie Chan said two of the last 10 buyers who bought HDB flats through him recently have backed out of their deals.
'Buyers think the $1,000 fee is cheap, in the light of prices falling potentially,' he said. 'But I expect that in the next few months, sales volumes will actually increase because sellers will become more realistic and cash-over-valuation amounts will also drop. Thus, there will be a matching of expectations between buyers and sellers.'
Many backing out of planned home purchases
By Jessica Cheam
Home buyers have already begun to retreat from planned purchases since new government rules to cool the property market kicked in last Monday.
Property agency bosses and agents told The Sunday Times the early effects of the new measures are emerging as buyers back out of option to purchase (OTP) agreements - especially for Housing Board (HDB) flats.
The new regulations include tighter lending rules for home owners with existing mortgages looking to buy another property. They can borrow up to only 70 per cent of the value, down from 80 per cent.
Those who buy an HDB resale flat on or after Aug 30 must also dispose of their private property - including any held overseas - within six months of the HDB purchase.
Those having second thoughts about home purchases either no longer qualify for an 80 per cent loan, or believe that prices are going to crash following the measures, said DTZ's head of South-east Asia research Chua Chor Hoon.
Then there are the private property owners who bought HDB flats and have no intention of selling their private homes.
ERA Asia Pacific associate director Eugene Lim estimates that 10 per cent to 20 per cent of buyers of HDB resale flats belong to this group.
On average, about 3,000 resale flats change hands each month. This means up to 600 sales are at risk of buyers backing out, depending on which stage of the sales process they were at when the rules were announced, said Mr Lim.
'The dust is still settling. Buyers are checking whether they can appeal and they will have to make some hard decisions,' he added.
Dennis Wee Group director Chris Koh said agents have already reported cases where buyers of HDB flats have walked away from deals, choosing to lose the $1,000 option fee instead of going ahead.
These are buyers who have been granted an OTP but have not exercised it. Those who have exercised their options are legally required to complete the purchase.
Malaysian permanent resident May Lee, 30, is one buyer caught in a bind. She had saved for 11 years to buy an HDB resale flat and last week had finally paid the option fee to buy a $260,000 three-room HDB flat in Aljunied.
But as she owns a private property in Malaysia - which she cannot sell because her parents are living there - she now has to give up the HDB flat and lose $1,000.
'The new rules are very unfair as PRs are drastically affected,' she said. 'I cannot ask my parents in Malaysia to move, and yet, my dream to have a permanent HDB home in Singapore for my family has been shattered.'
Ms Lee intends to appeal.
When contacted, the HDB told The Sunday Times that buyers who have already been granted or exercised their OTP but have yet to submit an application 'may approach HDB's Resale Office to see how best they could be assisted'.
The new rules apply to resale applications submitted on or after Aug 30, but many buyers, such as Ms Lee, would have already committed to a purchase although their resale application would not have reached HDB by Aug 30.
HDB said it is 'prepared to exercise flexibility... depending on the merits of each case'.
It added that by last Thursday, it had received about 4,000 inquiries and 100 appeals related to the policy changes.
The ramifications of the new rules have also hit the private property segment.
ERA agent Cindy Chew, 44, said she had a buyer of a private property who had paid the option fee of $14,600 for a unit but had cancelled the cheque when news of the measures broke last Monday.
'Buyers now think prices are going to come down, so they are changing their minds,' said Ms Chew.
Cancelling the cheque, however, is not allowed technically, and the case is now being referred to the lawyers, she said.
DTZ agent Leslie Chan said two of the last 10 buyers who bought HDB flats through him recently have backed out of their deals.
'Buyers think the $1,000 fee is cheap, in the light of prices falling potentially,' he said. 'But I expect that in the next few months, sales volumes will actually increase because sellers will become more realistic and cash-over-valuation amounts will also drop. Thus, there will be a matching of expectations between buyers and sellers.'
ST : Few bright spots in Bras Basah-Bugis area
Sep 5, 2010
Few bright spots in Bras Basah-Bugis area
The Bras Basah-Bugis district seems to have stayed out of the limelight so far, compared with areas like Marina Bay and Orchard Road.
URA's 2006 lighting masterplan had conceptualised the area as brimming with youthful energy for the arts, culture, learning and entertainment.
Schools there, like the Lasalle College of the Arts and the Nanyang Academy of Fine Arts (Nafa), provide the critical mass.
The planners had marked out several gateways along Selegie Road, Victoria Street and Bencoolen Street for illumination, and suggested putting up signage and 'luminous street elements'.
Last week, The Sunday Times did not find any such prominent gateway. The facade of a number of buildings marked out in the masterplan appeared to be lit not by design but by the yellowish glare of street lamps.
These included: Elias Building, Stansfield College and the Tamil Methodist Church along Short Street; and Nafa's campus along Bencoolen Street.
But some bright lights did beckon, like the Iluma shopping mall at Bugis Junction and the Wilkie Edge offices and residences along Selegie Road. Both facades lit up with moving and changing colours.
Also aglow is the Maghain Aboth Synagogue along Waterloo Street, the earliest Jewish synagogue here and the oldest in Southeast Asia.
The URA, meanwhile, issued a circular to professional institutes on Aug 2, marking out buildings under its masterplan that are required to provide night lighting for their facades, crowns and spires, based on its guidelines.
It said classic-style buildings such as national monuments and conservation buildings should use lights of a warmer colour temperature; contemporary-style buildings should go for cooler colours.
Building owners must also turn on the night lights on Fridays, Saturdays and Sundays, from 7pm to 11pm, as well as for national events and district-wide festivals.
The facade of Wilkie Edge all lit up with bright LED lights. -- PHOTO: PATRICK BINGHAM HALL
Few bright spots in Bras Basah-Bugis area
The Bras Basah-Bugis district seems to have stayed out of the limelight so far, compared with areas like Marina Bay and Orchard Road.
URA's 2006 lighting masterplan had conceptualised the area as brimming with youthful energy for the arts, culture, learning and entertainment.
Schools there, like the Lasalle College of the Arts and the Nanyang Academy of Fine Arts (Nafa), provide the critical mass.
The planners had marked out several gateways along Selegie Road, Victoria Street and Bencoolen Street for illumination, and suggested putting up signage and 'luminous street elements'.
Last week, The Sunday Times did not find any such prominent gateway. The facade of a number of buildings marked out in the masterplan appeared to be lit not by design but by the yellowish glare of street lamps.
These included: Elias Building, Stansfield College and the Tamil Methodist Church along Short Street; and Nafa's campus along Bencoolen Street.
But some bright lights did beckon, like the Iluma shopping mall at Bugis Junction and the Wilkie Edge offices and residences along Selegie Road. Both facades lit up with moving and changing colours.
Also aglow is the Maghain Aboth Synagogue along Waterloo Street, the earliest Jewish synagogue here and the oldest in Southeast Asia.
The URA, meanwhile, issued a circular to professional institutes on Aug 2, marking out buildings under its masterplan that are required to provide night lighting for their facades, crowns and spires, based on its guidelines.
It said classic-style buildings such as national monuments and conservation buildings should use lights of a warmer colour temperature; contemporary-style buildings should go for cooler colours.
Building owners must also turn on the night lights on Fridays, Saturdays and Sundays, from 7pm to 11pm, as well as for national events and district-wide festivals.
The facade of Wilkie Edge all lit up with bright LED lights. -- PHOTO: PATRICK BINGHAM HALL
ST : 'Rainbow connection' at Singapore River
Sep 5, 2010
'Rainbow connection' at Singapore River
The nightly kaleidoscope of lights at the Singapore River is being joined by snapshot-pretty lanterns.
These lanterns, depicting animal characters and Chinese legends, will illuminate the river for this month's Mid-Autumn Festival.
The temporary festive decorations complement the permanent upgrade over the last two years to light up the riverside, a popular spot for diners and camera-toting tourists.
A 2006 masterplan had envisaged night lighting to infuse a warm and inviting ambience for the area.
There was indeed a rainbow connection of colours, when The Sunday Times dropped by last week.
Various bridges across the river were lit up. Hues of soft blue adorned Coleman Bridge, next to Clarke Quay. Beams of light were also cast on the waters below, while riverboats carrying tourists plied beneath the bridge.
Tiny rainbow-coloured lights lined the length of Elgin Bridge, on the way to Boat Quay.
Stops for the boats were also lit - a luminous purple and blue. Even an underpass connecting Clarke Quay to Boat Quay had lights that changed from purple to blue.
Ms Ong Swee Hong, a lecturer of environment design at Temasek Polytechnic, liked the night lighting in the Boat Quay and Clarke Quay areas. Saying it complemented the activities there well, she added that a fillip has been provided by new snazzy features, such as light emitting diodes.
Mr Romeo Millares Jr, 29, a staff member operating the Hippo river tour, remembers the bridges being left in darkness more than two years ago.
Said the Filipino, who has been in Singapore for five years: 'The river now comes alive because of the lights. Tourists are now raring to take pictures here.'
Lanterns will complement the lights along the river during this month's Mid-Autumn Festival. -- ST FILE PHOTO
'Rainbow connection' at Singapore River
The nightly kaleidoscope of lights at the Singapore River is being joined by snapshot-pretty lanterns.
These lanterns, depicting animal characters and Chinese legends, will illuminate the river for this month's Mid-Autumn Festival.
The temporary festive decorations complement the permanent upgrade over the last two years to light up the riverside, a popular spot for diners and camera-toting tourists.
A 2006 masterplan had envisaged night lighting to infuse a warm and inviting ambience for the area.
There was indeed a rainbow connection of colours, when The Sunday Times dropped by last week.
Various bridges across the river were lit up. Hues of soft blue adorned Coleman Bridge, next to Clarke Quay. Beams of light were also cast on the waters below, while riverboats carrying tourists plied beneath the bridge.
Tiny rainbow-coloured lights lined the length of Elgin Bridge, on the way to Boat Quay.
Stops for the boats were also lit - a luminous purple and blue. Even an underpass connecting Clarke Quay to Boat Quay had lights that changed from purple to blue.
Ms Ong Swee Hong, a lecturer of environment design at Temasek Polytechnic, liked the night lighting in the Boat Quay and Clarke Quay areas. Saying it complemented the activities there well, she added that a fillip has been provided by new snazzy features, such as light emitting diodes.
Mr Romeo Millares Jr, 29, a staff member operating the Hippo river tour, remembers the bridges being left in darkness more than two years ago.
Said the Filipino, who has been in Singapore for five years: 'The river now comes alive because of the lights. Tourists are now raring to take pictures here.'
Lanterns will complement the lights along the river during this month's Mid-Autumn Festival. -- ST FILE PHOTO
ST : Orchard Road: Funky or distracting?
Sep 5, 2010
Orchard Road: Funky or distracting?
The lights are so much brighter there... so go downtown...
So goes a hit song of the Sixties.
Today, the downtown Orchard shopping belt, with malls like Ion Orchard and Orchard Central, are aglow come night-time.
These two malls especially stand out - with their towering facades of moving, coloured displays of flashy lights, images and digital art.
They are in sync with the Urban Redevelopment Authority's lighting masterplan that calls for exciting shopfronts and vibrant facades.
Its spokesman told The Sunday Times the plan for Orchard Road 'focuses on creating a revitalising and delightful shoppers' experience'.
But glitzy facades will have their detractors. Architect Aamer Taher, 48, is one. The Singapore Institute of Architects council member felt both malls have overdone the lighting in their bid to attract shoppers.
'It's all right if we are in Disneyland but a city should be soothing and pleasant. It should be more a glow and not a glare.'
Both malls have defended their facades, saying they add vibrancy to the streets and create ambience for shoppers.
For instance, the LED wall on Ion Orchard's curvy facade of glass and metal broadcast the National Day Parade and the Youth Olympic Games opening ceremony. Free popular movies are screened on the last Saturday of every month.
'During Christmas last year, snowflakes patterns lit up the facade, while National Day saw the entire exterior enveloped in fireworks and the national red and white colours,' a spokesman added.
Taking a contrary view to Mr Aamer's is Singapore Institute of Architects president Ashvinkumar Kantilal, 49, who likes the facades.
'They are funky and add character,' he said.
The URA's masterplan also provided for the lighting up of the streets and trees to create a sequential experience, its spokesman said.
New street lights were part of a $40 million makeover of Orchard Road completed early last year.
Love it or hate it, Orchard Central's glitzy facade stands out. -- ST FILE PHOTO
Orchard Road: Funky or distracting?
The lights are so much brighter there... so go downtown...
So goes a hit song of the Sixties.
Today, the downtown Orchard shopping belt, with malls like Ion Orchard and Orchard Central, are aglow come night-time.
These two malls especially stand out - with their towering facades of moving, coloured displays of flashy lights, images and digital art.
They are in sync with the Urban Redevelopment Authority's lighting masterplan that calls for exciting shopfronts and vibrant facades.
Its spokesman told The Sunday Times the plan for Orchard Road 'focuses on creating a revitalising and delightful shoppers' experience'.
But glitzy facades will have their detractors. Architect Aamer Taher, 48, is one. The Singapore Institute of Architects council member felt both malls have overdone the lighting in their bid to attract shoppers.
'It's all right if we are in Disneyland but a city should be soothing and pleasant. It should be more a glow and not a glare.'
Both malls have defended their facades, saying they add vibrancy to the streets and create ambience for shoppers.
For instance, the LED wall on Ion Orchard's curvy facade of glass and metal broadcast the National Day Parade and the Youth Olympic Games opening ceremony. Free popular movies are screened on the last Saturday of every month.
'During Christmas last year, snowflakes patterns lit up the facade, while National Day saw the entire exterior enveloped in fireworks and the national red and white colours,' a spokesman added.
Taking a contrary view to Mr Aamer's is Singapore Institute of Architects president Ashvinkumar Kantilal, 49, who likes the facades.
'They are funky and add character,' he said.
The URA's masterplan also provided for the lighting up of the streets and trees to create a sequential experience, its spokesman said.
New street lights were part of a $40 million makeover of Orchard Road completed early last year.
Love it or hate it, Orchard Central's glitzy facade stands out. -- ST FILE PHOTO
ST : City lights, a wondrous sight
Sep 5, 2010
City lights, a wondrous sight
The blueprint for the city's night lighting shapes up. Goh Chin Lian finds out how this was done
Light up, Singapore, went the masterplan's message.
And it has. The city's skyline has never looked so dazzling at night.
On special occasions like last month's Youth Olympic Games' opening and closing ceremonies, and the National Day Parade, shimmery beams shot the light fantastic from the top of buildings across Marina Bay and into the clouds.
This month's Formula One night race will also see buildings brightly lit for TV viewers here and around the world.
New buildings and structures designed to look good at night have also added a permanent sparkle to the bayfront skyline and nearby Central Business District (CBD).
They include the Marina Bay Sands integrated resort, Marina Bay Financial Centre and The Helix bridge, with programmable lights accentuating its double-helix steel structure. Also shining is the row of buildings forming the Fullerton Heritage dining and hotel belt, such as the Customs House and Clifford Pier.
The four-year-old night lighting masterplan is shaping up, an Urban Redevelopment Authority (URA) spokesman said.
She told The Sunday Times: 'The masterplan has succeeded in enhancing the night-time image of the city and in guiding the lighting of buildings and public spaces to be tasteful and elegant.'
Tastefulness and elegance are the agency's two guiding posts in approving lighting plans for the area, in contrast to some cities that may be more liberal in lighting up their buildings, she said.
Good lighting practices in the URA's books boil down to not flooding a building with light, but using the beams and colours to create interest or emphasise architectural features while playing with light and shadow.
And while it cautions discretion in using coloured lights which tend to lose their wow factor over time, it suggests cool colours (like white and blue) for high-rise office buildings, and warmer hues (like red and yellow) for low-rise structures.
It has approved 40 night lighting proposals so far, with a few more being assessed.
Architects interviewed feel the masterplan has been realised in the Marina Bay area.
Ms Ong Swee Hong, a lecturer of environment design at Temasek Polytechnic, said: 'We are now seeing a skyline that's very well-defined by lights.'
Other areas covered by the 2006 masterplan are the Singapore River, Orchard Road and Bugis-Bras Basah.
Ms Ong noted Singapore's increasing regard for lighting not only for safety and navigation, but also aesthetics. A turning point was the 1995 lighting plan for historic and institutional buildings in the civic district. Most of them, 105 in all, have been lit, the URA said.
They include the Fullerton Hotel, and the former City Hall and Supreme Court.
Singapore Institute of Architects president Ashvinkumar Kantilal lauded the coordinated approach taken early on to light up buildings fronting Marina Bay. Otherwise, a person hoping to appreciate the skyline would be bombarded with glare and blinking lights.
'When you are looking at a water-edge promenade from a distance, your eyes get distracted if the lights flicker in the background,' he said. 'It's difficult for the human eye to adapt to different levels and colours of lighting all at the same time.'
The amount of energy to light up a city is an environmental concern, but architect Chan Ee Mun, 35, thinks it is a matter of finding a balance.
'It's necessary to identify our city as we progress and to beautify the structures around us. It does bring a certain amount of excitement and joy,' said Mr Chan, a senior associate at design and architecture firm Woha.
The URA guides building owners and developers to use energy-efficient lights like compact metal halide lamps, LEDsand electrodeless lamps.
Architect Aamer Taher, a Singapore Institute of Architects council member, thinks that popular districts like Little India and Geylang could be better lit too. 'Seedy districts could take on a new life. Maybe Geylang should have more red lights,' he quipped.
Parks can gain from better lighting design too so they can be used at night, suggested Ms Ong. 'Our parks and public spaces are often badly illuminated, or perhaps, visually monotonous,' she said.
The National Parks Board's (NParks) lighting considerations include the theme of the park, maintenance costs and sensitivity to wildlife.
It said it has used creative lighting in Bedok Reservoir Park, one-north Park, as well as the Henderson Waves and Alexandra Arch bridges at the Southern Ridges.
To raise awareness of lighting design, Ms Ong will hold a lighting workshop next month at the Esplanade Park as part of Archifest, an annual architecture festival organised by the Singapore Institute of Architects.
Official financial support also fuelled the change that the masterplan provided for the skyline: Building owners in the CBD and Marina Bay areas received incentives to light up their buildings from the rooftop to the facade and sky gardens.
The incentives were additional gross floor area and cash grants capped at $500,000.
They have been given to 14 developments so far, including 78 Shenton Way and Maybank Singapore, the spokesman said.
Maybank spent about $3 million on LED lights that run on the outer edges of its 32-storey Battery Road building.
Out of several developments whose plans have been approved, the bank is the only one that has completed installing permanent lights that can be programmed for festive celebrations, the URA said.
While the lights for special occasions have wowed spectators, Mr Ashvinkumar warned against overkill, especially cannon lights that are so powerful they can be seen as far as Toa Payoh. 'It should not be done all year around, or you'd feel Batman is going to appear any moment,' he said.
chinlian@sph.com.sg
City lights, a wondrous sight
The blueprint for the city's night lighting shapes up. Goh Chin Lian finds out how this was done
Light up, Singapore, went the masterplan's message.
And it has. The city's skyline has never looked so dazzling at night.
On special occasions like last month's Youth Olympic Games' opening and closing ceremonies, and the National Day Parade, shimmery beams shot the light fantastic from the top of buildings across Marina Bay and into the clouds.
This month's Formula One night race will also see buildings brightly lit for TV viewers here and around the world.
New buildings and structures designed to look good at night have also added a permanent sparkle to the bayfront skyline and nearby Central Business District (CBD).
They include the Marina Bay Sands integrated resort, Marina Bay Financial Centre and The Helix bridge, with programmable lights accentuating its double-helix steel structure. Also shining is the row of buildings forming the Fullerton Heritage dining and hotel belt, such as the Customs House and Clifford Pier.
The four-year-old night lighting masterplan is shaping up, an Urban Redevelopment Authority (URA) spokesman said.
She told The Sunday Times: 'The masterplan has succeeded in enhancing the night-time image of the city and in guiding the lighting of buildings and public spaces to be tasteful and elegant.'
Tastefulness and elegance are the agency's two guiding posts in approving lighting plans for the area, in contrast to some cities that may be more liberal in lighting up their buildings, she said.
Good lighting practices in the URA's books boil down to not flooding a building with light, but using the beams and colours to create interest or emphasise architectural features while playing with light and shadow.
And while it cautions discretion in using coloured lights which tend to lose their wow factor over time, it suggests cool colours (like white and blue) for high-rise office buildings, and warmer hues (like red and yellow) for low-rise structures.
It has approved 40 night lighting proposals so far, with a few more being assessed.
Architects interviewed feel the masterplan has been realised in the Marina Bay area.
Ms Ong Swee Hong, a lecturer of environment design at Temasek Polytechnic, said: 'We are now seeing a skyline that's very well-defined by lights.'
Other areas covered by the 2006 masterplan are the Singapore River, Orchard Road and Bugis-Bras Basah.
Ms Ong noted Singapore's increasing regard for lighting not only for safety and navigation, but also aesthetics. A turning point was the 1995 lighting plan for historic and institutional buildings in the civic district. Most of them, 105 in all, have been lit, the URA said.
They include the Fullerton Hotel, and the former City Hall and Supreme Court.
Singapore Institute of Architects president Ashvinkumar Kantilal lauded the coordinated approach taken early on to light up buildings fronting Marina Bay. Otherwise, a person hoping to appreciate the skyline would be bombarded with glare and blinking lights.
'When you are looking at a water-edge promenade from a distance, your eyes get distracted if the lights flicker in the background,' he said. 'It's difficult for the human eye to adapt to different levels and colours of lighting all at the same time.'
The amount of energy to light up a city is an environmental concern, but architect Chan Ee Mun, 35, thinks it is a matter of finding a balance.
'It's necessary to identify our city as we progress and to beautify the structures around us. It does bring a certain amount of excitement and joy,' said Mr Chan, a senior associate at design and architecture firm Woha.
The URA guides building owners and developers to use energy-efficient lights like compact metal halide lamps, LEDsand electrodeless lamps.
Architect Aamer Taher, a Singapore Institute of Architects council member, thinks that popular districts like Little India and Geylang could be better lit too. 'Seedy districts could take on a new life. Maybe Geylang should have more red lights,' he quipped.
Parks can gain from better lighting design too so they can be used at night, suggested Ms Ong. 'Our parks and public spaces are often badly illuminated, or perhaps, visually monotonous,' she said.
The National Parks Board's (NParks) lighting considerations include the theme of the park, maintenance costs and sensitivity to wildlife.
It said it has used creative lighting in Bedok Reservoir Park, one-north Park, as well as the Henderson Waves and Alexandra Arch bridges at the Southern Ridges.
To raise awareness of lighting design, Ms Ong will hold a lighting workshop next month at the Esplanade Park as part of Archifest, an annual architecture festival organised by the Singapore Institute of Architects.
Official financial support also fuelled the change that the masterplan provided for the skyline: Building owners in the CBD and Marina Bay areas received incentives to light up their buildings from the rooftop to the facade and sky gardens.
The incentives were additional gross floor area and cash grants capped at $500,000.
They have been given to 14 developments so far, including 78 Shenton Way and Maybank Singapore, the spokesman said.
Maybank spent about $3 million on LED lights that run on the outer edges of its 32-storey Battery Road building.
Out of several developments whose plans have been approved, the bank is the only one that has completed installing permanent lights that can be programmed for festive celebrations, the URA said.
While the lights for special occasions have wowed spectators, Mr Ashvinkumar warned against overkill, especially cannon lights that are so powerful they can be seen as far as Toa Payoh. 'It should not be done all year around, or you'd feel Batman is going to appear any moment,' he said.
chinlian@sph.com.sg
ST Forum : Have an exit clause in property transactions
Sep 4, 2010
Have an exit clause in property transactions
THE Government has frequently introduced policies to cool the property market, which have implications on affordability.
Given this, it is worthwhile to introduce into legislation an exit clause in Option to Purchase agreements, so that sellers and buyers can avoid the costly legal process when one side has to back out as a result of a change in government policy.
Patrick Sio
Have an exit clause in property transactions
THE Government has frequently introduced policies to cool the property market, which have implications on affordability.
Given this, it is worthwhile to introduce into legislation an exit clause in Option to Purchase agreements, so that sellers and buyers can avoid the costly legal process when one side has to back out as a result of a change in government policy.
Patrick Sio
ST Forum : Don't penalise genuine upgraders
Sep 4, 2010
Don't penalise genuine upgraders
I REFER to Ms Tan Tien Li's letter on Thursday ("Dream home, genuine upgrader's worry").
I applaud the Government for giving the public another option to purchase Design, Build and Sell Scheme flats from the HDB (besides the executive condominiums), but I am concerned about the latest property policies.
I, too, have the genuine upgrader's dream. I want to move to an executive condominium with facilities for the children. However, with the recent announcement of policies to curb speculation, I will be penalised. Given the 70 per cent loan-to-value limit, I must sell off my current executive maisonette in order to enjoy the 80 per cent loan rate.
While the aim of curbing property speculation is good and welcomed, we have to also consider the interests of those who are sincerely looking to improve their families' living standards.
I urge the Government to review these policies to differentiate between speculators and genuine upgraders.
Teo Mui Mui (Ms)
Don't penalise genuine upgraders
I REFER to Ms Tan Tien Li's letter on Thursday ("Dream home, genuine upgrader's worry").
I applaud the Government for giving the public another option to purchase Design, Build and Sell Scheme flats from the HDB (besides the executive condominiums), but I am concerned about the latest property policies.
I, too, have the genuine upgrader's dream. I want to move to an executive condominium with facilities for the children. However, with the recent announcement of policies to curb speculation, I will be penalised. Given the 70 per cent loan-to-value limit, I must sell off my current executive maisonette in order to enjoy the 80 per cent loan rate.
While the aim of curbing property speculation is good and welcomed, we have to also consider the interests of those who are sincerely looking to improve their families' living standards.
I urge the Government to review these policies to differentiate between speculators and genuine upgraders.
Teo Mui Mui (Ms)
ST Forum : Nothing wrong in having it both ways
Sep 4, 2010
PROPERTY
Nothing wrong in having it both ways
ASSISTANT money editor Fiona Chan analysed the Government's tough measures to cool the red-hot property market well in her commentary on Tuesday (''Targeted' cooling has wider implications').
Her assessment suggests that almost every home owner - upgraders, downgraders or simply people who want to make an HDB-to-HDB flat switch - is affected bar two categories: the wealthy and owners who own only one home and stay in it for the rest of their lives.
Most of us are not in the wealthy club and many of us move home at least once, for several reasons.
The multiple restrictions on home ownership affect most Singaporeans. Most of us aspire to own a dream home and we work for it.
A dream home could be a luxurious condominium or a modest HDB flat located near parents or children's schools.
The new property measures, as Ms Chan pointed out, target those who already own a home and are buying another for investment or speculative purposes.
Is it fair to inconvenience the majority of us who are not speculative?
What if we have plans to use property investment for future retirement or future educational funds for our children?
Should such plans be discouraged?
With the influx of foreigners increasing the pressure on housing, demand may well negate the economic gain ordinary Singaporeans should enjoy because of the new restrictions.
Why shouldn't Singaporeans be allowed to use property investment as a vehicle for growing wealth for future needs while living a modest life as an HDB dweller?
Many of us who are not wayward speculators will not benefit from the many restrictions on home ownership.
Joan Teo (Ms)
PROPERTY
Nothing wrong in having it both ways
ASSISTANT money editor Fiona Chan analysed the Government's tough measures to cool the red-hot property market well in her commentary on Tuesday (''Targeted' cooling has wider implications').
Her assessment suggests that almost every home owner - upgraders, downgraders or simply people who want to make an HDB-to-HDB flat switch - is affected bar two categories: the wealthy and owners who own only one home and stay in it for the rest of their lives.
Most of us are not in the wealthy club and many of us move home at least once, for several reasons.
The multiple restrictions on home ownership affect most Singaporeans. Most of us aspire to own a dream home and we work for it.
A dream home could be a luxurious condominium or a modest HDB flat located near parents or children's schools.
The new property measures, as Ms Chan pointed out, target those who already own a home and are buying another for investment or speculative purposes.
Is it fair to inconvenience the majority of us who are not speculative?
What if we have plans to use property investment for future retirement or future educational funds for our children?
Should such plans be discouraged?
With the influx of foreigners increasing the pressure on housing, demand may well negate the economic gain ordinary Singaporeans should enjoy because of the new restrictions.
Why shouldn't Singaporeans be allowed to use property investment as a vehicle for growing wealth for future needs while living a modest life as an HDB dweller?
Many of us who are not wayward speculators will not benefit from the many restrictions on home ownership.
Joan Teo (Ms)
ST Forum : Rule applies to local and overseas properties
Sep 4, 2010
Rule applies to local and overseas properties
WE THANK Mr James Koh for his letter on Wednesday ('Unfair'). Mr Koh commented that it is unfair for permanent residents to be able to own private properties overseas during the minimum occupation period for HDB flats while Singaporeans cannot own local private properties during the minimum period. The measure to disallow the concurrent ownership of private properties and non-subsidised HDB flats during the minimum occupation period introduced on Monday applies to local and overseas private properties.
Lily Wong Jee Choo (Mrs)
Deputy Director (policy and property
Rule applies to local and overseas properties
WE THANK Mr James Koh for his letter on Wednesday ('Unfair'). Mr Koh commented that it is unfair for permanent residents to be able to own private properties overseas during the minimum occupation period for HDB flats while Singaporeans cannot own local private properties during the minimum period. The measure to disallow the concurrent ownership of private properties and non-subsidised HDB flats during the minimum occupation period introduced on Monday applies to local and overseas private properties.
Lily Wong Jee Choo (Mrs)
Deputy Director (policy and property
ST : New rules 'unlikely to hit luxury homes'
Sep 4, 2010
New rules 'unlikely to hit luxury homes'
Prices of high-end projects have not peaked and are still reasonable, says developer
By Harsha Jethnani
THE new rules aimed at cooling the property market are not likely to affect high-end homes, according to a local developer.
Wing Tai Holdings deputy chairman Edmund Cheng said yesterday: 'Looking at today's prices, the high-end market and prices of very luxurious projects have not reached the last peak yet.'
He also believes there will be buyers, both locally and especially from overseas, for pricey properties.
'I think that we are still very reasonable,' he said, when comparing local prices with those in Hong Kong or Beijing, especially considering the economic and living standards in Singapore.
Mr Cheng said the new measures were 'timely', as the price rises of mass-market homes were not sustainable.
But significant price falls may not occur as low interest rates pose fewer difficulties for financing, he added.
Mr Cheng said that, unlike in the past, price bids from developers for future tenders could adjust downwards. So far, developers have been bidding at very high prices that cannot allow for margins of error.
He was speaking at a briefing to announce the upcoming launch of remaining units at Wing Tai's resort-style Belle Vue Residences in Oxley Walk. A soft launch of the development had taken place over a year ago.
'There is no better timing than now,' he said of the upcoming launch.
A total of 109 units have been sold so far at the 167-unit development at prices between $2,000 per sq ft (psf) and $2,700 psf. The remaining units will be set at $2,300 psf to $2,800 psf.
Mr Cheng told the briefing that foreigners, mainly Chinese, Malaysians and Indonesians, had taken up about 52 per cent of the units sold.
Sizes of a three-bedroom unit start from 1,600 sq ft, and those of four-bedroom units are from 2,000 sq ft.
The development is designed by Japanese architect Toyo Ito and will be ready for occupation in the coming weeks, Wing Tai said.
harshamj@sph.com.sg
New rules 'unlikely to hit luxury homes'
Prices of high-end projects have not peaked and are still reasonable, says developer
By Harsha Jethnani
THE new rules aimed at cooling the property market are not likely to affect high-end homes, according to a local developer.
Wing Tai Holdings deputy chairman Edmund Cheng said yesterday: 'Looking at today's prices, the high-end market and prices of very luxurious projects have not reached the last peak yet.'
He also believes there will be buyers, both locally and especially from overseas, for pricey properties.
'I think that we are still very reasonable,' he said, when comparing local prices with those in Hong Kong or Beijing, especially considering the economic and living standards in Singapore.
Mr Cheng said the new measures were 'timely', as the price rises of mass-market homes were not sustainable.
But significant price falls may not occur as low interest rates pose fewer difficulties for financing, he added.
Mr Cheng said that, unlike in the past, price bids from developers for future tenders could adjust downwards. So far, developers have been bidding at very high prices that cannot allow for margins of error.
He was speaking at a briefing to announce the upcoming launch of remaining units at Wing Tai's resort-style Belle Vue Residences in Oxley Walk. A soft launch of the development had taken place over a year ago.
'There is no better timing than now,' he said of the upcoming launch.
A total of 109 units have been sold so far at the 167-unit development at prices between $2,000 per sq ft (psf) and $2,700 psf. The remaining units will be set at $2,300 psf to $2,800 psf.
Mr Cheng told the briefing that foreigners, mainly Chinese, Malaysians and Indonesians, had taken up about 52 per cent of the units sold.
Sizes of a three-bedroom unit start from 1,600 sq ft, and those of four-bedroom units are from 2,000 sq ft.
The development is designed by Japanese architect Toyo Ito and will be ready for occupation in the coming weeks, Wing Tai said.
harshamj@sph.com.sg
ST : Errant flat buyers face stiff penalties
Sep 4, 2010
Errant flat buyers face stiff penalties
Lying about ownership of overseas properties could land one in jail
By Esther Teo
PEOPLE who buy resale HDB flats face stiff penalties, including jail time, if they make false declarations about other property they own overseas.
The Housing Board (HDB) said yesterday that dishonest owners could be fined up to $5,000, jailed for up to six months or have their flats compulsorily acquired.
The penalties are part of sweeping new ownership rules announced on Monday.
Anyone who buys an HDB resale flat on or after Aug 30 must sell any additional private property - owned here or offshore - within six months.
Owners of non-subsidised HDB flats are affected as well. If they have not met the minimum occupation period (MOP) of five years, they will not be allowed to buy a private property here or overseas.
Applicants for an HDB resale flat who own or have an interest in any other property - here or overseas - must declare that interest in their application form.
If the property is overseas, applicants must show that it has been sold within six months of buying the HDB resale flat.
Even before the new rules, subsidised flat buyers had to declare that they did not own homes here or abroad. They were also barred from owning an HDB flat and private property - local or overseas - within the MOP as well.
'To ensure parity in the treatment of all HDB flat buyers, we subject buyers of non-subsidised flats to the same rule with effect from Aug 30 this year,' the HDB said.
'This helps to reinforce the long-term owner-occupation objective of HDB flats. All flat owners are allowed to buy a private property after their MOP.'
Breaking the rules could be costly. Making a false declaration could bring fines of up to $5,000 or up to six months in jail.
If the false declaration is discovered before the sale closes, the HDB can cancel the application and the sellers can seek redress from the buyer.
If the false declaration is discovered after the sale has been completed, the HDB can compulsorily acquire the flat.
These penalties are similar to existing ones homeowners face if they are found to own both a private property and a subsidised flat - such as a build-to-order home - concurrently during their MOP.
The HDB said it will be flexible on a case-by-case basis.
Experts say that while the penalties will be a deterrent, tracking homes bought overseas during the MOP would be difficult.
'The world out there is very different from Singapore and the question is how to enforce these rules overseas,' said HSR chief executive Patrick Liew.
He added that the rules also penalised Singaporeans from capitalising on good investment opportunities overseas.
A potential home buyer might have to place his $50,000 savings in a bank even though he might be able to invest in real estate in countries like Malaysia or the United States, he said.
esthert@sph.com.sg
Errant flat buyers face stiff penalties
Lying about ownership of overseas properties could land one in jail
By Esther Teo
PEOPLE who buy resale HDB flats face stiff penalties, including jail time, if they make false declarations about other property they own overseas.
The Housing Board (HDB) said yesterday that dishonest owners could be fined up to $5,000, jailed for up to six months or have their flats compulsorily acquired.
The penalties are part of sweeping new ownership rules announced on Monday.
Anyone who buys an HDB resale flat on or after Aug 30 must sell any additional private property - owned here or offshore - within six months.
Owners of non-subsidised HDB flats are affected as well. If they have not met the minimum occupation period (MOP) of five years, they will not be allowed to buy a private property here or overseas.
Applicants for an HDB resale flat who own or have an interest in any other property - here or overseas - must declare that interest in their application form.
If the property is overseas, applicants must show that it has been sold within six months of buying the HDB resale flat.
Even before the new rules, subsidised flat buyers had to declare that they did not own homes here or abroad. They were also barred from owning an HDB flat and private property - local or overseas - within the MOP as well.
'To ensure parity in the treatment of all HDB flat buyers, we subject buyers of non-subsidised flats to the same rule with effect from Aug 30 this year,' the HDB said.
'This helps to reinforce the long-term owner-occupation objective of HDB flats. All flat owners are allowed to buy a private property after their MOP.'
Breaking the rules could be costly. Making a false declaration could bring fines of up to $5,000 or up to six months in jail.
If the false declaration is discovered before the sale closes, the HDB can cancel the application and the sellers can seek redress from the buyer.
If the false declaration is discovered after the sale has been completed, the HDB can compulsorily acquire the flat.
These penalties are similar to existing ones homeowners face if they are found to own both a private property and a subsidised flat - such as a build-to-order home - concurrently during their MOP.
The HDB said it will be flexible on a case-by-case basis.
Experts say that while the penalties will be a deterrent, tracking homes bought overseas during the MOP would be difficult.
'The world out there is very different from Singapore and the question is how to enforce these rules overseas,' said HSR chief executive Patrick Liew.
He added that the rules also penalised Singaporeans from capitalising on good investment opportunities overseas.
A potential home buyer might have to place his $50,000 savings in a bank even though he might be able to invest in real estate in countries like Malaysia or the United States, he said.
esthert@sph.com.sg
ST : Police raids mop up sleaze in Duxton area
Sep 4, 2010
Police raids mop up sleaze in Duxton area
Eclectic mix of tenants now hope area will regain its vibrancy
By Teh Joo Lin & Mavis Toh
THE sleaze that oozed out of the pubs, lounges and karaoke clubs in the Duxton area has just about been cleaned up.
Those public entertainment outlets, which began congregating there about five years ago, have been sent packing, following a slew of police raids.
At the peak, around 2008, about 110 such establishments filled the precinct between Neil and Maxwell roads.
As at July, only about 60 were left.
In their place, an eclectic mix of tenants have moved in - restaurants, cafes and dance studios among them.
When contacted, police spokesman Lau Kian Keong said about 50 public entertainment licences, required for the nightspots to operate, were revoked after 'breaches in licensing conditions'.
The police did not specify the nature of those breaches, but nightspot operators are required to keep the nocturnal fun clean on their premises.
It is apparent many did not.
On a typical evening three years ago, scores of Filipinas would be milling about. Valets enjoyed brisk business. Pushing through the doors of any pub there, customers - overwhelmingly male - would be ambushed by bevies of women. Behind those doors, women were summarily exposing their breasts. At least seven Filipinas were caught doing so between 2008 and last year and were fined.
Booze-fuelled fights and din were common, and neither the area's residents nor Member of Parliament Christopher de Souza liked what they saw.
He was moved to report to Parliament that an evening drive along Duxton Road and Duxton Hill made it clear that prostitutes were operating 'well beyond the artificial borders of Geylang'.
Now, 21/2 years on, he is glad the place has been cleaned up, given that it sits next to the Central Business District, and that thousands of residents have moved into the nearby 50-storey public housing development, Pinnacle@Duxton.
With the unsavoury bits gone, he said he hoped to see the area, with its two- and three-storey conserved shophouses, resume its vibrancy.
This may take time.
When The Straits Times visited the place this week, 'For Rent/Sale' banners hung from at least six shopfronts.
Mr Ricky Chua, the president of the Tanjong Pagar Business Association and owner of a pub in Duxton, said some rogue nightspot operators had allowed vice in their premises.
But with there having been as many as three police raids a week, 'Duxton is now peaceful and there hasn't been a fight for an entire year', he said.
But the bad image seems to have stuck. The takings of pubs which are still there have plunged by up to 70 per cent.
Another pub owner who has been in Duxton for a decade said the frequent raids have turned customers off: 'We're struggling to get by. Every day, the place is quiet. The only busy day is Friday.'
Rentals have dipped. A 2,100 sq ft unit which used to cost $21,000 to rent in 2008, when the influx of girly bars drove rentals up, can now be leased for $8,000 a month, said property agents.
Even with lower rentals, some businesses are wary about moving in and being housed between bars. Retail tenants are worried about low human traffic.
But some businesses do want in.
They include advertising agencies, fine-dining restaurants, cafes and a traditional Chinese medicine (TCM) outlet.
TCM physician Zhang Mao Ji, who opened Long Zhong, a Chinese medicine clinic, a year ago in what used to be a bar, said Duxton's location near Chinatown and Tanjong Pagar drew him there.
His manager Sharon Tham, 47, said: 'The place is decent now and you don't see raids at all. That's why we dare to use a glass door for the shopfront. Previously, we would have been warned that a glass door would be smashed in a brawl.'
Ms Celina Tan, owner of Celina's GastroBar, which moved in 11 months ago, is another tenant who is upbeat about the future of the area post clean-up: 'The area is quaint. There are fewer bars now and an interesting mix of businesses.'
She said the working crowd in Tanjong Pagar and Shenton Way now made up Duxton's clientele base.
As the Duxton landscape changes, the pubs which were there before the sleazy bars came in hope they will not get squeezed out of business.
Mr Chua said: 'I can understand the concern of residents five years ago because too much mayhem was going on. Since then, it has been cleaned up.'
He said the level of sleaze is now negligible and the last few errant pubs are on the verge of closure, adding: 'We hope the authorities can give us the space to breathe and do business. It's not fair for the rest that, because of one or two bad apples, everyone suffers the consequences. We're still living on a knife's edge.'
joolin@sph.com.sg
mavistoh@sph.com.sg
The vice may be gone, but the bad image seems to be stuck. The takings of pubs in the Duxton area which are still there have plunged by up to 70 per cent. -- ST PHOTO: NEO XIAOBIN
Police raids mop up sleaze in Duxton area
Eclectic mix of tenants now hope area will regain its vibrancy
By Teh Joo Lin & Mavis Toh
THE sleaze that oozed out of the pubs, lounges and karaoke clubs in the Duxton area has just about been cleaned up.
Those public entertainment outlets, which began congregating there about five years ago, have been sent packing, following a slew of police raids.
At the peak, around 2008, about 110 such establishments filled the precinct between Neil and Maxwell roads.
As at July, only about 60 were left.
In their place, an eclectic mix of tenants have moved in - restaurants, cafes and dance studios among them.
When contacted, police spokesman Lau Kian Keong said about 50 public entertainment licences, required for the nightspots to operate, were revoked after 'breaches in licensing conditions'.
The police did not specify the nature of those breaches, but nightspot operators are required to keep the nocturnal fun clean on their premises.
It is apparent many did not.
On a typical evening three years ago, scores of Filipinas would be milling about. Valets enjoyed brisk business. Pushing through the doors of any pub there, customers - overwhelmingly male - would be ambushed by bevies of women. Behind those doors, women were summarily exposing their breasts. At least seven Filipinas were caught doing so between 2008 and last year and were fined.
Booze-fuelled fights and din were common, and neither the area's residents nor Member of Parliament Christopher de Souza liked what they saw.
He was moved to report to Parliament that an evening drive along Duxton Road and Duxton Hill made it clear that prostitutes were operating 'well beyond the artificial borders of Geylang'.
Now, 21/2 years on, he is glad the place has been cleaned up, given that it sits next to the Central Business District, and that thousands of residents have moved into the nearby 50-storey public housing development, Pinnacle@Duxton.
With the unsavoury bits gone, he said he hoped to see the area, with its two- and three-storey conserved shophouses, resume its vibrancy.
This may take time.
When The Straits Times visited the place this week, 'For Rent/Sale' banners hung from at least six shopfronts.
Mr Ricky Chua, the president of the Tanjong Pagar Business Association and owner of a pub in Duxton, said some rogue nightspot operators had allowed vice in their premises.
But with there having been as many as three police raids a week, 'Duxton is now peaceful and there hasn't been a fight for an entire year', he said.
But the bad image seems to have stuck. The takings of pubs which are still there have plunged by up to 70 per cent.
Another pub owner who has been in Duxton for a decade said the frequent raids have turned customers off: 'We're struggling to get by. Every day, the place is quiet. The only busy day is Friday.'
Rentals have dipped. A 2,100 sq ft unit which used to cost $21,000 to rent in 2008, when the influx of girly bars drove rentals up, can now be leased for $8,000 a month, said property agents.
Even with lower rentals, some businesses are wary about moving in and being housed between bars. Retail tenants are worried about low human traffic.
But some businesses do want in.
They include advertising agencies, fine-dining restaurants, cafes and a traditional Chinese medicine (TCM) outlet.
TCM physician Zhang Mao Ji, who opened Long Zhong, a Chinese medicine clinic, a year ago in what used to be a bar, said Duxton's location near Chinatown and Tanjong Pagar drew him there.
His manager Sharon Tham, 47, said: 'The place is decent now and you don't see raids at all. That's why we dare to use a glass door for the shopfront. Previously, we would have been warned that a glass door would be smashed in a brawl.'
Ms Celina Tan, owner of Celina's GastroBar, which moved in 11 months ago, is another tenant who is upbeat about the future of the area post clean-up: 'The area is quaint. There are fewer bars now and an interesting mix of businesses.'
She said the working crowd in Tanjong Pagar and Shenton Way now made up Duxton's clientele base.
As the Duxton landscape changes, the pubs which were there before the sleazy bars came in hope they will not get squeezed out of business.
Mr Chua said: 'I can understand the concern of residents five years ago because too much mayhem was going on. Since then, it has been cleaned up.'
He said the level of sleaze is now negligible and the last few errant pubs are on the verge of closure, adding: 'We hope the authorities can give us the space to breathe and do business. It's not fair for the rest that, because of one or two bad apples, everyone suffers the consequences. We're still living on a knife's edge.'
joolin@sph.com.sg
mavistoh@sph.com.sg
The vice may be gone, but the bad image seems to be stuck. The takings of pubs in the Duxton area which are still there have plunged by up to 70 per cent. -- ST PHOTO: NEO XIAOBIN
Subscribe to:
Posts (Atom)
Posts
