16 Feb 2011,
Households smaller but more affluent
Changes reflect social transformation in Singapore, says minister
By Andrea Ong
HOUSEHOLDS here have grown smaller over the last decade, while the proportion of families and individuals who now live in condominiums and private flats has nearly doubled in the same period.
These trends were revealed in the latest Census 2010 data on households and housing released yesterday.
And the picture it presented showed that the family unit here has shrunk and grown older - but is generally more affluent compared to 11 years ago.
According to the Census, there were 1.15 million resident households - Singaporeans and permanent residents - last year, a 25 per cent increase from 2000.
The average household size last year was 3.5 people, a drop from 3.7 in 2000.
Data showed that households comprising three or fewer family members made up more than half the total resident households here last year - an increase from 44.5 per cent in 2000.
Commenting yesterday, Community Development, Youth and Sports Minister Vivian Balakrishnan said the changes reflected the 'long-term social transformation occurring in Singapore, lower fertility, an ageing population and more job opportunities in the region'.
'The result of all this is the household size will shrink,' he said. But efforts will continue to be made to ensure 'the family remains the centrepiece of our lives'.
Agreeing, analysts said matters have not been helped by married couples not having children or having fewer children. Singapore's total fertility rate hit a historic low of 1.16 last year.
Explaining the smaller household size, National University of Singapore (NUS) sociologist Tan Ern Ser said it could be due to a growing number of couples and singles across all age groups preferring and having the means to live alone: 'Sometimes, couples may prefer to live with their parents. But it may be more practical to live on their own near their workplace or school of choice.'
The drop in household size was most apparent among the Chinese, where the average size fell to 3.4 from 3.6 in 2000.
The average Indian household size fell to 3.6 from 3.7 in 2000, while it held steady for Malay households at 4.2.
Still, the experts say the smaller size is not cause for concern, unless it leads to social isolation and less support from other family members and caregivers.
'There should not be a problem if they are socially engaged or if they remain integral parts of their families,' said Institute of Policy Studies (IPS) demographer Yap Mui Teng.
The Census also showed a larger proportion of families and individuals lived in condominiums, private flats and landed property compared to 2000.
Last year, 16.9 per cent of households did so, compared to 11.4 per cent in 2000.
The sharpest rise was for those living in condominiums and private flats: 11.2 per cent were in such housing compared to 6.3 per cent in 2000.
While the proportion living in HDB flats declined by 5.3 percentage points to 82.4 per cent last year, five-room and executive flats comprised the only public housing category to see an increase.
The rise in the number living in private housing is possibly a sign of growing affluence, said Dr Yap. It could also be due to a larger supply of such housing types.
It is also part of 'the Singapore dream' to cross over from public to private housing, added Professor Tan.
Other signs of affluence were in the rise in household income among ethnic groups. The median monthly household income from work increased from $3,640 in 2000 to $5,000 last year.
Indians overtook the Chinese as the ethnic group earning the highest household income. Last year, Indian households earned a median monthly income of $5,370. This compares to $5,100 for Chinese and $3,844 for Malay households.
In 2000, Chinese households were the top earners with a median monthly income of $3,880. The shift is probably tied to the growth in the number of better-educated Indian immigrants, said Dr Yap.
Nearly half of married couples last year were also drawing a dual income, compared to 41 per cent in 2000.
The data also pointed to the rise of the professional, well-off single living alone.
One-person households saw the largest growth in percentage points among different household sizes: 12.2 per cent of households had one member last year, compared to 8.2 per cent in 2000.
More than half of them were single, and almost half lived in private housing or HDB flats with at least four rooms, compared to 30.3 per cent in 2000.
This group is likely to grow, said NUS sociologist Paulin Straughan.
Assessing the trends, she said they gave an indication of the future: 'In 20 to 30 years' time, there will be a big chunk of the elderly population living alone, and they will be quite happy to do so. But at some point, they will need support.'
This has implications on government support structures for the elderly, which are 'hinged very much on family'.
Both she and IPS research fellow Kang Soon Hock called for a change in the support strategies. These include more community support facilities for the elderly and more step-down care options such as retirement villages.
andreao@sph.com.sg
Wednesday, February 16, 2011
ST : Punggol site surprises with $1.02b top bid
16 Feb 2011,
Punggol site surprises with $1.02b top bid
Analysts say bids reflect developers' continuing hunger for unique sites
By Cheryl Lim
A PRIME Punggol waterfront site has attracted a surprisingly high tender of $1.02 billion, amid a fierce bidding battle between seven development groups.
Analysts had predicted that the 30ha plot at Punggol Central and Punggol Walk would attract plenty of interest but even they were surprised by the response.
The top bid - it was lodged by a joint venture comprising Frasers Centrepoint, Far East Organization and Sekisui House - works out to $753 per square foot, well above the $450 psf predicted.
The bid was also more than four times as high as the lowest at $250 million, which was submitted by Mezzo Development.
It was 20 per cent ahead of the $850 million second-place bid submitted by a joint venture between Mr Pua Seck Guan, Osim International founder Ron Sim and QingDao Construction.
Keppel Group was next with a $786 million bid, CapitaLand and CapitaMalls Asia bid $764 million, while Singapore Press Holdings teamed up with United Engineers with an offer of $693 million. Two GuocoLand units jointly tendered $681 million.
The winning group said yesterday that it wanted to build a waterfront development with about 680 flats with water views and a shopping mall with an estimated 365,000 sq ft of lettable space.
The development would be integrated with the upcoming town square and riverside promenade.
The developer will have to complete the project within seven years.
Credo Real Estate executive director Ong Teck Hui said the top bid was an optimistic one that leveraged on the long-term prospects of the blossoming new town.
Mr Nicholas Mak, executive director of research and consultancy at SLP International, said the bids reflected the fact that developers are still hungry for attractive sites, especially those with unique selling points.
Mr Mak said the healthy interest from developers could also be attributed to a number of different factors.
He said the winner of the tender would be able to lay claim to the first mixed-use site to be built by private developers. The commercial element would allow the site to be developed into the first retail mall in Punggol, giving a first-mover advantage in the up-and-coming residential area.
'Punggol has an expanding young middle-class population. Some of the HDB flats are more than five years old. Therefore, there could be a healthy upgraders demand for private homes in this housing estate,' said Mr Mak.
Mr Ong agreed: 'Pricing for residential and retail rentals can be expected to be optimistic given the site's prime location next to the Punggol MRT station, proximity to the bus interchange, schools and other amenities.'
cherlim@sph.com.sg
Punggol site surprises with $1.02b top bid
Analysts say bids reflect developers' continuing hunger for unique sites
By Cheryl Lim
A PRIME Punggol waterfront site has attracted a surprisingly high tender of $1.02 billion, amid a fierce bidding battle between seven development groups.
Analysts had predicted that the 30ha plot at Punggol Central and Punggol Walk would attract plenty of interest but even they were surprised by the response.
The top bid - it was lodged by a joint venture comprising Frasers Centrepoint, Far East Organization and Sekisui House - works out to $753 per square foot, well above the $450 psf predicted.
The bid was also more than four times as high as the lowest at $250 million, which was submitted by Mezzo Development.
It was 20 per cent ahead of the $850 million second-place bid submitted by a joint venture between Mr Pua Seck Guan, Osim International founder Ron Sim and QingDao Construction.
Keppel Group was next with a $786 million bid, CapitaLand and CapitaMalls Asia bid $764 million, while Singapore Press Holdings teamed up with United Engineers with an offer of $693 million. Two GuocoLand units jointly tendered $681 million.
The winning group said yesterday that it wanted to build a waterfront development with about 680 flats with water views and a shopping mall with an estimated 365,000 sq ft of lettable space.
The development would be integrated with the upcoming town square and riverside promenade.
The developer will have to complete the project within seven years.
Credo Real Estate executive director Ong Teck Hui said the top bid was an optimistic one that leveraged on the long-term prospects of the blossoming new town.
Mr Nicholas Mak, executive director of research and consultancy at SLP International, said the bids reflected the fact that developers are still hungry for attractive sites, especially those with unique selling points.
Mr Mak said the healthy interest from developers could also be attributed to a number of different factors.
He said the winner of the tender would be able to lay claim to the first mixed-use site to be built by private developers. The commercial element would allow the site to be developed into the first retail mall in Punggol, giving a first-mover advantage in the up-and-coming residential area.
'Punggol has an expanding young middle-class population. Some of the HDB flats are more than five years old. Therefore, there could be a healthy upgraders demand for private homes in this housing estate,' said Mr Mak.
Mr Ong agreed: 'Pricing for residential and retail rentals can be expected to be optimistic given the site's prime location next to the Punggol MRT station, proximity to the bus interchange, schools and other amenities.'
cherlim@sph.com.sg
ST : Work starts on next phase of Fusionopolis
16 Feb 2011,
Work starts on next phase of Fusionopolis
WORK has started on the next phase of technology and research hub Fusionopolis at one-north in Buona Vista.
Two new towers - 18 storeys and 11 storeys respectively - will be built at the junction of Fusionopolis Way and Ayer Rajah Avenue, in what will become Fusionopolis Phase 2A.
Industrial landlord JTC Corporation, which is overseeing the development of one-north, has called a tender for the construction and completion of all the works for both towers, it said yesterday.
JTC aims to develop Fusionopolis Phase 2A into a research node 'that will nurture a vibrant research community', it added.
To this end, Phase 2A will take up a 1.04ha site with an approximate gross floor area of 904,168 sq ft. This will include a multi-storey business park, wet/dry laboratories and office areas.
JTC has previously said that Phase 2A, which will feature Singapore's largest R&D clean-room facility, should be ready by 2013.
Phase 1 was officially opened in October 2008 and Phase 2B was completed early this year.
JTC is planning to launch the site for Phase 3 by the end of this month.
Work starts on next phase of Fusionopolis
WORK has started on the next phase of technology and research hub Fusionopolis at one-north in Buona Vista.
Two new towers - 18 storeys and 11 storeys respectively - will be built at the junction of Fusionopolis Way and Ayer Rajah Avenue, in what will become Fusionopolis Phase 2A.
Industrial landlord JTC Corporation, which is overseeing the development of one-north, has called a tender for the construction and completion of all the works for both towers, it said yesterday.
JTC aims to develop Fusionopolis Phase 2A into a research node 'that will nurture a vibrant research community', it added.
To this end, Phase 2A will take up a 1.04ha site with an approximate gross floor area of 904,168 sq ft. This will include a multi-storey business park, wet/dry laboratories and office areas.
JTC has previously said that Phase 2A, which will feature Singapore's largest R&D clean-room facility, should be ready by 2013.
Phase 1 was officially opened in October 2008 and Phase 2B was completed early this year.
JTC is planning to launch the site for Phase 3 by the end of this month.
ST : Private home sales feeling the chill of cooling measures
16 Feb 2011,
Private home sales feeling the chill of cooling measures
January numbers down 11%, but still higher than expected by analysts
By Esther Teo
PRIVATE home sales stayed buoyant last month, but experts believe the cooling measures imposed in the middle of the month will likely take some of the heat out of the market.
That will not be apparent until this month's numbers are released next month, but figures out yesterday have given the industry plenty to digest.
They showed that 1,189 new units were sold last month, 11 per cent down on December and nearly 40 per cent lower than November, but higher than expected by market watchers.
If sales at executive condominium estates such as Prive and Austville Residences were included, last month's sales would be 1,534 units.
But early signs have emerged that the tougher new rules, which include a sellers' stamp duty of up to 16 per cent, might have dampened sales activity and prompted some buyers to rethink their purchases.
Mr Li Hiaw Ho, executive director of CB Richard Ellis (CBRE) Research, can point to about 30 cancellations for units at new launches at The Tennery, Robinson Suites and the Prive last month.
Last month's lower sales could also be due to the measures weeding out purchases by short-term investors. Genuine buyers who bought either for occupation or long-term investment were likely to have made up January's figures, said Mr Li.
Jones Lang LaSalle's (JLL) head of research for South-east Asia, Dr Chua Yang Liang, added that new projects launched last month generally saw a take-up rate of under 50 per cent.
But Spottiswoode 18 and Loft@Holland, which have a large number of so-called shoebox apartments of less than 500 sq ft, were some of the exceptions, with more than 80 per cent of units launched last month snapped up.
These small-sized flats saw robust sales as their lower overall price attracts both owner-occupiers and investors, said Mr Png Poh Soon, Knight Frank's head of research and consultancy.
Most homes sold last month were in the suburban and city fringe areas. The city fringe was especially popular, with sales up 42 per cent to 401 units compared with December's numbers.
'The provides support...to our view that prime properties are likely to see better performances this year as savvy investors return to pick up bargains in this segment of the market,' said JLL's Dr Chua.
The luxury market also enjoyed a fair level of interest, particularly projects that were newly completed or approaching completion, said CBRE's Mr Li.
The most expensive properties sold last month were three units of Scotts Square, which went for a median price of $4,621 per sq ft (psf), and a unit of The Orchard Residences at $4,258 psf.
OrangeTee Research, however, found that islandwide median prices inched up 1.8 per cent to $1,573 psf from the previous month. This could be due to the large number of shoebox apartments being sold, which generally have a relatively higher psf price.
Experts say that current market sentiment may not be easily subdued in the short term as the vibrant buying has been driven largely by record low interest rates and an economy flush with cash.
The brakes might be applied when interest rates start to rise and an increase in supply enters the market in the next few quarters from the recent government land sales, said Ms Christine Sun, senior manager at Savills Research & Consultancy.
'As it stands, the cumulative units launched but unsold have been increasing over the past few months, indicating that supply has already started to outstrip demand...Therefore, some downward pressure on mass-market home prices could be expected in the months ahead,' she said.
Knight Frank's Mr Poh estimates that between 800 and 900 homes will be bought this month. Propnex chief executive Mohamed Ismail expects close to 1,000, as almost 500 units have already been sold, he said.
Last month's top-selling projects included Spottiswoode 18, with 204 units sold at a median price of $1,992 psf, and Canberra Residences, where 155 flats went at a median price of $831 psf.
esthert@sph.com.sg
Private home sales feeling the chill of cooling measures
January numbers down 11%, but still higher than expected by analysts
By Esther Teo
PRIVATE home sales stayed buoyant last month, but experts believe the cooling measures imposed in the middle of the month will likely take some of the heat out of the market.
That will not be apparent until this month's numbers are released next month, but figures out yesterday have given the industry plenty to digest.
They showed that 1,189 new units were sold last month, 11 per cent down on December and nearly 40 per cent lower than November, but higher than expected by market watchers.
If sales at executive condominium estates such as Prive and Austville Residences were included, last month's sales would be 1,534 units.
But early signs have emerged that the tougher new rules, which include a sellers' stamp duty of up to 16 per cent, might have dampened sales activity and prompted some buyers to rethink their purchases.
Mr Li Hiaw Ho, executive director of CB Richard Ellis (CBRE) Research, can point to about 30 cancellations for units at new launches at The Tennery, Robinson Suites and the Prive last month.
Last month's lower sales could also be due to the measures weeding out purchases by short-term investors. Genuine buyers who bought either for occupation or long-term investment were likely to have made up January's figures, said Mr Li.
Jones Lang LaSalle's (JLL) head of research for South-east Asia, Dr Chua Yang Liang, added that new projects launched last month generally saw a take-up rate of under 50 per cent.
But Spottiswoode 18 and Loft@Holland, which have a large number of so-called shoebox apartments of less than 500 sq ft, were some of the exceptions, with more than 80 per cent of units launched last month snapped up.
These small-sized flats saw robust sales as their lower overall price attracts both owner-occupiers and investors, said Mr Png Poh Soon, Knight Frank's head of research and consultancy.
Most homes sold last month were in the suburban and city fringe areas. The city fringe was especially popular, with sales up 42 per cent to 401 units compared with December's numbers.
'The provides support...to our view that prime properties are likely to see better performances this year as savvy investors return to pick up bargains in this segment of the market,' said JLL's Dr Chua.
The luxury market also enjoyed a fair level of interest, particularly projects that were newly completed or approaching completion, said CBRE's Mr Li.
The most expensive properties sold last month were three units of Scotts Square, which went for a median price of $4,621 per sq ft (psf), and a unit of The Orchard Residences at $4,258 psf.
OrangeTee Research, however, found that islandwide median prices inched up 1.8 per cent to $1,573 psf from the previous month. This could be due to the large number of shoebox apartments being sold, which generally have a relatively higher psf price.
Experts say that current market sentiment may not be easily subdued in the short term as the vibrant buying has been driven largely by record low interest rates and an economy flush with cash.
The brakes might be applied when interest rates start to rise and an increase in supply enters the market in the next few quarters from the recent government land sales, said Ms Christine Sun, senior manager at Savills Research & Consultancy.
'As it stands, the cumulative units launched but unsold have been increasing over the past few months, indicating that supply has already started to outstrip demand...Therefore, some downward pressure on mass-market home prices could be expected in the months ahead,' she said.
Knight Frank's Mr Poh estimates that between 800 and 900 homes will be bought this month. Propnex chief executive Mohamed Ismail expects close to 1,000, as almost 500 units have already been sold, he said.
Last month's top-selling projects included Spottiswoode 18, with 204 units sold at a median price of $1,992 psf, and Canberra Residences, where 155 flats went at a median price of $831 psf.
esthert@sph.com.sg
ST Forum : En bloc interest: Law requires conflict of interest declaration
15 Feb 2011,
En bloc interest: Law requires conflict of interest declaration
MS GRACE Francis suggested that those interested in running for office in an estate declare non-conflict of interest ("En bloc roadblocks"; last Thursday).
With the amendments to the Land Titles (Strata) Act in 2010, candidates standing for election to the collective sale committee (CSC) and any existing CSC members are required to declare any conflict of interest. This includes any direct or indirect interest in entities such as property developer and property consultant, and the extent of ownership they or persons connected to them (such as immediate family members) have in the strata development.
Ms Francis also commented that there are pro-en bloc residents who join the estate's management corporation (MC) council and oppose attempts to improve the estate.
Under the Building Maintenance and Strata Management Act, the MC council is duty-bound to ensure that the estate is well-maintained and kept in a state of good and serviceable repair.
Should the MC council fail to perform its duties, subsidiary proprietors/owners can seek redress through the Strata Titles Boards or the court to compel the MC council to perform its duties.
Chong Wan Yieng (Ms)
Director
Corporate Communications Division
Ministry of Law
En bloc interest: Law requires conflict of interest declaration
MS GRACE Francis suggested that those interested in running for office in an estate declare non-conflict of interest ("En bloc roadblocks"; last Thursday).
With the amendments to the Land Titles (Strata) Act in 2010, candidates standing for election to the collective sale committee (CSC) and any existing CSC members are required to declare any conflict of interest. This includes any direct or indirect interest in entities such as property developer and property consultant, and the extent of ownership they or persons connected to them (such as immediate family members) have in the strata development.
Ms Francis also commented that there are pro-en bloc residents who join the estate's management corporation (MC) council and oppose attempts to improve the estate.
Under the Building Maintenance and Strata Management Act, the MC council is duty-bound to ensure that the estate is well-maintained and kept in a state of good and serviceable repair.
Should the MC council fail to perform its duties, subsidiary proprietors/owners can seek redress through the Strata Titles Boards or the court to compel the MC council to perform its duties.
Chong Wan Yieng (Ms)
Director
Corporate Communications Division
Ministry of Law
ST : Property agent jailed for cheating and forgery
15 Feb 2011,
Property agent jailed for cheating and forgery
By Khushwant Singh
BETWEEN November 2007 and February last year, property agent Anika Priyadharshini cheated clients and credit companies of nearly $292,000.
Priyadharshini, 38, was jailed 41/2 years by a district court yesterday.
The mother of three, who is twice divorced, pleaded guilty to 23 charges. The judge took into consideration 44 other charges when passing sentence.
She was an agent with DTZ Debenham Tie Leung when she met Ms Lohambal Doraisamy, 49, in a temple in late 2008.
In December that year, Priyadharshini claimed that she had been able to convince a seller of a Bukit Panjang flat to lower his asking price by $20,000.
She then pocketed the $40,000 that Ms Doraisamy handed over to her as a deposit to buy the unit.
A month later, she convinced Ms Doraisamy to hand over $14,390 for stamp duties.
During that period, the agent also led a computer programmer to believe that she had a flat to rent out. She then disappeared with the $4,410 he gave her as the rental and security deposit.
She also forged court papers to state that she would receive the full proceeds from the sale of her matrimonial flat after her divorce proceedings. This allowed her to get a $15,000 loan from a licensed moneylender in High Street Plaza.
Priyadharshini, a bankrupt, also lied on the loan application form about her bankruptcy status.
The court heard that she used her boyfriend's particulars to apply for credit cards and used these for fraudulent purchases amounting to $9,680.
She also used the identity cards of her clients to subscribe to cellphone plans.
Police recovered only $163,000 from her. Defence counsel Sunil Sudheesan said that she would be getting $57,000 from the sale of a flat and this would be used to pay the credit companies.
For each cheating offence, she could have been jailed for up to 10 years and fined up to $10,000.
Property agent jailed for cheating and forgery
By Khushwant Singh
BETWEEN November 2007 and February last year, property agent Anika Priyadharshini cheated clients and credit companies of nearly $292,000.
Priyadharshini, 38, was jailed 41/2 years by a district court yesterday.
The mother of three, who is twice divorced, pleaded guilty to 23 charges. The judge took into consideration 44 other charges when passing sentence.
She was an agent with DTZ Debenham Tie Leung when she met Ms Lohambal Doraisamy, 49, in a temple in late 2008.
In December that year, Priyadharshini claimed that she had been able to convince a seller of a Bukit Panjang flat to lower his asking price by $20,000.
She then pocketed the $40,000 that Ms Doraisamy handed over to her as a deposit to buy the unit.
A month later, she convinced Ms Doraisamy to hand over $14,390 for stamp duties.
During that period, the agent also led a computer programmer to believe that she had a flat to rent out. She then disappeared with the $4,410 he gave her as the rental and security deposit.
She also forged court papers to state that she would receive the full proceeds from the sale of her matrimonial flat after her divorce proceedings. This allowed her to get a $15,000 loan from a licensed moneylender in High Street Plaza.
Priyadharshini, a bankrupt, also lied on the loan application form about her bankruptcy status.
The court heard that she used her boyfriend's particulars to apply for credit cards and used these for fraudulent purchases amounting to $9,680.
She also used the identity cards of her clients to subscribe to cellphone plans.
Police recovered only $163,000 from her. Defence counsel Sunil Sudheesan said that she would be getting $57,000 from the sale of a flat and this would be used to pay the credit companies.
For each cheating offence, she could have been jailed for up to 10 years and fined up to $10,000.
ST : Parents suing son over house ownership
15 Feb 2011,
Parents suing son over house ownership
They say son is holding property in trust; he says it was a gift to him
By Selina Lum
A MARRIED couple are suing their younger son over a terrace house in Joo Chiat.
Mr Ang Kim Sai and Madam Ang Gim Yen, both 86, said they are the actual owners and that their son, Mr Ang Kok Beng, 57, is holding the property in trust for them. But the son contended that it was given to him when it was transferred to his name in 1983.
The double-storey house in Langsat Road was bought for about $100,000 in 1974 and valued at $2.5 million in 2009.
The 10-day hearing opened in the High Court yesterday.
Mr Ang Kim Sai, a former Chinese physician, and his wife, a former teacher, have four children, one of whom has died. The elder Mr Ang also has a child with his mistress.
At the time, the couple's understanding of the Housing Board policy was that they were prohibited from being registered as legal owners of the house because they already owned an HDB flat.
They decided to buy the house in the names of their elder son Ang Thye Peng and eldest daughter Ang Keng Hui.
They paid the entire purchase price, stamp fees and legal costs.
In 1977, the daughter's name was withdrawn because she wanted to buy an HDB flat with her own family.
In 1983, the elder son's name was withdrawn too and the house was transferred to Mr Ang Kok Beng.
Mr Ang Thye Peng testified in court yesterday that he moved out because his wife and his mother could not get along and his mother wanted to rent out the master bedroom of the house.
In February last year, the couple proposed in a note to Mr Ang Kok Beng, a sub-contractor, that the house be sold and he be given 46.6 per cent of the sale proceeds, with the rest distributed among the other siblings and grandchildren.
He refused and the couple instructed lawyers to start legal action against him.
It was then discovered that in December 2009, Mr Ang Kok Beng had applied for a replacement title certificate to be issued to him when he made a statutory declaration that he had lost the title deed.
The couple contended that, in doing so, he was wrongfully trying to "convert the property to his own".
Mr Ang Kok Beng asserted that when the property was transferred to his name, his mother "specifically told" him it was a gift as he was the youngest male child in the family.
The couple denied this and said there was no reason to give him the house, favouring him over the other children.
The couple argued that even after the property was registered in Mr Ang Kok Beng's name, the title deed and all other documents were kept by them.
Madam Ang also controlled all affairs relating to the house, like arranging payments for the maintenance, property tax and utilities. She also sought tenants and collected rent.
But Mr Ang Kok Beng contended that he agreed to allow his mother to collect rent and that the original title was kept with her for convenience.
He argued that if his parents intended for him to hold the house in trust for them, why had lawyers prepared a transfer document instead of a trust deed?
He also questioned why, if his mother still considered herself the beneficial owner of the house, she had not mentioned the property in a will she made in 1998.
The trial continues.
selinal@sph.com.sg
The house in Langsat Road was bought for about $100,000 in 1974 and valued at $2.5 million in 2009. -- ST PHOTO: SAMUEL HE
Parents suing son over house ownership
They say son is holding property in trust; he says it was a gift to him
By Selina Lum
A MARRIED couple are suing their younger son over a terrace house in Joo Chiat.
Mr Ang Kim Sai and Madam Ang Gim Yen, both 86, said they are the actual owners and that their son, Mr Ang Kok Beng, 57, is holding the property in trust for them. But the son contended that it was given to him when it was transferred to his name in 1983.
The double-storey house in Langsat Road was bought for about $100,000 in 1974 and valued at $2.5 million in 2009.
The 10-day hearing opened in the High Court yesterday.
Mr Ang Kim Sai, a former Chinese physician, and his wife, a former teacher, have four children, one of whom has died. The elder Mr Ang also has a child with his mistress.
At the time, the couple's understanding of the Housing Board policy was that they were prohibited from being registered as legal owners of the house because they already owned an HDB flat.
They decided to buy the house in the names of their elder son Ang Thye Peng and eldest daughter Ang Keng Hui.
They paid the entire purchase price, stamp fees and legal costs.
In 1977, the daughter's name was withdrawn because she wanted to buy an HDB flat with her own family.
In 1983, the elder son's name was withdrawn too and the house was transferred to Mr Ang Kok Beng.
Mr Ang Thye Peng testified in court yesterday that he moved out because his wife and his mother could not get along and his mother wanted to rent out the master bedroom of the house.
In February last year, the couple proposed in a note to Mr Ang Kok Beng, a sub-contractor, that the house be sold and he be given 46.6 per cent of the sale proceeds, with the rest distributed among the other siblings and grandchildren.
He refused and the couple instructed lawyers to start legal action against him.
It was then discovered that in December 2009, Mr Ang Kok Beng had applied for a replacement title certificate to be issued to him when he made a statutory declaration that he had lost the title deed.
The couple contended that, in doing so, he was wrongfully trying to "convert the property to his own".
Mr Ang Kok Beng asserted that when the property was transferred to his name, his mother "specifically told" him it was a gift as he was the youngest male child in the family.
The couple denied this and said there was no reason to give him the house, favouring him over the other children.
The couple argued that even after the property was registered in Mr Ang Kok Beng's name, the title deed and all other documents were kept by them.
Madam Ang also controlled all affairs relating to the house, like arranging payments for the maintenance, property tax and utilities. She also sought tenants and collected rent.
But Mr Ang Kok Beng contended that he agreed to allow his mother to collect rent and that the original title was kept with her for convenience.
He argued that if his parents intended for him to hold the house in trust for them, why had lawyers prepared a transfer document instead of a trust deed?
He also questioned why, if his mother still considered herself the beneficial owner of the house, she had not mentioned the property in a will she made in 1998.
The trial continues.
selinal@sph.com.sg
The house in Langsat Road was bought for about $100,000 in 1974 and valued at $2.5 million in 2009. -- ST PHOTO: SAMUEL HE
ST : HDB scraps scheme for siblings to buy flats
15 Feb 2011,
HDB scraps scheme for siblings to buy flats
It's not needed since subletting market has been liberalised: MND
By Jessica Cheam
THE Government has moved quickly to scrap a scheme that allows siblings whose parents live overseas to buy HDB flats, after unhappiness surfaced online recently over how it seemed to favour permanent residents over citizens.
Senior Minister of State for National Development Grace Fu yesterday told Parliament that the Housing Board would discontinue the scheme with immediate effect as it "is no longer necessary".
It was introduced in 1990 to enable unmarried Singaporean and PR siblings to buy an HDB flat. To qualify, their parents cannot own another HDB flat and must reside overseas.
"This was necessary then because the sublet market for HDB flats and rooms was limited, and there were few viable housing options for these siblings," Ms Fu said in response to Marine Parade GRC MP Lim Biow Chuan's question.
Under the scheme, Singaporean siblings could buy a new or resale flat while PR siblings could buy only a resale flat.
Ms Fu also revealed that only about 300 such cases got the go-ahead each year. That is less than 1 per cent of total flat transactions.
But there was no longer a need for the scheme, she said, because "with the liberalisation of the subletting market for HDB flats over the years, unmarried Singaporean or PR siblings whose parents are residing overseas can now rent a room or a small flat from the open market".
The HDB first announced a review of the scheme last month, after The Straits Times sent in questions about netizens' perception that the scheme enabled unmarried PR siblings above the age of 21 to buy HDB resale flats, whereas Singapore citizen siblings could not.
The HDB later clarified that citizen siblings whose parents live abroad can also apply to buy resale flats and that all such applications will be considered on a case-by-case basis.
But now, the Government has decided to do away with that scheme altogether.
Citizens who are single and aged 35 or older can buy a resale flat under the Single Singapore Citizen Scheme. Unmarried siblings whose parents are dead can also buy flats under the Orphans Scheme.
When contacted, Forum letter writer Tony Tan Keng Hong, 33, who raised this issue previously, said he was glad that the scheme has been discontinued.
"I think it's a fair policy. HDB flats are meant for families primarily," he said.
During yesterday's Parliament sitting, National Development Minister Mah Bow Tan also fielded questions on the property cooling measures introduced last month. He said they were "pre-emptive in nature" as the Government wanted to act before a property bubble formed.
It was too early to say how effective the measures have been. The Government "will continue to monitor the property market closely", he added.
Mr Mah revealed last Sunday that the median cash-over-valuation for HDB resale transactions in January has dipped to $20,000, from $23,000 in the fourth quarter of last year.
jcheam@sph.com.sg
HDB scraps scheme for siblings to buy flats
It's not needed since subletting market has been liberalised: MND
By Jessica Cheam
THE Government has moved quickly to scrap a scheme that allows siblings whose parents live overseas to buy HDB flats, after unhappiness surfaced online recently over how it seemed to favour permanent residents over citizens.
Senior Minister of State for National Development Grace Fu yesterday told Parliament that the Housing Board would discontinue the scheme with immediate effect as it "is no longer necessary".
It was introduced in 1990 to enable unmarried Singaporean and PR siblings to buy an HDB flat. To qualify, their parents cannot own another HDB flat and must reside overseas.
"This was necessary then because the sublet market for HDB flats and rooms was limited, and there were few viable housing options for these siblings," Ms Fu said in response to Marine Parade GRC MP Lim Biow Chuan's question.
Under the scheme, Singaporean siblings could buy a new or resale flat while PR siblings could buy only a resale flat.
Ms Fu also revealed that only about 300 such cases got the go-ahead each year. That is less than 1 per cent of total flat transactions.
But there was no longer a need for the scheme, she said, because "with the liberalisation of the subletting market for HDB flats over the years, unmarried Singaporean or PR siblings whose parents are residing overseas can now rent a room or a small flat from the open market".
The HDB first announced a review of the scheme last month, after The Straits Times sent in questions about netizens' perception that the scheme enabled unmarried PR siblings above the age of 21 to buy HDB resale flats, whereas Singapore citizen siblings could not.
The HDB later clarified that citizen siblings whose parents live abroad can also apply to buy resale flats and that all such applications will be considered on a case-by-case basis.
But now, the Government has decided to do away with that scheme altogether.
Citizens who are single and aged 35 or older can buy a resale flat under the Single Singapore Citizen Scheme. Unmarried siblings whose parents are dead can also buy flats under the Orphans Scheme.
When contacted, Forum letter writer Tony Tan Keng Hong, 33, who raised this issue previously, said he was glad that the scheme has been discontinued.
"I think it's a fair policy. HDB flats are meant for families primarily," he said.
During yesterday's Parliament sitting, National Development Minister Mah Bow Tan also fielded questions on the property cooling measures introduced last month. He said they were "pre-emptive in nature" as the Government wanted to act before a property bubble formed.
It was too early to say how effective the measures have been. The Government "will continue to monitor the property market closely", he added.
Mr Mah revealed last Sunday that the median cash-over-valuation for HDB resale transactions in January has dipped to $20,000, from $23,000 in the fourth quarter of last year.
jcheam@sph.com.sg
ST : Showing the real picture in that dream home
15 Feb 2011,
Showing the real picture in that dream home
THE Urban Redevelopment Authority's (URA's) recent announcement that it is reviewing its rules for developers to provide "more accurate and transparent information on housing projects" is indeed welcome.
In particular, its review of the Housing Developers (Control & Licensing) Act and Housing Developers Rules will ensure that showflats look like the apartments that eventually get built so that buyers get what they pay for.
The move will effectively stop developers who take artistic licence with display homes by removing structural walls and columns and placing ceilings high to make units look bigger than they will actually be. They would also now have to represent accurately the presence of bomb shelters in the units. This is especially timely as property, despite the recent cooling measures introduced by the Government, is still a hot buy, whether it be for keeps or as an investment.
Also, the recent popularity of shoebox flats - those under 500 sq ft in size - has upped the ante in creative marketing by some developers. Some smaller flats even brand themselves grandly as SOHO flats - for both residential and office use - when they are merely small apartments.
Showflats have always indulged in some measure of smoke and mirrors to mask awkward spaces and unsightly flaws. They are meant to dazzle potential buyers with their bright lights, glass partitions and crystal chandeliers, to give the illusion that there is more than meets the eye. And this creative obfuscation has largely been an acceptable part of the wooing process. However, the tiny size of shoebox flats has thrown fiction harshly against fact as more and more disgruntled buyers have been shocked by the reality of their purchases. These are also buyers who have paid more per square foot for their smaller units in order to grab their slice of the property pie at an affordable budget.
Ultimately, buyers should take responsibility for their decisions and examine closely their proposed purchases before committing themselves to hundreds of thousands of dollars. That said, the property market, especially in Singapore, has never been driven purely by logic, but also by sheer emotion, which makes the URA's decision all the more crucial.
As long as property, which necessitates a large capital outlay, is seen as the holy grail of investments, taking up a huge chunk of one's savings, one definitely has a right to transparency, which includes the accurate representation of showflats. Marketing can legitimately soften the edges perhaps, but not blur reality.
Showing the real picture in that dream home
THE Urban Redevelopment Authority's (URA's) recent announcement that it is reviewing its rules for developers to provide "more accurate and transparent information on housing projects" is indeed welcome.
In particular, its review of the Housing Developers (Control & Licensing) Act and Housing Developers Rules will ensure that showflats look like the apartments that eventually get built so that buyers get what they pay for.
The move will effectively stop developers who take artistic licence with display homes by removing structural walls and columns and placing ceilings high to make units look bigger than they will actually be. They would also now have to represent accurately the presence of bomb shelters in the units. This is especially timely as property, despite the recent cooling measures introduced by the Government, is still a hot buy, whether it be for keeps or as an investment.
Also, the recent popularity of shoebox flats - those under 500 sq ft in size - has upped the ante in creative marketing by some developers. Some smaller flats even brand themselves grandly as SOHO flats - for both residential and office use - when they are merely small apartments.
Showflats have always indulged in some measure of smoke and mirrors to mask awkward spaces and unsightly flaws. They are meant to dazzle potential buyers with their bright lights, glass partitions and crystal chandeliers, to give the illusion that there is more than meets the eye. And this creative obfuscation has largely been an acceptable part of the wooing process. However, the tiny size of shoebox flats has thrown fiction harshly against fact as more and more disgruntled buyers have been shocked by the reality of their purchases. These are also buyers who have paid more per square foot for their smaller units in order to grab their slice of the property pie at an affordable budget.
Ultimately, buyers should take responsibility for their decisions and examine closely their proposed purchases before committing themselves to hundreds of thousands of dollars. That said, the property market, especially in Singapore, has never been driven purely by logic, but also by sheer emotion, which makes the URA's decision all the more crucial.
As long as property, which necessitates a large capital outlay, is seen as the holy grail of investments, taking up a huge chunk of one's savings, one definitely has a right to transparency, which includes the accurate representation of showflats. Marketing can legitimately soften the edges perhaps, but not blur reality.
ST : Robust sales at new launches
15 Feb 2011,
Robust sales at new launches
270 out of 384 units sold at Waterfront Isle; sales good at other projects too
By Cheryl Lim
SALES have been robust at new property launches across the island, with buyers especially keen on Waterfront Isle near Bedok Reservoir.
Of the 384 flats released for sale at the 561-unit estate, 270 have been sold.
Prices were about $922 per sq ft (psf) when the condominium - a joint venture by Far East Organization and Frasers Centrepoint - was launched on Feb 5, but have since risen to $936 psf.
Waterfront Isle's one-bedroom units of 592 sq ft are selling from $575,000. The Straits Times understands that the prices of some units with a reservoir view have climbed to an average of $1,050 psf.
Preview sales at other new developments paint an equally robust picture.
Oxley Holdings' Loft@Stevens in Stevens Road has sold between 70 per cent and 80 per cent of its 44 units. Most of the apartments at this freehold condo in District 10 are small one-bedders between 335 sq ft and 570 sq ft. Agents said only two or three of these units were left after yesterday's preview sale.
The six-storey development has a mix of one- and two-bedders with prices starting at $720,000 for a 335 sq ft unit.
Nin Residences in Pheng Geck Avenue in Potong Pasir was also well-received, with almost half of the 219 units sold. The 99-year leasehold project is being developed by Qingjian Realty and comprises two blocks, one of five storeys, the other 19.
Nin Residences has one-, two- and three-bedroom units with prices between $1,200 psf and $1,300 psf. A 452 sq ft one-bedder starts from around $700,000.
Meanwhile, experts are about to get a better picture of the market.
The Urban Redevelopment Authority said developers sold 1,332 private homes in December. But market watchers predict the latest figures for last month, set to be out today, will reflect a more subdued market.
Mr Eugene Lim, key executive officer at ERA, expects sales to have dipped below the 1,000 mark.
Although sales last month were off to a strong start, they were dampened in the second half of the month by the twin factors of festive celebrations and the Government's cooling measures, said PropNex chief executive Mohamed Ismail.
ERA's Mr Lim said a clearer snapshot of the market might emerge next month, with this month's data likely to show a carry-over effect from the Chinese New Year period.
"Several projects like The Tennery, Canberra Residences and Waterfront Isle have chalked up respectable sales in the current market climate," said Mr Lim.
"This shows speculators are being priced out and there is a ready pool of serious buyers, with most understanding that property is not a short-term investment."
cherlim@sph.com.sg
An artist's impression of the 561-unit Waterfront Isle near Bedok Reservoir, which has released 384 flats for sale. Its one- bedroom units of 592 sq ft are selling from $575,000. -- PHOTO: FAR EAST ORGANIZATION
Robust sales at new launches
270 out of 384 units sold at Waterfront Isle; sales good at other projects too
By Cheryl Lim
SALES have been robust at new property launches across the island, with buyers especially keen on Waterfront Isle near Bedok Reservoir.
Of the 384 flats released for sale at the 561-unit estate, 270 have been sold.
Prices were about $922 per sq ft (psf) when the condominium - a joint venture by Far East Organization and Frasers Centrepoint - was launched on Feb 5, but have since risen to $936 psf.
Waterfront Isle's one-bedroom units of 592 sq ft are selling from $575,000. The Straits Times understands that the prices of some units with a reservoir view have climbed to an average of $1,050 psf.
Preview sales at other new developments paint an equally robust picture.
Oxley Holdings' Loft@Stevens in Stevens Road has sold between 70 per cent and 80 per cent of its 44 units. Most of the apartments at this freehold condo in District 10 are small one-bedders between 335 sq ft and 570 sq ft. Agents said only two or three of these units were left after yesterday's preview sale.
The six-storey development has a mix of one- and two-bedders with prices starting at $720,000 for a 335 sq ft unit.
Nin Residences in Pheng Geck Avenue in Potong Pasir was also well-received, with almost half of the 219 units sold. The 99-year leasehold project is being developed by Qingjian Realty and comprises two blocks, one of five storeys, the other 19.
Nin Residences has one-, two- and three-bedroom units with prices between $1,200 psf and $1,300 psf. A 452 sq ft one-bedder starts from around $700,000.
Meanwhile, experts are about to get a better picture of the market.
The Urban Redevelopment Authority said developers sold 1,332 private homes in December. But market watchers predict the latest figures for last month, set to be out today, will reflect a more subdued market.
Mr Eugene Lim, key executive officer at ERA, expects sales to have dipped below the 1,000 mark.
Although sales last month were off to a strong start, they were dampened in the second half of the month by the twin factors of festive celebrations and the Government's cooling measures, said PropNex chief executive Mohamed Ismail.
ERA's Mr Lim said a clearer snapshot of the market might emerge next month, with this month's data likely to show a carry-over effect from the Chinese New Year period.
"Several projects like The Tennery, Canberra Residences and Waterfront Isle have chalked up respectable sales in the current market climate," said Mr Lim.
"This shows speculators are being priced out and there is a ready pool of serious buyers, with most understanding that property is not a short-term investment."
cherlim@sph.com.sg
An artist's impression of the 561-unit Waterfront Isle near Bedok Reservoir, which has released 384 flats for sale. Its one- bedroom units of 592 sq ft are selling from $575,000. -- PHOTO: FAR EAST ORGANIZATION
Monday, February 14, 2011
ST Forum : An indicative valuation isn't the final word
12 Feb 2011,
An indicative valuation isn't the final word
TO START with, 'indicative valuation' is a term coined to reflect the indicative market value, which should not be interpreted as the proper valuation of a property ('Indicative valuations are a vital tool' by Ms Monika Fischer; Jan 26).
The aim of valuation or appraisal is to determine the market value of a particular interest in a property at a point in time for a specific purpose. Valuation is an opinion arrived at logically using established techniques and methodologies.
Ms Fischer expressed her concern that she obtained four 'indicative valuations' of the same property ranging from $3.2 million to $4 million.
This is to be expected as an 'indicative valuation' is carried out without any field inspection, detailed research and analysis.
While Ms Fischer finds that 'indicative valuations' are useful, they must not be relied upon for one's property investment decisions. The institute maintains that any form of endorsement by valuers on the figures stated as 'indicative valuations' (before proper valuations are carried out) is not a subscribed valuation practice.
Evelyn Chang (Ms)
Executive Director
Singapore Institute of Surveyors and Valuers
An indicative valuation isn't the final word
TO START with, 'indicative valuation' is a term coined to reflect the indicative market value, which should not be interpreted as the proper valuation of a property ('Indicative valuations are a vital tool' by Ms Monika Fischer; Jan 26).
The aim of valuation or appraisal is to determine the market value of a particular interest in a property at a point in time for a specific purpose. Valuation is an opinion arrived at logically using established techniques and methodologies.
Ms Fischer expressed her concern that she obtained four 'indicative valuations' of the same property ranging from $3.2 million to $4 million.
This is to be expected as an 'indicative valuation' is carried out without any field inspection, detailed research and analysis.
While Ms Fischer finds that 'indicative valuations' are useful, they must not be relied upon for one's property investment decisions. The institute maintains that any form of endorsement by valuers on the figures stated as 'indicative valuations' (before proper valuations are carried out) is not a subscribed valuation practice.
Evelyn Chang (Ms)
Executive Director
Singapore Institute of Surveyors and Valuers
ST : Tighter rules for US home buyers
12 Feb 2011,
Tighter rules for US home buyers
They include mandatory 10 per cent downpayment for purchase of homes and other reforms
WASHINGTON: The Treasury Department yesterday proposed to set a mandatory 10 per cent down payment for US home buyers and to wind down state-backed mortgage lenders that have underpinned the housing market for 40 years.
'The plan is for fundamental reform, to wind down the GSEs (government-sponsored enterprises), strengthen consumer protection and preserve access to affordable housing for the people who need it,' it said in a report.
Launching what could be the biggest shake-up of the housing market in a generation, the Obama administration said home buyers should have to put down at least a 10 per cent deposit to buy a home.
The wide-ranging proposals effectively end the US government's long-standing support for the goal of having every American own their own home.
'The administration believes that we must continue to help ensure that Americans have access to quality housing they can afford,' the proposals said.
'This does not mean, however, that our goal is for all Americans to become homeowners.'
While some proposals would have a direct and quick impact on home buyers, it is the reforms of Fannie Mae and Freddie Mac that may have the broadest effect.
The two firms, which before the crisis back-stopped around three quarters of the housing market, have come under fire for their role in fuelling the housing bubble.
In the wake of a long and painful recession, the government has been left to guarantee - directly or via deals with bank lenders - 'more than nine out of every 10 new mortgages.' Yet despite their role in the financial melt-down, reforming Fannie and Freddie remains politically charged.
Supporters argue the lenders have made housing affordable for millions of poorer Americans. Critics say they represent unwarranted government interference in the housing market.
The Obama administration called on Congress and stakeholders to have an 'honest discussion' about the way forward.
While laying out three broad options to overhaul the mortgage lending system, the administration is letting Congress make the final decision.
The Treasury Department said in its report that the government should withdraw its support for the mortgage market slowly, over five years or more. The report describes a path for winding down Fannie Mae and Freddie Mac, which have swallowed US$150 billion (S$192 billion) in federal aid since the government took them over in September 2008.
Under any scenario, the private sector will assume a greater role in housing finance as the government scales back its involvement.
By handing the decision to Congress, the administration sidesteps one of the most complex and politically explosive questions facing America's financial system. Any of the three options will almost certain force mortgage rates to rise.
AGENCE FRANCE-PRESSE, ASSOCIATED PRESS
Tighter rules for US home buyers
They include mandatory 10 per cent downpayment for purchase of homes and other reforms
WASHINGTON: The Treasury Department yesterday proposed to set a mandatory 10 per cent down payment for US home buyers and to wind down state-backed mortgage lenders that have underpinned the housing market for 40 years.
'The plan is for fundamental reform, to wind down the GSEs (government-sponsored enterprises), strengthen consumer protection and preserve access to affordable housing for the people who need it,' it said in a report.
Launching what could be the biggest shake-up of the housing market in a generation, the Obama administration said home buyers should have to put down at least a 10 per cent deposit to buy a home.
The wide-ranging proposals effectively end the US government's long-standing support for the goal of having every American own their own home.
'The administration believes that we must continue to help ensure that Americans have access to quality housing they can afford,' the proposals said.
'This does not mean, however, that our goal is for all Americans to become homeowners.'
While some proposals would have a direct and quick impact on home buyers, it is the reforms of Fannie Mae and Freddie Mac that may have the broadest effect.
The two firms, which before the crisis back-stopped around three quarters of the housing market, have come under fire for their role in fuelling the housing bubble.
In the wake of a long and painful recession, the government has been left to guarantee - directly or via deals with bank lenders - 'more than nine out of every 10 new mortgages.' Yet despite their role in the financial melt-down, reforming Fannie and Freddie remains politically charged.
Supporters argue the lenders have made housing affordable for millions of poorer Americans. Critics say they represent unwarranted government interference in the housing market.
The Obama administration called on Congress and stakeholders to have an 'honest discussion' about the way forward.
While laying out three broad options to overhaul the mortgage lending system, the administration is letting Congress make the final decision.
The Treasury Department said in its report that the government should withdraw its support for the mortgage market slowly, over five years or more. The report describes a path for winding down Fannie Mae and Freddie Mac, which have swallowed US$150 billion (S$192 billion) in federal aid since the government took them over in September 2008.
Under any scenario, the private sector will assume a greater role in housing finance as the government scales back its involvement.
By handing the decision to Congress, the administration sidesteps one of the most complex and politically explosive questions facing America's financial system. Any of the three options will almost certain force mortgage rates to rise.
AGENCE FRANCE-PRESSE, ASSOCIATED PRESS
ST : Housing affordability of key concern
12 Feb 2011,
Housing affordability of key concern
This is the fifth of a special 10-part series in which The Straits Times explores some of the key issues expected to be tackled in the Budget on Feb 18. Property, utility rebates, bigger grants and higher income ceilings top list
By Jessica Cheam
ASK Mr Chandra Mohan what he hopes for when the Budget is announced next week and he will tell you matter-of-factly: utility and rental rebates.
The 65-year-old, who works in an events firm, lives in a three-room rental flat in Woodlands with his mother and sister, paying about $100 a month.
Because his mother has had a stroke and requires 24-hour care, the siblings have faced financial difficulties in recent years. They had to sell their four-room HDB flat in Sembawang a few years ago.
'If we can get some form of rental-flat or utility rebates, it would help us cope with rising costs,' he said.
In the longer term, the family hopes to own a Housing Board flat again, maybe with the help of grants for needy families.
Families like Mr Mohan's should be at the top of the priority list for measures in the upcoming Budget, said West Coast GRC MP Cedric Foo, who chairs the Government Parliamentary Committee for National Development.
Any rebates would be of help and additional housing grants for needy families should be considered, including raising the income ceiling to qualify for them, he added.
Those in the sandwich class are also hoping for measures to help them combat rising housing costs and living expenses. Take civil servant Charan Jaipragas, 26, for example. He recently bought a resale HDB maisonette in Taman Jurong for $495,000 with his fiancee.
Even though they received a housing grant of $25,000 from the HDB, the purchase wiped out their savings. 'Any rebates will help us young households,' he said.
Experts whom The Straits Times spoke to had differing views on whether measures in the Budget would address home buyers, owners or both. Most said the usual staples of property, utility and service and conservancy rebates could be announced.
Some said the Budget could see larger housing grants, perhaps for the lower-income households, and flexibility on who qualifies for the grants.
'The traditional remedies of upgrading of old estates, increasing the supply of HDB flats and sharpening the differential between Singaporeans and PRs (permanent residents) (in terms of benefits given) may again be applied,' said OCBC economist Selena Ling.
KPMG Advisory tax partner Leonard Ong said: 'We hope to see the one-off 40 per cent property tax rebate given for owner-occupied residential properties in the 2009 Budget reinstated in the current Budget.'
Ernst & Young tax services partner Choo Eng Chuan feels, however, that higher housing grants could further fuel the property boom. 'This could make prices rise further, making the situation worsen indirectly,' he said.
Prices of HDB resale flats, which rose 14.1 per cent last year, have hit new records on the back of a recovering economy.
Mr Choo feels that the growing income gap is also a big concern and traditional measures such as rebates for HDB dwellers would be more effective in addressing this divide.
One thing that the Government could do is to perhaps raise the income ceiling to qualify for the Central Provident Fund housing grant, he said.
The ceiling for each household is now $8,000 or $10,000, depending on the type of flat. 'As the economy grows, salaries do get higher, so this is something they could review,' suggested Mr Choo.
Housing affordability of key concern
This is the fifth of a special 10-part series in which The Straits Times explores some of the key issues expected to be tackled in the Budget on Feb 18. Property, utility rebates, bigger grants and higher income ceilings top list
By Jessica Cheam
ASK Mr Chandra Mohan what he hopes for when the Budget is announced next week and he will tell you matter-of-factly: utility and rental rebates.
The 65-year-old, who works in an events firm, lives in a three-room rental flat in Woodlands with his mother and sister, paying about $100 a month.
Because his mother has had a stroke and requires 24-hour care, the siblings have faced financial difficulties in recent years. They had to sell their four-room HDB flat in Sembawang a few years ago.
'If we can get some form of rental-flat or utility rebates, it would help us cope with rising costs,' he said.
In the longer term, the family hopes to own a Housing Board flat again, maybe with the help of grants for needy families.
Families like Mr Mohan's should be at the top of the priority list for measures in the upcoming Budget, said West Coast GRC MP Cedric Foo, who chairs the Government Parliamentary Committee for National Development.
Any rebates would be of help and additional housing grants for needy families should be considered, including raising the income ceiling to qualify for them, he added.
Those in the sandwich class are also hoping for measures to help them combat rising housing costs and living expenses. Take civil servant Charan Jaipragas, 26, for example. He recently bought a resale HDB maisonette in Taman Jurong for $495,000 with his fiancee.
Even though they received a housing grant of $25,000 from the HDB, the purchase wiped out their savings. 'Any rebates will help us young households,' he said.
Experts whom The Straits Times spoke to had differing views on whether measures in the Budget would address home buyers, owners or both. Most said the usual staples of property, utility and service and conservancy rebates could be announced.
Some said the Budget could see larger housing grants, perhaps for the lower-income households, and flexibility on who qualifies for the grants.
'The traditional remedies of upgrading of old estates, increasing the supply of HDB flats and sharpening the differential between Singaporeans and PRs (permanent residents) (in terms of benefits given) may again be applied,' said OCBC economist Selena Ling.
KPMG Advisory tax partner Leonard Ong said: 'We hope to see the one-off 40 per cent property tax rebate given for owner-occupied residential properties in the 2009 Budget reinstated in the current Budget.'
Ernst & Young tax services partner Choo Eng Chuan feels, however, that higher housing grants could further fuel the property boom. 'This could make prices rise further, making the situation worsen indirectly,' he said.
Prices of HDB resale flats, which rose 14.1 per cent last year, have hit new records on the back of a recovering economy.
Mr Choo feels that the growing income gap is also a big concern and traditional measures such as rebates for HDB dwellers would be more effective in addressing this divide.
One thing that the Government could do is to perhaps raise the income ceiling to qualify for the Central Provident Fund housing grant, he said.
The ceiling for each household is now $8,000 or $10,000, depending on the type of flat. 'As the economy grows, salaries do get higher, so this is something they could review,' suggested Mr Choo.
ST : Older office buildings taking on competition
12 Feb 2011,
Older office buildings taking on competition
Upgrading and makeovers in the works for those in prime CBD areas
By Esther Teo
LANDLORDS of older buildings in the traditionally prime areas of Raffles Place and Robinson Road are not taking the emergence of new blocks in areas like Marina Bay lying down.
Renovation works, ranging from simple upgrading to full-scale makeovers, are being undertaken to give ageing Grade A offices a smarter new face.
While the booming economy is certainly helping landlords as firms expand and take up more space, early signs are that the makeover strategy is working.
Leases are being renewed and new tenants signed up - with some even paying record rents.
But experts say it is still too early to determine how the older blocks will fare - with the age and quality of each building determining if it can keep tenants.
It is also hard to put a finger on any firm trend as many companies have taken out pre-commitments for space in new blocks such as the Marina Bay Financial Centre (MBFC) and Asia Square, but have yet to physically relocate.
This means occupancy rates and rents at older buildings are still holding up - for now.
Pontiac Land Group - which owns Centennial and Millenia towers - will lose a major tenant when Citibank goes to Asia Square. The bank's employees, some of whom are also at Capital Square, will move out in stages, from the last quarter of this year through to 2013, as existing leases expire. But the firm said that over the next few months, it is confident of achieving a pre-commitment level of about 60 per cent of the space that will be vacated by Citibank this year.
Replacement tenants include PetroChina International (Singapore), which will occupy about 70,000 sq ft by this year, said Pontiac Land.
'We believe that (ample parking space in a prime location) is a strong feature about Millenia Singapore that MBFC cannot meet,' the firm added.
Mr Andy Tan, executive vice-president of MEAG Pacific Star Asset Management - the manager of Capital Square - said Morgan Stanley, Bloomberg and Aberdeen Asset Management have recently renewed their leases, with some expanding their space by up to 46 per cent.
Capital Square in Raffles Place houses units of Barclays Capital and Macquarie, which have announced their move to MBFC. Mr Tan said that Pacific Star secured 180,000 sq ft of lease renewals and expansion last year alone, and is even signing new tenants from the IT and chemical sectors at record rentals.
CapitaCommercial Trust (CCT) is also planning to smarten up Six Battery Road in a bid to get higher rents.
Standard Chartered Bank and Nomura are moving at least part of their operations from Six Battery Road to MBFC, so CCT will take advantage of the downtime during tenant changes to include energy-saving features.
'Of the 65,600 sq ft of lettable area expected to be upgraded and available this year, 52 per cent has already been pre-leased to new and existing tenants,' said Ms Lynette Leong, chief executive of CapitaCommercial Trust Management Limited.
Buildings older than 15 years and strata-owned ones are expected to be most vulnerable to the siren call of Marina Bay and newer offices.
Knight Frank's director of office space, Mr Robert MacDonald, said investors will probably have to spend plenty of cash to smarten up these blocks while also providing attractive incentives if they want to keep tenants.
He said that Centennial and Millenia towers will be the ones to watch once Citigroup and Baker & McKenzie vacate.
esthert@sph.com.sg
Older office buildings taking on competition
Upgrading and makeovers in the works for those in prime CBD areas
By Esther Teo
LANDLORDS of older buildings in the traditionally prime areas of Raffles Place and Robinson Road are not taking the emergence of new blocks in areas like Marina Bay lying down.
Renovation works, ranging from simple upgrading to full-scale makeovers, are being undertaken to give ageing Grade A offices a smarter new face.
While the booming economy is certainly helping landlords as firms expand and take up more space, early signs are that the makeover strategy is working.
Leases are being renewed and new tenants signed up - with some even paying record rents.
But experts say it is still too early to determine how the older blocks will fare - with the age and quality of each building determining if it can keep tenants.
It is also hard to put a finger on any firm trend as many companies have taken out pre-commitments for space in new blocks such as the Marina Bay Financial Centre (MBFC) and Asia Square, but have yet to physically relocate.
This means occupancy rates and rents at older buildings are still holding up - for now.
Pontiac Land Group - which owns Centennial and Millenia towers - will lose a major tenant when Citibank goes to Asia Square. The bank's employees, some of whom are also at Capital Square, will move out in stages, from the last quarter of this year through to 2013, as existing leases expire. But the firm said that over the next few months, it is confident of achieving a pre-commitment level of about 60 per cent of the space that will be vacated by Citibank this year.
Replacement tenants include PetroChina International (Singapore), which will occupy about 70,000 sq ft by this year, said Pontiac Land.
'We believe that (ample parking space in a prime location) is a strong feature about Millenia Singapore that MBFC cannot meet,' the firm added.
Mr Andy Tan, executive vice-president of MEAG Pacific Star Asset Management - the manager of Capital Square - said Morgan Stanley, Bloomberg and Aberdeen Asset Management have recently renewed their leases, with some expanding their space by up to 46 per cent.
Capital Square in Raffles Place houses units of Barclays Capital and Macquarie, which have announced their move to MBFC. Mr Tan said that Pacific Star secured 180,000 sq ft of lease renewals and expansion last year alone, and is even signing new tenants from the IT and chemical sectors at record rentals.
CapitaCommercial Trust (CCT) is also planning to smarten up Six Battery Road in a bid to get higher rents.
Standard Chartered Bank and Nomura are moving at least part of their operations from Six Battery Road to MBFC, so CCT will take advantage of the downtime during tenant changes to include energy-saving features.
'Of the 65,600 sq ft of lettable area expected to be upgraded and available this year, 52 per cent has already been pre-leased to new and existing tenants,' said Ms Lynette Leong, chief executive of CapitaCommercial Trust Management Limited.
Buildings older than 15 years and strata-owned ones are expected to be most vulnerable to the siren call of Marina Bay and newer offices.
Knight Frank's director of office space, Mr Robert MacDonald, said investors will probably have to spend plenty of cash to smarten up these blocks while also providing attractive incentives if they want to keep tenants.
He said that Centennial and Millenia towers will be the ones to watch once Citigroup and Baker & McKenzie vacate.
esthert@sph.com.sg
Friday, February 11, 2011
ST : Developers: Too soon to assess property curbs
10 Feb 2011,
Developers: Too soon to assess property curbs
By Esther Teo
DEVELOPERS say that although sales volumes might have fallen, it is still too early to assess the impact of the cooling measures.
Industry players at the annual Spring Festival lunch of the Real Estate Developers' Association of Singapore (Redas) yesterday noted that the Jan 13 intervention was soon followed by Chinese New Year, so buyers will need more time to take stock before deciding whether to buy.
Mr Lim Ee Seng, Redas' first vice-president and Frasers Centrepoint chief executive, said that although the number of transactions has fallen, this was expected due to buyers' initial hesitation and the uncertainty in the market after the measures were introduced.
He noted that projects launched after Jan 13 still had 'very decent take-up', demonstrating that there is still a pool of people genuinely in need of homes. 'As long as the location is good and the price is deemed to be not unduly unreasonable, they will buy,' added Mr Lim.
Developers also said the cooling steps are just one more factor to take on board when assessing investment decisions and sales campaigns.
Redas president Wong Heang Fine said that today's vibrant and dynamic market means developers are constantly reviewing their launches and marketing, irrespective of the Government's measures.
Mr Chia Ngiang Hong, Redas' second vice-president and City Developments group general manager, added that developers will have to monitor the market and plan accordingly, even as buyers re-evaluate their positions.
'It is an ongoing process that is always happening at all times, nothing is static,' Mr Chia added.
Mr Wong, who is also CapitaLand Residential chief executive, noted in his opening address that while the Government has rolled out long-term policies that have helped the industry, developers are not keen on any more measures.
'With the property market stabilising after the latest round of cooling measures by the Government, I hope that any further measures...would be made only after considering all options,' said Mr Wong.
If sales do slip, developers could introduce sweeteners to attract home buyers, but Mr Lim said market-wide incentives such as those seen in the recession have not been introduced yet.
When the property boom ended in 2008, developers started absorbing stamp duty for selected projects and rolled out gimmicks such as renovation allowances and vouchers for electrical appliances to encourage sales.
Developers are also looking forward to Budget policies that will further support economic growth, as the property sector will be able to ride on that growth, Mr Wong added. The challenge this year will be to grow on a sustainable basis and to innovate and upgrade to produce better quality homes that can continue to attract global investors.
'I think the Singapore market is now quite transformed, if you look at the tourism figures...We are very exposed to world markets now,' said Mr Wong.
He also announced that Redas will hold regular dialogues with various government agencies and industry associations this year as well as introduce specific focus groups. Mr Wong championed tapping into Generations X and Y - future leaders and home buyers - to form a youth focus group to gather the energy and ideas of younger members.
Developers also welcomed suggestions that the Government might introduce new rules to ensure that showflats accurately represent their completed products, especially with more builders entering the market.
Mr Chia said: 'If the objective is to ensure that (the showflat) is correctly represented, then it is good for the market.'
Separately, MCC Land's 320-unit Canberra Residences in Sembawang has sold 160 of the 200 preview units. The average prices of typical units range from $830 to $860 per sq ft with sizes varying between 614 sq ft and 2,250 sq ft. The project will be officially launched tomorrow.
Developers: Too soon to assess property curbs
By Esther Teo
DEVELOPERS say that although sales volumes might have fallen, it is still too early to assess the impact of the cooling measures.
Industry players at the annual Spring Festival lunch of the Real Estate Developers' Association of Singapore (Redas) yesterday noted that the Jan 13 intervention was soon followed by Chinese New Year, so buyers will need more time to take stock before deciding whether to buy.
Mr Lim Ee Seng, Redas' first vice-president and Frasers Centrepoint chief executive, said that although the number of transactions has fallen, this was expected due to buyers' initial hesitation and the uncertainty in the market after the measures were introduced.
He noted that projects launched after Jan 13 still had 'very decent take-up', demonstrating that there is still a pool of people genuinely in need of homes. 'As long as the location is good and the price is deemed to be not unduly unreasonable, they will buy,' added Mr Lim.
Developers also said the cooling steps are just one more factor to take on board when assessing investment decisions and sales campaigns.
Redas president Wong Heang Fine said that today's vibrant and dynamic market means developers are constantly reviewing their launches and marketing, irrespective of the Government's measures.
Mr Chia Ngiang Hong, Redas' second vice-president and City Developments group general manager, added that developers will have to monitor the market and plan accordingly, even as buyers re-evaluate their positions.
'It is an ongoing process that is always happening at all times, nothing is static,' Mr Chia added.
Mr Wong, who is also CapitaLand Residential chief executive, noted in his opening address that while the Government has rolled out long-term policies that have helped the industry, developers are not keen on any more measures.
'With the property market stabilising after the latest round of cooling measures by the Government, I hope that any further measures...would be made only after considering all options,' said Mr Wong.
If sales do slip, developers could introduce sweeteners to attract home buyers, but Mr Lim said market-wide incentives such as those seen in the recession have not been introduced yet.
When the property boom ended in 2008, developers started absorbing stamp duty for selected projects and rolled out gimmicks such as renovation allowances and vouchers for electrical appliances to encourage sales.
Developers are also looking forward to Budget policies that will further support economic growth, as the property sector will be able to ride on that growth, Mr Wong added. The challenge this year will be to grow on a sustainable basis and to innovate and upgrade to produce better quality homes that can continue to attract global investors.
'I think the Singapore market is now quite transformed, if you look at the tourism figures...We are very exposed to world markets now,' said Mr Wong.
He also announced that Redas will hold regular dialogues with various government agencies and industry associations this year as well as introduce specific focus groups. Mr Wong championed tapping into Generations X and Y - future leaders and home buyers - to form a youth focus group to gather the energy and ideas of younger members.
Developers also welcomed suggestions that the Government might introduce new rules to ensure that showflats accurately represent their completed products, especially with more builders entering the market.
Mr Chia said: 'If the objective is to ensure that (the showflat) is correctly represented, then it is good for the market.'
Separately, MCC Land's 320-unit Canberra Residences in Sembawang has sold 160 of the 200 preview units. The average prices of typical units range from $830 to $860 per sq ft with sizes varying between 614 sq ft and 2,250 sq ft. The project will be officially launched tomorrow.
ST : Buying a flat? Check the writing on the wall first
10 Feb 2011,
Buying a flat? Check the writing on the wall first
By Daryl Chin
ARE property agents obliged to check if a unit being sold is targeted by loan sharks, and to alert potential buyers if so?
Most agents interviewed said that while this it is not part of their job, they do so because of a sense of responsibility, or because they have to explain why a flat is being sold more cheaply.
On average, agents said, such units are cheaper than similar ones in the area.
Mr Jeff Soo, an ECG Property agent, said owners of these units may ask cash-over- valuation amounts that are two-thirds less than for other units.
This could possibly mean that a buyer might need to pay just $10,000 for the COV, which is a cash premium paid by the buyer over a flat's valuation, instead of the average $30,000.
Agency heads from PropNex, ERA and Dennis Wee Group (DWG) said that while loan shark cases remain relatively isolated, their agents are constantly on the look out for, literally, the writing on the wall.
Of 10 property agents interviewed, eight said they check out lift landings and corridors for such activities when helping their clients buy a flat.
Some will also ask residents in neighbouring units about the situation. If the unit is a target, they will either not sell the flat or will let their client know about it.
'The buyers will ask anyway, and we'll have to tell them the truth,' said Propnex agent Sean Tan. 'It'll be a waste of our time to bring clients to view these flats.'
DWG director Chris Koh said that loan shark activities are more prevalent in older estates and those with three- and four-room units.
But the responsibility does not rest solely on the agent, said PropNex spokesman Adam Tan. A buyer should ask why a seller is letting go of his unit, although the latter is not bound to reveal the true reason.
Buyers should also beware of units that are inordinately cheap, said ERA key executive officer Eugene Lim. 'The affected unit, as well as those along the same stretch, might not be going for the normal price,' he said.
The Council for Estate Agencies, which regulates the industry, said it has received three loan shark-related complaints from buyers since it began operations last Oct 22.
Additional reporting by Goh Kai Shi
A notice (above) put up by the owners of a flat in Serangoon North. A 'Citizens On Patrol' sign hanging as a deterrent at the staircase landing of the same block. -- ST PHOTOS: DESMOND WEE
Buying a flat? Check the writing on the wall first
By Daryl Chin
ARE property agents obliged to check if a unit being sold is targeted by loan sharks, and to alert potential buyers if so?
Most agents interviewed said that while this it is not part of their job, they do so because of a sense of responsibility, or because they have to explain why a flat is being sold more cheaply.
On average, agents said, such units are cheaper than similar ones in the area.
Mr Jeff Soo, an ECG Property agent, said owners of these units may ask cash-over- valuation amounts that are two-thirds less than for other units.
This could possibly mean that a buyer might need to pay just $10,000 for the COV, which is a cash premium paid by the buyer over a flat's valuation, instead of the average $30,000.
Agency heads from PropNex, ERA and Dennis Wee Group (DWG) said that while loan shark cases remain relatively isolated, their agents are constantly on the look out for, literally, the writing on the wall.
Of 10 property agents interviewed, eight said they check out lift landings and corridors for such activities when helping their clients buy a flat.
Some will also ask residents in neighbouring units about the situation. If the unit is a target, they will either not sell the flat or will let their client know about it.
'The buyers will ask anyway, and we'll have to tell them the truth,' said Propnex agent Sean Tan. 'It'll be a waste of our time to bring clients to view these flats.'
DWG director Chris Koh said that loan shark activities are more prevalent in older estates and those with three- and four-room units.
But the responsibility does not rest solely on the agent, said PropNex spokesman Adam Tan. A buyer should ask why a seller is letting go of his unit, although the latter is not bound to reveal the true reason.
Buyers should also beware of units that are inordinately cheap, said ERA key executive officer Eugene Lim. 'The affected unit, as well as those along the same stretch, might not be going for the normal price,' he said.
The Council for Estate Agencies, which regulates the industry, said it has received three loan shark-related complaints from buyers since it began operations last Oct 22.
Additional reporting by Goh Kai Shi
A notice (above) put up by the owners of a flat in Serangoon North. A 'Citizens On Patrol' sign hanging as a deterrent at the staircase landing of the same block. -- ST PHOTOS: DESMOND WEE
ST : Pay$ even when you don't Owe$
10 Feb 2011,
Pay$ even when you don't Owe$
Loan sharks hound new owners of flats, even though debtor has already moved
By Tham Yuen-C & Jalelah Abu Baker
EVERY morning, Madam Vani opens the door of her flat with trepidation. Will the door still be brown, or will it have red, blue or black paint splashed on it?
These are the favourite colours of the loan sharks that have been harassing her since she moved into the Serangoon North flat in February last year.
There have been five attacks, each leaving her more furious because she has never borrowed money from them.
After the first few incidents, she learnt from neighbours that the son of the previous flat owner had borrowed heavily from loan sharks.
'There was no sign of problems when we visited the place before signing the papers. It was always very clean,' said Madam Vani, who is using a pseudonym because she fears reprisals should her real name be published.
To protect the door from paint, she has wrapped the gate outside it with plastic cling wrap. A neighbour a few doors away has done the same, and also draped his window panes with plastic sheets.
Madam Vani's family is collateral damage in the loan-shark scourge in HDB estates. These families are innocent victims who see their doors vandalised, get words scrawled on their walls, and have their gates chained, even though they have not had contact with illegal moneylenders who now want their money back.
Their plight has been highlighted in letters to The Straits Times Forum page.
In a reply to such home owners yesterday, the HDB said that it is working with the relevant authorities to prevent innocent residents from being harassed.
It also reiterated new rules that can help track loan-shark debtors on the move. Since last February, for example, HDB flat owners who sublet rooms have had to register with the board, and inform it when these tenants renew their lease or stop renting their rooms.
Speaking in Parliament in January last year, Senior Minister of State for Law and Home Affairs Ho Peng Kee revealed that less than 1 per cent of HDB households in Singapore were harassed by loan sharks.
Even then, he said, 'every innocent household harassed is one too many'.
Laws were tightened last year to penalise people who deliberately provide outdated or false addresses when borrowing from loan sharks, resulting in innocent people being harassed. Those found guilty can be jailed for up to a year.
Former loan-shark runners told The Straits Times that they continue to vandalise a unit even when a new family has moved in - or when the house owner insists he has not borrowed money - because they can never be sure that the debtor has moved out.
'They could be hiding the person in the house or lying for the person,' said a 25-year-old former runner yesterday.
Mr Mohamed Yusof Ismail, chief executive officer at Ain Society which provides remedial and rehabilitation to youths and their families, has counselled former loan-shark runners. He said that these runners merely follow instructions: 'They don't know anything about the debtors, and have no time to bother about it as they need to finish their jobs as quickly as possible.'
Members of Parliament said the loan-sharking problem has abated since amendments to the Moneylenders Act last year enhanced penalties for harassment activities. Ms Ellen Lee, an MP for Sembawang GRC, said she used to see up to two families a month who had been harassed by runners targeting neighbours or previous occupants, but none in recent months.
Mrs Lim Hwee Hua, an MP for Aljunied GRC which oversees Serangoon North, said 'the loan-shark cases are isolated to a few blocks and the police are fully aware of the residents' plight'.
In November 2009, the Serangoon Neighbourhood Unlicensed Money Lenders Watch Group was formed by residents there and the police. Businessman Patrick Ong, 42, a member, said five to 10 volunteers walk around the estate twice a month, checking for signs of loan-shark activity, like paint-splattered doors.
If they spot anything, they will report it to the police. There are up to 800 such neighbourhood watch groups here. A police spokesman said residents can help by reporting suspicious people they see.
But for some, nothing seems to have helped. Ms L. Eng, 34, moved into her three-room flat in Bedok North three years ago. There was one incident then, after which nothing happened. The harassment started again in November last year and she had been targeted five times since.
Although a CCTV camera has been installed, the runners have not let up. 'The loan shark threatened to do something to my eight-year-old daughter,' said Ms Eng, who lives with her daughter and maid.
Besides dealing with harassment, victims have to bear cleaning costs. Town councils take care of restoring common areas which have been vandalised, but victims say they have to clean up or replace doors and windows. Said Ms Eng: 'I use thinner to get rid of the paint on the door, but the front of my house is still full of paint.'
yuenc@sph.com.sg
jalmsab@sph.com.sg
--------------------------------------------------------------------------------
Do some detective work
A HOME-BUYER'S best bet against buying a unit from someone who is in trouble with loan sharks is simply to speak to the neighbours, said security experts.
'It's the most practical thing to do. If they say it's okay, it's got to be okay since they live there,' said Mr Toby Koh of Ademco Security Group.
Buyers can also observe the block and surrounding units for tell-tale signs.
Possible signs include repainted walls outside the unit, uneven cement on the ground which could indicate it has been re-cemented to hide paint, and doors wrapped in cling film to protect them from paint.
A buyer who finds his property is being targeted after moving in should report this to the police.
A police spokesman said the installation by police of portable closed-circuit television cameras outside HDB flats targeted by loan sharks has resulted in the arrests of loan shark runners.
Last year, 1,506 people were arrested for loansharking and related harassment, compared to 965 in 2009.
Mr Koh said the best deterrent against attack is camera surveillance because 'the runner may think twice, as he knows he will be captured on camera'.
The footage can be used as evidence by the police and can eventually force the loan shark to back off.
He added that while dummy cameras may act as a deterrent, there is no real point to them as they do not help to catch the culprits.
Pay$ even when you don't Owe$
Loan sharks hound new owners of flats, even though debtor has already moved
By Tham Yuen-C & Jalelah Abu Baker
EVERY morning, Madam Vani opens the door of her flat with trepidation. Will the door still be brown, or will it have red, blue or black paint splashed on it?
These are the favourite colours of the loan sharks that have been harassing her since she moved into the Serangoon North flat in February last year.
There have been five attacks, each leaving her more furious because she has never borrowed money from them.
After the first few incidents, she learnt from neighbours that the son of the previous flat owner had borrowed heavily from loan sharks.
'There was no sign of problems when we visited the place before signing the papers. It was always very clean,' said Madam Vani, who is using a pseudonym because she fears reprisals should her real name be published.
To protect the door from paint, she has wrapped the gate outside it with plastic cling wrap. A neighbour a few doors away has done the same, and also draped his window panes with plastic sheets.
Madam Vani's family is collateral damage in the loan-shark scourge in HDB estates. These families are innocent victims who see their doors vandalised, get words scrawled on their walls, and have their gates chained, even though they have not had contact with illegal moneylenders who now want their money back.
Their plight has been highlighted in letters to The Straits Times Forum page.
In a reply to such home owners yesterday, the HDB said that it is working with the relevant authorities to prevent innocent residents from being harassed.
It also reiterated new rules that can help track loan-shark debtors on the move. Since last February, for example, HDB flat owners who sublet rooms have had to register with the board, and inform it when these tenants renew their lease or stop renting their rooms.
Speaking in Parliament in January last year, Senior Minister of State for Law and Home Affairs Ho Peng Kee revealed that less than 1 per cent of HDB households in Singapore were harassed by loan sharks.
Even then, he said, 'every innocent household harassed is one too many'.
Laws were tightened last year to penalise people who deliberately provide outdated or false addresses when borrowing from loan sharks, resulting in innocent people being harassed. Those found guilty can be jailed for up to a year.
Former loan-shark runners told The Straits Times that they continue to vandalise a unit even when a new family has moved in - or when the house owner insists he has not borrowed money - because they can never be sure that the debtor has moved out.
'They could be hiding the person in the house or lying for the person,' said a 25-year-old former runner yesterday.
Mr Mohamed Yusof Ismail, chief executive officer at Ain Society which provides remedial and rehabilitation to youths and their families, has counselled former loan-shark runners. He said that these runners merely follow instructions: 'They don't know anything about the debtors, and have no time to bother about it as they need to finish their jobs as quickly as possible.'
Members of Parliament said the loan-sharking problem has abated since amendments to the Moneylenders Act last year enhanced penalties for harassment activities. Ms Ellen Lee, an MP for Sembawang GRC, said she used to see up to two families a month who had been harassed by runners targeting neighbours or previous occupants, but none in recent months.
Mrs Lim Hwee Hua, an MP for Aljunied GRC which oversees Serangoon North, said 'the loan-shark cases are isolated to a few blocks and the police are fully aware of the residents' plight'.
In November 2009, the Serangoon Neighbourhood Unlicensed Money Lenders Watch Group was formed by residents there and the police. Businessman Patrick Ong, 42, a member, said five to 10 volunteers walk around the estate twice a month, checking for signs of loan-shark activity, like paint-splattered doors.
If they spot anything, they will report it to the police. There are up to 800 such neighbourhood watch groups here. A police spokesman said residents can help by reporting suspicious people they see.
But for some, nothing seems to have helped. Ms L. Eng, 34, moved into her three-room flat in Bedok North three years ago. There was one incident then, after which nothing happened. The harassment started again in November last year and she had been targeted five times since.
Although a CCTV camera has been installed, the runners have not let up. 'The loan shark threatened to do something to my eight-year-old daughter,' said Ms Eng, who lives with her daughter and maid.
Besides dealing with harassment, victims have to bear cleaning costs. Town councils take care of restoring common areas which have been vandalised, but victims say they have to clean up or replace doors and windows. Said Ms Eng: 'I use thinner to get rid of the paint on the door, but the front of my house is still full of paint.'
yuenc@sph.com.sg
jalmsab@sph.com.sg
--------------------------------------------------------------------------------
Do some detective work
A HOME-BUYER'S best bet against buying a unit from someone who is in trouble with loan sharks is simply to speak to the neighbours, said security experts.
'It's the most practical thing to do. If they say it's okay, it's got to be okay since they live there,' said Mr Toby Koh of Ademco Security Group.
Buyers can also observe the block and surrounding units for tell-tale signs.
Possible signs include repainted walls outside the unit, uneven cement on the ground which could indicate it has been re-cemented to hide paint, and doors wrapped in cling film to protect them from paint.
A buyer who finds his property is being targeted after moving in should report this to the police.
A police spokesman said the installation by police of portable closed-circuit television cameras outside HDB flats targeted by loan sharks has resulted in the arrests of loan shark runners.
Last year, 1,506 people were arrested for loansharking and related harassment, compared to 965 in 2009.
Mr Koh said the best deterrent against attack is camera surveillance because 'the runner may think twice, as he knows he will be captured on camera'.
The footage can be used as evidence by the police and can eventually force the loan shark to back off.
He added that while dummy cameras may act as a deterrent, there is no real point to them as they do not help to catch the culprits.
ST Forum : En bloc roadblocks
10 Feb 2011,
WHEN ESTATE UPGRADING IS THWARTED BY...
En bloc roadblocks
IN RECALLING the en bloc saga of Gillman Heights, the chairman of its sales committee stated that the condominium had to be sold en bloc because it was old and falling into disrepair ('No regrets, despite dear memories of Gillman'; Sunday).
This is a view commonly held among pro-en bloc residents, and it should be addressed. If an estate is old, it can be upgraded using the sinking fund, or through a special one-time contribution by residents. Such upgrading is far cheaper than the potential loss for owners from a collective sale.
As many former Gillman Heights residents quoted in the special report ('For better or for worse'; Sunday) ended up paying more for their new homes - some in the hundreds of thousands of dollars - those who live in old estates worth preserving should learn from such experiences.
There are pro-en bloc residents who often obstruct the improvement of an estate because they wish to profit from an en bloc sale. They prefer to see the estate fall into disrepair so they can cite the high costs of replacing old pipes, water tanks, old tiles and lobby areas subsequently. Such en bloc proponents join management councils and oppose attempts to improve the estate.
While many may argue that the decision on such an issue is best left to subsidiary proprietors, the reality is that few are keen on running for office in any estate, and fewer still are willing to argue with loud neighbours who harbour an agenda.
So, this issue must be solved by a built-in safeguard, which should require residents who wish to run for office to declare that there is no conflict of interest. There should be an automatic opt-out clause for those who harbour an interest in organising an en bloc sale.
There must be a law spelling out a conflict of interest to prevent residents who intend to lobby for an en bloc sale from sitting on a management council or any other official body of the estate that may influence the en bloc process.
A management council, by definition, must work towards the good of preserving, repairing and enhancing the estate and if this is so, pro-en bloc residents should be ineligible for office.
Grace Francis (Ms)
WHEN ESTATE UPGRADING IS THWARTED BY...
En bloc roadblocks
IN RECALLING the en bloc saga of Gillman Heights, the chairman of its sales committee stated that the condominium had to be sold en bloc because it was old and falling into disrepair ('No regrets, despite dear memories of Gillman'; Sunday).
This is a view commonly held among pro-en bloc residents, and it should be addressed. If an estate is old, it can be upgraded using the sinking fund, or through a special one-time contribution by residents. Such upgrading is far cheaper than the potential loss for owners from a collective sale.
As many former Gillman Heights residents quoted in the special report ('For better or for worse'; Sunday) ended up paying more for their new homes - some in the hundreds of thousands of dollars - those who live in old estates worth preserving should learn from such experiences.
There are pro-en bloc residents who often obstruct the improvement of an estate because they wish to profit from an en bloc sale. They prefer to see the estate fall into disrepair so they can cite the high costs of replacing old pipes, water tanks, old tiles and lobby areas subsequently. Such en bloc proponents join management councils and oppose attempts to improve the estate.
While many may argue that the decision on such an issue is best left to subsidiary proprietors, the reality is that few are keen on running for office in any estate, and fewer still are willing to argue with loud neighbours who harbour an agenda.
So, this issue must be solved by a built-in safeguard, which should require residents who wish to run for office to declare that there is no conflict of interest. There should be an automatic opt-out clause for those who harbour an interest in organising an en bloc sale.
There must be a law spelling out a conflict of interest to prevent residents who intend to lobby for an en bloc sale from sitting on a management council or any other official body of the estate that may influence the en bloc process.
A management council, by definition, must work towards the good of preserving, repairing and enhancing the estate and if this is so, pro-en bloc residents should be ineligible for office.
Grace Francis (Ms)
ST : Peace Centre site back on sale at $700m
10 Feb 2011,
Peace Centre site back on sale at $700m
By Esther Teo
IT IS round two for the owners of Peace Centre and Peace Mansion, who are making a second attempt to sell their Sophia Road commercial redevelopment site.
This time they are going for collective sale tender with a hefty guide price of $700 million. That works out to $1,355 per sq ft per plot ratio - inclusive of an estimated $150 million charge to reset the 40-year-old development's leasehold tenure to 99 years, marketing agent Savills Singapore said yesterday.
The asking price is also significantly higher than the $470 million indicative price when it was first put up for sale, through an expression of interest exercise in March 2007.
The prime District 9 site - zoned for commercial use under the 2008 Masterplan - sits on a 76,618 sq ft plot and consists of a seven-storey commercial podium with 232 office and retail units, and a 32-storey residential tower with 86 apartments.
The site has a gross floor area of about 627,852 sq ft.
Savills said that besides being used for retail, alternative uses may include medical suites, offices, Soho - small office, home office - or even serviced apartments.
Apartment owners are expected to pocket about $2 million, if the guide price is met, said Savills' director of investment sales Suzie Mok.
She said that with the successful rejuvenation of the Civic District and the expected ongoing strength in the local and regional economies, there is tremendous potential for expansion of the retail scene beyond the main tourist and shopping belt of Orchard Road and into the nearby Selegie Road area.
Ms Mok also said the higher asking price compared to 2007 resulted from price trends moving up 'a fair bit' and rejuvenation of the area.
'Many plans have taken place with the whole area seeing transformation since 2007,' she added.
Experts said that while the guide price is optimistic, its central location and commercial zoning might be attractive to developers looking beyond the residential market.
Cushman & Wakefield's senior manager of Asia-Pacific research, Mr Ong Kah Seng, said although market sentiment is generally more cautious, there are still opportunities for sites in good locations.
'This site is fairly central, and enjoys proximity to Orchard Road and various educational institutions,' he said.
Nearby, the former Paradiz Centre in Selegie Road - now called PoMo - also launched an expression of interest exercise in December.
While no price has been specified, a price guide of about about $1,400 psf based on the net lettable area, or $255 million, was given.
The price tag translates to $1,355 per sq ft per plot ratio, including an estimated $150 million charge to reset the 40-year-old development's leasehold tenure to 99 years. -- PHOTO: SAVILLS
Peace Centre site back on sale at $700m
By Esther Teo
IT IS round two for the owners of Peace Centre and Peace Mansion, who are making a second attempt to sell their Sophia Road commercial redevelopment site.
This time they are going for collective sale tender with a hefty guide price of $700 million. That works out to $1,355 per sq ft per plot ratio - inclusive of an estimated $150 million charge to reset the 40-year-old development's leasehold tenure to 99 years, marketing agent Savills Singapore said yesterday.
The asking price is also significantly higher than the $470 million indicative price when it was first put up for sale, through an expression of interest exercise in March 2007.
The prime District 9 site - zoned for commercial use under the 2008 Masterplan - sits on a 76,618 sq ft plot and consists of a seven-storey commercial podium with 232 office and retail units, and a 32-storey residential tower with 86 apartments.
The site has a gross floor area of about 627,852 sq ft.
Savills said that besides being used for retail, alternative uses may include medical suites, offices, Soho - small office, home office - or even serviced apartments.
Apartment owners are expected to pocket about $2 million, if the guide price is met, said Savills' director of investment sales Suzie Mok.
She said that with the successful rejuvenation of the Civic District and the expected ongoing strength in the local and regional economies, there is tremendous potential for expansion of the retail scene beyond the main tourist and shopping belt of Orchard Road and into the nearby Selegie Road area.
Ms Mok also said the higher asking price compared to 2007 resulted from price trends moving up 'a fair bit' and rejuvenation of the area.
'Many plans have taken place with the whole area seeing transformation since 2007,' she added.
Experts said that while the guide price is optimistic, its central location and commercial zoning might be attractive to developers looking beyond the residential market.
Cushman & Wakefield's senior manager of Asia-Pacific research, Mr Ong Kah Seng, said although market sentiment is generally more cautious, there are still opportunities for sites in good locations.
'This site is fairly central, and enjoys proximity to Orchard Road and various educational institutions,' he said.
Nearby, the former Paradiz Centre in Selegie Road - now called PoMo - also launched an expression of interest exercise in December.
While no price has been specified, a price guide of about about $1,400 psf based on the net lettable area, or $255 million, was given.
The price tag translates to $1,355 per sq ft per plot ratio, including an estimated $150 million charge to reset the 40-year-old development's leasehold tenure to 99 years. -- PHOTO: SAVILLS
ST Forum : Why Iras should review formula for property tax
09 Feb 2011,
Why Iras should review formula for property tax
MR PAUL Chan ('Adopt fairer tax system for owner-occupiers'; Jan 23) is right in advocating a new and fairer formula for property tax.
The current method of tagging market value to rental value is grossly unfair to owner-occupiers, and my personal experience is a good example.
When we experienced the worst year of economic growth in 2009, the property tax went down by only 23.5 per cent from that in the preceding, pre-crisis year.
Yet the same tax shot up by a whopping 98 per cent last year, which meant the property tax paid in 2010 was 50 per cent higher than that in the 2008 pre-crisis year.
And the economy has not even recovered to pre-crisis levels.
There were also four adjustments made between 2007 and last year, three of which were increases and one, a decrease.
Is there a need for such frequent adjustments in tax rates?
All the above reinforces the view that when times are bad, the Inland Revenue Authority of Singapore (Iras) returns less than it should, but when times are good, it takes back a lot more than it deserves.
The efforts by Iras to introduce adjustments and inform taxpayers could have been saved if a different formula is used.
As an owner-occupier, I do not lose or benefit from economic changes or changes in rental value, so why is my property tax not reflecting that?
Thian Tai Chew
Why Iras should review formula for property tax
MR PAUL Chan ('Adopt fairer tax system for owner-occupiers'; Jan 23) is right in advocating a new and fairer formula for property tax.
The current method of tagging market value to rental value is grossly unfair to owner-occupiers, and my personal experience is a good example.
When we experienced the worst year of economic growth in 2009, the property tax went down by only 23.5 per cent from that in the preceding, pre-crisis year.
Yet the same tax shot up by a whopping 98 per cent last year, which meant the property tax paid in 2010 was 50 per cent higher than that in the 2008 pre-crisis year.
And the economy has not even recovered to pre-crisis levels.
There were also four adjustments made between 2007 and last year, three of which were increases and one, a decrease.
Is there a need for such frequent adjustments in tax rates?
All the above reinforces the view that when times are bad, the Inland Revenue Authority of Singapore (Iras) returns less than it should, but when times are good, it takes back a lot more than it deserves.
The efforts by Iras to introduce adjustments and inform taxpayers could have been saved if a different formula is used.
As an owner-occupier, I do not lose or benefit from economic changes or changes in rental value, so why is my property tax not reflecting that?
Thian Tai Chew
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