DREAM HOMES

OVERWHELMING MAJORITY OF PRS ARE HDB OWNER-OCCUPIERS

2012-01-10T01:35:00.000-08:00

OVERWHELMING MAJORITY OF PRS ARE HDB OWNER-OCCUPIERS

Jan 10, 2012

The Ministry of National Development (MND) has revealed that over 95 percent of permanent residents (PRs) who own HDB flats are owner-occupants.

This was made known in Parliament after MP for Ang Mo Kio GRC, Ang Hin Kee, asked if PRs are required to occupy the flats they own.

PRs in Singapore can only acquire resale HDB flats, and are ineligible for government subsidies. While public flats are primarily meant for owner-occupation, the MND said exceptions are made for flat owners who have justifiable reasons for being unable to occupy their flats for certain periods of time.

In such cases, flat owners may seek HDB’s approval to sublet their flats, with each approval valid for up to three years. When the permit to sublet expires, the owners must submit a new application if they wish to continue subletting.

Meanwhile, MND also revealed that 2,883 direct-purchase flats were sublet within two years of completing their five-year Minimum Occupation Period (MOP). Of these, 971 were sublet to PRs residing in Singapore.

Info courtesy – Propertyguru.com.sg

LUXURY HOME MARKET TO BATTLE OVERSUPPLY THIS YEAR

2012-01-09T02:38:00.000-08:00

LUXURY HOME MARKET TO BATTLE OVERSUPPLY THIS YEAR

Jan 9, 2012

The luxury home market will face a tough year ahead, thanks to the recent cooling measures and the possibility of an oversupply of new homes.

As thousands of already launched units await buyers, developers may put off further launches until the market begins to pick up.

Thankfully, interest rates remain low and many property firms are cashed up from the bumper market in previous years so they can ride out the slump.

Colin Tan, Research Head at Chesterton Suntec International, said, “If a developer has not launched its project yet, it might be better not to launch because once you do you're locked in. But if you don't, then you can still adjust your plans according to changing market conditions.”

There are at least 25 launch-ready projects in districts 9, 10 and 11, prime areas for luxury homes. There are over 2,000 unsold homes, including units at Leedon Residence, Ardmore 3 and TwentyOne Anguilla Park, according to property consultancy firm CBRE.

Projects are considered launch-ready if they have obtained all the prerequisites and approvals for sale and are merely waiting for the green light from property developers.

Tan noted that developers are still earning revenue with healthy sales at mass market projects. Thus, selling city-centre homes is not urgent, as prices still fall below their previous peak.

CBRE found that half the units, or 2,846 homes at 30 already-launched projects in districts 9, 10 and 11 were still unsold as of the end of November last year.

Info courtesy - PropertyGuru.com.sg

S'PORE PROPERTY PRICES TO DECLINE 12.5% IN 2012

2012-01-09T02:37:00.001-08:00

S'PORE PROPERTY PRICES TO DECLINE 12.5% IN 2012

Jan 9, 2012

BREAKING NEWS: The prices of Singapore’s residential property will decline by 12.5 percent this year and a further 8 percent during 2013 according to a new report from Bank of America Merrill Lynch.

“We maintain our view of a 2012 inflection point for residential pricing driven by excess supply, demand moderation and slowing economic growth,” noted the report which was published today.

“We forecast prices to fall 12.5 percent in 2012 and 8 percent in 2013 and would avoid exposure to residential developers. Despite recent price declines, we think it is too early to turn positive and would wait for evidence of a physical market correction before re-visiting the sector.”

Commenting on the latest attempts to cool the market which were introduced in early December, the authors of the report said: “While the first rounds of cooling measures did not succeed in bringing prices down, they did slow the pace of price acceleration. We believe the introduction of the additional buyers stamp duty will tip the scale and put a dent on investment demand, particularly from foreigners who account for 20 percent of volumes. We expect the measures to accelerate pricing declines.”

Bank of America Merrill Lynch had previously forecast a 7.5 percent decline of residential property prices during 2012 and 10 percent in 2013. The company is now predicting a combined 20 percent drop during the next two years.

The company is also predicting substantial oversupply in the private market during the next four years.

“We believe the high-end will be impacted more severely from a reduction in foreign participation while mass-market will be hit by affordability concerns and HDB policies. Historic high supply will easily absorb any pent-up demand. During 2012-2015, we expect 60,000 new private homes to be delivered, equating to 15,000 new units per annum (70 percent above the 15-year historic average). Together with HDB supply, we estimate an addition of 150,000 units (+13 percent) to housing stock. Even after we account for estimated pent-up demand of 14,000 units, we see oversupply of up to 25,500 units in the private market by 2015, hence putting pressure on prices.”

Info courtesy - PropertyGuru.com.sg

NEW COOLING MEASURES MAY BE SCRAPPED IF ECONOMY WORSENS

2011-12-29T05:37:00.000-08:00

NEW COOLING MEASURES MAY BE SCRAPPED IF ECONOMY WORSENS

Dec 29, 2011

The latest property cooling measures could be removed if the Singapore economy deteriorates or stagnates amid the looming economic downturn, according to analysts.

However, if home prices continue to increase despite the new policy, home buyers can expect the measures to remain.

According to a report by The Straits Times, developers have been giving warnings since the implementation of the cooling measures, saying it could turn away foreign investment, drive down property values, and therefore, possibly damage an already volatile economy.

Wong Heang Fine, President of the Real Estate Developers Association, warned of a knock-on effect on mortgages that could lead to a decline in home equity values and shrinking wealth.

Info courtesy - PropertyGuru.com.sg

INFLATION FIGURES GROW HIGHER THAN EXPECTED

2011-12-27T05:54:00.000-08:00

INFLATION FIGURES GROW HIGHER THAN EXPECTED

Dec 27, 2011

Ending the generally gloomy economic year, inflation for November has reached higher levels than expected, amid deepening concerns over slow economic growth, according to the Straits Times.

Exceeding market expectations of 5.3 percent, the report noted that consumer prices surged by 5.7 percent compared to a year ago. According to data released by the Department of Statistics, the new inflation figure was due mainly to the increase of housing, food and transport costs.

The report added that the weaker Singapore dollar, which makes imports pricier, is also a contributing factor.

Info courtesy - PropertyGuru.com.sg

MAJORITY OF S'POREANS STILL FEEL HOMES TOO EXPENSIVE

2011-12-23T05:59:00.000-08:00

MAJORITY OF S'POREANS STILL FEEL HOMES TOO EXPENSIVE

Dec 23, 2011

If the results of a recent PropertyGuru real estate affordability sentiment survey are anything to go by, the majority of home buyers in Singapore should be satisfied with the latest government cooling measures.

Carried out in cooperation with market research firm, Blackbox Research, the survey polled over 1,737 respondents and revealed that home buyers and investors are generally not satisfied with property prices. Around 49 percent of the respondents believe that properties across all categories in Singapore are expensive, while only 29 percent perceive otherwise.

Some 60 percent disagree that the government is doing enough to keep prices affordable, a three percent increase from the last survey done in June 2011.

The survey was conducted before the additional stamp duty was introduced, indicating that it could not have come at a better time to ease consumer concerns.

“The Singapore government should be lauded for its efforts to make property prices affordable, especially for first-time home buyers. Given the gloomy economic condition and the fact that Singapore’s property price index has been climbing over the last five years, the new measures are a welcome respite for Singapore’s red-hot property market,” said Romesh Navaratnarajah, Singapore editor at PropertyGuru.

“The measures should mitigate some of the negative effects of hot money flowing into Singapore. Due to the Eurozone crisis, many investors have been shifting their attention to Singapore, especially the high-end market which has contributed to skyrocketing prices,” he added.

Meanwhile, more local property investors, accounting for 19 percent of respondents, would consider investing overseas compared to 14 percent in the previous survey.

Malaysia was the top choice with 32 percent, followed by Australia at 24 percent, while New Zealand and the Philippines both recorded nine percent.

Info courtesy - PropertyGuru.com.sg

HDB RESALE FLAT PRICES TO STAY STABLE, SAY ANALYSTS

2011-12-23T05:55:00.000-08:00

HDB RESALE FLAT PRICES TO STAY STABLE, SAY ANALYSTS

Dec 23, 2011

HDB resale prices will likely remain stable next year, as COVs (Cash-Over-Valuation) soften marginally.

This will result in an overall price correction of between one and five percent, while sales volumes are expected to decline slightly as buyers assess their options outside the resale market.

A potential threat to the HDB resale market will come from the new supply of executive condos and BTOs.

According to Mohamed Ismail, Chief Executive at PropNex Realty, prices of HDB resale homes could correct by one to two percent.

“Overall, we believe that HDB resale prices will remain, with marginal softening of the COVs only in the second half of 2012,” he added.

But Lee Sze Teck, Senior Manager of Research and Consultancy at Dennis Wee Group (DWG), believes that HDB resale flat prices could post a five percent correction.

On the other hand, Eugene Lim, Key Executive Officer at ERA Realty Network, noted that HDB resale prices could rise by five to six percent for 1H2012.

“So far, much has been said that Singapore's economic growth may slow down or even run into a recession should the global situation deteriorate. Whilst the threat remains, things have not yet turned bad,” he said.

Info courtesy - PropertyGuru.com.sg

S'PORE HOUSING MARKET TO DECLINE NEXT YEAR

2011-12-20T06:01:00.000-08:00

S'PORE HOUSING MARKET TO DECLINE NEXT YEAR

Dec 20, 2011

The threat of a global economic double-dip and additional property cooling measures in Singapore may result in a decline of buying interest in the next six months, according to latest residential market report by Savills.

This year, Savills expects new home sales (excluding executive condominiums) to hover between 15,000 units and 15,500 units, a slight decline from last year’s record of 16,292 units.

On the other hand, leasing volume is expected to rise further as more foreigners shift from buying to renting homes.

Due to the rise of expatriates relocating to Singapore for job opportunities, leasing demand is expected to reach between 10,000 and 10,500 transactions in Q4.

Savills expects total leasing volume to reach a record high of between 44,000 and 45,500 transactions this year.

According to its data, prices of super-luxury and high-end homes are expected to remain stable in Q4, after a decline in the previous quarter.

The average unit price for non-landed high-end private homes rose marginally by one percent to S$2,268 psf in Q4, while the average price for super-luxury residential properties dropped marginally by 0.2 percent to S$3,661 psf in the same period.

Prices for new mass-market non-landed homes may grow by one percent in Q4 2011.

Meanwhile, after factoring in several creative marketing packages, prices of new mass-market homes could fall five percent for the whole of next year, while prices of high-end non-landed homes may slip by 10 percent.

In addition, rents may correct by five percent next year as a result of more completed homes in the coming months and shrinking expatriate residential budgets.

Info courtesy - PropertyGuru.com.sg

HDB PROPERTY TAX TO RISE IN 2012

2011-12-05T06:03:00.000-08:00

HDB PROPERTY TAX TO RISE IN 2012

Dec 5, 2011

The rise in the market value of HDB flats could lead to a higher property tax next year, according to The Straits Times.

However, most HDB flat owners may bear only a marginal increase, after a government rebate was introduced for lower- and middle-income households.

A one-time rebate of S$55 will act as partial compensation for the increased tax. This rebate is not applicable to flats which are not owner-occupied.

The announcement was made by the Inland Revenue Authority of Singapore (IRAS) last Friday, as the annual values (AVs) of HDB flats are to be amended in 2012, reflecting the increase in market values.

It added that all owner-occupiers of one- and two-room HDB flats will continue to pay zero property tax next year, while those in three-room flats will pay the same amount as the previous year.

Owners of four- to five-room flats will each pay an increase of S$5 to S$29 for the year.

Info courtesy - PropertyGuru.com.sg

S'PORE HOUSEHOLDS MORE RESILIENT TO ECONOMIC CRISIS

2011-11-22T18:40:00.001-08:00

S'PORE HOUSEHOLDS MORE RESILIENT TO ECONOMIC CRISIS

Nov 22, 2011

Singaporean households are more resilient and can weather the uncertain global economy.

The Monetary Authority of Singapore (MAS), in its Financial Stability Review for November, revealed that household capital was driven by rising property prices.

The “broad-based growth of the Singapore economy has underpinned the recovery of the property market in the past three years, as household net wealth continued to improve from its trough” in Q1 2009, it said.

Household net wealth, which refers to household assets less household debt, hit S$1,247 billion in Q2, around 27 percent higher compared with Q2 2008. Meanwhile, property holdings climbed 13.4 percent to S$738 billion in Q3 this year.

The increase was “largely due to the higher value of property holdings as the property market continued on an upward trend”, said the MAS.

Info courtesy - PropertyGuru

HDB FLAT BOOKINGS UP 32%

2011-11-21T18:44:00.000-08:00

HDB FLAT BOOKINGS UP 32%

Nov 21, 2011

As Singapore recovers quickly from the economic crisis, more home buyers in the red-hot public housing market have been snapping up flats in the past year.

However, the government's cooling measures have affected the resale market, as reflected in the decline of resale flat transactions.

A recent report showed that potential buyers booked 17,419 flats in the year ended March 2011, up 32.2 percent from 13,177 in the previous year.

In contrast, the number of applications for resale flats dropped 23.5 percent, from 39,320 to 30,061.

The HDB launched 12 Build-To-Order (BTO) sales exercises in response to the strong demand, offering 17,294 flats, up 54 percent from the 11,212 units launched last year.

HDB CEO Cheong Koon Hean said it has the potential to do more.

“I hope to build on the depth of knowledge that has accumulated over five decades... and make further inroads,” she said.

She noted that “HDB is also looking at injecting greater social and economic value where residents will be actively engaged in shaping the future of their town” beyond the existing architecture, design and innovations.

Info courtesy - PropertyGuru

S'PORE HOME LOANS FEEL IMPACT OF COOLING MEASURES

2011-11-21T18:35:00.000-08:00

S'PORE HOME LOANS FEEL IMPACT OF COOLING MEASURES

Nov 21, 2011

The number of new housing loans and property deals in Singapore declined after the last round of cooling measures implemented in January this year, according to the Monetary Authority of Singapore (MAS).

The MAS’ latest Financial Stability Review report showed that new housing loans dropped to S$12.4 billion in Q3 while outstanding housing loan growth eased to 18 percent year-on-year in Q3, down from 23 percent in Q4 last year.

The report noted that the key drivers behind the moderation were decreases in both sub-sale and resale activities.

“The policy measures taken by the government appear to have dampened the momentum in the private residential property market somewhat,” said the MAS.

Info courtesy - PropertyGuru

SECOND MORTGAGES ON THE DECLINE IN S'PORE

2011-11-17T18:32:00.000-08:00

SECOND MORTGAGES ON THE DECLINE IN S'PORE

Nov 17, 2011

Latest figures from Credit Bureau Singapore (CBS) suggest that speculative investors intending to profit from the country’s residential market are cutting back on their purchases, in light of the government’s cooling measures.

Gathered from a number of financial institutions, the figures show a considerable decline in the number of buyers taking out new property loans in addition to existing loans.

Data from the CBS noted a 33 percent drop from January to August, 38 percent lower than for the whole of 2010.

Info courtesy - PropertyGuru

CALL FOR HDB TO GO BACK TO BASICS

2011-10-19T23:17:00.000-07:00

CALL FOR HDB TO GO BACK TO BASICS

Oct 19, 2011

Mr Lim Wee Kiak, Member of Parliament for Nee Soon, has told the parliament that prices of HDB flats have risen, and urged the HDB to go “back to basics”.

He wants the government to ensure that homeownership is the HDB’s top priority and offered his own suggestions as well.

Mr. Lim proposed stopping flat owners from renting out their flats after they upgrade to a private property. He noted that additional taxes should be paid by permanent residents (PRs) using their flats for gain or rental.

He added that lower income families should get more grants and that the Minimum Occupancy Period (MOP) should be extended to discourage them from selling prematurely.

Mr. Lim also noted that the pricing policy of new flats should be reviewed, as the system of appraising the market and providing discounts will not slow the upward trend of flat prices.

Info courtesy - PropertyGuru.com.sg

GOVT WANTS PUBLIC'S OPINION ON REAL ESTATE AGENCY INDUSTRY

2011-10-18T23:23:00.001-07:00

GOVT WANTS PUBLIC'S OPINION ON REAL ESTATE AGENCY INDUSTRY

Oct 18, 2011

The government will conduct a nationwide survey to gauge the public’s perception of the real estate agency industry, according to Lee Yi Shyan, Minister of State for National Development.

To cover four areas, the survey will include questions relevant to customer expectations and satisfaction.

The Minister added that the survey results will be used by the Council for Estate Agencies (CEA) in consumer education and industry development.

Speaking at the inaugural Key Executive Officer Seminar today, Mr Lee noted that the authorities have established enforcement and checks on the real estate industry.

CEA has also set up an Inspection and Compliance Section, which aims to identify infringements and unethical behaviour to ensure that real estate agents follow proper systems for supervision and management of salespersons.

Meanwhile, the real estate agency industry produced over S$1.25 billion in commissions last year.

As of September 2011, more than 33,000 property agents have registered with CEA.

Info courtesy - PropertyGuru.com.sg

S'PORE PRIVATE HOME SALES SOAR 21%

2011-10-18T23:20:00.001-07:00

S'PORE PRIVATE HOME SALES SOAR 21%

Oct 18, 2011

The number of new private homes sold in Singapore last month rose to 1,631 units, up 21 percent from 1,351 units sold in August, according to data released by the Urban Redevelopment Authority (URA).

Including executive condos (ECs), the number of private homes sold in September hit 2,064 units.

“September’s results were remarkable and largely contributed by the sale of A Treasure Trove closing 683 units, making up 42 percent of the total transactions,” said Mohamed Ismail, Chief Executive of PropNex.

“These homebuyers are mainly HDB upgraders and the purchase rationale was the attractive pricing, with median price of S$915 psf in this development, and its proximity to the Punggol MRT.”

The highest selling projects (excluding ECs) in the Outside Central Region (OCR) and Rest of Central Region (RCR) were the main drivers of the strong sales figure, accounting for 929 units, or about 57 percent of the total number of units sold in September.

A Treasure Trove at Punggol was the best selling project in September with 683 units sold at a median price of S$915 psf.

Developed by Sim Lian Group, A Treasure Trove features two-bedroom, two-plus-study, three-bedroom, three-plus-study and four-bedroom units, as well as high-end single-level penthouses with seven bedrooms.

euHabitat came in second place with 138 units sold at an average of S$1,191 psf, while The Meyerise along Meyer Road followed with 108 units sold at an average price of S$1,789 psf.

Arc @ Tampines, an executive condominium at Tampines Avenue 8 sold 233 units out of the 574 units launched in September at an average price of S$734 psf. The increased interest could be a result of the government raising the income ceiling for ECs to S$12,000.

Moving forward, Tejaswi Chunduri, real estate analyst at PropertyGuru, said that home sales could see “sluggish demand due to the volatile economic conditions and seasonal slowdown, and might reach a total of around 1,200.”

“Home buyers and investors might take a more cautious approach and prices might adjust as per the market demands in the coming months,” she added.

Info courtesy - PropertyGuru.com.sg

S'PORE ECONOMY EXPANDS 5.9%, AVOIDS RECESSION

2011-10-14T23:25:00.000-07:00

S'PORE ECONOMY EXPANDS 5.9%, AVOIDS RECESSION

Oct 14, 2011

The Singapore economy grew 5.9 percent in the third quarter, while GDP rose 1.3 percent on a seasonally-adjusted quarter-on-quarter annualised basis, according to advance estimates released by the Ministry of Trade and Industry (MTI).

The country’s GDP growth implies that its economy has avoided a recession after contracting in the second quarter.

According to the MTI, Singapore’s manufacturing sector, which contributes a quarter of the GDP, has declined for three consecutive months, although weakness in the electronic sector was partly offset by strength in the pharmaceutical sector, where output can be highly volatile.

The MTI said it expects 2011 GDP growth to be around five percent, against an earlier forecast of between five and six percent.

Meanwhile, the Monetary Authority of Singapore (MAS) will continue to raise the local currency but at a slower pace, effectively supporting the economy and putting less emphasis on containing inflation.

“The MAS is clearly dovish on growth and it is also slightly dovish on inflation,” said Edward Lee, an economist from Standard Chartered Bank. “We barely escaped recession in the third quarter as most of the growth came from the highly volatile biotech sector. The underlying trend is still for softer growth.”

The central bank said it will continue to aim for a “modest and gradual appreciation” of the local currency’s nominal effective exchange-rate policy band in the period ahead.

“Given the stresses and fragility in the advanced economies, the prospects for growth in Singapore's major trading partners have deteriorated,” it said.

Info courtesy - PropertyGuru.com.sg

LANDED HOME APPROVALS FOR PRS TO DECLINE ON TIGHTER RULES

2011-10-13T20:16:00.000-07:00

LANDED HOME APPROVALS FOR PRS TO DECLINE ON TIGHTER RULES

Oct 13, 2011

The number of approvals granted to permanent residents (PRs) who want to acquire landed homes in Singapore will likely fall by more than 50 percent after the criteria was further tightened recently, according to Law Minister K Shanmugam.

“After the further tightening, I suspect we are looking at very few people who would qualify. I think probably less than half of those who had previously qualified — under the previous already strict criteria — would qualify now. I’d be surprised if approvals are more than 50 per year.”

“Our belief is that landed property is primarily for Singaporeans and the exceptions have to be very rare,” Mr Shanmugam told reporters, after visiting a bungalow at Goodwood Hill.

Over the last three years, the Ministry of Law has received approximately 230 applications per year from PRs for the acquisition of landed residential property, said a ministry spokeswoman.

She added that around 60 percent of the applications were approved.

The revised criteria, however, will see the approval rate fall by more than 50 percent. This implies that the number of approvals could drop from about 138 per year to not more than 50.

“Since the criteria have been further revised this year, the approval rate is expected to fall further from the already small number of approvals in the past years,” the spokeswoman said.

Foreigners cannot acquire landed properties in

Singapore

without the prior approval of the law ministry. Only foreigners who are PRs can apply to buy such properties.

Currently, PRs own approximately 3.5 percent of the 70,000 landed homes in

Singapore

, including properties in Sentosa Cove.

Info courtesy - PropertyGuru.com.sg

SINGAPORE ECONOMY TO SEE SLOWER GROWTH, SAYS THARMAN

2011-10-13T20:14:00.001-07:00

SINGAPORE

ECONOMY TO SEE SLOWER GROWTH, SAYS THARMAN

Oct 13, 2011

Singapore

is expected to experience slower economic growth in the following years, as the global economy slows, said Monetary Authority of Singapore (MAS) Chairman and Deputy Prime Minister Tharman Shanmugaratnam.

“The global economic environment has become more uncertain. There is a general lack of confidence that the major advanced countries have the will to address the structural problems that underpin their weak economic growth and unsustainable fiscal positions.”

“The headwinds from slower global growth will mean slower growth in

Singapore

for the next few years,” he said.

He added that although inflation has been rising, it is expected to moderate by the end of the year.

“But we must be vigilant against a resurgence of cost pressures.”

“Continuous judicious management of the effective exchange rate of the

Singapore

dollar against a trade-weighted basket of currencies will help dampen inflationary pressures while supporting economic growth in an uncertain and volatile external environment,” said Mr Tharman.

Market analysts expect MAS to tone down the Singaporean dollar’s appreciation within the foreign exchange (FOREX) in its monetary policy statement. This move aims to keep inflation as low as possible without hampering economic growth at a time when the global economic outlook is bleak.

Info courtesy - PropertyGuru.com.sg

MOST S'PORE BORROWERS STILL CHOOSING SIBOR

2011-10-13T20:06:00.000-07:00

MOST S'PORE BORROWERS STILL CHOOSING SIBOR

Oct 13, 2011

According to a recent article on PropertyGuru (Fixed-rate home loans gain steam in

Singapore

), more home buyers are looking to fixed-rate loans to finance their property purchases.

However, Sibor packages are still the most attractive loans on offer, said John Lee, Head of LoanGuru.com.sg, a free online home financing service.

Based on home loan applications received by LoanGuru, around 65 percent of borrowers are keen on Sibor-pegged packages. Meanwhile, approximately 20 percent, 10 percent and five percent are looking for SOR-pegged packages, fixed-rate loans and board rates respectively.

The three-month Sibor, or interbank rate, is at 0.38 percent as of today, approximately 12 percent more than its 0.34 percent closing on 9 September.

Despite the increase, Lee said Sibor rates are still lower compared to fixed-rate packages, "normally 0.3 percent to 0.5 percent lower". He also added that it is less volatile than SOR packages.

Meanwhile, banks' internal board rate packages rank the least popular. "The board rate is set by individual banks, and not very transparent compared with Sibor and SOR packages," Lee said.

Info courtesy - PropertyGuru.com.sg

CIRCLE LINE NOW FULLY UP AND RUNNING

2011-10-10T20:28:00.000-07:00

CIRCLE LINE NOW FULLY UP AND RUNNING

Oct 10, 2011

The Circle Line rail network is now fully operational, with the opening of the remaining 12 stations from Caldecott to HarbourFront last Saturday.

Claiming the lives of four people during a highway collapse in 2004, the 28-station train line took an entire decade to complete. The line stretches around the island, taking commuters from Dhoby Ghaut in the south, through the eastern, northern and western districts to its last stop at HarbourFront station in just 58 minutes.

“This has been a day that we have waited for a very long time,” said Deputy Prime Minister Tharman Shanmugaratnam, during his speech at the line’s official opening at the new Botanic Gardens station.

“The Circle Line brings greater convenience to people from all over

Singapore

including those who are taking the existing lines.”

The government expects daily ridership to hit approximately 400,000 commuters within six to nine months of operation.

The new Circle Line is also expected to lessen commuter traffic on the North-South and East-West lines by up to 15 percent.

Info courtesy - PropertyGuru.com.sg

FIXED-RATE HOME LOANS GAIN STEAM IN SINGAPORE

2011-10-10T20:25:00.001-07:00

FIXED-RATE HOME LOANS GAIN STEAM IN

SINGAPORE

Oct 10, 2011

With higher interest rates looming, borrowers are looking to fixed rate loans for security. The three-month Sibor, or interbank rate, closed at 0.38 percent on 7 October, approximately 12 percent more than its 0.34 percent closing on 9 September.

DBS Bank said 20 percent of new borrowers now opt for a fixed interest rate package, with the first package having been launched in August. The rate since 1 September has been 1.49 percent.

According to a DBS spokeswoman, interest rates will remain low, as the current global economy presents evident risks and uncertainties.

“To give customers peace of mind when it comes to their mortgage repayment, which is a long-term commitment, DBS introduced three-month Sibor floating rate packages with interest rate cap in August,” she said.

“Under this unique scheme, customers benefit from the current low interest rate and at the same time, enjoy certainty if interest rate starts to rise.”

Analysts expect interest rates to rise as the economy slows, which could cause the Monetary Authority of Singapore (MAS) to delay the appreciation rate of the Singaporean dollar (SGD).

“We expect a slower rate of appreciation of the SGD which means that interest rates will rise relative to the

interest rates,” said Wei Zheng Kit, an economist at Citi, adding that the Sibor could climb 0.5 to 0.7 percent, depending on the MAS.

Info courtesy - PropertyGuru.com.sg

HOUSING MARKET WILL STABILISE, SAYS PM LEE

2011-10-10T20:25:00.000-07:00

HOUSING MARKET WILL STABILISE, SAYS PM LEE

Oct 10, 2011

The

Singapore

government should be able to “stabilise” the local housing market within the next four years, said Prime Minister Lee Hsien Loong, in a speech to mark the completion of a S$48.3 million upgrading effort in a housing project in Ang Mo Kio.

In his speech, PM Lee said that since some of the measures imposed by the government to curb the real estate market have started to take effect, the market is expected to stabilise in four years’ time.

“There's no need to get worried, because we are building, and we are keeping the prices stable. We will make sure that Singaporeans who need flats will get flats, and they will be affordable and they will be good flats,” he said.

Aside from developing new flats, the government will also continue to enhance existing estates, with the Main Upgrading Programme (MUP) as one of the various initiatives to benefit residents.

PM Lee said such programmes enable the government to show its commitment to share its success with all citizens.

Info courtesy - PropertyGuru.com.sg

S'PORE PROPERTY SECTOR UNDERWEIGHT: S&P

2011-10-07T20:32:00.000-07:00

S'PORE PROPERTY SECTOR UNDERWEIGHT: S&P

Oct 7, 2011

Standard & Poor’s (S&P) has labelled

Singapore

’s property sector “underweight”, noting that the private property market can anticipate a correction of five to 10 percent.

The major supporting factor lies in the low interest rates, which permits affordable mortgage and positive carry, said Lee Wee Sieng, analyst for S&P Capital IQ Equity Research (Asia).

He said that more people could be lured to property, considering the low interest rates offered by banks in respect to inflation rates. Likewise, low loan rates may result in new home purchases, given the higher returns from property leasing.

“Mortgage is still very affordable, with positive carry and negative real interest rate. And we don't see interest rate going up for the next two or three years,” said Lee.

Property prices are at a peak due to a combination of positive factors, including

Singapore

’s gross domestic product (GDP) and low unemployment rates. These, in turn, have elevated the average household income.

The GDP in 2010 expanded by 14.5 percent, even with an unemployment rate of 2.2 percent.

The financial services company predicts that the country can expect growth of between 4.3 and 4.8 percent throughout 2011, lower than the original projection of 4.5 to five percent, implying that recession will likely be short and shallow, with Q4 seeing an upward rally.

Info courtesy - PropertyGuru.com.sg

NEW WORRIES EMERGE IN THE INDUSTRIAL PROPERTY SECTOR

2011-09-20T06:37:00.001-07:00

NEW WORRIES EMERGE IN THE INDUSTRIAL PROPERTY SECTOR

Sep 20, 2011

The weakening sentiment in Singapore’s residential property market is slowly seeping into the industrial property market, with analysts expecting cautious bids in land tenders and lesser demand for office space, according to The Straits Times.

Analysts noted that the European debt crisis, US recession, slow economic growth and tighter foreign labour policies are adding to a mood of uncertainty.

Meanwhile, Global Orion Properties said that policies on hiring overseas workers need a review to further boost the industrial property sector.

“There may be signs of a global economic slowdown but there are no conclusive indicators that a recession is imminent,” said Global Orion Director Satia Narjadin.

“Should there be one, we believe in the resiliency of Singapore’s industrial sector and are confident that with the government’s pro-activeness and support, the impact will be minimized.”

He noted that industrial property prices are not expected to increase by as much as they have in the last two years. However, strong and genuine demand is still expected, attributed to the recent cooling measures in the residential property market.

“The recent measures have created a larger pool of potential buyers which will drive demand in industrial developments. It has been reported that rental prospects in Singapore is the strongest in Asia Pacific and that rents were up five percent in the first half of 2011 compared to the previous year. Total returns on prime industrial property are expected to be approximately 12 percent over five years,” he said.

Info courtesy - PropertyGuru.com.sg

PRIVATE PROPERTY DEMAND TO REMAIN HIGH DESPITE GLOBAL SLOWDOWN

2011-09-20T05:54:00.000-07:00

PRIVATE PROPERTY DEMAND TO REMAIN HIGH DESPITE GLOBAL SLOWDOWN

Sep 20, 2011

Demand for private property in the country will remain high amid the turmoil in the stock market and the economic concerns in the United States and Europe, according to an article by TODAYonline.

Experts noted that demand for private properties will be further enhanced by the demand in the public housing market, causing more Housing and Development Board (HDB) upgraders to move into the private property segment.

Although some had expected property investors to pull out, they have remained active in supporting competitively priced projects, predominantly located in the suburbs. Donald Han, Vice Chairman at Cushman & Wakefield, said the strength of the property market should not be ignored as events in Europe and the US have resulted in a low-interest rate environment in the country.

The article noted that HDB upgraders are attracted to executive condominiums (ECs) and private homes in townships and suburbs, due to the inflation of HDB asset prices and the desire to acquire private properties. Demand for high-end properties in central areas has steadily increased, contrary to the belief that sentiment in the broad market is weak, as suggested by some sceptical investors.

Info courtesy - PropertyGuru.com.sg

INFLATION PRESSURE TO EASE IN 2011

2011-09-19T06:23:00.000-07:00

INFLATION PRESSURE TO EASE IN 2011

Sep 19, 2011

Though Singapore’s inflation rate hit 4.8 percent last year, it is expected to ease off to three percent this year, according to DBS.

“Inflation figures for August 11 will be announced this Friday and a forecast of 4.7 percent year-on-year has been pencilled in our forecast, down from 5.4 percent in the previous month,” it said.

“As pointed out in this space several times in the past, inflation has peaked at 5.5 percent in January and apart from the surprise spike in July to 5.4 percent, it should otherwise be on a sticky downward grind in the coming months.”

DBS noted that higher-than-expected domestic inflationary pressure has kept inflation elevated in the near term, despite the slowdown in commodity prices and global energy since Q2. However, this will likely change in the coming months. Given the uncertain economic conditions in the US and Europe, global economic activity is moving slowly.

“This could bring about deflationary pressure, which could spillover to the domestic CPI inflation,” said DBS.

Though inflation in 2011 was higher than expected at 4.8 percent, full-year inflation should ease off to 3.0 percent next year due to a slower global outlook.

In addition, “a dip in the headline number could increase the odds of a possible easing from the central bank in next month's policy review.”

“Though the authority will most likely maintain its current policy stance of a gradual appreciation in the Sing NEER, downside risk to growth and easing inflation could tilt policy decision towards a more neutral policy stance,” said DBS.

Info courtesy - PropertyGuru.com.sg

INDIA PROPERTY SHOW TARGETS NRIS IN SINGAPORE

2011-09-19T06:20:00.000-07:00

INDIA

PROPERTY SHOW TARGETS NRIS IN

SINGAPORE

Sep 19, 2011

The Hindu & Hindustan Times India Property Show 2011 was held at the Singapore Expo over the weekend, showcasing the largest selection of pan-Indian properties to Singapore and the region.

The event, which marked a collaborative effort between The Hindu and The Hindustan Times in conjunction with the Confederation of Real Estate Developers' Associations of India (CREDAI) and the Singapore Indian Chamber of Commerce and Industry (SICCI), aimed to promote property investment opportunities to Indians in Singapore.

India has been a growing market in Singapore, as the number of non-resident Indians (NRIs) and overseas citizens of India in Singapore is estimated to reach 200,000. In addition to this, more Singapore buyers are also setting their sights on properties in India, based on a recent Q2 property sentiment survey by PropertyGuru.

The survey, which had over 2,200 respondents, found that 14 percent of those considering overseas property investments listed India as their top pick, behind Malaysia (37 percent) and ahead of Australia (10 percent).

Overall, the turnout at this year’s event was much better than last year, attributed to recent economic effervescence, especially in Tamil Nadu. Property developments on Old Mahabalipuram Road, Bangalore Highway and GST Road in Chennai, India, which are the three designated growth corridors marked for expansion, were promoted at this year's event.

These areas are expected to become popular among Indians in Singapore looking to acquire property as a long-term investment or for their families back home.

Meanwhile, more than 30 Indian developers showcased their projects in Singapore last month at the three-day Indian Property Show organised by Dubai-based Sumansa Exhibitions LLC.

Info courtesy - PropertyGuru.com.sg

FOREIGNERS SHOULD BE ABLE TO OWN LANDED PROPERTIES IN S'PORE, SAYS EXPERT

2011-09-19T06:18:00.000-07:00

FOREIGNERS SHOULD BE ABLE TO OWN LANDED PROPERTIES IN S'PORE, SAYS EXPERT

Sep 19, 2011

Landed properties in Singapore should be made available to foreign investors too, said Tim Murphy, Chief Executive Officer of IP Global.

This view was with regards to the government’s strict regulations of making landed properties in Singapore exclusive to Singaporeans.

“I understand they are trying to protect the local market, but they don’t mind selling me other stuff, so it’s kind of not on a level playing field. So, I don’t like that and I don’t like the laws that inhibit me from buying real estate here either,” he said.

He noted that there are other ways of protecting Singaporeans without putting restrictions on landed property.

“It is good to protect HDB and affordable private housing and they should try and protect that type of property and people should be able to buy property at S$300,000 to S$400,000 with an 80 percent loan.”

Only citizens and permanent residents (PRs) can acquire landed properties in Singapore, while those who wish to obtain such properties must obtain approval from the Law Ministry.

“The government takes a strict approach towards ownership of landed property in Singapore by PRs,” said Law Minister K Shanmugam, in a recent Business Times report.

According to the minister, PRs own only 3.5 percent of landed homes in the country. This includes Sentosa Cove properties, where the government has approved acquisition by foreigners.

“The government believes that landed residential properties must remain the primary preserve of Singapore citizens, given their scarcity in Singapore,” Mr Shanmugam noted.

Info courtesy - PropertyGuru.com.sg

SINGAPORE'S PROPERTY DEMAND WON'T SLOW, CAPITALAND SAYS

2011-09-19T06:01:00.000-07:00

SINGAPORE

'S PROPERTY DEMAND WON'T SLOW, CAPITALAND SAYS

Sep 19, 2011

The government’s cooling measures will not slow the demand for residential properties in Singapore, according to Wong Heang Fine, CEO of CapitaLand Residential Singapore.

He noted that prices will keep rising this year, though at a moderate pace. He also said that high liquidity and continuing low interest rates will support demand.

Rental rates for commercial space will also moderate, said Chong Lit Cheong, CEO of CapitaLand Commercial.

This is due to the softening of demand with most major tenants, such as investment banks, having already secured office space.

Last week, CapitaLand unveiled the designs for a S$1.4 billion commercial project located on the former Market Street Carpark site and a new condominium in Bishan.

“In general, Singapore is a small city in terms of area, the demand for office space would definitely grow if Singapore were to grow into a cosmopolitan city and a financial centre,” said Liew Mun Leong, President and CEO of CapitaLand Group.

Info courtesy - PropertyGuru.com.sg

ENGLISH EXAM A HURDLE FOR PROPERTY AGENTS

2011-09-16T06:32:00.000-07:00

ENGLISH EXAM A HURDLE FOR PROPERTY AGENTS

Sep 16, 2011

With a slew of new agent regulations in place this year, existing real estate agents stand to lose their licenses if they don’t pass the Real Estate Salesperson exam within a year.

The new ruling was implemented nine months ago and those who are trying to overcome the language hurdle have either given up on the test or are dropping out entirely from the industry, according to a local media source.

Affected agents have appealed to the government to consider their track records rather than their educational qualifications when granting permanent licenses.

Mr Lu, a 52-year-old agent who has reportedly failed the test four times, said that having a Primary 6 qualification and being Chinese-educated made it hard for him to pass the English exam.

Ms Tan, a 46-year-old agent, who had failed the test eight times, said the questions are long and reading them takes up to one minute, making it hard to complete the exam within two hours.

Both agents have over 15 years of experience in the industry and take in an average of S$10,000 per month in commission.

The Council for Estate Agencies said English has to be the basis for the exam, as the documents and forms pertaining to property transactions in the country are in English.

As such, the agents must be capable of guiding their customers before they sign any contracts or documents. Thus, it is critical for them to understand these documents, procedures and government policies which are written in English.

Some agents argued that their tenure in the industry has given them enough knowledge of the rules and regulations to explain a standard contract.

Lu solved his problem by partnering with co-workers who are more proficient in English and letting them explain the contract to the clients.

Info courtesy - PropertyGuru.com.sg

PRIVATE HOMES, EC SALES SLIDE 16%

2011-09-16T06:28:00.000-07:00

PRIVATE HOMES, EC SALES SLIDE 16%

Sep 16, 2011

Sales of private homes slipped to 1,638 units in August, down 16 percent from a month earlier. Excluding executive condominiums (ECs), the total number of homes transacted in August totalled 1,348, a decrease of three percent from 1,386 in July.

The decline in sales volumes was primarily attributed to the fall in sales for ECs. Last month, only 290 EC units were sold compared to 568 units in July.

According to Ms Tejaswi Chunduri, real estate analyst at PropertyGuru, the decrease came after Prime Minister Lee Hsien Loong announced the raising of the income ceiling for Build-To-Order (BTO) flats and ECs.

“As a result of this, home buyers who fall under the S$10,000 to S$12,000 income range and who otherwise might have entered into the mass to mid-end private property market are now weighing their options and might venture into the EC market,” she said.

The bulk of private home sales came from the Outside Central Region (OCR), where euHabitat, located along Jalan Eunos, sold 439 units out of the 526 released in August, at a median price of S$1,015 psf.

euHabitat features a live-work-play environment with an exclusive blend of contemporary one-bedroom suites, SOHO-style apartments, condominiums and townhouses, with prices ranging between S$541,000 and S$2.94 million.

Boathouse Residences at Upper Serangoon View has sold 202 units out of the 277 released in August at a median price of S$898 psf. Meanwhile Blossom Residences, an EC project located along Segar Road sold 176 units last month at a median price of S$706 psf.

Additionally, Keppel Land’s The Luxurie sold 151 units at a median price of S$1,053 psf. The most expensive unit sold in August was from The Marq on Paterson Hill at a whopping S$6,394 psf.

“Traditionally, August is a gloomy period in the property market due to the Hungry Ghost Festival. Overall sales in all three regions on the island remained steady but lower compared to July. Sales in the Rest of Central Region (RCR) and Core Central Region (CCR) fell to 169 (-67 percent) and 65 (-47 percent) respectively. The OCR sold 1,404 units. The number of new launches remained stagnant at 1,435 units, similar to the previous month (excluding ECs),” Chunduri said.

She added that sales in September will “pick up with the upcoming supply as more developers launch new projects after the Hungry Ghost Festival.”

Info courtesy - PropertyGuru.com.sg

CEA TO GET TOUGHER ON ROGUE PROPERTY AGENTS

2011-09-13T06:34:00.000-07:00

CEA TO GET TOUGHER ON ROGUE PROPERTY AGENTS

Sep 13, 2011

Nearly 100 “letters of advice” have been issued by the Council for Estate Agencies (CEA) to errant property companies and agents within the first year of its operations.

Launched in October 2010, CEA was established by the government to raise the professionalism of the property agency industry in Singapore.

“We have started on a lighter regulatory touch to give estate agents (property firms) and salespersons some time to adjust to the enhanced regulatory framework,” said Chionh Chye Khye, Executive Director of CEA.

“Going forward, we will be taking firmer disciplinary actions against errant estate agents and salespersons through our disciplinary committees. Penalties would include warnings, fines, revocation or suspension.”

“Court prosecution may also be undertaken for serious cases,” he added.

The CEA has also charged an unregistered agent in court since the law to rein in errant property agents took effect.

As of 31 August 2011, 33,054 real estate agents were registered with the council, and a total of 1,535 agencies have also been given licences.

Chionh noted that the number of agents could drop by 1,000 to 2,000 due to the tougher position and weakening property market outlook.

Several market players believe that CEA’s presence has worked to check unusual behaviour to some extent.

“We do see that many of the agents take CEA’s regulations very seriously. They know that they will get into trouble if they don't follow the guidelines,” said Eugene Lim, Key Executive Officer at ERA Realty.

Meanwhile, the CEA will conduct its first-ever public perception survey by the end of this year. This will serve as a baseline to observe the public’s perception of the industry in the coming years.

Info courtesy - PropertyGuru.com.sg

LAKESHORE 2 BEDROOMS UNIT FOR RENT

2011-09-04T07:28:00.000-07:00

LAKESHORE 2 BEDROOMS UNIT FOR RENT...TAKEN-GIVEN ON CORPORATE LEASE

Charming spa village, healthy-living themed condominium with panoramic view of Jurong Lake. Lakeshore is located within the future "Campus Town" of Jurong West with its host of public amenities like activity hubs, light rail system and park connectors.

Healthy home features include Aqueous (dispensers that extract fresh water from air vapour), and anti-bacteria cum anti-mould air conditioning systems with fine dust and deodorizing filters. Healthy lifestyle options include swimming, playing tennis, badminton, basketball or beach volleyball. For relaxation and de-stressing, there is a foot reflexology path, Jacuzzis, hot and cold spa pools, a fun pool and playground, and barbecue pavilions.

Close to good schools like the Canadian International School, Rulang Primary School, Nanyang Technological University. Near to the Jurong Transportation Hub with its host of amenities, shops and eateries. Future developments in Jurong West are a new community hub, a new polyclinic and Jurong Library five times the size of Library@Orchard.

FACILITIES AT LAKESHORE

Swimming Pool (Lap and fun pools)

Jacuzzi

Warm Spa

Reflective Pool

Function Area

Gym

Steam Rooms

Bbq

Children's area

Tennis Court

Basketball Play Area

Badminton Courts

ABOUT THE UNIT – AVAILABLE FROM 1^stOCTOBER.

926 Sq ft. -2 bedrooms / 3 bathrooms

It’s a designer décor unit with a beautiful greenery view.

High floor, unblocked, bright and windy. No afternoon sun. Very quiet and peaceful.

Newly renovated and very tasteful décor pleasing to one and all.

Fully furnished, Fully equipped kitchen, Aircons in all the rooms. Clean and well kept.

Spacious living room, 2 squarish bedrooms(Parquet flooring in the bedrooms),+ study room + defined dining space , 2 bathrooms, Master bathroom comes with attached bathtub.

Maids room / Bomb shelter, Yard / Laundry area.

Intercom

Aircons in all the rooms.

NEAREST MARKETS / FOOD CENTRES

Boon Lay Shopping Centre

221 Boon Lay Place Singapore 640221

How Far? 1.07 km

Taman Jurong Shopping Centre

399 Yung Sheng Road Singapore 610399

How Far? 1.22 km

Jurong Point

1 Jurong West Central 2 Singapore 648886

How Far? 1.84 km

NEAREST MRT STATIONS

Lakeside (EW26)

201 Boon Lay Way Singapore 649845

How Far? 0.21 km

Chinese Garden (EW25)

151 Boon Lay Way Singapore 609959

How Far? 1.19 km

Boon Lay (EW27)

301 Boon Lay Way Singapore 649846

How Far? 1.97 km

NEAREST SHOPPING CENTRES / MALLS

Boon Lay Shopping Centre

221 Boon Lay Place Singapore 640221

How Far? 1.07 km

Taman Jurong Shopping Centre

399 Yung Sheng Road Singapore 610399

How Far? 1.22 km

Jurong Point

1 Jurong West Central 2 Singapore 648886

How Far? 1.84 km

NEAREST SCHOOLS

Canadian International School

7 Jurong West Street 41

Singapore 649414

(West of Singapore)

Yuhua Secondary School

35 Jurong West Street 41 Singapore 649406

How far? 0.24 km

Shuqun Primary School

8 Jurong West Street 51 Singapore 649332

How far? 0.27 km

Rulang Primary School

6 Jurong West Street 52 Singapore 649295

How far? 0.42 km

GOVT RAISES INCOME CEILING FOR HDB FLATS

2011-08-15T18:42:00.001-07:00

GOVT RAISES INCOME CEILING FOR HDB FLATS

Aug 15, 2011

The government has announced that the Housing and Development Board (HDB) will be raising the income ceiling for HDB flats, from S$8,000 to S$10,000.

This will be followed by a raise in the income ceiling for executive condominiums (ECs) from S$10,000 to S$12,000.

In addition, it has promised to launch another 25,000 build-to-order (BTO) flats next year.

The higher income ceiling — which means that more people can now qualify for new HDB flats or ECs — was announced by Prime Minister Lee Hsien Loong in his National Day Rally speech yesterday.

“This is something that people have been waiting for,” said Mohamed Ismail, Chief Executive Officer of PropNex.

“It will be warmly welcomed, especially by those couples who are at the crossroads right now,” he added.

With the latest hike, the government is expecting more buyers for BTO flats.

Some market watchers expect the higher income ceiling for ECs to stave off demand for mass market condominiums.

“We estimated a probable five percent to 15 percent equivalent to 700 units to 2,000 units decline in annual new housing demand in the private market provided public housing supply keeps pace with the increase demand by this group of new eligible buyers,” said Dr. Chua Yang Liang, Singapore Head of Research and Consultancy at Jones Lang LaSalle.

“Island wide average private residential property prices maintain at zero to 1.5 percent growth per quarter,” he added.

Info courtesy - PropertyGuru.com.sg

HOME PRICES TO SEE CHANGE, SAYS CDL'S KWEK

2011-08-15T18:26:00.001-07:00

HOME PRICES TO SEE CHANGE, SAYS CDL'S KWEK

Aug 15, 2011

Kwek Leng Beng, Executive Chairman of City Developments Limited (CDL), expects property price trends in Singapore to change soon.

According to Kwek, in a span of six months, property developers will likely reduce launch prices of private housing projects not situated near MRT stations by approximately five percent, if they wish to increase the number of transactions amid the presence of more cautious buyers.

He added that developers of properties situated near MRT stations should be able to maintain their prices or even increase them marginally by at least one to three percent.

Aside from how economic developments in the Eurozone and US turn out and their impact on Singapore, the movement of private home prices will also depend on local competition.

“If in the vicinity, there are three or four developers selling at the same time, you will definitely have to consider reducing the price if you want to get out earlier.”

Unlike some analysts, he does not see an oversupply in 2013 and 2014. He noted that the government will not likely impose measures that will destabilise the market.

“I think the government is more concerned about public housing and the new (National Development) Minister has taken positive action,” he added.

Info courtesy - PropertyGuru.com.sg

MORE INDIANS PURCHASING PROPERTY ABROAD

2011-08-15T02:19:00.000-07:00

MORE INDIANS PURCHASING PROPERTY ABROAD

Aug 15, 2011

A rising number of non-resident Indians (NRIs) in Singapore are investing in properties in Singapore, Malaysia, Thailand, Australia, London, and India.

“The new wealth which they have acquired also enables them to invest beyond their shores,” said Joshua Kumar, Head of the India Desk at Knight Frank in Singapore.

According to Wendy Tang, Executive Director of Knight Frank, Indians comprise the fourth largest group of property buyers in Singapore after the Indonesians, Malaysians and mainland Chinese.

Indians are primarily mid- and high-end buyers, with a preference for apartments and condominiums in high-end suburban areas.

Last March, Knight Frank brought Singapore property firms to New Delhi to sell their properties in the Indian market.

Meanwhile, over 30 Indian developers showcased their projects at the three-day Indian Property Show from 12 August to 14 August 2011 in Singapore. The show was organised by Dubai-based Sumansa Exhibitions LLC.

Info courtesy - PropertyGuru.com.sg

LACKLUSTRE SENTIMENT AMONGST PROPERTY PLAYERS

2011-07-29T07:24:00.000-07:00

LACKLUSTRE SENTIMENT AMONGST PROPERTY PLAYERS

Jul 29, 2011

Property market sentiment among property players fell in the second quarter, with the slowdown most evident in the suburban residential segment, according to a recent survey by the National University of Singapore (NUS) and the Real Estate Developers' Association of Singapore (REDAS).

Wong Heang Fine, President of REDAS, said that property developers are looking forward to a break from more government tightening measures, arguing that the private residential market should be given an opportunity to achieve equilibrium.

The survey revealed that the Current Sentiment Index (CSI) fell from 4.9 in Q1 2011 to 4.6 in Q2 2011, while the Future Sentiment Index (FSI) witnessed a significant decline, from 5.1 in Q1 2011 to 4.4 in Q2 2011.

The Composite Sentiment Index, derived from the CSI and FSI, fell from 5 in Q1 2011 to 4.5 in Q2 2011.

“Macro factors beyond the local property scene may have weighed more heavily on sentiment in Q2 2011,” said Steven Choo, REDAS Chief Executive Officer.

In addition, the respondents’ list of potential risks includes moderation of the world economy, increased supply of new development land and government intervention.

“If the government gets into a habit of intervening all the time, it will harm market development. Investors won’t want to invest because they can’t be sure what the government is going to do Monday versus Friday,” said Wong.

The survey also revealed that in Q2 2011, 20 percent of the respondents perceived unit prices in the primary housing market to be considerably higher, compared with 14 percent in Q1. About 63 percent expected unit prices to be mostly unchanged, slightly lower than 69 percent in Q1.

Info courtesy- PropertyGuru.com.sg

MAJORITY OF SINGAPOREANS STILL FEEL PROPERTIES ARE EXPENSIVE

2011-07-28T07:30:00.000-07:00

MAJORITY OF SINGAPOREANS STILL FEEL PROPERTIES ARE EXPENSIVE

Jul 28, 2011

Home buyers and real estate investors are less optimistic about property affordability than they were in the first quarter of this year, according to the results of a survey on property market sentiment, compiled by PropertyGuru.

The survey shows that 79 percent of all respondents believe property in all categories in Singapore is expensive, an increase from 75 percent in the previous quarter.

Conducted in June 2011, the survey was taken by over 2,200 respondents, with a separate analysis of first-time home buyers.

“Our latest quarterly survey gives an interesting insight into current sentiment towards the property market. Whilst consumers remain bullish about rising market prices, they are increasingly concerned about ‘affordability’, adopting a ‘wait and see’ approach and want the Government to take further action,” said PropertyGuru CEO Steve Melhuish.

Of the first-time buyers surveyed, 70 percent are aged between 25 and 34, while 36 percent have a monthly household income of S$4,000 to S$8,000.

At the same time, 48 percent of first-time home buyers want to acquire HDB flats and a surprisingly high 42 percent are considering acquiring completed condo units. 64 percent of those planning to buy HDB flats prefer resale flats to Built-to-Order (BTO) flats.

Meanwhile, about 50 percent of all first-time home buyers began their property search seven to 18 months ago. Factors such as price (35 percent), location (29 percent), limited supply (12 percent) and selection process (11 percent) were the primary factors affecting the time taken to buy their first home.

“As a result, we can expect buyers to be more discerning, intensifying their search before making a purchase. PropertyGuru addresses this need by providing the largest database of available property for sale or rent,” said Melhuish.

Info courtesy- PropertyGuru.com.sg

SINGAPORE INFLATION UP AGAIN

2011-07-26T07:32:00.000-07:00

SINGAPORE

INFLATION UP AGAIN

Jul 26, 2011

Singapore’s consumer price index (CPI) surged to 5.2 percent in June, close to January’s peak of 5.5 percent, fuelled by higher housing, food and transport costs.

According to the Department of Statistics, rising inflation can be attributed mainly to housing and transport costs, which comprise a respective 25 and 16 percent of the total CPI that is used to track price changes.

Latest data showed that Singapore housing costs climbed 8.8 percent year-on-year, attributed to higher accommodation and electricity tariffs, while higher car and petrol prices also saw transport costs increase by 10.4 percent.

The MAS added that prepared meals, dairy products, eggs, seafood, meat, poultry, vegetables and fruits also contributed to June’s higher inflation, which pushed the food component 3.1 percent higher compared to a year ago.

Ravi Menon, Managing Director of the Monetary Authority of Singapore (MAS), said last week that consumer prices will increase one percentage point to five percent over the next few months, before trending down towards the end of 2011.

Inflation edged up five percent in the first half of 2011, up from 3.7 percent in the second half of last year.

Info courtesy- PropertyGuru.com.sg

CEA GUIDELINES ON ETHICAL ADVERTISING BY PROPERTY AGENTS

2011-07-25T18:28:00.000-07:00

CEA GUIDELINES ON ETHICAL ADVERTISING BY PROPERTY AGENTS

Jul 25, 2011

The Council for Estate Agencies (CEA) has issued a Practice Guideline to promote ethical advertising by property agents. These guidelines were developed after consultation with property agents, industry associations, government bodies such as the HDB and URA, and the Consumers Association of Singapore. These guidelines will apply to all forms of advertisements, including classifieds, pamphlets or flyers, online advertising, SMS and even social media.

With effect from 1 August 2011, property agents must:

1. Refrain from using misleading headlines and claims

Use of headlines such as "King of xxx (location)", "Mr. xxx (location)", "Real Estate Specialist" or "Expert" are no longer allowed. Property agents must also ensure that any claims of expertise, specialisation or success rate can be substantiated by verifiable records.

2. Display their professional details

Details like their name, registration/licence and contact numbers must be included in every advertisement. This is to prevent unlicensed agents from operating.

3. Ensure accurate content in their advertisements

Advertisements are not allowed to be inaccurate or misleading. So claims of rates of return or rental yield must be substantiated, and credible sources quoted. In the case of pictures, only real photographs may be used, including things such as the view from the unit and the actual interior. Agents are also not allowed to suggest or abet circumventing of any laws and regulations, e.g. helping owners to sell their HDB flats before the Minimum Occupation Period.

4. Engage in responsible advertising

SMS property advertisements must provide a valid mobile phone number for consumers to opt out of future messages, and SMS advertising cannot take place between 10pm and 9am.

Property agents are also not allowed to market any property without the owner's consent. Those caught advertising other people's unit or placing a dummy ad in the hope of getting direct buyers will be penalised as it is tantamount to unethical code of conduct. If you suspect someone else is doing that, you may report them to CEA in writing.

According to Mr. Lee Say Kee, Director (Regulatory Control) of CEA and Chairperson of CEA's Ethical Advertising Work Group, misleading and unauthorised advertisements are among the top three categories of public complaints. He further adds, "To date, we have issued 23 letters of advice to estate agents and salespersons on such complaints. The Guidelines will provide clarity on the do's and don'ts of advertising, thereby raising professional and ethical standards in the industry."

Members of the public who would like to lodge a complaint can do so at the CEA website here: http://www.cea.gov.sg/cea/content/resources_faq/faqComplaintForm.html.

Will the public finally be free of the nuisance of spam SMSes and mailboxes full of property flyers? Let's see how effective the enforcement of these Guidelines are!

Info courtesy - PropertyGuru.com.sg

PRIVATE HOME PRICES EDGE UP 2% IN Q2

2011-07-25T07:47:00.000-07:00

PRIVATE HOME PRICES EDGE UP 2% IN Q2

Jul 25, 2011

Private home prices in Singapore edged up 2.0 percent quarter-on-quarter in the second quarter, lower than the 2.2 percent increase in the first quarter, according to the Urban Redevelopment Authority’s (URA) real estate statistics for Q2 2011.

The increase was more evident in the Outside Central Region (OCR) at 1.7 percent, compared to 1.1 percent for the Rest of Central Region (RCR) and 1.6 percent for the Core Central Region (CCR).

“The cooling measures have been effective in the price growth slowdown,” said Mohamed Ismail, Chief Executive of PropNex.

“The authorities introduced tighter lending criteria in mid-January to try and suppress house price inflation. The lowering of maximum LTV ratios to 60 percent of the value of the property and increases in stamp duty both for the period of imposition and percentage applicable were aimed at curtailing speculative purchasing and maintaining a stable and sustainable property market.”

Roza Sure Bagus, Managing Director of Sure Bagus (Asia) Ltd, agreed, saying that “cooling measures that the government had implemented in August 2010 and January this year have worked. This is in line with the government's aim to bring prices to a more sustainable level.”

She also said, “Deputy Prime Minister Tharman Shanmugaratnam's recent message to brace ourselves for a sluggish global economy, could signal uncertainty ahead as the property market is very sentiment driven. Also with a possibility of a double dip recession, we are taking a bearish approach.”

Looking ahead, Roza believes that, despite the bleak outlook, windows of opportunity abound for genuine homeowners.

“The property market moves in cycle. Therefore, we expect the price index to head South should a double dip recession occur or slower than expected domestic economic growth. Cash rich investors should look to buying distressed properties or buy at a low,” she said.

Meanwhile, office space rentals grew 1.5 percent in the second quarter, down from 5.4 percent in Q1, while prices of office space rose 3.6 percent, down from 4.9 percent in the previous quarter.

Li Hiaw Ho, Executive Director of CB Richard Ellis (CBRE), said that while rents continued to trend upwards in Q2 2011, “the pace has slowed”.

“It is apparent the government has been seeking to bolster office supply to facilitate business expansion and to ensure that operating costs remains competitive vis-à-vis other regional cities,” he said.

The URA noted that more office space supply will also come from the GLS sites which were recently awarded or released for sale in 2011.

“This includes the commercial sites at Robinson Road / Cecil Street and Paya Lebar. In addition, more supply of commercial space is also expected from the development of the six plots of land at Marina Bay and Ophir Road / Rochor Road to be jointly developed by M+S Pte Ltd,” it said.

In terms of retail properties, the index showed that rentals for shop space climbed 0.8 percent in Q2, while prices of shop space rose 1.1 percent, compared with the 0.5 percent increase in the previous quarter.

While CBRE is positive about the eventual take-up rate at Jurong Gateway, given that retail demand is somewhat supply-led locally, Li noted that the company has concerns about pressures on suburban rents given the increase in supply.

“Nonetheless, well-managed malls and necessity trades should continue to flourish. Retailers could also take the opportunity to expand their retail network.”

Info courtesy- PropertyGuru.com.sg

RESALE HDB FLAT PRICES UP 3.1% IN Q2

2011-07-25T07:41:00.000-07:00

RESALE HDB FLAT PRICES UP 3.1% IN Q2

Jul 25, 2011

Prices of the Housing and Development Board’s (HDB) resale flats rose 3.1 percent to 180.3 in Q2, from a comparably low 1.6 percent increase in the previous quarter.

This increase was tied to a six percent growth in the resale transaction volume in 6,581 cases.

PropNex data revealed that the median cash-over-valuation (COV) rose to S$32,000 in Q2 2011, from S$22,000 in Q1 2011.

“Those who took Q1 2011 to understand the cooling measures have come back to buy on the resale market,” said Mohamed Ismail, PropNex CEO.

“However, there are still many owners who, due to the effects of the cooling measures — especially the lower 60 percent Loan-To-Value ratio and revised Minimum Occupation Periods, are reluctant to move or sell their flat, resulting in a supply crunch and driving median resale prices as well as COV levels up.”

PropNex data indicated that COV levels have increased.

“Also noteworthy is that, for the months of April, May and June — which constitutes Q2 2011 — PropNex data showed a one percent, four percent and 10 percent increase respectively in the number of HDB resale flats being transacted at COVs of S$50,000 and above.”

“Home sellers must remain realistic about their COV demands because if not, there will be resistance from the buyers.”

Ismail added that in the latest Build-to-Order (BTO) project, in which 3,556 flats were launched, the rate of over-subscription ranged from three to four times, showing a continued robust demand for public housing.

He expects transaction volumes to surpass 13,000 for H2 2011, tied to resale price index growth of approximately five to six percent for the next two quarters.

Meanwhile, HDB said it has “offered about 15,500 new flats under the Build-To-Order (BTO) system so far, and is on track to deliver 25,000 BTO flats for the whole of 2011.”

“The remaining 9,500 new flats will be released over two BTO launches before year end. In addition, HDB is preparing a Sale of Balance Flats Exercise to widen the choices for flat buyers.”

Info courtesy- PropertyGuru.com.sg

COV DATA MISLEADING, SAYS KHAW

2011-07-25T07:40:00.000-07:00

COV DATA MISLEADING, SAYS KHAW

Jul 25, 2011

National Development Minister Khaw Boon Wan used the apples and oranges analogy to clarify why the Housing & Development Board (HDB) has ceased the publication of overall median cash premiums paid by home buyers beyond the valuation of flats across all estates.

He said that the overall median cash-over-valuation (COV) figure for resale flats is “misleading and quite irrelevant”, as the data on the type of flats transacted and their locations changes from month to month.

He stated that while the government is anxious about higher resale flat prices, it will be chiefly resolved in three to five years, when more Build-to-Order (BTO) units are ready.

For instance, more flats could be sold in one month in areas such as Ang Mo Kio, where prices tend to be higher. The following month, more may be sold in Woodlands, where property prices are normally lower.

“To me it is very apple to oranges,” said Mr Khaw. “If housing type changes month to month and location changes month to month, the figures will move up or down, and you think prices are going up or down. I think that is a wrong conclusion.”

Info courtesy- PropertyGuru.com.sg

PRIVATE HOME SUBSALES UP 10.6% TO 712 UNITS

2011-07-22T07:45:00.000-07:00

PRIVATE HOME SUBSALES UP 10.6% TO 712 UNITS

Jul 22, 2011

The number of private homes sold in the subsales market climbed 10.6 percent to 712 units in the second quarter, according to Savills Singapore.

However, the pace of increase in the second quarter was slower than the 27 percent jump reflected in the 4,562 new private homes sold by developers.

“With speculators weeded out from the market after the higher seller's stamp duty (SSD) rates introduced in January, more genuine home buyers now have direct access to choice units from developers in the primary market,” said Alan Cheong, Research Head at Savills.

“So the supply chain has become more efficient with the 'middlemen' or speculators cut out.”

He said that “the full impact of the January 2011 anti-speculation measures will need time to work their way through the system since the SSD would affect only those who bought a private home from Jan 14 and sell it within four years of purchase.”

SSD rates of 16 percent, 12 percent, eight percent and four percent were introduced for those who sell their properties in the first, second, third and fourth year of purchase respectively.

A few years earlier, those who had acquired private homes (which are still under construction) would have found it worthwhile to divest them, considering the recovery in property values after the global economic crisis. This would likely contribute to a steady stream of subsale activity.

“This will especially be the case for projects which are close to or have just been completed since buying interest in such developments is typically higher among those who would like to purchase a property that they can move into or rent out immediately,” said Ong Choon Fah, COO and Head of Consulting and Research for Southeast Asia at DTZ.

Figures from subsales and resales, which rose 17.5 percent to 4,144 units in Q2, were based on caveats lodged (excluding en bloc sales), while sales of new homes were based on developers' submissions to the Urban Redevelopment Authority’s (URA) surveys.

Info courtesy- PropertyGuru.com.sg

PARC OASIS 3 BEDROOMS UNIT FOR RENT

2011-07-06T04:57:00.000-07:00

PARC OASIS 3 BEDROOMS UNIT FOR RENT.....TAKEN

Parc Oasis is truly an Oasis located at 35, Jurong East Avenue 1,

Singapore

609774 . Completed in 1995, it comprises 950 units with a beautiful layout which showcases grandeur and space and next to greenery and the lake.
Parc Oasis is located just a short walk away from Chinese Garden train station and numerous bus services. There are also many schools sprawled across the area, within reasonable driving distance.
Several restaurants are located close by and residents can get their daily necessities at the nearby market and food centres. For a wider range of amenities, residents can take a short ride to IMM Building or Bukit Batok West Shopping Centre. In addition, the Japanese Garden and Chinese Garden is just minutes walk from Parc Oasis.
For vehicle owners, it takes about 20 minutes to get to the business hub or the vibrant Orchard Road shopping belt, via Ayer Rajah Expressway (AYE) and Pan Island Expressway (PIE) respectively.

FACILITIES AT PARC OASIS

Swimming pool

Gymnasium

Sauna

Tennis

Squash

Clubhouse

Playground

Putting green

BBQ

24 hour security

Basement carpark

ABOUT THE UNIT – AVAILABLE FROM 1st AUGUST.

1227 Sq ft. -3 bedrooms / 3 bathrooms

It’s a very clean and spacious unit. The unit has beautiful greenery view.

High floor, bright and windy. No afternoon sun.

Spacious living and dining showcasing the grandeur of the layout. Nicely renovated. Fully furnished, Fully equipped kitchen, Aircons in all the rooms. Clean and well kept.

3 bedrooms(Parquet flooring in the bedrooms), 3 bathrooms, Master bathroom comes with attached bathtub.

Maids room, Yard / Laundry area.

Grills in all the windows for the safety of your kids.

Intercom

LOOKING FOR 2 YEARS LEASE.

NEAREST MRT STATIONS

CHINESE GARDEN MRT STATION (EW25)

151, Boon Lay Way

Singapore

609959

How Far? 0.24 km

LAKESIDE MRT STATION (EW26)

201, Boon Lay Way

Singapore

649845

How Far? 1.43 km

NEAREST SHOPPING CENTRES / MALLS

JURONG ENTERTAINMENT CENTRE

2, Jurong East Central 1

Singapore

609731

How Far? 1.36 km

INTERNATIONAL MERCHANDISE MART (IMM BUILDING)

2, Jurong East Street 21

Singapore

609601

How Far 1.71 km

WEST MALL

1, Bukit Batok Central Link

Singapore

658713

How Far? 1.8 km

NEAREST SCHOOLS

BOON LAY PRIMARY SCHOOL

320, Jurong East Street 32

Singapore

609476

How Far? 0.52 km

SHUQUN SECONDARY SCHOOL

450, Jurong East Street 21

Singapore

609604

How Far? 0.71 km

DEVELOPERS CLARIFY REPORT OVER HIGH PROFIT MARGINS

2011-07-04T02:47:00.001-07:00

DEVELOPERS CLARIFY REPORT OVER HIGH PROFIT MARGINS

Jul 4, 2011

Two developers have released a joint statement to clarify a report published by The Business Times last week, claiming that Design, Build and Sell Scheme (DBSS) projects collects high gross profit margins for the developer.

“The article gave the impression that DBSS developers including Hoi Hup Sunway, are making huge profits from HDB’s design, build and sell scheme. Gross profit margins ranging from 19.1 percent to 75.8 percent were cited in a table accompanying the article,” said Hoi Hup Group and Sunway Group in a joint statement.

“We regret that by focusing only on gross profit margins, the article does not paint an accurate picture of the profitability of DBSS projects developed by Hoi Hup Sunway,” they said.

The report showed that developers can reap a gross profit margin of up to 76 percent from developing HDB’s DBSS projects. It also estimated that from five of the seven DBSS projects launched since 2008, developers earned gross profit margins of at least 28 percent.

BT said they compiled the figures by analysing the revenue, maximum gross floor area (GFA), estimated construction cost and land price.

However, the companies said that “gross profit margins do not take into account essential costs incurred by us. They include differential premium, financing costs, stamp duty, GST and marketing expenses.”

“Such essential costs for DBSS projects form a very significant chunk of total costs as compared with that for private mass market condominium projects, and therefore exert a large negative impact on profitability. The profitability of our projects should hence be measured by our net profit margins, which range from 15-18 percent, and not by gross profit margins.”

“We hope that this statement will help to give a more balanced view on the true costs and profitability behind DBSS projects.”

Meanwhile, National Development Minister Khaw Boon Wan also responded to the issue, saying in his blog that the article was “fraught with serious errors”.

“I was startled when I read the front page article,” he wrote in his blog.

He noted that the report quoted “a land price of S$82,222,000 and a maximum GFA of 721,188 square feet for the project. Both figures were wrong. The correct figures were respectively S$178,128,000 and 682,385 square feet. This was a huge difference of almost S$100 million. The errors led to a gross over-estimation by BT of the developer’s profit and gross profit margin.”

“Based on these figures alone, the profit margin would have been 26%, not 76%,” noted Mr. Khaw.

“I have been in MND for 5 weeks, and not sleeping well. I am working my guts out to try to calm the market, for the good of all Singaporeans. But I can’t do it alone. I need all to help.”

“I hope our media can do their part too. There is some panic buying out there, by people worried that prices will continue to rise. Sensationalised articles will merely feed the frenzy,” wrote Mr. Khaw on his blog.

Info courtesy – PropertyGuru.com.sg

PRIVATE HOME PRICES CONTINUE TO RISE

2011-07-04T02:47:00.000-07:00

PRIVATE HOME PRICES CONTINUE TO RISE

Jul 4, 2011

The private residential property price index climbed 1.9 percent to 202.8 points in the second quarter, compared to a 2.2 percent increase in the previous quarter, according to the Urban Redevelopment Authority’s (URA) flash estimates.

In addition, prices of non-landed private residential properties grew 1.6 percent in the Core Central Region and Outside Central Region and 1.2 percent in Rest of Central Region.

“Price increases in Q2 were marginally below expectations. However, for the Core Central Region and Outside Central Region, the flash numbers were within expectations,” said Alan Cheong, Associate Director at Savills Research & Consultancy.

“We may expect further moderation in general prices in Q3 and Q4. Should Q3 numbers come in above expectations, it may signify that the market has re-invigorated itself during the quarter.”

However, “if Q3 numbers come in below expectations, it will probably signify that the private residential market is taking a breather from its strong momentum built over the past two quarters,” he said.

The flash estimates are determined based on transaction prices given in caveats lodged during the first 10 weeks of the quarter and supported by information on the number of new units sold.

Meanwhile, Joseph Tan, Executive Director of Residential at CB Richard Ellis (CBRE), believes that although the private residential price index for Q2 2011 increased, “this does not necessarily mean that home prices have fallen.”

“Prices have in fact remained stable although it has slowed down from a rise of 2.2 percent in the previous quarter and 2.7 percent rise in the fourth quarter of 2010.”

“New launches that sold well in the reference quarter will make a strong impact on price trends.”

Info courtesy - PropertyGuru.com.sg

PROPERTY COOLING MEASURES TAKING EFFECT, SAYS PROPNEX CEO

2011-07-04T02:44:00.000-07:00

PROPERTY COOLING MEASURES TAKING EFFECT, SAYS PROPNEX CEO

Jul 4, 2011

The government’s anti-speculative measures are now taking effect in the property market, as the Housing and Development Board’s (HDB) Resale Price Index (RPI) edged up 2.9 percent to 179.9 in the second quarter, up from the 1.6 percent increase over the same period last year.

“Buyers who took 1Q11 to understand the cooling measures announced on 13 January 2011, especially the lower 60 percent Loan-To-Value ratio and revised Minimum Occupation Periods, have come back to buy on the resale market,” said Mohamed Ismail, Chief Executive of PropNex.

“However, there are still many owners who, due to the cooling measures, are reluctant to move or sell their flat, resulting in a supply crunch and driving median resale prices as well as COV levels up.”

While average resale prices rose 2.6 percent quarter-on-quarter to 5.3 percent in the second quarter across various types of flats, the higher-than-anticipated two to three percent increase in median cash-over-valuation (COV) levels surged by 40 to 50 percent quarter-on-quarter, to hit an overall S$32,000 for the second quarter of 2011.

“Although the current levels of S$28,000 to S$45,000 COV are not sustainable in the long run, I expect the momentum of the increase to see overall median COV reaching around S$35,000 in 3Q11, before dropping back to an overall median COV of around S$32,000 for 4Q11,” noted Ismail.

He said that one reason would be that the introduction of even more new flats, comprising Build-to-Order (BTO), Design, Build & Sell Scheme (DBSS) and Executive Condominiums (EC), will have a cooling effect on the resale market as more young couples turn from resale flats with high COVs to a wider range of new flats at lower prices.

“Another reason would be the launch of more mass market projects in the next two quarters, alleviating some of the demand on the HDB resale market, especially for the larger flats in pricier estates,” he said.

“We can even expect to see COV levels continue to decline further into 2012 if the government continues to provide new supplies of public housing at the current brisk rate.”

However, Ismail was cautious about linking the current price movements to Minister Khaw’s recent policy changes, as it is still too early for those announcements to have had any noticeable effect.

Meanwhile, HDB said it is on track to offer BTO flats by September this year, as well as launch another 3,000 BTO flats in the fourth quarter.

“To further enhance the supply for 3rd Quarter 2011, HDB plans to launch 2,000 flats under a Sale of Balance Flats Exercise scheduled in Aug 2011. This exercise will offer some flats in the mature estates,” said HDB, adding that “information about the locations and flat types will be made available at the point of launch.”

Info courtesy - PropertyGuru.com.sg

PRACTICE GUIDELINES TO RAISE PROFESSIONALISM OF ESTATE AGENTS & SALESPERSONS

2011-07-03T17:59:00.000-07:00

PRACTICE GUIDELINES TO RAISE PROFESSIONALISM

OF ESTATE AGENTS & SALESPERSONS

The Council for Estate Agencies (CEA) issued two Practice Guidelines

today to promote ethical advertising in the real estate agency industry and to

guide the use of prescribed estate agency agreements.

(I) PRACTICE GUIDELINES ON ETHICAL ADVERTISING

2. The Practice Guidelines on Ethical Advertising provides directions and

establishes best practices on the use of advertisements for the real estate

agency industry. The guidelines were developed in consultation with estate

agents, industry associations, government bodies (eg. HDB and URA), and the

Consumers Association of Singapore. They are applicable to all modes of

advertisements, including classified advertisements, pamphlets or flyers, online

advertising, short messaging services (SMS) and the social media.

3. With effect from 1 August 2011, misleading headlines and claims such

as “Advance loans available’, “Real Estate Specialist” and “King of X X (Name

of Estate)” will not be allowed in advertisements and publicity collaterals. Other

key points include the following:

a. Display Details of Estate Agents and Salespersons

Salesperson’s name, registration number and contact number
Estate agent’s name and licence number 2

b. Accurate Advertisement Contents

Basis of claims such as rates of return, yield rates, etc, must be

indicated and substantiated

Accurate use of photographs
No abetment or suggestion to circumvent existing laws and regulations

such as selling of HDB flats before minimum occupation period

Advertisements in internet postings and portals must be kept current

c. Responsible Advertising

SMS text advertisements must provide a mobile telephone number for

consumers to opt out of future SMS advertisements

No SMS advertising or cold calling after 10pm

d. Responsible Use of Data

No disclosure of transacted properties’ specific floor levels and/or unit

addresses without client’s approval

Compliance to Terms and Conditions of usage of public (free) and

purchased data

4. Mr Lee Say Kee, Director (Regulatory Control) of CEA and Chairperson

of CEA’s Ethical Advertising Work Group said, “Misleading and unauthorised

advertisements are among the top three categories of public complaints. To

date, we have issued 23 letters of advice to estate agents and salespersons on

such complaints.

The Guidelines will provide clarity on the do’s and don’ts of

advertising, thereby raising professional and ethical standards in the industry.

CEA will work closely with estate agents and salespersons to implement the

Guidelines.”

(II) PRACTICE GUIDELINES ON THE USE OF PRESCRIBED ESTATE AGENCY

AGREEMENTS FOR RESIDENTIAL TRANSACTIONS

5. The Estate Agency Agreements are standard forms prescribed in the

Estate Agents (Estate Agency Work) Regulations. They are applicable to the

sale, purchase and lease of residential properties.

6. The Practice Guidelines is an instruction manual that explains the key

terms in the agreements, including commission clauses, disclosure

requirements, and co-broking clauses. It also provides guidance on the use of

the agreements.

IMPLEMENTATION OF PRACTICE GUIDELINES

7. The two Practice Guidelines will take effect on 1 August 2011. They are

to be read with the Code of Ethics and Professional Client Care issued by CEA

last year. Non-compliance of the Guidelines may result in disciplinary action.

Both Guidelines are available on CEA’s website www.cea.gov.sg.

RESALE PROPERTY PRICES RISE IN Q2

2011-06-29T02:51:00.000-07:00

RESALE PROPERTY PRICES RISE IN Q2

Jun 29, 2011

Resale prices of private homes continued to rise at a faster pace in the second quarter, according to an analysis by DTZ Research.

DTZ’s analysis showed that the average resale price of leasehold condos in suburban areas climbed 3.9 percent quarter-on-quarter in the second quarter, while resale prices of freehold condos located in the prime districts 9, 10 and 11 grew 3.3 percent in Q2, up from 0.8 percent in the first quarter.

Meanwhile, new data released by the National University of Singapore (NUS) also supported DTZ’s analysis that resale prices are increasing more quickly.

NUS's monthly Singapore Residential Price Index indicated that prices of non-landed private homes increased 2.5 percent in May, from 1.1 percent in April and 0.2 percent in March.

The central region led the growth, with prices of non-landed private homes in Districts 1to 4 and 9 to 11 rising 3.5 percent in May. Prices in the non-central region, on the other hand, rose by a slightly lower 1.7 percent.

In contrast, NUS recorded that prices in the central and non-central region climbed one percent and 1.2 percent in April respectively.

Some analysts attributed the increase to higher asking prices quoted by sellers.

“Asking prices of resale homes continue to trend upwards as sellers benchmarked against the prices of new launches,” said Chua Chor Hoon, Research Head at DTZ Southeast Asia.

Joseph Tan, Executive Director for Residential at CB Richard Ellis (CBRE), also said that sellers could raise their asking price, as some of the units in newly launched projects in the vicinity command the benchmark prices.

He added that buyers are also willing to spend more for resale units, as there is still a price difference between new and resale homes.

Info courtesy – PropertyGuru.com.sg

MORE HOUSING PROJECTS IN THE PIPELINE

2011-05-19T20:25:00.001-07:00

MORE HOUSING PROJECTS IN THE PIPELINE

May 19, 2011

Developers continued to launch new projects in May, after witnessing a 29 percent month-on-month increase in private home sales last month.

Two new housing projects are set to be released this week — Belysa, an executive condo (EC) project in Pasir Ris, and Terrasse, a private condo development in Hougang. Both projects have a leasehold tenure of 99 years.

The Belysa project comprises a 16-storey block and two 18-storey blocks. It features a three-bedroom 829 sq ft compact unit, with prices starting from S$574,000. It also includes a 1,335 sq ft four-bedroom apartment priced from S$882,000, while a four-bedroom suite, the most expensive unit in the development, costs S$952,000.

An experienced real estate consultant described the project’s S$670 psf average price as within his expected range, given that the project does not include compact units, which can be sold for a higher psf price.

Meanwhile, Terrasse will be launched later this week at an expected average price of around S$950 psf. The five-storey project will comprise 414 units, including one- to four-bedroom apartments, five-bedroom penthouses and 15 garden duplex units (extended across the ground and basement levels).

In addition, Soilbuild Group will be soft launching North Spring BizHub at Yishun Industrial Street 1 on 23 May. The seven-storey general and light industrial development will provide direct vehicular access to every level, for containers up to 40 feet in length.

The 60-year leasehold project will include 454 units ranging between 1,507 sq ft and 36,511 sq ft, with prices starting from S$478,000, or approximately S$311 psf.

Colliers International said that the units are suitable for businesses from general, light and clean industries, including printing and publishing, R&D, warehousing, engineering and manufacturing.

Info courtesy - PropertyGuru

HK's URA to acquire 159 flats at record prices

2011-05-18T20:35:00.000-07:00

HK's URA to acquire 159 flats at record prices

May 18, 2011

A clutch of shabby flats at To Kwa Wan in Kowloon, Hong Kong are set to be offered at record prices.

The Urban Renewal Authority (URA) is all set to pay HK$9,785 psf to acquire 159 flats in a region bounded by Chun Tin Street, Ma Tau Wai Road and Hok Yuen Street. The shabby flats will be replaced by 400 new flats of sizes below 500 sq ft each.

The price offered by the URA is twice the current price for flats in Kowloon, as well as the highest unit-price offered by the authority for a property in the area.

Boosted by recent market trends, the offer will take the rebuilding project costs — purchasing, re-housing and development — to HK$1.52 billion from the last estimate of HK$1.45 billion. A loss of HK$1 billion is anticipated for the project.

The development cost for each sq ft of the 400 new flats will be approximately HK$3,000.

Barry Cheung Chun-yuen, Chairman of URA, said, “We attach a great deal of importance to this project, in view of its special circumstances.”

“While awaiting the green light to go ahead with the project, some 143 tenants and owners have so far been given assistance and moved out under special measures.”

According to the authority, the acquisition offers consider the market value of a seven-year-old flat of the same size in a similar location and include the government’s Home Purchase Allowance.

Owners of the 159 flats will be sent offer letters by the end of May and will be given 60 days to decide whether or not they will accept the offer.

Info courtesy - PropertyGuru

PRIVATE HOME SALES JUMP 29% IN APRIL

2011-05-18T20:17:00.000-07:00

PRIVATE HOME SALES JUMP 29% IN APRIL

May 18, 2011

Sales of private homes jumped 23 percent month-on-month to 1,901 units in April, as developers are rolling out more property projects to ride the tide of buying momentum.

Excluding Executive Condominium (EC) units, private home sales rose 29 percent to a whopping 1,788 units sold last month.

“It is clear that homeowners and investors alike have assimilated the last cooling measures announced on 13 January,” said Adam Tan, Corporate Communications Manager at PropNex.

“This has resulted in a continuing buyer confidence that has seen steadily increasing sales since February 2011.”

The Outside Central Region (OCR) enjoyed a 60 percent month-on-month increase in sales last month, with 1,010 units sold, the highest monthly total since November 2010.

Sales volume also continued to increase in the Core Central Region (CCR), climbing 14 percent month-on-month to 301 units sold in April. The number of units launched also saw a 64 percent month-on-month jump to 387 units.

Meanwhile, the Rest of Central Region (RCR) was the only region that saw a slight decline in sales last month, as the number of launches was also lower in March. In total, 477 units were sold in the RCR area and 399 new units were launched, recording a take-up rate of 120 percent, the highest of all the regions.

“Despite the punitive policies in place, demand for private housing does not appear to have abated,” said Dr Chua Yang Liang, Head of Research South East Asia at Jones Lang LaSalle (JLL).

“The return of demand is underpinned by a strong economic rebound and continual growth. The low financing environment is just as guilty in supporting this new housing demand rebound.”

Li Hiaw Ho, Executive Director at CB Richard Ellis (CBRE) Research, said that sales of new investment-grade homes in the prime Orchard area have also picked up, the most expensive home sold last month on a psf basis being a unit in The Orchard Residences, at S$4,799 psf.

Mr. Li also expressed that the healthy state of

Singapore

’s economy continues to support the residential market.

“However, as the market is aware that the government is reviewing the income ceiling for public housing, there is some degree of apprehension as to how it will impact the mass market. Although interest in high-end homes has improved, we expect the sales momentum to moderate and new home sales in the second quarter will be close to the first quarter’s take-up.”

Info courtesy - PropertyGuru

RESALE OPTIONS FOR AGEING CONDOS

2011-05-16T20:26:00.000-07:00

RESALE OPTIONS FOR AGEING CONDOS

May 16, 2011

For private property owners, the 60-year mark is considered a major milestone — they could either watch their properties depreciate in value or opt for a collective sale.

Although banks are generally reluctant to lend to owners of older properties, things are not as bad as they seem since there are still some banks that are flexible with mortgages on older properties, and there is the Central Provident Fund (CPF) that can accommodate purchasers eyeing mature properties.

Last month, the plight of owners of ageing properties made the headlines, as the Singapore Land Authority (SLA) rejected the application of The Arcadia condo for a lease top-up despite obtaining 100 percent support from the owners.

SLA’s decision has also turned the spotlight on other ageing condos like Lutheran Towers, One Tree Hill Mansions and Hollandswood Court.

Meanwhile, The Peace Centre and Peace Mansions complex, which has 58 years left in its lease period, has been released into the en bloc sale market, but other properties like Hillcrest Arcadia have resisted that option.

While collective sales became the main option for owners to unlock their home value, experts said there are other ways to curtail the value of homes.

Mr. Ong Kah Seng, Senior Manager of Asia-Pacific Research at Cushman & Wakefield, said owners who want to preserve their home should keep it in good condition, especially when it has historic features that boost its value and make it good for preservation.

He noted that there are still other options to resale the property even if a lease top-up request is denied, just make sure the property is well maintained and the amenities and infrastructure are well enhanced.

“Owners of some aged prime developments may be able to expect better buying interest from purchasers who are cash-rich and do not require home loans,” he said.

Mr. Colin Tan, Research and Consultancy Director at Chesterton Suntec International, said owner-occupiers are typically less concerned about leases.

“When the green movement gets stronger, we might also see fewer en blocs. Instead of tearing down older buildings, which is blatant wastage, they can be refurbished like in other countries,” he said.

In an interview with The Straits Times, Mr. Tan said that banks can also help out. Despite their reluctance to fund older properties, some factors like the borrower's profile, tenor of the loan and the property’s location are also taken into consideration.

Ms. Lui Su Kian, Managing Director and Head of Deposits and Secured Lending at DBS, said that while most banks do not finance homes with less than 30 years left on the leasehold period, applications are reviewed on a case-by-case basis.

Info courtesy - PropertyGuru

KERRISDALE 3+1 FOR RENT

2011-05-15T20:44:00.000-07:00

KERRISDALE CONDO 3+1 FOR RENT.....TAKEN

Kerrisdale heralds a new era of distinguished living. This exclusive condominium, a hallmark of Allgreen is nestled in the historic district of Serangoon, off the tranquil of Beatty road.

Marked by a trio of 30-storey majestic towers rising magnificiently into the sky of Singapore, the condominium boosts of 481 luxuriously appointed apartments.

Located mere minutes away from the heart of the city , tucked away in a alcove of mature greenery and low-lying, pre-war architecture, Kerrisdale captures the refreshing essence of rustic, tropical setting while remaining truly contemporary urban in every way.

Kerrisdale is a high-rise twin tower leasehold condominium located at Studee Road off Serangoon Road. It is situated beside Farrer Park MRT Station, which is only a couple of stops from the Central Business District.

Amenities are right at the door-step of Kerrisdale, including schools, shops, markets, food centres, restaurants. It is also near the Serangoon Plaza, Tekka Mall. Kerrisdale is accessible via the nearby Central Expressway (CTE). Driving to the Orchard Road and the city takes a mere 5 – 10 minutes. Public transport is readily available along Serangoon Road.

FACILITIES AT KERRISDALE

Swimming pool

Children's pool

Barbecue pit

Steam

Sauna

Jacuzzi

Gymnasium

Putting green

Tennis

Squash

Playground

Multi-purpose hall

Car park

Security

ABOUT THE UNIT

1270 Sq ft. -3 bedrooms/3 bathrooms

Beautiful unit with a view of the Singapore flyer, greenery and rustic pre-war architecture. Pool view, Can view fireworks from the house.

High floor, bright and windy, no afternoon sun.

Squarish layout and spacious rooms.

Fully furnished, Fully equipped kitchen, Aircons in all the rooms.Clean and well kept.

3 bedrooms(Parquet flooring in the bedrooms), 3 bathrooms, Master bathroom comes with attached bathtub.

Maids room, Yard area.

Intercom

NEAREST FOOD CENTRES / MARKETS

S21 LAVENDER FOOD CENTRE

380, Jalan Besar Singapore 209000

How far? 0.27 km

188 FOOD JUNCTION

2, Kallang Avenue Singapore 339407

How far? 0.57 km

BERSEH FOOD CENTRE

166, Jalan Besar Singapore 208877

How far? 0.64 km

BUGIS KELANTAN FOOD COURT

11, Kelantan Road Singapore 208604

How far? 0.82 km

BENDEMEER ROAD BLOCK 29 MARKET/FOOD CENTRE

29, Bendemeer Road Singapore 330029

How far? 0.88 km

BURGER KING (TEKKA MALL)
Blk 2 Serangoon Road

Singapore

218227
Distance: 1.5 km

KFC (ESMART CENTRE)
Blk 17 Kallang Junction

Singapore

339274
Distance: 1.51 km

PIZZA HUT (CHAMPS CENTRE)
Blk 17 Kallang Junction

Singapore

339274
Distance: 1.51 km

NEAREST MRT STATIONS

FARRER PARK MRT STATION (NE8)

250, Race Course Road Singapore 218703

How far? 0.40 km

LAVENDER MRT STATION (EW11)

50, Kallang Road Singapore 208699

How far? 0.86 km

BOON KENG MRT STATION (NE9)

900, Serangoon Road Singapore 328260

How far? 0.89 km

LITTLE INDIA MRT STATION (NE7)

60, Bukit Timah Road Singapore 229900

How far? 1.17 km

BUGIS MRT STATION (EW12)

220, Victoria Street Singapore 188022

How far? 1.35 km

NEAREST SHOPPING CENTRES / MALLS

EMINENT PLAZA

195, Lavender Street Singapore 338758

How far? 0.28 km

SERANGOON PLAZA

320, Serangoon Road Singapore 218108

How far? 0.39 km

MUSTAFA CENTRE (24 HOURS)

145, Syed Alwi Road Singapore 207704

How far? 0.44 km

BENDEMEER SHOPPING MALL

27, Bendemeer Road Singapore 330027

How far? 0.83 km

CITY SQUARE MALL

City Square Mall (UC)
Distance: 0.70 km

NEAREST SCHOOLS

CHRIST CHURCH SECONDARY SCHOOL (FORMER)
Blk 2 Tyrwhitt Road

Singapore

207523
Distance: 0.88 km

SINDA HEADQUARTERS
Blk 1 Beatty Road

Singapore

209943
Distance: 0.96 km

UMAR PULAVAR TAMIL LANGUAGE CENTRE

588C, Serangoon Road Singapore 218226

How far? 0.17 km

RAINBOW CENTRE (BALESTIER SPECIAL SCHOOL)

8, Mcnair Road Singapore 328517

How far? 0.58 km

SPASTIC SPECIAL SCHOOL

17, Mcnair Road Singapore 328522

How far? 0.62 km

THE MAYFAIR 3 BEDROOMS UNIT FOR RENT

2011-05-12T04:34:00.000-07:00

THE MAYFAIR 3 BEDROOMS UNIT FOR RENT.....TAKEN (CORPORATE LEASE)

The Mayfair is located in Jurong, west of

Singapore

. This condominium offers every luxury and convenience you could ask for. Nestled amid beautifully landscaped grounds are 3 swimming pools, a golf driving range, outdoor Jacuzzi, tennis court and a clubhouse with fully-equipped gym, steam rooms and a private bowling alley. Outdoor natural water landscaping and design includes tranquil waterfalls, reflecting pools and a unique water playground for children. Underground parking frees space for children to play safely.

It is suitable for those who work at Jurong, Jurong Island and Tuas. It is near the Pan Island Expressway (PIE) and the Ayer Rajah Expressway (AYE) which leads you to the other parts of

Singapore

FACILITIES AT THE MAYFAIR

Swimming pool

Wading pool

Play pool

Jacuzzi

Tennis

Playground

BBQ

Gym

Clubhouse

Private bowling alley

Basement car park

24 hours security

ABOUT THE UNIT – AVAILABLE FROM 15^TH JUNE.

1163 Sq ft. -3 bedrooms / 3 bathrooms

This unit has the most beautiful view of the Jurong lake. Very spacious and squarish rooms.

High floor, bright and windy. Very quiet and peaceful.

Fully furnished, Fully equipped kitchen, Aircons in all the rooms. Clean and well kept.

3 bedrooms(Parquet flooring in the bedrooms), 3 bathrooms, Master bathroom comes with attached bathtub.

Maids room, Yard / Laundry area.

Intercom, Private Lift.

LOOKING FOR 2 YEARS LEASE.

NEAREST MRT STATIONS

Chinese Garden MRT Station (EW25)

151, Boon Lay Way

Singapore

609959

How Far? 0.24 km

Lakeside MRT Station (EW26)

201, Boon Lay Way

Singapore

649845

How Far? 1.43 km

NEAREST SHOPPING CENTRES / MALLS

Jurong Entertainment Centre

2, Jurong East Central 1

Singapore

609731

How Far? 1.36 km

International Merchandise Mart (IMM Building)

2, Jurong East Street 21

Singapore

609601

How Far 1.71 km

West Mall

1, Bukit Batok Central Link

Singapore

658713

How Far? 1.8 km

NEAREST SCHOOLS

Boon Lay Primary School

320, Jurong East Street 32

Singapore

609476

How Far? 0.52 km

Shuqun Secondary School

450, Jurong East Street 21

Singapore

609604

How Far? 0.71 km

ELECTION UNLIKELY TO AFFECT PROPERTY PRICES, SAYS BANK CHIEF

2011-05-05T04:26:00.001-07:00

ELECTION UNLIKELY TO AFFECT PROPERTY PRICES, SAYS BANK CHIEF

May 5, 2011

Singapore’s elections are unlikely to affect property prices, according to Aamir Rahim, Chief Executive at Citi Private Bank (Asia Pacific).

“Investors look at simple facts: Singapore’s stability and continuity in its policy regime are important. Stability is the most important criteria in any market, even for equity markets.”

The bank will host its Asia Pacific property conference for more than 200 clients. The conference features discussions on major issues such as the outlook for equity markets in Hong Kong, China and Singapore property, including the Real Estate Investment Trusts (REITs).

A joint annual report by Knight Frank and Citi Private Bank on the world’s wealth revealed that Singapore is largely the location of choice among affluent East Asians and Indians seeking to acquire a second property overseas.

The report also found that Singapore luxury homes had experienced the third largest price increase of 18 percent in 2010, behind Shanghai and Mumbai.

Mr. Rahim noted that “property is critical because it is part of the decision that the wealthy make in terms of where they want to establish themselves. East Asians who seek to change their country of residence favour Singapore…and property plays a (very) key role in that decision.”

Mr. Rahim remains positive about the private bank’s growth this year, which he anticipates to be roughly in line with the previous year’s 20 percent growth. The business of the bank grows at approximately twice the gross domestic product (GDP) rate. Asian economies are expected to grow by 7.8 percent this year.

Info courtesy - PropertyGuru

PM LEE SORRY ABOUT HOUSING ISSUES

2011-05-04T04:27:00.000-07:00

PM LEE SORRY ABOUT HOUSING ISSUES

May 4, 2011

Singapore Prime Minister Lee Hsien Loong said the government could have moved more quickly and efficiently to address the shortfalls in the country’s housing and transport industries.

The Prime Minister also acknowledged that things do not always go as planned and there might be side effects from the government’s decisions.

The government has had to “watch the wind and the tide and we have to pick our chances when we can and when the wind comes, put up your sail and go with it,” said PM Lee, likening the country to a “small boat on a stormy ocean (and) not a nuclear (powered) aircraft carrier.”

He also addressed the mistakes made by his government and said that he is sorry for them. He noted that his team is doing their best to address the problems.

“We can't go exactly on a straight line, from point A to point B, and have everything just perfect in every spot. There will be detours, sidetracks, side effects from our decisions,” he said.

The examples cited included the increasing influx of foreign workers, the flooding of Orchard Road, overcrowding on MRT trains and skyrocketing home prices.

“These are real problems. We will tackle them,” he said.

“When these problems vex you or disturb you or upset your lives, please bear with us. We're trying our best on your behalf. And if we didn't quite get it right, I'm sorry but we will try and do better the next time.”

Info courtesy - PropertyGuru

WHO PAYS THE REAL ESTATE COMMISSION? HOW DOES AN AGENT GET PAID?

2011-05-01T05:48:00.000-07:00

WHO PAYS THE REAL ESTATE COMMISSION? HOW DOES AN AGENT GET PAID?

To understand who pays real estate commissions -- whether it's sellers or buyers or both or if it is Landlord’s or Tenant’s or both

First take a look at how real estate agents are paid and how they share cooperating commissions. Don't be embarrassed if you don't know how commissions work because I've had clients who didn't know, even though I had sold their home, represented them to buy a new home and then later listed that home for sale.

How Real Estate Commissions Work

Most Real estate agents work for a real estate (broker) company. There are some who work for companies floated by them selves.

All fees paid to a real estate agent pass through this company.

How Are Real Estate Agents Compensated by the Company?

Divisions vary. All Agents work on a commission scheme that is determined by the experience, performance and various other factors such as recruitment etc. New agents can receive from a range of 60%-70% of the total commission received by them from the closure of a deal.

Top producing agents might receive 100% and pay the company (broker) a desk fee. Everybody else falls somewhere in between.

One has to understand that the real estate agent has a lot of expenditures like advertising, sign rentals, money spent on transportation, entertainment or office expenses. Most people think that the companies pay their agents, but actually it’s vice versa. The agents earn and pay the company. The company in turn gives them the security of being under a big banner (a Brand name), Gives the real estate agent an identity as a representative of the company, Gives them requisite trainings/ updates from time to time. The luxury of working in a group and sharing ideas, Using the Company premises and its facilities like phones, PC’s and the various paid software which will aid the real estate agent in his business. These are given free to the agents thanks to pooling of resources. One of the most highlighting factors of being associated with a company is the Legal Aid.

In Singapore Legal expenses are very high. Incase of a problem with any deal, if there is a legal issue the real estate agent can consult the in-house company lawyer for free and sometimes if it is very complicated for a very subsidized amount. It’s no wonder that real estate agents choose to work with big companies.

COMMISSIONS RELATING TO PRIVATE / LANDED PROPERTIES IN

SINGAPORE

The below listed scenarios happens only in Private/landed properties and not in HDB properties.

Listing Agents' Fees

The most common type of listing agreement is:-

Between a seller and her agent or Between a Landlord and his tenant, this gives that agent's broker the right to exclusively market the home. In return for bringing a buyer to the table, the seller agrees to pay a commission to the broker.

Typically, this fee is represented as a percentage of the sales price and is shared between the listing broker and the broker who brings the buyer.

There is no guideline from CEA regarding commission rates charged by agents:-

Kindly refer to the FAQ section of the CEA website-www.cea.gov.sg

Q.6. Will the new regulatory regime increase compliance cost for the industry and would such costs be passed on to consumer in terms of commission? How were the licensing and registration fees determined?

A6. The regulatory cost for industry will go up with the additional resources required to carry out the increased regulatory work and the stepped-up enforcement actions. However, the fees charged are tiered based on the size of agencies to reflect the expected additional regulatory work for the larger agencies.

Commissions charged by the salespersons are influenced more by the demand and supply of estate agency services than by the compliance costs. Consumers are encouraged to find out the different commission rates and they can negotiate the commission rate before engaging the estate agent.

Q28. Will CEA regulate the commission rates under the new regulatory framework?

A28. CEA will not fix the commission rates charged by salespersons as the absence of commission guidelines would lead to a more competitive pricing among the estate agents. Consumers are advised to find out the different commission rates and they can negotiate the commission rate before engaging an estate agent.

This, I feel is not fair as customers tend to negotiate or ask for discounts. One must understand that Real estate is a profession and has its expenses, pressures and many a households are run on this income. If they keep this market competitive what will happen to the full time agents who depend on this income? A person who is doing well can offer discounts and grab the business from under the nose of a needy agent. If the commissions are set, it will be fair to the Real estate agents as well, as they can always quote that this amount is set by CEA and people cannot evade paying them. There have been many times that colleagues tell me about customers cheating them or customers who pay less. Of course they can seek redressal through the lawyer representing their company but the relation with that customer who didn’t pay or paid less sours.

Co-Broking / sharing of commission

Seller Pays the Buyer's Broker Commission through his listing agent. Under a Buyer's Broker arrangement, the named brokerage and agent represent the buyer. The fee paid to the broker most commonly is paid by the seller. Some buyer broker agreements contain clauses that will compensate the brokerage for the fee it is due less the amount paid by the seller.

For example, a cooperating listing might offer to pay a broker only 0.5% of the sales price, whereas the brokerage operates at fees of 2%. The difference of 0.5% could be paid by the buyer if the broker chooses not to waive that amount.

In private properties in Singapore many a times the buyer / tenant doesn’t need to pay commission. In this scenario who pays the agent who is representing the buyer/tenant. The sellers/landlord’s agent shares half the commission with the buyer/tenants agent.

This has been a market practice but is not necessarily a rule. The market is highly volatile and scenarios keep changing based on the demand and supply for housing at a particular time.

There are many cases when the Seller/landlord’s agent refuses to pay the buyers/tenant’s broker. In this case who will pay the broker who represented the buyer/tenant?

So, we must understand that there are no rules or regulations in this matter nor has CEA set any guidelines for this.

The poor agents must fend for themselves. When they end up asking the buyer/tenant a commission for their services, the buyer/tenant will just tell him that according to the market practice they need not pay. Who will pay this agent for his time and efforts? Who will this agent approach?

These are some things which have not been made clear by the CEA, the market, the broker companies or the people.

Hence many agents let the buyers/tenants know much in advance that although it is not necessary to pay at all times, there may be a situation when the buyers/tenants have to pay a commission to their representative agent.

We have seen that listing agents are more co-operative and happy to co-broke with agents with whom they don’t have to share the commission.

Then again, Divisions of fees among brokers is not always fair or equal, just like life.

For example, a seller could sign a listing agreement for 2% that stipulates the listing broker will receive 1% and the co-broking agent will receive 1% from the selling broker. It's not always a 50/50 split.

In a buyer's market, sellers might want to consider asking the broker to give a larger percentage to the buyer's broker.

In a seller's market, the buyer's broker might receive less.

There is no set formula. This is based on the demand and supply conditions in the market.

Who Really Pays the Commission?

It can be argued and, quite rightfully so, that in the end it is the buyer who always pays the commission. Why? because, it's typically part of the sales price.

If the seller did not sign an agreement to pay a commission, the sales price might have been lowered. And therein lies the appeal of buying homes through unrepresented sellers (Sale by Owner) because, given the same logic, those prices should reflect a net sales price without a commission. But most people in Singapore know that Direct Sellers always ask for phenomenally high prices instead of closing at a lower price. They quote high prices because they believe that agents will not represent their house as well as they can do it, they also believe that agents cannot get the highest price that they are expecting for their home or want to avoid paying agent’s commission. Then again is the challenge for this set of people for doing the documentations on their own, this is quite detailed in Singapore.

Most of these unrepresented sellers eventually sell through agents as they can’t handle the pressure of people viewing their house, commenting upon their house, rejecting their homes or offering very low prices.

A seller always wants the highest price for his house and the buyer is always looking for the lowest price or the best deal while buying.

Sellers usually oversell their house and highlight the strong points so that they can impress the buyers and buyers always look for the weaker link to be able to reduce the price. Agents usually do the balancing act and enable deals to be closed.

The unrepresented sellers haven't quite figured this out yet which causes potential buyers of those listings to be consistently disappointed.

Using the services of an agent is a win-win situation for both Sellers/Landlords and Buyers/Tenants. As each is being represented by a competent person who knows the rules and regulations, the documentations, the entire process without any hassle to the concerned parties and will take care of the respective vested interests with respect to the ever changing laws in Singapore.

To help alleviate much of this confusion, don't be astonished if over the next 20 years sellers and buyers each retain their own representation and pay separately for said representation.

PRIVATE HOME PRICES CLIMB 2.2% IN Q1

2011-04-26T21:41:00.000-07:00

PRIVATE HOME PRICES CLIMB 2.2% IN Q1

Apr 26, 2011

Prices of

Singapore

’s private residential properties rose 2.2 percent in the first quarter, down from 2.7 percent in the previous quarter, reflecting the accumulated effects of the cooling measures implemented by the government.

“The cooling measures announced by the Government were meant to encourage financial prudence and stamp out short-term speculative investing which would have unsustainably inflated private property prices,” said Mohamed Ismail, CEO of PropNex.

Prices of landed properties increased 3.9 percent in Q1 compared to 5.5 percent in the previous quarter, while prices of detached, semi-detached and terraced houses rose 4.1 percent, 2.8 percent and 3.9 percent respectively.

According to commercial property services firm CB Richard Ellis (CBRE), developers sold a total of 3,595 new homes in Q1, reflecting an increase for the fifth consecutive quarter since the beginning of 2010.

“The last time the market saw a similar phenomena was the four quarters from Q4 2006 to Q3 2007, with a total volume of 17,773 units sold,” it said.

“However, the momentum of sales in the secondary market has slowed down, as evidenced by a 24.6 percent fall in resale transactions to 3,191 units and a 25.5 percent fall in sub-sales volume to 550 units. The sales volume in Q1 2011 represents genuine demand from occupiers and investors.”

Meanwhile, prices of non-landed properties in the Core Central Region (CCR), Outside Central Region (OCR) and Rest of Central Region rose 1.1 percent, 3.1 percent and 2.0 percent respectively.

Mr. Ismail said “investors are also shying away from the CCR and looking to the OCR and RCR for their property investments, probably to reduce the loan quantum for their property investment.”

While the overall number of transactions islandwide dropped 20.4 percent quarter-on-quarter to 7,336 due to the continued rise in prices, the decline in the number of transactions for the mass market may have been attributed to the increase in psf prices.

Mr. Ismail noted that many potential buyers may have been put off by some of the high prices of mass market projects of late, a few of which breached the S$1,000 psf mark.

CBRE also said that with the growth forecast of between 4.0 and 6.0 percent for the economy remaining on track and the concurrent effectiveness of the property measures, “we expect the take-up of new homes in the second quarter to be around 3,000-3,500 units and home prices to remain at current levels.”

Info courtesy - PropertyGuru.com.sg

Resale flat prices up 1.6% in Q1

2011-04-26T17:11:00.000-07:00

Resale flat prices up 1.6% in Q1

Apr 26, 2011

Resale prices of public flats experienced a slight increase in the first quarter, as the three rounds of cooling measures announced by the government made a cumulative impact.

The Housing & Development Board (HDB) Resale Price Index (RPI) rose 1.6 percent quarter-on-quarter in Q1, down from a 2.5 percent growth in the previous quarter. This was coupled with a four percent drop in resale transaction volumes to 6,228 deals in the first quarter, as well as a nine percent decline in median Cash-Over-Valuation (COV) levels to S$21,000.

“The cooling measures have certainly been effective in both eradicating investors’ speculation in the HDB resale market as well as encouraging owner-occupation for resale flats,” said Mohamed Ismail, Chief Executive of PropNex.

Mr. Ismail refers to the inhibitive measures of the reduced loan-to-value (LTV) ratio on additional mortgages to just 60 percent, announced by the government in January and the stamping out of HDB home ownership by private property owners and investors.

“This more gradual growth for the RPI looks set to continue,” he noted, “as we (PropNex) can see growths of up to 2.6 percent in our median resale prices for April 2011 from 1Q11.”

However, he said that while the RPI is expected to grow more sustainably, “the COV levels which have been bottoming out over the last few months look set to increase,” citing PropNex data for this month, which records a 12.1 to 23.8 percent increase in COV levels from the first quarter.

Based on the transaction volume history for PropNex over the last few months, Mr. Ismail expects the transaction volume to exceed 7,000 for the second quarter this year. He also believes that it is still a good time to acquire resale flats, as prices are expected to increase in the coming quarters.

“Although COV levels may rise in 2Q11 after dropping in 1Q11, the levels are still reasonably low.”

“First-time buyers and young couples who are looking for flats below the median resale price and COV can look for four-room flats in Bukit Panjang and Woodlands.

However, Mr. Ismail warned that if the supply of resale flats does not increase quickly enough or remains limited due to the Minimum Occupation Period for both first-timers and non-first-time buyers, the increased demand for HDB resale flats may push COV levels up even further.

Info courtesy - PropertyGuru.com.sg

GOVT PLANS MORE HOUSING IN CENTRAL, WEST REGIONS

2011-04-15T08:43:00.000-07:00

GOVT PLANS MORE HOUSING IN CENTRAL, WEST REGIONS

Apr 15, 2011

The Singapore government will boost housing in line with the population growth, and plans to expand towns like Sengkang, Choa Chu Kang, Yishun and Punggol over the next 45 to 50 years, said National Development Minister Mah Bow Tan at the URA Corporate Plan Seminar 2011.

“Our current towns will be redeveloped and expanded to provide affordable and good quality housing in popular areas like Punggol, Sengkang, Yishun and Choa Chu Kang,” he said. “Beyond the medium term, we will also open up new towns in areas such as Tengah.”

Aside from ensuring more housing supply in the Central and the West regions, the government is also bringing jobs closer to homes by having more equal job-to-worker distribution across the island.

“Under Concept Plan 2011, we will inject more housing in the Central Region and the West Region, where currently there are proportionately more jobs than homes. At the same time, we will put more commercial and industrial activities in the North and North-East, where there are currently more homes than jobs,” said Mr. Mah.

“Re-balancing the job-worker distribution will not resolve all our traffic issues but it will take some stress off our transport networks and reduce commuting times.”

The Concept Plan 2011 will chart plans for land use and infrastructure development in the country over the next 40 to 50 years. It will be officially unveiled in the fourth quarter of this year.

“It is fundamentally about people and how we can plan for a better life for all Singaporeans,” he said.

Mr. Mah also revealed plans to develop more housing around transport nodes, so that more people will benefit from direct access to public transportation.

“In the next decade and beyond, we can inject more than 10,000 dwelling units in vacant land around MRT stations such as Commonwealth, Queenstown, and Bishan. These would be higher-rise housing of more than 30 storeys.”

“Higher density housing can bring greater economies of scale, and support the development of more amenities in close proximity to homes,” he said. “As we build up our towns, we will expand our transport infrastructure, especially our rail network.”

Some analysts said that the government is planning to increase the plot ratios for residential site in the Central regions and near MRT stations.

Tan Tiong Cheng, Chairman of Knight Frank, said, “In towns such as Punggol, Sengkang and in the West, there is still quite a bit of land left for development, but around MRT stations and in the Central regions, residential plot ratios are likely to go up.”

In addition, the government is also planning to take charge of the development of various facilities for its ageing population, such as housing, healthcare and social facilities at the national level.

“Our population will not only be bigger but also older. There will be a significantly larger population of seniors in the decades ahead,” said Mr. Mah.

“We will study what additional facilities are needed and which are the best places to site them such that seniors can be well supported to live independent and active lives, and continue to be an integral part of their community.”

The Minister also said the government is continually expanding leisure options and greenery to provide relief.

“Gardens by the Bay, our green lung in the city, will be a new and exciting national park. Singaporeans young and old will be delighted by the upcoming River Safari, an extension to our much-loved Mandai Zoo.”

“Nature lovers can also look forward to the extension of our park connector network. When the Labrador Nature and Coastal Walk are completed next year, it will link the Southern Ridges to the Southern Waterfront, which will be transformed into a new leisure hub in the longer term,” said Mr. Mah.

Info courtesy - PropertyGuru

HDB SEIZES 39 FLATS

2011-04-13T08:38:00.000-07:00

HDB SEIZES 39 FLATS

Apr 13, 2011

The Housing Development Board (HDB) stepped up enforcement against the illegal subletting of public flats last year, carrying out 7,000 flat inspections, up from the 3,000 flats inspected in 2009.

Out of the 7,000 HDB flats inspected, HDB took action against 95 flat owners in relation to illegal subletting. Of the 95 apprehended for unauthorised subletting, 39 had their flats seized.

HDB said it is reminding all flat owners that HDB flats are primarily meant for owner occupancy.

“We will take stern actions against owners, including compulsory acquisition, even if it is the owner’s first infringement. This is especially for cases where the flat owners had bought the flat purely for monetary gains, with no intention of occupying it,” it said.

Flat owners who wish to sublet their entire flats must meet the Minimum Occupation Period (MOP) and obtain HDB’s approval before they can do so.

“They must also comply with HDB’s terms and conditions for subletting, for example, by ensuring that the number of subtenants does not exceed the maximum number allowed for the various flat types.”

Info courtesy - PropertyGuru

CORPORATE BUYERS AVOIDING RESIDENTIAL PROPERTIES

2011-04-11T18:14:00.001-07:00

CORPORATE BUYERS AVOIDING RESIDENTIAL PROPERTIES

Apr 11, 2011

Real estate consultancy firm Cushman and Wakefield has revealed that non-landed private home sales dropped by 62 percent to 133 transactions in Q1, from 350 transactions in the preceding quarter.

Some experts believe the data indicates that the Government’s tough property cooling measures implemented last January are taking effect.

Under the cooling measures, non-individual home buyers, such as trusts, companies and collective investment schemes, can borrow a maximum of only 50 percent of the property’s value.

This is unlike before, where they could borrow up to 70 percent of the property’s value.

Mr. Tan Kok Keong, Head of Research and Consultancy at OrangeTee, noted that while these early estimates were telling, some transactions may not have been recorded yet.

He said reviewing these first-quarter data again in June will depict the investor market more accurately.

Mr. Tan believes that the group of investors comprise primarily foreign companies.

“Previously, some local buyers would form companies to purchase property, possibly so that they could work around the seller's stamp duty.”

“After the latest measures, there's no compelling reason to do that. It doesn't make sense, because you have to come up with more cash if you want to close property deals that way,” he remarked.

Mr. Ong Kah Seng, Senior Manager of Asia Pacific Research at Cushman and Wakefield, said that the smaller companies, with their limited budgets, may feel more controlled with the higher amount of cash they will have to pay upfront.

But he added that larger firms may be equally cautious, as their property purchasing appetites tend to be bigger.

Chasing larger transactions could weaken the business cash flow and liquidity of investors, noted Mr. Ong. “But they have to seriously consider the investments and proceed with worthy deals which match their capital outlay capacity.”

Mr. Joseph Tan, Executive Director of Residential Services at CB Richard Ellis (CBRE), said it could be a “shift in focus” for corporate purchasers rather than a disappearance from the residential real estate market.

“The price gap between residential and commercial properties is closing and that makes commercial look like a more viable alternative now.”

Info courtesy - Propertyguru

RISE IN AFFORDABLE FREEHOLD HOMES

2011-04-11T18:07:00.000-07:00

RISE IN AFFORDABLE FREEHOLD HOMES

Apr 11, 2011

More freehold units will be offered in the market over the next few years for as low as S$600 psf to S$900 psf.

According to research conducted by Kim Eng, City Developments’ and Hong Leong’s familiarity with the area helped them to best the bid for a 99-year leasehold residential site south of Edelweiss and which has now been released for sale.

Called Hedges Park Condominium, the project is situated on a site which was sold last May for S$148.3 million, or S$321 psf ppr.

The site also offers the south of Ferraria, which is included in the confirmed list of the Government Land Sales (GLS) programme and will be launched for sale this April.

In terms of demand, the Gale has been sold out, with its last deal at just under S$1 million (S$847 psf) for a 1,150 sq ft unit.

The Flora Road area is situated in Pasir Ris in eastern Singapore, near Changi Prison. Located to the east of the prison is Singapore Changi Airport.

According to Kim Eng, the supply of completed units in the area is abundant. The A to F series of the alphabetically named collection offers 2,500 units ready for dwelling. To the north of the site are two other large projects.

Currently in development, the Gale offer add 329 residential units in 2013 and Hedges Park Condominium will offer 501 additional units in 2014. The future GLS site is likely to reap 380 units, which will be offered for as low as S$600 psf to S$900 psf.

Info courtesy - PropertyGuru.com.sg

GLOBAL HOUSING MARKET GROWTH SLUGGISH

2011-04-08T18:20:00.000-07:00

GLOBAL HOUSING MARKET GROWTH SLUGGISH

Apr 8, 2011

Global home prices climbed only 2.8 percent last year, as more markets saw negative growth in the fourth quarter, according to the Global House Price Index 4Q 2010 by global real estate agent Knight Frank.

Asia Pacific recorded the highest price increases at 7.5 percent per annum, followed by the Middle East at 5.3 percent and South America at 3.8 percent.

However, 41 percent of the total markets surveyed recorded negative growth in the fourth quarter, compared with 35 percent in Q3 and 31 percent in Q2.

Liam Bailey, Head of Residential Research at Knight Frank, said that more markets in the US and Europe demonstrated weakness in the second half of 2010, after a “brief revival” in the previous year.

“The key trend at play in the global market is the unwinding of the stimulus packages put forward in 2009 in Europe, North America and Asia-Pacific,” he said.

“This trend is being reinforced by weaker results from Asia-Pacific, with India, Taiwan and Japan all recording negative price growth in the second half of 2010.”

Meanwhile, Hong Kong saw the fastest growth in the price index at 20.1 percent. This was mainly attributed to the government’s cooling measures to curb property prices.

Info courtesy - Propertyguru

CONDO DREAMS FADING FOR HDB UPGRADERS

2011-04-08T18:18:00.000-07:00

CONDO DREAMS FADING FOR HDB UPGRADERS

Apr 8, 2011

HDB upgraders’ dreams of acquiring suburban condominiums are drifting further out of their reach.

This is due to the record property prices coupled with the property cooling measures implemented by the government.

According to property consultancy DTZ Research, seven out of 10 home buyers in Q1 2009 were HDB upgraders. However, this figure fell to about 3.5 out of 10 home buyers in 2010. Chua Chor Hoon, Head of Southeast Asia Research at DTZ, said this proportion remained the same in January and February this year.

Some industry experts feel that the figure may drop further in March, if private property prices continue to climb.

Many HDB upgraders have gone cold on mass-market condos for two main reasons — the cooling measures implemented by the government and the soaring prices of suburban homes.

Latest figures show that prices of suburban homes rose 3.1 percent in Q1 this year, surpassing the 2.1 percent increase in the previous quarter. This increase occurred at a quicker pace than the overall 2.1 percent increase in the private market in the first quarter.

A report by real estate services firm CB Richard Ellis (CBRE) showed that three in four units at the 561-unit Waterfront Isle development in Bedok were sold at an average price of S$990 psf, while 250 out of the 521 units at H2O Residences in Sengkang were sold at a median price of S$920 psf.

Adam Tan, a PropNex spokesman, said that while a 1,600 sq ft executive flat in Bedok Reservoir now costs S$620,000, a unit at Waterfront Isle of comparable size costs S$1 million. This means that a resale flat is 40 percent cheaper, though it is 60 percent larger.

Older condo units in the vicinity like Baywater and Aquarius By The Park are also cheaper than new ones but are priced at the S$700 psf to S$800 psf level.

“The feeling on the ground is (that) the high prices may force many potential HDB upgraders to stay within the HDB bracket. If this trend continues, we will see a limited number of people upgrading to private property,” said Mr. Tan.

Meanwhile, National Development Minister Mah Bow Tan said that the median COV for HDB resale flats in Q1 ranged between S$20,000 and S$21,000.

Chris Koh, Director at Dennis Wee Group (DWG), noted that this came as a surprise, as they had been expecting the COV price to slip below S$20,000 after the August 2010 cooling measures.

“The HDB resale market could likely be supported by demand coming back from this segment of HDB upgraders,” he said, adding that there could also strong demand for bigger units

Ms. Chua feels that the number of HDB upgraders seeking to acquire private units may not fall as much as expected, because of the proliferation of “shoebox” units like those at Loft@Stevens, Loft@Holland and Palmera East in the East Coast area.

However, buyers will purchase not for owner occupation but for investment.

“There will still be those HDB upgraders who will buy for investment. And these small units are selling well because their absolute price is still within their budgets,” she said.

Info courtesy - Propertyguru

SINGAPORE HOMES TOP CHOICE FOR ULTRA-RICH ASIANS

2011-04-07T18:28:00.000-07:00

SINGAPORE HOMES TOP CHOICE FOR ULTRA-RICH ASIANS

Apr 7, 2011

Singapore’s top quality education has placed the country second on the list for second-home purchases for ultra-rich Asians, especially the Chinese and Indians, according to The Wealth Report 2011 compiled by Citi Private Bank and Knight Frank.

Meanwhile, when it comes to principal residence, Singapore is the top choice for Asia’s ultra-high net worth individuals (UHNWIs). This was mainly attributed to the country’s stable economic and political conditions, as well as its favourable taxation policies for wealthy individuals.

Prices of Singapore’s luxury properties are also much cheaper, compared to other markets like Paris, Tokyo, London and Hong Kong.

According to the report, which is based on an online survey of nearly 5,000 UHNWIs from 36 countries, education is one of the primary reasons for second-home purchases, particularly among East Asian UHNWIs.

“A property for (university-going) children to live in is an obvious step to take and a very popular investment option,” said Rupert Hoogewerf, publisher of the Hurun Report.

“Anecdotal evidence indicates that the condition of property markets can be an influencing factor when universities are being assessed.”

Besides the US and the UK, other top locations for education are Australia, Canada, New Zealand, Singapore and Hong Kong.

Info courtesy - Propertyguru

PROPERTY MARKET STILL GOING STRONG

2011-04-07T18:24:00.000-07:00

PROPERTY MARKET STILL GOING STRONG

Apr 7, 2011

The Singapore land sales market achieved four record prices, which revealed the unwavering optimism of developers, despite the global uncertainties.

A recent of Colliers International study showed that property developers display upbeat sentiment and optimism in the country’s property investment sales market, which gained a healthy total of S$9.77 billion in the first quarter of 2011. This was achieved amidst the government’s property cooling measures, the political instability in North Africa and the Middle East and the massive Japan disasters.

Although the quarter’s sales value of S$9.77 billion is 20.3 percent moderation from the S$12.26 billion achieved in the final quarter of 2010, it is still 67.9 percent stronger than the sales completed in the first quarter of 2010, when the Singapore investment sales market was only beginning to recover.

“The fact that the figure for 1Q 2011 was still 67.9 percent stronger than that for 1Q 2010 indicates that market fundamentals remain largely positive despite all the uncertainties,” said Ms. Chia Siew Chuin, Director of Research & Advisory at Colliers International.

“In fact, we have observed developers' confidence in the investment sales market when they set four record prices in the government land sales market — despite the introduction of further property cooling measures during the quarter.”

The first record price was set for the non-landed residential site situated at Bishan Street 14. A consortium led by CapitaLand Limited beat 18 other bidders for a 1.2 ha housing plot with its bid of S$550.1 million. This works out to S$869 per sq ft (psf) per plot ratio, which exceeds the previous record of S$639 psf per plot ratio for the Ascentia Sky site in the Alexandra Road / Tiong Bahru Road locality in December 2007.

The top offer of S$170.1 million (S$320.86 psf per plot ratio), submitted for a site in Choa Chu Kang intended for an Executive Condominium (EC) project by City Developments Limited, also surpassed the previous record of S$320.58 psf per plot ratio attained for the Austville EC site at Sengkang East Avenue / Buangkok Drive in May 2010.

“At the same time, the private sector land sales market also reflected the same upbeat sentiments, where sales picked up momentum in 1Q 2011 and some S$992.58 million worth of private development sites were sold. This is a significant 94.7 percent improvement from 4Q 2010,” added Ms. Chia.

“In particular, the collective sale of seven existing projects for re-development chalked up a total value of S$588.88 million in 1Q 2011, up from the S$427.2 million contributed by 11 transactions in 4Q 2010. The conclusion of the higher-value albeit fewer collective deals in 1Q 2011 is an encouraging sign of developers’ growing appetite for collective sale sites.”

“Looking ahead, looming uncertainties stemming from the political unrest in the Middle East and North African regions, and the possible impact of the disaster in Japan on global economies could potentially temper market sentiments.”

Info courtesy - Propertyguru

SINGAPORE LUXURY HOME PRICES RANK NO.3 GLOBALLY

2011-04-06T18:38:00.000-07:00

SINGAPORE LUXURY HOME PRICES RANK NO.3 GLOBALLY

Apr 6, 2011

Singapore’s high-end homes recorded the third largest increase in prices globally, behind Shanghai and Mumbai, according to a new report released today.

Compiled by property consultancy Knight Frank and Citi Private Bank, The Wealth Report 2011 found that Singapore’s luxury home prices rose 18 percent in 2010.

This was on top of a 17 percent increase the previous year, when Singapore recorded the fifth largest increase in high-end home prices globally.

Meanwhile, home prices in Shanghai saw a 21 percent increase in 2010, on top of a 52 percent jump in the preceding year, while Mumbai home prices rose 20 percent in 2010 after increasing 11 percent in 2009.

The top three home price heavyweights — Hong Kong, New York and London — saw smaller price increases in 2010, ranging between 10 and 15 percent.

Info courtesy - Propertyguru

HDB HOUSEHOLDS TO GET UTILITY REBATES NEXT MONTH

2011-03-30T18:55:00.000-07:00

HDB HOUSEHOLDS TO GET UTILITY REBATES NEXT MONTH

Mar 30, 2011

Housing Development Board (HDB) households can expect smaller bills next month when the government offers rebates for utility, service and conservancy charges.

According to the Ministry of Finance, approximately 800,000 HDB households will benefit from the rebate, a first under the Grow and Share package announced at 2011’s Budget in February.

HDB households will obtain S$31 million and S$163 million in rebates on service and conservancy charges (S&CC) and Utilities-Save (U-Save) respectively.

“The U-Save and S&CC rebates in Grow & Share aim to help households, especially lower income households, cope with rising costs, including higher utilities bills due to the increases in electricity tariffs,” said the Finance Ministry.

For example, a four-room flat will obtain S$220 in U-Save rebates and a one-month waiver of the S&CC, which varies with different estates but is normally below S$100 per month.

Unused U-Save rebates each month will be carried over to the following month.

Other rebates will be made in June, September and December for S&CC and in July for U-Save.

Info courtesy - PropertyGuru

RESIDENTIAL PROPERTY MARKET RATIONALISED BY COOLING MEASURES

2011-03-29T18:44:00.000-07:00

RESIDENTIAL PROPERTY MARKET RATIONALISED BY COOLING MEASURES

Mar 29, 2011

Between 3,200 and 3,400 private homes were sold in Q1, down 20 to 25 percent from the 4,241 units sold in Q4 last year, according to CB Richard Ellis (CBRE).

The commercial property services firm said that home prices in the first quarter remained stable, as the cooling measures implemented on 13 January “rationalised (the) residential market”.

Some of the developments that attracted buyers in the first quarter were projects located near existing or future Mass Rapid Transit (MRT) stations, as well as in places earmarked as potential growth areas. For instance, 90 percent (around 251) of the units were sold at Spottiswoode 18, which is adjacent to Tanjong Pagar Railway. Canberra Residences, which is within walking distance to Sembawang MRTstation, were nearly 75 percent sold, at an average price of S$830 psf.

Meanwhile, activity in the high-end market remained subdued, as property players waited for the right opportunity to enter. Isolated units from various luxury projects were sold, with top-line prices achieved by a unit of The Orchard Residences at S$4,258 psf, as well as three units of Scotts Square at between S$4,119 psf and S$4,646 psf. A joint venture (JV) partnership between Lippo Group and CLSA Capital Partners also sold the remaining 14 units at the 26-unit The Holland Collection, at around S$50 million. This worked out to nearly S$1,600 psf for the collection of two-, three- and four-bedroom apartments.

CBRE also said that since the return of the executive condominium (EC) in October 2010 after a five-year hiatus, some 1,580 ECs have been sold, comprising 71.9 percent of the 2,199 EC units launched. Small-format units also remained popular among homebuyers in Q1, with Loft@Holland, Loft@ Stevens and Palmera East being fully sold at an average price of S$2,100 psf, S$1,960 psf and S$1,255 psf respectively.

Developers showed confidence in the market with their keen purchases of sites in Q1; the most contested site under the GLS programme was a condo site at Bishan Street 14. It was acquired by CapitaLand for S$550.1 million. The company also acquired the 51,185 sq ft Marine Point site for S$100.68 million (S$1,056 psf ppr), while Novelty Group successfully acquired Newton View for S$147.60 million (approximately S$1,403 psf ppr).

“Moving on to the second quarter, some of the new launches to be expected are Hedges Park at Flora Drive, The Boutiq at Killiney Road, a condominium at Upper Thomson Road and Phase 5 of Luxus Hills landed project,” said Mr. Joseph Tan, Executive Director for Residential at CBRE.

“Assuming a stable economy and that the market moves at the same pace as the first quarter, new home sales volume will be around 3,000 to 3,500 units in Q2 2011, with no significant fluctuations in home prices.”

Info courtesy - PropertyGuru

COOLING MEASURES CAUSE DECLINE IN AVERAGE HOME PRICES

2011-03-29T18:42:00.000-07:00

COOLING MEASURES CAUSE DECLINE IN AVERAGE HOME PRICES

Mar 29, 2011

The average prices of private apartments and condominiums have dropped slightly, a sign of the impact of the government’s cooling measures.

“The January 13 cooling measures are certainly working,” said Tan Tiong Cheng, Chairman of Knight Frank. “The lower loan-to-value (LTV) limit has affected investors with outstanding housing loans even if they have some financial capacity to purchase another residential property.”

The National University of Singapore’s (NUS) overall Singapore Residential Price Index (SRPI) plunged 0.4 percent month-on-month in February, a reversal from the 2.9 percent gain recorded in January.

The sub-index for the Central region, including districts 1 to 4 and 9 to 11, climbed one percent month-on-month in February, from a 3.1 percent gain in January, while the sub-index for the Non-Central region, where some suburban mass-market condos are located, dropped 1.5 percent in February, from a 2.8 percent gain in January.

Mr. Tan said that prices of private homes are likely to float at current levels “unless the government opens the immigration tap again and removes some of these very severe cooling measures, such as the seller's stamp duty (SSD) rates and 60 per cent LTV for those with existing housing loans”.

Prices of private homes in the Central region climbed at a quicker rate in the first two months of 2011, compared to the Non-Central region, marking the reversal of last year's price trends. As a result, the SRPI for the Central region has exceeded its pre-global financial crisis peak in November 2007, albeit by just 0.1 percent.

Overall, the February flash estimates reflect a year-on-year increase of 13.1 percent for the Non-Central region, 10.3 percent for the Central region and 11.9 percent for the overall index.

Ku Swee Yong, Chief Executive of International Property Advisor (IPA), said that prices of projects like Trillium and St Thomas Suites in the prime districts have increased, as buyers found that the completed projects exceeded their expectations.

“Clients whom we have brought for viewing for other projects like 8 Napier and Parkview Eclat have also been impressed by the quality of finishings,” added Mr. Ku.

Meanwhile, the average resale prices of leasehold condos in suburban areas rose 0.8 percent to S$665, while resale prices of freehold non-landed condos in prime districts 9 to11 climbed 0.4 percent quarter-on-quarter to S$1,525 psf.

High-end condos in prime districts have been seeing average resale prices of S$2,630 psf for two consecutive quarters, as the inflow of buyers to the segments continues, coupled with more supply in the pipeline.

“Real estate remains an asset class which people feel secure to park their finances with in this high inflation environment,” said Ms. Chua Chor Hoon, Head of DTZ South East Asia Research.

“Nevertheless we expect the pace of increase in prices to continue to slow down and plateau. There is more uncertainty this year, not just from the possibility of more cooling measures, but also from the recent regional events in the Middle East and Japan the full impact of which are still not known.”

Mr. Ku added that he does not expect the luxury condo market to outshine the suburban market in 2011, unless “we see an influx of more high net worth individuals into Singapore, both as tenants and buyers, and bankers receive their one- and two-year bonuses again.”

Info courtesy - PropertyGuru

SINGAPORE'S HOUSING ISSUES MAY NOT AFFECT UPCOMING ELECTION

2011-03-29T18:37:00.000-07:00

SINGAPORE

'S HOUSING ISSUES MAY NOT AFFECT UPCOMING ELECTION

Mar 29, 2011

Singapore’s housing market has been considered a major issue in the country’s upcoming election but a survey reveals otherwise.

Conducted by the TODAY newspaper, the survey showed that 58.4 percent of the respondents said that the housing issues in the country would not influence their votes in the upcoming elections. This percentage rose to 64.8 percent amongst respondents aged 40 and above.

Derek da Cunha, a political analyst, said that Singapore’s housing issue is “less of a significant issue than (it) has often been made out to be,” adding that most Singaporeans already have a roof over their heads.

He noted that the housing issues might be more significant “if voters were in a negative equity situation and interest rates had been rising for a number of years. But both are not the case.”

Nearly 47.6 percent of the respondents expressed that the cooling measures implemented by the government to help Singaporeans acquire HDB flats “have been adequate”.

The survey also disclosed that 34.7 percent were concerned about the affordability of private homes. In addition, 42.7 percent were concerned about the waiting time for the acquisition of a new flat, while 58.9 percent were concerned about the affordability of a new HDB flat. Concerns over affordability rates rose to nearly 68.5 percent amongst the respondents aged below 40.

Info courtesy - PropertyGuru

PROPERTY PRICES HAVE STABILISED

2011-03-22T04:06:00.000-07:00

PROPERTY PRICES HAVE STABILISED

Mar 22, 2011

Home prices have stabilised after four rounds of measures aimed at cooling the real estate market, according to a senior government official.

Peter Ong, Permanent Secretary at the Ministry of Finance, said that property prices “have sort of stabilised”, during a conference on East Asian development.

His remarks indicate government authorities may not introduce new property measures anytime soon, despite the still-high business volumes and insistent bids by property developers at government land sales.

Private home prices surged 17.6 percent in 2010, despite efforts to curb the market in February and August of that year.

Resale prices of HDB flats, which house more than 80 percent of the population, surged 14 percent.

The recent measures comprise tougher borrowing restrictions and a large seller’s stamp duty (SSD) of 16 percent of the selling price for those who purchase and sell within 12 months.

Info courtesy : - PropertyGuru.com.sg

INFLATION CLIMBS TO 5.9% IN FEBRUARY

2011-03-22T03:50:00.000-07:00

INFLATION CLIMBS TO 5.9% IN FEBRUARY

Mar 22, 2011 - PropertyGuru.com.sg

Inflationary threats are definitely increasing and food inflation has also been rising steadily, said DBS, adding that inflation surged to 5.9 percent in February this year.

During the Lunar New Year, retailers seized the opportunity created by heightened demand for food products to increase their prices.

While this is usually apparent before the festive season, a spill-over into the succeeding month is also expected. This involves higher food inflation.

Food accounted for 22 percent of the consumer price index (CPI) basket and food inflation has been increasing consistently over the past year.

Food inflation surged from 0.2 percent in January 2010 to 2.8 percent during the same period this year. Consistent with the UN food price index, food inflation has already exceeded its 2008 peak and continues to increase.

Supply-side shocks accounted for most of the increases. However, the possibility of strong demand on the back of positive economic growth in the region should not be discounted.

Info courtesy : - PropertyGuru.com.sg

SINGAPORE IS MOST ENTERPRISING ASIAN ECONOMY

2011-03-21T03:57:00.000-07:00

SINGAPORE

IS MOST ENTERPRISING ASIAN ECONOMY

Mar 21, 2011

Well-known for the multinational companies (MNCs) that rule the country’s economy, Singapore lags behind other Asian economies such as Taiwan and Hong Kong when it comes to entrepreneurship, as shown by previous studies and surveys.

However, recent research has proven otherwise. A study conducted by Erkko Autio of the Imperial College Business School in the United Kingdom and Zoltan Acs of George Mason University in the United States reveals that Singapore is the most enterprising among major Asian economies.

Based on the country’s Global Entrepreneurship and Development Index (GEDI), Singapore ranked 15th out of 71 of “the most important countries in the world”, when it comes to confidence in spotting, seizing and risk-taking opportunities, as well as starting and growing enterprises.

It outranks Israel, which has some of the world’s most vibrant high-technology industries and placed above developed economies like Germany, France and Italy, which ranked 16th, 18th and 27th respectively.

Meanwhile, occupying the top three spots in the GEDI rankings were Denmark, Canada and the United States.

While not underestimating the vital role of MNCs in Singapore’s economy, GEDI’s rankings show that the government’s efforts in pushing for greater entrepreneurship have paid off.

Performing well in “entrepreneurial aspirations,” the country took the tihrd place among the 71 economies, and occupied the 9th place in “entrepreneurial activity”.

However, Singapore fell into 35th spot in “entrepreneurial attitude”, as the country lacks venture capital, a main ingredient in the growth of entrepreneurship.

Info courtesy : - PropertyGuru.com.sg

COOLING EXPECTED FOR 2011 ASIAN PROPERTY MARKET

2011-03-21T03:05:00.000-07:00

COOLING EXPECTED FOR 2011 ASIAN PROPERTY MARKET

Mar 21, 2011

Real estate firm Savills expects the Asian property market to cool down this year, due to the Japan disasters and anti-speculation measures being issued by Asian governments.

“In the near term, it is unclear how markets will react to the recent catastrophic events in Japan, particularly at a time of unprecedented global economic and political change,” said Jeremy Helsby, CEO of Savills.

Together with the ongoing government measures in Hong Kong, Singapore and China to cool their respective real estate markets, Savills “continues to expect a reduced volume of transactions in the region in 2011.”

The Asia Pacific region contributed 41 percent to the company’s 2010 sales. It believes that any slowdown in Asia should be balanced by improvement in other markets.

Savills’ total 2010 revenue was 677 million pounds (US$1.09 million), an increase of 21 percent from 560 million pounds (US$904.3 million) in 2009.

“You won’t see substantial growth year-on-year and the portfolio will behave in a slightly different way in 2011 than it did in 2010,” said Simon Shaw, Savills’ Chief Financial Officer.

Info courtesy : - PropertyGuru.com.sg

STRONG SING DOLLAR BOOSTS FOREIGN PROPERTY INVESTMENT

2011-03-18T02:59:00.000-07:00

STRONG SING DOLLAR BOOSTS FOREIGN PROPERTY INVESTMENT

Mar 18, 2011

Wealthy Singaporeans are always on the lookout for ways to expand their real estate investment portfolios in the West, taking advantage of the strong Singapore dollar, according to the TODAY newspaper.

The Singapore dollar has significantly increased since Lehman Brothers’ bankruptcy in September 2008 — 11 percent versus the US dollar, 25 percent against the British pound and 14 percent versus the Euro.

Many foreign real estate markets in cities such as New York have experienced a decline in prices, making them attractive compared to Singapore, where prices have increased sharply in the past two years.

Another famous investment spot is London. “London is still deemed as an aspirational city by the world’s wealthiest, richest families and as an investment target or city, it is really quite attractive because of its stability,” said Ms. Phang Lah Hwa, Head of Consumer Secured Lending at OCBC Bank.

In August 2010, OCBC responded to requests from its wealthy customers to take out either Singapore-dollar or pound-denominated loans on London real estate.

The bank plans to provide similar schemes for real estate markets in Australia and the United States in the near future.

Info courtesy -: - PropertyGuru.com.sg

PARC OASIS 4 BEDROOMS UNIT FOR RENT....TAKEN

2011-03-07T06:09:00.000-08:00

PARC OASIS 4 BEDROOMS UNIT FOR RENT.......TAKEN

Parc Oasis is truly an Oasis located at 35, Jurong East Avenue 1,

Singapore

FACILITIES AT PARC OASIS

Swimming pool

Gymnasium

Sauna

Tennis

Squash

Clubhouse

Playground

Putting green

BBQ

24 hour security

Basement carpark

ABOUT THE UNIT – AVAILABLE FROM 1^st MAY.

1507 Sq ft. -4 bedrooms / 3 bathrooms

It’s a designer décor unit with a beautiful view of the Jurong lake. The unit also has a view of the pool, clubhouse and children’s play area.

High floor, bright and windy. No afternoon sun. Very quiet and peaceful.

Spacious living and dining showcasing the grandeur of the layout. Newly renovated and very tasteful décor pleasing to one and all.

Fully furnished, Fully equipped kitchen, Aircons in all the rooms. Clean and well kept.

4 bedrooms(Parquet flooring in the bedrooms), 3 bathrooms, Master bathroom comes with attached bathtub.

Maids room, Yard / Laundry area.

Intercom

LOOKING FOR 2 YEARS LEASE.

NEAREST MRT STATIONS

CHINESE GARDEN MRT STATION (EW25)

151, Boon Lay Way

Singapore

609959

How Far? 0.24 km

LAKESIDE MRT STATION (EW26)

201, Boon Lay Way

Singapore

649845

How Far? 1.43 km

NEAREST SHOPPING CENTRES / MALLS

JURONG ENTERTAINMENT CENTRE

2, Jurong East Central 1

Singapore

609731

How Far? 1.36 km

INTERNATIONAL MERCHANDISE MART (IMM BUILDING)

2, Jurong East Street 21

Singapore

609601

How Far 1.71 km

WEST MALL

1, Bukit Batok Central Link

Singapore

658713

How Far? 1.8 km

NEAREST SCHOOLS

BOON LAY PRIMARY SCHOOL

320, Jurong East Street 32

Singapore

609476

How Far? 0.52 km

SHUQUN SECONDARY SCHOOL

450, Jurong East Street 21

Singapore

609604

How Far? 0.71 km

MEASURES TO RAISE PROFESSIONALISM OF THE REAL ESTATE AGENCY INDUSTRY AND TO SAFEGUARD CONSUMER INTEREST

2011-03-02T18:08:00.000-08:00

MEASURES TO RAISE PROFESSIONALISM OF THE REAL ESTATE

AGENCY INDUSTRY AND TO SAFEGUARD CONSUMER INTEREST

The Council for Estate Agencies (CEA) will implement further regulatory

measures to raise the professionalism of the real estate agency industry and to

safeguard consumer interest.

ESTATE AGENT CARD

2. From 1 March 2011, all salespersons are required to display their Estate

Agent Card when carrying out estate agency work. The Estate Agent Card will

carry the following information:

Name and license number of the estate agent;
Name and registration number of the salesperson;
Recent photograph of the salesperson; and
Expiry date of registration of the salesperson.

3. Sample copies of the Estate Agent Card are shown in Annex A. All

salespersons must display their card prominently during the course of their

work. Non-compliance of this regulation is an offence against the Estate

Agents (Estate Agency Work) Regulations 2010. Offenders are liable on

conviction to a fine of up to $10,000, or imprisonment of up to 6 months, or both.

PHOTOGRAPHS OF SALESPERSONS ON PUBLIC REGISTER

4. From 1 March 2011, CEA’s Public Register will be enhanced to display

photographs of all registered salespersons.

5. Consumers are advised to access CEA’s Public Register at

www.cea.gov.sg to verify the information on the Estate Agent Card against that

on the Public Register before engaging the services of salespersons (see

Annex B). Consumers should also report to CEA when they encounter any

person not listed on the Public Register but carrying out estate agency work

illegally. This will raise overall standards of the industry, as consumers can be

more discerning in assessing the salesperson they engage.

DISPUTE RESOLUTION SCHEME

6. Consumers who are unable to obtain a satisfactory resolution with the

Estate Agent in the event of a dispute have recourse to CEA’s Dispute

Resolution Scheme. This was implemented on 3 January 2011. The key

elements of the scheme are summarized in Annex C.

INITIATIVES TO PROMOTE CONSUMER AWARENESS AND EDUCATION

7. On these latest measures to protect consumer interest, CEA Executive

Director, Mr Chionh Chye Khye commented: “Beyond the regulatory role,

promoting consumer awareness and education are key focuses of CEA’s work.

CEA will work with CASE, HDB and the industry to raise consumer awareness,

and to educate them on their rights and responsibilities when appointing

salespersons for property transactions.”

Kindly refer to the link in the CEA website.

http://www.cea.gov.sg/cea/content/binary/pdfFiles/CEAPressRelease24Feb2011.pdf

RISING COSTS A PRESSING FACTOR AFTER BUDGET 2011

2011-02-23T18:30:00.000-08:00

RISING COSTS A PRESSING FACTOR AFTER BUDGET 2011

Feb 23, 2011

The new budget did little to alleviate the worries about rising prices among Singaporeans.

The Government has received echoing remarks about rising prices in the past four days, including a forum it held on Tuesday.

Most welcomed the initiatives, which include cash pay-outs, tax rebates and top-ups, to ease the rising cost of living. However, the issue of inflation and rising costs continued to be a topic of concern for many.

Even with the cash pay-outs, many still worry about the rising cost in such services, as medical care and child care might not be enough — a prevalent concern for low-income earners.

During the 90-minute forum chaired by Second Minister for Finance Lim Hwee Hua, most of the 50 attendees asked about the Government’s plan to curb inflation, which saw a two-year high of 4.6 per cent last December.

Info courtesy - PropertyGuru.com.sg