PRICEY condo-style flats will remain a small proportion of the total public housing supply with the Government pledging yesterday to continue providing affordable homes.
HIGH-END FLATS: The 714-unit City View@Boon Keng by Hoi Hup Sunway Development, drew about 3,500 applications for three- to five-room flats. Prices ranged from $349,000 to $727,000. — ST PHOTOS: DESMOND LIM
Its assurance came as high-end flats in Boon Keng offered by private developers were launched recently for up to $727,000 for a five-room flat.
The flats come with interior layouts and fittings more commonly seen in private condominiums, such as bay windows in bathrooms, large balconies and built-in wardrobes.
Buyers are also concerned that prices of resale Housing Board flats shot up 17.4 per cent last year - the highest in a decade - and that sellers in coveted districts are demanding as much as $100,000 in cash over the valuation of their flats.
CONDO-STYLE FIXTURES: Some flats in City View will have wall-to-wall balconies in living rooms.
National Development Minister Mah Bow Tan told Parliament that high-end flats - built under the Design, Build and Sell Scheme (DBSS) - ’serve to fulfil the needs of a niche segment of the HDB market - those with higher aspirations and who can afford a higher price’.
Under the programme, developers are free to design and price the flats as long as they work within the rules of public housing. This means they have to sell flats to families earning no more than $8,000 a month - the limit for households buying public housing.
The first such project, the 616-unit Premiere@ Tampines by Sim Lian Land, drew almost 6,000 applications for its two-, four- and five-room flats with prices from $138,000 to $450,000.
The second, the 714-unit City View@Boon Keng by Hoi Hup Sunway Development, drew about 3,500 applications for three- to five-room flats. Prices ranged from $349,000 to $727,000.
The City View prices had prompted some to wonder if they were affordable to those earning $8,000 a month. Nominated MP Eunice Olsen asked if the income ceiling could be raised for such flats.
Mr Mah said no, because it could result in developers pricing their flats even higher.
The minister added that private companies taking part in the DBSS scheme develop the projects knowing there is an income cap on buyers.
He told Dr Ong Seh Hong (Marine Parade GRC), who asked why the HDB had ’shifted’ from its original mission of providing affordable housing, that the board was, in fact, staying the course.
In recent years it had re-introduced new two- and three-room flats, while additional housing grants are also being offered to low- income earners, he said.
Besides, recent buyers of new HDB flats actually spend just 20 per cent of their monthly household income on housing. This is about half of the debt servicing limit typically used by financial institutions.
Mr Mah added that the HDB was monitoring resale prices, but urged buyers who cannot afford the cash-over-valuation sums demanded by sellers to postpone their purchases or apply for new - and cheaper - HDB flats instead.
Demand for such homes has been rising as well. Last month, 316 surplus flats in the outlying towns of Hougang, Sengkang and Punggol drew 5,147 applications.
The Government will not abandon mission of providing public housing for Singaporeans, assures National Development Minister Mah Bow Tan.
In response to questions from MPs, Mr Mah told Parliament that even with the rising popularity of more expensive condo-style flats - built and sold by private developers under the Design, Built and Sell Scheme (DBSS) - HDB’s top priority is still providing traditional no-frills flats.
Source : Straits Times - 22 Jan 2008
Showing posts with label HDB. Show all posts
Showing posts with label HDB. Show all posts
Tuesday, January 22, 2008
CHIP Eng Seng Corporation has been awarded a contract worth $188 million by the Housing & Development Board
CHIP Eng Seng Corporation has been awarded a contract worth $188 million by the Housing & Development Board for the construction of 1,394 dwelling units in Queenstown.
The contract, won through wholly-owned subsidiary Chip Eng Seng Contractors (1988) Pte Ltd, also includes the construction of a multi-storey carpark, link bridges, a roof garden, an education centre and other facilities.
Building works are expected to begin next month and to be completed by 2011. This is Chip Eng Seng’s first construction contract won this year.
With construction demand on the rise, Chip Eng Seng said it expects its construction division to be busy with tenders and construction work this year.
‘After many lacklustre years, an upturn in the construction industry is in view. We are very positive about our prospects for 2008,’ said Lim Tiam Seng, executive chairman of the group.
As at June 2007, Chip Eng Seng had a construction order book of about $590 million that will take the group through to 2011. The company is undertaking two other HDB housing projects. One is in Sembawang and the other is the Pinnacle @ Duxton, which features seven 50-storey residential blocks with skybridges, and communal and commercial facilities.
When completed, Pinnacle @ Duxton will be the tallest public housing in Singapore.
Chip Eng Seng, which is into property as well as construction, has undertaken a broad spectrum of construction projects in both the private and public sectors. It has also been actively acquiring and developing properties in Singapore, spanning residential, commercial and industrial properties.
Source : Business Times - 22 Jan 2008
The contract, won through wholly-owned subsidiary Chip Eng Seng Contractors (1988) Pte Ltd, also includes the construction of a multi-storey carpark, link bridges, a roof garden, an education centre and other facilities.
Building works are expected to begin next month and to be completed by 2011. This is Chip Eng Seng’s first construction contract won this year.
With construction demand on the rise, Chip Eng Seng said it expects its construction division to be busy with tenders and construction work this year.
‘After many lacklustre years, an upturn in the construction industry is in view. We are very positive about our prospects for 2008,’ said Lim Tiam Seng, executive chairman of the group.
As at June 2007, Chip Eng Seng had a construction order book of about $590 million that will take the group through to 2011. The company is undertaking two other HDB housing projects. One is in Sembawang and the other is the Pinnacle @ Duxton, which features seven 50-storey residential blocks with skybridges, and communal and commercial facilities.
When completed, Pinnacle @ Duxton will be the tallest public housing in Singapore.
Chip Eng Seng, which is into property as well as construction, has undertaken a broad spectrum of construction projects in both the private and public sectors. It has also been actively acquiring and developing properties in Singapore, spanning residential, commercial and industrial properties.
Source : Business Times - 22 Jan 2008
Saturday, December 1, 2007
Segar Meadows in Bukit Panjang town and Compassvale Beacon in Sengkang town comprise a total of 1,162 flats.
Board may offer another 6,000 units through build to order scheme.
The Housing and Development Board will continue to monitor demand and could offer another 6,000 units through its build-to-order (BTO) system. However, prices are also likely to go up.
Saying that he did not want to ‘fudge the issue’, National Development Minister Mah Bow Tan said: ‘Prices will go up as a result of resale prices going up.’ Mr Mah was speaking at the launch of two new housing projects under the BTO system.
The projects, Segar Meadows in Bukit Panjang town and Compassvale Beacon in Sengkang town comprise a total of 1,162 flats.
Three- and four-room flats (68 sq m-93 sq m) at Segar Meadows will cost between $116,000 and $231,000, while two- to four-room (48 sq m to 97 sq m) flats at Compassvale Beacon will cost between $69,000 and $233,000.
Although the precise formula for fixing prices was not revealed, Mr Mah explained that it would be based on average resale prices rather than the ’spectacular prices’ reported for some flats recently.
Mr Mah also let on that he had received a few letters and e-mails from constituents saying that they had not been successful in getting flats through the BTO system.
But he reiterated that the government was committed to providing a variety of affordable public housing to meet the ‘aspirations’ of first-time buyers and young couples.
To this end, he revealed that 4,800 units have been launched through BTO this year, twice the number compared to 2006.
On affordability, Mr Mah said that the majority of households spent a manageable 20-25 per cent of their monthly household income servicing loans for their flats. He also added that since the implementation of the Additional Housing Grant scheme in March 2006, 4,100 eligible households have benefited from grants amounting to about $50 million.
And demand from first time buyers has been strong. According to HDB, about 92 per cent of those who applied for the 4-room flats for the two BTO launches in August and September and were successfully short-listed within the first 100 per cent flat supply were first timers.
Mr Mah also had this advice for those looking to buy a flat now: ‘If you cannot afford a big flat, then buy a smaller flat. If you can’t get a new flat, then get a resale flat. In life, we make trade-offs all the time.’
To meet the needs of the ’sandwiched class’, Mr Mah revealed that HDB will be making more sites for executive condominiums (ECs) and the Design, Build and Sell scheme (DBSS) available in the first half of 2008.
Up to three EC sites with a total of 1,300 units, and four DBSS sites with a total of 1,900 units are set to go on the reserve list of Government Land Sales Programme for H1 2008.
Knight Frank director (research and consultancy) Nicholas Mak said that the supply of more public housing flats could cool resale flat prices but the impact will be felt next year. ‘It could be a signal that the government will release more sites to control runaway prices in the resale market,’ he added.
Managing new supply and demand will be a tricky job for HDB because it does not want to be stuck with a surplus of flats.
A tight hold on supply could, however, push up prices.
But demand seems stable. Mr Mak points out that so far, demand as measured by the number of applications received for new flats between 2000 and 2007 has ranged from 7,900 to 13,800. This pales in comparison to the 60,000 to 70,000 applications received in the mid-1990’s, he said.
Mr Mak also added that he expects the impact on the private property market to be minimal.
Source : Business Times - 29 Nov 2007
The Housing and Development Board will continue to monitor demand and could offer another 6,000 units through its build-to-order (BTO) system. However, prices are also likely to go up.
Saying that he did not want to ‘fudge the issue’, National Development Minister Mah Bow Tan said: ‘Prices will go up as a result of resale prices going up.’ Mr Mah was speaking at the launch of two new housing projects under the BTO system.
The projects, Segar Meadows in Bukit Panjang town and Compassvale Beacon in Sengkang town comprise a total of 1,162 flats.
Three- and four-room flats (68 sq m-93 sq m) at Segar Meadows will cost between $116,000 and $231,000, while two- to four-room (48 sq m to 97 sq m) flats at Compassvale Beacon will cost between $69,000 and $233,000.
Although the precise formula for fixing prices was not revealed, Mr Mah explained that it would be based on average resale prices rather than the ’spectacular prices’ reported for some flats recently.
Mr Mah also let on that he had received a few letters and e-mails from constituents saying that they had not been successful in getting flats through the BTO system.
But he reiterated that the government was committed to providing a variety of affordable public housing to meet the ‘aspirations’ of first-time buyers and young couples.
To this end, he revealed that 4,800 units have been launched through BTO this year, twice the number compared to 2006.
On affordability, Mr Mah said that the majority of households spent a manageable 20-25 per cent of their monthly household income servicing loans for their flats. He also added that since the implementation of the Additional Housing Grant scheme in March 2006, 4,100 eligible households have benefited from grants amounting to about $50 million.
And demand from first time buyers has been strong. According to HDB, about 92 per cent of those who applied for the 4-room flats for the two BTO launches in August and September and were successfully short-listed within the first 100 per cent flat supply were first timers.
Mr Mah also had this advice for those looking to buy a flat now: ‘If you cannot afford a big flat, then buy a smaller flat. If you can’t get a new flat, then get a resale flat. In life, we make trade-offs all the time.’
To meet the needs of the ’sandwiched class’, Mr Mah revealed that HDB will be making more sites for executive condominiums (ECs) and the Design, Build and Sell scheme (DBSS) available in the first half of 2008.
Up to three EC sites with a total of 1,300 units, and four DBSS sites with a total of 1,900 units are set to go on the reserve list of Government Land Sales Programme for H1 2008.
Knight Frank director (research and consultancy) Nicholas Mak said that the supply of more public housing flats could cool resale flat prices but the impact will be felt next year. ‘It could be a signal that the government will release more sites to control runaway prices in the resale market,’ he added.
Managing new supply and demand will be a tricky job for HDB because it does not want to be stuck with a surplus of flats.
A tight hold on supply could, however, push up prices.
But demand seems stable. Mr Mak points out that so far, demand as measured by the number of applications received for new flats between 2000 and 2007 has ranged from 7,900 to 13,800. This pales in comparison to the 60,000 to 70,000 applications received in the mid-1990’s, he said.
Mr Mak also added that he expects the impact on the private property market to be minimal.
Source : Business Times - 29 Nov 2007
Monday, November 26, 2007
The Housing and Development Board imposes the levy on those who sell their first flat to buy another from the board.
NEW executive condominiums (ECs) will be even more attractive now that the resale levy is no longer payable.
The Housing and Development Board imposes the levy on those who sell their first flat to buy another from the board. It is a fixed sum that ranges from $15,000 to $50,000 according to flat type, and $55,000 for ECs.
In a statement yesterday, HDB said: ‘To align the purchase of new ECs with the Design, Build and Sell Scheme (DBSS), second-timers buying a new EC unit from the developer will no longer have to pay the resale levy.’
HDB also said that previously, first-timers who bought new ECs were barred from buying another new EC, HDB or DBSS flat. This bar has now been lifted.
PropNex CEO Mohamed Ismail believes the change will give ‘greater incentive’ to HDB dwellers who aspire to a condominium lifestyle by way of an EC.
Mr Ismail reckons the dropping of the resale levy, coupled with rising HDB resale flat prices, could leave some second-time buyers with up to $100,000 to add to their housing budget, depending on the size of the flat they sell.
He also believes developers could be encouraged to bid for EC sites, as demand will grow.
The government has said it intends to release more EC sites.
The first to be released, after a gap of more than three years since the last EC site was sold in 2004, will be at Punggol Road/Punggol Field.
The 2.27ha site with a plot ratio of 3.0 was put on the reserve list of the Government Land Sales Programme yesterday. And with the dropping of the resale levy, consultants expect interest in the site to increase.
Cushman & Wakefield managing director Donald Han says the last EC site at Woodlands, where La Casa now stands, was sold for $150 per sq ft per plot ratio (psf ppr). Since then, two DBSS sites - launched at Tampines in October 2005 and Boon Keng Road in March 2007 - sold for $114 psf ppr and $234 psf ppr respectively.
Mr Han says EC sites typically fetch more than DBSS sites. And based on the last DBSS site price at Boon Keng Road, but factoring in Punggol’s location and EC site status, he expects the Punggol EC site to fetch $190-$220 psf ppr.
‘We expect strong interest from developers and contractors for this site due to revival of HDB market activity and recent price increases - supported mainly by HDB upgraders and new home buyers,’ he said.
‘In addition, the government has committed its resources to turning Punggol into a major waterfront township and Punggol itself has been a news focal point lately.’
Source : Business Times - 21 Nov 2007
The Housing and Development Board imposes the levy on those who sell their first flat to buy another from the board. It is a fixed sum that ranges from $15,000 to $50,000 according to flat type, and $55,000 for ECs.
In a statement yesterday, HDB said: ‘To align the purchase of new ECs with the Design, Build and Sell Scheme (DBSS), second-timers buying a new EC unit from the developer will no longer have to pay the resale levy.’
HDB also said that previously, first-timers who bought new ECs were barred from buying another new EC, HDB or DBSS flat. This bar has now been lifted.
PropNex CEO Mohamed Ismail believes the change will give ‘greater incentive’ to HDB dwellers who aspire to a condominium lifestyle by way of an EC.
Mr Ismail reckons the dropping of the resale levy, coupled with rising HDB resale flat prices, could leave some second-time buyers with up to $100,000 to add to their housing budget, depending on the size of the flat they sell.
He also believes developers could be encouraged to bid for EC sites, as demand will grow.
The government has said it intends to release more EC sites.
The first to be released, after a gap of more than three years since the last EC site was sold in 2004, will be at Punggol Road/Punggol Field.
The 2.27ha site with a plot ratio of 3.0 was put on the reserve list of the Government Land Sales Programme yesterday. And with the dropping of the resale levy, consultants expect interest in the site to increase.
Cushman & Wakefield managing director Donald Han says the last EC site at Woodlands, where La Casa now stands, was sold for $150 per sq ft per plot ratio (psf ppr). Since then, two DBSS sites - launched at Tampines in October 2005 and Boon Keng Road in March 2007 - sold for $114 psf ppr and $234 psf ppr respectively.
Mr Han says EC sites typically fetch more than DBSS sites. And based on the last DBSS site price at Boon Keng Road, but factoring in Punggol’s location and EC site status, he expects the Punggol EC site to fetch $190-$220 psf ppr.
‘We expect strong interest from developers and contractors for this site due to revival of HDB market activity and recent price increases - supported mainly by HDB upgraders and new home buyers,’ he said.
‘In addition, the government has committed its resources to turning Punggol into a major waterfront township and Punggol itself has been a news focal point lately.’
Source : Business Times - 21 Nov 2007
Thursday, November 22, 2007
THE rising property market has brought executive condominiums (ECs) back from the brink of extinction.
THE rising property market has brought executive condominiums (ECs) back from the brink of extinction.
These homes - which are halfway between public housing and private condominiums - suddenly looked much more appealing after rules for buyers were relaxed on Tuesday.
Property consultants now expect that more plots for ECs, such as the 2.27ha site placed on the market on Tuesday, will soon be offered.
The main reason: the widening gap between prices of resale Housing Board flats and those of private condos. ECs, which come with condo facilities but with sale restrictions similar to those for public housing, were introduced in 1995 to bridge this gap.
They became relatively unpopular, however, after the property market plunged a few years later, making private condos more affordable.
In fact, when the first few ECs hit the resale market in 2004 after the minimum five-year occupation period, many were sold at a loss or at breakeven prices. This was because they were booked when prices were at their peak in 1996.
Many people expected Far East Organization’s La Casa in Woodlands to be the last EC project on the market when it was launched for sale in 2005.
‘Mass market condo prices were in the doldrums, making ECs redundant. Today, that’s a different story,’ said Colliers International’s director of research and consultancy, Ms Tay Huey Ying.
Private home prices surged 22.9 per cent in the first nine months of the year - more than twice the rate achieved by resale HDB flats.
Lower-priced ECs are more attractive now because prices of condos in the suburbs - where ECs tend to be sited - have started to move up significantly. In the July-September period, prices of non-landed homes outside the central region rose 7.9 per cent. Consultants expect this growth to continue.
The easing of EC rules is also expected to increase demand from people looking to move from HDB flats. The HDB removed a hurdle for upgraders by scrapping a resale levy payable by EC buyers who had previously bought government-subsidised flats.
Buyers of new EC units are also no longer barred from buying second new EC units or new flats. In addition, the HDB now requires developers to reserve 90 per cent of units for first-time buyers in the first month of sale.
Although ECs still cannot be sold within the first five years and remain out of bounds to foreigners within the first 10 years, the easing of rules has helped ECs shake off their tag as second-rate condos, said Mr Eric Cheng, the executive director of the HSR property group.
Potential buyers include property agent Lester Tan, 27, who has been living with his parents for the past five years since he got married.
He and his wife started looking for a condo about two years ago, but regretted waiting so long to buy one, as prices have shot up.
He said: ‘We heard that the Punggol EC may be launched, and we are quite excited about it.’
Potential upgraders like Ms Elsie Cheng, 31, are also eyeing the future EC in Punggol. The teacher - who lives with her husband, seven-month-old son and maid in a two-bedroom EC unit in Tampines - is looking to move into a bigger EC.
‘Why pay so much for a private condo?’ she asked.
Knight Frank’s head of research and consultancy, Mr Nicholas Mak, said the changes were likely to raise the proportion of upgraders among EC buyers, from an estimated 5 per cent to 10 per cent, to 20 per cent to 25 per cent.
Developers such as Frasers Centrepoint Homes, which built the Lilydale and Quintet ECs, are optimistic. Its chief operating officer, Mr Cheang Kok Kheong, told The Straits Times: ‘The EC will do well in today’s market as a hybrid property - apartments with condo facilities but without private condo price tags.’
He added: ‘As a reflection of the strong confidence and growth potential of the EC market, we expect to see increased competition in this market segment and more developers taking part in upcoming EC land tenders.’
Buyers hoping to make a quick buck from ECs, however, should take heed. ‘The (full) value of the EC will not be realised immediately but in 10 years, subject to the property market being buoyant at that time,’ said PropNex chief executive Mohamed Ismail.
For now, all eyes are on the EC site in Punggol Field. Estimated to be able to fit about 620 homes, it will be put up for tender once a developer commits to a minimum bid that meets the Government’s reserve price.
The EC units, however, will meet only a small portion of the current demand for new homes. In a recent HDB sales exercise, almost 8,000 families applied for just 400 flats in Telok Blangah, while more than 1,600 applied for 516 homes in Punggol.
Source : Straits Times - 22 Nov 2007
These homes - which are halfway between public housing and private condominiums - suddenly looked much more appealing after rules for buyers were relaxed on Tuesday.
Property consultants now expect that more plots for ECs, such as the 2.27ha site placed on the market on Tuesday, will soon be offered.
The main reason: the widening gap between prices of resale Housing Board flats and those of private condos. ECs, which come with condo facilities but with sale restrictions similar to those for public housing, were introduced in 1995 to bridge this gap.
They became relatively unpopular, however, after the property market plunged a few years later, making private condos more affordable.
In fact, when the first few ECs hit the resale market in 2004 after the minimum five-year occupation period, many were sold at a loss or at breakeven prices. This was because they were booked when prices were at their peak in 1996.
Many people expected Far East Organization’s La Casa in Woodlands to be the last EC project on the market when it was launched for sale in 2005.
‘Mass market condo prices were in the doldrums, making ECs redundant. Today, that’s a different story,’ said Colliers International’s director of research and consultancy, Ms Tay Huey Ying.
Private home prices surged 22.9 per cent in the first nine months of the year - more than twice the rate achieved by resale HDB flats.
Lower-priced ECs are more attractive now because prices of condos in the suburbs - where ECs tend to be sited - have started to move up significantly. In the July-September period, prices of non-landed homes outside the central region rose 7.9 per cent. Consultants expect this growth to continue.
The easing of EC rules is also expected to increase demand from people looking to move from HDB flats. The HDB removed a hurdle for upgraders by scrapping a resale levy payable by EC buyers who had previously bought government-subsidised flats.
Buyers of new EC units are also no longer barred from buying second new EC units or new flats. In addition, the HDB now requires developers to reserve 90 per cent of units for first-time buyers in the first month of sale.
Although ECs still cannot be sold within the first five years and remain out of bounds to foreigners within the first 10 years, the easing of rules has helped ECs shake off their tag as second-rate condos, said Mr Eric Cheng, the executive director of the HSR property group.
Potential buyers include property agent Lester Tan, 27, who has been living with his parents for the past five years since he got married.
He and his wife started looking for a condo about two years ago, but regretted waiting so long to buy one, as prices have shot up.
He said: ‘We heard that the Punggol EC may be launched, and we are quite excited about it.’
Potential upgraders like Ms Elsie Cheng, 31, are also eyeing the future EC in Punggol. The teacher - who lives with her husband, seven-month-old son and maid in a two-bedroom EC unit in Tampines - is looking to move into a bigger EC.
‘Why pay so much for a private condo?’ she asked.
Knight Frank’s head of research and consultancy, Mr Nicholas Mak, said the changes were likely to raise the proportion of upgraders among EC buyers, from an estimated 5 per cent to 10 per cent, to 20 per cent to 25 per cent.
Developers such as Frasers Centrepoint Homes, which built the Lilydale and Quintet ECs, are optimistic. Its chief operating officer, Mr Cheang Kok Kheong, told The Straits Times: ‘The EC will do well in today’s market as a hybrid property - apartments with condo facilities but without private condo price tags.’
He added: ‘As a reflection of the strong confidence and growth potential of the EC market, we expect to see increased competition in this market segment and more developers taking part in upcoming EC land tenders.’
Buyers hoping to make a quick buck from ECs, however, should take heed. ‘The (full) value of the EC will not be realised immediately but in 10 years, subject to the property market being buoyant at that time,’ said PropNex chief executive Mohamed Ismail.
For now, all eyes are on the EC site in Punggol Field. Estimated to be able to fit about 620 homes, it will be put up for tender once a developer commits to a minimum bid that meets the Government’s reserve price.
The EC units, however, will meet only a small portion of the current demand for new homes. In a recent HDB sales exercise, almost 8,000 families applied for just 400 flats in Telok Blangah, while more than 1,600 applied for 516 homes in Punggol.
Source : Straits Times - 22 Nov 2007
Tuesday, November 20, 2007
Second-time flat buyers who buy a new Executive Condominium (EC) will no longer have to pay the resale levy.
Second-time flat buyers who buy a new Executive Condominium (EC) will no longer have to pay the resale levy.
The policy change is to align the purchase of new ECs with the Design, Build and Sell Scheme (DBSS). It will take effect for those who buy new EC units to be built at Punggol.
Another change - a first-time buyer of a new EC can purchase a second new EC, HDB or DBSS flat. HDB will be lifting the permanent debarment policy with immediate effect.
However, an ex-EC owner can only buy a second new flat 30 months after selling his EC. This is because ECs are considered private housing. There are no restrictions on ex-EC owners buying a resale flat.
Similar to DBSS projects, private developers of EC projects will now be required to set aside at least 90 percent of the units for first-timers during the first month of their sale.
The EC Housing Scheme was introduced in 1995 to meet the aspirations of professional couples with household incomes of up to S$10,000 a month to own private housing.
Source : ChannelNewsAsia - 20 Nov 2007
The policy change is to align the purchase of new ECs with the Design, Build and Sell Scheme (DBSS). It will take effect for those who buy new EC units to be built at Punggol.
Another change - a first-time buyer of a new EC can purchase a second new EC, HDB or DBSS flat. HDB will be lifting the permanent debarment policy with immediate effect.
However, an ex-EC owner can only buy a second new flat 30 months after selling his EC. This is because ECs are considered private housing. There are no restrictions on ex-EC owners buying a resale flat.
Similar to DBSS projects, private developers of EC projects will now be required to set aside at least 90 percent of the units for first-timers during the first month of their sale.
The EC Housing Scheme was introduced in 1995 to meet the aspirations of professional couples with household incomes of up to S$10,000 a month to own private housing.
Source : ChannelNewsAsia - 20 Nov 2007
Sunday, November 18, 2007
4.9km waterfront promenade from Punggol Point to Sungei Serangoon are in store for Punggol residents.
Exciting plans such as a 4.9km waterfront promenade from Punggol Point to Sungei Serangoon are in store for Punggol residents.
With the new waterfront promenade, residents can expect sea sport activities and dining facilities.
Punggol Point will also be transformed with a 0.6-ha park that includes facilities for cycling and jogging.
Visitors can also enjoy the scenery from a vantage lookout point at the tiered boardwalk.
Punggol Point is already a popular spot for recreational activities like fishing and camping.
With more facilities coming up, such as a food and beverage establishment as well as a horse-riding centre, more people are expected to flock there to enjoy its rustic charms.
The promenade will connect two proposed recreational clusters at Punggol Point and along Sungei Serangoon.
There will also be park connectors along Sungei Serangoon and Sungei Punggol.
Together, they will complete the entire waterfront promenade loop around Punggol – from Sengkang to Punggol Park – thus providing a continuous walk along the Punggol coastline.
These plans were revealed at a community event by Defence Minister and MP for Pasir Ris-Punggol GRC, Mr Teo Chee Hean, on Sunday.
He said: “There are a lot of young families here and some of them are already adventurous. They walk along the coastline, there’s a bit of track but not a lot of facilities there. This will enhance the accessibility and make it a more interesting and exciting place for them.”
Residents are also looking forward to the makeover.
One of the Punggol residents, Cindy Ong, said: “My block is facing the Coney Island directly, so it has quite a nice scenery. I look forward to the new infrastructure.”
“The prices (of flats) over here will increase and the people living around here will be happier,” said Alvin Yeow.
Another Punggol resident, Vo Thanh Dang, said: “This idea is very good and it provides residents with a good and relaxing place.”
Construction of the promenade will begin next year and will be completed by 2010.
Mr Teo also revealed that the Sengkang Sports Complex is near completion and residents can enjoy facilities such as gymnasium, swimming pools, dance studios and a riverfront cafe from next year.
And for Pasir Ris residents, the location of the upcoming Pasir Ris Complex has been formalised and it will be built near the Pasir Ris MRT Station.
Source : ChannelNewsAsia - 18 Nov 2007
With the new waterfront promenade, residents can expect sea sport activities and dining facilities.
Punggol Point will also be transformed with a 0.6-ha park that includes facilities for cycling and jogging.
Visitors can also enjoy the scenery from a vantage lookout point at the tiered boardwalk.
Punggol Point is already a popular spot for recreational activities like fishing and camping.
With more facilities coming up, such as a food and beverage establishment as well as a horse-riding centre, more people are expected to flock there to enjoy its rustic charms.
The promenade will connect two proposed recreational clusters at Punggol Point and along Sungei Serangoon.
There will also be park connectors along Sungei Serangoon and Sungei Punggol.
Together, they will complete the entire waterfront promenade loop around Punggol – from Sengkang to Punggol Park – thus providing a continuous walk along the Punggol coastline.
These plans were revealed at a community event by Defence Minister and MP for Pasir Ris-Punggol GRC, Mr Teo Chee Hean, on Sunday.
He said: “There are a lot of young families here and some of them are already adventurous. They walk along the coastline, there’s a bit of track but not a lot of facilities there. This will enhance the accessibility and make it a more interesting and exciting place for them.”
Residents are also looking forward to the makeover.
One of the Punggol residents, Cindy Ong, said: “My block is facing the Coney Island directly, so it has quite a nice scenery. I look forward to the new infrastructure.”
“The prices (of flats) over here will increase and the people living around here will be happier,” said Alvin Yeow.
Another Punggol resident, Vo Thanh Dang, said: “This idea is very good and it provides residents with a good and relaxing place.”
Construction of the promenade will begin next year and will be completed by 2010.
Mr Teo also revealed that the Sengkang Sports Complex is near completion and residents can enjoy facilities such as gymnasium, swimming pools, dance studios and a riverfront cafe from next year.
And for Pasir Ris residents, the location of the upcoming Pasir Ris Complex has been formalised and it will be built near the Pasir Ris MRT Station.
Source : ChannelNewsAsia - 18 Nov 2007
Saturday, November 17, 2007
Newly-wed couples are postponing their traditional ceremonies while they wait for a new Housing Board flat.
AS PROPERTY prices rise, some newly-wed couples are postponing their traditional ceremonies while they wait for a new Housing Board flat.
Many have been priced out of the resale market while others want to buy a new home, which means joining the hordes trying their luck at ballots in HDB sales exercises.
It is leaving couples in a dilemma. While they have registered their marriages officially, they are reluctant to hold the customary ceremony that legitimises the union in the eyes of the community, until they have a home to call their own.
Members of Parliament say they are getting more appeals from distressed couples.
Aljunied GRC MP Cynthia Phua, who raised a question on the availability of flats in Parliament this week, told The Straits Times that one or two such couples bring up the problem at her Meet-the-People session every week.
Although technically married, many of them live apart, in their family homes, while waiting to get a flat together.
Madam Phua said: ‘For us Asians, once you hold back your customary wedding, you can’t live together, and you can’t even have babies.’
Deliveryman Ang Kah Liong, 34, has unsuccessfully applied for a new flat 10 times since he registered his marriage with his girlfriend three years ago. The couple - who earn $3,000 a month - live with Mr Ang’s parents and three elder brothers in their family’s two-bedroom flat.
They were determined to wait until they had a flat of their own before holding the customary ceremony but family pressure finally prompted them to hold it in September.
‘I had no choice,’ said Mr Ang. ‘I could not wait anymore.’
People like Mr Ang are being caught in a supply-demand crunch.
The buoyant resale market, which has seen prices grow by 11 per cent in the first nine months of this year, is fuelling a demand for new HDB flats.
In the July to September quarter, five-room flats in Queenstown - a coveted district - sold for a median sum of $110,000 above their valuations. This means a buyer had to pay at least $110,000 in cash as that amount cannot be covered with a home loan.
So young couples who cannot afford such resale prices - even with government grants that can go up to $40,000 - are turning to new HDB flats.
MPs told The Straits Times that many seek help to get a new flat near their parents’ homes but this can be difficult as these are usually in older estates where few new flats are being built.
Jalan Besar MP Lily Neo said: ‘Many couples want to live near their parents in the Central Business District, but as you know, there aren’t many flats there.’
They stand a better chance of getting a flat if they are willing to consider other locations, said Dr Neo.
Application figures for recent HDB sales exercises show how competitive the flat race can get.
The HDB received almost 8,000 applications for just 400 flats in Telok Blangah recently, and more than 1,600 applications for 516 homes in Punggol.
The HDB is pumping up the supply of new homes to meet demand. A further 3,600 flats are expected to be offered under the build-to-order system from now until March.
However, the Government has stated that it cannot meet all the demand for new HDB flats as that would risk creating an oversupply in the future.
Meanwhile 28-year-old secretary Koh Bee Leng and fiance Julius Lim, 30, who hope to marry next year, carry on with their house-hunting.
The couple have set their eyes on four-room flats in a mature estate such as Ang Mo Kio and Toa Payoh, but have had no luck in two sales exercises this year.
Ms Koh said: ‘Everything is uncertain now, because of the issue of the availability of the flat. That’s delaying our plan to get married.’
Source: The Straits Times 17 Nov 07
Many have been priced out of the resale market while others want to buy a new home, which means joining the hordes trying their luck at ballots in HDB sales exercises.
It is leaving couples in a dilemma. While they have registered their marriages officially, they are reluctant to hold the customary ceremony that legitimises the union in the eyes of the community, until they have a home to call their own.
Members of Parliament say they are getting more appeals from distressed couples.
Aljunied GRC MP Cynthia Phua, who raised a question on the availability of flats in Parliament this week, told The Straits Times that one or two such couples bring up the problem at her Meet-the-People session every week.
Although technically married, many of them live apart, in their family homes, while waiting to get a flat together.
Madam Phua said: ‘For us Asians, once you hold back your customary wedding, you can’t live together, and you can’t even have babies.’
Deliveryman Ang Kah Liong, 34, has unsuccessfully applied for a new flat 10 times since he registered his marriage with his girlfriend three years ago. The couple - who earn $3,000 a month - live with Mr Ang’s parents and three elder brothers in their family’s two-bedroom flat.
They were determined to wait until they had a flat of their own before holding the customary ceremony but family pressure finally prompted them to hold it in September.
‘I had no choice,’ said Mr Ang. ‘I could not wait anymore.’
People like Mr Ang are being caught in a supply-demand crunch.
The buoyant resale market, which has seen prices grow by 11 per cent in the first nine months of this year, is fuelling a demand for new HDB flats.
In the July to September quarter, five-room flats in Queenstown - a coveted district - sold for a median sum of $110,000 above their valuations. This means a buyer had to pay at least $110,000 in cash as that amount cannot be covered with a home loan.
So young couples who cannot afford such resale prices - even with government grants that can go up to $40,000 - are turning to new HDB flats.
MPs told The Straits Times that many seek help to get a new flat near their parents’ homes but this can be difficult as these are usually in older estates where few new flats are being built.
Jalan Besar MP Lily Neo said: ‘Many couples want to live near their parents in the Central Business District, but as you know, there aren’t many flats there.’
They stand a better chance of getting a flat if they are willing to consider other locations, said Dr Neo.
Application figures for recent HDB sales exercises show how competitive the flat race can get.
The HDB received almost 8,000 applications for just 400 flats in Telok Blangah recently, and more than 1,600 applications for 516 homes in Punggol.
The HDB is pumping up the supply of new homes to meet demand. A further 3,600 flats are expected to be offered under the build-to-order system from now until March.
However, the Government has stated that it cannot meet all the demand for new HDB flats as that would risk creating an oversupply in the future.
Meanwhile 28-year-old secretary Koh Bee Leng and fiance Julius Lim, 30, who hope to marry next year, carry on with their house-hunting.
The couple have set their eyes on four-room flats in a mature estate such as Ang Mo Kio and Toa Payoh, but have had no luck in two sales exercises this year.
Ms Koh said: ‘Everything is uncertain now, because of the issue of the availability of the flat. That’s delaying our plan to get married.’
Source: The Straits Times 17 Nov 07
Monday, November 12, 2007
HDB will be ramping up its building programme to offer over 4,000 new flats in the months ahead.
Property prices have been climbing in the past months, but the government does not plan to take further action to cool the property market for now.
The assurance came from National Development Minister Mah Bow Tan who was responding to MPs’ concerns in Parliament on Monday.
Q3 figures showed an 8.3 percent increase in prices of private residential properties, while prices of HDB resale flats rose by a 10-year high of 6.6 percent.
Last month, the government announced that it would do away with the deferred payment scheme for property purchases.
Seen as a move to reduce speculative activity and to stabilise the market, Mr Mah said the measure was sufficient for now.
He said: “If there is a need to act, we would. But at this point in time, there is no need and no intention for us to take any further action.
“The position that the government takes is that we will provide information on the supply-and-demand situation. We will put out supply as much as we can, taking into account medium- and long-term positions, and our bias is really not to over-regulate or to interfere in the market.”
Mr Mah also said the withdrawal of the deferred payment scheme has not affected genuine buyers.
Another concern raised was whether there is a shortage of private residential units in Singapore.
MP Ho Geok Choo of West Coast GRC asked Mr Mah to cite the means with which the National Development Ministry would consider increasing the supply of property.
Mr Mah replied: “At the end of Q3 2007, there was a supply stock in the pipeline of 65,000 units. This, in fact, is higher than the supply at the end of Q2 – 56,000 units.
“If Singaporeans are aware of these figures – and these are numbers that we put out regularly – there is no reason for Singaporeans to panic and feel that there is a real shortage in the medium term.”
The same applies to public housing - as HDB will be ramping up its building programme to offer over 4,000 new flats in the months ahead.
Mr Mah added that more sites will also be put up under the Government Land Sales Programme in the first half of next year, if necessary.
But this will be done carefully so as not to create an oversupply situation in the longer term.
Source : ChannelNewsAsia - 12 Nov 2007
The assurance came from National Development Minister Mah Bow Tan who was responding to MPs’ concerns in Parliament on Monday.
Q3 figures showed an 8.3 percent increase in prices of private residential properties, while prices of HDB resale flats rose by a 10-year high of 6.6 percent.
Last month, the government announced that it would do away with the deferred payment scheme for property purchases.
Seen as a move to reduce speculative activity and to stabilise the market, Mr Mah said the measure was sufficient for now.
He said: “If there is a need to act, we would. But at this point in time, there is no need and no intention for us to take any further action.
“The position that the government takes is that we will provide information on the supply-and-demand situation. We will put out supply as much as we can, taking into account medium- and long-term positions, and our bias is really not to over-regulate or to interfere in the market.”
Mr Mah also said the withdrawal of the deferred payment scheme has not affected genuine buyers.
Another concern raised was whether there is a shortage of private residential units in Singapore.
MP Ho Geok Choo of West Coast GRC asked Mr Mah to cite the means with which the National Development Ministry would consider increasing the supply of property.
Mr Mah replied: “At the end of Q3 2007, there was a supply stock in the pipeline of 65,000 units. This, in fact, is higher than the supply at the end of Q2 – 56,000 units.
“If Singaporeans are aware of these figures – and these are numbers that we put out regularly – there is no reason for Singaporeans to panic and feel that there is a real shortage in the medium term.”
The same applies to public housing - as HDB will be ramping up its building programme to offer over 4,000 new flats in the months ahead.
Mr Mah added that more sites will also be put up under the Government Land Sales Programme in the first half of next year, if necessary.
But this will be done carefully so as not to create an oversupply situation in the longer term.
Source : ChannelNewsAsia - 12 Nov 2007
Market watchers believe a new condo near Redhill MRT Station should be able to tap demand from HDB upgraders given the high value of HDB resale flats
DEVELOPERS continue to trigger the release of sites from the Government Land Sales programme’s reserve list.
The Urban Redevelopment Authority (URA) yesterday announced a successful application for a 99-year leasehold condo site on Alexandra Road near Redhill MRT Station and next to CapitaLand’s Metropolitan project.
The developer who made the application - who was not identified - has agreed to bid not less than $220.7 million, or $489 per square foot (psf) of potential gross floor area.
The site will be launched for tender in about two weeks.
The 92,127-sq-ft plot can be developed into a new condo with about 400 units averaging 1,200 sq ft.
‘My take is that the site could fetch a premium of within 10 per cent of the reserve price,’ said CB Richard Ellis executive director Joseph Tan.
‘Even at the reserve price, the breakeven cost for a new condo would be close to the $850 psf average price at which units of The Metropolitan condo have been selling in recent months.’
A 10 per cent premium to the site’s $489 psf per plot ratio (ppr) reserve price works out to $540 psf ppr.
Savills Singapore’s director of marketing and business development Ku Swee Yong estimates the site will fetch $550-$600 psf ppr, reflecting a breakeven cost of $850-$900 psf.
He reckons a condo on it could command about $1,000 psf on average if launched in 12-15 months.
‘This is one of the better sites on the reserve list, near an MRT Station and on the fringe of the CBD,’ he said.
‘It should attract five to eight bids. We’re not going to see the one to two bids that some Government Land Sale sites have been attracting lately,’ he added.
CBRE’s Mr Tan predicts at least five or six bids.
‘This is in a sector of the market that lacks supply and developers will be keen to bid for it,’ he said.
Market watchers believe a new condo near Redhill MRT Station should be able to tap demand from HDB upgraders given the high value of HDB resale flats in the area.
So far this year, 10 reserve-list sites on the Ministry of National Development’s slate of private residential, commercial and hotel sites have been triggered for launch.
Separately, URA yesterday awarded a residential site at Enggor Street behind Icon to Far East Organization unit Bishan Properties.
The company was the higher of two bidders the 99-year leasehold plot attracted at a tender that closed on Nov 1.
Its bid of $233.8 million or $851.66 psf ppr was 55 per cent higher than the only other offer of $150.98 million or about $550 psf per plot ratio by Guoco-Land.
A tender for the residential site next door closes on Nov 15.
Source : Business Times - 10 Nov 2007
The Urban Redevelopment Authority (URA) yesterday announced a successful application for a 99-year leasehold condo site on Alexandra Road near Redhill MRT Station and next to CapitaLand’s Metropolitan project.
The developer who made the application - who was not identified - has agreed to bid not less than $220.7 million, or $489 per square foot (psf) of potential gross floor area.
The site will be launched for tender in about two weeks.
The 92,127-sq-ft plot can be developed into a new condo with about 400 units averaging 1,200 sq ft.
‘My take is that the site could fetch a premium of within 10 per cent of the reserve price,’ said CB Richard Ellis executive director Joseph Tan.
‘Even at the reserve price, the breakeven cost for a new condo would be close to the $850 psf average price at which units of The Metropolitan condo have been selling in recent months.’
A 10 per cent premium to the site’s $489 psf per plot ratio (ppr) reserve price works out to $540 psf ppr.
Savills Singapore’s director of marketing and business development Ku Swee Yong estimates the site will fetch $550-$600 psf ppr, reflecting a breakeven cost of $850-$900 psf.
He reckons a condo on it could command about $1,000 psf on average if launched in 12-15 months.
‘This is one of the better sites on the reserve list, near an MRT Station and on the fringe of the CBD,’ he said.
‘It should attract five to eight bids. We’re not going to see the one to two bids that some Government Land Sale sites have been attracting lately,’ he added.
CBRE’s Mr Tan predicts at least five or six bids.
‘This is in a sector of the market that lacks supply and developers will be keen to bid for it,’ he said.
Market watchers believe a new condo near Redhill MRT Station should be able to tap demand from HDB upgraders given the high value of HDB resale flats in the area.
So far this year, 10 reserve-list sites on the Ministry of National Development’s slate of private residential, commercial and hotel sites have been triggered for launch.
Separately, URA yesterday awarded a residential site at Enggor Street behind Icon to Far East Organization unit Bishan Properties.
The company was the higher of two bidders the 99-year leasehold plot attracted at a tender that closed on Nov 1.
Its bid of $233.8 million or $851.66 psf ppr was 55 per cent higher than the only other offer of $150.98 million or about $550 psf per plot ratio by Guoco-Land.
A tender for the residential site next door closes on Nov 15.
Source : Business Times - 10 Nov 2007
Monday, November 5, 2007
THE Housing & Development Board has made a 99-year leasehold condo site at the corner of Lorong 2/3 Toa Payoh available for application
THE Housing & Development Board has made a 99-year leasehold condo site at the corner of Lorong 2/3 Toa Payoh available for application under the reserve list.
The 1.4-hectare plot can be developed into a project of about 530 units averaging 1,200 sq ft, property consultants say.
Market watchers suggest the site could attract bids ranging from $450 to $630 per sq ft per plot ratio - a spread that reflects uncertainty after recent market dynamics.
Last week’s withdrawal of the deferred payment scheme seems to have made developers cautious, as seen on Thursday when a state tender for a 99-year condo plot behind the Icon in Tanjong Pagar attracted just two bids.
But some observers say Far East Organization could submit a bid that matches the $601 psf per plot ratio it offered in September for a 99-year condo site next to Ang Mo Kio Hub. The $601 psf ppr was a record for suburban condo land.
Knight Frank managing director Tan Tiong Cheng believes a condo on the Toa Payoh site could sell for an average price of about $900 psf at most, considering it would be pitched mostly at HDB upgraders. That works out to a land bid of about $450 psf ppr and a breakeven cost for the project of about $800 psf.
But Sim Lian Holdings director Ken Kuik believes a new condo on the site could sell for an average price of close to $1,000 psf, going by recent launches. He was alluding to strong sales last weekend of freehold Park Natura at Bukit Batok, much further from the city, at an average price of $1,000 psf. The project is being sold on a partial deferred payment scheme.
Mr Kuik reckons the Toa Payoh site could fetch $500 to $550 psf ppr, which would result in a breakeven cost of $850 to $900 psf ppr and a selling price for the new condo of about $950-$1,000 psf.
Another developer reckons Far East, controlled by tycoon Ng Teng Fong, will at least match the $601 psf ppr it offered for the Ang Mo Kio site. ‘My gut feel is Far East could bid $620-630 psf ppr this time,’ the developer said.
‘Because of its size it can get lower construction costs and its architects are known to maximise efficiency, so even at this bid price its breakeven cost may be just above $900 psf.’
The 150,211 sq ft Toa Payoh site is flanked by Kheng Cheng School and the Singapore Federation of Chinese Clan Associations Building. It is within walking distance from Braddell MRT Station. The site has a plot ratio of 4.2.
Sites on the reserve list under the Government Land Sales Programme are launched for tender only after an application by a developer who undertakes to pay a minimum price acceptable to the state.
Source : Business Times - 3 Nov 2007
The 1.4-hectare plot can be developed into a project of about 530 units averaging 1,200 sq ft, property consultants say.
Market watchers suggest the site could attract bids ranging from $450 to $630 per sq ft per plot ratio - a spread that reflects uncertainty after recent market dynamics.
Last week’s withdrawal of the deferred payment scheme seems to have made developers cautious, as seen on Thursday when a state tender for a 99-year condo plot behind the Icon in Tanjong Pagar attracted just two bids.
But some observers say Far East Organization could submit a bid that matches the $601 psf per plot ratio it offered in September for a 99-year condo site next to Ang Mo Kio Hub. The $601 psf ppr was a record for suburban condo land.
Knight Frank managing director Tan Tiong Cheng believes a condo on the Toa Payoh site could sell for an average price of about $900 psf at most, considering it would be pitched mostly at HDB upgraders. That works out to a land bid of about $450 psf ppr and a breakeven cost for the project of about $800 psf.
But Sim Lian Holdings director Ken Kuik believes a new condo on the site could sell for an average price of close to $1,000 psf, going by recent launches. He was alluding to strong sales last weekend of freehold Park Natura at Bukit Batok, much further from the city, at an average price of $1,000 psf. The project is being sold on a partial deferred payment scheme.
Mr Kuik reckons the Toa Payoh site could fetch $500 to $550 psf ppr, which would result in a breakeven cost of $850 to $900 psf ppr and a selling price for the new condo of about $950-$1,000 psf.
Another developer reckons Far East, controlled by tycoon Ng Teng Fong, will at least match the $601 psf ppr it offered for the Ang Mo Kio site. ‘My gut feel is Far East could bid $620-630 psf ppr this time,’ the developer said.
‘Because of its size it can get lower construction costs and its architects are known to maximise efficiency, so even at this bid price its breakeven cost may be just above $900 psf.’
The 150,211 sq ft Toa Payoh site is flanked by Kheng Cheng School and the Singapore Federation of Chinese Clan Associations Building. It is within walking distance from Braddell MRT Station. The site has a plot ratio of 4.2.
Sites on the reserve list under the Government Land Sales Programme are launched for tender only after an application by a developer who undertakes to pay a minimum price acceptable to the state.
Source : Business Times - 3 Nov 2007
Friday, October 26, 2007
THE Housing and Development Board is inviting tenders for a 14,000 sq m condominium housing site at Elias Road in Pasir Ris.
THE Housing and Development Board is inviting tenders for a 14,000 sq m condominium housing site at Elias Road in Pasir Ris.
The HDB is selling the land under the Confirmed List of the Government Land Sales Programme.
The maximum gross floor area for the 99-year parcel is 42,378.9 sq m.
Tender closes on Dec 18.
In late July, the HDB offered a 6,000 sq m condo site in Ang Mo Kio Ave 8 under the Reserve List System.
The land which is near Ang Mo Kio Hub was bidded for a record $202.9 million or $601 psf by Far East Organisation.
Far East's break-even cost is estimated to be around $900 to $1,000 psf, which means apartments will likely be priced at a record $1,000 to $1,200 psf.
The HDB is selling the land under the Confirmed List of the Government Land Sales Programme.
The maximum gross floor area for the 99-year parcel is 42,378.9 sq m.
Tender closes on Dec 18.
In late July, the HDB offered a 6,000 sq m condo site in Ang Mo Kio Ave 8 under the Reserve List System.
The land which is near Ang Mo Kio Hub was bidded for a record $202.9 million or $601 psf by Far East Organisation.
Far East's break-even cost is estimated to be around $900 to $1,000 psf, which means apartments will likely be priced at a record $1,000 to $1,200 psf.
POTENTIAL buyers have rushed to put their name down for 400 new premium flats near the heart of town, launched for sale by the Housing Board yesterday
POTENTIAL buyers have rushed to put their name down for 400 new premium flats near the heart of town, launched for sale by the Housing Board yesterday.
By 5pm yesterday - nine hours after applications opened - 687 people had registered their interest for the flats, which will be built within an existing HDB estate at the foot of Mount Faber. Another batch of 516 flats were also launched for sale yesterday, further out in Punggol. They received 152 applications by 5pm.
Both projects are being offered under the build-to-order programme, so they will be built only when most flats have been booked.
Going by recent red-hot demand for new HDB flats, housing agents do not expect any problems on that front.
As the level of the response yesterday shows, the Mount Faber area project - called Telok Blangah Towers - is the more popular.
The premium project in Telok Blangah Street 31 comprises 90 elderly-friendly studio apartments, 100 three-room flats and 210 four-room units. Its prime location near the Central Business District, VivoCity mall and Sentosa is one reason behind the high level of interest.
It will be built within the established town of Bukit Merah - one of the few occasions when a build-to-order development will be located in a mature town with established facilities.
Its flats will have timber strip flooring in the bedrooms and ceramic floor and wall tiles in the bathrooms.
Build-to-order projects are usually located in new towns like Punggol and Sengkang - both far from the city centre. This has meant home buyers wanting to live closer to central Singapore have had to settle for older resale flats or pay a higher price for private condominiums.
The attractive location in Telok Blangah comes at a price: Four-room flats will cost between $308,000 and $402,000, more than 50 per cent above similar units in the Punggol project. Three-room flats will cost between $187,000 and $238,000, while studio units will go for $70,000 to $91,000.
The Punggol development, called the Punggol Lodge, will offer standard flats without flooring, with more modest prices.
Four-room ones are between $190,000 and $234,000, with three-room flats priced between $122,000 and $150,000.
Property firm ERA Singapore said four-room flats in the Telok Blangah area built from 1999 onwards cost between $370,000 and $408,000 on the resale market.
From April to June this year, resale four-room flats in Bukit Merah town - where flats in the Telok Blangah area are located - went for a median price of $371,000.
Mr Chandran Pillay, a senior division director of Global Real Estate Services, felt the new Telok Blangah flats were far from cheap.
'I think $400,000 is a bit high, but anybody who wants to live close to the city knows they have to pay a higher premium,' he said.
The HDB said this month that it was stepping up sales to meet rising demand for new flats. Its stock of unsold flats has dwindled from more than 10,000 three years ago to 3,500 now, and is expected to drop to 2,200 by the end of the year.
It will also offer about 4,500 new flats in the next six months under the build-to-order system.
By 5pm yesterday - nine hours after applications opened - 687 people had registered their interest for the flats, which will be built within an existing HDB estate at the foot of Mount Faber. Another batch of 516 flats were also launched for sale yesterday, further out in Punggol. They received 152 applications by 5pm.
Both projects are being offered under the build-to-order programme, so they will be built only when most flats have been booked.
Going by recent red-hot demand for new HDB flats, housing agents do not expect any problems on that front.
As the level of the response yesterday shows, the Mount Faber area project - called Telok Blangah Towers - is the more popular.
The premium project in Telok Blangah Street 31 comprises 90 elderly-friendly studio apartments, 100 three-room flats and 210 four-room units. Its prime location near the Central Business District, VivoCity mall and Sentosa is one reason behind the high level of interest.
It will be built within the established town of Bukit Merah - one of the few occasions when a build-to-order development will be located in a mature town with established facilities.
Its flats will have timber strip flooring in the bedrooms and ceramic floor and wall tiles in the bathrooms.
Build-to-order projects are usually located in new towns like Punggol and Sengkang - both far from the city centre. This has meant home buyers wanting to live closer to central Singapore have had to settle for older resale flats or pay a higher price for private condominiums.
The attractive location in Telok Blangah comes at a price: Four-room flats will cost between $308,000 and $402,000, more than 50 per cent above similar units in the Punggol project. Three-room flats will cost between $187,000 and $238,000, while studio units will go for $70,000 to $91,000.
The Punggol development, called the Punggol Lodge, will offer standard flats without flooring, with more modest prices.
Four-room ones are between $190,000 and $234,000, with three-room flats priced between $122,000 and $150,000.
Property firm ERA Singapore said four-room flats in the Telok Blangah area built from 1999 onwards cost between $370,000 and $408,000 on the resale market.
From April to June this year, resale four-room flats in Bukit Merah town - where flats in the Telok Blangah area are located - went for a median price of $371,000.
Mr Chandran Pillay, a senior division director of Global Real Estate Services, felt the new Telok Blangah flats were far from cheap.
'I think $400,000 is a bit high, but anybody who wants to live close to the city knows they have to pay a higher premium,' he said.
The HDB said this month that it was stepping up sales to meet rising demand for new flats. Its stock of unsold flats has dwindled from more than 10,000 three years ago to 3,500 now, and is expected to drop to 2,200 by the end of the year.
It will also offer about 4,500 new flats in the next six months under the build-to-order system.
Price increases were seen across most flat types and towns.
Price increases were seen across most flat types and towns.
Fri, Oct 26, 2007
The Straits Times
RIDING on the property boom, HDB resale prices are on the rise.
The price index of resale flats was up 6.6 per cent higher in the third quarter compared to the previous quarter, the HDB said in a press release on Friday. Price increases were seen across most flat types and towns.
'As at end-September, the HDB RPI has increased by about 11 per cent since the start of the year,' the HDB said.
For five-room flats, the median resale price in Queenstown is the highest at $603,000, followed by Marine Parade at $560,000 and Bukit Merah at $530,000.
Queenstown tops the list for median resale prices of 4-room flats as well, fetching $410,000. It is followed by Bukit Merah which commands a price of $396,500 and Central at $382,500.
The median Cash-Over-valuation (COV), which is the difference between the Resale Price and Market Value of the flat, in the July to September period was $17,000.
Eighty per cent of all resale transactions required COV while 20 per cent of the transactions were conducted at or below valuation.
Five-room flats in Queenstown commanded the highest median COV of $110,000, followed by Central with $91,500 and marine Parade at $85,000. However, the latter two towns saw less than 20 resale transactions in the quarter.
For four-room flats, apartments in Central fetched the highest median COV of $57,500, but there were less than 20 resale transactions for the town in the quarter. Queenstown at $57,000 and Bukit Merah at $40,500 were the next two highest on the list.
Highly popular in the last quarter were 4-room flats, which made up the bulk of resale transactions. There were 2,833 in total. The number was, however, lower than the second quarter which saw 2,833 resale transactions of such flat type.
Three-room flats were more popular than 5-room flats in the last quarter, with 2,179 transactions compared to 1,901.
New flats With its good take-up rates for public housing projects launched under the Build-To-Order system, HDB launched about 2,700 new flats under four BTO projects in the first three quarters of the year.
It launched another 916 units on Thursday and has plans to offer another 3,500 in the next six months.
'There are also plans to release another three Design, Build and Sell Scheme (DBSS) sites with an estimated combined yield of 1,500 units over this period,' the HDB said.
The new flats will be in addition to those offered under the Balloting Exercises for surplus Sers flats and the bi-monthly/monthly sales exercises for unsold flats.
Rental market Sublet rents for HDB flats were up in the last quarter in line with higher rents for private residential properties.
Marine Parade commanded the highest median subletting rents for both 3- and 4-room flats at $1,250 and $1,700.
HDB approved the subletting of 3,500 flats, bringing the total number of HDB flats approved for subletting to about 16,000 units, up from about 14,600 units in the second quarter.
HDB said it will be leasing out flats vacated under the Selective En bloc Redevelopment Scheme (Sers) to the general public under a special pilot project. It recently concluded a tender for the leasing of vacated Sers flats at Tiong Bahru Road and will assess the response to this pilot project, before deciding whether to expand the scheme in future.
This scheme puts 'the vacated Sers flats to better use in the interim period, pending their redevelopment', it said.
HDB said it 'has a potential supply of about 4,000 to 5,000 units that can be introduced to bolster rental supply in the HDB market over the next 3 years'.
Fri, Oct 26, 2007
The Straits Times
RIDING on the property boom, HDB resale prices are on the rise.
The price index of resale flats was up 6.6 per cent higher in the third quarter compared to the previous quarter, the HDB said in a press release on Friday. Price increases were seen across most flat types and towns.
'As at end-September, the HDB RPI has increased by about 11 per cent since the start of the year,' the HDB said.
For five-room flats, the median resale price in Queenstown is the highest at $603,000, followed by Marine Parade at $560,000 and Bukit Merah at $530,000.
Queenstown tops the list for median resale prices of 4-room flats as well, fetching $410,000. It is followed by Bukit Merah which commands a price of $396,500 and Central at $382,500.
The median Cash-Over-valuation (COV), which is the difference between the Resale Price and Market Value of the flat, in the July to September period was $17,000.
Eighty per cent of all resale transactions required COV while 20 per cent of the transactions were conducted at or below valuation.
Five-room flats in Queenstown commanded the highest median COV of $110,000, followed by Central with $91,500 and marine Parade at $85,000. However, the latter two towns saw less than 20 resale transactions in the quarter.
For four-room flats, apartments in Central fetched the highest median COV of $57,500, but there were less than 20 resale transactions for the town in the quarter. Queenstown at $57,000 and Bukit Merah at $40,500 were the next two highest on the list.
Highly popular in the last quarter were 4-room flats, which made up the bulk of resale transactions. There were 2,833 in total. The number was, however, lower than the second quarter which saw 2,833 resale transactions of such flat type.
Three-room flats were more popular than 5-room flats in the last quarter, with 2,179 transactions compared to 1,901.
New flats With its good take-up rates for public housing projects launched under the Build-To-Order system, HDB launched about 2,700 new flats under four BTO projects in the first three quarters of the year.
It launched another 916 units on Thursday and has plans to offer another 3,500 in the next six months.
'There are also plans to release another three Design, Build and Sell Scheme (DBSS) sites with an estimated combined yield of 1,500 units over this period,' the HDB said.
The new flats will be in addition to those offered under the Balloting Exercises for surplus Sers flats and the bi-monthly/monthly sales exercises for unsold flats.
Rental market Sublet rents for HDB flats were up in the last quarter in line with higher rents for private residential properties.
Marine Parade commanded the highest median subletting rents for both 3- and 4-room flats at $1,250 and $1,700.
HDB approved the subletting of 3,500 flats, bringing the total number of HDB flats approved for subletting to about 16,000 units, up from about 14,600 units in the second quarter.
HDB said it will be leasing out flats vacated under the Selective En bloc Redevelopment Scheme (Sers) to the general public under a special pilot project. It recently concluded a tender for the leasing of vacated Sers flats at Tiong Bahru Road and will assess the response to this pilot project, before deciding whether to expand the scheme in future.
This scheme puts 'the vacated Sers flats to better use in the interim period, pending their redevelopment', it said.
HDB said it 'has a potential supply of about 4,000 to 5,000 units that can be introduced to bolster rental supply in the HDB market over the next 3 years'.
Saturday, October 6, 2007
NEW government figures released yesterday will bring cheer to the average Singaporean homeowner.
NEW government figures released yesterday will bring cheer to the average Singaporean homeowner.
This is because prices for so-called ‘mass market’ properties - comprising mainly suburban condominiums and HDB homes - have posted their best quarterly growth in years.
This has brought the prices of both public and private homes to their highest level in a decade.
The flash estimates for the third quarter, which are based on home sales in July and August, show that private home prices rose 8 per cent, while prices of HDB homes jumped 6.5 per cent for the same period.
The numbers show that the effects of Singapore’s property recovery, which have been largely focused on high-end luxury apartments for the last year or so, are finally filtering down to the typical homeowner.
Most significantly, prices of non-landed private homes outside the central region - in areas such as Clementi and Bedok - surged 8.1 per cent, almost on par with the increase of 8.3 per cent for homes in the core, or central, area.
Growth in prices of homes located in prime areas like districts 9, 10, 11, downtown and Sentosa have far outstripped that of suburban homes since 2004, the earliest period for which price changes in different districts are available. But the gap in price increases has now narrowed to just 0.2 percentage points.
Property analysts say the figures show a confident local market generally unshaken by the recent volatility in the stock market - due to the sub-prime mortgage crisis in the US.
Savills Singapore’s director of marketing and business development Ku Swee Yong said future growth is now likely to be fuelled ‘from the bottom up’ by mass market homes.
CBRE Research’s executive director Li Hiaw Ho also marked this quarter as a ‘big step’ for suburban projects, which were launched at $850 to $1,000 psf.
Suburban projects were usually defined as those costing around $600 psf - but projects like The Parc Condominium in West Coast, for example, fully sold all 659 units in August at a median price of $880 psf, said Mr Li.
Meanwhile, HDB home prices are also driving the mass market recovery. The 6.5 per cent jump in prices is the highest since 1999, and comes on the back of a 3 per cent rise in the last quarter.
‘HDB home prices have languished in the doldrums for many years so it’s heartening for homeowners to see them pick up pace now,’ said property firm Propnex’s chief executive Mohamed Ismail.
The bullish figures have prompted some analysts to revise their forecasts. Property experts say private home prices have increased 21.1 per cent so far this year, already surpassing their forecasts of between 20 and 25 per cent.
Knight Frank’s director of research and consultancy Nicholas Mak gave a revised forecast of between 23 and 32 per cent.
As for HDB homes, Mr Mohamed expects the HDB price index to rise 15 per cent for the whole year.
Last year, in comparison, HDB’s price index only rose 2 per cent for the whole year, while for private homes, it was about 10 per cent.
The Government also highlighted that about 43,000 new private homes are expected to be completed from now till 2010, and almost half are still unsold.
Separately, the HDB also said it plans to launch up to 6,000 new homes in the next six months, subject to market demand.
The Urban Redevelopment Authority and HDB’s official third-quarter statistics will be released at the end of this month.
This is because prices for so-called ‘mass market’ properties - comprising mainly suburban condominiums and HDB homes - have posted their best quarterly growth in years.
This has brought the prices of both public and private homes to their highest level in a decade.
The flash estimates for the third quarter, which are based on home sales in July and August, show that private home prices rose 8 per cent, while prices of HDB homes jumped 6.5 per cent for the same period.
The numbers show that the effects of Singapore’s property recovery, which have been largely focused on high-end luxury apartments for the last year or so, are finally filtering down to the typical homeowner.
Most significantly, prices of non-landed private homes outside the central region - in areas such as Clementi and Bedok - surged 8.1 per cent, almost on par with the increase of 8.3 per cent for homes in the core, or central, area.
Growth in prices of homes located in prime areas like districts 9, 10, 11, downtown and Sentosa have far outstripped that of suburban homes since 2004, the earliest period for which price changes in different districts are available. But the gap in price increases has now narrowed to just 0.2 percentage points.
Property analysts say the figures show a confident local market generally unshaken by the recent volatility in the stock market - due to the sub-prime mortgage crisis in the US.
Savills Singapore’s director of marketing and business development Ku Swee Yong said future growth is now likely to be fuelled ‘from the bottom up’ by mass market homes.
CBRE Research’s executive director Li Hiaw Ho also marked this quarter as a ‘big step’ for suburban projects, which were launched at $850 to $1,000 psf.
Suburban projects were usually defined as those costing around $600 psf - but projects like The Parc Condominium in West Coast, for example, fully sold all 659 units in August at a median price of $880 psf, said Mr Li.
Meanwhile, HDB home prices are also driving the mass market recovery. The 6.5 per cent jump in prices is the highest since 1999, and comes on the back of a 3 per cent rise in the last quarter.
‘HDB home prices have languished in the doldrums for many years so it’s heartening for homeowners to see them pick up pace now,’ said property firm Propnex’s chief executive Mohamed Ismail.
The bullish figures have prompted some analysts to revise their forecasts. Property experts say private home prices have increased 21.1 per cent so far this year, already surpassing their forecasts of between 20 and 25 per cent.
Knight Frank’s director of research and consultancy Nicholas Mak gave a revised forecast of between 23 and 32 per cent.
As for HDB homes, Mr Mohamed expects the HDB price index to rise 15 per cent for the whole year.
Last year, in comparison, HDB’s price index only rose 2 per cent for the whole year, while for private homes, it was about 10 per cent.
The Government also highlighted that about 43,000 new private homes are expected to be completed from now till 2010, and almost half are still unsold.
Separately, the HDB also said it plans to launch up to 6,000 new homes in the next six months, subject to market demand.
The Urban Redevelopment Authority and HDB’s official third-quarter statistics will be released at the end of this month.
Saturday, September 29, 2007
HDB resale prices have been recovering slowly but surely since a dip in late 2005 when anti-cashback measures were introduced
HDB resale prices have been recovering slowly but surely since a dip in late 2005 when anti-cashback measures were introduced to stamp out the illegal over-declaration of resale prices.
Sky-high: Prices for resale units hit a record high as a five-room unit in Kim Tian Place changed hands for $720,000 this year, leading to an overnight hike in prices by up to $200,000 above valuation
The recovery was based purely on the market fundamentals of an improving economy and employment market; as well as the actual play of supply and demand.
From Q4 2006's 103.6 points on the HDB Resale Price Index, resale prices for HDB flats jumped 4.2 per cent in the first half of this year to reach 108 points in Q2 2007. Besides demand being fuelled by improving sentiment, the spate of collective sales in the private property market has unleashed a group of cash-rich house hunters, many of whom are opting for high-end resale HDB units. These buyers are willing to pay top dollar for flats that fit their criteria.
In June, wide media coverage of two five-room HDB flats that changed hands in the resale market at record-breaking prices of $675,000 in Jalan Mebina (off Tiong Bahru) and $720,000 in nearby Kim Tian Place spun the HDB resale market into euphoria. It led hopeful sellers all across Singapore to hike asking prices overnight, some by up to $200,000 above valuation.
This led to a mismatch of price expectations between sellers and buyers as these high-priced deals are limited to fairly new, well-renovated, high-floor resale flats in coveted estates such as Tiong Bahru and Queenstown.
The HDB was quick to respond to concern among home buyers about runaway prices and released additional data on median resale prices and median cash-over-valuation in all the housing estates. Median prices give a more accurate picture of the market and minimise the distorting impact of headline-grabbing prices.
With these additional statistics, to be provided by HDB on a quarterly basis from the second quarter, home buyers have better information on which to base their decisions. Sellers are also able to use these statistics to price their flats realistically and competitively.
Going forward, HDB resale prices are expected to continue trending upwards. HDB's Resale Price Index rose by 3 per cent in Q2 2007 over the previous quarter, with price increases across most flat types and towns. Seventy per cent of the resale transactions in Q2 2007 were transacted at an average of $7,000 cash-over-valuation. As at the end of the first half, HDB resale prices have increased by 4.2 per cent. With such positive market sentiment, prices are likely to continue to rise in the subsequent quarters and we may possibly see an overall price increase of 6-9 per cent for the full year.
Resale volume
With improving sentiment, the volume of resale transactions jumped 39 per cent in Q2 2007 to 8,708 units from an all-time market low of 6,258 units recorded in Q1 2007.
HDB's data also indicates a strong preference among buyers for larger flats. Between Q1 2007 and Q2 2007, executive flats saw the largest increase in resale transactions of 67 per cent (343 units); followed by five-room flats at 64 per cent (903 units); four-room flats at 31 per cent (726 units) and three-room flats at 25 per cent (482 units).
The resale mix for H1 2007 showed three-rooms making up 29 per cent (down from 2006's 32 per cent; four-rooms at 37 per cent (about the same level as 2006); five-rooms at 25 per cent (up from 2006's 22 per cent); and executive flats at 9 per cent (up from 2006's 7.5 per cent).
This preference for larger flats is likely to continue for the rest of the year as the demand is fuelled by those upgrading from smaller flats as well as buyers who have been priced out of the booming private residential market. By year-end, we may possibly see three-room flats accounting for 25 per cent of resale transactions, four-rooms at 37 per cent, five-rooms at 28 per cent and executive flats at 10 per cent.
Assuming the current momentum holds, we are likely to see this year's total resale volume surpassing last year's 29,723 units, which was an all-time low. Some 30,000 to 32,000 are estimated to be transacted for the whole year.
Changes in housing policy
At last month's National Day Rally, Prime Minister Lee Hsien Loong announced a slew of housing policy changes. These include:
Revised additional CPF housing grant: The Additional CPF Housing Grant (AHG) Scheme will be enhanced to provide more subsidy to lower-income families to help them buy their first HDB flat. The income ceiling for AHG will be raised from $3,000 to $4,000, while the maximum grant will be raised from $20,000 to $30,000.
The enhanced scheme can be used to subsidise the cost of buying a new or resale flat. It is expected to benefit an additional 1,300 first-timer households annually. In total, some 4,000 households are expected to benefit from this programme every year; and this may boost the demand for three-room flats which has been lessened in view of the current upgrading trend.
New HDB buy-back scheme: This scheme helps unlock the value of flats for elderly Singaporeans aged 62 and above, providing them with an income stream. HDB will buy back the tail-end of the lease on their two- or three-room flats, leaving them with a shorter lease of 30 years on the same flat.
The flat owner will then receive a payout from HDB in two parts - a lump sum upfront and monthly payments for the rest of his or her life which will serve as a form of annuity. This scheme is not expected to have a significant impact on the resale market as it focuses on the elderly.
Two new upgrading programmes: HDB will be introducing two new upgrading programmes, namely, the Home Improvement Programme (HIP) and the Neighbourhood Renewal Programme (NRP).
The HIP aims to address common maintenance problems in ageing flats, such as spalling concrete and ceiling leaks; while the NRP focuses on precinct- and block-level improvements.
These upgrading schemes are designed to improve the internal and external environment of affected flats. While the flats' condition and aesthetics are improved, the possibility of fetching higher prices is basically dependent on supply and demand rather than upgrading per se.
With strong market fundamentals, supported now by added transparency in transaction information, the HDB resale market is expected to continue its uptrend for the rest of the year.
Sky-high: Prices for resale units hit a record high as a five-room unit in Kim Tian Place changed hands for $720,000 this year, leading to an overnight hike in prices by up to $200,000 above valuation
The recovery was based purely on the market fundamentals of an improving economy and employment market; as well as the actual play of supply and demand.
From Q4 2006's 103.6 points on the HDB Resale Price Index, resale prices for HDB flats jumped 4.2 per cent in the first half of this year to reach 108 points in Q2 2007. Besides demand being fuelled by improving sentiment, the spate of collective sales in the private property market has unleashed a group of cash-rich house hunters, many of whom are opting for high-end resale HDB units. These buyers are willing to pay top dollar for flats that fit their criteria.
In June, wide media coverage of two five-room HDB flats that changed hands in the resale market at record-breaking prices of $675,000 in Jalan Mebina (off Tiong Bahru) and $720,000 in nearby Kim Tian Place spun the HDB resale market into euphoria. It led hopeful sellers all across Singapore to hike asking prices overnight, some by up to $200,000 above valuation.
This led to a mismatch of price expectations between sellers and buyers as these high-priced deals are limited to fairly new, well-renovated, high-floor resale flats in coveted estates such as Tiong Bahru and Queenstown.
The HDB was quick to respond to concern among home buyers about runaway prices and released additional data on median resale prices and median cash-over-valuation in all the housing estates. Median prices give a more accurate picture of the market and minimise the distorting impact of headline-grabbing prices.
With these additional statistics, to be provided by HDB on a quarterly basis from the second quarter, home buyers have better information on which to base their decisions. Sellers are also able to use these statistics to price their flats realistically and competitively.
Going forward, HDB resale prices are expected to continue trending upwards. HDB's Resale Price Index rose by 3 per cent in Q2 2007 over the previous quarter, with price increases across most flat types and towns. Seventy per cent of the resale transactions in Q2 2007 were transacted at an average of $7,000 cash-over-valuation. As at the end of the first half, HDB resale prices have increased by 4.2 per cent. With such positive market sentiment, prices are likely to continue to rise in the subsequent quarters and we may possibly see an overall price increase of 6-9 per cent for the full year.
Resale volume
With improving sentiment, the volume of resale transactions jumped 39 per cent in Q2 2007 to 8,708 units from an all-time market low of 6,258 units recorded in Q1 2007.
HDB's data also indicates a strong preference among buyers for larger flats. Between Q1 2007 and Q2 2007, executive flats saw the largest increase in resale transactions of 67 per cent (343 units); followed by five-room flats at 64 per cent (903 units); four-room flats at 31 per cent (726 units) and three-room flats at 25 per cent (482 units).
The resale mix for H1 2007 showed three-rooms making up 29 per cent (down from 2006's 32 per cent; four-rooms at 37 per cent (about the same level as 2006); five-rooms at 25 per cent (up from 2006's 22 per cent); and executive flats at 9 per cent (up from 2006's 7.5 per cent).
This preference for larger flats is likely to continue for the rest of the year as the demand is fuelled by those upgrading from smaller flats as well as buyers who have been priced out of the booming private residential market. By year-end, we may possibly see three-room flats accounting for 25 per cent of resale transactions, four-rooms at 37 per cent, five-rooms at 28 per cent and executive flats at 10 per cent.
Assuming the current momentum holds, we are likely to see this year's total resale volume surpassing last year's 29,723 units, which was an all-time low. Some 30,000 to 32,000 are estimated to be transacted for the whole year.
Changes in housing policy
At last month's National Day Rally, Prime Minister Lee Hsien Loong announced a slew of housing policy changes. These include:
Revised additional CPF housing grant: The Additional CPF Housing Grant (AHG) Scheme will be enhanced to provide more subsidy to lower-income families to help them buy their first HDB flat. The income ceiling for AHG will be raised from $3,000 to $4,000, while the maximum grant will be raised from $20,000 to $30,000.
The enhanced scheme can be used to subsidise the cost of buying a new or resale flat. It is expected to benefit an additional 1,300 first-timer households annually. In total, some 4,000 households are expected to benefit from this programme every year; and this may boost the demand for three-room flats which has been lessened in view of the current upgrading trend.
New HDB buy-back scheme: This scheme helps unlock the value of flats for elderly Singaporeans aged 62 and above, providing them with an income stream. HDB will buy back the tail-end of the lease on their two- or three-room flats, leaving them with a shorter lease of 30 years on the same flat.
The flat owner will then receive a payout from HDB in two parts - a lump sum upfront and monthly payments for the rest of his or her life which will serve as a form of annuity. This scheme is not expected to have a significant impact on the resale market as it focuses on the elderly.
Two new upgrading programmes: HDB will be introducing two new upgrading programmes, namely, the Home Improvement Programme (HIP) and the Neighbourhood Renewal Programme (NRP).
The HIP aims to address common maintenance problems in ageing flats, such as spalling concrete and ceiling leaks; while the NRP focuses on precinct- and block-level improvements.
These upgrading schemes are designed to improve the internal and external environment of affected flats. While the flats' condition and aesthetics are improved, the possibility of fetching higher prices is basically dependent on supply and demand rather than upgrading per se.
With strong market fundamentals, supported now by added transparency in transaction information, the HDB resale market is expected to continue its uptrend for the rest of the year.
Friday, September 28, 2007
25% more HDB flats rented out since March
25% more HDB flats rented out since March
September 24th, 2007 · No Comments
MORE Housing Board (HDB) flatowners are cashing in on the rising rental market by letting out their units following a relaxation of the rules on doing so.
The new rules have spurred 5,700 more people to rent out their flats over the past six months.
The latest figures from the HDB show that a total of 15,773 flats have been given the green light for rental by the middle of this month.
This is a 25 per cent jump on the total figure before the March 3 rule change. About 39 per cent of these additional homeowners would not have qualified had the rules not been eased.
Previously, flatowners could rent out their flats only five years after buying them - or 10 years if they had not paid off HDB home loans.
Now, they can do so after living in their flats for just three years - or five years if they had bought it with a government subsidy or grant. It no longer matters if the home loan has been paid off.
The change almost doubled the pool of eligible flats to 645,000, out of more than 800,000 across the island.
The relaxation was part of a series of measures to make it easier for flatowners to earn income from their units.
Besides easing subletting rules, the HDB also allowed homeowners to take out reverse mortgages on their flats. It is also looking into a novel scheme to buy back the tail-end of flats’ leases from homeowners.
Newly minted landlords included Madam Yee Kin Moi, 58. The retired hawker and her husband rented out their four-year-old flat in Choa Chu Kang just last month for about $1,000 a month, and moved in with their daughter to help take care of their 18-month-old grandson.
The rental income, said Madam Yee, covers their monthly housing instalments and helps pay daily expenses as well.
She told The Straits Times: ‘The good thing about renting the flat out is that we do not need to sell it. We can go back to live in it if our children choose to migrate elsewhere.’
According to the HDB, about 27 per cent of flats rented out after March 3 belonged to owners who were older - aged 55 years and above.
Most of those renting out their flats under the revised rules moved in with their family members. About 22 per cent now live with their children, while another 36 per cent live with their parents, siblings and other relatives.
About two-thirds of flats being rented out are three- and four-room units.
HDB statistics show that three-room flats fetched a median rental of $980 islandwide from April to June, while four-room flats fetched $1,180.
Property agents estimate that rents are up about 10 per cent to 15 per cent since then, but say demand for rental flats remains strong as tenants, deterred by rising private rentals, choose public housing instead.
Median rentals of non-landed private homes islandwide grew by 11 per cent from April to June to $31.87 per sq m per month. This means it would cost about $3,200 a month to rent a 100 sq m, three-bedroom home.
As a result, rental flats being put on the market are being snapped up within a month, said the chief executive of property agency Propnex, Mr Mohamed Ismail.
Most homeowners, though, will not rush to rent out their flats even if rental rates become even more attractive. This is simply because they would have nowhere else to live if they did.
The director of Dennis Wee Properties, Mr Chris Koh, pointed out: ‘Not every elderly couple would want to live with their children.’
Source: The Straits Times
September 24th, 2007 · No Comments
MORE Housing Board (HDB) flatowners are cashing in on the rising rental market by letting out their units following a relaxation of the rules on doing so.
The new rules have spurred 5,700 more people to rent out their flats over the past six months.
The latest figures from the HDB show that a total of 15,773 flats have been given the green light for rental by the middle of this month.
This is a 25 per cent jump on the total figure before the March 3 rule change. About 39 per cent of these additional homeowners would not have qualified had the rules not been eased.
Previously, flatowners could rent out their flats only five years after buying them - or 10 years if they had not paid off HDB home loans.
Now, they can do so after living in their flats for just three years - or five years if they had bought it with a government subsidy or grant. It no longer matters if the home loan has been paid off.
The change almost doubled the pool of eligible flats to 645,000, out of more than 800,000 across the island.
The relaxation was part of a series of measures to make it easier for flatowners to earn income from their units.
Besides easing subletting rules, the HDB also allowed homeowners to take out reverse mortgages on their flats. It is also looking into a novel scheme to buy back the tail-end of flats’ leases from homeowners.
Newly minted landlords included Madam Yee Kin Moi, 58. The retired hawker and her husband rented out their four-year-old flat in Choa Chu Kang just last month for about $1,000 a month, and moved in with their daughter to help take care of their 18-month-old grandson.
The rental income, said Madam Yee, covers their monthly housing instalments and helps pay daily expenses as well.
She told The Straits Times: ‘The good thing about renting the flat out is that we do not need to sell it. We can go back to live in it if our children choose to migrate elsewhere.’
According to the HDB, about 27 per cent of flats rented out after March 3 belonged to owners who were older - aged 55 years and above.
Most of those renting out their flats under the revised rules moved in with their family members. About 22 per cent now live with their children, while another 36 per cent live with their parents, siblings and other relatives.
About two-thirds of flats being rented out are three- and four-room units.
HDB statistics show that three-room flats fetched a median rental of $980 islandwide from April to June, while four-room flats fetched $1,180.
Property agents estimate that rents are up about 10 per cent to 15 per cent since then, but say demand for rental flats remains strong as tenants, deterred by rising private rentals, choose public housing instead.
Median rentals of non-landed private homes islandwide grew by 11 per cent from April to June to $31.87 per sq m per month. This means it would cost about $3,200 a month to rent a 100 sq m, three-bedroom home.
As a result, rental flats being put on the market are being snapped up within a month, said the chief executive of property agency Propnex, Mr Mohamed Ismail.
Most homeowners, though, will not rush to rent out their flats even if rental rates become even more attractive. This is simply because they would have nowhere else to live if they did.
The director of Dennis Wee Properties, Mr Chris Koh, pointed out: ‘Not every elderly couple would want to live with their children.’
Source: The Straits Times
PRICES of mass market residential property are finally seeing a clear uptrend
The outlook for this sector is bright, riding on strong demand fundamentals, says CHIA SIEW CHUIN
PRICES of mass market residential property are finally seeing a clear uptrend, as reflected in the latest Urban Redevelopment Authority’s (URA) statistics. Non-landed residential properties sited outside the central region (OCR) - where most suburban mass market properties are located - enjoyed a price rise of 7.2 per cent in Q2 2007. This trumped the 2 per cent rise in Q1 2007. It was the highest quarterly gain since the market bottomed in Q2 2004, and indicates that confidence in the high-end residential property market has filtered down to the mass market.
Upswing seen across all locations and projects
Based on caveats lodged, the upswing in prices of mass market developments occurred across most suburban locations, although to different degrees. The steepest price rise was seen in District 5. Median prices in this district rose by some 46 per cent from the low point in Q3 2005 to Q2 this year. This was followed closely by District 22, with a 42 per cent price rise. District 21 saw a 41 per cent gain in median prices. District 18 had a slower recovery. As of Q2 2007, median prices of mass market projects in the east picked up by 13 per cent from its trough in Q4 2006. A similar trend was observed in district 27, where the median price of private homes registered an increase of 16 per cent between Q1 2007 (the district’s record low) and Q2 2007.
The upswing is also more pronounced in larger and newer projects, which boast comprehensive facilities, as well as in those close to MRT stations and amenities.
One example is Kovan Melody, located next to the Kovan MRT station in District 19. Median prices there rose by 16 per cent, from $520 per sq ft when it was launched in 2004 to $605 psf in Q2 2007. At the other end of the spectrum, smaller and older developments located further from amenities, saw slower or flat price recovery. For instance, Central View in district 19 recorded a price gain of about 6 per cent between Q4 2006, when median prices were at the lowest for the development and Q2 2007.
Buyers of mass market homes are genuine purchasers
URA figures show that new projects sold by developers and resale deals make up the bulk of transactions in mass market districts located in OCR. Such sales made up more than 95 per cent of all deals since the general market bottomed out in 2004. On the other hand, sub-sales - which refer to secondary market transactions in uncompleted projects and often seen as a proxy for speculative activity - remained low at under 5 per cent.
Although sub-sales as a percentage of total transactions in OCR have been rising since Q3 2006, they are still relatively low at 3.1 per cent as of Q2 2007. This compares to 19.4 per cent for high-end properties in the core central region (CCR) and 10.4 per cent for private homes located in the rest of central region (RCR).
When taken as a percentage of total new sales within the respective regions, the proportion of sub-sales was just 7 per cent for the OCR, compared to 53 per cent for the CCR and 27 per cent for the RCR.
Supply crunch driving the mass market recovery
The rapid pace at which residential developments in the central area have been collectively sold in the last two years created an acute supply crunch, stemming from the massive withdrawal of homes from the existing stock. This became one of the main drivers of the recovery in the mass market, which enjoyed a filtering down of demand, both in the sale and rental markets. Evidence of this can be seen in the much higher proportion of mass market property buyers with private residential addresses - from a low of 12 per cent in Q2 2002 to 61 per cent in Q2 2007.
However, the supply crunch is expected to be short term. The estimated 6,200 homes already withdrawn or about to be withdrawn from the stock in the central area - due to collective sales between 2005 and June 2007 - will be replaced by some 13,000 spanking new, modern and more luxurious homes in the next two years.
Moreover, the recent injection of private residential sites into the government land sale programme for H2 2007 could add another 5,580 new mass market homes.
Upswing in the mass market sustainable
Unlike the mid-1990s upturn that was propelled largely by speculative buying and weak demand fundamentals, the current upswing is supported by strong demand fundamentals on the back of bright economic prospects.
Historically, Singapore’s property cycles, measured from trough to trough, last between 10 and 13 years. Taking that as a guide, the current upswing in the mass market, which commenced in mid-2004 and picked up momentum this year, is likely to continue and peak in 2010. This coincides with the expected completion for many of the infrastructure programmes (such as the integrated resorts and Marina Bay Financial Centre) which support Singapore’s economic restructuring.
However, downside risks remain and they stem from the recent turbulence in world financial markets and uncertainty over the impact of the US sub-prime mortgage woes. Nevertheless, while the US and Europe may suffer a hit over the next few months, the economic fundamentals of Singapore and Asia remain strong.
Mass market prices could hit the 1990s peak
Launch prices of new mass market residential projects during the 1990s property boom ranged between $550 psf and $1,050 psf. One of these projects was Bishan 8, which was launched at a median $1,050 psf in 1997. The highest unit price achieved for a mass market project during the mid-1990s peak was a unit in Heritage View, which sold for $1,127 psf in September 1997.
In comparison, in the first eight months of this year, new mass market housing was launched at prices ranging from $500 psf to $880 psf, just some 9 to 16 per cent lower than the levels achieved at the last peak. The highest price achieved for mass market property in the current market was for a unit in The Parc, which sold for $1,040 psf in August this year.
Meanwhile, in the secondary market, the median resale price of mass market properties as of Q2 2007 was $516 psf, just some 14 per cent below the peak in Q3 1996. However, for those projects that were launched at the height of the boom in the mid-1990s, their median resale prices as of Q2 2007 are still some 11 to 45 per cent off from their highs.
With the upswing expected to be sustained until 2010 at least, and assuming a conservative price growth of 5 per cent per quarter, prices of new mass market projects are likely to attain the 1990s peak level by H1 2008, barring unforeseen circumstances. For mass market properties in the secondary market, resale prices should match the last high by the end of 2008.
The writer is associate director of research and consultancy, Colliers International
Source : Business Times - 27 Sep 2007
PRICES of mass market residential property are finally seeing a clear uptrend, as reflected in the latest Urban Redevelopment Authority’s (URA) statistics. Non-landed residential properties sited outside the central region (OCR) - where most suburban mass market properties are located - enjoyed a price rise of 7.2 per cent in Q2 2007. This trumped the 2 per cent rise in Q1 2007. It was the highest quarterly gain since the market bottomed in Q2 2004, and indicates that confidence in the high-end residential property market has filtered down to the mass market.
Upswing seen across all locations and projects
Based on caveats lodged, the upswing in prices of mass market developments occurred across most suburban locations, although to different degrees. The steepest price rise was seen in District 5. Median prices in this district rose by some 46 per cent from the low point in Q3 2005 to Q2 this year. This was followed closely by District 22, with a 42 per cent price rise. District 21 saw a 41 per cent gain in median prices. District 18 had a slower recovery. As of Q2 2007, median prices of mass market projects in the east picked up by 13 per cent from its trough in Q4 2006. A similar trend was observed in district 27, where the median price of private homes registered an increase of 16 per cent between Q1 2007 (the district’s record low) and Q2 2007.
The upswing is also more pronounced in larger and newer projects, which boast comprehensive facilities, as well as in those close to MRT stations and amenities.
One example is Kovan Melody, located next to the Kovan MRT station in District 19. Median prices there rose by 16 per cent, from $520 per sq ft when it was launched in 2004 to $605 psf in Q2 2007. At the other end of the spectrum, smaller and older developments located further from amenities, saw slower or flat price recovery. For instance, Central View in district 19 recorded a price gain of about 6 per cent between Q4 2006, when median prices were at the lowest for the development and Q2 2007.
Buyers of mass market homes are genuine purchasers
URA figures show that new projects sold by developers and resale deals make up the bulk of transactions in mass market districts located in OCR. Such sales made up more than 95 per cent of all deals since the general market bottomed out in 2004. On the other hand, sub-sales - which refer to secondary market transactions in uncompleted projects and often seen as a proxy for speculative activity - remained low at under 5 per cent.
Although sub-sales as a percentage of total transactions in OCR have been rising since Q3 2006, they are still relatively low at 3.1 per cent as of Q2 2007. This compares to 19.4 per cent for high-end properties in the core central region (CCR) and 10.4 per cent for private homes located in the rest of central region (RCR).
When taken as a percentage of total new sales within the respective regions, the proportion of sub-sales was just 7 per cent for the OCR, compared to 53 per cent for the CCR and 27 per cent for the RCR.
Supply crunch driving the mass market recovery
The rapid pace at which residential developments in the central area have been collectively sold in the last two years created an acute supply crunch, stemming from the massive withdrawal of homes from the existing stock. This became one of the main drivers of the recovery in the mass market, which enjoyed a filtering down of demand, both in the sale and rental markets. Evidence of this can be seen in the much higher proportion of mass market property buyers with private residential addresses - from a low of 12 per cent in Q2 2002 to 61 per cent in Q2 2007.
However, the supply crunch is expected to be short term. The estimated 6,200 homes already withdrawn or about to be withdrawn from the stock in the central area - due to collective sales between 2005 and June 2007 - will be replaced by some 13,000 spanking new, modern and more luxurious homes in the next two years.
Moreover, the recent injection of private residential sites into the government land sale programme for H2 2007 could add another 5,580 new mass market homes.
Upswing in the mass market sustainable
Unlike the mid-1990s upturn that was propelled largely by speculative buying and weak demand fundamentals, the current upswing is supported by strong demand fundamentals on the back of bright economic prospects.
Historically, Singapore’s property cycles, measured from trough to trough, last between 10 and 13 years. Taking that as a guide, the current upswing in the mass market, which commenced in mid-2004 and picked up momentum this year, is likely to continue and peak in 2010. This coincides with the expected completion for many of the infrastructure programmes (such as the integrated resorts and Marina Bay Financial Centre) which support Singapore’s economic restructuring.
However, downside risks remain and they stem from the recent turbulence in world financial markets and uncertainty over the impact of the US sub-prime mortgage woes. Nevertheless, while the US and Europe may suffer a hit over the next few months, the economic fundamentals of Singapore and Asia remain strong.
Mass market prices could hit the 1990s peak
Launch prices of new mass market residential projects during the 1990s property boom ranged between $550 psf and $1,050 psf. One of these projects was Bishan 8, which was launched at a median $1,050 psf in 1997. The highest unit price achieved for a mass market project during the mid-1990s peak was a unit in Heritage View, which sold for $1,127 psf in September 1997.
In comparison, in the first eight months of this year, new mass market housing was launched at prices ranging from $500 psf to $880 psf, just some 9 to 16 per cent lower than the levels achieved at the last peak. The highest price achieved for mass market property in the current market was for a unit in The Parc, which sold for $1,040 psf in August this year.
Meanwhile, in the secondary market, the median resale price of mass market properties as of Q2 2007 was $516 psf, just some 14 per cent below the peak in Q3 1996. However, for those projects that were launched at the height of the boom in the mid-1990s, their median resale prices as of Q2 2007 are still some 11 to 45 per cent off from their highs.
With the upswing expected to be sustained until 2010 at least, and assuming a conservative price growth of 5 per cent per quarter, prices of new mass market projects are likely to attain the 1990s peak level by H1 2008, barring unforeseen circumstances. For mass market properties in the secondary market, resale prices should match the last high by the end of 2008.
The writer is associate director of research and consultancy, Colliers International
Source : Business Times - 27 Sep 2007
Wednesday, September 19, 2007
VETERAN lawyer was sentenced to three months in jail yesterday for his role in a cashback property scam.
A VETERAN lawyer was sentenced to three months in jail yesterday for his role in a cashback property scam.
Bachoo Mohan Singh, a lawyer for more than 30 years, is appealing against the conviction and sentence and is out on bail of $125,000.
Singh, 59, had been convicted in a district court on June 30 for helping a Housing Board flat owner make a false declaration three years ago.
Although the agreed selling price for Mr Koh Sia Kang’s five-room Redhill flat was $390,000, it was inflated by $100,000 so as to secure a higher bank loan for the buyer.
In such scams, the cash difference between the actual and declared price is either kept by the buyer or split with the seller.
Singh was found out as a result of the sale falling through. He had acted for Mr Koh, 53, a taxi driver, who sued the buyers, claiming he was cheated of money in the transaction.
Mr Koh also sued property agent Kereen Teo Pei Pei, 28, who was fined $8,000 last year for trying to cheat DBS Bank by inflating the price.
Her manager was similarly fined.
Mr Koh has not been charged with any offence.
Singh did not display any emotion when sentence was passed. About 10 family members and friends were in court.
When convicting Singh in June, District Judge Bala Reddy had said that when Mr Koh proceeded to make the false $490,000 claim against the couple, Singh continued to act for him in the suit and thus abused the judicial process.
Source : Straits Times - 19 Sep 2007
Bachoo Mohan Singh, a lawyer for more than 30 years, is appealing against the conviction and sentence and is out on bail of $125,000.
Singh, 59, had been convicted in a district court on June 30 for helping a Housing Board flat owner make a false declaration three years ago.
Although the agreed selling price for Mr Koh Sia Kang’s five-room Redhill flat was $390,000, it was inflated by $100,000 so as to secure a higher bank loan for the buyer.
In such scams, the cash difference between the actual and declared price is either kept by the buyer or split with the seller.
Singh was found out as a result of the sale falling through. He had acted for Mr Koh, 53, a taxi driver, who sued the buyers, claiming he was cheated of money in the transaction.
Mr Koh also sued property agent Kereen Teo Pei Pei, 28, who was fined $8,000 last year for trying to cheat DBS Bank by inflating the price.
Her manager was similarly fined.
Mr Koh has not been charged with any offence.
Singh did not display any emotion when sentence was passed. About 10 family members and friends were in court.
When convicting Singh in June, District Judge Bala Reddy had said that when Mr Koh proceeded to make the false $490,000 claim against the couple, Singh continued to act for him in the suit and thus abused the judicial process.
Source : Straits Times - 19 Sep 2007
Monday, September 17, 2007
STEEL, aluminium and even glass are to be the new concrete for many of the Housing and Development Board’s latest projects.
STEEL, aluminium and even glass are to be the new concrete for many of the Housing and Development Board’s latest projects.
Materials and techniques which might not have been cost-effective in the past have become increasingly viable following the rise in the price of concrete caused by January’s ban on exports of sand from Indonesia.
The HDB says that initiatives it has already taken, such as using steel instead of concrete to construct lift shafts, have already achieved positive results.
The HDB told BT that using steel in a conventional 12-storey block has reduced the amount of concrete needed for lift shafts by 90 per cent. ‘This leads to an overall cost savings of about 20 per cent and a shortening of construction time by 20 per cent,’ a board spokesman said.
A conventional 12-storey concrete lift shaft can require up to 90 cubic metres of concrete.
This new method of construction was piloted in projects in Yishun, Jurong East and Marsiling and the HDB says that since April, use of the technique has been extended. Another upside of the new method is that an additional 250 blocks which previously exceeded the budget for the Lift Upgrading Programme now become eligible.
Following the sand ban, the HDB - probably Singapore’s biggest developer - said that it would try to cut the use of sand by as much as 30 per cent. By volume, sand is the main ingredient of concrete.
‘While engineers work towards economising on materials and designs, architects will continue to ensure that the outcome retains its desired aesthetics and functionality,’ said the HDB.
Building layouts and structures are being fine-tuned to optimise concrete usage. But some of the new architectureled initiatives include the simple tweaking of previous HDB design guidelines.
One new idea involves providing much larger glass windows. The HDB has been providing bay windows in flats since 2004. ‘Taking this a step further to improve economy and reduce sand use, we now provide three-quarter and full-height glass windows for bedrooms and living rooms respectively,’ the board said.
Other simple solutions include changing the design of concrete parapets along corridors. Since 2000, most parapets have been built using perforated aluminium panels. HDB says that all HDB buildings tendered from June onwards will have parapets designed with slits or perforations to reduce the concrete use - or simply have metal parapets.
Other solutions involve replacing concrete designs with metal ones. For new shelters and linkways, HDB plans to use steel columns instead of concrete.
Modular steel ramps were tried out at Woodlands Street 83 and will be introduced to more HDB estates in line with its Barrier Free Access initiative.
The HDB said: ‘As the industry exploits new materials, methods and technology in our move towards sustainable construction, we believe home buyers will also grow more receptive to the use of these new materials and designs.’
Source: Business Times 17 Sept 07
Materials and techniques which might not have been cost-effective in the past have become increasingly viable following the rise in the price of concrete caused by January’s ban on exports of sand from Indonesia.
The HDB says that initiatives it has already taken, such as using steel instead of concrete to construct lift shafts, have already achieved positive results.
The HDB told BT that using steel in a conventional 12-storey block has reduced the amount of concrete needed for lift shafts by 90 per cent. ‘This leads to an overall cost savings of about 20 per cent and a shortening of construction time by 20 per cent,’ a board spokesman said.
A conventional 12-storey concrete lift shaft can require up to 90 cubic metres of concrete.
This new method of construction was piloted in projects in Yishun, Jurong East and Marsiling and the HDB says that since April, use of the technique has been extended. Another upside of the new method is that an additional 250 blocks which previously exceeded the budget for the Lift Upgrading Programme now become eligible.
Following the sand ban, the HDB - probably Singapore’s biggest developer - said that it would try to cut the use of sand by as much as 30 per cent. By volume, sand is the main ingredient of concrete.
‘While engineers work towards economising on materials and designs, architects will continue to ensure that the outcome retains its desired aesthetics and functionality,’ said the HDB.
Building layouts and structures are being fine-tuned to optimise concrete usage. But some of the new architectureled initiatives include the simple tweaking of previous HDB design guidelines.
One new idea involves providing much larger glass windows. The HDB has been providing bay windows in flats since 2004. ‘Taking this a step further to improve economy and reduce sand use, we now provide three-quarter and full-height glass windows for bedrooms and living rooms respectively,’ the board said.
Other simple solutions include changing the design of concrete parapets along corridors. Since 2000, most parapets have been built using perforated aluminium panels. HDB says that all HDB buildings tendered from June onwards will have parapets designed with slits or perforations to reduce the concrete use - or simply have metal parapets.
Other solutions involve replacing concrete designs with metal ones. For new shelters and linkways, HDB plans to use steel columns instead of concrete.
Modular steel ramps were tried out at Woodlands Street 83 and will be introduced to more HDB estates in line with its Barrier Free Access initiative.
The HDB said: ‘As the industry exploits new materials, methods and technology in our move towards sustainable construction, we believe home buyers will also grow more receptive to the use of these new materials and designs.’
Source: Business Times 17 Sept 07
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