Lease Buyback Scheme To Be Extended To All HDB Flats

Senior citizens that are residents of huge Housing and Development Board (HDB) apartments can expect monetizing their flat through the sale of some of their remaining lease to the government.

It means that the Lease Buyback Scheme (LBS) is going to be available for every government residential apartment, which includes five-room and larger apartments. This will allow many citizens to gain from the change, which was included in the announcement that National Development Minister Lawrence Wong in a blog article on the 20th of August.

In addition, he shared that the Lease Buyback Scheme is a great implementation. However, it will only apply to the residents that own a four-room or compact government residential flats. The initial thought flow would be for those who owns larger flats to appropriate size.

ERA Realty key executive officer Eugene Lim stated that the government acknowledged and considered the comments from the industry sector and the public to every kind of flat.

He added on that public housing is for the public, and the selections made for all to monetise one’s apartment should and fittingly made accessible for everyone.

Lim perceives that the modified scheme will enable owners of larger apartments who are tight on hand, to contribute to the funds that are needed for pressing demands without having to sell their flats.

Aligning to the perspective of Prime Minister Lee Hsien Loong National Day Rally announcement regarding the upgrade of the system, and renewing former government residential homes, Wong disclosed that his department will be implementing various moves in the upcoming years such that it aids seniors unlock the monetary worth of their residential government flats for retirement.

He mentioned that they are discovering and working out different approaches to increase the liquidity of the resale market for former apartments.

“Presently, CPF is meant to be utiltised for citizens to buy former HDB flats but bounded by some limitations. These laws and regulations are implemented so that citizens can buy a house that will serve them for a lifetime, without their retirement reserves decreasing.”

His department is cooperating with Central Provident Fund Board to analyze, evaluate and reform the guidelines to give buyers of shorter-lease apartments more flaccidity without compromising on their retirement savings.

On top of this, Lim added on that this is an approach that is aimed to solve the increasing issue among the HDB flat residents about their exhausting leases and the struggle of selling these apartments because of the restrictions placed by CPF on potential buyers for the utilisation of CPF funds.

 

Associated with Home Improvement Programme 1, Home Improvement Programme II and Voluntary Early Redevelopment Scheme, that are publicized by Prime Minister Lee, it is potentially going to enable an optimistic prompt to the unresponsive HDB resale market which was not long ago, that was not progressing because of unaddressed issues.

 

 

 

 

 

Canberra Link EC

In response to the executive condominium (EC) area in Canberra Link, it has been offered from nine bidders, and the emerging bidders of $271 million is Hoi Hup Realty and Sunway Developments.

It was launched for purchase on 28 June, where it consists of a 99-year lease with a plot of 18,040,6 square metres and a total floor site of 45,101.50 square metres.

JLL Singapore head of research and consultancy Tay Huey Ying mentioned that even though it has been attracting crowd, comparing it to the response for the last executive condominium at Sumang Walk, it was more overwhelming with 17 bids.

Indeed, the Canberra link has $558 per square feet per plot ratio for its top bid, which is 4.3% lower than that of Sumang Walk site that is $583 per square feet per plot ratio.

Tay further added on that there could be a possibility of the developers taking the supplementary five percent non-remittable ABSD that is necessary to be paid for into consideration. The payment is due after 5 July 2018 in their tender submission.

The previous executive condominium at the Sembawang region that was for sale through the public tender was in October 2014. There were only 2 offers submitted and the site was able to receive an average price of $353 per square feet per plot ratio. This was known through Knight Frank Singapore senior director and head of research Lee Nai Jia.

“The Executive Condominium market will go on with growing its interest,” mentioned by Desmond Sim, CBRE head of research for Singapore and Southeast Asia. He elaborates that “This is as this segment for the ‘sandwiched class’ remains limited in stock, with less than 20 units unsold in the pipeline as of Q2 2018.”

It is expected that the breakeven price for the new executive condominium at Canberra Link that will be ranging approximately between $950 per square feet and $1,000 per square feet.

Tay also mentioned lastly that this will result in it being priced higher than the previous project at Rivercove Residences, which is situated at Anchorvale Lane in this year April, and was eventually sold at a price of $976 per square feet.

decision to defer the establishment of the Kuala Lumpur-Singapore High-Speed Rail (HSR)

Even though most of the public will be disheartened, Singapore and Malaysia has discussed and made the decision to defer the establishment of the Kuala Lumpur-Singapore High-Speed Rail (HSR). This brings a clearer direction for this campaign, which was mentioned by Singapore Transport Minister Khaw Boon Wan on the Facebook site.

These 2 nations decided to defer the launch of the campaign to the end of May in 2020, where there will be rail services from Singapore to Kuala Lumpur in the 1st of January in 2031, which was previously announced as 31st of December in 2026.

The changed agreement was signed by Malaysia’s Economic Affairs Minister Azmin Ali and Mr Khaw at the Prime Minister’s Office in Putrajaya.

In regards to the delay in the project, Malaysia has to reimburse a total sum of $15 million to cover for the costs. This sum will be paid to Singapore.

The Singapore Deupty Prime Minister Teo Chee Hean who was present at the signing of the changed agreement, mentioned on the Facebook site that, “Minister Khaw Boon Wan and Minister Azmin Ali put in their all to achieve an end-result that will benefit the two countries. This ensures great collaboration between the 2 countries in many years to come.”

It is ideal that the journey from Singapore to Kuala Lumpur through this rail service is shortened from 5 hours, to 1 hour and 30 minutes. The targeted 350km-long High-Speed Rail line is among the campaigns that was proposed by the former Malaysian government to be evaluated following the Pakatan Harapan in May, which was a significant milestone.

Soon after the election results were released that they have won, the Malaysian Prime Minister Mahathir Mohamad publicized proposals to call off the HSR proposal because it will not benefit Malaysia and will incur a large amount of capital.

Fast forward to July, he then stated that the Malaysian government will discuss and work out for a defer of this HSR campaign to minimize any costs.

Kuala Lumpur-Singapore High Speed Rail (HSR)

Professionals in the market sector did not consider that the postpone of the Kuala Lumpur-Singapore High Speed Rail (HSR) campaign will cause a great impact on the property prices around the Jurong district.

PropNex executive chairman and CEO Ismail Gafoor rationalized that the HSR campaign solely makes up a component of the design and plan of Jurong.

The plan for Jurong Lake District was announced in the year of 2008 where it was initiated by the Urban Redevelopment Authority to expand in the job opportunities apart from the usual Central Business District in Singapore.

While this is ongoing, there were proposals that were publicized to firm up the HSR terminal in Jurong East 3 years ago.

Besides, amenities catered for the public such as Westgate and Jem have been established in the district way ahead.

Ismail Gafoor went onto elaborate that the prices in Jurong were increasing over the years as more shopping centres and hospitals were established.

ZACD Group executive director Nicholas Mak commented that there are several working places that are established as it is either known as the business hub or it is close to the manufacturing spaces. The shopping centres are also meant to cater the public.

On foresight for the following 5 years, as this district revamps and improves, Ismail hopes that the property prices in this district will remain as it is due to the fact that this campaign would be likely to be deferred for roughly 2 years. This means that there will not be any adjustments in the prices.

With this being said, there will also be an issue if this project is postponed to ten years later.

Increase in luxury home prices

Heading the increase in luxury home prices, Singapore as well as Tokyo have been going against the grain of the dropping housing prices worldwide. Instead, these 2 countries have increased approximately 11.5% in the first two quarters of the year, according to the Singapore Business Review.

Quoted by Knight Frank international residential research head Kate Everett-Allen, this is the place where higher prices are led by the increase in foreign demand and rising land bids by developers.

On the other hand, there are solutions to slow down the increase in property prices in Singapore.

 

Investors may not be a great fan of the property market laws as in such situations, it will add to the net earnings in the case of purchase or disposal taxes.

As mentioned, Tokyo is facing a similar situation as Singapore. Its property housing prices went up by a total of 9.4%. Knight Frank accounted for the increase, alongside with the price ratio of Tokyo with Singapore and Hong Kong, and in the near future for 2020 Olympics.

Being in the neutral range, there are countries such as Beijing and Shanghai where their luxury home prices went up by 7.3% and 3.3% individually.

Kate then stated that China’s choice of pulling back the housing subsidy campaign is expected to affect the sales sector in the other-tier cities. However, it is likely that the luxury price rise will still remain in first-class cities.

Knight Frank observed that the mean price rise for twenty cities globally decreased from 4.2% to 6% in the past.

Kate further commented about how there are a number of factors that will result in the overall results of the Index in the future. These factors are such as the increase in the size of the market, tighter implementations and a moderate and steady increase in China’s first-class cities as well as a moderate price increase.

East Court building open for en bloc sale

Established approximately 30 years ago, in 1986, the East Court building which is nearby the Eunos MRT station and many schools, was being mentioned in an announcement that it will be open for en bloc sale. It has a price of S$19 million.

Taking the development charges into consideration, it will then be translated into $1,028 per square feet per plot ratio.

This building has a total of 13,351 square feet and it is under the residential sector, and has a total plot ratio of 1.4. As mentioned, it is close to the Eunos MRT station and in the future where the Thomson – East Coast Line is launched and ready, it will be convenient for residents as there will be the Marine Parade MRT station. There are several prestigious schools that are within the vicinity such as Tanjong Katong Secondary School, Tanjong Katong Primary School, Tao Nan School.

The sales agent mentioned that as the development had secured 100 percent consensus from its owners, it is not required to have a consent from the Strata Titles Board and the buyer who bought it can begin the development immediately once paid.

It was mentioned that the developer has an option and freedom of decision to make use of the allowable 10% balcony space such that the total plot ratio is 1.54 rather than 1.4.

 

The bidding process for East Court will be closed on the 26th of October.

Qingjian Realty launched the private development in Singapore, JadeScape.

Qingjian Realty launched the private development in Singapore, JadeScape.

JadeScape is situated at Shunfu Road, which is at the previous site of Shunfu Ville. JadeScape consists of 1,206 residential apartments, where sixty-three of them are catered to serve the active ageing residents. These apartments are expected to have technology installed such that the amenities will serve the aged. For instance, the installing of the flooring is intentional and deliberate such that the residents will not fall, and there are pull-down hydraulic racks and support bars.

JadeScape has an area of 36,985.70 square metres, where there are 236 1-bedroom units, 403 2-bedders, 265 3-bedders, 261 4-bedders, 39 5-bedders and 2 penthouses.

According to The Business Times, it is stated that the prices for 1-bedroom units is likely to begin from $830,000; $988,000 for 2-bedders and $1.38 million for 3-bedders. For the rest of the units, the prices will be stated soon.

In JadeScape, there are certain places where there are electronic devices that will be able to be under monitor through the Smart Estate Management system.

There will be a notification when there is smoke in the individual apartments, making it a great environment to live in. There is a feature where there is the use of facial recognition at the lift lobbies.

In the meantime, the ageing residents are also able to go for medical appointments that are catered for them so that they can live a healthy lifestyle.

JadeScape will be made convenient for residents as in the near future, there will be the Marymount MRT station which will be open. The Marymount MRT station will connect residents to the Circle line, North-South line, Thomson – East Coast Line, and Cross Island line. For residents who prefer to drive, there will be the Central Expressway, Pan-Island Expressway and the future North-South Corridor.

The show preview is available to all starting from 8 September, where it is going to be a hit in the next few years as it is the pioneer development with such house features.

JadeScape is likely to have its Temporary Occupation Permit on 9th of January in 2023.

Response To VERS To Depend On Govt’s Offered Price For HDB Flats

Government has implemented the voluntary early redevelopment scheme (VERS) for residents to undergo via a voting system, for their households before their leases run out. The property experts mentioned how the response of HDB homeowners to this newly implemented scheme that it will depend on its particulars.

According to the ZACD Group executive director Nicholas Mak, it also depends on how it will be implemented and how much flat owners will be reimbursed.

Singapore University of Social Sciences economics professor Walter Theseira state his view that the offered price will be the key consideration. Nonetheless, this scheme has the capability of funding itself if there is a scenario of the prices offered to HDB homeowners are “not unreasonably high”.

Other factors that needs to be taken into consideration and will need to be worked out is the government’s requirement for selecting an HDB precinct to undergo VERS and the pacing of redevelopments, as well as the authorities’ rules and guidelines.

On the 19th of August 2018, Prime Minister Lee Hsien Loong publicized many new plans for HDB flats. Among all these initiatives, is VERS that will empower HDB homeowners to have the freedom of voting if they intend to sell their HDB flats to the government when the building reaches its 70th year of development. It is foreseen that the offered price is less than what is offered for the mandatory Selective En bloc Redevelopment Scheme (SERS).

Even though CIMB economist Song Seng Wun and MP Alex Yam deduced that the predominant rules on en bloc sales of private properties could be used to steer the direction for the scheme, it was served as a warning that HDB homeowners should not assume to profit from VERS as it could be like the scenario of the collective sales.

According to the Chairman of the Government Parliamentary Committee for National Development, it is likely to expect that there are more requirements that will be closely linked with VERS. Besides, they did not intend to have cooling measures so that VERS is able to take control. If there were cooling measures, the private en bloc market will be moderated.

Real Estate Update: Eunosville HDUC enbloc to be redevelop to Parc Esta by MCL

He emphasized that there is ample time for the residents to voice out their feedback and for the government to work out on the details of its particulars. The public can anticipate the official implementation of the scheme in two more decades.

On the other hand, there are some alternative perspectives such as International Property Advisor chief executive Ku Swee Yong dread that VERS could possibly bring up the cost of HDB resale flats, which means it will drive residents to set at higher prices even for units whose leases are nearing its end.

New cooling measures to impact banks’ mortgage business, says DBS

In the long term, the Singapore’s mortgage market is expected to soften because of the new cooling measures in the private residential market, according to the city-state’s largest bank known as the DBS Group Holdings. Some option states that developer may reduce price, however with the long term in view, the cooling measure is meant to sustain a healthy growth of the real estate to prevent the property bubble. For condo launch near to MRT, we expect the price to stay, such as the Parc Esta price will consider to be attractive.

However, the large number of homes purchased a few hours before the curbs took effect will have a temporary stimulus to their property lending business including that of DBS.

To deal with the new curbs, developers are expected to slash their unit prices to attract home buyers and mitigating the impact of the new cooling measures on banks’ mortgage business.

According to TODAY online reported that 1,000 units were snapped up at Park Colonial in Woodleigh, Stirling Residences in Queenstown and Riverfront Residences at Hougang in less than five hours before midnight on Thursday night (5 July).

DBS Singapore country head Sim S Lim told Bloomberg on Thursday (19 July) that “Most of the people that purchased 1,000 units will be for mortgage financing,”

He also anticipates “a little ramp-up in mortgage financing requirements” over the next few months because of the purchasing rush.”

Notably, buyers of HDB flats are not affected by the new curbs. But the first-time buyers of private homes are exempted from the extra buyer’s stamp duty (ABSD). Also, their loan to value (LTV) ratios has been reduced by 5% points due to the new curbs.

On 31 March 2018, DBS had $73.5 billion housing loans in its books, this accounts for 31% of the market share and up to 14% from the same period in 2017.

Pine Tree condominium goes en bloc with $148mil tag

Pine Tree Condominium situated close to the peak of Balmoral Park has joined the en bloc fray with a reserve price of $148 million, reported SLP Scotia.

The 50 unit development is located on a 3,842.50 sqm (approximately 41,276.14 sq ft), which is zoned residential under the 2014 Masterplan with a ratio of 1.6 per plot.

According to the URA record, the freehold property has a recent development baseline of about 6,978.42 sqm (75, 115, 71 sq ft). This shows that no development charge is payable for the site.

In regards to the reserve price, every owner will receive about $2.57 million to $4.09 million from the successful sale of the property.

SLP Scotia claimed that the site could be developed into a 12 storey project which contains 75 apartments with an average size of 70 sqm.

PROPERTY NEWS UPDATE: Parc Esta Condo showroom to be opened end 2018 / early 2019

Apart from the natural elevation benefit, the freehold condo is close to Ardmore Park and many notable schools like Singapore Chinese Girls School and Anglo-Chinese School (Barker Road).

The location is connected by major highways and roads such as the Central Expressway, Stevens Road, Pan-island Expressway and Scotts Road. Also, it is close to Steven MRT Interchange Station.