Parliament discusses buyback plan
Members of Parliament (MPs) raised additional questions
on the enhancement to the Lease Buyback Scheme (LBS) during the Parliament session
on 8 September. Some MPs requested information on how the Government derived
the valuation of the eligible flats, while others cited various scenarios for
the Government to clarify, for example, should a flat on the LBS be put up for
en bloc. Hougang Member of Parliament Png Eng Huat also proposed easing LBS'
sales and subletting restrictions and minimum length of occupation. In response
to Mr Png, National Development Minister Khaw Boon Wan replied that rules will
remained unchanged as the LBS is primarily for individuals who wish to continue
staying in their existing homes.
Mr Khaw clarified other concerns by explaining that home
owners under the scheme would get a bigger payout when the Housing and
Development Board (HDB) buys the lease back and reiterated that the computation
of LBS earnings is made by deducting the remaining lease's value and any
unresolved loan amount from the flat's total market value with its outstanding
lease. As for LBS flats that go under the HDB's Selective En Bloc Redevelopment
Scheme, owners would have the option to accept monetary compensation calculated
on the remaining years of the lease, or to purchase a brand new flat with the
same number of remaining years of the lease for their LBS flat, or a new
99-year flat that is subsidised. Mr Khaw also confirmed that individuals are
allowed to take any outstanding proceeds of up to S$100,000 in a lump sum if
their CPF Retirement Accounts satisfy the Minimum Sum requirement. Development plans for Bidadari, Tampines North and
Punggol Northshore revealed New launches from
September and confidence in ECs On the Executive condominium (EC) front, two ECs at
Woodlands Avenue 5 and Anchorvale Crescent in Punggol are likely to launch at
the end of the month, while three in Punggol and Jurong West are likely to
launch in November. According to a Today report, observers noted that the ECs
are "likely to be popular with those who plan to buy private homes", but
indicated the importance of pricing the projects competitively, due to a
backlog of 700 unsold EC units from previously launched projects. Developers
continued to display confidence in Executive Condominiums (EC), as eight bids
were received for the EC site at Choa Chu Kang Drive, with Sim Lian Land
putting up the highest bid of $207.4 million. Overall, the amount of bids and
close margins represent good prospects for the EC market, with subsequent bids
for the Choa Chu Kang EC considered relatively high. More property market mixed signals The rising and falling of prices do not indicate market
improvement according to Mr Alan Cheong, Senior Director of Research and Consultancy
at Savills Singapore, when interviewed by TODAY. His sentiments were shared by
Mr Eugene Lim, Key Executive Officer at ERA, who indicated low buyer sentiment,
as the price increase was not accompanied by a rise in demand. Various property
curbs such as the Mortgage Servicing Ratio (MSR), Total Debt Servicing Ratio (TDSR)
and Additional Buyer's Stamp Duty (ABSD) were cited as reasons for continued
low demand. Bank of America Merrill Lynch's (BAML) reported that long
term economic restructuring and curbs in property and loans will likely result
in Singapore home prices falling by 20 per cent from now to 2016. Overseas developers
setting foot in Singapore Mr Sean Tan, General Manager of iProperty.com Singapore commented
to Today that "The US is so far away;
investors may not be familiar with the market so they may buy into areas that
are not so good ... but cities such as San Francisco and Boston are not bad as
their economies are quite promising."
Green and sustainable living is the latest trend as HDB
unveiled plans for public housing projects in Bidadari, Tampines North and Punggol Northshore. Aside from parks and
landscaped decks, the housing projects at Bidadari and Tampines North will be
equipped with roof gardens, garden courtyards and sheltered walkways. The
Punggol Northshore housing project will feature smart technology that involves
car park, lighting and waste systems to aid cutting waste. With a waterfront
location and smart technology, Northshore is the first district in Punggol to
have different heights to ensure a maximised sea view, as well as first to have
direct connections to an LRT station. Applications
for Bidadari and Punggol Northshore will open next year, while applications for
Tampines North will be in November this year.
Regardless of market sentiment, developers are expected
to launch more private residential homes from this month onwards following the
end of the Hungry Ghost Month. Keppel Land's 500-unit Highline Residences at
Tiong Bahru, as well as M+S Pte Ltd's Marina One Residences at Marina South,
are some of the projects to be launched. Project prices are said to be $2,000
per square foot (psf) and $2,600 psf respectively.
A 0.4 per cent month-on-month rise in resale prices of
non-landed private homes was recorded in the Hungry Ghost month of August. This
followed four months of falling prices, according to the recent flash report by
the Singapore Real Estate Exchange (SRX). Overall resale prices of HDB flats
however fell 1.1 per cent, the lowest level recorded since January 2012,
largely contributed by three- and four- room flats. Prices of three- and
four-room flats fell respectively by two per cent and 0.9 per cent.
Property developers
from the United States have set up offices in Singapore with an aim to attract Singaporean
investors to the US. According to Mr John
Stinson, Cushman and Wakefield's Executive Managing Director of Capital Markets
in the Asia-Pacific, in an interview with Today, "The markets showing the most
appeal have been New York, San Francisco and Los Angeles ... The US markets are
generally coming off a low base in almost every sector; interest rates are
historically low and the US dollar has again become a safe-haven currency."
For more District Guides, you can head over to iProperty.com Singapore.