Local Property News
Fresh Start Housing Scheme helps families start afresh
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Photo credit: Ministry of National Development
A new Housing board programme has been rolled out last December to help families own a HDB flat.
Aptly named the Fresh Start Housing Scheme, it is aimed at helping families who have once lived in subsidised housing and are now living in rental flats. They can now apply for 2-room flexi flats with shorter leases of 45 to 65 years, which means they pay less than the usual 99-year leasehold HDB flats secured directly from the housing board.These will be a boost for lower-income families or those wanting to move on and up from the rental schemes. But as these rare 2-room flexi units are also made available to singles and senior citizens, they are one of the most popular unit types in the board's latest BTO (build-to-order) sales launch. 713 such 2-room units were put up for ballot and the subscription rate was almost four times that with 2,894 applicants. First-time home buyers are also allowed to apply for grants of up to $35,000.
There are however clauses in the Fresh Start Housing Scheme that limit qualifying applicants. Households applying under this scheme must have at least 1 citizen parent, 1 citizen child under the age of 16 and at least 1 family member must have had a stable employment for the last 12 months. The Ministry of Social and Family Development will also need to assess applicants and they must not have accumulated more than 3 months in arrears on their rental units.
Property cooling measures to stay put
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National Development Ministry Lawrence Wong has recently mentioned that the curbs placed on the property industry are here to stay as demand for property not declined.
Though property prices may have fallen, the dip has been gradual and slow. Coupled with the fertile bedrock of low interest rate and affordable quantum pricing of residential properties, the authorities may be afraid of a sudden and unmanageable spike in demand from investors should the curbs be lifted anytime soon.
And their fears may not be entirely unfounded as the market has been showing budding signs of recovery in the past couple of months. Demand, in particular for smaller units in well-located properties, from local and foreign investors alike, have been on the rise while prices are beginning to hold steady. Pent-up demand from previous quarters of muted activity have meant a rise in sales volume.
Bigger Central Provident Fund housing grants will be included in the upcoming Budget talks, which may sustain resale HDB flat volume as more buyers qualify for subsidies. Resale volume for the public housing sector has already risen 7.8 per cent last year. As demand for resale flat increases, so will pricing and sales volume. A stabilising resale flat market could also mean an increase in the number of HDB upgraders who are buying off the private property market, in turn boosting sales in the private housing sector as well.
Budget 2017: Will higher CPF Housing grant lead to higher resale prices?
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With a new budget comes a boost to resale HDB housing grants. In a Budget Statement last week, Minister for Finance, Mr Heng Swee Keat, announced an increase in CPF housing grant for first-timers applying for a resale flat.
The increase is considerable, double that of the existing grant amounts in fact. First-timer families can now get up to $20,000 in grants, and first-timer singles up to $10,000. Previously grant amounts for both categories of applicants were at $10,000 and $5,000 respectively. Buyers are however worried that sellers may leverage on this fact and raise resale flat prices. Though it is possible that sellers may indirectly appropriate the differences in grant monies by raising selling prices, property analysts say the worry may be unfounded as the scale is still tilted towards buyers, at least for now.
And as the property curbs are unlikely to go anytime soon, plus many sellers and upgraders will have to let go of their flats within a specified period of time and many new public and private projects are reaching completion this and next year, raising the prices just to earn half the grant amount may mean the sellers are missing out on closing deals. And often in the property business, timing is everything.
The demand for resale flats is however on the rise, and the average period of time sellers take to find a buyer is narrowing to about 3 months. Prices may rise this year, but minimally, at a predicted 0.3 per cent. Sales volume however may rise as buyers begin to realise that prices are unlikely to fall any further. Industry experts foresee a 10 per cent increase in transaction volume, crossing the 22,000-unit mark.
Strata offices available for sale in centre of town
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Photo credit: 111 Somerset.com.sg
Rarely do office spaces right in the middle of town come up for sale. Retail spaces possibly. Though mostly for rent. But 15 units on the 7th floor of TripleOne Somerset have just become available for sale in the premium Orchard Road area and response is expected to be keen.
Situated near the Somerset MRT station, the development consists of 2 towers of premium office spaces and a retail podium. It is currently undergoing a $120 million renovation to boost the development's retail offerings, including future medical suites. Recently put up for sale at $41.56 million as an expression of interest, the indicative price for the 15,683 sq ft space stands at $2,650 psf. The floor on sale is also undergoing refurbishment and will be ready by May this year.
Property analysts are expecting investors to jump on this rare opportunity as properties such as these in a prime location are hard to come by. This could be the first time a space with such calibre in terms of potential is made available in the last 30 years. The space can be used as strata office units or medical suites. Most resale units with similar characteristics are in older, ageing buildings, and even then cost a fortune due to its scarcity.
TripleOne Somerset is a 99-year leasehold building with its lease beginning from Feb 19, 1975, and it calls Gucci, Bottega Venetta, Samsonite and Bell & Ross as some of its many tenants. The rental potential of the space is also tremendous, with monthly office rents at around $8 to $8.50 psf and a gross rental yield of 4 per cent.
New property launches in Clementi and Choa Chu Kang drew crowds
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When a new condominium becomes available in a mature estate, it usually excites the crowd. Especially if the estate has not had a new launch for sometime.
Demand for new private residential units have been on the rise since late last year and pent-up demand following the year-end festive season plus the affordability of units at The Clement Canopy in Clementi have brought in the crowds at its launch last weekend.195 units from the 505-unit The Clement Canopy has already sold on its first weekend of the launch - that is almost 80 per cent of the 250 units released. This new development leans heavily on 2-bedroom units with almost 40 per cent of the apartments sized between 635 to 732 sq ft and priced between $850,000 to $1.2million.
The growing interest in the property could be precisely because of the reasonable quantum prices. The project's green features and location also adds to the potential resale value of the units as some buyers who have been waiting for drastic changes in the property market make the decision to strike when the iron is hot. The discounts of $6,000 to $12,000 afforded buyers over the weekend may also have sweetened deals of course.
Elsewhere, the iNz executive condominium (EC) was also launched to welcoming response. Developed by Qingjian Realty and situated in Choa Chu Kang, it is the first EC to be launched this year. E-applications for the project will end on March 5.
For more District Guides, you can head over to iProperty.com Singapore.
Fresh Start Housing Scheme helps families start afresh
Photo credit: Ministry of National Development A new Housing board programme has been rolled out last December to help families own a HDB flat.
Aptly named the Fresh Start Housing Scheme, it is aimed at helping families who have once lived in subsidised housing and are now living in rental flats. They can now apply for 2-room flexi flats with shorter leases of 45 to 65 years, which means they pay less than the usual 99-year leasehold HDB flats secured directly from the housing board.These will be a boost for lower-income families or those wanting to move on and up from the rental schemes. But as these rare 2-room flexi units are also made available to singles and senior citizens, they are one of the most popular unit types in the board's latest BTO (build-to-order) sales launch. 713 such 2-room units were put up for ballot and the subscription rate was almost four times that with 2,894 applicants. First-time home buyers are also allowed to apply for grants of up to $35,000.
There are however clauses in the Fresh Start Housing Scheme that limit qualifying applicants. Households applying under this scheme must have at least 1 citizen parent, 1 citizen child under the age of 16 and at least 1 family member must have had a stable employment for the last 12 months. The Ministry of Social and Family Development will also need to assess applicants and they must not have accumulated more than 3 months in arrears on their rental units.
Property cooling measures to stay put
National Development Ministry Lawrence Wong has recently mentioned that the curbs placed on the property industry are here to stay as demand for property not declined.
Though property prices may have fallen, the dip has been gradual and slow. Coupled with the fertile bedrock of low interest rate and affordable quantum pricing of residential properties, the authorities may be afraid of a sudden and unmanageable spike in demand from investors should the curbs be lifted anytime soon.
And their fears may not be entirely unfounded as the market has been showing budding signs of recovery in the past couple of months. Demand, in particular for smaller units in well-located properties, from local and foreign investors alike, have been on the rise while prices are beginning to hold steady. Pent-up demand from previous quarters of muted activity have meant a rise in sales volume.
Bigger Central Provident Fund housing grants will be included in the upcoming Budget talks, which may sustain resale HDB flat volume as more buyers qualify for subsidies. Resale volume for the public housing sector has already risen 7.8 per cent last year. As demand for resale flat increases, so will pricing and sales volume. A stabilising resale flat market could also mean an increase in the number of HDB upgraders who are buying off the private property market, in turn boosting sales in the private housing sector as well.
Budget 2017: Will higher CPF Housing grant lead to higher resale prices?
With a new budget comes a boost to resale HDB housing grants. In a Budget Statement last week, Minister for Finance, Mr Heng Swee Keat, announced an increase in CPF housing grant for first-timers applying for a resale flat.
The increase is considerable, double that of the existing grant amounts in fact. First-timer families can now get up to $20,000 in grants, and first-timer singles up to $10,000. Previously grant amounts for both categories of applicants were at $10,000 and $5,000 respectively. Buyers are however worried that sellers may leverage on this fact and raise resale flat prices. Though it is possible that sellers may indirectly appropriate the differences in grant monies by raising selling prices, property analysts say the worry may be unfounded as the scale is still tilted towards buyers, at least for now.
And as the property curbs are unlikely to go anytime soon, plus many sellers and upgraders will have to let go of their flats within a specified period of time and many new public and private projects are reaching completion this and next year, raising the prices just to earn half the grant amount may mean the sellers are missing out on closing deals. And often in the property business, timing is everything.
The demand for resale flats is however on the rise, and the average period of time sellers take to find a buyer is narrowing to about 3 months. Prices may rise this year, but minimally, at a predicted 0.3 per cent. Sales volume however may rise as buyers begin to realise that prices are unlikely to fall any further. Industry experts foresee a 10 per cent increase in transaction volume, crossing the 22,000-unit mark.
Strata offices available for sale in centre of town
Photo credit: 111 Somerset.com.sgRarely do office spaces right in the middle of town come up for sale. Retail spaces possibly. Though mostly for rent. But 15 units on the 7th floor of TripleOne Somerset have just become available for sale in the premium Orchard Road area and response is expected to be keen.
Situated near the Somerset MRT station, the development consists of 2 towers of premium office spaces and a retail podium. It is currently undergoing a $120 million renovation to boost the development's retail offerings, including future medical suites. Recently put up for sale at $41.56 million as an expression of interest, the indicative price for the 15,683 sq ft space stands at $2,650 psf. The floor on sale is also undergoing refurbishment and will be ready by May this year.
Property analysts are expecting investors to jump on this rare opportunity as properties such as these in a prime location are hard to come by. This could be the first time a space with such calibre in terms of potential is made available in the last 30 years. The space can be used as strata office units or medical suites. Most resale units with similar characteristics are in older, ageing buildings, and even then cost a fortune due to its scarcity.
TripleOne Somerset is a 99-year leasehold building with its lease beginning from Feb 19, 1975, and it calls Gucci, Bottega Venetta, Samsonite and Bell & Ross as some of its many tenants. The rental potential of the space is also tremendous, with monthly office rents at around $8 to $8.50 psf and a gross rental yield of 4 per cent.
New property launches in Clementi and Choa Chu Kang drew crowds
When a new condominium becomes available in a mature estate, it usually excites the crowd. Especially if the estate has not had a new launch for sometime.
Demand for new private residential units have been on the rise since late last year and pent-up demand following the year-end festive season plus the affordability of units at The Clement Canopy in Clementi have brought in the crowds at its launch last weekend.195 units from the 505-unit The Clement Canopy has already sold on its first weekend of the launch - that is almost 80 per cent of the 250 units released. This new development leans heavily on 2-bedroom units with almost 40 per cent of the apartments sized between 635 to 732 sq ft and priced between $850,000 to $1.2million.
The growing interest in the property could be precisely because of the reasonable quantum prices. The project's green features and location also adds to the potential resale value of the units as some buyers who have been waiting for drastic changes in the property market make the decision to strike when the iron is hot. The discounts of $6,000 to $12,000 afforded buyers over the weekend may also have sweetened deals of course.
Elsewhere, the iNz executive condominium (EC) was also launched to welcoming response. Developed by Qingjian Realty and situated in Choa Chu Kang, it is the first EC to be launched this year. E-applications for the project will end on March 5.
For more District Guides, you can head over to iProperty.com Singapore.