Singapore - Housing 04 (Jan 10 - Mar 10)

Re: Singapore - Residential Properties & HDB 4 (Jan10 - Mar10)

Postby millionairemind » Fri Jan 15, 2010 8:42 am

Published January 15, 2010

First-timers to get 95% of latest EC projects
Sengkang plot seen going for $190-300 psf ppr; Yishun, $150-210 psf ppr


By KALPANA RASHIWALA


(SINGAPORE) Two executive condominium (EC) sites, one in Sengkang and the other in Yishun, will come with a twist when they are launched today. The winning tenderers will have to set aside 95 per cent of units in the initial month of sale for first-time home buyers. That is, those that have yet to receive a housing subsidy.

Market watchers say that the strategy is aimed at meeting strong demand for HDB flats from this segment of late.

ECs are a hybrid of public and private housing. They are strata-titled apartments with facilities comparable to private condos. New ECs are sold with initial eligibility, ownership and resale restrictions similar to public housing; but these are completely removed after 10 years.

Knight Frank managing director (residential services) Peter Ow says that setting aside 95 per cent of a new EC project for first-timers will help ease their difficulty in purchasing a home.

'Looking at how recent Built-To-Order HDB flats are oversubscribed and an expected continued recovery in the private residential market, ECs - a hybrid fulfilling the difference in these two property types - are expected to be met with overwhelming buying interest,' he added.

'Ironically, though, first-time buyers may have less purchasing power . .. and would thus have to be prudent and ensure they will be able to continually finance their purchase, even if they are given the privilege to buy,' he added.

Of the two 99-year leasehold plots on offer, the Sengkang plot, near Buangkok MRT Station, will be more highly sought after and hence fetch a higher unit land price, say property consultants. It can be developed into 520 apartments and is just one MRT stop away from Compass Point mall.

The Yishun plot, which can yield about 385 units, is not within walking distance of an MRT station, although it could make for a conducive living environment. It is close to Yishun Park, Orchid Country Club and Lower Seletar Reservoir. The Yishun plot is next to a completed EC project, Lilydale.

Property consultants that BT polled predict that land bids for the more popular Sengkang plot would range from about $190 to $300 per square foot per plot ratio (psf ppr), with target average selling prices of $550-600 psf.

Colliers International director Tay Huey Ying says that three EC projects in the north-east region - Park Green, The Rivervale and The Florida - sold at average prices of $525-546 psf - in Q4 2009.

For the Yishun plot, consultants expect bids of around $150-210 psf ppr with average selling prices of $500-580 psf. Units in Lilydale next door transacted at $494 psf on average last quarter, notes Ms Tay.

Real estate lecturer Nicholas Mak predicts about four to nine bids for the Yishun plot and five to 10 offers for the Sengkang land parcel. BT understands that some developers may be put off from bidding for the EC sites due to more admin work involved, including checking buyers' eligibility criteria.

The last EC project was Far East Organization's La Casa in Woodlands, which was released at an average price of about $380 psf in May 2005 and completed in 2008.

Last year's sharp recovery in 99-year leasehold mass-market private condo prices has revived the need for ECs, say analysts. 'If the price gap between the new EC projects and new 99-year private condos in the same location is attractive enough, homebuyer demand for ECs will surely return,' says CB Richard Ellis executive director Li Hiaw Ho.

Sim Lian Group executive director Diana Kuik says the $10,000 monthly household income cap for new EC buyers will serve to rein in land bids. An overly aggressive successful bidder may carve out a higher proportion of small units to try and achieve higher psf selling prices, she reckons.

While some developers may not be be pleased with the stipulation favouring first-time buyers, Knight Frank's Mr Ow says: 'We don't see a great impact on marketability of the EC projects as recent BTO projects have seen overwhelming response.'

ECs were minted in 1995 to cater to the 'sandwich class' who aspire to own private condos but find themselves priced out. The $10,000 income ceiling for new EC buyers is above the $8,000 for those seeking to buy new public housing flats from HDB.
"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong" - Bernard Baruch

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Re: Singapore - Residential Properties & HDB 4 (Jan10 - Mar10)

Postby millionairemind » Fri Jan 15, 2010 2:38 pm

Jan 15, 2010
Private home sales slide
By Joyce Teo, Property Correspondent

DEVELOPERS sold 481 units of new, private homes in December, down from 601 in November.

They also launched few new units last month. Launches in December totalled 734 units, down from 923 in November, according to data released by the Urban Redevelopment Authority on Friday.

December sales marked the fifth consecutive month of decline, after sales peaked in July last year.

The best seller last month was The Shore Residences in Amber Road. This project launched 136 units and sold 79 of them at a median price of $1,144 per sq ft.
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Re: Singapore - Residential Properties & HDB 4 (Jan10 - Mar10)

Postby millionairemind » Mon Jan 18, 2010 9:04 am

Jan 17, 2010
Are foreigners to blame?
By Jeremy Au Yong
MIDWAY through an hour-long dialogue with Law Minister K. Shanmugam on Sunday, 58-year-old Wee Kai Fatt stood up and gave voice to the claims of many coffeeshop pundits here.

The senior engineer complained about the foreigner-fuelled population boom, saying he was shocked when he heard there were five million people living in Singapore. This influx of foreigners, he added, has caused HDB home prices to skyrocket.

Taking it all in, Mr Shanmugam took pains to clarify what he said were several misconceptions in Mr Wee's statement.

The Law Minister's key message: It is unfair to cast foreigners as the villains driving up the prices of HDB flats.

Speaking at the end of his three-hour visit to Yew Tee constituency in Hong Kah GRC, he said: 'The first misconception is that somehow there are five million people and that's putting pressure on all of us. It doesn't.'

Of the five million, 3.2 million are citizens and roughly 500,000 are permanent residents (PRs). The remaining 1.3 million are here on temporary work permits and they 'impose no burden' on the public housing system, said Mr Shanmugam, who is also the Second Home Affairs Minister.
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Re: Singapore - Residential Properties & HDB 4 (Jan10 - Mar10)

Postby Musicwhiz » Mon Jan 18, 2010 9:33 am

I think he's right. "Foreigners" are not to blame. It's "Rich Foreigners" who are to blame instead! :roll:
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Re: Singapore - Residential Properties & HDB 4 (Jan10 - Mar10)

Postby winston » Mon Jan 18, 2010 9:40 am

Maybe HDB is also to be blamed for not ensuring that there's is ample supply ... :P

Blame game can go and on. Most importantly, where does the buck stops ?

And "it's an honest mistake", has also being used many times :P
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Re: Singapore - Residential Properties & HDB 4 (Jan10 - Mar10)

Postby Poles » Mon Jan 18, 2010 10:16 am

Musicwhiz wrote:I think he's right. "Foreigners" are not to blame. It's "Rich Foreigners" who are to blame instead! :roll:


the same finger also points at Poor Locals....
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Re: Singapore - Residential Properties & HDB 4 (Jan10 - Mar10)

Postby millionairemind » Mon Jan 18, 2010 10:20 am

winston wrote:Maybe HDB is also to be blamed for not ensuring that there's is ample supply ... :P

Blame game can go and on. Most importantly, where does the buck stops ?

And "it's an honest mistake", has also being used many times :P


More like a supply problem. Some1 wrote into the ST forum on Sat quoting statistics on the no. of flats built. I think its like 10,000 from 2001-2005 and it abruptly dropped to 3650 from 2005-2008. This coincided with the exponential increase in HDB prices from 2006 onwards.
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Re: Singapore - Residential Properties & HDB 4 (Jan10 - Mar10)

Postby kennynah » Mon Jan 18, 2010 2:16 pm

Of the five million, 3.2 million are citizens and roughly 500,000 are permanent residents (PRs). The remaining 1.3 million are here on temporary work permits and they 'impose no burden' on the public housing system, said Mr Shanmugam, who is also the Second Home Affairs Minister.


after a while, they all speak the same party lingo... when the master feeds, the dog wags its tail...
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Re: Singapore - Residential Properties & HDB 4 (Jan10 - Mar10)

Postby Musicwhiz » Mon Jan 18, 2010 2:28 pm

Same logic as "GST was designed to help the poor". Go figure. :lol:
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Re: Singapore - Residential Properties & HDB 4 (Jan10 - Mar10)

Postby millionairemind » Tue Jan 19, 2010 9:30 am

Find the headline pretty amusing. If you don't built enough flats for the last 4 yrs, of course there will be a huge demand for it. :roll: :roll:

Jan 19, 2010
High demand for new flats
6,848 applications for build-to-order units in Choa Chu Kang, Hougang

By Harsha Jethnani

BUYERS have rushed to the HDB's first build-to-order (BTO) projects launched this year, with one category of flats attracting 14 times more applications than homes available.

The intense interest in the developments at Choa Chu Kang and Hougang mirrors the flood of applications for two similar BTO projects at Dawson in Queenstown just before the new year.

The new estates - both in well-established areas - had attracted a total of 6,848 applications for 1,291 units ranging from studios to four-room units by 5pm on Monday.

Mr Eugene Lim, associate director of ERA Asia-Pacific, told The Straits Times: 'For a long time, HDB programmes have been in areas like Punggol and Sengkang. It is now offering more choices for people. It is a welcome move as far as buyers are concerned.'

Limbang Green estate at Choa Chu Kang was the star attraction when applications opened on Jan 5.

Its 188 four-room flats have pulled in 2,681 applications - a take-up rate of about 14 times - while the 128 three-room units had reaped 402 bidders.
"If a speculator is correct half of the time, he is hitting a good average. Even being right 3 or 4 times out of 10 should yield a person a fortune if he has the sense to cut his losses quickly on the ventures where he has been wrong" - Bernard Baruch

Disclaimer - The author may at times own some of the stocks mentioned in this forum. All discussions are NOT to be construed as buy/sell recommendations. Readers are advised to do their own research and analysis.
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