Singapore - Housing 18 (Apr 19 - Dec 25)

[behappyalways]

Pricey Singapore rents go through the roof even as population dips
https://www.reuters.com/world/asia-paci ... 022-03-03/

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Provisional Tender Results for Land Parcel at Bukit Batok West Avenue 8 for Executive Condominium Housing Development
https://www.hdb.gov.sg/cs/infoweb/about ... -Executive



Tender closing for residential site at Dairy Farm Walk
https://www.ura.gov.sg/Corporate/Media- ... es/pr22-12

[behappyalways]

ABSD of 35% to apply on transfer of residential property into a living trust
https://www.theedgesingapore.com/news/p ... ving-trust

[winston]

These historic black-and-white bungalows are some of the most desired homes in Singapore, and there are only 500 left. We got an inside look at one of them.

by Amanda Goh

Source: Insider

https://www.insider.com/singapore-black ... tos-2022-5

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Tender closing for URA sale sites at Pine Grove (Parcel A) and Dunman Road
https://www.ura.gov.sg/Corporate/Media- ... es/pr22-24

[behappyalways]

New SERS rehousing options offered in Ang Mo Kio will apply to future similar projects: Desmond Lee
https://mothership.sg/2022/07/additiona ... g-options/

[behappyalways]

July new home sales up 70.9% m-o-m, largely driven by best-seller AMO Residence
https://www.theedgesingapore.com/news/p ... -residence

[behappyalways]

Sky Eden@Bedok achieves 75% sales on launch day, at average price of $2,100 psf
https://www.edgeprop.sg/property-news/s ... e-2100-psf

[behappyalways]

Provisional Tender Results for Land Parcel at Bukit Batok West Avenue 5 for Executive Condominium Housing Development
https://www.hdb.gov.sg/cs/infoweb/about ... West-Ave-5



Tender closing for URA sale sites at Lentor Hills Road (Parcel B) and Lentor Central
https://www.ura.gov.sg/Corporate/Media- ... es/pr22-32

[winston]

Singapore Residential Sector – Fresh round of property cooling measures but not unexpected

Singapore’s Housing & Development Board (HDB), Ministry of National Development (MND) and Monetary Authority of Singapore (MAS) announced on the late night of 29 Sep 2022 a fresh set of property cooling measures, which will come into effect from 30 Sep 2022.

We believe the focus was mainly targeted at the resale public housing market, although there would also be some impact on the private residential property segment.

Overall, we believe demand for HDB upgraders could be curtailed, and while we expect a moderation in residential property price growth ahead, we are maintaining our forecast for Singapore’s private home prices to increase 6-8% in 2022.

This is because the impact of the latest property tightening measures will mostly only be felt from 4Q22, and we expect private home price appreciation to be robust in 3Q22 given the firm selling prices of recently launched projects.

One of the latest property cooling measures comes in the form of an increase in the medium-term interest rate floor used by private financial institutions to compute a borrower’s Total Debt Servicing Ratio (TDSR) and Mortgage Servicing Ratio (MSR) by 0.5 percentage points (ppt).

The medium-term interest rate for residential property purchase loans and mortgage equity withdrawal loans will be the higher of a 4% per annum (p.a.) floor, versus 3.5% p.a. previously, or the thereafter interest rate, which is defined as the highest possible interest rate applicable during the tenure of a property loan, excluding introductory or promotional rates.

The higher medium-term interest rate floor is aimed at ensuring homebuyers borrow prudently for their property purchases amid a higher interest rate environment, given that property loans are long-term commitments and usually a household’s largest liability.

This measure will apply to purchases of properties where the Option to Purchase (OTP) is granted on or after 30 Sep 2022.

Another change in policy was the lowering of the Loan-to-Value (LTV) limit for HDB housing loans from 85% to 80%. This will apply to new flat applications for sales exercises launched and complete resale applications which are received by HDB on or after 30 Sep 2022.

According to the government agencies’ press release, this change is not expected to significantly affect first-time homebuyers and lower-income flat buyers, as they may be able to obtain housing grants and are also able to tap on their CPF saving to pay for their flat purchase.

As the revised LTV limit does not apply to loans granted by private financial institutions, which will remain at 75%, we do not expect any impact to the private residential property segment.

Given the uptrend in the HDB Resale Index, MND and HDB also decided to introduce a wait-out period of 15 months for private residential property owners (PPOs) and ex-PPOs to buy a non-subsidised HDB resale flat.

Within the sector, our preferred picks are CapitaLand Investment Limited (CLI SP) given the recent pullback in its share price, coupled with the fact that it will be unscathed from residential property cooling measures, and UOL Group (UOL SP).

Source: OCBC