HDB correspondence on public newsletters [Archive] - Page 3

jq75

15-03-2005, 04:35 PM

Side track a little

The New Paper - 15 Mar 2005

Resale condos hit by new launches

Why buyer prefers new condos
1. More contemporary designs for the building and furnishings
2. Starts with a new 99-year lease for leasehold condos
3. Incentives such as furniture vouchers from developers
4. Prices are attractive

By Desmond Ng
desmondn@sph.com.sg

WITH a whole slew of new developments hitting the market, resale private properties have been losing their shine, property watchers said.

The URA figures are revealing.

New home sales hit 5,785 units last year, an improvement of 12 per cent from the previous year.

And developers are coming out with more.

When that happens, resale prices for apartments are hit.

Resale prices for landed properties are less affected as there are few new landed property launches.

So why would the price of resale apartments soften with the launch of new projects?

Mr Eugene Lim, assistant vice-president of real estate firm ERA Singapore, said developers have become realistic in their pricing.

This means that the price tag for a new unit is usually the same as the price of a resale apartment in the same area.

Owners of the older units are then left with little choice but to push their prices down.

And people just want new apartments, it seems.

Developers of new apartments are also trying to sweeten the deal with freebies such as renovation or furniture vouchers, said Mrs Ong Choon Fah, executive director of DTZ Debenham Tie Leung.

She added: 'The quality of the furnishings will be more contemporary, plus for leasehold properties, the lease period will be longer for new projects too.'

This has been the trend for some time now.

Property agent Bernard Chia recalled that he was marketing some resale units of Northvale condo in Choa Chu Kang about two years ago when a new condo, the Warren, launched its units.

Northvale was launched in 1995.

Said Mr Chia: 'When that happened, the sellers of Northvale had to adjust their prices to compete with the new project. The difference was about 10 per cent.'

Like many other property agents, he said he would rather sell new units now.

But not all industry watchers believe it's doom and gloom for resale apartments.

Chesterton International's research director Nicholas Mak said: 'Although the older properties may be dated in terms of design, some of them are located in areas where there are no new projects.

'Plus, the older condo units tend to be bigger than some of the newer projects.'

He said some of the older condominiums may have better facilities such as bigger swimming pools and more tennis courts than the newer ones.

Home buyer Koh S L, 30, took a year and a half before she found her ideal place.

Ms Koh, who is married with two children, was choosing between a resale and new condo unit.

The family lives in a five-room Pasir Ris flat.

She finally bought a three-bedroom unit at Kovan Melody in Hougang for about $600,000 last year.

She said: 'We saw a few resale condos in the area but the facilities quite lacking and the designs too old. Plus the neighbours were quite old.

'We have two young kids and wanted a place where there are young families.

'We chose Kovan Melody because of that, and also because of the amenities, proximity to MRT station and cheaper price.'

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Recent launches

THERE have been a number of new condos soft-launched in recent weeks, including Scenic Heights (left).

It is a freehold condo project comprising 50 units off Balestier Road.

Other new developments include Platinum Edge, a freehold development at Leicester Road, and Parc Emily, also freehold, at Wilkie Road.

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The New Paper - 15 Mar 2005

Agent: Tougher to sell resale properties now

IN the past, commissions from resale private properties formed the biggest chunk of property agent Bernard Chia's income.

He said that about 11 years ago, 85 per cent of his income was from resale properties while the rest was from marketing new properties.

Today, the story is very different.

The 35-year-old said marketing resale properties now contribute about half of his income, and he's spending more time and effort marketing new properties.

Said the Propnex division director: 'It's getting more difficult to sell resale properties, especially when there're quite a number of new projects in the market.

'At the end of the day, it's all about pricing, but some owners are quite stubborn and don't want to lower their prices.'

Mr Chia said the prices for resale properties have to be lower to compete with the new projects which are attractively priced.

WILLING TO WAIT

In today's market, buyers do not just focus on resale, they also go to new projects to compare prices, he said.

Mr Chia also goes with customers to look at new projects where, in the event of a sale, he gets commissions ranging from half to 1 per cent of the property price.

Added Mr Chia: 'And many buyers take up to a year to house-hunt and are willing to wait for new projects to be completed.'

jq75

15-03-2005, 04:37 PM

No cash back?
What about getting a loan from your seller?

BY LARRY HAVERKAMP
mail@AskDrMoney.com
Mar 8, 2005

CASHBACK is dead. From 1 Apr, banks must use HDB-approved valuers. This will result in
lower HDB valuations and make cashback schemes much more difficult.

There have been lots of problems with the cashback deals and it is good they are gone. (See report, below.)

But now, buyers with NO cash have NO cashback and NO flat.

The problem is that new cash requirements for HDB bank loans are putting a squeeze on buyers.

Since 1 Jan, the required cash down payment has been 4 per cent. It means a $300,000 bank-financed flat requires a $12,000 cash down payment. This amount will increase by 2 per cent per year until 1 Jan 2008 when it will max out at 10 per cent.

Property agents tell me some buyers have the cash but it is committed. Others simply don't have it.

MINI CASHBACK

Help may be on the horizon with seller-assisted financing.

I call it 'mini cashback' since it is a lot like the old cashback but without the negative features.

It works like this: Say you are selling your flat for $300,000. You have found a willing buyer but he doesn't have the required $12,000 cash down payment.

You say, 'No problem. Here is a loan for $12,000. Use it for your cash payment.'

Wait a minute. The buyer hasn't parted with any cash. Doesn't it step around the intent of the rule? Will the authorities approve this deal?

Answer: Yes. The deal will go through as the arrangement is a personal and private one.

Suppose you don't loan the buyer his down payment but give him the money - as a grant?

This becomes more complicated because it is not so clear what is the flat's true value. Is it still $300,000?

Or is it $288,000 ($300K-$12K) since that is what the seller received?

In that case, the 80 per cent bank loan and 16 per cent CPF payment would be made on the lower value.

LOAN vs GRANT

Much turns on whether the seller is making a loan or a grant to the buyer. This is not as clear-cut as you may think. Consider these 5 levels of seller financing. Can you tell which are loans and which are grants?

Level 1: The seller tells the buyer: 'Borrow $12,000 from the bank and I will guarantee the loan.' This one looks to be a clear-cut loan.

Level 2: The seller says, 'Here is $12,000. Repay me when you can.'

Is it a loan?

Level 3: Instead of saying, 'Repay me when you can', the seller says, 'Repay me IF you can.' Is it still a loan?

Level 4: Suppose the seller says, 'Repay me if you can. Wink, wink.'

The winks indicate the seller does not really expect to be repaid.

Level 5: Suppose the seller says, 'Here is a grant of $12,000'. Or, 'Here is cashback of $12,000.' Is it a loan? That one is easy. It is not.

To be on the safe side, you should go to your banker, lay your cards on the table and say, 'The buyer needs help with financing. I am willing to help.

'Please suggest how we can do it so that the bank can loan the buyer 80 per cent of the full $300,000 selling price.'

You may be thinking, 'Hey, why should I lay any cards on the table?

'I will keep quiet about where the buyer got his down payment and no one will know.'

Yes, you can do that. But is it worth the worry?

I suggest you tell the bank or CPF Board, 'I want to check if this financing is OK. If it's not, please advise me on how to make it legal.'

Most of the time, people will appreciate your honesty and go out of their way to help.

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The short sad story of cashback
CASHBACK affects only one-third of the HDB flats, those purchased with bank loans.

It happens when a bank's valuation is high (like $300,000) while the true selling price is lower (like $250,000).

Next, the buyer and seller tell the bank and HDB a lie: That the selling price is $300,000. After that, the bank makes a loan of $240,000 (80 per cent of $300,000). The buyer pays $48,000 from his CPF account (16 per cent of $300K) and $12,000 from cash (4 per cent).

When the deal is done, the seller takes his profits from the sale and returns $50,000 to the buyer, as they previously agreed. It brings the true selling price down to $250,000.

The result is that the buyer has transferred $50,000 from CPF to cash. The seller has done the opposite and transferred $50,000 from cash to CPF - but only if he broke even or lost money on the deal.

If he made a profit, he also ended up with extra cash. All cash
came courtesy of the bank's over-sized loan.

Cashback worked against the goal of setting aside more for our retirement.

Its biggest problem, however, is that it was often a scam. Property agents lured buyers into purchasing a home they may not have wanted in the first place, just so they could get money out of their CPF accounts.

Even then, buyers usually didn't get all of their money since a lawyer and housing agent would typically take a big cut.

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LOAN OR CASHBACK
A 'loan' from the seller is NOT the same as the old cash back prior to 1 Apr. Here are the
differences:

1) The cash comes from the seller and not from an inflated bank loan.

2) This scheme is not affected by valuations.

It is limited to the size of the required cash down payment.

3) Authorities appear to view it as less harmful and consider it a private arrangement between buyer and seller.

4) It does not over-state the selling price. This prevents extra cash from coming into the picture through excessive bank loans.

jq75

15-03-2005, 10:18 PM

All abt loans interest adjustments

Maybank bucks trend, decides against raising home loan rates

SINGAPORE : Maybank is joining the ranks of lenders who are bucking the current trend of raising home mortgage rates.

It says it will continue to hold its board rates for both its private and HDB residential home loans.

The bank says it will try to maintain its home loan rates for as long as it can, amidst the rising interest rate environment.

Maybank has not changed its fixed-rate package for more than a year.

Its variable-rate package, too, has remained the same for more than six months.

Maybank's decision is in sharp contrast to some of its rivals in the home loans market.

On Monday, UOB and DBS became the latest banks to raise interest rates.

UOB raised its board rate by a quarter percentage point for new home loan customers; DBS will do the same from May 1.

Over the weekend, Standard Chartered Bank said it would raise mortgage rates by half a percentage point for private homes -- the second time it has raised rates this year.

And OCBC will be increasing its board rate by 30 basis points from March 29.

HSBC has told its customers it will raise mortgage rates by 50 basis points from next Wednesday.

And since the start of this month, ABN Amro's home loan rates have gone up between 25 and 50 basis points.

A hike in the board rate will directly increase mortgage costs. - CNA

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Home loan rates seen rising but at gradual pace: analysts

SINGAPORE : For home buyers who were caught off-guard by Monday night's surprise rate hikes from UOB and DBS, the bad news is that housing mortgage rates are set to rise further, market watchers say.

But they add that the silver lining is that the hikes will come at a gradual pace, and they believe the higher housing loan rates will not derail the fledgling property recovery.

Market watchers say home owners here could be slapped with further rate hikes of between 50 and 75 basis points over the next 12 months.

That is on top of the 25 basis points by which DBS and UOB will soon jack up their home loan rates.

Nicholas Mak, director of research at Chesterton International, said, "I think it could go up by as much as over 50 to 75 basis points over the next 12 months."

Analysts at BNP Paribas see home loan rates rising by at most another 50 basis points.

They say banks are unlikely to go for a bigger hike because demand for housing loans remains rather tame.

Said Thio Chin Loo, senior currency analyst at BNP Paribas, "Banks could still be fairly hesitant to raise rates too aggressively, so there could be at most another half percent rate hike to come. But anything beyond that, I think, is quite unlikely."

BNP expects the hikes to come in a gradual manner, because local banks enjoy a buffer, thanks to low fixed deposit rates.

Said Ms Thio, "The cost of funds for local banks is low because the have a very large deposit base. Deposit rates are now very low, at 0.1, 0.2 percent. Obviously, they have a very large buffer against the 1.5 to 2 percent for housing loan rates. As a result, they still have some leeway to stomach rise in inter-bank rates without affecting cost of funds too much."

With housing mortgage rates on the rise, there are concerns that it may derail the fledgling recovery in the private property market.

Mr Mak said, "The increasing home loan rates could dampen demand for residential properties slightly, especially discouraging borderline buyers from buying bigger and more expensive homes. Such buyers are people who are currently highly geared, or need to be highly geared, need to borrow substantially when they buy their next homes."

Overall, though, Chesterton is still seeing a pick-up in the sector.

It is forecasting the private residential property market to grow by between one and three percent over the next 12 months. - CNA

jq75

18-03-2005, 09:25 AM

March 18, 2005
Cost cap means no lift upgrade for some
About 190 blocks have been deemed too expensive to upgrade By Daryl Loo
RETIREE Tan Poh Huat, 71, had hoped that the HDB would add lift access to every floor at his 20-year-old block of HDB maisonettes, but that's not likely to happen.

Mr Tan's Bedok Reservoir block could be one of those affected by a plan to accelerate the upgrading of Housing Development Board flats to make them more accessible for the elderly.

Under the plan, around 190 blocks have been deemed too expensive for lift upgrading. According to HDB, such blocks include those without common corridors on every floor and those containing maisonettes or double-storey units, where the new lifts would be shared among fewer homes.

Last Monday, National Development Minister Mah Bow Tan had announced a cap on costs in order to accelerate the Lift Upgrading Programme, so that most flats could have lift access by 2015.

'To ensure that the largest possible number of residents can benefit through lift upgrading, we will only select blocks for lift upgrading if the cost per unit does not exceed $30,000,' Mr Mah had said in Parliament.

About 3,800 HDB blocks still lack lift access on every floor. Mr Mah pointed out that with the cost cap, 95 per cent of these blocks will be eligible for upgrades.

Upgrading the remaining 5 per cent of blocks will push the cost too high.

An HDB spokesman said: 'These block types cost more than the standard block types to upgrade because the ratio of lift to units served is much lower.'

Putting a lift on every floor would also require more extensive building work.

At Mr Tan's 13-storey maisonette block, the lifts stop only on the first, fourth, eighth and 12th storeys, which means he has to climb two flights of stairs to get to his sixth-floor unit.

Another block of flats facing exclusion is the 31-year-old Block 4 on Sago Lane in Chinatown, where the lifts serve only every third storey.

Many of the block's residents are senior citizens, so Dr Lily Neo, an MP for Jalan Besar GRC, is still hopeful they will qualify for the programme.

But upgrading the 21-storey block could be costly, as most levels do not have common corridors and the units are served by seven separate staircases. Getting lifts to serve every unit would require six new lift shafts.

Dr Neo said construction difficulties mean the project could end up costing up to 30 per cent more than what it would in standard blocks.

Hong Kah GRC MP Ang Mong Seng reckons that there is also a block of maisonettes in his constituency that does not meet the new criteria for lift upgrades.

He said: 'We'll have to find out from the residents there if they really need the lifts and how to help them.'

Those who are left out of the programme should be given other options, said Dr Amy Khor, chairman of the Government Parliamentary Committee for National Development and mayor of Southwest Community Development Council.

She proposed that affected residents be offered alternatives like the Selective En-bloc Redevelopment Scheme, under which old flats are demolished and residents resettled in new blocks nearby.

When queried, the HDB suggested that affected flat owners in urgent need of lift access 'may want to consider selling their flat and buying one on a floor with a lift landing'.

But for 73-year-old retiree Lim Boon Ho, a Sago Lane resident, the idea of moving to another housing estate for a flat with lift access did not appeal.

'I've lived in this block since it was built in the 1970s. And I've lived in Chinatown even before World War II. I don't wish to move,' he said.

jq75

18-03-2005, 10:49 PM

More HDB carpark attendants may lose their jobs due to outsourcing

SINGAPORE : The Housing and Development Board is continuing its outsourcing of carpark enforcement services.

This means that private companies will take over these functions.

The last exercise was in August 2003, when a third or over 200,000 of its carparks in the eastern and western parts of the island were outsourced.

Over 200 employees lost their jobs then.

Some believe that at least 400 people, mainly carpark attendants, might lose their jobs in this round, when the remaining 470,000 carparks are outsourced.

The HDB says the details of the number of workers affected and when the exercise is to start will only be confirmed when they are finalised.

But it gave its assurance that management and unions will work together to inform and help those affected. - CNA

jq75

21-03-2005, 08:37 AM

Time to review resale levy on HDB flats

LESSEES who lived more than five years in a flat can now purchase another 'subsidised' flat from the Housing Board. However, the resale levy, which was introduced in 1997 to deter real-estate speculation, stays.

The levy ranges from 10 to 25 per cent, depending on flat size, computed based on the resale price or 90 per cent of market valuation, whichever is higher.

According to HDB, the objective of the resale levy is to reduce the housing subsidy for the second flat. Does this objective still hold true in today's context?

As HDB pegs the selling prices of its flats to or near market valuation, first-time flat owners may have bought their flats in the 1990s at much higher prices than what the valuations are today, even with the housing subsidy thrown in.

These flat owners could end up either paying more to purchase the second flat or suffering further losses after paying the levy. Take, for example, a first-time lessee who paid $400,000 for an executive flat five years ago and sold it at $350,000 today. Besides incurring a loss of $50,000, he is slapped with a resale levy of $87,500 (25 per cent for five-room/ executive flats).

Or, in the other scenario, he may have paid $150,000 for a four-room flat and sold it for $220,000, making a nominal profit of $70,000 (before interest accrued on CPF withdrawn for housing).

However, he has to pay a resale levy of $45,000 (22.5 per cent for four-room flats), bringing his profit down to $25,000.

The resale levy works more like a capital-gains tax if the flat owner makes a profit sufficient to cover the levy. If that's the case, why not finetune the levy in such a way that it is like the rescinded tax on gains on sale of property introduced during the property-bubble era?

In other words, base the resale levy on the difference between the original purchase price and the higher of the resale price or 90 per cent of market valuation.

The objective of reducing the housing subsidy for the second flat can still be met.

Ee Teck Siew

HDB resale levy not meant to be tax

Monday • March 21, 2005

I refer to Mr Ee Teck Siew's letter, "Review resale levy, Housing Development Board (HDB)" (Mar 17).

Mr Ee suggested to fine-tune the current resale levy so that it works more like a tax on capital gains on sale of property.

All flats sold by HDB are priced below their prevailing market values.

Hence, we need to impose a resale levy on second-timers to ensure a fair allocation of subsidised flats between second-timers and first-timers.

The resale levy applies only to those who return to HDB for a second subsidised flat.

It is not intended to be a capital gains tax.

Those who sell their first subsidised flat and buy a resale HDB flat or private property do not need to pay the levy.

As such, it is not linked to the capital gains made by flat owners.

We would like to thank Mr Ee for his feedback.

HDB will consider various public feedback in our regular reviews of housing policies.

jq75

23-03-2005, 08:46 AM

Unwed mums: HDB does not penalise

Wednesday • March 23, 2005

I refer to the article and letters published in Today concerning unwed mother Jane's request to rent an HDB flat.

Our public housing policies support the promotion of family formation through marriage and preservation of traditional family values.

Housing policies for single unmarried mothers are the same as for other singles. They can rent or buy a flat from HDB jointly with their parents.

If they are aged 35 and above, they can buy a resale flat or pair up with another eligible single to rent a flat from HDB.

This is not to penalise unmarried mothers, but to encourage them to look first to their families for care and support.

However, for unmarried parents who are victims of circumstances and facing severe financial hardship, HDB may exercise flexibility and allow the unmarried parent and child to rent an HDB flat on compassionate grounds.

We will consider each case based on its own merits

jq75

24-03-2005, 10:30 PM

HDBseeks balance between short-term, season parking lots

Thursday • March 24, 2005

I REFER to the letter by Mr James Chi, "... and consider also wishes of non-season parking ticket holders" (March 17).

HDB car parks are provided primarily to serve HDB residents staying nearby, and these are mainly season parking ticket (SPT) holders. At the same time, we recognise the need for short-term parking lots for visitors, as well as for residents who do not park at their car parks regularly.

Hence, HDB is mindful that it needs to strike a balance between season parking and short-term parking needs.

To maximise the use of parking lots, parking is on a first-come-first-served basis.

In car parks where the SPT take-up rate is high and there is demand for short-term parking, we reserve half of the lower decks of the multi-storey car park for SPT holders and allow short-term parking in the other half of these lower decks.

In some car parks, such as those near commercial premises, the demand for both season parking and short-term parking is very high. If we were to allow short-term parking in half of the lots at the lower decks, these lots would be fully taken up by motorists patronising the commercial establishments.

SPT holders would thus often have little chance to park in the lower decks as the remaining half would also be taken up very quickly by other SPT holders. Since they need to park there on a regular if not daily basis, the inconvenience they face would be far greater than for visitors who only park short-term. Hence, for such car parks, we have to reserve the lower decks fully for SPT holders.

As the parking situation for a locality may change over time, HDB carries out regular reviews on the parking situation at each car park.

Where adjustments for parking arrangement are justified and feasible, HDB would consider making them.

If Mr Chi has a specific car park in mind where he wants us to take a closer look, he can contact us at 64902331 or email us at hdbcarparks@hdb.gov.sg

Letter from ENG SOH SENG

Deputy Director (Car Parks), for Director (Housing Administration), Housing & Development Board

jq75

25-03-2005, 07:11 PM

HDB blocks, carparks to get green roofs
Plan to start with top floors of carparks in Sengkang, Punggol

By Daryl Loo
HDB carparks and blocks could soon sport green rooftops, a move that aims to beautify as well as cool the buildings.

The Housing Board is studying the feasibility of converting these concrete roofs into 'green roofs', starting with the top floors of carparks in estates like Sengkang and Punggol over the next few years, Second Minister for National Development and Minister in the Prime Minister's Office Lim Swee Say said yesterday. p> He was speaking at a seminar organised by the Housing Board and the National Parks Board, during which both agencies released findings of a joint two-year experiment into green roofs.

Unlike existing rooftop gardens in the newer HDB housing estates, which tend to include turf, shrubs, trees, and facilities like playgrounds and fitness courts, green roofs are usually just a layer of smaller plants covering a large part of the rooftop.

HDB's senior landscape architect, Ms Tay Bee Choo, said at the seminar that the advantage of green roofs over traditional rooftop gardens is that they cost about half the amount to build and require very little maintenance and watering after the initial months of planting. Also, green roofs are easier to install and thus can be fitted onto existing buildings, while the more complicated rooftop gardens need to be incorporated into a building's design.

HDB and NParks first started their experiment on green roofs in July 2003 - four green plots on top of a multistorey carpark in Punggol East (Block 119, Edgefield Plains). The green plots totalled about 2,900 sq m, or over half the size of a football field.

The plots were found to reduce heat on the building's surface by as much as 18 deg C, and the surrounding air temperature by 3 deg C. Greenery on the roof cut down the glare reflected onto neighbouring blocks by as much as 15 per cent, while air quality nearby also showed slight improvement.

Ms Tay said that the green roof's lower costs and maintenance make it a good alternative to rooftop gardens, and will be used in some new multistorey carparks in future. If found to be workable, she added, the HDB could also convert the roofs of residential blocks, and the tops of existing carparks, into green roofs.

Mr Martin Ng, 29, a sales engineer who lives in a Punggol HDB block overlooking the experimental green roof, said: 'A rooftop garden would look nicer, but the green roof is less boring than a plain, flat roof, and not as hot.'

jq75

26-03-2005, 05:32 PM

The New Paper - 26 Mar 2005

HDB or condo? Soon you may not be able to tell

Your HDB flat may soon come with:

Underground carparks

Better furnishings

Built-in aircon units

Concealed wiring

Unique facade

Stylish landscaping
By Desmond Ng
desmondn@sph.com.sg

IS that a flat or a condo?

In time to come, it might be pretty hard to tell the difference.

After all, for the first time, private developers will soon be building and selling HDB flats in a pilot project.

The Ministry of National Development (MND) announced earlier this month that developers will be allowed to tender for the land, design, build and price the flats for sale under the new Design, Build and Sell Scheme (DBSS).

Previously, developers only provided architectural design and project management services under the Design & Build mode.

A 2.4ha plot of land - the size of 2 1/2 football fields - in Tampines Avenue 6 has already been earmarked for this project.

And it's one destined to succeed simply because the plot - which can yield 500 units - is in a premium location, a short walk from Tampines MRT station. The project has not been put up for tender yet.

So what does this mean for the home-buyer?

Expect more contemporary condo-like features, better furnishings and probably more innovative designs, said developers and property watchers.

Underground carparks may be a reality, but condo facilities like swimming pools are unlikely.

EXPERIENCE AN ASSET

Mr Eugene Lim, assistant vice-president of real estate firm ERA, said the developers' experience in building condos will be an asset.

He explained: 'Since they (developers) have been building condos all this while, you may see some condo design features.

'For example, the furnishings may be better and more contemporary, wiring may be concealed and air-con units for every room may become standard features too.' Developers may also be more willing to experiment with interesting layouts for the units, said Mr Lim.

For example, the bedroom doors for current flats usually open into the living room, but that could change.

Property heavyweight CapitaLand said earlier that home-buyers will benefit in the long run with the wider choice of homes.

And City Developments reckons private developers can inject new ideas and a different perspective into the design, construction and marketing of public housing, according to a Business Times report earlier this month.

And with their history in building HDB flats, construction company Poh Lian Construction feels that while home-buyers can look forward to more unique designs in the facade, layout and landscape, certain perks like air-con and built-in furnishings might not be possible.

The company's past projects include HDB apartments in Choa Chu Kang, Sengkang and condos such as Regentville and Hillville Regency.

Its general manager, Mr Tan Soon Kian, said: 'If it becomes too lavish, it will affect public housing prices. Once you give well-furnished homes, what's the difference between executive condos (EC) and HDB?

'Prices of ECs might start to drop and that could cause a ripple effect on the other types of housing.'

Mr Tan said certain public housing considerations might still apply.

For example, compared to condos, the corridors in HDB estates are usually bigger and more well-ventilated to promote interaction among neighbours, he said.

DISTINCTIVE DESIGNS

But he welcomes the new scheme.

He said: 'This (DBSS) is good. You'll have better designs which would be quite different from your ordinary Ang Mo Kio flats.'

So, does this also mean that prices for these units might be higher than your current new HDB flats?

Earlier this month, MND Minister Mah Bow Tan had ruled out price caps, saying Hong Kong had tried it, which resulted in developers skimping on construction.

But this pilot project will still be subjected to HDB rules where the household income ceiling is capped at $8,000 - which means developers can't price the units too high as affordability might become an issue. (See report at right.)

And since private developers are profit driven, they've to build something that can sell well to home owners, said Chesterton International's research director Nicholas Mak.

However, in their bid to provide better features, that can become a double-edged sword if developers cut corners or squeeze their sub-contractors who will use inferior materials, said Mr Mak.

He reckoned that the price may be closer to HDB resale prices, which are not subsidised, instead of new HDB prices. He added: 'Some people may be able to afford to buy, but would their flats appreciate? You buy high but your flat may not have room for appreciation.'

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Some HDB rules still apply

WHILE there's more room for the developers to manoeuvre, there are still certain guidelines in place too, said HDB.

For starters, the winning developer is free to set the sale prices and even throw in sweeteners like deferred payment or discounts, but they have to be in line with the Monetary Authority of Singapore's rules.

And since it is still public housing, the flats will be sold under the Housing & Development Act where the criteria such as family nucleus, a monthly income ceiling of $8,000 and ethnic integration policies still apply.

The other eligibility conditions are:

HDB will still give CPF Housing grants of $30,000 to $40,000 to first-time DBSS home buyers.

Second-time buyers won't have to pay the resale levy.

HDB will also provide concessionary loans to eligible buyers of DBSS flats.

And when the building is completed, the developer will pass the common areas back to HDB to maintain.

jq75

28-03-2005, 09:16 AM

March 28, 2005
Resident pressured to vote for lift upgrading
MY PRECINCT was recently given three days to vote on a lift upgrading programme (LUP). After the first day, HDB officers visited my unit to urge us to vote.

They appeared again on the afternoon of the third day. As I was asleep after working the night shift, I was unable to meet them.

Instead of leaving, they tried to persuade my illiterate mother to authorise a residents' committee member as a proxy to vote on my behalf.

What right did these officers have to do such a thing?

If they had succeeded, how could I be sure he would vote as I intended?

Later, when I went to vote, I was directed to a woman HDB officer seated at a table in the polling area.

She asked me how I intended to vote, which I trust was meant to be confidential. When I told her, she tried to convince me of the demerits of making a 'wrong' choice.

At the same time, I was suddenly surrounded by three men with no identification, who also tried to convince me to make the 'right' decision. One even said: 'Come on, you're throwing cold water over other people's heads!'

I was shocked and embarrassed by this remark in front of his colleagues.

When I had recovered, I told him I had the right to make my own decision and had my reasons for doing so.

He agreed but did not apologise.

I hope the HDB can shed some light on the behaviour of its officers.

Sundram Muthiah

redsky

28-03-2005, 03:16 PM

How come its not reportedon the news??

Rejuvenation of Clementi Town Centre
By mid-2010, the site at the Clementi Town Centre occupied by the existing bus interchange will be redeveloped into a modern 40-storey complex comprising:

- A new air-conditioned bus interchange, linked to the Clementi MRT Station for seamless transfer between transportation modes;
- A new Clementi Library and Town Council Office integrated with the bus interchange;
- A modern shopping mall; and
- About 388 units of new HDB flats.

2. This project will rejuvenate the Clementi Town Centre into a modern hub, and forms part of the overall estate renewal strategy for the area.

Bus Interchange

3. Construction of the new complex is expected to commence in end-2006. Before commencement of construction, the existing bus interchange will be relocated temporarily to the vacant site near Blocks 437 and 438 Clementi Avenue 3. The temporary interchange will be operational until the new air-conditioned bus interchange is ready.

Library

4. The new Clementi Library will be a community library offering a wealth of reading materials and information services. It will bring library services closer to residents and complement the Jurong Regional Library.

Town Council Office

5. The new Town Council Office at the complex will replace the existing office at Block 444 Clementi Avenue 3. The West Coast Ayer Rajah Town Council will ensure that there is no disruption of services during the relocation.

Shopping Mall

6. The new shopping mall will have a gross floor area of about 25,000 square metres, similar in size to West Mall in Bukit Batok. HDB plans to sell the commercial space en bloc, to a private developer for its operation and management. The new shopping mall is provided in view of the strategic location of the site and its potential catchment, and will complement the existing shops and market/food centre at the Clementi Town Centre, resulting in greater vibrancy in the area and more choices for residents.

Selective En bloc Redevelopment (SERS) Plan for Sold Flats

7. The complex will have 388 units of new 3-room, 4-room and 5-room HDB flats. These flats will be offered as replacements to lessees in the following sites that have been identified for SERS:
a) Blocks 436 to 438 Clementi Avenue 3
b) Block 445 Clementi Avenue 3

With these two new sites, the total number of sites identified for SERS since implementation in Aug 1995 is 55.

8. The blocks at these sites are about 25 and 26 years old with a total of 387 sold flats. The property profile and location of these blocks are attached as Annexes A and B.

9. Lessees in these two sites can also opt for 200 completed new 4-room and 5-room flats at Blocks 454 to 462 Clementi Avenue 3. A total of 588 new flats are hence available as housing for the affected SERS flat lessees. The replacement flats are all sited in prime locations, close to the Clementi MRT Station and bus interchange. They are also well served by a wide range of eating establishments, and marketing, shopping and entertainment facilities.

10.Eligible SERS lessees will be invited to register for their replacement flats in early 2006. (Please refer to Annex C for the implementation plans and Annex D for the package of rehousing benefits to be extended to lessees.)

Commercial Properties Involved in SERS

11.In addition, this SERS plan will also involve 8 sold shops, 6 rental shops and 2 rental eating houses at Block 445 Clementi Avenue 3. The lessees will be compensated based on the prevailing market value of their shops.

12.To facilitate comprehensive redevelopment, the rental commercial premises at Blocks 438, 442A and 444 Clementi Avenue 3 will also be cleared. HDB will grant eligible commercial tenants an ex-gratia payment of $60,000 per tenancy and a 10% preferential discount on their successful bid for other HDB rental commercial properties.

Information on SERS

13.To enable residents and commercial lessees to have a better understanding of the plans and benefits brought about by SERS, HDB will hold an exhibition on this SERS project as follows:

Date and Time Venue
Friday, 1 April 2005 to Thursday, 7 April 2005
2.30 pm to 9.30 pm Void deck of
Block 436 Clementi Avenue 3

14.HDB will also inform all SERS flat and commercial lessees individually. For further information, they can call the following toll-free enquiry lines:
a) 1800-866 3070 (for sold flats)
b) 1800-866 3073 (for sold shops/eating houses/rental shops/offices)
c) 1800-2255582 (for bus interchange)

jq75

29-03-2005, 12:24 PM

March 29, 2005
Cashback deals still rampant

Some home buyers try to pull off scam before new rule kicks in on April 1
SOME home buyers and agents are trying to sneak in cashback deals before a new HDB rule to prevent them kicks in on April 1.

Checks by the Central Provident Fund (CPF) board uncovered 11 probable cases. In all, the valuations of the properties that were submitted are much higher than those of similar flats in the area.

The board, which has since asked for independent valuations of the homes, said it came across the cases through its internal screening system and tip-offs.

So far, three cases have been assessed, and the original and new valuations differed by up to 40 per cent.

The CPF said its new lower valuations will be used instead to calculate how much the buyers can withdraw from the CPF accounts as well as the housing loans they will be eligible for. It will continue to monitor the applications submitted, it added.

In cashback deals, the price of a flat is inflated so the buyer can get a bigger housing loan. It allows the seller to find a buyer faster.

To prevent this, from April 1 those taking bank loans and using their CPF savings to buy a resale flat must appoint a private valuer assigned by the HDB.

Three real estate firms The Straits Times spoke to said the number of queries on cashback deals has dropped drastically since the new rule was announced in Parliament on Feb 18.

ERA Realty said that before this, eight out of every 10 calls it received were about cashback deals. Now, it gets two to three a day.

The agencies said they do not expect the new rule to put a stop to cashback deals but that the prices would be less inflated.

Anderson Property Consultants director Vincent Tan agreed.

For example, a five-room flat in Sembawang valued at $250,000 would be priced at $280,000, if both parties agree. It is hard to catch these players, he added, if there is a willing buyer and willing seller.

However, Dennis Wee Properties director Chris Koh pointed out it is usually the buyer who needs extra cash for renovations and cash downpayments. To get around the legalities, sellers offer to foot the bill.

He expects the situation to worsen when the cash downpayment increases to 10 per cent over the next few years.

He said: 'I have heard of people coming up with new methods to get around the problem.'

jq75

30-03-2005, 09:26 PM

March 30, 2005
HDB eases rules on minor renovation work

FROM Friday, owners of Housing Board flats can install a jacuzzi in their bathroom and put a false ceiling in their kitchen without getting approval from the board.

The HDB said these comprise minor and common renovation work, and will not affect the safety of a block of flats.

The changes are among 19 that no longer need a permit as part of an ongoing process to grant owners greater autonomy to renovate their flats.

It relaxed the rules on 41 items in October 2001 and 30 in September 2000.

With the latest changes, homeowners now have more leeway on 90 items or about 58 per cent of the original list of renovation works that require approval.

However, they must still engage only HDB-registered contractors for all renovations, which remain subject to conditions.

FROM HDB WEBSITE
HDB Relaxes Guidelines For Renovation Works In HDB Flats

With effect from 1 Apr 2005, HDB flat owners no longer need to seek HDB’s approval for 19 more renovation items to their flats.

2 The 19 relaxed renovation items are minor common renovation works that will not affect the safety of buildings. They comprise 17 building and 2 sanitary items. Although these works do not require HDB’s approval, they must still comply with the governing guidelines/conditions. The 19 items and the guidelines/conditions are listed in Annex A.

3 The relaxation is part of HDB’s on-going process to improve its services to the public. The previous relaxation was in Oct 2001 where flat owners were no longer required to seek HDB's approval for 41 renovation/electrical items carried out within their flats. HDB will continually review the guidelines based on relevant renovation trends and feedback from flat owners, renovation contractors and other building professionals.

4 Flat owners can refer to the HDB InfoWEB at http://www.hdb.gov.sg under “Housing Maintenance – Renovation & Maintenance” for detailed information on the list of 19 relaxed renovation items. Information sheets on these 19 renovation items will also be available at all HDB Branch Offices, Sales Section and Resale Section at HDB Hub.

5HDB would like to take this opportunity to remind flat owners that they are required to engage HDB registered renovation contractors to carry out the renovation works. They also need to comply with other relevant authorities’ requirements. These include engaging:
-Energy Market Authority (EMA) licensed electrical workers for electrical works and licensed gas service worker for gas service works;
-Public Utilities Board (PUB) Water Department licensed water service plumber for water pipe services;
-Building & Construction Authority (BCA) trained air-conditioner installers (if it is installed at the external of the flat) for air-conditioner installation;
-BCA-approved window contractors listed with HDB for installation/retrofitting of windows in HDB flats. In addition, flat owners are encouraged to engage a Singapore Plumbing Society's (SPS) registered plumber for sanitary works.

6 For renovation items not included in the exempted list, flat owners are still required to apply for renovation permits. This is to safeguard against unauthorized renovation works that, in serious cases, may affect the structural stability of the building.

Refer to HDB website for more info... :)

jq75

31-03-2005, 11:34 AM

March 31, 2005
Next mortgage rate hike may be around the corner
Banks may raise rates again, weeks after the last round, as cost of funds goes up further

By Azrin Asmani
HOME owners, already reeling from those mortgage rate rises a few weeks ago, should brace themselves for yet another increase.

The key benchmark three-month interbank rate has shot up by 0.125 percentage point to 2.125 per cent since last Wednesday. It was only 0.75 per cent a year ago.

Market observers said the rise will certainly create an impact on the property market, especially if the interbank rate breaches the 2.2 per cent mark.

This would be the trigger for banks to revise home loan rates.

The Singapore interbank offered rate (Sibor) is the level at which banks lend to each other and make up the cost of their funds. The surge here came after the Federal Reserve in the United States raised its interest rates by a quarter percentage point to 2.75 per cent last week.

'There should certainly be more rate hikes in the local housing loan market as banks here have to reflect the cost of their funds,' said Mr David Lum, banking analyst at Daiwa Institute of Research.

'And foreign banks are more likely to lead the local banks in raising their mortgage rates even further.'

Foreign banks are more vulnerable to the rising interbank rate because of their smaller pool of depositors here compared with local institutions.

Malaysian banking group RHB Bank is likely to lead the pack in raising mortgage rates.

'We are definitely monitoring the interbank rates very, very closely. It's as if we are using magnifying glasses right now,' said its head of consumer banking, Mr James Ng.

He said RHB would lift its mortgage variable rates by a quarter to half a percentage point once the interbank rate hits 2.2 per cent.

Its variable rate now stands at 4.25 per cent and its first-year variable home loan package is pegged at 1.88 per cent a year.

Other foreign banks, such as Britain's Standard Chartered Bank (Stanchart) and HSBC, also said they were 'monitoring the situation very closely now'. But both kept mum when asked if they were going to raise rates.

Stanchart surprised its customers a fortnight ago by announcing a second rate hike within three months.

It is by far the most aggressive in raising rates, as it has added a total of 0.85 percentage point since January, bringing its home loan rate to 3.85 per cent.

But market observers said local banks could also embark on a similar move, despite their larger pool of local depositors.

OCBC Bank's head of consumer secured lending, Mr Gregory Chan, said: 'We are indeed closely monitoring the situation and if the Sibor continues the uptrend, we will have to review the prevailing board rates.'

Two days ago, OCBC raised its board rates by 0.3 percentage point to 5.8 per cent.

jq75

31-03-2005, 10:30 PM

March 31, 2005
HDB launches new batch of premium flats
A PREMIUM batch of 374 new HDB flats in Sengkang are being offered for sale at the same time the Housing Board has pulled the plug on two planned housing projects in the area.

It is canning The Anthias, a 134 three-room and 600 four-room development of standard units in Punggol Drive, and Coral Green, the 655 four-room premium flat project in Fernvale Road because there is not enough demand for them.

Both were put on the market late last year on a build-to-order basis. However, the orders for them have not hit the necessary level which the HDB requires before it starts putting up the homes.

Only 63 per cent of The Anthias' units were taken up and 53 per cent of Coral Green's.

A division director of property agency Propnex, Mr Eric Cheng, said the low prices of resale four-room flats in Sengkang could have drawn buyers away from the HDB queue.

He estimated that one of these would be going for about $210,000 when fully renovated.

The two aborted developments are the latest casualties in the four-year-old build-to-order scheme. Two others have been scrapped, but nine have attracted enough interest to get the green light.

Part of another project - The Sundial in Punggol - was also canned because the response was not good enough.

jq75

01-04-2005, 09:09 AM

April 1, 2005
HDB apologises if its staff appeared pushy
I REFER to Mr Sundram Muthiah's letter, 'Resident pressured to vote for lift upgrading' (ST, March 28). Under HDB's Lift Upgrading Programme (LUP), residents who will benefit from the upgrading are required to vote and co-pay for the programme. HDB will carry out the works if at least 75 per cent of eligible households vote 'Yes'.

During the LUP polling exercise, HDB works closely with the upgrading working committee to explain the programme to residents so that they can make an informed decision. Residents are also encouraged to cast their votes, as a clear mandate is needed before the programme can proceed. Residents who are unable to vote in person can appoint a proxy to vote on their behalf.

A similar procedure was adopted when HDB conducted the polling exercise in Mr Sundram's precinct. Our staff had contacted members of Mr Sundram's household to encourage them to cast their vote. We had also explained that a proxy could be appointed if they were unable to vote in person.

At the polling station, our staff rendered the necessary assistance to Mr Sundram. We did so as some residents in earlier polling exercises had informed us that they were not familiar with the programme and its implications.

HDB understands that voting for the upgrading programmes is ultimately a personal choice. We respect the outcome of the poll.

We would like to apologise to Mr Sundram if our staff had come across as being over-zealous in their efforts to assist him during the recent polling exercise.

Thong Keng Wai
Head, Jurong West Branch Office
Housing and Development Board

jq75

02-04-2005, 04:13 PM

Plans disrupted with HDB's dropping project

Weekend • April 2, 2005

The Housing Development Board's decision to abandon its Built-to-Order projects, The Anthias in Punggol and Coral Green in Sengkang, has brought my fiancée and me much agony and anxiety.

We had applied for a flat and our plans are now all disrupted.

Yes, HDB has the right to decide whether to build or not, if the take-up rate is low.

The location was not ideal for us either, but we needed a house and had gone through a lot of hassle with forms, putting down a deposit and selecting a unit.

It was even more frustrating to learn about this development from the media instead of the HDB, which should have informed applicants earlier and given them alternatives.

The HDB's website didn't give us many answers.

We only hope that on transferring our application to the HDB's new Tivela BTO project in Sengkang, we will be given priority as existing applicants.

We hope to get married, but getting a home has not been easy for us.

Now, everything has been delayed and we have to start the process all over again.

jq75

02-04-2005, 04:15 PM

April 2, 2005
Home prices up on rate fears
Buyers rushing to avoid higher mortgage loan rates continue to push prices up

By Tan Hui Yee
HOME prices continued to inch upwards in the first three months of the year - traditionally a quiet period - as buyers tried to rush their purchases to avoid rising mortgage loan rates.

Flash estimates released yesterday showed that prices of resale Housing Board flats went up 0.19 per cent, while those of private homes climbed 0.6 per cent.

The marginal increase in the HDB resale market was generally expected, after the 1 per cent rise the previous quarter, said property sources yesterday.

Property agency ERA Singapore said there was a surge of activity last month as buyers tried to seal deals before tighter home-loan rules to curb cash-back deals took effect yesterday.

Under a cash-back deal, the buyer and seller of a flat collude to inflate its price so the buyer can get a bigger home loan.

The new rules require those using their Central Provident Fund savings to pay for their flat to have it assessed by valuers assigned by the HDB.

Housing agents said valuations given under this system tend to be lower than with a valuer assigned by a bank.

Since the size of a home loan is pegged to valuations or prices, whichever is lower, buyers who took a mortgage before yesterday are likely to have secured a bigger loan from the bank.

Now the new rules have kicked in, the big question in the market is whether HDB resale prices will continue to rise.

Mr Mohamed Ismail, chief executive of property agency PropNex, the biggest player in the HDB market, said yesterday: 'If they don't go up, it will mean the rises we've seen in the past few months were due to cash-back deals.'

Analysts said the latest rise in the private home market was a further sign of market recovery, though some lamented the rate of recovery as slow. The latest increase in the price index in this sector is the fourth in succession.

A director of property consultancy Chesterton International, Mr Nicholas Mak, suggested many home owners are waiting for prices to move higher before they sell their property, and so do not have the cash to buy a new one.

However, the head of research at Jones Lang LaSalle, Ms Feng Zhi Wei, said: 'The market is healthy and prices are holding up well.'

Still, she predicted that private home prices will rise by less than 1 per cent this quarter.

jq75

06-04-2005, 03:44 PM

HDB did write to flat applicants

Wednesday • April 6, 2005

I refer to the letter by Ms Chen Weilin Karen, "Plans disrupted with HDB's dropping project" (April 2–3).

We understand the disappointment of applicants when the take-up rate of flats under the Build-to-Order (BTO) exercise is insufficient for HDB to proceed.

When we launched The Anthias in Punggol and Coral Green in Sengkang in December last year, we had informed applicants that the advancement of the projects depended on the take-up rate.

For these two projects, we announced on March 31 this year our decision not to proceed. We wrote to the applicants on the same day. We also informed them that they could choose to transfer their application to the March 2005 BTO exercise.

They need not fill out a fresh set of application forms but instead need only complete the option form enclosed with our letter and return it to us by April 20, 2005. Their applications will be processed along with new applications submitted under the March 2005 BTO Exercise.

In the letter, we also included the contact numbers of customer service managers to help them with their specific queries and advise on other housing options available.

HDB regularly launches flats for sale by way of Walk-in Selection and Balloting Exercises. Families who need flats urgently can consider buying a completed flat offered in these exercises.

Alternatively, eligible first-timers can also make use of the CPF Housing Grant to buy a resale flat to set up a home.

We thank Ms Chen for her feedback. Our customer service manager will be in touch with her in case she has further queries.Letter from TAY KOON QUIE

DEPUTY DIRECTOR (SALES)

For DIRECTOR (ESTATE ADMINISTRATION & PROPERTY)

HOUSING AND DEVELOPMENT BOARD

jq75

07-04-2005, 09:39 PM

SINGAPORE : HDB flats built from this year will be covered under a new extended warranty scheme against major defects such as leakage and spalling concrete.

The ASSURE 3 scheme will give residents peace of mind as it will raise the Defect Liability Period from its current one year to a maximum of 10 years.

This was announced by National Development Minister Mah Bow Tan during his visit to HDB's first 40-storey blocks of flats in Toa Payoh.

New flats have not been free from defects.

Over the last four years, there were about seven cases of ceiling leaks and six cases of water seepage per 1,000 flats - all within five years from completion.

There were no reported cases of spalling concrete.

But with improvements in construction technology, HDB says it is now able to extend the warranty against such problems beyond the standard one-year Defect Liability Period.

The improvements include casting together pipes with the floor slab and precast window frames to minimise leaks, and using higher grade material to reduce the occurrence of spalling concrete.

The scheme covers three major defects starting from the date of completion of the blocks.

There will be a five-year warranty for leakages in toilets and kitchens, as well as seepage from external walls.

For spalling concrete, the warranty is 10 years.

Currently, flat owners are not allowed to change the floor tiles or tamper with the waterproofing system installed by HDB for three years.

Under the new scheme, they must not do so for five years, or else the warranty will cease.

Mr Mah called the extension a major change as HDB becomes the first developer to offer such long-term warranty.

And there is more good news for new flat buyers.

Mr Mah said: "There will be no extra cost involved on the part of the residents, that's the whole idea of an extended warranty, it is not like you buy a special warranty for an additional three years."

During the warranty period, HDB will inspect flats and common areas for defects and repairs will be caiired out free of charge.

"Anything that is free is good."

"I am happy because it will offer more security for the flat."

A new build-to-order housing project in SengKang will be the first to be covered under the scheme once construction starts. - CNA

jq75

07-04-2005, 09:47 PM

Spunky

08-04-2005, 01:22 PM

HDB take all the credit but contractors suffer. I wonder how many of its contractor stay around long enough to fulfil the 5 yrs warranty when some already cannot tahan during the construction!

jq75

11-04-2005, 09:00 AM

April 8, 2005
Longer cover for HDB defects
New flats get five years for ceiling and wall leaks, 10 for concrete faults

By Tan Hui Yee
NEW Housing Board flats will come with longer guarantees against defects - five years for leaking ceilings and water seepage through walls, and 10 years for spalling concrete.
Up until now, the flats came with only one-year warranties covering all three defects, which have plagued some HDB flat owners in the past.

Announcing the change yesterday, National Development Minister Mah Bow Tan said there would be no extra cost to buyers and flat prices would not be raised.

Spalling concrete, particularly, has been a frequent complaint among HDB dwellers, and HDB has fixed the problem in thousands of homes on a co-payment basis.

MPs raised the issue in Parliament in 2002, with some blaming shoddy design and workmanship, but the Government cited wear and tear as the main cause.

Spalling concrete occurs when steel bars embedded in concrete corrode and expand, causing cracks in walls and ceilings. Repairs for these defects can run into hundreds of dollars.

Now, if these problems occur in new flats, HDB will do the repairs free of charge.

'As far as I know, HDB is the first developer, private or public, which is able to offer such a long-term warranty for its projects,' Mr Mah said.

Most private developers offer only a one-year warranty against defects. Speaking to reporters when he visited two of HDB's first 40-storey blocks of flats in Toa Payoh, Mr Mah said that the longer guarantees were possible because better technology and materials were used now.

They will cover all projects launched for sale from this year, but do not apply to flats in projects launched earlier, or to HDB's stock of unsold flats.

Among the first to benefit will be the 374 buyers of flats in the build-to-order project called Tivela, in Sengkang, and the 388 buyers of flats in the Clementi Town Centre redevelopment project.

While HDB will repair defects that appear during the warranty period free of charge, it will not do so in cases where they are caused by renovations done by flat owners.

The five-year warranty for leaking ceilings in toilets and kitchens will be void if the floor tiles in the flat upstairs have been changed, or its waterproofing system tampered with. If the leak is found to have been caused by such renovations in the unit above, the owner of that upstairs unit will have to foot the repair bill.

Mr Mah said HDB's longer guarantee periods show its confidence in its improved building methods.

To prevent water seepage, for example, it started pre-casting entire toilets with all fittings in factories rather than on-site from the mid-1990s. Last year, it introduced pre-cast walls with window frames to prevent seepage.

Last year, there were 6.2 cases of water leaking through ceilings for every 1,000 flats under five years old, an improvement from 7.9 the year before.

The figure for water seeping in through walls was 6.8 cases for every 1,000 flats under five years old last year, better than 7.2 in 2003.

There were no cases last year or in 2003 of spalling concrete in flats less than five years old.

Analyst Nicholas Mak of property consultancy Chesterton International said the new warranties would be good for all home-buyers.

He said: 'HDB is putting pressure on private developers. Now that the HDB product is more attractive, developers may have to think of a way to improve theirs as well.'

--------------------------------------------------------------------------

HIGH ASPIRATIONS
SINGAPOREANS seem to love the idea of super-high-rise living, if the overwhelm-ing response to the first 40-storey public housing blocks in Toa Payoh Lorong 1 is anything to go by.

Some 2,000 people applied for the 200 flats up for grabs in Toa Payoh Towers, HDB's tallest apartments ever built, revealed National Development Minister Mah Bow Tan yesterday.

The homes are part of the 702 four-room flats and 224 five-room units in four blocks that were built under the Selective En bloc Redevelopment Scheme.

Under the scheme, new flats are built to replace the old ones torn down, with the surplus being offered to the public.

Four years ago, some people were uneasy about such high-rise homes, noted Mr Mah.

The highest blocks in the past rose no more than 30 floors.

But these misgivings seem to be disappearing now, as high-rise living catches on. In fact, units at the higher levels of Toa Payoh Towers were snapped up, he said.

The top few units have a stunning view of MacRitchie Reservoir and the Central Business District.

Other 40-storey blocks in Queenstown and Clementi town centre, as well as the Pinnacle@ Duxton, a 50-storey public housing development in Tanjong Pagar, are set to be completed by 2010.

Asked how safe these tall blocks were in light of the recent earthquakes that have hit the region, Mr Mah said there was no cause for concern, as they are built to withstand greater shocks than those that have reached Singapore.

jq75

11-04-2005, 10:10 AM

April 9, 2005
No need for HDB to cancel both projects
I AM utterly disappointed by the HDB's decision to call off The Anthias and Coral Green projects.

I got a unit at Coral Green during my day of selection. However, on March 31, I learnt from the news that the HDB had called off both projects due to low take-up rates.

At the same time, it launched a new Build-To-Order project, Tivela, with 374 units. The affected applicants from the abandoned projects were given a choice of transferring or cancelling their applications.

As the take-up rates for Coral Green and The Anthias were 53 per cent and 63 per cent respectively, the HDB could have easily continued with one of the projects and called off the other one.

The take-up rates, when combined, would have been enough for approval of one project. The HDB could have lumped the affected applicants together and perhaps done a reselection, thereby minimising the number of those affected.

If the HDB had done this, there would not be such a large pool of people 'fighting' for the 374 units of Tivela.

At the same time, has the HDB considered why the take-up rates were low for Coral Green and The Anthias? Could it have been because two Build-To-Order projects were launched at the same time?

We received the official letter from the HDB informing us of the cancellation of the projects only on April 2. By then, there were already many applicants for Tivela. And since the affected applicants were not given any priority, does that mean that they might not get a unit this time?

I hope the HDB can look into this matter and reconsider its decision to cancel the two projects.

Jael Teo Tze Hoon (Ms)

jq75

11-04-2005, 10:31 AM

April 11, 2005
Hefty HDB resale levy makes it hard to downgrade
THE existing Housing Board policies and current property market conditions make downgrading difficult.

Downgraders have to pay an exorbitantly high price for a smaller flat in the resale market as smaller flats are now in high demand.

Otherwise, they would have to pay a hefty resale levy if they intend to buy a second new flat from the HDB.

This policy applies to all HDB dwellers despite the fact that there are those who make no profit from the sale of their first flat. I am one of those owners.

I bought an executive flat from the HDB for $350,000. My flat is currently valued at also $350,000 by the HDB.

Due to family commitments, we've changed from a dual-income family to a single-income one, with my husband being the sole breadwinner.

We intend to downgrade to a four-room flat. But a resale flat that size would cost too much.

If we were to buy a second flat from the HDB, we would have to pay a resale levy of 25 per cent of the selling price.

Assuming we are able to sell our flat on valuation, the levy would be around $80,000.

Coupled with agent fees, administration and other miscellaneous cost, financially, it makes little sense for us to downgrade, as we may be worse off than before.

We do not buy low and sell high. In fact, by downgrading, we would have to sell low and buy high.

And we are 'stuck'.

Resale levy was introduced to curb speculation in the HDB resale market.

However, there are people like me who do not profit from the sale of our first flat.

Nevertheless, we are also subjected to a high penalty if, subsequently, there is a need for us to downgrade.

It would be fairer if HDB could review and calculate the resale levy based on profit rather than on selling price, with the percentage adjusted accordingly.

I agree that owners should bear certain responsibility when making their flat choices.

Hence, a reasonable minimum sum of levy may be imposed if the HDB thinks it necessary, as in cases where owners make losses.

This method is fairer as it would curb speculation and help prevent owners who are not speculators from being penalised.

As economic cycles become more unpredictable, prospective home buyers are now more cautious about buying big flats, and instead choose a unit that's within their means.

I hope the board would also allow existing flat owners to do likewise.

Market conditions have changed. There are enough policies on hand to keep speculation at bay.

HDB should keep its policy updated with current economic and market conditions.

Lee Lay Choo (Mdm)

jq75

11-04-2005, 10:54 AM

Good view, provided all lifts dun break down or power failure.. :s13:

April 11, 2005
LIVING IN TOA PAYOH'S 40-STOREY BLOCKS
On a clear day, you can see JB
Couple enjoy the penthouse view from their $240,000 four-room flat

By Krist Boo
RETIRED seamstress Chow Chee Peng, 64, squinted out of the window, looking for the clock tower.

Her husband of over 30 years, retiree Ow Kim Soo, 67, put a hand on her shoulder and pointed to the white column of Raffles Institution, the size of a matchbox on the horizon.

Since moving into their new four-room Toa Payoh flat a week ago, discovering new landmarks from their windows has become a daily pastime for the couple.

On a clear day, they can see MacRitchie Reservoir and enjoy a sweeping view of Bishan, stretching all the way to Johor Baru.

Likewise, their neighbours across them in the block enjoy a postcard view of the business district set against a misty backdrop of the Indonesian islands.

The Ows are among the first households to be living on the highest floor of Singapore's tallest HDB blocks to date - four 40-storey blocks housing 930 units at Toa Payoh Lorong 2.

The flats were launched by National Development Minister Mah Bow Tan last Thursday.

Madam Chow, speaking in Mandarin, said with a laugh: 'When the minister visited, he said we had a million-dollar view.

'We like it a lot. It's quiet. The air is good. And you don't have to worry about neighbours upstairs dirtying your laundry.'

It took the couple, who have no children, four years to ballot and wait for their new flat's completion. Their earlier flat, located nearby, was repossessed en bloc for redevelopment.

It has been worth the wait. Said Mr Ow: 'It's beautiful at night. You can see the lights of the buildings and cars.'

The 86 sq m flat cost them $240,000, a far cry from the $7,800 they paid for their first flat, a three-room unit, in 1968.

But they have no complaints about the price, which could have got them a five-room flat in another area.

From home, it is only about 10 minutes on foot to Toa Payoh Central. It is a 15-minute walk to the MRT station, and just five minutes more to MacRitchie Reservoir, where they go on their hour-long jogs on most days.

The ride up to their flat by lift - there are two - takes 40 seconds.

Being at the top has given the Ows what architects call the 'penthouse factor' for much less than the cost of a similar private development.

Two property valuers estimate that a condominium unit of the same size, in the same area, would cost between $400,000 and $500,000 - about twice the price the Ows paid.

Architect Goh Chong Chia said the skyscrapers boost the image of HDB living. 'You are living in an almost exclusive zone.'

Fellow architect John Ting said: 'The view is fantastic, the ventilation good. There are no mosquitoes, no cockroaches.'

The HDB should build more skyscraper flats at sites near parks and water, or at spots where heights make sense, he added.

With Singapore's population expected to climb from the current four million to 5.5 million in half a century, architects have long held that building upwards for HDB flats, where over 80 per cent of Singaporeans live, is one way to solve the land crunch.

The HDB is indeed going along that route. By 2010, it will launch the 50-storey Pinnacle@Duxton, seven blocks of flats near Tanjong Pagar MRT station.

Those will then be the tallest HDB blocks.

But it will still be dwarfed by private residential development The Sail@Marina Bay, to be completed by 2009, which will be 70 storeys high.

The Ows, who said they have slept 'like babies' since moving in, are advocates for more high-rise HDB flats.

Madam Chow said: 'When you get bored at night, just look out of the window, you'll forget your boredom or worries.'

jq75

11-04-2005, 06:14 PM

Changes announced to Main Upgrading Programme

SINGAPORE : Changes have been made to the Main Upgrading Programme, including billing residents only after the upgrading is completed and offering the space-adding scheme only to three- and four-roomers.

Making his rounds at Telok Blangah Crescent, National Development Minister Mah Bow Tan wanted to get a feel from residents if the MUP, completed in the area two years ago, was still relevant.

The answer was a resounding 'yes'.

Mr Mah took the opportunity to announce some refinements to the programme.

Residents will only have to pay for the upgrading once it is completed, not from when the results of the upgrading poll are announced.
Mr Mah said, "The time lag between billing and polling is four to five years, so this means effectively that the household will not be tagged and be considered as second timers until very much later. This will have benefits to more households, that they will not have to pay more for the second upgraded flat or not have to pay the levy."

The new policy will apply to projects announced from this year.

In more good news for residents, the upgrading levy will be abolished.

This means residents will no longer have to pay money back to the HDB if they sell their second upgraded flat.

Said Mr Mah, "I believe that this is a fairer system for the household that has been undergoing MUP, and we have revised this as part of our regular review and hope that this is a more equitable system."

In addition, the space-adding item, which could be an extra room, will only be offered to three- and four-room flat owners, in blocks which have a mix of flat sizes.

This is because few four- and five-roomers actually want the extra space; the support level among the four- and five-roomers has been less than six percent.

The Main Upgrading Programme was introduced in the early 1990s to inject life into old estates, such at the one at Telok Blangah Crescent.

Since then, more than 100 precincts have been upgraded. But Mr Mah says that due to budget constraints and a shifting focus on the Lift Upgrading Programme, fewer precincts will be chosen to be upgraded from now on.

In 2002, 10 precincts were chosen for the programme; last year only three precincts were chosen.

Flat dwellers welcome the push to have lifts at every floor.

"For elderly people to take the staircase is very dangerous for them. It's better to take the lift up," one person said.

The government will spend S$5 billion on the Lift Upgrading Programme over the next 10 years. - CNA

-------------------------------------------------------------------------------------------------

From HDB webby
Changes to the Main Upgrading Programme

1Minister for National Development, Mr Mah Bow Tan, announced several revisions to the Main Upgrading Programme (MUP) this morning. The revisions concern are: the treatment of households considered to have benefited from the upgrading subsidy, the upgrading levy and the offer of the Space-Adding Item (SAI) under the MUP. These changes are part of HDB’s regular reviews to ensure that its programmes remain relevant to residents’ needs.

Background

2 The MUP was introduced in the early 1990s to upgrade the homes and living environment of Singaporeans living in HDB estates. In particular, the MUP aims to bring the standards of older estates up to that of newer ones.

3 The MUP is heavily subsidized by the Government. The existing policies on treating households considered to have benefited from an upgrading subsidy and imposition of upgrading levy were put in place in response to concerns on speculation of upgraded flats in the earlier years of the MUP and to ensure an equitable distribution of upgrading subsidies.

4 In addition, the Space-Adding Item (SAI) is offered to households of all flat types under the MUP, on top of the Standard Package. For the SAI to be provided, at least 75% of eligible Singapore Citizen (SC) households in the precinct need to vote for the Standard Package, and at least 75% of the SC households in the block need to vote for the SAI.

Revised upgrading subsidy policy

5 Currently, a SC who is the owner of an MUP flat between the date of announcement of successful poll and the date of billing for upgrading is treated as having enjoyed one upgrading subsidy. If there is a change in the ownership of the flat during this period, both buyers and sellers are treated as having enjoyed an MUP subsidy.

6 With immediate effect, only the SC who is the owner of the MUP flat at the time of billing will be considered as having enjoyed the upgrading subsidy, since this is when the subsidy is expended. This revised treatment will apply to SC households in MUP precincts announced from MUP Batch 20 onwards, i.e. precincts selected in FY2004. It will also apply to MUP precincts which have been announced for upgrading, but not polled as of today.

7 A Singapore Permanent Resident (SPR) flat owner currently has to pay the full cost of upgrading at the time of billing after the completion of MUP works. He can claim reimbursement of the upgrading subsidy if he obtains Singapore citizenship within one year from the date of billing and the claim is made within one year on obtaining citizenship. There is no change to this policy for SPRs.

Upgrading Levy

8 Currently, an SC owner who sells his second or subsequent flat in a precinct which has successfully polled for MUP has to pay an upgrading levy based on 10% of the resale price. An SPR flat owner (from Batch 7 onwards) also has to pay a 10% upgrading levy when he sells his MUP flat in the open market before the date of billing for the upgrading cost.

9 The upgrading levy was imposed to ensure an equitable distribution of upgrading subsidies among SCs. By way of the levy, a smaller subsidy is given to SC households benefitting from the MUP for the second or subsequent time.

10This policy has been revised. Under the new policy, SC flat-owners will no longer be required to pay the upgrading levy. The Government has also aligned the treatment for SPR households. With immediate effect, the following groups of flat owners no longer need to pay the upgrading levy when they sell their MUP flat:

(a)SC owners who sell their 2nd or subsequent MUP flat (from Batch 7 onwards) if their resale applications are submitted on or after 11 Apr 2005; and
(b)SPR owners who sell their MUP flat (from Batch 7 onwards) if their resale applications are submitted on or after 11 Apr 2005.

11In addition, SPRs who do not wish to pay the full upgrading cost will no longer be allowed to sell their flats to HDB if they have already met the minimum occupation period to sell the flat in the open market.

Space-Adding Item (SAI)

12The support level for the SAI among the flat-owners of bigger flat types has been diminishing. In MUP Batch 17, 3 out of 17 blocks or 17% of flat-owners of 4- and 5-room flats offered the SAI voted for it. In Batch 18, only 2 out of 35 blocks, or 6%, of owners in 4- and 5-room blocks voted for it. Of the four Batch 19 precincts polled so far, only 1 out of 17 blocks of 4- and 5-room flats voted for it (5.9%).

13The SAI is an expensive option for both the Government and flat-owners. It costs about $18,000 per flat. Depending on the type of flat, SC owners enjoying the upgrading subsidy for the first time pay between $7,200 and $16,200 for the SAI, while Government’s share is between $1,800 and $10,800.

14In view of the budget constraints and the need to focus on lift upgrading, the Government has decided to offer the SAI only to blocks comprising 3-room flats, as these flats are in greater need of additional space. This will include mixed blocks comprising 3-room and 4-room flats. The new policy is will apply to precincts announced from MUP Batch 20 onwards.

Issued By : Housing & Development Board
Date : 11 Apr 2005

jq75

12-04-2005, 08:03 PM

From ST

April 12, 2005
No extra-room option for larger flats' upgrading
Money saved from unpopular option to go to lift upgrading

By Tan Hui Yee and Joyce Teo
OWNERS of larger Housing Board flats will no longer be offered an extra room under the upgrading programme, as the extra space has not been popular with four- and five-room apartment owners.

The money saved from this change will go into upgrading lifts and providing more lift landings in public estates, which is the Government's main priority now.

The Government will, over the next few years, roughly halve the number of precincts picked each year for the main upgrading programme, where flat interiors are overhauled.

These cutbacks will allow spending of an additional $100 million to $200 million annually on the lift upgrading programme, National Development Minister Mah Bow Tan said yesterday.

The Government is expected to spend $5 billion over the next 10 years to give lift access to every level within almost all public housing blocks.

Mr Mah, announcing the changes yesterday, said the main upgrading programme is still relevant as it lets older estates keep up with newer ones.

But the focus for the time being has shifted to lift upgrading.

The minister said that the number of owners of four- and five-room flats voting 'yes' to the extra space - about 6 sq m - has dropped in recent years. Just 17 per cent of the owners of such flats picked in the financial year 2000 said yes and that dropped to 5.9 per cent so far for blocks picked in the financial year 2002.

The extra space is expensive - about $18,000 per flat. Since it costs money even to prepare for the vote on such an option, it made sense to withdraw the option completely, said Mr Mah.

Besides, putting it to a vote when the extra space was unlikely to go through would mean that the minority who want the extra space feel put out, he added.

Seventy-five per cent of the flat owners in a block need to say yes for the extra space to be built.

The changes apply to precincts announced for upgrading from the financial year 2004.

Those living in three-room or smaller flats, who have so far given strong support for the extra space option, will continue to be offered it. This also applies to four-room flat owners who live in mixed blocks which also have three-room flats.

The chairman of the Government Parliamentary Committee for National Development and the Environment, Dr Amy Khor, said the changes were a result of feedback from the ground.

'The lift upgrading programme is more coveted,' she said.

Jalan Besar GRC MP Lily Neo said: 'I don't think residents will miss the option of additional space if it is cut from the bigger flats, as they usually have enough space.'

10% levies on resale waived
HOME owners whose second flat has been spruced up under the main upgrading programme will no longer have to pay a 10 per cent levy on the resale price if they sell it.

To make the upgrading policy fairer, the Housing Board will also waive the 10 per cent levy for permanent residents who sell their flats before they are billed for the completed upgrading work.

The levies were introduced in 1996 to curb speculation. However, since those who are getting their flats upgraded for the second time have to pay a higher sum for the upgrade, it makes sense to waive the levy, said National Development Minister Mah Bow Tan yesterday.

The owner of a four-room flat that is upgraded for the second time pays about $9,000 more than first-timers do for the basic package.

The levy has also been a source of unhappiness for permanent residents who cannot vote on the upgrading scheme, but do not get the upgrading subsidy given to Singaporeans if the vote goes through.

Yesterday, the HDB also changed the way it classifies owners of upgraded flats. Earlier, those who sold their flats while their estate was being upgraded were considered as having enjoyed an upgrading subsidy. This status will now be given to a home owner only when he is billed for the upgrading after it is completed.

The earlier method was based on the assumption that a flat's value rises the moment a block votes for upgrading. However, said Mr Mah, the real rise in value happens only after upgrading is done.

TAN HUI YEE

jq75

12-04-2005, 08:06 PM

April 12, 2005
Loan defaults: Banks repossessing flats

By Joyce Teo
BANKS are beginning to lose patience with owners of Housing Board flats who cannot repay their loans. These flats have long been almost immune to repossession, but that is changing.

Buyers of flats were allowed to use bank loans to finance their purchase from January 2003. Before that, flats could be financed only through the HDB.

Now, more than two years down the line, the banks' 'grace period' has run out.

The HDB maintained that only one flat has been put up by a bank for mortgagee sale, but the private sector said this is the case with several HDB flats. Mortgagee sales of flats by banks began some months ago and will continue, said property analysts.

These are mainly three- and four-bedroom flats and they are being sold quietly via private negotiations, they said.

Property consultancy Jones Lang LaSalle's national director Goh Chak Boon said fewer than 10 HDB flats have been put up for mortgagee sale so far this year.

While the banks stressed their priority is to help their clients - and this could involve restructuring the loan over a longer period - two top local banks acknowledged that there will be defaulters. The third, United Overseas Bank, declined to comment.

OCBC Bank, which took back one three-room flat last year because the owner voluntarily gave it up, did not reveal new figures.

But its head of consumer secured lending, Mr Gregory Chan, said: 'OCBC Bank recognises that there will always be customers who may encounter problems servicing their loans for various reasons.'

A DBS Bank spokesman said the bank has handled a few such cases since loans began to be offered in early 2003.

He said this trend will not change significantly, as the economy is expected to remain stable and the bank works closely with customers to identify their willingness and ability to repay, among other reasons.

However, property analysts think otherwise.

Property consultancy Knight Frank's director Mary Sai said HDB home owners who have taken bank loans could face rate increases and other uncertainties.

Mr Mohamed Ismail, chief executive of property agency PropNex, the biggest player in the HDB market, said there will always be people who will lose their jobs or face other financial difficulties. 'My gut feeling is that in 2005, there could be more than 30 or even 50 forced sales of HDB flats by banks,' he said.

'It is not an alarming figure, if you consider the number of HDB households, which is over 850,000 and the number who have taken up bank loans.'

Since January 2003, 50,000 bank loan applications have been processed, with almost $9 billion in bank loans disbursed, according to official figures.

A property agent who asked not to be named said that banks were fighting for market share in the first two years, but the 'dust has settled' and they are more careful in selecting customers.

HDB said earlier this month it has not evicted any mortgagor on the grounds of arrears in loan payments since January 2003.

'However, HDB recovered 10 flats last year after the ex-lessees and their family members abandoned or returned the flats to HDB due to default in mortgage payments,' it said.

Said PropNex's Mr Mohamed: 'In the years to come, the numbers will rise. Reality will set in as the banks have to answer to their shareholders.'

jq75

13-04-2005, 09:33 AM

April 13, 2005
Over 250 HDB home owners seek to sublet whole units
4- and 5-room flats popular but rentals largely unchanged with relaxed rules

By Joyce Teo
A MONTH after the Housing Board relaxed its subletting rules, more than 250 home owners have applied to sublet their whole flat.

Four- to five-room units are more popular, with demand coming largely from Chinese and Indian nationals, property agents said.

This is keeping rentals largely unchanged, or slightly lower.

The HDB said that between March 8 and April 4, it had approved 259 applications for the subletting of whole flats after the relaxed rules were announced in Parliament on March 7.

The revision allows owners to sublet their flat after occupying it for 10 years, even if they have an outstanding HDB loan. The previous limit was 15 years.

For owners who have no outstanding HDB loan, or have an outstanding bank loan, the minimum occupation period has been cut from 10 years to five.

In all, 537,000 home owners are allowed to sublet their whole flat, more than double the number allowed to do so under the old subletting rules announced in October 2003.

From October 2003 to February this year, HDB approved 2,689 flats to be sublet in their entirety.

Property agents had said last month that they expected most owners to remain in their flats.

'Interestingly, the market is not flooded, though supply has increased. There is always this practical issue of where to stay if home owners rent out their homes,' said Mr Eugene Lim, assistant vice-president of property agency ERA Singapore.

He said rentals have generally dropped by $100-$200 across all flat types. Because tenants are aware that more flats are available for rent, they tend to bargain, he said.

'Most landlords typically do not just grab any tenant... If the right one comes along, they are prepared to make some concessions to beat the competition,' he said.

However, other agents said that rentals are largely unchanged on stronger demand from Chinese nationals, followed by Indians, mainly working in technical fields.

Mr Eric Cheng, a division director of property agency PropNex, estimated that Chinese nationals account for about 40 per cent of the HDB rental market, followed by Malaysians and Indian nationals, who each take up 20 per cent of the market.

'Demand has gone up with more people coming here to work,' said Mr Albert Lu, managing director of property agency C&H Realty. 'In some central locations near MRT stations, rentals have even gone up a bit.'

Supply, meanwhile, has not shot up dramatically following the rule changes.

Mr Cheng said: 'If you own a three- or four-room flat, that is most likely the only home you have. There's a higher chance that those who own a five-room flat may buy a condo or move in with their children.'

Mr Lim said some home owners are also apprehensive about tenants damaging flats, which will mean spending on repair.

Home owner K.S. Chow, 72, who moved out of his fully paid-up four-room flat in Aljunied Avenue 1 to a nearby condominium, said he is toying with the idea of renting it out.

'But we are worried that other people will mess up the flat, if we rent out,' he said.

jq75

13-04-2005, 09:40 AM

Public living, private standards

Housing board introduces condo-style building service centres for new developments

Wednesday • April 13, 2005

Tor Ching Li
chingli@newstoday.com.sg

THERE'S more good news for buyers of new public housing flats. Not only has the Housing and Development Board (HDB) extended its building defects warranty recently, it has also made it easier for buyers to report the defects.

According to the HDB, all new projects from this year will come with an on-site Building Service Centre (BSC) that will be in operation for six months from the precinct completion date.

Previously, owners had to report defects covered under the Defect Liability Period to one of HDB's 23 branch offices. Now, they can approach the BSC within their precinct instead — similar to the service provided by newly-launched condominiums.

Said an HDB spokesperson: "New flat owners can expect a more convenient and faster service for inspection and investigation of repairs, as well as more prompt service."

There are currently seven such BSCs, six of which are operational.

The first pilot service centre was set up at Blk 112C Depot Road last August to serve six other surrounding blocks.

"These service centres were introduced to improve our service standards. Feedback from the residents has been positive so far," the HDB spokesperson added.

Each centre is staffed with three officers from HDB's property consultants and the main contractor and are open six days a week.

In addition to repairing building defects, the service centres also help new homeowners to identify them.

"The service centre loans out simple tools to allow flat owners to conduct simple checks, such as the hollowness of tiles and levelling of the floor," said the HDB spokesperson.

It also provides other useful technical information on renovation guidelines and application, purchase of building materials, flat maintenance and a list of recommended renovation contractors.

jq75

14-04-2005, 10:44 PM

HDB resale valuations appear to have dipped in wake of new rule

SINGAPORE : Valuations of HDB resale flats appear to have fallen, after a new rule took effect under which only HDB-approved valuers are allowed to estimate the value of resale flats.

The move was taken to help counter illegal cashback practices, in which buyers declare an inflated purchase price to snare a bigger housing loan.

Data from housing agency ERA Realty show that average valuations in several HDB estates have dipped by up to 3 percent.

But industry players say it is still early days, and point out that lower valuations do not necessarily mean lower selling prices.

Generous valuations of resale flats appear to be a thing of the past.

In the two weeks of April since the new rule kicked in, ERA Realty found that average valuations have dipped.

For example, a three-room flat in Clementi is now valued at S$170,000, down 2.8 percent, from the first quarter.

In Marine Parade, valuation for a five-room flat is S$400,000, down 2.4 percent.

Overall, average valuations appear to have dipped by about 1.5 percent.

But industry players say lower valuations do not necessarily lead to lower selling prices.

"People's outlook will determine whether they buy above or below valuation. If HDB-assigned valuations do in fact become lower, and people are buying at valuation, over time, we may see HDB price index adjusting downwards. But if the market holds and people, because of positive outlook, are willing to pay at valuation, or above valuation, then the price index may go up," said Eugene Lim, assistant vice president at ERA Realty.

Property consultancy Chesterton International says how HDB resale prices move will depend very much on how widespread the cashback malpractices were, and how effective the HDB clampdown is.

"If the cashback schemes are very significant, and the HDB clampdown is very effective, we could possibly see the reduction in the HDB resale price index. However the effect is likely to be spread out, over about two quarters. In the short term, we may just see a bit of stabilising, perhaps HDB resale prices going flat," Nicholas Mak, director of research and consultancy at Chesterton, said.

Then again, there is no stopping buyers who are willing to pay prices far above valuation.

But ERA says the industry has its own checks and balances to scrutinise suspicious transactions.

"Whenever they submit a transaction, typically we have a system of checks. If there is any suspiciously high transaction we will actually have some internal investigations about what's going on," Mr Lim said.

For now though, the message appears to be getting through.

ERA says it no longer receives queries about cashback deals over the phone. :s8: - CNA /ct

sunsetbay

15-04-2005, 12:16 PM

HDB flats' resale values down

Fm TODAY, Friday • April 15, 2005

VALUATIONS of Housing and Development Board (HDB) resale flats appear to have fallen, after a new rule — under which only HDB-approved valuers are allowed to estimate the value of resale flats — took effect.

The move was taken to help counter illegal cashback practices, in which buyers declare an inflated purchase price to snare bigger housing loans. Data from housing agency ERA Realty shows that average valuations in several HDB estates have dipped by up to 3 per cent.

In the first two weeks of this month, for example, a three-room flat in Clementi was valued at $170,000, down 2.8 per cent from the first quarter. In Marine Parade, valuation for a five-room flat was $400,000, down 2.4 per cent. Average valuations appear to have dipped by about 1.5 per cent.

However, industry players pointed out that lower valuations did not necessarily mean lower selling prices. "People's outlooks will determine whether they buy above or below valuation," said Mr Eugene Lim, assistant vice-president at ERA Realty.

"If HDB-assigned valuations do become lower and people are buying at valuation, over time, we may see the HDB price index adjusting downwards. But if the market holds and people, because of their positive outlooks, are willing to pay at or above valuation, then the price index may go up."

Property consultancy Chesterton International said how HDB resale prices would be affected depended on how widespread the cashback malpractices were, as well as how effective the HDB clampdown is. — Channel NewsAsia

jq75

18-04-2005, 10:02 PM

HDB flat resale levy to continue: Mah Bow Tan

SINGAPORE: National Development Minister Mah Bow Tan has said the Housing and Development Board will continue its policy of imposing a resale levy on HDB flats.

Potong Pasir MP Chiam See Tong had asked that all resale levy related to HDB flats be waived.

But the minister said the levy was to ensure that first-timers enjoy public housing subsidy.

"It is a payment imposed on those who buy a second subsidised flat from HDB, after they have sold their first subsidised flat. The resale levy reduces the subsidy on the second flat, thus ensuring that public housing subsidy is given more to first timers who have not yet enjoyed any subsidy," Mr Mah told parliament.

Mr Chiam also wanted to know if the resale levy could be waived for those who make a loss when they sell their HDB flat, or if it could be charged as a percentage of the profit made.

But the minister rejected the idea.

He said: "The resale levy is not a tax to cream off any profit from the sale of the first flat. It is payable only if a lessee buys a second subsidised flat from HDB.

"Those who buy private housing or a resale HDB flat, will not have to pay the levy. They can keep the full sale proceeds from their first subsidised flat."

In the case of those affected by the Selective Enbloc Redevelopment Scheme (SERS), Mr Mah said HDB lessees need not pay a resale levy if it is their first subsidised flat.

However, if it is their second or subsequent subsidised flat, they can choose to convert the resale levy into a premium on the price of the new flat.

Those who are eligible for the additional $30,000 discount under the SERS can opt to forgo this discount, but pay the levy.

This effectively caps the levy at $30,000 :)

jq75

20-04-2005, 09:45 AM

jq75

21-04-2005, 12:24 PM

April 21, 2005
Why two HDB projects scrapped
I REFER to the letter by Ms Jael Teo Tze Hoon, 'No need for HDB to cancel both projects' (ST, April 9). Under the Build-To-Order (BTO) System, interested buyers apply for a specific project, which HDB will proceed to construct only if the majority of the units are booked. This is to prevent a build-up of unsold flats.

As the take-up for both The Anthias in Punggol and Coral Green in Sengkang was insufficient, HDB decided to abort the two projects.

Ms Teo suggested that we could have called off only one project, pooled both groups of applicants and conducted a re-selection for the remaining project. This would mean the original applicants of the remaining project having to go through another booking cycle and compete with applicants from the aborted project.

Because the projects are in different locations, and have different design attributes and selling prices, applicants from the aborted project may not necessarily want to switch over. Others may prefer to apply for other projects, such as the Tivela offered in the March exercise.

In the interest of fairness and practicality, HDB felt that it would be better to abort both projects. It gave affected applicants the option of transferring their application to Tivela without the need to resubmit another application and pay the administrative fee again. All applications for the Tivela, including applications transferred from Coral Green and The Anthias, will be balloted afresh according to their eligibility.

Tay Koon Quie
for Director (Estate Administration and Property)
Housing & Development Board

jq75

21-04-2005, 12:41 PM

HDB levy quandary

Thursday • April 21, 2005

Letter from Leong Sze Hian -- regular letter writer :s13:

I refer to the report, "Resale levy on HDB flats to continue: Mr Mah" (April 19). The minister said the HDB resale levy could not be waived, even if you were selling your HDB flat at a loss.

I have a friend who is facing financial difficulties and wants to downgrade to a smaller flat. However, he will suffer a loss because his flat is worth less than the purchase price. To top it, he has to pay the resale levy. If he cannot pay the levy, he cannot downgrade; he must buy from the resale market.

As a taxi driver with no CPF contribution, the price differential between a new flat and a resale flat will not alleviate his cash-flow problems. For a resale flat, he will also have to take a bank loan, which he does not qualify for.

He has not been able to pay his monthly mortgage instalments on and off for about 10 years and his loan balance keeps getting larger.

So, what should he do? Wait for the casinos to come and try his luck?

jq75

21-04-2005, 08:29 PM

6 HDB blocks in Holland Drive identified for SERS

SINGAPORE: Six blocks of flats in Holland Drive and Holland Avenue have been slated for redevelopment under the Government's Selective Enbloc Redevelopment Scheme (SERS).

This brings to 56 the number of sites identified for the programme since its implementation 10 years ago.

The six blocks - Blocks 14 to 17, 22 and 23 - are about 31 years old.

Residents of the 821 units involved will be re-housed in new flats the Housing and Development Board will be building at nearby Holland Drive.

HDB says eligible lessees will be invited to register for their replacement flats in the middle of next year.

The redevelopment plan will also involve 11 shops at Block 15, Holland Drive.

Lessees will be compensated based on the prevailing market value of their shops.

Eligible shop tenants will be given ex-gratia payment of $60,000 per tenancy and a 10 percent preferential discount on their successful bid for other HDB rental commercial properties.

The Buona Vista Community Club at Holland Drive and Buona Vista Swimming Complex will also be relocated.

HDB will hold an exhibition next week to explain the plans to residents and others involved in the scheme. - CNA/ir

jq75

24-04-2005, 01:31 PM

After Toa Payoh... Its Holland

April 22, 2005
Holland Drive to get 40-storey blocks
Area to be redeveloped, but residents left out complain to MP

By Tan Hui Yee
THREE 40-storey blocks are set to rise in Holland Drive as part of a redevelopment plan involving some 800 households near Holland Village.

But home owners in two nearby blocks left out of the redevelopment have complained to their Member of Parliament Lim Swee Say. They are worried that the value of their flats will go down when the new blocks come up and want to be included in the programme.

The redevelopment, announced yesterday by the Housing Board, involves three-, four- and five-room flats as well as shops in blocks 14 to 17, 22 and 23 there. The blocks are about 31 years old.

People living in these blocks will be relocated to the four spanking new high-rise blocks just across Holland Drive, three of which will be 40 storeys high. The project should be complete by 2010.

But residents from blocks 20 and 21 in Holland Drive, just next to where the new 40-storey blocks will be sited, were upset yesterday when they learnt they were being excluded.

More than 100 residents packed an activity room in Buona Vista Community Club last night to ask Mr Lim if he could persuade the Housing Board to reconsider its plans.

Mr Lim later told The Straits Times that he would do his best to convey their concerns and request to the HDB.

One resident, Ms Jacinta Tan, 50, described the moment she was told her block had been excluded: 'It felt like they had dropped a bomb on us.'

The news to redevelop the Holland Drive precinct comes just one month after the HDB announced its plan for a massive redevelopment of the Clementi town centre, which will get a 40-storey complex with a shopping mall, library, town council office and air-conditioned bus interchange linked to the MRT station.

Under the Selective En-Bloc Redevelopment Scheme (Sers), old flats are demolished to make way for new ones nearby, in order to maximise land use. The Holland Drive precinct is the 56th that has been identified for redevelopment since the scheme began 10 years ago.

As part of the Holland Drive plan, the current Buona Vista Community Club will be relocated to the site currently occupied by Block 36, where a HDB branch office is located now. The new club will be housed in an integrated complex comprising HDB shops.

The Singapore Sports Council, meanwhile, is looking into a suitable replacement for the Buona Vista Swimming Complex, which will be phased out after 2010.

Eligible home owners affected by the redevelopment plans will be guaranteed new flats nearby at a discount.

The HDB will also compensate home owners and shop owners according to the prevailing market value for their properties.

Homeowner C.S Yee, a 40-year-old manager, welcomed the plan as it would give him a new flat nearby without much of a hassle.

He said: 'I don't want the inconvenience for the two years when my flat is upgraded.'

jq75

24-04-2005, 01:33 PM

April 23, 2005
Resale HDB prices edge up with more deals sealed

By Tan Hui Yee
PRICES of resale Housing Board flats crept up slightly in the first quarter of this year as home buyers likely scrambled to avoid rising interest rates and new anti-cashback rules.

Prices of flats that changed hands from January to March crept up 0.09 per cent, while the number of flats sold surged almost 30 per cent from the same period last year.

Quarterly figures released by the HDB yesterday showed that 7,029 home buyers registered their resale applications, compared to 5,480 in the first quarter of last year.

Property agencies ERA Singapore and C&H Realty both cited the impending end of the cashback phenomenon as a major reason for the leap in sales.

Under a cashback deal, the buyer and seller of a flat declare a higher price, usually backed up by a bank-assigned valuer, so the buyer can secure a larger loan. The proceeds are then split between the buyer, seller and agent.

New rules that kicked in at the start of the month require those using their Central Provident Fund to pay for their flat to have the property assessed by HDB-assigned valuers. Agents say these valuers tend to give lower valuations.

As the size of a home loan is pegged to valuations or prices, whichever is lower, buyers taking loans before April 1 would likely have received a bigger bank loan.

From January to March, the average valuation of three-room flats dropped 0.1 per cent to $166,700. Five-room units dropped 0.6 per cent to $309,700, while executive flats dropped the most, by 1.6 per cent to $371,000. Only four-room flats bucked the downward trend, creeping up 0.6 per cent to $233,800.

All eyes are now on the next quarter's sales, when anti-cashback rules are expected to curb any artificial inflation of demand.

C&H's managing director Albert Lu expects the next quarterly average valuations to drop by about 5 per cent.

ERA said: 'Barring unforeseen circumstances, we expect resale volume to continue to increase.

'However, if resale volume decreases despite positive sentiments, this could be evidence the resale volume in the past quarters was propped up by cashback deals.' :s8:

jq75

25-04-2005, 09:16 AM

April 25, 2005
Wide variation in HDB flat valuation
I AM in the process of selling my executive maisonette.

A valuation was done on the unit by an HDB-approved valuator in February. When the valuation report was out, I was surprised that the value was $10,000 lower than the lowest sales transaction in the past three months, as published in the HDB portal then, for units in my block.

I could only take it as a sign of more conservative valuation by HDB-approved valuators in the light of bad publicity on illegal cashback deals.

After my flat had been on the market for three months, it remained unsold and the valuation report was about to expire. Another valuation was done.

To my horror, this time the valuation was lower than the previous valuation by $30,000 even though my flat was documented in the report as well renovated and maintained.

A check of the HDB portal showed that the most recent sale transaction this month for a unit in my block, of the same floor area and storey range, was sold at $50,000 more than my latest valuation.

The variation in valuation is so great, I cannot help but wonder about the transparency of criteria used, rigour of control and objectivity of the valuation process by HDB-approved valuators.

Goh Siok Hoon (Ms)

--Past transactions are least 2 months old figures.. 1st HDB valuation was much lower than lowest transacted.. However 2nd valuation was even lower than previous valuation for the same property... terrible.. how to sell at a good price??

jq75

26-04-2005, 07:41 PM

Have some HDB guidelines on renovation work been tightened?

Wednesday • April 20, 2005

On March 30, the Housing and Development Board (HDB) relaxed guidelines on 19 items for renovation work. Yet, my recent experience suggests that rules on other renovation work items are being tightened unnecessarily.

I applied for a renovation work permit through my HDB-registered contractor. The HDB declined to approve the work, for the following reasons:

First, the hacking of one wall. According to the HDB's floor plan, this wall can be removed. We did not propose removing any beams. Second, the laying of laminated flooring. Ironically, my cement screeding is being done by HDB.

I understand one consideration is the structural stability of the building. But these two items do not pose any danger to the structure.

These common renovation items normally get approved immediately. But HDB seemed to require between one to two weeks for approval, which puzzled me.

Is there standardised criteria for determining which renovation items can be approved immediately and which require further study and for how long? If so, could I have access to it? All house owners would appreciate a fair and transparent approval system.

Ho Lai San

Relaxed rules apply to minor renovations

Tuesday • April 26, 2005

I refer to Ho Lai San's letter "Have some HDB guidelines on renovation work been tightened?" (April 20).

The writer commented that renovation rules seemed to be tighter, despite the recent relaxation of guidelines, and asked if there are standard criteria used in the approval process for different types of renovation items.

The recent relaxation is part of the Housing and Development Board's (HDB) ongoing efforts to provide better services and facilitate the renovation process for HDB flat owners.

The relaxed guidelines apply to minor common renovation work that will not affect the safety of buildings and hence, does not require HDB's approval. More information is available on the HDB InfoWEB at www.hdb.gov.sg and in the HDB Renovation Guidebook.

Renovation items that require a permit from the HDB fall into two broad categories: "standard" and "non-standard".

Approval is immediate for standard renovation items. For non-standard items, approval is given within a week if the application is submitted electronically.

Flat owners can check with their HDB Registered Renovation Contractor for advice on whether a renovation item is standard or non-standard, or visit the HDB InfoWEB.

In Ms Ho's case, the renovation involved removing a wall and laying laminated flooring. Removal of a wall is a non-standard item, as any improper removal may affect the stability of the unit or building.

Hence, it is necessary for the HDB to check and confirm that the hacking or removal of the wall will not compromise the structural and fire safety aspects and other relevant building regulations.

In this case, the contractor submitted the application on April 18 and the renovation permit was issued on April 21, within three working days. As for the laying of the laminated flooring, it does not require prior approval as it is a minor renovation work.

Ms Ho could call Principal Technical Officer Mr Chua Sim Beng at 6490 2280 if she requires further clarification.

HDB welcomes feedback from flat owners, contractors and other building professionals, and will continue to review the renovation guidelines regularly to keep pace with renovation trends and to provide greater autonomy and flexibility for flat lessees to renovate their flats wherever possible. We thank Ms Ho for her feedback.

Mike Chan Hein Wah

Deputy Director (Housing Maintenance)

For Director (Housing Administration)

Housing and Development Board

jq75

27-04-2005, 10:53 AM

HDB, help troubled and single parents

Wednesday • April 27, 2005

Letter from Willie Tan

I REFER to the reports, "Resale levy on HDB flats to continue: Mr Mah" (April 19) and "HDB levy quandary" by Mr Leong Tze Hian (April 21).

My sister bought a five-room flat before the financial crisis. After her marriage broke down, she had to sell her flat at a loss. Now, as a single working mother, she is looking forward to a flat of her own to settle down with her child.

Her requests for a housing loan were rejected because no bank wanted to take the risk on a single-income family. So, her only solution is to get a loan from HDB.

She was told she could only upgrade to a bigger flat to enjoy the loan and she had to pay a levy in cash.

Tot can opt out? Just buy a resale..?

My sister is not rich and all her resources have been channelled to her son. How can she afford the levy, let alone the high price of a bigger flat?

An HDB customer service officer told her to rent a flat. Is this the only solution for my sister?

I hope the HDB can consider removing the levy as well as letting those in dire straits, or single-parent families, downgrade to a smaller flat. Alternatively, can the HDB let them pay the levy by instalments or via their CPF?

jq75

29-04-2005, 09:08 AM

April 29, 2005
HDB offers to look into variation in valuation

I REFER to the letter, 'Wide variation in HDB flat valuation' (ST, April 25), by Ms Goh Siok Hoon. Valuation of flats is carried out by qualified private valuers from the HDB's Panel of Private Valuation Firms that are licensed by the Inland Revenue Authority of Singapore.

The valuation is conducted in accordance with established principles and market practices. Assigned valuers have to conduct a comprehensive valuation, including a visit to the flat, before a report is submitted to the flat owner.

As the valuation report takes into account prevailing market conditions and judgments of existing evidence, a slight difference in valuation across time and different valuers is possible.

Nevertheless, the private valuers are fully accountable for their valuations. HDB cannot influence them in the performance of their professional duties.

Any appeal is referred to the same private valuer who will conduct a review of the valuation, taking into account any new market evidence if these are available.

If Ms Goh would like us to look further into her case, she can contact my colleague, Ms Khoo Bee Bee from HDB resale section, on 6490-3620 and provide us with the particulars of the flat.

Gopal Singh
Head, Valuation & Alienation for Director
(Estate Administration & Property Department)
Housing and Development Board

--------------------------------------------------------------------------------------------------
April 29, 2005
Why resale levy on second new flat

IN THE letter, 'Hefty HDB resale levy makes it hard to downgrade' (ST, April 11), Madam Lee Lay Choo suggested to calculate the resale levy based on the profit made from selling a flat, rather than the selling price.

All flats sold by HDB are priced below their prevailing market values. Hence, we need to impose a resale levy on those who buy a second subsidised flat, to reduce the subsidy on the second flat.

This ensures a fair allocation of subsidised flats between them and first-timers, who have not yet enjoyed any subsidy.

The resale levy applies only if a lessee buys a second subsidised flat, and is not intended to be a tax on the profits from the resale of the first subsidised flat.

The levy rates are set lower for lessees of smaller flats as they have a greater need to upgrade.

For owners of larger flats who wish to downgrade to a smaller flat, there is a wide range of resale flats in various locations and of different prices to suit their budget. They do not need to pay the resale levy if they purchase a resale flat.

Nevertheless, HDB recognises that there may be cases where a flat owner facing financial difficulties may require further assistance and will evaluate them based on the merits of each case.

We would like to thank Madam Lee for her feedback. We will consider various public feedback in our regular reviews of housing policies.

Leong Chok Keh
Deputy Director
(Policy and Property) for Director
(Estate Administration and Property)
Housing and Development Board

jq75

30-04-2005, 06:40 PM

April 30, 2005
Lifts upgrading OK for low-rise blocks if work not done
Residents can vote if work in precinct has not been completed

By Tan Hui Yee
RESIDENTS in low-rise blocks within estates where lift upgrading had started before the scheme was extended to them have not missed the boat.

They will be able to take a vote and get lift stops on every floor, along with their counterparts in the high-rise blocks, if construction work in their precinct has not been completed.

Announcing the change yesterday, National Development Minister Mah Bow Tan said the idea was to ensure that residents in the area will not have to put up with noise and other inconveniences twice, if the lift upgrading is offered later to the low-rise blocks. He was speaking at the launch of polling for the upgrading of lifts and common areas of blocks 267 to 271 in Tampines Street 21.

The change comes one month after the Government announced that it would extend the lift upgrading programme to low-rise blocks, four years after the scheme was first introduced. Low-rise blocks are those that are five storeys high or lower.

From now on, lift upgrading will be offered to eligible low-rise blocks which are located within or near to precincts that have been picked for the main upgrading and lift-upgrading schemes, as long as construction work has not been completed there.

Dismissing a suggestion that this was an election sweetener, Mr Mah said the move could save residents a wait of six months to a year.

More than 90 low-rise blocks stand to benefit. There are 3,000 high-rise and 800 low-rise housing blocks that still do not have lifts stopping on every floor.

The Government aims to complete lift upgrading for all eligible blocks within 10 years.

Last week, residents of three low-rise blocks in Yishun Street 22 - 267, 268 and 271 - became the first to vote on lift upgrading for such blocks.

A total of 97 per cent of eligible home owners said yes, more than the 75 per cent approval rate required.

Last night, Mr Mah was also asked why a recently announced redevelopment project in Holland Drive did not include two nearby blocks.

Under the Selective En-Bloc Redevelopment Scheme (Sers), old blocks are torn down to make way for new ones nearby, to intensify land use.

Mr Mah said that for blocks to fit the criteria for Sers, the value of land cleared by the redevelopment had to be higher than the compensation paid to home owners asked to vacate their flats. In the case of blocks 20 and 21 Holland Drive, this did not turn out to be so.

Following residents' appeals, HDB is redoing its sums to see if the two blocks can be included.

jq75

01-05-2005, 02:32 PM

Uplifting news for Tampines low-rise block residents
Weekend • April 30, 2005

FOLLOWING an announcement in March that the Housing Development Board (HDB) would extend lift upgrading to low-rise blocks, Minister for National Development Mah Bow Tan had more good news for HDB residents on Friday.

At a Tampines GRC block party, he said: "We have also decided to offer lift upgrading to eligible low-rise blocks located within or near to announced Main Upgrading Programmes, Lift Upgrading Programmes (LUP) and Interim Upgrading Programme (IUP) Plus precincts where the construction works have not been completed."

This will avoid causing disturbance to the residents twice if lift upgrading were to be offered to low-rise blocks separately. More than 90 low-rise blocks stand to benefit from this arrangement, he said.

Five low-rise blocks along Tampines St 21 will be the first in Singapore whose residents get to vote alongside high-rise residents for lift upgrading.

Residents of the five-storey attachment at Blk 271 will be the first to benefit from this new policy should more than 75 per cent of them vote in favour of IUP Plus.

Introduced in 2001, IUP Plus is a two-in-one programme offering both interim upgrading — such as covered linkways and amenities — and lift upgrading. Other than lifts on every floor, the Tampines LUP will also include a new video system in lifts.

Last week, residents along Yishun St 22 were the first to go to the polls for lift upgrading in their low-rise blocks, with a landslide 97 per cent saying yes.

To date, over 1,000 blocks have been selected to have lifts stopping at every floor. The Ministry of National Development aims to complete lift upgrading for all eligible blocks by 2015. — Tor Ching Li

------------------------------------------------------------------------------------------------
Over 2,000 units of Jurong flats for sale in walk-in selection

SINGAPORE : The HDB is launching 2,184 units of 4-room and bigger flats for sale under its latest walk-in selection exercise.

The flats are located in Jurong West and Jurong East towns.

Those interested can visit the roadshow and on-site Sales Office at the open space along Boon Lay Way, opposite Jurong Point in Jurong West town.

An exhibition has also been put up to provide useful information on the flats for sale.

There are also free guided bus tours to take passengers around Jurong West with stopovers at the new show flats.

Bookings of the new flats will be held on-site from 8am to 5pm daily.

As at 5pm on Saturday, HDB said it had issued some 600 queue numbers to the some 1,000 people who visited the exhibition.

The walk-in selection exercise of flats in Bukit Panjang and Choa Chu Kang will be temporarily suspended from May 9 to take stock of the balance of flats and prepare for the next launch exercise in July.

Interested buyers looking for a flat in these two towns have up to May 7 to make their bookings.

Flats in other non-mature towns such as Hougang, Punggol, Sengkang, Sembawang and Woodlands will continue to be available for bookings.

jq75

01-05-2005, 02:36 PM

May 1, 2005
PROPERTY
Flats in old estates top price charts
Queenstown, Bukit Merah and Toa Payoh flats are the priciest as newer units come with all amenities ready

By Jeremy Au Yong
QUEENSTOWN is once again Singapore's costliest estate, with four-room, five-room and executive flats fetching top prices, according to the latest Housing Board figures.

Four-room units, the most popular type among buyers, cost $296,500 in Queenstown - $17,000 more than similar units in central areas. In most other towns, four-room flats are valued between $200,000 and $230,000.

The estate - one of the oldest in Singapore - includes areas like Tanglin Halt Road, Stirling Road and Commonwealth Avenue. It has now been near the top of valuation charts for the past five years. Property agents say it's hot because of location, amenities and shrewd government planning.

Said Mr Mohamed Ismail, chief executive of property agency PropNex: 'Queenstown has quite a few things going for it. It's very near the city, has lots of amenities, and has had some new developments only between seven and 10 years old.'

He added: 'Since these blocks matured and came onto the resale market, Queenstown has been getting very good valuations.'

In contrast, he said former high-price areas such as Marine Parade and the central areas have had no new HDB flats for more than 20 years.

Dennis Wee Properties director Chris Koh agreed, saying prices in those popular estates have probably already topped out.

He said: 'Valuation here is very dependent on age. With 20 to 30 years gone on the 99-year lease, the price is going to drop.'

Mr Eugene Lim, assistant vice-president of ERA Singapore, summed up Queenstown's unique potential: 'New flats in a mature estate. You can get the design and layout of new units in an area where all the amenities like MRT are already there.'

Queenstown's premium prices are matched only by the adjacent Bukit Merah - where four-room units cost $291,600 - and Toa Payoh, where such units go for $285,500. Bukit Merah shares much of its neighbour's appeal in terms of location and amenities, while Toa Payoh is popular as it is developing into a regional hub.

It is no accident that these three towns are topping the charts price-wise.

In 1996, they were among the first few estates selected for renewal under the Selective En-bloc Redevelopment Scheme. Old blocks in these estates were demolished, and residents were offered new homes nearby. The extra flats were sold off to new residents eager to live in mature towns. The idea was to optimise land use and provide more housing to attract new families to older estates.

The opening of the Housing Board's headquarters in Toa Payoh in 2002 has also helped the estate develop into a regional centre.

Despite the high asking price, agents say they have had no problems selling Queenstown flats. PropNex agent Nurjahan Abdul Majid, 32, said she had easily sold five flats in the area over the past three or four months.

But if you want to live in these estates without paying the premium, Mr Lim says there are bargains to be found. 'Within estates like Bukit Merah and Queenstown, not all the flats are the same age. You can get older ones at a cheaper price.'

As an example, he said the Telok Blangah area in Bukit Merah has old four-room units going for about $220,000.

Even those willing to pay top dollar must still do their sums, said Mr Mohamed. 'Because of interest payments, if you buy a flat for $400,000 and sell it 10 years later, you need to get $500,000 for it so you don't lose money. To sell a flat for $500,000, you'd better be sure it has desirable features - on a high floor, good view and well renovated.'

jq75

03-05-2005, 08:17 AM

Hidden cash back deals? :D

May 3, 2005
Who governs real-estate agents?
MY HUSBAND and I recently bought a resale flat. After the transfer of ownership, both the seller and ourselves found a discrepancy in the selling price, with the difference going to agent commission. Being first-time home-buyers, we trusted the agent and signed the documents. We are now obliged to pay the agent.

We approached HDB for help, but as the deal had been completed, it was not able to assist us. We called the Inland Revenue Authority of Singapore, which licenses agents, but it does not deal with the technicalities of transactions.

We called the Institute of Estate Agents (IEA) as the agent had the IEA logo on his namecard. However, he is not a member.

Who governs real-estate agents? Anyone who is buying or selling a resale flat should meet the seller/buyer before signing documents.

Ong Hse-Yin (Ms)

jq75

03-05-2005, 08:24 AM

Fairness guides use of levy: HDB

Tuesday • May 3, 2005

I refer to Mr Willie Tan's letter, "HDB, help troubled and single parents" (April 27).

HDB flats are subsidised and the resale levy helps to reduce the housing subsidy enjoyed by flat owners who are buying a second subsidised flat from the Housing and Development Board.

This ensures a fairer allocation between those who have already enjoyed one subsidy and those enjoying it for the first time.

The Government's priority is to help first-timers buy a flat to set up their first home as early as possible.

The resale levy is not a tax to cream off any profits in the resale of the first subsidised flat. Hence, flat owners who have enjoyed a housing subsidy do not need to pay the resale levy if they do not buy a second subsidised flat from the HDB.

Other than new HDB flats, there is a wide range of resale flats of various sizes, locations and prices available to second-timers.

Generally, those who have sold off their larger HDB flats can use the proceeds to finance the purchase of another flat. They are advised to buy one that is within their means.

Those who are not financially ready to do so can consider alternatives such as renting.

The writer suggested that the HDB allow the resale levy to be paid in instalments or using CPF savings.

CPF monies can be used to pay the purchase price of the flat as well as to service the housing loan taken out for the purchase.

However, as the resale levy does not form part of the purchase price, it is prohibited to use CPF monies for this purpose.

For those who face genuine financial problems, the HDB may consider allowing them to pay the resale levy in instalments on a case-by-case basis.

As for loans from the HDB, the HDB provides mortgage loans at concessionary interest rates to first-time flat buyers setting up home and second-time buyers who are upgrading to bigger flats to meet their housing needs.

Nevertheless, we understand that there may be a small number of second-timers facing financial difficulties who need to buy a smaller flat.

For those from this group who cannot obtain a loan from the banks, HDB may consider granting a second concessionary loan on a case-by-case basis.

For help or advice on this matter, the writer or his sister are invited to contact my colleague, Ms Irene Tang, Senior Executive Estates Officer, at 6490 3624.

jq75

05-05-2005, 08:29 AM

Warranty can't be extended to new flats already tendered out

Thursday • May 5, 2005

Letter from TAY BOON SUN
Senior public relations officer
for Ag director
Corporate development
Housing & Development Board

I refer to Ms Janica Chan's letter, "Why does extended HDB warranty only benefit flats built from this year?" (April 22) and Mr Quek Hwa Hwee's letter "Aspella should have extended warranty" (April 23).

The writers asked why HDB was providing an extended defects warranty only for new HDB flats and whether the longer warranties can be extended to the Aspella Build-To-Order (BTO) project.

HDB is offering an extended warranty scheme covering three major types of defects — namely ceiling leak, external wall seepage and spalling concrete — as a result of improvements in building technology and methods.

These improvements include pre-casting window frames and water pipes in factories instead of installing them on-site to better prevent ceiling leak and seepage.

HDB is, therefore, able to offer longer guarantees for new flats built according to these revised methods.

The Aspella BTO project was announced in December 2003.

As the tender for Aspella had been awarded and construction works have already started, changing the revised construction method now will affect the construction cost and timing of completion of the flats.

Hence, HDB is unable to extend Assure 3 to this project and other new housing projects which have already been tendered out.

Ms Chan asked how HDB would address the problems of defects in existing flats.

For existing completed flats, buyers are given a standard one-year warranty covering all types of defects, similar to the industry practice.

After the defects liability period, flat owners are required under the lease agreement to maintain the flat and repair any defects.

However, HDB can assist flat owners to investigate defects on a goodwill basis if they arise soon after the expiry of the defects liability period.

If the defects are the result of poor workmanship, HDB does carry out free repairs.

If the defects are due to normal wear and tear, it is the flat owner's responsibility to repair the defects.

Ms Chan can contact the Branch Office managing her flat for help to investigate the defects in her flat.

We thank both writers for their feedback.

jq75

05-05-2005, 08:33 AM

May 5, 2005
$185 for parking van: HDB explains
I REFER to Mr Tan Kay Lai's letter, '$185 parking fee for this van' (ST, April 26).

HDB residential carparks primarily serve cars driven home by residents. Unlike sports-utility vehicles that are registered as passenger cars, goods vehicles are, strictly speaking, commercial vehicles.

Under the Parking Places (HDB) Order 2000, the season parking charge for a motor vehicle (not being a motor car) with unladen weight exceeding 1,500kg is $185 per month.

We thank Mr Tan for his feedback and will consider it in our review of the parking scheme.

Eng Soh Seng
Deputy Director (Carparks)
For Director (Housing Administration)
Housing & Development Board

jq75

05-05-2005, 10:55 PM

CASE wants buyers' two-week protection to be tightened

SINGAPORE: Some property agents are depriving their HDB buyer clients of their right to a two-week 'look-see' period.

They do this by asking the buyers to sign both the purchase agreement and option form at the same time, without informing them of their right to back out within two weeks.

The Consumers Association of Singapore says that in at least eight cases so far this year, this malpractice has led to disastrous consequences for the clients.

It is calling on property agencies to put a tighter rein on their agents.

In addition, CASE wants the Housing Board to implement administrative safeguards regarding the two-week 'look-see' period.

Madam Jaliah's fate was sealed when she signed both the option form and purchase agreement at the same time.

The 46-year-old security guard had agreed to pay $210,000 for a 3-room flat at Ang Mo Kio.

But when friends told her the price was too high, she wanted out of the deal and approached CASE for help.

She said the agents did not tell her about the two-week protection.

"My friends ask me, 'are you sure or not? $210,000.' My friends checked up in the computer.....The price, only $160,000," Madam Jaliah said.

"Because I also not educated.....just Secondary 2 only," she added, in broken English.

It took the sharp eye of Ms Mary-Ann Tan, CASE's head of consumer relations, to notice that both the option and purchase agreements were signed on the same date.

CASE then went through its records, and found seven other similar cases.

The association believes this could just be the tip of the iceberg.

In most cases, buyers find out that something is not quite right only
after they have committed themselves by signing the purchase agreement.

The flats they have agreed to buy are mostly either due for upgrading works, or have been grossly over-priced.

Most are not aware of the two-week grace period until CASE points it out.

"The consumers were concerned that they have entered into a contract which is less than ideal. They wanted to rescind the contract. But they could not because they have already signed the purchase agreement. They are saying that if they had been given these 14 days, they would have decided otherwise," said CASE's executive director Seah Seng Choon.

CASE says it is holding property agencies responsible for their agents' malpractices.

But it also hopes that the Housing Board can help to nip the problem, by not allowing sales and purchase agreements to go through without follow-up queries if they have been signed on the same day.

HDB can also state clearly on the option and purchase/sales agreement forms that buyers are entitled to a two-week 'look-see' period

Option Period :)

--------------------------------------------------------------------------------------------

Case highlights 'look-see' rights

Friday • May 6, 2005

Some property agents are depriving their Housing Board buyer clients of their right to a two-week "look-see" period.

They do this by asking the buyers to sign both the purchase agreement and option form at the same time, without informing them of their right to back out within two weeks.

The Consumers Association of Singapore (Case), which has seen at least eight cases this year, wants property agencies to put a tighter rein on their agents. In addition, Case wants the HDB to implement administrative safeguards regarding the two-week "look-see" period.

The consumer watchdog was alerted to the malpractice while assisting Madam Jaliah, 46, a security guard.

She had wanted out of a property deal after friends told her that the price she paid for a three-room flat at Ang Mo Kio was too high.

Case went through its records, and found seven other similar cases. The association believes this could just be the tip of the iceberg. In most cases, buyers were not aware of the two-week grace period until Case pointed it out.

Case also hopes that the HDB can help by not allowing sales to go through without follow-up queries if they have been signed on the same day.

It can also state clearly on the option and sales agreement forms that buyers are entitled to the "look-see" period. — Channel NewsAsia

jq75

08-05-2005, 04:06 PM

May 7, 2005
Downgraders in a trap
HOUSING Board home owners who wish to downgrade seem in a quandary. There are no known studies to give a fix on just how many households are doing this out of necessity to conserve funds or to adjust to financial setbacks. But there is a problem. A recent Forum page letter on downgrading woes could be indicative of a trend. The HDB should gather data to come up with an appropriate market response that is fair to consumers and to itself as the trustee and executor of public housing. A confluence of circumstances is implicated in the money-trap phenomenon - shorter economic cycles; new buyers and downgraders holding back owing to uncertain job prospects; property as an investible asset not quite recovering its bounce. Downgraders who decide to buy resale could find the most popular room configurations pricey. If they opt for second new flats, the resale levy can make the deal non-viable. Those who own executive flats, like the correspondent, will have to pay back 25 per cent of the selling price. Without much exaggeration, she laments downgrading for her family would be a case of selling low and buying high. Her suggestion that resale levy be set as a percentage of the profit from the sale has met with resistance from HDB.

Its explanation is logical: As HDB flats are priced below market value, the resale levy is a self-adjusting instrument to reduce the subsidy on the second flat. It is not intended to be a tax on profit from the sale of the first subsidised flat. The levy ensures fairness to new buyers who have not yet enjoyed any subsidy. But there is a crucial market factor it did not address. This is the surplus stock of some 10,000 unsold flats. Property speculation feeding off taxpayer-funded subsidy is no longer a problem. Resale levy thus worked as a counter-speculation mechanism as much as anything else cited by HDB. The board could be forthcoming on whether resale levy is immutable as a matter of policy, or is more of a market instrument. This should take into account the fact the board has not had success flogging off unsold flats to bulk buyers like Nanyang Technological University (for student housing) and private developers (to turn into condos). If the levy is not immutable, and quicker disposal of the overhang is considered desirable, an adjustment such as setting lower rates can be considered if it would make downgraders bite

vinz

10-05-2005, 10:26 PM

Case highlights 'look-see' rights

Friday • May 6, 2005

Some property agents are depriving their Housing Board buyer clients of their right to a two-week "look-see" period.

They do this by asking the buyers to sign both the purchase agreement and option form at the same time, without informing them of their right to back out within two weeks.

The Consumers Association of Singapore (Case), which has seen at least eight cases this year, wants property agencies to put a tighter rein on their agents. In addition, Case wants the HDB to implement administrative safeguards regarding the two-week "look-see" period.

The consumer watchdog was alerted to the malpractice while assisting Madam Jaliah, 46, a security guard.

She had wanted out of a property deal after friends told her that the price she paid for a three-room flat at Ang Mo Kio was too high.

Case went through its records, and found seven other similar cases. The association believes this could just be the tip of the iceberg. In most cases, buyers were not aware of the two-week grace period until Case pointed it out.

Case also hopes that the HDB can help by not allowing sales to go through without follow-up queries if they have been signed on the same day.

It can also state clearly on the option and sales agreement forms that buyers are entitled to the "look-see" period. — Channel NewsAsia
HDB initial intention for the two weeks period to exercise is for the buyer to check his eligibilty for the bank loan.
That's what been told to me by a HDB officer when they started this <<Bank Loan>>.

It is actually not for the intention for a "look-see period" for the buyer to happily back out if he doesnt want to buy or change his mind.

As buyer of HDB flats are all consider adults under Singapore's law, they are deem to have already find out/check all necessary information before they signed on the dotted line.

(buyer are deem to have know the market price, and know whether the purchase price is higher than the market price or not)

And furthermore nowadays, most agents/buyer will already had check out their loan eligibilty (if they are taking bank loan) before they start looking to buy a house.

(Buyers can check with bank on their maximum loan amount before proceeding to view any house, if bank doesnt approve their loan due to credit problems, then I think the buyer wouldnt even be bothered to go looking for a house.)

It does happen that a buyer viewed a unit, decided to confirm his purchase on the same day, knowing very well his own financial status is ok for him to proceed as he had done the neccessary checks with the bank or HDB.

And of cos usually in this scenario, the seller is willing to accept a lower deposit as he knows that the seller wont back out due to the "look-see" period.

It is unfortunate that some sellers/agents decided to mislead the buyer into purchasing a house at a very high place. (That is why its better to look for a agent whom you think you can trust, usually referral from friends/relatives etc.)

Just my two cents worth.
vinz

michael8330

10-05-2005, 10:47 PM

It is unfortunate that some sellers/agents decided to mislead the buyer into purchasing a house at a very high place. (That is why its better to look for a agent whom you think you can trust, usually referral from friends/relatives etc.)

Just my two cents worth.
vinz

i dont think now a day , the buyer are so easy to'mislead' to buy at high price, esp. very thing is quite transparent ...
just an excuse to back out from deal.
what is the best way to back out from deal? point finger at agt and said "the agt mislead me"
u thought go to market and buy fish , we are talk abt 200k for average hdb flat..
cheers
my 0.0002 cents worth of thought :)

michael8330

10-05-2005, 10:52 PM

forget to add, we have draft letter(by lawyer) and stated that the buyer are enter into the otp with open eye within the same day and not been'pressure' by seller or agts, but the complains still come in.
'i did not read , the agt give me sign , i just sign.'
why they never sign 5% or 10K commission to my company , i wonder.(sigh)

vinz

10-05-2005, 11:01 PM

ya, left right center, always the agent kenna...

hahaha

now at least everyone knows agent's job not so simple.
want to earn the commission must first do everything correct, if a single ting wrong,
then kenna liao.

michael8330

11-05-2005, 09:33 AM

jq75

11-05-2005, 09:09 PM

HDB rejects CASE suggestions for safeguards on option period for property sales

SINGAPORE : The Housing and Development Board has turned down suggestions for safeguards on its two-week option period for selling and buying property.

The Board said it would not introduce measures to delay or disallow sales and purchase agreements for HDB flats - even when both the option and purchase agreement forms have been signed on the same day.

The Consumers Association of Singapore (CASE) had said that property agents may be flouting the so-called "two-week cooling off period" by asking clients to sign the option and purchase agreement forms at the same time.

If you are looking to buy an HDB flat, it is possible that some property agents may get you to sign both the option and sale and purchase agreement forms at the same time.

It is also possible some may not tell you that you have the right to a two-week period from the date of the option to decide if you will eventually sign the sale and purchase agreement for your intended property.

Channel NewsAsia reported last week that there have been a number of cases where property agents have not informed their clients about the two-week cooling off period, thus depriving them of the right to exercise it.

CASE said it had come across at least eight cases and has asked the HDB to implement administrative safeguards.

Mr Seah Seng Choon, Executive Director of CASE, said: "Consumers may need the time to actually do a search. They may need the time to find out if there is any upgrading that will be done to the particular flat that they are buying, and if there is upgrading they may not have enough cash to participate. They may want to withdraw from the purchase."

CASE has called on HDB not to allow sales and purchase agreements to go through without follow-up queries, if they have been signed on the same day.

It has also asked for the look-see period to be stated clearly on the option and purchase/sales agreement forms.

In response, the HDB said it had no legal right to delay or stop resale transactions, which involve private sale and purchase agreements.

It does not consider rules that prohibit the exercising of the Option to Purchase, or OTP, on the first day.

But it decided not to proceed to avoid inconveniencing genuine buyers.

HDB also said the authority did not receive any complaints of buyers being unaware of the option period.

On providing warning notices on Option to Purchase forms, HDB said it was not appropriate to have such warnings because these are contractual documents.

But CASE disagrees.

Mr Seah added: "I would like the HDB to reconsider the decision...it would be good to highlight in one sentence on the top of the acceptance form to say that they have this right not to sign the acceptance form on the same day. It will draw consumers' attention to this particular benefit they have."

For now, HDB said would study the eight cases brought to CASE.

It will also monitor the situation and will conduct a review if the problem is found to be widespread. - CNA/de

jq75

11-05-2005, 09:14 PM

even u do all thing correct, u will till get it.....
:)

michael8330, vinz

hi pals, i appreciate ur kind feedback in this section, however we try to avoid making this sticky like another discussion thread...

shld u feel u need to voice out anything, feel free to start another thread on this topic..

no offence.. :)

i seek ur understanding

jq75

12-05-2005, 12:18 PM

Communal facilities at new HDB car parks

Thursday • May 12, 2005

I REFER to Ms Vivien Tan's letter, "Build heartland 'care-parks' to honour President Wee" (May 4). Ms Tan suggested building social/communal facilities on the top decks of HDB multi-storey car parks (MSCPs).

Facilities such as day care/after-school centres, senior citizens corners and fitness corners for the elderly are already provided in every HDB estate. The void decks of residential blocks can also be converted to such uses when required.

This is more practical than adding the facilities onto existing MSCPs, which are designed for parking only and may require structural retrofitting in order to support the extra loading.

However, where it is feasible, such facilities have been incorporated on the top decks of new MSCPs. An example is the proposed Neighbourhood Link, which will serve as community gathering points for the young and old in new housing projects in Geylang and Queenstown.

HDB will continue to work closely with the Ministry of Community Development, Youth and Sports to ensure that there are sufficient social/communal facilities in HDB housing estates to meet residents' needs.

We thank Ms Tan for her feedback.

Letter from Tay Boon Sun

Senior Public Relations Officer

for Director (Corporate Development)

Housing & Development Board

jq75

12-05-2005, 12:22 PM

Parking systems with 10-min grace period

Thursday • May 12, 2005

I REFER to Mr Kee Seng Hong's letter, "Give 10 minutes' allowance for parking charges" (May 3).

Mr Kee said he was held up in a queue of cars and by a red light at a pedestrian crossing, while exiting from the HDB car park at Toa Payoh Central, which was installed with the Electronic Road Pricing (ERP) Parking System. He felt that motorists should not be charged for time spent finding lots and queuing to exit the car park. He suggested that 10 minutes be deducted from the total time spent in the car park from entry to exit.

As the ERP Parking System is an advantage over the coupon parking system, which charges on a time-block basis, we feel there is no further need to adopt the suggestion. Instead, ERP or other automated parking systems using Cashcards or magnetic strip cards, sometimes provide a grace period of 10 minutes for motorists who need to run errands or drop off passengers.

Similarly, HDB practises this 10-minute grace period and motorists will not be charged if they leave the car park within 10 minutes.

Nevertheless, we will consider Mr Kee's feedback when reviewing our parking charges system. We thank Mr Kee for his feedback.

Letter from Eng Soh Seng

Deputy Director (Car Parks)

for Director, Housing Administration

Housing & Development Board

jq75

13-05-2005, 08:17 AM

No-cash-back rule hits HDB market

Friday • May 13, 2005

Shobha Tsering Bhalla
shobha@newstoday.com.sg

FALLING property valuations in the Government housing sector have led to a big drop in business in the resale market over the past month, according to some experts.

Compared to a month ago, business has dropped by as much as 80 per cent, say property agents.

And even Singapore's largest real estate agency, Propnex, has not been immune to the sudden slide.

Said Propnex chief executive officer Mohamed Ismail: "Current HDB valuations are lower than their own valuations a month ago — by about 10 to 12 per cent.

It's not a one-off affair — there are many, many cases. It's substantial enough to be very concerned."

Like others in the business, he thinks the drop in valuations stems from the new Government ruling, which stipulates that only HDB-approved valuation experts will be allowed to value resale HDB flats.

The ruling came into effect on April 1 to combat illegal "cash-back" deals, where buyers/sellers inflated prices in order to facilitate higher loans and buyers then received cash back for paying a "higher" amount for the flats.

"Business overall has dropped 80 per cent. Lawyers and top agents who used to close 15 to 20 deals a month are now closing only three or four at most," said Mr James Lee, senior associate director at ERA.

He said this was bound to affect the private property market, as it was the HDB upgraders who gave it impetus.

"How can the private market move when the volumes and prices of HDB flats have dropped so much?" he asked.

With valuations of HDB flats dropping by as much as 12 per cent and with the cash component for down-payment raised to 4 per cent since January this year, it has become a "lose-lose situation" as people are unable to sell or buy, he added.

The sudden "erosion" of wealth has left homeowners and agents fuming and flummoxed.

"Three months ago, the HDB valuation for a five-room flat at Jurong in the Block 900 series was $235,000 and now we've just received a new valuation for exactly the same kind of flat which shows a drop of 10 per cent," said Ms Hayati Maskuri, an agent with Propnex.

Said ERA's Mr Lee: "It begs the question: How do HDB appointed valuers evaluate property? Because, if you ask any property agent, they will tell you that valuations are falling across the board."

But Mr Chris Koh, a director at Dennis Wee Realty, believes the current situation is a natural outcome of the new ruling — a market correction brought on by the eradication of cash-back deals.

"With sales prices being inflated, naturally the valuations were higher as the valuers were using the transacted prices as reference. Now that the cash-backs deals have been removed, we are seeing a true reflection of the real prices," said Mr Koh.

The HDB says the "valuations take into account prevailing market conditions and judgements of existing evidence".

"It is normal for different valuers to ascribe different values for the same property even at the same point of time. A variation of up to 10 per cent in assessed value is acceptable for the valuation industry."

But industry insiders are not convinced. They question what they see as the HDB's continuing stranglehold on a market that was supposed to be open to market forces.

"I thought the idea was to make it more market driven but the HDB is going back on its own principals," said ERA's Mr Lee.

One property lawyer who entered the HDB market two years ago when it was liberalised is so disheartened by the situation that she is quitting the market. "I'm just sitting out my lease. Volume has dropped so much and business is completely listless. The market is no longer subject to market forces as it's controlled by the HDB. I don't think the HDB's philosophy is bad, they needed to prevent cash back deals, etc. But then they shouldn't have said they wanted to throw it open to market forces. Everybody – the banks and lawyers – have been burnt."

But not everyone agrees. Some experts believe the valuation anomaly is a temporary phase. Knight Frank's executive director of consultancy & research Tay Kah Poh said it would pass "once the market comes to terms with this new regime." "In that respect, it's unlikely that the private property market will be affected in any sustained way," he said.

:o

jq75

13-05-2005, 08:23 AM

New HDB valuation rule puts buyers and sellers in tight spot
Friday • May 13, 2005

FROM April 1, under the new HDB requirement, the minimum cash downpayment to buy a resale HDB flat, amount of CPF withdrawal and housing loan from banks will all be calculated based on the resale transacted price or the valuation by a HDB-assigned valuer, whichever is lower.

The new rule is to curb any illegal cashback practices.

However, it could also make the first-time homebuyer have to pay out much more cash.

And it makes it more difficult for the owner to sell the flat if the valuation is under the fair market price.

For example, a friend is getting married and is looking for an HDB flat in the resale market.

They found a HDB 3-NG flat selling for $170,000.

However, its valuation report rated it at only $152,000.

Let's say, after negotiation, the agreed-on price is $165,000.

It means up front, one would have to fork out a minimum in cash of $20,600.

Take into account the renovation and furniture costs and the total cash outlay for the new homeowner would be up to $40,000.

Singapore Permanent Residents, who are only eligible to buy a house from the resale market without a Government grant, would find things even more difficult.

The new policy is well intentioned. But its implementation heaps difficulties on both the buyer and the seller.

While the policy puts emphasis on the "true" HDB flat valuation, how will the system ensure such valuation truly reflects the flat's market worth?

Letter from Jin Xin

jq75

14-05-2005, 10:10 PM

Why 17% valuation disparity?

Weekend • May 14, 2005

Your report, "No-cash-back rule hits HDB market" (May 13) was very timely as just two days earlier, I had received the report on a valuation carried out by a valuer appointed by the Housing and Development Board (HDB).

It left me upset with the HDB.

My five-room point block flat in Jurong East was valued by a licenced valuer on Jan 31 at $343,000. In February, the HDB announced its new ruling would take effect from April 1. As a result, I applied for an HDB valuation.

Their appointed valuation expert valued the property at $285,000. This is not a difference of 10 or12 per cent — the average drop in HDB valuations cited by Propnex estate agency — but 17 per cent.

Can HDB explain and justify such a disparity?

Knight Frank's executive director's comment that such valuation anomalies "would pass once the market comes to terms with this new regime" is questionable.

Christina Pearce

hardwaretay

16-05-2005, 12:03 PM

I just wonder how HDB arrive at the amount $90/- for family car in multi-storey carpark. It felt expensive when you compare with those charged by condominium typically included in the $200+ monthly maintenance charge. For a car owner in HDB flat, the payment per month is eg $60 ( maintenance fees ) + $90 ( season parking ) ie. $150/- per month but no condo facilities, no security guard etc.

May 5, 2005
$185 for parking van: HDB explains
I REFER to Mr Tan Kay Lai's letter, '$185 parking fee for this van' (ST, April 26).

HDB residential carparks primarily serve cars driven home by residents. Unlike sports-utility vehicles that are registered as passenger cars, goods vehicles are, strictly speaking, commercial vehicles.

Under the Parking Places (HDB) Order 2000, the season parking charge for a motor vehicle (not being a motor car) with unladen weight exceeding 1,500kg is $185 per month.

We thank Mr Tan for his feedback and will consider it in our review of the parking scheme.

Eng Soh Seng
Deputy Director (Carparks)
For Director (Housing Administration)
Housing & Development Board

jq75

17-05-2005, 08:22 AM

Town Councils may carry out own lift upgrading works

SINGAPORE : Town Councils may soon be allowed to carry out their own lift upgrading works, following proposed changes made to the Town Councils Act.

The National Development Ministry said Town Councils would be allowed to implement their own lift upgrading works using up to 10 percent of their residential sinking funds.

But they will have to put the proposal to a vote and obtain at least a 75 percent "yes" vote before they can carry out the lift upgrading works.

Also, flat owners will need to contribute towards the cost of the works and use their CPF savings to pay for the Lift Upgrading Programme.

The Bill also spells out penalties for the Misuse of Town Council Funds.

The Ministry said Town Councils had built up a significant amount of sinking funds and operating surpluses over the years.

As a precautionary measure, there is a need to strengthen the corporate governance of Town Councils to ensure that funds are used only for purposes spelt out under the Town Councils Act.

So the Bill will make it an offence if sinking and operating funds are used other than for the purposes specified under the Act.

The penalty is a fine of up to $5,000.

If a Town Council commits such an offence, its Chairman and Secretary will be held liable, since they are the principal officers running a Town Council.

The Bill will be debated at a future sitting of Parliament

jq75

19-05-2005, 08:30 AM

HDB resale volumes match previous figure :s8:

Fall in valuations may refer to cases not in line with fair market value

Thursday • May 19, 2005

I refer to the news report, "No-cash-back rule hits HDB market" (May 13), and the letters, "New HDB valuation rule puts buyers and sellers in tight spot" (May 13) by Jin Xin and "Why 17% valuation disparity" (May 14) by Ms Christina Pearce.

CPF Board and HDB implemented the new requirement to use an HDB-assigned valuer for resale flat transactions involving bank loans on April 1.

The aim was to curb "cash-back" deals, which involved falsely-declared resale prices that were significantly above transacted prices of comparable flats and often supported by equally doubtful valuations.

Such deals are illegal and are not in the interest of both buyers and sellers. Buyers will have to pay higher stamp/legal fees and mortgage loan repayments, while sellers may be liable for a higher resale levy based on the inflated resale price.

The news report quoted several property agents as saying that business in the resale market over the past month had dropped by as much as 80 per cent.

In fact, the resale volume surged in March, just before the cash-back measures came into effect, and had a correction in April. This is a natural market response to the implementation of the new ruling.

The combined resale applications registered in March and April (5,200) are, in fact, comparable to the number registered during the same period in the past two years.

Some property agents indicated that valuations had fallen by as much as 12 per cent after the new ruling was implemented. They may be referring to those cases with valuations not in line with the fair market value in the first place.

Such an "adjustment" following the new ruling is, therefore, to be expected.

The requirement to use HDB's panel of private valuers is to ensure that valuations are reflective of the fair market value of the flats concerned. These private valuers are licensed by IRAS. HDB's records show that there was no significant change in the valuations conducted by our panel of private valuers in March and April. :s11:

Reader Jin Xin expressed concern about the impact of the new ruling on buyers. While buyers and sellers do use valuation reports as a guide, it is up to them to negotiate a mutually-acceptable price.

Some buyers may be willing to pay a premium above the flat valuation depending on their preferences, for example, if the flat is close to their parents' home or children's school.

Similarly, a seller may be prepared to close a deal below the valuation price. Buyers should purchase flats that they are able to finance.

Ms Pearce said that a recent valuation for her flat that was provided by an HDB-assigned private valuer was 17 per cent lower than a previous valuation provided by another valuer a few months ago.

We have looked into the case and would like to assure her that the valuation provided by the HDB-assigned valuer was generally in line with resale evidence in the immediate vicinity of her flat.

As she has also written to HDB on this issue, we will liaise with her separately on her case and will request both valuers to clarify their valuations if necessary.
Letter from LOH SWEE HENG

DY DIRECTOR (RESALE)

for DIRECTOR (ESTATE ADMINISTRATION AND PROPERTY)

HOUSING & DEVELOPMENT BOARD

jq75

20-05-2005, 10:45 AM

May 20, 2005
HDB rejects Sers appeal by 2 blocks
HOME owners of two blocks of flats in Holland Drive who asked to be included in a recently announced redevelopment project, have been turned down by the Housing Board.

They received a letter yesterday telling them that studies done by HDB found that their request to also redevelop Blocks 20 and 21 would be 'economically not viable'.

Under the Selective En-Bloc Redevelopment Scheme (Sers) which they asked to be included in, old blocks are torn down to make way for new ones nearby, to intensify land use.

To make the cut, the value of the land cleared has to be higher than the compensation paid to home owners told to vacate their flats.

The redevelopment at Holland Drive involves involves three-, four- and five-room units as well as shops in Blocks 14 to 17, 22 and 23.

The blocks are about 31 years old.

The two left-out blocks are just next to where the new 40-storey ones will be sited. These will be offered to the owners of the demolished flats.

More than 100 of the owners in the two blocks appealed to their MP, Mr Lim Swee Say, last month to persuade the HDB to reconsider its decision.

In its letter, the HDB said that the blocks selected for the Sers scheme 'occupy a separate and distinctive land parcel, and so its viability... is considered on its own merits'.

'The study for Blocks 20 and 21 showed that Sers would not be economically viable.'

The HDB added that it would implement various measures to minimise the inconvenience to residents of Blocks 20 and 21 as a result of the construction work for the new blocks.

This would include the extensive use of prefabricated components to reduce noise and dust.

A resident of Block 21, Mr Raymond Kee, spoke for many of his neighbours when he said he was very disappointed with the decision.

Said the 69-year-old retired teacher: 'I can't accept it. It's simply wrong to just leave us out. The value of our homes will surely fall.'

jq75

20-05-2005, 09:42 PM

HDB to meet Holland Drive residents turned down for SERS scheme

SINGAPORE : HDB will meet residents of the two blocks of flats in Holland Drive who have had their request to be included in the Selective En-Bloc Redevelopment Scheme turned down.

Second Minister for National Development Lim Swee Say told reporters that HDB had explored all possible options but the redevelopment of the two blocks was not economically viable.

However, he assured flat owners that the authority would minimise the inconvenience caused during the construction period.

He also allayed fears the property value of the two blocks would fall.

Mr Lim said, "There is no strong evidence that as a result of the development in the surrounding area, the existing blocks value would actually decline.

"If you talk to a real estate agent or people in the profession, their assessment is that it all depends on how you manage the whole development -- if you develop it correctly in the sense that the new development at the existing blocks, if somehow they can be well integrated. And don't forget the existing blocks will be able to access to the enhanced common facilities as well of the new development." -

jq75

24-05-2005, 08:09 AM

May 23, 2005
2 blocks left out of Sers 'to be offered upgrading'

By Goh Chin Lian
HOME OWNERS of two blocks in Holland Drive could be looking at new common facilities and building facades under a main upgrading programme (MUP), as well as lifts stopping at every floor.

Second Minister for National Development Lim Swee Say told them yesterday that he is 'committed' to fighting for them to have priority over others for both types of upgrading if they are agreeable to it.

He made the offer at a closed-door meeting with the residents of blocks 20 and 21, who have been crying foul over being left out of a redevelopment programme affecting six blocks across the road from them.

The MP for Holland-Bukit Panjang GRC met the group at the Civil Service College in North Buona Vista Road to explain why the HDB ruled out making them the same offer as blocks 14 to 17, 22 and 23 - to pull down their blocks and replace them with new ones.

Also present was the Housing Board's deputy director for projects and development, Ms Tan Chew Ling.

The session, which lasted 3 1/2 hours, was apparently heated.

Mr Lim told reporters afterwards that he had appealed to the home owners to consider the upgrading programmes, saying: 'You may be disappointed with Sers, but please don't be so disappointed that you reject all the other upgrading programmes.'

He is prepared to ask for town council funds to be used for the lift upgrading, he added.

The Government bears up to about 85 per cent of the cost of MUP.

This should take place at the same time as the redevelopment scheme, so residents would have to bear with the inconvenience of noise and dust just once, he added.

Mr Lim is 'convinced' that the HDB had explored all the options for the land occupied by the left-out blocks. They were:

Build a 40-storey block with six units on every floor, in place of the 24-storey blocks with four units on every floor

Build a 40-storey block with eight units on every floor

Allow the land to be used for a private condominium

Another was to build an underground carpark there, so more units can be built above ground.

But none made financial sense.

He also said he understood that the HDB could not make an exception for the two blocks, because if it did, other blocks would also make such requests.

The explanations and dialogue did not pacify many of the affected home owners, though a number said they were resigned to bearing the inconvenience of major construction next to their homes and having their view blocked by new development.

Business manager Christina Soh, 32, who has lived at Block 20 since it was built 31 years ago, was insistent that it was Sers or nothing for her, not even upgrading.

Retiree R. Letchimi, 76, who has lived as long there, said she would settle for faster lifts, provided these are installed soon enough for her and her 84-year-old husband to enjoy.

jq75

24-05-2005, 08:09 AM

May 23, 2005
Despite gripes, HDB's resale levy to stay for now
Fee imposed to ensure subsidies are fairly allocated

By Tan Hui Yee
THE levy that the Housing Board imposes on those who sell their first flat to buy another from it will stay.

This is despite a rash of criticism by flat owners, who say the charge makes it hard for them to switch to smaller flats.

These owners say the prices of their flats have dropped significantly, and this means they lose money if they want to downgrade.

But when contacted by The Straits Times, the HDB said it has no plans to waive the fee, introduced in 1997 to curb speculation.

The fee ranges between 10 and 25 per cent of the resale price of the first flat, or 10-25 per cent of 90 per cent of what it has been valued at, if that figure is higher.

The HDB said the levy is to ensure housing subsidies are fairly allocated, by reducing the subsidy received by those buying second flats from it.

But the board added that it will 'continue to review the policy regularly to ensure that it remains relevant to the objective'.

Several flat owners say the prices of their flats have dropped in recent years.

Certain flats on the resale market are going for the same price at which they were bought. Some are going for less.

The HDB index of resale prices of its units shows these have dropped an average of 22 per cent since 1996.

The hardest hit are the five-room flats whose valuations have gone down 24 per cent from their 1996 peak, and the executive flats, which have fallen 30 per cent from their 1997 highs.

Former bank officer Lee Lay Choo, 36, who wrote to The Straits Times last month, is one such flat owner. She bought a new executive flat in Woodlands for $350,000 in 1999. Now, she wants to move to a four-room flat, as she left her job to look after her two children, and the family is living on only her civil servant husband's income.

She would like to buy the flat from the HDB, because, she said, the resale ones are too pricey.

But if she does so and sells her executive flat, now valued at $350,000, she will have to pay a levy of more than $80,000. This would leave her worse off than before, she said.

The situation has been noticed by at least one MP, Dr Amy Khor, who is also the chairman of the Government Parliamentary Committee for National Development and the Environment.

She said in a recent interview: 'The levy works if the market is moving up all the time. In a down market, you need to moderate the policy.'

The HDB collected $79 million in levies in the year ended March 2004,and $100 million in the financial year before that. It uses this money to partially offset its home ownership subsidies.

When asked how many appeals it has received from flat owners requesting that the levy be waived, the board said it was unable to give that information.

It stressed, however, that those who do not want to pay the levy can buy a flat on the resale market.

Housing agents though say there is room for a little flexibility. A division director of property agency PropNex, Mr Eric Cheng, suggested that exceptions be made in cases where owners are downgrading due to financial hardship, and when flats are sold at cost or even at a loss.

Mr Albert Lu, the managing director of C&H Realty, said it made better sense for the HDB to waive the levy and price new HDB flats higher for second-time buyers, so that the policy would not be seen as a tax on profit.

jq75

24-05-2005, 08:42 AM

Coupon option for HDB car park users

Tuesday • May 24, 2005

I refer to the feedback by Mr Ivan Goh on HDB parking (May 18). Mr Goh suggested allowing the purchase of second and third season parking tickets at discounted rates.

HDB car parks are provided primarily to serve residents and meet their parking needs.

Season parking tickets for residents are for parking in a specific group of car parks serving their blocks.

The parking charges are levied to recover the cost of providing and maintaining car parks and to regulate parking demand.

As the season parking charges are currently priced at a concessionary rate lower than the equivalent normal hourly parking charges, the season parking ticket holder can only park in a specific group of car parks serving their blocks.

Nevertheless, we understand that some motorists need to park regularly in other HDB car parks.

These motorists could either display the required hourly parking coupons or consider buying the Monthly Parking Coupon (MPC) which allows motorists to park at any URA/HDB car park during the coupon operational hours on a monthly basis.

The MPC is available at any HDB Branch Office. We thank Mr Goh for his feedback.

Letter from Eng Soh Seng

Deputy Director (Car Parks)

For Director (Housing Administration)

Housing and Development Board

-------------------------------------------------------------------------------------------

Free parking must not compromise residents' needs

Tuesday • May 24, 2005

Letter from

I refer to the commentary by Mr Sunny Goh "Rules always 'strike a balance' ... except when they don't" (May 16).

Mr Goh commented that efficiency is not the most important consideration in policy formulation and cited the extension of free parking to HDB car parks as an example.

HDB car parks are provided primarily to serve the residents and meet their parking needs. Residential car parks are usually heavily utilised in the evening when residents return from work and on weekends.

However, HDB is mindful that many families get together during weekends and public holidays.

To promote social interaction and foster family ties, the Free Parking Scheme (FPS) on Sundays and Public Holidays from 7 am to 10.30 pm was introduced.

The FPS can only be implemented at selected car parks where there are sufficient parking lots for residents.

The suitability of FPS for a car park is assessed in consultation with the local grassroots organisations and the Land Transport Authority.

One main consideration in deciding on the suitability is whether FPS will compromise the parking needs of residents.

We thank Mr Goh for his feedback and will consider it when reviewing the FPS.

Eng Soh Seng

Deputy Director (Car Parks)

for Director (Housing Administration)

Housing & Development Board

jq75

25-05-2005, 10:00 AM

Cheated homeowners need recourse against conduct of housing agents

Wednesday • May 25, 2005

Are housing agents allowed to back out from their letter of undertaking?

I had engaged one to rent out my condominium for a minimum period of one year.

She managed to secure a foreign professional on an employment pass to lease the unit and issued me a letter of undertaking, stating that "in the event that the tenant terminates the tenancy agreement before the expiry date, we will refund you on a pro-rated basis the commission paid to us for the uncompleted period of lease".

Six months into the lease, the tenant terminated the tenancy to return to his home country.

I promptly wrote to the agent and copied her all the letters from the tenant and his employer regarding his early termination of employment.

I requested for a refund which was never been paid. Indeed, when I spoke to the agent, she refused to pay and challenged me to sue her company.

I then wrote to the firm's CEO but received no response despite repeated faxes and phone calls over several weeks.

The lady who answered told me her boss — who always appeared to be out — would not honour the refund as the letter of undertaking was issued and signed by an agent.

How can the public be protected against such practices?

Is there any authority or professional organisation regulating the conduct of housing agents and agencies? Where can owners like me seek help?

Tan Kok Liang

jq75

26-05-2005, 04:39 PM

ratppl

29-05-2005, 03:44 PM

permanent residents who could only purchase resale Housing Board flats, have been given the chance to buy older, unsold homes.
the worest fear has come.... so what is a different between a true s'porean and PR?

AFORCEII

29-05-2005, 04:09 PM

jq75

29-05-2005, 08:30 PM

Buying or selling a home?
Who's that living in my house? HE tried to get into the Woodlands flat he was in the process of selling, only to receive a rude shock - the locks had been changed. By Mindy Tan

28 May 2005
HE tried to get into the Woodlands flat he was in the process of selling, only to receive a rude shock - the locks had been changed.

When taxi driver Rajasegaran Shanmugam, 36, knocked, no-one answered.

After some time, someone turned up and told him he was living there.

Unknown to Mr Rajasegaran, his ex-wife had allowed the buyer of their flat to move in, more than a month before the sale was legally completed.

She did not inform him about it.

Mr Rajasegaran had been staying with his brother while the house was being sold.

He went to the police five times and approached HDB thrice.

They assured him that he continued to have the legal right to the house.

And the buyers eventually moved out.

LOCKED OUT

But Mr Rajasegaran still could not open the locks, and he did not want to break in.

He was also worried that the buyers may have left their things behind and he might be accused of tampering with them.

Mr Rajasegaran's problems started when the buyers, the Lees, signed the option to buy the five-room flat he jointly owned with his ex-wife, Madam Chanthirakantha A Kannan, 36, in January this year.

The Lees agreed to pay $235,000 for it.

The sale will be completed only on Tuesday when the keys are to be officially handed over to the buyers.

But with the permission of Madam Chanthirakantha, the Lees moved in a month ago.

Mr Rajasegaran, who has not been in contact with Madam Chanthirakantha, says he knew nothing about this.

So he was shocked to see a Chinese altar outside his flat when he went there one night last month.

His door has been repainted. Flower-pots and children's slippers lay along the corridor. Someone had moved into his vacant flat.

He knocked but no-one seemed to be inside. He waited.

At 1am, Mr Lee Choon Guan returned with his wife and two young children after locking their pasar-malam store.

When Mr Rajasegaran approached them, Mr Lee said he was the buyer of his flat.

They knew each other by name, but had not met before this.

Madam Chanthirakantha's lawyer was handling the sale.

Mr Lee said Madam Chanthirakantha had allowed them to move in early.

But Mr Rajasegaran explained that he did not know of this decision and requested that the family move out.

The Lees refused, said Mr Rajasegaran.

Mr Lee then called his housing agent and Mr Rajasegaran called the police.

About 45 minutes later, Madam Chanthirakantha arrived at the void deck with her own DTZ agent and Mr Lee's PropNex agent.

She produced a handwritten letter authorising Mr Lee to move in.

Though she is only part-owner of the flat, she and the housing agents claimed this was a mutual agreement that was binding.

But HDB said later the buyer could take possession only after the sale is completed. (See report below.)

The next morning, Mr Rajasegaran consulted HDB and was directed to the police.

The police, said Mr Rajasegaran, sent him back to HDB.

A confused Mr Rajasegaran said: 'Both HDB and the police say I'm allowed to break the lock because I'm still the rightful owner.

'But I am afraid to enter because Mr Lee may still have his things there.'

For three weeks, Mr Rajasegaran went back and forth to HDB and the police to seek help.

Then, in response to queries from The New Paper, an HDB spokesman wrote:

'HDB has contacted Madam Chanthirakantha, and advised her that both herself and her ex-husband are still the owners of the flat.

'The buyer can only occupy the flat after the resale transaction is completed.'

The Lees moved out of the flat after that.

When The New Paper contacted Madam Chanthirakantha, a kindergarten teacher, she refused to comment, saying she was busy caring for her ailing father and her 6-year-old daughter.

The Lees declined to speak to us.

Mr Lee's PropNex agent, Madam Kamisa Nain would only say: 'He wants to be left in peace, he has enough trouble already.'

But with the main gate still locked, Mr Rajasegaran now does not want to pursue the matter.

His said his father died last weekend and he's in mourning.

--------------------------------------------------------------------------------

Against HDB rules, but not a crime

NO criminal offence was committed, says the police.

Police spokesman Karen Chen said those involved should seek legal advice to resolve the matter.

And HDB's stand is that the seller should give vacant possession of the flat to the buyer only on completion of the resale.

Under HDB's Terms and Conditions for the purchase of a resale flat, the buyer shall not obtain possession of the flat before the completion of the transaction.

But housing agents have their own interpretation of this.

PropNex CEO Mohamed Ismail said: 'When a flat is vacant for a long time, it is a common practice, upon receiving HDB's in-principle letter of approval, for buyers to make a mutual agreement with their seller to move in before the completion date.'

With the approval, Mr Lee was also able to apply for power supply for the flat.

Madam Chanthirakantha's agent, Ms Serene Koh, of DTZ Debenham Tie Leung, said: 'Madam Chanthirakantha agreed to let Mr Lee move in early, thus he did not mind buying the corridor unit.'

Asked if Mr Rajasegaran knew of this agreement, Ms Koh said his ex-wife was to have informed him.

According to both agents, a handwritten note is good enough to seal the verbal agreement.

Mr Ismail said: 'When HDB issues in-principle approval, it means they have received the buyer's 20 per cent down-payment.'

But Ms Winnie Leong, conveyancing executive from Peter Ong and Raymond Tan, said: 'Whether you have paid 20 per cent or 1 per cent, there is still no legal transfer from one owner to another until the completion date is up.'

WHAT TO NOTE

If the legal transfer of titles has not been completed, do not carry out major renovations on the flat.

PropNex CEO Mohamed Ismail said: ''Even if HDB has granted in-principle approval, buyers are advised not to carry out major renovations, in case the deal does not go through.''

If, for example, the seller is declared bankrupt just before the completion date, banks may gain possession of the flat.

And if you have started major renovations, you may then be stuck with a half-renovated house which does not belong to you.

jq75

30-05-2005, 08:35 AM

May 26, 2005
Singles, PRs can now buy older, unsold HDB flats

By Tan Hui Yee
SINGLES and permanent residents who could only purchase resale Housing Board flats, have been given the chance to buy older, unsold homes.

They can now buy about 100 in Jurong West, Bukit Panjang and Sengkang for starters, under a scheme the Housing Board has introduced to clear some of its large stock of these units.

Most have been vacant since they were built about four or so years ago.

The flats, all five-room or executive units, are being put on the market as resale units after repeated attempts to find buyers for them failed.

Other groups of property buyers also stand to benefit if they plump for one of the units, which are being marketed by HDB subsidiary EM Services.

Those who currently own a flat they bought directly from the HDB will not have to pay a resale levy, while private property owners will be freed from having to wait 30 months after they sell their home.

If the scheme proves successful, the HDB said it could offer more unsold units and appoint more marketing agents.

At September last year, it reported a stock of 10,000 vacant flats.

Some of the 100 units are going for about $50,000 less than other resale flats in the three areas.

The Straits Times understands that one of these unrenovated, ninth-floor, five-room flats in Jurong West is being offered for about $210,000.

Typical renovated resale homes there would cost around $260,000.

Housing agents interviewed expressed concern that the lower prices will drag down the value of resale units in the area.

The managing director of C&H Realty, Mr Albert Lu, pointed out: 'Anybody considering buying a five-room or executive flat there will definitely go for these units because they're so much cheaper.'

But the HDB expects any impact on the resale market to be 'minimal' because of the small number of units involved.

Asked how the flats' prices have been determined, it said these are based on 'market value', determined by qualified valuers.

It stressed yesterday that its various measures to clear its stock of unsold flats, like allowing buyers to book a unit on the spot, have been 'generally effective'.

The new scheme is to move those which have been turned down 'despite repeated sales offers'.

Some of the units have been offered to private developers as well as Nanyang Technological University, and declined.

Singles like Ms Jessica Lee, who is in the market for a resale four-room flat, said she is open to getting a bigger unit.

'This new measure is good,' the personal assistant, who turns 35 in July, said.

'A resale flat is so expensive.'
:s8:

May 30, 2005
HDB offer on old unsold flats attracts buyer interest :s8:

By Tan Hui Yee
THE 100 or so unsold Housing Board flats offered for sale on the resale market have caught the attention of homehunters.

About 200 people called HDB subsidiary EM Services, which is marketing them, last week to make inquiries about the five-room and executive flats in Jurong West, Bukit Panjang and Sengkang. By Thursday, three people had booked a unit.

The homes are all at least five years old, and have not been taken up despite repeated attempts by the HDB to sell them.

So it put them on the resale market, which means they can be bought by singles and permanent residents, who are not allowed to buy new HDB flats under Singapore's family-centred housing policy. It also means those who own a flat bought from the HDB do not need to pay a resale levy when they buy one of these units.

EM Services is not the only one getting calls about the homes. The HDB said it has been fielding many queries about the pilot project since news about it broke last week.

It added in its statement on Saturday that some of the callers 'had the mis-impression that the HDB had changed its policy to allow singles and permanent residents to purchase new flats at below market prices'.

'We wish to clarify that the HDB has not implemented any new scheme for singles and PRs to buy new HDB flats,' the board said.

The five-room flats go for about $194,000 to $219,000, while the executive flats are offered at about $275,000 to $346,000. In response to concerns from housing agents that the flats are going at prices which appear to be lower than others in the area, the HDB stressed that the flats are not being sold below market value.

They have been priced according to valuations that take into account the fact that they are not renovated as well as prices of resale flats in the vicinity, it explained.

It said the HDB is mindful of the impact of its sale of unsold flats on the resale market, and the number 'will be kept small' and prices will 'reflect their market value'.

Anyone interested in these flats can call EM Services on 6275-8880.

--------------------------------------------------------------------------------
New flats for singles?

SINGLES and permanent residents may be allowed to buy new Housing Board flats built by private developers in the future, said National Development Minister Mah Bow Tan.

This is because the flats are not subsidised by the Government, he told Chinese daily Lianhe Zaobao on Friday.

The private sector will be allowed for the first time to design, build, price and sell some HDB flats in Tampines under a pilot project announced in March.

A plot of land which can house 500 flats will be put up for tender later this year for this purpose.

However, these homes will not be offered to singles and PRs as the Government wants to assess the response to the pilot project. Only those eligible to buy new flats from the HDB now - mostly Singaporean families - will be allowed to buy one.

jq75

31-05-2005, 01:27 PM

HDB selling 1,113 units of 4-room and bigger flats in established towns

SINGAPORE: The Housing and Development Board (HDB) is launching 1,113 units of 4-room and bigger flats in various established towns like Bukit Merah, Geylang, Queenstown and Kallang/Whampoa under the latest Walk-In-Selection exercise.

Queue numbers are being issued at the Sales Office at HDB Hub in Toa Payoh on a first-come-first-serve basis.

As of 5pm on Monday, HDB had issued over 2,000 queue numbers.

The list of flats offered for sale will be available at the HDB Hub.

Interested buyers can also log on to HDB InfoWEB at www.hdb.gov.sg to check out e-Sales.

Three units of 5-room show flats at Depot Road, Jalan Tenteram and Klang Lane, as well as some unfurnished sample units, will be opened for viewing.

There will be a free shuttle bus service from HDB Hub to show flats from 30 May to 1 June 2005. -

jq75

01-06-2005, 08:44 AM

Puzzling advice on HDB windows =:p

Unclear policy on replacement specifications

Wednesday • June 1, 2005

Under the new regulation laid down by the Housing and Development Board (HDB), households have to switch to stainless steel arms and rivets on their casement windows by the end of September.

My block is five years old and I have lived in my current unit for around two and a half years.

In the course of renovations, I changed all the windows to the casement type.

So far, I've invited three authorised contractors to inspect my windows and their assessments have left me confused.

Contractor A told me I need to replace all of the window arms and rivets. Contractor B said that I only needed to replace those rivets that are rusty. Contractor C told me I do not need any replacements as I've lived here for less than three years.

I called the HDB area office and was told that, if my block is five years old or older, I need to replace the window arms and rivets regardless of how long I've actually lived there.

I am puzzled by the conflicting advice given by the HDB and the contractors.

Friends have also told me that some contractors will press the owner to replace all of the window arms and rivets, even if they are not necessary, as they are only interested in monetary gains.

As such, I would greatly appreciate it if the relevant authorities could step forward and address this issue.

Letter from Victor Chua Swee Hee

jq75

02-06-2005, 09:09 AM

June 2, 2005
Move to accredit property agents, firms
Real estate groups working with govt agencies on scheme

By Tan Hui Yee
ROGUE property agents will find it harder to stay in the industry under a new plan expected to be launched later this year.

Two real estate bodies - the Singapore Institute of Surveyors and Valuers (SISV) and the Institute of Estate Agents (IEA) - are working with various government agencies to develop an accreditation scheme for agents and agencies.

The move comes at a time when the industry has suffered a credibility blow in the wake of revelations about rampant illegal cash-back deals on HDB resale flats. In these deals, the selling prices of flats are over-declared to secure bigger loans for the buyers and some agents have been said to siphon money off for themselves.

Work on the scheme is understood to have started about a year ago.

Sources say that it will accredit both housing agents and agencies, and both will be required to adhere to a code of conduct.

If an accredited agent is found to have breached the code of conduct, he will be given demerit points. If he chalks up more than a certain number of points, he could be suspended or struck off.

Accredited property agencies could also be given demerit points if their agents are guilty of misconduct.

It is unclear whether the Government will make it compulsory for agents and agencies to be accredited under this scheme. However, many in the industry feel it is a step up from the current regime, where only housing agencies are licensed, not the agents who work for them.

According to the Inland Revenue Authority of Singapore, which licenses housing agencies here, there were 1,854 such companies at the end of last month. In contrast, there are at least 10,000 housing agents in Singapore.

A division director of property agency PropNex, Mr Eric Cheng, said: 'This plan will stop consumers out there from being deceived by unethical agents.'

The scheme also aims to encourage agents to upgrade their qualifications by limiting the proportion of agents who have not passed the Common Examination for House Agents within each firm.

Accredited agents will also be required to pass the exam, which covers topics like property law and marketing.

It is currently not compulsory for agents to sit for it and companies like Dennis Wee Group and PropNex say only about 35 to 40 per cent of their agents have this qualification.

A vice-president of Dennis Wee Group, Mr Chris Koh, told The Straits Times: 'If an agent is hungry for money, he would not set aside time to do it. For most agents, if it is not compulsory, there is no urgency to do it.'

The Consumers Association of Singapore (Case) received 180 complaints against housing agents from January to April this year. The figure last year was 469.

Most of these complaints concerned agents who were unprofessional or misrepresented the details of a property deal.

jq75

03-06-2005, 09:14 AM

June 3, 2005
Strong demand for new exec condo in Woodlands

By Daryl Loo
ALL but 11 of the 83 units launched on Monday at the La Casa executive condominium in Woodlands have been sold, putting paid to suggestions that the market for such homes is waning.

The situation is so encouraging that Far East Organisation, which is developing the 444-unit project, is making another 48 units available tomorrow.

Analysts had earlier expected limited interest in executive condos as a number of such properties hit the resale market, having fulfilled the five-year minimum occupation period.

By the end of this year, owners of the 720-unit NorthOaks and 696-unit Woodsvale, both in Woodlands, will be able to sell their units.

However, Far East's chief operating officer (retail and lifestyle concepts) Chia Boon Pin does not expect these resale units to have an impact on sales at La Casa, as he does not expect many of them to be put on the market.

According to Far East, its 72 La Casa units went at an average of $380 per sq ft.

NorthOaks buyers paid about $412 per sq ft, and Woodsvale buyers $378 per sq ft, when both projects were launched in 1998.

Mr Chia added: 'We also find that most first-time buyers still prefer to buy a new unit rather than an old one.'

Executive condos were introduced 10 years ago, for young families who wanted something better than a Housing Board flat but could not afford private housing.

They are priced 20 to 30 per cent lower than condos on the private market. On top of that, first-time purchasers are given a $30,000 grant.

La Casa is the last executive condominium to be built. The Government stopped offering new sites for such units last June.

Assistant Professor Muhammad Faishal of the National University of Singapore's Department of Real Estate said yesterday that the Government ought to continue releasing executive condo sites as there is still a demand from younger families.

But the rules governing these properties should be relaxed to make them more attractive. For instance, people should be allowed to sell them after three years rather than five, he said.

However, the five-year requirement is not an issue for Mr Eng Kwee Guan, who bought a three-bedroom, 1,119-sq ft La Casa unit for $424,000.

The 26-year-old Air Force regular serviceman, who made comparisons with other private condos in the Woodlands area, argued that the executive condo offers the best value for money, as units in the private market are going at above $400 per sq ft on average.

'More importantly, my fiancee really likes the place and the facilities at La Casa.'

jq75

04-06-2005, 01:12 PM

jq75

04-06-2005, 01:14 PM

June 4, 2005
BUKIT BATOK FIRE
HDB fixing flat but widow won't return
She says she still gets flashbacks of tragedy which killed her husband

By Vivi Zainol
MADAM Rohani Jantan has not stepped into her home for nearly three weeks now, not since a fire gutted the flat and killed her husband, a rag-and-bone man.

'I'm too scared. I don't want to remember what happened to my husband all over again,' confessed the 47-year-old, who said she has flashbacks of the tragedy every day.

Her place, which is being fixed up by the Housing Board as the flat is covered by its fire insurance scheme, will be ready by the middle of next month, but she has no plans to move back.

At the moment, the former part-time coffee shop assistant, who has two grown-up daughters living in Malaysia, is staying with long-time neighbours who consider her 'family'.

'I'll stay with them if they'll have me and perhaps rent out my flat,' said Madam Rohani, adding that the residents' committee in her area has promised to help her get a job.

Yesterday, the grateful widow received cash donations totalling $700 from the Tabung Amal Aidilfitri charity fund and the Islamic Fellowship Association, a charitable organisation.

Earlier, she was given $1,000 by the Southwest Community Development Council and two mosques. She has also received food and clothes from grassroots leaders as everything she and her husband had was burnt in the fire.

It was a tragedy waiting to happen, as she and her husband, Mr Selamat Bakri, 60, had been using candles for light and charcoal to cook in their Bukit Batok West three-room flat.

They owed $11,000 in utility bills but Madam Rohani's husband, who was mentally ill, had refused repeated offers for assistance from Hong Kah North Zone 1 Residents' Committee. She herself did not dare ask for help for fear he would beat her.

Recalling what happened on that fateful May 16, she said: 'A candle in our bedroom caught fire. I tried to put it out with water, but I was too late... The fire had spread.

'I shouted for help and asked my husband to leave the flat with me. But he refused; he wanted to take some of his belongings. I never saw him again after that...'

Last week, she visited her husband's grave. 'I prayed for him. There's no point shedding any more tears despite my sadness,' she said.

jq75

04-06-2005, 01:15 PM

June 4, 2005
Upgrading nod at two precincts
FLAT owners in Bedok and Tampines have backed a proposal for better homes and surroundings under the Housing Board upgrading programme.

More than 86 per cent of those living in blocks 98 to 106 in Bedok North Avenue 4 voted for the main upgrading programme, in a poll held from May 26 to Monday.

At least three quarters of those eligible to vote have to agree to the scheme for it to proceed.

The programme spruces up the interior of homes, among other things, at subsidised prices.

At Tampines Street 91, blocks 924, 925, 929, 930 and 936 also approved a lift upgrading programme.

This scheme gives HDB blocks better lifts that stop at every floor.

Work at both precincts is expected to start next year, and be completed by 2008.

jq75

06-06-2005, 08:38 AM

jq75

07-06-2005, 07:42 PM

The Electric New Paper :
HDB loans: Who offers best rates?

Maybank and Hong Leong are tops
ARE you thinking of buying a flat? If so, watch out. Some banks offer good home loan deals, while others don't. This week, we will check out the cheapest bank loans for HDB flats. Next week, we will do the same for private housing. And the following week, we will hunt for the best home loan refinancing rates.
By Larry Haverkamp
mail@AskDrMoney.com

07 June 2005
ARE you thinking of buying a flat? If so, watch out. Some banks offer good home loan deals, while others don't.

This week, we will check out the cheapest bank loans for HDB flats. Next week, we will do the same for private housing. And the following week, we will hunt for the best home loan refinancing rates.

Here are two tips:
First, your property agent will probably recommend that you opt for a bank loan. Think twice before taking it. The typical agent will steer you towards a deal that is good for him but not as good for you.

This is because most property agents are after "referral fees" they get from banks. Some call them "commissions".

It is a hush-hush practice, commissions range from 0.2 to 0.4 per cent of the loan amount. Banks pay the larger commissions to realtors who are willing to make an exclusive tie-up with a single bank.

For example, on a $300,000 loan, a property agent could receive a commission of $1,200 from the bank he recommends you. And you would never know it.
Second, the interest rate differences between the cheapest and most expensive home loans may look small, but they add up. (See table at left.)

The calculations depend on two important assumptions:
First, home owners are assumed to refinance when it is optimal to do so - after two or three years.

In actual practice, many never get around to refinancing. Some are unaware of the savings, others too busy. For this group, the interest rates in year three and onwards are of more importance.
Second, I assume the only cost of refinancing is a one-time legal cost. After the bank's subsidy, it comes to about 1 per cent of the loan amount.

While this is a one-time cost, the interest savings are yearly.

Based on these assumptions, the best home loan deal is a tie. Both Maybank and Hong Leong Finance offer the lowest variable home loan rates.

Each has a three year lock-in period. But even if you refinance after two years and pay the penalty - which is a claw-back of the legal subsidy - their two-year costs of 4.56 and 4.6 per cent are the lowest in the market.

If you hold their loans for three years, you will pay 6.66 and 6.7 per cent. It easily beats the others banks.

For fixed-rate HDB loans, Hong Leong Finance has the best deal in town. It locks in rates for two years at 2.1 and 2.55 per cent. The third year is 2.6 per cent. Its fixed rate HDB loan is much cheaper than any other bank.

Maybank does not offer fixed rate HDB loans.

A word of caution: Home loan rates change often. A month from now, the rates shown here will be out of date.

If possible, pay little more, take HDB loan

ABOUT one third of HDB loans are financed through banks and the other two-thirds through HDB.

Which is a better deal?

Over a three year period, the lowest bank loan rates beat HDB rates by about 1 per cent. If you refinance your bank loan every two years, you will save even more.

My recommendation, however, is to pay a little more and take the HDB loan if you qualify. Here's why:

First, HDB is rumoured to be more helpful should you hit hard times and default on your loan. Most likely, it will reschedule your payments and not seize your flat.
Second, HDB adjusts interest rates slowly. This is a big plus when rates are rising, as they are now. Banks' home loan rates have nearly doubled in the past year. But HDB's concessionary interest rates have not increased from 2.6 per cent.
Third, CPF loans give you flexibility. It is easy to take an HDB loan then switch to a bank loan. But you cannot go the other way.

You cannot take a bank loan and then refinance with an HDB concessionary rate loan.
Fourth, CPF rules now require that bank borrowers pay 4 per cent of an HDB flat's purchase price in cash. HDB loans have no such cash requirement.

NOTES:

(i) It is usually optimal for buyers to refinance after two years and revert to year 1 rate.

(ii) There is typically a 1.5 per cent penalty for full repayment during the lock-in period and no penalty for partial repayment. For Maybank, Hong Leong Finance, ABN Amro and HSBC, the penalty is to repay the legal subsidy, which is 0.4 to 0.5 per cent of the loan amount.

(iii) For fixed rate loans, only years one and two are fixed. The cost is about 0.5 per cent more than the variable interest rates. Hong Leong Finance has the lowest fixed rate loans. Other banks offering fixed rate loans are POSB, UOB, OCBC, HSBC, Standard Chartered and ABN Amro.

jq75

09-06-2005, 08:30 AM

Punggol Field: A year on, blocks still half-empty

Are potential buyers staying away because of poor workmanship?

Monday • June 6, 2005

It has been almost a year since the keys were first issued to the buyers of five new blocks of flats at Blocks 205A and 204A-D, Punggol Field.

As these five blocks of flats are all "built-to-order", I cannot help wondering why more than half of the flats are still vacant.

Is it due to flat buyers having transferred their flat bookings to other completed flats because of the delay in the estimated time of delivery (ETD) caused by developers going under?

Or is it because the developers' tenders had been "unrealistic"?

Perhaps, developers' skimping on construction materials and quality has resulted in buyers staying away.

Are there other reasons for the low occupancy rate?

After receiving the keys to my new flat at Block 205A, Punggol Field last May, I discovered the following defects:

• Some parts of the concrete floor were cast too high, which meant that if my renovation contractor laid floor tiles, the door of the household shelter could not be opened or closed.

The Housing and Development Board (HDB) took a month to rectify the flooring.

• Rain water seepage in master bedroom.

• Toilet basin tap leakage.

• Faulty cisterns in both toilets.

• The doors to three bedrooms were difficult to close.

An HDB contractor told me that there were an unusually high number of cases of over-casting of floor slabs in these few blocks, compared to flats in other new HDB housing estates.

I saw five such affected units in my block. I hope the HDB will release the full figures.

Did the HDB supervise the construction works closely to ensure proper standards were maintained?

It was noble of the HDB to apologise to the flat buyers of Punggol Field for the inconvenience caused and rectify the defects at no cost to the flat-owners.

But I feel it is also fair that the HDB compensate flat buyers for their time and the inconvenience faced.

More importantly, the HDB should learn from these lessons to ensure that similar mistakes will not be repeated in future projects.

Prevention is cheaper and better than rectification.

Developers should make sure that they have sufficient funds to complete the project and that their tenders are realistic, instead of undercutting each other, with everyone suffering in the end.

I hope the Government Parliamentary Committee on National Development will look into these problems, initiate dialogue with the HDB, hold feedback sessions with developers and propose measures for improvement.

Letter from Justus Phan Chow Chaan

Rest of Punggol Field flats to be put on sale soon

Thursday • June 9, 2005

Letter by TAY BOON SUN
SENIOR PUBLIC RELATIONS OFFICER
for AG DIRECTOR (CORPORATE DEVELOPMENT)
HOUSING AND DEVELOPMENT BOARD

I refer to Mr Justus Phan Chow Chaan's letter "Punggol Field: A year on, blocks still half-empty" (June 6). Mr Phan wondered about the low take-up rate in the new flats in Punggol.

We would like to clarify that Blocks 205A and 204A-D Punggol Field were first offered under the Registration for Flat System and not under Build-to-Order (BTO).

When the completion of the flats was delayed, the affected buyers were offered the option to switch their bookings to other flats and many did, as Mr Phan has rightly deduced. HDB will offer the balance of the flats for sale this year.

Mr Phan had first informed our Sengkang Branch Office in May last year of the flat defects. All of these, except for the uneven concrete flooring, were rectified within a week. We have apologised and explained to Mr Phan the delay in the rectification of the uneven concrete flooring. This has since been satisfactorily rectified.

We wish to assure Mr Phan and the public that HDB has a quality control system and carries out checks to ensure HDB flats are built according to prescribed quality standards.

We thank Mr Phan for his feedback.

jq75

10-06-2005, 08:57 AM

HDB shops list woes

Business vanishing and no room for so many retailers

Friday • June 10, 2005

Ansley Ng
ansley@newstoday.com.sg

AMID talk of them becoming obsolete as consumer patterns change, traditional HDB retailers — whose business has been suffering since the 1980s — are not going down without a fight.

Over the last few weeks, up to 400 shop owners have submitted feedback to the Retail Promotion Centre (RPC) on the problems they face and suggestions to boost business and challenge suburban malls.

The RPC will hand the feedback to the HDB and the Ministry of National Development. It also plans to meet National Development Minister Mah Bow Tan next month to discuss ways to help retailers.

At a dialogue with retailers yesterday, the RPC focused on 10 key problems highlighted in the feedback. One of them, retailers felt, was that the supply of shops is more than the demand, noted dialogue moderator Kwek Theng Swee, who also chairs the SMEs Feedback Group in the Feedback Unit.

According to HDB figures, although the shops-to-dwellings ratio has dropped from 1:75 in the 1980s, to 1:120 in the 1990s, there is still an oversupply of shops — some 18,832 in HDB estates today.

Big suburban malls and the changing behaviour of consumers have also caused neighbourhood shops to lose business, said Mr Kwek.

Although 59.9 per cent are located in HDB neighbourhood centres and 30.5 per cent are in the outlying precincts, consumers prefer to travel to malls at the town centres to shop — thanks to an efficient transport network.

RPC chairman Choo Si Sen said of the findings: "Neighbourhood retailers have to change with the times and must be prepared to upgrade and better serve customers."

Many shops do not come together to resist bigger malls — indeed they refuse to change their mindsets about how to do business, he added.

But they cannot be blamed for this as the scale of their business is too small, said Mr Choo, who was on the dialogue panel.

Shop owner Lim Yeow, who attended the session, said unity is important if retailers want to see an improvement in business.

"Merchant associations are not strong and members come and go. Associations have to be given more power and funding to organise promotion activities," Madam Lim said. She also felt that neighbourhood shops fail to attract younger crowds — one turn-off being the messy display of goods.

"We should try to be like the bigger malls, where every shop is neat and clean," she said.

But some retailers are caught in a bind, she noted: "Many want to renovate their shops and upgrade their skills, but most simply have no money."

jq75

10-06-2005, 09:00 AM

Deadline to change aluminium window rivets to stainless steel

Weekend • June 4, 2005

I refer to Mr Victor Chua's letter, "Puzzling advice on HDB windows" (June 1). Mr Chua said he was given conflicting information with regards to the replacement of aluminium window rivets in his flat.

Under the Building Control (Retrofitting of Casement Windows) Order 2004, existing aluminium casement windows fitted with aluminium rivets are required to be changed to stainless steel rivets.

Flat owners are required to do so by Sept 30, if their aluminium casement windows fitted with aluminium rivets are five years old or more from October 1, 2004.

Existing aluminium casement windows and rivets less than five years old as of the same date are to be retrofitted before they reach the fifth year, or by Sept 30, whichever is later.

We have spoken to Mr Chua to clarify the matter.

Mr Chua changed his windows to the aluminium casement type in June 2002.

This would mean that the age of the windows is more than two years old as of last October.

So, Mr Chua has up to about three years to change the rivets to stainless steel ones.

However, we have advised Mr Chua to monitor the condition of the rivets and to change them early, as stainless steel ones are more durable.

We would like to further advise that regular maintenance is essential for all windows, including those installed using stainless steel rivets.

The HDB will explain to the contractors concerned to reinforce their understanding of the new regulatory requirements.

More information concerning these is available to the public at HDB Infoweb at www.hdb.gov.sg and at the Building and Construction Authority (BCA) website at www.bca.gov.sg

HDB and BCA have also publicised the legislation in the major newspapers and will continue to create greater public awareness and understanding.

We thank Mr Chua for his feedback. For further clarification, he can contact Senior Estates Officer Lim Han Cheow of HDB Toa Payoh Branch Office at 6551 5603.

Letter from

Mike Chan Hein Wah

Deputy Director (Housing Maintenance)

for Director (Housing Administration)

Housing and Development Board

Help residents negotiate a collective deal on window rivets

Friday • June 10, 2005

I refer to the letter by Mr Victor Chua Swee Hee, "Puzzling advice on HDB windows" (June 1) and the reply by HDB "Deadline to change aluminum window rivets to stainless steel" (June 4).

I had invited one authorised contractor to assess and inspect my casement windows. Before they came, I calculated that it would probably cost me less than $50 to have my three casement windows' rivets replaced, with the inspection fee thrown in.

However, when the contractor came, the quote was $167 for three windows only!

The price includes rivets, friction stays and brackets.

Just imagine house owners whose units are all casement windows — how much would it cost them?

When the Sept 30 deadline draws near, would the situation get worse as residents rush to meet it?

The respective resident committees could help in this matter by negotiating a collective deal with the authorised contractor on behalf of residents in the same zone.

This could help prevent contractors out to make exorbitant profits from residents.

Sim Chin Hong

jq75

14-06-2005, 08:41 PM

Demand rises for short-term rentals of HDB flats, low-end condos

SINGAPORE : The rental market appears to be on an uptrend, with property consultants and housing agents saying there has been a growing demand in rental for HDB flats and low-end condominiums.

But they have noticed that more potential tenants are now looking for short-term leases of around six months.

"Looking at our transactions these kinds of rentals used to account for about only 5 percent of our business. This year it is between 10 percent and 15 percent of our monthly transaction, just on HDB and private property rentals. In this bracket it's actually the low-end condo, the suburban condo," said Eugene Lim, assistant vice president at ERA Realty Network.

The demand is fuelled mainly by foreign professionals who are here on contract or to attend short courses.

The rising number of foreign students is also adding to the push.

"Over the last couple of months we have seen this number of foreign students increasing in Singapore. On the employment front, currently there are about 80,000 employment pass holders in Singapore, and we also see this number increasing over the last few months," Mr Lim said.

The demand is not just for entire apartments.

Property consultants say owners of HDB flats and low-end condominiums who are looking to supplement their household income, might want to consider renting out their spare rooms.

"For HDB flat owners, typically they can get a higher return on a per square foot basis if they were to rent out a room because they could rent a room for a few hundred dollars. On a square foot basis, yes it’s rather lucrative to rent out a single room rather than the entire flat," said Nicholas Mak, director of consultancy and research at Knight Frank.

With demand on the rise, rental rates are forecast to rise, but market-watchers say they expect the increase to be marginal.

That is because they believe there is sufficient supply in the market to meet demand. – CNA /ct

shientoh

14-06-2005, 10:25 PM

Help residents negotiate a collective deal on window rivets

Friday • June 10, 2005

I refer to the letter by Mr Victor Chua Swee Hee, "Puzzling advice on HDB windows" (June 1) and the reply by HDB "Deadline to change aluminum window rivets to stainless steel" (June 4).

I had invited one authorised contractor to assess and inspect my casement windows. Before they came, I calculated that it would probably cost me less than $50 to have my three casement windows' rivets replaced, with the inspection fee thrown in.

However, when the contractor came, the quote was $167 for three windows only!

The price includes rivets, friction stays and brackets.

Just imagine house owners whose units are all casement windows — how much would it cost them?

When the Sept 30 deadline draws near, would the situation get worse as residents rush to meet it?

The respective resident committees could help in this matter by negotiating a collective deal with the authorised contractor on behalf of residents in the same zone.

This could help prevent contractors out to make exorbitant profits from residents.

Sim Chin Hong

I agree with Sim. I just called a contractor to come for a inspection as I thought that the price quoted seems reasonable, $0.70 per rivet & $5 per friction plate. But when the person is here, he calculated about 60 rivets for three casement window and no friction plate needed to be changed. However, workmanship was not mentioned in the flyer and he quote a package of $110 for three casement window. That works out to be almost $60 for workmanship.

I was not really happy on this as it seems that the workmanship was not disclosed upfront and I guess most people would feel "Pai Sei" since the person come all the way to do the inspection and we would likely feel obliged to give the work to them.

I wanted to do some comparison and went to the HDB website but there must be a few hundred BCA approved contractors inside there. And while I was surfing, I chance upon this website and thought I would share my view as well.

HDB should at least invite some of the contractors to provide some best quote and post it on its website and state clearly the pricing. This will allow the public to have a better feel of how much they need to pay without being conned. HDB should take the initiative since we are sort of forced to do it by HDB initiative in the first place.

I found this advertisement from TP Town council. http://www.tptc.org.sg/retrofit_final.pdf. Will call them tomorrow to check out if the cost includes workmanship. If it is, I will definitely advise them to put it in the flyer as it will be quite misleading. Anyway, the flyer that I got has a very similar format but was not endorsed by any body.

Cheers
Amos

jq75

16-06-2005, 03:38 PM

Be wary of 'official' contractors :eek:

Thursday • June 16, 2005

Letter from Leow Theng Huat

As the Sept 30 deadline for the inspection and retrofitting of casement windows approaches, I would like to warn HDB flat owners about dishonest window contractors.

One such contractor came to my home and handed me an official-looking form, giving me the impression that he had been appointed by the HDB to inspect my block of flats and to carry out retrofitting works.

Upon inspection of my windows, he declared that all the rivets had to be changed at 70 cents per piece, and that I also had to pay substantial labour costs of over $100. The contractor also exerted pressure on me to accept his offer, saying that it was the last day he would be servicing my block of flats.

I called another contractor recommended by my town council on a notice at the lift landing of my block.

This contractor said I did not have to change any of my rivets as they are made of stainless steel. He also told me that there is no labour charge.

My advice to those who have not retrofitted your windows: Beware of any contractor that comes knocking on your door.

jq75

16-06-2005, 07:07 PM

jq75

18-06-2005, 11:14 AM

June 18, 2005
Noisy neighbours? HDB for mediation

I REFER to the letter, 'No way to end the noise' by Ms Sujatha Ommini Vidyadharan (The Sunday Times, June 12).

When the HDB receives feedback on noise nuisance, its officers will visit the affected parties. Where necessary, we also interview other residents nearby to verify the complaint.

We emphasise resolution through mediation. We encourage the parties to exercise consideration by generating less noise and also showing some degree of tolerance towards their neighbours for a harmonious living environment. We do not take sides in any neighbour disputes.

The police may intervene in cases of noisy neighbour disputes. However, most noise nuisance cases are community and neighbourliness issues that can be resolved amicably, if both parties are willing to communicate.

In private disputes, owners have to take responsibility to resolve such matters themselves. If this fails, the parties can seek mediation at a community mediation centre. In extreme cases, the aggrieved party may wish to consult his solicitor.

In Ms Vidyadharan's case, the HDB advised her upper-floor neighbour to avoid creating excessive noise, especially at night. Her neighbour has assured us they will minimise the noise created by their children. The police, together with the local grassroots leaders, also intervened to get both parties to talk. The matter has since been referred to the Central Community Mediation Centre and we understand both parties have met for mediation.

For feedback on noise nuisance, residents can contact our branch office service line on 1800-2255432 during office hours. Our HDB branch office will look into the feedback and give necessary assistance where appropriate.

The police recognise that noise pollution at night is likely to cause greater annoyance. As such, for noise pollution complaints at night (typically between 10.30pm and 7am), police officers will attend the scene.

ASP Victor Keong
Assistant Director, Media Relations
Public Affairs Department
Police Headquarters

Tay Boon Sun
Senior Public Relations Officer
Corporate Development Department
Housing and Development Board

jq75

20-06-2005, 09:30 AM

HDB identifies 193 shops for restructuring programme

SINGAPORE : The Housing Development Board has identified 193 shops from seven sites for the pilot Restructuring Programme for Shops scheme.

The affected tenants have three months to decide if they wish to fold up or remain in business.

Business has been anything but blooming over the last four years for a florist at Sunset Way.

So George Tan and his wife have decided to shut it down for good.

They stand to pocket $120,000 for the two shop units if more than half of the tenants from the block opt to quit as well.

Tenants who wish to continue their business will be relocated to available vacancies in other blocks wherever possible, and given a removal allowance of $10,000.

The couple took over the premises in 1997 but found it increasingly hard to keep up with bigger competitors.

Mr Tan said: "We are dipping into our savings to try to sustain the last few years. We will find a job, work for people, and see in the next few years whether the economy will pick up."

While some cannot wait to jump out of troubled waters, restaurant owner Low Chin Huat, who is also the chairman of the Sunset Way Trades Association, wants to stay.

But chances are, he will probably have to go, as 12 out of 13 tenants from the block told him they wish to give up their businesses.

He still makes some profits but hopes more can be done to pull in the crowd.

Mr Low said: "This area has potential, I hope the HDB can jumpstart this place by bringing in big supermarkets like Sheng Siong or NTUC."

The 50 shops at Sunset Way area in Clementi serve some 3,500 flats and private housing.

Other sites identified for the programme are in Bedok, Bukit Batok, Bukit Merah, Bendemeer Road, Toa Payoh and Marsiling Drive.

In deciding the seven sites for the restructuring programme, the HDB considered factors like business viability and whether these areas can be revitalised.

A working committee for each of the seven sites will also be formed to help implement the programme.

Mr Heng Chee How, Minister of State for National Development, said: "Eventually after polling, if there is sufficient support here for RPS revitalisation then they will appoint a consultant and go deeper into determining what is the actual plan and how it can be executed."

Spring Singapore will co-fund up to half the cost of such projects.

HDB will spend six months monitoring the programme before identifying more shops for the scheme.

June 20, 2005
HDB SHOP RESTRUCTURING SCHEME
Woodlands shops ready to quit

193 shop tenants in seven precincts have been offered $60,000 if they want to close their business. Daryl Loo reports on their reactions
ALL the shops at the foot of two Woodlands blocks are likely to shut, as the majority of tenants there want to close shop.

Stuck in an old and out-of-the-way corner of the housing estate, it is getting impossible to soldier on, they say, as their customers grow older and families move out.

Competition from popular suburban malls like Causeway Point and 888 Plaza - both a few minutes' bus ride away - is also hurting them.

The two blocks make up one of seven precincts picked for a trial restructuring programme to reduce the number of rented HDB shops. The affected outlets - 193 in all - are in Toa Payoh, Clementi, Bedok, Bukit Merah, Bukit Batok, Kallang/Whampoa and Woodlands.

The Housing Board said about 2,500 of the 6,600 shops it rents out 'are not doing well'.

Under its programme, all the tenants in a block will be cleared out if more than half opt to retire. Those operating for more than five years will be given an ex gratia payment of $60,000, while those who want to carry on will be relocated and given $10,000.

The shop space will be converted into a void deck or turned over to communal uses.

In Woodlands, 10 of the 16 tenants at Block 1 along Marsiling Drive have already signalled their intention to quit, which means the shops there will be closed.

One of them is Mr Lim Ah See, 65, who has been running the Marsiling Sin Chuan Hun Departmental Store there since 1974.

The unofficial leader of tenants in the block who want to quit, he told The Straits Times: 'This is an old neighbourhood in the middle of nowhere. We have lost our old customers and aren't getting any new ones. There's no point carrying on.'

At the other block - Block 2 - Mrs Hoe You Guan, 47, who runs Causeway Interior Decoration, said more than half of her block's 19 tenants had also voiced their desire to close shop during a dialogue session with officials last month.

'We were all hoping that things will get better as the economy recovers, but it's been getting worse,' she said.

But some residents in the area would prefer the shops to remain. Said one of them, Mrs Tong Chuan, 70: 'If all the shops close, where can I go to buy things?'

--------------------------

June 20, 2005
Some not ready to put up the shutters
MR LIM Choon Huat has no intention of shutting down the business he built up over 31 years in Bendemeer Road.

He started out with one medical hall and now occupies six units offering the Chien Chi Tow brand of traditional Chinese medicines, massage therapy, herbal steam treatment and medical consultation.

'Business is good. I have a recognised brand here and all my regulars know where to find me,' said the 60-year-old businessman, who pays $1,400 a month in rent for each unit on the ground floor of an HDB block.

Accepting the Housing Board's offer of $10,000 per shop to relocate is not an option. 'The renovations over the years already cost much more. And where else can I go to find six shop units in the same block, and at such a low rent?'

In the same block, Mr Wong Kah Onn, 60, whose Lai Wah Restaurant occupies four units, also plans to stay put.

'Business is not easy here, but it is good enough for us to survive,' said Mr Wong, whose father started the 40-year-old Cantonese restaurant.

There is a shortage of parking lots and not many people live nearby, said Mr Wong, but the restaurant is part of the area's history.

While some tenants - mostly those running old-fashioned provision shops - are raring to retire, others like Mr Lim and Mr Wong are loath to uproot themselves and lose their regular customers.

In the same block, which has 15 shop units, the operator of an incense paper store, who preferred to be known only as Mr Lin, was disappointed at the lack of support for the HDB's buyout offer.

He felt that with the block's two major tenants - Mr Lim and Mr Wong - bent on staying, he was not likely to get the $60,000 payout he had been hoping for.

This question of staying or going is being pondered by tenants in the other 21 blocks picked for HDB's pilot project.

In Bedok, provision shop operator Tay Ngian Heng, 60, said he wants to go, but is not sure if the other seven tenants in his block agree.

'For those of us running provision shops, we cannot fight NTUC FairPrice or Sheng Shiong. But there's a clinic here, a dentist and a Chinese sinseh, and they probably want to stay,' he said.

An HDB spokesman said Spring Singapore and the local merchant associations will be in touch with individual tenants to address their concerns

jq75

20-06-2005, 09:38 AM

For more city buzz, build more HDB flats
Monday • June 20, 2005

To create buzz and life in Chinatown, the Housing and Development Board and private developers should consider building more high-rise residential flats around the Chinatown, Tanjong Pagar and Upper Cross street areas, as close to the MRT stations as possible.

Once a critical mass is achieved, crowds and tourists will automatically be drawn towards the Chinatown area and business will flourish to serve the many residents living there.

There are just too few people living downtown to generate the life needed for an all day-and-night bustling city centre.

How to do business for only one month per year during the Chinese New Year period and sleep the other 11 months?

Even mainland Chinese tourists are noticeably fewer in numbers, as it appears that they are all flocking to Hong Kong and Macau, and contributing to the tourism boom there.

Letter from

Lim Boon Hee

jq75

21-06-2005, 08:06 PM

ALL ABT HDB SURVEY FINDINGS

From Today

Elderly more anxious about future

Latest HDB survey also shows half of those polled had no retirement plans

Tuesday • June 21, 2005

SINGAPORE'S growing elderly population is feeling less well-off and less optimistic about their future, according to the latest survey by the Housing and Development Board (HDB).

Carried out in 2003, the Sample Household Survey covered 7,300 households across all HDB towns and estates. In the survey, which is conducted every five years, "household" refers to a group of persons who may or may not be related, living together in a unit.

The proportion of "elderly households" — or households headed by someone who is 65 years and above — in HDB estates has increased from 9.2 per cent in 1998 to 10.7 per cent in 2003, with more elderly living in older towns and estates like Bukit Merah, Queenstown and Bedok.

More elderly persons — from 14.7 per cent in 1998 to 21.1 per cent in the latest study — were also living alone.

While they were generally satisfied with their life, they were also less optimistic about the near future. Only 15.2 per cent felt that their lives would be better five years down the road, compared to 29.7 per cent in the survey done five years before.

Among the various aspects of life they had to rate, they were least satisfied with their health, their household income, medical services and the cost of living — all factors that they also rated as being important to them.

What was worrying, though, is that despite their apparent concerns about financial matters, half of the elderly surveyed had not planned for their retirement. Many in this group said that they were jobless and were more concerned with day-to-day living.

Significantly, while nine in 10 households across Singapore classified themselves as middle class, elderly households seem to have a poorer perception of themselves. In fact, one in five elderly households saw themselves in the lower class of society.

Commenting on the sense of pessimism among his peers from various income groups, 72-year-old Dr P N Avabhani, who lives in a 5-room HDB flat with his mother and wife, said that they might have grown more pessimistic because of the rising cost of living and longer life expectancy.

"Many retirees' lifestyles are based on their income before retirement. In reality, there is always room for pessimism but one has to adjust to circumstances," he said.

Dr Yap Mui Teng, a senior research fellow at the Institute of Policy Studies, who specialises in poverty alleviation policies and issues relating to the elderly, said that this pessimism "may be a reflection of the situation of family members on whom the current generation of Singaporean elderly is highly dependent".

"The economic downturn may affect them indirectly through their family members, even if the elderly themselves are not in the labour market," she said.

"If this is true, then the economic situation — particularly regarding employment — of the working population supporting the elderly needs to be worked on."

-----------------------------------------------------------------------
FROM CNA

More living in HDB flats, average household size smaller: HDB survey

SINGAPORE : The number of people living in HDB flats has increased by 5.2 percent to 2.84 million in 2003.

The last survey was conducted in 1998.

The HDB Sample Household Survey, conducted once in five years, also found that average household size has shrunk considerably from 6.2 persons in 1968 to 3.7 in 1998 and 3.5 in 2003.

Another key finding is the rise in average monthly household income - from $3,719 in 1998 to $4,238 in 2003.

Also, in 2003, fewer households said they were inclined to move in the next five years - only 18.6 percent compared to 35.7 percent in 1998.

And "buying" beat "renting" hands down - an overwhelming 95.6 percent of households interviewed prefer to own rather than rent a flat.

Eight such surveys have been completed since 1968.

The latest covered 7,300 households in all the HDB towns and estates

-------------------------------------------------------------------------------

From ST

June 21, 2005

THE TIES THAT BIND
Apart, yet close
VISITING her elderly parents in Bedok Reservoir has become a weekly practice for Mrs Christine Wong, 42.

With husband and children in tow, she and her four older siblings and their families meet every Saturday at their parents' flat without fail.

'It is our duty to visit them and it's important for family members to spend time together,' said the homemaker who lives in Sengkang, a 20-minute car drive away.

She used to live closer to her mother, Madam Ong Ah Choo, 76, in Tampines. But when Madam Ong decided to move from a four-room flat to a three-room flat in Bedok South and then later to Bedok Reservoir, Mrs Wong moved to Sengkang where the flats were more affordable as compared to Bedok.

Madam Ong appreciates her children's efforts to spend time with her. But she and her husband prefer to live alone.

'My children offered to let me live with them, but if I choose to stay with one over the other, they will think I am biased,' she said in Hokkien.

'It's much better if we all lived separately. Besides, I have friends in the area to keep me entertained.' -- MELISSA LWEE

--------------------------------------------------------------------------------

Under one roof

MADAM Florence Wong has lived with her parents-in-law for the past 27 years.

Her husband, Mr Andy Choy, 55, had insisted on living with his parents after his marriage since he was the eldest son in the family.

In fact, Mr Choy had told Madam Wong this even before they started dating.

'I went into this marriage with open eyes, and I think that is why we all can live in harmony now,' said the 51-year-old beautician in Mandarin.

Even after giving birth to their only child, Mr Edward Choy, 26, all three generations continued to live under the same roof.

Madam Wong always liked living with her parents-in-law and lives by the Chinese mantra: 'An elder in the family is as good as precious treasure.'

Her parents-in-law also helped out by looking after their son when both Madam Wong and her husband were working.

Mr Edward Choy himself would also like to follow in his father's footsteps.

'I'd like to live with my parents after I get married,' he said.

'But I guess I don't have to, especially if my future wife cannot come to terms with it.' -- MELISSA LWEE

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More elderly people want to live alone

Even if they have children or siblings who could take them in, many prefer their own space

By Theresa Tan
A GROWING number of elderly in Singapore, seeking peace and quiet in their twilight years, would rather live alone than face the conflicts which can come from living with their children.

As today's fast-paced society leads to stressed-out workers and the rise of nuclear families, a significant number of those aged 65 and over in HDB estates have chosen to go solo.

Experts interviewed say that it is not what the elderly really want, but their way of avoiding friction with loved ones.

A 2003 survey found that 21.1 per cent of the senior citizens living in HDB estates lived alone.

And the number could rise sharply, as 24.3 per cent indicated they would rather live by themselves. In 1998, only 15.2 per cent wanted to do so.

Sociologist Paulin Straughan said: 'Wanting to live alone is probably a pragmatic reaction on the part of these seniors, as they know their kids want to live by themselves.'

While the HDB researchers did not ask the respondents why they wanted to live alone, an HDB spokesman said that the majority who expressed such a desire were either single or widowed.

And they preferred to live alone, despite having children or siblings who could take them in.

Many also worried about burdening their children financially and emotionally.

When the latest HDB survey was undertaken, Singapore was reeling from some of the toughest economic times since independence. That affected the confidence of many of the elderly who had witnessed the country's steady growth over the years.

For example, 21.6 per cent of elderly households - which are headed by someone aged 65 or older - saw themselves as lower class, compared to 8.9 per cent for all households.

And only 15.2 per cent of elderly households felt that their lives would be better in five years' time, compared to 42.5 per cent for all HDB households.

Deteriorating health, retirement and loss of income, and an increasing dependency on their children, might contribute to this gloomy outlook in their later years.

Mr Phua Kok Tee, 68, Singapore Action Group of Elders (Sage) chief executive officer, said: 'As you age, you know that all kinds of illness might strike you.

'Hence, you might be less confident of the future. Many old folks are just living day by day.'

But with the Singaporean family rallying together in difficult times, the majority of the elderly received financial support from their children.

However, 15.7 per cent were left to fend for themselves, and got nothing from their children.

Experts interviewed did not take a harsh view of this group of children, saying that many were just too strapped financially to support their parents.

The call now is for more elderly-oriented activities, to engage this growing group and give them something to look forward to.

Mr Phua said: 'When old people have lots of free time and don't know what to do, they will start to think of all sorts of silly things which may get them depressed.'

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June 21, 2005
Another survey shows income gap widening

THE income gap has widened. The average household income of those living in one- and two-room flats has dropped even though HDB dwellers, in general, are better off.

The decrease is a first in 35 years, according to the latest HDB household survey.

Household income of one-room flat-dwellers fell from $1,336 a month in 1998 to $1,108 in 2003 while that of two-roomers slipped from $1,691 to $1,445.

On the other hand, average household income of HDB flat dwellers rose from $3,719 to $4,238 a month.

The picture tallies with the results of a Household Expenditure Survey, released last week by the Department of Statistics.

It shows the bottom 40 per cent of households in Singapore suffered a drop in income between 1998 and 2003, despite a rise in overall income.

To help these less well-off families, National Trades Union Congress chief Lim Boon Heng had suggested: working to further lower the unemployment rate, keeping older workers in jobs longer and pushing for retraining and redesign of jobs.

The HDB survey, done in 2003, found that the unemployment rate among the working population living in HDB flats had increased, from 4.9 per cent in 1998 to 7.8 per cent in 2003.

The chairman of the Government Parliamentary Committee for National Development and Environment, Dr Amy Khor, suggested that grassroots leaders help identify the needy by doing more house visits of one- and two-room flats.

'They should also be given priority in aid for offsetting any increases in cost of living,' she added. -- TAN HUI YEE

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June 21, 2005
Children move out but retain family ties

Married children tend to live on their own but remain close to parents

By Yap Su-Yin
THE ties that bind the Singapore family are as strong as ever but a trend is starting to unfold: Married children and their parents often do not live under the same HDB roof.

But their homes tend to be near each other, with almost every parent saying the kids visit at least once a month.

The closer their homes, the more frequent the visits, with one out of five getting daily visits from their married children, revealed the latest HDB Household Sample Survey released yesterday.Sociologists have dubbed the phenomenon 'intimacy at a distance'.

It is inevitable in highly urbanised areas and they foresee it spreading, because few can afford to buy a home big enough for an extended family to live under one roof.

'So, families have to find a new way to express love for one another beyond just looking at how much time you are with each other in the same house,' said sociologist Paulin Straughan, associate professor at the National University of Singapore.

At the same time, the elderly need to have greater confidence that their children will be filial, she added.

Prof Straughan was commenting on a finding in the survey, conducted every five years since 1968, to help HDB plan towns, design flats and manage estates.

The latest survey of 7,300 HDB homes was done in 2003 and when compared with that of 1998, it shows more people are better off and feel good about their lives. Almost everyone wants to own, not rent, a flat and for many, the higher the flat, the better.

Among those who plan to move in the next five years, far fewer want to upgrade: 49 per cent compared to 74 per cent in 1998.

HDB residents, who make up about 85 per cent of the population, also have a greater sense of belonging to their neighbourhood. The elderly, especially those in their 60s, are highly visible in community activities.

However, as Singapore grows older, more elderly folk aged 65 years and older prefer to live on their own: About 21,000 more of such homes have emerged.

But inter-generational relationships continue to thrive, with about 40 per cent visiting their parents for childcare support, almost one-third to share a meal with them, while close to 20 per cent just want to keep in touch. Almost three-quarters also give their parents money.

The survey found that family life and personal health are most important to HDB dwellers and their high satisfaction in these areas indicate that their needs had been met.

It shows the family is still considered an important unit of society and has remained intact. 'This finding supports policies to encourage family members to live together or near each other,' added the report.

The survey also found that many want to live within walking distance of one another but do not. What prevents them from doing so, among others, is the availability of more attractive and affordable flats in newer towns for younger families. On the other hand, the older folks prefer to stay put in mature HDB estates where they feel more at home.

So the challenge, said Prof Straughan, is for the authorities to plan for paired housing, where the larger home for the main family is beside a smaller one for the elderly parents.

'This way, the family unit can remain together and yet separate,' she said.

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June 21, 2005

81% of families 'staying put' in existing flats

Economic downturn and depressed property prices curb plans to upgrade

By Tan Hui Yee
THE economic slowdown and depressed home prices of recent years have severely dampened aspirations to move to a bigger, better home, a survey of Housing Board residents has found.

The 2003 study revealed that about 81 per cent of households saw themselves staying on in their present home in the next five years. In 1998, the last time the survey was done, about 64 per cent said they would be staying put.

Among those wanting to move, about half were hoping to upgrade. Most also eyed four-room flats.

Significantly, a third wanted to move to a smaller home.

In 1998, three-quarters were planning on a bigger flat or going private, and five-room units were the top choice among those who wanted to move. Just 13 per cent were looking to downgrade then.

Commenting on the more moderate expectations, the chairman of the Government Parliamentary Committee for National Development and Environment, Dr Amy Khor, said: 'Worries about job security still persist. The home owners have also seen the value of their flats fallen.

'Gone are the days when people expected flat prices to increase indefinitely. Singaporeans are now more conservative about purchasing a flat.'

Housewife Sally Chan, 35, who has been living in a four-room flat in Choa Chu Kang with her husband since 1996, seems typical of this new breed.

Asked why she chose a four-roomer, the mother of three sons replied: 'I prefer it simple and small.'

It would be difficult for her family to move to a bigger place now. Their monthly household income has been more than halved to $2,500 since she quit her job in 2001 to look after her children.

The survey, which polled 7,300 households, also found that 55 per cent were 'content' with the housing they had. In 1998, about 43 per cent were.

Property agents are divided on the effect that the overall moderated expectations would have on the market.

Some, like PropNex division director Eric Cheng, said it will mean the demand for bigger flats will continue to lag behind that for smaller flats, which it has in the last 18 months.

Others, like Mr Eugene Lim, assistant vice-president of ERA Singapore, are hopeful that the demand for bigger flats will pick up once more people become confident about job prospects.

While the survey found that most have put their housing dreams on hold, at least one group of people are not scaling down their expectations.

Those who wed between 2000 and 2003 are opting for bigger flats for their first homes.

The biggest proportion - about 37 per cent - went for five-room flats over other sizes. In the 1990s, 22 per cent opted for one of these.

The managing director of property firm C&H Realty, Mr Albert Lu, suggested that this could be due to couples marrying later and therefore having more savings to spend on their homes.

But lifestyle choices appear to count too. Administrator Kenny Tan, 31, who moved into a five-room Sengkang flat with his wife in 2000, explained: 'I like to have friends over at my home, so my living room had to be big enough for a gathering.'

The couple's plan to have three to four children also made them go for a bigger flat. They now have a three-year old daughter.

jq75

21-06-2005, 08:10 PM

Face of the HDB heartlanders (http://straitstimes.asia1.com.sg/mnt/media/image/launched/2005-06-21/hdb.pdf) :)

jq75

21-06-2005, 08:12 PM

HDB sells 91 of 100 surplus unsold flats

By Daryl Loo
THE Housing Board has sold 91 of the 100 flats it had trouble finding buyers for previously, a month after the homes were put on the resale market.

The scheme, which made the flats available to a wider group of buyers, was a trial effort to help clear its surplus stock of about 10,000 unsold units. The 100 flats it offered were built about five years ago and have been unoccupied since.

As resale flats, they can be sold without the restrictions that bar singles, permanent residents and those who sold their private homes in the last 30 months, from buying new flats.

The HDB said in response to queries yesterday that option fees had been collected for all 50 of the five-room flats it offered at Jurong West, and for 41 executive flats in Jurong West, Bukit Panjang and Sengkang. Nine executive flats at these three towns are still available, it added.

The flats were priced between $194,000 and $219,000 for the five-roomers and between $275,000 and $346,000 for the executive units. The HDB said the prices were determined based on market value, and took into account the locations, the fact the flats are not renovated and prices of other resale units in their vicinity.

Property agents said the strong sales mean the HDB is likely to sell more units this way. Some of the agencies have already offered to market the flats. ERA Singapore's assistant vice-president Eugene Lim said: 'We've expressed our interest, and HDB said it'll consider it.'

The managing director of C&H Realty, Mr Albert Lu, said his firm is also very keen to get involved.

An HDB spokesman told The Straits Times that while it now has a new way of clearing its stock, it will carry on with its the Walk-In Selection scheme as the main method of finding buyers for unsold flats. This is because the main target group for HDB flats is still eligible first-time citizen families.

jq75

22-06-2005, 11:36 AM

HDB SURVEY FINDINGS PART 2

June 22, 2005
One in three HDB dwellers ready to give high life a try
View, breeze, lack of noise, 'top-of-the-world' feeling cited as reasons

By Daryl Loo
ON A clear day, Mrs Joanna Wong can see as far as Changi Airport control tower from her 40th-floor flat in Toa Payoh.

'The view is great, I can see almost the whole of Singapore. And being so high up makes me feel I have a lot of privacy,' said the 48-year-old mother of two, whose family moved into their new top-floor flat a month ago.

Living so high is new in Singapore and an HDB survey has found that Mrs Wong typifies the one in three HDB dwellers who is willing to live on the 40th storey or higher.

The main reasons: a great view, cool breeze, lack of noise and that 'top-of-the-world' feeling.

Mrs Wong's block in Toa Payoh Lorong 2 is one of four such highrises completed this year that are now the HDB's tallest flats.

This record will be broken in 2010 when 50-storey blocks at Pinnacle@Duxton are completed.

Living on high floors has gained acceptance in Singapore, according to the latest HDB Sample Household Survey, done in 2003.

The results, released on Monday, show that 58 per cent of residents are prepared to live on the 12th storey or higher. This can be compared to 1978, when 80 per cent preferred to live between the first and 11th floors.

The survey, done every five years, also found that more residents find the noise from their surroundings tolerable or minimal: 86 per cent compared to 83 per cent in 1998.

Experts said the findings indicate that residents have become more accepting of living in high-rise, high-density homes. This will give urban planners an impetus to build taller blocks that are closer to each other.

This will help optimise Singapore's limited land resources, they said.

Besides, building upwards is necessary to accommodate Singapore's projected long-term population of 5.5 million, said Associate Professor Chan Yew Lih, lecturer in architecture and urban design at the National University of Singapore (NUS).

She suggested that future 'super' high-rise blocks be located in or near the Central Business District 'to capitalise on the infrastructure and proximity to employment centres'.

This means residents won't have to deal with traffic jams, she said.

Prof Chan foresees a new challenge for planners: how to balance these super high-rise buildings with existing high-rise, medium-rise and low-rise developments so the Singapore skyline can be 'richer and more exciting'.

Assistant Professor Muhammad Faishal of the NUS Department of Real Estate is convinced the trend upwards will lead the HDB to tap the expertise of the private sector.

He gave the example of Pinnacle@Duxton. Its design was derived from a competition open to foreign architects.

Also, the HDB has launched a trial programme in which private developers can design, build and even price and sell its flats.

'With more private sector involvement, residents can look forward to flats that are better designed, and have better landscaping and features than today,' Prof Muhammad said.

Dentist Choy Keen Meng, 30, who has picked a 49th-storey unit at Pinnacle@Duxton, is among the new breed of HDB dwellers who are itching to live way up there.

He said: 'I can already imagine what the view will be like. My only grouse is we have to wait five years for the flats to be ready.'

--------------------------------------------------------------------------------

How different groups fared

Residents of one-room flats knew the fewest neighbours - an average of 7.7 - among all HDB dwellers.

Residents participated mainly in religious activities (24.5 per cent), festival or holiday events (23.8 per cent) and residents' committee activities (21.5 per cent).

Chinese residents scored the lowest with visits (33.3 per cent), and exchanging food and gifts with neighbours on special occasions (39.8 per cent). Malays scored the highest (visits 59.1 per cent, and food and gift exchanges 68.4 per cent).

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June 22, 2005
Kampung spirit alive in estates

By Yap Su-Yin
AN ERRANT neighbour, who repeatedly harassed a pair of elderly women in wheelchairs and their domestic helpers, got more than he bargained for when neighbours living in the same block in Yishun rallied to help.

They brought up the issue with the man's family, alerted each other to be careful, and even started a petition to raise the matter at the next Meet-the-People session.

'We are like brothers and sisters here and we watch out for each other. We care about what's going on because this is is our home,' said Mr Ahmad Dari, 65, who was at the void deck chatting with neighbours, all senior citizens, when The Straits Times interviewed him.

The strong community spirit and sense of belonging showed strongly in the latest HDB Sample Household Survey released on Monday.

Almost every HDB dweller (90 per cent) - more than ever before - feels this sense of belonging. The older the resident and the longer he has lived there, the stronger the sense of belonging.

The survey also found that those who felt a strong sense of rootedness to where they lived, knew more neighbours - suggesting attachment to people, not just a place, determined one's sense of belonging.

However, a quick check with 10 neighbours gathered informally at the void deck of Block 701B Yishun Avenue 5 pressed home the HDB's findings that, while most Singaporeans greet and chit-chat with their neighbours, few go further to visit or exchange food and gifts on special occasions.

The findings also showed that while HDB residents still knew an average of 10 neighbours each, the Chinese were the least neighbourly and had a weaker sense of belonging and community involvement than other ethnic groups such as Malays and Indians.

Still, the survey found that a heartening 11 percentage points more HDB dwellers help to keep watch on their neighbours' flats when needed, up from 40.9 per cent five years previously.

Time and availability of a communal place were often important ingredients for interaction.

'Most people from my block work and tend to keep to themselves. So I walk over to Block 701B, where there are older folk like me with more time to chat,' said Madam Betty Goh, 74.

She visits friends there as often as three times a week for exercise at the Joy Centre Neighbourhood Link on the second floor.

Although residents there have lived in their flats for only about three years, they felt the centre, with its gym facilities, news update service and social activities, has helped them get to know more people in their community in a shorter time.

Another Yishun resident, Mrs Mah Chiew Ing, in her 70s, added: 'We're so comfortable with our friends here, we leave our main door open. When neighbours pass by, they always take time to say hello.'

jq75

22-06-2005, 11:39 AM

A REAL ESTATE AGT POINT OF VIEW

June 22, 2005
Downgrading of flat not an option for some

I AM a real-estate agent and I would like to highlight the plight of Housing Board flat dwellers caught in a catch-22 situation.

Because of problems servicing his housing loan, someone who bought his resale flat at a high price may want to downgrade - but he can't.

The existing policy requires downgraders to borrow funds from banks and pay 4 per cent cash as down payment.

After selling his flat, the seller does not get back any cash proceeds at all. How then can he afford to pay the 4 per cent cash for the downgrade?

The seller cannot service his housing instalments and downgrading is not even an option!

The problem gets worse if the seller is unemployed and wishes to downgrade - he is broke, he can't service his loan, and banks and the HDB won't give him a housing loan.

Gibson Ho Khim Weng

jq75

24-06-2005, 08:52 AM

Report rogue contractors

Friday • June 24, 2005

WE thank Mr Sim Chin Hong and Mr Leow Theng Huat for sharing their experiences with window contractors in their respective letters on June 10 and 16.

Mr Sim suggested that Residents' Committees negotiate a collective deal with an authorised contractor to retrofit casement windows with aluminium rivets.

The Town Councils have already appointed Building & Construction Authority (BCA)-approved window contractors to offer window-retrofitting services to residents at competitive rates. Residents can check their Town Council notice board or newsletter for details.

If flat owners are in doubt on a particular contractor's advice, they can obtain quotations from other approved window contractors before they decide on one.

Mr Leow related his experience to alert other HDB residents of bogus contractors. It is best that residents ignore such bogus contractors and make it clear they are not interested in engaging their services. If harassed, residents can report to the Police. For HDB Registered Renovation Contractors, HDB can also take enforcement action as they are not allowed to tout or solicit for business in HDB estates.

For the benefit of other readers, we wish to reiterate that the law was passed in October 2004 to regulate the design and installation of windows in high-rise buildings so that they do not pose a danger to the public.

For casement windows fitted with aluminium rivets, these have to be changed to stainless steel rivets — by Sept 30 if the windows are more than 5 years old as at Oct 1 last year; or, if the windows are less than 5 years old as at Oct 1 last year, by their 5th year.

As window retrofitting works have to be undertaken by trained window installers employed by approved window contractors, a list of such contractors and details on retrofitting of windows has been posted on BCA's website at www.bca.gov.sg and HDB's InfoWEB at www.hdb.gov.sg Letter from TAY BOON SUN Senior public relations officer for Director (Corporate Development) Housing & Development Board (HDB)

jq75

25-06-2005, 09:46 AM

Homeowners may have to top up CPF if selling price is below market value

SINGAPORE : The property market may be on the mend - but prices are still depressed.

And it is not unusual for owners to be selling their properties below market value.

But analysts warn that if the transaction price is too far below the market value, the home sellers may have to top up their CPF with cash.

More than 90 percent of home buyers use their CPF to purchase properties.

For those who made their purchases between 1994 and 1998 - when prices were at their peak - they would be seeing steep losses.

They could minimise the loss by trying to refinance their loans at a lower interest rate.

Donald Han, Managing Director, Cushman & Wakefield, said, "I think for owners like this, there is an option for them. That is to go and refinance their property with a bank and try to restructure their loan and in that sense, under the new refinancing structure, the bank would have a first lien onto the property itself, as opposed to the CPF having the first lien."

There are others who may choose to sell their properties instead.

If they let go at prices that are more than 20 percent below what they had paid, this would have eroded their initial cash top-up and eaten into the CPF amount used for the purchase.

And in this case, they might have to top up their CPF with cash.

If the property is sold way below the market value, the CPF Board has the right to insist for a cash top-up.

Property analysts estimate that about 20 percent below market value is still acceptable.

But beyond that, it will be prudent for owners to check with the CPF Board before they make the transactions.

Analysts do not expect home owners to suffer huge losses, as the property market is now picking up.

Home prices have been inching up over the last 12 months - with the URA price index up by about 2 percent.

Some market-watchers say it will be a good time to buy and sell properties within this year.

Mohamed Ismail, Chief Executive Officer, PropNex, said, "Things are moving a bit more stable and even in our own side, we have seen more interest and transaction for private property, those below S$1.5 million. Therefore, there's no reason to wait.

"As far as public housing is concerned, the new rule of the 6 percent will take place from 1 Jan next year and will go to 8 and 10 percent, so any serious consumer who intends to buy and sell, this will be a better year. There will be more challenges ahead."

Some owners may take the opportunity to buy a bigger property at current market value - even if it means booking a loss on the unit they had bought at high prices. - CNA

jq75

25-06-2005, 09:52 AM

jq75

25-06-2005, 10:05 AM

June 25, 2005
Man got friend to fake HDB parking discs

A MAN who wanted to save up to $300 in parking fees asked his friend to forge two HDB season parking discs.

Chow Yew Leong, 44, knew that Quah Say Beng, 43, had made copies of the discs before and asked him for some. Between Feb 23 and 28, 2002, Quah worked on creating the fakes.

On April 24 that year, Chow used one of the fake discs when he left his van at a multi-storey carpark in Choa Chu Kang Street 62. But a carpark enforcement officer noticed the forgery and reported it to the police.

Chow was arrested later that day and two forged HDB season parking discs were seized from his van. The next day, the police picked up Quah at his home in Pasir Ris. They also seized his computer, a scanner, a printer and three parking discs. Another 10 parking discs were taken from his van.

Quah, who pleaded guilty to two charges, was jailed six weeks yesterday. Nine other similar charges were taken into consideration during sentencing.

Chow was sentenced to two weeks' jail, but will start his sentence on July 1.

jq75

26-06-2005, 04:11 PM

June 26, 2005
MYSTERY OF FALLING MARBLES

Strange sounds due to water in PVC pipes
Paranormal investigators' society comes up with explanation for sound of falling marbles with an experiment

By By Goh Wen Zhong
IF YOU'RE still hearing the sound of falling marbles in your flat, it could be your neighbour washing up at the sink.

After a five-hour experiment on Wednesday, members of the Singapore Paranormal Investigators (SPI), a society made up of paranormal enthusiasts, have come up with what it thinks is the real reason.

They say the sound comes from water trickling through PVC pipes, which gets distorted through concrete before emerging as the sound of falling marbles.

This phenomenon has been in the news lately.

It all started when The Straits Times Forum published a letter by bank executive Joseph Wong, who kept hearing the sound of falling marbles in his flat. A flurry of letters from other people followed, all saying they had also heard the sounds, and wanting to know the cause.

Some even suggested there might be a supernatural explanation.

But in a Sunday Times report on June 12, building experts said it might be caused by the rattling of water pipes when there's a change in water pressure, the contraction of high-strength steel cables embedded in pre-fabricated floors, or children actually playing with marbles.

The SPI was not satisfied. It wanted to narrow down the possible causes.

Said the society's treasurer, Mr Eugene Toh, 26, an insurance agent: 'We want to allay the concerns of the public with conclusive and reliable evidence to point out the cause.'

The society's month-long investigations hit paydirt on Wednesday when four of its members gathered at Mr Toh's home, an HDB maisonette in Bedok.

On the upper floor of the two-storey house, they dropped marbles big and small, flushed toilets, turned on taps and recorded the sounds.

They also recorded the sounds from the floor below.

They then compared the sound frequencies with a recording they had made of falling marbles.

Bingo.

SPI president Kenny Fong, 36, an assistant professor at the University of Macau, said: 'The frequency signatures of sound flowing from the sink through water pipes and that of falling marbles were almost identical.'

Asked about SPI's findings, Mr Shek Kam Chew, 68, who has 39 years of experience as a structural engineer, agreed that it was plausible.

For the SPI, which was registered as a society last month, the investigations do not end here. Mr Fong and his team want to do more tests to bolster their claim.

Anyone who is interested in participating can contact him via the SPI website at www.spi.com.sg

jq75

28-06-2005, 09:48 AM

jq75

28-06-2005, 09:51 AM

June 28, 2005
Four things to consider before taking that loan

I REFER to Mr Chong Kiam Khiun's letter, 'Beware pitfalls of reverse mortgage' (ST, June 24). All retirees who wish to take up a reverse mortgage should do the following:

Avoid taking lump sums to fund an extravagant lifestyle as lump sums accumulate interest charges at a much faster rate.

Take a lower monthly payout that can still fund one's current lifestyle.

Always make repayment towards the reverse-mortgage loan whenever one has any excess money so as to save on the interest charges.

Consult family members prior to taking such a loan.

Although there may be some pitfalls in taking a reverse-mortgage loan, the innovative idea of offering such a loan scheme to the asset-rich but cash-poor citizen is to be lauded.

It would be heartening if more financial institutions were willing to offer such mortgage loans to retirees, at a much more competitive interest rate.

Lim Hock Sen

jq75

28-06-2005, 09:53 AM

jq75

01-07-2005, 08:21 AM

July 1, 2005
Downgrading of flat not the only option

I REFER to the letter, 'Downgrading of flat not an option for some' (ST, June 22), by Mr Gibson Ho.

The Housing Board provides concessionary interest-rate loans for eligible citizen families who are buying their first flat, and those who are upgrading to bigger flats. As government subsidies are limited, they are given to those who need them most.

Flat owners with an outstanding HDB mortgage loan and who are in financial difficulty can consult their branch offices for advice on HDB's financial-assistance measures. These include reducing or deferring their monthly payments and paying the arrears in instalments. They can also rent out their spare bedroom(s) to generate income.

Those who wish to sell their larger HDB flats can generally use the proceeds, including money refunded to their CPF accounts, to finance the purchase of a smaller flat. If they have to take a bank loan but cannot afford the required cash down payment, they can consider buying a smaller resale flat.

If not, there are other housing options, such as renting a room/flat or staying with relatives until their financial situation improves.

HDB may also consider granting them a second concessionary loan, depending on the merits of the case.

However, those who are unemployed will not be able to meet the credit-assessment criteria for a housing loan from HDB or banks. They are advised to defer the purchase of another flat until their financial situation improves.

Loh Swee Heng
Deputy Director (Resale)
For Director (Estate
Administration & Property)
Housing & Development Board :)

jq75

01-07-2005, 08:22 AM

June 28, 2005
Who can I get to replace window rivets?

THE Building and Construction Authority (BCA) requires homeowners to have the rivets on casement windows changed from aluminium to stainless steel ones by Sept 30.

I have called several contractors and each time they tried to talk me into changing my windows, which are still in good condition.

When I made it clear that I wanted to change only the rivets, these contractors started giving excuses, like they don't have the correct size of rivets.

It seems the contractors are not interested in small jobs like changing rivets alone.

Can BCA supply me with a list of contractors who are willing to do such 'small jobs'?

What if I cannot find a contractor by Sept 30?

Raymond Wee Ping Ying

July 1, 2005
CHANGING WINDOW RIVETS

Over 650 approved contractors available

I REFER to Mr Raymond Wee's letter, 'Who can I get to replace window rivets?' (ST, June 28).

We will be pleased to provide Mr Wee with a list of approved window contractors for retrofitting his windows. He can contact the undersigned (telephone number: 6325-7377) for the list.

As there are over 650 approved window contractors, homeowners should be able to find a contractor to replace their window rivets before the Sept 30 deadline.

The complete list of contractors is available on our website (www.bca.gov.sg).

Teo Orh Hai
Executive Engineer
Building Plan and Management Division
Building and Construction Authority

-------------------------------------------
NTUC wants a share of the cake =:p

July 1, 2005
Look to NTUC Income Home Services

I REFER to the letter, 'Who can I get to replace window rivets?' (ST, June 28), by Mr Raymond Wee Ping Ying.

Mr Wee asked if there are contractors who are willing to provide services like checking windows and changing window rivets.

We wish to inform him that under our NTUC Income Home Services, we have a panel of reliable service providers that can attend to window matters.

The panel of service providers delivers quality services at reasonable prices. All jobs referred by us carry a 90-day warranty.

If Mr Wee is interested to engage a service provider from Home Services, he can contact our 24-hour hotline on 6788-8788.

Lai Meng
Head
Business Enterprise
NTUC Income

jq75

03-07-2005, 01:22 PM

July 2, 2005
Cashback curbs: HDB resale prices dip
Drop of 4.8%, though prices of flats with HDB loans down only 0.9%

By Tan Hui Yee
THE extent to which prices of resale Housing Board flats were inflated through illegal cashback deals came to light yesterday when flash housing price estimates for the second quarter of this year were released.

The estimates showed a 4.8 per cent drop in the resale price index between April and last month, compared to the first three months this year.

This is the first time since 2002 the index has fallen. According to data from the HDB, there was a 6.5 per cent drop in prices of resale flats bought with bank loans - used in the bulk of cashback deals - in the second quarter.

In contrast, prices of flats bought with loans from the HDB dipped 0.9 per cent.

Tighter rules for bank loans were introduced on April 1 to curb such illegal deals, where the buyer and seller of a flat collude to over-declare its price, so the buyer can get a bigger loan from the bank. Rogue valuers helped in the scam by inflating valuations.

At the same time, estimates from the Urban Redevelopment Authority showed that prices of new private homes rose by 0.4 per cent.

This is the fifth straight quarter they have risen, indicating that the long-awaited recovery in the property market is underway.

Responding to media queries on the drop in the resale price index, the HDB said the fall in the prices of secondhand flats is expected after the new measures removed the price distortion caused by cashback deals.

Anyone wanting a bank loan who uses his Central Provident Fund savings to buy a flat on the resale market now has to get the property assessed by valuers assigned by the HDB.

Property agents said HDB flat prices are now closer to their actual value and are therefore unlikely to fall further in the next few months.

The director of Dennis Wee Properties, Mr Chris Koh, told The Straits Times: 'There's nothing to panic about.'

While the anti-cashback measures slowed sales of flats in April - generally a good month for sales - as buyers adjusted to the new rules, agents said demand is returning.

ERA Singapore pointed out that house hunters will try to seal purchases before next year, when the amount of cash downpayment for a property will be raised to 6 per cent. It is 4 per cent now.

Commenting on the estimate for the private home market, analysts said the continued rise in prices bodes well for the sector, even though the second-quarter increase is smaller than the 0.7 per cent recorded for January to March.

An executive director of property consultancy DTZ Debenham Tie Leung, Mrs Ong Choon Fah, noted that because of concerns over job security, many HDB flat owners are still shying away from buying into the private market.

Another consultancy, Colliers International, suggested the small increase is partly due to the continued oversupply of private homes.

At the end of March, developers held a stock of about 14,900 units that can be sold.

Assuming 6,000 units are taken up every year, it will take 30 months to clear the stock, Colliers' associate director Tay Huey Ying pointed out.
:eek:

jq75

03-07-2005, 01:23 PM

BTO Exercise in Punggol

July 2, 2005
Premium HDB flats in Punggol up for sale

THE Housing Board has put up for sale 369 four-room flats in Punggol. These premium apartments, with better finish, go for $169,000 to $206,000.

They will be built only if the majority, say 70 per cent, are booked.

This is the second build-to-order project the HDB has launched this year.

The first, a 374-unit project called Tivela in Sengkang, received 1,528 applications.

Almost 90 per cent of the flats have been booked, so the HDB will call for a tender to build them.

The board had earlier canned two projects because of poor response.

They are The Anthias, with 134 three-room and 600 four-room standard units in Punggol Drive, and Coral Green, with 655 four-room premium flats in Fernvale Road in Sengkang.

The latest offer, called Coralinus, is in Punggol Central, a five-minute walk from Punggol MRT and LRT stations.

Schools such as Edgefield Primary, Punggol Secondary and Mee Toh primary are also nearby.

These flats, about 94 sq m each, are a notch better than standard HDB flats.

The bedrooms will have timber-strip flooring and the living and dining areas, glazed porcelain ceramic floor tiles. Buyers can also opt to have timber doors installed in the flat by paying about $1,600 more.

Would-be owners can apply until July 20. If the response is good, applicants can expect to book their flats in September.

The chief executive of property agency PropNex, Mr Mohamed Ismail, expects the flats to be popular as they are near an MRT station.

Four-room units have also tended to be the most sought-after type, he added.

jq75

04-07-2005, 06:29 PM

July 4, 2005
Contractor quoted more rivets for windows

THERE have been quite a few letters recently on the aluminium rivet replacement exercise, with several people wondering how to go about it, and others complaining about contractors they have contacted.

Not wishing to be unprepared, I took the precaution of checking on the HDB website to establish exactly the scope of work that was to be undertaken.

It was remarkably similar to the promotional leaflet given to us by a contractor.

The HDB pictures clearly point out the affected components, and the number of rivets to be replaced.

The contractor's quotation, based on the number of rivets, lulled one into believing it would be a simple process.

But things were not that simple.

The problem arose when the quoted number of rivets far exceeded my expecta- tion.

My assessment of the number of rivets needed for four large and four small casement windows, based largely on the HDB information, was 12 rivets per large window, eight rivets per small window, a total of 80.

An assessment based upon the contractor's own design was 16 rivets per large window, 12 rivets per small window, a total of 112.

Not wishing to spend too much time arguing with the contractor, I simply accepted what he said.

When you consider that each rivet is charged at 70 cents, that is an additional charge of $22.40, or 40 per cent more than expected.

If that is factored into the number of flats to be modified in Singapore, then it is a considerable sum.

The fact that the HDB may have forced the contractor to accept a price that he does not like is no reason to try and inflate his quotations to recover his costs.

By installing these additional rivets, it is possible that, instead of improving the installation, the contractor may have in fact weakened it, as additional holes had to be drilled into the slider, which did not form part of the original design of the slider.

Will we in a few years be faced with the situation of windows falling out because the slider mechanism has been weakened by the drilling of additional holes?

By taking it upon himself to drill more holes into a pre-designed sliding mechanism, is the contractor taking on liability for the subsequent failure of the mechanism?

Has the HDB taken this potential situation into account when awarding the contract?

Accidents so often happen when a design is changed without due consideration. We see the results of such situations in the papers.

Hopefully, this exercise will not spawn a multitude of such cases in years to come.

Robert Frederick Burch

jq75

04-07-2005, 06:32 PM

REVERSE MORTGAGE

Retirees need to know terms of mortgage
I REFER to the letter from Mr Chong Kiam Khiun, 'Beware pitfalls of reverse mortgage' (ST, June 24).

NTUC Income offers a reverse mortgage to assist a retiree to receive a monthly income to meet living expenses. The monthly income is taken as a loan charged against a private property and accumulates interest at a modest rate.

The loan is usually repaid at a future date when the retiree sells the property and finds another place to live. Alternatively, on the death of the retiree, the property is sold to repay the loan and the balance of the proceeds is returned to the estate.

To prevent any misunderstanding on the terms of the loan, we have taken the following measures over the years:

We explain the workings of the reverse mortgage to the retiree.

We ask a family member to acknowledge the retiree's acceptance of the agreement.

The retiree and a family member have to go to a lawyer's office to execute the agreement.

We also send an annual statement to the retiree. Details of the accumulated loan and other particulars, including the prevailing interest rate, are shown in the statement.

In the case quoted by Mr Chong, the reverse mortgage was taken in 1997. At that time, the agreement was signed in the presence of another family member.

Unfortunately, due to the drop in the price of the pledged property, the outstanding loan has reached the 80 per cent level faster than anticipated.

The retiree and family member are now discussing with us the best arrangement to repay the loan. As there is still a buffer of 20 per cent, we have sufficient time over the next two years to work out the best alternative.

The reverse mortgage has been helpful to many people. However, as this example shows, there is a need for the retiree to understand the terms and to make the appropriate adjustment to meet changing circumstances.

Tan Kin Lian
Chief Executive Officer NTUC Income

July 4, 2005
Reverse mortgage? More like home loan
I REFER to Mr Tan Kin Lian's letter, 'Retirees need to know terms of mortgage' (ST, June 28), on the reverse mortgages offer by NTUC Income.

The original spirit behind a reverse mortgage is to allow senior citizens with limited or no future income streams to unlock equity from their homes that are unencumbered.

In North America, borrowers under a reverse mortgage collateralise their properties with the lender (mostly a bank) and receive a monthly income from the lender.

The monthly income received derives from the calculation of the expected lifespan of the lender and the value of the property.

The lender will, in turn, charge a mortgage rate that is sufficient to pay for the bank's mortgage rate plus an insurance premium to protect the borrower against the possibility of an unexpected fall in property value.

The reverse mortgage becomes repayable, in full, when the sole remaining borrower dies or no longer occupies the home as his or her principal residence.

If the proceeds are less than the amount owed, the Federal Housing Administration absorbs the shortfall and makes an insurance claim payment to the lender.

But based on Mr Tan's description of the reverse mortgage, NTUC Income's version is just a housing loan that charges a higher interest rate than a bank.

The Monetary Authority of Singapore's 80 per cent loan value applies to these reverse mortgages and NTUC Income has first charge to an unencumbered property.

With NTUC Income charging an interest rate higher than a normal housing loan, the margin must be quite attractive.

Hopefully, we will see some competition in this scheme. I hope competition will help develop this scheme into a more socially responsible product.

Christopher Chan

jq75

04-07-2005, 10:15 PM

Bt Timah most well-off HDB estate
Fatter wallets at Farrer Rd

WELCOME to the Beverly Hills of HDB estates. This is where you can easily find the latest Mercedes, BMW and Lexus cars parked next to each other in the public carpark.
By Desmond Ng

02 July 2005

WELCOME to the Beverly Hills of HDB estates.

This is where you can easily find the latest Mercedes, BMW and Lexus cars parked next to each other in the public carpark.

And over here, it's common for households to have a maid. Just peek into any unit and chances are, you'll find one doing the cooking or ironing.

Yes, this is where you can rub shoulders with the upper crust of the HDB world.

If you live around Toh Yi Drive or Farrer Road, you'll be glad to know that your HDB neighbourhood is one of the richest in Singapore, according to the latest HDB Sample Household Survey.
Toh Yi Drive is about a five-minute drive from Ngee Ann Polytechnic.

The five-yearly survey, with the most recent one conducted in 2003, showed that the Bukit Timah estate - made up of just 2,402 units - has the highest average monthly household income at $6,508.
There are about 1,600 HDB units at Toh Yi Drive and about 800 at Farrer Road.

Bukit Timah has always been well-known as the choice of the rich, expensive bungalows and luxurious condominiums rule the largely private residential landscape.

According to the HDB survey, Bishan estate is No 2 on the list at $5,891 while Pasir Ris is a close third at $5,782.

At the other end of the scale, the Central area estate has the lowest average monthly household income at $3,155.

This area includes HDB flats in Chinatown, Little India and Tanjong Pagar.

The national average household income is $4,238.

One Bishan resident, Mr Glen Low, was surprised by the ranking.

Said the five-room home-owner: 'What? I thought my estate would be the richest. After all, we paid premium prices for our homes here.'

At the Bukit Timah estate, about 44 per cent of the total number of flats, or 1,050 units, are five-room or bigger.

UNIT PRICES

And they are pricier.

As an indication, a 17-year-old Toh Yi Drive five-room flat was sold for $396,000 in June. A similar unit in nearby Bukit Batok went for $313,000 in March - some $83,000 cheaper.

Mr Eugene Lim, assistant vice-president of property firm ERA Singapore, believes typical HDB residents in Bukit Timah are professionals and managers in their 30s and 40s, not the elderly.

'If you're in that age group, chances are, your pay should be quite reasonable. And most of these residents probably moved there because they have children going to the good schools around there. You have Nanyang Primary and St Margaret's school near Farrer Road,' he said.

He added that Bukit Timah is a premium area because of its central location, amenities and good schools.

Art director Zoe Ong, 31, lives in a four-room Toh Yi Drive flat with her mum. She has been there for more than 15 years.

She said: 'The valuation of the flats here has always been higher, even if the economy is down. I guess it's because this is prime Bukit Timah area.'

The same survey showed that HDB households with a monthly income of $10,000 and above has increased, from about 23,000 households in 1998 to 42,000 in 2003.

The economic well-being of HDB households has improved for all ethnic groups and the high ownership of consumer goods also reflects the rising standard of living among HDB residents.

The survey findings show that more than half of HDB households had Internet access and there were more households owning DVD/VCD players, airconditioners and computers than in 1998.

And despite the unfavourable economic environment, the average household income of residents living in three-room and bigger flats continued to increase in 2003.

This was mainly due to higher wages, and not to an increase in the number of income earners in the households, according to the survey.

The findings showed those living in newer towns tended to have higher average monthly household incomes.

The reason: There are more young residents in newer towns and they tend to have higher education and income levels. This is why newer estates like Punggol and Sengkang are ranked quite high on the household income list.

--------------------------------------------------------------------------------

They paid $600,000 for maisonette :s13:

IN many ways, this Tan family (right) living in the Toh Yi Drive area is typical of the upper class of HDB dwellers.

The family of five live comfortably in a nicely renovated two-storey executive maisonette which they bought for more than $600,000 five years ago.

The family paid over $50,000 for renovation.

A similar unit there was sold for $438,000 in June.

Their household income is above $6,500 although businessman Tan J Y, 50, declined to be more specific.

Their family car is a Volvo 960 and they have a maid to take care of their household chores.

In the house, aside from the usual television and computer, we saw a piano and two guitars for the three children aged 12 to 17.

Mr Tan said he's not surprised by HDB's findings as there are plenty of luxurious Mercedes and Lexus cars in his estate to suggest that his neighbours are quite well-off.

He reckoned that most of them are professionals.

''The only problem is many Singaporeans are asset-rich but cash poor,'' he said.

His wife, Mrs Tan, said they don't consider themselves rich and most of their money is spent on the children and their education.

jq75

06-07-2005, 08:08 AM

Riveting proposal

Private flatowners slow in replacing window rivets advised to negotiate collectively with contractors for cheaper rates

Wednesday • July 6, 2005

Tor Ching Li
chingli@newstoday.com.sg

SOME 92,000 high-rise property homeowners are putting themselves at risk of a $5,000 fine and six months' jail. That is, if they fail to retrofit their outward-opening casement windows with stainless steel rivets by Oct 1.

According to the Building and Construction Authority (BCA) and Housing Development Board (HDB), only 8 per cent of affected private households and 61 per cent of affected HDB flat-owners had complied with the BCA's window retrofitting orders at the end of last month.

Despite a one-year grace period — from when the BCA's window safety legislation came into effect last October — only 4,700 of the 60,000 private households and 61,000 of the 100,000 or so HDB flatowners have replaced their old aluminium rivets with stainless steel ones.

The legislation was brought about by the recurring problem of falling windows, said the BCA.

Almost 80 per cent of windows that had fallen in HDB blocks were casement windows with aluminium rivets.

This year, 56 of the 73 cases of falling windows in HDB flats involved casement windows installed by flatowners. Only one casement window has fallen in a private estate this year.

While the BCA keeps track of households that have retrofitted their windows — based on reports completed by the BCA-approved window contractor and submitted by the homeowner — a spokesman told Today it "does not rule out the possibility of carrying out audit inspections where necessary".

Retrofitting work is progressing at a slower pace at private estates due to the lack of collective arrangements that HDB estates enjoy.

Most town councils have appointed window contractors to offer window-retrofitting services to their residents at preferential rates — one-off inspection costs ranging from $20 to $40 are waived and rivets are usually priced no higher than 80 cents each.

The HDB estimates that at 80 cents a rivet, and with one window panel requiring 16 rivets, it would cost $12.80 to replace a window panel — or around $153.60 for a three-room HDB flat with 12 window panels.

In contrast, if a flatowner were to approach a window contractor on his own, the prices would be much higher — $30 to $40 for inspection work and between 70 cents and $1 per rivet.

The BCA has advised that it does not set a fixed rate for the window retrofitting works, and homeowners should negotiate with the contractor.

Some private estate management committees have taken the initiative to negotiate their own collective retrofitting exercise with contractors.

Mr Edward Tan, condominium manager for the 713-unit Yew Mei Green told Today that his en-bloc arrangement with a BCA-approved window contractor resulted in the waiver of the one-off inspection fee and a promotional price of 50 cents a rivet.

"We decided to go ahead with this exercise after considering the price savings and the ability to ensure safety control and accountability with a pre-selected contractor," said Mr Tan.

Some, however, were concerned that mass-retrofitting exercises would result in shoddy work.

Responding to this, the BCA spokesman said: "Coordinated retrofitting exercises in private estates would benefit residents, as the work would be carried out in a systematic and scheduled manner.

"It would also be more cost effective because of economies of scale. Security of the estate could also be better controlled, as only the pre-selected contractor would work in the estate."

Should a window come loose due to poor retrofitting, contractors could also be fined up to $5,000 or jailed for six months.

jq75

06-07-2005, 09:00 AM

June 25, 2005
55th-year CPF shock for property owners

WHILE I commend the Government for implementing CPF for our old age and housing payments, there are big problems for people turning 55, especially those who have outstanding housing loans.

Upon reaching the 55th birthday, funds from the Ordinary Account are transferred to a new account called the Retirement Account and only 50 per cent is handed out to the account holder.

The Ordinary Account now becomes zero. The minimum sum required for the Retirement Account has now been increased from $84,000 to $94,000.

Assuming the member is still working at age 55, any further contributions go into the Ordinary Account and some part of this will go into the Medisave Account because a minimum sum is also required here.

In such a situation, one has to sell the property and downgrade. That has its own set of problems. A bank will not give a long-term loan to old people. The CPF Board will not allow the member to withdraw money from the Retirement Account to pay for the property nor does it allow the member to utilise the full monthly CPF contributions to pay for the housing instalments because part of it must go into the Medisave Account.

So what do we do? Is there any guarantee that the Government will not increase the minimum sum set aside for Medisave, as this will reduce the amount in the Ordinary Account? This is a vicious circle.

I wonder how many people are aware of what is going to happen to their CPF Ordinary Account when they reach age 55.

I was taken by surprise because when we bought our house, nothing was mentioned about the 55th-year 'entrapment'. Neither did we receive anything in the mail to tell us that this would happen. Several people I spoke to seemed shocked that this was going to happen to them too but did not know about it. So I am not alone.

Perhaps the CPF Board should set up a 'financial counselling' division to advise and guide anyone buying property with CPF funds. Writing to the member one month before the 55th birthday about it is too late. We are heading towards a 'financial crash'. Would the board please tell us how it can help widows and others caught in this dilemma?

Kordial Kor (Mdm)

July 6, 2005
Minimum Sum: Use excess to pay for housing

I REFER to the letter, '55th-year CPF shock for property owners' (ST, June 25), by Madam Kordial Kor.

We would like to correct Madam Kor's misperception that the 'Ordinary Account becomes zero' when one reaches age 55 and members are left with no savings to service their housing loans.

Upon turning 55, members are required to set aside the CPF Minimum Sum in the Retirement Account. The Minimum Sum is calculated based on the year the member reaches 55.

Members who turn 55 within the period of July 1, 2005 to June 30, 2006 will have to set aside $90,000 as the Minimum Sum. They have the option to withdraw any excess balance after setting aside the Minimum Sum or keep it in their CPF account to continue servicing their housing loan.

That members have to set aside the Minimum Sum is not new. It was implemented in 1987. Each year, the Central Provident Fund Board informs members through the mass media, its newsletters and website of the new Minimum Sum applicable to the cohort turning 55 from July 1 for the respective year.

We also remind members of the Minimum Sum applicable to them when they apply for withdrawal. Members can obtain more information on the Minimum Sum scheme at our website www.cpf.gov.sg

The board agrees with Madam Kor on the importance of educating members to exercise financial prudence when using their CPF to purchase property. It has made available a comprehensive education programme to explain to members the importance of planning for retirement, including planning for their housing needs.

Our web-based member-education initiative, my cpf at www.cpf.gov.sg, is aimed at helping members make informed decisions at major life stages. My cpf has a dedicated Housing Site with online calculators that help members plan and allocate their financial resources appropriately for their housing needs to ensure a secure retirement.

Lim Boon Chye
Director (Corporate Affairs)
Central Provident Fund Board

jq75

06-07-2005, 09:01 AM

July 4, 2005
Reverse mortgage? More like home loan
I REFER to Mr Tan Kin Lian's letter, 'Retirees need to know terms of mortgage' (ST, June 28), on the reverse mortgages offer by NTUC Income.

The original spirit behind a reverse mortgage is to allow senior citizens with limited or no future income streams to unlock equity from their homes that are unencumbered.

In North America, borrowers under a reverse mortgage collateralise their properties with the lender (mostly a bank) and receive a monthly income from the lender.

The monthly income received derives from the calculation of the expected lifespan of the lender and the value of the property.

The lender will, in turn, charge a mortgage rate that is sufficient to pay for the bank's mortgage rate plus an insurance premium to protect the borrower against the possibility of an unexpected fall in property value.

The reverse mortgage becomes repayable, in full, when the sole remaining borrower dies or no longer occupies the home as his or her principal residence.

If the proceeds are less than the amount owed, the Federal Housing Administration absorbs the shortfall and makes an insurance claim payment to the lender.

But based on Mr Tan's description of the reverse mortgage, NTUC Income's version is just a housing loan that charges a higher interest rate than a bank.

The Monetary Authority of Singapore's 80 per cent loan value applies to these reverse mortgages and NTUC Income has first charge to an unencumbered property.

With NTUC Income charging an interest rate higher than a normal housing loan, the margin must be quite attractive.

Hopefully, we will see some competition in this scheme. I hope competition will help develop this scheme into a more socially responsible product.

Christopher Chan

July 6, 2005
Reverse mortgage? Amcis HomeStay safer

I REFER to the letter, 'Reverse mortgage? More like home loan' (ST, July 4), by Mr Christopher Chan and would like to highlight the high risk involved in such loans. Unless underwritten by a housing authority, such as the Federal Housing Administration in North America, the risk of losing one's home under a reverse mortgage amid falling property prices, rising interest rates and health costs, and falling mortality rates, is very real.

In response to the needs of retirees, the Association of Management Corporations In Singapore (Amcis) has developed an alternative to reverse mortgage: Amcis HomeStay. Depending on the location and quality of a property, our one-year experience has shown that the modest income from renting out vacant rooms in our retirees' homes has, in many cases, exceeded the monthly payments from reverse mortgages.

In addition to the financial benefit, HomeStay hosts get to interact with foreign tourists, expand their network of friends and improve their quality of life, something no reverse mortgage can offer.

Unfortunately, owing to the infancy of the programme, we are unable to guarantee a fixed income for our members and, for this reason, some do enter into a reverse mortgage as a supplementary form of income, with HomeStay acting as a buffer against unexpected medical expenditures as well as a hedge against overdrawing on the housing loan.

However, with Singapore's ambitious tourism-promotion programmes and given more time for our brand of homestay holidays to mature, we should be able to guarantee a minimum income no less than those offered by reverse mortgages.

Further information on our SeniorStay and other HomeStay programmes can be obtained from www. homestayholidays.com

Francis Zhan
President
Association of Management Corporations In Singapore

--------------------------------------------------------------------------------

jq75

06-07-2005, 09:02 AM

July 6, 2005
Higher interest to cover higher risk, admin cost

I REFER to the letter from Mr Christopher Chan, 'Reverse mortgage? More like home loan' (ST, July 4).

Under a home loan, the borrower takes a large loan to buy a house and repays the loan in instalments over many years.

Under a reverse mortgage, the owner already has a property that is fully paid for, and now pledges the property to draw out a monthly sum to meet living expenses.

The reverse mortgage is especially suited to a retired person who has exhausted personal savings and is left with a property as the remaining asset, that is, 'asset rich and cash poor'.

We charge a slightly higher interest rate on a reverse mortgage to meet the higher risk and cost of administering the loan.

In past years, other financial institutions were not prepared to offer this type of loan. The margin is not as attractive as suggested by Mr Chan.

NTUC Income offered this facility to start the market. I hope that other financial institutions will now be prepared to enter and help to develop the market.

We were not able to provide insurance against loss in value of the property, as it is risky and difficult to manage. In the United States, the scheme is run by the government. It is not operated as a voluntary insurance arrangement.

Tan Kin Lian
Chief Executive Officer
NTUC Income

jq75

07-07-2005, 08:24 AM

jq75

07-07-2005, 08:26 AM

Steel rivets not so useful if aluminium fasteners remain
Thursday • July 7, 2005

Balwant Singh

THE article, "Riveting proposal" (July 6) noted the fact that it costs 70 cents to $1 to replace each window rivet.

However, this doesn't take into account hidden costs such as changing friction stays (sliding arms) and realignment that bring the total to between $39.40 and $50 for each window panel. For a private flat that has 30 panels, the cost is between $1,200 and $1,500.

I urge the authorities to use common sense. Stainless steel rivets are only as good as the material of the structure they are anchored to.

Putting steel rivets into aluminium window frames is like getting an elephant to sit on a stool. The rivets will not break, but the aluminium will bend or pull away from the rivets, resulting in falling window panels. Unless the aluminium frames and friction stays are changed as well, changing the rivets alone is useless.

After years of use, stays become stiff and greater force is required to open and close the windows. Over time, this pressure on the stays breaks the rivets. While new steel rivets may not break, old aluminium stays may

jq75

07-07-2005, 11:01 PM

Why so many carpark lots, HDB?

Auditor-General asks for explanation

ONLY about half the cars in Singapore are owned by HDB residents
.
But if all the cars in the country are parked in HDB carparks, there will still be nearly 22,000 empty lots.
07 July 2005

ONLY about half the cars in Singapore are owned by HDB residents.
But if all the cars in the country are parked in HDB carparks, there will still be nearly 22,000 empty lots.

HDB been has rapped for building - and spending money to maintain - more carpark lots than needed.

The 2004-05 report of the Auditor-General says that as on 31 Jan this year, HDB had built 547,739 lots.

That was more than the 525,743 cars in Singapore then.

And almost twice as many as the 276,078 cars owned by HDB residents.

After all their cars were parked, there could still be 271,661 empty lots.

And the proportion of HDB residents owning cars has fallen.

So it's no wonder some HDB residents say they have plenty of parking lots to choose from. Just visit some of the carparks at Sengkang or Punggol and you'll get the idea.

But on the other hand, you could be circling for ages for a lot at certain popular HDB carparks like the one in Ang Mo Kio Central during peak periods.
How to compare between a mature estate and a new town?

HDB'S $64.6M DEFICIT

The report said HDB incurred a deficit of $64.6 million after spending $446.2 million on carpark management and maintenance, including depreciation and financing costs.

Sengkang resident Melvyn Goh was shocked when he heard the numbers.

The 29-year-old film producer, who moved into his new Sengkang home two months ago, said he always finds a lot on the second level of the multi-storey carpark.

He asked: 'Why do we need so many carpark lots? It's simple mathematics. If there are not enough cars, why build so many lots?'

In its reply to the Auditor-General's report, HDB explained that parking lots are provided to meet current and future demand for both season parking and coupon or automated parking.

But it agreed that 'there is a need to keep future construction of carparks at levels that are closer to demand'.

HDB said measures had been taken to match the supply of lots with demand, and keep maintenance costs low.

It does seem that there are more carpark lots than needed, said Mr Gerard Ee, president of the Automobile Association of Singapore.

But there must be a buffer, as the need for lots will vary from area to area, he said.

'You go to popular Marine Parade Central and you know you need lots to accommodate the demand.

'And HDB needs to cater to external traffic too, for those not living in those estates. If they build lots just for residents, people will not want to go there as there are no carpark lots.'

And HDB also has to look ahead.

'Do you wait for a bottleneck and build more as demand increases or build to anticipate demand? It's more efficient to build to anticipate demand,' said Mr Ee.

'And there are new estates where people have not moved in yet, so there are more empty lots.'

The over-supply of flats and lack of demand has caught many parties by surprise, said assistant professor Muhammad Faishal of the National University of Singapore's Department of Real Estate.

He agreed with Mr Ee that it's natural for HDB to build to anticipate future demand. Site constraints might pose an issue for later expansion.

But Dr Faishal felt it would be good to optimise land resources.

He said: 'We could think of interim uses for the land, maybe temporary makeshift shops, car polishing companies or even coffeeshops.

'After all, carparks can pose a danger if deserted. Car thefts and other crimes can be easier if it's quiet, especially on the top floor of a multi-storey carpark.'

--------------------------------------------------------------------------------

Heartlanders spending less on cars

THE proportion of HDB residents owning cars has fallen, according to the latest HDB Sample Household Survey. The five-yearly survey showed that in 2003, 24.5 per cent of the HDB households owned at least one car, lower than the 27.7 per cent in 1998.

The survey findings showed that the proportion of residents owning cars had also fallen, from 7.5 per cent in 1998 to 7 per cent in 2003.

People were spending less on cars, but more on bus, MRT and taxi fares, according to the recent national Household Expenditure Survey.

The survey, carried out every five years by the Department of Statistics, covers 2002 and 2003, when the economy was plagued by Sars and jitters over the Iraq war.

People spent a total of $790 monthly on transport and communications - 21.4 per cent of the average household budget, a slight fall from $800 in 1998, according to a Straits Times report last month.

jq75

08-07-2005, 09:07 AM

jq75

08-07-2005, 09:10 AM

July 8, 2005
Protect landlords against rogue tenants

EARLY this year my husband and I rented out one of our bedrooms to a Singaporean couple with the help of a housing agent.

The tenancy agreement was signed, and the deposit and the first-month rental paid. We assumed that all was well before we left our house to the care of our parents following my husband's overseas employment.

Unfortunately, our tenants defaulted on their rental payment the following month. Even though we extended the deadline again and again, their promise to pay up on each occasion was broken over and over again.

After two weeks of kindness on our part, we decided to invoke a clause in the agreement that empowered us to evict them due to non-payment of rental 14 days after it was due. We gave them two days to pack up and leave without having to pay the rental owed to us.

To our horror and to our parents' distress, they vanished after the ultimatum was issued and refused to answer any of our calls, except to threaten us with a lawsuit should we touch their belongings, which were still in the locked bedroom. Even though we had then changed the locks to our house, our parents were still worried about their security and safety.

Having flown back to try and resolve the issue, I lodged a police report and asked for advice. I was informed that the police could not interfere as it was not a criminal case even though the tenants had violated the agreement and we had absolutely no idea what might be in the bedroom.

I was advised to lodge a complaint with the Subordinate Courts so that an eviction order could be issued (which takes between one and three months) which would give us the power to re-possess the room as well as their belongings, and I did.

Our experience with the rogue tenants has made us realise that there is no protection for landlords as we cannot re-possess our very own room even though the tenants had violated the contract. This not only means a loss of potential rental income should we not be able to re-possess the room immediately and rent it out to other tenants, but also puts the elderly at home under undue stress and trauma, not knowing if the room contained any dangerous or illegal materials.

Is there anything that can be done to give landlords greater protection against rogue tenants like the ones we were so unlucky to have encountered?

Elaine Toh-Tan Yee Lin (Ms)
Changzhou, China

jq75

12-07-2005, 09:15 AM

July 12, 2005
HDB staff gave out wrong info on rivets :s11:

LIKE Mr Robert Frederick Burch ('Contractor quoted more rivets for windows'; ST, July 4), I, too, was concerned about being overcharged by a contractor who, in giving his quotation, urged my husband and me to change four rivets on our side-hung windows, instead of three.

My husband called the HDB Branch Office Service Line to clarify. The officer, being unsure of the legal requirement, referred his query to an HDB technical officer. He was subsequently advised that according to the Building and Construction Authority (BCA), the required number of rivets for each friction stay was three.

Armed with this information, he proceeded to renegotiate our contract for window retrofitting with the contractor.

On the day that the contractor was at our home retrofitting the windows with three new rivets each, I chanced upon the reply from the Housing Board ('Window rivets: No. to change is either 12 or 16'; ST, July 9) and immediately instructed the contractor to put in four rivets instead of three, as previously advised by the HDB technician.

If I had not read the Forum page, we would have been misled into fitting three rivets instead of HDB's required four. Imagine the hassle we would have to go through getting the contractor to return to make up the shortfall.

BCA and HDB should first standardise their window-retrofitting requirements - for example, exactly how many rivets should be fitted.

Second, all the frontline staff should be briefed properly on the requirements so that the right information can be disseminated to the public.

In our case, the misinformation we obtained from the HDB technician not only caused us inconvenience and embarrassment when we disagreed with the contractor's assessment and quotation, but it could also have cost us more expense and hassle in getting the contractor back to rectify the shortfall of a rivet.

The contractor told us that a flat-owner insisted on having three rivets fitted, only to have HDB reject the retrofitting upon subsequent inspection.

Yet, the owner, like us, obtained that very advice from HDB itself. What recourse would a homeowner have in such a case?

Amy Wong Pong Beng (Ms)

jq75

14-07-2005, 08:59 AM

They pounce on edgy homeowners

Bogus contractors exploiting BCA's rivet deadline

Thursday • July 14, 2005

Loh Chee Kong
cheekong@newstoday.com.sg

AS FLAT owners try to beat the Sept 30 deadline to retrofit their windows and avoid contravening the law, reports have emerged of unscrupulous window contractors seeking to cheat the public.

Recently, many readers have written to Today complaining of having been approached by bogus contractors.

One reader, Mr Leow Theng Huat, said a contractor had approached him with "an official-looking form".

He said: "The contractor also exerted pressure on me to accept his offer, saying that it was the last day he would be servicing my block of flats … Fortunately, I called another contractor recommended by my Town Council … This contractor said none of my rivets needed to be changed."

Responding to questions from Today, Housing and Development Board (HDB) spokesperson Ng Hui Bin said the HDB has drawn up a list of more than 650 contractors approved by the Building and Construction Authority (BCA).

All trained window installers are issued a certificate on window safety with a unique certificate number. Residents should ask contractors to produce their HDB registration cards, which bear a photograph of the cardholder and the firms' details, she said.

Ms Ng also warned that bogus contractors face a maximum penalty of $5,000 and/or a six-month jail term if convicted. They can also be blacklisted from doing work in HDB estates.

She said: "If it is verified that the contractor is not appointed by the HDB, residents should ignore them or make it clear that their services are not wanted … our branch offices will also leave notices at void decks to warn residents to be aware of such bogus contractors."

However, the list drawn up by the HDB and the BCA is apparently not a benchmark for honesty, as some residents found.

Last month, Madam Ong Sock Hoon engaged a contractor through the HDB to inspect her flat's windows.

The 43-year-old housewife was told that her corner brackets were "not 2mm thick and must be changed", although she could not see any difference between the contractor's brackets and hers.

The contractor insisted he knew what he was doing and changed the rivets and corner brackets on eight windows. Mdm Ong paid $265 for the job.

The next day, she went to the HDB's Tampines branch office, where a staff member verified that her original corner brackets and rivets were acceptable and need not have been changed.

Mdm Ong said: "Even some of these approved contractors are out to cheat you. Why doesn't the HDB send their officers to carry out the inspection?"

In response, another HDB spokesperson said the approved window contractors are trained on the details of the legislation and are "competent to explain to flat owners what type of windows are required to be retrofitted".

Ms Ng said that following complaints, 11 approved window contractors listed with the HDB had been suspended, as of July 1, for "infringing the terms and conditions of their registration".

This includes touting or soliciting for business and non-compliance with the safety or technical requirements of the window work. The duration of the suspension varies depending on the investigation period and the types of infringement.

Seven of the suspended contractors have been fined $1,000. The four other cases are still under investigation.

If the work carried out is not done in accordance with BCA regulations, the authority can also take action against them.

The Consumers' Association of Singapore (Case) has also received two complaints about errant contractors and both were made in the past month.

One was for overcharging and the other for attempting to mislead a consumer into making unnecessary repairs.

Case executive director Seah Seng Choon said that the association works closely with the HDB and, although firms that are found guilty are not blacklisted publicly, a record is kept and the HDB is informed. Residents can also call Case to check on a contractor's record.

In the meantime, Ms Ng advises homeowners to be alert when dealing with all window contractors — including those who have been approved.

She said: "Generally, before allowing a contractor to start work, a flat owner should find out from the contractor what work will be carried out and the cost of the work.

"The consumer must be satisfied with the terms and conditions before allowing the contractor to start work. This will avoid problems or complaints such as overcharging by the contractor or unnecessary work being carried out." :)

jq75

15-07-2005, 09:18 AM

Property market – the worm's turning

Friday • July 15, 2005

HARDLY anyone talks about property these days.

If the topic does crop up at dinner or cocktail conversations, it invariably focuses on the moribund state of the market and the difficulties owners face relating to financing and tenancy.

Where, 10 years ago, people could not stop talking about real estate and its investment charms, they now prefer not to stay focused for too long on the depressing subject. Property investment is simply out of fashion.

And understandably so. After all, we are going through one of the longest bear markets in Singapore property.

The bear first surfaced in the middle of 1996, when the Government moved to curb excessive speculation in residential property with several restraining measures.

Prior to that, Singapore had enjoyed a long uptrend in property prices on the back of the economic recovery from the 1985/6 recession. For example, between 1988 and the 1996 peak, residential property prices had quadrupled. Everyone made money and much greed had set in.

After the bubble was pricked in May 1996, a major downturn took place in 1997/98 during the Asian financial crisis. Since then, times have been hard for property players.

The bear market has outlasted anyone's prediction and been made worse by the intervening false starts. What looked like recovery trends were derailed by unforeseen events such as the bursting of the global Internet and technology bubble in 2000, 911, the Iraq war and the Sars episode in 2003.

Singapore's recovery from the Asian crisis has been generally patchy and unemployment remained stubbornly high until this year. Lower CPF contribution rates, implemented to spur the recovery, have not helped the public housing sector, which is still plagued by oversupply in outlying areas.

While private property has seen a mild uptrend since the middle of last year, the HDB resale sector has recently taken another dip due to the no-cash-back rules being enforced more strictly.

The news has been gloomy for the past nine years and conventional wisdom is to extrapolate on that.

Yet, the confluence of underlying positives in respect of the Singapore property market has never been clearer. It implies we could be on the cusp of a sustained multi-year recovery in real estate values.

Three major forces are already underpinning property values on the island. The economic recovery is continuing and looks likely to be sustained with some pick-up in the second half of this year.

There are more jobs available and unemployment, at below 4 per cent, is not an alarming concern now.

The stock market is rising and now stands just 10 per cent below its all-time highs touched in 1996 and again, briefly, in 1999. These factors, in themselves, are usually sufficient to sustain an uptrend in property values. A growing economy and higher-paying jobs means affordability is rising.

The oversupply of residential properties remains a problem, but the number is shrinking all the time with take-up rates rising. Demand is gradually catching up with supply and prices will firm as equilibrium is reached.

Is this wishful thinking? Consider the other underlying positives.

Plans to develop the Marina Bay area with the gigantic Business and Financial Centre project and the two integrated resorts have lifted sentiment. Interest in these projects has been stronger than expected with international players of repute involved.

Singapore is now a base for Reits or Real Estate Investment Trusts. They have played a key role in absorbing supply in industrial, commercial and office space. Fresh capital invested by a broad base of Reit shareholders is now holding firmly on to these assets where previously the owners were feeling the strain of owning expensive real estate.

And finally, attractive values. While other markets in the region such as Hong Kong and Shanghai have recovered strongly from their 1998 lows, Singapore is still 35 per cent off from peak 1996 values. Even Kuala Lumpur and Jakarta are doing much better than Singapore. How long will this anomaly last?

Singapore should catch up and it is clearly time to be positive about the property market. The base has been reached and yields are attractive, by historical standards and when compared with current interest rates.

But as in any investment situation, there are downside risks.

There is the continuing threat of terrorism and instability in the region. Singapore could be set back by events outside its control.

Another concern is inflation. Escalating oil and commodity prices could eventually derail the global economy and the Little Red Dot that is Singapore will be hard hit.

Still, the positives outweigh the negatives and the risk is more on the upside than the downside, in my view. We are clearly in the early stages of a sustained recovery in the Singapore property market. :s8:

jq75

16-07-2005, 05:18 PM

Peg allowable flat size to income of home buyers

Weekend • July 16, 2005

I refer to the report "CPF investments: Govt rethinks policy" (July 15) on the likelihood of the board assisting its members in their decision-making as most of the 745,000 investors — with investments totalling $29 billion — suffered losses.

Manpower Minister Ng Eng Hen Poor cited poor timing, a lack of risk diversification and the high cost of investing as possible reasons for the poor performance.

Mr Warren Buffet, the well-known American investor, had this to say about diversification: " Diversification is a protection against ignorance. It makes very little sense for those that know what they're doing."

I would argue that for majority of Singaporeans — like me — who are clueless about the complexities involved in investing in any financial instrument, leaving their hard-earned money to earn 2.5 per cent in the Ordinary Account (OA) and 4 per cent in the Special Account (SA) is a wiser option.

Alternatively, they could use the OA to make regular capital repayments to reduce their home loan and reduced their interest payments.

One could even go further by utilising the allowable amount from the SA to pay for the loan, on the condition that the OA is zero.

But if job security is a concern, then using up the OA just so the SA can be tapped into is risky.

Financial literacy is key to preparing a sensible road map for old age.

As home loans are the biggest debt burden for most people, it may be worthwhile for the HDB and CPF to consider pegging buyers' household incomes to the size and price of the flats that they are eligible to buy.

This move should become the first pillar in efforts to give Singaporeans a better chance at a brighter retirement future.

Mohd Rosle Ahmad :)

jq75

16-07-2005, 05:21 PM

July 16, 2005
RETROFITTING WINDOWS

Get help if cash-strapped

WE REFER to the letter, 'Allow lower-income families use of CPF funds' (ST, July 9), by Mr Chua Thiam Siew, who suggested the use of CPF to pay for the cost of retrofitting windows.

The objective of CPF is to provide for retirement needs. With longer life expectancy, it is important for members to manage their CPF savings prudently so that they have sufficient monies to see them through their retirement.

At current contribution rates, CPF savings would enable a member to have a monthly retirement income of between 20 and 40 per cent of his last take-home pay, after paying for a home which commensurates with his income and setting aside enough savings for his medical needs in old age. Allowing CPF savings for uses such as retrofitting or replacing windows of HDB flats would erode the retirement income of a member.

Under the Building Control (Retrofitting of Casement Windows) Order 2004, aluminium casement windows fitted with aluminium rivets have to be retrofitted with stainless-steel rivets.

In Mr Chua's case, he had informed HDB that the windows in his flat are mild-steel casement windows. Such windows are not affected by the Building Control Order.

Nevertheless, regardless of window type, all flat owners need to maintain their windows in good condition.

HDB flat owners who are required to retrofit their windows but are in financial hardship can approach their respective HDB branch office for advice. HDB officers can help to refer them to the relevant agencies/organisations for financial assistance.

Chang Long Kiat
Director (Housing and Healthcare)
Central Provident Fund Board

Khoo Teng Seong
Director (Housing Administration)
Housing & Development Board

jq75

16-07-2005, 05:24 PM

July 7, 2005
Cut rentals to help HDB shop tenants

STARTING this month, with the ending of shop-rental rebates, the plight of Housing Board shop tenants is expected to worsen.

HDB has taken many measures to help them, including the recent Restructuring Programme for Shops scheme. The pilot phase involves 193 shop tenants in seven areas. If more than half of the tenants in each area opt for the scheme, each tenant would be given a $60,000 retirement handshake.

This has been widely reported but the ending of the rebates island-wide has not.

Many of the shop tenants not selected have been facing difficulties. They might not survive till the next phase of the programme to obtain the ex-gratia payment. This payment merely eases the loss that the tenants have suffered over the years.

HDB has said that 2,500 out of its 6,600 shops are not doing well. It is probable that it has been unrealistic in setting shop rentals. Rentals have been increased when HDB has done nothing to improve the retail environment.

In fact, competition would have stiffened with the establishment of neighbourhood shopping centres. What then justifies the significant rental hikes?

Oddly, shops along Bendemeer Road which are enjoying surprisingly low rentals of $1,400 have been selected for the restructuring programme. A check on the HDB website shows that a successful bid for its premises usually exceeds $2,000 in monthly rental. I would not be surprised to find that the tenants there would not take up the programme.

If HDB were willing to reduce its rentals, most shops would have been able to survive. A $600 difference in rent translates into a $600 difference in profit for small retailers who count their earnings in cents.

I doubt the effectiveness of plans to rejuvenate neighbourhood shops. Even if novel concepts like arts centres were able to attract people from elsewhere, they are not useful to the people in the neighbourhood on a daily basis. And how many arts centres would we possibly need?

Lin Yupei

-----------------------------

July 15, 2005
Why rental rebates for HDB shop tenants removed

I REFER to the letter, 'Cut rentals to help HDB shop tenants' (ST, July 7), by Mr Lin Yupei.

As part of the Government's relief measures, the Housing Board had given rental rebates to its shop tenants since 1998 to help tide them over the economic slowdown.

Although the economy had improved since last year, HDB continued to grant half the prevailing rebates for the six-month period from Jan 1 to June 30, to help its shop tenants adjust to the rebate withdrawal. The rebates were fully phased out only from July 1.

The withdrawal of the rental rebates may have led Mr Lin to conclude that there have been significant rental hikes. This is not the case.

HDB shop rentals have remained fairly stable since 1998. They reflect prevailing market conditions because vacant HDB shops are let through public tender and the rentals are based on the successful tender bids.

Subsequently upon renewal of tenancy, the rentals are reviewed by professional valuers, taking into account recent lettings of comparable properties nearby.

HDB understands that its shopkeepers face stiff competition and changing shopping needs. The Restructuring Programme for Shops is intended to help HDB shop tenants who are located in areas where there is an over-supply of shops and where the business is poor, to retire from business or to restructure and upgrade their business operations.

To help those who choose to stay in business, the Government, through HDB, Spring Singapore and the Retail Promotion Centre, will support their representative associations to restructure and upgrade the operations, and improve the concepts, trade mix, promotional efforts and overall attractiveness of their shopping areas.

HDB has carried out upgrading works together with various town councils and shop associations in various locations, such as those in Marine Parade Promenade and Chong Pang City, to improve the physical environment and shopping ambience.

However, shopkeepers must understand that the success of their business ultimately rests on their drive and initiative. They cannot rely on the Government to artificially depress its rentals to keep their business going.

Liau Meng Siong
Ag Deputy Director (Policy & Planning)
For Director (Properties & Land)
Housing & Development Board

jq75

19-07-2005, 09:50 PM

jq75

19-07-2005, 09:52 PM

July 8, 2005
Why isn't HDB making money on carparks?

THE Auditor-General's 2004/05 report stated that the Housing Board incurred a deficit of $64 million on the carparks that it managed ('Too many HDB carparks lead to $64 million deficit'; ST, July 6).

It is strange that HDB does not record a surplus of revenue in its carpark operations. In fact, according to its past annual reports, it always incurred losses.

I hope HDB will not use this to justify another round of increase in carpark charges.

On the other hand, the Urban Redevelopment Authority (URA), which manages about 60,000 parking lots for cars, lorries and motorcycles, has been able to show a surplus of more than $10 million every year for the past 10 years, from revenue from carpark charges and enforcement action.

The HDB manages about 600,000 parking lots and lost money every year. Why is one statutory body making money and the other isn't, when both are in the same type of business?

HDB, which manages 10 times as many lots as URA, should enjoy the benefit of economies of scale and show a higher surplus.

Has HDB lost out in terms of productivity? Was it slow to innovate and adopt new technology? Or was enforcement lax, resulting in a loss of revenue?

HDB should act like a private business enterprise and review its business practices, such as the functional structure of its carpark division, people management, use of new technology and regular audits, so that public money is not wasted and motorists will not have to pay higher parking charges.

Seah Leong Khai :s11:

July 18, 2005
HDB carparks cost more to run than URA's

IN MR Seah Leong Khai's letter 'Why isn't HDB making money on carparks?' (ST, July 8), he compared the surplus in the Urban Redevelopment Authority's (URA) carpark operations with the HDB's deficit.

He also suggested that the HDB should review its business practices.

Most HDB carparks are housed in multi-storey buildings constructed as part of public housing development on land purchased by the HDB.

As a result, the HDB's carpark operations incur higher land, construction, maintenance and depreciation costs.

The URA's carparks, on the other hand, are mainly in the form of open surface kerbside lots located on roads, or on state land awaiting development. Their construction and depreciation costs are thus lower.

The HDB is constantly exploring ways to lower costs and improve productivity in its carpark operations.

Since August 2003, the HDB has outsourced 30 per cent of its parking enforcement functions to private service providers.

The remainder will be outsourced shortly.

The HDB was also one of the first to introduce the Electronic Road Pricing parking system for collecting parking fees.

We now have an ongoing programme to introduce the ERP parking system at carparks wherever feasible.

Mr Seah also asked if the HDB's parking operations deficit results from its laxity on enforcement, affecting the revenue collected. It is not so.

Instead, part of the deficit can be attributed to the revenue foregone because of the implementation of the Free Parking Scheme at many HDB carparks on Sundays and public holidays.

We thank Mr Seah for his feedback on our carpark operations.

The HDB will continue to explore how to improve our operations.

Eng Soh Seng
Deputy Director
(Carparks)
for Director, Housing Administration
Housing and Development Board

jq75

19-07-2005, 10:13 PM

More powers for Town Councils, but Chiam senses political trap TodayOnline

Tuesday • July 19, 2005

Derrick A Paulo
derrick@newstoday.com.sg

When the Town Council Act was amended in Parliament yesterday, the underlying message to the 12 Town Councils was that with more power comes more responsibility.

Some of the new "powers" were reported in this paper yesterday, including how Town Councils could use their sinking funds for lift upgrading work and seize and sell flats to recover any subsequent arrears.

The changes to the Act which were approved yesterday will also enable them to do work on non-common properties, which are owned by various entities such as statutory boards, in their estates.

But, it was the new responsibilities that upset some MPs.

The Act now makes it a criminal offence for Town Councils to use their funds in a manner not specifically authorised in the Act.

The liability, a fine of up to $5,000, falls squarely on the council chairman and secretary if the offence is done with their consent or through their negligence.

This angered opposition MP Chiam See Tong.

"There is a reason for the criminalised elements in the Act," he said. "It is purely for political grounds, because the chairman of the Town Council can be disbarred from Parliament for five years — not for being corrupt but for doing good deeds," he said.

While his example drew smiles from PAP MPs, some shared his sentiment that the move ran "contrary to the spirit" of entrusting elected members to run Town Councils.

Dr Amy Khor (Hong Kah) described it as a "very onerous" imposition on Town Councillors who might not have the fiduciary training of corporate board members but who might be made "guilty by association".

"They might then think: Spend less, less mistakes made," she said.

In response, Minister of State for National Development Heng Chee How said that by allowing for more flexibility, for example, in going into lift upgrading, there was a need to ensure that Town Councils did not go overboard.

The funds are meant for cyclical work, to maintain estates as they age, and should not be watched carefully, he said. And so, the Bill limits the amount that can be used for lift upgrading to 10 per cent of a Town Council's sinking funds.

"(The penal clause) would enable us, from the Government side, to signal where the lines are drawn. It is certainly not meant to trap anyone politically ... and I hope that it does not need to be used," he said.

He also told the House that the powers to seize flats to recoup lift-upgrading arrears were not mandatory and Town Councils should exhaust all other avenues first.

There are about 300 to 400 HDB blocks eligible for upgrading by Town Councils, if they choose to do so, out of the 3,000-plus blocks earmarked for lift upgrading.

Mr Low Thia Kiang of Hougang GRC decried the "outsourcing" of upgrading works to Town Councils.

It meant, he said, that those residents are "shortchanged", as sinking funds are built up by service and conservancy charges paid for by the residents themselves, compared to those who benefited from HDB's lift upgrading, for which the Board pays 90 per cent of the cost.

National Development Minister Mah Bow Tan weighed in on the debate to say it was unfair to "ascribe other motives" to the Act as the sinking funds also consisted of Government grants.

"The aim is to bring the project to residents as quickly as possible. If Town Councils don't do it, it will stretch longer (than the 10 years projected)."

When asked by Mr Low if the 10-year target included opposition wards, Mr Mah said: "It's really hard for me to say what will happen in 10 years' time. There may be no opposition ward."

Pressed further by Mr Low, he said, "As long as I have PAP Town Councils and advisors also asking for upgrading, it is difficult to look them in the eye and tell them I'll give it to the opposition first."

---------------------------------------------------------------------------

Town Councils to get sharper teeth CNA

To hasten the lift upgrading process in Housing Development Board (HDB) estates, Town Councils will soon have the power to seize and sell homeowners' moveable property or flats to recover such improvement costs from recalcitrant residents who refuse to pay up.

Sound drastic? Town Council chairmen and members of Parliament don't think so.

The amendment to the Town Council Act, which may be passed in the parliamentary session which begins today, will also allow Town Councils to use their sinking funds for lift upgrading work.

It effectively extends the Town Council's duty to include lift-upgrading work - similar to what the HDB does in its Lift Upgrading Programme (LUP), which the Government launched in 2001 and aims to complete within the next 10 years, instead of the projected 10 to 15 years. However, it does not increase the Town Council's powers to any degree, say Town Council chairmen and MPs.

Dr Amy Khor, Southwest CDC mayor and Government Parliamentary Committee chairman for National Development, said: "The existing provisions in the Act already allow Town Councils, with the prior approval of the HDB, to sell the resident's flat if he is not able to pay his service and conservancy (S&C) charges."

Hence, the amendment grants Town Councils the same powers that the HDB has in the recovery of such arrears - defined as contributions left unpaid after three months. As of last January, town councils were owed a total of $24.7 million in S&C arrears.

So, just how much more in terms of LUP arrears can Town Councils expect to chalk up and chase residents for?

The HDB told Today that it had billed three LUP precincts at the end of June after the upgrading work was completed, hence it has no outstanding LUP arrears.

But there is another issue. Unlike monthly S&C charges - which range from $18 to $80 per household for maintenance services such as grass cutting, cleaning and lift-maintenance - not everyone may be in favour of the LUP, or benefit from it. The maximum co-payment cost for the Town Council LUP will range from $263 to $714 for residents, depending on the type of unit.

At least 75 per cent of residents must vote in favour of lift upgrading work before it can proceed. So what if the remaining 25 per cent don't want to pay up or can't afford to?

Dr Teo Ho Pin, Holland-Bukit Panjang Town Council chairman, said: "All PAP Town Councils have an arrears recovery system where we work closely with our community partners such as grassroots organisations or voluntary welfare organisations to assist needy residents who face difficulty in paying their fees or charges."

The procedure, he said, starts with a notice of reminder to house visits. Then a claim is lodged with the small claims tribunal. A writ of seizure and sale of moveable property - such as television or hi-fi sets is issued. The sale of the flat is a final step, to be taken only if all efforts at recovering the arrears fail.

Mr Chew Heng Ching, East Coast Town Council chairman and coordinating chairman for PAP Town Councils, said: "This provision is basically the last resort by the Town Council for those who have defaulted on their payments for improvement contributions. The Act serves to empower the Town Council to take action against residents who can afford to pay but are not doing so."

Or, as some Town Councillors call them, chau kuan homeowners - a Hokkien phrase referring to someone with a bad attitude.

Dr Khor agreed: "As Town Councils are familiar with the profile of the flat dwellers, such a sale would only be resorted to after all other avenues have been explored and exhausted."

Some observers note that the Town Council's function, role and relationship with residents will change.

Said one: "With HDB as the landlord, Town Councils have hitherto just managed and maintain common property in HDB estates. It remains to be seen how this enlarged function will change its relationship with the residents it serves."

-------------------------------------------------------------------------

July 19, 2005
Opposition MP's beef with lift upgrading ST

OPPOSITION MP Low Thia Khiang yesterday criticised plans to allow town councils to upgrade lifts using part of their sinking funds.

His attempt to hammer home two points involved a protracted debate, first with Minister of State (National Development) Heng Chee How, before National Development Minister Mah Bow Tan, too, jumped in to the discussion.

Mr Low's first beef: By 'outsourcing' lift upgrading programmes (LUP) to the town council, the Housing Board - and by extension the Government - ends up paying nothing, and the resident, almost everything.

The Hougang MP also highlighted that his constituency had thus far been denied upgrading. Calling on the People's Action Party (PAP) Government to end this 'discrimination', he tried later to press Mr Mah and Mr Heng to admit that opposition wards were excluded from the LUP.

In spelling out his first point, Mr Low noted that the bill for upgrading must be footed jointly by residents and the town council, which will pay its portion out of its sinking fund.

But as the sinking fund 'largely comes from service and conservancy charges paid by HDB residents...it is effectively HDB residents who are paying for the lift upgrading', he argued during the debate on the Town Councils (Amendment) Bill.

And while he acknowledged that government grants go towards the sinking funds, he said these payouts have, in any case, been shrinking since 1999.

Mr Heng's response was that town councils had a choice whether to carry out their own lift upgrading.

Here's how the debate progressed from there:

Mr Low: Does the Minister of State agree that residents whose blocks undergo lift upgrading by the town council will benefit much less than residents of blocks that are upgraded by the HDB?

Mr Heng: Why do you say that?

Mr Low: (Repeats what he had said earlier) Because first of all, they co-pay for the lift upgrading. The town councils then pay through the sinking fund, which is largely the residents' money.

Mr Heng noted that town councils interested in lift upgrading will probably choose the most cost-effective blocks, and the costs would likewise be attractive to households.

At this point, Mr Mah joined in the debate and suggested that Mr Low speak to Opposition MP Chiam See Tong (Potong Pasir), who has a 'very cost-effective' way of selecting blocks for lift upgrading.

Mr Mah: What we are doing is to give all town councils in Singapore another option over and above what the Government is doing...

For Mr Chiam or Mr Low to ascribe all sorts of other motives to this, I think, is not very fair.

Mr Low: The fact is that if it's upgrading under the HDB, the HDB will pay up to 90 per cent. But if the town council decides to go ahead with upgrading, it is the town council that will pay, together with the residents. So where is the government part of the payment?

And since the lift upgrading programme will be shortened to 10 years...I want to ask whether the 10-year target includes lifts in opposition wards, or only those in the PAP wards?

Mr Mah: On the second point, I really don't know what's going to happen in 10 years to the opposition wards, so it's hard for me to answer that question...

But more seriously, it is true that for the town council lift upgrading programme, the council will pay the bulk of the cost. The residents will pay some of the costs...to the extent that, yes, some of the town council's sinking fund comes from the residents. But let me remind him that part of the sinking fund also comes from government grants. So it is not quite correct to say that it is all coming from the residents.

Mr Low: Since the minister doesn't know what will happen to opposition wards in 10 years, can I presume that opposition wards are excluded from the objective of completing lift upgrading for all flats in 10 years?

Mr Mah said no. Then he reminded Mr Low of their previous encounter in 2000 on the same matter. Mr Low had asked at the time why the old flats in Hougang had not been upgraded.

Mr Mah's reply then: 'How do I look my PAP MP in the face and say to him that, 'Oh, I have upgraded Hougang or Potong Pasir instead of Boon Lay'.'

Mr Mah: Does (Mr Low) recall that? Well, did I say then that there would be no upgrading for opposition wards? I didn't say that. All I said was that realistically speaking, the opposition wards must expect that...we will have to weigh their demands and their needs versus those of the PAP town councils.

Mr Low replied that the PAP did not see opposition wards 'as part of Singapore'.

Mr Mah: I just want to inform Mr Low that there are blocks and precincts in PAP wards older than those in Hougang, and which have still not been upgraded, in Ang Mo Kio for example.

---------------------------

July 19, 2005
Lift upgrade: Town councils can now tap sinking fund

Amount capped at 10% of fund and $5,000 per flat; penalties for abuse

By Joyce Teo
TOWN councils got the go-ahead yesterday to upgrade lifts in their precincts using up to 10 per cent of their sinking fund to pay for the work. But this will be subject to strict rules - including penalties for abuse.

These were set down in an amendment to the Town Council Act approved in Parliament, which among other things, provided for penalties for misuse of funds. The legislation comes about six months after the Government announced it would speed up the Lift Upgrading Programme (LUP), given its tremendous popularity among HDB residents.

The programme, introduced in 2001 with an eye on Singapore's ageing population, provides HDB apartment blocks with new and better lifts that also stop at every floor. Some 1,315 HDB blocks already have had lifts upgraded. This leaves about 3,000 high-rise blocks and 800 low-rise blocks across the island without lifts that stop at every floor.

The new flexibility that town councils will now have to carry out lift upgrading on their own could contribute to shortening the timeframe in which residents have to wait for that to happen. The Government aims to complete lift upgrading for all eligible blocks within 10 years - down from its previous projected 10 to 15 years. The Housing Board currently undertakes the upgrading programme, paying 75 to 90 per cent of the cost and residents co-paying the rest.

Minister of State (National Development) Heng Chee How, who took MPs through the amendments, said residents will also have to co-pay under the town council's upgrading programme should they vote for it. And like under the HDB's programme, they can use their CPF balances to pay for their share of the upgrading costs.

Town councils undertaking an upgrading programme will, on their part, also have to watch their bottom line. Their spending will have to be based on a cap of $5,000 per flat and no more than 10 per cent of their sinking fund - the pool of funds set aside to undertake repainting, major repairs and other work. Mr Heng said if town councils stepped in with their own lift upgrading, it would cover between 300 and 400 HDB blocks.

Addressing concerns some MPs like Dr Teo Ho Pin (Holland-Bukit Panjang GRC) and Nominated MP Ong Soh Khim had about councils depleting their sinking funds, he said this was why a 10 per cent cap was imposed.

Several MPs also voiced strong concerns about penalties imposed on the town council if funds are used in ways that are not authorised under the Act. This is because if the council is guilty of an offence, the chairman, secretary or someone acting in such capacity could also be liable to the same maximum fine of $5,000.

'I am all for sound corporate governance. However... many town councillors have neither the technical training nor the ability to keep an eagle eye on the affairs of the council,' said Dr Amy Khor (Hong Kah GRC).

'Many are volunteers and grassroots leaders. This guilt by association will discourage capable and genuine people from serving in such capacities because they now run the risk of being sentenced for acts of negligence they were not totally responsible for.'

Mr Heng explained that greater flexibility being given to town councils had to be accompanied by greater responsibility and accountability. The intention was to clearly signal the dos and don'ts.

Dr Khor, Nominated MP Ong Soh Khim and Mr Chiam See Tong (Potong Pasir) also spoke out against provisions that would allow a flat or assets of the owner to be sold to recover payments for the lift upgrading programme. Mr Chiam criticised what he saw a move that would potentially throw a family out onto the streets.

Mr Heng reminded the House that such provisions were not new, and said the track record of town councils showed that they had been 'very sympathetic' towards the needs of residents. 'There will be discussions to see how to help them stretch the repayment of their arrears, instalment plans, restructured plans - so many different ways before you would even try to do anything to seize and sell moveable property, not to mention their flat.'

In conclusion, opposition party estates are given less priority by the Government.. :s27:

jq75

19-07-2005, 10:13 PM

July 19, 2005
Steps to allow new housing scheme

PROPOSED changes to the Housing and Development Act - to allow private developers to design, build and sell public flats - were tabled in Parliament yesterday.

The so-called Design, Build and Sell Scheme was announced in March this year.

Under it, private developers can tender for land on a 103-year lease, and design, build and price the flats, which will still be subject to Housing Board rules and conditions.

The scheme will start with a tender for 500 flats in Tampines Avenue 6 later this year.

National Development Minister Mah Bow Tan said in March that most HDB projects outsourced privately are still expected to be done under the 'tried and tested' design-and-build system, where the HDB takes over as the seller.

The proposed change to the Act, to provide a framework for the scheme to be put into effect, was one of six new pieces of legislation tabled in Parliament yesterday.

Other proposed changes were to the Money-Changing and Remittance Businesses Act, the Subordinate Courts Act, the Professional Engineers Act, the Architects Act, and the Weights and Measures Act.

They will be outlined and debated at the next available sitting of Parliament.

jq75

19-07-2005, 10:34 PM

Government eases cap on bank financing for residential properties

SINGAPORE : National Development Minister Mah Bow Tan has announced changes to policies concerning Singapore's property market in three major areas.

These are: easing the cap on bank financing for residential properties, limits on the use of the CPF for property purchases, and restrictions on foreign ownership of land and properties.

On mortgage and financing policies, the financing limit for housing loans will be raised from 80 percent to 90 percent of the property value.

Mr Mah said the remaining 10 percent, which the buyer has to pay, would deter over-borrowing and minimise potential losses by banks as a result of borrower default.

HDB will also raise the loan limit for its flat buyers from 80 to 90 percent.

This takes immediate effect and will apply to all properties bought from Tuesday.

Also with immediate effect, the cash payment for private residential properties will be lowered from 10 percent to five percent.

From January next year, the cash requirement for HDB flats financed with bank loans will also be adjusted to five percent, down from ten percent.

Mr Mah said these changes would give consumers a wider choice of financing options when buying a property.

In a ministerial statement in Parliament on Tuesday, he stressed that the purpose of the measures was neither to boost nor depress the property market.

Rather, the review was aimed at improving structural rules to improve the functioning of the market and to better achieve broader economic and social objectives.

Mr Mah, however, cautioned that some of the measures introduced would have a positive effect on the market, while others might have a dampening effect.

And the net effect would depend on many factors beyond the measures announced.

On the use of money from the Central Provident Fund, Mr Mah said buyers could use their CPF to buy residential properties with shorter leases of between 30 and 60 years.

Restrictions on foreigners buying property are also being eased.

Mr Mah said the government would remove the restriction on foreigners owning property in apartment blocks of six floors and below, but will still require foreigners to seek approval for purchases of landed properties. - CNA

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MPs say policy changes to property market made to boost sector

SINGAPORE : MPs said they were convinced that policy changes to the property market were made to boost the sector.

But National Development Minister Mah Bow Tan insisted that the government's philosophy had not changed - that Singaporeans should only buy what they can afford.

The subject of property is a readily hot topic especially among MPs who deal with many residents who come for help when they could not afford to pay for their HDB mortgages.

Dr Amy Khor, Chairman of GPC for National Development and MP for Hong Kah GRC, said: "Why now? Some of these changes seem to suggest a reversal of the government's policy to ensure prudence in property investments."

Dr Wang Kai Yuen, MP for Bukit Timah, said: "I heard the Minister say he does not want to comment on the impact of the package of measures on the market. Did he take a look at the market during the break? He would have found that the market has responded positively. Didn't he realise that all the heavyweight of the property counter have actually gone up substantially?"

Mr Teo Ho Pin, MP for Hong Kah GRC, said: "What is the likely take-up rate of the available flats in HDB and the private sector with this set of measures?"

But Mr Mah maintained that the package of measures was never intended to move the market in any particular direction

"We do not intervene in the market to dampen prices or to to boost prices unnecessarily," he said.

But there was one point which Mr Mah continued to emphasise during his replies to MPs.

Singaporeans deciding to take advantage of the new measures must make a decision based on what they can afford and what they are able to obtain in terms of loans, even though the borrowing limit is now raised from 80 to 90 percent.

Mr Mah said: "It does not automatically mean that every single person who goes to the HDB or to a bank will now be able to get 90 percent loan. That is not the point.

"Credit assessment will still be in place and if you are not working and if you do not have adequate income, you will not get that 90 percent loan. This move does not in any way suggest that all the rules of financial prudence have been thrown away. No!"

Mr Mah would only say that the government felt this was the right thing to do, and that it was hard to predict how the market will be in three to six months' time. - CNA

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Property agents, home buyers welcome changes to home financing

SINGAPORE : Property agents and home buyers have welcomed the policy changes related to the property market announced on Tuesday, but they do not expect a rush to buy both private and HDB properties.

This comes even as property-related stocks got an immediate boost on the Singapore stock exchange when the news was out.

25-year-old Mohd Farham and his fiancee were at the HDB Hub to buy their first home.

He said, "This might be a tactic by government for (the) first few years, for election, or so on, but it is a good policy that they announced 90 percent."

So, they are making the most of it; they intend to take up 90 percent financing for their purchase of a brand-new five-room flat.

And property agents said it is first-time home owners like them, and especially young graduates, who are the big winners with the changes.

Andrew Soh, Senior Sales Director, DTZ Debenham Tie Leung, said, "For them to fork out 10 percent cash is a problem, they have to save for a couple of years, now this will lighten their load with 50 percent savings as they need to pay only 5 percent cash and 5 percent CPF and own private property."

Industry watchers said this will also give buyers more options in both the private and HDB markets.

Henry Chong, Associate Manager, PropNex Realty, said, "It's a positive announcement, I look forward to it. It will be a turning point to a better property market altogether."

But there were reservations - with some worried that this move will dampen the HDB property market.

Frederick Chia, Associate Director, Dennis Wee Realty, said, "...most of (the) buyers will go for private now."

Even those not planning on making any new property purchases any time soon, welcomed the news.

One person commented, "I've just bought (a) HDB flat 3 years ago, put in a lot for renovations. So I don't think I will be buying a new flat in the short term and I think this is a good move, improves demand a little but won't affect me for the short term."

Another added, "I think many more people will be buying property now...get the spur it needs as possibly, the property market has been lax of late."

Most property agents say that Singapore home buyers are usually cautious, and they will probably take a wait-and-see approach on how the changes pan out, without rushing to buy any property for now.

But they also agreed that the changes will bring a much needed boost to both the private and HDB property markets. - CNA

Buy a flat with a lower start up, and pay more instalments and interest... :s22:

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Property buyers mull loan and upgrade options after policy changes

SINGAPORE : Property buyers are busy making their calculations on how the changes will affect them.

They can choose to increase their loan amounts, or upgrade since it is now cheaper upfront for them to do so.

First-time private property buyer Danny Chua is one happy owner.

Hours after the new policy changes were announced, he signed on the dotted line and bought himself a 3-room apartment at Guilin Court in Geylang for $365,000.

The new rules mean he saves $18,250 and has more cash to spend on his renovation.

"I'm a first-time buyer and I just started work so I don't have enough cash. I took up the offer because I only had to contribute 5% instead of 10%," said private property buyer Danny Chua.

Like Chua, many home buyers are probably still working out the math to see if it's worthwhile for them to raise their loan amount to 90% of their property's value and pay more interest in the long term.

The 33-year-old quality engineer and his wife will pay $963 each month for 35 years if the loan was for 80% of the property price.

But if they choose increase the loan amount to 90%, the couple will fork out $1,084 each month instead.

In all, they will pay an additional $10,000 in interest.

But Danny feels that upping the loan to 90% still makes money sense.

He said: "I don't need to utilise all the CPF. I maybe out of job one day and CPF will help me to contribute. So I need to have some reserve money there to contribute for my monthly instalments."

For HDB flat owners Afendi and Erra Mardiana, they plan to buy a resale 5-room flat in Sengkang which costs about $250,000.

"I'm hoping for a good price for my Pasir Ris flat so that I can buy my HDB resale flat in Sengkang," said flat owner Erra Mardiana.

They have no plans to upgrade because they want to live within their means.

- CNA /ls

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Analysts expect high interest rates after changes in home financing cap

SINGAPORE : Singapore banks may now grant housing loans of up to 90 percent of the property value.

But they say it is still premature to determine the pricing for such loans.

As banks will face higher credit risks, analysts expect these loans to come with high interest rates.

Some also do not expect huge demand to come on-stream overnight.

It has been three years since Singapore banks held the first charge for a property ahead of the CPF.

Now, over two-thirds of the banks' outstanding housing loans are secured by first claims over properties.

So the central bank feels the time is right to raise the financing limit from 80 to 90 percent of the property value.

Banks generally welcome the move, but many are still working out how they will benefit from it.

Jeremy Soo, Managing Director, Secured Loans, DBS Bank, said, "It's very difficult to estimate at this point because we don't really know how many percent of the market (is) being sidelined per se because they have not raised the minimum cash of 10 percent."

Still, most banks expect demand for housing loans to go up - giving a boost to their loans portfolio.

But some analysts are downplaying the excitement.

David Lum, Banking and Property Analyst, Daiwa Institute of Research, said, "I'm not sure whether the government addressed the underlying reasons why the Singapore property market is a little slow to recover compared to its regional peers.

"I don't think it has to do with the upfront financing and most of the relaxation in the rules addressed that area. So therefore I don't think you'll necessarily see a huge demand overnight."

Most banks are now back at their drawing boards, to work out the pricing for loans up to 90 percent of the property value.

Some analysts expect that these loans will come with high interest rates.

That is because the banks will have to take on higher credit risks for such loans.

Gregory Chan, Senior VP, Secured Lending, OCBC Bank, said, "It allows us flexibility in offering a higher quantum of 90 percent, but it comes and has to be balanced with the credit risk, and also the higher capital required in view of the risk requirement. So it's a balancing act and we are looking at the whole structure and see how we can package this to our customers."

To mitigate the increased risk that banks will take, the Monetary Authority of Singapore will require banks to hold more capital against housing loans which exceed 80 percent of the property value.

It also expect the banks to carry out rigorous credit assessment before extending such high loans.

The central bank is also considering mortgage insurance as an alternative to the capital charge to mitigate the risks of high housing loans.

It will be studying the viability here and how best to regulate mortgage insurers. - CNA/ms

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CPF Board tightens use of savings for multiple property purchases

SINGAPORE : Under the latest changes to policy related to the property market, the CPF Board is tightening the use of CPF savings to purchase multiple private properties.

With the change, only CPF savings in the Ordinary Account in excess of the minimum sum cash component can be used for the purchase of the second and subsequent properties.

And the amount of CPF savings that can be used is capped at 100% of the valuation limit of the property.

Members with inadequate minimum sum cash amounts who want to use their CPF funds to buy a second private property will need to sell their existing property within six months from the purchase of the second one.

"It is aimed at increasing safeguards for retirement purposes. That is the main thrust of the measures, that you have your retirement safeguards first, then you look at your second property," said Dr Yu Lai Boon, Managing Director of Jones Lang LaSalle.

From 1 July 2005, the CPF Minimum Sum for those turning 55 is set at $90,000. This will be raised gradually to $120,000 in 2013.

Analysts say the policy change is to encourage prudence.

This is to prevent a repeat of the mid 1990 where buyers stretched their finances to purchase multiple properties, lured by the rapidly rising property prices.

Now that property prices have started to recover, rising some 1% in the first half of this year, some analysts say speculators may begin to emerge.

- CNA

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Property developers welcome changes announced by Mah Bow Tan

SINGAPORE : Developers were taken by surprise with the changes announced in Parliament by Minister for National Development Mah Bow Tan on Tuesday, but they said the changes will help revive the struggling private property market.

The Real Estate Developers Association (REDAS) has one concern about the changes to the Non-Residential Properties Scheme.

It says this will affect small businesses which want to to buy their own premises.

Property developers in Singapore have given the thumbs up to Tuesday's policy changes to the property market.

REDAS said it is a balanced package which will make house ownership in Singapore more affordable.

And that it will also ensure prudent allocation of CPF funds.

Market players said the latest measures will have a positive impact on the property sector with its pro-market initiatives.

In their view, the changes have removed some rules and regulations that are no longer relevant, while keeping the desired safeguards.

They said the changes will benefit both set of home buyers, those buying to stay and those buying for investment purposes.

Developers also welcomed the relaxation on rules governing foreign purchase and ownership of private residential properties.

They believe that this will help boost the higher end property market.

But REDAS has voiced concerns over the change to the Non-Residential Properties Scheme.

The scheme has been narrowed to exclude CPF members from using their CPF savings to invest in non-residential properties.

REDAS said this may impact on entrepreneurs and small and medium enterprises, which will now find it harder to own their own office space, shops, factories and warehouses. - CNA/ms

jq75

20-07-2005, 11:39 AM

From ST 200705

July 20, 2005
Easier now to buy your own property

Buyers of property will need to fork out less cash; market welcomes move

By Joyce Teo
BUYERS of private property and HDB flats now have to fork out less cash.

Instead of a 20 per cent cash downpayment, they need to pay only 10 per cent and, even then, half of it can come from CPF savings.

Also, they can get a bigger loan from banks for their purchase, up to 90 per cent of a property's value compared with 80 per cent before.

The changes take effect immediately, but for HDB homebuyers, the cash downpayment rule will start from Jan 1.

These new rules are part of a package of 13 changes announced in Parliament yesterday by National Development Minister Mah Bow Tan, who said it was the result of a 'holistic review' of various property-related policies.

The aim is 'neither to boost nor depress the property market', he stressed.

However, developers, banks, realtors and homebuyers were unanimous in their delight.

They foresee a boost for the struggling property market. The stock market shot up after the announcement and property counters like City Developments rose 75 cents to reach $8.85.

Would-be homebuyer Mark Ho, 42, may look for a bigger home, but will ensure he can afford it. 'Now that I have more cash, I can look for a more expensive or a bigger place.

'But with the smaller cash portion, the loan will be heavier, so I have to see whether I can finance the loan,' said the director of consultancy firm Lloyd McGill.

Realtors see HDB upgraders benefiting most. 'To them, the price of a property is not as important as the cash portion,' said PropNex division director Eric Cheng.

Also, prices of five-room and bigger flats - now in poor demand owing to the bigger cash outlay - will perk up.

'Most of these bigger flats are selling below valuation. Now, more may be sold at valuation,' said PropNex chief executive Mohamed Ismail.

Surprised developers called the changes a balanced package which will make house ownership in Singapore more affordable.

Their association, the Real Estate Development Association of Singapore (Redas), also said it would ensure prudent allocation of CPF funds for retirement as older people can now use CPF to buy homes with shorter leases.

Billionaire Kwek Leng Beng, who is executive chairman of City Developments said: 'The Government has sown the seeds of growth to propel us to the next level.'

But some MPs are urging caution. They include Dr Amy Khor (Hong Kah GRC), Ms Irene Ng (Tampines GRC) and Dr Ahmad Magad (Pasir Ris-Ponggol GRC).

Fearing an upsurge in property prices, Dr Khor said: 'Some of these changes seem to me to be a reversal of the government's policy to ensure prudence in property investment.'

Mr Mah said the Government would not relax its 'policy of prudence'. He urged Singaporeans to exercise caution. Similarly, banks must continue to make sure customers can afford the loans.

Redas, too, has one worry: It feels the changes to the Non-Residential Properties Scheme will affect entrepreneurs and SMEs which want to buy their own office space, shops and factories. From July 1 next year, CPF funds cannot be used to buy such properties.

The rise in property prices will not be immediate. 'Prices will creep up over time, maybe by 1 to 2 per cent in the next six months,' said C & H Realty managing director Albert Lu.

Official figures show private home prices are still more than 35 per cent below the 1996 peak. 'But the changes collectively will go a long way in lifting the gloom that has been hovering over the property market for a very long time,' said Chesterton International associate director Colin Tan.

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July 20, 2005
PROPERTY RULES EASED
Rules for foreigners relaxed

FOREIGNERS seeking permanent resident status through investment can now buy a home as part of the minimum $2 million they need to invest here.

The home can form up to half of the investment amount.

They can also buy private apartments in any development, without restrictions. Previously, foreigners could buy private flats only in buildings taller than six storeys.

The changes are to encourage foreigners to invest in property, to 'complement our efforts to attract and anchor foreign talent in Singapore', said National Development Minister Mah Bow Tan.

Under the Economic Development Board's Global Investor Programme, foreigners were previously considered for PR status if they invested in new businesses, or funds focused on Singapore's economic development.

Residential properties were excluded from the equation. But now, a foreigner can invest up to $1 million in a private home as part of the investment needed to be considered for PR, provided he meets other conditions.

The changes do not apply to landed homes, said Mr Mah, as 'landed property is a special class of residential property that Singaporeans aspire to own, and should remain restricted'.

Rules were also further altered to 'level the playing field' for foreign property developers, by removing an exemption given to 43 companies, who have one or more non-Singaporean shareholders or directors.

Among the 43 are most of the major developers and land-owning banks and companies here, including CapitaLand, City Developments and United Overseas Bank.

They will now be required to get approval from the authorities before buying residential land for development.

Residential developments will also have to be built within six years, to ensure that the companies do not hoard land or purchase it for speculation, explained Mr Mah.

------------------------

July 20, 2005
Banks cheer new loan measures

By Lorna Tan
Finance Correspondent
BANKS yesterday applauded the Government's move to make it easier for Singaporeans and foreigners to own homes here.

Besides boosting the property market and prices, the lower cash outlay required under the new measures is expected to benefit first-time private property buyers and HDB upgraders, the banks said.

The revised rules announced by the Monetary Authority of Singapore include granting housing loans of up to 90 per cent of the property value, up from the current cap of 80 per cent.

DBS Bank and United Overseas Bank (UOB) said that consumers will be able to apply for housing loans under the new guidelines from today.

OCBC's head of consumer secured lending Gregory Chan said that the relaxing of purchase rules for land leases of between 30 and 59 years also means 'a renewal of life' for these properties, and an opportunity for those who wish to buy older properties.

Foreign buying interest is also expected to grow because the new rules allow them to buy low-rise properties of fewer than six levels, something that was previously disallowed.

'The latest announcement will help the young to buy their first home and will be a relief for upgraders for private and HDB properties,' said Maybank's head of retail financial services in Singapore, Ms Pollie Sim.

However, banks agree that whether it is 80 or 90 per cent financing, the key in their credit evaluation process will still be the debt-servicing ability of home buyers.

The largest mortgage player here, DBS anticipated a pickup in demand for private and HDB flats. However, it added that its loans assessment criteria remain the same.

Besides evaluating the borrower's credit-worthiness, banks typically use a loan repayment ratio which is set at 30 or 40 per cent of monthly income.

'Notwithstanding the higher lending ratio, DBS will continue to assist our customers to exercise financial prudence in the servicing of their loans,' said Mr Jeremy Soo, DBS' managing director and head of secured loans.

Mr Kevin Lam, first vice-president and head of UOB loans division, said the bank is able to manage the credit risk associated with bigger loans, as long as the debt-servicing ratio is appropriately managed.

Despite market speculation of a higher loan rate, the banks were hesitant to comment if rates will rise as a result of the higher capital requirements for loans in excess of 80 per cent of the property value.

Daiwa Institute of Research analyst David Lum said: 'The banks may have to charge more for the higher risk and there may be a situation where prices are scaled to the level of borrowing.'

This means that under a tiered pricing structure, those who borrow up to 90 per cent will have to pay more.

-----------------

July 20, 2005
Loans: Banks urged to be prudent

THE bigger home loans that banks can now give property buyers, including HDB flat buyers, worry MPs like Mr Gan Kim Yong (Holland-Bukit Panjang GRC).

Mr Gan said that allowing banks to lend up to 90 per cent of the purchase price will make them more aggressive in giving out home loans.

His concern: As banks can get first charge on a property since 2002, a home buyer who cannot repay his loans could end up losing all his CPF savings should his property be seized by the bank.

'With this change, it would seem that we are now relying very much on the banks' prudency to exercise care in granting the loans,' Mr Gan said.

However, National Development Minister Mah Bow Tan gave the assurance that the banks will continue to be required to exercise extreme care and prudence when assessing individual loans.

There will be no relaxation in the Government's 'philosophy of prudence'. Banks have to continue to make sure their customers can afford the loans, can afford the property and can repay the loans, he said.

The new loan limit changes a policy that was introduced in 1996, when home loans were capped at 80 per cent to cool the overheated property market.

The Monetary Authority of Singapore (MAS), the banking regulator, also gave the assurance that it too requires banks to exercise risk management.

Said its deputy chairman Tharman Shanmugaratnam: 'We expect banks to be alert and MAS will be alert in ensuring that the banks don't go overboard.'

It will supervise more actively their housing loan books, their internal credit appraisal criteria, the overall risk of their portfolio as well as their housing loan portfolio, he added.

Mr Tharman, who is also the Education Minister, gave this assurance in Parliament.

In a statement yesterday, MAS said it was looking at introducing mortgage insurance to help reduce the risks for banks.

Such insurance exists in Hong Kong and the United States.

MAS said it will explore the commercial viability of such an insurance with banks here.

----------------

July 20, 2005
Old properties get new lease of life

PRIVATE residential properties with land leases below 60 years have been slow to move because Central Provident Fund (CPF) financing was not available for them.

But with the latest rule change, which takes immediate effect, buyers can use their CPF to buy properties with 30 to 59 years remaining on their leases. However, the remaining lease period must last them up to the time they turn 80 - the average life expectancy here.

This is to ensure that buyers would have a home till they are at least 80 years old.

A 35-year-old, for example, can buy a private property with at least 45 years of its land lease remaining.

The CPF withdrawal limits for the purchase of such properties are determined by two factors: the buyer's current age, and the lease period that would be left on the property when he is aged 55. (Fifty-five is the current age at which CPF funds can be withdrawn).

Such conditions ensure that the buyer has sufficient CPF savings for retirement.

For instance, a 50-year-old who buys a property with a remaining lease of 30 years will be allowed to use his CPF to finance up to 83 per cent of the property's valuation.

The Government said the change is to allow older people the flexibility of buying cheaper residential properties with shorter leases, so more funds can be set aside for retirement.

PropNex chief executive Mohamed Ismail said a 55-year-old intermediate terrace house in the eastern area costs around $380,000. A similar house type with a longer lease of 89 to 99 years can command $850,000 to $950,000.

Owners of properties with leases of fewer than 60 years will benefit from increased prices, he said. With the change in place, their property value may rise by as much as 15 per cent, as more people will be able to buy them.

jq75

20-07-2005, 11:46 AM

More CPF changes, check CPF website press releases (http://www.cpf.gov.sg/cpf_info/goto.asp?page=News/PressRel/N_19Jul2005.asp) :o

jq75

21-07-2005, 09:44 PM

July 21, 2005 ST
New housing loan package not so cheery

Higher interest rates on DBS' bigger loans pour cold water on plans of prospective buyers

By Daryl Loo and Grace Ng
DBS yesterday became the first bank to respond to the easing of housing rules with a new loan package.

Home buyers, who cheered Tuesday's news that they needed less cash up front, did their sums and reality quickly sank in. They will end up paying much more with DBS' higher rates.

One of the changes announced by the Government was to allow buyers of flats and private homes to borrow up to 90 per cent of a property's value from banks, up from 80 per cent.

Also, for the remaining 10 per cent, private home buyers will need to pay only 5 per cent in cash up front, and the rest from their CPF savings. Those who buy HDB flats pay 4 per cent cash now, and 5 per cent starting next year.

DBS' new package has higher rates: 3 per cent and 4 per cent in the first and second years, compared to 2 per cent and 3 per cent for 80 per cent loans.

From the third year onwards, the new package is subject to a 5 per cent floating interest rate, compared with 3.5 per cent on 80 per cent loans.

A home buyer planning to purchase a $600,000 condominium using the full 90 per cent loan can expect to pay much more in monthly instalments. For the first five years at least, he would pay about $170,000, about $40,000 more than on an 80 per cent loan.

A DBS spokesman said the increased rates 'take into account the higher capital requirements under the Monetary Authority of Singapore's rules to ensure that banks have enough capital to support their lending'.

As DBS is the market leader, it is likely the other banks will follow suit.

OCBC said it will unveil the details of a new package today, while other lenders said they are also reviewing their loan packages.

DBS' new rates follow assurances from National Development Minister Mah Bow Tan that banks will continue to be required to exercise extreme care and prudence in giving out loans.

Responding to MPs' concerns that banks may be overly liberal in making loans, Mr Mah stressed they have to continue to ensure customers can afford them.

For upgrader Adam Tan, the new rates poured cold water on the euphoria he felt when the relaxed property purchase policies were unveiled.

The 30-year-old financial services executive is planning to spend $600,000 on a new condo.

'This is disappointing. The Government is trying to encourage more people to buy property, but by raising rates, instalments become more expensive,' said Mr Tan, who had planned to borrow to the limit.

With a higher loan, he would have had to fork out $30,000 less, which he planned to use for renovations.

'I'd much rather stick to borrowing less now, rather than subject myself to a higher interest rate,' he said.

Even property developers agreed that buyers should be cautious.

NTUC Choice Homes' chief executive officer Adeline Sum advised: 'Buyers who wish to take advantage of the easing of financing will do well to factor in the interest cost fully.'

The same applies to those who buy HDB flats, said Dennis Wee Properties director Chris Koh.

While they may find it much easier to buy a flat as they now require less CPF savings to make the downpayment, they face the same dangers in taking a larger bank loan, he said. The CPF downpayment required has dropped from 16 per cent to 6 per cent.

Knight Frank director Nicholas Mak felt all prospective buyers should get a clear picture of what they are going into.

For instance, with a 90 per cent loan on a $600,000 condo, Mr Mak reckons the extra interest will be more than $50,000, 'enough to buy a new car'.

--------------------------------

July 21, 2005 ST Forum
Three CPF shocks await property owners

THE Central Provident Fund Board's reply, 'Minimum Sum: Use excess to pay for housing' (ST, July 6), to Madam Kordial Kor's letter, '55th-year CPF shock for property owners' (ST, June 25), states:

'We would like to correct Madam Kor's misperception that the 'Ordinary Account becomes zero' when one reaches age 55 and members are left with no savings to service their housing loans... They have the option to withdraw any excess balance after setting aside the Minimum Sum or keep it in their CPF account to continue servicing their housing loan.'

This does not address Madam Kor's predicament because she has no excess after setting aside the current Minimum Sum of $90,000. The Minimum Sum will increase to $120,000, and the Medisave Minimum Requirement to $25,000, by 2013.

I believe it has been estimated that about a third of CPF members may not have any excess to withdraw at age 55. This means that if they still have outstanding housing loans, their CPF cannot be used to make the monthly mortgage payments, and future CPF contributions may also not be utilised if there was a shortfall in their Minimum Sum at age 55.

Does this mean that one should use whatever balance is in the Ordinary Account to make a lump-sum housing-loan payment just before age 55? When one takes a 20- or 30-year housing loan, it is difficult to know whether there will be any CPF excess to continue to pay the mortgage after age 55.

Another policy that may 'shock' home owners is the current 138 per cent cap on the use of CPF for HDB or private-property bank loans. This will be reduced by 6 per cent a year until it reaches 120 per cent by Jan 1, 2008, for new and re-financed bank home loans. When the cap is reached, CPF will no longer be allowed for servicing one's mortgage.

It is also difficult to plan 20 or 30 years ahead for this CPF cap, because it depends on the movement of interest rates during the loan period.

When the cap becomes 120 per cent in three years' time, it is estimated that all home owners would be hit at some point in a 30-year housing loan.

One other policy that may 'shock' home owners is the Available Housing Withdrawal Limit, which also does not allow CPF to be used when it is reached.

It is also difficult to plan for this limit, as it is dependent on the Minimum Sum increase, CPF balance, total CPF contribution, amounts withdrawn for non-housing use, etc.

Although the CPF Board 'has made available a comprehensive education programme to explain to members the importance of planning for retirement, including planning for their housing needs', some may end up in a situation similar to Madam Kor's, as there are many unknown variables, such as job loss, wage reduction, interest rates and what the Minimum Sum will be in 20 or 30 years.

Leong Sze Hian

jq75

21-07-2005, 09:52 PM

from CNA :look:

Singapore banks keen on mortgage insurance for housing loans

SINGAPORE : Singapore banks say they are keen to take on mortgage insurance for housing loans of up to 90 percent of the property value.

This will mitigate the increased risk that they take in extending such high quantum loans.

But industry sources say it is still too early to determine if the cost of such insurance will be borne by the home buyers.

There was no need for mortgage insurance when home financing was capped at 80 percent of the property value.

Banks say the shortfall on repayment of housing loans, during the recent downturn, was at the most 10 percent.

So it wasn't commercially viable for mortgage insurers to operate here.

But now, with the financing limit raised to 90 percent, some banks are seriously considering such insurance.

That is because loans above 80 percent of the property value will attract a capital charge of 100 percent, which is double the charge for loans below 80 percent.

Banks say mortgage insurance can be an alternative to the high capital charge and will also protect the borrowers.

The head of UOB loans division Kevin Lam said: "In the event of a downturn in the future and coupled with borrowers' situation such as unemployment, you dispose the property to pay off the loan but there is still a shortfall. The borrower can claim from insurance to pay off the shortfall, or this shortfall will have to be borne by the borrower."

But such protection comes at a price since the insurer will be assuming the risk between the borrower and lender.

And how much will home buyers have to pay for mortgage insurance?

Industry sources say it is still premature to provide an indication as banks have yet determined the pricing of such high quantum loans.

Some banks say they have received proposals from established mortgage insurers in Hong Kong, Australia and the US.

But they are not ruling out local insurers just yet, as their experience and knowledge of the Singapore market will be an advantage.

But ultimately, the banks say they will evaluate each proposal on its own merit.

-CNA /ls

-----------------------

Home loan rates may be on the rise with DBS hiking rates by 1%

SINGAPORE : Interest rates for home loans may be on the way up.

DBS fired the first salvo by hiking its floating rates by 1 percentage point for the initial two years.

The rate is 1.5 percentage points higher for subsequent years.

The new rates apply only to those who apply for loans up to the 90 percent limit.

They take into account the higher capital requirements by the Monetary Authority.

OCBC will announce its new package on Thursday, while UOB says it is monitoring the market closely and will respond to changing conditions and customer needs.

All three banks, as well as Standard Chartered Bank, have seen a marked increase in inquiries from potential home buyers.

This, just one day after National Development Minister Mah Bow Tan announced major changes to financing rules for residential properties.

DBS says the inquiries came mainly from customers seeking clarifications on the new rules.

OCBC says most of the customers seem to be rational in their reaction and are adopting a wait and see attitude.

Many say they will be gathering more information before making their decision.

UOB believes the increase in inquiries is likely to translate into improved business opportunities.

- CNA /ls

--------------------------

Govt will step in if property prices rise excessively: Mah Bow Tan

National Development Minister Mah Bow Tan said the government would step in if property prices rise excessively.

He was responding to concerns over developers wanting to raise property prices shortly after the government eased the financing limits on property purchases.

However property analysts say developers will more likely reduce the discounts on properties rather than raise the prices.

Just days after the government relaxed its rules on home ownership and financing, some developers have already hinted on raising their property prices.

And this is leading to concerns that property prices may again sky-rocket, like they did in the mid-90s.

Mr Mah said: "If the end result of this is that the market goes up and is supported by economic fundamentals, then that's it. If it becomes excessive like in 1996, then I think as we did in 1996, the government will step in. But that can only be on an exceptional basis."

But Mr Mah felt it was premature to speculate on how prices would move.

He said the situation back in 1996 was different from today.

Back then, interest rates were high and it was easy getting liquidity.

But now, with zero speculation and relatively low interest rates, home buyers are buying properties more for their own use.

Donald Han, Managing Director, Cushman & Wakefield, said: "Developers may be tempted to raise prices...for projects that have been selling very well, the take up rate has been extremely good. And even then, I think it's selected to just a few projects. And even if they were to increase price, I think it will not take place in that manner, but probably to reduce the amount of discount that's given to a particular property."

Analysts say most developers will probably try to re-market their properties over the next few weeks.

But for them to justify a price hike, there has to be increased activity in terms of transactions.

They say the market should ultimately dictate the prices, not the government.

Property analysts say the less interference the better, now that new measures are already in place.

It is better to see how well the market performs and let the market sets its own pace in terms of adjusting the property prices.

Market watchers say the current system of the reserve list should also limit an excessive surge in property prices as it releases land parcels according to market demand. - CNA /ch

jq75

21-07-2005, 10:36 PM

Fr CNA

OCBC sets higher interest rates for its 90% home loans

After this week's property announcements, OCBC has set higher interest rates for its 90 per cent home loan financing.

This came a day after DBS raised its floating rates by 1 percentage point for the initial 2 years, and 1.5 points higher for subsequent years.

For OCBC, its rates are raised by 1 percentage point across the board for all private and HDB properties.

Maybank and HSBC say they are also reviewing their home loan packages while UOB says it is monitoring the market and will respond to changing conditions.

Property developers and agents say that while they have received more enquiries on launches, it is still early to say if it will translate to more buyers.

Many potential buyers are adopting a wait-and-see attitude on the kind of packages banks come up with as a hike in interest rate for a bigger loan might mean they will pay more in monthly instalments. - CNA /

jq75

22-07-2005, 10:47 PM

HDB resale flats becoming more affordable in Q2

Curbs on illegal cash back deals are bearing fruit as the latest Resale Price Index shows a drop in prices of resale HDB flats in the second quarter this year compared to the same period last year.

Resale HDB flats are more affordable than before, with prices falling some 3.6 per cent between this March and June, compared to the same quarter last year.

It is also the first time the Price Index has dipped since 2002.

Property agents say this is mainly due to the measures in place to stop illegal cash back transactions where the buyers, sellers and valuers inflate prices in order to secure a bigger bank loan.

The price drop came as no surprise to industry watchers but they expect prices to hold steady in the coming months.

Chris Koh, Dennis Wee Properties, said: "In the second quarter, we saw a lot of 5-room and executive flats being bought, it showed that prices are more or less there and buyers are willing to commit, they are the real price, they are what they are today under HDB valuers, so there's not inflating of prices anymore, everything looks more realistic."

The private residential sector is also on track for recovery as home prices continue to increase for the fifth straight quarter.

Figures from the Urban Redevelopment Authority indicated a climb of 0.5 per cent in the second quarter this year, from the first quarter.

And demand for private homes is set to improve especially with the recent changes to home ownership and financing policies.

Even though some banks have raised interest rates for home loans, property experts say it is unlikely to negate the positive impact of the policy review.

Johnny Yu, Property Consultant, ** Richard Ellis, said: "We believe a far more important factor influencing the buyers decision is the initial cash payment as this downpayment has been reduced from 10 percent to 5 percent, it's a welcomed move."

Private residential properties have also enjoyed good sales with nearly 2,800 deals sealed in the second quarter.

If trend continues, it could translate into sales of some 8,000 units this year. - CNA

jq75

22-07-2005, 10:52 PM

July 22, 2005
Mah: Property reforms sound

THE Government will step in if the property market overheats, National Development Minister Mah Bow Tan said yesterday.

Speaking at the official launch of the Marina Bay brand yesterday, the minister said he was confident the reforms in the property market introduced on Tuesday, reducing the minimum downpayment on homes from 20 per cent to 10 per cent, would not lead to rampant speculation.

'There's plenty of supply out there... plenty of developers out there,' he said to reporters.

'Buyers are discerning. And the new rules give them more choices in terms of financing, loans and so on. But... it is up to the individual to make up their own mind what they can afford.'

He also responded to concerns that the new measures could lead to a repeat of 1996, when the Government had to step in to stop runaway property speculation. The measures it took then included taxing the gains from the sale of property within three years of purchase, and limiting home loans to 80 per cent of the value of the property.

'Let's not pre-empt the situation... the purpose of our policies is for the market to work properly.

'If it becomes excessive as it did in 1996, the Government will step in, but that can only be on an exceptional basis. I think all the safeguards have been put in place.'

jq75

24-07-2005, 02:22 PM

Property developers hope to gauge buyers' reactions to relaxed financing rules CNA

SINGAPORE : Property developers are holding their breath this weekend as they await buyers' verdicts on relaxed financing regulations.

The calculator was king as property agents and potential buyers made sense of changes to financing rules.

Among them - buyers now only need to pay a 5 per cent down payment for a flat compared to 10 per cent before.

Mr James Phung and his wife spent the day looking around show flats.

They want to upgrade from their 4-room HDB apartment and appreciate the changes.

Mr Phang said: "With the 5 per cent down payment, it is good for young people like ourselves who do not have too much cash to place down a deposit for a property."

A larger house loan means buyers will have to pay back the bank over a longer period.

This and other potential charges are stopping some from rushing ahead.

Ms Sandy Lim said: "For me, I am a bit cautious. We should not react too quickly and put a down payment and think everything is going to be well but it is a welcome move for buyers."

But others believe in striking while the property is hot.

Mr Eric Yeow said: "If I find it is good value for money, tonight I go back and study. I may sign on the dotted line as soon as possible because prices may go up due to this change in housing policy."

Property developers say it is still too early to tell how the lower down payments and other changes are affecting their business.

But they are expecting a busier day on Sunday and by the end of the weekend, they will know if people are rushing to sign on the dotted line or still playing it safe. - CNA

jq75

24-07-2005, 02:25 PM

Developers hopes to see further easing of foreign property ownership

CNA

SINGAPORE : The government has relaxed foreign ownership of private residential properties in Tuesday's policy changes.

Now, foreigners can purchase low-rise apartments without the need to obtain prior approvals.

And some developers are hoping to see a further easing in rules.

Prior to Tuesday's announcement, foreigners needed approval to buy landed and apartments in non-condominium developments of less than 6 levels.

But developers said they noticed that the waiting time for approval had been significantly reduced.

"The waiting time used to be between 3 to 6 months. We now understand that it has been shortened to 1 to 3 months," said Augustine Tan, GM of Singapore Residential at Keppel Land.

Developers are confident that the policy changes will spur more locals to commit to a private property, with positive implications.

Tan said: "Foreigners will notice that the market will pick up and this will be a spillover indirectly. They will a greater urgency and Singapore will be more attractive."

While the government said that landed properties are special and should be restricted for sale to Singaporeans only, some developers propose a gradual easing of the rules.

Said Chua Thian Poh, Chairman & CEO of Ho Bee Investment: "Hopefully the government will lift the restrictions. They can give a cap on landed properties, like 99-years or leasehold for foreigners."

Not all property watchers are convinced that Tuesday's announcement will have a positive impact.

They said that landed properties account for a small proportion of the total stock. Furthermore, newer and more attractive apartments are found mostly in high-rise projects, where no approvals are needed.

"I don't think the changes made Tuesday will make a major impact on whether foreigners purchase properties in Singapore or not. My experience living in Singapore is that there has been more interest in the condo market for foreigners rather than landed properties," said Andrew Gillan, investment manager at Aberdeen Asset Management Asia.

On average, foreigners account for 5% to 6% of total residential property purchases annually.

- CNA /ls

jq75

24-07-2005, 02:41 PM

July 23, 2005
ST

PROPERTY MARKET CHANGES
Home sweet home? Not in the long term

By Tan Khee Giap
WHEN the Government announced policy changes for the property sector on Tuesday, National Development Minister Mah Bow Tan emphasised that the aim was to ensure a stable market and not to boost values.

However, stock market exuberance followed, with property and banking stocks registering significant gains almost immediately, while MPs raised concerns about Singaporeans yet again spending beyond their means on property.

I have three observations to make. First, potential investors, especially first-time home buyers, are misleading themselves if they regard the latest measures as yet another government attempt to boost the real estate sector. The relaxation of housing-loan financing by banks to up to 90 per cent of a property's value from the previous 80 per cent is in line with the current economic environment as the previous speculative climate no longer prevails.

What is worrying, however, are the assumptions behind analysts' and investors' positive readings, which must have led to the rise in stock market prices of related counters despite Mr Mah's repeated clarifications of the Government's neutral market position. Still, the exuberance reflects what the market is saying: that housing developers are expected to sell better and banks will do better.

My second observation is that the market may not be wrong after all, as many residents who have gone through four decades or so of steady and sometimes sharp property value appreciation have still not adjusted to the reality that such a scenario may no longer hold true. For them, gearing up fully in property investment continues to be the natural decision to make.

Typically, this is known as expectation and adjustment lags in the decision-making process, where economic agents fail to behave rationally, at least in the short term, even as drastic changes take place.

The argument is straightforward. The Singapore economy grew at an average of 8.4 per cent per annum over the first 32 years of independence, and we expect the potential growth in the next equivalent phase (from 1997) to be 4 per cent, or half of what the economy used to be able to drive on.

Continued economic restructuring will mean more uncertainty in the job market for most, and findings by the Institute of Policy Studies have revealed a potential worsening of structural unemployment for both white-collar and blue-collar workers aged 45 and above.

In this situation, what are the prospects of a repeat of the 10-fold appreciation in property prices we used to see? It may well be a different scenario if the population doubles to eight million and the services sector - including the integrated resorts - takes off spectacularly.

It is rather strange that most consumers in Singapore, especially first-time home owners, tend to be more concerned about getting low first-year interest rates on a housing loan but are less bothered by committing to a long loan tenure of, typically, 25 years or more. For consumers in the West, 15 years or less tends to be the norm.

Consider a typical home owner upgrading - be it to public housing or private residential property. Let us look at, say, a $1 million terrace house, with a 5 per cent interest rate on a normal loan tenure of 20 years or longer. In this instance, a doubling of price in two decades simply means breaking even on the investment.

Hence, my simple advice is this. Given the expected lower potential growth rate and ongoing economic restructuring, assuming limited upside potential and limited downside risk during this phase of economic development, it would be wise not to be fully geared in property even if you can afford it.

An average prudent resident (as most are) would probably do much better if he put the extra financial resources into an equivalent tenure of Singapore government securities that enjoy a relatively stable 4 per cent return to maturity, assuming, of course, that the Government continues to function in the future the way it does now.

Finally, it wouldn't be surprising if some found it convenient to blame the Government should they again find themselves in negative asset return, especially new home buyers without the relevant experience.

Should the Government continue to have measures to prevent residents spending beyond their means, or committing to full gearing in property? The answer is no. Nor is it realistic to rely on bankers or the Housing Board to provide consumer restraint.

Market exuberance may continue but it is ultimately one's own decision in recognition of the challenging new economic environment that matters.

How can the Government help to educate people? It could provide tax incentives to first-time home owners who take on public housing and lower categories of private housing for a loan tenure of 15 years or less. This could help to avoid a potential asset-poor, cash-poor situation in the future.

The writer is with Nanyang Business School, Nanyang Technological University.

--------------------------------------------------------------------------------

REMEDIAL MEASURES

How can the Government help to educate people? It could provide tax incentives to first-time home owners who take on public housing and lower categories of private housing for a loan tenure of 15 years or less. This could help to avoid a potential asset-poor, cash-poor situation in the future.

----------------------------------------------------

July 23, 2005
Private home prices continue to edge up
HDB resale prices down, property buying set to rise

By Daryl Loo
PRIVATE home prices edged up 0.5 per cent in the second quarter of this year, continuing the rising trend for the fifth straight quarter.

However, prices of resale HDB flats during the April to June period went down for the first time in over three years, official figures show.

They are now 4.8 per cent cheaper, on average, owing largely to the demise of illegal cashback deals. In these deals, home prices are inflated for the buyer to get a bigger bank loan. After the seller is paid, the extra cash goes to the buyer.

The property market has since received a shot in the arm when the Government changed the property rules for financing and foreign ownership earlier this week.

Property analysts expect the new rules to spur many to get off the fence and start buying.

That is because buyers of HDB flats and private property can now borrow up to 90 per cent of the property's value from banks, instead of 80 per cent earlier.

Also, private home buyers will need to fork out just 5 per cent of the remainder in cash, with the rest coming from their CPF savings.

The changes take effect immediately for private home buyers. HDB buyers now pay 4 per cent cash until the start of the new year, when it goes up to 5 per cent.

Analysts believe the changes will bring property within reach of more buyers.

DTZ Debenham Tie Leung executive director Ong Choon Fah said: 'The greatest impact on the housing market will come from improved sentiments among buyers who have so far been waiting on the sidelines.'

Agreeing, Knight Frank director Nicholas Mak said he expects overall prices to increase by up to 7 per cent this year, lifting his previous prediction of 6 per cent.

Yesterday's figures from the Urban Redevelopment Authority (URA) said the second-quarter gain follows a 0.7 per cent rise in the January to March period.

Private home values ended a four-year slump last year with a 0.9 per cent rise, but they remain about 35 per cent down from their pre-financial crisis peak in 1996.

** Richard Ellis executive director Soon Su Lin, however, sees demand 'returning in a remarkable fashion'.

A total of 2,780 units were sold by developers between April and June, more than double the 1,250 units in the first quarter this year.

Analysts attributed it to the many new projects being launched. Nearly 3,000 units were put up for sale.

Ms Soon predicts this year will end with up to 8,000 units being sold, 'significantly higher than the annual totals of the past two years, when demand had been sidelined by cautious sentiments and unemployment concerns'.

For HDB flats, overall prices fell nearly 5 per cent. HDB said earlier this month that this was expected after rules for bank loans were tightened from April 1, to stop cashback deals.

About 6,600 HDB resale flats were sold during the quarter, a drop of 400 units, although the larger five-room and executive flats both saw a slight increase in sales.

URA also announced yesterday that eight major sites have been given provisional permission to have homes built on them.

These include a site in Sentosa, bought by developer Ho Bee which wants to build 21 landed homes, and two plots in West Coast and Hillcrest Roads that are owned by SingTel.

---------------------------------------------

July 23, 2005
INCREASE IN HOME-LOAN CAP
Bigger loans may hurt borrowers

I READ with mixed feelings about the Government's decision to increase the home-loan cap from 80 to 90 per cent. While this is definitely a boost for the property and banking sectors, as well as the overall economy, such a move will encourage more people to buy private properties with a higher loan amount.

A considerable number of Singaporeans are already overwhelmed by credit-card debts and car and housing loans.

According to a recent survey by the Singapore Management University, Singaporeans are already short of funds for retirement. The additional housing debt burden will further deplete their retirement funds.

With the change, Singaporeans just need to fork out $25,000 cash and $25,000 from CPF upfront for a $500,000 property. Many will not realise that by taking up an additional 10 per cent loan amount of $50,000, the additional interest payable, based on a 5 per cent per annum rate over 30 years, is $46,600!

In the light of this, more measures are needed to ensure that only those who can fulfil the debt-servicing requirements are allowed the maximum loan amount.

Sean Lim Kian Chye

jq75

24-07-2005, 02:49 PM

July 24, 2005
Drawbacks to Cashbacks
Attachment (http://straitstimes.asia1.com.sg/mnt/media/image/launched/2005-07-24/moneychart.pdf)

With the reduction in cash down payment for homes from 10% to 5%, some homeowners can theoretically get tens of thousands of dollars in cash back if they sell their current home and buy a new property. The Sunday Times examines if it is worth their while to do so

By Fiona Chan

Think it's a good idea to sell your home and buy a new one with lower down payment to get back cash? The loan and CPF expenses, plus stamp duty, may make you think twice.

A FEW years back, a policy change scrapping down payments on new cars contained an inadvertent bonus: A window of opportunity to get new wheels and 'free' money.

The policy change dropped the requirement that the buyer of a new car had to put down a deposit equal to 30 per cent of its value.

Some clever types did the sums and realised they could trade in their current wheels for the latest models by taking fresh loans worth up to 100 per cent of the new car's value. By selling their existing cars, they could also get some of their initial 30 per cent deposit back in cash.

With last Tuesday's easing of property rules on down payments, some private home owners are unexpectedly facing a similar situation.

Buyers now need to pay only 5 per cent of a new home's value in cash upfront, down from 10 per cent. So a light bulb has switched on in some people's heads: They could trade in their existing home for a new one and get some quick cash in the hand.

Take the example of Mr X, who bought his condo for $600,000 last July and paid 10 per cent, or $60,000, in cash upfront and another $60,000 from his CPF account. (If he had bought it before September 2002, the cash down payment would have been 20 per cent.)

If he sells his condo for $600,000 now, he will get the $60,000 cash back. Buying a new $700,000 condo would only require a $35,000 cash down payment.

After taking away $35,000 from the $60,000 in cashback, he would get $25,000 in hand - yielding about 4 per cent in cash back for him, before expenses.

The amount of cashback would be even more if he had forked out 20 per cent cash.

Selling the condo would give him the original $120,000 cash back, leaving him with $85,000 in cash after paying the $35,000 new condo down payment - which means he returns nearly 15 per cent out of his original down payment back into his hands as crisp, ready-to-use dollars.

But there are several factors to consider before you start scouting for a new home.

The main one: Has your property dropped in value?

If you bought in the boom years of the 1990s or during a mini-recovery around 2000, your property is now worth as little as half the price you paid.

This means that the cash you can get back will be a lot less than your initial cash down payment. In this case, trading in your home for a new one will probably not be worth it.

But if your home was purchased in the last two or three years, or some time during the Asian economic crisis of 1998-1999, its value may not have changed much.

However, even if you can sell your home for the same price you paid originally, you may not get your entire initial cash down payment back because of interest payments and other charges.

Here are four factors to your cashback plans that could render them pie in the sky.

Interest payments on your bank loan

A BIG chunk of the monthly instalments on your home loan goes to paying off the interest rather than the principal, or original loan amount.

This is especially so in the first few years, when up to about 50 per cent of your monthly payments just pays off interest.

Interest payments on your CPF withdrawals

IF YOU have been using funds from your CPF Ordi nary Account to pay the monthly mortgage instalments, you will have to return all this money to the CPF when you sell your home.

You also have to pay back the interest your CPF funds would have earned if they had not been used for the loan.

This interest refund amounts to 2.5 per cent of your total CPF withdrawal, multiplied by the number of years you took out your CPF funds.

Agent's fees on current home

TYPICALLY, property agents charge a fee of about 1 per cent of the sale price.

So if you sell your home for $800,000, your agent's fees can be a hefty $8,000.

Stamp duty on new home

STAMP duty is based on the purchase price of the new property: 1 per cent for the first $180,000, 2 per cent for the next $180,000 and 3 per cent for the remainder.

For properties costing more than $360,000, just take 3 per cent of the purchase price and deduct $5,400 from that.

Stamp duty can be paid using cash or CPF. But if you paid it on your current home using CPF, you have to refund that money, plus interest of 2.5 per cent, back into your CPF account when you sell.

To see whether you can still get a good amount of cash back after all these deductions, The Sunday Times has worked out three scenarios.

All three involve home owners who bought their current home for $800,000, but at different times over the last five years.

The first scenario is a home owner who bought in July 2000, when prices were about 25 per cent higher than now. He paid 20 per cent of the purchase price in cash and can only sell his home for $600,000 now.

This scenario also highlights the effects of paying off the interest on the home loan, reather than the principal amount. The home owner has paid $3,000 a month for five years, a total of $180,000. But only $90,000 has gone towards reducing the loan. The other $90,000 has gone on interest. So of the $640,000 principal, there is still $550,000 to pay off.

In the second scenario, the home was bought in July 2002. Prices have not changed much since then and the home owner, who paid 20 per cent of the price in cash, can sell his home for the full $800,000 he paid.

The owner in the third scenario can also get $800,000 for his home, but he paid only 10 per cent of the down payment in cash.

According to the calculations, the home owners in the last two scenarios will get at least a few thousand dollars in cash. So, for them, trading in their homes might be feasible to earn some quick cash.

'Someone who's really in need of cash at this time may be able to take advantage of the new housing policy and cash out,' said PropNex chief executive Mohamed Ismail.

But some property analysts warn that trading in your home may not be advisable, even if this does leave you flush with cash.

Knight Frank director Nicholas Mak cautioned: 'If you want to have more cash now, there is a price to be paid later. In the end the borrower has to pay more in loan repayments and pay for a longer time. It's not free money.'

jq75

25-07-2005, 10:55 PM

HDB, URA hand car park enforcement over to private service providers

SINGAPORE : Enforcement functions at Housing and Development Board and the Urban Redevelopment Authority car parks will be handled by private service providers from August.

The HDB and URA said this was in line with the Government's direction for public agencies to focus on their core businesses and to outsource the other functions to the private sector.

The outsourcing exercise will affect 356 staff from HDB and 102 from URA.

They will leave under the Special Resignation Scheme for officers made redundant due to restructuring within the Public Service.

Their last day will be on July 31st.

The two agencies have been working closely with the staff unions, NTUC, Singapore Workforce Development Agency and self-help groups to find suitable alternative employment for the affected staff.

Job fairs were held in May to allow them to meet potential employers.

Many had also taken up retraining programmes sponsored by HDB and URA.

The HDB said its earlier exercise of outsourcing 30 percent of its carpark enforcement function two years ago showed the private sector can carry it out efficiently and effectively.

It will outsource the remaining 70 percent to The Commercial & Industrial Security Corporation or CISCO and SembCorp Environment Management Pte Limited.

URA has awarded its contract to United Premas Ltd.

There will be no change in parking charges or parking fines.

And while the service providers will issue the parking offence notices, HDB and the URA will continue to follow up with the issuing of formal notices to affected motorists for settling parking fees and handle all enquiries, payments and appeals. - CNA

jq75

25-07-2005, 10:57 PM

July 25, 2005
Town councils get tough on killer litter bugs

TOWN councils here are going after recalcitrants who repeatedly refuse to remove potential killer litter objects from HDB flats.

Over the next few months, the town councils will be approaching residents to ask them to remove objects such as flower pots and bird cages which serve as potential killer litter.

Residents who repeatedly refuse to heed these requests may be served with a summons issued either by the HDB or the town councils.

They will have to attend court and if convicted, can be fined up to S$2,000.

Should they choose to ignore the court order to remove the object from their flats even after conviction, they will be liable to a further fine of S$100 for every day that the object is not removed.

So far, HDB and the town councils have yet to take legal action against anyone, but a HDB spokesman said it will do so in the future if necessary.

jq75

25-07-2005, 10:58 PM

HDB launches July walk-in selection exercise with 531 units in 3 towns

The Housing and Development Board is offering 531 units of 4-room, 5-room and executive flats in Bukit Batok, Bukit Panjang and Choa Chu Kang for sale under its July walk-in selection exercise.

It will start issuing queue numbers from Monday and applicants can start booking their flats at the HBD Hub Sales Office in Toa Payoh from Thursday, July 28th.

To give interested home buyers a better idea of the flats on offer, some show flats and unfurnished sample units in Bukit Panjang and Choa Chu Kang will be open for viewing.

More information on the current exercise is available from the HDB website at www.hdb.gov.sg and on Channel NewsAsia Teletext, page 670.

Meantime, the walk-in selection exercise for flats in Hougang, Sengkang and Punggol launched in July last year will be temporarily suspended from August 1st.

HDB said this was to enable it to take stock of the balance flats and prepare for the next launch in October.

But flat buyers interested in other non-mature towns, such as Sembawang, Woodlands, Jurong East and Jurong West, or established towns like Bukit Merah, Central, Geylang and Ang Mo Kio can continue to book the units at the HDB Hub. - CNA

jq75

25-07-2005, 11:01 PM

July 25, 2005
Property bubble unlikely this time

By Audrey Tan
Assistant Money Editor
SUDDENLY, love is in the air again. Singaporeans' love affair with property, that is.

All across Singapore, people have been doing their sums, working out what Tuesday's announcement, making property easier to buy, means to them.

From Housing Board (HDB) upgraders to serial landlords to property virgins, conversations have homed in on hot property - excitedly drowning out, for now at any rate, cautionary words from those burnt by the bust of 1996.

'Only 5 per cent cash!' a young friend exclaimed in reaction to the news that the minimum cash deposit has been lowered from 10 per cent of the purchase price to just 5 per cent. He then wondered aloud if his year-end bonus would cover the downpayment on his first property.

Another saw a different angle: he was busy calculating how much cash he could get back if he sold his current home to buy a new one with a 90 per cent loan. That cash could translate into a new car, he reckoned.

Yet another property buyer, on the verge of signing on the dotted line for a flat, was fretting over whether the seller would now hold out for a higher price.

Little wonder then that the collective response - from property developers, analysts and banks - to the changes announced by Minister for National Development Mah Bow Tan has been a universal thumbs up.

Developers expect demand to perk up, fuelled by three significant fillips: the reduced cash downpayment; unmarried singles being allowed to jointly use their Central Provident Fund (CPF) savings; and foreigners being allowed to buy certain classes of property for the first time.

Analysts say these will help lift a property market that has lagged behind its regional counterparts in recovering from the Asian financial crisis.

Banks see a rash of new buyers seeking financing and, what's more, taking up larger loans.

Local property stocks have also risen to their highest levels in almost five years.

But is it all 'much ado about nothing', as one bank economist put it?

Indeed, anyone betting on property prices recovering to their 1996 peaks - just before the Government introduced anti-speculation measures that brought the frenzy of those times to a shuddering halt - may end up sorely disappointed.

Sure, the changes will suddenly make property more affordable for new buyers.

Unmarried singles, a group long penalised by property policy, will also find it easier to service their mortgages using CPF savings.

Property consultants say the changes may also convince many potential upgraders with money to take the plunge, because they will want to get in ahead of any rise in property values.

But will this new demand trigger a strong recovery? And, as some Members of Parliament fretted, will Singaporeans throw caution to the wind and buy beyond their means?

Worse, will this be the start of yet another property bubble, like that of the early-to-mid 1990s, as speculators bet on a sustained rise in prices?

Asked yesterday if he saw a return to those bad old days, Mr Mah said there was plenty of supply in the market.

But the Government will intervene if things get out of hand, he said. 'If it becomes excessive, as it did in 1996, the Government will step in, but that can only be on an exceptional basis.'

There are also 'quite fundamental differences' between 1996 and today, he added.

Mrs Ong Choon Fah, executive director of property consultancy DTZ Debenham Tie Leung, thinks people have learnt a lesson.

'I don't think there will be a return of the pre-1996 euphoria. Most people in the buying age range now can certainly remember what happened after 1996,' she said.

Pre-1996, steadily rising property prices led many to believe there was easy money to be made from buying and selling property, fuelling a vicious cycle and runaway prices.

Some speculators were even buying in bulk.

Mr Nicholas Mak, director at property consultancy Knight Frank, said: 'The sentiment was that, if I don't get in now, I will miss the boat. If I get in, I might as well buy two.'

But the Government popped the bubble in May 1996 with new curbs such as bank lending limits.

The subsequent drop in property prices was made worse by the Asian financial crisis the following year. Today, prices are still some 35 per cent off 1996 peaks.

'There are still people holding onto property with current values below what they paid,' said Mr Mak. 'The mentality is very different now and another massive asset bubble is unlikely.'

Irrational exuberance aside, the economic conditions which led to the 1996 property heights are also by no means present today.

Then, the economy was growing at around 8 per cent each year and unemployment was at a historical low of around 2 per cent.

The macro-economic outlook has changed drastically since, said Nanyang Technological University Associate Professor Tan Khee Giap.

In its current growth phase, the Singapore economy is only likely to grow at around 4 per cent each year, almost half its rate in the 32 years before 1997, he said.

Continued economic restructuring also means more job uncertainty ahead.

'I don't think there will be a return of a speculative bubble, because there is nothing to be speculative about. Even bubbles need to have fundamentals,' he said.

He feels property buyers will be wise not to be mortgaged to the hilt even if they can afford to be.

In fact, he says more education is needed so consumers learn to be more savvy in managing their finances. The Government can also encourage people to be more prudent, such as through tax incentives for those who take up loans with shorter tenures.

In the long term, the ideal situation may be one in which the Government need not tweak property rules such as on the use of CPF savings for purchases.

Granted, a property boom-and-bust cycle could destabalise the economy, especially if the banking sector were over-exposed to the property sector.

But Singapore can develop financial instruments that make government intervention unnecessary, said DTZ's Mrs Ong.

For example, mortgage insurance can help homeowners manage the risks of buying properties. Banks can also lessen their exposure to property lending by bundling mortgages for sale to third-party institutional and retail investors, she said.

'As Singapore matures as a nation and society, people have to learn to be responsible for their own actions,' she said.

jq75

25-07-2005, 11:01 PM

Optimistic consumers snap up property

Sentiment-lifting changes to the property market last week gives much-needed boost

Monday • July 25, 2005

Shobha Tsering Bhalla
shobha@newstoday.com.sg

THERE was a 40-per-cent increase in traffic at some property launches over the weekend following last week's sentiment-lifting changes to the property market.

One such development was the luxury development The Belvedere in Meyer Road.

Mr Albert Foo, deputy general manager (residential) at Keppel Land which developed the project, said the number of people who had bought units at the freehold condominium had jumped "tremendously" since the property goodies were announced.

Banks can now lend up to 90 per cent of a property's value, and the cash downpayment is just 5 per cent.

"Three or four properties were snapped up this morning and several more in the afternoon. So there's a lot more optimism among consumers," said Mr Foo.

Far East Organization is also reporting "broad-based interest from homebuyers, substantiated by take-up across all property types", said its chief operating officer for property sales, Mr Chia Boon Kuah.

"Sales have increased three-fold to 80 units in the past week, including 46 units sold during the weekend. In addition to strong take-up in entry-level condominium projects, such as Lakeshore, Blue Horizon and Hillview Regency, and our latest executive condominium La Casa, we have also seen a notable return in interest to landed properties."

Buyers thronging show-flats yesterday corroborated this.

A businessman in the transport sector, who only wanted to be known as Mr T R, said he had been planning to buy a second property for some time and the changes have spurred him to bring forward his investment plans.

"With these new rules the downside for me is much less than the upside. I'm only worried about these crowds who are now pushing the prices up," he said.

Pointing at the capacity crowd at the Belvedere show-flat, he said it reminded him of the heyday of the property market in 1996, when people queued with chequebooks to buy properties on the spot.

"I'm starting to get that feeling now," the 50-year-old who already has a landed property in Dunbar Walk said.

It was a similar scene over at the luxurious The Seaview show-flat, off East Coast Road.

Over a hundred cars were spilling out of the driveway and parking lots and visitors had to dodge vehicles squeezing into a bylane parked three-deep.

Although the developer Wheelock Properties was unable to give the exact number of people who turned up over the weekend, a company spokesman said with the recent policy change, interest has been "ever stronger".

Out of a total of four towers released for sale this month, about 250 units have been sold. The entire project consists of six towers comprising 546 units.

Crowds have been turning up even at smaller projects like the D' Palma.

"We expected about 40 or 50 people but more than 80 turned up and some sales were done on the spot," said Mr Chris Koh, director at Dennis Wee Realty, which is marketing the project.

jq75

25-07-2005, 11:03 PM

July 25, 2005
Weekend crowds are back at showflats
But there was no rush to buy as most of them are still cautious

By Joyce Teo
PROSPECTIVE condominium buyers turned up in larger numbers at some showflats in the first weekend after home financing rules were relaxed. But there was no rush to buy as most opted to wait and see.

Most of those who did buy had been in the market for homes anyway and took the plunge over the weekend because of the lower downpayment requirements, said property developers and consultants. And many were Housing Board flat upgraders.

'The new changes got the latent demand off the ground,' said a Centrepoint Properties spokesman.

Gone are the days of the 1996 property rush when buyers queued outside showflats, many ready to sign on the dotted line.

By noon yesterday, sales of Centrepoint's four launched projects - Tangerine Grove in Paya Lebar Crescent, The Quintet in Choa Chu Kang, Ris Grandeur in Pasir Ris and Lakeholmz in Boon Lay Way - had crossed 20 units, up from 10 to 12 on a typical weekend.

Nearly half the sales were for units in the executive condominium The Quintet, at an average $360 per sq ft. But at Parc Emily in Mount Emily Road, there was no marked rise in sales despite a noticeable increase in the number of visitors, said a property agent there.

'From Wednesday, those who already wanted to buy, they committed,' said Mr Joseph Tan, director of property consultancy ** Richard Ellis.

Double-digit sales were noted at The Calrose in Yio Chu Kang, Kovan Melody in Kovan and City Square Residences in Serangoon, up from single-digit sales, he said.

These projects, launched about two to 10 months ago, attracted an average of 100 visitors each over the weekend, up from 20-40 on a good day, said Mr Tan.

On Tuesday, National Development Minister Mah Bow Tan announced changes to home financing rules, including a cut in the cash downpayment for private property to 5 per cent, from 10 per cent, and an increase in the maximum housing loan to 90 per cent from 80 per cent.

When asked about the apparent increased interest in buying yesterday, Mr Mah said it was quite natural.

'With the changes, some of them may be able to buy a property sooner because affordability has been enhanced.'

But he stressed: 'Don't forget that buying a home is a... long-term commitment, so please look around and buy something that is within your means.'

At the City Square showflat, a marketing officer who did not want to be named, said sales doubled over the weekend and most buyers were Singaporeans in their 40s who were upgrading from HDB flats. Businessman Steven Loh, 50, who bought a three-bedroom City Square unit for around $790,000 on Saturday, said it was for investment, spurred by the smaller cash downpayment.

He was at the showflat again yesterday with his two siblings, who each bought a $600,0000 two-bedroom unit.

At the freehold 115-unit Montview at Mount Sinai Drive, launched on Saturday, 15 units were sold at an average $720 psf over the weekend. This brought total sales to 30 of 60 units launched.

About 450 people visited the Montview showflat yesterday, up from about 300 on Saturday, said Ho Bee Investment's general manager Chong Hock Chang.

And 'the response was very good' at the 18-unit Kembangan project, D'Palma, which was soft launched yesterday, said Dennis Wee Properties director Chris Koh.

'We expected 50 people to turn up but 82 people came and we sold one unit. More will come back.'

jq75

25-07-2005, 11:04 PM

July 25, 2005
More CCTV cameras for housing estates
Police explore idea to boost security; cameras on buses, trains considered

By Goh Chin Lian
MORE closed-circuit TV (CCTV) cameras could be installed in housing estates, from lift landings and void decks to multistorey carparks and other public areas.

The police are exploring the idea, to 'deter and detect would-be criminals and enhance security', a spokesman told The Straits Times.

Last year, snatch thefts in these areas rose by 38 per cent to 161 cases, while rioting incidents involving young people at Housing Board blocks increased by 19.5 per cent to 49 cases.

The proposal comes in the wake of Transport Minister Yeo Cheow Tong's disclosure two days after the July 7 bomb explosions in London on three trains and a bus, that the authorities and transport operators here are looking into having CCTV on buses.

SMRT, which runs the north-south and east-west MRT lines, said cameras may also be put on trains.

All MRT stations already have them. Three - Pasir Ris, Tampines and Kembangan - have them installed outside the station too.

Tanjong Pagar Town Council's general manager, Mr Simon Koh, said the police met town council representatives last month to discuss having CCTV cameras in housing estates.

They now have them in lifts.

If the police go ahead with their proposal, he expects the cameras to be up at selected blocks by the end of the year.

The Straits Times understands the models used are likely to be those that record for 24 hours, or only when activated by a motion detector.

Mr Koh said: 'They'd be useful. We've caught some arsonists because of those in our lifts.'

The police have also encountered success in reducing crime and fighting in other places which have them.

Over the last two years, more than 30 cameras, costing more than $2 million, have been installed at Boat Quay, Newton Hawker Centre and Little India, following incidents there. In March, they went up in Geylang, following residents' complaints about illegal prostitution and fights.

The cameras have also been effective overseas, said MP Indranee Rajah, who heads the Government Parliamentary Committee (GPC) for Home Affairs and Law.

The cameras in London helped the British authorities track down the suspects within four days of the July 7 blasts.

'But the cameras should remain in public areas and the public should know they are there, so they don't invade people's privacy,' Ms Rajah said.

In recent years, more cameras have been installed in public places. They are currently being mounted in more than 200 schools.

Transport operators also see them as a useful tool. ComfortDelGro said having them on its buses would act as a deterrent against would-be criminals and terrorists, and help a bus driver monitor activities at the back of his vehicle.

The problem, industry players say, is the cost of installing them.

This ranges from about $1,000 to more than $3,000 for a single camera. An integrated security system with two or three cameras that can withstand the vibrations on a bus could cost at least $6,000 to $8,000.

ComfortDelGro spokesman Tammy Tan said that who would bear the cost had yet to be determined.

Given that an explosion on a bus would have wide repercussions, 'we hope the cost is something the authorities would pick up, like the way the rail infrastructure is treated', she added.

The cameras on Comfort's Metroline buses in London were 'paid for by the London authorities'.

MP Ong Kian Min, who chairs the GPC for Transport, believes the cost should be shared by all, including the transport operators.

'After all,' he said, 'they have to assure commuters their buses are safe.'

jq75

25-07-2005, 11:05 PM

HDB parking headaches ...

Monday • July 25, 2005

I would like to highlight my dissatisfaction with the current circular design of the Housing Development Board's (HDB) season parking ticket.

As it is perforated in a circular fashion, it is difficult to tear the disc out along its perforation without actually tearing the disc itself.

I suggest the design be changed to a square one with four rounded corners. This makes tearing the perforated ticket easier.

I REFER to the letter by Shen Pingnan: "Unjust to charge $2 to park for five minutes" (July 22).

I experienced the same thing yesterday, but at a different location. I went to the hawkers' centre located at Blk 207 to buy my $2 breakfast and I was surprised to find that I was charged $2 in carpark fees. It was quite an expensive breakfast! Could HDB look into this as it could cause the hawkers to lose business.

Letters by Michael Chua Kheng Hwee & Thomas Chen Zhi Sheng

mOomOo

26-07-2005, 09:29 AM

Anybody have the article about HDB new housing scheme from THE NEW PAPER.

it discusses certain issues that we can all share.

jq75

26-07-2005, 10:19 PM

Zero tolerance for killer litter: HDB
TODAY

Tuesday • July 26, 2005

THE Housing and Development Board (HDB) and the 14 town councils under the People's Action Party have pledged to come down hard on residents with potential killer-litter objects.

In the last six months, more than 10,000 warnings have been served to residents with such potential killer-litter objects placed in common areas.

Residents are advised not to place any objects on the parapet walls of common corridors or ledges of other common areas, balconies and windows that may endanger public safety.

The HDB, together with the town councils, will step up its efforts to tackle the killer-litter problem in the next few months.

Residents who refuse to comply or who are repeat offenders may be served summons that require them to attend court.

If convicted, they may be fined $2,000. Should they continue to ignore the court order to remove the object, they can be fined $100 a day until the object is removed.

In extreme cases, the HDB can even compulsorily acquire the offender's flat.

"We should have zero tolerance for potential killer-litter objects in HDB estates," the HDB said in a statement.

------------------------------

Car park attendant jobs to be outsourced
TODAY

Tuesday • July 26, 2005

FROM Aug 1, the Housing Development Board (HDB) and the Urban Redevelopment Authority (URA) will no longer hire car park attendants to issue parking tickets to offenders.

Both statutory boards will outsource this function to Cisco, SembCorp Environmental Management and United Premas.

With the move, 356 HDB staff and 102 URA staff will be laid off at the end of this month.

They will leave under the Special Resignation Scheme for officers made redundant due to restructuring within the public service.

The HDB and the URA say they are working with unions and the Singapore Workforce Development Agency to find alternative employment for the affected staff.

Job fairs were held in May to allow them to meet potential employers. Many had joined retraining programmes sponsored by the HDB and the URA.

In a joint statement, the agencies said the move was in line with the Government's direction for public agencies to focus on core businesses and to outsource other functions.

They also assured the public that there will be no change in parking charges or parking fines.

---------------------------------------------

Hundreds flock to view HDB sale units
TODAY

Tuesday • July 26, 2005

THE Housing and Development Board (HDB) has put up for sale 531 units of 4-room, 5-room and executive flats in Bukit Batok, Bukit Panjang and Choa Chu Kang under its July walk-in selection exercise.

On the first day of the walk-in selection exercise yesterday, more than 400 visitors thronged the showflats in Bukit Panjang and Choa Chu Kang. By 5pm, HDB had issued 878 queue numbers to applicants.

The applicants can start booking their flats at the HDB Hub Sales Office in Toa Payoh from Thursday.

Meanwhile, the walk-in selection exercise for flats in Hougang, Sengkang and Punggol launched in July last year will be temporarily suspended from Aug 1. HDB said this was to enable it to take stock of the balance of flats and prepare for the next launch in October.

Flat buyers interested in other non-mature towns, such as Sembawang, Woodlands, Jurong East and Jurong West, or established towns like Bukit Merah, Central, Geylang and Ang Mo Kio can continue to book the units at the HDB Hub.

jq75

26-07-2005, 10:23 PM

Private residential developers see surge in buyers' interest
CNA

SINGAPORE : It's been nearly a week since the government announced numerous policy changes that made it easier for people to own homes.

Developers and property agents say while there has been no mad rush to snap up homes, many buyers are turning up at the showflats.

Over 300 prospective homebuyers turned up at The Belvedere showflat over the weekend.

Keppel Land says that is a 140% increase in average attendance since the condominium was launched in May.

Sales also went up, with 7 deals sealed in two days, a figure that would have taken two weekends to achieve previously.

Still, developers say most buyers are rational in their purchase despite the recent policy changes, except for a few.

"The market seems to have found a new found enthusiasm, a new impetus to buy. Many buyers told our agents that if they don't put money down now, they may miss the opportunity to get the units they are looking at," said Augustine Tan, GM of Singapore Residential, Keppel Land

It's not just the private residential properties that are seeing more activity.

Many homebuyers are also making their way to HDB showflats in Bukit Batok, Bukit Panjang and Choa Chu Kang in this month's Walk-In Selection exercise.

Over 400 people visited the showflats and HDB has also issued some 870 queue numbers to applicants for its selection exercise on Monday.

Currently, HDB has about 10,000 unsold 4-room and bigger flats in both non-mature and mature estates available for sale.

Several flat viewers said the raise in the housing loan limit to 90% and the reduction in cash downpayment to 5% have encouraged them to look for new home.

"We do not have to fork out that much money. For youngsters, we don't have much working experience. So in terms of CPF, it's not sufficient," said one member of the public.

Over 530 units of 4-room and larger flats are up for sale in this round of Walk In Selection exercise.

Booking of flats will start from July 28.

---------------------------

Prices of older leasehold homes expected to rise 10%
CNA

SINGAPORE : Property agents expect prices of private homes with less than 60 years' lease remaining to surge over the next few months.

They said prices of such landed properties would likely go up by 10 per cent, while apartments by about 5 per cent.

The government relaxed its rules on home financing for older leasehold properties last week, allowing home buyers to use their CPF to purchase them.

There has been renewed interest in older leasehold properties since the government relaxed its rules on home financing.

So now, owners of such properties are holding firm on their selling price.

Some are even planning to renovate their homes in order to attract a higher value.

Currently, such landed properties are priced at just a third of new landed homes, while private apartments fetch around half the price of new units.

Property agents said potential buyers would now find these properties attractive.

Mohamed Ismail, CEO of PropNex, said: "This is like a sudden new lease of life given to properties that are less than 60 years. In the past, most of them will never want to put their money there because from the investment angle, in the long term, such properties were depreciating in value."

He said there was more interests lately especially among older people because of the new policy and fewer restrictions in terms of the usage of CPF.

At the moment, prices of such properties have yet to rise sharply.

This is because many home buyers are still unclear about the new policy - and how it will affect them.

Banks have also not given clear guidelines as to how buyers can finance their loans for such properties.

Still property agents said they were confident the situation would improve - with prices rising by as much as 10 per cent over the next few months.

But with ample supply of brand new private residential developments and at competitive prices, some property agents said home buyers would still prefer to pick their choice property from the primary market.

Moreover, most home buyers would prefer to own a brand new property with better design and at good locations.

Still, market watchers expect the new policy will have a dampening effect on leasehold en-bloc sales - which have been generating much interest this year.

This is because as property prices surge, there will be less incentive for both the owners and developers to pursue collective sales. - CNA/de

----------------------------------

Banks see more inquiries on home loans but buyers still prudent
CNA

SINGAPORE : Potential home buyers are flooding banks with inquiries to find out more about the new 90% home loan financing schemes, in spite of recent increase in interest rates.

But banks and property agents say most buyers are still prudent in their decision making.

Home hunters packed showflats across Singapore since the recent changes to home financing and CPF policies.

Banks too are seeing increased activity. Hong Leong Finance, who has not raise its home loan interest rates, have had a 50% increase in loan applications.

Of these, more than half opted for the previous 80 percent home loan financing package and 40% taking up the new 90 percent loan.

While banks must ensure credit risk associated with higher-quantum loans are properly managed, they say home buyers are not carried away.

Said Ian MacDonald, president of Hong Leong Finance: "Last weekend was a good start, there were lots of activity. But for every application, we are getting 10 phone calls. People are cautious, they want to see what the numbers are. And it's the right thing to do, not rushing in with decisions like these."

OCBC who has upped its rates by 1 percentage point across the board for all private and HDB properties also saw more inquires.

It says response to its loan packages of above 80 percent has been encouraging.

For DBS, the influx of calls has not resulted in significant increase in actual applications.

The bank, which raised its floating rates by between 1 and 1.5 percentage points, say it's too early to tell as buyers need time to work out their options.

Meantime, property agents say with the relaxed financing schemes, some 2 in 10 buyers tend to over-purchase.

But a majority of them still prefer lower-quantum loans and are keeping tabs on the market.

"Buyers are now very cautious as interest rates are not stable, they are taking a wait-and-see approach. Maybe in a couple of months' time, when it's more stable, the consumer will have more confidence in purchasing a unit," said Eric Cheng, division director of PropNex.

Property agents do not expect a runaway increase in home loan interest rates. They hope competition among the banks will continue to keep loan packages and interest rates attractive.

- CNA /ls

jq75

26-07-2005, 10:29 PM

Anybody have the article about HDB new housing scheme from THE NEW PAPER.

it discusses certain issues that we can all share. :s11: which day papers?

jq75

26-07-2005, 10:30 PM

July 26, 2005
First-timers and upgraders snap up new homes

By Joyce Teo
UPGRADERS and first-timers have been biting the hardest when it comes to buying new homes, since property financing rules were changed, said major developers and consultants.

Using condominium sales figures they compiled in the first weekend after Tuesday's announcement, Far East Organization and Centrepoint Properties said most buyers are young couples and families.

More units were also sold.

The homes that moved the fastest were those in the lower price range, particularly executive condominiums (EC), a hybrid between public and private homes.

Of the 51 units Far East sold in four projects over the weekend, 15 were at its La Casa EC in Woodlands. These are selling for around $380 psf.

The previous weekend, it sold 12, two of which were from La Casa.

Centrepoint Properties too saw more buyers for its EC units at The Quintet in Choa Chu Kang - 13 were sold at around $360 psf, up from five the previous weekend.

The developer also sold 27 units in six other projects, among them Tangerine Grove in Paya Lebar, Ris Grandeur in Pasir Ris and Yishun Emerald.

Three other projects that proved popular were Far East's Lakeshore condo in Jurong, Gardenvista in Dunearn and Hillview Regency. All are 99-year leasehold condos, which are generally cheaper than freehold ones.

Far East's chief operating officer of property sales Chia Boon Kuah said the cut in the cash downpayment from 10 to five per cent has been a 'big boost'.

Indeed, Mr Paw See Shiuan, 40, who lives in a four-room HDB flat, said he bought a $400,000 two-bedroom Lakeshore unit on Sunday because of the lower downpayment.

'I didn't intend to buy, but after hearing the announcement, I looked around and I bought,' he said.

The Hong Leong Group said sales at its five projects more than doubled to 60 units over the weekend.

At one, Parc Emily in Mount Emily Road, 10 units were sold. Average weekend sales are usually two to three, said its spokesman.

Sales were a little slower for the pricier properties.

At the mid to upper-end freehold condo The Belvedere which is selling at $750 to $850 psf, visitor numbers soared to 220 on Sunday, from the usual 100, and six to seven units were sold, said a Keppel Land spokesman.

'The market is responding positively to the recent changes.'

jq75

29-07-2005, 09:27 AM

Car park fee rethink

Feedback prompts HDB to review night parking scheme

Friday • July 29, 2005

We refer to the letters, "Unjust to charge $2 to park for 5 minutes" by Shen Pingnan (July 22) and "HDB parking headaches" by Michael Chua Kheng Hwee and Thomas Chen Zhi Sheng (July 25).

Mr Shen could be referring to the surface car park serving Blocks 101 and 102 Yishun Ave 5 and the hawker centre, while in Mr Chen's case, he is probably referring to the car park serving Block 204/209 New Upper Changi Road and the hawker centre.

Currently, a $2 night parking charge is imposed for parking between 10.30pm and 7am the following day, at both car parks.

However, if motorists park between 10.30pm and 1am, they will be charged on a per-minute basis up to a maximum of $2.

Although both car parks are installed with the Electronic Road Pricing (ERP) Parking System, the parking charges at these car parks are similar to those for car parks that use coupon parking.

The HDB has received similar feedback and is reviewing the night parking scheme.

Mr Chua commented on the circular design of the season parking ticket and suggested that a different shape might make it easier to remove it from its backing.

We agree with Mr Chua and are exploring various possibilities.

We thank the writers for their feedback.

Eng Soh Seng

DY Director (Car Parks)

for Director (Housing Administration)

Housing and Development Board

jq75

29-07-2005, 09:32 AM

Anybody have the article about HDB new housing scheme from THE NEW PAPER.

it discusses certain issues that we can all share.

Go slow on easy home loan
There are high costs & risks, warns Dr Money
GETTING a big home loan just got easier. But is it too easy? By Larry Haverkamp
mail@AskDrMoney.com

26 July 2005
GETTING a big home loan just got easier. But is it too easy?

Under the old rules, you could take only an 80 per cent bank loan while paying 10 per cent in cash and 10 per cent from your CPF ordinary account.

Now, you can borrow up to 90 per cent of a property's value. You need to put up only 5 per cent in cash and the other 5 per cent can come from your CPF account.

You can now buy a bigger home.

Previously, you would have had to put up $20,000 in cash to purchase a $200,000 home. Now, the same $20,000 is enough cash down payment to buy a $400,000 home.

Should you go for the max and buy your dream palace?

My advice is: Go slow.

Even if you find a bank that will approve a 90 per cent home loan, I suggest you reconsider for two reasons: High costs and high risks.

HIGH COSTS

Lowering the cash downpayment from 10 to 5 per cent means you can suddenly buy twice as much house, assuming your salary qualifies you for the bank's loan.

If you take it up, it will stretch your finances and bring you closer to the day when you must use cash instead of CPF to pay your bank loan.

Three factors will boost your costs.

First, you will likely be tempted to buy a bigger house with your available cash.

Referring to HDB upgraders, PropNex division director Eric Cheng explained: 'To them, the price of the property is not as important as the cash portion.'

Second, a 90 per cent loan means your principal plus interest are higher because you have borrowed more.

Third, the biggest lenders - DBS, UOB and OCBC - have raised the rates for their 90 per cent loans. (Hong Leong Finance and ABN Amro have not.)

The worst case is when the buyer uses the lower 5 per cent cash requirement and a 90 per cent loan to step up to a bigger flat.

As the table shows, total loan payments for 30 years jump from a modest $250,000 for a $200,000 property to a whopping $650,000 for a $400,000 property.

It means the buyer has locked himself into additional loan payments of $400,000 over the life of the loan.

HIGH RISKS

The biggest risk of taking a big bank loan is you will run out of CPF money and will have to use cash.

If you don't have enough cash, you may default on your loan and lose your home.

Here are six rules which increase the risk of not having enough CPF to pay your loan.

1. The valuation limit (VL). This rule requires that total CPF payments cannot exceed the lower of the purchase price or the value of your property.

2. If CPF payments exceed VL, you can still use your CPF ordinary account if the available housing withdrawal limit (AHWL) has not been reached.

It requires you to have met your minimum sum requirement which is $88,000 now and increases to about $130,000 (with the inflation adjustment) by 2013.

3. You must also meet the little-understood CPF withdrawal limit. It is 138 per cent of the VL for homes purchased this year.

It declines to 120 per cent for homes bought after 1 Jan, 2008.

Once you hit this limit, you may no longer use your CPF ordinary account but must make future home loan payments with cash.

In general, (i) the longer the loan term and (ii) the higher the interest rate, the sooner you will hit the limit.

I have found that banks will not estimate the year in which you will hit this limit. Most likely, it is because it requires them to predict future interest rates and future home prices.

Here is my calculation: For a 90 per cent, 30-year loan charging 5 per cent interest, you will hit the 120 per cent CPF withdrawal limit at year 20.

It means that you will have to service the last 10 years of your loan from cash. For many of us, that could be difficult.

4. There is even more to it. If you play it safe with an 80 per cent loan, you will still hit the CPF withdrawal limit - but in year 25, not 20.

For the example in the table of the $200,000 property, the 5 additional years of cash mortgage payments come to $50,000.

Compare this to your cash savings from the 5 per cent lower cash down payment. It is $10,000 ($200,000 x .05).

The net effect: A 90 per cent loan requires $40,000 more cash, not $10,000 less as it initially appears.

Worse still, the cash requirements beginning in year 20 come with big risks. You must switch from CPF to cash payments or default on your home loan.

5. When you hit 55, you will have to set aside the CPF Minimum Sum in the Retirement Account.

It has been estimated that about one third of 55-year-old CPF members will have nothing left in their CPF ordinary account after making this transfer.

For them, it means that from age 55, they must use cash to make their home loan payments.

6. CPF contributions are decreasing because of the reduction in the salary ceiling for CPF payments. It has declined from $6,000 to $5,000 now, and drops to $4,500 on 1 Jan next year.

After that, monthly earnings over $4,500 will not attract CPF contributions. This gives members more cash to take home, but reduces CPF balances.

Doctor Money's Quick Quote:

The rich get richer and the poor get poorer. - Anonymous

jq75

31-07-2005, 05:10 PM

It is restrictive to peg flat size to buyer's income

Weekend • July 30, 2005

WE REFER to Mr Mohd Rosle Ahmad's letter "Peg allowable flat size to income of home buyers" (July 26).

Affordability is already a prime consideration in the pricing of HDB flats.

While a range of flat types with different pricing is offered for sale by the Housing & Development Board, all flat buyers are always encouraged to be financially prudent and to buy a flat within their means.

To this end, HDB has, since April 1997, implemented credit assessment for mortgage financing of HDB flats where the maximum amount of loan granted will depend on the household income and age of the buyers.

Prospective HDB flat buyers who want to find out their loan eligibility based on their household income can log on to HDB InfoWEB at www.hdb.gov.sg (click on e-Sales, Home Financing, Sales Financial Plan).

We appreciate the good intention behind Mr Ahmad's suggestion, which is to ensure prudent use of Central Provident Funds.

However, using the income floor to determine a buyer's eligibility for certain flat types would be unduly restrictive.

It would not take into account other financial sources, for example, accumulated savings or the potential growth of a buyer's household income.

As home ownership is a long term commitment, there should be some flexibility in housing choice.

We would also like to clarify that the savings in the CPF Special Account (SA) is primarily meant for members' retirement.

However, because of the three-percentage point reduction in employers' CPF contributions in October 2003, the Government has allowed home-owners to use their SA savings, up to the extent that they are affected by the CPF reduction, to meet the shortfall in the monthly housing instalment.

This provision is subject to the condition that the property was bought before Oct 1, 2003.

In addition, a comprehensive web-based member education programme is available at my cpf at www.cpf.gov.sg

This website aims to help CPF members make informed decisions at major life stages.

This includes encouraging the prudent use of CPF for housing to ensure a secure retirement.

my cpf has a dedicated Housing Site with online calculators that help members work out their affordability as well as an Investor Education Site that educates members about basic investment principles.

We thank Mr Ahmad for his feedback.

— Letter from Lim Boon Chye, Director (Corporate Affairs), Central Provident Fund Board; and Lau Chay Yean, Acting Director (Corporate Development), Housing & Development Board

jq75

01-08-2005, 08:45 AM

Aug 1, 2005
Home buying may have levelled off
Agents, developers say number of units sold this weekend same as a week ago

By Joyce Teo
TWO weeks after the Government's July 19 property reforms generated a wave of enthusiasm for home buying, the initial surge of excitement appears to have reached a plateau.

Though there are now more people visiting developments than before, agents and developers say they sold about the same number of new homes this weekend as a week ago, just after the minimum cash downpayment for private homes was cut to 5 per cent and the loan limit raised to 90 per cent of a property's value, among other changes.

Sales at the 99-year leasehold Kovan Melody, for one, have been largely 'steady' over the last couple of days, said developer Wing Tai.

It declined to reveal how many units were taken up over the last couple of days, only saying it sold nearly 60 over the last two weekends.

The Hong Leong Group told the same story.

Its spokesman said sales at its five projects were 'about the same' as the weekend before, when it sold 60 units.

But Centrepoint Properties reported a drop. Last weekend, it sold a total of 25 units at its Tangerine Grove in Paya Lebar Crescent, The Quintet in Choa Chu Kang, and Ris Grandeur and Lakeholmz in Boon Lay Way.

The weekend before, 34 units in the four projects were bought.

Before the reforms, it sold 10 to 12 on a typical weekend.

Said its assistant general manager (development), Mr Kam Tin Seah: 'Buyers are shopping around to make sure they get the best deal.

'As stocks go down, buyers will also generally become more cautious because choice units may have been taken up.'

He added: 'Definitely, sales will taper off a bit. It's the same with new launches.

'But this week's results are still very encouraging.'

Indeed, about 450 people visited Kheng Leong Co's 99-year leasehold Domain 21 near River Valley Road, launched on Friday.

Forty-eight of the 141 homes were sold. They included all the 18 one-bedroom units, which were going at between $370,000 and $410,000.

Consultants said that the changes seem to have drawn not only those who already wanted to buy, but also attracted more interest from people who previously had no serious intention of buying.

Engineer Chris Goh, 33, who signed up for a two-bedroom Domain 21 unit yesterday, said he would not have bought a home so soon if it had not been for the new policy.

Then there was flight attendant Jonathan Chan, 33.

He was checking out Ris Grandeur in Pasir Ris. It was the fifth project he has visited since the property reforms.

'The 5 per cent cash downpayment is really a big cut,' he said.

Said ** Richard Ellis' director, Mr Joseph Tan: 'The weekend before last, we saw many buyers who had visited the showflats two to three times before. This week, there were more new faces. They need to be cultivated.'

jq75

01-08-2005, 10:28 PM

Demand for resale landed properties to rise
CNA

SINGAPORE : Demand for resale landed homes in the $1 million to $1.2 million range is on the rise, according to property consultants, citing the new policy changes announced recently.

But they say demand for resale condominiums is not expected to see a huge jump and that is because of the slew of new condominium launches.

The demand for resale private properties, especially landed properties, is on the rise.

Property consultants say one of the key reasons for the rise in demand is the recent policy change by the government.

There is also a lack of new landed properties being released by developers.

Said Mohamed Ismail, CEO of PropNex Realty: "Prices that are ranging below one million dollar mark had seen greater interest in terms of enquiries. And that has given some positive results, as in closing in on some residential resale. We have also seen greater interest for landed properties in particular. Especially for those in the region of one million dollar plus range because they are within the affordable range for many HDB upgraders."

But for resale condominiums, consultants say they do not expect to see significant rise in demand.

That is because of the slew of new condominium launches or the release of new phases by developers at some of their existing projects.

On the whole however, consultants are forecasting a rise in the number of resale transactions for the full year.

"We are expecting the secondary market to chalk up another 500 to 800 units annually, that means we could very possibly cross 6,000 units this year compared to last year's 5,488 units in the secondary market," said Dennis Yeo, Managing Director of Colliers International.

Despite the anticipated rise in demand, consultants say property owners should not raise their prices and expectations too drastically.

Said Yeo: "We think that owners may get a bit aggressive in saying that because of these policies changes, they want another 10%. And maybe consultants have also told them that they could potentially get another 10%. But realistically the 10% would only happen say in a year or 18 months' time."

"I think it will be too aggressive for property owners to expect a 10% jump in prices immediately. I would rather the property owners, if they do have intent to sell, to be realistic because the last thing that anyone should do is to capsize this boat again as it happened in 2001."

Separately, Colliers International and PropNex have also entered into a joint marketing tie-up.

They will be working together on some of Collier's existing projects which include The Trumps, Duet, 11 Amber and Tessarina.

- CNA

jq75

02-08-2005, 10:22 PM

Aug 2, 2005
More collective sales of private estates as market picks up

Pace is set to intensify with changes to home loan rules and keen interest in condos

By Tan Hui Yee
COLLECTIVE sales of property and bids to sell are gaining pace, with two private estates in the River Valley and Braddell areas being sold in recent weeks and another estate off Stevens Road expected to change hands.

And the pace is expected to intensify, following the changes to home loan rules last month.

However, even before the change on July 19, an unidentified Singaporean buyer paid $14.69 million for Riveria View, a block of 13 apartments on 14,057 sq ft of freehold land in River Valley.

The sale on July 8 gave each owner $1.13 million on average, about 60 per cent more than what they would have got if they had sold their homes individually.

About one week later, Sommerville Court in Braddell fetched $15.3 million in a collective sale. The three blocks of 18 apartments sit on 40,132 sq ft of freehold land.

Property consultancy ** Richard Ellis, which brokered both deals, expects more properties to be offered en bloc in the coming months as home owners see brighter prospects from the new rules announced last month.

Buyers of private property now need to fork out less in cash: a 5 per cent down payment - instead of 10 per cent. The other 5 per cent comes from their Central Provident Fund (CPF) savings.

Singles can also use their CPF savings to jointly buy private homes.

These and other changes are expected to boost sentiments on the property market but most home owners in collective deals have not raised their asking prices, said property consultants.

Many are adopting a wait-and-see approach as it is too early to say whether the changes would translate into higher prices for their estates, said the executive director of property consultancy Credo Real Estate, Mr Karamjit Singh.

What is certain, however, is that these estates stand a higher chance of being sold now that interest in new condominium units is picking up and developers look to replenish their stocks of land for future projects.

Just last week, the tender for Fernhill Grove, which comprises seven freehold townhouses and 29 maisonettes on 86,348 sq ft of land off Stevens Road, attracted eight offers from developers.

According to the Dennis Wee Group, which is marketing the property, four of the offers had exceeded the owners' reserve price.

Data from property consultancy Jones Lang LaSalle shows that two estates were put up for sale last month. From April to June, the figure was seven.

One of those launched last month was Eastern Mansion, a freehold estate with 168 units on 108,329 sq ft of land off Meyer Road.

Its owners are asking for $156 million to $160 million for their property.

This is the largest collective sale offering so far this year, in terms of the land area and the number of apartments.

Data from Jones Lang LaSalle shows that three properties worth $204.9 million were sold last month. From April to June, four properties were sold for $153.02 million.

jq75

02-08-2005, 10:29 PM

jq75

03-08-2005, 04:51 PM

HDB, Town Councils educate residents on killer litter

SINGAPORE : The HDB and Town Councils are working hand-in-hand to warn residents about potential killer litter objects.

Officers from HDB and the Jalan Besar Town Council greeted residents at Block 119, McNair Road with pamphlets to explain the dangers of hanging objects over the parapet walls.

This is part of their annual educational campaign against killer litter.

During the visit, the officers explained to residents why it was critical not to place objects like flower pots at places where they could fall off easily.

The officers will issue warnings to residents who place items dangerously within or outside their flats.

Those who disregard the warning may be fined up to S$2,000.

Town Councils islandwide have issued 10,000 warning letters in the last six months.

Said resident Sally Lee, "I think about a month ago, someone's flowerpot actually dropped from a high floor and it nearly hit the children at the playground."

Another resident, Girija Vaidyanathan, said, "If somebody doesn't know that they should not do these things, if they're educated this way, it means it's better for everyone -- for them also and others." – CNA /

jq75

05-08-2005, 08:43 PM

Property prices expected to rise marginally while yields stay steady: analysts

SINGAPORE : Property consultants are not expecting prices of commercial and industrial properties to rise drastically anytime soon.

This is despite growing efforts by REIT managers here to boost their portfolio.

They suggest that the property trusts turn to the region to expand their holdings.

Nicholas Mak, Director, Consultancy and Research, Knight Frank, said: "Building owners can ask for the moon but whether REITs managers will pay that kind of price is another question. Yes, I agree there will be more competition and it will become increasingly challenging for the REITs managers to secure buildings at very high yield. At the same time they must also be able to give sufficient returns to the unit holders."

But while prices may not jump, they are expected to edge upwards because the number of good class buildings available that could be injected into REITs will diminish over time.

And with office rentals forecast to rise, building owners could be expected to ask for higher prices.

Donald Han, MD, Cushman and Wakefield, said: "I think you will see an increase in price, it may not necessary be an over-inflated kind of scenario. It has to be in line with market valuations itself. Already market valuation is pegging onto a higher increase of price right now compared to the last 12 months. So yes there will be a gradual appreciation but it should be in line with market valuation, in line with market yields and rental trends."

Despite the potential rise in prices, market watchers are not forecasting a rise in yields just yet because interest rates are still relatively low.

Mr Han said: "If you look into the generic market on a worldwide trend itself there has been a compression of yields even in places like in US for instance. Traditional prime yields were pegged at about 7 to 8 percent, now it has gone down to about 6 percent. So this phenomenon on compression of yield is not just unique to Singapore but also on a world wide basis."

"The main reason for this has been the world wide market condition is experiencing a very low historical low interest rate. So as a result low yields are excepted as long there is an arbitrage of about 2 percent to 3 percent from the cost of borrowing."

Property consultants suggest that for the long term, REITs in Singapore should consider changing their mandates and turning to the region for potential acquisitions. - CNA

jq75

05-08-2005, 08:46 PM

Market to decide whether more public housing will be built by private developers: Mah Bow Tan

SINGAPORE : Singaporeans may see more public housing flats built by private developers if there is a demand for it.

National Development Minister Mah Bow Tan said the market would have to determine if these new-style developments pick up in Singapore.

He was speaking in an exclusive interview with MediaCorp News.

It was announced in March that private developers can now design, build and even set the prices of HDB flats.

Mr Mah said this would meet the housing demands of Singaporeans which have changed over the past 40 years.

But, one thing has to remain the same - the experience of living in an HDB flat.

Mr Mah said: "I believe that it is good for Singaporeans to have that HDB experience - to live in a HDB estate, to grow up with communal living, living in an estate or environment where people are different, races different, customs different."

The first project to be built by a private developer will be at Tampines Avenue 6 and the tender to build it will be called by the end of the year.

How well it does will determine if more will be built.

Looking ahead, Mr Mah said his vision for the nation's development was to make Singapore a more exciting place.

He said: "Certain things you want safety, you want certainty, assurance. But you cannot be too boring, otherwise nobody would like to come and visit."

So Singapore needs to inject an X-factor in its next phase of development, to get people talking. - CNA

jq75

10-08-2005, 09:26 AM

The Electric New Paper : :s8:
HDB vs bank loan
There's no contest, says Dr Money

THERE is an army of bankers trying to finance your home. They sell every type of home loan: Private property, HDB and refinancing loans.

By Larry Haverkamp
mail@AskDrMoney.com

09 August 2005

THERE is an army of bankers trying to finance your home. They sell every type of home loan: Private property, HDB and refinancing loans.

But they don't offer concessionary rate loans. Only the Housing Board (HDB) does that.

It is not an aggressive lender and doesn't even run newspaper ads to convince you to favour its loans over the banks. Still, two-thirds of HDB buyers finance their flats with HDB.

Why is it so popular?

I think it is simply because HDB loans are the best deal in town. Because of HDB's low profile, however, you might never know it.

So I will tell you. Here are eight reasons why you will find the best housing values in an HDB flat and an HDB loan:

1 Home loans used to require a 20 per cent down payment and you borrowed the other 80 per cent.

As you know, the rules changed on 19 Jul. Down payments have been cut by half.

Now you can buy a home with just 10 per cent down and borrow the other 90 per cent. Most banks have raised interest rates for their new 90 per cent loans. HDB has not.

2 Banks are shouting from the roof tops that they now require only 5 per cent cash for private property loans vs 10 per cent previously. Bank loans to buy HDB flats require 4 per cent cash this year and 5 per cent from 1 Jan next year.

HDB does better. It requires NO cash down payment and it never has. The entire 10 per cent down payment can come from your CPF account.

3 Towards the end of your loan, you may be required to make higher cash payments. This is because of CPF rules such as the valuation limit (VL) and the CPF withdrawal limit (CPF-WL).

These restrict the amount of CPF money you can use to pay your home loan. If you are short on cash, this could be a problem, especially in future years when the limits kick in.

These CPF limits apply to private property and HDB resale flats. But new HDB flats are exempt. For these, you can use all CPF money and no cash for the entire term of your loan.

4 Suddenly, HDB's 2.6 per cent concessionary interest rate looks like a great deal.

Last year, most banks' rates were lower than HDB's.

Now, it is the other way around. HDB's concessionary rate home loan rate is still just 2.6 per cent. For the first three years, it comes to 7.8 per cent.

No bank offers a lower 3-year rate.

5 An often overlooked plus is an HDB loan's flexibility. It is easy to take an HDB loan then switch to a bank loan.

But you cannot go the other way. You cannot take a bank loan and later refinance it with an HDB concessionary rate loan.

6 HDB has a heart. It is thought to be more helpful than a bank should you hit hard times and default on your home loan.

HDB is unlikely to seize your flat and make you sleep in the void deck.

7 HDB loans have no pre-payment penalty. Most banks charge 1.5 per cent if you repay your loan in the first 2 or 3 years.

They also charge a legal subsidy clawback of 0.4 per cent.

HDB loans do not carry these penalties.

8 Eligible buyers can get a $30K or $40K housing grant. It applies to both HDB and executive condos, and does not depend on the source of financing.

Of course, there is no grant for private property purchases.

DOCTOR MONEY'S QUICK QUOTE:

I have enough money to last me the rest of my life, unless I buy something.
- Jackie Mason, comedian

jq75

15-08-2005, 08:58 PM

CPF interest rate for Oct-Dec 2005 stays at 2.5%
CNA

SINGAPORE : The CPF Board will continue to pay an interest rate of 2.5 percent per annum for CPF savings in the Ordinary Account from October to December 2005.

The CPF interest rate is reviewed quarterly.

Savings in the Medisave Account, Special Account and Retirement Account will earn interest at 4 percent per annum.

This is 1.5 percentage points higher than that for the Ordinary Account.

The concessionary interest rate for HDB mortgage loan, which is pegged at 0.1 percentage point above the CPF interest rate for the Ordinary Account, will remain unchanged at 2.6 percent per annum.

The next revision of the CPF interest rate will be made on 1 January 2006. - CNA

-----------------------------------------------------------
Aug 15, 2005
Govt paves way for private sector to build, sell HDB flats

THE Government has set the legislative framework for the private sector to build and sell HDB flats.

Under the new Design, Build and Sell Scheme (DBSS), private developers will bid for the land through an open tender and the successful applicant will have the flexibility to decide on the design of the flats, the flat mix and their pricing.

Upon completion, the development will be vested in HDB which will remain the lessor for the flats and administer their leases, while the Town Councils will manage and maintain the common areas.

Announcing this in Parliament, National Development Minister Mah Bow Tan said the scheme will start with some pilot projects to test the various features of the scheme and gather feedback from the industry and from buyers.

He said amendments to the Housing and Development Bill which were later passed by the House will give HDB the necessary powers to regulate the sale, purchase and use of these flats and administer their leases, to ensure that the public housing nature of DBSS flats is preserved.

There will also be provisions to cater to the scenarios where a buyer dies or ceases to be eligible to purchase the DBSS flat before taking possession of it.

These provisions are similar to those stipulated under the Executive Condominium Housing Scheme Act.

As with new and resale HDB flats, buyers of DBSS flats can obtain mortgage financing from the HDB.

jq75

17-08-2005, 09:31 AM

Aug 17, 2005
Private developers cautious about new HDB flat scheme

By Joyce Teo and Tan Hui Yee
PRIVATE developers have responded cautiously to a new scheme okayed by the Government yesterday, allowing them to design, build and sell HDB flats.

The Design, Build and Sell Scheme (DBSS) will subject developers to Housing Board rules and conditions. And, like HDB-developed flats, they will have to be affordable.

By allowing the private sector to play a bigger role in the public housing market, the Government is hoping competition will result in fresh ideas, giving buyers a wider choice of flats and better value for money.

A pilot project of about 500 flats in Tampines will be put up for tender later this year.

But presented with an untested product and an entirely new target market, most developers have adopted a watch-and-wait approach, fearing that the risks involved may not be worth the returns.

NTUC Choice Homes, singled out in Parliament on Monday by Dr Amy Khor, MP for Hong Kah GRC, as one of the 'social conscience' developers likely to have the motivation and confidence to go for the pilot scheme, was not entirely enthusiastic. Its chief executive officer Adeline Sum said the risks are 'not negligible'.

'HDB as a developer makes no profit. It will be difficult for any non-subsidised company or cooperative to match,' she said.

Another concern for developers is the uncertainty over future demand. The DBSS flats will be launched in a market with moderate take-up rates of new and resale HDB flats. Conditions are a far cry from the property boom of the 1990s.

If unsold units cannot be rented out, holding costs will be substantial, Ms Sum said.

Sim Lian Land, the property development arm of Sim Lian Group, expressed an interest, but executive director Diana Kuik said its decision will depend on the final conditions attached to the pilot plot.

Chip Eng Seng Corporation appeared more optimistic.

Executive director Raymond Chia said: 'Considering we have done a few HDB design and build projects, executive and private condominiums, we definitely feel that we're in a position to compete.'

Interest could hinge on a wish-list of conditions, including an idea of the minimum land price for the pilot project and HDB's building programme over the next one to two years, plus a conditional waiver of the ethnic integration policy. p> Knowledge of HDB's plans would provide DBSS developers with an idea of how keen competition is and enable them to work out their sums, said one developer, who did not want to be named. Another said interest in DBSS projects would inevitably be lower, as they won't be as lucrative as private projects.

jq75

19-08-2005, 03:42 PM

Aug 19, 2005
Ceiling leaks? HDB flat owners must still split bill

Even owners of private homes can't kick bill upstairs if they want to avoid legal wrangle

By Tan Hui Yee
RESIDENTS in the more than 800,000 Housing Board flats here will have to continue to share the cost of fixing ceiling leaks, despite a recent landmark ruling by the Strata Titles Board that makes the owner of the upper-floor unit responsible for leaks caused by normal wear and tear.

Responding to The Straits Times' queries, the HDB explained that as both the upper- and lower-floor flats share floor/ceiling slabs, the owners of both should split the repair bill.

Currently, residents who apply for the HDB's goodwill scheme share only half the cost if the leak is caused by a natural deterioration of the slab.

The board picks up the bill for other half.

It also helps flat owners by investigating the likely cause of ceiling leaks and suggesting remedies.

Where these are not caused by natural deterioration of the waterproofing membrane, but due to improper renovation work on the upstairs unit, that flat's owner will be responsible for the repairs.

'The existing arrangement is working well,' said the HDB, pointing out that over the past 10 years, it has taken only five flat owners to court for not fixing their leaking floors.

This is despite the comparatively large number of dripping ceilings in HDB flats. Between January and June alone, there were 10,400 reported cases.

Owners of private homes will also not be able to automatically push their leaking ceiling bill upstairs.

This is because the Strata Titles Board's Aug 6 ruling applies only to disputes brought before the board, which oversees disputes over private estate matters.

So those who want to fix their ceilings without the legal wrangle may have to chip in to get it done.

The board has seven cases pending this year.

On Aug 6, it threw out a claim by a couple who had spent more than $40,000 fixing their leaking toilet floors and wanted their neighbour below to pay half the cost.

It also ruled that the owner of an upper-floor unit will have to pay to rectify the damage caused by the leaks due to normal wear and tear - both to his floor and to his neighbour's ceiling.

The president of the Strata Titles Board, Mr Tan Lian Ker, told The Straits Times it will follow this general principle for future cases brought before the board.

However, the Association of Management Corporations in Singapore believes this is too onerous for owners of upper-floor units.

The owner of the downstairs flat should pay for repairs to his own ceiling if the leak is caused by a natural deterioration of the slab.

Its president, Mr Francis Zhan, argued that owners of lower-floor units could abuse the new principle by delaying the reporting of leaks to inflate the repair bill.

One estate manager, Mr Derek Soh of Jones Lang LaSalle, said putting the onus on owners of upper-floor units to pay the full repair bill could result in some cutting corners to save money. Which means the leak could recur.

Another estate manager, Mr Jordan Neo of Knight Frank Estate Management, pointed out: 'If the owner above pays for everything, he may drag his feet on the matter. That's why people sometimes make compromises despite knowing their legal rights.'

For example, they may help pay for repairs to hasten the process, even though it may be caused by renovation work upstairs.

However, building surveyors interviewed said that in most cases, the onus of paying should fall on owners of upper-floor units.

They blamed the majority of ceiling leaks on shoddy renovation work resulting in damage to the waterproof membranes under floor tiles.

These could last 15 years or longer if they were applied properly and left untouched, they said.

tanhy@sph.com.sg

jq75

19-08-2005, 03:45 PM

Aug 19, 2005
HDB offers help to Hock Kee residents

Eligible home owners can buy flats without usual 30-month wait

By Jane Ng
THE Housing Board has offered to help residents forced to move out of the Paya Lebar building made unsafe by excavations.

The board agreed to allow eligible home owners in Hock Kee House to buy HDB flats without having to wait the mandatory 30 months. Former owners of private property are usually allowed to purchase new HDB flats only 30 months after selling their last property.

The five-storey Hock Kee House was declared unstable because of excavation work for the Circle MRT Line. The Land Transport Authority (LTA) is to acquire the building and demolish it. The owners and tenants were last week given a month to move out.

Owners of six units have sought the HDB's help so far, the LTA said in a statement last night.

One owner, teacher John Lim, 43, said that while he was happy about the HDB offer, he would still have to ensure he can find a flat near his daughters' school, Geylang Methodist Primary. 'That is most important to my family now.'

But he is worried that he might not receive an adequate payout for his flat because of the weak property market. 'The current market value will not be as high as it had been during the boom period and I just hope the Government's compensation will help me break even on my property.'

Owners have been promised they will be paid the current market values of their properties.

The LTA said on Wednesday it had contacted the owners of all 35 units and met 33. So far, owners of 12 units have accepted $10,000 each. This is the advance payment from the special financial assistance package or ex-gratia payment of up to $100,000 from LTA.

In reply to comments in the media that owners will be compensated with public funds, the LTA said it is 'mindful that the financial assistance... must be spent judiciously'. Hence, a spokesman said, requests from owners and tenants for additional assistance will be provided only if there is strong justification.

Responding to media queries on why the Government did not acquire Hock Kee House in 2003, the LTA said acquisition was considered only after assessment showed the building would not be able to withstand further ground movement caused by deep excavation works.

The LTA said it took steps in 2003 to reduce the settlement of the building. At that time, it was assessed that Hock Kee House could be preserved.

In April this year, additional LTA checks showed the building would not be able to withstand the ground movement.

jq75

23-08-2005, 06:17 PM

New HDB housing grant positive for property market: analysts CNA

SINGAPORE : The new HDB housing grant to be offered to lower-income families for purchases of new and resale flats is expected to have a positive impact on the property market.

Analysts said it was too early to ascertain the impact until more details are revealed.

The new HDB housing grant was announced by Prime Minister Lee Hsien Loong in his National Day Rally speech on Sunday.

This is an effort to help lower-income families build up their assets.

Up to now, there are various housing grants to help the lower income group.

But analysts said allowing the new grant to be used for the purchase of new HBD flats was an exciting development.

Mohamed Ismail, CEO of PropNex Realty, said: "If you want to talk about the resale market, the grant has existed for many years.

"The fact that there was some indication the grant could be extended to the new flats, it will really help a lot of people because there is a price difference between the resale flat and the new flat, the price difference being about 30 percent."

But analysts say the grant is but the first step.

They expect to see further guidelines which will deal with the minimum qualifying income for the various HDB sizes to ensure affordability in future years.

Mohamed Ismail added: "First and foremost, there must be a minimum income for different types of houses. For example, someone who wants to buy a three-room and someone who wants to buy a five- room or executive, I don't think you can qualify on the same income. There will be a big problem for the monthly instalment."

Details of the grant will be worked out by Minister of Manpower Ng Eng Hen.

Analysts said it was too early to gauge the impact of the grants on the overall property market.

But whether there are more new flat sales to reduce the inventory overhang or resale to upgrade to private property, they expect the net impact to be positive.

Under current HDB rules, gross monthly household income must not exceed $8,000 for the purchase of a four-room or bigger flat. - CNA

-------------------------------------------------

Aug 23, 2005

Home grant will help low earners ST
It will enable poor families who live in subsidised rental flats to buy their own property

By Joyce Teo
WORKING Singaporeans who cannot afford their own HDB flat stand to benefit most from the CPF home grant for the needy announced by the Prime Minister in his National Day Rally speech on Sunday.

PM Lee Hsien Loong said the grant will help low-income families buy new or resale HDB flats.

There are nearly 300,000 workers with a gross monthly income of $1,200 and below in Singapore. They make up about 20 per cent of the country's full-time local workforce.

As of December last year, there were 37,588 families living in subsidised HDB rental flats, which are for local households with a total monthly income of $1,500 and below, according to the HDB.

Many of them cannot afford to buy, even through existing HDB schemes to help low earners, because they simply do not have enough savings, in CPF or cash, agents said. Though there are no details of the new scheme yet - they will be worked out by a ministerial committee on low wage workers chaired by Manpower Minister Ng Eng Hen - industry sources speculated that the grant may benefit some of those renting flats from the HDB at $26 to $165 a month.

'They are the ones willing to help themselves, but not able to buy. The new scheme is to expedite the process,' said property consultancy Knight Frank director Nicholas Mak.

Property firm PropNex's chief executive Mohamed Ismail said applying the grant to new flats will enable more people to buy. At the moment, the first-timer CPF grant applies only to resale flats, which are about 30 per cent more expensive than new flats.

Mr Mak said the grant could take the form of a subsidised mortgage, while Mr Mohamed suggested that a portion of the grant could be set aside to help with monthly repayments.

One group likely to welcome the move is the children of rental families who have started work but do not earn a lot, said ERA Singapore assistant vice-president Eugene Lim.

However, agents and consultants warned that low-income buyers will still have to be able to service a mortgage, so the grant may not help the very poor.

Even so, the system will have to be carefully managed to ensure it does reach the very needy, said Associate Professor Ong Seow Eng from the National University of Singapore department of real estate. In the past, there have been cases in which a spouse stops work in order to fall under the income ceiling for HDB flats to be eligible to buy.

'Reselling flats bought through subsidies and grants is one way families realise capital gains, which can then be translated into spending power,' said Prof Ong. A minimum holding time of 10 years, when the flat cannot be sold, could help avoid this problem, he added.

Agents said the grant scheme will have a minimal impact on the market. C&H Realty's managing director Albert Lu said increased demand for three-room flats may drive prices up, but the increase will likely be negligible.

While the scheme won't have a big market impact, it may change the lives of some low-income earners. 'If the grant is higher than the existing $30,000 and $40,000 CPF grant, it will definitely increase the morale of the low-income group,' said Dennis Wee Properties director Chris Koh.

joyceteo@sph.com.sg

jq75

24-08-2005, 09:13 AM

Aug 24, 2005
New home grant will be on top of older schemes

The target group: Low-income workers who need help to own homes

By Chua Mui Hoong and Sue-Ann Chia
A NEWLY proposed housing grant for the low income will be given on top of existing CPF housing grant schemes.

It is targeted at those who are working and have some income, but struggle to afford their own homes, said National Development Minister Mah Bow Tan.

The aim is to give those in the bottom 20 per cent of households a chance to buy their own flats.

But the very poor, sick or those unable to work, who fall into the bottom rung of this group, may not be able to afford to buy flats, even with a grant.

For this group, the government will provide subsidised rental housing.

Mr Mah was responding to questions from The Straits Times on a new scheme the Government is studying. This is to give Central Provident Fund grants to low-income households so they can afford new or resale HDB flats more easily.

The move was announced by Prime Minister Lee Hsien Loong at his National Day Rally speech on Sunday.

Mr Lee had noted that HDB flat-buyers enjoyed similar levels of subsidy regardless of income. An additional grant would 'give lower-income groups a bite from a bigger cherry', he said.

'When a family buys an HDB flat, we'll assess your income. And if your income is in the lower-income group, then we can put a grant, paid into your CPF, which will help you to buy the HDB flat,' he said.

Elaborating, Mr Mah said: 'The broad concept really is that, first of all, it must be associated with work. I mean, it should not be just a handout as it were, there has to be a link with work, what PM called workfare.

'Secondly, I think it will help the lower-income to purchase a flat but there must be the ability to service the loan. So we have to see how we can tie that in with the concept of workfare.'

He said the grant would sit on top of existing CPF housing grant schemes. Currently, first-time buyers of HDB resale flats can get a grant of $30,000. They get another $10,000 if they buy a unit near their parents' estate.

Mr Mah said the committee on low-wage workers chaired by Manpower Minister Ng Eng Hen is looking at how best to work out the scheme. Details could be ready in a few months, he said.

Contacted yesterday, a committee spokesman confirmed that information on the new grant and workfare scheme will be released soon.

She declined to give more details, saying it was premature.

Mr Mah also did not give more details. But he did clarify that the grant isn't meant for the very poor.

This group might not be able to service a housing loan. 'For them, we will always have available the option of a rental flat... What the Government can do for them is to provide them with a heavily subsidised rental flat so that they can continue to have a roof over their heads,' he said.

The proposed grant is targeted at low-income earners who, with some help, can start owning property.

'Some of them... can be assisted to purchase a flat and assisted in a way that would build up their assets,' said Mr Mah.

Analysts say the policy makes sense as the poorest 5 per cent would probably not be able to service home loans, and should be helped with other types of subsidies.

But there are some among the lower-income households who may need some extra help to own a home, said Associate Professor Ong Seow Eng from the National University of Singapore department of real estate.

'Some may suffer from sudden loss of income like retrenchments which will put them in financial difficulty,' he noted, adding that grants given should be tied to jobs.

jq75

25-08-2005, 09:35 AM

Aug 25, 2005
Choa Chu Kang plot slated for mall, condo
A SHOPPING mall with a condominium is to be built in Choa Chu Kang, on a plot adjoining the Yew Tee MRT station.

The plot is being released for tender after a developer made a commitment to bid at least $58.6 million, beyond the reserve price set by the HDB.

This was announced yesterday by the HDB which said the 8,500 sq m site, with a 99-year lease, had been on its reserve list since June last year. It is located at the junction of Choa Chu Kang North 6 and Choa Chu Kang Drive.

It is the second plot that the HDB is selling for mixed use. In June, a 33,524 sq m site in Jurong, next to Boon Lay MRT station, was sold for $415 million to Prime Point Realty Development.

In the Yew Tee development, HDB is allowing up to 40 per cent of the maximum gross floor area of 27,200 sq m to be set aside for commercial use. The rest is for private homes.

ERA Singapore assistant vice-president Eugene Lim said the new mall will be a welcome addition for residents, with 'not many shopping facilities nearby at the moment'.

Knight Frank director Nicholas Mak expects active bidding for the site because of its proximity to the MRT station. He predicts the tender will fetch bids of up to $70 million.

The tender for the site will start next Wednesday. HDB said it will announce the closing date of the tender at a later date.

jq75

25-08-2005, 09:42 AM

Next HDB facelift will cater to elderly

No fancy malls but 'more life' for AMK, Bedok, Clementi

Thursday • August 25, 2005

Loh Chee Kong
cheekong@newstoday.com.sg

IN HIS recent National Day Rally speech, Prime Minister Lee Hsien Long revealed the Ang Mo Kio, Bedok and Clementi estates will be renewed as Singapore transforms itself into a global vibrant city.

While the three older Housing and Development Board (HDB) estates will seek to emulate the successful rejuvenation of Toa Payoh as cited by PM Lee, the priority is not fancy shopping malls but amenities that are more accessible to the elderly and disabled as the country copes with a rapidly ageing population.

Ang Mo Kio

Mr Seng Han Thong, an MP for the Ang Mo Kio Group Representative Constituency (GRC), said the top priority for his Town Council will be to upgrade all lifts and the older blocks. There will be more senior citizen-friendly facilities.

He said: "We have many good gardens and parks. I hope we can add colour with stands for exhibitions, and facilities friendlier to senior citizens ... more integrated playgrounds for both children and senior citizens so that the parks and gardens will be used."

Bedok

For Bedok, improving the living environment for the elderly and disabled will be part of a five-year renewal plan to be announced by the end of this year, East Coast GRC MP Chew Heng Ching said. Other proposed improvement works will include the upgrading of town and neighbourhood centres, and parks and park connectors.

More fitness corners and jogging tracks will be constructed. To attract young shoppers and inject life into the areas, pedestrian malls will be built and major shopping belts upgraded.

Said Mr Chew: "The plan endeavours to bring more life to the town, and includes the provision of new and upgraded recreational amenities for the benefit of residents and to enhance the living environment."

Clementi

The entire Clementi estate will gradually feature barrier-free access, said West Coast GRC MP Arthur Fong. The Town Council is working with the HDB to ensure lifts stop on every floor in the older blocks.

There are "very exciting things going on", said Mr Fong.

"It's not just for the residents but for a lot of people who use the town centre. We are talking about the youth from nearby universities, junior colleges and polytechnics. A lot of young people use the facilities here."

Part of this vision are the "twin towers" — two complexes of 34 and 40 storeys on Clementi Avenue 3, where the bus interchange now is. Together, they will comprise 388 apartments of three or five rooms.

The taller complex will have a shopping mall, a library, the Town Council office and an air-conditioned bus interchange linked to the MRT station. Building will start in 2007 for completion by mid-2010. :)

jq75

26-08-2005, 08:20 AM

Aug 26, 2005
Wear-and-tear leaks: Flat owners share costs

I REFER to the letter, 'Why no cost breakdown?' (ST, Aug 19), by Mr Jeffrey Teng Lian Hong.

Mr Teng experienced two ceiling leaks. Earlier this year, his lower-floor neighbours informed HDB of a ceiling leak in their master-bedroom toilet. Subsequently, Mr Teng informed us that his own ceiling was also leaking.

HDB's investigations revealed that both ceiling leaks were due to natural deterioration of materials.

Under the circumstances, the flat owners on the upper and lower floors who are sharing the use of the party structure are jointly responsible to repair the leak and share the repair cost.

To assist the flat owners, HDB offered to repair the ceiling leaks under the Goodwill Repair Assistance Scheme.

Under this scheme, HDB will help to pay 50 per cent of the repair cost on a goodwill basis. Mr Teng and his neighbours would need to pay only 25 per cent of the total repair cost, which is estimated to be $200 for each toilet.

The scope of the repair works includes the hacking of floor tiles, pedestal pan and other fixtures, applying a new layer of non-shrink grout and a layer of waterproof membrane to the hacked surface and re-installation of the floor tiles, pedestal pan and other fixtures.

Our term contractors carry out the repair works on a package basis. Hence, a cost breakdown is not available.

If Mr Teng's concern is the price, we wish to assure him that prices are based on an agreed schedule of rates. This arrangement has ensured that costs are fair and reasonable and also proven to be most efficient and cost-effective.

My colleague will be contacting Mr Teng and his neighbours again regarding the repairs and we hope to come to an agreement and arrange for a suitable repair date as soon as possible.

We look forward to Mr Teng's understanding and cooperation.

Victor Lim Teck Jit
Head, Yishun Branch Office
Housing Administration Dept
Housing and Development Board

jq75

26-08-2005, 08:22 AM

Aug 26, 2005
Let CPF top-ups be used to pay flats' rental

I REFER to the articles, 'New home grant will be on top of older schemes' (ST, Aug 24) and 'CPF home grant for needy brings cheer' (ST, Aug 22).

Topping up the CPF of lower-income families to help them buy Housing Board flats is well intentioned. However, I believe that the most frequent and pressing financial problem of lower-income families is servicing their monthly mortgage repayments.

A few years ago, there were about 25,000 HDB flat owners who were in arrears of more than three months on their mortgage repayments. How many are currently in arrears, and what proportion belong to the lower-income group?

As lower-income families are generally more susceptible to job losses, wage cuts, involuntary early retirement, etc, they may not have cash or CPF reserves to fall back on to service their housing loans in times of financial difficulty. Consequently, I would suggest that the CPF top-ups be allowed to be used to pay the rental on HDB flats. Otherwise, those who do not utilise the top-ups may feel left out.

Lower-income families may be better off renting, instead of owning flats whose mortgage they may not be able to service without disruption for decades, such as for a 30-year housing-loan period.

I understand that the HDB's policy now is to recover an outstanding HDB housing loan before refunding any balance from the flat repossession to one's CPF account. For bank loans, the bank will have first charge on the HDB flat upon foreclosure. This means that only the balance, after offsetting the outstanding housing loan against the sales proceeds, will be returned to one's CPF account.

As the residential property market is still in a nine-year bear market, it is a lesson for Singaporeans that asset enhancement by way of home ownership may not always work out for everyone.

There is the risk of retiring with one's property in negative equity and having used up most of one's CPF in the working years.

Leong Sze Hian :yawn:

jq75

26-08-2005, 08:40 AM

Aug 26, 2005
Govt exploring condo-style committees for HDB estates

By Chua Mui Hoong
CONDOMINIUM-STYLE 'management committees' in Housing Board precincts? Why not, says National Development Minister Mah Bow Tan.

His ministry is considering this as one way to give HDB residents more say over estate management, he disclosed in an interview with The Straits Times.

Town councils have maintained common areas in HDB estates since 1989. They determine service and conservancy charges. Residents may join estate management committees under the councils.

But Mr Mah thinks residents can be involved more directly, by forming management committees at the precinct level, which usually consists of about 10 to 15 HDB blocks.

The proposal is a big change with major implications, he acknowledged. It's a long-term idea and won't be implemented anytime soon.

The ministry is sounding out residents, town councils and grassroots advisers and will act only at a pace HDB residents are comfortable with, he stressed.

The plan is part of an overall trend towards liberalising the rules governing public housing.

Said Mr Mah: 'The philosophy is to allow residents to have more authority and responsibility...'

Core rules governing purchases of HDB flats will remain, such as the income ceiling, minimum occupation period before selling a flat, and the need for purchasers to form a family nucleus. But other rules have been relaxed. HDB residents may now use their flats as home offices or sublet their flats, for instance.

The next step: Give residents more responsibility in estate management, perhaps by having condominium-style management committees.

'Take a specific example: let's say cleanliness. Is it possible for fees, service and conservancy charges to be determined by the precinct, or by estate?'

There could a be two-tier fee system: a broad tier of fees for general cleaning, and a second tier tied to how much it costs to maintain and clean a specific precinct. This way, residents from cleaner neighbourhoods could pay less.

Mr Mah said: 'There are pluses and minuses... if you carve up their precinct in a different way, you may end up with a different cost structure.

'It's a big move, so we'll have to talk to more people to find out more about the issues involved.'

Mr Lim Hong Leong, director of property management at DTZ Debenham Tie Leung, said the proposal for HDB MCs was a good one but many issues needed to be thrashed out.

One is to see how the economies of scale enjoyed by town councils can be translated to the precinct level.

He added: 'Problems of leaking floors, encroachment such as putting items in corridors obstructing neighbours, and other disputes will arise in the course of living together. These committees will also need clear legislative powers for proper enforcement of rules.'

muihoong@sph.com.sg

jq75

26-08-2005, 10:27 PM

Deadline draws near for households to retrofit window rivets

SINGAPORE : A total of 91 windows have fallen off buildings in Singapore in the last eight months of this year. This is a dramatic increase from just 18 cases for the year 2000.

Authorities said this dangerous trend could be reversed if households change their aluminium window rivets to that of stainless steel.

The deadline for this is September 30.

It is one month away and about 25,000 household owners have yet to change their aluminium rivets on their windows to stainless steel ones.

They make up 10 percent of residents who live in flats that are older than five years.

One possible problem that may be stopping some owners from retrofitting their windows - errant contractors who overcharge or provide bad service.

Dr John Keung, Deputy CEO of Building at HDB, said: "So far we have taken action against 40 of them, 12 of them were fined and we have also warned them that if there is any repeated offence, we would not hesitate to take further action against them including debarment."

It costs about $200 to $300 to replace window rivets, but HDB said misunderstandings have arisen when contractors charge more for replacing other window parts that have worn out.

Wong Wai Ching, Director of Building and Construction Authority, said: "It is an offence for failing to retrofit windows by the end of the grace period, and the building owner can be fined or jailed.

"However, in the case where a window has actually fallen, there is another legislation, which is the Building Maintenance and Strata Management Act. Under this Act, the owner could be fined and/or jailed as well."

Offenders can be jailed for up to 12 months, fined a maximum of $10,000 or both.

The authorities stressed that it is not just about changing rivets but about safety.

About 20 percent of the windows that fell do not involved casements, but some were sliding windows which had jumped off their tracks due to wear and tear.

HDB has set up a hotline for those with queries on window safety or who need financial assistance. The number is 1800-5556362.

A list of five recommended contractors have also been added to its website.

Some residents are not sure if their rivets are aluminium or stainless, but there is an easy way to find out.

Aluminium rivets leave marks when scratched by a coin, but stainless steel ones remain scratch-free. - CNA

jq75

26-08-2005, 10:30 PM

Aug 26, 2005
Hotline set up for queries on changing window rivets

A DEDICATED hotline has been set up to field queries from flat owners rushing to replace their window rivets by the Sept 30 deadline under a retrofitting order made last year.

Flat owners can call the hotline at 1-800-555-6362 from Monday.

The Housing Development Board (HDB) and Building and Construction Authority (BCA) have also appointed more recommended contractors in anticipation of the likely surge in demand for window contractors.

Under new rules that came into effect last year, flat owners with casement windows five years or older must change their rivets from aluminium to stainless steel by Sept 30 or risk a fine of S$5,000 and/or six months' jail.

Casement windows - windows which open outwards - fastened with aluminium rivets have accounted for 415 cases of falling windows from HDB and private apartments since 2000.

The new hotline, which will go live on Monday, will handle public enquiries on window safety and retrofitting, and also help flat owners with finding suitable contractors.

The job can only be done only by contractors who have been approved to do the retrofitting by the BCA.

Currently, home owners can pick from a list of more than 600 approved window contractors in the market. This list can be found on HDB's website and is also available from HDB's branch offices.

Of the total estimated 187,000 households with windows that need to be retrofitted, 87 per cent, or 162,000, have already done so

jq75

27-08-2005, 11:56 AM

Retrofitting window of opportunity closing

25,000 high-rise property homeowners in danger of missing Sept 30 deadline

Weekend • August 27, 2005

JASMINE YIN
jasmine@newstoday.com.sg

THE clock is ticking for about 25,000 high-rise property homeowners who have yet to retrofit their casement windows with stainless steel rivets.

And the Housing and Development Board (HDB) and Building and Construction Authority (BCA) are redoubling their efforts to ensure that these 9,000 HDB households and 16,000 private households retrofit their windows by the deadline of Sept 30.

Homeowners who do not comply with the regulations face a $5,000 fine and six months' in jail as part of the BCA's window safety legislation that went into effect last October.

Starting Aug 29, the public can call a special hotline (1800 555 6362) from Monday to Friday, 8am to 5pm, for help on window safety and retrofitting.

Private homeowners looking for a contractor are encouraged to approach their management corporations or the HDB and to hire a contractor collectively as an estate to get favourable rates.

There have been 91 incidents of falling windows so far this year, or an average of two to three falling windows per week.

Over 80 per cent of these incidents involved casement windows fitted with aluminium rivets.

The remaining 20 per cent involved mainly sliding windows that fell due to wear and tear.

Of the estimated total of 187,000 households that were identified for window retrofitting, 162,000 have done so.

Calling these statistics "encouraging", BCA chief executive officer Chionh Chye Khye nevertheless emphasised that the remaining households — which are located in older estates island-wide — must take action before they find themselves in violation of the law.

"We have anecdotal evidence that the residents know the windows have to be retrofitted, but they think that the one-year grace period that was given last October is a lot of time.

"We want them to realise that they only have one month, so better go and do it," he said.

He assured homeowners that there are "enough contractors" in the market to retrofit their windows before the end of September.

Information on recommended contractors and details on retrofitting windows can be found on the BCA's website at www.bca.gov.sg and on the InfoWeb at www.hdb.gov.sg.

jq75

27-08-2005, 11:59 AM

Aug 27, 2005
25,000 yet to replace window rivets

Homeowners cite misleading info and overcharging as deadline looms

By Daryl Loo
IT IS barely a month before the deadline for Housing Board and private apartment residents to get the aluminium rivets on their windows replaced, but some 25,000 have not done so yet.

The one-year grace period given to these owners to replace the rivets on their casement windows - those which open outwards - with stainless steel ones will end on Sept 30.

Those who do not comply by then could wind up being jailed up to six months and fined up to $5,000 under the law enacted after a spate of falling window cases.

But many have not done so yet..

According to the Building Control Authority (BCA), 187,000 homes needed to have their windows fixed. But owners of 9,000 HDB flats and 16,000 private apartments have not.

These homeowners complain that misleading information and over-charging by contractors are the reasons for their tardiness.

Said Mrs Angie Ng, 37, who lives in a three-room flat in Bukit Batok: 'I was getting so many contractors knocking on my door, and all of them have different prices and different stories about what needed to be changed.'

'I didn't want to be cheated, which is why I haven't fixed my windows,' said the mother of two.

The HDB has moved to address these concerns. Its deputy chief executive, Dr John Keung, said the board has taken action against 40 contractors for offences such as misleading the public, touting, and shoddy work over the past year.

Twelve window contractors were fined $1,000 each, and another 28 given stern warnings.

Those with repeat offences may be suspended by HDB, taken off the list of approved window contractors, or given heavier fines, said Dr Keung.

HDB will also set up a dedicated hotline to handle public enquiries on window safety and retrofitting from Monday. Those with queries can call 1800-5556362.

It has also put up list of five HDB-recommended window contractors to bolster the 600 that are BCA-approved to handle the likely surge in demand as the deadline nears.

A recurring problem with falling windows led to the new rule. Between January and August this year, there were 91 cases of falling windows, of which 89 were in HDB estates.

Since 2000, 415 windows have fallen from homes. The bulk of these - over 80 per cent - were casement windows fitted with aluminium rivets.

The rest include sliding windows with worn-out safety catches and those that had jumped their tracks.

Said BCA chief executive Chionh Chye Khye: 'Fortunately, none of the falling window cases this year resulted in any injuries. But there were a few near-misses.'

The most recent, he said, came last week, when an elderly couple in Whampoa were nearly hit by a window.

Dr Keung had this advice for those who have not acted yet: 'Those who have not yet retrofitted their windows should take action now.

'If they have difficulty in getting a contractor, call our hotline.'

darylloo@sph.com.sg

jq75

29-08-2005, 03:43 PM

Review of Housing Options for The Elderly

As announced by the Prime Minister on 28 August 2005, HDB has reviewed and fine-tuned its housing policies to help elderly Singaporeans meet their housing and retirement needs. The changes are in three areas:

(a)encouraging the elderly to live with their family
(b)facilitating the elderly to buy studio apartments
(c)upgrading more HDB rental flats with elderly-friendly features

(A) ENCOURAGING THE ELDERLY TO LIVE WITH THEIR FAMILIES

2Currently, extended families buying new flats directly from HDB enjoy a higher monthly household income ceiling of $12,000, compared to $8,000 for nuclear families. To encourage extended family living, HDB will extend the $12,000 monthly income ceiling to extended families buying resale HDB flats with the CPF Housing Grant. The revised policy will apply with immediate effect. The cut off date for submission of resale applications is at Annex A.

(B) FACILITATING THE PURCHASE OF STUDIO APARTMENTS

3HDB launched the Studio Apartment (SA) scheme in 1998 to provide a housing option for the elderly who wish to maintain their independence while living near their children and friends. The scheme allows HDB flat lessees and private property owners who are at least 55 years old to sell their existing properties and buy SAs at affordable prices and to use the balance of the sales proceeds for their retirement needs. SAs are specially designed with elderly-friendly features. There is also a Neighbourhood Link run by a Voluntary Welfare Organisation (VWO), which provides social and communal facilities and services to the elderly residents.

4The SA scheme has been well received. All the SA units in the pilot project were taken up. HDB’s survey of SA owners conducted in 2002 showed that 95% of them were satisfied with their living environment. HDB's latest offer of integrated SAs in the Oct 2004 Balloting Exercise was also fully subscribed. Going forward, new SAs will be included as part of HDB's building plan and offered for sale under the Build-To-Order system. This will provide another affordable housing option for elderly Singaporeans.

Revised Conditions for Purchase of SA

5To further enhance the attractiveness and affordability of SAs, HDB will revise the conditions for the purchase of SAs as follows:

(a)Removal of Medisave top-up requirement
SA buyers have to currently top-up their Medisave account to the prevailing limit. The requirement was first introduced to ensure that the elderly have adequate funds to meet their healthcare needs. However, given that CPF members already need to contribute to their Medisave accounts, MND has decided to remove the Medisave top-up requirement for SA buyers. With the revision, SA buyers, like other HDB flat buyers, will no longer need to top-up their Medisave account.

(b)Removal of 20% premium
The 20% premium on the purchase price of SAs was imposed on SA buyers who have enjoyed two or more housing subsidies because such buyers would normally not be allowed to buy another flat from HDB. This was to better manage demand for the SAs in the pilot project. With SAs now incorporated as part of HDB's building plan, the 20% premium will be removed.

(c)Removal of requirement for non-property owners to include children
Previously, elderly non-property owners living with their children were required to include at least one of their children in their application to buy SA. This was to encourage continued mutual care and support of the elderly in the SA unit. HDB will now remove this condition, thus allowing the elderly to decide on their own living arrangement.

(d)Allow use of CPF for purchase of SAs
To facilitate the elderly to buy SAs, buyers aged at least 55 years will now be able to use their CPF to buy SAs after they have set aside at least the full cash component of their Minimum Sum. The SA would then be pledged for the amount of CPF used, up to the maximum pledge allowed under the Minimum Sum Scheme.

6These revised conditions will take immediate effect. The cut-off date will be based on the date of booking of the SA.

(C) UPGRADING MORE HDB RENTAL FLATS WITH ELDERLY-FRIENDLY FEATURES

7To improve the living environment of the low-income elderly living in HDB rental flats, HDB will upgrade 15 1-room rental blocks in batches over 2 years under Project LIFE (Lift Improvement and Facilities Enhancement for the elderly). The project was previously known as PILCE (Project to Improve the Living Conditions of the Elderly).

8Under Project LIFE, HDB will carry out various improvement works to the flats and blocks such as:

(a)Modifying the lifts to stop on every floor (where possible);
(b)Installing an alert alarm system for the elderly residents to call for help in the event of emergency
(c)Installing support handbars in the toilets and along common corridors to facilitate mobility of the elderly.

In addition, the Ministry of Community Development, Youth and Sports will arrange for VWOs to provide community-based care and support services to the elderly residents.

9The details of the blocks selected will be announced at a later date based on the upgrading schedule.

Enquiries

10For enquiries, the public can contact HDB through the following channels:

(a)Resale/Sales Enquiry Line : 1800 8663 066
(b)SERS Enquiry Line : 1800 8663 070
(c)Branch Office Service Line : 1800 2255 432

--------------------------------------------------------------------------------

ANNEX A

The cut-off date for implementation of the higher monthly income ceiling for extended families to buy resale flats with the CPF Housing Grant is summarized as follows :

Method of Submitting Application Cut-off Date Based On
ResaleNet Date of receipt of application via ResaleNet
e-Resale Date of receipt of application via e-Resale
Drop Box at Toa Payoh HDB Hub Date of receipt of application in the Drop Box
By Post to HDB Date of Postmark by Singapore Post

Issued By : Housing & Development Board
Date : 29 Aug 2005

jq75

30-08-2005, 10:06 PM

HDB relaxes rules on buying of studio apartments CNA

The HDB has relaxed some rules to make it easier for those above 55 to buy studio apartments.

It has also extended the household income ceiling of $12,000 to 3-generation families who wish to buy resale HDB flats, to encourage the elderly to live with their families.

Previously, this monthly income ceiling to qualify for the Housing Grant applied only to those buying new flats.

Among the changes to the Studio Apartment scheme, which started in 1998, HDB says new units will be offered for sale under the Build-To-Order system.

Buyers will be allowed to use their CPF money, and they no longer need to top up their Medisave account.

Previously, those who don't own property must include one child in their application, but this has also been dropped to allow the elderly to decide their own living arrangement.

Also, the HDB has scrapped the 20% premium for those who have benefited twice from housing grants.

77-year-old Woo Shao Tin and his wife sold their 5-room flat and bought a studio apartment in Toa Payoh 3 years ago.

Mr Woo said: "The apartment is small, easy to maintain, and also, we can sell the house and keep the money......can also invest in the bank. Other than that....easy to enjoy, downstairs, we have activities, karaoke.....easy to pass the day. That is why I prefer living in this type of flat."

And it doesn't bother them that they paid $14,000 extra for the $69,000 flat.

The 20% premium was imposed then because they'd bought twice before from the HDB.

Studio apartments have so far been built only in matures estates like Toa Payoh where there are established amenities like polyclinics.

But the HDB is not ruling out the possibility that some may eventually be built in newer estates like Sengkang, so the elderly can stay closer to their newly married children.

And, under the Build-To-Order scheme, the studio apartments may be built in the same block as other 3-, 4- or 5-room flats.

The income ceiling revision may also mean bigger homes for extended families who prefer resale flats.

ERA's division director, Andrew Soh, said: "They'd be more daring to take up a bigger unit, a 5-room or executive, so that they can actually facilitate the loan from HDB instead of the bank. And, there will be more activities created on the resale market."

Property agents also expect more 3-room flat transactions at slightly lower prices. - CNA/ir

jq75

30-08-2005, 10:17 PM

Aug 30, 2005
Taking a housing loan? Beware interest hikes

WHEN it comes to obtaining a housing loan from banks, consumers must always be very cautious in doing so.

Why? Just by giving one month's notice, the banks can increase the interest rates. And what can you do about it? Nothing or very little.

Imagine taking a loan of $500,000 when the interest rate was 3 per cent. The interest cost would work out to be $15,000 per annum.

By just increasing the rate to 4 per cent, the cost would rise to a sizeable $20,000.

The banks have forgotten that most consumers are average working-class people.

In my case, by giving one month's notice, the rate went up by 1.2 percentage points, from 3.05 per cent to 4.25 per cent. No wonder the banks are doing very well. We borrowers are really at their mercy.

I wonder if the increase in rates requires the approval of the authorities, just like bus companies have to seek the approval of the Public Transport Council for a fare revision.

David Cheng Kia Lim

jq75

30-08-2005, 10:20 PM

jq75

30-08-2005, 10:22 PM

Aug 30, 2005
Rules eased for elderly flat buyers

Easier now for them to buy studio apartments or qualify for CPF housing grant

By Daryl Loo
RETIREE Lim Ee Kay, 64, is among an estimated 500,000 Singaporeans aged 55 and older who will now find it easier to buy an HDB studio apartment to live on their own.

One of the changes that went down well with Mr Lim is the scrapping of the rule which requires would-be buyers to pay a 20-per-cent premium if they had bought a home twice before from the HDB.

At the same time, older folk who want to move in and live with their children as a three-generation family will get a boost too. The monthly household income limit for such families to qualify for a CPF housing grant of up to $40,000 has been raised to $12,000, from $8,000.

This grant for purchasing an HDB resale flat is to encourage the elderly to live with their children.

Yet another change directed at the elderly is the promise of a better living environment for those who are poor and live in rental HDB flats.

Features such as support handrails are to be built in their toilets and along common corridors to help them move about more easily.

These new and improved changes, announced yesterday for senior citizens, are part of a move to help Singapore cope with its rapidly ageing population.

Prime Minister Lee Hsien Loong, in his National Day Rally speech on Aug 21, had reminded Singaporeans of the inevitable trend.

Singapore, therefore, needs to 'make adjustments to provide for a more elderly-friendly environment, and help people draw on the value of their home as they get older', he said.

So, those who want to sell their flats and buy the smaller HDB studios will, from now, have fewer restrictions.

Since the HDB studio scheme was introduced in 1998, demand has been high. Part of the reason is that the flats are designed with elderly-friendly features.

The more than 1,000 studios offered in the last seven years have all been snapped up.

The latest 100 units in Eunos Crescent, offered last October, have been sold. HDB said it received 235 applications, more than double the flats available.

As applications climb, HDB assured the public yesterday that more studios will go on sale under its Build-To-Order scheme.

But the increased supply of studios is unlikely to affect the price of HDB resale prices, said property experts, because they form a tiny proportion of the total supply of nearly 900,000 flats.

However, Dr Amy Khor, an MP for Hong Kah GRC, said: 'The impact may not be huge, but every little bit helps as more Singaporeans are going to reach retirement age.'

Property experts also shrugged off the change for three-generation families. The number of families that will benefit from the higher income limit 'is small', they said.

Part of the reason is the strict rule that a married couple's combined income still cannot exceed $8,000, though when combined with their parents', the family income can go up to $12,000 before they are disqualified from buying a resale flat with the CPF grant.

Last year, of the 7,260 grants given out to various groups of home owners, 41 per cent went to extended families and families with married children living near their parents.

MPs like Mr Leong Horn Kee (Bishan-Toa Payoh GRC) believe the new options are 'sensible' as they give the elderly more options.

For the elderly poor, HDB said it will upgrade 15 one-room rental blocks over the next two years under its Project Life (Lift Improvement and Facilities Enhancement for the elderly). Since 1993, over 11,000 homes in 38 blocks have been improved.

Mr Lim, who lives in a three-room flat in Marine Parade with his wife, 59, and daughter, 30, said: 'Now I have more choices. Get a studio for me and my wife, or a bigger flat to be with my daughter when she has her own family.'

Aug 30, 2005
STUDIO FLATS FOR THE ELDERLY
More consider buying as rules are eased
But some owners who bought two or three years ago wish the CPF rule change had come earlier

By Maria Almenoar
RETIREE Tan Poh Huat, 71, has lived in his Housing Board flat in Bedok Reservoir for about 20 years.

While he has nothing but praise for his neighbourhood, the freeing up of rules for buying studio flats yesterday has got him thinking about the possibility of moving out.

'If our neighbours move out or it's just my wife and me left here, the idea of a studio flat for the two of us sounds like a good prospect,' said Mr Tan, who lives in a five-room flat with his wife, daughter and son-in-law.

The studio flat scheme is a housing option launched in 1998 for older Singaporeans who want to maintain their independence as well as live near their relatives.

About 1,000 such flats have since been built in such areas as Bukit Merah View, Tampines and Jurong East, in blocks made up only of such homes or mixed with homes of different sizes.

The changes announced yesterday focused on four rules for the purchase of studio flats. They include removing the rule requiring older Singaporeans who do not own property to include the name of a child when applying to buy a studio flat.

Also, they no longer need to pay a 20 per cent premium if they have received two or more HDB subsidies for owning a home.

To Mr Tan, that's a good reason to think about moving to such a flat.

'It was never an option before because an additional 20 per cent on a flat that costs about $60,000 is a substantial amount,' he said.

Another change: The elderly no longer have to top up their Medisave to $27,500.

Mr H.C. Quah, 62, a production assistant, was delighted by this change as he has limited Medisave savings.

'I've had to use my Medisave here and there. So now, if I move into a studio flat and sell my current flat, I will have some money for my retirement instead of using the money from the sale to top up my Medisave,' said Mr Quah, who lives alone in an upgraded three-room flat in Toa Payoh.

Current owners of studio flats, especially those who bought them two to three years ago, were unhappy with the changes.

Many picked on the rule - now scrapped - that forbade them from using their CPF savings to buy a studio.

Buyers can now use their CPF savings provided they have the full cash component of their Minimum Sum, amounting to $90,000, set aside.

Said Mrs A. Shanmugam, 63, who lives in a studio in Bukit Merah View with her 73-year-old husband: 'If we could have used our CPF, we wouldn't have had to use what we made from the sale of our old flat in West Coast Drive for our daily needs.

'If only these rules were introduced two years ago.'

mariaa@sph.com.sg

jq75

30-08-2005, 10:23 PM

Aug 30, 2005
Elderly get more choices with housing changes

By Joyce Teo and Daryl Loo
ALTHOUGH the impact on HDB homes prices will be negligible, the significance of the new home-buying rules for the elderly lies in the extra choices they offer to this growing segment of the population.

MPs Leong Horn Kee (Bishan-Toa Payoh GRC) and Teo Ho Pin (Holland-Bukit Panjang GRC) felt the changes gave older Singaporeans the flexibility to decide how they would like to live in their twilight years.

Dr Teo said: 'The elderly have different needs. Some want to stay with friends, in an old community or with their children. Relaxing the rules gives them more choices to retire comfortably.'

Mr Leong said that by making studio apartments more accessible to the elderly, the social stigma associated with older people living alone will be overcome.

'People tend to see moving to these studios as a negative, maybe because it means they cannot afford larger homes, or because their children do not want to live with them,' he said.

'But that's not true. Older people living away from their children is a growing trend in Japan and many Western societies, and older Singaporeans should also have this option.'

Property firm PropNex chief executive Mohamed Ismail feels the rule changes will help those strapped for cash, after having spent most of their savings as well as CPF funds on owning a flat.

'Allowing more to qualify for the studio apartments will enable more to sell their bigger flats and buy studio flats.'

The latest HDB studio flats, which are up to 45 sq m in size, cost at most, $77,000.

But the plans for more studio apartments will not affect property prices in the short term as the supply - controlled under HDB's build-to-order scheme - will take three to four years to reach the market, he said.

Also, it will come on-stream as and when there is demand, preventing any downward pressure on prices, said property agents.

'At age 55, people do not think it is near the end of their lives. Some have used their money to buy landed properties and even invest in property in Malaysia,' said Mr Ismail, who estimates that fewer than 30 per cent of the 500,000 Singaporeans aged 55 and older would be keen on these studio flats.

Property consultancy Knight Frank's director Nicholas Mak said some older blocks could be torn down to facilitate the building of studio apartments near town centres.

If these apartments have popular features, demand would be maintained and some of the elderly buyers' children might want to move near them, thus helping to support the value of the flats in the estate where these units are, he said.

The other change - where the household income limit is raised to $12,000 for three-generation families to buy a resale flat with the CPF grant - will also benefit a small group.

This could boost demand for bigger flats, said ERA Singapore assistant vice-president Eugene Lim.

'But it may not be big enough to boost prices,' said Mr Mak.

Agreeing, Dennis Wee Properties director Chris Koh pointed to the strict rule that a married couple's combined income cannot exceed $8,000, though when combined with their parents, the household income can be up to $12,000.

C&H Realty's managing director Albert Lu is uncertain whether the policy will amount to much.

A 2003 HDB survey found that more children prefer to live apart from their parents after marriage.

Also, 24.3 per cent of the elderly said they would rather live by themselves, compared with just 15.2 per cent in 1998.

jq75

30-08-2005, 11:36 PM

HDB flat prices in Ang Mo Kio, Bedok likely to rise after makeover: experts

CNA

HDB flat prices are likely to inch up in Ang Mo Kio, Bedok and Clementi when they're given the makeover promised to them by the Prime Minister at the National Day Rally.

That's the view of property experts who have seen Toa Payoh totally transformed by the government's estate renewal.

Looking at the flats in Toa Payoh today, you wouldn't imagine that it is one of the oldest HDB estates around.

The upgrading of the entire estate has increased the value of its flats by some 10 to 15 percent.

Mohamed Ismail, PropNex CEO, said: "A four-room flat in Toa Payoh, in the past, it used to be in the range of about $190,000 to $200,000. Today, such properties are going at a range of about $240,000 to $250,000. We can also see the differences in the prices within Toa Payoh."

If Toa Payoh is anything to go by, HDB property prices for Ang Mo Kio, Bedok and Clementi will likely go upwards once the upgrading is completed.

Mohamed Ismail said: "We'll not expect an immediate demand because such upgrading will take a period of time.....between 2-5 years or even more. But people who are staying there will be comforted to know that their property will certainly go up in terms of value."

Singaporeans already have a wishlist for what they'd like if their estates are chosen for upgrading.

"Like sporting facility, more space, more park lands for people," said one person.

"Hoping to see cleaner flats and the repainting of the flats because the flats are quite old already," said another.

"For my age, of course, I need the lift to stop on every floor, instead of having to walk three floors up," said a third.

One thing is for sure - the makeover for each estate will be unique and unlikely to be a replica of Toa Payoh.

Donald Han, managing director of Cushman and Wakefield, said: "A good example would be Clementi. It has among the three, the smallest population of about 87,000, 88,000 people. We should try to draw on its strengths by looking at some of its surrounding facilities like, for instance, Clementi is fairly close to NUS, you've got Singapore Poly just down the road, you also have Ngee Ann Poly. So, it could potentially attract the student enclave into Clementi. A bohemian kind of character, theme in Clementi. That's probably a good concept to have."

Mr Han believes every town will have an attraction for different target groups, so any upgrading is likely to reflect the estate's "character". - CNA/ :)

jq75

31-08-2005, 09:56 AM

Aug 31, 2005
Mad rush to retrofit windows
Contractors, authorities deluged with inquiries

By Daryl Loo
SPURRED by a looming deadline, home owners are rushing to get their windows fixed, jamming up government agencies' phone lines and flooding contractors with inquiries.

The Housing Board's inquiry hotline - set up on Monday as the Sept 30 cut-off to retrofit windows approaches - has been constantly engaged. It's the same at the Building and Construction Authority (BCA). :s13:

Window contractors said they have also been deluged with phone calls, with one company receiving over 700 calls since Monday.

Last Friday, the authorities disclosed that owners of 9,000 HDB flats and 16,000 private apartments had still not complied with a requirement to replace the aluminium rivets on their casement windows - those which open outwards - with stainless steel versions.

Tardy home owners could be jailed up to six months and fined up to $5,000 under the law, enacted after a spate of incidents involving falling windows.

HDB's hotline (1800-5556362) was set up in response to complaints from home owners that they had difficulty finding window contractors. Many also said they had been given misleading information by unscrupulous contractors who tried to overcharge them.

Straits Times reader Michael Leong tried calling the HDB line for help to find a contractor. He said in an e-mail yesterday that he had become frustrated after calling constantly for two days only to find the line engaged.

An HDB spokesman said: 'We understand that there will be an initial flood of calls to the hotline in the first few days of operation, coupled with the nearing deadline to retrofit windows.

'We are closely monitoring the call traffic and situation before deciding whether to provide more lines or extend the operating hours.'

By yesterday, HDB said it had received over 2,500 calls to its hotline, which is manned by 20 staff between 8am and 5pm.

Most of the calls were inquiries on the requirements of the law, while a quarter of the callers requested help finding contractors.

HDB provided a list of five recommended contractors last Friday, adding to the 600 approved by the BCA. The five contractors have since received 500 requests to inspect or retrofit windows.

One of them, Success Forever Construction & Maintenance, now has a backlog of 200 requests, which managing director Jack Oei expects will take the next two weeks to clear. The firm received more than 700 calls in two days.

'More people have been calling us as the deadline gets nearer, as many of them said they are waiting until the last minute,' said Mr Oei.

Like housewife Pauline Tan, 46, who lives in a four-room flat in Bedok, said she had forgotten all about the deadline until she heard it on the news last week. .

To help keep the phone lines clear, the HDB spokesman said those who live in flats that were completed or upgraded by HDB after the year 2000 do not need to call as these all have windows that pass muster.

darylloo@sph.com.sg

jq75

31-08-2005, 09:58 AM

Aug 31, 2005
For sale: 187 HDB studio apartments

THE Housing Board has offered 187 studio apartments to the elderly, a day after relaxing rules to make it easier for them to buy these homes.

The apartments, in Bukit Merah and Queenstown, are among the surplus flats not taken up under an earlier Selective En-bloc Redevelopment Scheme.

Also available for sale through the HDB's balloting exercise are 1,588 three-, four- and five-room flats in the Bukit Merah, Geylang, Queenstown and Toa Payoh housing estates.

The studio apartments, designed with elderly-friendly features like non-slip tiles and special alarm systems, are available only to Singaporeans aged 55 and above, who do not earn more than $8,000 a month.

These homes - in blocks with larger units - come with 30-year leases, and are priced at up to $67,000 for 35 sq m units and $87,000 for 45 sq m units.

On Monday, the HDB dropped a rule requiring buyers to pay a 20 per cent premium if they had owned HDB-subsidised homes twice before.

A change in Central Provident Fund (CPF) rules has also put the studio apartments within closer reach of older buyers. They are now allowed to purchase units using their CPF savings, provided they set aside at least $45,000 cash as part of the CPF Minimum Sum reserved for retirement.

Mr Mohamed Ismail, chief executive of real estate firm PropNex, said the rule changes will boost the popularity of studio apartments.

'These studios are already very much value for money. As more people are enticed to buy after the changes, it could well spark a trend for the elderly to live there,' he said.

An HDB spokesman said studio apartments have been built in older estates, which have established facilities and a higher proportion of elderly residents.

However, the HDB does not rule out building such flats in non-mature estates like Punggol and Sengkang.

'This may provide an option for the elderly who may want to live near their married children who have bought new flats in non-mature estates,' the spokesman said.

Applications for this balloting exercise will close on Sept 19, and shortlisted applicants will be invited to select their unit from November.

jq75

31-08-2005, 09:43 PM

HDB to introduce steps to ensure agents tell clients of "look-see" period

The HDB says it is ready to introduce measures to counter malpractices by errant housing agents who rush their clients through housing deals.

These agents deprive many buyers of their two-week "look-see" option period, by asking clients to sign both the option and the purchase agreement forms at the same time.

Under the HDB rules, potential buyers of HDB flats are allowed two weeks after signing the option form to conduct due diligence.

This is referred to as the "look see" period during which the buyer can back out of the deal.

But early this year, the Consumers Association of Singapore (CASE) found out that some housing agents make buyers and sellers sign both the option and the purchase agreements at the same time.

This deprives the buyers of their two-week "look-see" period.

The HDB has since been alerted to the problem and it told CASE last week, that it would implement several measures to enforce the two-week "look-see" clause.

HDB says that's because buying a home is a long-term financial commitment and it is important that buyers consider carefully and carry out the necessary checks.

"HDB has come back to us, and say that they will be taking a few measures. One of these is to issue a general circular to all agents to remind them of the need to inform consumers of the 14-day cooling-off period," said Seah Seng Choon, executive director of CASE.

In addition, HDB is warning housing agents not to tear away the Important Notes page that is attached to every copy of the Option To Purchase form.

"The notes for the option to purchase is on the first page of the Option To Purchase contract. The problem is that the agent tears it away. So it's already there, in the Option To Purchase form. What the HDB wants them to do, is to give a copy of that form to the consumer, and not to tear it away," said Mr Seah.

"Lastly, I would also want to warn all agents that by omitting such material fact, it is a breach against the Consumer Protection Fair Trading Act," added Mr Seah.

Penalties on errant housing agents could range from warning letters, to debarment from HDB's list of agents, and possible licence revocation.

On its part, CASE is telling consumers to make a report if they come across such errant agents.

To increase public awareness, HDB will highlight the two-week "look-see" period in its public seminars on September 3 and 17, and in its advertisements. - CNA :)

jq75

02-09-2005, 08:48 AM

Sept 2, 2005
Lift work on 17 low-rise blocks from year end
800 similar HDB blocks await selection after expansion of Lift Upgrading Programme
By Daryl Loo

RESIDENTS in 17 low-rise HDB blocks around the island will start getting lifts installed from the end of this year, with the decision to include them in the Lift Upgrading Programme (LUP).

The blocks, most of which are more than 20 years old, are in Yishun, Tampines, Bedok, Bukit Batok, Jurong and Bishan.

Low-rise blocks were originally left out of the programme, as the construction costs were considered too expensive.

But National Development Minister Mah Bow Tan announced in March that low-rise blocks would be included after all, after the HDB agreed to foot the larger installation bill.

Since the programme was extended, 17 low-rise blocks have been polled and achieved the required minimum 75 per cent approval rate from residents for work to go ahead.

Eight hundred more low-rise blocks scattered around the older housing estates are still awaiting selection for the upgrade.

At one of the most recent low-rise blocks to go for the programme, Block 515 in Bedok North Avenue 2, 92 per cent of residents voted in favour.

Resident Syed Abu Bakar, 67, who lives on the top floor of the four-storey block, said he is willing to fork out the $1,500 that he was told he may have to contribute, as he has great difficulty climbing the stairs because of his asthma.

The MP for the area, Mr Chew Heng Ching (East Coast GRC), said the actual costs have not been worked out, but will range from $500 to $3,000. 'It might cost more because new lift shafts need to be built, but HDB will be subsidising a larger sum,' he said.

Dr Teo Ho Pin (Holland-Bukit Panjang GRC), who has a number of low-rise blocks in his constituency awaiting the LUP, estimates it costs $150,000 for a new lift to be added to a low-rise block, compared with $250,000 for an upgraded lift in a 25-storey point block.

The cost is higher for low-rise blocks, however, as fewer units split the cost. But with a cap on residents' contributions set at $3,000 by the HDB, low-rise dwellers need not worry about paying much more.

There is also a possibility that the cost of lift upgrading could drop. Prime Minister Lee Hsien Loong announced on Sunday a pilot scheme to use more cost-effective lift systems that require less building work and are cheaper to install in low-rise blocks.

If they work well, these are to be installed in more blocks to benefit a larger number of elderly residents.

According to lift manufacturers, new technology has reduced the size of the machines that power lifts, allowing them to be installed without a special machine room on the roof.

These lifts have been in use overseas and in private condominiums in Singapore since 2000, they said, and should be suitable for low-rise HDB blocks.

This is good news for Madam Koh Eng Lan, 72, who lives on the top floor of a four-storey Bedok block. 'A lot of my older neighbours have already moved out because they cannot stand climbing the stairs. I don't really want to move, but my legs are getting weaker,' she said.

The Lift Upgrading Programme, which began in 2001, will cost an estimated $5 billion by the time is it completed. The Government has set a target of full lift access in nearly every HDB block by 2015.

darylloo@sph.com.sg

jq75

02-09-2005, 07:22 PM

Bend rules for special cases?

Friday • September 2, 2005

Letter from SHARON CHEW

THE issue of elderly care was featured in Prime Minister Lee Hsien Loong's National Day Rally speech.

My parents belong to a generation that holds to the belief that their life will be well taken care of — with their fully paid-up flat, CPF savings and having faith that their "never upgraded" insurance policy would handle all their medical expenses.

When my mother was diagnosed with dementia, that illusion fell apart.

To make things worse, she was involved in a hit-and-run accident in May that left her with a fracture. When her injury heals, she will start rehabilitative therapy to help her walk.

But my brother and I are not comfortable leaving her all alone with a maid in the flat.

Also, the high medical expenses and the cost of hiring of a caregiver are a drain not only on her savings but on ours too.

So we decided to help her sell her flat and use the sales proceeds to meet her living expenses. The plan is to rent her a flat with lift-access on every floor and close to my grandmother, who will take care of her.

We applied to the Housing Development Board (HDB) and hoped that my mother would be given a waiver on the 30-month waiting period. (Under current rules, my mother must sell her flat 30 months before applying for a rental flat).

HDB rejected our application — even after we sought help from our MP Chay Wai Chuen and sent in letters detailing our difficulties.

Shouldn't exemptions from "policy" be granted to those with special needs? Where is the flexibility the Government says it is promoting?

I wonder how many children, who at their wits' end, have resorted to putting their parents in a nursing home.

Our love for our mother is strong but her condition is putting a huge stress on our lives.

Like many Singaporeans, we struggle to balance work and family commitments. (My brother's baby is on the way).

We just want to make our mother happy in her remaining years and all we ask for is a little consideration from HDB.

jq75

04-09-2005, 01:32 PM

Sept 4, 2005
Window rivets: No deadline extension

Home owners will have to retrofit windows by Sept 30 as it is necessary to ensure public safety, says minister

By Chua Kong Ho
GET moving and get a contractor to replace those aluminium window rivets with stainless steel ones.

The Sept 30 deadline for doing so stays. National Development Minister Mah Bow Tan made it plain last night that tardy residents will not be given an extension beyond this month.

It is normal for a small group to wait until the last minute, he noted, but public safety demands that the change be made.

'We're trying to make sure that nobody gets hurt, or worse, gets killed,' Mr Mah told reporters after opening an exhibition in Tampines.

He assured that those who needed help will get a hand to retrofit their windows by the deadline, which opposition MP Chiam See Tong wants extended by three months.

Mr Chiam made the call yesterday when he issued a statement urging the National Development Ministry to consider the plight of poorer flat owners.

In response, Mr Mah said: 'I would like to urge Mr Chiam not to politicise this issue, because what we're trying to do here is save lives. It is not to make life difficult for some people.'

According to the Building Control Authority (BCA), 187,000 homes need to have their windows fixed. But owners of 9,000 HDB flats and 16,000 private apartments have yet to do so.

The one-year grace period given to these owners to replace the aluminium rivets on their casement windows - those which open outwards - with stainless steel ones, ends at the end of this month.

Those who fail to do so could be jailed for up to six months and fined up to $5,000 under the law enacted after a spate of falling window cases.

Since 2000, 415 windows have fallen from homes. Over 80 per cent of these were casement windows fitted with aluminium rivets. The rest include sliding windows with worn-out safety catches and those that had jumped their tracks.

Residents are likely to scramble to comply because contractors have their hands full.

Said Pasir Ris resident Jason Lim, 32: 'I'm free only on weekends and they're always fully booked on Saturdays and Sundays.'

Ms Selin Sim, director of Alumex Alliance Holdings, said she and her staff have received calls as early as 4am, asking for quotations or an appointment to retrofit the windows.

'It's crazy. The calls have been non-stop.'

In opening the Tampines exhibition, Mr Mah said he hoped more Singaporeans will offer ideas on how to make Singapore a vibrant and global city - the theme of Prime Minister Lee Hsien Loong's National Day Rally speech this year.

Suggestion forms are available at the roving exhibition by the Urban Redevelopment Authority, HDB and National Parks Board, which shows plans for the city centre and the heartland.

kongho@sph.com.sg

-----------------------

Govt agencies to continue to help flat owners retrofit windows: Mah
CNA

SINGAPORE : Government agencies will continue to help flat owners who are having difficulties retrofitting their windows before the deadline this month, says National Development Minister Mah Bow Tan.

Mr Mah also stressed the importance of having the windows fixed, in response to media queries that Potong Pasir MP Chiam See Tong had issued a statement requesting for an extension to the deadline.

Said Mr Mah, "I would like to urge Mr Chiam not to politicise this issue because, really, what we are trying to do is to save lives. I mean, we have given residents about one year's notice and frankly the response has been good because almost 90 percent of the flat owners, private and public, have already retrofitted; so it is the last 10 percent.

"I think it's very typically Singaporean -- we wait till the last minute then do something -- but most have already done it. We are now helping them, HDB, BCA, to see what way we can complete it before the deadline expires." - CNA

jq75

05-09-2005, 09:32 AM

Blinds drawn on contractors' brazen bluff

Monday • September 5, 2005

Loh Chee Kong
cheekong@newstoday.com.sg

THE deadline to get your windows retrofitted is less than a month away and a number of homeowners are getting their arms twisted.

Many contractors have too much work on their plate to accept new job requests before the Sept 30 deadline.

And some are trying to put the squeeze on desperate homeowners by inflating their rates and proposing extra replacement work that the new legislation does not call for.

Others are even more brazen.

This is making life difficult for the 9,000 HDB households and 16,000 private homes that have still not got their windows retrofitted.

Businesswoman Doreen Lim, for example, had already agreed to pay her contractor a rate higher than what her condominium management committee had recommended. But when she called to confirm the appointment, the contractor tried to raise the rate even further.

Said a furious Mrs Lim, 34: "If I have to pay a premium, I'd rather pay it to someone else, not a contractor with no principles."

Similarly, Madam Yuan Hong Yan, who lives in Jurong West Street 42, took leave from work to oversee her windows being retrofitted — only to find herself being given the run-around.

Two contractors, not approved by HDB, quoted very high rates. She called HDB and was give a list of numbers to call — to no avail. "None of these contractors can take on any more jobs," she said.

She turned to her friends for other numbers, only to get a taste of some of the tricks contractors are now employing.

"They tell me that apart from the rivets, I have to change other parts of my windows and pay them workmanship fees for that," she said. Told that the new laws did not require this, Madam Yuan said in frustration: "The contractors didn't say it was optional."

Her experience appears to be a common one. When Today randomly called up 10 contractors out of the list of more than 600 companies approved by the Building and Construction Authority, six said they were unable to accept more jobs.

The other four were willing to accept jobs, but all of them proposed replacing aluminium friction stays as part of the package. And while the new laws do not require the replacement of friction stays or corner brackets, none of the contractors mentioned that it was optional.

Worse still, while one was charging $10 to replace a pair of friction stays, another asked for $40. So, in a typical executive flat with 15 window panels, one might end up paying a difference of $450, depending on which contractor one chooses.

All this for a job that is not even required.

It is "simple economics" for contractors to take advantage and increase their prices, said Mr Seah Seng Choon, executive director of the Consumers Association of Singapore (Case).

He pointed out that if a contractor tried to push through extra items — and pretended they were required by the law — he was in breach of the Consumer Protection Fair Trading Act.

"Consumers should get the contractors to state which works are meant to be done in compliance with the law, and which are not," he said.

A spokesperson said that, following numerous complaints, HDB had taken action against 40 errant contractors. And, while replacing friction stays was optional, she said a contractor may discover they are not in good condition and advise the homeowner to change them.

She added: "HDB has briefed the approved window contractors, and reminded them to provide good service and to clarify their doubts to prevent any misunderstanding."

jq75

05-09-2005, 09:43 AM

Rush may lead to shoddy window works

Contractors are bound to take advantage of the situation and accept too many jobs

Monday • September 5, 2005

Letter from
Eugene Yip Tuck Meng

I am concerned that the current bottleneck in window rivet replacement can result in even worse window safety conditions in the long term.

The rush is on, and contractors are overwhelmed with job requests. In order to cope, it is possible that they resort to engaging part-time labourers not sufficiently trained in window works.

It is common knowledge that contractors in the building and construction industry "loan" workers to each other to cope with seasonal business demand. Could our window contractors be doing the same?

I shudder to think that this may lead precisely to what we wanted to avoid — falling windows — in time to come.

The bottleneck situation makes it all the more unlikely that contractors will have time to send their workers for proper training.

They could have trained or qualified supervisors, but the supervisors do not usually carry out the actual rivet replacement work.

When I replaced my flat's window rivets, the supervisor initially came with his two workers. After working out the job scope and cost, he left the workers alone to change the rivets and friction stay.

It seemed as if he had to rush to other sites.

Contractors are profit-oriented. It is natural for them to take advantage of this situation by accepting as many jobs as possible while trying not to increase their costs proportionately.

It is not being naïve to think there will be some short-changing the market.

HDB has tried to address the bottleneck by providing a hotline and an expanded pool of contractors. However, I wonder how it can ensure that contractors only employ trained workers.

We can blame the laggards for the bottleneck and punish them by not extending the deadline. Or, we can consider the long-term consequences of rushed installation and be more flexible in our policy.

Come Oct 1, many of us might feel relieved that Singapore has solved the problem of falling windows. This sense of relief may be based on delusion.

jq75

05-09-2005, 09:52 AM

30-month debarment period is to protect those with a pressing need of a home

Monday • September 5, 2005

Letter from HO SEIN YEAN
Deputy director (rental housing) for director (housing administration) HDB

I REFER to the letter, "Bend rules for special cases?" by Ms Sharon Chew (Sept 2). Ms Chew requested that HDB waive the 30-month debarment for her mother to rent an HDB flat.

HDB provides rental flats at subsidised rates to help those who are unable to buy a flat. Such rental flats are limited in stock and the number of low-income applicants is not small. Hence, there is a need to impose a 30-month debarment period on those who sell their flats and apply for rental flats. This is to prevent ex-lessees from competing directly with other low income households who have more pressing need for rental housing.

Those who have sold a flat would generally have some sales proceeds to rent a room/flat from the open market. With the liberalisation of HDB subletting rules and the enlarged HDB rental market, ex-lessees who need rental accommodation would find the rental rates competitive and affordable.

Notwithstanding this, HDB does exercise flexibility on a case-by-case basis to waive the 30-month waiting period, if the applicants are in severe financial hardship and are unable to find alternative housing after the sale of their property. We have explained our rental flat rationale to Ms Chew on two occasions in writing.

Based on our evaluation, Ms Chew's mother will have sufficient sales proceeds upon the sale of the flat and will have various options available. If her mother needs to stay near her grandmother, she may consider buying a smaller resale flat from the open market or renting a flat from an eligible HDB lessee under the approved Subletting Scheme.

Alternatively, she could also consider applying for a studio apartment which may be more suitable for her needs, since it is equipped with elderly-friendly features and facilities. Another option would be for Ms Chew's mother to sublet her flat for income to meet her expenses while she moves in to stay with her relatives or children.

jq75

07-09-2005, 10:51 PM

Govt to tweak rules for HDB flats built by private sector

The government is easing housing guidelines for the first batch of flats to be built by the private sector under HDB's Design, Build and Sell scheme (DBSS).

Under the scheme, private developers will undertake the designing of the flats, overseeing construction, and selling the flats directly to eligible buyers.

National Development Minister Mah Bow Tan says the easing of the housing guidelines is aimed at offering more flexibility to developers.

"The DBSS project is a very new project and one of the things we wanted to do for this is to give as much flexibility as possible to the developers but still within the constraints of public housing. In other words, we want them to add value to the process without making the flats unaffordable," he said.

Among the changes, the government will remove the resale levy from the sale of the first HDB flat for home buyers who wish to upgrade to the new flats built under the scheme.

The current resale levy ranges between 20 and 25 per cent, depending on flat types.

Minister Mah said: "The resale levy is lifted for the reason that these DBSS flats are going to be sold at market prices. So to that extent they are no different from HDB resale flats."

However Mr Mah said the government would not abolish the resale levy rule across the board but would review how it's being implemented.

Property agents believe the change is a move in the right direction.

Mohamed Ismail, CEO of Propnex, said: "The removal of the levy is going to have a great impact. There's also a lot of value for people buying these flats in the new pilot scheme."

Other property watchers say though the move will boost demand, it's unlikely to affect sales of entry-level private residential properties due to price differences.

Other changes include the lifting of the Married Child & Third Child Priority Schemes and priority extended to first-time flat purchasers one month after the flats are launched.

An $8,000 monthly income ceiling will also be set for all flat types to help developers decide on the right flat mix and pricing.

The HDB is also making it more attractive for private developers to participate in public housing projects.

One of the incentives is that they can price their flats based on what they feel the market is prepared to pay.

Industry watchers say these are aimed at increasing confidence among developers.

The question is: will they bite?

Joseph Tan of ** Richard Ellis said: "The types of developers that would like and would probably come in are the ones that have done HDB works in the past, or contract works with HDB. These are the builders that know the ins and outs and know how to manage cost."

HDB will also provide more information to developers to help them better understand the public housing market.

These include supply and demand trends in the HDB resale market, the number of bookings for new flats and other relevant statistics.

A site along Tampines Avenue 6 has been picked for the DBSS pilot project and a tender is expected to be called in the next two months.

Mr Mah was speaking at the HDB's awards presentation ceremony on Wednesday.

HDB gave out its annual Design & Quality awards to six winners.

They are JGP Architecture, Surbana International, Teambuild Construction, Chip Eng Seng Contractors, Fujitec Singapore and Hitachi Date System. -

jq75

08-09-2005, 08:59 PM

Sept 8, 2005
Boost for 'design-build-sell' flats
New rules make them more affordable; developers get flexibility

By Daryl Loo
BUYERS of private developers' 'design-build-sell' flats will enjoy all the concessions accorded to HDB clients - plus a little extra, under new rules announced yesterday to sweeten the scheme.

First-time buyers of DBSS flats will still receive a CPF housing grant of up to $40,000, and young families moving into the same estate as their parents still get priority to pick their flats.

The cherry on the top for these buyers: Those who bought a new flat from HDB previously won't have to pay the customary resale levy. They would have had to pay up to 25 per cent of the resale price of their first flats to the Housing Board before being allowed to buy a second subsidised home.

The result: Such flats will become more affordable to many more buyers. Many HDB owners have complained in the past that the levy is a roadblock in the way of their buying new flats.

Widening the market, in turn, could attract more interest from private developers, who had reacted cautiously to the Design, Build and Sell Scheme (DBSS) when it was first announced.

With more developers interested, buyers can expect better designs and quality.

Developers and property analysts also pointed to the waiver of the resale levy as the key incentive. 'This will really drive up the demand for the DBSS flats as they will be much more affordable,' said Mr Mohamed Ismail, chief executive of real-estate firm PropNex.

National Development Minister Mah Bow Tan announced the terms for the DBSS buyers, as well as other sweeteners for private developers at a public housing design seminar organised by HDB yesterday.

The scheme was given the go-ahead in Parliament last month, as part of the Government's experiment to provide more housing choices to flat buyers. A pilot 2.4 ha site on Tampines Avenue 6 will be tendered out later this year, on which some 500 units can be built.

Private developers were initially lukewarm to the scheme, citing uncertain demand, especially with a surplus of about 10,000 new flats.

Mr Mah sought to allay their concerns yesterday, saying the winner of the tender will be given 'maximum flexibility' in the design and layout, as well as the types of flats they want to include.

This means a developer will be able to build any flat type, from studio apartments, to three-room and executive flats, based on demand. HDB will provide tenderers with more public housing data, such as demand and supply trends for new and resale flats to help them 'better gauge the response to the scheme', Mr Mah said.

Developers also get more leeway in the modes of payment employed under the scheme, such as the use of deferred payments, commonly used for sales of private condominiums.

Chip Eng Seng Corporation's executive director Yeo Siang Thong reacted warmly to the more flexible terms, noting that with the firm's experience in both HDB projects and private condominiums, 'it will be quite suitable for us to do this'.

Another private developer, who declined to be named, said he intends to wait for more details before committing, as the price of the DBSS flats hinges on how much HDB is willing to sell the Tampines site.

Knight Frank director of research Nicholas Mak expects the DBSS flats to cost more than HDB's Design and Build flats, but less than executive condominiums.

But buyers should not expect the DBSS flats to look like premium private condominiums, said Mr James Goh of JGP Architecture.

Instead, he said, 'developers will really have to come up with interesting and unique ideas,' such as balconies.

darylloo@sph.com.sg

jq75

09-09-2005, 09:33 AM

Sept 9, 2005
How does HDB decide which housing estate gets new lifts?

I live in Toh Yi Drive, a mature HDB housing estate. There are no lifts at my floor.

I need to walk a long distance from the lift and climb up the stairs before reaching my doorstep.

Imagine the situation for my neighbours, who are senior citizens. Climbing up the stairs is no difficulty to the young.

However, it is tough for the elderly to walk up the stairs while carrying bulky items.

I applaud the Government's announcement to complete the lift upgrading programme (LUP) within 10 years. The process is considered lengthy.

I wonder how long the elderly have to wait to enjoy the new lifts at every level. In view of the greying population, the HDB should consider implementing the LUP at a faster rate.

It is reasonable that many factors have to be considered before implementing the LUP. One of them is availability of funds.

Taking into consideration the factors, the questions are:

How does the HDB decide which housing estate get new lifts first?

Why is the LUP implemented in the other estates at a later date, and isn't it fairer to implement the LUP island-wide concurrently?

My family cannot wait to vote in support of the LUP in our housing estate.

Wong Teck Tian

jq75

15-09-2005, 10:18 PM

Sept 15, 2005
HDB RESALE LEVY
A good time to move on?

By Daryl Loo
THE call for the HDB resale levy to be removed is getting stronger.

Those asking for the change, including MPs, property analysts and flat-owners, say it served an earlier purpose of cutting the waiting time for flats but is now a burden on Singaporeans who want to downgrade.

The resale levy is imposed on owners of new HDB flats, and those who bought resale flats with a CPF housing grant, and who now want to sell those to buy a flat from HDB.

It is a sizeable amount, ranging from 10 to 25 per cent of the resale price of the flat or 90 per cent of its valuation price, whichever is higher. The bigger the flat, the higher the levy proportion.

Hence, to sell a five-room flat for $400,000 and buy a new flat, you would have to pay a 25 per cent levy of $100,000, in cash, to HDB. If you had paid $350,000 for the new flat, you could be incurring a $50,000 net loss.

HDB has defended the policy as necessary to allocate its subsidies fairly, favouring first-time buyers over those who are coming back for 'a second bite of the cherry'.

But those who rail against the policy say it unfairly penalises Singaporeans who need to downgrade due to financial difficulties: making them pay more to do so.

MP Amy Khor, chairman of the GPC for National Development, said: 'The rule is outdated and needs to be modified. It worked when property prices were rising, but not when the market has dipped significantly.'

Prices of HDB resale flats have dropped some 22 per cent since 1996, and HDB should thus look into rescinding the resale levy 'for those who sell their first flat purchased from the HDB at a loss and wish to buy another HDB flat', said Dr Khor.

It is not a small problem, said MP Ang Mong Seng (Hong Kah), who in January appealed in Parliament for the policy to be changed.

With current home prices much lower than 10 years ago, he had in the past two years received five appeals from residents who had trouble downgrading due to the levy.

Multiply them by the 84 MPs in Singapore - that is perhaps more than 400 families facing such a dilemma.

Said Mr Ang: 'I think residents will be very happy if the Government at least cuts the resale levy by 5 per cent.'

But others have suggested that the HDB scrap the levy altogether, and instead charge a premium on new flats.

That would allow owners to decide whether they can still afford them while fulfilling the purpose of giving first-timers a higher subsidy, said Mr Albert Lu, managing director of C&H Realty.

The idea is not new. Before 1997, flat-owners had the choice of paying either a levy, or a 20 per cent premium on the second flat.

In 1997, to curb property speculation and to cut the time that first-time applicants had to wait - more than four years in some cases - the Government chose the levy option. The premium on new flats was removed.

Those measures worked well. Too well in fact.

Mr Nicholas Mak, director of research at Knight Frank, said it was inconceivable back in 1997 that the HDB would ever be stuck with more than 10,000 unsold flats, 'which it is now trying to sell through brochures, snazzy showflats and advertisements'.

Real estate agents suggest a happy solution: drop the resale levy to allow existingflat-owners to buy a cheaper new flat, and HDB can clear its oversupply at the same time.

As Mr Lu said: 'It does not make sense to leave 10,000 flats lying vacant, when they can easily be sold just by removing the levy.'

Mr Mohamed Ismail, chief executive of real-estate firm PropNex, predicted that should the levy be scrapped, some 10,000 existing owners may very well put their flats on the resale market to pick up the cheaper surplus HDB flats.

He admitted that the effect of such a move would benefit housing agents: more resale deals equals more business.

'But to be fair,' he said, 'buyers benefit too, as removing the levy will also prompt sellers to price their flats reasonably as they no longer have a penalty from the levy.'

The additional stock of resale flats coming on the market could benefit young couples, as the flats tend to be in mature estates and would enable the newly-weds to be closer to their parents, he said.

Asked about the resale levy last week, National Development Minister Mah Bow Tan said that it would be reviewed, but not removed.

'The objectives are still very important to maintain. It allocates housing subsidies more fairly. But how we implement the resale levy, it is something we are still looking at,' he had said.

Thus far, HDB has shown some willingness to be flexible with the levy when certain needs have to be met.

For instance, the levy does not apply to elderly Singaporeans who want to sell their flat and buy a HDB studio apartment, nor to those who want to buy a flat from private developers under the new Design, Build and Sell Scheme.

And in an attempt to clear its surplus stock this May, HDB had put up 100 of its new flats up for sale as 'resale' units, removing the requirement for buyers to pay a resale levy if they were giving up older flats for these new units.

The response has been telling: 91 of the 100 flats were snapped up within a month.

The question now is if, and when, the HDB will take action and do more.

darylloo@sph.com.sg

Clay Pot

18-09-2005, 09:38 AM

CPF property rules: 4 things you may not know

It pays to be familiar with housing rules as this could save you money and heartache
By Leong Chan Teik

http://www.straitstimes.com.sg/mnt/media/image/launched/2005-09-18/18invest.jpg

'Any hiccups or mistakes you make because you are unaware of the rules may have serious repercussions on your financial future.'
-- MR DENNIS NG of mortgage broker Leverage Holdings, on home owners being unfamiliar with CPF rules which, in the first place, are not exactly the easiest to understand or keep track of

ONE home-loans package charged 2.6 per cent interest. Another was as low as 1.2 per cent.

No prizes for guessing which one many people went for in the past two years or so.

The first package was an HDB concessionary loan. The second, a bank loan.

But your winning guess is something of a booby prize - the interest rates on bank loans have now risen sharply, while the HDB loans rate has not budged at all.

Bank rates fluctuate according to the price banks pay to borrow the money they lend out, but the HDB rate is pegged at 0.1 percentage point above the interest rate on Central Provident Fund (CPF) Ordinary Account savings.

The latter rate, in turn, is based on the 12-month fixed deposit and savings rates of local banks.

The CPF Board recently computed the bank deposit and savings rate to be 0.59 per cent but is continuing to pay 2.5 per cent for your Ordinary Account because it is the minimum stipulated in the CPF Act.

Bank interest rates for housing loans vary according to whether they are fixed or floating rates.

For example, fixed rates for loans up to 80 per cent of the value of a property now stand at around 2.75, 3.75 and 3.5 per cent for years one, two and three, respectively.

Paying such higher interest is only one of the woes of loan converts.

For they also now have no avenue to switch back to HDB concessionary loans.

Some borrowers may not know that a limit on the use of CPF savings for housing applies to them, says Mr Dennis Ng, a certified financial planner and co-founder of mortgage broker Leverage Holdings.

For HDB concessionary loans, the CPF limit does not apply at all, which is why Mr Ng says he has advised HDB clients with such loans not to switch to bank loans.

This is an example of home owners being unfamiliar with CPF rules, which in the first place are not exactly the easiest to understand or keep track of.

Says Mr Ng: 'Any hiccups or mistakes you make because you are unaware of the rules may have serious repercussions on your financial future.'

Do you know the following?

CPF withdrawal limit

GONE are the days when you can rely on your CPF savings to pay for your mortgage until the end of its term.

Since January 2003, if you buy a private property, or refinance your HDB loan with a bank, or buy a HDB flat with a bank loan, you are subject to a cap on the CPF savings you can use for the mortgage.

This year, the cap - also known as the CPF withdrawal limit - is 138 per cent of the so-called valuation limit, which is the lower of the valuation or purchase price.

The CPF withdrawal limit will fall to 132 per cent and 126 per cent next year and 2007, respectively, for purchases made in those years.

The rate of 120 per cent will apply from 2008 onwards.

Beware: At some point in the future, you can expect to pay cash for your entire mortgage instalment.

If your loan's interest rate is 5 per cent from the third year onwards, be prepared to cough up cash as early as after the 20th year, says chartered financial consultant Leong Sze Hian.

'How many Singaporeans can service their housing loans entirely with cash after two-thirds of a 30-year loan period?

'Home buyers may like to consider carefully before buying,' he says.

The scenario he sketched is not as dire right now.

It applies from 2008 when the CPF withdrawal limit - now at 138 per cent - hits rock bottom at 120 per cent.

On the other hand, things are worse than many home owners realise.

The reason: En route to the CPF withdrawal limit, home owners will reach the milestone of 100 per cent of the valuation limit.

Whether they can use their CPF savings further for their mortgage depends on whether they have enough money in their Ordinary and Special Accounts to be set aside for the cash component of the Minimum Sum.

This cash portion amounts to $45,000 currently and will rise to $60,000 by year 2013.

If this requirement is met, what CPF savings is available for the continued servicing of the mortgage is known as the Available Housing Withdrawal Limit (AHWL).

It is not the easiest calculation to make, but thankfully, the CPF website has a worked example at www.cpf.gov.sg

Beyond the AHWL, the ultimate limit is the CPF withdrawal limit which, as stated above, is currently 138 per cent of the lower of the valuation or purchase price of the property.

Do not think that if you already own a property, you will be spared the effects of the future declines in the CPF withdrawal limit, says Mr Leong.

'Every time you refinance your loan, and most of us will do so every few years to enjoy lower interest rates, the prevailing CPF withdrawal limit will then apply to you too,' he says.

Buying old property

FANCY that old apartment in bustling Chinatown?

Prior to July 19, you could not use your CPF savings to buy a private residential property whose remaining lease was less than 60 years. Now you can.

Beware: To begin with, you can use CPF savings only if the property has a remaining lease of at least 30 years.

Even then, you cannot just buy any old property. The remaining lease must be at least enough to cover you until you reach 80 years old.

So if you are 35 years old, the property must have a remaining lease of at least 45 years at the point of purchase, says Mr Ng of Leverage Holdings.

In joint purchases, the age of the youngest owner using CPF savings for the mortgage repayment will be used to determine the minimum lease required.

Note that banks still do not give financing for the purchase of properties with a remaining lease that is less than 60 years, says Mr Lim Kok Guan, managing director of Home Advantage, a mortgage broker. Only Hong Leong Finance does, he adds.

Beware: Unlike normal property purchases, you will be more restricted in how much you can use your CPF savings to pay for private residential properties with remaining leases of between 30 and 59 years.

The percentage is calculated according to this formula: Remaining lease when the CPF member is 55 years old divided by lease at the point of purchase multiplied by 100.

So if you are aged 35 and buy a property with a remaining lease of 45 years, the maximum CPF savings you can use is only 56 per cent of the valuation limit, says Mr Ng.

After age 55

IF YOU use the monthly contributions to your CPF Ordinary Account for repaying your mortgage, chances are you will have little surplus in your account.

On reaching 55 years old, you are required to set aside the Minimum Sum, which is for you to withdraw monthly from age 62.

Beware: The Minimum Sum currently is $90,000 of which the minimum cash component is $45,000.

The Minimum Sum will rise to $120,000 by year 2013 with a minimum cash component of $60,000. The Minimum Sum comprises your savings in the Ordinary and Special Accounts.

For example, says Mr Ng, if on reaching 55 years old, you have $20,000 in your Ordinary Account and $40,000 in your Special Account, you have met the requirement. But you cannot use any of that money for mortgage repayment.

The harsh reality is you have to pay cash for the mortgage instalment.

Buying second property

SINCE July 19, the maximum loan you can borrow from the bank has been raised from 80 per cent to 90 per cent of the valuation of the property.

Beware: Note that from July next year, the use of CPF savings for second and subsequent properties will be restricted.

Only the surplus Ordinary Account savings after setting aside the Minimum Sum cash component can be used for mortgage repayment.

In addition, the applicable CPF withdrawal limit is not 138 per cent - as applies to first properties bought this year - but 100 per cent.

chanteik@sph.com.sg

jq75

18-09-2005, 10:31 PM

Sept 17, 2005
Shutters down soon for 93 HDB shops

They will go by year-end after more than half of tenants in eight blocks vote to call it a day

By Daryl Loo
THE votes have been counted and the verdict is in. A total of 93 shopkeepers in eight of 21 HDB blocks targeted by a pilot restructuring scheme have to close shop and vacate their premises by year-end.

There were mixed reactions to the poll results, released yesterday. Those who wanted to be rid of unprofitable businesses and retire cheered the verdicts at the eight blocks, while some who wanted to carry on said they will appeal to be allowed to stay.

The 21 blocks were picked in June in a plan to help struggling shopkeepers by reducing the oversupply of shops. Shopkeepers were told that if more than half the tenants in a block voted to go, everyone would have to shut.

The eight buildings affected are Block 106 Jalan Bukit Merah, Blocks 54 and 55 in Toa Payoh Lorong 5, Block 425 in Bukit Batok Avenue 2, Blocks 1 and 2 in Marsiling Drive, Block 43 in Bendemeer Road and Block 106 in Clementi Street 12. Tenants in the other 13 blocks voted to remain in business.

HDB said it would 'advise the tenants on how they can upgrade their businesses to stay competitive'.

Of the 93 affected tenants, those who want to retire and are eligible will get a $60,000 government payout, while the rest will receive $10,000 each to help them set up shop elsewhere.

Mr Lim Ah See, 65, whose 30-year-old Marsiling Drive department store is one of the units to be vacated, was overjoyed at the news.

'This is great. It's like a weight off my shoulders, after being tied down to an unprofitable business for so many years,' he said.

His plan now is to sell off his remaining wares in the next three months, retire with the $60,000 payout, and 'take it easy, travel around the places in Singapore that I have not had the time to visit'.

But for Madam Ang Ah Keng, 45, owner of a Bukit Batok mini-mart, it was her worst fears confirmed.

She said HDB's $10,000 relocation allowance would scarcely cover the $100,000 she had invested to renovate her shop, which she rented from the HDB in May.

Tenants like Madam Ang do not qualify for the $60,000 payout, as it is given to only those who rented their shops before 2000.

'I just hope HDB can reconsider in special cases like mine,' she said. 'Hopefully, they can at least compensate me for all the renovations.'

MP Amy Khor (Hong Kah GRC) told The Straits Times earlier that she planned to appeal for Madam Ang to at least be allowed to keep her shop for the remainder of her three-year lease.

An HDB spokesman told The Straits Times that shopkeepers who face problems can contact the board to try to resolve the matter.

He said HDB was still reviewing the programme and would announce the next batch of shops selected for restructuring at a later date.

For inquiries, call 1800-8663073.

darylloo@sph.com.sg

jq75

18-09-2005, 10:54 PM

Sept 18, 2005
Window CON tractors

They overcharge customers

Provide misleading information

Do not turn up for appointments

By Jeremy Au Yong
THERE was nothing wrong with the window rivets in Madam F.L. Sum's Serangoon flat, but that didn't stop a contractor from talking her into ordering a new $550 window.

Similarly, businessman Tan Khite Min's Paya Lebar warehouse is exempt from the new window legislation, yet a contractor still told him he needed to pay $340 to have all the rivets replaced.

With just two weeks to go before the Sept 30 deadline for home owners to replace window rivets, some contractors are taking advantage of customers.

Complaints about errant workmen have been pouring in to the Consumers Association of Singapore (Case) and the Housing Board. The grievances range from overcharging to providing misleading information and simply not showing up for appointments.

In the three weeks from Aug 15 to Sept 11, 70 unhappy home owners contacted the consumer watchdog - a telling figure since not a single complaint was received before that.

While it is not known how many complaints HDB has received, it has already taken 49 contractors to task - by imposing $1,000 fines or sending warning letters.

All this comes at a time when contractors are doing brisk business, many having had back-to-back jobs for months as 180,000 homes race to satisfy the new legislation. The new rule, announced in September last year, requires all casement windows (those that open outwards) fitted with aluminium rivets to be retrofitted with stainless steel ones.

The legislation addresses the problem of windows falling when the aluminium rivets corrode.

Renovations are estimated to cost each household between $150 and $270 - depending on the number of windows. Fixing a four-room flat with 20 windows would cost about $230.

No wonder then that Madam Sum was surprised when the contractor told her she would have to pay $550 to fix her one kitchen window - the only casement window in her home. He had advised her to change not just the rivets but the whole window.

The 50-year-old housewife agreed and paid a $150 deposit, but was uneasy about the hefty bill. Calling HDB to check, she discovered that her window was already up to standard.

Repeated attempts to get her money back have failed.

'Never mind that he didn't tell me that my window didn't need to be changed. I offered him $50 for coming down and just wanted $100 back. But he wouldn't even let me cancel the job,' she said.

When contacted by The Sunday Times, the contractor - Mr Kenny Shing - retorted: 'I've already ordered the parts. How am I going to do business if everyone orders and then cancels?'

He also denied any wrongdoing in recommending that the entire window be changed.

'She didn't ask me to check. She asked me to change the rivets. When people ask me to do work, I don't tell them that they don't need the work done,' he said.

He added that he had suggested changing the whole window as it was safer.

Contractor Andy Teo was also unrepentant about not telling Mr Tan that the law did not include industrial buildings.

'If I see the window in bad condition, I will tell them to change. What if the window falls?' he said.

An HDB spokesman said contractors are allowed to advise home owners of other changes besides rivets. But the extra work is optional.

The Building and Construction Authority suggested a simple test for those unsure what their rivets are made of. Aluminium ones show obvious marks when scratched with a coin while stainless steel ones do not.

Both Case and HDB say they view misbehaviour by contractors very seriously and urged those who feel they have been misled to report the matter. According to Case, consumers can take civil action under the Consumer Protection (Fair Trading) Act.

Home owners can also direct complaints or questions to the HDB hotline on 1800-555-6362.

Case is now investigating on behalf of Madam Sum.

She said: 'I don't mind if I don't get my money back. But I want to make sure other people don't get taken in by such contractors.'

jeremyau@sph.com.sg

jq75

19-09-2005, 10:02 PM

Sep 30 deadline to replace window rivets will not be extended CNA

The government will not extend the September 30 deadline for homeowners to retrofit their windows.

National Development Minister Mah Bow Tan says it's not in the interest of public safety to do so.

The law now requires flat owners to change the aluminium rivets of their casement windows to stainless steel ones to prevent the windows from falling out.

Giving an update in Parliament, Mr Mah said 94 percent of households required to retrofit their windows have done so.

Only 12,000 units (4,000 HDB flats, 8,000 private units) have yet to comply with the safety standards.

He said there's no excuse for homeowners not to do so.

But he acknowledged that some homeowners either do not know how to go about doing it or may be facing genuine financial difficulty.

In these cases, they'll be given adequate help by the town councils.

Mr Mah said the Housing and Development Board (HDB) and the Building & Construction Authority (BCA) have already increased the number of hotlines to assist homeowners.

The list of 600 approved contractors is also available online to help meet the increase in demand.

On errant contractors, Mr Mah said the authorities have taken action against 49 of them.

These contractors were involved in malpractices like over-charging and giving poor services.

As the deadline draws near, window contractors across the island are working extra hard to fulfil the retrofitting orders for homeowners.

Jack Oei, director of Success Forever Construction and Maintenance, said: "My company actually increases our manpower from 10 teams to 40 teams and we're putting in a lot of extra hours, try to do up to about 7.30pm, 8pm to clear as many cases as we can. Currently, we have about 1,000 cases queueing up."

Angela Yeo, sales administrator of See Home Services, said: "We can receive 100-200 phone calls in a day." - CNA/ir

jq75

20-09-2005, 08:11 PM

HDB extends half-hourly parking to 7am at 40 car parks

20 September 2005 1928 hrs CNA

SINGAPORE : Motorists may find parking overnight at Housing and Development Board car parks more convenient and cheaper if a pilot project by the HDB is successful.

It is extending the half-hourly parking arrangement at 40 of its automated car parks with the Night Parking Scheme to between 1am and 7am.

This means motorists can choose to pay either a flat rate of $2 or 50 cents per half hour when they park between 1am and 7am.

Currently, the half-hourly parking arrangement applies up to only 1am.

The HDB said the move was to give more flexibility to motorists when they park between 10.30pm and 7am.

If there is positive feedback from residents and visitors, it will consider extending the same arrangement to other Night Parking Scheme car parks using the coupon parking system early next year.

HDB said it would consider extending the pilot scheme to car parks using the coupon parking system if the latest move is well received.

Motorists can call the HDB Car Parks section at 1800-2255432 to more details. - CNA/de

jq75

21-09-2005, 09:54 AM

Sept 21, 2005
Cover bamboo-pole holders when not in use

WE REFER to the letter, 'Dengue threat in HDB laundry pole-holders' (ST, Sept 12), by Mr Peter Foo.

Pipe socket laundry pole-holders in older Housing Board flats are tilted at an angle and come with drainage holes within the flats, allowing for self-drainage. Hence, any rainwater that enters the sockets is minimal and drains off easily.

Residents can also play their part by ensuring that the existing drainage holes are not clogged or sealed up.

In the pamphlets that the National Environment Agency (NEA) distributes to HDB flats, households are also advised to cap the laundry pole-holders when they are not in use. Such plastic caps are available at most provision shops and shops selling household items.

Cutting or drilling an opening beneath the laundry pole-holders is not a viable solution as it will affect the strength of the sockets and pose a safety concern.

New flats come with the newer cloth hanging rack system. For older flats, a purpose-designed drainage opening that discharges water outside the flat is incorporated when existing pipe sockets are replaced with new pipe sockets under the Main Upgrading Programme. There is no problem of water accumulation with these new designs.

Mr Foo mentioned that he had observed several bamboo-pole holders without the plastic covers in his neighbourhood.

We would like to urge all HDB residents whose homes have such bamboo-pole holders to follow this important step in the 10-Minute Mozzie Wipeout.

We thank Mr Foo for his feedback.

S. Satish Appoo
Head, Environmental
Health Department
National Environment Agency

Yap Tiem Yew
Deputy Director
(Property Maintenance)
Housing and Development Board

jq75

22-09-2005, 11:40 AM

HDB notice on window rivets came too late :s8:

LAST Oct 1, legislation concerning aluminium rivets on casement windows in Housing Board flats came into force.

Since then, many HDB residents like myself have got an 'approved' contractor to check our windows and replace the rivets to stainless steel ones.

As was to be expected, many procrastinated, leading to a mad rush to complete the retrofitting before the end of this month.

I had the rivets on my windows changed on Sept 7. Imagine my surprise when I saw a notice from HDB dated Sept 15 posted next to the lift at my block.

The notice was to inform residents that they need not retrofit the casement windows in the block unless they were in an unsatisfactory condition. The reason given was that the casement windows in the estate had been fitted with steel rivets.

Needless to say, I was upset to see the notice about a week after I had paid a so-called 'approved' contractor to have my rivets inspected and replaced.

I wonder if similar notices were put up in other estates as well.

What irked me was that the notice was posted two weeks before the deadline. Why wasn't this information disseminated earlier so that the residents would be better placed to make a decision and prevent them from being taken in by dishonest contractors?

Most residents would trust an 'approved' contractor to advise them appropriately. Now I wonder how many of them have paid for unnecessary replacements.

Susheel John

jq75

22-09-2005, 09:16 PM

HDB residents to enjoy cleaner estates with new assessment system

SINGAPORE : Some 3 million HDB residents can look forward to even cleaner neighbourhoods, and maybe lower conservancy bills.

This is thanks to the introduction of a new standard by SPRING Singapore to assess the performance of cleaning contractors.

A pilot project involving three town councils started in March this year, and promises to yield huge benefits.

How clean is clean?

To answer the question, Bishan-Toa Payoh, Hong Kah and East Coast started adopting what is called Technical Reference 16, an objective assessment system.

They found they could expect cost savings of S$600,000 each year and productivity gains of up to 15 percent.

Serving as a benchmark, it allows town councils to select cleaning contractors, draw up contractual requirements, and measure their performance based on a set of requirements and criteria.

These include stipulating the areas and standards for the cleaning contract, and the performance indicators to be measured.

Previously, town councils awarded contracts through tender, the main criteria being price and headcount with little or no focus on quality or cleaning standards.

The new system does away with fixed head count and focuses instead on measurable performance targets.

That means cleaning contractors will have more reason to automate, improve work processes, and train their workers.

Said Loh Khum Yean, chief executive of SPRING Singapore, "It's a move away from headcounts to outcomes. Through this technical reference, we hope that it will raise cleaning standards, it will help to professionalise the cleaning industry, and, ultimately, it will result in cleaner and healthier estates for our residents."

The pilot project ends in December this year, and other town councils are expected to also adopt the system.

TR 16 is one of 38 "Standardisation Implementation for Productivity" (SIP) projects managed by SPRING Singapore.

Said Mr Loh, "In the SIP projects, we are actually bringing together all the key players in the value chain of an industry, and this will of course include the small and medium enterprises. What we do is to get this group of players to adopt and implement standards that greatly enhance the productivity of that particular industry, and this will bring benefits to all the players there."

SPRING helps companies here implement standards, so that they can become more productive and competitive. - CNA

jq75

23-09-2005, 05:02 PM

Ex-HUDC estate sales hotting up

Waterfront View at Bedok Reservoir is latest to jump on bandwagon

By Joyce Teo
Property Correspondent
THE interest of former HUDC estates in doing collective sales looks to be at an all-time high with the huge Waterfront View Condominium the latest to jump in.

Property consultants said privatised HUDC estates have been approaching them about collective sales, but the work at many is still in the preliminary stages.

Nationwide Realty chief executive Sam Tan, who is helping to sell the 342-unit Minton Rise, said most of the HUDC estates have approached him in the past month.

'But they have to test their own waters first,' he added.

The lure is obvious: A collective sale could reap an owner around 30 per cent more than an individual sale.

Other former HUDC estates known to be keen on cashing in include:

608-unit Gillman Heights;

168-unit Amberville;

660-unit Pine Grove;

618-unit Farrer Court;

560-unit Tampines Court; and

The smaller Lakeview.

Waterfront View on Bedok Reservoir Road moved fast, announcing yesterday an invitation for expressions of interest that closes on Nov 8.

It has yet to secure the minimum 80 per cent approval from its residents for a collective sale but the 809,445 sq ft condo wants to get offers from developers first.

It will then get its 583 owners to vote, said the deputy chairman of its management committee, Mr Kevin Tan. It is the way to 'short-circuit' the process, he said.

The condo had earlier decided to redevelop the complex itself after failing to get reasonable offers to be sold en bloc.

'We wanted to sell it en bloc but that was pre-Eng Cheong Tower days,' said Mr Tan.

The residents have since indicated interest in trying again, he added.

The interest of 99-year leasehold projects being sold en bloc started with the January sale of Eng Cheong Tower.

The block managed to get an unprecedented in-principle approval from the Singapore Land Authority (SLA) to top up its lease before the sale.

Since then, another 99-year project, the 23-unit Evian Condo, has found a buyer.

Ms Tang Wei Leng, the director of investment advisory services at DTZ Debenham Tie Leung, which is marketing Waterfront View, said she hopes to find a buyer at $450 million, excluding an estimated $100 million premium for a lease top-up.

This means each owner would get about $770,000, well above current valuations of $380,000 to $420,000.

The price for the developer works out to about $270 psf per plot ratio and a break-even cost of $510 to $520 psf for the site that could accommodate about 1,400 units of about 1,300 sq ft each, said Ms Tang.

At Minton Rise, where 82 per cent of the owners backed a sale, plans are in place to launch it next month.

It is waiting for the lease top-up approval from the SLA.

Gillman Heights is close to getting 80 per cent approval, but has had to deal with some strong objections.

Amberville is short of about 10 per cent of signatures to approve a sale, while Pine Grove has formed a committee to examine the issue.

But property consultants said the sheer size of some former HUDC projects makes them hard to sell.

'Collecting signatures from 500 owners is a nightmare logistically,' said Credo Real Estate executive director Karamjit Singh.

'The land requires a huge amount of capital investment. It may not be easy to find a large developer to swallow a whole chunk.'
:o

jq75

24-09-2005, 04:57 PM

Sept 24, 2005
Wrong advice on rivets cost him $50

I REFER to the letter, 'HDB notice on window rivets came too late' (ST, Sept 22).

I called more than 20 contractors to have my window rivets changed but could not find anyone to do so. They were either fully booked or did not return my call.

Out of desperation, I called the Housing Board hotline but could not get through. Approaching the Pioneer HDB area office did not help. When I asked the staff if the window rivets in my block needed to be changed, all they could say was, 'Your block more than five years old, must change'.

Finally, when I managed to find a contractor who was willing to check my windows for a fee of $50, he told me that most, if not all, of the windows in my block need not have the rivets changed - they are already installed with stainless-steel ones.

This flies in the face of what I was told by the HDB staff, as our block is already more than five years old.

HDB should have sent the officer in charge of the block to check and advise us - and save us from spending unnecessarily.

Albert Soh

jq75

27-09-2005, 03:09 PM

HDB launches Build-To-Order flats at Sengkang

27 September 2005 1436 hrs

The Housing and Development Board is launching a new housing project in Sengkang under the Build-To-Order System.

Called Fernvale Court, the project will be located at the corner of Sengkang West Avenue and Fernvale Link and will comprise 128 units of 3 room and 372 units of 4-room standard flats.

Standard flats do not come with floor finishes in the living, dining and bedrooms.

However HDB offers buyers the option of having internal timber doors and ceramic flooring installed in their units, at additional cost.

Applicants interested in the 3-room flats must have a monthly household income not exceeding $3,000 and must meet other eligibility conditions like citizenship, family nucleus and non-ownership of private residential property.

Those looking to buy the 4-room flats must have the usual income ceiling of $8,000.

Interested buyers can visit HDB's showroom at Habitat Forum located at the HDB Hub. - CNA /ch

jq75

27-09-2005, 03:09 PM

Sept 27, 2005
HDB takes back four flats after owners broke rules

THE Housing Board repossessed four flats last year after three owners were found to be subletting without authorisation and the fourth had harboured illegal immigrants.

The board also took action against another 106 owners and tenants for subletting their flats without prior approval.

In these cases, offenders were fined between $2,490 and $20,370, while 19 tenants had their agreements terminated.

HDB said it has dealt with about 300 cases of unauthorised subletting over the past three years. Flats are usually repossessed from repeat offenders.

The punishment is more stringent for those who harbour illegal immigrants or overstayers.

Those found guilty can be sentenced up to a maximum of two years' jail and fined up to $6,000.

In March, the Housing Board relaxed its policy on subletting an entire flat.

Those who have paid off their HDB loans and stayed in their flat for at least five years are allowed to rent out their whole flat, while those with outstanding loans can do so only after they have lived there for 10 years.

However, written approval from the HDB is still required.

jq75

27-09-2005, 03:14 PM

Sept 27, 2005
Estate upgrading a bane for this family

AFTER two years, the upgrading exercise in Bukit Batok East Avenue 4 is ending. However, the inconvenience and grief caused to my family are immeasurable.

At our block - 254 - you can still feel the dust and filth settling; you hear people complaining about the new stainless-steel railings around the estate which, due to bad design, is forcing residents to walk farther; when it rains, we still have to walk in the rain from the carpark.

It may still be bearable to most folks. However, this is doubly painful for my family.

The new lift serves every floor except ours despite our contribution of $3,000. My mother, who is not a smoker, mysteriously caught lung cancer and is given less than two years to live.

Weak from cancer chemotherapy treatment and wheelchair bound, we have to lift her up and down the stairs.

Additionally, the design of the stainless-steel railing below the block, and the lack of a wheelchair ramp at the carpark, make a simple journey from the block to the carpark a nightmare.

We have to wheel my mother around three blocks of flats, unsheltered from the rain, then around the shiny railing, to get from the carpark to our block. Traversing such a long distance causes her extreme discomfort, dizziness and nausea.

Has the upgrading exercise improved our quality of life? No. Has the value of the block gone up? Barely.

Cost to my family? Immense emotional pain - without even counting the money spent on cancer treatment.

I would appreciate an explanation as to why there is such poor project planning, inadequate concern for the quality of air during HDB upgrading, and a lack of design consideration for the handicapped.

Chen Mei Ling (Ms)

jq75

28-09-2005, 05:08 PM

Sept 28, 2005
HDB offers new 3- and 4-room flats in Sengkang
They will be built only if about 70% are booked

By Goh Chin Lian
THE Housing Board is putting up for sale 128 three-room and 372 four-room flats in Sengkang, midway between Fernvale and Layar LRT stations.

The three-room units, at 69 sq m, are expected to go for between $96,000 and $117,000, and the four-room flats, at 94 sq m, between $138,000 and $177,000.

These standard flats, which do not come with floor finishes in the living and dining areas or bedrooms, will be built only if most of them, say 70 per cent, are booked.

Build-to-order projects offered in the Fernvale area in the past year have attracted varied responses.

The HDB gave the green light to build Fernvale Grove after it secured nearly 90 per cent bookings for its 156 three-room units - the first to be offered to the public by the HDB in 19 years - and 352 four-room flats.

However, it canned Coral Green, when only 53 per cent of its 655 four-room premium flats were taken up.

The new apartments, called Fernvale Court, are located at the junction of Sengkang West Avenue and Fernvale Link.

They are a few minutes' walk from the LRT stations, which are already open and linked to Sengkang MRT station and Compass Point shopping mall.

A new commercial development with a supermarket and eating outlets is expected to be built near Fernvale LRT station by the middle of next year, the HDB said in a press statement yesterday.

It plans to develop more build-to-order projects in the area.

The chief executive of property agency PropNex, Mr Mohamed Ismail, reckons the new units are affordable and will be popular.

The three-room units are about 20 per cent cheaper than resale flats of the same size in neighbouring Hougang estate and the four-room flats at least 20 per cent cheaper than similar-size resale flats in Sengkang, he said.

Home buyers have until Oct 17 to send in their application. Allocation of the flats is planned for December.

On the build-to-order project Coralinus in Punggol Central, launched in July, the HDB told The Straits Times that 74 per cent of the 369 four-room premium flats have been taken up.

It said it will go ahead and call the tender for the construction of the flats.

jq75

29-09-2005, 12:50 PM

Sept 29, 2005
Deadline extension for some rivet jobs
Extra time will be granted to home owners facing special circumstances

By Daryl Loo
TOMORROW is the deadline for home owners to have their windows retrofitted, but the authorities are willing to allow short extensions to those who qualify.

Extensions will be granted to those who provide proof to the Building and Construction Authority (BCA) that they have arranged appointments with contractors.

Exceptions can also be made for special circumstances such as a recent death in the family or pregnancy. Families with expectant mothers can undertake the work after the birth. Private estates earmarked for an imminent collective sale can also ask to be exempted.

Owners have complained that the rush to beat the deadline to replace aluminium window rivets with stainless steel ones has made it difficult to secure contractors.

About 1,000 home owners, half in HDB flats and half in private homes, have informed the BCA that they will miss the deadline. By Sept 15, over 94 per cent of the 187,000 affected households had changed the rivets, leaving 4,000 flats and 8,000 private homes.

The Government has warned that those who fail to comply could be jailed for up to six months and fined up to $5,000. The law was enacted after a spate of cases of falling windows.

For home owners who are late, the BCA said it 'will consider withholding enforcement action for the time being on a case-by-case basis'. It added that those who still have problems with meeting the deadline should contact HDB (1800-555-6362) or BCA (6325-8677) for assistance.

But home owners should be aware, the BCA said, that should any of their windows fall in the meantime, they can still be liable for a fine or jail.

Mr Albert Choo, the owner of window-maker Teck Guan Aluminium, said he receives up to 200 calls a day from home owners, and is fully booked past the deadline. He informs the BCA of jobs scheduled beyond the deadline, as proof that these owners will soon have their windows fixed.

Tampines resident Aminah Oman, 40, said she can sleep easier now that she has some leeway. She had been in a panic the past two weeks because she could not find a contractor to fix the windows in her four-room flat.

'I called about 10, 20, a day but they're either fully booked, or some tell me 'can rush, but you have to pay extra',' said the housewife.

Mrs Angela Ang, 34, of Boon Lay, said one contractor quoted $300 to fix eight windows, much higher than the approximately $100 the HDB said it should cost.

Complaints to the Consumers Association of Singapore and the HDB about contractors who overcharge have risen in the past month. The HDB said it has so far taken action against 55 contractors, 10 of them for overcharging.

The HDB said flat owners can call its retrofitting inquiry line to report poor service or workmanship.

Home owners who have completed their retrofitting are glad to be rid of the chore. Mr Sebastian Ooi, 45, endured two hours of noise at his Tampines four-room flat as workers dismantled and retrofitted his windows yesterday. He was relieved the ordeal was finally over.

He became aware of the changes - and penalties - only recently. 'This is costing me a few hundred dollars. I don't think it's worth it, but what can I do? It's the law,' said Mr Ooi.

jq75

29-09-2005, 12:52 PM

Sept 29, 2005
No smoking rule in HDB lifts often flouted with impunity
I am writing to inquire about HDB's stance on smoking in lifts.

It is a very unfortunate that on some days when I enter a lift in my block, the first thing I encounter is the smoke left behind by someone who had been smoking in it.

This has created a very uncomfortable situation for non-smokers like me as I have to share the smoke with the smoker. What about young children who are more likely to be affected by cigarette smoke?

There are signs inside the lifts to remind people that smoking is strictly prohibited, but some residents ignore them and persist with their inconsiderate act.

I remember once telling a man that it was incorrect to smoke in the lift and the next thing that happened was that a slipper was thrown at me after he alighted at his floor.

The no smoking rule applies in air-conditioned places now and in coffee shops from next year. Will the law be enforced strictly by the authorities?

Neo Aik Ghee

jq75

29-09-2005, 10:29 PM

jq75

30-09-2005, 05:55 PM

HDB to change peg for its market interest rate
29 September 2005 1917 hrs

The Housing and Development Board is revising the peg for its Market Interest Rate.

This will affect some 78,000 existing homeowners who took up market interest rate mortgage loans from HDB for flat purchases or to finance upgrading programmes.

From October 15, the interest rate will be pegged to an Adjustable Rate Mortgage (ARM) Index.

The index is computed based on the prevailing average of HDB housing loan rates of the top six banks, subject to the floor of the HDB concessionary rate.

HDB says the index stands at 3.5 per cent in September.

It will be reviewed on the 15th of every month.

The interest rate was formerly pegged to Credit POSB which no longer exists as a legal entity.

There will be no change to the interest rate for HDB concessionary loans, which is currently pegged to the CPF Ordinary Account at 2.6 percent. - CNA

Sept 30, 2005
HDB to peg market-rate loan rates to six banks

By Daryl Loo
THE Housing Board is changing the way it calculates the interest on its market-rate mortgages - but it is not expected to have any significant impact on repayments.

Starting on Oct 15, the HDB will peg the interest for market-rate loans to the rates charged by a selection of six banks, instead of just DBS Bank.

HDB had pegged its rates to those charged on loans granted by the former Credit POSB, which became defunct after POSB merged with DBS in 1998. Since then, HDB has pegged its rate to that charged by DBS on former POSB loans.

By pegging to more banks, analysts said, HDB's rates will be a more accurate reflection of market conditions.

'Previously, pegging to just POSB was good for borrowers, as it traditionally had a low interest rate compared to others,' said Mr Eugene Lim, real estate firm ERA Singapore's assistant vice-president. 'But now that it is just DBS, it will be fairer to compare with more banks.'

The six banks are picked based on their share of mortgage loans for HDB flats, and this selection will be reviewed every October. The first group of banks are Citibank, DBS, Hong Leong Finance, OCBC Bank, United Overseas Bank and Standard Chartered Bank.

The new rates will be reviewed monthly.

The changes will not have too great an impact on home owners' interest payments as mortgage rates do not fluctuate wildly, said Ms Lee Siew Luan, senior consultant of financial advisory firm Providend.

The change affects about 78,000 market-rate borrowers, a tenth of all HDB flat owners.

Those with HDB concessionary loans will not be affected, as they are still pegged to the Central Provident Fund Ordinary Account interest rate, plus 0.1 per cent. The rate is now at 2.6 per cent. HDB's current market-rate mortgage charges 3.5 per cent interest.

The HDB stopped providing market-rate loans in 2003, leaving the business to commercial banks. The loans were given to flat buyers who did not qualify for HDB's concessionary loans, including permanent residents, those who earn $8,000 a month or more, and those who had taken concessionary loans twice.

jq75

01-10-2005, 01:07 PM

Oct 1, 2005
Window rivets: Last-minute rush to meet deadline

HOME owners were busy yesterday making last-minute phone calls to get contractors to retrofit their windows, in order to meet the midnight deadline.

Contractors like Mr Lim Ju Ho had one of their busiest days ever, but because fewer than 12,000 - or 6 per cent - of affected households had yet to fix their windows, the deadline passed without much fuss.

Some home owners opted to ask the authorities for an extension. Others just sat tight, not wanting to pay the higher-than- normal charges of some contractors who made a killing in the frenzy to meet the deadline.

There were also a few home owners who, despite all the publicity surrounding the issue, became aware of the need to change their rivets only yesterday, when reporters asked if they had done so.

Home owners with casement windows five years or older must change their aluminium rivets to stainless steel ones, or risk a fine of $5,000 and six months' jail.

The order, which came into effect yesterday, was made after rising incidents of falling windows.

And when the authorities start making their rounds to inspect windows, it will get even more difficult to get through on the phone to contractors like Mr Lim.

He is one of 650 approved contractors here tasked with inspecting and replacing aluminium rivets.

Mr Lim said he had been working 12 hours every day for the past two months and getting little sleep.

Yet, he said he endured late-night phone calls from jittery customers, home owners who called him a cheat when he was held up by other jobs, and even those who paid him less than the agreed price after the work was done.

'But we have no time to argue,' he told The Straits Times.

He was still getting calls yesterday from people trying to set up last-minute appointments.

jq75

03-10-2005, 09:36 PM

jq75

04-10-2005, 08:34 AM

Not a false dawn

Property market optimistic as private home prices make biggest gain in five years

Tuesday • October 4, 2005

Christie Loh
christie@newstoday.com.sg

THE property market's dark night has stretched on for far too long, even though recent months have been less depressing than before.

But for the first time in recent memory, the experts seem to agree: The worst is over and Singapore's property market looks set for an upswing.

According to the latest flash estimate by the Urban Redevelopment Authority (URA), private home prices in the three months ended Sept 30 not only rose for the sixth consecutive quarter, they also made their biggest quarterly jump in five years.

URA expects the price index to register a gain of 1.1 per cent to 116.5 points based on transaction prices given in caveats lodged during the quarter's first 10 weeks. The official statistic will be out later this month.

Responding to the current data, Knight Frank's director of consultancy and research, Mr Nicholas Mak, noted that "the overall price index has breached the 1-per-cent psychological level", significant as "in the past five quarters, the increases were less than 1 per cent".

But that is hardly surprising to Mr Song Seng Wun, regional economist at CIMB-GK Research, as the residential property market is usually the last to turn around compared to other economic sectors. Last year, when Gross Domestic Product (GDP) rose to 8.4 per cent, private home prices were merely crawling up as sentiment remained wary after the Sars-stricken year of 2003.

This time, analysts see foreigner and high-net-worth locals snapping up niche developments, as well as those in prime locations.

ERA Singapore's assistant vice-president Eugene Lim said foreign investors have flocked here because property prices have more upside than other Asian cities, such as Kuala Lumpur and Hong Kong.

Ms Feng Zhi Wei, associate director and head of research at Jones Lang LaSalle (JLL), agreed: "Compared to the historical peak in 1996's second quarter, (prices are) 35.6 per cent lower."

Which is part of the reason why property magnate Kwek Leng Beng of City Developments said in May that he expected home prices to surge by 20 to 30 per cent in the next two to three years.

For this fourth quarter, however, market watchers are not expecting prices to shoot through the roof. Said Mr Song: "I suspect for Q4, we'll see a steady, modest uptick."

To Knight Frank's Mr Mak, prices could increase by more than 1.1 per cent: "Looking at some of the projects sold this quarter, developers are getting a bit more bullish in their pricing."

But he added a caveat that some economic uncertainties prevail — including high oil prices and external shocks such as terrorist bombings — which may still derail the market's recovery.

Also, JLL's Ms Feng said the true picture will only emerge when data on sales transactions are out later this month as they dictate how fast and how big the recovery will be.

Barring unforeseen circumstances, though, ** Richard Ellis estimates that private home prices will gain 4 to 5 per cent for the full year, because more high-end launches, such as the second tower of The Sail @ Marina Bay and The Arc at Draycott Drive, are in the pipeline.

Said ERA's Mr Lim: "There is a clear indication that the growth is sustainable."

JLL's Ms Feng told Today that the increased demand is not linked to the recent relaxation of housing loan rules. In mid-July, the Government stated that buyers of private homes can pay for half of their 10-per-cent deposits through their CPF accounts.

"Those buying high-end properties are cash-rich, while the changes benefited the HDB upgraders," she said.

The HDB market also looked markedly optimistic.

HDB said yesterday that the resale price index is expected to register a much smaller fall of 0.4 per cent to 101.2 points, compared to the first quarter's 4.8-per-cent slump, sparked by rules introduced in April to curb illegal cashback deals.

After that sudden plunge, the HDB resale market has stabilised, said Mr Chris Koh, director of Dennis Wee Properties.

"The market was recovering last year until the cashback issues surfaced," he said. "Now, there are a lot of showflat viewings and people buying because they're afraid prices will pick up."

jq75

04-10-2005, 08:49 AM

5,800 households yet to retrofit windows by Sept 30 deadline

03 October 2005 2018 hrs - CNA

About 5,800, or 3 per cent, of homeowners have yet to retrofit their windows after the one-year grace period to do so lapsed last Friday.

The Building and Construction Authority said it was monitoring the situation and could step up checks if necessary.

Alan Yip, Manager, Greenland Construction & Renovation, and his staff have 15 bookings from homeowners to change their window rivets to steel ones.

These jobs will be completed by the end of this month.

Still, Mr Yip said he came across some residents in Bedok and Jurong area who simply did not care.

He said: "After I inspect, some of the owners they refused to change the windows even though they are already loose, they give us reasons like they have no money, some say the government will not check, and some of them say wait until something happen."

A total of 184,000 homes, or 97 per cent, have retrofitted their windows.

BCA has also allowed 1,100 households to change their window rivets at a later date on a case-by-case basis.

Some homeowners have written to BCA to request for a deferment due to financial problems, while others said it was a taboo to carry out any form of renovation when there's a death or pregnancy in the household.

But these homeowners must still ensure their windows remain safe, as BCA will take enforcement action if any should fall off.

Cheng Tai Fatt, Building Plan Department, BCA, said: "For the next few months, BCA will monitor the situation closely, we do not rule out doing some random inspection on estates or buildings with past cases of fallen windows."

Owners found guilty of not maintaining their windows could be fined S$10,000 and/or a year's jail. - CNA

Oct 4, 2005
5,800 missed windows deadline
ABOUT 5,800 home owners face possible fines or even jail terms for failing to comply with the Sept 30 deadline to retrofit their windows.

The Building and Construction Authority (BCA) ordered 187,000 households to replace the aluminium rivets on their casement windows with steel ones 12 months ago.

The order, which came into effect last Friday, was made after corroded rivets were pinpointed as the cause of a spate of incidents of falling windows. Owners were given a year to replace them, or risk a fine of up to $5,000 and/or six months' jail.

So far, 97 per cent of home owners have complied. Of those who missed the deadline, 2,800 are in HDB flats while 3,000 live in private apartments.

The BCA said yesterday there is some leeway for those with valid reasons for missing the deadline. About 1,100 people have written in to seek extensions, which will be dealt with on a case-by-case basis.

Of these, 900 said they could not get a window contractor in time. Other reasons included financial problems and having a pregnant woman in the house.

A BCA spokesman said the authority will monitor the situation in the next few months and 'consider appropriate enforcement action' against recalcitrant home owners.

'We do not rule out the possibility of conducting targeted inspections on buildings that are believed to have unsafe windows that are not retrofitted.'

With the deadline over, window contractors contacted yesterday said there has been a significant drop in the number of calls they receive.

Mr Jack Oei, managing director of Success Forever Construction & Maintenance, said he now gets 20 calls a day, compared to about 300 last month.

'Some of them say they just want to avoid the crowd and are waiting till everyone else is done,' he said.

Due to a backlog, it may take up till the end of the year for everyone to comply with the rules.

Mr Albert Choo, owner of window-maker Teck Guan Aluminium, said he has 80 appointments for window-fixing this month. 'I'm still getting calls and have about 60 bookings that will have to wait until next month.'

jq75

05-10-2005, 08:46 AM

No more renovations blues as watchdog looks to oversee contractors

Wednesday • October 5, 2005

Tor Ching Li
chingli@newstoday.com.sg

ALL the pain and frustration they have caused to households in Singapore has finally caught up with them. Errant renovation contractors will no longer get off the hook as the Building and Construction Authority (BCA) told Today that it is keeping a "hawkish eye" on the renovation industry.

For a start, BCA tied up with HDB recently to conduct a trial course on renovation construction with several contactors.

HDB is studying whether to make it a regular feature for those under its Registered Renovation Contractors (RRC) scheme.

All contractors who wish to carry out works in HDB flats have to be with the RRC scheme. There are currently around 1,800 such firms.

Should they flout RRC's rules by carrying out unauthorised works or causing ceiling leaks, they could be warned and fined between $1,000 and $5,000.

However, HDB said it is not in a position to intervene or arbitrate for disputes over quality or workmanship — that is, factors not affecting the integrity of the building.

For such issues, you can turn to the Consumers Association of Singapore (Case) or the Renovation and Decoration Advisory Centre (Radac).

Since 2003, the HDB has taken action against 120 RRC firms — but the number of cases reported each year has been decreasing.

Conversely, the number of complaints to Case against errant renovators has shown a slight increase over the years — from 1,020 cases in 2003 to 1,174 last year and over 500 cases to date this year.

What does this trend imply?

Said an industry source: "Contractors are now more aware of the basic requirements that have to be followed to avoid a fine. Of course, HDB's ability as a licensing agency to fine the contractors also helps."

Since May last year, BCA has tied up with Case, and five renovation contractors have already received the CaseTrust Accreditation.

Radac has 132 accredited renovators — who have to be complaint-free to qualify — listed on their website.

Said Radac chairman Farok Majeed: "Those who do not meet our requirements will be suspended or, in serious cases, terminated from our list. Those struck off will not be re-registered."

Meanwhile, Hbay, an interior services accreditation and advisory body, has been providing courses for consumers on subjects including space planning and accreditation for contractors, said its chief executive Lee Song. It currently has around 20 members.

Despite the involvement of so many bodies involved, is the renovation industry still too loosely-regulated?

Mr Lee thinks not.

"We are essentially a market-driven industry, so there is no need to standardise the accreditation requirements," he said.

"If it doesn't cost consumers any more to engage an accredited contractor, I believe they will prefer the quality assurance."

Radac's Mr Farok agreed that some basic requirements — such as number of years of experience and a proven track record — could be standardised, but had his concerns on the matter.

"We must give consumers more choices. Standardisation may stifle innovation and creativity," he said.

Case's executive director Seah Seng Choon also urged consumers to do their part by checking for contractors' accreditation — which ensures a standard of commitment to quality — instead of going for the lowest price offered.

Mr Abdul Rahim — one of 507 homeowners to submit a complaint to Case for poor renovation work in the first half of this year — learnt his lesson the hard way.

He said over 50 of his kitchen and bathroom wall tiles were "popping up" and ready to drop off — less than a year after they had been installed.

"I called the contractor to come and take a look but they never did, even though the renovation work is still covered under warranty," he told Today.

Some would say it's no wonder — he admitted he chose the contractor as he was offered a price $6,000 less than the going market price for the job.

jq75

10-10-2005, 08:39 AM

Oct 10, 2005
Use laundry systems in safe and proper way
I REFER to the letter 'More laundry pole holders' by Mr Mike Chua Tee Chee (ST, Sept 26).

The clothes-drying pipe-socket system was a standard provision when HDB flats were first built.

New flats now come with an improved clothes-drying system. The drying racks are designed so the bamboo poles are supported on both ends, making hanging of laundry easier and safer.

The older flats will be fitted with this system under the Main Upgrading Programme, where feasible.

Both the pipe-socket system and drying-rack system can accommodate an average of six laundry poles.

Most HDB flats are also fitted with an internal clothes-drying rack in the kitchen or yard area to provide more laundry-drying space and which is useful on rainy days.

The HDB is constantly looking at ways to improve the design of laundry-drying systems.

Meanwhile, residents should adopt the correct method of using the laundry systems for better safety. For the pipe-socket system, the bamboo poles are to be placed into the sockets, and for the drying-rack system, over the supporting rack.

As for the block mentioned by Mr Chua, we understand the town council has repaired the broken tiles.

The HDB will work with the town council to advise the residents concerned on the safe and proper way to hang their laundry using the laundry pole-holders.

We thank Mr Chua for his feedback and his concern for the safety of others.

Alfred Chng
Head, Balestier Branch Office
Housing & Development Board

jq75

10-10-2005, 09:44 PM

jq75

10-10-2005, 09:45 PM

More HDB dwellers own flats compared to 30 years ago: survey

CNA 10 October 2005 1803 hrs

SINGAPORE : More Singaporeans have become home-owners now, compared with 30 years ago.

A 2003 survey just released by the Department of Statistics shows that 93% of HDB dwellers own their flats, up from 29% in the 1970s.

Even low income earners own their own flats, estimated to be worth at least $100,000.

This is largely due to the Home Ownership Scheme to give citizens an asset and a stake in the country.

Home ownership is the highest among the middle income with almost 95% owning their flats.

- CNA /ls

jq75

10-10-2005, 09:48 PM

Apologies.. a repeat =:p

Oct 10, 2005
Use laundry systems in safe and proper way
I REFER to the letter 'More laundry pole holders' by Mr Mike Chua Tee Chee (ST, Sept 26).

The clothes-drying pipe-socket system was a standard provision when HDB flats were first built.

New flats now come with an improved clothes-drying system. The drying racks are designed so the bamboo poles are supported on both ends, making hanging of laundry easier and safer.

The older flats will be fitted with this system under the Main Upgrading Programme, where feasible.

Both the pipe-socket system and drying-rack system can accommodate an average of six laundry poles.

Most HDB flats are also fitted with an internal clothes-drying rack in the kitchen or yard area to provide more laundry-drying space and which is useful on rainy days.

The HDB is constantly looking at ways to improve the design of laundry-drying systems.

Meanwhile, residents should adopt the correct method of using the laundry systems for better safety. For the pipe-socket system, the bamboo poles are to be placed into the sockets, and for the drying-rack system, over the supporting rack.

As for the block mentioned by Mr Chua, we understand the town council has repaired the broken tiles.

The HDB will work with the town council to advise the residents concerned on the safe and proper way to hang their laundry using the laundry pole-holders.

We thank Mr Chua for his feedback and his concern for the safety of others.

Alfred Chng
Head, Balestier Branch Office
Housing & Development Board

jq75

11-10-2005, 09:42 AM

Oct 11, 2005
9 in 10 of S'pore's poor own homes

More than half own four-room flats or bigger, survey finds

By Daryl Loo
THEY are among the poorest in Singapore but nearly nine in 10 of the bottom 20 per cent of HDB families own the roof over their head.

Even more notable is the size of the homes they own: more than half own four-room or bigger flats.

And if these 87 per cent of lower-income families sell their flats at current valuation, most will have quite a handsome sum in hand even after settling their HDB loan.

Technically known as home equity, calculations by the Department of Statistics estimate it to be an average $138,000.

But even more telling is when these figures are compared to the national average, which shows that 93 per cent of all HDB dwellers own their flats and that their home equity is $154,000.

In short, the lower-income families here do not trail very far behind the general population, about 80 per cent of whom live in HDB homes.

These figures, based on the 2003 Household Expenditure Survey, were released yesterday in a paper on Home Ownership and Equity of HDB Households 2003.

Experts said they point essentially to two things:

The national policy of home ownership, started in 1964, has worked well enough to reach the poor

When needed, the average HDB family can sell its property and have a tidy sum.

That most Singaporeans are in surplus does not surprise Dr Amy Khor, chairman of the Government Parliamentary Committee for National Development.

She noted that Prime Minister Lee Hsien Loong, in his National Day Rally speech in August, had hinted at it when he mapped out a new CPF housing grant scheme to help lower-income Singaporeans.

PM Lee had said that many of the poor are actually already sitting on almost $200,000 worth of wealth.

He felt then that while this group's future was assured, 'we can do more to help them, not to spend but to build up their assets'.

The Statistics Department's figures also show that among the bottom 20 per cent, 71 per cent have at least $100,000 cash parked in their HDB properties, while 7.8 per cent can actually get more than $250,000 back when they sell their homes.

As a result of the high home ownership level, it is not surprising that as much as 46.8 per cent of all Singaporean households' assets are in their homes, with the rest in financial assets like savings and shares. In dollar terms, this residential property assets amount to $359 billion.

Nanyang Technological University Associate Professor Tan Khee Giap said the success of the home ownership policy, 'means it is now extremely critical for the Government to make sure the prices of HDB's cheaper flats do not dip'.

http://straitstimes.asia1.com.sg/mnt/media/image/launched/2005-10-11/chart.jpg
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Oct 11, 2005
Some flat owners can't afford to downgrade
They won't have enough to buy cheapest flat after paying off loan

By Daryl Loo
NEARLY half of the wealth of Singaporeans is invested in their homes, very often in bigger HDB flats.

Even in the bottom 20 per cent income group, more than half own HDB homes that are four-room flats and bigger, according to a paper released by the Department of Statistics (DOS) yesterday.

There is a danger in this, said Dr Amy Khor, chairman of the Government Parliamentary Committee for National Development.

By doing so, some Singaporeans may over-extend themselves financially in their zeal to own a home and may not be able to afford to downgrade when they need to - such as when the breadwinner loses his job, she added.

Calculations by the DOS show that almost one-third of the bottom 20 per cent will get less than $100,000 cash back when they sell their home and pay off their HDB loan.

This means they cannot afford even the cheapest three-room HDB flat which costs $150,000.

And renting an HDB flat has stiff conditions, including a 2 1/2 year waiting period after the sale of an HDB flat.

The overwhelming focus on property ownership is a result of the Government's constant push for people to buy their own homes, 'to encourage a sense of rootedness in the country', noted Dr Khor.

But she expects this 'asset rich, cash poor' situation to improve over time, as the Government now encourages home buyers to be prudent.

It also recommends that banks adopt stricter checks when assessing whether a home owner can afford the loan he wants.

In all, Singaporeans' wealth in residential properties is a whopping $359 billion, or 47 per cent of their total wealth.

The remaining $407 billion is invested in other financial assets such as savings, shares and life insurance.

Property consultancy Knight Frank's director of research Nicholas Mak estimates that the proportion invested in homes here is much higher than in the United States and Europe, although he did not have exact figures.

'But the 47 per cent in homes should be similar to that in Hong Kong and Japan,' said Mr Mak.

Nanyang Technological University's Associate Professor Tan Khee Giap said it is a predictable phenomenon that Singaporeans invested such a large portion of their money in their home.

'That's because historically, putting your money in property had been the fastest way for your assets to rise,' he said.

According to the DOS, about nine in 10 Singaporean households own their own home, with 93 per cent of HDB families owning the roof over their heads, and 88 per cent of those living in private homes.

darylloo@sph.com.sg

ADDITIONAL REPORTING BY KEN KWEK

--------------------------------------------------------------------------------

Most own their homes

NINE in 10 Singaporean households own their own home, with 93 per cent of HDB families owning the roof over their heads, and 88 per cent of those living in private homes.

Singaporeans' wealth in residential properties is a whopping $359 billion, or 47 per cent of their total wealth. The remaining $407 billion is invested in other financial assets such as savings, shares and life insurance.

jq75

12-10-2005, 09:18 AM

HDB's Design, Build & Sell Scheme could negatively impact resale flats

11 October 2005 2155 hrs CNA

HDB's Design, Build and Sell scheme could negatively impact resale flats: property agents
HDB's Design, Build and Sell scheme could negatively impact resale flats in the longer run: property agents

SINGAPORE : The new Design, Build and Sell Scheme (DBSS) launched by the Housing Development Board (HDB) will have a minimal impact on the HDB resale market initially, according to industry players.

But they say that in the medium to long term, the scheme could draw demand from the resale market.

That is due to the waiver of resale levy, better quality and design expected, and a fresh 99-year land tenure.

The Design, Build and Sell Scheme was implemented early this year.

It was designed to involve the private sector in the development of public housing in order to bring about greater innovation in building and design, and more housing choices.

While a pilot project in Tampines has been earmarked for the scheme, pricing has not been set.

But industry players say fair pricing is between 20% to 25% higher than a resale flat because quality is expected to be better and land tenure is a fresh 99-year lease.

They add that it will have a minimal impact on the HDB resale market initially, but expect the scheme to feature more prominently in future.

"If the DBSS scheme were to become a staple, medium and long term, I think it's going to draw demand from the resale market. It could draw demand from new home buyers who typically would buy their flats from HDB," said Nicholas Mak, director of Knight Frank.

But as for whether home buyers would be drawn towards flats under the Design, Build and Sell scheme, industry players say the resale levy, which is about 25% of the resale value, is a crucial determinant.

"I think the authorities are saying that it's time for the levy to be reviewed. If the levy is reviewed or scrapped altogether, the added advantage of the DBSS scheme will not longer be there," said PropNex's CEO Mohamed Ismail.

On participation by private developers, industry players say smaller developers, especially contractors, will be keen because the capital outlay required is lower.

- CNA

jq75

13-10-2005, 08:59 PM

HDB considers more options to clear backlog of unsold flats
13 October 2005 1945 hrs

SINGAPORE : The Housing and Development Board is considering more options to try and clear its backlog of 9,000 unsold flats.

Most of these surplus units are in outlying areas like Jurong West, Punggol, Bukit Panjang and Seng Kang.

Some of the measures include engaging property agents to sell the units in the resale market, and improving interior fittings to make the flats more attractive.

The launch of show flats, new marketing activities and walk-in-selection exercises have helped clear about 1,000 unsold flats in the past year.

But with 9,000 flats still unsold, HDB could revisit a successful pilot project conducted in May.

Rear Admiral Lui Tuck Yew, CEO of HDB, said: "We actually put up 100 of these flats to be available for sale on the resale market, and we have had very good response rate, we have had 98 of those taken up ... putting it on the market to enlarge the pool of eligible buyers, for example the PRs and the singles."

Property agents said the strong sales could be due to the fact that these are new flats at attractive prices, and buyers could renovate them as desired.

There are also fewer restrictions on resale flats such as the five-year minimum occupation period.

Unlike in May where one agency was appointed to sell the flats, HDB says it might get more agents involved this time round.

While many welcomed the move to clear the backlog, industry players warn about possible repercussions.

Mohamed Ismail, CEO of PropNex, said: "On average there are 30,000 transactions in the resale market, per month it is about 2,500, if you talk about 250 put into the market per month, that's about 10 percent, that should be able to be absorb by the market, but the other factor is the pricing.

"If the pricing varies too far away from current resale market, then it will certainly put pressure on the resale market prices and there may be a concern for owners in that particular estate as it got to do with their asset value."

Chris Koh, Director of Dennis Wee Properties, said: "I am hoping that HDB will do this tactfully, not to do it in one big pool of flats coming into the market at one time, also not to tell the public that it's going to be done every quarter or that it will be done five to six times a year, that will definitely affect the market."

HDB is also thinking of extending an option currently available in its Build To Order scheme to unsold flats rolled out on the resale market.

This allows buyers to add optional fittings like flooring and new fixtures, at an extra cost, to make their units more attractive.

Besides monitoring the number of units and pace at which the unsold flats are offered, the HDB will also continue with its Walk-In Selection as the main avenue to get buyers for the surplus stock. - CNA/de

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Oct 13, 2005
HDB reduces number of unsold flats

THE number of unsold Housing Board flats is down from 10,000 last year to 9,000 now, and the Board is thinking up new ways to get them off its hands.

It may start adding finished flooring and bedroom doors to make the units more attractive, as well as put more of them on the resale market.

HDB's new chief executive, Rear-Admiral Lui Tuck Yew said some of them have been empty for seven years and may need 'a certain amount of work' to lure today's home-buyers.

While buyers of standard flats in normal housing projects now can opt for floors at an extra cost, those who go for these older unsold flats have to contend with bare ones.

He is looking into perks like optional finishes to woo buyers.

Also, a scheme it started in May to hire a property agency to sell 100 units which were five years old or more on the resale market has proven successful.

As of Wednesday, 98 have been sold.

Going this route meant that singles and permanent residents can buy them too, an option not available to them if they bought direct from the HDB.

RAdm Lui said the Board was looking into getting more agencies in the act and putting another batch of unsold flats on the resale market.

Over-building in the 90s led to 17,000 unsold flats in 2001, mainly the bigger units in out-lying areas like Sengkang and Jurong. The HDB got the numbers down through measures such as allowing flat-buyers to book a unit on the spot.

But beyond their unpopular locations, and bare finishes, the ethnic quota policy appears to have played a part too by making the pool of potential buyers smaller.

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Oct 13, 2005
HDB promotes design-build-sell scheme for flats

THE Housing Board is bending over backwards to ensure the new scheme for private developers to build and sell flats works, going so far as to provide statistics of demand and supply for new and resale flats.

Such data is usually not available to the private sector.

Pertinent information such as the number of bookings received for new flats, and resale demand and prices in the area will be provided, so developers can better size-up what they can do with the situation.

Under the Design, Build and Sell Scheme (DBSS) first announced in March this year, developers not only build flats, but will also design, market, and sell them.

A 2.4 ha site on Tampines Avenue 6, on which 500 units can be built, will be tendered later this year(05).

HDB's chief executive RADM Lui Tuck Yew said that with the scheme at its infancy, 'it is worthwhile for us to invest the time and effort, to make sure developers are comfortable with it'.

'But I don't think we will do all that we're doing when the (DBSS) scheme reaches a steady state,' he said.

Outsourcing the entire process of selling flats to private companies is part of a gradual shift at the HDB from building flats to focusing on its role as a regulator of public housing.

Mr Lui assured that demand exists, and 'there are Singaporeans prepared to pay a certain premium to enjoy better facilities, designs and finishes that will come with a flat built by private developers'.

He cited as evidence the overwhelming popularity of Pinnacle@Duxton, which sold out after 5,000 applications received for 1,848 units last year.

jq75

14-10-2005, 10:39 AM

Land cost is key factor in HDB's Design, Build and Sell Scheme

CNA 13 October 2005 2225 hrs

The cost of the Tampines plot earmarked for HDB's first Design, Build and Sell Scheme could decide how successful the pilot project is going to be.

This was according to industry players.

The tender for the land will be launched later this quarter and it marks the private sector's first foray into the public housing market here.

Strong demand during the launch of the Pinnacle@Duxton along Cantonment Road last year suggested that Singapore home buyers were willing to pay a premium for better design. (as well as location)

And the HDB is hoping that this will draw private developers to its first Design, Build and Sell Scheme in Tampines.

But market watchers say design is not the overriding concern.

Chris Koh, Director, Dennis Wee Properties, said: "Why it fetched a good demand was what we say in real estate, "location, location, location". So for this site at Tampines, it'll never be equal to the Pinnacle at Duxton."

"Yes Tampines is a mature estate with the infrastructure, but it's also not in the central business district, city area, and therefore in terms of pricing it won't be equal to the Pinnacle and likewise I don't expect demand to be high like the Pinnacle."

Demand aside, the HDB says developers are also concerned about land cost.

Rear-Admiral Lui Tuck Yew, CEO, HDB, said: "The main concern has been how much do I bid for the land, what am I allowed to do with the flats that are unsold. So what we hope to do is to give them more information on the transactions, particularly in the resale market that have taken place in the eastern part of Singapore so that would help them size up the situation."

The developer with the highest valid bid for the tender will land the Tampines Avenue 6 project.

Property agents say they hope that developers will be prudent in their sums.

Mohamed Ismail, CEO, PropNex, said: "Whoever bids at that price should understand that it's not easy to sell such flats especially if the price is going to be more than 30 per cent of the resale prices. For example, the plot at Tampines. The current resale prices is going at 230 dollar per square foot."

"If the developer is going to price anything more than 300 dollar per square foot then it's going to be close to 30 per cent more than what is the incentive for people to buy this Design, Build and Sell Scheme compared to the executive condo which is only priced at 400 dollars per square foot, comes with less restrictions and facilities like swimming pool and so on."

Property agents believe the pilot project will have minimal impact on HDB resale prices because there are only 500 units in the development.

The Housing Board says a number of developers and contractors have expressed interest, with a few confirming that they will table a bid.

On Thursday, HDB reported an operating deficit of S$637 million for the year ended in March 2005, down from the S$845 million loss the previous year.

And it sold over 9,400 flats during the period, down by more than a third

jq75

14-10-2005, 11:13 AM

HDB upbeat despite plummeting flat sales

37% fall in units sold, but HDB CEO Lui focuses on 'lessons learnt', new developments

Friday • October 14, 2005

Tor Ching Li
chingli@newstoday.com.sg

SALES of public housing flats took a nosedive this year as 5,477 fewer units were sold under the HDB's home ownership scheme as compared to last year.

However, the HDB has managed to reduce its stock of unsold flats from 10,000 to 9,000 — 70 per cent of which are 5-room or executive flats.

HDB chief executive Rear-Admiral (NS) Lui Tuck Yew announced these details at a press conference announcing the release of HDB's annual report for the financial year (FY) ending March 31.

A total of 9,433 units were sold in FY04/05 — 36.8 per cent less than the 14,914 units sold in the previous financial year.

Said the HDB chief: "I think some of the demand has gone into the resale market. I also suspect that some of the demand from our two unsuccessful Build-To-Order (BTO) schemes was then diverted to other sources, such as the resale market."

Two BTO exercises launched last December for Punggol and Sengkang had to be called off after insufficient bookings were received by April.

The take-up rates for the 734-unit Punggol estate and 655-unit Sengkang development were 63 per cent and 53 per cent respectively; 70-per-cent bookings were needed to proceed.

"We've learnt some lessons from the failed BTOs, such as the number of units offered being too large and BTOs being offered at the same time," said RAdm Lui. "We'll learn and move on, but BTO is here to stay."

Mr Yap Chin Beng, HDB director for housing administration, said that while some buyers were more cautious due to economic conditions, others were particular about getting units in their preferred location.

"We have unsold flats in outlying areas such as Jurong West and Sengkang, but some buyers are specific about location, so there is a mismatch of demand and supply," he said.

Nevertheless, HDB has managed to sell 98 out of 100 flats placed out since May in a pilot resale scheme to make such unsold flats available to a wider group of buyers, including singles above the age of 35 and Permanent Residents.

RAdm Lui said HDB would discuss whether to extend the scheme in due course with the Ministry of National Development.

Housing analysts said the weakened demand for public housing could also be due to the increased affordability of private housing.

Said Mr Edward Yeo, division director for real estate agency Coldwell Banker: "With falling private housing prices, some young couples may find better value in private property than public housing."

He noted that a three-room condominiums in the Hougang or Thompson area could be purchased for the price of some HDB flats in Ang Mo Kio.

Mr Nicholas Mak, Knight Frank director of research and consultancy, said demand was beyond the HDB's control.

"HDB can control supply via the BTO scheme and price, but it can't control demand drivers such as marriages or immigration. You have the give the market time to absorb the excess flats," he said.

On the pending launch of the Design, Build and Sell Scheme (DBSS) for private sector participation in public housing, RAdm Lui said private developers could gauge from the success of The Pinnacle@Duxton that there was a segment of the HDB market willing to pay a premium for unique design and location.

The Pinnacle, HDB's tallest public housing project at 50 storeys, enjoyed an overall subscription rate of 2.7 times.

The pilot DBSS project at Tampines Avenue 6 will be launched by the year-end. RAdm Lui said the tender would go to the private developer with the highest valid bid.

"We've spoken with developers and contractors and there has been much interest indicated," he said.