《联合早报》Mar 24, 2008
勿洛蓄水池路有13座组屋获得建屋发展局的批准，将在电梯翻新计划（Lift Upgrading Programme）下受惠。
这些组屋是勿洛蓄水池路第614至616、619、620，以及622至629座组屋。
东北区市长再诺昨早在友诺士市镇日与居民对话时宣布这个消息，也表示会向建屋局要求让其他未获批准进行电梯翻新的组屋有机会进行翻新。他同时也宣布，勿洛蓄水池周围地带目前正展开翻新工程，以增添更多休闲设施，包括预期在接下来的一两个月完成的龙舟屋（Dragonboat House）。
再诺也是外交部高级政务部长，他表示，经过国家公园局批准建造的龙舟屋将让热爱水上活动的居民有机会使用这个新设施，并主张举办居民委员会会际常年比赛，甚至在阿裕尼集选区进行区际比赛。
不少居民参与了友诺士市镇日（Eunos Town Day）的居民对话，并向再诺、政府机构代表及基层领袖发问。
其中一名居民杨宝光问，勿洛蓄水池路第631与632座组屋是否也能获得电梯翻新？
他从阿裕尼市镇理事会代表得到的回应是，电梯翻新会先在高层组屋推出，由于第631与632座组屋算是矮层组屋，因此还没被选为电梯翻新计划中的组屋。
杨宝光接受记者的访问时说，大家都是住在政府组屋，看见住高层组屋的居民能享有电梯翻新带来的方便，而因为自己住矮层组屋就无法享有同样的方便，很不公平，况且母亲年事已高，没有电梯很不方便。
对此，再诺受访时说，目前该区有超过90%的组屋已完成电梯翻新或被批准进行电梯翻新，其余的都是因建筑结构的关系，因此还未被批准进行电梯翻新。
多层停车场假日仍收费
另一名居民蔡克成则说，他住家的多层停车场靠近教堂，尽管地处偏远，占用率又不到40%，但星期天与公共假日仍然收费，与政府鼓励子女探望父母和亲戚朋友互相探望的政策不符，使他感到不解。
再诺回应表示，这是他首次遇到这样的情况，因为建屋局为了响应政府的这个政策，已停止在星期天与公共假日在公共停车场收费，除非停车场靠近购物中心或巴刹。不过，他将写信向建屋局询问，而建屋局的代表也表示会通知有关部门。
今年的友诺士市镇日以“重温昔日甘榜生活”（The Good Old Kampong Days）为主题，让友诺士的居民们齐聚一堂，而居民对话也提供居民向政府官员反馈的管道。
Tuesday, March 25, 2008
确保买卖双方了解交易程序 经纪处理组屋交易 须交转售核对清单
《联合早报》Mar 25, 2008
组屋转售交易新措施 有效减少买卖纠纷
建屋发展局将强制房屋经纪在组屋转售交易前，分别向买主和卖主解释转售程序和条例，并签名保证没有虚报资料，以确保买卖双方是在清楚这些程序和条例下进行交易。
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建屋局规定，从5月1日起，所有组屋转售经纪在处理转售交易时必须提交一份核对清单，确保他们已向买卖双方清楚解释清单上所列明的交易程序和贷款条例。
清单要求房屋经纪确保卖方知道在售屋时必须清偿抵押借款，并将购屋时所动用的公积金退回公积金户头。如果打算另购组屋，他必须在售屋前取得建屋局或银行贷款。如有组屋翻新费用未缴，他也必须在转售交易完成前还清。
至于购屋的部分，经纪必须让买方知道是否合资格申请公积金房屋津贴。他必须确保所申请的转售组屋不超出种族比例顶限。买主有14天的时间考虑是否购屋，但行使这项选择权后，买卖双方达成的协议将具有法律约束力。
房屋经纪必须在递交转售申请时呈上这份清单。经纪和买卖双方都必须在清单上签名，以保证没有虚报资料。虚报资料者可判监禁最长三年，或罚款，或两者兼施。自行处理组屋买卖者无需填写清单，但建屋局建议他们在买卖组屋前了解转售程序和条例。
清单有四种官方语文版本，方便经纪向不谙英语者解释，但他们只须交上英文版本。
我国每年平均有3万宗组屋转售交易，其中92%是通过房屋经纪进行。建屋局发言人说，公众希望房屋经纪在处理组屋转售交易时提醒客户需注意的事项。此外，新入行的经纪可能对转售程序和条例了解不深，核对清单对他们很有帮助。
消费者协会去年接获约1113起对房地产经纪和业者的投诉，比前年的991来得多。今年首三个月则有229起相关投诉。消协发言人说，这些投诉涵盖私宅及组屋买卖，并以组屋买卖占大多数。
“新措施对减少纠纷很有用”
受访的房地产业者表示，新措施对减少买卖双方及房屋经纪之间的纠纷很有用。
ERA助理副总裁林东荣说：“新条例将使整个交易程序更透明，这不仅对消费者有利，房屋经纪也多了额外的保障，因为他们可证明已向买卖双方解释所有的转售程序。”
Dennis Wee董事许家荣也认为，核对清单非常详尽，几乎把整个交易程序都列得清清楚楚，可减少买卖双方及房屋经纪之间的纠纷。
博纳集团总裁伊斯迈说，一些消费者可能不清楚公共住屋的多项条例和政策，清单会列出买主的权益及贷款事项，也强调任何的套现（Cash-back）手法都是违法的。他认为，许多经纪目前都遵守职业操守，告知买卖双方所拥有的权益，不过也有一些经纪隐瞒实情。
房地产经纪学会曾接获公众投诉房地产经纪不够专业，服务水平欠佳，双方在佣金方面僵持不下。
该会财政陈翠锦认为，建屋局的核对清单肯定是好的，不过实施成效则有待观察。
她说，以目前的“选择购买”（Option to Purchase）文件为例，房屋经纪可能会告诉消费者他们对买卖程序了如指掌，让他们放心签署文件。他们可能因信任经纪而签署文件，事后出问题时就怪经纪当时没有解释清楚。她认为，这样的情况也可能在签署核对清单时出现。
“所以，即使有了核对清单，买卖双方还是有责任了解整个交易程序后才签名，避免以后节外生枝。”
组屋转售交易新措施 有效减少买卖纠纷
建屋发展局将强制房屋经纪在组屋转售交易前，分别向买主和卖主解释转售程序和条例，并签名保证没有虚报资料，以确保买卖双方是在清楚这些程序和条例下进行交易。
+Logo.jpg)
建屋局规定，从5月1日起，所有组屋转售经纪在处理转售交易时必须提交一份核对清单，确保他们已向买卖双方清楚解释清单上所列明的交易程序和贷款条例。 清单要求房屋经纪确保卖方知道在售屋时必须清偿抵押借款，并将购屋时所动用的公积金退回公积金户头。如果打算另购组屋，他必须在售屋前取得建屋局或银行贷款。如有组屋翻新费用未缴，他也必须在转售交易完成前还清。
至于购屋的部分，经纪必须让买方知道是否合资格申请公积金房屋津贴。他必须确保所申请的转售组屋不超出种族比例顶限。买主有14天的时间考虑是否购屋，但行使这项选择权后，买卖双方达成的协议将具有法律约束力。
房屋经纪必须在递交转售申请时呈上这份清单。经纪和买卖双方都必须在清单上签名，以保证没有虚报资料。虚报资料者可判监禁最长三年，或罚款，或两者兼施。自行处理组屋买卖者无需填写清单，但建屋局建议他们在买卖组屋前了解转售程序和条例。
清单有四种官方语文版本，方便经纪向不谙英语者解释，但他们只须交上英文版本。
我国每年平均有3万宗组屋转售交易，其中92%是通过房屋经纪进行。建屋局发言人说，公众希望房屋经纪在处理组屋转售交易时提醒客户需注意的事项。此外，新入行的经纪可能对转售程序和条例了解不深，核对清单对他们很有帮助。
消费者协会去年接获约1113起对房地产经纪和业者的投诉，比前年的991来得多。今年首三个月则有229起相关投诉。消协发言人说，这些投诉涵盖私宅及组屋买卖，并以组屋买卖占大多数。
“新措施对减少纠纷很有用”
受访的房地产业者表示，新措施对减少买卖双方及房屋经纪之间的纠纷很有用。
ERA助理副总裁林东荣说：“新条例将使整个交易程序更透明，这不仅对消费者有利，房屋经纪也多了额外的保障，因为他们可证明已向买卖双方解释所有的转售程序。”
Dennis Wee董事许家荣也认为，核对清单非常详尽，几乎把整个交易程序都列得清清楚楚，可减少买卖双方及房屋经纪之间的纠纷。
博纳集团总裁伊斯迈说，一些消费者可能不清楚公共住屋的多项条例和政策，清单会列出买主的权益及贷款事项，也强调任何的套现（Cash-back）手法都是违法的。他认为，许多经纪目前都遵守职业操守，告知买卖双方所拥有的权益，不过也有一些经纪隐瞒实情。
房地产经纪学会曾接获公众投诉房地产经纪不够专业，服务水平欠佳，双方在佣金方面僵持不下。
该会财政陈翠锦认为，建屋局的核对清单肯定是好的，不过实施成效则有待观察。
她说，以目前的“选择购买”（Option to Purchase）文件为例，房屋经纪可能会告诉消费者他们对买卖程序了如指掌，让他们放心签署文件。他们可能因信任经纪而签署文件，事后出问题时就怪经纪当时没有解释清楚。她认为，这样的情况也可能在签署核对清单时出现。
“所以，即使有了核对清单，买卖双方还是有责任了解整个交易程序后才签名，避免以后节外生枝。”
US Crisis Deepens As Home Owners Turn To Short-Term Loans
Source : The Straits Times, March 25, 2008
Such 'payday loans' come with high interest rates, piling on the debts
CLEVELAND (OHIO) - AS HUNDREDS of thousands of American home owners fall behind on their mortgage payments, more are turning to short-term loans with sky- high interest rates to get by.
While hard figures are hard to come by, evidence from non-profit credit and mortgage counsellors suggests that the number of people using these so-called 'payday loans' is growing. This is a negative sign for economic recovery as the United States housing crisis deepens.
'We're hearing from around the country that many folks are buried deep in payday loan debts as well as struggling with their mortgage payments,' said Mr Uriah King, a policy associate at the Centre for Responsible Lending.
A payday loan is typically for a few hundred dollars, with a term of two weeks, and an interest rate as high as 800 per cent. The average borrower ends up paying back US$793 for a US$325 loan, according to the centre.
The centre also estimates that these lenders issued more than US$28 billion (S$38.9 billion) in loans in 2005. This was the latest available figure.
In the Union Miles district of Cleveland, which has been hit hard by the crisis, all the regular banks have been replaced by payday lenders.
'When distressed home owners come to us, it usually takes a while before we find out if they have payday loans because they don't mention it at first,' said Ms Lindsey Sacher, the community relations coordinator at non-profit East Side Organising Project, which works to refinance US sub-prime mortgage borrowers on the verge of default or foreclosure. 'But by the time they come to us for help, they have nothing left.'
On top of the steep cost, payday loans have an even darker side, Ms Sacher noted. 'We also have to contend with the fact that payday lenders are very aggressive when it comes to getting paid.'
Mr Bill Faith, executive director of the Coalition on Homelessness and Housing in Ohio, an umbrella group representing some 600 non-profit agencies in Ohio, said the state is home to some 1,650 payday loan lenders. This is more than all of Ohio's fast food franchises put together.
'That's saying something, as the people of Ohio really like their fast food,' Mr Faith said. 'But payday loans are insidious because people get trapped in a cycle of debt.'
Mr Robert Frank, an economics professor at Cornell University, equates payday loans with 'handing a suicidal person a noose'.
'These loans lead to more bankruptcies and wipe out people's savings, which is bad for the economy,' he said.
'This is a problem that has been caused by deregulation' of the US financial sector in the 1990s. - REUTERS
Such 'payday loans' come with high interest rates, piling on the debts
CLEVELAND (OHIO) - AS HUNDREDS of thousands of American home owners fall behind on their mortgage payments, more are turning to short-term loans with sky- high interest rates to get by.
While hard figures are hard to come by, evidence from non-profit credit and mortgage counsellors suggests that the number of people using these so-called 'payday loans' is growing. This is a negative sign for economic recovery as the United States housing crisis deepens.
'We're hearing from around the country that many folks are buried deep in payday loan debts as well as struggling with their mortgage payments,' said Mr Uriah King, a policy associate at the Centre for Responsible Lending.
A payday loan is typically for a few hundred dollars, with a term of two weeks, and an interest rate as high as 800 per cent. The average borrower ends up paying back US$793 for a US$325 loan, according to the centre.
The centre also estimates that these lenders issued more than US$28 billion (S$38.9 billion) in loans in 2005. This was the latest available figure.
In the Union Miles district of Cleveland, which has been hit hard by the crisis, all the regular banks have been replaced by payday lenders.
'When distressed home owners come to us, it usually takes a while before we find out if they have payday loans because they don't mention it at first,' said Ms Lindsey Sacher, the community relations coordinator at non-profit East Side Organising Project, which works to refinance US sub-prime mortgage borrowers on the verge of default or foreclosure. 'But by the time they come to us for help, they have nothing left.'
On top of the steep cost, payday loans have an even darker side, Ms Sacher noted. 'We also have to contend with the fact that payday lenders are very aggressive when it comes to getting paid.'
Mr Bill Faith, executive director of the Coalition on Homelessness and Housing in Ohio, an umbrella group representing some 600 non-profit agencies in Ohio, said the state is home to some 1,650 payday loan lenders. This is more than all of Ohio's fast food franchises put together.
'That's saying something, as the people of Ohio really like their fast food,' Mr Faith said. 'But payday loans are insidious because people get trapped in a cycle of debt.'
Mr Robert Frank, an economics professor at Cornell University, equates payday loans with 'handing a suicidal person a noose'.
'These loans lead to more bankruptcies and wipe out people's savings, which is bad for the economy,' he said.
'This is a problem that has been caused by deregulation' of the US financial sector in the 1990s. - REUTERS
HDB Imposes Checklists On Resale Flats
Source : The Business Times, March 25, 2008
THE Housing and Development Board will introduce mandatory checklists for housing agents handling resale flat transactions from May 1 - a move welcomed by industry players.
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The checklists cover key policies and procedures that housing agents will need to advise resale flat buyers and sellers on before they commit to a transaction, HDB said yesterday.
'This is part of HDB's ongoing efforts to ensure that buyers and sellers are aware of the relevant HDB purchase and financing policies when buying/selling an HDB flat,' it said.
The move comes after a new scam involving HDB flats surfaced recently. Under the scam, a seller and buyer together report a falsely low sale price to HDB.
The buyer then pays the difference between the actual and declared price to the seller in cash, which means the seller has more cash in hand - rather than having any leftover money go back into his CPF account. To sweeten the deal, the seller usually gives the buyer a discount on the market value of the flat.
Under HDB's new initiative, housing agents will have to submit a completed resale checklist to HDB with a resale application. Resale applications that do not comply with this requirement will be rejected and there will be 'serious penalties' for false declarations.
Housing agents engaged by both sellers and buyers will have to go through a resale checklist with clients before an option to purchase (OTP) is granted or exercised.
Buyers and sellers who do not engage the services of housing agents need not submit a checklist.
PropNex, which says it has more than 40 per cent of the public housing resale market, welcomed HDB's move.
Public housing has many policies and financing requirements that many may not be familiar with, said PropNex chief executive Mohamed Ismail.
Most buyers tend not to read the important notes attached to OTP, he said.
The new resale checklist for housing agents engaged by buyers, for example, will ensure that buyers are aware of their rights as well as of financing matters. It will also highlight to them the fact that any form of cashback arrangement, such as over or under declaration, is punishable by law.
Similarly, the checklist for sellers' housing agents will ensure prospective sellers understand the various eligibility rules.
Mr Ismail said that while many agents already educate potential buyers and sellers, some may not, leaving them in the dark.
'This initiative should lead to greater transparency for buyers and sellers, and ensure a consistently high level of professionalism amongst the agents,' he said.
THE Housing and Development Board will introduce mandatory checklists for housing agents handling resale flat transactions from May 1 - a move welcomed by industry players.
+Logo.jpg)
The checklists cover key policies and procedures that housing agents will need to advise resale flat buyers and sellers on before they commit to a transaction, HDB said yesterday.'This is part of HDB's ongoing efforts to ensure that buyers and sellers are aware of the relevant HDB purchase and financing policies when buying/selling an HDB flat,' it said.
The move comes after a new scam involving HDB flats surfaced recently. Under the scam, a seller and buyer together report a falsely low sale price to HDB.
The buyer then pays the difference between the actual and declared price to the seller in cash, which means the seller has more cash in hand - rather than having any leftover money go back into his CPF account. To sweeten the deal, the seller usually gives the buyer a discount on the market value of the flat.
Under HDB's new initiative, housing agents will have to submit a completed resale checklist to HDB with a resale application. Resale applications that do not comply with this requirement will be rejected and there will be 'serious penalties' for false declarations.
Housing agents engaged by both sellers and buyers will have to go through a resale checklist with clients before an option to purchase (OTP) is granted or exercised.
Buyers and sellers who do not engage the services of housing agents need not submit a checklist.
PropNex, which says it has more than 40 per cent of the public housing resale market, welcomed HDB's move.
Public housing has many policies and financing requirements that many may not be familiar with, said PropNex chief executive Mohamed Ismail.
Most buyers tend not to read the important notes attached to OTP, he said.
The new resale checklist for housing agents engaged by buyers, for example, will ensure that buyers are aware of their rights as well as of financing matters. It will also highlight to them the fact that any form of cashback arrangement, such as over or under declaration, is punishable by law.
Similarly, the checklist for sellers' housing agents will ensure prospective sellers understand the various eligibility rules.
Mr Ismail said that while many agents already educate potential buyers and sellers, some may not, leaving them in the dark.
'This initiative should lead to greater transparency for buyers and sellers, and ensure a consistently high level of professionalism amongst the agents,' he said.
Home, Retail, Office Rental Growth To Ease
Source : The Business Times, March 25, 2008
Housing rentals to rise 5-15% year-on-year in 2008: Knight Frank
PRIVATE housing rents are expected to grow at a slower pace this year than last year, Knight Frank said in a report yesterday.
The property consultancy firm expects a year-on-year rise of 5-15 per cent in 2008 - after a massive 40 per cent year-on-year increase in 2007.
Knight Frank's estimates are based on the resistance of tenants and companies to even higher rents, and the limited availability of places at foreign schools for children of expatriates.
'Due to the fact that foreign schools are full and there are long waiting lists faced by children of foreign families who relocated here, housing demand from new foreign family tenants is projected to decrease,' Knight Frank said.
'On top of this, foreign tenants as well as corporate HR (departments) have readjusted housing allowances this year, which constricts rental demand according to their budgets.'
Despite this, a demand-supply imbalance could still result in rental rises until a supply of new units is felt significantly from 2009.
About 8,400 new private homes will be completed this year. But the number will expand dramatically in the three years from 2009 to 2011, with an estimated 16,000 to 17,000 units completed each year.
This could put downward pressure on rents, Knight Frank said.
The same holds true for the retail sector. Knight Frank predicts that landlords could face stronger resistance from retailers to rising rents in the later part of 2008 as more space comes on stream.
'Rents are forecast to maintain at their current level only until early 2008,' it said. 'Faced with a larger supply in the pipeline in the second half of 2008, island-wide prime retail rents are projected to appreciate by a relatively modest 5-10 per cent for entire 2008, compared to 22.1 per cent growth in 2007.'
Knight Frank also said growth in office rents and capital values in 2008 and 2009 will likely to be more moderate than in 2007. Office rents are forecast to rise 10-20 per cent year on year, while capital values are expected to increase 10-15 per cent year on year.
Housing rentals to rise 5-15% year-on-year in 2008: Knight Frank
PRIVATE housing rents are expected to grow at a slower pace this year than last year, Knight Frank said in a report yesterday.
The property consultancy firm expects a year-on-year rise of 5-15 per cent in 2008 - after a massive 40 per cent year-on-year increase in 2007.
Knight Frank's estimates are based on the resistance of tenants and companies to even higher rents, and the limited availability of places at foreign schools for children of expatriates.
'Due to the fact that foreign schools are full and there are long waiting lists faced by children of foreign families who relocated here, housing demand from new foreign family tenants is projected to decrease,' Knight Frank said.
'On top of this, foreign tenants as well as corporate HR (departments) have readjusted housing allowances this year, which constricts rental demand according to their budgets.'
Despite this, a demand-supply imbalance could still result in rental rises until a supply of new units is felt significantly from 2009.
About 8,400 new private homes will be completed this year. But the number will expand dramatically in the three years from 2009 to 2011, with an estimated 16,000 to 17,000 units completed each year.
This could put downward pressure on rents, Knight Frank said.
The same holds true for the retail sector. Knight Frank predicts that landlords could face stronger resistance from retailers to rising rents in the later part of 2008 as more space comes on stream.
'Rents are forecast to maintain at their current level only until early 2008,' it said. 'Faced with a larger supply in the pipeline in the second half of 2008, island-wide prime retail rents are projected to appreciate by a relatively modest 5-10 per cent for entire 2008, compared to 22.1 per cent growth in 2007.'
Knight Frank also said growth in office rents and capital values in 2008 and 2009 will likely to be more moderate than in 2007. Office rents are forecast to rise 10-20 per cent year on year, while capital values are expected to increase 10-15 per cent year on year.
Surprise Rise In US Existing Home Sales - ST
Source : The Straits Times, Mar 25, 2008
FIRST INCREASE IN 7 MONTHS
WASHINGTON - SALES of existing homes in the United States rose unexpectedly last month for the first time in seven months, easing concerns that credit restrictions and falling prices would hurt demand.
Purchases increased 2.9 per cent to an annual rate of 5.03 million, the National Association of Realtors said yesterday. The median home price dropped 8.2 per cent from February last year, the most in four decades of record keeping.
'It looks like this may be a temporary pause,' said Global Insight chief US economist Nigel Gault. 'The price declines have helped, and people are still getting financing, though not on the good terms they could before. We're still a long way from a recovery in housing.' The housing market is unlikely to rebound quickly as a glut of houses on the market depresses property values and lenders toughen mortgage requirements even more to stem credit losses.
The Fed last week said the outlook had worsened and pledged that it will act to keep the US growing.
Stocks extended earlier gains after the report with the Dow Jones Industrial Average up 220.62 points at 12,581.94. Stocks also surged as JPMorgan Chase said that it would raise its offer for the investment bank Bear Stearns to US$10 from about US$2 previously. - BLOOMBERG NEWS
FIRST INCREASE IN 7 MONTHS
WASHINGTON - SALES of existing homes in the United States rose unexpectedly last month for the first time in seven months, easing concerns that credit restrictions and falling prices would hurt demand.
Purchases increased 2.9 per cent to an annual rate of 5.03 million, the National Association of Realtors said yesterday. The median home price dropped 8.2 per cent from February last year, the most in four decades of record keeping.
'It looks like this may be a temporary pause,' said Global Insight chief US economist Nigel Gault. 'The price declines have helped, and people are still getting financing, though not on the good terms they could before. We're still a long way from a recovery in housing.' The housing market is unlikely to rebound quickly as a glut of houses on the market depresses property values and lenders toughen mortgage requirements even more to stem credit losses.
The Fed last week said the outlook had worsened and pledged that it will act to keep the US growing.
Stocks extended earlier gains after the report with the Dow Jones Industrial Average up 220.62 points at 12,581.94. Stocks also surged as JPMorgan Chase said that it would raise its offer for the investment bank Bear Stearns to US$10 from about US$2 previously. - BLOOMBERG NEWS
Surprise Rise In US Existing Home Sales - BT
Source : The Business Times, March 25, 2008
LATEST US DATA
But median home price falls 8.2% from February 2007, the most in 4 decades
(WASHINGTON) Sales of existing homes in the US unexpectedly rose in February for the first time in seven months, easing concern credit restrictions and falling prices would hurt demand.
Purchases increased 2.9 per cent to an annual rate of 5.03 million, the National Association of Realtors said yesterday in Washington. The median home price dropped 8.2 per cent from February 2007, the most in four decades of record keeping.
Sales 'are not quite at a bottom yet, but the pace of decline has definitely abated,' Stephen Stanley, chief economist at RBS Greenwich Capital in Greenwich, Connecticut, said before the report. 'Getting a stabilisation in home sales is kind of the first step in getting an improvement in prices and in construction activity.'
The real estate market is unlikely to rebound quickly as a glut of houses on the market depresses property values and lenders toughen mortgage with even more requirements to stem credit losses.
The Federal Reserve last week said the outlook had worsened and pledged to do whatever was needed to keep the economy growing.
Economists had forecast existing home sales would decline to a 4.85 million pace for February, according to the median of 63 projections in a Bloomberg News survey. Estimates ranged from 4.69 million to 4.9 million.
January's 4.89 million pace was the lowest since the group began keeping records of combined single- family homes and condominiums in 1999.
Home foreclosure filings jumped 60 per cent and bank seizures more than doubled in February from the same month last year as rates on adjustable mortgages rose and property owners were unable to sell or refinance, according to RealtyTrac Inc, a seller of foreclosure data.
The 'deepening of the housing contraction' was one factor Fed policy makers last week said was likely to hurt growth in coming months.
On March 18, the central bank cut its main lending rate by three-quarters of a percentage point to 2.25 per cent and said recent reports have shown the outlook for the economy has 'weakened further.'
The Fed has cut its benchmark interest rate by three percentage points since September and enacted other measures to try to keep the economy afloat.
On March 16, it reduced the rate on direct loans to banks and said it will provide up to US$30 billion to JPMorgan Chase & Co to help finance the purchase of Bear Stearns after a run on that security firm.
Other government agencies are also struggling to limit the damage in housing. The Office of Federal Housing Oversight lowered the capital requirement on Fannie Mae and Freddie Mac to 20 per cent from 30 per cent last week. The initiative may immediately pump US$200 billion into the mortgage market. -- Bloomberg
LATEST US DATA
But median home price falls 8.2% from February 2007, the most in 4 decades
(WASHINGTON) Sales of existing homes in the US unexpectedly rose in February for the first time in seven months, easing concern credit restrictions and falling prices would hurt demand.
Purchases increased 2.9 per cent to an annual rate of 5.03 million, the National Association of Realtors said yesterday in Washington. The median home price dropped 8.2 per cent from February 2007, the most in four decades of record keeping.
Sales 'are not quite at a bottom yet, but the pace of decline has definitely abated,' Stephen Stanley, chief economist at RBS Greenwich Capital in Greenwich, Connecticut, said before the report. 'Getting a stabilisation in home sales is kind of the first step in getting an improvement in prices and in construction activity.'
The real estate market is unlikely to rebound quickly as a glut of houses on the market depresses property values and lenders toughen mortgage with even more requirements to stem credit losses.
The Federal Reserve last week said the outlook had worsened and pledged to do whatever was needed to keep the economy growing.
Economists had forecast existing home sales would decline to a 4.85 million pace for February, according to the median of 63 projections in a Bloomberg News survey. Estimates ranged from 4.69 million to 4.9 million.
January's 4.89 million pace was the lowest since the group began keeping records of combined single- family homes and condominiums in 1999.
Home foreclosure filings jumped 60 per cent and bank seizures more than doubled in February from the same month last year as rates on adjustable mortgages rose and property owners were unable to sell or refinance, according to RealtyTrac Inc, a seller of foreclosure data.
The 'deepening of the housing contraction' was one factor Fed policy makers last week said was likely to hurt growth in coming months.
On March 18, the central bank cut its main lending rate by three-quarters of a percentage point to 2.25 per cent and said recent reports have shown the outlook for the economy has 'weakened further.'
The Fed has cut its benchmark interest rate by three percentage points since September and enacted other measures to try to keep the economy afloat.
On March 16, it reduced the rate on direct loans to banks and said it will provide up to US$30 billion to JPMorgan Chase & Co to help finance the purchase of Bear Stearns after a run on that security firm.
Other government agencies are also struggling to limit the damage in housing. The Office of Federal Housing Oversight lowered the capital requirement on Fannie Mae and Freddie Mac to 20 per cent from 30 per cent last week. The initiative may immediately pump US$200 billion into the mortgage market. -- Bloomberg
Don't Know What To Do During The Current Property Lull?'
Source : The Business Times, March 25, 2008
PROPERTY EXPERTS GIVE SOME TIPS
# Seven tips for buying a second home
Did you know, for example, that an HDB flat near an MRT station will give you a higher rental yield than most private properties?
# The importance of being earnest when going en bloc
A major en bloc sales agent discusses the impact of the new legislation on collective sales introduced last year on warring owners.
# Are you overpaying for your home loan?
Is the deferred payment period on the condo unit you bought a little while ago expiring soon? Read an independent mortgage broker's advice before you go shopping for that home loan.
# Aim for a landed home
So you've missed out buying a condo last year? Not to worry. Landed homes may become more appealing this year as they have yet to see the sharp price appreciation experienced by their non-landed counterparts.
DON'T MISS BT'S PROPERTY SUPPLEMENT ON THURSDAY
PROPERTY EXPERTS GIVE SOME TIPS
# Seven tips for buying a second home
Did you know, for example, that an HDB flat near an MRT station will give you a higher rental yield than most private properties?
# The importance of being earnest when going en bloc
A major en bloc sales agent discusses the impact of the new legislation on collective sales introduced last year on warring owners.
# Are you overpaying for your home loan?
Is the deferred payment period on the condo unit you bought a little while ago expiring soon? Read an independent mortgage broker's advice before you go shopping for that home loan.
# Aim for a landed home
So you've missed out buying a condo last year? Not to worry. Landed homes may become more appealing this year as they have yet to see the sharp price appreciation experienced by their non-landed counterparts.
DON'T MISS BT'S PROPERTY SUPPLEMENT ON THURSDAY
UK Home Sellers Advised To Price Realistically
Source : The Business Times, March 25, 2008
They can avoid bigger drop if they offer more attractive price now
(LONDON) Britons selling their home should 'get smart' and price their property more realistically before they lose out when home values decline later this year, Rightmove plc said.
The average asking price climbed 0.8 per cent in March to £239,655 (S$660,298) and they rose 1.3 per cent in London, Britain's most-used property website said in a statement yesterday. It said the gap between what owners charge and buyers can afford is widening as consumers find it harder to get a mortgage.
Bank of England policy maker Kate Barker said on March 19 that buyers will struggle to afford homes even if property prices weaken this year. The bank hosted a meeting of banking executives the next day as officials tried to stem a financial crisis that has prompted lenders to scale back mortgage offers.
'Sellers should price below their competition to achieve more interest now and avoid a larger price drop later in the year,' said Miles Shipside, Rightmove's commercial director. 'If sellers were to price more realistically at the same time as lenders were able to normalise lending criteria, we could see a speedier harmonisation of seller expectations and buyer affordability.' While asking prices are less than 1 per cent below their record high of £241,642 reached in October last year, sales are being agreed to at around 10 per cent less than that, the report said. In London, average asking prices were 1.3 per cent lower than the record of £412,731 in November.
Rightmove also called for the government, the Bank of England and lenders to take 'urgent coordinated action to ease mortgage liquidity'. British banks have raised the cost of borrowing for homebuyers with the smallest deposits to a seven-year high, declining to pass on two Bank of England rate cuts to 5.25 per cent. The average rate offered by lenders on loans for 95 per cent of the price of a property, fixed for 24 months, rose to 6.55 per cent, central bank data showed this month.
The UK housing market slumped to the worst since the eve of the nation's last recession in 1990, a survey by the Royal Institution of Chartered Surveyors showed this month.
Mortgage approvals stayed close to the lowest in nine years in January, the Bank of England reported on Feb 29.
House prices rose 5 per cent on the year, compared with an annual 5.8 per cent in February, Rightmove said yesterday. -- Bloomberg
They can avoid bigger drop if they offer more attractive price now
(LONDON) Britons selling their home should 'get smart' and price their property more realistically before they lose out when home values decline later this year, Rightmove plc said.
The average asking price climbed 0.8 per cent in March to £239,655 (S$660,298) and they rose 1.3 per cent in London, Britain's most-used property website said in a statement yesterday. It said the gap between what owners charge and buyers can afford is widening as consumers find it harder to get a mortgage.
Bank of England policy maker Kate Barker said on March 19 that buyers will struggle to afford homes even if property prices weaken this year. The bank hosted a meeting of banking executives the next day as officials tried to stem a financial crisis that has prompted lenders to scale back mortgage offers.
'Sellers should price below their competition to achieve more interest now and avoid a larger price drop later in the year,' said Miles Shipside, Rightmove's commercial director. 'If sellers were to price more realistically at the same time as lenders were able to normalise lending criteria, we could see a speedier harmonisation of seller expectations and buyer affordability.' While asking prices are less than 1 per cent below their record high of £241,642 reached in October last year, sales are being agreed to at around 10 per cent less than that, the report said. In London, average asking prices were 1.3 per cent lower than the record of £412,731 in November.
Rightmove also called for the government, the Bank of England and lenders to take 'urgent coordinated action to ease mortgage liquidity'. British banks have raised the cost of borrowing for homebuyers with the smallest deposits to a seven-year high, declining to pass on two Bank of England rate cuts to 5.25 per cent. The average rate offered by lenders on loans for 95 per cent of the price of a property, fixed for 24 months, rose to 6.55 per cent, central bank data showed this month.
The UK housing market slumped to the worst since the eve of the nation's last recession in 1990, a survey by the Royal Institution of Chartered Surveyors showed this month.
Mortgage approvals stayed close to the lowest in nine years in January, the Bank of England reported on Feb 29.
House prices rose 5 per cent on the year, compared with an annual 5.8 per cent in February, Rightmove said yesterday. -- Bloomberg
Home Makeovers Hard Hit By Price Hikes
Source : The Straits Times, Mar 21, 2008
Spike in building material prices, labour crunch pushing renovation costs up by 20% this year
PLANNING to renovate your home? If so, be prepared to pay 20 per cent more.
Construction costs - for both big projects and home renovations - have risen due to a rise in raw material prices and labour costs. And they are expected to increase even more this year.
ESCALATING PRICES: The cost of reinforcing steel bars has increased by about 60 per cent in the span of one year, while cement prices have gone up by 30 per cent. -- ST PHOTO: DESMOND LIM
Industry experts say overall construction costs are expected to rise by another 15 to 20 per cent this year - following a 40 per cent spike in the last two years.
A global spike in raw material prices, and a construction resources and manpower crunch here, are to blame for the relentless rise, say market players.
In particular, prices of reinforcing steel bars - used extensively in construction - have soared 64 per cent from $753 per tonne in January last year to $1,235 this January, according to data from the Building and Construction Authority (BCA).
Rising global demand for steel, fuelled by a building boom in developing countries such as China, India and Vietnam, is pushing prices up sharply.
The price of cement rose 30 per cent to $117 per tonne in the same period.
Consumers' pockets are hard hit by the price hikes. Contractors say home owners now have to fork out up to 20 per cent more for renovation works.
Renovating a 110 sq m five-room HDB flat, for example - which would have cost $80,000 at most at the start of last year - would now mean forking out $100,000, said contractor Steven Koh, 51, of Colorado Design.
But there is good news: the extra cost of building a new home is unlikely to be passed on to flat buyers.
Real Estate Developers Association of Singapore executive director Chia Hock Jin said developers cannot simply pass on the costs: 'It's the market that determines the prices.'
Given the recent cooling of the property market, price hikes for homes are also unlikely.
Local developer Frasers Centrepoint Homes said it has partly absorbed the rising costs and has also tried to mitigate them by adopting more efficient ways of building and securing raw material in bulk.
Construction costs typically make up 20 to 25 per cent of the total cost of a development, with the bulk coming from land cost, said Mr Seah Choo Meng, executive chairman of quantity surveying firm Davis Langdon & Seah Singapore.
Meanwhile, main contractors are starting to feel the pinch, with price rises eating into their profit margins. Wacon Construction & Trading, hired for a $5million spruce-up of MacRitchie Reservoir, was recently reported to have gone bust due to the hikes in raw material prices.
Mr Simon Lee, executive director of the Singapore Contractors Association Limited, said contractors had only a small margin in factoring such rises into building tenders.
One source of relief is the stabilising prices of sand, granite and concrete. BCA's latest data show prices of these materials are easing, after an artificial spike following Indonesia's abrupt ban of land sand exports last February. Still, compared to January last year, these prices have escalated and, in some cases such as sand, even doubled.
Mr Lee said there was concern that developers were slow in paying contractors, especially those affected by the sand ban, which might exacerbate contractors' cash-flow problems.
Mr Seah said he does not expect the construction crunch to abate, predicting that constructing demand will go up to $27 billion this year.
Spike in building material prices, labour crunch pushing renovation costs up by 20% this year
PLANNING to renovate your home? If so, be prepared to pay 20 per cent more.
Construction costs - for both big projects and home renovations - have risen due to a rise in raw material prices and labour costs. And they are expected to increase even more this year.
ESCALATING PRICES: The cost of reinforcing steel bars has increased by about 60 per cent in the span of one year, while cement prices have gone up by 30 per cent. -- ST PHOTO: DESMOND LIMIndustry experts say overall construction costs are expected to rise by another 15 to 20 per cent this year - following a 40 per cent spike in the last two years.
A global spike in raw material prices, and a construction resources and manpower crunch here, are to blame for the relentless rise, say market players.
In particular, prices of reinforcing steel bars - used extensively in construction - have soared 64 per cent from $753 per tonne in January last year to $1,235 this January, according to data from the Building and Construction Authority (BCA).
Rising global demand for steel, fuelled by a building boom in developing countries such as China, India and Vietnam, is pushing prices up sharply.
The price of cement rose 30 per cent to $117 per tonne in the same period.
Consumers' pockets are hard hit by the price hikes. Contractors say home owners now have to fork out up to 20 per cent more for renovation works.
Renovating a 110 sq m five-room HDB flat, for example - which would have cost $80,000 at most at the start of last year - would now mean forking out $100,000, said contractor Steven Koh, 51, of Colorado Design.
But there is good news: the extra cost of building a new home is unlikely to be passed on to flat buyers.
Real Estate Developers Association of Singapore executive director Chia Hock Jin said developers cannot simply pass on the costs: 'It's the market that determines the prices.'
Given the recent cooling of the property market, price hikes for homes are also unlikely.
Local developer Frasers Centrepoint Homes said it has partly absorbed the rising costs and has also tried to mitigate them by adopting more efficient ways of building and securing raw material in bulk.
Construction costs typically make up 20 to 25 per cent of the total cost of a development, with the bulk coming from land cost, said Mr Seah Choo Meng, executive chairman of quantity surveying firm Davis Langdon & Seah Singapore.
Meanwhile, main contractors are starting to feel the pinch, with price rises eating into their profit margins. Wacon Construction & Trading, hired for a $5million spruce-up of MacRitchie Reservoir, was recently reported to have gone bust due to the hikes in raw material prices.
Mr Simon Lee, executive director of the Singapore Contractors Association Limited, said contractors had only a small margin in factoring such rises into building tenders.
One source of relief is the stabilising prices of sand, granite and concrete. BCA's latest data show prices of these materials are easing, after an artificial spike following Indonesia's abrupt ban of land sand exports last February. Still, compared to January last year, these prices have escalated and, in some cases such as sand, even doubled.
Mr Lee said there was concern that developers were slow in paying contractors, especially those affected by the sand ban, which might exacerbate contractors' cash-flow problems.
Mr Seah said he does not expect the construction crunch to abate, predicting that constructing demand will go up to $27 billion this year.
3,500 Vied For 714 Condo-Like Flats In Boon Keng, But Only 460 Sold
Source : The Straits Times, Mar 25, 2008
THOUSANDS of applications poured in for a condo-like Housing Board project in January - but as of last week, less than two-thirds of the flats had been taken up.
About a third of the 714 units - or about 250 units - in City View @ Boon Keng remained unsold, said HSR Property Group, which is marketing the project.
These flats will be offered to the public, probably via walk-in selection.
The number of leftover units came as a surprise to market watchers, given that 3,500 applicants had vied for them.
This works out to five would-be buyers for each flat at City View, the second public housing project to be built by a private developer.
It boasts condo-like features such as timber floors, built-in wardrobes and air-conditioning.
All the applicants were given a chance to book the flats they wanted, said HSR project director Kellie Liew.
The selection process stretched over 20 days and ended last Thursday, with more than 3,000 potential deals falling through.
Developer Hoi Hup Sunway sold about 460 units, including six of the top-priced five-room units at $727,000 each, said Ms Liew.
But she added that some buyers backed out of their purchases due to the weakening property market, while others did not meet the required criteria to buy the flats.
'We've been having a series of not-too-positive news about the market, so that could have affected the sentiment of the buyers,' she said.
'Also, some applicants were over-qualified, with combined monthly incomes of more than $8,000, so they were not eligible for the flats.'
Hoi Hup declined to comment.
Market watchers suggested that the relatively high prices for the City View units could also have proved a deterrent at crunch time.
The three-room flats were priced between $349,000 and $394,000, double the price tag of similar flats in the vicinity.
Five-room flats went for up to $727,000, which experts said was close to condominium prices.
'Some people may have jumped on the bandwagon because of the hype, but when it was time to pick up a unit, they felt it was actually too expensive,' said Mr Mohamed Ismail, chief executive of property agency PropNex.
'In today's market, there are many 99-year leasehold properties with full condo facilities that are going for less than $600 per sq ft, so some buyers may have thought twice.'
But Mr Chris Koh, director of Dennis Wee Properties, believes the remaining units could be snapped up quickly.
'Fundamentals are still strong,' he said. 'We don't see property prices sliding at all.'
He added that the situation could mirror that of The Premiere @ Tampines, the first developer-built public housing project.
The Premiere drew almost 6,000 applications for its 616 units when it was launched in 2006, but fewer than 500 units were sold when the booking process was over.
When the remaining flats were released to the public, long queues formed and would not disperse despite a downpour.
THOUSANDS of applications poured in for a condo-like Housing Board project in January - but as of last week, less than two-thirds of the flats had been taken up.
About a third of the 714 units - or about 250 units - in City View @ Boon Keng remained unsold, said HSR Property Group, which is marketing the project.
These flats will be offered to the public, probably via walk-in selection.
The number of leftover units came as a surprise to market watchers, given that 3,500 applicants had vied for them.
This works out to five would-be buyers for each flat at City View, the second public housing project to be built by a private developer.
It boasts condo-like features such as timber floors, built-in wardrobes and air-conditioning.
All the applicants were given a chance to book the flats they wanted, said HSR project director Kellie Liew.
The selection process stretched over 20 days and ended last Thursday, with more than 3,000 potential deals falling through.
Developer Hoi Hup Sunway sold about 460 units, including six of the top-priced five-room units at $727,000 each, said Ms Liew.
But she added that some buyers backed out of their purchases due to the weakening property market, while others did not meet the required criteria to buy the flats.
'We've been having a series of not-too-positive news about the market, so that could have affected the sentiment of the buyers,' she said.
'Also, some applicants were over-qualified, with combined monthly incomes of more than $8,000, so they were not eligible for the flats.'
Hoi Hup declined to comment.
Market watchers suggested that the relatively high prices for the City View units could also have proved a deterrent at crunch time.
The three-room flats were priced between $349,000 and $394,000, double the price tag of similar flats in the vicinity.
Five-room flats went for up to $727,000, which experts said was close to condominium prices.
'Some people may have jumped on the bandwagon because of the hype, but when it was time to pick up a unit, they felt it was actually too expensive,' said Mr Mohamed Ismail, chief executive of property agency PropNex.
'In today's market, there are many 99-year leasehold properties with full condo facilities that are going for less than $600 per sq ft, so some buyers may have thought twice.'
But Mr Chris Koh, director of Dennis Wee Properties, believes the remaining units could be snapped up quickly.
'Fundamentals are still strong,' he said. 'We don't see property prices sliding at all.'
He added that the situation could mirror that of The Premiere @ Tampines, the first developer-built public housing project.
The Premiere drew almost 6,000 applications for its 616 units when it was launched in 2006, but fewer than 500 units were sold when the booking process was over.
When the remaining flats were released to the public, long queues formed and would not disperse despite a downpour.
Over 3,000 Apply For Boon Keng's Condo-Like Flats, But Only 460 Sold
Source : The Straits Times, Mar 24, 2008
THOUSANDS of applications poured in for a condo-like Housing Board project in January - but as of last week, less than two-thirds of the flats had been taken up.
About 250 of the 714 units in City View @ Boon Keng remain unsold, said HSR Property Group, which is marketing the project.
These flats will be offered to the public, probably via a walk-in selection.
The leftover homes came as a surprise to market watchers, given that 3,500 applicants had vied for them.
This works out to five would-be buyers for each flat at City View, the second public housing project to be built by a private developer.
It boasts condo-like features such as timber floors, built-in wardrobes and air-conditioning.
All the applicants were given a chance to book the flats they wanted, said HSR project director Kellie Liew.
The selection process stretched over 20 days and ended last Thursday, with more than 3,000 potential deals falling through.
Developer Hoi Hup Sunway sold about 460 units, including six of the top-priced five-room units at $727,000 each, said Ms Liew.
But she added that some buyers backed out of their purchases due to the weakening property market, while others did not meet the required criteria to buy the flats.
Read the full story in Tuesday's edition of The Straits Times.
THOUSANDS of applications poured in for a condo-like Housing Board project in January - but as of last week, less than two-thirds of the flats had been taken up.
About 250 of the 714 units in City View @ Boon Keng remain unsold, said HSR Property Group, which is marketing the project.
These flats will be offered to the public, probably via a walk-in selection.
The leftover homes came as a surprise to market watchers, given that 3,500 applicants had vied for them.
This works out to five would-be buyers for each flat at City View, the second public housing project to be built by a private developer.
It boasts condo-like features such as timber floors, built-in wardrobes and air-conditioning.
All the applicants were given a chance to book the flats they wanted, said HSR project director Kellie Liew.
The selection process stretched over 20 days and ended last Thursday, with more than 3,000 potential deals falling through.
Developer Hoi Hup Sunway sold about 460 units, including six of the top-priced five-room units at $727,000 each, said Ms Liew.
But she added that some buyers backed out of their purchases due to the weakening property market, while others did not meet the required criteria to buy the flats.
Read the full story in Tuesday's edition of The Straits Times.
A-REIT Buys Light Industrial Property At Loyang Way For S$25m
Source : Channel NewsAsia, 24 March 2008
Ascendas Real Estate Investment Trust (A-REIT) on Monday bought a light industrial property at Loyang Way for S$25 million.
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It signed a put and call option agreement with Seow Khim Polythelene, a manufacturer of consumer plastic products.
Seow Khim will lease back the property for 12 years with stepped increases in rentals.
It also has an option to renew the lease for another three years.
A-REIT said the acquisition will be positive for its distribution per unit.
The property at 8 Loyang Way 1 is located within the Loyang Industrial Estate and within a short driving distance to Changi Airport.
The property comprises two blocks of four-storey light industrial buildings on a land plot of 9,768 square metres.
The property has a gross floor area of 13,725 square metres and a net lettable area of 11,158 square metres.
Its lease expires on 16 July 2052. - CNA/ac
Ascendas Real Estate Investment Trust (A-REIT) on Monday bought a light industrial property at Loyang Way for S$25 million.
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It signed a put and call option agreement with Seow Khim Polythelene, a manufacturer of consumer plastic products. Seow Khim will lease back the property for 12 years with stepped increases in rentals.
It also has an option to renew the lease for another three years.
A-REIT said the acquisition will be positive for its distribution per unit.
The property at 8 Loyang Way 1 is located within the Loyang Industrial Estate and within a short driving distance to Changi Airport.
The property comprises two blocks of four-storey light industrial buildings on a land plot of 9,768 square metres.
The property has a gross floor area of 13,725 square metres and a net lettable area of 11,158 square metres.
Its lease expires on 16 July 2052. - CNA/ac
Industry Watchers Expect SIBOR To Dip 0.5 Percentage Point In 6 Months
Source : Channel NewsAsia, 24 March 2008
The Singapore Interbank Offered Rate or SIBOR is expected to dip a further 0.5 percentage point over the next six months.
Industry watchers said this will present an opportunity for homeowners and companies to refinance loans on their properties.
The US Federal Reserve recently cut its benchmark interest rate to 2.25 per cent in a bid to prop up the American economy.
And this has indirectly put a drag on SIBOR - the rate at which Singapore banks lend to each other.
Financial planning firm SingCapital expects SIBOR to slide by some 0.5 percentage point in the short term, from the current 1.425 per cent.
Alfred Chia, CEO of SingCapital, said: "In the next 6 months we expect SIBOR rates to follow the Federal Reserve's although not at the same quantum. The current interest rates fall is to combat the sub-prime issues in the US.
“So when Federal Reserve finds that they have handled that situation, the next issue they will be looking at is to combat inflation which will mean interest rates may rise back again."
So financial planners said property owners could consider refinancing mortgage loans now, saving them money in interest payments.
And there appears to be no lack of choices for consumers when it comes to selecting loan packages.
Mr Chia added: "I would say DBS has always stressed on transparency to customers but lately we are seeing foreign banks coming in very aggressively.
“For example, Maybank, they offer first year at as low as 1.68, and for example Standard Chartered where they are promoting their SOR (swap offer rate) package.
"With so many activities happening for Singapore, F1, IR, Youth Olympics, definitely the demand for housing is growing, so in the long-term we are very confident about loans growth for the banks."
Even though this may look like a good time to consider refinancing mortgage loans, industry players said homeowners should assess the different packages based on their individual needs.
They should also be aware of the potential risks arising from the US sub-prime crisis and inflation. - CNA/vm
The Singapore Interbank Offered Rate or SIBOR is expected to dip a further 0.5 percentage point over the next six months.
Industry watchers said this will present an opportunity for homeowners and companies to refinance loans on their properties. The US Federal Reserve recently cut its benchmark interest rate to 2.25 per cent in a bid to prop up the American economy.
And this has indirectly put a drag on SIBOR - the rate at which Singapore banks lend to each other.
Financial planning firm SingCapital expects SIBOR to slide by some 0.5 percentage point in the short term, from the current 1.425 per cent.
Alfred Chia, CEO of SingCapital, said: "In the next 6 months we expect SIBOR rates to follow the Federal Reserve's although not at the same quantum. The current interest rates fall is to combat the sub-prime issues in the US.
“So when Federal Reserve finds that they have handled that situation, the next issue they will be looking at is to combat inflation which will mean interest rates may rise back again."
So financial planners said property owners could consider refinancing mortgage loans now, saving them money in interest payments.
And there appears to be no lack of choices for consumers when it comes to selecting loan packages.
Mr Chia added: "I would say DBS has always stressed on transparency to customers but lately we are seeing foreign banks coming in very aggressively.
“For example, Maybank, they offer first year at as low as 1.68, and for example Standard Chartered where they are promoting their SOR (swap offer rate) package.
"With so many activities happening for Singapore, F1, IR, Youth Olympics, definitely the demand for housing is growing, so in the long-term we are very confident about loans growth for the banks."
Even though this may look like a good time to consider refinancing mortgage loans, industry players said homeowners should assess the different packages based on their individual needs.
They should also be aware of the potential risks arising from the US sub-prime crisis and inflation. - CNA/vm
Industry Players Expect More Homeowners To Refinance Their Mortgage Loans
Source : Channel NewsAsia, 24 March 2008
Industry watchers expect more home owners to consider refinancing their mortgage loans as interest rates look set to dip further.
In fact, mortgage and financial planning firm SingCapital has seen a three-fold jump in enquiries in the last two months.
Property agents are also getting a crash course in mortgage planning, including answering questions about refinancing of home loans.
This occurs when homeowners seek out more favourable loan packages from other lenders.
Industry players said it's the right time to refinance, which could save a huge amount in interest payments.
Related Videos :- http://tinyurl.com/yo4e8s
Alfred Chia, CEO of SingCapital, said: “Just from last year itself, interest rate could be as high as four per cent, compared to current rates where the average is about 2.5 per cent per annum. There's a big difference over there. Based on what we can see, interest rates will continue to fall, till the next six months."
Market watchers expect interest rates to fall a further half a percentage point in the Singapore Interbank Offered Rate or SIBOR by September.
It's partly linked to the recent cuts in US interest rates to contain the fallout from the sub-prime crisis.
SingCapital said it receives about 60 enquiries on refinancing each month.
Among these, seven in ten are private property owners.
Banks have also been enticing more customers with Maybank, Standard Chartered Bank and DBS among the most aggressive in the home loans market.
Mr Chia added: "There're some packages currently that offer 2.88 fixed for three years with a cash back of one percent. If it's a refinancing case, the one percent cash back would be given to the owners one month after the loans is disbursed.
“So if you add this interest rate, minus the cash rebates, the cumulative rate is only seven over percent, on average every year it's about 2.5 or 2.6 per cent interest.
“And it gives you the stability to plan for other finances, knowing that your monthly instalment for the house is going to be fixed at that price for the next three years.
Even though this may look like a good time to consider refinancing mortgage loans, industry players said home owners should assess the different packages based on their individual needs.
They should also be aware of the potential risks arising from the US sub-prime crisis and inflation. - CNA/vm
Industry watchers expect more home owners to consider refinancing their mortgage loans as interest rates look set to dip further.
In fact, mortgage and financial planning firm SingCapital has seen a three-fold jump in enquiries in the last two months. Property agents are also getting a crash course in mortgage planning, including answering questions about refinancing of home loans.
This occurs when homeowners seek out more favourable loan packages from other lenders.
Industry players said it's the right time to refinance, which could save a huge amount in interest payments.
Related Videos :- http://tinyurl.com/yo4e8s
Alfred Chia, CEO of SingCapital, said: “Just from last year itself, interest rate could be as high as four per cent, compared to current rates where the average is about 2.5 per cent per annum. There's a big difference over there. Based on what we can see, interest rates will continue to fall, till the next six months."
Market watchers expect interest rates to fall a further half a percentage point in the Singapore Interbank Offered Rate or SIBOR by September.
It's partly linked to the recent cuts in US interest rates to contain the fallout from the sub-prime crisis.
SingCapital said it receives about 60 enquiries on refinancing each month.
Among these, seven in ten are private property owners.
Banks have also been enticing more customers with Maybank, Standard Chartered Bank and DBS among the most aggressive in the home loans market.
Mr Chia added: "There're some packages currently that offer 2.88 fixed for three years with a cash back of one percent. If it's a refinancing case, the one percent cash back would be given to the owners one month after the loans is disbursed.
“So if you add this interest rate, minus the cash rebates, the cumulative rate is only seven over percent, on average every year it's about 2.5 or 2.6 per cent interest.
“And it gives you the stability to plan for other finances, knowing that your monthly instalment for the house is going to be fixed at that price for the next three years.
Even though this may look like a good time to consider refinancing mortgage loans, industry players said home owners should assess the different packages based on their individual needs.
They should also be aware of the potential risks arising from the US sub-prime crisis and inflation. - CNA/vm