Sunday, November 23, 2008

Good Time To Buy An Exec Condo?

Source : The Sunday Times, Nov 23, 2008

For those on a tight budget, EC units are an option to private flats

An executive condominium (EC) unit in Bishan was sold for a hefty $940,000 to a local buyer late last month.

A showflat in Bishan Loft, a popular executive condo. A unit there was sold for $940,000 last month. But not all EC units can command that price. -- ST FILE PHOTO

At $699 per sq ft (psf), the price of the 99-year leasehold 1,346 sq ft unit was comparable to that of some private apartments.

'The buyer, a permanent resident, bought it after the Lehman Brothers collapse. She likes the location and the view from the high-floor unit,' said ERA agent Jacq Chong.

Ms Chong, who has brokered nine Bishan Loft deals at above $900,000 each since September, said buyers like the central location. The EC is within walking distance of Bishan MRT station.

ECs come with condo facilities but have sale restrictions similar to those for public housing. They were introduced in 1995 to bridge the gap between public housing and private apartments. The apartments are aimed at Singaporeans who can afford more than an HDB flat but may find private property out of their reach. New EC units can be bought only by households earning not more than $10,000 a month.

The Bishan Loft sellers who secured those healthy deals were lucky, as such transactions are no longer possible.
















'Certainly, ECs are not crisis-proof,' said PropNex chief executive Mohamed Ismail, adding that EC unit prices could easily be affected by the downturn.

Indeed, two units at Bishan Loft were transacted in the past fortnight at $590 psf and $620 psf, said Ms Chong. 'Location is very important. Although prices at Bishan Loft have come down, its value should not be affected as much as the other ECs.'

Still, this would be bad news for sellers - but good news for buyers who might want to start looking and planning. Those with a smaller budget would be glad to know that not all ECs command the same prices as Bishan Loft.

There are 23 completed ECs in Singapore. Most are in outlying areas like Choa Chu Kang and Woodlands, which means they would command much lower prices.

'Buyers can consider an EC unit instead of an HDB flat if they can afford it. EC units may have more potential for capital appreciation as they are renovated and have condo facilities,' said HSR Property Group executive director Eric Cheng.

DTZ Research senior director Chua Chor Hoon added: 'For those who need to buy now, ECs are a good choice if they do not want to overstretch themselves with a private condo.'

By renting them out, they could get a yield of about 4 per cent, similar to that for a 99-year leasehold private condo, said Knight Frank's director of research and consultancy Nicholas Mak.

Like HDB flats, EC units are subject to a minimum occupation period of five years. This means that they cannot be sold within five years. They also cannot be leased out as a whole unit during that period.

After five years, they can be sold, but only to Singaporeans and permanent residents. They become private property after 10 years, when they can also be sold to foreigners.

Prices of EC apartments that are 10 years old and above could be about 5 to 8 per cent higher than newer EC units, said PropNex's Mr Mohamed Ismail.

Before an EC unit is 10 years old, its market is limited so sellers will not be able to raise prices significantly, said Mr Cheng.

'Some sellers may want to wait for higher prices if their EC unit is already nine years old so the best time to buy is when it is between five and eight years old.'

There has been a rise this year in the number of buyers of EC units as HDB resale flat valuations went up a lot, he said.

But HDB resale prices are expected to fall. Although EC prices may also fall, there is a positive side in that they may rise once the ECs reach 10 years of age.

Still, Mr Mak cautioned that the gains may be insignificant and advised buyers to get an EC unit with a view of living in it in the longer term. He said capital gains after privatisation will not be big as the EC market tends to be limited to Singaporeans and permanent residents.

'They are mostly HDB upgraders who are price-sensitive.'

Non-resident foreigners typically prefer districts 9, 10 and 11 and not the suburban areas where most ECs are located, he said. 'EC prices also tend to be a bit of a laggard in a period of price appreciation.'

Buyers should also note that an EC would need more maintenance by the time it is 10 years old. This extra investment to maintain the property may cancel out the possible gains, he added.

Shophouses To Become Hotel

Source : The Straits Times, Nov 24, 2008

$12m project involves a row of nine pre-war Peranakan-style units

A ROW of nine pre-war shophouses, in the Peranakan enclave of Katong, are to be converted into a 'character' hotel aimed at leisure and business travellers.

Construction of the $12 million hotel on East Coast Road will start early next year and end in 2010.

Santa United International Holdings, a home-grown firm that started in the petroleum trading business but now boasts a growing hotel arm, will develop the project.

It will turn the property into the 67-room Santa Grand Hotel East Coast, keeping the conserved Peranakan-themed facade in the process.

The hotel will cover a land area of 1,150 sq m and will have a total gross floor area of 3,091 sq m.

This will include a new five-storey extension with 750 sq m of gross floor area at the back of the two-storey shophouses.

Some back portions of the shophouses will give way to the new block.

There will be a lap pool on the roof and a cafe, a restaurant and two shop units on the ground floor, where there will be alfresco sitting.

Santa United managing director Ng Cheng Lock told The Straits Times that he wanted to turn the property into a hotel because it is a rare stand-alone row of conserved shophouses situated in a charming area with a rich historical and cultural value.

Katong is home to many well-known eateries, particularly those serving Peranakan cuisine. And it was the place where Singapore's wealthy elite set up homes in the late 19th to the mid-20th centuries.

When the opportunity to buy the row en bloc arose more than a decade ago, MrNg jumped at it. He paid about $17 million then as it was at the height of the property market, he said.

The hotel, near the Holy Family Church, will be a cosy character establishment, rather than a hip or upscale boutique one like Hotel 1929, he said.

While Mr Ng considered putting a hotel on the site a few years ago, work began on plans and paperwork only a year ago.

Provisional permission from the Urban Redevelopment Authority came about two months ago in a ruling that included changing the land use from 'commercial' to 'hotel' and the go-ahead for the extension.

Some of the 12 tenants occupying the shops or the offices have already moved out. Santa, which also operates from the shophouses, is in the process of moving to a new office in Changi South.

The Hotel Licensing Board said Santa Grand Hotel East Coast will be subjected to a new hotel ruling that requires hotels along Joo Chiat Road and its surrounds to be let only at full-day rates from next year.

But Mr Ng is unperturbed as the firm plans to charge a daily rate of about $200. Other hotels in the Santa group also now charge daily rates, he said.

Santa owns five hotels under the Santa brand name and manages Victoria Hotel.

It started with Santa Grand Hotel Aljunied, known formerly as Sunwell Hotel, in Geylang a decade ago, and the group now has Santa Grand Hotel in West Coast and Santa Grand Hotel in Little India.

Its 80-room Santa Grand Hotel Bugis - located in two buildings, one a new development and the other a conservation house - is set to open early next year.

But the hotel in East Coast Road will be its grandest property, said Mr Ng.

Santa, which employs 130 people, recorded a turnover of about $70 million last year. Its hotels has some cross-over clients from its petroleum trading business, he said.

尽管经济前景不明朗 组屋价格将保持平稳

Source :《联合早报》November 23, 2008

尽管经济前景不明朗,组屋价格将保持平稳,而迎合低收入者需求的二房和三房式组屋,预计明年会推出数百个单位。

国家发展部长马宝山说,建屋发展局制定组屋价格的原则是市场蓬勃时,确保不会急剧上升;市场疲弱时也不会迅速下滑。这是为了让国人购买的组屋保值,使那些希望下迁到较小单位者不会因房屋贬值而严重受影响。

马宝山昨天在淡滨尼太阳广场公园举行的居民环保活动上受访时,也强调政府还是希望国人居者有其屋,宁可协助有经济困难者搬到更小组屋,拥有日后可增值的房产,也不愿鼓励他们租组屋。

兴建更多小型组屋

因此,政府将继续设法帮助低收入者拥屋,一个做法是兴建更多小型组屋。建屋局今年推出的8000个预购组屋(BTO)单位中,有1000个是小型组屋。视需求而定,它今后几年每年也可推出至少2000个二房和三房式单位。

除鼓励有经济困难者大屋迁小屋,政府明年第一季也会实行较早前宣布的屋契回购计划(Lease Buyback Scheme),让低收入年长者同时拥有稳定的入息和栖身之所。

尽管他再三强调租赁组屋只供真正贫困和有需要者租用,但由于预计下来有更多人陷入经济困难,因此当局也在兴建新的租赁组屋,接济5到10%的贫困者。他较早前曾透露,将在三年内增建20%租赁组屋,近5万个单位。

谈到建屋局如何帮助拖欠贷款的屋主,马宝山吁请屋主和建屋局合作,探讨更长远的解决方法。

他说:“与其住在较大的组屋并长期拖欠贷款,不如考虑迁入较小组屋。我已交代建屋局尽量帮忙,仔细研究每个个案,处理方式要有人情味,但也要和屋主研究更长远方案,助他们建立更稳固的经费基础。”

国家发展部政务次长孟里齐博士星期二在国会上透露,截至上月有3万3000个屋主拖欠贷款超过三个月,占42万户组屋贷款家庭不到8%。

马宝山说,建屋局一直都在协助这群屋主,一些在七年前经济放缓时求助的人,现在还在接受援助,因此他认为延迟偿还贷款,短期来说可能帮得上忙,长期却于事无补。

至于拖欠租金的租赁者,马宝山说,虽然这一群人稍有增加,而且会因为当前的经济危机下继续上升,但增幅并不显著。

国家发展部数据显示,尽管租赁者已获大量津贴,去年3月到今年3月,拖欠至少三个月租金的家庭达11%,相等于4700户家庭。

购新屋8000元收入顶限不变

另外,在经济前景低迷压力下,坊间再提出检讨提高购买新组屋8000元收入顶限的诉求。但马宝山认为,超出这个顶限的家庭仍属于收入在第80百分位数以上的中上阶层,有许多购屋选择,如购买转售组屋、执行共管公寓和私人公寓,他们也有能力承担房屋贷款。政府最后一次调高收入顶限是14年前,从7000元提高到8000元。

马宝山说,这个诉求时不时会浮现,但政府眼前较关注的是低收入者,因为经济危机对他们的影响更大。

他也针对市镇理事会投资累积基金的课题重申国家发展部立场,指出规定市镇会只能将35%的累积基金投资在公司债券、基金或股票上是颇严格的限制。他说,国家发展部只能扮演设定大体原则的角色,不应过于限制个别市镇会的决定能力。

但他透露,它正在探讨如何衡量市镇会的表现,并为此设定指标。