HDB Resale Flats Continue Climb As Private Homes Lose Steam

Source : The Straits Times, July 25, 2008

Housing Board resale flats continue to draw buyers as private homes lose their lustre.

Prices for HDB resale flats rose further by 4.5 per cent in the second quarter, higher than the 3.7 per cent increase from January to March.

The number of HDB resale transactions jumped by about 22 per cent, from about 6,360 cases in the first quarter to about 7,760 cases in the second. -- FILE PHOTO: ST

Continuing its lacklustre, private home prices rose just 0.2 per cent between April and June, compared with 3.7 per cent a quarter earlier.

The number of HDB resale transactions jumped by about 22 per cent, from about 6,360 cases in the first quarter to about 7,760 cases in the second.

The median Cash-Over-Valuation (COV) amount of all resale transactions in the second quarter was $20,000, a slight drop from the COV of $21,000 in the earlier quarter, said HDB on Friday.

Cases requiring COV made up 90 per cent of all resale transactions in this quarter, with the rest below valuation.















New flat supply
In the first six months, HDB launched a total of 4,524 new flats under the Build-To-Order (BTO) system, which provides the main supply of new flats.

Subject to demand, HDB plans to offer about 3,900 new flats under the BTO system over the next six months in Punggol, Sengkang and Bukit Panjang.

The total planned BTO supply of 8,400 new flats for this year will exceed last year's 6,000 units and 2006's 2,400 units.

This new flat supply will be in addition to flats offered under the balloting exercise for surplus replacement SERS flats, and balance flats from previous offers. HDB will provide more details of the BTO flats when the projects are launched

In tandem with rising rents for private residential properties, sublet rents for HDB flats also rose in the second quarter. The number of subletting transactions went up by about 15 per cent - from about 3,580 cases in the first quarter to about 4,120 cases in the second.

The total number of HDB flats approved for subletting rose to about 20,200 units, compared to about 18,700 units in the first three months.

New Tunnel From Sentosa Gateway To Ease Traffic

Source : The Straits Times, July 26, 2008

THE Government unveiled plans yesterday for a new tunnel that will link the entrance to Sentosa Island with Kampong Bahru and Keppel roads.

The 1.3km span is designed to relieve congestion around the Sentosa Gateway, which is expected to see a huge jump in traffic after the island's integrated resort opens in 2010.

'The area will require additional transport infrastructure to support the growth and maintain a positive travel experience for visitors,' said Land Transport Authority (LTA) chief executive Yam Ah Mee.























GRAPHICS: G. CHANDRADAS

The mostly two-lane tunnel, scheduled for completion in 2015, will only be open to traffic leaving the resort island, the LTA said. That is because it will pass near the North East and Circle lines, making for a tight fit.

The tunnel will start along the stretch between VivoCity and St James Power Station and end along Kampong Bahru Road and east-bound Keppel Road.

Drivers will be able to bypass the busy junction between the Gateway and Telok Blangah. About 6,000 cars now pass through the intersection during evening peak periods. That number is poised to rise to over 10,000 between 2010 and 2015 with the opening of the integrated resort, commercial buildings and condominiums.

The LTA said motorists who use the tunnel will see their travel time drop by 50 per cent to 10 minutes. Those travelling on surface streets will see their travel time drop by 25 per cent.

Officials opted for the outbound route because most of the evening traffic through the area are cars leaving Sentosa.

The tunnel announcement comes on top of other road works being done in the area that began in June. Crews are adding lanes to Telok Blangah Road and widening Kampong Bahru Road, among other things. These works are expected to be completed in time for the opening of the integrated resort on Sentosa.

The LTA will start preliminary work on the new tunnel, which includes laying cables, by the end of the year.

Tunnel works proper will begin only by 2011.

The LTA said there will be minimal disruptions for motorists.

Sharp Drop In Growth Of Private Home Prices

Source : The Straits Times, July 26, 2008

HDB resale flats, however, do well, strengthening in value

IT'S official: the private housing market has gone soft.

Prices peaked and rental growth braked sharply between April and June, with property consultants forecasting the beginning of a decline.

But Housing Board resale flats defied the trend and continued to strengthen in value as sales grew amid strong demand for cheaper homes.

















Private home prices inched up just 0.17 per cent in the quarter - the least in four years and well below the 3.8 per cent in the first quarter.

The minuscule rise, announced by the Urban Redevelopment Authority (URA) yesterday, was even below the 0.4 per cent increase the agency had predicted at the beginning of this month.

This is the first time that the official figure has come in lower than forecast, 'a strong indication that home prices are finally softening', said Ms Tay Huey Ying, director of research and consultancy at Colliers International.

Prices are being dragged down by stubbornly gloomy market sentiment, stemming from the slowing global economy, high inflation and erratic stock market, say experts.

Developers have started to price projects more 'realistically' and individual home sellers are accepting lower offers, leading to an overall moderation of prices, according to Mr Li Hiaw Ho, executive director of CBRE Research.

In prime districts, prices of luxury homes dipped for the first time in four years after a spectacular climb of almost 70 per cent since 2005.

'This is the first fall since the start of the property boom in 2004 and could be the turning point in the price trend,' said Mr Nicholas Mak, Knight Frank's director of research and consultancy.

City-fringe and suburban homes barely fared better, with prices rising below 1 per cent in the second quarter.

Growth in home rents also halved in the second quarter to just 2.5 per cent, the lowest in two years. This could be due to fewer expatriates coming in as well as landlords starting to lower their asking rentals, said Mr Mak.

CBRE's Mr Li predicts an 'inevitable' correction in prices 'to the tune of 5 per cent to 10 per cent' in the second half of the year.

But Ms Tay from Colliers believes Singapore's mid-term prospects remain positive on the back of the two integrated resorts. This will 'hold prices steady and ensure they do not fall by more than 3 per cent in the third quarter', she said.

Still, caution prevails amid a large chunk of unsold homes waiting in the pipeline. Developers are sitting on some 12,500 new homes that are ready for launch, said URA.

Hopeful homebuyer Timothy Gan, 27, was cheered by the news that prices may fall. 'I'm waiting for their prices to fall so I can get married,' said the civil servant.

Prices and rentals of offices also grew more slowly in the quarter, as firms eased pressure on office supply by moving out of the central areas.

The bright spot is the HDB resale market, where prices keep rising due to higher valuations and strong demand from upgraders, downgraders and permanent residents, said Mr Eugene Lim, assistant vice-president of property agency ERA Asia-Pacific.

Resale deals jumped 22 per cent to 7,760 transactions in the second quarter, boosted by more sales of bigger flats. A quarter of all flats sold between April and June were five-room and executive flats, said Mr Lim.

Yishun To Get Exciting New Facilities In Facelift

Source : The Straits Times, July 26, 2008

Among them are a library and possibly a shopping complex linked to interchange

YISHUN might be showing its age but it is in line for a radical renewal that will smarten up existing facilities and add exciting new ones.

Details of the rejuvenation plan were announced yesterday, and include additions to the town centre, including the Khoo Teck Puat Hospital, a new library, covered walkways and possibly a new shopping complex integrated with the bus interchange.

IN THE WORKS: More outdoor and sporting facilities will be built in Yishun under the plan to remake the estate. Also on the cards is a new boardwalk to connect the town centre to the outdoor areas. -- PHOTO: HDB

A new boardwalk will also connect the town centre to outdoor areas like Yishun Pond.

The plan, Remaking Our Heartland: Enriching My Yishun, is part of a nationwide Neighbourhood Renewal Programme announced by Prime Minister Lee Hsien Loong in his National Day Rally speech last year.

Its aim is to enhance the value of homes and neighbourhoods through upgrading and estate renewal projects.

'Through this initiative, the Government will build the HDB heartland of tomorrow to match the rising expectations of our people and make Singapore our best home,' said National Development Minister Mah Bow Tan, who outlined the Yishun details yesterday.

'Give us another five years and you'll be able to see the change in Yishun.'

Residents are keen on the plan. Mr Jef Ng, 27, who has lived in the area for 13 years, told The Straits Times: 'It is high time Yishun got a facelift. We have always felt somewhat neglected, but these new plans sound really exciting.'

ADDING VALUE: The upgrading and renewal projects aim to enhance the value of homes and neighbourhoods in Yishun. -- PHOTO: HDB

Mr Mah also officiated at the launch of the first Home Improvement Programme (HIP) in Singapore.

The HIP allows flat owners to have certain essential improvements carried out at the expense of the Government, which will also subsidise some optional ones.

Owners can vote on the work they want done at their estates and in their flats. Essential improvements include mending weathered concrete and replacing waste pipes, while optional ones refer to upgrades of toilets, entrance doors, metal grille gates and refuse hoppers.

Owners co-pay between $550 and $1,375 if they choose any of the optional improvements, depending on flat size.

Exhibitions have been set up in Yishun Street 21 to give owners a better idea of their options under the HIP before they vote on their choice of improvements.

Polling closes on Monday. HDB needs a minimum support of 75 per cent from eligible residents before works can be carried out.

'I encourage residents to take some time to tour this HIP exhibition and the Enriching My Yishun exhibition at the town centre,' said Mr Mah.

'With feedback and participation, we can make Yishun an even more vibrant and exciting place to live and play.'

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

Target 2009 and beyond

THESE are the enhancements Yishun residents can expect from 2009, based on the estimated date of completion:


By 2009

# Heritage Trail and Heritage Corner
This will raise awareness of Yishun's history.


By 2010

# Khoo Teck Puat Hospital
Built next to Yishun Pond, this will give patients access to a therapeutic garden.

# Family & Rowers' Bay
This capitalises on the water resources for leisure activities.

# Upgrading of park
The upgrade at Yishun Neighbourhood 6 will also include the first phase of a 7.5km-long cycle track around Yishun Ring Road.


By 2011

# Build-to-order (BTO) housing projects

The two separate BTO projects are Jade Spring@Yishun and Jade Spring@Yishun Phase 2.


By 2013

# A shopping complex integrated with the bus interchange

Tender for the project will be called in 2010.

# New road connecting Yishun to the Central Expressway

SOURCE: HDB

S'pore's Private Housing Hits Peak, With Q2 Prices Inching Up Just 0.17%

Source : The Straits Times, July 25, 2008

Home rentals are also down by half, but HDB resale flats continue to draw more buyers.

SINGAPORE'S private housing market appears to have peaked, with home prices inching up just 0.17 per cent in the April to June period.

This is the smallest rise in four years and well below the 3.8 per cent climb in the first quarter, according to the closely-watched data released by the Urban Redevelopment Authority (URA) on Friday.

The growth in private home rentals also halved, rising 2.5 per cent in April to June compared to six per cent in the previous quarter. -- ST PHOTO: CAROLINE CHIA

In the prime districts, home prices actually slipped by 0.1 per cent in the second quarter, after climbing some 30 per cent last year.

Less well-located properties fared slightly better in the latest tally. Home prices in the city-fringe areas rose 0.7 per cent, while those in the suburbs went up 0.9 per cent.

The growth in private home rentals also halved, rising 2.5 per cent in April to June compared to six per cent in the previous quarter.

However, the HDB resale market continued to go from strength to strength. Prices jumped 4.5 per cent in the second quarter, from 3.7 per cent in the first quarter.

The number of resale deals also went up 22 per cent to 7,760 transactions. Outside of homes, office and shop prices went up a mere 0.7 per cent, with rental growth for offices also slowing.

They rose 6.3 per cent in the quarter, down from 7.3 per cent in the first quarter. Shop rentals, however, jumped 5.2 per cent in the period, from only one per cent previously.

During the second quarter, prices of landed properties rose 0.6 per cent, compared with 3.9 per cent in the previous quarter.

Prices of detached, semi-detached and terrace houses went up 0.7 per cent, 0.5 per cent and 0.7 per cent respectively.

The URA said the price index for private homes - an indicator of inflation holding at 26-year highs - rose to 177.5 for the three months ended June from 177.2 in the previous three-month period.

'The rates of increase in the prices and rentals of private residential and office properties have moderated in the second quarter as compared to the first quarter,' said the URA, noting that prices are not uniform and vary from project to project.

But there are a number of of uncompleted private units in the suburban areas with prices 'at more affordable level', it added.

Rentals of private residential homes rose 2.5 per cent during the second quarter - from the 6 per cent increase in the previous quarter.


Supply in the pipeline

There were 67,569 private homes in the pipeline at the end of the second quarter. Of these, 43,473 units were still unsold.

About 46,500 units are expected to be ready by 2011. A total of 1,814 units were launched for sale by developers, which was more than the 1,343 units in the first quarter.

More uncompleted units were sold by developers in the second quarter - 1,417 against 730 in the earlier quarter.


Office rentals up 6.3%

Overall rentals for office space, based on leases which began in the second quarter, rose by 6.3 per cent, compared with 7.3 per cent from January to March.

The median rentals were between $14.7 and $6.47 psf per month.