经济不景 碧山私人组屋申购冷淡

Source :《联合早报》November 16, 2008

受环球金融风暴影响，公众对碧山怡然阁私人组屋的反应平淡，购屋时显得更认真谨慎，全部480个单位，申请者约七百名，平均每单位只有约1.5人申购，是历来最少的。

将建在碧山24街的怡然阁（Natura Loft）组屋是建屋发展局第四个交由私人发展商设计、兴建和销售（DBSS）的组屋。申请昨天午夜12时截止。

碧山私人组屋怡然阁构想图。

依照申请程序，有机会选购者，可以多达供应的六倍，即2880。由于申请人数只有700名左右，因此怡然阁每个申请者，都将拿到一个轮候号码，明年1月选购。

中国青建地产公司是怡然阁发展商，它是第一个标得私人组屋项目的外国公司。发展项目常务副总经理李俊受询时说，示范单位开放两个星期以来，吸引一万多人参观。截至昨天傍晚6时，有约700人提出组屋申请。

这个申请情况远远不如过去三个私人组屋。

今年7月推出的宏茂桥私人组屋“Park Central@AMK”，超过2300人申请578个单位，平均每单位四人申购。

文庆路“City View@Boon Keng”私人组屋的714个单位今年1月推出时收到约3500份申请，每单位有五人争购。

首个位于淡滨尼的“The Premiere@Tampines”私人组屋项目获得公众最热烈的反应。616个单位吸引了约6000人申购，平均每间组屋有近10人抢购。

尽管碧山申请情况不如前三批私人组屋，李俊说：“这样的反应还算不错，最后一天有约1000人参观了示范单位，近100人提出申请。因为申请午夜才截止，我们需要时间计算总申请人数。”

他认为，这次的申请情况和以往的不同，许多有兴趣者显得更加认真，他们思考得更加透彻。

他举例说，许多买家会针对申请条例、贷款等等提出很细致的问题，显示他们是在慎重考虑后，才下决心申请的。

李俊也透露，申请者都有亲自参观过示范单位，不少公众更是扶老携幼多次前来参观。

他说：“我就碰到一个已在几天前提出申请的客户，昨天又带着全家大小参观示范单位，可见真正想购买组屋的人，真的对我们的产品有兴趣。”

针对为何碧山私人组屋的申请情况有欠理想，市场人士表示有三大原因：怡然阁售价较高、发展商推售的时机不佳，以及有更多的购屋选择。

ERA房地产公司助理副总裁林东荣昨天受访时说，经济前景不明朗，裁员的消息也纷纷传出，因此这个时候推出组屋并不理想。

他说：“动荡不安的全球金融环境影响了消费者的信心，大多数消费者都暂时搁置购屋计划。”

林东荣也认为碧山组屋的售价偏高。四房式面积95平方公尺，售价46万5000元到58万6000元，平均每平方英尺519元；五房式面积120平方公尺，售价60万元到73万9000元，平均每平方英尺524元，可说是历来最贵的新组屋。

他说：“这是一项长期的投资，面对当前的金融危机，消费者在作出任何购屋决定前，将显得更为谨慎，会三思而行。不少人更宁愿把同笔钱花在私人公寓上。”

博纳集团（PropNex）总裁伊斯迈则认为，消费者除了可申购私人组屋外，也有其他的购屋选择。

伊斯迈说：“许多发展商对房地产的售价越来越敏感，开始调低私人公寓的价格。”

他举例说，位于兀兰地铁站附近的Rosewood Suites就刚宣布以每平方英尺580元推出，和碧山私人组屋的价格相差不远，这样的价钱非常吸引人。

伊斯迈还说：“现在虽有600多人申请碧山怡然阁私人组屋，但如果20至30％的申请者到最后时刻选择放弃购买，我也不会感到惊讶。”

怡然阁是三座40层楼高组屋，有类似公寓的装潢，共有320个五房式和160个四房式单位，估计2011年底建成。

Market-Based Pricing Fairest For New HDB Flats: Mah

Source : The Straits Times, Nov 19, 2008

WHEN pricing a new HDB flat, costs are not taken into account. Its price is based on what the unit is worth at the point of purchase.

Calling it a market-based approach, National Development Minister Mah Bow Tan said it was the fairest way of pricing new flats.

'It reflects what the flat is worth at the point of purchase, which may have no relation to what it cost to build,' he added.

Mr Mah gave this response in Parliament yesterday to Mr Liang Eng Hwa (Holland-Bukit Timah GRC), who had asked if the Government would consider pricing flats according to costs.

The minister also said that as the HDB did not take into account costs, its building programme suffered losses of $530 million a year over the last three years.

He said a typical four-room flat in Sengkang costs more than $300,000 to build. This is above the $200,000 to $260,000 price at which HDB sells it.

He noted that there were concerns over the high prices of premium flats like those in Pinnacle@Duxton, with prices ranging from $457,000 to $645,000.

But the prices reflected the value of the flats, which are located in Tanjong Pagar. For every unit on sale, seven people wanted to buy it, said Mr Mah.

It shows people are willing to pay for flats with good value, he added.

That the market is the main driver of prices of resale HDB flats was also highlighted by Senior Minister of State for National Development Grace Fu.

Madam Ho Geok Choo (West Coast GRC) had asked why the cash that a buyer pays on top of the official valuation of a flat - known in the industry as cash- over-valuation (COV) - is proportionately so high for two- and three-room flats. Latest figures show the median COV for a two-room flat is $16,000 and for a three-room unit, $19,000.

Ms Fu said COV is based on several factors and varies in different segments of the HDB market.

COV also depends on market conditions and how much each buyer is prepared to pay, she added, noting it could drop and enter negative territory.

However, it is often positive. For instance, the median COV for two-room flats range from $4,100 in Ang Mo Kio to $23,000 in Bukit Merah.

Coming Up: More Smaller HDB Flats

Source : The Straits Times, Nov 19, 2008

Two- and three-room units in demand from low-income families, downgraders

SINGAPORE will have more two- and three-room HDB flats next year to meet rising demand.

The Government is building these smaller flats to help more low-income families own homes and those home owners who need to downgrade because of financial difficulties.

National Development Minister Mah Bow Tan made the announcement in Parliament yesterday.

However, he did not say how many more of these flats were to be built.

Instead, he stressed these flats were to meet a 'niche demand' and that the bulk of HDB homes being built will be three- and four-roomers.

The Housing Board stopped building two- and three-roomers in the 1980s.

But in 2004, three-roomers were re-introduced. Two years later, the HDB said it would resume building two-roomers to meet increasing demand and, since then, it has put on sale 539 of them.

The growing popularity of these smaller flats is a turnaround from the mid1990s when the overwhelming demand was for bigger four- and five-room flats, with few takers for the two- and three-roomers.

However, since 1997, following the Asian financial crisis, more and more people have clamoured for them as they were forced to downgrade.

These smaller homes, meant for lower-income families, cost between $77,000 and $275,000 each.

Adding to the demand in recent years are older singles, who have been snapping up the three-roomers in central areas such as Tiong Bahru and Queenstown.

Most recently, there was overwhelming interest when 150 smaller flats - from studios to three-roomers - were put on sale last month. These were sited across the island, from Geylang to Sengkang and Marine Parade.

In one week, 2,426 applications were received.

Realtors interviewed expect the demand to keep on rising, especially with the lousy economic outlook.

PropNex CEO Mohamed Ismail foresees the 2002 scenario re-enacted next year. 'In the last cycle, with rising retrenchment figures, we saw many people who couldn't maintain their four- and five-room flats selling them for smaller ones, some doing so even at a loss.'

In Parliament yesterday, MPs worried aloud about the economic impact of the global recession on their residents.

At least three MPs, including Madam Cynthia Phua (Aljunied GRC), said they were seeing four to five people each week seeking cheaper housing options.

Replying, Parliamentary Secretary for National Development Maliki Osman assured them the Government would do all it can to help Singaporeans hold on to their homes in bad economic times.

Mr Mah noted that HDB flats are affordable, pointing out that on average, owners use less than a quarter of their monthly household income for their mortgage. This is below the international benchmark of 30 per cent, he said.

Also, seven out of 10 new flat buyers service their mortgage entirely using their Central Provident Fund savings. 'Based on this, HDB flats have remained affordable, even though property prices have risen over the years in tandem with Singapore's economic growth,' he said.

Developers Want Govt To Turn Back Clock On Several Policies

Source : The Business Times, November 19, 2008

Wish-list includes reinstatement of deferred payment, old formula for DC

Some property industry players are yearning for the good old days, hoping the government will reverse some of the changes in property policies made in the past two years and thus go beyond the usual exemptions and rebates on property taxes with its off-Budget/Budget packages.



















Such a strategy may be timely in helping to stimulate currently flagging property demand given that the measures were rolled out when the market was sparkling.

Developers are hoping the government will reinstate the deferment of stamp duty on property purchases where the property is under development (this was removed in December 2006) and revert to the old formula for computing development charge (DC) rates, based on 50 per cent of the appreciation in land value arising from changing the use of a site or building a bigger project on it. This was raised to 70 per cent in July last year.

Also high on the developers' wish-list is a revival of the deferred payment scheme (DPS) - which was scrapped in October last year - to boost home purchases, with a qualifier that safeguards be introduced to address concerns that such schemes had spurred speculation.

A major property developer also suggested a demand-boosting measure in the form of changing the investment criteria for Economic Development Board's Global Investor Programme to allow a higher quantum for property purchase or even lowering the total threshold value.

Under a new option to the Programme announced in July 2005, a foreigner can be considered for permanent resident status if he invests at least $2 million in business set-ups, other investment vehicles, and/or private residential properties, with up to half of the investment allowed in private residential properties.

'More people taking up permanent residence or citizenship and landing on our shores will help the property market,' said the developer.

KPMG Tax Services executive director Leonard Ong said that granting exemptions or rebates on property taxes for completed commercial and industrial buildings will help landlords and hopefully they will pass on some of the savings to their tenants.

'Earlier this year, when property prices were on the rise, the government also raised Annual Values of properties. So based on this, owners would be paying more property taxes than last year. This makes it all the more important to introduce exemptions or rebates for property taxes,' he added. Property tax is calculated as a percentage of a property's annual value.

Developers are also hoping for property tax exemption for vacant land and land under development to reduce costs.

'During this period, the market is so quiet we cannot launch projects,' notes Ho Bee Investment chairman and CEO Chua Thian Poh.

Following the December 2006 rule change on stamp duty, property buyers are now required to pay stamp duty within 14 days from the date that the option to purchase is accepted.

The previous concession, introduced in June 1998, had allowed stamp duty payment to be deferred to the date of issuance of Temporary Occupation Permit for a project or date of sale of interest in the property, whichever was earlier, for properties under development.

Deferring payment of stamp duty for projects under development once more would lower upfront cash commitment for home buyers, some of whom may be stretched, especially since it could take a few years for the new homes they've bought to be completed, says Knight Frank managing director Tan Tiong Cheng.

Most developers are hoping the government will reinstate the DPS. They say DPS helped genuine home buyers, especially upgraders who may be able to sell their existing homes only when their new private home has been built.

Ho Bee's Mr Chua suggests modifications be made to DPS to allay concerns that it also facilitated speculation in the past.

'The most important thing is to require the buyer to secure a housing loan even if he does not need to draw down the loan immediately, to ensure a credit assessment of the buyer is done by the banks,' he said.

However, Ho Bee's Mr Chua disagreed with the suggestion by some analysts that the initial payment by the buyer - before the deferred payment kicks in - be raised from 10-20 per cent previously to 30 per cent, as that 'would not help home buyers much'.

Although developers are currently not in a race to redevelop their sites given the property slump, many argue that going back to the pre-July 2007 formula for computing DC rates - which creamed off a smaller portion of the enhancement in land value - 'would provide greater incentive for land owners to explore more productive use for their properties and could spur some activity', the head of a listed property group said.

Developers are also concerned about banks tightening financing to home buyers and to businesses in general, and hope the Monetary Authority of Singapore will use 'moral suasion' to send the right signal to banks.

4th Best Place To Invest In

Source : The Straits Times, Nov 19, 2008

THE global economy may be slowing, but Singapore is still one of top four places to invest in over the next five years, a survey of 260 global companies in 12 economies has found.

Singapore is still one of top four places to invest in over the next five years, a survey of 260 global companies in 12 economies has found. --PHOTO: SINGAPORE GP

The study, which was conducted in September and October and released on Wednesday by KPMG, ranked Singapore ahead of Hong Kong, and just behind China, the United States and India in terms of where companies would want to invest in.

Among the factors, companies highlighted Singapore's political stability, impartial rule of law, friendly tax regime and access to new customers as 'very important' when deciding to invest here.

However, the findings also showed that companies want the Singapore Government to do more to attract foreign talent and to lower taxes for businesses.

Mr Owi Kek Hean, KPMG's head of tax services in Singapore, said: 'We wanted to compare and contrast what businesses would like to see from the countries when deciding where to locate their operations.'

This is the first survey by KPMG on the importance of tax and demographics in influencing corporate location, which also tracks the investment decisions of companies over the next five years.

The survey includes responses from 20 Singapore-based multinational companies (MNC), each with a turnover of US$1 billion.

Mr Phillip Overmyer, the chief executive of the Singapore International Chamber of Commerce said of the results: 'That people are saying this is not earth-shattering, but the importance is in the timing of it.

'MNCs have said they want to make investments in the next two years, in the middle of the financial crisis we are in, and that these are the places they are going out of all the places in the world.'

'It confirms that people think Asia is the market of the future, that it will recover very early and it reinforces very strongly that Singapore will play a critical role in this development in Asia as the crisis starts to resolve itself.'

Mr Owi said what stood out for him was that Singapore businesses would like to see more tax incentives as well as looser restrictions on foreign workers.

In fact 70 per cent of respondents said that tax regime is an important factor in choosing where to locate their business, he said.

Another half of all respondents indicated that the tax policy of a country is more important than an educated workforce in deciding where to locate their business operations.

The survey also revealed that 65 per cent of respondents here look to the Goverment to work together with them to attract foreign talent. This is unlike in Europe where companies feel that attracting foreign talent is their own repsonsibility.

Mr Owi said: 'This shows that the expectations here is for a partnership between the Government and companies to bring in foreign talent.'