News

30 May 2016

Experts share suggestions for Fresh Start Housing Scheme

Experts hope that the 2016 Budget, which will be announced this Thursday (24 March), will solve some current problems with the Fresh Start Housing Scheme, reported Channel NewsAsia.

This scheme helps HDB tenants purchase their own flat, with a focus on families with young children, and those who previously owned a home.

But a key problem is fine-tuning the eligibility criteria to ensure that the beneficiaries really deserve such assistance, said DTZ’s Research Head Lee Nai Jia.

“I think this is a great scheme. The key problem is how we are going to identify this group and their income ceiling, and (how we are going to define) the type of benefits to give this group.”

According to Saktiandi Supaat, member of the Government Parliamentary Committee for National Development, the scheme provides a second chance to families currently leasing an HDB flat, particularly those who were forced to sell their original unit due to an unavoidable issue.

However, the support given should take into account the different circumstances of each household.

“There could be more support in terms of grants and there could also be some conditions for the grants to be disbursed,” said Saktiandi. For instance, families would first have to show proof that they have the means to pay for the new flats.

Aside from providing grants and the actual house, it is also important to educate families about responsible homeownership, financial management, and activities to keep their children in school, explained the Fei Yue Family Service Centre.

“We don’t want to come to a point where they are on the scheme, and then there is a setback, and they are penalised or thrown out of the scheme,” said the centre’s principal social worker, Lilian Ong.

“We could introduce some sort of readiness or transitional programme to prepare the whole family for this”, and this should run for six months, she said.

The Housing Board and the Ministry of National Development have held public consultations to gather suggestions on implementing the scheme. The feedback includes provision of concessionary loans and more grants, as well as shorter leases.

Picture Source: The Fresh Start Housing Scheme is targeted at families with young children.
Source copied: http://www.propertyguru.com.sg/property-management-news/2016/3/120536/experts-share-suggestions-for-fresh-start-housing-scheme

Wealthy Malaysians favour Singapore property

Singapore was ranked the second top choice for wealthy Malaysians who can afford offshore real estate, according to PropertyGuru’s latest market sentiment study.

Of 326 individuals surveyed online, 21 (seven percent) own a high-rise or landed home outside Malaysia. Of this, 20 percent have acquired a house in Singapore.

Meanwhile, Australia took the top spot, with 23 percent having bought a home there, while India and Germany were also among the most popular choices, with a respective 18 percent and eight percent of those surveyed owning homes there.

“According to other studies, many Malaysians choose Australia as their second home as it is located comparatively close to Malaysia at a few hours’ flight (away), and for its better working environment and better education system,” said the report.

Other countries favoured by those surveyed are Hong Kong (seven percent), Japan (six percent), China (five percent), Thailand (five percent) and the UK (four percent).

51 percent of the 23 respondents who own either overseas homes or non-residential properties noted that prices in those markets were cheaper than those in Malaysia, despite the softer ringgit.

The top reasons for buying offshore real estate are capital appreciation (30 percent) and children’s education (29 percent). 27 percent revealed that the overseas properties they have bought are situated in their countries of residence, while a similar percentage were attracted by good funding options.

Other reasons cited include favourable government policies (24 percent), retirement (23 percent), migration (20 percent), and relocation to a better environment (16 percent).

Moving forward, more Malaysians are now keen to purchase overseas properties, particularly in Australia, which continues to be the most popular market for 52 percent of 37 respondents. Other target markets for this group are Singapore (23 percent), Indonesia (15 percent), and the UK (14 percent).

Picture Source: Singapore is a popular property investment destination for wealthy Malaysians. (Photo: William Cho / Wikimedia Commons)
Source copied: http://www.propertyguru.com.sg/property-management-news/2016/3/120428/wealthy-malaysians-favour-singapore-property

Thai developers now building more luxury homes

Property firms in Thailand have already launched several residential projects targeted at the high-end market in the first quarter of 2016, reported The Nation. This is due to the high household debt, which continues to create uncertainty in other segments of the property market.

Anant Asavabhokhin, Chairman of Land & Houses’ Executive Board, reckons that the government should stimulate spending in the luxury segment, to help boost the overall economy. Land & Houses recently launched an upscale detached housing project in the Rama II area, and is one of a handful of developers hoping to cash in on the growing demand for high-end condos and detached homes.

And it doesn’t look as though this trend will subside anytime soon. Launching luxury units at this time helps developers to boost pre-sales, as banks are still reluctant to provide mortgages for the lower- and middle-income segments.

Sansiri’s most recent launch is a luxury condominium called 98 Wireless. The project is worth a total of THB 8.5 billion. It is understood that around THB1.2 billion has already been sold. Sansiri’s President Srettha Thavisin said while booking for the project isn’t scheduled to start till later this year, the company has accepted cash offers for two penthouses.

98 Wireless will only have a total of 77 units when completed, with prices starting at THB550,000 psm (S$21,425 psm). Sansiri will host an official grand opening ceremony once the development is ready in the second half of 2016.

Ananda Development is another developer that decided to launch a luxury condominium during the first quarter of this year. Ashton Silom is worth a total of THB5.8 billion, with prices starting from THB7.9 million (S$307,667) for a unit.

Picture Source: The interior of an apartment unit at 98 Wireless.
Source copied: http://www.propertyguru.com.sg/property-management-news/2016/3/120439/thai-developers-turn-to-building-more-luxury-homes

Developers confident of disposing units before ABSD deadline

Some developers in Singapore are optimistic they can sell all the remaining units in their private residential projects before the stipulated deadline, even if they don’t offer huge discounts, reported The Business Times.

Under the Additional Buyer’s Stamp Duty (ABSD) rules introduced in December 2011, these companies need to build, complete and sell all units within five years of purchasing the land. If there are any unsold units after that period, they need to pay a 10 percent levy, which was subsequently raised to 15 percent for land parcels purchased as of 12 January 2013.

According to SingLand’s General Manager Michael Ng, they are confident of clearing all units before the deadline, and they don’t intend to slash prices.

Last month, its luxury projects Mon Jervois and Pollen & Bleu in District 10 reported 61 and 94 unsold units respectively, while Alex Residences in Redhill had 173 unsold units. These developments will be penalised with an ABSD of 10 percent if there are any leftover units by February, June and December 2017, respectively.

“For boutique projects, our priority is to hit temporary occupation permit (TOP) quickly, as many interested parties for luxury homes want to see the completed units. For Alex Residences, we will clear all units before TOP,” he said.

Similarly, City Developments Limited (CDL) is bullish that they can offload all unsold units at Jewel@Buangkok and two joint venture projects, Bartley Ridge and The Venue Residences, before their respective ABSD deadlines in 2017. This is because the developments are located in established neighbourhoods, and the number of unsold units is low.

“There are no significant ABSD issues for the three projects which have been selling steadily,” said a CDL spokesperson. As of February 2016, there were three, 31 and 160 unsold units at these three developments respectively.

As of last month, the projects with the most unsold units are Malaysian developer IOI Properties’ The Trilinq (524 units), The Crest (365 units) by a Wing Tai-led consortium, and The Glades (331 units), jointly developed by Keppel Land and China Vanke.

Furthermore, SingLand or CDL could be hit with the heftiest ABSD penalty of approximately $70 million, based on their stakes in projects with leftover units, assuming there are still leftover units after the deadline.

Picture Source: Alex Residences in Redhill has 173 unsold units.
Source copied: http://www.propertyguru.com.sg/property-management-news/2016/3/120317/developers-confident-of-disposing-units-before-absd-deadline

Chinese nationals still buying Singapore homes for their kids

Despite facing weaker currencies and slowing economies, mainland Chinese and Malaysians remain the top foreign buyers of Singapore property, revealed DTZ.

Together, they bought 1,952 private homes in 2015, or 54 percent of total foreign purchases.

Specifically, sales to Chinese nationals fell slightly by 3.8 percent to 998 units, while Malaysian home purchases remained largely unchanged at 954 units.

“The devaluation of the Chinese yuan in August 2015 meant that mainland Chinese nationals found their purchasing power clipped, as their national currency weakened against the Singapore dollar,” said DTZ.

Still, both groups of foreign buyers posted healthy purchases last year compared to 2008, during the Global Financial Crisis, when mainland Chinese only purchased 362 private homes, while Malaysians bought 626 units.

“Singapore’s political stability, transparent real estate policies and strict rule of law positions the city-state ahead of many other countries as a place where investors enjoy a high level of certainty on returns. Many mainland Chinese also bought homes for their children studying in Singapore,” added DTZ.

Meanwhile, the number of Indonesian home purchases fell by 33.6 percent to 279 units, lower than the 618 homes bought in 2008.

Picture Source: Mainland Chinese and Malaysian buyers formed 54 percent of foreign home purchases in 2015.
Source copied: http://www.propertyguru.com.sg/property-management-news/2016/3/120261/chinese-nationals-still-buying-singapore-homes-for-their-kids

Katong bungalow put up for mortgagee sale

A single-storey bungalow in Katong, one of the few available freehold properties in the area with redevelopment potential, has been put up for mortgagee sale, revealed marketing agent DTZ.

Located at 85 Branksome Road, the house sits on 13,189 sq ft of land and has a gross floor area of around 9,000 sq ft. According to DTZ, the property has an indicative price of $16 million, or $1,200 psf.

Recent transactions of landed homes in the area have ranged from $1,200 psf to $1,400 psf. Last year, a 13,843 sq ft site at Branksome Road was sold for $16.3 million ($1,178 psf).

Under the Urban Redevelopment Authority’s (URA) Master Plan 2014, the site is zoned for residential use and could be redeveloped into a two-storey bungalow.

The plot can also be subdivided into a pair of bungalows or semi-detached houses, subject to the relevant authority’s approval, said the consultancy.

Nearby amenities include established schools and shopping malls. Dakota MRT station and two future MRT stations on the Thomson-East Coast Line are also within the vicinity.

Joy Tan, DTZ’s Head of Auction, expects strong interest for the subject property. “A landed housing redevelopment site of this size in the prestigious District 15 is rarely made available for mortgagee sale. The last known mortgagee sale was at least a decade ago.”

The sale is being conducted through an auction, which takes place on 30 March at The Amara Hotel.

Picture Source: View of the single-storey detached house at 85 Branksome Road. (Photo: DTZ)
Source copied: http://www.propertyguru.com.sg/property-management-news/2016/3/120056/katong-bungalow-put-up-for-mortgagee-sale