Singapore property

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An insightful article by Todayonline. (7 July 2021)

Mr Ravi Menon, Managing Director of the Monetary Authority of Singapore, shared that market processes are allocating an increasing share of national income to income from property and other financial assets and a reducing share to income from work.

Read more at https://www.todayonline.com/singapore/rising-property-prices-key-driver-wealth-inequality-ills-hereditary-meritocracy-exist-ravi?cid=emarsys-today_TODAY%27s%20new%20morning%20briefing%20for%20July%208,%202021%20%28ACTIVE%29_newsletter_08072021_today

Rising property prices a key driver in wealth inequality, ills of ‘hereditary meritocracy’ exist: Ravi Menon SINGAPORE — A key driver in worsening wealth inequality in many parts of the world is the rising price of property and it is a worrying trend, the head of Singapore’s central bank said.

Buyers, you've plenty to choose from. Choose wisely, and take your time.

Reference:

https://www.bloomberg.com/news/articles/2019-06-06/24-000-vacant-apartments-in-singapore-show-extent-of-oversupply?srnd=premium-asia

Singapore Has 24,000 Empty Apartments (And 44,000 More on the Way ) In tiny Singapore, where you can drive the length of the island in under two hours, there are 24,000 vacant apartments.

Unsold units (approximate) for now:
* 39,000 from GLS and collective sale sites with planning approval
* 5,000 from sites pending planning approval

And, there are about 24,000 existing private housing units that remain vacant.

The 5 confirmed list sites are private residential sites (including one executive condominium site with 480 units) that can yield total of about 1,715 private residential units.

In total, the 5 confirmed and 8 reserve list sites can yield about 6,430 private homes, 92,000sqm gross floor area (GFA) of commercial space and 1,100 hotel rooms, according to the Ministry of National Development (MND).

Reference:

https://www.straitstimes.com/business/property/government-to-cut-supply-of-private-homes-on-confirmed-list-for-land-sales?xtor=CS3-18&utm_source=STiPhone&utm_medium=share&utm_term=2019-06-06%2011%3A06%3A43

Government cuts supply of private homes on confirmed list for second half land-sales programme by 15% This is due to a drop in demand and a large supply of private homes, said MND.. Read more at straitstimes.com.

When numbers are not true reflection of the property market.

'Under the Planning Act, it is illegal for owners of private residences to rent, sublet or share their homes with others for under six months. Following a 2015 public consultation by the URA, the bar was lowered to under three months for private homes from June 2017. For HDB flats, the minimum stay is still six months.'

Two Airbnb hosts charged over illegal home-sharing in first case under new laws SINGAPORE - Two men were charged on Tuesday (Dec 5) with providing unauthorised short-term stays to tenants.. Read more at straitstimes.com.

SLA will take over the land occupied by 191 private terrace houses at Lorong 3 Geylang when its current lease expires on 31 Dec 2020.

SLA to take over land at Lorong 3 Geylang when lease expires in 2020 Every owner of the affected 191 terrace houses will be assigned a SLA officer, who will guide them through the lease expiry process.

Owners of a condo unit at Gallop Gables were ordered by the Strata Titles Board to remove the new windows and sliding doors and replace with those identical to the original design.

Original items can be replaced but not with items of changed designs, dimensions and opening styles that affect the external facade.

Couple ordered to reinstate original balcony fixtures A couple at a condo unit at Gallop Gables in Farrer Road was ordered by the Strata Titles Board to remove new windows and sliding doors at the balcony and replace ...

Oversized air-con ledges - some almost the length of a bus - in a newly built condominium in Sengkang have cast the spotlight on a loophole that allows developers to build them without having them counted as part of the gross floor area (GFA).

Yet, they are allowed to charge home buyers for that same space.

Each year, Singapore's private property owners pay $780 million for air-con ledges, estimates consultancy International Property Advisor chief executive Ku Swee Yong.

Condo buyers lose cool over 'massive' air-con ledges Oversized air-con ledges - some almost the length of a bus - in a newly built condominium in Sengkang have cast the spotlight on a loophole that allows developers ...

Total debt servicing ratio:

No change to the 60% threshold, but it no longer applies to mortgage equity withdrawal loans with loan-to-value ratios of 50% and below. Such loans allow borrowers to use residential properties as collateral to get cash. This change benefits asset-rich but cash-poor retirees.

Seller's stamp duty (SSD):

Apply only to homes bought on or after 11 March 2017.

The SSD holding period will be cut to three years, down from four i.e. properties sold more than three years after purchase will not attract SSD.

The SSD rates will also be lowered by four percentage points for each tier.

Some property curbs eased: But what do TDSR, LTV, SSD and ABSD mean? SINGAPORE - The Government announced tweaks to property cooling measures on Friday (March 10).. Read more at straitstimes.com.

Here it goes.... plugging the loophole.

Govt eases property cooling measures: sellers' stamp duty cut; TDSR relaxed SINGAPORE - The Government has relaxed some property cooling measures. The new rules take effect from March 11.. Read more at straitstimes.com.

'Government intends to plug a loophole that allows property buyers to avoid stamp duty by purchasing shares in a holding firm rather than buying the property directly.'

Government to plug loophole in residential property stamp duty The Government intends to plug a loophole that allows property buyers to avoid stamp duty by purchasing shares in a holding firm rather than buying the property ...

Recent bulk sales of unsold residential units which developers have done to avoid the Qualifying Certificate penalties.

For The Nassim, it was estimated that developer CapitaLand would have to pay S$9.3m in the first year and S$27.9m by the third year, if these 45 units remain unsold.

Banker Wee Cho Yaw buys all 45 unsold units at The Nassim for $411.6m One of Singapore's richest men, veteran banker Wee Cho Yaw, has bought all 45 unsold units at upmarket condominium, The Nassim, for $411.6 million.. Read more at straitstimes.com.

Happy New Year to you!!!

Wishing you and your loved ones a year full of goodness, blessings and love!

The top-10 loss-making properties are in two affluent neighbourhoods, Sentosa Cove and the Central area.

All of them were bought during the property boom years in 2007, 2011 and 2013. Seven were bought in 2007.

Boomtime buyers now big losers More than 800 condo units were resold at a loss this year as economy slows An ultra-luxury apartment with a sea view at Sentosa Cove has made the largest loss in the property market so far this year. Originally bought for $11 million in 2011, the condominium unit at Seascape was sold for $6.35 milli...

Central Boulevard white site:

• 99-year leasehold
• Site area: 10,868.7 sq m
• Gross plot ratio: 13
• Maximum GFA: 141,294 sq m (1.52 million sq ft), up to 50 storeys,
Min. 100,000 sq m (70.77%) for office use.
Max. 5,000 sq m GFA for retail use (likely to maximise)
Balance may be utilised for office, school, hotel, serviced apartment or residential.
• Expected breakeven: S$3,000 - S$3,100 psf
• Expected completion: 2020
• Entire development - excluding hotel, serviced apartment and residential use - can have no more than three strata lots, i.e. strata subdivision of office units for sale as multiple individual units not allowed.
• Adjacent site (Asia Square Tower 1) sold for S$2.02b (S$1,409 psf ppr) in September 2007.


• All bids exceeded expectations of S$1.54b to S $1.8b:

1. (Highest) S$2.569 b (S$1,689 psf ppr) 16.4% higher than second highest bid and 34.5% higher than the lowest.
Wealthy Link - IOI Properties Group Bhd of Malaysia

2. S$2.207 b (S$1,451 psf ppr
Mapletree Trustee Pte Ltd (in its capacity as Trustee-Manager of Wallich Trust, Duxton Trust and Maxwell Trust) -- Mapletree Investments.

3. S$2.187 b
NSG Real Estate Pte Ltd, NSG Hotels Pte Ltd and NSG Land Pte Ltd - Nanshan Group

4. S$2.126 b
Marina Central Development Pte Ltd -- Hongkong Land-Cheung Kong

5. S$2.005 b
Crescendo One Pte Ltd (as Trustee-Manager of Crescendo Trust) and GE Hotel (CB) Pte Ltd --CapitaLand group and Great Eagle Group

6. S$1.985 b
Yanlord Commercial Property investments Pte Ltd

7. S$1.91b
OUE Limited, Guangzhou R&F Properties Co Ltd and Tang City Properties Pte Ltd

IOI places top bid of S$2.57 billion or S$1,689 psf ppr for Central Boulevard white site A 99-year leasehold white site with a mandatory office component along Central Boulevard in Singapore has attracted seven bids.

Developers of de-licensed projects need to submit to URA from this month, nett prices of units sold, i.e. taking into considerations incentives, discounts, or any rebates given.

De-licensed projects refer to projects that have obtained Certificate of Statutory Completion and where individual titles have been issued. Example of such projects are OUE's Twin Peaks (deferred payment scheme and discounts), Ardmore Three by Wheelock Properties (15% discount and rebate for the Additional Buyer's Stamp Duty).

De-licensed projects' net prices to be used in URA index Incentives and discounts offered by developers of de-licensed private projects will be excluded when the Urban Redevelopment Authority (URA) compiles its quarterly ...

Home owners refinancing their home loans no longer need to abide by the Total Debt Servicing Ratio (TDSR), so as to take advantage of current low interest rates even if refinancing would exceed the TDSR limit of 60%.

'The changes affect two groups of people: People with existing property loan for the house that they live in and people with an existing investment property loan.

For the first group, a homeowner who wants to refinance the mortgage on the house that he lives in will now be exempt from the TDSR's 60-per cent rule, regardless of when he bought the property.

For the second group, a borrower can refinance his investment property loan above the TDSR threshold regardless of when the property was bought, if he meets two conditions:

- He commits to a debt reduction plan with his bank to repay at least 3 per cent of the outstanding balance on his property loan over three years, and

- He passes the bank's credit assessment.'

Reference: http://www.straitstimes.com/business/property/changes-to-tdsr-rules-6-things-you-need-to-know?utm_campaign=Echobox&utm_medium=Social&utm_source=Facebook&xtor=CS1-10 =1472794321

Total debt servicing ratio rules tweaked for refinancing of existing home loans SINGAPORE - Existing home owners looking to refinance their home loans will enjoy more flexibility with relation to the Total Debt Servicing Ratio (TDSR), the Monetary Authority of Singapore said on Thursday (Sept 1).. Read more at straitstimes.com.

Developers' private home sales halved to 536 units in June from 1,058 units in May DEVELOPERS sold 536 private homes in June this year, down from the 1,058 units in May this year but higher than the 375 units that they found buyers for in June ...

No lifting of property cooling measures till 2017: Redas seminar speakers PROPERTY cooling measures are unlikely to be unwound this year, given that interest rates are expected to stay low for a longer time amid greater uncertainties arising from the "Brexit" vote. Read more at The Business Times.

Report suggests that '"unless property prices plunge suddenly and dramatically", property cooling measures may not be lifted.'

Property cooling steps not going away yet: Report The pressures on the economy from slower growth and high home prices may prevent the Government from unwinding its property cooling measures, according to Maybank Kim Eng.. Read more at straitstimes.com.

'Singapore, Hong Kong and Australia, which face headwinds including oversupply and high prices, may see money flowing into property as investors flee to safer assets as volatility picks up, according to global commercial real estate services firm CBRE Group.

"Capital will look for safe havens, countries that offer stability," Henry Chin, head of research for Asia-Pacific at CBRE, said in an interview in Singapore. "Mature, developed markets will look attractive again."'

London's loss may be Asia's gain as property funds seek safe havens like Singapore SINGAPORE (BLOOMBERG) - London may have just shed its safe-haven property market tag with the UK's vote to break away from the European Union. That's good news for real estate markets in Asia that offer stability.. Read more at straitstimes.com.

Katong Shopping Centre is up for collective sale for the 3rd time. Reserve price S$630m, i.e. S$2,248 psf ppr.

1st en bloc attempt in January 2010 for S$445m. The 2nd was in June 2014

Katong Shopping Centre put up for collective sale for a third time According to marketing agent Cushman & Wakefield, owners controlling at least 80 per cent of the share value and total area have agreed to the proposed sale.

Jalan Besar Plaza is up for sale again. This time, minimum price of S$380m, or S$2,115 psf ppr. Last November, there wasn't any bid at S$390m.

Closing date for the tender is Jul 14, 3pm.

Jalan Besar Plaza up for sale again, this time for S$380m

It's Monday! Wishing you all a great week!

If you're facing any challenges, consider 'dividing and conquering' one issue at a time. For those that you don't have an immediate solution, don't lose heart. As the Chinese saying goes, 船到桥头自然直; literally meaning 'when the boat gets to the pier, it will naturally straighten itself', i.e. your challenges today will be resolved eventually. So smile!

'Developers have been getting creative with schemes to entice buyers back to a slow market but some of them are tripping up over the fine print of the regulations.'

Developers' offers catch officials' attention Developers have been getting creative with schemes to entice buyers back to a slow market but some of them are tripping up over the fine print of the regulations.. Read more at straitstimes.com.

Article on Serene Centre (along Bukit Timah Road) - 'Out of a total of 32 shop spaces counted, five were closed for business, and another five were completely vacant.'

[Old Malls] Serene Centre: School's out, let's hit the mall - The Middle Ground by Glenn Ong  LOCATED along the busy junction of Bukit Timah Road and Farrer Road, Serene Centre...