Monthly Archives: July, 2013

A rough guide to buying an HDB for single Singaporean.

The HDB has introduced several initiatives help singles Singaporean in get their home in recent years.This is the first time a BTO project will offer units just for them. Previously, singles aged 35 and above could only get their HDB homes from the resale market, with a grant of $15,000. This group can now apply for new flats under the BTO scheme. The applicant, must be a First-timer and is unmarried , divorced or widowed.

Guide for Single Singaporean buying HDB

Guide for Single Singaporean buying HDB

Source – Straits Time, HDB

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HDB launches more than 500 two-room flats, Single Singaporean can apply.

HDB BTO BuildingThe Housing Board has launched more than 500 two-room flats, up to a third of which will be reserved for singles. The bulk of these new flats in the Build-To-Order (BTO) exercise will be built in Sengkang and Yishun.

The Housing Board has introduced several initiatives help singles get their dream homes in recent years and this is the first time that a BTO project will offer units just for them. Previously, singles aged 35 and above could only get their HDB homes from the resale market, with a grant of $15,000. This group can now apply for new flats under the BTO scheme.

HDB will also now top up an additional $15,000 grant to singles who marry later, putting them on par with married couples who receive $30,000, starting with this latest BTO project.

The government has also extended the additional housing grant – up to $20,000 – for singles buying a resale flat from the open market. This is aimed at helping more singles buy their first flat, said the HDB in a statement on Tuesday.

Source – http://www.straitstimes.com

Singapore resale home prices drop 0.4% in June

price-fall

Resale home prices slid 0.4 per cent from May to June as more buyers chose new launches over resale units.

The rate of decline was slightly steeper than the 0.2 per cent dip from April to May, according to flash Singapore Resale Price Index (SRPI) figures released on Monday by the National University of Singapore.

The drop was largest in the central region at 1.5 per cent in June. This outweighed a 0.5 per cent rise in resale prices in non-central regions that month.

Resale prices of small homes, of 506 sq ft or less in size, declined 1 per cent in June.

Source – Straits Time

EC demand will soar

rainforest executive condominium (EC)

rainforest executive condominium (EC)

The executive condominium (EC) market is expected to heat up due to a number of factors including the ‘unintended effects’ of skyrocketing private property prices, latest government policy and supply concerns, according to SLP International.

Demand for executive condominium (EC) s will increase as prices of private condominiums and apartments outpace those of ECs. Prices of mass market condominiums located in the Outside Central Region (OCR) grew 16.3 percent from Q4 2010 to Q1 2013 while EC prices climbed only three percent during the same period, media reports said.

Based on SLP’s data, ECs have been popular with home buyers since they were reintroduced in Q4 2010. In fact, 94.4 percent of the 10,201 units launched for sale were snapped up as of end-June.

Moreover, the unintended effect of the recent Total Debt Servicing Ratio (TDSR) Framework could also push up demand for ECs, SLP added.

A buyer looking to upgrade from his current housing board flat could get a bigger housing loan for an EC than for private property, since the HDB monthly mortgage payment will not be included in calculations for the debt servicing ratio when banks assess the loan amount granted to an EC buyer.

Finally, the issue of supply also plays an important factor. SLP expects five new EC projects to be launched during 2H 2013. However, the next EC project is set to be launched only in August or September next year, leaving a gap in the market.

This is further aggravated by the government’s latest policy requiring developers to launch an EC project for sale 15 months after the completion of foundation works or from the date the land is awarded, whichever comes first.

“During this period, the pent-up demand for ECs is likely to grow and will increase the price power of the developers of the EC projects to be launched in 2014, thus driving up the prices of ECs,” said SLP.

 

 

Source – http://www.propertyguru.com.sg/

Interest rate rise ‘could hurt many households’

MORE than 9,000 households in Singapore may have trouble paying off their mortgages when interest rates rise, a new report warns.

Debts 1Analysts from Religare Institutional Research made this calculation based on the statement by the Monetary Authority of Singapore on Tuesday.

MAS had said that 5 to 10 per cent of borrowers here have probably overstretched themselves on their property purchases. That is, their total debt servicing payments, including those for their home, car and other loans, amount to more than 60 per cent of their income.

If mortgage rates were to rise by 3 percentage points, the proportion of borrowers at risk could reach 10 to 15 per cent, the MAS said.

The central bank had also pointed out that the vast majority of mortgage loans here are on floating-rate packages, so many households will face higher monthly repayments when interest rates rise.

Religare noted in its report yesterday that there are 90,000 new homes coming onto the market from now to 2016.

This “means over 9,000 troubled units could be on the market”, it said.

“That is more than half a year of new home supply and over 3 to 4 per cent of total private housing units.”Debts

Another worrying statistic, Religare said, is that only 70 per cent of existing property loans are for owner-occupied homes. This shows that investor demand in private homes is running quite high, the analysts wrote. “A little wobble in prices, combined with higher interest rates, might shake up a few property investors as well and add to the possible troubled units on the market.”

MAS deputy managing director Teo Swee Lian had said at the release of the MAS annual report on Tuesday that there is a much lower chance of a default if a loan is for an owner-occupied home.

Sourced from – http://www.stproperty.sg

June new home sales up 24%

J-Gateway

Sales of new private homes jumped 24% in June to 1,806 units from the previous month. The 738-unit J Gateway contributed 40.8% of sales last month, with 737 units sold within the first day of preview on June 28 at a median price of $1,486 psf. The other best-seller was the 616-unit Jewel @ Buangkok, which saw 282 units sold last month at a median price of $1,182 psf. This was launched 1 day before the Monetary Authority of Singapore (MAS)  introduced the Total Debt Servicing Ratio (TDSR) framework

Despite the seventh round of cooling measures introduced on Jan 11, developers chalked up total sales of 10,061 (excluding executive condominiums) in 1H2013, or an average of 1,692 units a month. Property consultants and analysts expect monthly sales to decline in July, partly as a result of the introduction at end-June of a total debt servicing ratio, which is to be capped at 60% of a property buyer’s monthly income. Chia Siew Chuin, Colliers International’s research & advisory director, forecasts July’s sales to be around 1,000 units, “before recovering in the following months”.

Original article – 

June new home sales up 24%
Monday, 22 July 2013

© 2013 – The Edge Singapore

Singapore property market will ‘stay healthy’

price-growthThere will probably be a correction in property market prices but a crash is unlikely, said OCBC Bank’s chief executive officer, Mr Samuel Tsien.

Part of the reason for its resilience is because the Singapore market holds a certain appeal to investors, he said.

Still, rising interest rates and cooling measures will have an impact, Mr Tsien told The Straits Times at the sidelines of a major China forum at the Shangri-La Hotel yesterday.

“As a result of the different measures imposed by the Government in making sure that speculative demand has been removed, there will be a slowdown in market activities,” said Mr Tsien.

“I don’t think there will be a crash in the market. There will be some downward adjustment to prices but that is healthy in the long term.”

The Government has instituted seven rounds of property cooling measures since 2009, with the latest round in January.

Other moves aimed at reducing the froth in the markets include lowering limits on loans and raising stamp duties.

The measures have worked to stabilise prices.

In the three months to June 30, prices for mass-market apartments rose 3 per from the previous quarter.

But prices of homes in the city centre dropped 0.2 per cent in the second quarter, after growing 0.6 per cent in the first.

More recently, the central bank put new curbs on loans to prevent borrowers from becoming over-leveraged.

The outlook for interest rates is that they will likely rise in the next two years.

The United States Federal Reserve has indicated that it will start to slow the pace of its monetary stimulus programme and eventually raise interest rates.

The normalisation of rates will help OCBC, said Mr Tsien.

He also feels that the bank, as well as others, will benefit from normalising interest rates, as “it’s going to be beneficial to banks with a significant amount of Casa (current account, savings account) balances”.

This is true for OCBC, as its “Casa balances represent about 51 per cent of our total deposits”.

Casa accounts combine savings and checking accounts to encourage consumers to save with banks.

A higher Casa ratio would mean that a bank has access to a cheaper source of funds, because it pays out less interest on Casa and can lend at a higher rate.

“That will benefit OCBC Bank because lower-yielding deposits or zero interest rate deposits will be able to make some money as a result of the rising interest rates, by lending that money out to the market.”

Mr Tsien also took questions over the bank’s risk management practices, especially regarding the interest rate setting processes.

Last month, OCBC was among the banks here to be censured by the Monetary Authority of Singapore (MAS), and most were told to set aside extra funds to be parked at MAS at zero interest rates.

The amount that OCBC Bank has to deposit as additional reserves is between $700 million and $800 million.

Mr Tsien said that the impact is not significant, as it relates to the opportunity to earn interest on the amount.

He added that the bank has introduced a series of new checks to tighten the rates submissions process.

Sourced from : http://business.asiaone.com/news/singapore-property-market-will-stay-healthy

Singapore property price index From 1960 to 2010

Interesting facts to share. Click on the picture below for illustration of Singapore property price index From 1960 to 2010.

singapore_property_price_index_1960_to_2010

Singapore property price index From 1960 to 2010

Release of 2nd Quarter 2013 Public Housing Data

Date issued : 26 Jul 2013
 This press release provides the housing data for the HDB resale and rental markets in 2nd Quarter 2013.

HDB Resale Market 

2The Resale Price Index (RPI) rose slightly by 0.5% from 205.5 in 1st Quarter 2013 to 206.6 in 2nd Quarter 2013 (see Annex A  (PDF 26KB)). This is lower than the 1.3% growth in the previous quarter and the lowest quarterly growth since 1st Quarter 2009.
3Resale transactions increased by 21% from 4,335 cases in 1st Quarter 2013 to 5,235 cases in 2nd Quarter 2013 (see Annex B  (PDF 10KB)).
4The median resale prices and Cash-Over-Valuation (COV) amounts in the various towns are tabulated in Annex C  (PDF 18KB) and Annex D  (PDF 17KB).

HDB Rental Market 

5The median subletting rents in the various towns in 2nd Quarter 2013 are tabulated in Annex E  (PDF 17KB).
6Subletting transactions rose 6% from 7,410 cases in 1st Quarter 2013 to 7,891 cases in 2nd Quarter 2013 (see Annex F  (PDF 9KB)). The total number of HDB flats approved for subletting rose 1.0% from 44,274 units in 1st Quarter 2013 to 44,706 units in 2nd Quarter 2013.

Upcoming Sales Launches

7In the first half of 2013, HDB offered 12,144 new flats under its Build-To-Order (BTO) exercises and another 3,100 flats under a Sale of Balance Flats exercise. The HDB is on track to launch 25,000 BTO flats for the whole of 2013.
8In Jul 2013, HDB will offer about 3,800 BTO flats in Bukit Merah, Sengkang, and Yishun. More information on the flats is available on the HDB InfoWEB. Starting from the Jul 2013 BTO exercise, eligible single Singapore citizens will have an additional housing option of buying a 2-room new flat in the non-mature estates.

Sourced from : http://www.hdb.gov.sg

Prices continue to rise despite cooling

property-price-rise

property-price-rise

Despite numerous government attempts to cool the market, property prices in Singapore have continued to rise in many sectors during the second quarter of 2013.

The latest data from the Urban Redevelopment Authority (URA) showed prices for private homes in Singapore rose one percent quarter-on-quarter, having risen 0.6 percent during the previous three month period.

Non-landed private property prices in the core region declined by 0.2 percent quarter-on-quarter, however there was a significant 3.8 percent jump in prices outside the central region.

Rental prices for private homes were also on the rise during the second quarter – up 0.3 percent quarter-on-quarter but less than the 0.8 percent rise seen during Q1.

Resale prices for Housing Development Board (HDB) properties also continued to increase during the three months ending June 2013, up 0.5 percent from the first three months of the year.

Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam told Reuters earlier this month that the property market has shown signs of stabilising, but that the government would like to see some softening of prices.

Many analysts and market watchers predicted that prices would decline following January’s significant attempts by the government to cool the market, however this latest data suggests those efforts did not have the desired impact.

Source from : Propertyguru

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