Monthly Archives: November, 2013

Singapore Property Market Cooling Measures

Below is a comprehensive view of the latest government policies related to the residential property market. These policies are often referred to as the ‘Property Market Cooling Measures‘.

Source : SRX

 

» Click to Calculate your Stamp Duty.

A Brief Summary of Cooling Measures

1. Additional Buyer’s Stamp Duty (ABSD)

Citizenship ABSD Rate on Primary
Home Purchase
ABSD Rate on Secondary
Home Purchase
ABSD Rate on Tertiary &
Subsequent Purchase
Singapore Citizens N/A 0% –> 7% 3% –> 10%
Permanent Residents 0% –> 5% 3% –> 10% 3% –> 10%
Foreigners1 and non-individuals 10% –> 15% 10% –> 15% 10% –> 15%

Note:1.Citizens of the USA, Switzerland, Liechtenstein, Norway, Iceland will be treated the same as Singapore Citizens due to FTA agreement.

2. Sellers’ Stamp Duty (SSD)

Residential Property Sold In Year 1 Year 2 Year 3 Year 4
SSD Rate since Feb 2010 Same as basic
Buyer Stamp Duty
N/A N/A N/A
SSD Rate since Aug 2010 Same as basic
Buyer Stamp Duty
2/3 of basic
Buyer Stamp Duty
1/3 of basic
Buyer Stamp Duty
N/A
SSD Rate since Jan 2011 16% 12% 8% 4%

3. Loan-to-Value (LTV) Ratio

Source: SRX / StreetSine

Policy Details

Effective Date Major Cooling Measures that Affect Residential Property Market
27 August, 2013 1. Singapore Permanent Resident Households need to wait three years from the date of obtaining SPR status, before they can buy a resale HDB flat.
2. Maximum tenure for HDB housing loans is reduced from 30 years to 25 years. The Mortgage Servicing Ratio (MSR) limit is reduced from 35% to 30% of the borrower’s gross monthly income.
3. Maximum tenure of new housing loans and re-financing facilities granted by financial institutions for the purchase of HDB flats (including DBSS flats) is reduced from 35 years to 30 years. News loans with tenure exceeding 25 years and up to 30 years will be subject to tighter LTV limits.
29 June, 2013 1. TDSR: Financial institutions are required to consider borrowers’ other outgoing debt obligations when granting property loans. His total monthly repayments of his debt obligations should not exceed 60 per cent of his gross monthly income.
2. In particular, MAS requires:
-borrowers named on a property loan to be the mortgagors of the residential property for which the loan is taken;
-“guarantors” who are standing guarantee for borrowers otherwise assessed by the financial institutions at the point of application for the housing loan not to meet the TDSR threshold for a property loan to be brought in as co-borrowers; and
-in the case of joint borrowers, that financial institutions use the income-weighted average age of borrowers when applying the rules on loan tenure.
12 January, 2013 1. ABSD: Citizens pay 7/10% on second/third purchase (from 0/3%); Permanent Residents (PR) pay 5/10% for first/second purchase (from 0/3%); foreigners and non-individuals now pay 15%.
2. LTV for second/third loan now 50/40% from 60%; non-individuals’ LTV now 20% (from 40%).
3. Mortgage Servicing Ratio (MSR) for HDB loans now capped at 35% of gross monthly income (from 40%); MSR for loans from financial institutions capped at 30%.
4. PRs no longer allowed to rent out entire HDB flat.
6 October, 2012 1. Mortgage tenures capped at a maximum of 35 years.
2. For loans longer than 30 years or for loans that extend beyond retirement age of 65 years: LTV lowered to 60% for first mortgage and to 40% for second and subsequent mortgages.
3. LTV for non-individuals lowered to 40%.
8 December, 2011 1. ABSD introduced for further cooling measures:
– Foreigners and non-individuals pay 10%, PRs buying second and subsequent property pay 3%, Singaporeans buying third and subsequent property pay 3%.
2. Developers purchasing more than four residential units and following through on intention to develop residential properties for sale would be waived ABSD
– To qualify, developers have to produce proof of development and sale within five years.
14 January, 2011 1. Holding period for imposition of SSD increased to four years from three.
2. SSD rates raised to 16%, 12%, 8% and 4% of consideration.
3. LTV lowered to 60% from 70% for second property.
4. LTV for non-individual residential purchasers capped at 50%.
30 August, 2010 1. Holding period for imposition of SSD increased to three years from one.
2. Minimum cash payments raised to 10% from 5% for buyers with one or more outstanding housing loans.
3. LTV lowered to 70% from 80% for second properties.
20 February, 2010 1. Introduction of SSD for residential property and land sold within one year of purchase.
2. LTV lowered to 80% from 90% on all housing loans except HDB loans.
14 September, 2009 1. Interest absorption scheme (deferment of instalments until TOP) and interest-only housing loans (interest payment only until TOP) were scrapped for all private properties.
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4 Residential site launched by URA & HDB

To provide developers and home-buyers with more choices for private housing, the Housing & Development Board (HDB) and the Urban Redevelopment Authority (URA) will be releasing four residential sites for sale in November 2013 under the Government Land Sales (GLS) Programme for the second half of 2013 (2H2013).

The residential site at Upper Paya Lebar Road and two Executive Condominium sites at Canberra Drive and Anchorvale Crescent are launched for sale today under the Confirmed List. The Executive Condominium site at Choa Chu Kang Drive is made available for application today on the Reserve List. Looking forward for all residential site as all are within walking distance to MRT stations. Buyers whom do not wish to wait so long can click here for existing condo and EC launch.

Together, these four sites can yield about 2,350 residential units.

 

UPPER PAYA LEBAR ROAD

CHOICE LOCATION WITH EXCELLENT CONNECTIVITY
The land parcel is located within an established residential estate and near the Bartley Mass Rapid Transit (MRT) station. Future residents will enjoy convenient access to all parts of Singapore via the MRT system and major expressways such as the Central Expressway and Pan Island Expressway.

RETAIL AND DINING
A wide range of shopping and dining facilities are available at the nearby Serangoon Town Centre. Heartland Mall and the NEX Shopping Mall which are located just 10 minutes’ drive away.

SCHOOLS
Reputable schools such as Maris Stella Primary and High Schools as well as Paya Lebar Methodist Girls’ Primary and Secondary Schools are also nearby.

PARTICULARS OF LAND PARCEL

Location Upper Paya Lebar Road
Site Area+ 20,077.6 m2
Lease Period 99 years
Allowable Development Residential
Permissible Gross Floor Area (GFA) 56,218 m2
Maximum Building Height 64 m AMSL ++
Project Completion Period+++ 60 months

Government Land Sale Nov 2013 - Upper Paya lebar

 

CANBERRA DRIVE – 

Sembawang-Canberra+Dr

Particulars of Land Parcel
Location : Canberra Drive
Proposed Development : Executive Condominium
Site Area : 28,562.5 sqm
Permissible Gross Floor Area [Gross Plot Ratio] : Maximum – 59,981.25 sqm [2.1]
Minimum –53,983.13 sqm
Project Completion Period : 48 months from the date of acceptance of tender
Lease Term : 99 years

Location PLan - Canberra Drive

ANCHORVALE CRESCENT –

Anchorvale Crescent

Particulars of Land Parcel
Location : Anchorvale Crescent
Proposed Development : Executive Condominium
Site Area : 16,280 sqm
Permissible Gross Floor Area [Gross Plot Ratio] : Maximum – 48,840 sqm [3.0]
Minimum – 43,956 sqm
Project Completion Period : 48 months from the date of acceptance of tender
Lease Term : 99 years

Location PLan - Anchorvale Crescent

 

CHUA CHU KANG DRIVE – 
Choa+Chu+Kang+E6

Particulars of Land Parcel
Location : Choa Chu Kang Drive
Proposed Development : Executive Condominium
Site Area : 19,058.0 sqm
Permissible Gross Floor Area [approx. Gross Plot Ratio] : Maximum – 53,362.4 sqm [2.8]
Minimum –48,026.16 sqm
Project Completion Period : 48 months from the date of acceptance of tender
Lease Term : 99 years

 

Source - HDB, URA

 

 

We don’t call it a bomb shelter, We call it the storeroom.

The Household Shelter (HS) or a Bomb Shelter in a dwelling unit is typically the store cum pantry with its walls, floor and ceiling strengthened with increased thickness. . Under the CD Shelter Act 1997, new dwelling units (both houses and flats) are required to have household / storey shelters incorporated in the developments.

Generally, owners must ensure that there is no hacking or indiscriminate drilling of the floor, ceiling and walls of the HS as this may weaken the structure. In peacetime, only fixtures that can be easily dismantled and removed are allowed in the HS. As a guide, all temporary fixtures/shelves and objects which the owner has placed or affixed in the HS shall be removable within 48 hours upon notice being issued by the SCDF.

Seems like a good idea to have a bomb shelter in every HDB / Condo unit. But, does it makes sense? Does it serve its purpose? I guess 90% of the Singaporean Household treats the bomb shelter as storeroom. Filled their bomb shelter up to the rim with all their old stuff, shoes and some old items that the owner doesn’t realize they even exist. . It may takes days for owner to clear their stuff out of the bomb shelter to ‘ hid from the bomb’ . There will be problem for home owners to ‘Squeeze’ into the tiny bomb shelter too if there is a war breakout. And do not forget there is no water supply in the bomb shelter. How long can the home owners survive in the tiny bomb shelter with little ventilation and no water supply? If you guys have watched Ah Boys to Mens, there is a scene on bomb shelter, you know where i come from.

Some home owners even converted their bomb shelter into a maids room. Imagine sleeping in the bomb shelter. Gosh!! Perhaps when there is a war breakout, the maids may be the only survivor in the house.

I suggest to do away with the bomb shelter in the already “small” apartment in future development. This will free up more livable space for home owners. As for the bomb shelter, I suggest that a Common Underground bomb shelter or a bomb shelter in the common staircase’s well will be more practical. At least people can still move around and gain access to other level of the building. What do you think?

Bomb Shelter - Singapore  (Lianhe Zaobao)

Bomb Shelter – Singapore
(Lianhe Zaobao)

Source – Lianhe Zaobao, SCDF

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