Monthly Archives: March, 2014

Government Land Sales (GLS) Programme – 1H2014

The Housing & Development Board (HDB) and Urban Redevelopment Authority (URA) will be releasing three residential sites for sale in March 2014 under the 1st Half 2014 (1H2014) Government Land Sales (GLS) Programme to provide developers and home buyers with more choices for private housing. Together, these three sites can yield about 1,300 residential units. The two Executive Condominium sites at Yishun Street 51 are launched for sale under the Confirmed List, while the residential site at Margaret Drive will be made available on the Reserve List.

North residents, it’s chance for your to upgrade. Almost 1000 EC units available in near future.

 

Government Land Sales (GLS) Programme

 

Location PLan - Parcel A Location PLan - Parcel B Location PLan - Parcel C

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How to be a good landlord?

With a surplus of people looking for homes to rent, landlords in Singapore cannot truly afford to be picky if they have intention of making some money.

ImageRegardless of whether you live in the house with the tenant or not, there are certain things you will need to do on your part to ensure that your tenant is comfortable. Think of your home as a hotel and you as the concierge, maintenance person and security and you might understand just what being a landlord entails.

1. Equality: In Singapore, some landlords tend to adopt a racial stance by insisting that only if the potential tenant is of a specific race, should he then apply. For a multi-racial society, not only is this sad but unethical and racially insensitive. All applicants must be considered and reviewed based on merits and characteristics and not on something as superficial as race, profession or age.

2. Fix her up: Some places that are being rented out look worthy of a demolition ball. Even if it is an old building, you as the landlord need to ensure that the unit you are renting out is liveable. This means it has to be clean, has proper sanitation, electricity, light, space, free of dust, pests and possibly more. If you cannot see yourself living there, then you should not impose such poor conditions on someone else.

3. Improvements: Just because you’re not living in the house does not mean you should not improve it. Your unit is an investment and investments grow when its value is enhanced. Besides, if you intend to increase the monthly rent, justify it by adding new features your tenant would benefit from. Of course, before you do this you will need to alert or discuss with your tenant first. As the person who is paying and living there, your tenant has a right to know of your plans for the home as it will directly affect him.

4. Expectations: If you expect your tenant to take care of your unit and be of a certain standard, then you will need to set that standard by treating your tenant as a customer and as a fellow human being instead of just a monthly pay check.

5. Listening ear: Check up on your tenant from time to time. Find out if he is comfortable, if everything is working and if he has any problems. If you can assist with things pertaining to the home, do it. The importance of listening to your tenant cannot be adequately explained. Just remember the hotel metaphor and provide your tenant with good customer service. After all, if he is happy, so are you.

6. Deposits: Unless it was explicitly stated in the contract and made known verbally to the tenant at the point of signing that all deposits will be used for any upkeep or maintenance that is directly the fault of the tenant, you must never hold onto the deposits and create new rules to keep it during the tenancy. Give it back when the time is up.

Being a good landlord is easy. All the above guidelines are basic human courtesies we would extend to relatives and friends so remember to do the same with someone who is your customer.

 

 

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Focus less on COV, more on latest transacted price.

To reduce the FOCUS on Cash-Over-Valuation (COV) in negotiations during the sale of a flat, the Housing and Development Board (HDB) will only accept valuation requests from resale flat buyers after they have been granted an Option to Purchase by flat sellers. The latest change will take effect from 5pm March 10, 2014. revised hdb procedure

 Previously, sellers usually got a request for a valuation from HDB  first and then negotiated with buyers over how much more or less should be paid. The excess cash over valuation is known as the COV. Buyers and sellers  will now have to agree upon a price first before getting an official valuation and Housing and Development Board (HDB) will only accept valuation requests from resale flat buyers ( yes, only buyer and they have to pay for it ) after they have been granted an Option to Purchase by flat sellers. Under the new rules, buyers who are granted OTP will also have 21 calendar days, instead of 14 calendar days to exercise the OTP, to adjust to the new procedure. The aim is to  get negotiations to focus on recent transaction prices and reduce the focus on COVs. Currently, resale prices are published twice a month. With immediate effect, HDB will also publish daily prices of resale transactions as soon as they are registered.

While the balance between buyers and sellers has been re-titled, the market is still at very high price, is not at its optimal state, and thus it is premature to withdraw cooling measures, Mr Khaw said.

While it is still too early to gauge the impact of this latest policy, I guess the buyers now will tend to make an offer more conservatively  based on recent transaction prices range to avoid not being able to get the loan amount.

Source -  HDB, Straits Time

When will the dropping stop?

The median Cash-Over Value or COV paid for a Housing Board resale flat fell to zero in February 2014, down from $3,000 in January. This was the lowest median cash over valuation (COV) figure since SRX records began in 2006. It is also the first time COV hit zero since 2006.

About 37 per cent of deals, almost 4 in every 10 deals closed below valuation overall. In contrast, only 29.4 per cent of HDB resale deals closed below valuation during January 2014.   Resale prices fell by 1.8 per cent, which means that price level are now at same level as 20 months ago in June 2012. This was the sharpest month-on-month fall since prices started declining in April last year.And fewer flats changed hands.

COV map Mar 2014

Out of the 28 towns in Singapore.12 towns saw zero or negative median COV, an increase from 7 HDB towns in January.  Bukit Panjang, Punggol, Sembawang, Sengkang and Woodlands clocked negative overall median COVs recorded in February 2014 while Bedok, Bukit Batok, Choa Chu Kang, Geylang, Jurong West, Tampines and Yishun recorded zero overall median COV.

HDB transaction feb 2014 ( COV )

Year-on-year, resale volume dropped 6.3 per cent. According to flash estimates, 734 HDB flats were sold last month in the resale market, a 20 per cent month-on-month drop from the 918 units in January. Rental volume also dropped 13.7 per cent year-on-year. An estimated 1,118 HDB flats were rented in February, 25.3 per cent less than the 1,496 rental transactions in January. On a year-on-year basis, February’s rental volume posted a 11.9 per cent drop from 1,296 flats leased over the same month of last year. 

 

number of HDB transacted Jan Feb 2014

number of HDB Rental transacted Jan Feb 2014

source – Straits Time, SRX, CNA

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