Tag Archives: MND

More reason to buy a Resale HDB Flat

KhawHDB and MND have just announced a $20k grant with relatively few restrictions — Proximity Housing Grant (PHG). This will replace the Higher-Tier CPF Housing Grant.

The PHG grant is to help Singaporeans buy a resale flat, with or near their parents or married child.

Starting immediately, eligible Singaporeans will receive a Proximity Housing Grant (PHG) of S$20,000; eligible singles will get a Proximity Housing Grant (PHG) of S$10,000 if they buy a resale flat with their parents.

Good things about this grant –

  • All Singaporeans are eligible for it once in their lifetime – whether they have enjoyed housing subsidies before ( those whom get higher tie HDB grant before are also eligible YEAH ), regardless what their household income is or whether they own private property
  • This PHG grant has NO income ceiling
Proximity Housing Grant (PHG)

HDB Proximity Housing Grant (PHG)

Higher Income Ceilings

Also announced in the same press release are changes to the income ceilings for citizen households buying HDB flats (new and resale) and Executive Condominiums (new). The new ceilings are respectively: $12k for HDB flats and $14k for ECs. This means more people are now eligible to buy these HDB housing units. It shows that MND and HDB are committed to helping Singaporeans own a flat, particularly young couples setting up their first homes.

The last raised the income ceiling in 2011

Source – MND, HDB, Today, Asiaone

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Non Citizen Subletting Quota – HDB

QUOTA 

QUOTA

QUOTA

With immediate effect, HDB will introduce new rules to cap the number of flats that can be rented out to foreigners within HDB blocks and neighbourhoods. (非公民租户顶限). This is to prevent the formation of foreigner enclaves in HDB estates, and maintain the Singaporean character of our HDB heartlands.
 HDB Flat Rochor
HDB will implement a quota to cap the number of flats that can be only sublet to Non Citizen (NC) in each neighbourhood and block. The quota will be set at not more than 8% at the Neighbourhood level, and not more than 11% at the block level. It will apply to subtenants who are Singapore Permanent Residents and foreigners. ( WPass, S-Pass, Epass, Student Pass, Dependent Pass , LTVP etc)

QUOTA

8% – Neighbourhood Level    

11% – Block Level

The new rules will exclude Malaysians, in view of their close cultural and historical similarities with Singaporean and will only be applicable to the subletting of whole flats.
mALAYSIA bOLEH
Source - http://eyeofbird.blogspot.sg/2011/01/bangga-menjadi-rakyat-malaysia.html
Subletting of Rooms will not be affected by the new ruling thus those who rely on subletting for additional income, especially the elderly and low-income households will not be affected.
 The information will be updated on a monthly basis on the first day of the month, and is valid for the whole calendar month. This works similarly to the Ethnic Integration Policy (EIP) and SPR Quota for the resale of HDB Flat. 
The new Procedure will be as per the flowchart below-
Subletting of whole flatSource - HDB
What does it means to the HDB owners? – 
To the HDB owner who is subletting his unit, if the foreigner ratio is filled for his Neighborhood or his Block, it simply means that he can only sublet to locals or Malaysian, which means that he will have less tenants to choose from, you may end up with lower rentals for the right tenant.
What does it means to the foreigner tenants? – 
For all foreigner tenants , you need to be careful if you are renting the whole HDB units in areas where by there is a high chance that the Non Citizen Subletting Quota will exceed. Area I reckon will be Sengkang, Punggol, Jurong West Clementi etc. You might need to move out of your comfort zone.
According to Mr Khaw’s Blog ,  less than 4% of HDB flats are sublet to foreigners, excluding Malaysians. However, the proportion could go up to 9% in some areas, or even 18% in some blocks. More than 35,000 flats are sublet to foreigners, excluding Malaysians. This figure refers to the subletting of the entire HDB flat, and not rooms.
Source – HDB, Straits Time.

Mixed-use site at Yishun Ave 2 at $1,077 per sq ft (psf)

According to HDB website, the highest bid for land parcel at Yishun Avenue 2 / Yishun Central 1 which is launched for tender on 28th Jun 2013 is $1,428,880,000. It is from North Gem Development Pte. Ltd. & FC North Gem Trustee Pte. Ltd. (as Trustee-Manager of North Gem Trust) Units of Frasers CentrepointIt translates into a price of $1,077 per sq ft (psf) per plot ratio (ppr) . YES!!! $1077psf just for the land in suburban area. It is 47 per cent higher than the next highest bid of S$969.3 million submitted jointly by Far East Civil Engineering, Far East Orchard and Sekisui House.

Location Yishun Avenue 2 / Yishun Central 1  (PDF 473KB)
Proposed Development Mixed Commercial & Residential Development Integrated with Bus Interchange & Community Club
Site Area 41,084.9 sq m
Maximum GFA [GPR] 123,254.7 sq m [3.0]
Maximum Building Height 56m AMSL
Estimated Dwelling Units 890
Lease Term 99 years

The tender closed at 12 noon today with 5 bids received. –

S/N

Name of Tenderer

Tender Price ($)

$psm/GFA ($)

1

North Gem Development Pte. Ltd. & FC North Gem Trustee Pte. Ltd. (as Trustee-Manager of North Gem Trust)

$1,428,880,000

$11,592.90

2

Far East Civil Engineering (Pte.) Limited, Far East Orchard Limited & Sekisui House, Ltd.

$969,333,333

$7,864.47

3

Zenlead Investments Pte. Ltd. & Zenmost Developments Pte. Ltd.

$930,000,000

$7,545.35

4

Sim Lian (Focus) Pte Ltd & Sim Lian (Brilliant) Pte Ltd

$875,000,000

$7,099.12

5

Yorkshire Investments (1) Pte. Ltd. and Yorkshire Trustee Pte. Ltd. (in its capacity as trustee of Yorkshire Mall Trust)

$704,500,000

$5,715.81

Yishun Land Parcel

Yishun Land Parcel

I will estimate that the launch price for residential property in this plot of land to be above $1600 psf range. This includes the building cost and of course  the profit  for the developer. Christopher Tang, CEO of Frasers Centrepoint Commercial, said in a statement that the company plans to develop a “12-storey integrated complex comprising 900 residential units sitting on top of a retail mall, bus interchange and community club“. That’s a huge development. If you do not know how big is a 900 unit residential projects, Take THE INTERLACE by Capitaland as reference. It is a project that housed 1040 units.

It seems like prices for properties in suburban are marching above $1200 psf.  Very soon, we shall see properties in Suburban selling in $1600 psf range judging from the results of the recent  HDB land sale. The possibility is very high especially when Executive Condos launch are expected to hit $800psf or above.  So dear buyers, still waiting for the best time to buy cheaper properties in the near future? I think the chance is slim. When is the best time to buy? well, I would say it is ‘last time’.   🙂

More about Yishun. Yishun estate is set for a major makeover, with proposals to turn its town centre into the hub of the north over the next few years according to HDB and URA. Land has been set aside in Yishun for medical specialty centres such as polyclinic and Hospital and other commercial developments. Yishun residents are also among the first to pilot HDB’s new upgrading schemes that are aimed at middle-aged estates which are over 20 years old.

New Yishun Town Centre

New Yishun Town Centre

A rejuvenation programme for Yishun Town Centre promises to breathe new life into the middle-aged estate. Count on new community spaces, improved pedestrian linkages, and an integrated mixed-use development with bus interchange at Yishun Central ( land parcel at Yishun Avenue 2 / Yishun Central 1  ) New park connectors will make it easier to get from nearby homes to Lower Seletar Reservoir, while the park around Yishun Pond will be enhanced for residents’ enjoyment.

Enhanced park - Yishun

Enhanced park – Yishun

 

Source – http://www.hdb.gov.sg, http://www.ura.gov.sg, CNA. http://business.asiaone.comhttp://www.straitstimes.com/

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