Public Housing: News & Updates

[RafflesCity]

Location and publicity for height probably explain the immense popularity of Duxton.

[huaiwei]

Two Havelock blocks to get interim upgrade

HOME owners of 192 flats in two Housing Board blocks in Havelock Road have voted in favour of the Interim Plus Upgrading Programme, which will improve their common areas and provide a lift that opens on every floor.

Almost 94 per cent of residents in blocks 94 and 95, both point blocks with five-room flats, supported the programme when voting ended on Monday.

Their vote contrasts with that of residents in Paya Lebar Way who, earlier this week, rejected a refurbishment under the Main Upgrading Programme (MUP) that included retiling their toilets and building a multistorey carpark. Only 71.4 per cent voted for it, less than the required 75 per cent.

It was the second MUP rejection since the programme began in 1992. Pandan Gardens was the first precinct to turn down the opportunity in July last year.

The Interim Plus programme was introduced in 2002. A less extensive alternative to the MUP, it marries the HDB Interim Upgrading and Lift Upgrading programmes.

So far, 32 precincts have been picked for the programme.

In the Interim Plus programme, improvements to the common area are done for free and can include such features as passenger drop-off porches, sheltered staircase and waiting areas, and new void-deck seating areas.

However, flat owners who benefit from upgraded lifts must pay up to $3,000 each.

Renovation of the Havelock flats starts in the second quarter of next year and is expected to take two years.

[heirloom]

design and sky gardens and height must count for alot of the popularity as well.. and of course hdb should never duplicate this design - but they should build stuff of similar quality..

[redstone]

HDB would have to build more 'condo-style' flats.

[huaiwei]

Minister sees no need to overhaul upgrading plans

Only two precincts have rejected the scheme in 14 years; most residents in these areas wanted it, says Mah Bow Tan

By Daryl Loo

TWO rejections over the past 14 years does not mean that the HDB's Main Upgrading Programme (MUP) no longer resonates with residents, said National Development Minister Mah Bow Tan yesterday.

'Over a hundred precincts have said yes. So far, two have said no... I think this is a pretty good indication of the usefulness of the upgrading programme, so I don't think there is a need to do major changes,' he said.

He pointed out that the majority of residents in the two precincts, Pandan Gardens and Paya Lebar Way, voted in favour of upgrading - still a large number even if it was short of the 'high pass mark' of 75 per cent. In Pandan Gardens, the vote was was 68.8 per cent while it was 71.4 per cent at Paya Lebar.

The two rejections had led Dr Teo Ho Pin, the chairman of the Government Parliamentary Committee for National Development and the Environment, to suggest that the MUP had lost its lustre.

He felt that residents preferred to have the Selective En-Bloc Redevelopment Scheme, where entire blocks of flats are acquired and redeveloped, and residents get to buy a new flat built nearby.

Mr Mah pointed out that some residents have specific reasons for saying no. In Paya Lebar, some had already renovated their flats. Others thought they were being asked to vote for the more expensive package involving additional space, instead of the standard package, he added.

The Government has been making minor revisions to the upgrading programme to suit flat owners' changing needs. In 2002, for example, the less extensive Interim Plus programme, which combines the Interim Upgrading and Lift Upgrading programmes, was introduced.

It decided not to reveal the list of precincts for MUP this year because several others announced in the past have yet to get to the polling stage.

While he expressed confidence in the effectiveness of MUP, Mr Mah added: 'But... if the programme is really not popular, we will scrap it.

'If in the next few rounds, people say they don't want it, then I think we will save the budget and use it for some other form of upgrading or for something else.'

Mr Mah was speaking to reporters after officiating at his ministry's National Day observance ceremony at URA Centre. In his speech, he said in recent years, the ministry has involved the public in drawing up its development plans, through focus groups and online consultations.

'But there is still a sense of cynicism among some members of the public that this is all a 'wayang', that we have already kept the plans in our drawer and are just going through the motions.'

'The sooner we get over this mental barrier, the better. The more people we can involve who are willing to take ownership of issues and problems, the better.'

[babystan03]

SEPT 11, 2004
HDB should negotiate bulk rates for window checks

NEW rules require Housing Board case-ment windows to be checked and, if necessary, for the rivets to be changed from aluminium to stainless steel.

The contractors are making hay while the sun shines by charging an inspection fee. Come next October, when the new rules come into effect, the building authorities will have to spend a fortune going from house to house to check whether this has been done.

In the interest of efficiency and so as not to waste money, could I suggest that the building authorities negotiate, on behalf of householders, bulk rates with the authorised contractors to perform the inspections and, where necessary, change the rivets to stainless-steel ones.

Contractors would be able to save time and money by not having to go from door to door, block to block, and the authorities would know every house has been inspected.

JAMES PURVES

AT TELOK Blangah Drive, where the Main Upgrading Pro-gramme is about to be completed, window screws are already rusting. Even stainless-steel railings have rusted! Balcony drainage pipes leak, and it is only 1 1/2 years after they were replaced.

ONG KWEE BENG

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

[redstone]

Change windows or face the consequence?

Another uniquely Singapore law!

[babystan03]

Originally Posted by redstone

Change windows or face the consequence?

Another uniquely Singapore law!

Haha....if not nobody will want to change mah.....

[babystan03]

SEPT 12, 2004
More singles going for bigger flats
And some are rushing to lock in their dream homes while they still qualify for the grant

By Jeremy Au Yong

FOR almost a year, Mr N.K. Tamilselvan had been on the hunt for the perfect three-room flat, the biggest kind available to singles like him.

But when the Government announced on Aug 29 that singles would be able to buy Housing Board flats of any size, he quickly locked in a three-room flat in Marine Parade he had been eyeing.

The reason: the Government lowered the income ceiling for singles who want the $11,000 housing grant. From Wednesday, only those who earn $3,000 or less a month will qualify, compared with $8,000 before.

The 38-year-old civil servant, who earns $3,800 a month, finalised the paperwork on his new flat last Monday.

'I had been looking at the flat for about month, but I hadn't really decided,' he said. 'The announcement really put the wind in my sails.

Singles looking to buy HDB flats, and those who own them, have been busy since the announcement.

Some, like Mr Tamilselvan, need to buy flats fast to qualify for the grant. Others, who now have more choice, are asking to see larger flats - notably four-room units.

Among them is Ms Carol Tay, who turned 35 in July. She earns $2,800 a month and wants to buy a larger flat before annual increments push her pay over the limit.

Ms Tay, a purchaser at a water treatment company, wants to buy a four-room flat before the end of the year.

She said: 'I wasn't really house hunting before. There was no rush. Now, there is an opportunity to buy a larger flat, and I want to get one while I can get the grant.'

The five real estate firms The Sunday Times spoke to said they had seen a noticeable increase in singles' interest in larger HDB units.

Real estate firm Propnex, which said it has 40 per cent of the HDB resale market, has been receiving at least 20 calls a day from singles wanting to look at bigger flats, up from less than five a day.

Mr Eugene Lim, assistant vice-president at ERA Singapore said: 'Some of our agents are experiencing about a 20 to 30 per cent increase in enquiries and interest among singles.'

Similarly, the Dennis Wee Group said inquiries from singles are up, with most wanting to see four-room units in the older estates like Clementi and Bishan.

Its valuation director, Ms Carina Loh, said: 'Most of the singles are looking for four-room units. Only those who want to buy it to live with their parents look at bigger ones.

'They like areas where the facilities are all built up. New areas like Sengkang are not so popular.'

Housing agents are also reporting that singles who own three-room flats are nervous as they anticipate a drop in value of small flats.

Said Mr Lim: 'We have also noticed that three-room sellers are now more open to price discussions.'

Property agents expect the price of three-room units to drop by about 3 per cent over the next six months, as the interest seems to be on four-room units.

But though three-room flats will be cheaper for singles wanting to buy, agents advise them to think bigger, if they can afford it.

Said Propnex chief executive Mohamed Ismail: 'The four-room units are more value for money. A three-room flat in the Clementi area can cost up to $175,000. But if you go to an area like Jurong West or Yishun, a four-room flat is only about $180,000.

'Three-room flats went up in price by 18 per cent last year, so there won't be any short-run capital appreciation. Four-room units only went up by 9 per cent and with increased demand from singles, it will be a better investment.'

Copyright @ 2004 Singapore Press Holdings. All rights reserved.

[babystan03]

The New Paper - 13 Sep 2004

ARE BIG NEW HDB ESTATES DEAD?

SOME BLOCKS LIKE THIS ONE IN SENGKANG ARE STILL EMPTY. NOW HDB SAYS NO MORE NEW ESTATES UNTIL...

By Desmond Ng

IN the 1980s, all over Singapore, housing estates sprouted with instant trees, swimming pools and community centres.

In record time, Ang Mo Kio and Bishan and Tampines mushroomed over swamp and farm land.

But now, analysts say we might no longer see big new estates coming up.

Most unsold HDB units are in big new estates such as Sengkang, Jurong West and Sembawang.

For HDB, the 'boutique developments' - often just a few blocks in mature estates - have done much better.

There is no need to wait for a critical mass before hawker centres and MRT stations are built. You get instant neighbours and amenities.

While new five-room flats in Toa Payoh are being snapped up at a hefty $400,000, empty executive flats in amenities-lacking Sengkang are being offered at around $330,000.

To fill up the empty flats in Sengkang, HDB has been cutting prices. (See report on facing page.)

But is there a choice?

Of the 10,000 flats HDB has been unable to sell, many are executive flats in Sengkang.

HDB told The New Paper on Sunday that newer towns such as Jurong West, Bukit Panjang, Punggol and Sengkang account for about 80 per cent of the unsold flats, most of which are 5-room or executive flats.

Prices in these estates have been tumbling, said property experts.

Most of the big new estates just aren't popular.

Punggol 21 was pitched as a waterfront estate with a target of about 96,000 homes when construction started
in 1998.

Today, it has only 15,000 HDB flats.

In 2002, HDB halted its building programme and embarked on an extensive marketing campaign to sell these new flats in the newer estates.

Now, instead of developing a new estate, HDB will be building new three-room flats in Sengkang.

With birth rates falling, HDB has to look at alternatives. Chesterton International's research director Nicholas Mak said the shift is towards estate renewal - the upgrading and re-development of current HDB towns.

Said Mr Mak: 'There'll be pressing needs on the land from different quarters, the need for parks, water catchment areas.

'You can't just keep building new HDB estates.'

Assistant Professor Muhammad Faishal Ibrahim of the NUS Department of Real Estate said the economic downturn also affected the demand for flats, especially in the newer estates.

And the lack of amenities in some of these estates also means that fewer people are willing to buy, he said.

'Before making a decision, a buyer would look at the options available. If the price difference between an old and new estate is not much, most will buy one with better location and amenities,' he said.

Dr Faishal feels more behavioral studies need to be done to track the changing patterns and needs of home-buyers here.

Dr Faishal, like other housing experts we spoke to, said the solution would be to make the maximum use of the current estates, instead of building new ones.

NEW LEASE OF LIFE

He said: 'Since older towns are relatively favoured over the new ones, because of accessibility and amenities, I think we can look at ideas of re-developing some of the older estates.

'In this way, the take-up rate could be higher and it reduces potential wastage of land resources when you create new estates.'

HDB is already moving in this direction with the Selective En-bloc Redevelopment Scheme.

For now, DTZ Debenham Tie Leung executive director Ong Choon Fah feels filling up Punggol town should be the priority.

And she too suggested giving existing estates a new lease of life.

'There are pros and cons, if you build a new town, you create new spaces and new businesses according to what you want instead of working with existing amenities in the older estates,' she said.

POPULATION INCREASE?

So is it the end of the big new estates?

HDB told The New Paper on Sunday it will build new flats when there is strong housing demand.

A spokesman said: 'As land is still available in existing towns, HDB will focus the developments in towns where the demand is good, rather than opening up new estates.'

With the new immigration policy, the population could increase from the present four million to perhaps six or even eight million over the long term, according to recent Morgan Stanley research.

And if that policy is successful, then maybe the creation of a new town is not that far off, said Dr Faishal.

The Bidadari site, earmarked for future residential development, may be one of them.

But he added: 'Unless our population base increases, where family-formation, birth rate and immigration goes up in tandem, then it's unlikely a new town will be planned. It will be more prudent to maximise our current estates.'

RESIDENTS GRAPPLE WITH NEW MARKET REALITY

THE executive flat next to Madam Catherine Ng's one was empty for almost four years.

As were many others in her block on Compassvale Street.

But last year, strangers started knocking on her door, asking if they could have a look at her flat for which she had paid $450,000.

That's when she found out that HDB was re-launching the executive flats in her area at $100,000 less than what she had paid.

Madam Ng, 56, can't accept the market reality and still thinks HDB flats should either appreciate in value or at least remain the same.

Housing analysts said that HDB prices its flats based on the market.

Madam Ng felt she had to take up the executive flat back then.

She stood to lose her deposit, and in the mid-1990s, while waiting for her flat, an entry level condominium was about $600,000 and a resale executive flat even hit $700,000.

But while she waited seven years to get her flat, it took her neighbour only two months from the time he decided to buy a flat in a walk-in selection to the day he got his keys.

Engineer Chew Chee Ping, 29, paid $354,000 for an identical flat next door to Madam Ng. He bought it in January.

In July, he found out from another home-buyer that the price of the flat directly above his fell by almost $30,000 to $325,000.

He said: 'I was a little disappointed when I heard that prices had fallen further. It dropped by so much in just six months, and I hadn't even moved in yet.'

Across the street in another block, residents said they had approached their MP. One of them claimed he has also written twice to the CEO of HDB. There are 4,548 executive flats in Sengkang, many still unoccupied.

The walk-in selection in non-mature estates has had some success. About 2,400 of the 6,000 executive flats offered for sale since 2002 have been taken up.

Analysts said market forces have pushed down prices. Today, you can get a brand new condominium unit for about $400,000.

But residents who own executive flats in Sengkang still cannot fully accept the ups and downs of the marketplace. They feel the price shouldn't fall so much for public housing.

HDB has explained previously that when it prices a flat, it also looks at market value.

Chesterton's Mr Mak added: 'Those at Sengkang who bought in the late 1990s probably paid a relatively high price.

'Now, HDB has to sell the unsold units to other buyers to fill the whole block. And it has to do it at the prevailing price - which is low.'

In the resale market, executive flats in Sengkang go for between $360,000 and $370,000. The lowest transacted price this year was $328,000 for a flat at Rivervale Walk, said Mr Mak. - TAN MAY PING

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[huaiwei]

Wierd analysis.

the plain fact as to why the "big new estates" are not popular is simply because they are so ulu!

If you destroy Bukit Timah and turn it into a super huge HDB estate, are they sure they wont be huge demand?

[heirloom]

well judging by recent condominium prices i imagine people would rather condominiums than hdb flats also.

[RafflesCity]

HDB launches new balloting exercise for 1,529 flats in established estates

18 Oct 2004



By Joanne Leow, Channel NewsAsia



SINGAPORE : The HDB is launching a balloting exercise for studio apartments, 4-room and 5-room flats in established towns on Monday.

100 studio apartments, 638 four-room flats and 791 five-room flats are available.

These are surplus flats built originally to rehouse families under the Selective En bloc Redevelopment Scheme.

Applications are open till November 7.

The studio apartments are in Geylang Town, while the 4- and 5-room flats are in Ang Mo Kio, Kallang/Whampoa, Bukit Merah, Bukit Batok, Bedok and Geylang Towns.

The majority of the larger flats have been completed, while the studio apartments are scheduled for completion in the fourth quarter of 2005.

Starting from this balloting exercise, HDB will extend the revised Third Child Priority scheme, setting aside 5 percent of the flat supply for eligible applicants.

All other priority schemes will also apply.

Show flats will be open for public viewing at the HDB Hub and other locations.

Interested buyers can find out more by logging on to e-Sales or tuning in to Teletext at Channel NewsAsia and Channel 8 on page 670. - CNA

[drwho]

Originally Posted by huaiwei

Wierd analysis.

the plain fact as to why the "big new estates" are not popular is simply because they are so ulu!

If you destroy Bukit Timah and turn it into a super huge HDB estate, are they sure they wont be huge demand?

but for 100000$ i should buy a HDB-apartment

[babystan03]

Business Times - 20 Oct 2004

S'pore housing market looking up

This is about as good a time as any in about a decade to buy that home, says LIM SAY BOON

SENTIMENT is swinging back towards Singapore residential property - finally. And the ongoing recovery will see the return of the home as a major instrument of wealth accumulation here.

But unlike the 1990s, when queues and widespread speculation accompanied heady price rises, this upturn is likely to be more gradual - something in the region of 6-10 per cent over the course of 2004-2005.

Mind you, ceteris paribus, the residential property market might even see the return of the heady price appreciation of the early mid-1990s. But in a market where the government is a major supply factor through land auctions, the assumption of 'all other things being equal' is unrealistic. The return of gains of, say, 20 to 30 per cent over two years is unlikely - simply because the government is almost certain to pump out more land supply if it feels another boom-bust cycle coming on.

But mind you, I suspect the government would probably not object to steady gains averaging even 5-10 per cent a year as long as the economy is growing at a comparable pace.

Three months ago, writing in this same column, I argued that there was hope yet for a return of price inflation for Singapore property as investors switch out of over-valued Western markets (including Australia) into Singapore and other Asian markets.

Since then, we have seen a bottoming out of property prices with the URA property index registering a marginal gain in Q2. But more importantly, the latest anecdotal evidence is indicating a lot more interest at launches. The feedback over Q3 of this year is that interest at new project launches has exceeded expectations.

Indeed, it was reported that over the Hungry Ghost Month - when you would have expected buyers to stay away - some 800 units were sold. This compares with only 2,500 units being sold in the whole first half of the year.

Was that just a whiff of buyer impatience wafting back into the market?

Possibly. Of the recent launches, Centrepoint's Ris Grandeur stands out. Unlike some other projects whose number of launched units is lower than its total units, Ris Grandeur launched all its 453 units. It is one of the most recent projects; a freehold development in Pasir Ris; selling at a reported average price of $500 per sq ft; and it is already reportedly 40 per cent taken up.

Looking ahead, a lot of market attention will focus on City Developments/AIG's The Sail@Marina. Located at Marina Bay and marketed as the tallest residential tower in Singapore and among the top 10 tallest in the world - that is, a 'world class' development - pricing expectations have rapidly ratcheted up from $850 to $950 psf, with some observers even talking about $1,000 psf. A bullish response at this high-end development is likely to filter down to the mass end of the private market before too long.

Speculative money

Indeed, the financial markets are now talking about speculative money - in the hands of Indonesian and North Asian high net worth individuals - seeking investment opportunities in the region. And it is this excess liquidity, wary of the overheated property and stagnant stock markets of the West and now sloshing around the region, that had been driving up stock and property prices in most of Asia. Well, 'most', with the notable exception of the Singapore property market - to date anyway.

Jones Lang LaSalle figures were reported to have pointed to close to 50 per cent price appreciation for top-end Hong Kong residential properties over the year from Q2 '03 to Q2 '04. Indeed, a land auction earlier this month in Hong Kong appeared to confirm developers' bullishness. The sites - at Homantin and San Po Kong - were clinched by Cheung Kong and Sun Hung Kai at prices way above market expectations.

According to analysts, the prices achieved at the sites implied expectations of another 50-60 per cent price upside over the next three years.

Okay, maybe Singaporeans are not surprised by Hong Kong's bullishness on property. But even New Delhi reportedly achieved gains just under 50 per cent for its high-end homes in that same period. And Bangalore and Bangkok notched up gains just a shade below 20 per cent over those 12 months.

Does Singapore deserve to remain the clear laggard that it had been to-date? The fundamentals don't suggest so. The much talked about supply overhang is history. The number of unsold units as tracked by URA now stands at only 13,695. That is the lowest figure in four years. Further, it is estimated that some 60-80 per cent of that supply is freehold as a result of the suspension of land sales from the Asian crisis in 1998.

And since the bulk of the supply is freehold, there is generally less urgency for developers to launch until prices improve. Land sales have only resumed recently. But even then the bulk of the releases have been into the so-called 'reserve list', to be released into the market only where there is indication of interest from developers.

Meanwhile, with the economy growing at a healthy pace and unemployment edging down, demand is likely to be on the rise. But that is only the domestic side of the equation. What is more difficult to gauge is the extent of foreign interest sitting on the sidelines, waiting for a 'buy signal' from, say, a major development such as The Sail@Marina.

Indeed, foreign buying has reportedly increased from 14.5 per cent of foreign properties transacted in 1998 to nearly 29 per cent in the first half of this year. And apart from the 'rotation of speculative money' possibility, there is a longer-term factor - the government's more open attitude towards skilled foreign migrants.

In fact, looking purely at the market's dynamics at the moment, all other things being equal, one might even be tempted to call for a more robust period of price inflation for Singapore to catch up with the gains made elsewhere in the world over recent years.

But - and this is huge 'but' - other things are not likely to remain equal if prices start to run ahead of economic growth. Given the Singapore government's sensitivity about cost competitiveness, and its understandable wariness of the dangers of another short boom-bust cycle for property, it is almost certain that price gains beyond the rate of economic growth are likely to provoke intervention by the government. That is, it will provoke the government to pump more supply out to moderate demand.

Lower valuations

But my bottom-line opinion is that this is about as good a time for Singaporeans to buy that home as any seen in something like a decade. The economy is back in growth again and valuations have been beaten down.

Besides, the maths is rather simple. With interest rates on term deposits ranging from 0.2 per cent to one per cent, depending on the amounts deposited and the time period, and with rental yields running at around 2 per cent, there is a positive 'carry' on the property proposition versus cash.

And with the attractive home loan packages being offered by banks, there is not that much difference these days between renting and buying your own property.

The inhibitor has for some time been confidence. That is, notwithstanding the yield versus interest rate factor, buyers have stayed sidelined for fear of capital losses. That inhibition might just be about to be swept aside.

The writer is head of OCBC Investment Research. The views expressed in this column are his own. The above column is for general information purposes only and readers should not make investment decisions on the basis of this article without verifying its contents independently.

Copyright © 2004 Singapore Press Holdings Ltd. All rights reserved.

[RafflesCity]

En-bloc for privatised HUDC apartments?

30 Nov 04

Owners' reluctance to part with spacious apts and insufficient premium to buy replacement apt may be deterring factors. KALPANA RASHIWALA reports

WITH Eng Cheong Towers recently making history for being the first 99-year leasehold private property to be put up for collective sale, could the en-bloc door open wider and be extended to privatised HUDC estates?



The potential is not to be scoffed at, given that the 10 HUDC estates that have been privatised to date have a total land area of about 6.3 million square feet. These include Pine Grove, Gillman Heights and Farrer Court.

In addition, another four estates, including Laguna Park and Eunosville, with 1.8 million sq ft in combined site area, are in various stages of privatisation.

Besides all these estates, which were developed by the now defunct Housing and Urban Development Company (HUDC), there are also other government-initiated estates that have since been effectively privatised like Normanton Park and Lagoon View.

All these estates are built on sites that originally had 99-year leases but in some cases, only about 70-plus years of the original lease remain. However, approval can be obtained from the Singapore Land Authority to have their leases topped up to 99 years, as in the case of Eng Cheong Towers - although each case will be considered on its own merits, taking into account the government's long-term plans for the area, among other factors.

Not surprisingly, some owners of privatised HUDC apartments are hoping that they can soon join the ranks of freehold private estates doing en-bloc sales.

However, most property consultants who've done preliminary studies on privatised HUDC estates tend to think collective sales are still some way off.

One of the biggest deterrents is resistance from most owners, especially older ones used to living in spacious HUDC apartments, some as big as 1,600 to 1,800 sq ft.

To be sure, say property consultants, in some cases, there may be a financial incentive in the form of a premium ranging from 15 to 30 per cent cent for privatised HUDC apartment owners if they team up to sell their units to a developer for the redevelopment potential of the site compared with the individual values of their apartments. But this may not be big enough to persuade owners controlling at least 80 per cent of share values in the estate - the minimum consent level required - to agree to an en-bloc sale, especially given the large number of owners involved, as many as 600-plus, in some HUDC estates.

Even in a normal freehold collective sale, very often it takes a price premium of nearly 40 per cent to entice owners to do an en-bloc sale, says Jones Lang LaSalle associate director Quek Soh Hoon.

An interesting issue is that based on current land values, a good number of owners could suffer a clear financial loss. The proceeds from selling their apartments could be lower than their original purchase price as many may have bought their apartments at the height of the market in the mid-1990s. Agents say that generally, HUDC apartment prices today are about two-thirds of their peak levels.

Agents say such clear-cut cases of financial loss would provide strong grounds for minority owners who want to block an en-bloc sale to win their case when it goes before the Strata Titles Board (STB). The board mediates in en-bloc sale disputes and decides whether or not to approve the sale in cases where owners' unanimous consent is not obtained.

Says Credo Real Estate executive director Tan Hong Boon: 'If there are a lot of loss cases, then the other owners would have to find some way to compensate them - if they want an en-bloc deal to materialise. But if the collective sale premium for those in the black is only 20-30 per cent at most, there may not be enough gains to spread around.'

Then there's another big issue. The proceeds from selling their apartments collectively - even if it does not result in a loss - may still not be enough to buy a new replacement 99-year leasehold private apartment.

For instance, Pine Grove in the Mt Sinai area has seen transactions at $500,000 to $533,000 for apartments ranging from 1,668 to 1,755 sq ft in the roughly 20-year-old estate, according to data supplied by ERA Realty. Factoring in a 25 per cent collective sale premium over these individual unit prices, owners should be able to pocket $625,000 to $666,000.

If any of these owners wanted to move into a newer 99-year leasehold condo in the vicinity like Faber Crest, a similar-sized unit of 1,744 to 1,787 sq ft unit would cost them $760,000 to $780,000.

In addition, there seems to be a mountain of resistance from the majority of owners in privatised HUDC estates.

'It's very hard to convince them to part with their homes. Many of them have been living there for decades, and are used to living in spacious apartments - which are bigger than HDB executive flats and maisonettes,' said DTZ Debenham Tie Leung director Tang Wei Leng.

Agreeing, JLL's Ms Quek says that another reason owners of privatised HUDC apartments don't quite have an incentive to sell is that many of the estates are in relatively good condition, with facilities like tennis courts, a swimming pool and clubhouse. In contrast, many old freehold walk-up apartments put up for en-bloc sale often don't have such facilities and are pretty run down.

Despite all these problems, property consultants are not writing off en-bloc deals for privatised HUDC estates just yet. They're putting them on hold.

'It'll be a gradual process,' as Credo's Mr Tan put it. 'With time, land values could rise and this may increase the collective sale premium. At the same time, as the estates age and owners need to pump in a substantial sum of money to spruce them up, they may be more inclined to part with their apartments - although replacement cost will probably still be an issue.'

[RafflesCity]

Agents see HDB resale market rising strongly next year

18 Dec 04

Improving economy, more jobs augur well

By ANDREA TAN

(SINGAPORE) What does 2005 hold for the Housing and Development Board resale market? Depending on whom you talk to, the picture could be a brighter one or a steady state.

C&H Realty MD Albert Lu is optimistic. 'The outlook is bright - the economy is improving, the employment situation too, and the real estate business is also picking up,' he said.

'Next year, we should see 33,000 resale transactions, up from an estimated 30,000 this year. Pricing will be firmer too, especially for the larger flats, by 3-4 per cent.'

According to Mr Lu, more people will upgrade, compared with the downgrading trend in recent years. But prices for three and four-room flats may decline 3 per cent.

Prices of three-room flats have climbed as more Singaporeans downgraded and the government freed the market for singles. But steps have been taken to cool the sector, including building three-room flats after a two-decade hiatus and allowing singles above 35 to buy any flat type.

ERA Real Estate group centre director Mark Teo also has a fairly bullish view. 'Three and four-room prices have peaked in the past few months. It's now time for the larger five-room and exec flats to see price increases of about 5 per cent next year.'

He added: 'Volumes should be 10-15 per cent higher in 2004 and another 10-15 per cent more in 2005. People will make their HDB purchases sooner rather than later because of the increasing cash downpayment.' From Jan 1, HDB resale flat buyers who take a loan from a bank will have to make a 4 per cent cash downpayment, up from 2 per cent this year. This will be stepped up until it reaches 10 per cent in 2008. The aim is to eventually align HDB flat purchases that use bank loans with private property purchases.

For the whole of 2003, resale transactions totalled 33,586, down 12.4 per cent from 38,343 a year earlier. HDB resale applications amounted to 21,859 in the first three quarters of the year.

This means ERA's Mr Teo is expecting resale transactions to cross 40,000 in 2005 and to hit more than 36,000 this year.

But he warned that there could be 'some migration to the lower end of the private market as the gap narrows between the larger flats and private apartments'.

Resale flats cost on average 2.7 per cent more in the third quarter of this year than they did a year earlier. Resale flat prices rose one per cent in the first nine months of 2004 and property agents reckon they could close the year 2-4 per cent higher.

But some agents, like Steven Tan, executive director at OrangeTee, have a more sanguine outlook.

'Volumes should drop at least 10 per cent due to the implementation of the 4 per cent cash payment and more negative equity sales as many sellers had bought their flats at higher price,' Mr Tan said. Prices, however, should remain stable, thanks to continued economic recovery, fewer completed new HDB flats and a projected 5-10 per cent increase in private property prices, he reckons.

PropNex CEO Mohamed Ismail said: 'The main challenge next year is the 4 per cent cash outlay. I don't expect it to dampen sentiment much but it will hurt the larger five-room and executive flats. Next year could be a major hurdle for some when they make up their minds about buying or selling the flat, as the cash downpayment creeps closer to the 10 per cent mark.

'In the near future there will be less incentive to buy a resale flat, especially larger ones because of the cash downpayment. The private sector has deferred payment, which has always been an attraction to some buyers.'

How does 2004 look for the HDB resale market? While other sectors are winding down for the festive season, housing agents are still busy closing deals.

'There's a good chance Q4 will have a strong finish,' said Mr Ismail. 'People are rushing to beat the 4 per cent cash downpayment next year and are driving up sales in the last few weeks of 2004.' He believes the number of resale transactions could exceed 10,000 in Q4, making it the best showing of the year.

[RafflesCity]

Second batch of build-to-order flats launched

28 Dec 04

THE Housing Board has launched its second batch of flats this year under the build-to-order scheme.

The new projects are The Anthias in Punggol, which will have 134 three-room and 600 four-room standard units; and Coral Green in Sengkang, with 655 four-room premium flats.

In August, after a 19-year break, HDB launched its first batch of three-room flats at Fernvale Grove in Sengkang.

Three-room flats are restricted to applicants with monthly household incomes of $3,000 or less, while four-room units are open to families which earn up to $8,000.

An HDB spokesman said 92 per cent of Fernvale Grove's 156 three-room units and 89 per cent of its 352 four-room flats have been sold.

'With such a good take-up rate, HDB has proceeded to prepare for the tender for the construction of the flats,' he added.

HDB is banking on the proximity of the two new projects to two completed but unoperational Light Rail Transit (LRT) stations to attract applicants.

The Anthias, at the corner of Punggol Drive and Punggol Road, is next to Damai station along the Punggol LRT line.

Coral Green, at the corner of Fernvale Road and Sengkang West Avenue, is 50m away from Fernvale station on the Sengkang LRT West Loop.

The Land Transport Authority announced earlier this month that part of the Punggol LRT - including Damai station - will start operating by next March. p> LRT operator SBS Transit is still reviewing the Sengkang West Loop and has yet to finalise its opening.

Both lines should be operational by mid-2010, when the projects are scheduled for completion.

The Anthias' three-room units, with up to 68 sq m each, are priced between $101,000 and $119,000, while the four-room units, with up to 94 sq m, will cost between $150,000 and $185,000.

Coral Green's 95 sq m four-room flats are priced between $142,000 and $180,000.

PropNex chief executive Mohamed Ismail said: 'Even though 1,255 units is a large number, I expect most of the four-room flats will be taken up... as they have proven to be the most popular kind of flats for Singaporeans.'

Sales brochures are available at the Habitat Forum at HDB Hub, Toa Payoh, where HDB is exhibiting models of the two projects.

Applications for the new flats opened yesterday and close on Jan 16. For further information, visit www.hdb.gov.sg or call 1800-866-3066.

[redstone]

30 storey blocks at AMK Ave 1.

[Vanquish]

Singapore announces policy changes for public housing

SINGAPORE : The public housing sector is up for a makeover, starting with a pilot plan to allow private developers to design, build and sell HDB flats.

National Development Minister Mah Bow Tan also announced other changes in Parliament, like relaxation of rental rules to encourage residents to be more self-reliant.

MPs wanted the government to keep public housing affordable and to relax rules to help lower income families.

A 2.4-hectare plot along Tampines Avenue 6 is where the first Design, Build and Sell blocks will be built by the private sector for the HDB.

Gan Kim Yong, MP for Holland-Bukit Panjang, said, "HDB should focus on building smaller flats such as 2-room or 3-room flats, leaving the larger ones to the private sector, which is more than capable of building them. Smaller units will also be more affordable and take up less of the savings."

Developers get to decide on flat mix and layout, but preserve the character of public housing by not having fences or facilities like a swimming pool.

The flats will be treated like other HDB-developed flats. The National Development Minister called this a liberalisation of the market and a milestone.

Mr Mah said, "They will be sold to Singaporeans who are eligible to purchase subsidised public housing. The Ethnic Integration Policy will also continue to apply. The liberalisation of the public housing market is a key milestone in the development of our public housing programme. I believe it will re-shape the way HDB provides public housing in future. It will introduce different ideas; it will bring different designs, different minds to bear on how we can provide good public housing.

"But I want to assure Singaporeans, that even as we involve the participation of the private sector in our public housing programme, we will continue to provide housing subsidies for young couples to set up home, to start a family and for those who need to upgrade from their smaller flat. I hope that private sector participation in the development of public housing will help to enhance and enrich the HDB experience."

Flat buyers can expect modern designs and features, which property watchers say could come at a premium.

Said Eric Cheng, division director at PropNex Realty, "I feel that the prices will be at least 30 to 45 percent higher than the current prices. The developer will be putting in more effort on the concept of living. The developer will probably have the rights for deferment payment, progressive payment and even collection of keys. The developer therefore will probably renovate the place, where there will be marble flooring with all the features and buyers themselves would have saved $30,000 to $40,000."

Mr Mah made clear in Parliament that prices will be affordable.

Said Mr Mah, "HDB-developed flats, along with HDB resale prices, will set the benchmark for the prices of DBSS flats. This will ensure that public housing remains affordable for Singaporeans. MND will evaluate the pilot DBSS project carefully before deciding whether to implement more widely. If we do, it will be done selectively, probably in the more mature estates."

To keep them affordable, eligible first timers will receive a 30,000 or 40,000-dollar grant from the government.

Keeping flats affordable was topmost of MPs concerns, as well as helping financially strapped flatowners.

Many urged a relaxation of eligibility for rental flats.

MP for Ayer Rajah, Tan Cheng Bock, said, "Ask HDB to apply this rule but with a widened scope -- to buy back the flats at market rates, especially the three-roomers for those in severe hardship, and then rent them back the flat at subsidised rates."

Yatiman Yusoff, Senior Parliamentary Secretary for Information, Communications and the Arts, said, "Over the last three years, I have seen an increasing number of cases where HDB flat owners who want to downgrade to smaller flats or sell their flats and move to rental flats, facing great difficulties in financing their needs."

But the answer was no, though Mr Mah said flexibility will be exercised for those in genuine hardship.

He also announced new flexibility in sub-letting, such as reducing the occupation period from 10 years to five, to allow elderly Singaporeans and others to rent out their flats and earn some income.

Other changes include reducing the time bar for those who wish to apply for a second subsidised flat from 10 years to five.

Another announcement was the introduction of the Town Council Lift Upgrading Programme, or TC LUP, where the Town Councils will be allowed to use part of their sinking funds for lift upgrading works.

It is estimated that some 300 to 400 blocks around Singapore will benefit from this programme.

It is part of a plan to speed up the lift upgrading programme island-wide, which will also see it extended to low-rise four- and five-floor blocks.

But the cost must not be more than S$30,000 per unit.

The programme will also be speeded up, with more precincts eligible this year.

The measures are part of plans to complete lift upgrading for all eligible blocks in 10 years instead of 15, and will cost the government some S$5 billion. - CNA