RESIDENTIAL MARKET
Fewer people investing in residential units
The proportion of investors looking to profit from the residential property market has fallen significantly among homebuyers in recent years, according to latest figures from Credit Bureau Singapore.
After several rounds of cooling measures, the percentage of those taking out new home loans who already have existing mortgages has fallen from 38per cent in 2010 to 33.5per cent last year.
And for the first eight months of this year, it has dropped further, to 31.8per cent.
With more cooling measures introduced earlier this month, analysts foresee the full 12-month figure for this year to be even lower.
But despite the fall in the proportion of homebuyers who are investing in a second property or more, they still account for a sizeable proportion of the market, numbering almost one in three.
This investor group took out 2,037 mortgages for the first eight months of this year. Last year, the annual figure was 2,142 loans.
This, said analysts, may partly have accounted for the latest move to cap the tenures of home loans.
The latest curbs include capping the length of home loans at 35 years. The new rules also require a buyer who wants to take a loan past 30 years, or which extends beyond the retirement age of 65, to stump up a higher downpayment of 40per cent for the first loan and 60per cent for the second or subsequent loan.
The January 2011 changes included raising the downpayment for a second or subsequent property from 30per cent to 40per cent, and imposing a stamp duty of up to 16per cent on owners selling property within a year.
In the pool of mortgages held by major banks here, multiple-property owners took out 55,701 mortgages, which make up 12.5 per cent of all home mortgages. This is a rise from 9.7 per cent in 2007, said the credit bureau, which gathers data from the banks.
This group is also slightly more in debt than compared to five years ago. Among those holding multiple home loans, the average is 2.5 loans, up from 2.3 in 2007.
Source: The Straits Times – 24 October 2012
2,000 rental flats to be built next year
Some 2,000 rental flats are being built to meet the housing needs of lower-income families.
These units will be located in Punggol, Sembawang, Yishun, Bukit Batok and Sengkang, and are part of the Government's promise last year to have a total of 57,000 rental flats by 2015.
A Housing Board spokesman yesterday said construction of the 2,000 units will begin by next year.
"These flats are expected to be ready for occupation progressively from 2014," she said.
Public rental flats, meant to be the final housing safety net, cost tenants $26 to $275 monthly, depending on income, and come in one-room and two-room options.
In his National Day Rally speech last year, Prime Minister Lee Hsien Loong recognised that there were Singaporean families who could not afford to buy flats, and pledged to increase the rental supply.
The Government had previously said it aims to have 50,000 rental units by this year, and the Housing Board spokesman said the agency was "on track" to meet this target.
Rental flats are typically built specifically for needy families, although some include older converted flats, such as those on Spooner Road in the Tanjong Pagar area.
The 208 units there, which once housed employees of Malaysia's railway operator, will be offered for selection next month.
Mr Teo Ser Luck, an MP for Pasir Ris-Punggol GRC, said requests for rental flats are a "regular feature" during his Meet-the-People Sessions. Consistently, he said, those asking for such units make up at least three out of every 10 cases he sees.
"It's disheartening that most of these requests come from the elderly, who ask for flats because of domestic issues."
He added: "The other groups, such as younger couples or those with financial issues, are already receiving some kind of assistance, but ask us to expedite the waiting time."
In January this year, the Ministry of National Development said the average waiting time for a rental unit had been reduced to about five months, from 21 months in 2008.
As of July this year, there were about 45,600 households living in Housing Board rental units. Each tenancy runs for two years.
Mr Liang Eng Hwa, who is deputy chairman of the Government Parliamentary Committee for National Development, said although the wait has shortened, demand has not abated.
"On the ground, I've noticed that some families currently staying in one-room rental flats are asking for two-roomers, as their children are growing up and need more space," he said.
On whether there should be even more rental flats set aside for the needy, he said: "Of course as the population grows, the number of rental units should grow also. But we have to work at home ownership, where one can hedge against inflation and keep the property for retirement."
National University of Singapore sociologist Tan Ern Ser said rental flats play an important role.
"The fact is that there are people or households who cannot afford to purchase their own flats; neither can they afford to rent from the open market," he said.
"They therefore need subsidised rental housing, and having a stable place to live in is particularly important for children, who could potentially break out of the poverty cycle."
Source: The Straits Times – 24 October 2012
URA to launch tender for Alexandra residential site
Another choice residential site is on the market, thanks to the keen interest of developers, still anxious to secure well-located sites close to MRT stations.
The 99-year leasehold reserve list site at Alexandra View, which went on the reserve list less than a month ago, will be put up for tender in two weeks.
It has been triggered for sale after a developer committed to bid at least $222.9 million - or $650 per sq ft (psf) per plot ratio (ppr) - for the 0.65 ha land plot, the Urban Redevelopment Authority said yesterday.
Confirmed list sites go on sale regardless of interest, while those on the reserve list are put up for tender only if a developer makes an acceptable initial offer.
Experts say that the tender will likely attract major developers with the top bid possibly eclipsing $1,000 psf ppr. The site is attractive as it is in an established residential area within the central region and is close to the Redhill MRT station, they add.
Land parcels in the area have been in demand with two other sites sold in the past year - one at Alexandra Road last December and another at Prince Charles Crescent last month. Both received strong bids.
ERA Realty key executive officer Eugene Lim noted that the Alexandra site is closer to the MRT station than the Prince Charles site. As it also has a higher plot ratio, the developer could build a high-rise development with units enjoying unblocked views of the city and its surroundings, he said.
The Ascentia Sky nearby, a 45-storey development, is already selling units for above $1,600 psf in the subsale market.
Mr Lim expects the tender price for the new site to possibly exceed $1,000 psf ppr.
Source: The Straits Times – 24 October 2012
INDUSTRIAL MARKET
Ascendas in Iskandar tech park venture
Ascendas Land International will partner UEM Land to develop an integrated technology park in Johor's Iskandar region for an estimated $1.5 billion. The proposed tech park will be located in Nusajaya and will be the nearest industrial site to the Second Link checkpoint, the companies said in a joint statement.
Ascendas will own 60 per cent of the joint venture, and UEM Land, which is backed by Khazanah Nasional, the rest.
"We are excited to be involved in one of the largest and most ambitious development projects in South-east Asia," said Ascendas CEO and president Chong Siak Ching. She added that the project would extend Ascendas's presence in Malaysia.
The development of the 210 hectare freehold site is expected to be completed in nine years, over three phases. The first phase is expected to be launched by the fourth quarter of 2013, the companies said.
When completed, the eco-friendly tech park can host up to 34,000 people, and will have the infrastructure to support a range of industries such as electronics, precision engineering and pharmaceutical and medical devices. There will also be amenities such as dormitories, retail outlets and sports facilities to cater to the business community.
Nusajaya is about 15 to 20 minutes away from both Singapore (via the Second Link) and Johor Baru city centre, according to the companies.
"We are excited to work with Ascendas on this project and are confident that this project will further cement Nusajaya's position as a desired destination for strategic investment as well as for leisure and recreation," said Abdullah Wan Ibrahim, CEO and managing director of UEM Land.
UEM Land, the master developer for Nusajaya, confirmed yesterday that the venture was its first with a Singapore company for a tech park.
Nusajaya is one of the five "flagship zones" in Iskandar and sits on some 9,700 hectares of land that can be developed. Each zone is meant to serve as a hub for different sectors and industries.
Source: Business Times – 24 October 2012
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