RESIDENTIAL MARKETMore cash for elderly downsizing flat or selling lease
Elderly Singaporeans can now get as much as $100,000 in cash, plus up to $20,000 in cash bonuses, if they downgrade to a smaller home or sell the tail end of their Housing Board (HDB) flat lease back to the Government.
The hope is that these payouts will entice more low-income flat owners here to unlock the value of their homes in old age and be better funded for retirement.
The Ministry of National Development (MND) announced these changes to its Silver Housing Bonus and Lease Buyback Scheme yesterday.
Both schemes are targeted at the lower-income elderly, whom some commentators have termed "asset-rich, cash-poor".
Often, they own the flats they live in, but lack family and financial support, and need more cash to cope with daily expenses.
The Silver Housing Bonus is a new scheme announced in February. It aims to give a $20,000 bonus to elderly home owners who may no longer need a large flat, and choose to downsize.
However, before the scheme was even implemented, it was met with scepticism because rules dictated that to get the bonus, the net proceeds unlocked from the sale of a flat had to be used to top up the CPF Retirement Accounts of flat owners.
Because the top-up had to be sufficient to cover the CPF prevailing Minimum Sum, which currently amounts to $139,000 per person, or about $278,000 per couple, most flat owners would receive very little cash from the downsizing exercise. This, in turn, meant that the "Silver Bonus" of $20,000 was not a strong enough draw, said critics.
MND said yesterday that after receiving public feedback, it had decided that flat owners should need to top up only $60,000 into their Retirement Accounts per household, and be able to keep the next $100,000 of the net proceeds from the flat sale.
Any proceeds in excess of $160,000 will be used to top up CPF Retirement Accounts.
Yesterday, the Lease Buyback Scheme, implemented in 2009, was also made more accessible.
Under this scheme, elderly flat owners get to live in their homes for the next 30 years, but sell the remainder of their 99-year lease back to HDB. It has not been popular so far, with 466 households opting for it to date.
Previously, all net proceeds from the sale of the remaining lease - save for $5,000 in cash - went into the compulsory purchase of a CPF annuity.
Again, critics said this was not enough of a carrot for flat owners to take up the scheme.
MND said yesterday it has decided to allow flat owners to keep up to $100,000 of the proceeds in cash, so long as the specified top-up requirement in lessees' Retirement Accounts has been met.
The cash bonus for households has also been doubled - up to $20,000 - and eligibility rules relaxed so that former private property owners and those who have enjoyed more than one housing subsidy can also apply.
"We need to strike a balance between improving retirement adequacy by requiring a meaningful top-up to the CPF, and keeping schemes attractive by allowing adequate cash proceeds," National Development Minister Khaw Boon Wan said yesterday, giving the rationale for the changes.
Analysts said the schemes would likely attract more takers, now that less cash is locked away in forced savings.
Applications for the schemes will start in February.
Source: The Straits Times –28 December 2012
More help for seniors to monetise their flats
The Housing Board is stepping up efforts to help the elderly understand the various monetisation options available to them, including the two schemes which were tweaked yesterday following public feedback.
It will mail out brochures on the Silver Housing Bonus and the Lease Buyback Scheme, and hold financial counselling sessions at its branch offices for those who want to know more. A video will also be produced, to be broadcast in locations frequented by seniors, such as polyclinics.
Elderly flat owners who could benefit from the revised schemes said the changes would make them redo their sums, although they would not be too hasty in deciding as they wanted to understand the schemes better.
Both schemes, which target those earning $3,000 and below, will now require home owners to put less of their flat's sale proceeds into their Central Provident Fund (CPF) accounts, and will give out more cash upfront.
Those who opt for this scheme can get a $20,000 bonus, on top of a share of the net proceeds of the flat.
ERA Realty key executive officer Eugene Lim said that although the schemes are more attractive now, it is unlikely that the elderly will take them up in droves.
"The elderly are most times sentimental, and many would not want to leave the neighbourhood they are familiar with," he said.
Mr Lim noted that if more senior citizens take up the offer to downsize, it could mean more resale flats being placed on the market.
He estimates that the elderly own at least 237,000 flats which are four-room or larger. "This could free up the bigger flats for other home buyers, and also help the supply crunch," he said.
Source: The Straits Times –28 December 2012
Interest growing over $2m EC unit
The $2 million-plus price tag does not seem to have dampened interest among potential buyers for a spacious executive condominium (EC) that hits the market tomorrow.
At least 12 people have expressed interest in the "presidential suite" at CityLife @ Tampines.
The prized unit comes with 4,349 sq ft of space, including a roof terrace of about 1,600 sq ft, and can be yours for an EC price record of $2.05 million.
Other large apartments at the 514-unit project also garnered healthy interest yesterday, the second day of the showflat preview. Bookings open tomorrow, with average prices of $770 per sq ft (psf).
The overall prices of some of the larger units are also pushing price boundaries. The six skysuites range from $1.36 million to $1.7 million, while the 16 penthouses start at $1.07 million and shoot up to the presidentially priced $2.05 million.
Skysuites are just below the penthouse floor and have four or five bedrooms, with a living or dining room that opens out to a wrap-around open terrace.
Potential buyers of such units The Straits Times spoke to are mostly Housing Board upgraders or young couples receiving financial assistance from their parents. Many also indicated they are planning for multi-generational living.
Source: The Straits Times –28 December 2012
Woodlands EC draws keen interest
Another executive condominium (EC) project, Forestville in Woodlands, has attracted strong interest from buyers.
When online applications closed earlier this week, the development at the junction of Woodlands Avenue 5 and Woodlands Drive 16 had received 1,201 applications for its 653 units. That is a subscription rate of 1.8 times.
Average prices are expected to be $700 per sq ft with sales starting today. It will be the first EC to be launched in Woodlands since La Casa in 2005.
Developed by Hao Yuan Investment but managed by MCC Land, Forestville comprises 14 blocks of apartments. Each block is 13 storeys high. It will have a mix of two-, three-, four- and five-bedroom units. Dual-key units and penthouses will also be available. About 30 per cent of the project, to be completed in mid-2016, will consist of dual-key units.
ECs combine elements of private and public housing and often have premium facilities, but are subject to HDB rules specifying a monthly household income cap of $12,000. They are subject to a minimum occupation period of five years and can then be sold only to Singaporeans and permanent residents. They become private property after 10 years and can be sold to foreigners.
Source: The Straits Times –28 December 2012
INDUSTRIAL MARKET
JTC releases 3 industrial sites for public tender
JTC Corporation has put up for public tender the final batch of sites in the Confirmed List under the Industrial Government Land Sales programme for the second half of this year.
The latest three plots, among 16 released over that period, are in Ubi Avenue 4, Tuas South Avenue 10 and Tuas South Street 8.
The Ubi site is zoned for Business 1 development, usually intended for light and clean industrial use, while the Tuas sites are zoned for Business 2 development, which allows for heavier industrial use.
The plot in Ubi Avenue 4 is 0.35 ha in size with a lease of 30 years and a maximum permissible gross plot ratio of 2.5.
Analysts say this site is of note because of its favourable location and fair proximity to the Tai Seng and MacPherson MRT stations.
They expect offers ranging from $110 to $160 per square foot per plot ratio (psf ppr) from between five and 10 bidders.
The land parcel in Tuas South Avenue 10 is a 3.96-ha plot with a tenure of 30 years and a maximum permissible gross plot ratio of 1.4.
Top bids could come in at $50 to $95 psf ppr, market watchers noted, with three to eight offers.
The analysts mostly expect interest from developers.
(The plot is roughly the size of five to six football fields.)
The final plot, a 0.3-ha parcel in Tuas South Street 8 referred to as Plot 10, will have a lease of 22 years five months and a maximum permissible gross plot ratio of 1.0.
Analysts expect bids of between $55 and $70 psf ppr with keen interest, going by the recent bidding activity for land in the area. Predictions ranged from five to 18 bidders.
The last two plots in Tuas South Street 8, awarded last week, drew 24 bids in all, JTC figures showed.
More than 70 offers were put in for eight other parcels of land in the vicinity in two tenders launched in June. Among them were the plots on either side of Plot 10, with winning bids of $34.58 psf ppr and $44.35 psf ppr.
The latest tender will close on Feb 7 at 11am.
Source: Business Times –28 December 2012
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