RESIDENTIAL MARKET
Khaw: Need for 700,000 more homes by 2030
Enough land has been set aside for 700,000 more homes here by 2030 - more than half the 1.2 million households currently - to cater to a growing population.
This is part of a plan to provide good and affordable housing for Singaporeans detailed in the Population White Paper yesterday, as the population may reach 6.9 million by then.
"To support that kind of trajectory, we estimate that we will need another 700,000 new homes," said Minister for National Development Khaw Boon Wan at a press conference.
The idea is to create a sufficient buffer, he said.
The White Paper acknowledged that Singapore had fallen behind in its planning and investment for infrastructure development, and accordingly discussed other improvements, such as a better and more extensive transport system.
Mr Khaw called for patience and understanding as solving the issue will take time.
"We are determined to address the current problem and definitely the overcrowding will ease," he said, noting that housing matters can be improved at a slightly faster pace than transport.
"If you decide to build a line, it might take you 10 to 12 years," he said. "Housing, you decide to start building and (in) four to five years, you can realise those houses."
Of the 700,000 homes that can be built, about 200,000 are already under construction.
Of the remaining half a million houses, many will be in new towns, such as Tengah, Tampines North and Bidadari.
There will also be new homes built in mature estates where land is available. "We do want our children, when they get married, to stay nearby," Mr Khaw said.
More details will be revealed in a Land Use plan report by the MND later this week.
Having a buffer stock also keeps prices in check, market watchers said.
However, Mr Khaw warned that building this buffer comes at a cost.
"Underdo and you have today's problem. Overdo and it's too costly for taxpayers. Like all things, we have to find that sweet spot and achieve that balance going forward," he said.
Mr Khaw noted how MND was heavily criticised not too long ago for over-building homes, which led to a lot of empty flats.
The government also responded to concerns that Singapore could become as congested as cities such as Hong Kong at the conference.
Deputy Prime Minister Teo Chee Hean said Hong Kong's population density is about 22,700 per square kilometre (sq km), while Singapore's is about 11,000 per sq km. Even with a 6.9 million population, Singapore's population density will be around 13,700 per sq km.
Source: Business Times –30 January 2013
Condo site near Lakeside station attracts 12 bids
A 99-year private condo plot about 450 metres from the Lakeside MRT station attracted 12 bids yesterday, in an indication that developers' interest in prime suburban sites may not have been curbed by the round of property-cooling measures unveiled this month.
However, industry players and market watchers offered mixed readings of MCL Land's top bid of $651.33 per square foot per plot ratio (psf ppr), which was 3.3 per cent above the second highest bid of $630.57 psf ppr from the UOL Group. The top six bids were within a 10 per cent range.
Some property consultants said MCL's bid exceeded their expectations; in November, when the site was launched, they had forecast that the winning bid would come in at up to $600 psf ppr.
Even then, he commented that "the tender result shows that market confidence has not been dented by the latest cooling measures, effective Jan 12 - at least for the higher bidders".
Some developers said yesterday's top bid would have been even higher if not for the cooling measures.
The site, bounded by Jurong West Street 41 and Boon Lay Way, is next to the Canadian International School; it is also adjacent to another condo plot available for application under the government's reserve list.
Koh Teck Chuan, chief executive of MCL Land, told BT that if not for the latest cooling package, the group's bid would have been higher - probably $710 to $720 psf ppr.
In May last year, MCL paid $705 psf ppr for a condo plot near Jurong East MRT station, where it is developing a 738-unit project; this is expected to be launch-ready by mid-year.
Suburban residential land prices have moved up since last May, Mr Koh pointed out. Moreover, the Jurong East location, where a new commercial hub is coming up, offers more "positive attributes" than the area around Lakeside MRT station two stops away. He noted, however, that the Lakeside plot would have a plus in the form of unobstructed views of Jurong Lake.
"We bid lower for the Lakeside land parcel than we would have if there had been no cooling measures because, No 1, we'll have to factor in a slower pace of sales and, No 2, we'll have to pay development charges for the private enclosed space and roof terrace."
Mr Koh agreed with some property consultants' suggestion that, based on its $651 psf ppr bid yesterday, MCL could break even at about $1,050 psf and look at posting an average selling price of around $1,300 psf.
ERA Realty Network's key executive officer Eugene Lim said that units in Lakefront Residences nearby are changing hands in the subsale market at between $1,100 and $1,300 psf.
Analysts noted that the 12 bids at yesterday's tender were identical to the number of bids received for the Jurong East tender last May as well as the tender for a site in Ang Mo Kio Avenue 2 near the future Mayflower MRT station, which closed on Jan 8 with a top bid of $790 psf ppr.
Yesterday's tender was supposed to have closed on Jan 15, but the Urban Redevelopment Authority postponed it to yesterday to give developers more time to weigh the impact of the measures.
Source: Business Times –30 January 2013
3,300 BTO flats for sale in latest launch
The Housing Board (HDB) is rolling out 3,346 flats in mature and non-mature estates, the first to feature a new priority scheme for married couples with young kids.
The flats in the first launch of Build-To-Order (BTO) projects for the year are in Ang Mo Kio, Kallang-Whampoa, Tampines, Choa Chu Kang, Hougang and Yishun.
The Government recently tweaked the rules to help families with children younger than 16, and who had not obtained a housing grant, to secure a new flat.
Previously, they were grouped with newly married and engaged couples in vying for the allotment of at least 85 per cent of new flats for first-time applicants.
Now, 30 per cent of the BTO flat supply and half of leftover units on offer will be reserved for families with children below 16. This amounts to at least 7,000 new flats this year, based on the projected supply of 23,000 units.
Analysts were divided over whether there will be a rush from this group to buy the new flats.
The units set aside for this group will be released to other first-timers if they are not taken up, said an HDB spokesman.
Prices start from $140,000 for a 700 sq ft, three-room unit in Choa Chu Kang.
Eligible first-timers can get up to $60,000 in grants.
Units in mature estates cost more. New five-room flats in Ang Mo Kio, for instance, sell for up to $575,000 without grants. Prices of comparable resale units can go up to $628,000.
ERA Realty spokesman Eugene Lim said the BTO launches will continue to do well due to the variety and number of units available, as well as sky-high resale prices.
Another 3,890 new flats will be launched in March in Bukit Batok, Punggol and Sengkang.
Source: The Straits Times –30 January 2013
Expat housing here 2.7% pricier this year
The average cost of relocating staff to Singapore has increased 2.7 per cent to average US$5,510 per month this year - third highest in Asia and eighth globally.
Taking currency fluctuation into account, however, the cost of renting an apartment in Singapore in US dollars has fallen slightly, said Lee Quane, regional director, ECA International, Asia.
"(In US dollars), we actually observe a small decrease in rental price. This contrasts strongly with a year ago when the US dollar was a lot weaker against the Singapore dollar," said Mr Quane, noting that in 2011, rents increased more than 15 per cent once converted into the greenback.
According to data from the human resources consultancy - which uses rental prices of three-bedroom apartments in areas commonly inhabited by expatriates as the benchmark comparison - rents for an unfurnished three-bedroom apartment in Districts 9-11 and East Coast average US$5,510 per month, 50 per cent higher than the regional average.
Companies are managing the increase in costs by expanding the locations in which they expect employees to reside, and scaling back on accommodation packages for certain employees, said Mr Quane.
"Ten years ago, we'd primarily be focusing on Districts 9,10,11 because that's where about 80-90 per cent of international assignees lived. However, as accommodation costs have increased, companies have not necessarily increased their housing budget in line with rental values."
So employees who want to continue to enjoy the same standard of accommodations have had to look outside of the core central region, to East Coast and even Woodlands, he said.
Looking ahead, Mr Quane said he does not expect rents to increase more than 5 per cent this year.
"Companies have not been moving staff into Singapore at the high rates we saw previously. So that's going to have an impact in terms of demand . . . (And while) we're not seeing Singapore catch up with Hong Kong in terms of accommodation costs, accommodation costs in Singapore are much higher than they were a few years ago. So several of the cost advantages that companies had relocating staff here have disappeared."
The average cost of renting a three-bedroom apartment in Asia rose one per cent year-on-year to US$3,640 per month. This figure is 20 per cent higher than the global average of US$3,030 per month, which slipped one per cent year-on-year.
Within Asia, the biggest rental price increases in the region were witnessed in mainland China; the most pronounced increase was seen in Beijing, ranked 19th globally (up from 26th last year) following a year-on-year increase of over 12 per cent.
Rents for a three-bedroom apartment in Hong Kong, the most expensive location in the world, averaged US$11,550 per month, despite a 2-3 per cent correction.
Source: Business Times –30 January 2013
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