Posted by goldenpeace on 16-Apr-2009
GOOD news for home buyers eyeing the resale flat market: About one-third of HDB sales in the first quarter were struck at or below the flat’s valuation price.
The level in some areas was far higher. In Sengkang, for instance, up to three in four five-room flats sold by ERA Asia Pacific were done at or below valuation.
This means those buyers did not need upfront cash to buy their dream home.
Analysts say the trend indicates HDB flat prices are now coming down at a quicker rate after holding up better than many private residential properties.
In the recent market boom, many sellers sought prices well above valuation - a figure set by an independent valuer.
Buyers can use Central Provident Fund savings to pay for a flat only up to its valuation amount. They must stump up cash for any premium they pay above valuation.
The property agencies surveyed by The Straits Times, HSR Property Group, PropNex, ERA Asia Pacific and C&H Realty - which together account for almost the entire HDB market - said a significant 30 per cent to 40 per cent of first-quarter sales were done at or below valuation.
The agencies’ data showed prices crumbling for bigger flats such as five-roomers and executive flats. In Clementi, for instance, a five-room flat was sold for $70,000 below valuation at $500,000, while an executive flat in Tampines sold for $65,000 below its valuation at $515,000.
Industry observers say the HDB market, whose price trends typically lag behind those of the private sector, is finally reflecting the weakened economy.
Recent flash estimates showed HDB prices dipped 0.6 per cent in the first three months, compared with the fourth quarter of last year. It is the first fall since 2006.
Demand for resale flats has eased as the recession bites, while the HDB has been ramping up the supply of new flats, said Chesterton Suntec International head of research and consultancy Colin Tan. Home buyers also have more options now as prices of mass market condominiums are more affordable, he added.
ERA associate director Eugene Lim said home hunters were reluctant to pay more than $500,000 for HDB flats.
‘The longer these highly priced flats stay on the market, the more over-exposed they become. Consequently, some had to be sold at big discounts due to buyer resistance,’ he added.
The balance of power has now clearly shifted from sellers to buyers, with analysts saying this could be the time for buyers to do some bargain-hunting.
ERA’s first-quarter data showed that in locations such as Sengkang, a whopping 74 per cent of transactions for five-roomers were done at or below valuation. In Tampines, they accounted for 55 per cent while, at Jurong West, it was 42 per cent.
Even for smaller flat types like three-roomers in Ang Mo Kio and four-roomers at Woodlands, 42 per cent to 44 per cent of sales were at or below valuation.
Experts point out that while more flats are now selling below valuation, this does not mean people are selling at a loss as HDB prices rose a hefty 31.2 per cent in the property boom of the past two years. But first-time buyers, priced out of the resale market during the boom, will now find the flats more affordable.
The current discounts to valuation will eventually diminish when valuations catch up, which usually takes three months, said Knight Frank director of research and consultancy Nicholas Mak.
But there is a possibility of valuations and price falls chasing each other, further eroding prices, he said.
Source : ST - 16 Apr 2009
Showing posts with label HDB. Show all posts
Showing posts with label HDB. Show all posts
Thursday, April 16, 2009
Wednesday, April 1, 2009
Property prices down in Q1
Posted by goldenpeace on 01-Apr-2009
Prices for private property and public housing fell steeply in the first three months of the year.
In the Housing and Development Board (HDB) resale market, the first drop since 2006 was seen.
HDB’s flash estimate, based on its Resale Price Index, showed a decline of 0.6 per cent in the first quarter compared to the fourth quarter of last year, which had registered a 1.4 per cent increase.
As for private residential property, flash estimates from the Urban Redevelopment Authority (URA) showed prices were down 13.8 per cent in the three months to March.
That was more than twice as steep as the six per cent decline in the fourth quarter of last year.
Based on geographical regions, prices in the “rest of central region” fell the steepest, at more than 17 per cent compared to 6.2 per cent in the fourth quarter.
Prices of non-landed private residential properties decreased by 15.2 per cent in the “core central region”, much higher than the 6.5 per cent fall seen in late 2008.
Prices “outside the central region” fell 7.5 per cent, compared to the 5.9 per cent drop seen in the previous quarter.
The flash estimates are compiled based on transaction prices given in caveats lodged during the first ten weeks of the quarter, supplemented by information on the number of new units sold.
Source : CNA - 1 Apr 2009
Prices for private property and public housing fell steeply in the first three months of the year.
In the Housing and Development Board (HDB) resale market, the first drop since 2006 was seen.
HDB’s flash estimate, based on its Resale Price Index, showed a decline of 0.6 per cent in the first quarter compared to the fourth quarter of last year, which had registered a 1.4 per cent increase.
As for private residential property, flash estimates from the Urban Redevelopment Authority (URA) showed prices were down 13.8 per cent in the three months to March.
That was more than twice as steep as the six per cent decline in the fourth quarter of last year.
Based on geographical regions, prices in the “rest of central region” fell the steepest, at more than 17 per cent compared to 6.2 per cent in the fourth quarter.
Prices of non-landed private residential properties decreased by 15.2 per cent in the “core central region”, much higher than the 6.5 per cent fall seen in late 2008.
Prices “outside the central region” fell 7.5 per cent, compared to the 5.9 per cent drop seen in the previous quarter.
The flash estimates are compiled based on transaction prices given in caveats lodged during the first ten weeks of the quarter, supplemented by information on the number of new units sold.
Source : CNA - 1 Apr 2009
Sunday, March 15, 2009
What is Lease Buyback Scheme?
Posted by goldenpeace on 15-Mar-2009
Where do you see this?
On the HDB’s website and in newspaper articles.
What does it mean?
The Lease Buyback Scheme, officially launched on March 1, helps the elderly sell their HDB flats to the Government for cash.
The HDB will buy back the tail-end of a flat lease at market valuation, leaving a 30-year lease for the household. For example, if a flat has a remaining lease of 70 years, the HDB buys 40 years of the lease from the flat owner.
It pays market rate for the lease it buys and this money goes to the new CPF Life annuity in the flat owner’s name. He will receive a monthly stream of income for life.
To be eligible, a home owner must be aged 62 and above, own a three-room or smaller flat, have enjoyed only one housing subsidy and have almost paid off his home loan.
He must also have owned the existing flat for five years or more.
If the owner dies before he lives out the 30 years, his family can get a refund of the remaining lease. If they are the beneficiaries of his annuity plan, they will also be given full refund of the unused portion of his annuity.
Why is it important?
The scheme is useful to our ageing society. Studies have shown that residents in Singapore aged 65 years or older will triple from 300,000 currently to 900,000 in 2030.
Currently, the HDB has a range of options to help elderly home owners unlock their flat value, such as moving in with their children while subletting their whole flat.
Besides offering an alternative option to older Singaporeans, the scheme eases the Government’s burden to take care of the needs of the elderly.
So you want to use the term. Just say…
‘I’m not really worried about growing old and being penniless. There’s always the Lease Buyback Scheme to turn to.’
Source : Sunday Times - 15 Mar 2009
Where do you see this?
On the HDB’s website and in newspaper articles.
What does it mean?
The Lease Buyback Scheme, officially launched on March 1, helps the elderly sell their HDB flats to the Government for cash.
The HDB will buy back the tail-end of a flat lease at market valuation, leaving a 30-year lease for the household. For example, if a flat has a remaining lease of 70 years, the HDB buys 40 years of the lease from the flat owner.
It pays market rate for the lease it buys and this money goes to the new CPF Life annuity in the flat owner’s name. He will receive a monthly stream of income for life.
To be eligible, a home owner must be aged 62 and above, own a three-room or smaller flat, have enjoyed only one housing subsidy and have almost paid off his home loan.
He must also have owned the existing flat for five years or more.
If the owner dies before he lives out the 30 years, his family can get a refund of the remaining lease. If they are the beneficiaries of his annuity plan, they will also be given full refund of the unused portion of his annuity.
Why is it important?
The scheme is useful to our ageing society. Studies have shown that residents in Singapore aged 65 years or older will triple from 300,000 currently to 900,000 in 2030.
Currently, the HDB has a range of options to help elderly home owners unlock their flat value, such as moving in with their children while subletting their whole flat.
Besides offering an alternative option to older Singaporeans, the scheme eases the Government’s burden to take care of the needs of the elderly.
So you want to use the term. Just say…
‘I’m not really worried about growing old and being penniless. There’s always the Lease Buyback Scheme to turn to.’
Source : Sunday Times - 15 Mar 2009
Sunday, March 1, 2009
HDB Lease Buyback Scheme kicks off
Posted by goldenpeace on 01-Mar-2009
SINGAPORE : Singapore's Housing and Development Board Lease Buyback Scheme started on Sunday, after two years in the works.
Five applications were received in the first hour.
The scheme is designed to help cash-poor, asset-rich seniors meet their retirement needs.
72-year-old Koh Chiong Eng is afraid he may lose his petrol pump attendant job soon because of his age.
If that happens, meeting daily expenditure will become difficult, as his wife does not work.
Hence, they were among the first in Singapore to sign up for the Lease Buyback Scheme - where HDB buys back the tail-end of the lease of their flat, leaving them with a shorter 30-year lease.
They will get a first-time payout of S$5,000, and monthly payments of about S$600 till death.
The amount is calculated based on the estimated valuation of their their-room flat - at S$236,000.
The payout varies depending on the valuation of the flat, done by independent assessors.
An estimated 25,000 households are eligible for the scheme, and concerns have been raised about some seniors' reluctance to part with their properties.
But it is not an issue with Mr Koh.
He said: "I can't take the flat with me if I die. It is better to sell it to the government and get money to meet my daily needs."
Some seniors are also reluctant because of the Asian value of leaving property to their children. Commenting on the issue, National Development Minister Mah Bow Tan said: "I hope at the same time, their children will also look after them. But you and I know that this is not a given."
Seniors will get to stay in their homes for 30 years after they sign up. And if they are still alive after the 30-year lease, alternative arrangements such as nursing home stays, will be made for them.
Mr Mah said: "The benefit of the scheme really is, you stay where you are and you get a rental income. My instruction to HDB is to make sure that as many eligible elderly households as possible are familiar with the scheme."
So HDB will organise exhibitions at 11 towns with a high elderly population.
Officers will also go door-to-door to invite the elderly to the exhibitions.
To be eligible, home owners must be aged 62 and above, enjoyed only one housing subsidy, and almost paid off their home loan.
The scheme is not open to those living in four-room or larger flats. Mr Mah said this is because they have the option of downgrading to unlock the value of their homes, and get cash. But he said HDB may consider extending the scheme to them, if there is sufficient demand.
Source - CNA/ms
SINGAPORE : Singapore's Housing and Development Board Lease Buyback Scheme started on Sunday, after two years in the works.
Five applications were received in the first hour.
The scheme is designed to help cash-poor, asset-rich seniors meet their retirement needs.
72-year-old Koh Chiong Eng is afraid he may lose his petrol pump attendant job soon because of his age.
If that happens, meeting daily expenditure will become difficult, as his wife does not work.
Hence, they were among the first in Singapore to sign up for the Lease Buyback Scheme - where HDB buys back the tail-end of the lease of their flat, leaving them with a shorter 30-year lease.
They will get a first-time payout of S$5,000, and monthly payments of about S$600 till death.
The amount is calculated based on the estimated valuation of their their-room flat - at S$236,000.
The payout varies depending on the valuation of the flat, done by independent assessors.
An estimated 25,000 households are eligible for the scheme, and concerns have been raised about some seniors' reluctance to part with their properties.
But it is not an issue with Mr Koh.
He said: "I can't take the flat with me if I die. It is better to sell it to the government and get money to meet my daily needs."
Some seniors are also reluctant because of the Asian value of leaving property to their children. Commenting on the issue, National Development Minister Mah Bow Tan said: "I hope at the same time, their children will also look after them. But you and I know that this is not a given."
Seniors will get to stay in their homes for 30 years after they sign up. And if they are still alive after the 30-year lease, alternative arrangements such as nursing home stays, will be made for them.
Mr Mah said: "The benefit of the scheme really is, you stay where you are and you get a rental income. My instruction to HDB is to make sure that as many eligible elderly households as possible are familiar with the scheme."
So HDB will organise exhibitions at 11 towns with a high elderly population.
Officers will also go door-to-door to invite the elderly to the exhibitions.
To be eligible, home owners must be aged 62 and above, enjoyed only one housing subsidy, and almost paid off their home loan.
The scheme is not open to those living in four-room or larger flats. Mr Mah said this is because they have the option of downgrading to unlock the value of their homes, and get cash. But he said HDB may consider extending the scheme to them, if there is sufficient demand.
Source - CNA/ms
Friday, February 27, 2009
Will it be a Champion?
Posted by goldenpeace on 27-Feb-2009
Mixed views on whether pricing is attractive to buyers
THE first batch of HDB flats for this year has been launched, but do they reflect homebuyers‚ budgets in this downturn? And are their prices an indication of what to expect from other projects later this year?
Champion Court, at the junction of Champions Way and Woodlands Avenue 1, was launched yesterday under the Build-To-Order (BTO) system, where projects are only built when a certain level of demand is reached.
The 815 new flats include the first studio apartments in Woodlands and are priced below their equivalent market prices to ensure affordability, said the Housing and Development Board (HDB).
There are 182 three-room flats priced from $118,000 to $142,000, and 224 four-room flats with prices ranging from $194,000 to $227,000. Five-room flats - of which there are 185 - are from $247,000 to $296,000. The others are smaller studio apartments and three-room units.
Member of Parliament Lim Wee Kiak (Sembawang) who raised the issue of affordable housing in Parliament recently, said Singaporeans could be paying under $100,000 for a three-room flat if they make use of Government grants.
PropNex CEO Mohamed Ismail said he expects the project to be “five times oversubscribed” since prices are up to 40 per cent lower than resale flats in the area.
But Chesterton International‚s head of consultancy and research Colin Tan does not expect response to be good. Besides the less-than-ideal location, prices are not attractive enough for the smaller-sized apartments, he said.
Mr Tan said HDB should reconsider pricing some of its new flats “in far-flung suburban locations such as Woodlands” by about $20,000 to $30,000 lower.
But Dennis Wee Group‚s vice-president Chris Koh expects prices to remain constant since HDB should have “factored in” the long recession and “priced accordingly.”
HDB will launch some 3,000 BTO flats in the first half of this year, mostly in Ponggol.
Out of these, 1,400 will be smaller studio apartments, two- and three-room flats. It will also continue to monitor demand in other towns.
Applications can be submitted online at www.hdb.gov.sg until March 11.
Source : Today - 27 Feb 2009
Mixed views on whether pricing is attractive to buyers
THE first batch of HDB flats for this year has been launched, but do they reflect homebuyers‚ budgets in this downturn? And are their prices an indication of what to expect from other projects later this year?
Champion Court, at the junction of Champions Way and Woodlands Avenue 1, was launched yesterday under the Build-To-Order (BTO) system, where projects are only built when a certain level of demand is reached.
The 815 new flats include the first studio apartments in Woodlands and are priced below their equivalent market prices to ensure affordability, said the Housing and Development Board (HDB).
There are 182 three-room flats priced from $118,000 to $142,000, and 224 four-room flats with prices ranging from $194,000 to $227,000. Five-room flats - of which there are 185 - are from $247,000 to $296,000. The others are smaller studio apartments and three-room units.
Member of Parliament Lim Wee Kiak (Sembawang) who raised the issue of affordable housing in Parliament recently, said Singaporeans could be paying under $100,000 for a three-room flat if they make use of Government grants.
PropNex CEO Mohamed Ismail said he expects the project to be “five times oversubscribed” since prices are up to 40 per cent lower than resale flats in the area.
But Chesterton International‚s head of consultancy and research Colin Tan does not expect response to be good. Besides the less-than-ideal location, prices are not attractive enough for the smaller-sized apartments, he said.
Mr Tan said HDB should reconsider pricing some of its new flats “in far-flung suburban locations such as Woodlands” by about $20,000 to $30,000 lower.
But Dennis Wee Group‚s vice-president Chris Koh expects prices to remain constant since HDB should have “factored in” the long recession and “priced accordingly.”
HDB will launch some 3,000 BTO flats in the first half of this year, mostly in Ponggol.
Out of these, 1,400 will be smaller studio apartments, two- and three-room flats. It will also continue to monitor demand in other towns.
Applications can be submitted online at www.hdb.gov.sg until March 11.
Source : Today - 27 Feb 2009
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