January, 2011:

With homes for Singaporeans still a massive issue for the PAP government, HDB has announced that three new BTO developments are to be launched with an estimated Delivery Possession Date of 2015. HDB also announced that 95 percent of the units, excluding studio apartments, will be reserved for first-time households.


(Orchard Spring in Yishun, estimated completion date: 4Q 2014. Image courtesy of HDB.)

Two of the three are located in the northern suburb of Yishun: Orchard Spring and Vista Spring , while Golden Daisy is to be built in Bukit Batok. Vista Spring and Orchard Spring should both be liveable by August 2015 to and November 2015 respectively, while Golden Daisy is estimated to be ready in March of the same year.

In total there are 1,728 flats due to be completed in around three to four year’s time. The Yishun developments especially should attract huge interest, as Yishun is both considerably closer to the centre than previous BTO developments, and a much more developed area to boot.

What is BTO?
Build To Order (BTO) is a HDB flat allocation system that offers buyers purchasing new HDB flats flexibility in timing and location. Eligible buyers can apply for flats in their preferred location from specific sites launched. When there is 65-70% take up, tender for construction will be called. If there is insufficient take up, the project will be shelved.
Most BTO-scheme developments are completed in around four years.

Orchard Spring

Orchard Spring, located along Yishun Avenue 11, covers both families, young couples and other first time buyers with the 948-unit development broken down into 2-, 3- and 4-bedroom units, or which there 192, 252, and 504 respectively. There will also be a childcare centre attached to the facility.

Vista Springs

Nearby Orchard Spring is the other Yishun development: Vista Spring. Vista Spring offers 324 4-bedroom and 276 5-bedroom units, and is obviously aimed more at the ‘families with children’ market. Located at the junction of Yishun Avenue 1 and Yishun Street 41 and close to the Lower Seletar Reservoir, Vista Springs will also provide facilities including a food centre, shops, a mini-supermarket and a residents’ committee centre.

Golden Daisy

A development consisting of 180 studio apartments, Golden Daisy is a BTO developed especially for those aged 55 and above. Given the relative unpopularity of HDB studio apartments it is unlikely to be oversubscribed, although its proximity to the centre of Bukit Batok and its MRT station, may attract interest.

Prices

Prices remain pretty standard for BTO developments, given the size psm and location of all three developments.

For more information, please see this page on the HDB website. Apply online for your choice of development by 7 Feb 2011.

All images courtesy of HDB.

In an effort to maintain a stable and sustainable property market the PAP government has introduced a new raft of measures. iProperty.com Singapore identifies the two that will affect you the most.



Seller’s Stamp Duty (SSD)
[The amount you must pay if you sell your property within a certain time period.]
The SSD has been raised from current three years to four years. You will now pay an SSD of 16%, 12%, 8% and 4% for residential properties which are bought on or after 14 January 2011, and are sold in the first, second, third and fourth year of purchase respectively.

Loan to Value (LTV)
[The amount a bank is able to loan you based on the value of a property you already own]
The LTV limit has been lowered from 70% to 60% for property purchasers who are individuals with one or more outstanding housing loans. If a corporation is purchasing a property, the LTV limit has been lowered to 50%.

Anti-Speculative, but Aspirational Home Owners Hit Too
Burgeoning house prices generally reflect a growing economy and GDP, something the Singapore government obviously wants to encourage. They do also though remain acutely aware that – even with previous property market moderation measures – the combination of low interest rates and a lot of money washing around in the marketplace, property prices could rise beyond sustainable levels for the average Singaporean.

The measures introduced are – especially when interest rates do eventually rise – designed to help prevent purchasers from overextending themselves financially. The raising of the SSD, for example, is aimed at putting off investors looking to make short-term gains – as SSD is payable regardless whether the property is eventually sold at a gain or loss. Notably, the SSD hike is squarely aimed at the private property market, as the required Minimum Occupation Period for HDB flats is five years.

Likewise, the reduction in LTV is aimed at property speculators – although this does raise questions about the PAP’s previously expressed sentiments about property ownership being a key component in Singaporean’s creating wealth for themselves – as it reduces the amount of money one can leverage on an existing property to purchase a new one. While borrowers who can show evidence that they have sold their existing properties will not be subject to the lower LTV limit when they buy a new property, it could be argued this would only benefit the super-rich, as most home owners would expect to take a loan on their current home before purchasing the next.

First-time homebuyers are, obviously, not affected by the new measure. However, those taking a second concessionary HDB loan must use the CPF refund and 50% of the cash proceeds from the sale of their previous flat before they are granted an HDB loan. This measure is a continuance of the PAP’s policy to try and ensure that eligible buyers, especially first-time buyers, purchase public housing in a financially prudent manner.

If you’re reading this chances are that you either already have a family, or are planning to start one. What then is important for you? iProperty.com Singapore and Daniel Lee take you through the key things to consider when looking at a family home.


(Image courtesy of Singapore Tourism Board.)

The Home
A family is nearly always defined by its children, hence the phrase “Starting a family”. Given that, initially at least, one parent will usually stay at home to take care of the new borns, you want and need a home that is comfortable for parent and child to spend the majority of their time in.
Air conditioning obviously is a must, while a good kitchen – complete with hobs, oven and microwave is essential for anyone who plans on making home-cooked meals.

The Environment and Facilities
If you’re staying in a condominium then considering if it is child friendly – does it have a ‘kiddy’ pool, play area, and green area, for example? – is important. For those staying in a HDB flat would need to consider the flats proximity to nearby conveniences – groceries and supermarkets, medical centres, and kindergartens, are all very important to have nearby, preferably within walking distance.

Accessibility
As anyone who has ever struggled with a pram on a crowded MRT train can attest, having a car becomes a much more important asset for families with children. Connectivity to major roads is a plus point in a property, but having an MRT within walking distance is a massive bonus. By far the fastest and most efficient form of public transport, an MRT station near a property is guaranteed to increase its value.
Proximity to a bus interchange or particularly busy bus route is also an asset, but buses – particularly along busy arteries, such as Bukit Timah Road or around the city centre, tend to get snarled in traffic.

Education
One reason why the Upper Bukit Timah area is so expensive – aside from the obvious attraction of living close to the greenery of the nature reserve – is the proximity to some of Singapore’s top schools. Similarly, the opening of the Australian and Singapore American schools in Serangoon and Woodlands respectively instantly made both areas, particularly Sernagoon, which is undergoing something of a facelift, a popular destination for families.


Family-Friendly Condominium
Singapore Condo, one of Singapore’s foremost authorities on property investment and Singapore prime districts, offer their view on a value for money, and family friendly condominium. To find out more, please visit www.singaporecondo.com.

http://www.iproperty.com.sg/singaporecondominiums/condominium.aspx?condo=Park_Infinia_At_Wee_Nam
Located at Lincoln Road (District 11), the freehold Park Infinia
has a combined total of 486 units. Families can choose between three to four-bedroom apartments, averaging between 1335 square feet (sqf) to 1582 sqf, and 1668 sqf to 2002 sqf respectively.
Prices for 3-bedroom units range from SGD$1,551 psf to S$1,830 psf, while 4-bedrooms average between S$1,690 psf to S$2,002 psf.

Park Infinia is less than 10 minutes from Newton MRT station, around 15 minutes to Novena MRT station, and a mere five minutes to Newton Circus Food Center
There are also many schools nearby schools including Saint Joseph’s Institution, the Anglo-Chinese School, Saint Margaret’s Primary School, Anglo- Chinese School, Raffles Girls’ Secondary School, CHIJ  Toa Payoh, LASALLE College of the Arts, and Nayang Academy of Fine Arts, amongst others.

In Singapore, property and real estate are more than just bricks and mortar: it’s a lifestyle. The country has one of the highest owner-occupier rates in the world (And I know that technically a 99-year lease from HDB doesn’t mean that you own the property, but it’s close enough); the Prime Minister devotes most of his public address to talking about anti-speculative measures designed to fend off a property bubble, and Singapore real estate remains amongst the region’s most coveted.



Given the finite land space, rising population, influx of cash-rich foreigners, it’s unsurprising that you will have questions and Singapore’s leading property website iProperty.com Singapore is here to help you.

Regular visitors to iProperty.com Singapore will be familiar with  ‘Ask the iExpert’ – the best and fastest way to get up-to-date, comprehensive answers to your property needs. Now, we’re rounding up some of the most recent questions, read on for some common queries about Singapore property answered by Singapore’s best real estate professionals.

Which new development should I invest in?
Firstly, the Singapore property market is hitting record highs at present, so, unless you have to, now is not the best time to buy – although conversely, it’s an excellent time to sell.
If you’ve got dollars burning a hole in your pocket though, its not new news, but districts 9, 10 and 11 (Orchard and surrounding areas, including Balmoral, Newton, Tanglin and Holland) always represent good value. Some developments that have seen high occupancy rates since launching include Cube 8, within walking distance to Toh Payoh MRT; Holland Residences in the always coveted Holland district; and http://www.iproperty.com.sg/singaporecondominiums/condominium.aspx?bid=5055, with interiors designed by uber-designer Philippe Starck. All of these have proven to be extremely popular with home buyers.

Should I rent or purchase a property near an under-construction MRT station?
There has been increased interest in properties near those Circle Line MRT stations that are still under construction. History has shown that properties – both condominium and HDB near MRT stations appreciate in value – so purchasing now, whether it is near a Downtown or Circle Line station should (almost certainly) guarantee a return on your investment.

While some unscrupulous property agents are already advertising properties as close to as yet uncompleted MRT stations, signing a lease near one will mean you have to put up with one or two-year’s construction work on your doorstep for, at best, a slightly lower rental rate.


Don’t forget, if you have a property question, post it in the comments below, or Ask the iExpert at iProperty.com Singapore. The best questions will be published here next week.

Property upgraders and those purchasing a second home, face an uphill financial battle, warns Adam Tan.


(Buying a second property now requires more time and a greater financial outlay. Image courtesy of Singapore Tourism Board.)

The anti-speculation measures of 2010 have made it clear that HDB flats are not to be used for investment purposes. If you wish to use property as an investment, private property or realizing capital appreciation when you upgrade your HDB flat are your options.

Consider a scenario where you are buying a new, second property for investment or your own occupation, while still servicing a mortgage. This means, you would be moving house while still paying off your current housing loan.

Potential second property purchasers will now find that the minimum cash deposit has now been raised from 5% to 10%, while the Loan-To-Value (LTV) ratio – the amount you can borrow based on the value of your current property – has now been lowered from 80% to 70%.

For a million-dollar property, you’re now going to need S$100,000 in cash and a further $200,000 in CPF monies for the down payment. Before the new measures, it was $50,000 and $150,000 respectively. Any shortfall in CPF monies will also have to be made up for in cash.

Compare that to the $50,000 cash you were paying prior to the new measures, and factor in the probability that your CPF was probably used to offset your first mortgage, it leaves you shouldering most of the second property’s down payment in cash, and suddenly you’re looking at a potential $300,000 cash outlay.

Of course, it’s still possible to get an 80% bank loan. You just need a document from your first mortgagee bank that states your outstanding loan will be discharged upon the sale’s completion, the IRAS certificate that proves your buyer paid stamp duty, and the signed Sale & Purchase Agreement (Private Property) or Approval Letter (HDB).

If you want to get that 80% bank loan, you now have to wait even longer before you exercise the option on your new property. For private property owners, you have to wait an extra five weeks for your buyer to exercise the option, pay the stamp duty and for you to get a copy of that stamp duty. But at least you can privately arrange to stay for that extra five weeks till you buy your new place.

For HDB upgraders, and with most of Singapore living in HDB flats, this would be the majority, having to use the Approval Letter to get an 80% bank loan now means they only have six weeks till the completion date when they have to hand over vacant possession of the flat. That means they cannot ask for an extension of stay. They cannot rent the flat since the new tenant has to fulfill a five-year MOP. The only option available is to rent for the two or three months it will take to get their new flat. Hopefully, the HDB and MAS will iron out this ruling, maybe accepting the Exercise of the Option for 80% for the new bank loan. Otherwise, many HDB upgraders will be caught in limbo for a couple of months when selling their flat.

First-timers meanwhile can look forward though to more reasonable HDB flat prices in the next few years as the supply of new flats increases. While most people can still use property as investment, speculators should be far more cautious. Quick turnovers are a thing of the past, as you will now have to wait for three or five years to be up before upgrading, depending on whether you stay in private or public housing.

Most cultures have a belief in lucky or unlucky numbers – but when it impacts on your choice of house, or the price of property, has the numbers game gone too far?


(Image courtesy of Singapore Tourism Board)

In Chinese culture, most of the prime numbers have associations with them, but by far the most well known are numbers four and eight.

Fateful Number Four
Number 4 (四, sì in pinyin) is considered to be unlucky because it is a homophone – it sounds like but has a different meaning – of the Mandarin word for death (死, sǐ in pinyin).

Auspicious Number Eight
Number 8 (八, bā in pinyin), on the other hand is considered to be a good or lucky number, because it sounds similar to the word for wealth or prosper (财, fā in pinyin). In the dialect of Cantonese, the word ‘eight’ sounds similar to the word for ‘fortune’: faat.

Unlucky Number Thirteen
In the Romanised world, the number 13 is considered unlucky, although there are conflicting theories where this belief came from, it is the only number to have its own phobia: Triskaidekaphobia – the fear of the number 13.

Counting the Cost
In countries or areas with a majority or large numbers of Chinese, belief in the power of numbers can even affect real estate. Hong Kong, probably one of the most superstitious cities in the world, some office and residential buildings miss out any floor with the number s‘4’ and ‘13’ in it, so that homes and offices are not tainted by association.

Belief in numerology is so prevalent that numbers can affect house prices, In Vancouver, Canada, the University of British Columbia reported that “in neighbourhoods where the percentage of ethnic Chinese residents exceeds the regional average of 18 per cent, the study found that houses with addresses ending in the lucky number eight sold at a 2.5 per cent premium, while those ending in the unlucky number four sold at a discount of 2.2 per cent.”  

One culture's superstitions, are an others' opportunity, and in Taipei, Taiwan, Thomas Northway, a British expatriate working in the hospitality sector was able to secure a large three-bedroom condominium apartment for 50% under the market rate. The address was 414 – there had been no Taiwanese takers for several months, scared off by the negative connotations, and the landlord was desperate for someone to rent.

Number Protection
If your house has some association with the number 8, then you are in luck, not only is it an auspicious sign for your home but mobile phones and license plates with multiples ‘8’s’ on them have sold for large amounts in China, and there’s every chance it will increase the property’s value.

Should your home have a number 4 or 13 in the address, then feng shui experts recommend drawing a circle around the house number – wherever it appears – in order to contain the negative energy. Some hardware stores even sell customised house number plates that are enclosed in a circle, so you don’t have to despoil the front of your house.