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December, 2011:

Three billion and change: A good year for collective property sales

Dec 27th, 2011
by Singapore Property Resources and Guides, HDB, Districts and Archived listings.
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The collective sales for 2011 so far have reached more than S$3 billion, according to statistics from Credo Real Estate. Showing combined sales of S$3.04 billion from 49 sites that were sold, the figures are far higher than those in previous years. 2010 saw S$1.77 billion in collective sales from 36 sites.


(Overall in 2011 the Singaporean property market has experienced relative success in comparison to the global market. Image courtesy of thinkstock.)

Of the 49 sites sold this year, 12 sold for more than $100 million, reaching a collective total of $1.71 billion. This figure accounts for 56% of the total sales. Credo Real Estate garnered a 31% share of this year’s sales.

The price of these 12 larger sites is in part due to their location in prime or mid-prime districts, said Credo’s head of research and consultancy. Speaking to the Straits Times, Ong Teck Hui explained that, “Some of the bigger developers have begun looking at such sites to avoid putting all their eggs in mass-market sites under the government land sales (GLS) programme.” Mr Ong also said that developers may choose en-bloc sites over GLS ones, as there is less severe competition.

Analysts expect next year’s sales to be lower than 2011’s. In part, this is due to intensive cooling measures, as well as world economic troubles. A new stamp duty, which affects developers who are unable to build and sell, all of their units within five years, leads Credo to believe that total sales next year will be around the S$2 billion mark.

Mr. Ong called this five-year rule a “one-size-fits-all requirement,” one that is impractical for large-scale sites, and worth reconsidering by the Government.

The luxury market in particular will find it hard to shrug off the government measures, says Ooi Yi Tung, a property analyst for Kim Eng. In a research note, he viewed the increased stamp duty as an obstacle to luxury home prices. “In our view, this poses a hurdle for the high-end segment, which sources land mainly from the en-bloc market and typically takes more than five years for redevelopment.”

Even so, data recently released by the Urban Redevelopment Authority shows the property market has done well despite rocky times last year. Their figures show that from January to November of 2011, developers sold 15,393 new homes. December’s figures will soon be announced, leading some to wonder if  2010’s record-breaking figure of 16,292 homes sold could be beaten.

New projects begin attracting buyers

Dec 22nd, 2011
by Singapore Property Resources and Guides, HDB, Districts and Archived listings.
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The introduction of additional buyer’s stamp duty on December 8 may have left some residential developers in a twist, but two new projects have already gone ahead with previews: The Hillier in the Hillview area and The Nautical in Sembawang, both 99-year leasehold projects.


(The Hillier is one of the two new properties that our successfully wooing local buyers despite an increase in buyer's stamp duty. Image courtesy of Far East Organization.)

More than 50 units have already been snapped up at The Nautical at an average price of about $860 per square foot since its preview opened last weekend.

In comparison, The Hillier has already sold 100 Soho-style apartments averaging $1,150 per square foot since its preview began last Friday. Buyers for both residences have mostly been Singaporeans, according to The Business Times.

Inspired by New York City’s trendy Soho district, units in The Hillier—528 Soho apartments in total—range from 500 square feet to over 800 square feet. It is part of developers Far East Organization’s new brand that offers “strategic locale, excellent connectivity and flexible space”.

The Hillier will be located near the upcoming Hillview MRT Station on the Downtown Line and will house a two-storey retail and lifestyle podium, dubbed hillV2. About 60% of the 55,500 square foot hillV2 will be filled with F&B outlets, including famous New York grocer Dean & Deluca. It is expected to be completed by the end of 2013.

Despite the new cooling measures, SLP International managing director Peter Ow is bullish on The Hiller, calling the sales so far “good” given the current lacklustre buying mood. “The attractions are the project’s commercial component as well as the proximity to Hillview MRT Station,” he told The Business Times.

The government recently implemented a 3% increase in the buyer’s stamp duty that Singaporeans will have to pay when they buy their third and subsequent homes.

On the other hand, The Nautical, which will have 435 aparments, comprises one, two, three and four-bedroom units and penthouses. Prices range from about $409,000 for a 420 square foot one-bedder to $1.5 million to a 1,916 square foot penthouse. Developers Hao Yuan Investment is still deciding when to hold an official launch of the project, The Business Times reports.

These two new properties herald a surge in the number of private homes hitting the market this year, the highest in the decade analysts told The Star.

Experts told the paper that 18,300 new homes could be released this year, easily surpassing the 16,500 last year.

“Some developers have managed to expedite the sales preparation process and shorten the period from a typical timeline of between nine and 12 months to between six and nine months,” director of research and advisory at Colliers International Chia Siew Chuin told The Star.

Clarifying the role of the real estate agent

Dec 20th, 2011
by Singapore Property Resources and Guides, HDB, Districts and Archived listings.
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For first-time or inexperienced homebuyers, searching for a new place can be a minefield of complications. While estate agents can help simplify the process, sometimes dealing with an agent can in itself be a complex matter. As such, the Council for Estate Agencies (CEA) has released an online document detailing helpful information on the process.


(Estate agents have often come under scrutiny for the profession, however the CEA are taking steps to eradicate this perceived negative stereotype.)

The online guide expounds on some of the rules and regulations that govern real estate agents’ behaviour. As such, it can highlight some facets for buyers to look out for, or clarify any misunderstandings a buyer may have. For example, one of the points explains that an estate agent should only represent one client at a time, and not concurrently represent both the buyer and a seller in a property deal, as this constitutes a conflict of interest.

To view the full guide, simply head to www.cea.gov.sg, hover on the consumer tab, and click on Consumer Resource, where you can then read the document “Consumer Tips for Engaging a Real Estate Salesperson”.  

Set up in 2010, the CEA was created due to a surge in consumer dissatisfaction. There had been a rise in the number of property agents who were conducting business in unclear and unprofessional ways, leading to many complaints from buyers who felt taken advantage of. Actions such as referring their clients to moneylenders, for example, were in direct contradiction to the rules.     

Some of the statements may seem obvious, but by spelling out the entire landscape of dealing with agents, the CEA will be able to help consumers know where they stand.

For example, one statement reads: “In any property transaction, you can choose not to be represented by any Estate Agent or Salesperson. The Estate Agent or Salesperson should not insist that you engage them or another Estate Agent or Salesperson.”

In an attempt to have a clearer oversight of property agent behaviour, the CEA has tightened some regulations. A rule set in place at the beginning of this year, for example, now means that all property agents must register with the CEA. Similarly, consumers can search public records for a specific property agent, which details whether any disciplinary action has been taken against them.

The guide also supplies contact details by which homebuyers can submit complaints. As of now, 1,400 complaints have been received. The most common grumble? Poor service and deceptive information.

Other information in the document includes samples of Estate Agent Cards, so that buyers can identify a registered agent, as well as a detailed explanation of how a salesperson’s commission works.

Property Prices may plunge

Dec 18th, 2011
by Singapore Property Resources and Guides, HDB, Districts and Archived listings.
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Property prices may plunge up to 30% over the next three years as a result of the Government’s new cooling measures, according to analysts.


(The Singapore property market has seen multiple predictions of growth slowing this year. Image courtesy of thinkstock.)

Standard Chartered analysts supplied the grim outlook, attributing the nosedive to slower population growth and the many new private homes expected to crop up in the next few years.

The new rules apply mainly to foreign buyers, who now will have to pay a stamp duty of 10% in addition to the existing buyer’s stamp duty of about 3%.

The rules will only affect Singaporeans who already have two residential properties; an extra 3% on subsequent home purchases will be exacted.

“This announcement is a negative surprise for the market,” the StanChart analysts said in a report. “It is also the first time since 1996 that the Government has imposed stricter residential market measures on foreigners and permanent residents.”

In addition, they expect sales volumes to fall 20% in the first quarter of 2012.

Other analysts were as bearish about the impact of the new policy. Calling these measures a “bazooka”, CIMB Research analysts forecast a 15% to 20% slide in property prices next year.

Analysts from OCBC Investment Research and UOB Kay Hian concur with the view. The former is expecting a 10% to 20% weakening of private home prices within the next two years while the latter believes the drop to be 10% to 15% over the next year.

Similarly, PropNex chief executive Mohamad Ismail told The Straits Times the new rules will pose “a major psychological setback” for the market.

“This increase in stamp duty, which can amount to $124,600 from an original $24,600 for a $1 million home, is going to dampen the interest in private property investment in Singapore,” Ismail was quoted as saying.

Private home properties in the higher end of the market, including those in Orchard and Newton, will be the hardest hit. This is because foreign buyers and permanent residents account for nearly half of the sales in these areas, according to Goldman Sachs analysts.

Ismail predicts sales for these properties will likely dive by 40%, while their prices will fall by 15% to 20% within the next six months. In comparison, Ismail expects prices of the mass-market segment to dip 10% to 15%.

To add more cause for concern, Goldman Sachs analysts anticipate a “state of paralysis” for the residential property market. They presage demand to tumble as foreign buying, job creation and credit availability—all important drivers of demand—experience a decline.

“While credit is relatively cheap, it is not as readily available, with banks more conservative on valuations and equity term loans,” they added.

Property prices may plunge 30%, analysts say

Dec 18th, 2011
by Singapore Property Resources and Guides, HDB, Districts and Archived listings.
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Property prices may plunge up to 30% over the next three years as a result of the Government’s new cooling measures, according to analysts.


(The Singapore property market has seen multiple predictions of growth slowing this year. Image courtesy of thinkstock.)

Standard Chartered analysts supplied the grim outlook, attributing the nosedive to slower population growth and the many new private homes expected to crop up in the next few years.

The new rules apply mainly to foreign buyers, who now will have to pay a stamp duty of 10% in addition to the existing buyer’s stamp duty of about 3%.

The rules will only affect Singaporeans who already have two residential properties; an extra 3% on subsequent home purchases will be exacted.

“This announcement is a negative surprise for the market,” the StanChart analysts said in a report. “It is also the first time since 1996 that the Government has imposed stricter residential market measures on foreigners and permanent residents.”

In addition, they expect sales volumes to fall 20% in the first quarter of 2012.

Other analysts were as bearish about the impact of the new policy. Calling these measures a “bazooka”, CIMB Research analysts forecast a 15% to 20% slide in property prices next year.

Analysts from OCBC Investment Research and UOB Kay Hian concur with the view. The former is expecting a 10% to 20% weakening of private home prices within the next two years while the latter believes the drop to be 10% to 15% over the next year.

Similarly, PropNex chief executive Mohamad Ismail told The Straits Times the new rules will pose “a major psychological setback” for the market.

“This increase in stamp duty, which can amount to $124,600 from an original $24,600 for a $1 million home, is going to dampen the interest in private property investment in Singapore,” Ismail was quoted as saying.

Private home properties in the higher end of the market, including those in Orchard and Newton, will be the hardest hit. This is because foreign buyers and permanent residents account for nearly half of the sales in these areas, according to Goldman Sachs analysts.

Ismail predicts sales for these properties will likely dive by 40%, while their prices will fall by 15% to 20% within the next six months. In comparison, Ismail expects prices of the mass-market segment to dip 10% to 15%.

To add more cause for concern, Goldman Sachs analysts anticipate a “state of paralysis” for the residential property market. They presage demand to tumble as foreign buying, job creation and credit availability—all important drivers of demand—experience a decline.

“While credit is relatively cheap, it is not as readily available, with banks more conservative on valuations and equity term loans,” they added.

iProperty.com.sg Site Search Nov 2011 – Top 10 Most Searched Districts and HDB Estates

Dec 15th, 2011
by Singapore Property Resources and Guides, HDB, Districts and Archived listings.
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November to December 2011 has been an eventful month for the Singapore property market - increase in HDB property taxes, Additional Buyer's Stamp Duty (ABSD) - just to name a couple of important ones.

Though we may not be able to make changes to the above, we can certainly arm you with relevant information and help you make better property decisions when buying, selling or renting your home. This is exactly what iProperty.com Singapore Monthly Site Search Report is aimed at doing.

And what's great from this report? We've upgraded it by including the average PSF prices of the Top 10 Most Searched Districts, and the median resale prices and average PSF prices (all room types) of the Top 10 Most Searched HDB Estates. We hope you enjoy this report, and that it helps you make better property buying or selling decisions.

Top 10 Most Searched Districts – Nov 2011

In the month of November 2011, there were 1,662 private properties (landed and non-landed) transacted  - a 48.8% drop compared to November 2010, and a 35.0% drop compared to last month. The overall average PSF prices of private properties increased by 4.40% to S$1,116 from October's S$1,069. This is also a decrease of 1.50% from November 2010.

The hottest district is once again District 19. For 2 consecutive months, District 19 overtook District 15. Is this an indication that the lower prices are attracting more buyers?

District 1, District 11 and District 16 dropped out of the chart, with the new entry of District 12, District 20 and District 22 in the Top 10 Most Searched Districts in Singapore.

(As cavaets may not be fully lodged at URA, the numbers above may change. Data is accurate as of December 16, 2011.)

Top 10 Most Searched HDB Estates – Nov 2011

The top 10 Most Searched HDB Estates saw the usual suspects - Bedok, Bishan, Tampines, Ang Mo Kio, Serangoon, Punggol, Woodlands and Clementi remained much sought-after areas to live in for HDB dwellers. Out of these, we can easily gather the popularity of mature estates when it comes looking for a HDB flat. Proximity to schools, MRT and amenities like market and heartland malls remain top considerations for property buyers.

There were 1,735 resale HDB flats transacted in November 2011. The average PSF prices for resale HDB have been steadily increasing in the year, reaching an average of S$430 psf for all HDB types in November 2011.

HDB also released 4,200 new HDB flats in November 2011. There will be 25,000 more new flats scheduled to be released in 2012.

*Source: URA, HDB, StreetSine Property Analytics
*Data accurate as of December 16, 2011

Harshest attempt yet at cooling Singapore’s property market?

Dec 13th, 2011
by Singapore Property Resources and Guides, HDB, Districts and Archived listings.
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With new buyer’s stamp duty measures being introduced, how will this affect the fledgling property market and property investment?


(Another slew of measures have been introduced by Singapore's government to cool the property market after earlier moves failed to mull and dent prices.)

Some three to 10 percent of Singaporeans, permanent residents, and foreigners will be paying an Additional Buyers’ Stamp Duty (ABSD) effective from last Thursday, December 8.

The ABSD’s objective is to moderate investment demand for private residential property and play a significant shift in promoting a more stable and sustainable market.

Many analysts say these heavier stamp duties may dampen Singapore’s repute as a globally renowned and recognised property investment destination, and in turn, give rivals such as Hong Kong a boost.

British-based consultancy Black Brick Property Solutions, said it has received inquiries from foreign investors, both from Asia and elsewhere, who had been thinking of investing in Singapore but were deterred by the new tax rules.

The announcement comes as residential property prices continue to rise in Singapore, reaching 13 per cent above the peak in 1996 and 16 percent above a more recent peak in 2008, and the government struggles to control a runaway housing mark. Permanent Residents owning one and buying second and subsequent properties will pay 3 per cent ABSD.

Singaporeans owning two and buying third and subsequent residential properties will pay three per cent Additional Buyer's Stamp Duty.

The ABSD will be imposed over and above the current Buyer's Stamp Duty, which are one per cent on the first $180,000 of purchase consideration or market value of the property (whichever is higher), two per cent on the next $180,000 and three per cent for the remainder.

The goal of the ABSD is”to promote a sustainable residential property market where prices move in line with economic fundamentals,” the Ministry of National Development said in a statement.
“Given the uncertainty in stock markets and with interest rates remaining low, private property in Singapore continues to attract investors, local and foreign,” the Ministry said. Excessive investment demand will however make the property cycle more volatile, and thus increase the risks to our economy and banking system.”

Minister for National Development Khaw Boon Wan said to TODAY: "We are ramping up the supply of new Executive Condominium units through the Government Land Sales Programme.

“This will help higher-income Singaporeans own private condominium units in an affordable way, as the sale of new EC units is restricted to Singaporean households only.’’

This is the government’s harshest attempt yet at cooling the housing market. Purchases by foreigners, who accounted for 19 per cent of private residential purchases in the second half of 2011, up from only seven per cent in the first half of 2009, will pay a 10 per cent ABSD. Corporations will also be subject to that rate. Permanent residents already owning one residential property and Singaporeans already owning two residential properties will be subject to a three per cent ABSD.
 “It probably wouldn’t have an effect in the short-term, because the property market prices are still rising, people are still speculating,” one Singaporean told Channel News Asia. On the other hand, an Indian living in Singapore told Channel NewsAsia, “I know there is a stamp duty, but any increase in that will probably take it out of my level where I want to buy.”

Harshest attempt yet at cooling Singapore’s property market?

Dec 13th, 2011
by Singapore Property Resources and Guides, HDB, Districts and Archived listings.
Comments are off for this post
With new buyer’s stamp duty measures being introduced, how will this affect the fledgling property market and property investment?


(Another slew of measures have been introduced by Singapore's government to cool the property market after earlier moves failed to mull and dent prices.)

Some three to 10 percent of Singaporeans, permanent residents, and foreigners will be paying an Additional Buyers’ Stamp Duty (ABSD) effective from last Thursday, December 8.

The ABSD’s objective is to moderate investment demand for private residential property and play a significant shift in promoting a more stable and sustainable market.

Many analysts say these heavier stamp duties may dampen Singapore’s repute as a globally renowned and recognised property investment destination, and in turn, give rivals such as Hong Kong a boost.

British-based consultancy Black Brick Property Solutions, said it has received inquiries from foreign investors, both from Asia and elsewhere, who had been thinking of investing in Singapore but were deterred by the new tax rules.

The announcement comes as residential property prices continue to rise in Singapore, reaching 13 per cent above the peak in 1996 and 16 percent above a more recent peak in 2008, and the government struggles to control a runaway housing mark. Permanent Residents owning one and buying second and subsequent properties will pay 3 per cent ABSD.

Singaporeans owning two and buying third and subsequent residential properties will pay three per cent Additional Buyer's Stamp Duty.

The ABSD will be imposed over and above the current Buyer's Stamp Duty, which are one per cent on the first $180,000 of purchase consideration or market value of the property (whichever is higher), two per cent on the next $180,000 and three per cent for the remainder.

The goal of the ABSD is”to promote a sustainable residential property market where prices move in line with economic fundamentals,” the Ministry of National Development said in a statement.
“Given the uncertainty in stock markets and with interest rates remaining low, private property in Singapore continues to attract investors, local and foreign,” the Ministry said. Excessive investment demand will however make the property cycle more volatile, and thus increase the risks to our economy and banking system.”

Minister for National Development Khaw Boon Wan said to TODAY: "We are ramping up the supply of new Executive Condominium units through the Government Land Sales Programme.

“This will help higher-income Singaporeans own private condominium units in an affordable way, as the sale of new EC units is restricted to Singaporean households only.’’

This is the government’s harshest attempt yet at cooling the housing market. Purchases by foreigners, who accounted for 19 per cent of private residential purchases in the second half of 2011, up from only seven per cent in the first half of 2009, will pay a 10 per cent ABSD. Corporations will also be subject to that rate. Permanent residents already owning one residential property and Singaporeans already owning two residential properties will be subject to a three per cent ABSD.
 “It probably wouldn’t have an effect in the short-term, because the property market prices are still rising, people are still speculating,” one Singaporean told Channel News Asia. On the other hand, an Indian living in Singapore told Channel NewsAsia, “I know there is a stamp duty, but any increase in that will probably take it out of my level where I want to buy.”

Experts worry about the future of property prices

Dec 11th, 2011
by Singapore Property Resources and Guides, HDB, Districts and Archived listings.
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The government faced an onslaught of criticism and pessimistic predictions from analysts, regarding the latest property market cooling measures rolled out on last Wednesday.


(Analysts say Singapore property prices could slide by up to 30% in the next year because of the government's latest actions. Image courtesy of thinkstock.)

Experts claimed prices could plummet by as much as 30% next year, and likened this situation to the global financial crisis in 2008 and 2009, when home prices sunk by 25% over 12 months.

Their warnings came in a series of reports taking stock of the cooling measures, one of which being an unprecedented additional 10% buyer’s stamp duty on foreigners purchasing any property in Singapore.

Analysts from CIMB Research called the government’s sudden move a “bazooka” that could hurt overall property prices by 15-20% over the next 12 months. Goldman Sachs analysts predicted a “state of paralysis” and for private home prices to slide 15% in the coming 18 months.

Last week Standard Chartered Bank forecasted prices falling by 30% over the next three years. With the new measures in place, it now expects the same drop to occur within one year.

Developers told The Straits Times they were caught off-guard by the announcement and are reviewing action plans. Said a City Developments spokesperson, “The measures will have a dampening effect in the short term so we will have to re-assess the market situation and, if necessary, tweak our strategy.”

One unnamed developer also warned that the frequent policy changes do not reflect well on the country as an investment destination. It criticised, “If the Government wants to target foreign buyers, then it should also look at the entire spectrum and specifically the increasing presence of foreign developers here who are driving up land prices.”

UBS analysts suspect developers may soon offer partial absorptions or rebates of the extra 10% stamp duty to retain buyers, and that launches will be delayed so developers can “[build] up a critical mass of buyer interest before having the confidence to launch a project”.

Industry insiders expect transaction volumes and prices of the high-end segment—which sees the largest percentage of foreign buyers—to be more severely affected than the mass-market segment. In particular, sales of private houses in the core central region (including Orchard Road and Newton) could fall 40%, said PropNex chief executive Mohamed Ismail to The Straits Times.

Still, analysts said they suspect the mass-market segment not to go unscathed despite the lower foreign buyer make-up, as local buyers anticipate lower prices and hold back on purchases in wait of a better deal. Ismail said he expects mass-market prices to slide 10-15% within the next six months.

“I would expect transaction volume to fall within the next 30 days as buyers hold back,” commented Jones Lang LaSalle South-east Asia research head Dr Chua Yang Liang. “If prices ease, buyers might return but this is also conditional on whether the economy improves.”

In response, National Development Minister Khaw Boon Wan assured in a blog post yesterday that the measures “will further strengthen, stabilise and sustain our property market”.

Property investor, meanwhile, struggled to accept the news. One such investor is a 32-year old civil servant known as Mr Lim, who told The Straits Times of the $1 million Bedok Residences two-bedroom unit he purchased just weeks ago. “Originally I wanted to hold on to the investment for four to five years, now it looks like I need to have longer staying power.”

What You Need to Know to Pick the Right BTO Flat for You

Dec 8th, 2011
by Singapore Property Resources and Guides, HDB, Districts and Archived listings.
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There are a certain number of dates that young couples and newlyweds eagerly look forward to each year – the announcements of the launch of BTO (Build-To-Order) flats released by HDB, offering new Singaporean couples a chance to buy a subsidized first home. If you and your significant other have already taken the first step toward a future by applying for a BTO flat – Congratulations! While you may still be enjoying your honeymoon period, it can be easy to get caught up with the excitement of buying your first home. However, a property purchase is still one of the most important financial decisions you will make together as a couple, and it would be wise to bear in mind several important factors before leaping in:

1. It will Take Up to 5 Years For Your Flat to Be Completed

While high-rise buildings seem to rapidly mushroom out of thin air in Singapore’s ever-changing skyline, young couples should remember that residential construction is a process that still takes a long time, and they should be prepared to wait up to 5 years before TOP (time of project completion), until the keys are ready for collection. With shifting demographic trends and more cases of Singaporeans choosing to marry in their late 20s and early 30s, couples, particularly those looking to start a family soon, may find that they may have to rent in the meantime. Although buying a resale flat to live in may also be an option, sellers are still subject to the minimum 5 year MOP (minimum occupancy period), which may be a problem as BTO flats may sometimes be completed ahead of schedule and may be ready for move-in in as soon as 4 years or earlier.

2. You Have to Live in Your Flat for At Least 5 Years

As with resale flats, BTO flats are also subject to the minimum MOP period of 5 years. Add this to the waiting period for completion and you are “stuck” with your flat, for better worse, for up to 10 years. While you and your partner’s life may seem stable at this point in time, we all know life can change when we least expect it.

If you do end up having to change your living arrangements, HDB allows flat owners to rent out bedrooms (not the whole flat) within the MOP period if you own a 3-room or bigger flat, with no prior approval from HDB required. In cases of divorce, HDB's prevailing policy will allow the divorced party who has the custody of the child to retain the flat, subject to their eligibility conditions.

3. You Lose Your “1st Timer” Preferred Status after 2 Tries

Regardless of how many times you have applied - If you were invited by HDB to select a flat twice, but for whatever reason chose not to, you will lose your preferred status and will be moved to the end of the queue, to compete on a level-playing field with other 2nd time flat applicants.
While this was a critical concern in earlier years when HDB released fewer units under former Minister for National Development Mah Bow Tan, the 50,000 new flats announced this year by the new National Development Minister Khaw Boon Wan means there will be ample supply of BTO flats coming up. New couples may decide that despite the worse odds, it might still work out better for them in the long-run to keep balloting over and over again until they get a preferable queue number. After all, while it only costs $10 to apply, buying that BTO HDB flat would mean signing up for a 30-year mortgage financial commitment, so couples might be forgiven for only wanting to sign on the dotted line for a flat they really like.

4. The Price You See is Not the Price You Pay

Although HDB releases a list with information on the respective sale prices of each unit to successful applicants, buyers should note that additional costs such as buyer stamp duty, legal conveyance fees, moving and renovation costs can make the final price more than 20% higher. While HDB allows Singaporeans a HDB concessionary loans at a 90% loan quantum, with an interest rate pegged at 0.1% above the CPF rate, not all may qualify. The remaining option is to apply for a private bank loan, but under this option the maximum loan amount is capped at 80%, meaning the buyer has to fork out more out-of-pocket cash - which young couples out in the working world for just a few years may find hard to do.

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