‘Ghost towns’ vs fever homes
HDB should aim for sweet spot in the supply of flats.
Read More

Agents fear price list will make home buyers take longer to decide
Some real estate agents are expecting slower home sales over the short term, if developers are required to publish property prices two days before they put up their units for sale.
Read More

Location, location, location to decisions, decisions, decisions (commentary by Cushman & Wakefield)
The common question asked by home buyers is no longer how expensive a property will be … instead (it is) what opportunities there are that can lead to a property’s growth potential.
Read More

Hoi Hup launches Questa@Dunman
The freehold property, which has a total of 122 units, comes in two blocks of 14 and 18 storeys.
Read More

Newton View fetches $147.6m in en bloc sale
Newton Lodge, Braddell Park and Coronation Grove also up for grabs
Read More

Writing on the wall – early list of home prices
Developers may have to disclose prices before launch
Read More

Sites at Jurong and Pasir Ris up for sale
The latest site has a maximum permissible gross floor area of 957,772 sq ft. It is at Boon Lay Way, next to Jurong East MRT station, and across the road from the upcoming Ng Teng Fong Hospital
Read More

Private home sales stay healthy
Feb sales breach 1,000 mark to hit 1,101; but more deals closed with discounts or peaks
Read More

3rd collective sale bid by Pearl Bank
280-unit site believed to be priced at $750m
Read More

Spotting the trends in commercial units
On the back of healthy growth and investor confidence, commercial deals will continue to be robust
Read More

Demand rises for high-specs space
The growing acceptance of such industrial space as alternative office premises should not be viewed as a threat to the office market
Read More

En bloc fever catching on again
Agents for mega-sites that tried and failed are more hopeful this time
Read More

Good-class bungalows fetching record prices
Cluny Road house goes for $2,038 psf: Leedon property fetches $61.4m
Read More

The property tax for non-owner-occupied residential properties as well as other properties will remain at a flat rate of 10% of AV.

As a result of the rate change, all owner-occupied homes will enjoy tax savings of $240 due to the exemption of the first $6,000 of AV. Owners of high-end properties will see increases in tax payable as follows:

WORKINGS OF THE NEXT TAX RATES

[1] REVISED PROPERTY TAX RATES

From January 2011, there will be a three-tier property tax rate for all home owners. The first $6,000 of ANNUAL VALUE (AV) will be exempted from property tax. The next $59,000 AV will be taxed at 4% and the balance of AV above $65,000 will be taxed at 6%.

The property tax for non-owner-occupied residential properties as well as other properties will remain at a flat rate of 10% of AV.

As a result of the rate change, all owner-occupied homes will enjoy tax savings of $240due to the exemption of the first $6,000 of AV.

[2] REVISED LOAN-TO-VALUE (LTV) RATIO

A home buyer will have to fork out more cash to buy a property with the latest change in the stamp duty rules. Besides, he will reap a smaller profit if he sells it within a year. Take, for example, a buyer who pays $1 million for a home before the rules changed and sold it in less than a year for $1.1million.

BEFORE THE NEW MEASURES
The buyer could enjoy LTV of 90% – so he could purchase the property with only $100,000 as a down-payment. By selling, he would have made a fast $100,000, less the stamp duty he paid when he bought the property – $24,600 under the stamp duty formula. That means he would pocket a profit of $75,400. [Return on capital: 75,400/100,000 = 75.4%]

AFTER THE NEW MEASURES
The buyer can only enjoy LTV of only 80% of the price which means a down-payment of $200,000. He would have made $100,000 minus his original buyers’ stamp duty ($24,600), and now minus an additional sellers’ stamp duty, of $27,600. This means a greatly reduced profit of $47,800. [Return on capital: 47,800/200,000 = 23.9%]

REVISED HDB POLICIES

On 5 March 2010, the Ministry of National Development introduced a series of measures to ensure financial prudence and to prevent ethnic enclaves in Singapore. This is hot on the heel of an earlier round of measures which saw the implementation of seller’s Stamp Duty for private properties sold within a year of its purchase; and the introduction of a three-tier property tax rate.

(A) In Support of an Inclusive and Cohesive Home

[A-1] EMPHASIS ON SINGAPORE CITIZENSHIP

• The amount of CPF Housing Grant is reduced by $10,000 for families with only one Singapore Citizen (SC) and at least one Singapore Permanent Resident (SPR)
• SPR can apply for a $10,000 Citizen Top-Up if they take up citizenship or if the couple has an SC child while still in ownership of the flat

[A-2] PREVENTING SPR ENCLAVES FROM FORMING

With the above objective in mind, the following policies have been introduced:

• A new SPR Quota for non-Malaysian SPR families buying resale flats
• SPR families cannot buy flats in areas that have exceeded the 8% (block) quota and 5% (Neighbourhood) quota except from non-Malaysian SPR sellers.
• The principle of SPR Quota is similar to Ethnic Integration Policy (EIP) – i.e. when the SPR quota is filled, SPR can only buy a flat from a non-Malaysian SPR

[A-3] RESPONDING TO CHANGING DEMOGRAPHICS

• For the Ethnic Integration Policy, the limits for the Indian/Others ethnic group have been increased by two percentage points to 12% at the Neighbourhood level and 15% at the Block level, in view of Singapore’s changing demographics
• See below for EIP table

The status of changes of ethnic proportions is updated on a monthly basis.

(B) Reinforcing of Owner-Occupation among HDB Flat Owners

• The Minimum Occupation Period (MOP) for resale of non-subsidised flats (i.e. resale flats bought without CPF Housing Grant) is increased to 3 years.
• The increase in MOP is regardless of whether the buyer takes an HDB loan, a bank loan or no loan at all.
• The revised MOP policy will apply to resale transactions where applications are received by HDB from 5 Mar 2010 onwards.
• Existing lessees of non-subsidised flats will not be affected, i.e. the original MOP of 2.5 or 1 year continues to apply to them.

(C) In Support of Right-sizing and Financial Prudence

• Second-timer households are no longer required to buy bigger flats to qualify for a second concessionary loan from HDB.
• The second concessionary loan will be made available to all eligible households regardless whether they upgrade, downsize or move to the same flat type
• HDB has reduced the amount of the second concessionary loan by the full CPF proceeds and part of the cash proceeds from the sale of the existing or immediate past HDB flats.
• Flat buyers can keep half of the cash proceeds (including the cash deposit received) or $25,000 in cash, whichever is greater.

[C-1] THOSE WHO BUY THE NEXT FLAT AFTER SELLING THE EXISTING ONE

• Must use up to 50% cash proceeds from the sale of the immediate past HDB flat and all CPF balance to finance the purchase of the next flat.
• This will apply regardless of when the previous HDB flat was sold

[C-2] THOSE WHO BUY THE NEXT FLAT BEFORE SELLING THE EXISTING ONE

• HDB will first grant them a bigger loan at commercial interest rates.
• After the sale of their existing flat, they will have to redeem this loan with the full CPF refund and part of the cash proceeds.
• Upon redemption, the loan will be converted to a concessionary rate loan

(D) Lease Buyback Scheme to Benefit More Elderly HDB Households

• To enable more lessees to benefit from the Lease Buyback Scheme, HDB has extended it to those owning 4-room and bigger flats.

Summary

• Increase the holding period for imposition of Seller’s Stamp Duty (SSD) from the current one year to three years.
• For property buyers who already have one or more outstanding housing loansat the time of the new housing purchase:
• Increase the minimum cash payment from 5% to 10% of the valuation limit; and
• Decrease the Loan-to-Value (LTV) limit for housing loans granted by financial institutions regulated by MAS to these buyers from the current 80% to 70%.
• Allow households earning between $8,000 and $10,000, to buy new DBSS flats with a $30,000 CPF Housing Grant;
• Increase the supply of new flats, Design, Build and Sell Scheme (DBSS) flats, and Executive Condominiums (EC);
• Shorten the completion time of Build-To-Order (BTO) flats;
• Increase the Minimum Occupation Period (MOP) for non-subsidisedflats to 5 years; and
• Disallow concurrent ownership of both HDB flats and private residential properties within the MOP.

Policy 1. Seller Stamp Duty payable within 3 years

For properties bought on or after 30 Aug 2010 (The date of exercising the option to purchase the property, or signing of the sale and purchase (S&P) agreement, whichever is earlier), Stamp duty is calculated as follows:

1% for the first $180,000, 2% for the next $180,000, 3% for the balance; or
If > 360,000, SSD = 3% X Purchase Price -$5400

Policy 2. If the Buyer is currently serving 1 or more housing loans

1.Minimum cash payment from 5% to 10% of the valuation limit
2.Loan limit is lowered from 80% to 70%

Policy 3. More Flats, ECs, DBSS and shorter BTO

1. First-timerhouseholds with monthly income of between $8,000 and $10,000 may buy an EC and DBSS with a CPF Housing Grant of $30,000.
2.Applicable to DBSS projects after 30 Aug 2010
3.Shorter BTO completion time –2 and half years

Policy 4. Buy HDB, Sell Private Property

No purchase of private property during HDB Flat Minimum Occupation Period (MOP) period

If the HDB unit is bought before 5 March 2010
Resale Flat bought in the open market (without CPF Housing Grant Scheme)

2½ years from effective date of resale if the owner takes a loan from HDB

or

1 year from the effective date of resale if :
A.the owner has not taken a loan from HDB; or
B.he has refinanced HDB market interest rate loan with the bank/financial institution; or
C.he has taken a loan from the bank/financial institution to finance the purchase; or
D.he has fully redeemed the market interest rate loan obtained from HDB. You may submit an e-Request on Confirmation on the Computation of Requisite Occupation Period for the purpose of resale.

If the HDB unit is bought between 5 March 2010 -29 August 2010
MOP Period is 3 years from effective date of resale, regardless of the type of loan taken by the owners or loan status

If the HDB unit is bought in or after 30 August 2010
MOP Period is 5 years from effective date of resale, regardless of the type of loan taken by the owners or loan status