New building guidelines take effect

A MINIMUM plot size requirement of 1,000 square metres and a guide on the maximum number of dwelling units (DUs) for non-landed residential estates were put into effect by the Urban Redevelopment Authority (URA) yesterday.

According to the new guidelines, the minimum plot size requirement for flat developments island- wide is now 1,000 sq m (about 10,763.9 sq ft), with the view to provide more space for landscaping and communal facilities.

In addition, for all breakaway proposals from existing landed housing for either flat or landed housing developments within non-safeguarded landed housing areas, the aggregate land area for the left-behind plots must also satisfy the minimum plot size.

The impact of this guideline will be felt particularly in the area of en bloc sales for landed housing.

Separately, a guide on the maximum number of DUs for flat and condominium developments within GPR (gross plot ratio) 1.4 residential estates was introduced.
The DU guide is also applicable to residential components of mixed-use developments, within GPR 1.4 residential estates, and other low-rise, low-density residential areas.

A more stringent formula was developed for areas such as Telok Kurau Estate, which has seen a rapid injection of a large number of units, resulting in significantly higher traffic volumes along the existing narrow local access roads, noted URA.

'If the number of units are being restricted, on average unit sizes will be larger. For developers looking to achieve the same per square foot pricing, you are looking at a higher total quantum that may or may not be supported by the market,' pointed out Ms Tang.

The guidelines will only take effect with respect to new applications, added Ms Tang, noting that any formal applications (excluding outline applications) submitted prior to Nov 24 which had been granted provisional permission or will result in provisional permission being granted will be evaluated under the old guidelines.
Kovan and Joo Chiat/Jalan Eunos estates were also identified as potentially problematic clusters.

URA and the Land Transport Authority are conducting a joint study to determine if more stringent DU guides are required based on the infrastructural capacity of the area.

The study is expected to be completed by the third quarter of 2012.

Source: Business Times – 25 November 2011

Private resale home prices remain flat, indicating cautious mood

Resale prices of private homes rose a touch last month, reversing a slight dip in September, but the overall trend suggests a period of flat values.

The new Singapore Residential Price Index (SRPI) flash figures out on Monday showed that prices rose 0.9 per cent last month, rallying from a 0.1 per cent dip in September.

The overall SRPI - which tracks a basket of completed non-landed projects - points to a cautious market, with monthly price movements mostly fluctuating within a range of just one per cent or less this year.

Prices of centrally located homes, excluding small apartments of less than 500 sq ft, posted a gain of 1 per cent last month compared with the 0.4 per cent dip in September.

Non-central area values rose 0.8 per cent, building on September's 0.1 per cent increase. Prices for small apartments inched back 0.9 per cent after a 3.5 per cent drop in September.

Experts offered various reasons for the trends seen in the SRPI index, which is compiled by the National University of Singapore.
The index's ups and downs could be due to its nature as a monthly snapshot, and there were fewer caveats lodged in October.

The fluctuation could also be due to prices reaching a turning point.
The underlying trend is still up ever so slightly. This is to be expected as there is still positive economic growth.

There could be a to and fro between the HDB resale and private resale mass market segments, which could have led to the varying impact on prices. In addition, there is also a high correlation between new and resale prices.

Developers who command some sort of pricing power when they launch new projects will invariably bootstrap prices in the neighbourhood.

What this means is that if prices of new units increase too much, it will divert demand to the resale market, which then reacts by increasing prices.

Source: The Straits Times – 29 November 2011

Share of mainland Chinese buyers of Singapore private homes rises

THE share of mainland Chinese buyers of private homes among all non-Singaporean buyers hit a record high in the third quarter, as property-cooling measures in China drove home hunters here.

Chinese bought 30.6 per cent of the private homes sold to non-Singaporeans between July and September, up from 26.1 per cent in the second quarter.

Singaporeans still made up the majority of buyers, with 64.8 per cent of all private home sales in the third quarter made to locals. But this is a drop from 67.9 per cent in the previous quarter.

Private home sales to all buyers in the third quarter slumped 24.5 per cent from the second quarter to 6,879 units, and were also lower than the average of 8,003 and 9,167 units per quarter in 2009 and 2010, respectively.

However, buying among mainland Chinese dipped to 682 homes in the third quarter, only a shade lower than the 707 in the previous three months.

Mainland Chinese buyers are increasingly looking to buy properties overseas, including Singapore, as a result of property cooling measures in China which have led to residential property prices falling in some cities.
The predominantly Chinese population, good infrastructure and education system, and the safe and clean environment make Singapore property an attractive investment option for mainland Chinese investors to park their money or buy a home for their children studying here.
Beijing's cooling measures as one factor driving buyers here. In recent months, China has taken steps such as tightening home lending.

One reason for the rising proportion of Chinese buyers is that some of the nationalities that have traditionally invested here are now more interested in their own home markets.

Indonesians, for example, are probably looking at their own home now as their own economy is growing rapidly.

Indonesians formed 17.5 per cent of foreign buyers in the third quarter, snapping up 389 units. In the second quarter, they bought 441 units, or 16.3 per cent of foreign buyers.

Other nationalities prominent among foreign buyers included Malaysians, with 18.9 per cent, and Indians, 11.1 per cent. Together, buyers from China, Malaysia, Indonesia and India made up 78 per cent of all foreign buyers.

For the first nine months, mainland Chinese bought 1,933 private homes, 8.4 per cent more than in all of last year. Most of the units cost $1 million each or less. They bought 835 units in this bracket, 503 units priced at $1 million to $1.5 million, and 62 units costing over $5 million.

The east was especially popular with this group of house hunters. Of the units bought by the Chinese from January to September, 419 - or 21.7 per cent - were in Districts 15 and 16. District 15 includes Katong, Joo Chiat and Amber Road while District 16 takes in Bedok and Upper East Coast.

Total private home sales could fall. Private home sales will continue to be supported by demand particularly from upgraders as long as the pricing is reasonable. However, if the scenario of a disorderly euro zone default or a China hard landing materialises, this will significantly dampen purchase demand and price growth in 2012.

Source: The Straits Times – 25 November 2011

New BTO launch brings 2011 total to record high

Seven build-to-order (BTO) projects containing 4,200 new flats were launched by the Housing Board on Thursday - bringing the total for this year to a new record.

The projects are in Bedok, Bukit Panjang, Hougang, Punggol and Yishun. They include Acacia Breeze @ Yishun, Golden Cassia in Bedok town, and Fajar Spring in Bukit Panjang town, next to the Fajar LRT station.

This brings the total number of BTO flats offered this year to 25,200 - a record number of such units launched in a year. The Housing Board's target for this year was to launch 25,000 BTO flats.

Due to demand for 'leftover' flats, the September BTO launch saw a muted response, with some estates and flat types undersubscribed with just one day left to apply. But for a BTO launch in May, nearly 4,000 units were oversubscribed by more than three times, with more than 13,000 people applying.

For this round, the applications close on Nov 30 and at least 95 per cent of the flat supply - excluding studio apartments - will be set aside for first-timer households, which can also enjoy housing grants.

Minister for National Development Khaw Boon Wan said this month that second-timers could expect more chances of being invited to select a flat in the future.

He said then that after most of the first-timer queue was cleared, balloting rules would be tweaked to enhance the chances for second-timers, probably towards the end of next year.

Flats on offer range from 387.5
 sq feet studio apartments with a starting price of about $78,000 in Hougang DewCourt to 1,237.8
 sq feet five-room flats in Hougang Capeview, costing about $444,000.
The HDB also released prices of the flats inclusive of grants - a three-room flat in Yishun priced from $156,000 will cost from $121,000 after taking grants into consideration.

Analysts confidently expects the flats in Bukit Panjang, Yishun and Hougang to be oversubscribed by at least three times as they are in mature estates, complete with amenities like schools and shops, and close to public transport.

Three times is a good amount for flats to be oversubscribed by, as one can expect about a third of applicants to drop out of the process.

The HDB will offer another 25,000 BTO units next year. The next BTO launch will take place in January, with 3,890 flats offered for sale in Chua Chu Kang, Punggol, Sengkang and Tampines.

Source: The Straits Times – 25 November 2011