Analysts said flats sold under the Design, Build and Sell Scheme (DBSS) may be losing their relevance, as the gap in the housing market they previously served is now covered by Build-To-Order (BTO) flats.
The income ceiling to qualify for a BTO flat was recently raised to S$10,000 - the same as DBSS flats.
Since the public outcry over the record-breaking asking prices of a previous DBSS launch, Centrale 8, and the following clamp-down on land sales for such projects, some analysts believe the days of DBSS projects are numbered.
But in the housing market, it's all about location and pricing.
Belvia in Bedok is the latest DBSS project to be launched.
It saw a healthy crowd, receiving more than 200 applications on its first day.
Mr Raymond Chia, CEO of CEL Development, said: "Bedok Reservoir is a mature estate; we feel there's a ready demand. If you look at houses around here, they are mainly 20 to 30 years old. People who've grown up in the area, they are familiar with the surroundings and amenities. Out of convenience and to be near their parents, this can be a choice to them."
And instead of being a negative impact, Mr Chia sees the outcry over Centrale 8 as a "talking point".
Developer Sim Lian's Centrale 8 made the news in June when its highest asking price for a DBSS flat was S$880,000 - almost as expensive as Executive Condominiums, which boast amenities such as swimming pools and tennis courts.
Sim Lim eventually backed down and slashed S$100,000 off its priciest units.
The 488-unit Belvia project has 3-room to 5-room units, and an indicative price of S$570 per square foot.
"Transport is quite convenient, and a new MRT is coming up. And it's near to the PIE and if you want to go somewhere it's very convenient," said one Singapore resident.
"I grew up in the East, and my parents are just staying nearby. I think the location is tied with the price. So I believe with the new MRT to be built, I think the price to pay is justifiable," said another.
Market watchers point out that DBSS projects are public housing and have to be priced accordingly.
Mr Mohd Ismail, CEO of PropNex, said: "DBSS price should be at least 20 per cent cheaper than executive condos, or slightly more; it could be about 25 per cent, that would be ideal.
"It would make very little sense for someone to pay a high price where the differentiation between executive condos and (DBSS flats) is not even 20 per cent. Then I think you're not entering into a good deal."
Two other DBSS projects will be launched later this month in Clementi and Jurong.
Source: CHANNEL NEWSASIA Updated Oct 15, 2011
Saturday, October 15, 2011
Friday, October 14, 2011
Foreign ownership rules: When the Government intervenes ...
The issue of foreign ownership of private residential properties has been a fairly hot topic of debate for newspaper readers recently.
Sensational news reports on foreigners buying private housing properties in Singapore never fail to draw many online comments, and some of the more unbiased and thoughtful comments have made it into print in the letters-to-the-editors section.
While some have called for some kind of ban, others asked that foreign buying be restricted to certain areas or types of properties or for us to adopt rules similar to those found in other countries such as Australia.
At the same time, there was also some robust defending of the status quo. It is not the duty of the Government to provide every local household with a private property as these are not basic but luxury goods. It is simply not possible with our scarce resources.
Foreign ownership of residential properties, particularly land, is an acutely sensitive topic in many countries, particularly in less developed ones. We do not have to look further than our neighbours, Malaysia, Indonesia and Thailand.
It has to do with the general income levels and with the economic progress achieved by the local population. Natives want a level-playing field and not have all the prime or quality properties taken away by rich foreigners, perceived to have an unfair advantage with their ample wealth.
Sometimes, it is psychological as land is considered sacred. In some of the oil-rich Middle-Eastern countries, the only way foreigners could own property in their own name was on man-made islands such as The Palm Islands - Palm Jumeirah, Palm Jebel Ali and Palm Deira in Dubai and The Pearl-Qatar in Qatar.
The Palm Islands are artificial peninsulas constructed of sand dredged from the bottom of the Persian Gulf on which major commercial and residential projects are built.
The Pearl-Qatar is a man-made island covering 400ha and consists of luxury apartments and town homes, penthouse and villas besides various other commercial developments.
Until recently, foreign ownership of private residential property was also a non-issue in Singapore and in Hong Kong, but talk to some Hong Kongers these days, even among the wealthier ones, and you sense a deep resentment against Chinese nationals who have been buying up residential properties in the former British colony in droves.
What capped the debate for me was a letter to the press published on Wednesday by Associate Professor Kelvin F K Low, the associate dean (external relations) of the Singapore Management University's School of Law.
He was responding to an earlier letter which argued for no government intervention in the private property market. Besides the strict rules on foreign buying of public housing flats, he reminded readers that there are already existing restrictions in the private housing market.
Non-Singaporeans cannot buy landed property without consent. Two days ago, Law Minister K Shanmugam said he expected the number of approvals given to permanent residents who want to buy landed homes in Singapore to fall by more than half after the criteria was tightened further recently.
In his letter, Assoc Prof Low said that with the property market regulated at the bottom and at the top, it is those in the middle income bracket who are left feeling the squeeze.
In 1973, the Government introduced measures to prohibit the sale of residential property to foreigners without its consent.
These measures were relaxed in 1975 to allow foreigners to purchase residential property in buildings of six or more storeys.
The measures took form as the Residential Property Act in 1976 but the Act has lost its bite over time. Exemptions were introduced for developments designated "condominiums", which today is almost every new development. In 2006, the need for "condominium" status was itself removed.
However, Assoc Prof Low warned that the decision to change the status quo should not be taken lightly. The Government derives substantial revenues from land sales and any restrictions may affect this revenue.
In his opinion, it may be unthinkable for measures as draconian as in 1973 but the idea of government intervention is "hardly ludicrous". He ended by saying the "precise extent of intervention is a matter of government policy which, in a democracy, must in turn be accounted for come the next General Election".
He took the words out of my mouth.
Source: Today Online by Colin Tan Oct 14, 2011
Sensational news reports on foreigners buying private housing properties in Singapore never fail to draw many online comments, and some of the more unbiased and thoughtful comments have made it into print in the letters-to-the-editors section.
While some have called for some kind of ban, others asked that foreign buying be restricted to certain areas or types of properties or for us to adopt rules similar to those found in other countries such as Australia.
At the same time, there was also some robust defending of the status quo. It is not the duty of the Government to provide every local household with a private property as these are not basic but luxury goods. It is simply not possible with our scarce resources.
Foreign ownership of residential properties, particularly land, is an acutely sensitive topic in many countries, particularly in less developed ones. We do not have to look further than our neighbours, Malaysia, Indonesia and Thailand.
It has to do with the general income levels and with the economic progress achieved by the local population. Natives want a level-playing field and not have all the prime or quality properties taken away by rich foreigners, perceived to have an unfair advantage with their ample wealth.
Sometimes, it is psychological as land is considered sacred. In some of the oil-rich Middle-Eastern countries, the only way foreigners could own property in their own name was on man-made islands such as The Palm Islands - Palm Jumeirah, Palm Jebel Ali and Palm Deira in Dubai and The Pearl-Qatar in Qatar.
The Palm Islands are artificial peninsulas constructed of sand dredged from the bottom of the Persian Gulf on which major commercial and residential projects are built.
The Pearl-Qatar is a man-made island covering 400ha and consists of luxury apartments and town homes, penthouse and villas besides various other commercial developments.
Until recently, foreign ownership of private residential property was also a non-issue in Singapore and in Hong Kong, but talk to some Hong Kongers these days, even among the wealthier ones, and you sense a deep resentment against Chinese nationals who have been buying up residential properties in the former British colony in droves.
What capped the debate for me was a letter to the press published on Wednesday by Associate Professor Kelvin F K Low, the associate dean (external relations) of the Singapore Management University's School of Law.
He was responding to an earlier letter which argued for no government intervention in the private property market. Besides the strict rules on foreign buying of public housing flats, he reminded readers that there are already existing restrictions in the private housing market.
Non-Singaporeans cannot buy landed property without consent. Two days ago, Law Minister K Shanmugam said he expected the number of approvals given to permanent residents who want to buy landed homes in Singapore to fall by more than half after the criteria was tightened further recently.
In his letter, Assoc Prof Low said that with the property market regulated at the bottom and at the top, it is those in the middle income bracket who are left feeling the squeeze.
In 1973, the Government introduced measures to prohibit the sale of residential property to foreigners without its consent.
These measures were relaxed in 1975 to allow foreigners to purchase residential property in buildings of six or more storeys.
The measures took form as the Residential Property Act in 1976 but the Act has lost its bite over time. Exemptions were introduced for developments designated "condominiums", which today is almost every new development. In 2006, the need for "condominium" status was itself removed.
However, Assoc Prof Low warned that the decision to change the status quo should not be taken lightly. The Government derives substantial revenues from land sales and any restrictions may affect this revenue.
In his opinion, it may be unthinkable for measures as draconian as in 1973 but the idea of government intervention is "hardly ludicrous". He ended by saying the "precise extent of intervention is a matter of government policy which, in a democracy, must in turn be accounted for come the next General Election".
He took the words out of my mouth.
Source: Today Online by Colin Tan Oct 14, 2011
Landed property: Fewer foreigners to get approval
With changes to the Residential Property Act (RPA) in January, Law Minister K Shanmugam expects the number of approved foreigner's purchase of landed property here to be cut by more than half.
Speaking to reporters after visiting a black and white bungalow, Mr Shanmugam said approvals are given to applicants who are making a "very significant economic contribution" or if the family is rooted in Singapore with children doing national service.
"After the further tightening up, I suspect we are looking at very few people who would qualify. I think probably less than half of those who had previously qualified under the earlier strict criteria would qualify now. I'd be surprised if approvals are more than 50 per year," he said.
Only foreigners who are Permanent Residents can purchase landed residential properties here and those who wish to purchase such properties must seek the approval of the Law Minister. Each approval is allowed one property purchase.
Mr Shanmugam said the Government has kept foreign ownership of landed property to under 5 per cent and has maintained it at 3.5 per cent currently.
The Government has imposed stringent conditions on approved PR purchasers of landed properties because landed property should primarily be owned by Singaporeans and "the exceptions will be very rare", Mr Shanmugam added.
The Law Minister was on a site visit to a black and white bungalow at 10AB Goodwood Hill, which was organised by the Singapore Land Authority.
The tenancy bid for the bungalow, which has a land area of 7,869 sq m, will close tomorrow.
Enhanced penalties under the RPA came into effect in January this year. For example, a PR owner who rents out his landed residential property without approval now faces a financial penalty of up to three times the rental income earned over the period of breach, or S$10,000, whichever is higher.
A PR owner who disposes of a restricted property without approval during the non-disposal period now faces a maximum fine of S$200,000.
The previous penalty for both offences was a maximum fine of S$5,000 and/or a three-year jail term on conviction.
Source: Today Online by Ong Dai Lin , Oct 13, 2011
Speaking to reporters after visiting a black and white bungalow, Mr Shanmugam said approvals are given to applicants who are making a "very significant economic contribution" or if the family is rooted in Singapore with children doing national service.
"After the further tightening up, I suspect we are looking at very few people who would qualify. I think probably less than half of those who had previously qualified under the earlier strict criteria would qualify now. I'd be surprised if approvals are more than 50 per year," he said.
Only foreigners who are Permanent Residents can purchase landed residential properties here and those who wish to purchase such properties must seek the approval of the Law Minister. Each approval is allowed one property purchase.
Mr Shanmugam said the Government has kept foreign ownership of landed property to under 5 per cent and has maintained it at 3.5 per cent currently.
The Government has imposed stringent conditions on approved PR purchasers of landed properties because landed property should primarily be owned by Singaporeans and "the exceptions will be very rare", Mr Shanmugam added.
The Law Minister was on a site visit to a black and white bungalow at 10AB Goodwood Hill, which was organised by the Singapore Land Authority.
The tenancy bid for the bungalow, which has a land area of 7,869 sq m, will close tomorrow.
Enhanced penalties under the RPA came into effect in January this year. For example, a PR owner who rents out his landed residential property without approval now faces a financial penalty of up to three times the rental income earned over the period of breach, or S$10,000, whichever is higher.
A PR owner who disposes of a restricted property without approval during the non-disposal period now faces a maximum fine of S$200,000.
The previous penalty for both offences was a maximum fine of S$5,000 and/or a three-year jail term on conviction.
Source: Today Online by Ong Dai Lin , Oct 13, 2011
More HDB flats and new towns planned to ease housing crunch
Besides building Housing and Development Board (HDB) flats ahead of demand to ease the housing crunch, the Ministry of National Development (MND) will be preparing for new towns at Tengah and Bidadari, Minister Khaw Boon Wan said yesterday.
In the MND addendum yesterday to President Tony Tan's address at the opening of Parliament on Monday, Mr Khaw said: "They (Tengah and Bidadari) will not be needed soon but we are planning ahead so as to retain flexibility."
Tengah is near Choa Chu Kang, while Bidadari is near Woodleigh.
And, as Singapore's population continues to grow and age, new infrastructure will be built to make the Republic "a city for all ages".
"We will bring jobs closer to homes as new growth areas such as Jurong Lake District, Paya Lebar and Kallang take off. Housing will be gradually intensified, especially around MRT stations and in mature towns such as Queenstown and Bishan, to take full advantage of their excellent amenities," said Mr Khaw.
The undertaking of more complex projects in a denser Singapore also means the construction industry has to increase its capabilities and productivity, he added.
The Building and Construction Authority will target to raise the productivity of the sector by 20 to 25 per cent over the next 10 years.
Mr Khaw also said the MND is taking "active measures to address the temporary imbalance in supply and demand".
More flats will also be built to meet the demand for subsidised rental housing.
Mdm Parveen Bengam, 27, and her husband are among the families that managed to secure a rental flat with the HDB's help, after approaching them in 2009.
Mdm Parveen, a part-time operator, told Today: "I finally have a roof over my head. The house is small but we have our own privacy and we have created a small world here for ourselves."
Mr Khaw said the MND will strive for "even better-designed and sustainable towns that have ample public spaces and community facilities" in the next phase of public housing. "We are reviewing the Town Council Management Report so that it can better encourage and reflect how residents are participating in the daily affairs of their town council," he said.
Source: Today Online by Ong Dai Lin
04:47 AM Oct 13, 2011 SINGAPORE
Thursday, October 13, 2011
Belvia: DBSS project to be launched in Bedok
A Design, Build and Sell Scheme (DBSS) project in Bedok is set to be launched this week.
The project, Belvia, is one of a few projects for which tenders were given out before the government announced it will put DBSS projects on hold.
CEL Development said on Monday e-applications for Belvia — a 488-unit project comprising three-, four- and five-room units in
Bedok — will open from 14 to 18 October.
Balloting will start soon after application closes next Tuesday and buyers who qualify for DBSS flats will be allocated a booking slot from 7 November onwards, it said.
The project occupies a total land area of more than 16,000 square metres and is the first DBSS project in the mature estate.
CEL Development CEO Chia Lee Meng said he expects interest from buyers who wish to live near their parents.
The government had earlier this year put DBSS projects on hold to review the scheme.
This follows complaints from members of the public who asked for the scheme to be scrapped in the wake of high asking prices at Centrale 8, a Tampines DBSS project.
The developer of that project, Sim Lian Group, had initially asked for S$880,000 for a five-room unit, later revising it to S$778,000.
Source : Channel NewsAsia – 11 Oct 2011
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