S’pore govt to spend billions of dollars on infrastructural projects

Source : Channel NewsAsia - 6 Feb 2009

The Singapore government will implement more measures to stabilise the property market if needed.

The assurance came from National Development Minister Mah Bow Tan in Parliament on Friday.

Mr Mah said the government will go also go ahead with multi-billion dollars worth of infrastructural projects.

Marina Bay, Singapore’s new premier business district, is taking shape.

So far, the government has invested S$5.7 billion on infrastructural works there.

And it is set to pump another S$1 billion into developing the area over the next 10 to 15 years.

Mr Mah said: “We are also pressing on with the infrastructure development for new regional commercial hubs at Jurong East, Paya Lebar and Kallang that were earmarked for development in URA’s Master Plan 2008.

“A total of S$2.9 billion will be invested to implement essential infrastructure works for the progressive development of these three new growth areas.”

These include the upgrading of existing transportation system, and building works for commercial developments, a hospital and the Science Centre.

More money will also be channelled to give public housing estates a facelift.

The government has spent S$2.4 billion on upgrading programmes over the last five years. And it has committed to invest another S$4.6 billion for the next five years.

With the global economic slowdown, demand in the construction sector is expected to moderate to about S$20 billion to S$29 billion over the next three years.

Still, the government is optimistic about prospects ahead.

Grace Fu, Senior Minister of State, National Development, said: “For 2009 alone, the value of government projects to be awarded will reach between S$18 billion and S$20 billion. This will make up for the slack in private sector demand.”

These projects include upgrading of community clubs and roads and building of new rental flats.

These are valued at between S$15 million and S$50 million each.

The government has previously announced a slew of measures to help developers and the construction industry ride out the tough times.

These measures include initiatives to ease the cash-flow of developers, and giving them more flexibility to stage the sale and construction of their developments in accordance with market conditions.

In addition, it is also promoting prompt and more frequent payment for public sector projects, as well as undertaking higher risk by lowering the security deposits for construction projects.

HDB to step up supply of smaller flats

Source : Business Times - 6 Feb 2009

The Housing Development Board (HDB) will step up its supply of new small flats to facilitate the process of distressed homeowners seeking downgrades.

Minister for National Development Mah Bow Tan said the HDB will launch 2,000 new small flats per year for 2009 and 2010 and 1,400 flats (studio apartments, two-room, three-room) in the first half of this year.

Some MPs have urged the HDB to faciliate the process of timely downgrading for those who genuinely need to do so to alleviate their financial woes and the government to provide more assistance for distressed homeowners.

Mr Mah told Parliament that HDB will provide distressed homeowners with additional loans to buy a smaller flat, but this is not a deviation from the usual policy of not offering a ‘downgrading loan’ as downgraders should have the cash from the sale of their previous house to buy a new flat.

HDB will also help those who are in financial woes source for suitable flats and if need be, buy directly in the open market and sell it to them so that they do not have to pay any cash-over-valuation. For those who cannot afford a smaller flat despite the help, HDB will consider renting a flat to them, Mr Mah said.

There is also an existing short-term assistance measure by HDB which provides temporary reduction or even deferment of loan repayment by up to six months for distressed homeowners. This gives them time to make adjustments to their lifestyle and make longer-term considerations.