Balance flats 6 times oversubscribed in latest HDB's sales launch
By Olivia Siong
POSTED: 05 Jun 2013 7:44 PM
As of 5pm Wednesday, the Housing and Development Board received close to 20,000 applications for 3,100 units offered under the Sales of Balance Flats (SBF) exercise.
SINGAPORE: Balance flats are proving to be the most popular choice in the Housing and Development Board's (HDB) latest sales launch.
As of 5pm Wednesday, HDB received close to 20,000 applications for 3,100 units offered under the Sales of Balance Flats (SBF) exercise. This works out to more than six applicants for each unit.
With their central city location and expected high returns in the resale market, the two units at the coveted Pinnacle@Duxton are the most sought after at the HDB's latest sales launch.
As of 5pm, a unit equivalent to a five-room flat received 416 applications. Located on the 46th floor, the unit is going at S$769,000.
The other available unit, which is similar to a four-room flat, received 206 applications.
Other mature estates like Toa Payoh and Bedok, which only have a handful of flats on offer, also saw strong demand.
Other popular areas include mature estates like Queenstown and Bukit Merah.
Key executive officer of ERA Realty Network, Eugene Lim said: "SBF flats are located in mature estates or well-established estates so the key factor is that the location is more attractive than the BTO flats. Secondly is the waiting time. As SBF flats are already near completion or under construction, you don't have to wait so long to collect the keys."
Observers said another reason why balance flats are in such high demand is because 50 per cent of these units are set aside for married couples with children under the age of 16. And for the first time, couples who are expecting their first child also get to benefit from this.
It was a different story for Build-To-Order (BTO) flats which received 4,882 applications for the 4,900 units on offer.
With at an application rate of one applicant for each unit on offer, this could possibly be the lowest rate ever. The application rate in the January BTO exercise was 3.8 and 3.1 in the March BTO exercise.
Analysts said location could have been a big factor.
The BTO projects launched in May are located in non-mature estates and seem less attractive compared to the balance flats that are being offered in mature estates.
Mr Lim added accessibility is also an issue with projects not located near MRT stations and therefore it is not surprising that the project in the relatively better established Hougang saw the strongest demand.
There were about four applicants for each four-room unit on offer.
Colin Tan, research head at Chesterton Suntec International, said: "Even though the units in the mature estates cost a lot more, they still attract a lot more applicants. When someone buys a home, they look at its entirety in terms of convenience, location, and even capital appreciation. Although they are priced a lot higher, people see that there may be more upside for units in the mature estates."
The next BTO launch is in July.
Applications for the HDB's latest sales launch will close at Wednesday midnight.
- CNA/fa
- wong chee tat :)
Wednesday, June 5, 2013
Bloggers to stage "internet blackout" to protest new licensing regime
Bloggers to stage "internet blackout" to protest new licensing regime
By Imelda Saad
POSTED: 05 Jun 2013 9:07 PM
Some prominent bloggers in Singapore will stage a 24-hour "internet blackout" from 12am on Thursday to protest against a new licensing regime for local news sites with substantial reach.
SINGAPORE: Some prominent bloggers in Singapore will stage a 24-hour "internet blackout" from 12am on Thursday to protest against a new licensing regime for local news sites with substantial reach.
The move is spearheaded by a group of at least 32 bloggers and socio-political websites, known as "Free My Internet".
They said the new rules, which require local news websites with substantial reach to come up with a S$50,000 bond and comply with a take-down notice within 24 hours, will limit public discourse.
The authorities have said that they are not intended as a clampdown.
They added that websites can continue as per normal, as they are subjected to the same content standards as before.
- CNA/xq
- wong chee tat :)
By Imelda Saad
POSTED: 05 Jun 2013 9:07 PM
Some prominent bloggers in Singapore will stage a 24-hour "internet blackout" from 12am on Thursday to protest against a new licensing regime for local news sites with substantial reach.
SINGAPORE: Some prominent bloggers in Singapore will stage a 24-hour "internet blackout" from 12am on Thursday to protest against a new licensing regime for local news sites with substantial reach.
The move is spearheaded by a group of at least 32 bloggers and socio-political websites, known as "Free My Internet".
They said the new rules, which require local news websites with substantial reach to come up with a S$50,000 bond and comply with a take-down notice within 24 hours, will limit public discourse.
The authorities have said that they are not intended as a clampdown.
They added that websites can continue as per normal, as they are subjected to the same content standards as before.
- CNA/xq
- wong chee tat :)
Ramped up supply of HDB flats not sustainable in long run: Khaw Boon Wan
Ramped up supply of HDB flats not sustainable in long run: Khaw Boon Wan
By Olivia Siong
POSTED: 03 Jun 2013 5:16 PM
Minister for National Development Khaw Boon Wan says the Housing and Development Board's current ramp-up in supply is not sustainable and is expected to slow down after 2015.
SINGAPORE: The Housing and Development Board (HDB) has been ramping up the number of flats it has launched in the last few years but National Development Minister Khaw Boon Wan said this number could slow down after 2015 to prevent a glut in the market.
Mr Khaw was speaking to the media on Monday after witnessing the handover of a completed Build-To-Order block in Woodlands from the contractor to HDB.
25,000 BTO flats were launched in 2011 and another 27,000 were launched last year.
While this has helped satisfy the backlog of demand from first and second time home buyers, Mr Khaw stressed this cannot continue.
This year alone, HDB plans to launch at least 25,000 new flats but Mr Khaw said this continued ramped up supply is not sustainable in the long run.
Mr Khaw said he is not worried about a "small glut" forming in the public sector as he wants to help more groups, like singles. He said he hopes to build up an inventory such that flats are ready if there is demand.
While he doesn't foresee a glut happening in the next two years, Mr Khaw cautioned the market need to go back to a steady state.
He said: "Don't expect this 25,000 units per year or the construction ramped up programme to continue forever. It can't be. It is not sustainable, bearing in mind that new family formation is only at 15,000 a year. As we clear the back log, we should be able to move back to the steady state.
"The steady state does not necessarily mean 15,000 units construction per year. Some may prefer to buy resale flats so that they can move in immediately. More importantly, they can select which flats to buy and which areas to buy because their parents might not be in the non-mature estates or their parents might not want to move into non-mature estates so we should always keep those options open."
Mr Khaw also said he is confident that HDB will be able to deliver on the flats it has promised.
This is despite the tightening of foreign manpower into Singapore. Mr Khaw pointed out the use of pre-fabricated components in HDB projects has helped to address this constraint.
Mr Khaw said HDB is on track to deliver the 13,600 units planned for completion this year and he added the effect of the ramped up supply is beginning to be felt this year while the full effect will be felt over the next two years.
About 6,000 HDB residential units have already been completed as of end May.
Mr Khaw said: "The steady state is a sustainable property market. I think property prices will probably always float upwards unless the economy crashes. We hope not to have prolonged recession. So long as economy is growing steadily, wages will go up steadily, and therefore property prices will also go up steadily.
“But there will be times when the asset appreciates much faster than wage increases, like in the last five years, so that is not sustainable. That was a period for happy sellers and very unhappy buyers but we are slowly tilting and hopefully we will reach a happier state, a fairer state between buyer and seller sometime soon."
However, Mr Khaw said what he is concerned about is a glut occurring in the private market.
He noted that a large proportion of private property is taken up by investors who are hoping to rent out their units.
He cautioned that if there is a glut in the market, rental yields could drop very quickly.
This will also cause serious financial trouble for those who have taken up a private loan, especially when global liquidity begins to ease.
Mr Khaw added this is why the Urban Redevelopment Authority's land sales have only been on a six-monthly basis.
"We have to be very nimble, and fairly skilful and also a little bit lucky. So far we have been lucky, but don't count on that for too long," stressed Mr Khaw.
On the ongoing 'Our Singapore Conversation' on housing, Mr Khaw said there have been plenty of suggestions but he addressed some participants' calls to scrap the Cash-Over-Valuation (COV) component for HDB resale flats.
He pointed out the transaction is an agreement between buyer and seller and said if home buyers are keen to pay above valuation, there is little he can to do to prevent it.
"Sometimes, you may love the place so much that (you are) prepared to pay higher – that is how COV crops up. How do I prevent it from happening? If you insist on doing so, (either by) under the counter or giving an 'angpow' (red packet) three days later in a wet market somewhere, how am I going to catch you? So it doesn't work to say let’s ban COV."
Mr Khaw added one thing participants agreed on and are proud of is Singapore's home ownership numbers.
He said in particular, he has been paying attention to the discussion on seniors, as more begin to retire and start to look at how they can get extra pocket money from their homes whether from renting out a room or right sizing their home to a studio apartment.
Mr Khaw stressed that preserving the value of property has practical implications for retirees but capital appreciation has to be reasonable, and not like the last few years.
Mr Khaw added he is working on making BTO flats more affordable.
He hopes to bring down the cost from five years of a couple's annual income to four years but he said home buyers will need to have the right expectations.
"If you engineer the softening of prices, and everybody shifted their expectation where previously they'd buy a three-room and now they'd buy a five-room, then you're chasing tails and the problem will never be solved," said Mr Khaw.
- CNA/fa
- wong chee tat :)
By Olivia Siong
POSTED: 03 Jun 2013 5:16 PM
Minister for National Development Khaw Boon Wan says the Housing and Development Board's current ramp-up in supply is not sustainable and is expected to slow down after 2015.
SINGAPORE: The Housing and Development Board (HDB) has been ramping up the number of flats it has launched in the last few years but National Development Minister Khaw Boon Wan said this number could slow down after 2015 to prevent a glut in the market.
Mr Khaw was speaking to the media on Monday after witnessing the handover of a completed Build-To-Order block in Woodlands from the contractor to HDB.
25,000 BTO flats were launched in 2011 and another 27,000 were launched last year.
While this has helped satisfy the backlog of demand from first and second time home buyers, Mr Khaw stressed this cannot continue.
This year alone, HDB plans to launch at least 25,000 new flats but Mr Khaw said this continued ramped up supply is not sustainable in the long run.
Mr Khaw said he is not worried about a "small glut" forming in the public sector as he wants to help more groups, like singles. He said he hopes to build up an inventory such that flats are ready if there is demand.
While he doesn't foresee a glut happening in the next two years, Mr Khaw cautioned the market need to go back to a steady state.
He said: "Don't expect this 25,000 units per year or the construction ramped up programme to continue forever. It can't be. It is not sustainable, bearing in mind that new family formation is only at 15,000 a year. As we clear the back log, we should be able to move back to the steady state.
"The steady state does not necessarily mean 15,000 units construction per year. Some may prefer to buy resale flats so that they can move in immediately. More importantly, they can select which flats to buy and which areas to buy because their parents might not be in the non-mature estates or their parents might not want to move into non-mature estates so we should always keep those options open."
Mr Khaw also said he is confident that HDB will be able to deliver on the flats it has promised.
This is despite the tightening of foreign manpower into Singapore. Mr Khaw pointed out the use of pre-fabricated components in HDB projects has helped to address this constraint.
Mr Khaw said HDB is on track to deliver the 13,600 units planned for completion this year and he added the effect of the ramped up supply is beginning to be felt this year while the full effect will be felt over the next two years.
About 6,000 HDB residential units have already been completed as of end May.
Mr Khaw said: "The steady state is a sustainable property market. I think property prices will probably always float upwards unless the economy crashes. We hope not to have prolonged recession. So long as economy is growing steadily, wages will go up steadily, and therefore property prices will also go up steadily.
“But there will be times when the asset appreciates much faster than wage increases, like in the last five years, so that is not sustainable. That was a period for happy sellers and very unhappy buyers but we are slowly tilting and hopefully we will reach a happier state, a fairer state between buyer and seller sometime soon."
However, Mr Khaw said what he is concerned about is a glut occurring in the private market.
He noted that a large proportion of private property is taken up by investors who are hoping to rent out their units.
He cautioned that if there is a glut in the market, rental yields could drop very quickly.
This will also cause serious financial trouble for those who have taken up a private loan, especially when global liquidity begins to ease.
Mr Khaw added this is why the Urban Redevelopment Authority's land sales have only been on a six-monthly basis.
"We have to be very nimble, and fairly skilful and also a little bit lucky. So far we have been lucky, but don't count on that for too long," stressed Mr Khaw.
On the ongoing 'Our Singapore Conversation' on housing, Mr Khaw said there have been plenty of suggestions but he addressed some participants' calls to scrap the Cash-Over-Valuation (COV) component for HDB resale flats.
He pointed out the transaction is an agreement between buyer and seller and said if home buyers are keen to pay above valuation, there is little he can to do to prevent it.
"Sometimes, you may love the place so much that (you are) prepared to pay higher – that is how COV crops up. How do I prevent it from happening? If you insist on doing so, (either by) under the counter or giving an 'angpow' (red packet) three days later in a wet market somewhere, how am I going to catch you? So it doesn't work to say let’s ban COV."
Mr Khaw added one thing participants agreed on and are proud of is Singapore's home ownership numbers.
He said in particular, he has been paying attention to the discussion on seniors, as more begin to retire and start to look at how they can get extra pocket money from their homes whether from renting out a room or right sizing their home to a studio apartment.
Mr Khaw stressed that preserving the value of property has practical implications for retirees but capital appreciation has to be reasonable, and not like the last few years.
Mr Khaw added he is working on making BTO flats more affordable.
He hopes to bring down the cost from five years of a couple's annual income to four years but he said home buyers will need to have the right expectations.
"If you engineer the softening of prices, and everybody shifted their expectation where previously they'd buy a three-room and now they'd buy a five-room, then you're chasing tails and the problem will never be solved," said Mr Khaw.
- CNA/fa
- wong chee tat :)
Low subscription rate for two-room units in BTO projects
Low subscription rate for two-room units in BTO projects
By Evelyn Lam and Sara Grosse
POSTED: 04 Jun 2013 8:30 PM
As of 5pm Tuesday, the Housing and Development Board has received only 82 applications for 230 two-room flat units from the Build-To-Order projects announced in May.
SINGAPORE: As of 5pm Tuesday, the Housing and Development Board has received only 82 applications for the 230 two-room flat units from the Build-To-Order (BTO) projects announced in May.
For example, at Spring Haven in Jurong West, there were 45 applications for 90 two-room units.
Meanwhile, the three-room and four-room units were oversubscribed.
The most popular out of the eight projects on offer are the three-room and four-room units in Hougang where there were more than three applicants for each unit.
HDB has received 4,172 applications for the 4,900 units offered in the May 2013 BTO Exercise.
Analysts Channel NewsAsia spoke with said the government had stopped building two-room flats for at least 10 to 20 years.
During the last two years, it resumed supply to provide for the low-income households.
Next month, singles above the age of 35 and earn up to S$5,000 a month will be allowed to buy new two-room BTO flats.
Analysts said this will prevent the oversupply of two-room flats but whether such flats will be popular with singles is still unknown.
Meanwhile, flats under the Sale of Balance Flats (SBF) exercise have seen stronger demand.
A total of 3,100 units are on offer, including those in mature estates like Bukit Merah and Queenstown.
As of 5pm on Tuesday, there were about five applicants for each flat on offer.
The two units at the iconic Pinnacle@Duxton drew the most number of applications.
There were 330 applicants vying for the unit that is equivalent to a five-room flat while 152 applications have been received for the other unit which is similar to a four-room unit.
The deadline for applications under the HDB's BTO and SBF exercises for May will end on June 5.
- CNA/al/fa
- wong chee tat :)
By Evelyn Lam and Sara Grosse
POSTED: 04 Jun 2013 8:30 PM
As of 5pm Tuesday, the Housing and Development Board has received only 82 applications for 230 two-room flat units from the Build-To-Order projects announced in May.
SINGAPORE: As of 5pm Tuesday, the Housing and Development Board has received only 82 applications for the 230 two-room flat units from the Build-To-Order (BTO) projects announced in May.
For example, at Spring Haven in Jurong West, there were 45 applications for 90 two-room units.
Meanwhile, the three-room and four-room units were oversubscribed.
The most popular out of the eight projects on offer are the three-room and four-room units in Hougang where there were more than three applicants for each unit.
HDB has received 4,172 applications for the 4,900 units offered in the May 2013 BTO Exercise.
Analysts Channel NewsAsia spoke with said the government had stopped building two-room flats for at least 10 to 20 years.
During the last two years, it resumed supply to provide for the low-income households.
Next month, singles above the age of 35 and earn up to S$5,000 a month will be allowed to buy new two-room BTO flats.
Analysts said this will prevent the oversupply of two-room flats but whether such flats will be popular with singles is still unknown.
Meanwhile, flats under the Sale of Balance Flats (SBF) exercise have seen stronger demand.
A total of 3,100 units are on offer, including those in mature estates like Bukit Merah and Queenstown.
As of 5pm on Tuesday, there were about five applicants for each flat on offer.
The two units at the iconic Pinnacle@Duxton drew the most number of applications.
There were 330 applicants vying for the unit that is equivalent to a five-room flat while 152 applications have been received for the other unit which is similar to a four-room unit.
The deadline for applications under the HDB's BTO and SBF exercises for May will end on June 5.
- CNA/al/fa
- wong chee tat :)
Yahoo! breaks its silence on MDA licensing scheme
Yahoo! breaks its silence on MDA licensing scheme
By S Ramesh
POSTED: 05 Jun 2013 7:32 PM
Yahoo! has broken its silence on the new licensing rules for online news sites in Singapore, which kicked in on June 1. The response came in a posting on its webpage by Alan Soon, Yahoo!'s country manager for Singapore and managing editor for Southeast Asia.
SINGAPORE: Yahoo! has broken its silence on the new licensing rules for online news sites in Singapore, which kicked in on June 1.
The response came in a posting on its webpage by Alan Soon, Yahoo!'s country manager for Singapore and managing editor for Southeast Asia.
Yahoo! noted that prior to the new licensing framework it was already bound to comply with the Media Development Authority's Internet Code of Practice.
Mr Soon said this key guideline complements Yahoo!'s own internal editorial policies around what is suitable for its readers, and that further regulation is redundant.
Yahoo! noted that the new framework has caused confusion and unsettled both users as well as the media industry.
However, Yahoo! also said the new licensing rules will help pave the way for full accreditation and access for its reporters.
It believed this will help strengthen its editorial reporting.
Yahoo! said as a network, it serves one million unique users in Singapore each day.
Unlike reporters from mainstream media, Yahoo! reporters are not accredited with the Ministry of Communications and Information, and are not given access to government media conferences.
Under the new rules announced on May 28 and which came into effect on June 1, local news sites with a significant reach will require individual licensing.
10 news sites were placed on this list, including Yahoo! Singapore.
These new sites need to put up a performance bond of S$50,000, and will need to comply with any take-down notice from authorities within 24 hours.
- CNA/xq
- wong chee tat :)
By S Ramesh
POSTED: 05 Jun 2013 7:32 PM
Yahoo! has broken its silence on the new licensing rules for online news sites in Singapore, which kicked in on June 1. The response came in a posting on its webpage by Alan Soon, Yahoo!'s country manager for Singapore and managing editor for Southeast Asia.
SINGAPORE: Yahoo! has broken its silence on the new licensing rules for online news sites in Singapore, which kicked in on June 1.
The response came in a posting on its webpage by Alan Soon, Yahoo!'s country manager for Singapore and managing editor for Southeast Asia.
Yahoo! noted that prior to the new licensing framework it was already bound to comply with the Media Development Authority's Internet Code of Practice.
Mr Soon said this key guideline complements Yahoo!'s own internal editorial policies around what is suitable for its readers, and that further regulation is redundant.
Yahoo! noted that the new framework has caused confusion and unsettled both users as well as the media industry.
However, Yahoo! also said the new licensing rules will help pave the way for full accreditation and access for its reporters.
It believed this will help strengthen its editorial reporting.
Yahoo! said as a network, it serves one million unique users in Singapore each day.
Unlike reporters from mainstream media, Yahoo! reporters are not accredited with the Ministry of Communications and Information, and are not given access to government media conferences.
Under the new rules announced on May 28 and which came into effect on June 1, local news sites with a significant reach will require individual licensing.
10 news sites were placed on this list, including Yahoo! Singapore.
These new sites need to put up a performance bond of S$50,000, and will need to comply with any take-down notice from authorities within 24 hours.
- CNA/xq
- wong chee tat :)
OUE gets SGX approval to list REIT
OUE gets SGX approval to list REIT
POSTED: 05 Jun 2013 8:46 PM
Overseas Union Enterprise has received approval from SGX to list a hospitality-focused real estate investment trust.
SINGAPORE: Property developer Overseas Union Enterprise (OUE) has received approval from the Singapore Exchange (SGX) to list a hospitality-focused real estate investment trust (REIT).
In a filing with the SGX, OUE said the REIT manager plans to appoint real estate veteran Chong Kee Hiong as chief executive officer and executive director.
Mr Chong is the former CEO of The Ascott, the serviced apartment arm of property developer CapitaLand.
On May 13, OUE had said it planned to establish a REIT, which will include a hotel, Mandarin Orchard Singapore, and its adjoining Mandarin Gallery shopping mall.
OUE - controlled by Indonesia's Lippo Group - did not reveal details about the size and timing of the initial public offering (IPO) for the proposed OUE hospitality REIT.
But according to reports, the hotel REIT is expected to raise US$700 million to US$800 million, making it Singapore's third-biggest IPO this year. The deal is expected to be priced in early July, with the proposed listing later in the month.
- CNA/ms
- wong chee tat :)
POSTED: 05 Jun 2013 8:46 PM
Overseas Union Enterprise has received approval from SGX to list a hospitality-focused real estate investment trust.
SINGAPORE: Property developer Overseas Union Enterprise (OUE) has received approval from the Singapore Exchange (SGX) to list a hospitality-focused real estate investment trust (REIT).
In a filing with the SGX, OUE said the REIT manager plans to appoint real estate veteran Chong Kee Hiong as chief executive officer and executive director.
Mr Chong is the former CEO of The Ascott, the serviced apartment arm of property developer CapitaLand.
On May 13, OUE had said it planned to establish a REIT, which will include a hotel, Mandarin Orchard Singapore, and its adjoining Mandarin Gallery shopping mall.
OUE - controlled by Indonesia's Lippo Group - did not reveal details about the size and timing of the initial public offering (IPO) for the proposed OUE hospitality REIT.
But according to reports, the hotel REIT is expected to raise US$700 million to US$800 million, making it Singapore's third-biggest IPO this year. The deal is expected to be priced in early July, with the proposed listing later in the month.
- CNA/ms
- wong chee tat :)
IKEA Singapore recalls LYDA jumbo cup
IKEA Singapore recalls LYDA jumbo cup
POSTED: 05 Jun 2013 3:55 PM
IKEA Singapore is recalling its LYDA jumbo cup due to burn hazard.
SINGAPORE: IKEA Singapore is recalling its LYDA jumbo cup due to burn hazard.
The affected cups were sold between August 2012 and May 2013.
IKEA Singapore said customers who have bought the cups should stop using them immediately and bring them back to any IKEA store for a full refund.
The cups can break when hot liquid is poured into them, creating a burn hazard.
- CNA/fa
- wong chee tat :)
POSTED: 05 Jun 2013 3:55 PM
IKEA Singapore is recalling its LYDA jumbo cup due to burn hazard.
SINGAPORE: IKEA Singapore is recalling its LYDA jumbo cup due to burn hazard.
The affected cups were sold between August 2012 and May 2013.
IKEA Singapore said customers who have bought the cups should stop using them immediately and bring them back to any IKEA store for a full refund.
The cups can break when hot liquid is poured into them, creating a burn hazard.
- CNA/fa
- wong chee tat :)
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