Choa Chu Kang HDB Resale Flats

by admin on October 17, 2011

If you are looking to Buy or Sell your Condo or HDB flat in Choa Chu Kang…

Call Alfred Wong Tel +65- 9858 3241

CEA certified and registered property agent, R011691F

HDB responds to PropertyGuru article on public housing affordability

by admin on March 25, 2012

On Thursday, PropertyGuru published an article ("HDB flats are more unaffordable than private homes"). The Housing and Development Board (HDB) has since issued a response. HDB's letter is published in full below. HDB wishes to stress that the PropertyGurureport, "HDBs more unaffordable than private homes", is misleading, as it isbased on a simplistic analysis of incomplete data. We regret that …

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A Singaporean Stockmarket Investor (ASSI): Affordability of housing …

by admin on March 24, 2012

Hot on the heels of my last blog post on property prices in Singapore and whether more cooling measures are on the way, I came across an article in TODAY which reported that HDB slammed PropertyGuru for inaccurately reporting that it is more affordable to buy a private property than a resale HDB flat.

I am not really interested in their squabbles since it has no bearing on my life. However, I am interested in the last three paragraphs of the article, especially the last two which should put to rest any doubt about the government’s intention of driving down the prices of residential property in Singapore.

“One cannot deny the fact that in the last five years, income has not increased at the same rate as property prices,” he (PropNex Realty chief executive Mohamed Ismail) said. “However, all property prices are subject to cycles and a correction is likely when the affordability ratio widens.”

The HDB felt the rise in HDB resale and private property prices in recent years “is not sustainable”. “That is why the Government has been intervening with both supply and demand measures, in order to correct the imbalance,” said the HDB. “The market has moderated considerably.”

With all newly-wed first-timers “largely assured” of access to a new flat, the HDB said it would focus on helping second-timers this year. “As we assist second-timers in getting a new HDB flat, the impact will be felt in the HDB resale market,” added the HDB. “Meanwhile, URA (Urban Redevelopment Authority) will continue to push out land supply for new private property development, to match the demand. The affordability of housing in Singapore should further improve in the months ahead.”

Source: TODAY, 24 March 2012.
PropertyGuru report misleading: HDB.

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A two-tier private housing market? « Lushhomemedia

by admin on March 23, 2012

The prime and mass-market private housing segments in Singapore are facing starkly different fortunes.

According to recent industry data, while the mass-market segment is still enjoying healthy demand and price increases, the prime segment seems to be suffering from waning demand as foreign investors exit the Singapore residential property market.

Take the January and February sales figures as a case in point. Prime property accounted for only 1 to 2 per cent of total developer sales, while foreign buyers made up only 4 to 6 per cent of the caveats lodged during the first two months of this year. We believe the additional buyer’s stamp duty imposed last December is one of the main reasons foreign investor interest in the Singapore residential market has shrunk significantly, thus resulting in the weak demand for the prime housing units in which they traditionally invest.

This development leads us to ask: Will we see a decoupling of the two segments, resulting in a two-tier private housing market in Singapore? Will mass-market prices continue to trend up, while prime prices weaken due to a lack of foreign demand?

While a decoupling of the different segments of the Singapore housing market is rare, it did happen for a certain period during the last global financial crisis. From early 2008 to mid-2009, private residential prices fell significantly across the board – by an average of 25 per cent – while HDB resale flat prices trended slightly higher. However, we believe this decoupling and the strength of HDB prices were driven mainly by a shortage of supply, as the actual completion of HDB flats plunged from around 28,000 units in 2000 to only around 2,000 units in 2008.

Now, looking at the supply conditions in the mass-market private residential segment, we estimate that around 3,000 units were completed last year. We expect this to increase to around 4,000 units this year and 7,000 units in 2013.

The popularity of these properties, especially the so-called shoebox units, which really took off in late 2009 and early 2010, had resulted in the subsequent launch of a significant number of mass-market private residential projects. Factoring in a three-year construction period, some of these projects should be completed by late 2012 and significantly more in 2013.

In addition, looking at the Government Land Sales programme in the second half of 2011 and as planned in the first half of this year, the bulk of the land sales – an estimated 75 per cent by the number of units – is in the mass-market segment. This would ensure that the supply of mass-market private residential units would remain ample from 2014 onwards.

Taking these two factors into account – the narrowing price premium between prime and mass-market properties over the last two years, and the outlook for ample mass-market supply starting next year – we believe any decoupling of the two segments will be short-lived. This means that while mass-market private residential demand and prices are currently still doing well, any potential further weakness in the prime segment could eventually spread to the mass market.

By Tan Chin Keong – an analyst at UBS Wealth Management Research.

Source : Today – 23 Mar 2012

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A two-tier private housing market? — Tan Chin Keong

by admin on March 23, 2012

MARCH 23 — The prime and mass-market private housing segments in Singapore are facing starkly different fortunes.

This development leads us to ask: will we see a decoupling of the two segments, resulting in a two-tier private housing market in Singapore? Will mass-market prices continue to trend up, while prime prices weaken due to a lack of foreign demand?

While a decoupling of the different segments of the Singapore housing market is rare, it did happen for a certain period during the last global financial crisis. From early 2008 to mid-2009, private residential prices fell significantly across the board — by an average of 25 per cent — while HDB resale flat prices trended slightly higher. However, we believe this decoupling and the strength of HDB prices were driven mainly by a shortage of supply, as the actual completion of HDB flats plunged from around 28,000 units in 2000 to only around 2,000 units in 2008.

In addition, looking at the Government Land Sales programme in the second half of 2011 and as planned in the first half of this year, the bulk of the land sales — an estimated 75 per cent by the number of units — is in the mass-market segment. This would ensure that the supply of mass-market private residential units would remain ample from 2014 onwards.

Taking these two factors into account — the narrowing price premium between prime and mass-market properties over the last two years, and the outlook for ample mass-market supply starting next year — we believe any decoupling of the two segments will be short-lived. This means that while mass-market private residential demand and prices are currently still doing well, any potential further weakness in the prime segment could eventually spread to the mass market. — Today

* Tan Chin Keong is an analyst at UBS Wealth Management Research.

* This is the personal opinion of the writer or publication. The Malaysian Insider does not endorse the view unless specified.

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What Is A Market Value Of A Home Or Condo?

by admin on March 23, 2012

What Is A Market Value Of A Home Or Condo?

By Real Estate Advisor

You spent $75,000 on renovating your home but it did not fetch you the money you thought it would when you sold it. The pool you built for $50,000 may only add $20,000 more to the sale price of your home. Sounds appalling, doesn’t it? Yes, the dynamics of the market value of a home are a little more complex than you thought you understood.

It’s no surprise that the market value of a home is often a misunderstood concept. This happens especially when a home is evaluated by someone who is emotionally attached to it. The value they attach to their home largely influences their perception of its market value. In reality, the market value of a home is the value that the real estate market gives it. So a home is only worth how much it is valued at that point of time in the real estate market. Given these facts, it would be prudent to check for latest home design trends with a good real estate professional before going in for any modifications or renovations for your home.

A real estate agent can evaluate the market value of your home if you want to ascertain its present market value. A real estate agent gives you a CMA which is a comparative market analysis of the house. He/she does so by taking into consideration not only the various features of your house (that includes the additions and home improvements you have made to your home) but also the asking price of homes that are currently listed in your neighborhood. Thus the market value of a home is not just broadly based on your perceived value of the home as such, but on the current market prices of similar homes.

Also, as a home seller, do not make the error of listing your home for too much. This would almost certainly backfire forcing you to finally settle down for a much lower price than what your home is really worth.

So your home is worth what the real estate market says it is. No matter how hard it would seem for you, remember that the same principle holds good, when you purchase a home too, and works to your advantage.

Seek the expert advice of a good real estate professional to have a good idea about what factors go into determining a market value of a home. Often, these come in handy when you purchase a home or decide to spruce it up for sale.

About the Author: San Diego Homes
Rancho Bernardo Homes
Rancho Bernardo Real Estate

Source: www.isnare.com

Permanent Link: http://www.isnare.com/?aid=135217&ca=Real+Estate

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HDBs more unaffordable than private homes

by admin on March 22, 2012

Housing and Development Board (HDB) resale homes in Singapore are more unaffordable than private homes, PropertyGuru can exclusively reveal. They are also classed as being ‘severely unaffordable’.

Using a globally-recognised formula where the Median Multiple (median house price divided by the annual median household income) is used to calculate housing affordability, HDB resale flats are also classed as being severely unaffordable using a scale which was most recently published in the 8th Annual Demographia International Housing Affordability Survey.

Housing affordability is evaluated based on the quotient deduced from the given formula, where a result of 3.0 and below would imply that houses are affordable, 3.1 to 4.0 (moderately unaffordable), 4.1 to 5.0 (seriously unaffordable), and 5.1 and over (severely unaffordable).

Given that the international report centred on the mid-end market, PropertyGuru focused its attention on private apartments and condominiums within the Outside Central Region (OCR) and Rest of Central Region (RCR), as these areas are home to most of the mid- to high-end properties.

The median multiple is based on calculations using the median household income from Singstat’s Key Household Characteristics and Household Income Trends, 2011, and the median price for all types of resale HDBs, ranging from one- to five-room and executive flats, according to data from the HDB and PropertyGuru.

The median multiple for private properties is 6.03 which means they are ‘severely unaffordable’ but for HDB resale flats, the result is arguably shocking. The median multiple was found to be at a high of around 6.7, which lies within the ‘severely unaffordable’ bracket – and even more unaffordable than private properties.

While private properties and HDB resale flats hit the ‘severely unaffordable’ mark, it has to be noted that the monthly household income for HDB dwellers is considerably lower than that of private homeowners.

Tejaswi Chunduri, Regional Analyst at PropertyGuru, offered her insights on the findings. She said: “The data is reflective of the housing affordability issues the country has been facing the past few years. In the last five years the median household income in Singapore has increased by 42 percent whereas HDB resale prices have shot up by 84 percent according to the HDB price index. Private property has risen 58 percent when we look at the private property price index.”

She added: “This is a great contradiction to HDB’s role which is to offer affordable housing to the masses,” however she was quick to add that homes in Singapore are more affordable than Hong Kong which earned a rating of 12.6.

Despite the high prices, private home sales in Singapore continue to skyrocket, rising 29 percent in February from the previous month. “It is yet to be seen if the multiple rounds of cooling measures and other policies introduced by the government will prove effective in making home prices more affordable,” added Chunduri.

The HDB was contacted for an official statement but were unable to issue any comment prior to publication.

Toa Payoh flat sold for record S$894,000

HDB to hold talk on ‘Starting a Business in your Flat’

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Punggol & Pasir Ris have most households earning S$9000 and above – 14Mar2012

by admin on March 21, 2012

SINGAPORE: A new study shows that about 30 per cent of HDB households in Punggol have a monthly income of S$9000 or more. This is four percentage points higher than the national average compared with other HDB estates. And property developers believe this shows Punggol has potential for private residential development. Pasir Ris has the highest number with 35 per cent of HDB households with monthly incomes above S$9000. But as Punggol is a relatively new estate and the proportion of those with university education is the highest, property developers are setting their sights there. They believe Punggol residents can afford private property with their stronger earning power. In addition, 97 per cent of HDB residents there live in four-room or bigger flats. And analysts said those looking to upgrade to private property usually come from this group. So even though the government is pushing out 5400 private property units in Punggol, analysts believe there is demand. SLP International research & consultancy executive director Nicholas Mak said: "Bearing in mind that private homebuyers of condominiums in Punggol are not just from Punggol but also from Sengkang and Hougang, and there is a finite number of such buyers in the area, I think the present pace of government land sale is just right. If the government were to accelerate the land sale in Punggol, this could actually increase or enhance a risk of oversupply in the area." Subject: Private property developers eyeing Punggol <b>…</b>

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Toa Payoh flat sold for record S$894,000

March 17, 2012

The sale of a three-year-old five-room HDB flat in Toa Payoh (pictured) back in February has caused quite a bit of buzz online with some netizens wondering how the owner was able to sell the flat

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Older Sers-affected residents can use more from CPF to buy flat

March 15, 2012

The Housing Board (HDB) yesterday announced several tweaks to its Selective En Bloc Redevelopment Scheme (Sers), to make it “more favourable” for residents who are forced to relocate. In a written response to media queries, HDB said that from this month, those affected by Sers will be given priority allocation in “public sales exercises”. [...]

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HDB to go ahead and build elderly studios in Toh Yi area

March 6, 2012

Despite a petition from residents and a series of protests, the HDB is standing by its decision to build a block of studio apartments for the elderly at the junction of Toh Yi Drive and Toh Yi Road.

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