Read the original: Mass market home prices average $1 million
Tuesday, 25 October 2011
Singapore | Mass market home prices average $1 million
Values for new and resale private homes have surpassed the threshold of $1 million, according to a new study. This is up from $970,000 in the three months to June 30, according to data compiled by Mr Ku Swee Yong, chief executive of International Property Advisor, and the Singapore Condo agency.
Monday, 24 October 2011
Singapore | 100000 new HDB flats over 5 years
The respective ministers have spoken in parliament. What is the housing situation for the 5 years ahead? It seems that 100,000 HDB flats will be built. Will this relieve newly weds of their financial burden, does this mean anything for other societal groups such as the singles, elderly, lower-income groups?
The government has committed to helping newlyweds earning less than $10,000 a month obtain their first build-to-order (BTO) flat as soon as possible, stating it is able to construct more than 100,000 flats in its current term. Second-timers too can look forward to better chances of getting a BTO flat, as the government considers raising the proportion of units set aside for them in a year’s time.
National Development Minister Khaw Boon Wan mentioned this in Parliament, as he shared plans for the next two years. Recently married first-timers are getting Mr Khaw’s immediate attention. The government is building 50,000 HDB flats in the first two years and ‘if the demand remains strong, we have the resources and the capacity to build more than 100,000 HDB flats during this term of government’, he said. New flats may start coming up in Bidadari, which can potentially accommodate up to 12,000 units.
The government will also start planning for Tengah town – with a capacity for 56,000 units when fully developed – although it will not launch BTO projects there in its current term. What it will do is start building infrastructure such as roads and drains, and the works will commence later than those at Bidadari.
On the issue of affordability, Mr Khaw said that the government has ‘stabilised the prices’ of BTO flats since May. ‘We have moderated price changes such that after adjusting for differences in location, amenities and other physical attributes, the May, July and September BTO prices were roughly comparable to the prices of similar units in the April BTO launch. The upcoming BTO launch next month will repeat this pattern,’ Mr Khaw said.
Families earning less than $1,500 a month which are in need of subsidised rental flats are also on Mr Khaw’s priority list. The government is looking at introducing more rental tiers – with smaller increments in rents as incomes rise – to retain the incentive for families to work harder and earn more, he said. The waiting time for rental flats may also drop further in the next couple of years as new rental blocks become available. As for other groups of homebuyers, Mr Khaw said he would attend to them ‘more fully in due course’.
Second-time flat applicants, for instance, may get better chances of obtaining a unit some time next year as the government progressively clears outstanding demand from first-timers. It estimates that there are about 16,000 first-timer families still waiting to buy a new HDB flat, and there are 15,000 new applicants each year. The government keeps only 5 per cent of BTO flats for second- timers, even though they make up 40 per cent of BTO applicants. ‘It is my hope that in a year’s time, we can raise the percentage allocation for second-timers to improve their chances of getting a flat,’ Mr Khaw said. This will further cut demand in the HDB resale market and resale prices should begin to moderate, benefiting other homebuyers such as singles, he added.
Separately, HDB said that three out of seven BTO projects launched last month had attracted relatively low application rates. Golden Peony in Jurong West saw an application rate of 0.6; Anchorvale Harvest and Fernvale Rivergrove in Sengkang saw an application rate of 1.3. ‘Based on past experience, these projects are not likely to achieve 70 per cent take-up rate at the selection exercise stage,’ HDB said. ‘Nonetheless, in line with the new approach of building ahead of order, HDB has proceeded to start the process of building all seven BTO projects.’
Source: The Straits Times © Singapore Press Holdings Ltd. Reprinted with permission.
Editor’s Commentary:
Are consumers looking forward to the number of new flats, or are they looking for lower prices of existing flats? Are these two issues a matter of cause and effect?
Related posts:
There will be another launch in November 2011 of BTO flats. Wil there be more like this – Waterway Woodcress in Punggol (part of HDB’s September bumper crop of 8,200 HDB flats). Photo by HDB.
The government will also start planning for Tengah town – with a capacity for 56,000 units when fully developed – although it will not launch BTO projects there in its current term. What it will do is start building infrastructure such as roads and drains, and the works will commence later than those at Bidadari.
Fernvale Rivergrove BTO flats. Photo by HDB.
Families earning less than $1,500 a month which are in need of subsidised rental flats are also on Mr Khaw’s priority list. The government is looking at introducing more rental tiers – with smaller increments in rents as incomes rise – to retain the incentive for families to work harder and earn more, he said. The waiting time for rental flats may also drop further in the next couple of years as new rental blocks become available. As for other groups of homebuyers, Mr Khaw said he would attend to them ‘more fully in due course’.
Second-time flat applicants, for instance, may get better chances of obtaining a unit some time next year as the government progressively clears outstanding demand from first-timers. It estimates that there are about 16,000 first-timer families still waiting to buy a new HDB flat, and there are 15,000 new applicants each year. The government keeps only 5 per cent of BTO flats for second- timers, even though they make up 40 per cent of BTO applicants. ‘It is my hope that in a year’s time, we can raise the percentage allocation for second-timers to improve their chances of getting a flat,’ Mr Khaw said. This will further cut demand in the HDB resale market and resale prices should begin to moderate, benefiting other homebuyers such as singles, he added.
Golden Peony BTO flat in Jurong West. Image courtesy of HDB.
Source: The Straits Times © Singapore Press Holdings Ltd. Reprinted with permission.
Editor’s Commentary:
Are consumers looking forward to the number of new flats, or are they looking for lower prices of existing flats? Are these two issues a matter of cause and effect?
Related posts:
View original post: 100000 new HDB flats over 5 years
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Singapore | Singapore National Day Rally 2011 Pt4/4 – 14Aug2011
PM Lee announces new initiatives on housing, education & jobs SINGAPORE: Prime Minister Lee Hsien Loong on Sunday announced new initiatives on housing, healthcare, education and jobs, as he pledged to put Singaporeans first. These measures include raising the qualifying income ceiling for HDB home buyers, increasing the number of places for Singaporeans at local universities, making healthcare more affordable and tightening the hiring of foreign workers. In his first National Day Rally speech since the General Election in May, Mr Lee said the thrust of the government’s policies will be a Singaporean-first approach, even as the country stays open to the world. He noted concerns over rising home prices, healthcare costs and the inflow of foreigners – all hot button issues at the recent elections. Mr Lee said: “I can fully understand and empathise with concerns because it has been a difficult ride, bumpy, stormy and causing anxiety from time to time but we are tackling these problems – building more flats, improving public transport, managing inflow of foreign workers and immigrants. “It will take a while to solve these problems because they are big and complicated issues, but we are heading in the right direction and things will get better. So please be patient.” On housing, the prime minister made the commitment to keep housing available and affordable for Singaporeans. The government will raise the qualifying income ceilings of households for HDB’s Build-To-Order (BTO <b>…</b>
Excerpt from: Singapore National Day Rally 2011 Pt4/4 – 14Aug2011
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