Steven Teo Property Updates @steoproperty

Property rental markets are favouring tenants

2013-11-27T11:30:00.000+08:00

The residential leasing market is gradually turning to favour tenants, even as there is likely to be strong demand over the next half a year.

The rental market was buoyant in the third quarter of the year. There were 15,083 rental transactions - a record number and an 11.6 per cent increase from the previous quarter.

This was attributed to factors such as the 5.1 per cent growth in GDP for Singapore year-on-year, lower unemployment rates, and foreign nationals bringing forward plans to relocate here in light of the Fair Consideration Framework (FCF) which will take effect next August.

The FCF will require every company with more than 25 employees to advertise job openings on a new government-sponsored job bank before applying for a new Employment Pass (EP).

While the framework applies to jobs with monthly salaries below $12,000, "it is foreseen that from the start of next year, the number of overseas nationals in Singapore will decline further, as EP holders will soon face more difficulties in getting approvals on both fresh and renewed applications”.

These factors come against a backdrop of higher vacancy rates and slower rental growths. In Q3, 6.1 per cent of private homes, or 17,459 units, were vacant, up from 5.6 per cent in Q2. This came on the back of several big projects such as the 1,040-unit The Interlace on Depot Road, the 429-unit Tree House on Chestnut Avenue and the 302-unit Cape Royale at Sentosa Island getting their temporary occupation permit.

As for rents, the overall index for private residential properties from the Urban Redevelopment Authority showed a 0.2 per cent growth in Q3, down from 0.3 per cent in Q2. The average monthly rent of high-end condominiums tracked by Savills was flat at $4.86 per square foot.

Source: Business Times – 26 November 2013

Property investment seminars on CEA radar

2013-09-25T11:30:00.000+08:00

Bold claims by property experts of wielding the secret technique of buying homes with no cash outlay or owning multiple properties have proliferated in recent months, as investors look for ways to circumvent the successive rounds of cooling measures. This has inevitably raised alarm bells in some quarters.

Indeed, generating high returns, having the right opportunities identified and served up on a platter, and gaining financial freedom are some of the enticements dangled by newspaper advertisements on a daily basis.

Ranging from a quarter to half page, these advertisements often entice investors to investment seminars by waiving the registration fees for early birds. Investors who attend these seminars are not only drawn in by claims that these experts, who range from authors to enterprise award winners, have made millions from the property scene, but also that they get to waive the registration fees which can cost a few hundred dollars.

According to Yeap Soon Teck, deputy director (licensing), Council for Estate Agencies (CEA), the regulatory body is aware of such property investment companies inviting members of the public to attend seminars on property investment.

"We have conducted checks including on-site inspections of these seminars to ensure the companies comply with the Estate Agents Act," he said.

The Estate Agents Act covers the conduct of estate agency work - including introduction of a vendor to a purchaser or assistance in the negotiation of a transaction between them as well as subsequent work relating to the transaction - in Singapore, even if the property to be transacted upon is located outside the country.

Source: Business Times –23 September 2013

A property billionaire turns bearish

2013-08-15T12:28:00.000+08:00

"[...]Up to 5% fall in property prices" is a very bold claim from the Chairman of City Developments Limited (CDL), a leading real estate developer in Singapore.

Is he trying to talk the market down? Trying to manipulate market prices?

Read the below article and judge for yourself.

http://sg.finance.yahoo.com/news/property-billionaire-turns-bearish-130126516.html

Suburban launches to cross $1200psf

2013-08-12T11:56:00.003+08:00

Take heed and get started early if you can. Get your new home now or continue waiting...

Property market stabilising but curbs will stay: Tharman

2013-07-11T15:30:00.000+08:00

Property prices in Singapore are starting to stabilise but the Government is not ready to take its foot off the property market brakes, said Deputy Prime Minister Tharman Shanmugaratnam.

"Our intention is to stabilise the market, if possible have some softening of prices," he told Reuters in an interview yesterday.

"Longer term, our intention is to try as best as we can, although it's difficult, to have prices not run away from incomes, which means that on a trend basis, we would like to see some stability in prices relative to median incomes especially."

After seven rounds of cooling measures since 2009 and a move last month to cap Singapore home buyers' debt payments relative to their income, Mr Tharman said the property market is showing signs of calming down.

"The market as a whole is seeing some stabilisation," said Mr Tharman, who is also Finance Minister and the Monetary Authority of Singapore (MAS) chairman.

"We're not ready yet to lift our measures or ease up on our measures, so we're watching the market and have to make judgments without announcing our policy moves well in advance."

Singapore's private home prices have risen more than 60 per cent over the last four years on the back of record low interest rates and copious capital inflows, fuelling concerns about affordability for first-time buyers.

As prices rose, households have also taken on more property debt, raising concerns about pockets of over-leverage being exposed when interest rates rise.

The MAS last month set new rules to restrict a home loan applicant's total monthly debt repayments to 60 per cent of income.

The move comes after a series of property curbs which the authorities have aimed at "preventing a full-scale bubble from being formed because that can only crash, but at the same time not overreacting in one set of moves," said Mr Tharman.

He said a recent slowdown in property price appreciation was "more than temporary" and was a "response to our measures".

The rise in private home prices slowed to under 1 per cent in each of the last two quarters, while Housing Board flat resale prices grew 0.5 per cent in the second quarter this year, the slowest rate since the first quarter of 2009.

Curbs recently imposed on foreign home buyers, such as higher stamp duties, are meant as a disincentive rather than an outright restraint, Mr Tharman said.

"It's not a closed-door policy because Singapore has to remain an open market," he said. "But we've put some sand in the wheels, a fair bit of sand in the wheels, and it's having some effect at the top end."

Mr Tharman added that rich foreigners are picking up properties here to seek higher returns, not to squirrel away money from authorities at home.

"Most of the demand for property in Singapore has been a search for yield rather than a search for a place to keep ill-gotten money," he said.

In the interview, Mr Tharman also spoke about South-east Asia needing to manage volatility as fund inflows reverse direction on the back of the United States Federal Reserve winding down its monetary stimulus.

But he said the region is "fundamentally more resilient" and its banking systems are stronger than before the Asian financial crisis.

"Both the injection of liquidity that came with quantitative easing and the potential withdrawal are discomforts but are not going to pose fundamental risks."

Mr Tharman also warned that markets "may be a little too optimistic" about the US recovery, as it was not yet clear whether the economy can return to sustainable growth of at least 2.5 per cent.

Meanwhile, he urged the US and Europe to align their rules more closely on financial regulation or risk undermining the global economy.

"We need something closer to harmonisation," he said.

"If you look at many advanced countries today, compared to five years ago, things have gotten more domestic and less international and that's a risk for the global economy, whether it's financial regulation or other matters."

Lastly, Mr Tharman said Singapore does not want to play the role of a booking centre for profits made in other countries.

"We have no economic benefit in Singapore from attracting profits from the rest of the world to take advantage of low taxes in Singapore. There is no domestic value added, and it's domestic value added that matters to us."

Source: The Straits Times –11 July 2013

New HDB ruling on renovation workers

2013-06-21T16:30:00.000+08:00

Renovation contractors will be required to hire only certified workers to carry out demolition or hacking works in HDB flats from Jan 1, 2014.

The HDB announced this mandatory requirement yesterday.

It also said that it is collaborating with the BCA Academy to customise a demolition course for renovation workers.

Under existing guidelines, HDB flat owners are required to engage contractors registered with the HDB for any renovation work and they must also obtain HDB's approval before the work begins, particularly if it involves demolition or hacking.

This is to ensure that any proposed demolition work will not affect the structural integrity of the building and compromise public safety.

Under the new guidelines issued yesterday, though, registered contractors should submit the particulars of two certified workers in their online applications to HDB if there is renovation activity that involves hacking or demolition works.

HDB yesterday said in a statement that this will ensure that trained workers will be able to recognise the danger of hacking structural walls and mitigate the risk of such incidents. HDB added that the new course would help to raise the professionalism of the renovation industry as a whole.

The first run of the course began yesterday. It is conducted weekly by the BCA Academy at a cost of $195 (excluding GST) per participant.

Course participants who pass the required assessments in both the theory and practical aspects will be awarded a Certificate of Successful Completion in Demolition Works for Renovation Contractors issued by the BCA Academy.

Every year, HDB receives close to 60,000 renovation applications, including applications which involve demolition work.

With the large number of renovations taking place, coupled with the high-rise nature of HDB flats, it is important that these guidelines are strictly adhered to. Unauthorised demolition could lead to serious consequences, HDB warned, as it quoted two examples of unauthorised demolition work - in flats in Bedok and Bishan - that led to the removal of important structural walls, endangering the residents and their neighbours.

The renovation contractors in both cases were taken to task with the contractor in the Bedok case having its registration terminated and debarred for five years from re-registering.

As for the new rule, HDB said that appropriate action will be taken against registered renovation contractors if the workers are found to be uncertified.

Source: Business Times –21 June 2013

New Complex System Modelling Tool Enhances HDB’s Town Planning Efforts

2013-06-13T12:30:00.000+08:00

This is so COOL!!

The Housing & Development Board (HDB) will be signing a Research Collaboration Agreement (RCA) with leading European companies Electricite de France (EDF) and Veolia Environnement Recherche et Innovation (VERI) on 14 Jun 2013 during the World Cities Summit (WCS) Mayors Forum held in Bilbao, Spain.

This signing, supported by the Economic Development Board (EDB), marks the beginning of a collaboration to develop a complex system modelling tool that will greatly improve HDB’s current approach towards town planning. Future residents in new towns such as Punggol, Bidadari, Tampines North and Tengah could stand to benefit from this tool’s ability to make effective urban planning decisions that will lead to a better living environment for residents in Singapore.

This computer modelling tool has the ability to simulate various built environments and to recommend an optimal scenario to meet the desired outcome of the living environment. This is particularly useful for town planners because they cannot afford experimentation with actual developments in land scarce Singapore. The tool will reduce the risk of physical trial and error by providing a virtual platform for testing a planned environment before developments are actually implemented.

For example, the computer model can simulate the various new urban solutions introduced to drive energy efficiency, effective waste management, water recycling, rainwater collection, thermal comfort and efficient transportation networks. Planners can then choose the optimal combination of solutions to achieve the desired sustainability targets.

HDB can also test out various housing typologies and determine how best to site the new flats to optimise wind flow, or to minimise heat and glare. The tool can help HDB study the most effective way to place the solar panels on the rooftops, which in turn could influence the way the buildings are orientated and designed.

Besides simulating and modelling ‘hardware’ initiatives, understanding the behaviour of the residents is another important aspect in this research collaboration. The behaviour of residents can have a significant impact on the sustainability performance of the ‘hardware’ initiatives and therefore also needs to be taken into account.

The design of public housing will continue to evolve, with more attention paid to design in order to add character and identity to the towns. New housing typologies will also be introduced to ensure liveable towns even as HDB builds in a high density environment. The complex system modelling tool complements HDB’s design efforts. It is an intelligent tool that will help HDB to derive the best combination of strategies using design, innovative technologies and influencing social behaviour so as to shape a good quality living environment for residents. Overall, it represents a new generation of tools to build smarter cities.

Dr Cheong Koon Hean, Chief Executive Officer of HDB, said: “HDB is pleased to embark on this collaboration with EDF and Veolia to develop this new modelling tool. This is a sophisticated tool that will simulate complex urban scenarios and help HDB planners analyse and determine the best combination of strategies using both design and technological solutions. Ultimately, it will help us create a better living environment that will benefit our residents.”

The WCS Mayors Forum, co-organised by Singapore’s Centre for Liveable Cities (CLC) and Urban Redevelopment Authority (URA) will be held from 13 to 15 Jun 2013. It will be a platform for over 100 city leaders, international organisations and urban solutions companies to discuss common urban challenges and share best practices in building liveable and sustainable cities.

Source: HDB

Bullish prices for Jurong East condo launch

2013-06-12T15:38:00.000+08:00

The upcoming launch of MCL Land's J Gateway in Jurong East with prices in the bullish region of $1,600 per sq ft (psf) is set to test buyers' appetite for suburban homes.

Average prices of homes at the 738-unit development are expected to range from as high as $1,650 psf for a 474 sq ft one-bedder to $1,450 psf for a 1,163 sq ft four- bedder.

One agent said he has received over 100 queries from interested buyers in the past three weeks.

In comparison, developments launched in the area in the last few years are further from Jurong East MRT station - The Lakefront Residences, launched in 2010, is two MRT stops away while Parc Oasis is at Chinese Garden MRT station.

Based on the Government's Master Plan 2008, the 70ha Jurong Gateway encompasses amenities such as the Jurong East MRT station, existing and upcoming malls like Jem, J Cube, Westgate and Big Box, and Ng Teng Fong Hospital.

In due course, a new hotel will be developed in Jurong Gateway - a site there was bought for $238.2 million in November by Resorts World Singapore, a unit of Genting Singapore.

Jurong Gateway is one of two zones - the other being Lakeside - that make up Jurong Lake District.

Other consultants say prices at 99-year leasehold J Gateway are not far off from what other condos are also asking.

Prices of units at Keppel Land's The Lakefront Residences in the Lakeside area are at $1,434 psf for a 495 sq ft unit, and are expected to inch up.

That in turn, might lift resale prices of older condominiums such as Parc Oasis, which are at $1,022 psf for a 1,076 sq ft unit.

Source: The Straits Times –12 June 2013

Register your interest for J Gateway @ Jurong East

Resale Prices of Resale Private Apartments down in May

2013-06-11T16:30:00.000+08:00

Resale Prices of resale private apartments down in May amid weak transaction volumes, flash estimates from the Singapore Real Estate Exchange (SRX) show.

SRX said its Singapore Property Index (SPI) for resale prices for non-landed private residences eased 0.5 per cent to 175.7 last month from April.

In April, it had edged up 0.1 per cent from March.

Eugene Lim, key executive officer at ERA Realty, said the stable trend shows the latest round of cooling measures in January have been "effective in engineering a soft landing for property market prices".

The index was dragged down by 0.5 per cent in the Core Central Region (CCR) and 0.4 per cent in the Rest of Central Region (RCR). This was offset by a gain of 0.3 per cent for resale prices from Outside Central Region (OCR).

"There is still a slight pent-up demand from first-time buyers especially in mass market," Mr Lim said.

The steady prices came even as transaction volumes stay weak.

The SRX figures showed that 666 resale non-landed private homes changed hands in May.

While the final volume is projected to be around 750 units, which would be higher than the 671 units from April, this is still about 40 per cent lower than the 1,292 units sold in May last year.

ERA's Mr Lim said new sales appeal to buyers as they are purchasing for investment and capital appreciation.

He expects sales volume to decline "moderately" in the coming quarters as pent up demand is gradually met with more supply coming onstream, combined with the effects of the cooling measures.

As for rentals, SRX data showed the index fell for the fourth straight month in May, losing 0.6 per cent from April.

The OCR segment led with a 1.1 per cent drop, followed by CCR's 0.7 per cent decline and RCR with a 0.4 per cent fall.

This was attributed to an abundant supply of homes both completed and in the pipeline. "Competition for tenants will increase and rents may continue to soften this year as more projects are completed," Mr Lim said.

Source: Business Times –8June 2013

Developers upbeat about Executive Condominium market

2013-06-03T16:00:00.000+08:00

Developers upbeat about Executive Condominium market segment given the provisional results for yesterday's tender for an executive condominium (EC) site in the Sengkang area, like that for a Woodlands EC site which closed earlier this month, led property consultants to conclude that.

This is despite measures introduced in January to rein in some of the exuberance in the sector and more recently, strong hints from the government that its housing subsidy of up to $30,000 for first-time buyers who pick up an EC unit from a developer, is in for a change. ECs are a public-private housing hybrid.

At yesterday's tender closing, a 99-year EC site in Anchorvale Crescent drew a top bid of $330.65 per square foot per plot ratio (psf ppr) from Qingjian Realty (South Pacific) Group. This will be the group's fifth EC project.

Earlier this month, it clinched the Woodlands EC site plot with a winning bid of $341.21 psf ppr. That tender attracted seven bids.

At yesterday's tender, Qingjian's bid was 3.2 per cent higher than the next highest offer of $320.45 psf ppr placed by City Developments unit Bellevue Properties.

Kheng Leong partnered Low Keng Huat to bid at $316.68 psf ppr. Frasers Centrepoint's unit FCL Place and Hytech Builders joined forces, offering $308.30 psf ppr. The two other bids were from EL Development ($275.75 psf ppr) and Teambuild Land unit Ecco Development, which offered $266.59 psf ppr for the site, which can yield an estimated 690 units.

The site tendered yesterday is near Farmway LRT Station and Sengkang Riverside Park. ECs come with initial buyer eligibility and resale conditions that are completely lifted 10 years after the completion of an EC development.

Li Jun, general manager of Qingjian Realty (South Pacific) Group, forecast last night that the average selling price for the project could be in the $730-780 psf range, subject to market and economic conditions at the point of launch. "Qingjian assessed that the property market is stable and that the EC market is healthy," he added.

It will be launching its next EC development, the 512-unit Ecopolitan, at Punggol Way next month. E-applications open on June 28. The group has two earlier EC projects - RiverParc Residence and Waterbay - both of which are under construction in Punggol, and fully sold.

Source: Business Times –31 May 2013

Metro Holding will launch Singapore residential project this year

2013-05-30T17:39:00.001+08:00

Metro Holdings will launch its first Singapore residential project in nearly two decades later this year and plans to further expand its footprint in China, it said yesterday.

A site at Prince Charles Crescent, which Metro is jointly developing with Wing Tai and UE E&C, will go on the market by the end of the third quarter, chairman Winston Choo said at a results briefing.

The project's ground-breaking is scheduled for June 4 and the Metro Holdings is looking to launch it at $1,500 psf at least, he said.

Source: The Straits Times –30 May 2013

Effects of Jan property curbs unclear: NUS

2013-05-29T16:00:00.000+08:00

A paper from the National University of Singapore's Institute of Real Estate Studies (IRES) argues that it is unclear that the seventh instalment of cooling measures announced in January has had the desired impact of mitigating home price inflation.

It based this on an analysis of its Singapore Residential Price Index (SRPI) series, which tracks prices of completed non-landed private homes excluding executive condos.

It found that while earlier policy measures seem to have reduced home price volatility, the magnitude of month-on-month price changes has increased for the overall SRPI since October 2012, driven mainly by price volatility in the Central Region (excluding small units).

IRES defines Central Region as districts 1-4, including the financial district and Sentosa Cove, and the traditional prime residential districts of 9-11.

It plotted the overall SRPI as well as its various subindices, along with total sales volumes of non-landed private homes (in primary and secondary markets combined, excluding ECs) against the policy dates of the seven market-cooling interventions since March 2009, and the "shoebox control measure" unveiled last September.

Following the latest January measure, transaction volumes and prices fell in February but have since recovered with the overall SRPI buoyed by the strength of the housing market in Non-Central Region, IRES argued. Its SRPI for Non-Central Region based on the latest flash estimates for April reflects a 13.5 per cent year-on-year increase, compared with a 3.2 per cent gain for Central Region. Both subindices exclude small units.

However, IRES notes that the price behaviour of its subindex for small units (up to 506 sq ft) islandwide is now more in line with that of the overall market. "Given that the shoebox policy took effect from Nov 4, 2012, and that speculative attention has been diverted elsewhere, small apartments seem to exert less pricing influence (on the overall market) than before," said associate professor Lum Sau Kim of IRES.

On Sept 4 last year, the Urban Redevelopment Authority issued a circular stipulating that from Nov 4, the maximum number of housing units in non-landed private housing projects outside the Central Area would be capped based on an average unit size of 70 square metres.

Flash estimates from IRES yesterday show that the overall SRPI grew 1.9 per cent month-on-month in April, a bigger increase than the 1.1 per cent rise in March. The Central Region subindex climbed 1.3 per cent, less than the 2.8 per cent in March. Prices in Non-Central Region climbed 2.4 per cent after dropping 0.2 per cent in March. Small unit prices rose 1.8 per cent, adding to a 0.8 per cent gain in March.

Year to date, the small unit subindex has posted the biggest increase of 5 per cent, followed by Non-Central Region (3.9 per cent). Prices in Central Region have appreciated 1.6 per cent, while the overall SRPI is up 2.8 per cent.

Industry players point out that some "first-time" buyers may actually be proxy buyers for those who already own private homes and who want to avoid the cooling measures. An example would be parents who buy properties in the names of their children.

Source: Business Times –29 May 2013

Cooling measures for multiple properties starting to bite

2013-05-23T16:00:00.000+08:00

The proportion of private housing loan applicants without any outstanding mortgages continued to rise in the first quarter of this year, according to latest figures from Credit Bureau (Singapore). This suggests that the January cooling package, with measures that discouraged multiple property ownership, is starting to bite, analysts say.

CBS data shows that of the 16,208 Singaporeans and permanent residents granted private home mortgages (including refinancing cases) in the first three months of 2013, 65 per cent did not have any outstanding home loans either for an HDB flat or private home.

This figure is markedly higher than the 61 per cent for the whole of last year, which in turn was up from 56.4 per cent in 2011 and 53 per cent in 2010. On the other hand, the proportion of second and third loan cases among Singaporeans and PRs granted private housing loans has been falling. The 65 per cent share of first-loan cases in Q1 2013 is up nearly 7 percentage points from the 58.3 per cent in Q1 2012. OCBC Bank's head of consumer secured lending Phang Lah Hwa said: "We observe that the number of home loan borrowers with only one home loan has increased in Q1 2013 compared to last year, as the series of property cooling measures have discouraged multiple property purchasers."

The rising proportion of first-loan cases is illustrated even more dramatically by a monthly breakdown of data by CBS. The share has risen from 59.4 per cent last December to 63.1 per cent in January 2013 (the month of the cooling measures), with the share continuing to rise to 64.4 per cent in February and 66.2 per cent in March. The March figure is the highest in at least three-and-a-quarter years.

Among the 1,392 non-PR foreigners granted private housing loans in Q1 2013, the proportion of first-loan cases was 79.6 per cent, up from 76.2 per cent for the whole of last year.

Most observers credit the government's property cooling measures for these trends. The latest package in January further lowered loan-to-value (LTV) limits for individuals with at least one outstanding home loan seeking subsequent home mortgages. Also, the move to extend additional buyer's stamp duty (ABSD) to the second residential property purchase for Singaporeans and the first purchase for PRs plus the hike in ABSD rates have curbed property investment. In turn, this has resulted in a higher proportion of first-loan cases.

However, industry watchers say that the higher share of first-loan cases is also due to the strategies of some property investors to get around the system. Some borrowers may have paid up their first home mortgage before buying a second property (to qualify for higher LTV of up to 80 per cent). Some parents also buy properties in their children's names.

Conveyancing lawyers and bankers also recount anecdotal evidence of "decoupling" the ownership of properties. This refers to couples who jointly own residential properties making a transfer to give full ownership to one spouse, and make their next purchase in the name of the other spouse. "So either way, the higher proportion of first-loan cases is due to the cooling measures," quipped a banker.

Since 2011, the government has announced a few rounds of measures to cool investment demand for residential properties.

Under CBS data, some borrowers, such as married couples, could be joint applicants for a single loan. Hence, there were 11,423 private home mortgages granted to Singaporeans and PRs in Q1 2013 but this translated to a higher 16,208 individual applicants for those loans granted. While bank loans for HDB flat purchases are excluded from the pool of applicants granted private home loans for the purpose of this study, the applicant's total home loan count covers bank loans for HDB flats as well as private homes (including ECs).

Also noteworthy is that CBS' data lumps together new home loan and refinancing cases, as currently there is no differentiation between new home loans and refinancing cases uploaded on its database. However some analysts reckon that including refinancing cases may not significantly affect the picture in terms of analysing borrowers' loan count - assuming that refinancing cases are driven by lower interest rates and not a borrower's loan count.

Source: Business Times –23 May 2013

Foreigners' share slips in private home deals

2013-05-22T16:47:00.000+08:00

The proportion of private home transactions involving foreign buyers (including Singapore permanent residents, or PRs) slipped to 20.8 per cent in April, after recovering to 26.7 per cent in March.

In February, their share dived to 23.3 per cent following the seventh round of property cooling measures that took effect on Jan 12. In January, foreigners had accounted for 28 per cent of caveats lodged for private homes purchased in Singapore. Conversely, Singaporean buyers' share increased, from 72.5 per cent in March to 78.3 per cent in April - highest monthly share in a year.

These trends are due to the number of caveats for private homes lodged by Singaporeans rising at a faster clip than purchases by foreigners.

In April, Singaporeans lodged 1,528 caveats, up 62 per cent from March. The number of caveats lodged by foreign buyers rose 16.4 per cent month on month to 405 in April.

The bigger jump in caveats lodged by Singaporeans last month is attributed to a slew of private residential launches in March especially in the suburban mass-market segment. Such projects appealed relatively more to Singaporeans, particularly first-time buyers who have been left unscathed by the cooling measures.

As some of the options granted by developers in March would have been exercised by buyers in the following month and caveats lodged shortly thereafter, this could have accounted for the spike in caveats lodged by Singaporeans in April.

On a quarterly basis, the total number of caveats lodged for private home purchases fell 34.4 per cent, from 8,725 in Q4 last year to 5,721 in Q1.

Caveats by Singaporean buyers declined 36.6 per cent quarter on quarter to 4,153 in the first quarter - a bigger percentage drop compared with the 25.3 per cent fall in purchases by foreigners.

Hence the foreign buying share increased to 26.8 per cent in Q1, from 23.5 per cent in Q4 last year and 22.2 per cent for the whole of last year.

Providing a split of foreign buyers by nationality, China buyers retained their No 1 position. Their share of the foreign buyer pie climbed from 25 per cent in Q4 last year to 29.6 per cent in Q1.

Malysians remained the second-biggest group of foreign buyers. Their share increased from 22.6 per cent in Q4 last year to 23 per cent in Q1 2013.

Over the same period, Indonesians saw their share among foreign buyers slipping from 21.5 per cent to 19.9 per cent, though they still held on to their third position.

China buyers' share of caveats lodged by foreign buyers, which had spiked from 26.7 per cent in February to 36.2 per cent in March, fell to 28.1 per cent in April. The number of caveats lodged by Chinese citizens fell from 126 in March to 114 in April.

Meanwhile, interest from Malaysian buyers fell initially following the January 2013 cooling measures. Malaysians accounted for 21.5 per cent of total caveats lodged by foreigners in February and 13.8 per cent in March - which are markedly lower than 26.9 per cent in January 2013.

Source: Business Times –21 May 2013

At least five home launches coming up

2013-05-20T15:38:00.004+08:00

Home hunters will have plenty to choose from with an array of upcoming launches planned across the island.

Those keen on the city centre can focus on Corals at Keppel Bay near HarbourFront MRT station and Liv on Sophia near Dhoby Ghaut MRT station. Corals, which has 366 units and is being developed by Keppel Land, is beside the Caribbean condominium.

Private previews at the 99-year leasehold project begin this weekend with about 100 units to be released in the official launch next weekend. Units are expected to be priced from $2,000 per square foot (psf) on average for a one-bedroom apartment ranging from 570 to 732 sq ft.

Liv on Sophia at 14 Adis Road is a freehold development with 64 two-bedroom units. The units, from 527 sq ft, are expected to be priced from $2,500 psf. Developer Roxy-Pacific Holdings aims to hold a soft launch at the end of this month or early next month.

The mixed-development King Albert Park Residences at King Albert Park is expected to launch in the next few weeks. It is near Bukit Timah Shopping Centre and Bukit Timah Plaza and the upcoming King Albert Park and Beauty World MRT stations. The freehold seven-storey project has 142 units and 107 retail shops. Agents said prices are expected to begin from $2,000 psf for the smallest residential unit, which is about 484 sq ft.

The 380-unit Stratum in Pasir Ris will be launched today with units priced at $900 psf on average. The 99-year leasehold development is opposite Elias Mall and near the upcoming Singapore University of Technology and Design.

Buyers looking for a home away from the city might like to check out the 616-unit condominium Jewel at Buangkok, a two-minute walk from Buangkok MRT station. Its launch is expected in coming weeks.A one-bedder starting from 463 sq ft is expected to go from $1,000 psf.

The 104-unit Ferra in Leonie Hill in District 9 still has 22 flats available from the 30 released recently. A 732-sq ft unit is priced at $3,160 psf.

Register with me to be updated of above new launches

Source: The Straits Times –18 May 2013

Keppel Land pricing Corals units at $1800 - $3000 psf

2013-05-17T16:00:00.000+08:00

Keppel Land is said to be pricing the initial 100 apartments at its Corals at Keppel Bay condo at between $1,800 psf and $3,000 psf.

The project - being developed on a site with 99-year leasehold tenure starting February 2007 - has a total of 366 units in 11 blocks between four and 10 storeys high.

Nearly 45 per cent of the units are one and two-bedders. Corals at Keppel Bay will have one, two, three and four-bedroom apartments sized between 600 sq ft and 3,600 sq ft in addition to eight penthouses (4,800 sq ft to 7,800 sq ft).

BT understands that for the 100 apartments in the initial batch that will be previewed today, absolute prices start from $1.31 million for a 624 sq ft one-bedder (reflecting a unit price of $2,100 psf).

The priciest apartment is said to cost around $10.7 million for a four-bedrom deluxe unit of nearly 3,600 sq ft. This works out to around $3,000 psf for the unit, which has a full waterfront view.

Register your Interest for Corals @ Keppel Bay

Over in Pasir Ris, Elitist Development - controlled by the Lim family behind industrial developer Sin Soon Lee - has begun sales at the Stratum condo. The average price in the 99-year leasehold project is $900 psf.

The developer has released some 170 units, or nearly half of the project's 380 units. Absolute prices are said to start from around $540,000 to $550,000 for a studio unit. Stratum has studio units, one to five-bedroom apartments, penthouses (with three to five bedrooms) and four-bedroom dual key units.

Units span from 432 sq ft for a studio unit to 2,446 sq ft for a five-bedroom duplex penthouse.

The five-storey condo will have 14 blocks. Elitist Development is building the project on a site at the corner of Elias Road and Pasir Ris Drive 3 that it bagged at a state tender in April last year for $472 per square foot per plot ratio (psf ppr).

Last month, developers' sales halved to 1,375 private homes from the record 2,793 units in March - mainly due to a dearth of big project launches. The 1,158 private homes that developers released last month was just a third of March's 3,489 units, according to data from the Urban Redevelopment Authority released on Wednesday.

Generally, property consultants expect sales in May to come in at below 2,000 units - given that most projects scheduled for release this month are smallish.

Source: Business Times –17 May 2013

Five plots released for sale set to yield 2,700 homes

2013-05-16T17:04:00.003+08:00

Five plots released for sale by the government yesterday could yield more than 2,700 homes. All are 99-year leasehold plots.

The sites were launched by the Urban Redevelopment Authority (URA) and the Housing and Development Board (HDB) as part of the Government Land Sales (GLS) programme for the first half of the year.

One site, parcel B at Tampines Avenue 10, was put up for sale under the confirmed list. The remaining four plots, at Toa Payoh Lorong 6, Siglap Road, Geylang East Avenue 1 and Prince Charles Crescent (parcel B), will be made available under the reserve list.

For the Tampines Avenue 10 parcel, analysts see a modest demand of three to six bidders with a winning bid in the range of $400 to $470 per square foot per plot ratio (psf ppr).

The site has a maximum gross floor area (GFA) of about 515,000 sq ft and can yield about 530 units.

Consultants noted that the Tampines plot was not near an MRT station, and sits among several developments that have either been launched for sale or will soon be.

For the Toa Payoh Lorong 6 site, analysts foresee five to 12 bidders, with the winning bid at $680 to $920 psf ppr if the plot is triggered for sale.

The plot has a maximum GFA of about 458,000 sq ft and can yield about 550 homes. Market watchers liked its proximity to Braddell MRT station and its location in a mature estate and near schools such as CHIJ Toa Payoh and Pei Chun Primary School.

For the Siglap Road site, analysts expect upwards of seven bids, with a potential winning bid that ranges from $550 to $860 psf ppr if it is triggered for sale.

The site has a maximum GFA of 737,000 sq ft and can yield around 780 units.

Consultants also cited its location near East Coast Park and Victoria School, as well as the fact that the future development can offer sea views.

For the land parcel at Geylang Avenue 1, analysts highlighted that it is near Aljunied MRT station.

The top bid could be around $570 to $690 psf ppr, going by their estimates. The site has a maximum GFA of 188,000 sq ft that can yield 215 homes.

For the land parcel at Prince Charles Crescent, there could be three to five bidders with the winning bid between $850 and $1,070 psf ppr.

Some 650 homes could be yielded from this plot, which has a maximum GFA of 564,000 sq ft, if it is triggered for sale.

The tender for Tampines Avenue 10 closes at noon on July 2.

Source: Business Times –16 May 2013

HDB priority scheme still drawing young families

2013-05-15T14:00:00.000+08:00

HDB priority scheme are still drawing married couples with children below 16, capitalising on the Housing Board's recent initiative to help them own a home.

At the latest sales launch in March, first-timer households under the Parenthood Priority Scheme (PPS) applied to take up 32 per cent of the Build-To-Order (BTO) flats on offer, said an HDB spokesman yesterday.

The exercise, which offered 3,898 flats in non-mature estates Sengkang, Punggol and Bukit Batok, attracted more than 12,000 applicants in all. The likelihood is that almost all of the PPS applicants will get a chance to select a flat.

In the previous exercise in January, when flats in non-mature estates were offered, PPS applicants also registered for 30 per cent of the available flats.

In the next sales launch slated for later this month, when the HDB plans to offer some 4,850 BTO flats in Choa Chu Kang, Hougang, Jurong West, Sembawang and Woodlands, and around 3,000 balance units, the response from PPS applicants is expected to be even hotter.

Analysts point to two key reasons.

First, the scheme will be extended to married couples who are expecting a child. The other reason is that balance flats, which are considered more attractive as they are either built or closer to the completion date, will also be offered.

Under the scheme, 50 per cent of balance flats will be reserved for PPS applicants. In the case of BTO flats, the quota is 30 per cent.

The PPS, which gives priority to couples with young children and who are buying a flat for the first time, was launched at the start of the year.

It is part of the Government's push to encourage marriage and parenthood amid Singapore's declining birthrate.

This priority, said National Development Minister Khaw Boon Wan in March, was needed as couples who have yet to marry had, under the fiancee scheme, been making more than half of the first-timer applications.

This was making it harder for couples who already had children to get flats. Among first-timers in the March exercise, 58 per cent of applicants were unmarried.

Source: The Straits Times –15 May 2013

Banks' property exposure makes up about 28% of their non-bank loans

2013-05-14T15:55:00.001+08:00

Banks' property exposure makes up more than a quarter of their non-bank loans, it was revealed yesterday.

As of March 2013, property-related exposures accounted for 28 per cent of banks' total outstanding non-bank loans, Monetary Authority of Singapore Chairman Tharman Shanmugaratnam said in a written reply.

These exposures comprised housing loans at 17 per cent, and loans to property developers and construction companies, at 11 per cent. Of the housing loans granted, more than 70 per cent were for owner-occupation.

The series of measures taken over the last three years to cool the property market, especially the more stringent caps on loan-to- value (LTV) ratios, has provided a buffer for banks should property prices decline, he said.

The average LTV ratio for outstanding housing loans stood at a reasonable 48 per cent as of Q1 2013, he said.

In comparison, average LTV ratios for housing loans for Canada, Australia and South Korea stood at 55 per cent, 50 per cent and 48 per cent respectively in 2012.

Mr Tharman, who is also Deputy Prime Minister and Finance Minister, also said the impact of a rise in interest costs on financial institutions (FIs) could affect them in two ways.

First, the net interest margins may rise or fall, depending on whether interest income from an FI's assets increases by more or less than the interest expense on its liabilities.

A rough estimate, based on the local banks' 2012 annual reports, showed that the impact of a one percentage point increase in interest rates on the net interest income of the three banks is about $400 million.

It is about 10 per cent of the local banks' net interest income in 2012. While the impact on the FIs' net interest income may therefore be either positive or negative, there is a second, important way in which banks may be adversely impacted.

"The overall loan quality of an FI could be impacted if borrowers facing higher interest costs encounter difficulty servicing their loans, or default on their loans," he said. The default rate currently remains very low, at well below one per cent for housing loans.

"However, a low default rate is to be expected during years when property prices are on the upswing," he noted.

MAS conducts regular stress tests on banks and insurance companies to assess their ability to withstand adverse financial and economic shocks, including a sharp correction to property prices.

The most recent stress test conducted last year showed that all major financial institutions would continue to maintain adequate capital buffers above MAS' regulatory requirements under the prescribed stress scenarios, he said.

"We will continue to watch the property market closely, and take steps when necessary to avoid a bubble that could hurt borrowers and destabilise our financial system," said Mr Tharman.

Source: Business Times –14 May 2013

Non-landed private home owners profit from resales

2013-04-30T17:39:00.000+08:00

Non-landed private home owners pocketed a total of $107 million in gross profit, from quick resales over the five quarters of Q1 2012 to Q1 2013.

Noting that the property market has "rebounded very strongly", high property prices - the overall private residential price index is now 60 per cent above the trough in 2009 - contributed largely to the profit in this sector, which includes private condominiums and apartments but excludes Housing and Development Board (HDB) executive condominiums.

In the current bull run, newly completed homes that were resold upon receipt of Temporary Occupation Permit (TOP) yielded good returns for purchasers.

Between Q1 2012 and Q1 2013, a total of 103 projects obtained TOP, according to data from the Urban Redevelopment Authority (URA) and the Building and Construction Authority (BCA). Out of these, 68 projects had transactions in the same quarter upon completion, making up a total of 348 transactions.

Only one out of the 348 transactions was unprofitable, which the report describes as a "one-off occurrence".

The report also highlighted that, over the same period, each newly completed unit yielded an average return of 33 per cent. The most profitable non-landed private residential segment was the Outside Central Region (OCR), which made an average profit of 41 per cent, compared to 31 per cent for the Rest of Central Region (RCR) and 25 per cent for the Core Central Region (CCR).

In all three regions, however, shoebox units, measuring 50 sq m or less, were less profitable than their non-shoebox counterparts.

Contrary to common belief, profitability of shoebox units underperformed the general market across all segments. Average profitability per unit was $132,000 or 25 per cent in the last five quarters, lower than that of the overall market.

Over the last five quarters, average gross profitability peaked at Q3 2012, when owners saw an average return of 43 per cent per unit. However, since then, average profitability has been falling as the rate of appreciation in private home prices moderated, and such profitability may not be repeated in the future.

Ultimately, the report expressed optimism for the future of the market, referring to sustained foreign capital inflow, low interest rates, and "record land prices" in recent Government Land Sales (GLS).

Source: Business Times –30 April 2013

For $2 million you can get a freehold landed home

2013-04-22T17:22:00.002+08:00

Many home hunters may assume that landed freehold property - the rarest of land titles in Singapore - is way out of their reach.

Not necessarily so.

Fairly small freehold plots in Geylang and MacPherson have been selling for about the price of a suburban condominium.

The 10 cheapest freehold landed properties were sold for under $2 million apiece last year, a check with the Urban Redevelopment Authority's real estate information system (Realis) showed.

The cheapest freehold landed property sold last year was a terrace house with a land area of 1,841 sq ft, on Westerhout Road in the central district of Geylang, selling for just $720,000 or $392 per sq ft (psf).

Another terrace house with a land area of 893 sq ft in MacPherson Garden Estate was sold for $1,133,000, or $1,276 psf, in September last year.

According to Realis, the second cheapest freehold landed home sold last year was in the prime location of District 10. The terrace house on King's Road was sold for $800,000. But analysts suggested that the transaction was unlikely to have been at market value.

The last transaction in the neighbourhood five years ago was for $2.5 million, while another landed home on King's Road was sold for $1.87 million in 2007.

Resale prices of freehold landed homes in prime districts rose 7.3 per cent last year.

In contrast, resale prices of freehold condo units in prime districts rose a milder 2.3 per cent in the same period. Suburban leasehold condominium prices rose 3.4 per cent last year, down from a jump of 8.4 per cent in 2011.

Analysts pointed out that much of the value of landed properties lies in the land, rather than the dwellings built on them.

Freehold landed properties in MacPherson Garden Estate are being marketed at $1.6 million to $1.8 million. The plots are between 883 sq ft and 1,050 sq ft.

Other reasons that some landed homes are sold at a lower price are the age, condition and location of the property.

Experts warned that buyers should take note of the amount of money they need to fork out to restore and maintain the property.

And those shopping for private leasehold landed properties should mind the remaining lease.

Source: The Straits Times –20 April 2013

Developer sales hit new highs on pent-up demand

2013-04-16T15:48:00.001+08:00

Developer sales to moderate over the next few months after they hit a record 2,793 units in March, nearly four times the 712 units sold in February, analysts said.

The record figure was due to pent-up demand arising from developers holding back launches in February in the aftermath of January's cooling measures and also due to the Chinese New Year festive period.

Last month's primary market sales figure of 2,793 private homes (excluding executive condos) is the highest since the Urban Redevelopment Authority began releasing developers' monthly sales data in June 2007. The last time the figure came close to this was in July 2009, when developers moved 2,772 units.

Developers released a record 3,489 private homes last month (up from just 261 in February).

In addition to more sensible pricing, the attractive locations of projects - many near MRT stations - added to the appeal of launches.

A recovery in permanent residents' share of non-landed private home purchases is found across primary and secondary markets combined, to 18.7 per cent in March. In February, the share had slipped to 14.3 per cent from 19.8 per cent in January and 20.6 per cent in December. PRs were slapped with 5 per cent ABSD on their first residential property purchase effective Jan 12.

For the first quarter, developers have sold 5,533 private homes excluding ECs, higher than the 4,353 units in the preceding quarter (based on developers' monthly sales data submissions to the URA).

However, in sharp contrast, transactions of completed private homes in the resale market plunged to 1,838 in Q1 from 3,466 in Q4 last year, going by caveats data.

Developers' top selling project in March was D'Nest in Pasir Ris, with 699 units sold at a median price of $963 per square foot. A seasoned property agent reckons that prior to January's cooling measures, a new project in the area could have been expected to be priced around $1,050-1,100 psf on average.

Outside Central Region (OCR), where mass-market homes are located, continued to hog the limelight, accounting for nearly 65 per cent or 1,814 of the 2,793 private homes sold in March, followed by Rest of Central Region (RCR), with a 29.4 per cent share.

Reflecting the steady price appreciation, islandwide, units costing up to $1,000 psf made up just 24.2 per cent of the March sales.

In contrast, back in July 2009, such units accounted for the lion's share or 57.6 per cent of the 2,772 units sold.

Developers have been minting smaller units while raising per square foot prices over the past four years. Based on caveats lodged for the purchase of non-landed private homes (excluding ECs) in RCR and OCR sold by developers, the median price has risen almost 92 per cent, from $613 psf in Q1 2009 to $1,176 psf in Q1 2013.

Over the same period, the average unit size has shrunk 26.1 per cent, from 1,195 sq ft to 883 sq ft while the median price quantum has escalated 46.5 per cent, from $696,585 to $1.02 million.

Based on URA's data released yesterday, developers sold 279 ECs in March, up from 209 in February. For the first quarter, developers moved 744 ECs, down from 1,682 in the preceding quarter.

Source: Business Times –16 April 2013

Striking a new balance on flat prices

2013-04-16T10:00:00.000+08:00

Striking a new balance between keeping new flats affordable yet fulfilling Singaporeans' desires for their home values to rise, is what the Government is trying to find, said Minister in the Prime Minister's Office, Grace Fu, yesterday.

For decades, new flat prices were pegged to resale ones, so that home owners' asset values would grow, she said.

"If we were selling Build-To-Order flats at a much lower price than resale flats, you would find people turning away from resale and then flat prices would be less able to rise," she explained to Jalan Kayu residents at a dialogue.

But this peg, which was removed in 2011, also made the price of new flats spiral out of young Singaporeans' reach as prices in the resale market spiked 80 per cent in the last six years.

The opposing concerns within a family exemplified the Government's challenge, Ms Fu pointed out. "Sometimes we hear parents say, flats should be cheaper so my son or daughter can buy. But don't depress (prices) so much because I want my house (value) to stay high."

She was responding to a resident who wondered if resale flat prices would depreciate, after National Development Minister Khaw Boon Wan's comment last week that the HDB should be a price-setter in public housing.

Residents also aired municipal concerns, such as noise and environmental pollution in Serangoon North due to the Keppel Digihub and a construction site under another company.

While Keppel Digihub will install shutters to address the issue of soot, Ang Mo Kio GRC MP Intan Azura Mokhtar said grassroots leaders are finding it harder to get the construction firm to stop piling works after 10pm as it is behind schedule.

Source: The Straits Times –14 April 2013

Radical idea: Remove income ceiling for new Housing Board flats

2013-04-15T20:00:00.001+08:00

Not one to shy away from radical ideas for housing policy, National Development Minister Khaw Boon Wan floats another talking-point suggestion: Do away with the income ceiling for new Housing Board flats.

If he had his way, he would remove the income ceiling for a Build-To-Order (BTO) flat to give everyone a shot at living in them, Mr Khaw said in his wide-ranging interview.

Noting that HDB flats are as essential to the Singaporean way of life as national service and hawker food, he said: "I like the idea of every Singaporean, rich or poor, having a stint in HDB living... and not growing up your whole life in a bungalow, for example."

Mr Khaw - who stressed it was just his personal opinion that he was throwing in for discussion - was explaining the effect of the income ceiling on HDB's market share. About 80 per cent of residents in Singapore live in an HDB flat.

The higher the income ceiling qualification to buy one, the more people can qualify for a flat.

A household cannot earn more than $10,000 a month to qualify for a BTO flat, and not more than $12,000 for an executive condominium.

When Mr Khaw moved over from the Health Ministry to his new post in 2011, he raised both income ceilings that very year from $8,000 and $10,000 so that more young couples could qualify for new flats.

The $8,000 limit had been kept unchanged since 1994 by his predecessors in a bid to naturally shrink HDB's share of the property market as incomes rose.

"The ceiling was not adjusted because at that time, they thought we should not expand any more of our market share," he recalled. "But I came in, I adjusted (because) I have a slightly different view."

This is that living in HDB flats would give people more chances to interact with others of different races and incomes, although the more disadvantaged would still receive a higher housing grant from the Government.

But Mr Khaw is quick to clarify that this sentiment does not mean that the HDB should aim to provide 100 per cent of Singaporeans' housing needs.

Referring to the current 80:20 split between public and private housing, Mr Khaw said: "Do we need to grow further? I don't think so. That we leave to the market."

But his philosophy is that "if a rich man's kid wants to apply for a BTO flat, provided he stays the five-year minimum occupation period, there's nothing wrong with that to me".

For his part, Mr Khaw said of his suggestion: "That's one view. Whether ultimately we decide that it's good, we'll see. "We can discuss it with Singaporeans."

Source: The Straits Times –13 April 2013

HDB should set the price of public housing: Khaw

2013-04-15T20:00:00.000+08:00

HDB should set the price of public housing, rather than take its cue from the resale market. Given that Housing & Development Board (HDB) is the chief supplier of homes.

No longer will HDB let "the tail wag the dog" as it did for decades when it used a market-based approach to price its Build- To-Order (BTO) flats, said National Development Minister Khaw Boon Wan.

This resulted in soaring new flat prices as the resale market spiked 80 per cent over the last six years.

Mr Khaw put a stop to this by "delinking" BTO prices from the resale market after he took over the housing portfolio in 2011.

"(Being) led by the private sector (is like) a tail wagging the dog. We should be the price-setter, not be the price-follower... The social objective is to ensure home ownership and affordability," he said in an exclusive interview with The Straits Times.

Even before he stepped into this job, he was clear about wanting to make use of HDB's dominant market leadership position to influence prices, he said, adding: "I can't set market prices in the private sector, but I can influence them."

He dismissed worries that delinking new flat prices from the resale market would mean indefinitely increasing the subsidy that taxpayers give to HDB buyers, as the property market moves in cycles and "what goes up must come down".

HDB pays market rate for its land and construction costs. Hence, when it prices flats below a market rate, it incurs a housing deficit - now in the region of about $1 billion a year, including other costs such as upgrading.

In the wide-ranging interview ahead of housing-themed sessions of Our Singapore Conversation, Mr Khaw also spoke of his plans for the future.

In lieu of the old market-based approach, he favours pricing new flats in non-mature estates at about four times the annual median income of its applicants - 30 per cent lower than the current 5.5 times.

This will be implemented "soon (as) it's not something for the next century", he said. But how it will be instituted without affecting existing flat owners' asset values, as he has promised, is the tricky part - and what he wants Singaporeans to debate in the national conversation.

A four-year salary cycle is reasonable, he said, because that was what flats cost before the bull run of the last six years.

Anything less than that, he noted, might put undue strain on the state.

Mr Khaw lamented that, judging by packed showrooms, it has not "sunk in" for Singaporeans that the era of huge capital gains from property is at an end, with slower economic and thus wage growth in the years ahead.

While property prices have moderated across the board in the past year, "there is still scope to bring (prices) down to minus (growth rates) for some segments", he said.

Despite breaking with the policies of his predecessor, Mr Khaw defended Mr Mah Bow Tan, who helmed the National Development portfolio from 1999 until he left Cabinet in 2011. He noted that in the late 1990s, Mr Mah faced a housing crash, and was heavily criticised for "ghost towns" of empty flats - a stark contrast to the supply crunch of the last few years. "If I came in four years ago," said Mr Khaw, recalling a period of economic uncertainty after the United States mortgage crisis, "my policies may be the same as his".

"When I came in, it was over and a strong recovery was being experienced, so I could do these things. Policies depend on the time. What's important is nimbleness and don't be too stubborn."

Industry players said his new approach would be popular, as the old pricing model seemed to make buyers pay more for the country's success. But they said it had to be in tandem with an adequate supply of new flats.

If there is another supply crunch like that of the last few years, BTO buyers will come into a windfall as resale prices pull away from those for new flats.

HDB has rolled out 70,000 new flats since Mr Khaw took over.

Source: The Straits Times –13 April 2013