Looking To Buy Property In Singapore

Occupancy cap for rentals of 4-room, larger HDB flats to be reduced to 6 persons

From 1 May 2018, the occupancy cap for 4-room and larger HDB flats being rented out will be reduced to six persons, from the current maximum of nine persons, said the Housing Development Board (HDB) in a statement on Thursday (1 February).

“The changes seek to minimise disamenities caused by overcrowding, and to maintain a conducive living environment in our public housing estates,” said the HDB.

The new policy is in line with the Urban Redevelopment Authority’s (URA) cap of six persons for private residential properties which are rented out. This means that HDB flat owners renting out their flats or bedrooms to unrelated persons (who are not from the same family unit) will need to adhere to the new occupancy cap of six.

For 3-room and smaller flats, the cap remains unchanged at six persons and four persons, respectively.

The revised rule will take effect for new and renewal applications submitted from 1 May.

Currently, flat owners who intend to rent out their flat are required to seek HDB’s approval before the commencement of the tenancy.

Flat owners and rental commercial property tenants who plan to rent out their bedroom(s) and living quarters have to register within seven days from the start date of the tenancy. Owners of HDB commercial properties are not required to do so.

From 1 May, all flat owners, commercial property owners and tenants, are required to seek HDB’s approval before the commencement of the tenancy.

Source : http://www.hdb.gov.sg/cs/infoweb/press-releases/revised-occupancy-cap-for-renting-out-hdb-flats

Shorter, streamlined process for HDB resale transactions from next year.

The new HDB Resale Portal to be launched next year aims to shorten the resale transaction process by up to eight weeks, down from the current 16 weeks.
The Housing and Development Board (HDB) will launch a new resale portal to reduce the transaction time for buying and selling HDB flats, it announced on Thursday (Oct 19).

Minister for National Development Lawrence Wong had earlier announced in this year’s Committee of Supply debate that his ministry will leverage technology to streamline the transaction process for resale flats.

The $100 Billion City Next to Singapore Has a Big China Problem

If you are considering buying properties as investments in Iskandar, Johor, do be careful as there were just too much supply, therefore no resale market. Similarly, no tenants because of insufficient employment in the offices and factories.

A model of the Forest City development at the Country Garden showroom in Johor, Malaysia.

PHOTOGRAPHER: ORE HUIYING/BLOOMBERG

This report from Bloomberg say it all. Click here to read the report.

Although Singapore government implemented property cooling measures in February year 2010, properties here is still best buy as it is regulated and controlled. The only problem you face will be your loan. Can you hold the property for 3 years? If yes, no issue as you can sell off after 3 years without any extra tax ( SSD=Seller Stamp Duty ). See chart below.

New private home sales fall for 2nd month

As seen from The Straits Times, 16 June 2017:

New private home sales fall for 2nd month

Developers sold 1,024 homes (Excluding ECs) in May 2017, a fall of 34 per cent from 1,558 units in April. Developers only released 339 condo units in May, compared to 1,616 in April. However, buying sentiments has been positive with new sales exceeding 1,000 units for three consecutive months. Home buyers who have been sitting on the fence seemed to be getting back in the market.

CEO, PropNex Realty Mr Ismail Gafoor highlighted, “More consumers will come to a realisation that the market has bottomed out and prices are likely to inch upwards with strong land-bid prices we are witnessing.” He expects the number of new home sales transaction (Excl ECs to cross the 10,000 mark by end of 2017.

For more, read our press release at https://www.propnex.com/pressrelease/319

http://www.businesstimes.com.sg/real-estate/upbeat-mood-holds-sway-despite-drop-in-developer-sales-in-may

Former HUDC estate Eunosville sold for S$765 million in en-bloc deal

Privatised HUDC estate Eunosville, near the Eunos MRT Station, has been sold for S$765 million to MCL Land in what is the fourth en-bloc deal here this year.

Based on the sale price, it is the second-largest former HUDC estate to be sold collectively after Farrer Court, which was transacted at a record S$1.34 billion in 2007 to CapitaLand.

The price was much higher than the S$643 million to S$653 million the owners had asked for when the site was launched for tender in April.

The deal came on the heels of last week's sale of Rio Casa estate in Hougang and mixed-use development Goh & Goh Building in Upper Bukit Timah Road, and One Tree Hill Gardens in the prime District 10 last month.

Marketing agent OrangeTee said the sale price for Eunosville, with the addition of an estimated differential premium of $194 million, works out to a land cost of S$909 per square foot per plot ratio (psf ppr).

The differential premium is payable to the State to enhance the intensity of the site to a gross plot ratio of 2.8 as well as to top up the remaining lease term to 99 years.

The 330-unit Eunosville comprises 255 maisonettes over six residential blocks and four walk-up apartment blocks with 75 units.

Each owner stands to receive a gross sale price of S$2.25 million to S$2.41 million upon the successful completion of the sale, OrangeTee added.

Source From Here

Developers’ hunger for Singapore land is signing Property comeback

Developers’ hunger for Singapore land is adding to signs that the city’s housing market is making a comeback after three years of price declines.

As new home sales surge after an easing of property restrictions in mid-March, developers are becoming more aggressive in bidding at land auctions. On average, they’ve paid a 29 percent premium, the highest level in at least five years, according to broker Cushman & Wakefield Inc., which makes comparisons with the past prices of similar properties.

“Sentiment has changed,” said Christopher Tang, chief executive officer of Singapore at developer Frasers Centrepoint Ltd. “The general sense is that the market has bottomed out and like many of the developers in Singapore we are a bit landbank-starved -- we are keen to build our land bank.”

A land auction last month attracted a record 24 bidders, amid swelling demand from Chinese and Malaysian developers. Home buyers are snapping up units at developments like the Seaside Residences condominium, east of the city. New home sales more than doubled in April from a year earlier, a report on Monday showed, after a surge in March to the highest level in nearly four years.

With effect from 15 May 2017, the maximum number of unrelated occupants that may be accommodated in a property is six.

Private residential properties may be rented out to no more than six unrelated persons from Monday (May 15, 2017), according to a letter sent out to real estate agencies by the Urban Redevelopment Authority (URA) on Thursday (May 11, 2017).

The current cap is eight unrelated persons.

Existing tenancy agreements with seven or eight tenants will be allowed to run their course until May 15, 2019.

The new occupancy cap will apply after that regardless of whether the tenancy agreement expires after the implementation date, the letter stated.

The letter added that landlords must comply to the new rules or may be subjected to investigations.

The changes were passed in Parliament as part of the Planning (Amendment) Bill in February.

Previous reports have said apartments that are rented to more than six unrelated tenants will be treated as dormitories and would require URA's approval.

Find out more at URA website