Tuesday, February 28, 2006
Standard Chartered, OCBC raise home mortgage rates
Two more banks have joined their competitors in raising mortgage rates.
Standard Chartered Bank says it will increase its Singapore mortgage rates by between 75 and 150 basis points.
Meantime, local lender OCBC Bank has also raised its average mortgage rates by 50 basis points.
Both banks are citing the higher cost of funds in the interbank market as the main reason for the move.
But they are not alone.
Just last week, HSBC hiked its mortgage rate by 80 basis points, while DBS and UOB increased theirs by 50 basis points.
Home mortgage rates have been climbing in Singapore in recent weeks.
Some observers say that may have an impact on the residential property market, which has been improving in the last few quarters. - CNA/ch
Standard Chartered Bank says it will increase its Singapore mortgage rates by between 75 and 150 basis points.
Meantime, local lender OCBC Bank has also raised its average mortgage rates by 50 basis points.
Both banks are citing the higher cost of funds in the interbank market as the main reason for the move.
But they are not alone.
Just last week, HSBC hiked its mortgage rate by 80 basis points, while DBS and UOB increased theirs by 50 basis points.
Home mortgage rates have been climbing in Singapore in recent weeks.
Some observers say that may have an impact on the residential property market, which has been improving in the last few quarters. - CNA/ch
// posted by Shajahan @ 5:39 PM 
Monday, February 20, 2006
Lower-income workers welcome housing grants for flat purchases
Low income-earners have welcomed the measures announced in the Budget on Friday to help first-timers buy their own flats.
They can receive a housing grant of up to twenty thousand dollars.
Property agents say that the measure will certainly help this group get affordable housing.
41-year-old Arivuazahagan and his family have been living in a one-room rental flat for the past 19 years.
Although he pays slightly more than S$40 to rent the flat every month, he wants to buy his own place.
But the sole breadwinner of the family who earns less than S$1,500 a month as a security guard has been waiting for his elder son to complete his national service before he buys a flat.
He said: "I am only waiting my sons to be stable. When they finish NS, they can work and get some money so my CPF can buy house. If I want to buy house, at least 2 to 3 persons work then it is comfortable."
With the new housing grant that the government has announced, Mr Arivuazahagan will stand to receive up to S$60,000 - the maximum grant of S$20,000 as he's earning below S$1,500 a month - and another S$40,000 if he's buying a resale flat near his parents.
And he is already looking forward to a three-room flat so that his sons can each have a room of their own.
A better option for him, say property agents, is to buy a new two-room flat that the government is planning to build.
Chris Koh, Director, Dennis Wee Properties, said: "First a 2-room flat I foresee HDB will price it at about S$70,000. With a S$20,000 grant added on, means effectively I pay about S$50,000 for that flat so S$50,000 if I were to divide it again, maybe over a 20-year loan and that will result in an instalment of about S$200. It's definitely payable because with a S$1000 salary, assuming that we are talking about the age group of 35-45 with a contribution of 20-30 percent to the CPF account, then I'll have sufficient instalments so that may be a better option for someone with lower income."
Alternatively, Mr Arivuazagahan could also consider a 2-room resale flat that's available in the market to get maximum benefits from the grants.
Under current regulations, first-time buyers of resale flats are eligible for the grant of $30,000 or $40,000 if the resale flat is near his or her parents.
The grants are not eligible for new flats.
There are currently 6,294 two-room flats that are currently owned by Singaporeans, with another 23,057 rented out in the market.
Mr Koh said: "Two-room flats are very popular. In fact not a lot of people want to sell them. The people who own them are of a higher age group. In fact when there's a flat to sell, we get a lot of calls from retirees. Retirees who downgrade, pay the flat fully and not have any loans. You do see people in two-room flats in areas like Bedok and they are very sought after. You don't see them coming up for sale so often but when they are up for sale, we get a flood of calls for that flat. It's quite easy to sell because there's demand for it."
Property agents suggest that the government should look into allowing the new housing grant to be used to pay the monthly instalment of their flats and not just as down payment.
Mohamed Ismail, CEO, Propnex, said: "For the existing grant of $30,000 to $40,000, the current requirement here is that one has to utilise towards all the down payment. Leaving it in the CPF to pay towards the instalment will definitely help the lower income, especially one who's earning below $1,000."
"He does not want to be burdened by the monthly commitment and if this top up can be used towards the monthly instalment, then it will again free him from other commitments or whatever costs of living that one has to take care of."
The new initiative to help low wage earners buy their own flat is expected to benefit some 6,000 households per year.
It is part of the government's aim to help up to 90 percent of Singaporeans to own their homes. - CNA/ch
They can receive a housing grant of up to twenty thousand dollars.
Property agents say that the measure will certainly help this group get affordable housing.
41-year-old Arivuazahagan and his family have been living in a one-room rental flat for the past 19 years.
Although he pays slightly more than S$40 to rent the flat every month, he wants to buy his own place.
But the sole breadwinner of the family who earns less than S$1,500 a month as a security guard has been waiting for his elder son to complete his national service before he buys a flat.
He said: "I am only waiting my sons to be stable. When they finish NS, they can work and get some money so my CPF can buy house. If I want to buy house, at least 2 to 3 persons work then it is comfortable."
With the new housing grant that the government has announced, Mr Arivuazahagan will stand to receive up to S$60,000 - the maximum grant of S$20,000 as he's earning below S$1,500 a month - and another S$40,000 if he's buying a resale flat near his parents.
And he is already looking forward to a three-room flat so that his sons can each have a room of their own.
A better option for him, say property agents, is to buy a new two-room flat that the government is planning to build.
Chris Koh, Director, Dennis Wee Properties, said: "First a 2-room flat I foresee HDB will price it at about S$70,000. With a S$20,000 grant added on, means effectively I pay about S$50,000 for that flat so S$50,000 if I were to divide it again, maybe over a 20-year loan and that will result in an instalment of about S$200. It's definitely payable because with a S$1000 salary, assuming that we are talking about the age group of 35-45 with a contribution of 20-30 percent to the CPF account, then I'll have sufficient instalments so that may be a better option for someone with lower income."
Alternatively, Mr Arivuazagahan could also consider a 2-room resale flat that's available in the market to get maximum benefits from the grants.
Under current regulations, first-time buyers of resale flats are eligible for the grant of $30,000 or $40,000 if the resale flat is near his or her parents.
The grants are not eligible for new flats.
There are currently 6,294 two-room flats that are currently owned by Singaporeans, with another 23,057 rented out in the market.
Mr Koh said: "Two-room flats are very popular. In fact not a lot of people want to sell them. The people who own them are of a higher age group. In fact when there's a flat to sell, we get a lot of calls from retirees. Retirees who downgrade, pay the flat fully and not have any loans. You do see people in two-room flats in areas like Bedok and they are very sought after. You don't see them coming up for sale so often but when they are up for sale, we get a flood of calls for that flat. It's quite easy to sell because there's demand for it."
Property agents suggest that the government should look into allowing the new housing grant to be used to pay the monthly instalment of their flats and not just as down payment.
Mohamed Ismail, CEO, Propnex, said: "For the existing grant of $30,000 to $40,000, the current requirement here is that one has to utilise towards all the down payment. Leaving it in the CPF to pay towards the instalment will definitely help the lower income, especially one who's earning below $1,000."
"He does not want to be burdened by the monthly commitment and if this top up can be used towards the monthly instalment, then it will again free him from other commitments or whatever costs of living that one has to take care of."
The new initiative to help low wage earners buy their own flat is expected to benefit some 6,000 households per year.
It is part of the government's aim to help up to 90 percent of Singaporeans to own their homes. - CNA/ch
// posted by Shajahan @ 11:13 AM
Additional housing grants, 2-room flats to help low-wage workers
SINGAPORE : Low-wage workers will get an additional housing grant when they buy an HDB flat.
They can also look forward to buying 2-room flats, which will be built specifically for them.
Prime Minister Lee Hsien Loong said this in his Budget statement on Friday.
Work pays - and according to the government, in more ways than one. This is especially so for older, low-wage workers.
When it comes to housing, the government will help them become owners - by giving them better subsidies and housing options.
First-time buyers with a household income of up to $3,000 a month will be entitled to an additional CPF grant ranging from $5,000 to $20,000.
Those earning less than $1,500 will get the maximum amount of $20,000.
An estimated 40 percent of first-time buyers, or about 6,000 households, will be covered by this change.
But in line with the Workfare principle, at least one of the flat buyers must have worked at least two years before the flat purchase.
HDB will also build 2-room flats to provide a more affordable housing option for this group.
Other initiatives to help low-wage workers involve expanding job opportunities and better social support to encourage them to work.
For example, over the next three years, the government aims to ramp up the Job Re-creation Scheme to re-create 10,000 jobs a year.
$40 million will be allocated for this.
An additional $30 million will be set aside to help companies hire and re-employ older workers through the ADVANTAGE! scheme over the next two years.
$100 million is vested in the Workforce Skills Qualification System over three years to help workers progress in their skills.
Another $30 million has been set aside for 45,000 low-wage workers to learn the basic IT and literacy skills they need for higher paying jobs.
The government will also top up the Lifelong Learning Fund by $100 million to $2.1 billion.
To encourage low-wage workers to go out and work, the government will provide additional childcare and student care subsidies under a newly set-up Work Support Programme.
Lower-income households can also look forward to continued rebates off their utilities, and Service & Conservancy Charges.
The government will also top up the ComCare Fund to $600 million, up from the current $500 million.
Mr Lee said: "Growing our economy is only one aspect of making Singapore our best home. We must extend a helping hand to those who face difficulty coping with globalisation and change.
"We must help low-income households to improve their prospects and older Singaporeans to live full and active lives. And we must invest in our young, who are the hope of our future.
"This will strengthen our bonds and assure every Singaporeans of a brighter future, as we create our best home in Singapore." - CNA/de
They can also look forward to buying 2-room flats, which will be built specifically for them.
Prime Minister Lee Hsien Loong said this in his Budget statement on Friday.
Work pays - and according to the government, in more ways than one. This is especially so for older, low-wage workers.
When it comes to housing, the government will help them become owners - by giving them better subsidies and housing options.
First-time buyers with a household income of up to $3,000 a month will be entitled to an additional CPF grant ranging from $5,000 to $20,000.
Those earning less than $1,500 will get the maximum amount of $20,000.
An estimated 40 percent of first-time buyers, or about 6,000 households, will be covered by this change.
But in line with the Workfare principle, at least one of the flat buyers must have worked at least two years before the flat purchase.
HDB will also build 2-room flats to provide a more affordable housing option for this group.
Other initiatives to help low-wage workers involve expanding job opportunities and better social support to encourage them to work.
For example, over the next three years, the government aims to ramp up the Job Re-creation Scheme to re-create 10,000 jobs a year.
$40 million will be allocated for this.
An additional $30 million will be set aside to help companies hire and re-employ older workers through the ADVANTAGE! scheme over the next two years.
$100 million is vested in the Workforce Skills Qualification System over three years to help workers progress in their skills.
Another $30 million has been set aside for 45,000 low-wage workers to learn the basic IT and literacy skills they need for higher paying jobs.
The government will also top up the Lifelong Learning Fund by $100 million to $2.1 billion.
To encourage low-wage workers to go out and work, the government will provide additional childcare and student care subsidies under a newly set-up Work Support Programme.
Lower-income households can also look forward to continued rebates off their utilities, and Service & Conservancy Charges.
The government will also top up the ComCare Fund to $600 million, up from the current $500 million.
Mr Lee said: "Growing our economy is only one aspect of making Singapore our best home. We must extend a helping hand to those who face difficulty coping with globalisation and change.
"We must help low-income households to improve their prospects and older Singaporeans to live full and active lives. And we must invest in our young, who are the hope of our future.
"This will strengthen our bonds and assure every Singaporeans of a brighter future, as we create our best home in Singapore." - CNA/de
// posted by Shajahan @ 11:11 AM
Tuesday, February 14, 2006
Ethnic Integration Policy on public housing vital for social stability: Mah
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The Ethnic Integration Policy on public housing estates is an important pillar for social stability in Singapore.
National Development Minister Mah Bow Tan says putting a racial quota on flats may have inconvenienced some flat sellers, but it's a small sacrifice Singaporeans must make to safeguard racial harmony.
He was speaking in parliament on Monday.
About 300 flat sellers and buyers are rejected each year because they don't fulfil the ethnic quota in their housing estates.
But the Minister said these numbers are small - less than 1% of total annual HDB transactions.
Since 1989, the HDB has put in place the Ethnic Integration Policy to ensure a balanced mix of races within the public housing estates.
It aims to get people of different races to interact and foster social harmony.
The policy also broke up the racial enclaves in Singapore as towns see lower concentrations of a particular racial group.
And according to the HDB, only a quarter of the 162 housing estates have hit the ethnic quota limits, compared to nearly one third 16 years ago.
Speaking in parliament, Dr Amy Khor, MP for Hong Kah GRC, asked: "In the light of the Workers' Party manifesto, which seems to suggest that they're proposing to dismantle the ethnic integration quota because they feel that we've achieved a certain level of social integration, I would like to ask the minister in his own opinion if we ever can dismantle this ethnic quota that we can ever achieve a level of social integration where racial enclaves will not re-emerge."
In response, Mr Mah said that Workers' Party's Secretary-General Low Thia Khiang, who was absent at the time, would be a better person to answer the question.
Mr Mah also said: "Whatever the motivation is behind his manifesto, the consequences of following that path is really very dangerous and disastrous. It's like playing with fire."
He continued: "Racial harmony is not a given for Singapore. It's not a given for any multi-racial society but certainly for Singapore, we have had our experiences of racial riots in the 60s. And if you trace the history of public housing in Singapore, (you can see) the role that public housing has played in helping to create a much more integrated, a much more tolerant Singapore."
The issue of a need for the Ethnic Integration Policy emerged when the Workers' Party launched its manifesto which among other things, proposed scrapping the policy.
Several Ministers responded, calling it a dangerous idea as the ethnic quota policy is crucial to maintaining racial harmony. - CNA/ir
National Development Minister Mah Bow Tan says putting a racial quota on flats may have inconvenienced some flat sellers, but it's a small sacrifice Singaporeans must make to safeguard racial harmony.
He was speaking in parliament on Monday.
About 300 flat sellers and buyers are rejected each year because they don't fulfil the ethnic quota in their housing estates.
But the Minister said these numbers are small - less than 1% of total annual HDB transactions.
Since 1989, the HDB has put in place the Ethnic Integration Policy to ensure a balanced mix of races within the public housing estates.
It aims to get people of different races to interact and foster social harmony.
The policy also broke up the racial enclaves in Singapore as towns see lower concentrations of a particular racial group.
And according to the HDB, only a quarter of the 162 housing estates have hit the ethnic quota limits, compared to nearly one third 16 years ago.
Speaking in parliament, Dr Amy Khor, MP for Hong Kah GRC, asked: "In the light of the Workers' Party manifesto, which seems to suggest that they're proposing to dismantle the ethnic integration quota because they feel that we've achieved a certain level of social integration, I would like to ask the minister in his own opinion if we ever can dismantle this ethnic quota that we can ever achieve a level of social integration where racial enclaves will not re-emerge."
In response, Mr Mah said that Workers' Party's Secretary-General Low Thia Khiang, who was absent at the time, would be a better person to answer the question.
Mr Mah also said: "Whatever the motivation is behind his manifesto, the consequences of following that path is really very dangerous and disastrous. It's like playing with fire."
He continued: "Racial harmony is not a given for Singapore. It's not a given for any multi-racial society but certainly for Singapore, we have had our experiences of racial riots in the 60s. And if you trace the history of public housing in Singapore, (you can see) the role that public housing has played in helping to create a much more integrated, a much more tolerant Singapore."
The issue of a need for the Ethnic Integration Policy emerged when the Workers' Party launched its manifesto which among other things, proposed scrapping the policy.
Several Ministers responded, calling it a dangerous idea as the ethnic quota policy is crucial to maintaining racial harmony. - CNA/ir
// posted by Shajahan @ 10:06 AM