www.shaproperty.com

Sep 30, 2006 From rental flats to own homes 900 households get their first homes, thanks to additional grants   HELP TO MOVE UP: Families earning $3,000 or less each month are eligible for housing grants, and get priority to buy two- or three-room flats if they have been living in rentals units for at least two years. -- THE NEW PAPER By Tan Hui Yee HOME to Madam Masnah Hassim, 28, is a one-room rental flat off Ganges Avenue. She has slept on the floor in such small flats all her life, because there was never any room for a bed. Later this year, she will move with her bus-driver husband, Mr Abdul Salim Malukumian, 32, into a flat they can call their own - one with a master bedroom and a proper bed. The couple are among the more than 900 low-income households which have so far been given additional housing grants this year to help them buy their first homes. Households earning $3,000 or less every month are eligible for these grants of between $5,000 and $20,000. The Housing Board has also helped these families by resuming the building of two- and three-room flats, and giving these families priority to buy some of these flats if they have been living in their rental units for two years or more. All in, the HDB has about 40,000 occupied rental flats on its register. Mr Abdul Salim brings home between $1,000 and $1,500 a month as the sole breadwinner. Madam Masnah does not work - she has to look after two nephews. She told The Straits Times in an interview: 'I've dreamt of having my own room, so that I can have some privacy with my husband.' That room is about to become a reality. The couple got a $20,000 grant last month which, together with the regular housing grant from the Government and their Central Provident Fund (CPF) savings, has put a $165,000 three-room resale flat in Telok Blangah within reach - without any cash upfront too. Her husband's CPF contributions will cover the $200 monthly mortgage. She said: 'I can't wait to move in, and to do renovations. You can't do much in rental flats.' The HDB, which released its annual report yesterday, said about three-quarters of the 900 low-income households who received the additional grants at the end of last month opted for resale flats. The remainder bought flats directly from the HDB. And about 85 per cent of these 900 went for three- and four-room flats. Meanwhile, the two- and three-room flats launched in Sengkang in July have pulled in 31 applications from rental-unit tenants under the priority scheme, the HDB said. At the briefing this week, the HDB was also asked whether it was looking into the illegal practice of buyers and sellers of resale flats colluding to under-declare the sale prices so the sellers need not return all sales proceeds into their CPF. HDB chief executive Tay Kim Poh said he did not think this practice was widespread on the resale market because of the system's safeguards and the risk of being fined and jailed for giving false information to the HDB. tanhy@sph.com.sg Copyright © 2006 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access

•  17
  New Members

• Financial professional
• Real estate
• Software for real estate professional
• Real estate article
• Real estate professional

Published September 30, 2006

HDB properties get individual valuations Move further fuels talk it's looking at Reit-based divestment By ARTHUR SIM (SINGAPORE) In reviewing its financial year 2005/2006, the Housing and Development Board has for the very first time conducted valuations of individual properties in its portfolio.   The move has further fuelled persistent market speculation that the public housing board is looking at ways to divest both its commercial and industrial property through a real estate investment trust. Income from rental, which includes rental from commercial and industrial property, accounted for $758 million or 23 per cent of HDB's income for the year. Speaking at a press briefing for the release of HDB's annual report earlier this week on Thursday, CEO Tay Kim Poh said: 'We will explore all the possibilities of divesting (commercial and industrial) properties and continue to review this.' Mr Tay, however, later qualified that there are no immediate plans to divest HDB's portfolio of properties. For the latest financial year, HDB reported a deficit of $1.4 billion, against a deficit of $824 million in the previous year. Mr Tay attributed this to provisions made for industrial property and mortgage loans. HDB's investment properties comprise industrial properties and commercial complexes. Impairment losses on its investment properties amounted to $714.6 million for the year. Previously, the impairment assessment was done on an overall portfolio basis. From FY05/06, HDB said it has 'refined the review and carried out the assessment on individual property basis for the first time'. It added that in its financial statements, assets are still at cost less allowance for depreciation and any impairment loss. HDB's income comprises mainly interest income from mortgage loans, rental from commercial and industrial properties, and car park charges. For FY05/06, income from interest fell to $1.53 billion, down from a previous $1.62 billion - a drop of 5.5 per cent. Income from rental, however, increased to $758 million from $690 million previously, or about 10 per cent. HDB manages 17,883 commercial properties which have an average occupancy of 97 per cent. It also manages 12,404 industrial properties, and allocated 937 industrial units during the year. About 2,750 tenants were relocated under the Industrial Redevelopment Programme, and HDB says the next phase of the programme will involve a pilot Design-and-Build tender for a proposed motor workshop development. HDB's car parks could also be a target for divestment. Income from car park charges increased by about 12 per cent to $365 million, from $326 million. Explaining the increase, HDB, which manages 674,319 lots, said that it has an arrangement with the Urban Redevelopment Authority for sharing car park coupon revenue based on an agreed ratio, subject to periodic review. Any coupon collection above or below the agreed share is refunded or claimed from the other party. However, there was a change in the ratio with a one-time adjustment in FY04/05 for the income in the past three years based on the new ratio, which resulted in a low figure for the income of FY04/05. In FY05/06, HDB also significantly reduced the number of unsold flats to about 6,000, down from about 9,000 a year ago. The number of new flats sold dropped to 10,100 from 14,914 in the previous year. Mr Tay said this was because new supply had been 'tightened'. The number of transactions in resale flats increased marginally to 31,300 from 31,199 units.

•  17
  New Members

• Financial professional
• Real estate
• Software for real estate professional
• Real estate article
• Real estate professional

Sep 30, 2006 'Not too good' response to reverse mortgage THE reverse mortgage scheme for HDB flats will take some time to win acceptance, because many Singaporeans still believe in leaving their flats to their children when they die, said HDB chief Tay Kim Poh this week. Insurer NTUC Income, the only company offering reverse mortgages for HDB flats now, reports that only 10 people have been offered loans under the scheme. 'Not too good' is how Mr Tay describes the response. He added: 'From our observation, a lot of Singaporeans would like to bequeath their flat to their children, so the idea of putting their flat up for reverse mortgage to generate income doesn't come naturally to most households, unlike in Britain and the United States. 'So we do think that it would take a while for such a scheme to take off.' In a typical reverse mortgage, an elderly person pledges his property for a sum of money, with which he buys an annuity that provides a regular monthly income. The HDB gave the green light for it recently to help older flat owners earn an income from their properties. Ms Melissa Yam, a senior manager at NTUC Income, said HDB flat owners who went for reverse mortgages took out loans of between $30,000 and $120,000. The flat owners, who were between 62 and 83 years old, mortgaged mostly three- to five-room flats. TAN HUI YEE Copyright © 2006 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access

•  17
  New Members

• Financial professional
• Real estate
• Software for real estate professional
• Real estate article
• Real estate professional

Sep 30, 2006 HDB to ramp up building of new flats as demand recovers By Tan Hui Yee THE Housing and Development Board (HDB) is stepping up its building programme this financial year to cater to a growing demand for public housing. Releasing its annual report yesterday, it said the recovering property market had pushed up sales of its flats and whittled down its stock of unsold flats to 6,000 units, compared to 9,000 a year ago. HDB chief executive Tay Kim Poh said the majority of flats to be built in the coming year would be concentrated in Punggol and Sengkang, to develop the area and make it more vibrant. He noted that HDB had hit a 'trough' in its building programme in the last financial year, In the 2005 calendar year, it built just 5,700 flats - a far cry from 1998's 36,600. Construction will be ramped up from here on, without going into an oversupply. Mr Tay told reporters: 'The property market is firming. We can feel it because we do see better take-up for our flats now.' At the close of its financial year in March, HDB had sold 10,100 new flats, compared to 9,433 the previous year. The financial year just passed saw about 3,500 surplus five-room and executive flats being booked, under a system which allows on-the-spot booking of flats. This was 20 per cent more than the previous year. Demand has been so encouraging that the plan to put 400 older surplus units in the hands of a property agent on the resale market appears to have been put on hold. Mr Tay said that some of these flats might now be offered to 'public applicants' instead - families entitled to buy flats directly from HDB, unlike singles and permanent residents, who have to buy flats at higher prices on the resale market. The housing chief added that the small number of flats which have not been sold for various reasons - 'sometimes because their attributes are not so good' - may still be put on the resale market. Most of the surplus flats are five-room and executive units located in Jurong West. HDB supplements this stock of units with new projects offering mostly smaller flats. Mr Tay also said the board would make a 'major thrust' into livening up both old and new towns. This could involve building new blocks in greying areas to bring in younger residents, revamping commercial centres, helping shop tenants upgrade their businesses, and even introducing new facilities like offices into the towns. Toa Payoh, for example, is an ageing town which received a shot in the arm from the building of retail and office complex HDB Hub four years ago. The Hub became a magnet for law firms and property firms, while retailers spruced up shops in the town centre. New 40-storey blocks were also built in the town - the nation's first in public housing. Meanwhile, an experiment to let a private developer design, build, price and sell flats is taking off. Sim Lian Land, which recently clinched a plot in Tampines to build 616 two-, four- and five-room flats, will be launching them for sale on Saturday. Asked whether HDB would consider putting some of its properties into a real estate investment trust - which earns rental revenue from its properties and makes regular payouts to investors - Mr Tay said the option was always possible, but that HDB would always bear in mind its prime duty to provide affordable housing and serve residents. Going forward, HDB will also be honouring its pledge to include comprehensive disabled- and elderly-friendly features in all its new flats. tanhy@sph.com.sg Copyright © 2006 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access

•  17
  New Members

• Financial professional
• Real estate
• Software for real estate professional
• Real estate article
• Real estate professional

Sep 30, 2006 HDB help for rain splashes... HDB HELP FOR RAIN SPLASHES... To solve the problem of rainwater splashing into flats, the Housing Board put roller blinds in about 1,000 flats islandwide from August last year. The flats with this feature are in areas like Sengkang, Punggol, Sembawang and Bukit Panjang. The idea was first tried out in seven flats in Sengkang. FINANCIAL DIFFICULTIES... In the financial year that ended in March, the HDB gave financial assistance to 28,386 flat owners, a 26 per cent drop from the previous year. The HDB said the fall in number of people given aid could be due to a gradual improvement in the economy. PRECAST BURIAL PLOTS... The HDB has found a fresh application for its prefabrication techniques - in the building of precast burial plots. It is working with the National Environment Agency to come up with neater burial plots.Work on the first such burial plot at Choa Chu Kang Cemetery is in progress. ... AND LEAKY CEILINGS In the financial year that ended in March, 10,700 households received subsidies to get their leaking floors and ceilings repaired. The HDB picks up half of the repair bill. The HDB also provided repairs for dislodged tiles to about 1,800 households. Copyright © 2006 Singapore Press Holdings. All rights reserved. Privacy Statement & Condition of Access

•  17
  New Members

• Financial professional
• Real estate
• Software for real estate professional
• Real estate article
• Real estate professional

Published September 30, 2006

FJ Benjamin in talks to sell Orange Grove property   LUXURY retailer FJ Benjamin Holdings Ltd is in talks with a prospective buyer to sell its property at 6B Orange Grove Road for about $37 million. 'The proposed disposal of the property is in line with the company's stated intention to divest the property and use the proceeds to reduce bank borrowings and as working capital for expansion of its businesses,' the fashion retailer said yesterday, adding that there is no certainty that the sale will proceed. But should the deal be sealed, the transaction would result in an increase in FJ Benjamin's net tangible assets per share and earnings per share. For illustration, if the sale was made at the end of FY2006, NTA per share would have risen to 32.32 cents from 30.53 cents. And EPS would have risen to 3.55 cents from 3.53 cents if the transaction had been effected at the start of FY2006.

•  17
  New Members

• Financial professional
• Real estate
• Software for real estate professional
• Real estate article
• Real estate professional

Published September 30, 2006

Buy a flat and earn from its car park By KALPANA RASHIWALA GUTHRIE GTS and Lee Kim Tah Holdings are pitching their 99-year leasehold Centris apartments not only for their location next to Boon Lay MRT Station and Jurong Point mall, but for a unique opportunity to earn some extra income from car park fees collected from shoppers at Jurong Point. The apartments are priced on average at $497 per square foot, after discounts for early birds. A total of 100 apartments were released at a preview yesterday. The Centris comprises 610 apartments housed in 12 blocks (each 12-storey high) sitting above a retail podium (which will be an extension to the existing Jurong Point next door) and a basement carpark. There will also be an air-conditioned bus interchange at street level. A unique point about this project is that The Centris residents who surrender their car park lots will enjoy a rebate of $3.50 a day from their monthly maintenance contributions. In addition, they stand a chance of receiving an annual dividend - which could amount to $1,500 to $2,000 - if the management committee achieves a surplus on revenue from carparking fees collected from shoppers at Jurong Point. The new retail and residential development will have in total about 1,000 carpark lots. This will be in addition to the 500 or so car park lots in the existing Jurong Point, although some of these may go, in order to facilitate works to improve linkage between the existing Jurong Point and the new extension.

•  17
  New Members

• Financial professional
• Real estate
• Software for real estate professional
• Real estate article
• Real estate professional

	This story was printed from TODAYonline
	Stock of unsold new flats shrinks Tightening supply and building to order pays off for HDB Weekend ? September 30, 2006 Lee U-Wen u-wen@newstoday.com.sg The number of unsold flats in Singapore has dipped to 6,000, from as many as 17,500 in January 2002. This is due to "a tightening of supply" from the Housing and Development Board (HDB) and the building of flats according to demand. Looking ahead, the HDB has committed itself to building and selling more new flats this financial year. HDB chief executive Tay Kim Poh said recent efforts to reduce the supply of new flats have been paying off, with the demand from homebuyers starting to build up again. "The unsold flats were quite a big problem for us. Now our unsold stock stands at 6,000, and these are mostly the larger flats, the five-room and executive ones," he said, after releasing the HDB's annual report card to the media. Over the past few years, the HDB has been saddled with unsold flats, mostly in the neighbourhoods of Jurong West, Sengkang, Choa Chu Kang and Bukit Panjang, due to a legacy of overbuilding and a sharp drop in demand during the Asian financial crisis in the late 1990s. No exact figures were given on the new flats that will be built. A total of 4,378 were built between April last year and March this year. Mr Tay said the focus will remain on smaller flats, such as the two- and three-roomers and studios. Many new flats will be constructed on a build-to-order (BTO) basis. The HDB will put about 3,000 on sale this year, and another 3,000 to 4,000 next year in the Sengkang and Punggol areas. "These two areas will be our focus for next year, to develop the catchment there so we can develop the town centres," said Mr Tay. The demand for two-room flats is high among lower-income families, who take home $2,000 or less a month. A BTO project to build 100 two-room flats in Jurong West was twice oversubscribed, while a batch of 86 in Sengkang had an application rate of more than triple the supply. Studio apartments are highly popular among the elderly, who want to sell their flat and move to a smaller, cheaper one. A BTO studios project in Bishan is already three times oversubscribed, though the application deadline is not until next Thursday. The HDB will provide more four-room flats, as stock is declining and demand is gradually rising. There will be no new executive flats for the "foreseeable future", said Mr Tay. The BTO scheme was first launched in April 2001 due to changing demand patterns for new flats. Construction begins only when the majority of flats in a project ? usually about 70 per cent ? are taken up. Including the pilot BTO launch, the HDB has successfully introduced 16 sites at various locations in Punggol, Sengkang and near the city. Price-wise, Mr Tay noted the new flats have remained "quite stable" over the past few years but he cannot predict whether they will rise or dip. "We can't really tell. The prices of flats, of course, vary according to size and location, among other factors," he said.
	Copyright MediaCorp Press Ltd. All rights reserved.

•  17
  New Members

• Financial professional
• Real estate
• Software for real estate professional
• Real estate article
• Real estate professional