NORTH EAST LINE EXTENSION

WHAT IS THE NORTH EAST LINE EXTENSION?

The 2km North East Line Extension will serve Punggol North including the new Punggol Downtown. It is expected to be completed by 2030.

HOW WILL COMMUTERS BENEFIT FROM THE NORTH EAST LINE EXTENSION? 

To be built in tandem with the developments in Punggol North, future residents will have train access to the city centre as well as other parts of Singapore.

Read more about the North East Line

Source: LTA

2014 likely quiet for HDB resale market

The HDB resale market is expected to slow down next year on the back of the government’s measures on permanent residents (PRs), according to analysts quoted in a media report.

Newly-minted PRs now have to wait three years before they can purchase a resale flat. There was no such requirement previous to when this regulation came into effect on 27 August.

The housing board revealed that PR households purchased an average of 323 units per month during the first eight months of the year. However, this fell to an average of 176 units per month since the introduction of the new ruling.

“Based on these preliminary figures from the HDB, the drop in demand from PRs will reduce the (overall) demand for resale flats by about 10 percent in 2014,” said Nicholas Mak, Research Head at SLP International Property Consultants.

Moreover, first-time buyers can easily purchase new flats currently, while the government is expected to raise the quota of new flats for second-timers.

This means that fewer buyers are expected to turn to the resale market.

While next year’s figure will likely be similar to 2013 – which saw “one of the lowest in years” with estimates at around 17,200 to 18,500 compared to more than 24,000 to 37,000 in annual resale volumes over the last five years – activity is expected to pick up in the second half of the year as buyers get drawn back to the market by lower prices.

The real estate agency is also “quietly optimistic that resale HDB volumes will pick up in 2014” as HDB slows down the launch of Build-to-Order (BTO) flats.

As such, resale volumes will likely be “a shade better than this year” at over 20,000 but less than the 25,000 or so recorded in 2011 and 2012.

Source: Dec 26, 2013 - PropertyGuru.com.sg

Refining the Executive Condominium Housing Scheme

The Government will implement three measures for Executive Condominium (EC) developments to bring the terms for ECs closer to that for public housing, and help support a stable and sustainable EC market. This follows a review by MND on the EC Housing Scheme, taking into account feedback from the Our Singapore Conversation on Housing. 

I. Reduce EC Cancellation Fees 
2   First, we will reduce the cancellation fees for ECs from 20% to 5% of the purchase price. This will relieve the financial burden of buyers who have to cancel their EC bookings after signing the Sale & Purchase Agreement. The new cancellation fee will be applied to EC land sales which are launched on or after 9 Dec 2013, including those where the tenders have not closed. 

3   The cancellation fee for ECs is currently set at 20% of the purchase price, similar to those for private housing. However, unlike buyers of private housing, buyers of EC units cannot sub-sell their units if they cannot complete their purchase, and have to pay the cancellation fee. This has especially imposed significant financial burden on young couples who subsequently are not able to proceed with their marriage and hence the EC purchase. 

4   We will therefore align the cancellation fees for EC units with that for HDB Build-to-Order (BTO) flats, and reduce them from 20% to 5% of the purchase price. 

II. Resale Levy for Second-Timer Applicants 
5   Second, we will now require second-timer applicants who buy EC units directly from property developers to pay a resale levy, similar to second-timer applicants who buy BTO flats. The new requirement will be applied to EC land sales which are launched on or after 9 Dec 2013, including those where the tenders have not closed. 

6   Currently, second-timer applicants who buy EC units directly from property developers benefit from the lower EC prices arising from the initial eligibility and ownership restrictions imposed on EC purchases. However, they do not need to pay a resale levy. The alignment of treatment with second-timer applicants who buy BTO flats will ensure greater parity. 

III. Revision of Mortgage Loan Terms 
7   Third, the Monetary Authority of Singapore (MAS) will cap the Mortgage Servicing Ratio (MSR) for housing loans granted by financial institutions for EC units bought directly from property developers at 30% of a borrower’s gross monthly income. This is in line with earlier measures introduced by the HDB and MAS to encourage financial prudence among buyers of public housing. It discourages EC buyers from over-stretching their finances and supports an affordable and sustainable EC market. 

8   The 30% MSR cap will apply to EC purchases where the Option to Purchase is granted on or after 10 Dec 2013.1
Enquiries 
9   For further enquiries on any of the above measures, the public can contact the HDB Sales Customer Service Line: 1800-866-3066. 


Issued by: Ministry of National Development
Date 9 Dec 2013 

Source: MND

Lower property taxes for 95% owner-occupied homes in 2014

SINGAPORE - Most owner-occupied homes will have to pay less in property tax next year, the Inland Revenue Authority of Singapore (IRAS) said on Tuesday.

Under the new Progressive Property Tax Rates regime announced during Budget 2013, all owner-occupied HDB flats and three quarters of owner-occupied private homes - or 95 per cent of owner-occupied homes - will see lower property tax bills.

Taking into account non-owner-occupied homes as well, 80 per cent of all homes will pay lower property tax in 2014.

With the new property tax structure, the Annual Value (AV) exemption threshold for which no tax applies will be $8,000, up from $6,000 previously. Owners who live in their own homes will not have to pay property tax on the first $8,000 of the Annual Value (AV) of their properties from Jan 1, 2014.

The new property tax structure also increases the progressivity of the property tax structure by taxing properties with higher AVs more.

A property's AV, which Iras reviews annually, is based on the estimated annual market rent of the property if it was to be let out. This is then used as a basis to compute the property tax payable.

The AV of three to five-room HDB flats will be revised next year, as market rents for these flats have increased by about 3 per cent since the last revision in January this year.

There will be no change to the AV of the other types of flats as rents on these flats have remained largely the same.

This means that all one and two-room HDB owner-occupiers will continue to pay no property tax.

Other HDB owner-occupiers will enjoy property tax savings ranging from $28 to $40 in 2014, IRAS added.

In total, 80 per cent of all homes will face lower property tax in 2014.

The property tax payable for HDB owner-occupied flats in 2014 are as follows:

AV and Property Tax for Owner-Occupied Private Residential Property

The market rents of 70 per cent of private residential properties over the past year have remained largely the same since the last AV revision. Only 30 per cent saw an increase in AV. Under the new property tax structure, 74 per cent of private owner-occupiers will pay less tax in 2014.

Property tax rates for non-owner-occupied residential properties with AVs above $30,000 will be increased gradually from January 1.

With this change, 74 per cent of non-owner-occupied private residential properties and HDB flats will have higher property taxes after applying the new tax rates on their 2014 AVs.

Property owners will receive their property tax notices and bills by the end of this year, and are reminded to pay their property tax by January 31.

ljessica@sph.com.sg

Tuesday, Nov 26, 2013

Source: AsiaOne

Can you use your CPF to repay housing loans after 55?

Whether your CPF can be used to repay housing loans after 55, depends on how much CPF savings you have at 55, and how much you have already used for housing. 

When you turn 55, a Retirement Account (RA) is created using savings from first your Special Account, then Ordinary Account (OA) to meet the Minimum Sum (MS) relevant to your cohort. While the MS provides monthly payouts from your draw down age, the balance in your OA can be used for housing loan repayments. 

Members who are able to set aside more than half of the MS, will be able to use the amount in excess of half of the MS for housing loan repayments. 

For example: 


If you continue working after 55, your CPF OA contributions can also be used for housing loan repayments. 

However, housing withdrawal limits may apply. This is to safeguard members from overspending on their housing loan repayments at the expense of their retirement savings.

Source: CPF

Draft Master Plan 2013

Our Future, Our Home. Draft Master Plan 2013 exhibition at URA

Published Date: 20 Nov 2013

The Urban Redevelopment Authority (URA) announced the opening of the Draft Master Plan 2013 exhibition today. The key focus of the Draft Master Plan 2013 is to build townships for all ages that are green, healthy, connected, strong in community interaction and spirit, and to bring quality jobs closer to home.

The Draft Master Plan 2013 aims to make Singapore a better home for our people through: 

• Providing a quality living environment with a variety of housing options 
• Bringing quality jobs closer to home and growing the financial and business hub in the city 
• Expanding green and recreational spaces for all 
• Building an endearing home 
• Enhancing our transport connectivity and accessibility 
• Enlivening our public spaces

A quality living environment 

Singaporeans will continue to enjoy a good quality living environment in new housing areas at Bidadari, Tampines North and Punggol. Established towns such as Sembawang, Yishun, Hougang, and Choa Chu Kang will be rejuvenated with new homes, providing more options for those who prefer to live near their families for mutual care. 

A range of housing types will be provided in new and existing estates. Every new and existing town will boast a quality living environment, with green and community spaces for residents to relax and interact. Walkability and cycling routes will be key features, alongside a good distribution of amenities.

The housing concepts at Marina South and Kampong Bugis will be fenceless, green housing developments to encourage community interaction. These features will provide a conducive environment for pedestrians and cyclists. 

Refer to Annex 1 for more details on plans to create a quality living environment.

Some points from Annex 1 relating to Punggol:

- There will be more housing choices in diverse locations with the development of new 

housing areas at Bidadari, Tampines North and Punggol Matilda. These new housing areas will 

provide a quality living environment through abundant greenery and vibrant community spaces 

to encourage interaction and community bonding. Good distribution of amenities throughout the 

estate and well-connected pedestrian and cycling networks will make it more convenient for 

residents to walk or cycle to the different facilities and meet their daily needs. For more 

information, refer to the Housing & Development Board’s (HDB) press release. 

- HDB’s Remaking Our Heartland initiatives will rejuvenate existing towns and housing 

estates such as Punggol, Bedok, Yishun, Jurong, Hougang and Dawson, improving the living 

environment and adding community spaces to encourage social interaction among residents.

More jobs near home 

Providing good and diverse jobs for Singaporeans will strengthen Singapore’s status as a global financial and business hub. The Draft Master Plan 2013 will set aside sufficient land to grow our diversified economy and bring jobs closer to home. 

To enable Singaporeans to work closer to home, reduce commuting time and ease congestion during peak hours, we will continue to grow regional employment centres such as Jurong Lake District, Tampines Regional Centre, and Paya Lebar Central. New growth areas across the entire stretch of the North Coast Innovation Corridor will begin to take shape with the Woodlands Regional Centre and the Punggol Learning Corridor and Creative Cluster. New industrial sites at CleanTech Park, Wenya, Jurong West and Tuas in the west, and Seletar West and Lorong Halus in the north-east, will offer new job opportunities. 

We will also continue to grow the Central Business District and Marina Bay, the heart of our business and financial sector. Within the city centre, a new retail and entertainment spine at Bayfront Avenue will be created, bringing additional job opportunities and more buzz to the Bay.

Refer to Annex 2 for more details on new growth centres, including the Woodlands Regional Centre.

Some points from Annex 2 relating to Punggol:

- One of the major new initiatives is the North Coast Innovation Corridor that will begin to 

take shape with exciting new developments at the Woodlands Regional Centre and the Punggol 

Learning Corridor and Creative Cluster. This will become an attractive major employment node for 

residents in the north and north-eastern part of Singapore.

- The Punggol Creative Cluster will house innovative industries with green areas, community 

spaces and waterfront views that will provide an attractive work and play environment. The 

Learning Corridor will be anchored by a tertiary institution and have strong ties to the Creative 

Cluster. 

For more info: URA News , URA Draft Master Plan 2013 , URA Draft Master Plan 2013 North-East Map

Source: URA

HDB median cash premiums hit 4-year low of $18,000 in August

SINGAPORE - Overall median cash premiums for Housing Board (HDB) resale flats continued to drop, with the premiums reaching a four-year low of $18,000 in August. July's median cash premium was $20,000 while the lowest median premium before last month's was recorded in July 2009 at $10,000

Get the full story from The Straits Times.

Here is the full report from Singapore Real Estate Exchange (SRX):

August 2013 Non-landed Private Residential Resales

Based on the SRX Property Index (SPI), resale prices of non-landed private residential units increased by 1.5% in Aug 2013, reaching a new high. This comes on the heals of a 0.5% drop in July and amid mild fluctuations in the recent months.

All three regions showed price gains in the past month. Rest of Central Region (RCR) led the trend by gaining 2.4%, followed by Core Central Region's (CCR) 1.8% increase. Outside Central Region (OCR) prices also inched up by 0.2%.

An estimated 540 non-landed homes were resold in August, similar to July's 573 units. On a year-on-year basis, this represents a more than 50% drop from the 1,240 units transacted in Aug 2012.

HDB Resale and Rental:

Overall HDB Cash-Over-Valuation (COV) dropped $2,000 in Aug to reach $18,000 - the lowest since July 2009, when the overall COV was $10,000. The lowest COV by region is in Punggol HDB Executives where 2 out of a total of 3 transactions last month were sold below valuation. The median COV for Punggol HDB executive flats was -$13,000. On the flip side, the highest COV is seen in Bishan HDB Executives where the median COV was $120,000.

Overall HDB resale prices slipped 0.7% in Aug, marking the fourth consecutive monthly drop in resale prices. This marks the first time prices have dropped by four consecutive months since Jan 2006.

HDB resale volume remained relatively flat. According to flash estimates, 1,280 HDB flats were sold in the resale market in August, similar to July's 1,286 resale cases. Year-on-year, August's resale volume represented a 29% drop from the same period in 2012.

An estimated 1,560 HDB flats were rented in August 2013, down by 3% compared to July. However, this number exceeded the 1,392 HDB rental transactions in August last year by 12%.

Non-landed Private Residential Rental:

Based on the non-landed residential rental SPI sub-index, overall rental prices for non-landed private residential in August slipped by 0.1% from July.

On a regional basis, rental prices in the CCR and RCR softened by 0.2% and 0.1% respectively, while OCR's rents strengthened by 0.5%.

Friday, Sep 06, 2013

Charissa Yong

The Straits Times

Source: AsiaOne

CROSS ISLAND LINE

WHAT IS THE CROSS ISLAND LINE?

Spanning across Singapore, the Cross Island Line (CRL) 

is approximately 50km in length and is targeted to complete by around 2030. 

WHERE IS THE CROSS ISLAND LINE?

Starting from Changi, the CRL will pass through Loyang, Pasir Ris, Hougang, Ang Mo Kio, 

before reaching Sin Ming. Continuing westwards, it will serve areas such as Bukit Timah, Clementi, 

West Coast, and terminate at Jurong Industrial Estate. 

HOW WILL COMMUTERS BENEFIT FROM THE CROSS ISLAND LINE?

It will provide commuters with another alternative for East-West travel to the current East-West Line, 

bringing greater comfort and significantly shorter journey times. The eastern leg of the CRL will also include 

a segment that extends into the centre of Punggol. Residents in Punggol will be able to travel 

to Pasir Ris – a popular and much demanded travel route - in only 10-15 minutes, compared to a 

40 minute bus journey today.

Source: LTA (http://www.lta.gov.sg/content/ltaweb/en/public-transport/projects/cross-island-line.html)

SINGAPORE - Green landscapes and cycling networks will be part of the Housing Board's three upcoming heartland developments.

HDB media release:

Minister for National Development Khaw Boon Wan launched the HDB's "Future Homes, Better Lives" Exhibition this evening. The exhibition showcases the broad development plans for three new housing areas - Bidadari, Tampines North, and Punggol Matilda - and is part of HDB's efforts to consult and seek public feedback on the upcoming plans. It will be held from today to 15 September 2013 at the HDB Hub Atrium.

As the master planner and developer of Singapore's public housing estates, HDB is constantly on the lookout for innovative ideas to provide residents with a quality living environment. In line with HDB's Roadmap to provide well-designed, sustainable and community-centric towns, we also consciously provide for community spaces to encourage interaction and cultivate strong community bonds.

The plans for Bidadari, Tampines North, and Punggol Matilda, will capitalise on their individual distinctive character to bring about a unique identity and living experience. They will build on each estate's history, distinctive local flavour and features.

Five key ideas will guide the development plans of the three areas, namely:

a) Distinctive housing districts with unique identities

b) Green housing districts with community gardens and abundant greenery

c) Vibrant community spaces to encourage community activities

d) Rekindling memories to form new ties and communities

e) Promoting a healthy lifestyle with well-connected cycling and pedestrian networks

The implementation of these new urban design concepts will add to the vibrancy of the Singapore housing landscape. They will characterise our next generation of public housing as we move forward in the next decade. We would like to encourage the public to visit the exhibition and share your feedback and thoughts on the development plans with us.

Punggol Matilda

Under the Phase 2 master plan for Punggol New Town unveiled in Oct 2012, Punggol will feature seven distinctive eco-town districts, each with a unique identity and character.

Capitalising on its proximity to the waterfront and taking inspiration from its heritage, the Matilda district of Punggol is set to be an attractive waterfront housing district with many flats commanding waterfront views.

Planning for Matilda was inspired by the 'verandah' feature of the old Matilda House and its surrounding lush greenery. Hence the vision of Matilda District - Verandah by the Waterfront".

Some of the new plans for Punggol Matilda include: a) New housing forms with integrated landscaped decks that provide "door-step" accessibility to the precinct amenities;

b) A Community Street leading to the waterfront, designed as an urban verandah with "living rooms" as rest points for residents to sit and chat;

c) Leafy walkways to provide seamless sheltered connectivity between the residential precincts and the waterfront promenade; and

d) A vibrant waterfront shopping mall, as well as recreational amenities and parks for community events.

Moving forward 11The exciting developments for the three housing areas are slated to take place within the next few years.

The first project in Punggol Matilda with the new housing form will be launched in the BTO exercise in Sep 2013, followed by Tampines North in the second half of 2014 and Bidadari in 2015.

More details will be made available closer to the actual launches.

Source: AsiaOne

Charissa Yong

The Straits Times

Thursday, Aug 29, 2013