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