Singapore HSR Property Group By Mark Tan-Expat Relocation Agent-Rent/Lease/Mgmt/Sell/Sub-Sale

Single PR can’t buy resale HDB flat

Posted by Singapore Property Match on February 8, 2010

I refer to last Sunday’s sidebar, ‘What properties can PRs buy?’, alongside the article on what permanent residents look for when buying resale flats (‘When PRs buy HDB resale flats, key considerations are cost, location’).

The sidebar stated that ‘PRs are allowed to buy resale HDB flats – but not new flats – without housing and mortgage subsidies’.

This is not entirely true.

Single Singaporeans over the age of 35 are allowed to buy resale HDB flats, but a single PR cannot do so.

I have appealed against this ruling for the last year or so, but have been unsuccessful.

I am nearly 59 and divorced, but am contributing to Singapore by teaching English and creative writing. I was born and raised in Singapore and was a citizen.

Nearly 30 years ago, I married an Englishman, and later took up British citizenship. I did so not because I was disloyal to Singapore, but because Singapore did not permit dual citizenship.

Five years ago, I divorced my husband. I have two sons who have served national service and retained their Singapore citizenship. They now live here.

I decided to come back to Singapore to live when my grandchildren were born. My sons managed to help me get PR status here.

I applied for an HDB flat as I could not afford a private apartment. I went to see the Housing Board, but my application was rejected. This year, I made an appeal and it was rejected too. So I have to stay with my family when I am in Singapore.

I understand the need for stringent housing rules so that people do not abuse the system, but I feel that some cases have to be reviewed with humanity.

Josephine Chia (Ms)

Source : Sunday Times – 7 Feb 2010

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Collective-sale fervour returning

Posted by Singapore Property Match on February 8, 2010

Last Wednesday, Credo Real Estate sealed the first collective sale of the year.

Four owners of a Balestier industrial plot benefited when they sold their Jalan Ampas site – which can be converted into residential use – for $27.5 million.

More such deals are likely to be inked this year, after a dry year when just one collective sale was done. That was Block 18 of Dragon Mansion, completed in early December.

But the success rate will depend a lot on the market and owners’ expectations, consultants said.

Already, property consultants say many owners are again placing their hopes on hitting the collective-sale jackpot, in line with the improved property market and brighter economic outlook.

‘More estates are now forming sales committees to either start the sale process or re-start the process for those that had not been transacted successfully previously,’ said CKS Property Consultants’ investment manager Chia Mein Mein.

An industry observer pointed out that most developers are running out of land for mass market projects, so they are very keen to buy.

‘But prime land is another story. They still have quite a lot of it.’

Credo Real Estate’s deputy managing director Tan Hong Boon said: ‘We should see more activities towards the end of this year as many owners are keen to start the collective-sale process now.’

With more inquiries coming in, property consultants are busy pitching for jobs.

Many keen estates are those that had tried to sell en bloc but failed in the previous peak in 2007, the consultants said.

These include Pender Court off West Coast Highway, Royalville in Bukit Timah and Hawaii Tower in Meyer Road.

Collective-sale launches so far this year include the 11-unit Holland Hill Lodge, which was put up for sale en bloc last month at an indicative price range of $15 million to $16 million, or $1,038 to $1,107 per sq ft per plot ratio.

More launches can be expected from the second quarter, said Mr Tan.

A total of 116 collective sales were done at the peak of the property boom of 2007.

This figure slipped to only eight in 2008 amid the global financial crisis.

This year, there will certainly be more sales, consultants predict. However, some owners of prime or mid-end projects continue to hope for prices that are above the previous peak, they said.

Now that resale prices are moving up, more people are worried that they cannot get a similar replacement property, explained a consultant who declined to be named.

Still, the problem is the gap between buyers and sellers’ expectations.

‘There’s still a great mismatch in prices. Developers are quite cautious,’ he said.

Source : Sunday Times – 7 Feb 2010

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More caught running illegal dorms

Posted by Singapore Property Match on February 8, 2010

MORE people were taken to task last year for illegally converting their private homes into dormitories, hostels and boarding houses as accommodation for foreign workers and students.

The Urban Redevelopment Authority (URA) investigated about 700 private residential properties and is still forcing boarders to vacate the premises of 140 owners. Overcrowding is common, making safety an issue.

The other 560 owners have since stopped taking in lodgers illegally.

In 2008, the URA investigated just 400 cases.

In particular, there was an 18 per cent increase in the number of unauthorised worker dormitories over the previous year, though figures were not available.

The illegal dormitories are being exposed as more people write in to the URA with their complaints, and tip-offs are provided by the public and other government agencies.

The URA said that private apartments and landed homes are meant for residential use and should not be converted into workers’ dormitories, which need permission to operate.

Under the Planning Act, illegal conversion of premises can result in a maximum fine of $200,000 and a year in jail. If the offence continues after conviction, a fine of $10,000 a day may be imposed.

Despite URA efforts, checks by The Straits Times showed that illegal workers’ dormitories are still prevalent, especially in Little India and Tiong Bahru.

Along Marne Road off Petain Road, The Straits Times found at least two terrace houses housing more than 10 workers each.

In Tiong Bahru, there were at least three such apartments. In other units, there were workers from China and Malaysia who refused entry to The Straits Times. But shoes outside the main door and the drying laundry were signs of the multiple occupants inside.

At three units, occupants said there were eight people living inside. One said the boss had obtained the flat for them.

One landlord, who wanted to be known only as Ms Huang, said she had rented her three-room unit in Kai Fook Mansion in Tiong Bahru Road to eight Malaysians at $1,700 a month.

She said she had nine tenants at first but was told by the URA in December that she could have only eight. Ms Huang said she had not made modifications to her flat.

Private homes as ad hoc accommodation have sprung up over the last few years because of a shortage of dormitories and boarding houses.

A single worker renting a room in one of these converted homes pays about $200 compared with $160 to $180 each month for a workers’ dorm in Jurong.

In the middle of last year, the URA found that 140 units in Grangeford condominium in Leonie Hill had been subdivided into 600 units. The developer was taken to action to recover the units.

The Ministry of Manpower warned employers of foreign workers that they are responsible for the well-being of their workers, including providing acceptable accommodation while they are employed.

Employers who fail to provide acceptable accommodation for their foreign workers are in breach of the work permit conditions and may be fined up to $5,000 and jailed up to six months. Such employers could also be barred from hiring foreign workers in future.

Tiong Bahru residents interviewed said they were fine with foreign workers in their midst, but were concerned about the overcrowding in the walk-up apartments, which are about 800 sq ft to 1,000 sq ft and usually have two or three bedrooms.

Interior designer Jo Turner, 31, claimed that her ceiling sprang a leak because there were 10 workers sharing a toilet in the flat above hers.

Ms Turner, like advertising executive Eugene Yip, 38, was mostly worried about the workers cooking over an open flame. About a month and a half ago, unit 1P in Yong Siak Street, housing Chinese national workers, caught fire.

The Singapore Civil Defence Force said the fire was accidental and from an electrical source. This could have been caused by a short circuit or overloading of power outlets.

Source : Straits Times – 8 Feb 2010

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S-Reits on expansion trail again

Posted by Singapore Property Match on February 8, 2010

SINGAPORE real estate investment trusts (S-Reits) appear to be back on the acquisition trail after facing some serious financial woes in recent times.

Several Reits here have been scouting the region, picking up good buys, now that the economy is back on an even keel.

Reits have proven very popular among investors here. They usually own a portfolio of a particular type of property and derive income from rents. Unitholders receive regular payments.

But it was a different story last March when a National University of Singapore forum on Reits noted that their overall value had plunged about 60 per cent after the onset of the global financial crisis.

Refinancing and recapitalisation risks were high. So too was S-Reit debt, estimated to amount to $4.6 billion last year.

But by September, a special report by Fitch ratings noted that S-Reits had managed to refinance most of their debt obligations and share prices were recovering.

Mr Vincent Yeo, chief executive of M&C Reit Management, the manager of CDL Hospitality Reit (H-Reit), believes the successful refinancing of loans and the flurry of capital-raising activities, particularly in the second half of last year, reflect easing credit conditions.

Credit margins, however, are still wider than before the crisis, a spokesman for Ascendas Reit (A-Reit) pointed out.

But the easing conditions seem to be enough. In the last three months, S-Reits increasingly bought assets, with most deals being done out of Singapore.

H-Reit, Keppel Land’s K-Reit Asia and Starhill Global Reit all went Down Under by investing in Brisbane and Perth. Starhill Global Reit also bought two retail properties in Kuala Lumpur.

In Japan last November, Mapletree Logistics Trust purchased a warehouse in Chiba, while Parkway Life Reit (PLife) acquired eight nursing homes.

At home, Mapletree Logistics purchased two warehouses and Frasers Centrepoint Trust proposed the acquisition of Northpoint 2 and Yew Tee Mall.

Australia, it appears, is the current favourite, said DMG and Partners analyst Jonathan Ng.

H-Reit’s $220.9 million purchase of five hotels in Brisbane and Perth is one example. The deal incorporated a 66 per cent discount and would render a net property yield of 8.4 per cent, higher than H-Reit’s portfolio yield of 5.2 per cent, said Mr Yeo.

A spokesman for Starhill Global Reit said property prices in Britain, Japan and Australia have become more attractive as capitalisation rates have reached an all-time high in the past decade.

OCBC Investment Research analyst Meenal Kumar said the best distressed deals are in the more developed markets. In Singapore, making yield-accretive purchases is more challenging and acquisition opportunities may vary according to property sub-sector.

Due to many assets being securitised in the past five years, more S-Reits are likely to look overseas for opportunities in future, said Mr Ng.

PLife has already defined Australia and Malaysia as additional core markets this year, in addition to Singapore and Japan, said chief executive of Parkway Trust Management, Mr Yong Yean Chau.

Reits will have to be mindful of how much debt they take on for acquisitions. Sticking to a debt level of 30 per cent to 35 per cent is reasonable, Mr Ng said.

Some Reits are also looking at divesting sub-optimal assets as a strategy or for the purposes of lowering debt, Ms Kumar noted.

Source : Straits Times – 8 Feb 2010

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Rental disputes on the rise

Posted by Singapore Property Match on February 7, 2010

Vacate the flat at once, project supervisor Ashirafur Rahaman Khan said he was told by a group of six people just before midnight.

It happened more than a week ago, the 37-year-old said. He was with his wife in their rented flat’s corridor in Yishun Street 81.

His wife, eight months pregnant and who had recently flown in from Bangladesh, was exercising in the corridor.

The group of six men and women who confronted the couple included the landlord and his son.

‘One of the men said I didn’t pay my rent, so I had to move out. But I had already paid for the month and even gave some advance payment,’ said the permanent resident, who rented the flat for $1,400 a month with a fellow tenant who was not present during the encounter.

Part of the group then entered the flat, saying they were removing the furniture.

Seeing his wife agitated, Mr Ashirafur then agreed to leave. ‘I said, ‘Don’t touch the furniture. We’ll move it ourselves’,’ he said.

So in the wee hours of the morning, the flat’s occupants scrambled to find lodging with friends, Mr Ashirafur said.

When contacted, the landlord’s son, who did not give his name, said it was his father who had decided on the course of action.

But he said: ‘Let’s say you rented a house. If anyone else comes (to stay), the owner should be informed.’

Mr Ashirafur told The Sunday Times his wife and his sister had flown in from Bangladesh. His sister had come along to take care of her.

He said his next move is to go to the Small Claims Tribunal, taking along his tenancy agreement, which states that one month’s notice is required for a mutually agreed termination of tenancy.

In recent years, more tenants – and to a lesser extent, landlords – have approached the tribunal for help to settle rental disputes.

This increase took place after it extended its jurisdiction in February 2006 to include disagreements on contracts for homes rented out for two years or less.

The tribunal was set up in 1985 to resolve small claims between consumers and suppliers.

Last year, 1,349 rental disagreement claims were lodged, more than three times the 401 claims filed in 2006. In 2008, 1,137 claims were lodged.

The majority of such claims – 84 per cent of last year’s cases, for example – are filed by tenants, statistics from the Subordinate Courts showed.

Prior to 2006, such aggrieved parties settled disputes such as unpaid rents or leaky ceilings between themselves or through the courts – a time-consuming and usually expensive process.

The Small Claims Tribunal handles cases involving sums of up to $10,000, though this limit can be raised to $20,000 if the parties agree.

Once a claim is lodged, the tribunal arranges a consultation before a registrar who will mediate the claim. The case goes to a hearing if there is no settlement during the meeting.

The time taken to resolve a claim depends on the nature and circumstances of each case, said the Subordinate Courts’ spokesman.

From the date of filing to the first consultation, the waiting period is usually between 10 and 14 days. From the final consultation to the hearing, the waiting period is usually within 10 working days.

When contacted, a Housing Board spokesman said it advises flat owners and tenants to settle their differences amicably when disputes come to its attention.

‘HDB will usually advise the complainant to lodge a claim with the Small Claims Tribunal. If mediation is not an option, the complainant may choose to take a private suit against the other party,’ she said.

The spokesman added that common disputes included issues over payment of rental, forfeiture of deposits and the termination of tenancies without sufficient notice.

Various types of rental disputes have hit the news in the past several years. At times, tenants returned to their flats only to find the locks changed.

Landlords have also suffered. When the economy dipped last year, tenants reportedly skipped town without paying the rent. They left the keys in the flats’ letterboxes.

‘Nowadays, such cases are common. Why? Because the tenant can’t afford to pay, or the landlord has some reasons to get back his place and finds an excuse,’ said Mr Andrew Tan, a senior division director from real estate agency Dennis Wee Group.

Rental agents who spoke to The Sunday Times said tenants and landlords should exercise due diligence and abide by proper tenancy procedures – to protect themselves if a dispute arises.

For example, tenants should ensure that their landlords are the actual owners of the flats and have approval to rent the units out. Landlords, on their part, should check their tenants’ particulars.

Proper tenancy agreements should be drawn up, setting out detailed terms and conditions. Stamp duty has to be paid too.

‘If everything is done in the right manner, the tenant should have no fear at all,’ said Mr Richard Sim, an agent with real estate agency ERA.

Mr Tan also advised tenants to pay the monthly rental using bank transfers, so ‘there’s a record’.

‘It’s not advisable to pay cash. Even if you had written a receipt, the owner can say he didn’t sign it,’ he said.

Above all, said ERA agent Paul Ravie, tenants and landlords must honour the tenancy agreement.

‘This is an important document, but many people don’t really take it as a serious, binding contract,’ he said, adding that agents must take care to explain the terms to both parties ahead of the signing.

Source : Sunday Times – 7 Feb 2010

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The homeless deserve better treatment

Posted by Singapore Property Match on February 7, 2010

As someone who works with like-minded individuals to help and raise awareness of the homeless in Singapore, I am heartened by last Sunday’s article, ‘Number of homeless people doubles’, which gave the issue a much-needed public airing.

Among several shortcomings is the treatment of the homeless by some agencies which purport to help them.

For instance, some of the homeless people tell us they are treated rudely by National Parks Board (NParks) officials.

Also, a pregnant mother of two told us that when she went to the Ministry of Community Development, Youth and Sports to seek help, she was advised to rent a room at a backpackers’ hotel for $20 per night.

One of us managed to find her a place at a homeless shelter.

We also learnt that two families who were taken to and stayed overnight at the Angsana Home, a home for the destitute mentioned in another article (‘Govt help turned his life around’), were not informed of the involuntary confinement there.

Even though two of the family members had jobs, they were not allowed to report for work the next day.

It is also relevant to consider whether the Angsana Home, with its high fences and heavy police presence, and which has inmates who may be prone to violent behaviour, is a good place to house people who, apart from a lack of shelter, can care for themselves.

Also, why were HDB flats suddenly leased out as shelters to the homeless, when the authorities must have known about their increasing numbers for a long time?

And if there is a reasonable explanation for the shortage of shelters, why are NParks officials chasing the homeless away from the beaches, knowing full well they have nowhere else to go?

Another article, ‘Strict housing policies, illness and divorce leave some stuck’, suggests that the homeless are irresponsible and cannot plan for their future, by stating that they do not save for crises like unemployment or illness.

In fact, some of the homeless people spend their entire income on the bare necessities, so it would be impossible to have enough money to service a housing loan.

Finally, if the financial crisis is not to be blamed for the increase in the number of homeless people, is it possible that there are many people who cannot afford public housing any more?

Joshua Chiang

Source : Sunday Times – 7 Feb 2010

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Single PR can’t buy resale HDB flat

Posted by Singapore Property Match on February 7, 2010

I refer to last Sunday’s sidebar, ‘What properties can PRs buy?’, alongside the article on what permanent residents look for when buying resale flats (‘When PRs buy HDB resale flats, key considerations are cost, location’).

The sidebar stated that ‘PRs are allowed to buy resale HDB flats – but not new flats – without housing and mortgage subsidies’.

This is not entirely true.

Single Singaporeans over the age of 35 are allowed to buy resale HDB flats, but a single PR cannot do so.

I have appealed against this ruling for the last year or so, but have been unsuccessful.

I am nearly 59 and divorced, but am contributing to Singapore by teaching English and creative writing. I was born and raised in Singapore and was a citizen.

Nearly 30 years ago, I married an Englishman, and later took up British citizenship. I did so not because I was disloyal to Singapore, but because Singapore did not permit dual citizenship.

Five years ago, I divorced my husband. I have two sons who have served national service and retained their Singapore citizenship. They now live here.

I decided to come back to Singapore to live when my grandchildren were born. My sons managed to help me get PR status here.

I applied for an HDB flat as I could not afford a private apartment. I went to see the Housing Board, but my application was rejected. This year, I made an appeal and it was rejected too. So I have to stay with my family when I am in Singapore.

I understand the need for stringent housing rules so that people do not abuse the system, but I feel that some cases have to be reviewed with humanity.

Josephine Chia (Ms)

Source : Sunday Times – 7 Feb 2010

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Collective-sale fervour returning

Posted by Singapore Property Match on February 7, 2010

Last Wednesday, Credo Real Estate sealed the first collective sale of the year.

Four owners of a Balestier industrial plot benefited when they sold their Jalan Ampas site – which can be converted into residential use – for $27.5 million.

More such deals are likely to be inked this year, after a dry year when just one collective sale was done. That was Block 18 of Dragon Mansion, completed in early December.

But the success rate will depend a lot on the market and owners’ expectations, consultants said.

Already, property consultants say many owners are again placing their hopes on hitting the collective-sale jackpot, in line with the improved property market and brighter economic outlook.

‘More estates are now forming sales committees to either start the sale process or re-start the process for those that had not been transacted successfully previously,’ said CKS Property Consultants’ investment manager Chia Mein Mein.

An industry observer pointed out that most developers are running out of land for mass market projects, so they are very keen to buy.

‘But prime land is another story. They still have quite a lot of it.’

Credo Real Estate’s deputy managing director Tan Hong Boon said: ‘We should see more activities towards the end of this year as many owners are keen to start the collective-sale process now.’

With more inquiries coming in, property consultants are busy pitching for jobs.

Many keen estates are those that had tried to sell en bloc but failed in the previous peak in 2007, the consultants said.

These include Pender Court off West Coast Highway, Royalville in Bukit Timah and Hawaii Tower in Meyer Road.

Collective-sale launches so far this year include the 11-unit Holland Hill Lodge, which was put up for sale en bloc last month at an indicative price range of $15 million to $16 million, or $1,038 to $1,107 per sq ft per plot ratio.

More launches can be expected from the second quarter, said Mr Tan.

A total of 116 collective sales were done at the peak of the property boom of 2007.

This figure slipped to only eight in 2008 amid the global financial crisis.

This year, there will certainly be more sales, consultants predict. However, some owners of prime or mid-end projects continue to hope for prices that are above the previous peak, they said.

Now that resale prices are moving up, more people are worried that they cannot get a similar replacement property, explained a consultant who declined to be named.

Still, the problem is the gap between buyers and sellers’ expectations.

‘There’s still a great mismatch in prices. Developers are quite cautious,’ he said.

Source : Sunday Times – 7 Feb 2010

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Wing Tai’s Q2 net profit up 7% at S$22.3m

Posted by Singapore Property Match on February 6, 2010

Wing Tai Holdings on Friday announced a profit of S$22.3 million for the fiscal second quarter.

This was a 7 per cent increase from the corresponding period last year.

Revenue for the quarter came in at S$177 million.

This was a 93 per cent increase from the same period last year.

For the half-year ended 31 December 2009, the Group posted a revenue of S$454.3 million.

This was a 101 per cent increase from the corresponding period the year before.

The increase was mainly due to the higher contributions from the development properties division as more units were sold.

This included units sold in Belle Vue Residences and the progressive sales recognised from The Riverine by the Park in Singapore.

Based on the growth forecast of the Singapore economy and its expected positive impact on the property market, the Group said it will focus on marketing new residential projects and releasing more units for sale this year.

Source : Channel NewsAsia – 5 Feb 2010

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GuocoLand posts Q2 net profit of S$60.4m

Posted by Singapore Property Match on February 6, 2010

GuocoLand has recorded a remarkable recovery in its second-quarter net profit.

The property developer posted a net profit of S$60.4 million for its second quarter ending December 31, a hefty increase from its earnings of about S$900,000 a year ago.

The higher profit contribution for the second quarter was mainly from property development projects in China.

Strong sales from its Ascot Park development and the sale of an office block in the Changfeng project contributed to the higher earnings in the quarter.

Revenue for the quarter also jumped 284 per cent to S$363.7 million from the same period last year.

Administrative expenses for the second quarter increased by 46 per cent to S$13.1 million.

This was mainly due to due to higher staff expenses and other administrative expenses.

Despite concerns about potential risks of an asset price bubble, the Group said that it still enjoys healthy sales in its property development projects in Singapore and China.

Looking ahead, the Group said it will continue to source for land for development, and prime its launch-ready projects for sale at the right time.

Source : Channel NewsAsia – 5 Feb 2010

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