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therock
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As explained since 2015… SG, a tiny stable dot amidst all the uncertainty in the world. Every piece of unit is a collectors’ item. Get private much better if you can to avoid all the issues of sour grapes.

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1 minute ago, Windwaver said:

Tenet new pricelist increased by 2% :grin:

that's fking cheap ... agent says one ... "real" inflation already > 5% ... LOL

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5 hours ago, Wt_know said:

that's fking cheap ... agent says one ... "real" inflation already > 5% ... LOL

You can also wait some more, until the “recession” next year becomes clearer. Most likely eye watering…

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4 minutes ago, Showster said:

You can also wait some more, until the “recession” next year becomes clearer. Most likely eye watering…

recession ... yes ... but aint gonna be like SARS or Lehman collapse

the demand > supply 

with current interest rates and ah gong closing the tap ...

the "domino effect" should be limited and contained

hearsay, richies from PRC, Taiwan, HK, Indo, etc are parking their millions and assets in spore

:grin:

Edited by Wt_know
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2 minutes ago, Wt_know said:

recession ... yes ... but aint gonna be like SARS or Lehman collapse

the demand > supply 

with current interest rates and ah gong closing the tap 

the "domino effect" should be limited and contained

hearsay, millions and millions from PRC, Taiwan, HK, Indo, etc throwing into spore

:grin:

You know hor, so I don’t need to explain any more. 

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35 minutes ago, Showster said:

According to your article is District 21…

Yeah I meant bukit Timah lite 👍 

 

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On 12/4/2022 at 2:40 PM, Windwaver said:

Tenet new pricelist increased by 2% :grin:

https://www.edgeprop.sg/property-news/tenet-executive-condo-sold-723-units-launch-weekend

Tenet executive condo sold 72.3% of units on launch weekend

SINGAPORE (EDGEPROP) - The last major launch of 2022 ended on a high note, with executive condo (EC) Tenet selling 447 out of a total of 618 units (72.3%) on the first day of launch on Saturday, December 3. The joint venture partners behind Tenet are developers Qingjian Realty, Santarli Realty and Heeton Holdings. The strong take-up rate was achieved despite the launch being held in December when most people are travelling overseas after the pandemic, says Yen Chong, deputy general manager of Qingjian Realty, on behalf of the consortium.

“It caps off another good year for the property market,” says Mark Yip, CEO of Huttons Asia.

The average price achieved at Tenet is about $1,360 psf, a new high in the EC cohort. “Tenet can command a premium given its location in Tampines, a mature and hotly sought-after residential area,” says Ismail Gafoor, CEO of PropNex. “While it has set a new benchmark price for ECs, it’s still lower than the new 99-year, suburban condos launched at average prices of $2,100 psf this year.”

Besides its location in a mature estate in the east, Tenet is within a five-minute walk of an upcoming government land sales (GLS) site zoned for a mixed-use development, including a future mall of about 14,000 sqm (150,696 sq ft). The development will be integrated with a transport hub - Tampines North MRT station on the Cross Island Line and the bus interchange. “The mall is about the size of White Sands mall and will be an added convenience for homebuyers, in addition to the specifications and provisions provided by the developer of Tenet,” says Ken Low, managing partner of SRI.

In addition to its proximity to the future mixed-use development and integrated transport hub at Tampines North, Tenet is also situated in the vicinity of three major transformation areas: Changi Region, Paya Lebar Airbase and Punggol digital district, says Doris Ong, deputy CEO of ERA Singapore. “The proximity to the upcoming mixed-use development and growth areas presents buyers of Tenet with upside potential.”

According to Qingjian Realty, while all the three-, four- and five-bedroom units were well-received, the most popular unit types among homebuyers were the four-bedroom types.

Most of the buyers at Tenet are existing residents in Tampines as well as those from the surrounding neighbourhoods in the eastern region, such as Bedok and Pasir Ris, notes ERA’s Ong. “For many first-timers and HDB upgraders, it means being close to their parents or in-laws but enjoying the lifestyle and privacy of a private condo,” she says.

“Buyers of EC projects have two distinct advantages - no need to pay the additional buyer’s stamp duty [ABSD] upfront and the option of the deferred payment scheme [DPS],” adds Huttons’ Yip.

The availability of DPS is one of the main draws of ECs, “especially in a climate of high interest rates”, notes SRI’s Low. “We saw a much larger proportion of buyers opting for DPS at a 3% higher purchase price,” he says.

The strong sales at Tenet follow that of Copen Grand, the 639-unit EC in the new Tengah Town in the west. Launched on Oct 22, Copen Grand saw 465 units (73%) sold at an average of about $1,300 psf. When sales bookings opened up for second-timers on Nov 26, the remaining 146 units at Cope Grand were snapped up, with the project entirely sold in just over a month.

Second-time buyers or second-timers refer to homebuyers who have purchased a subsidised HDB flat or received CPF housing grants before and are buying another one, according to HDB. Under the prevailing EC regulations, only 30% of the units in a new EC project can be allocated to second-time buyers.

At Tenet, second-time buyers who are interested in the project but were unable to pick up a unit during the launch period will have a chance to purchase a unit, with e-application to start from December 30 and sales booking scheduled for January 7, 2023, according to Qingjian Realty.

“When sales booking opens for second-timers 30 days from now, I won’t be surprised if Tenet achieves close to or 100% take-up rate, like Copen Grand,” says PropNex’s Gafoor.

While the economic outlook for 2023 is softer, “the current employment situation is strong, and Singapore residents saw real income growth for the second straight year despite high inflation,” says Huttons’ Yip. “These are key confidence boosters for homebuyers.”

A likelihood of the US Federal Reserve taking its foot off the pedal on rate hikes could also have given more assurance to buyers to commit to the property purchase, according to PropNex research head Wong Siew Ying.

The next EC project launch is the Bukit Batok West Avenue 8 project which could hit the market in mid-2023, says PropNex’s Wong. The 375-unit EC project is another joint venture between Qingjian Realty and Santarli Realty. With the diminishing balance inventory of new EC units, she expects the next project launch to “garner an enthusiastic response from HDB upgraders and owner-occupiers seeking an affordable entry-point into the private residential property market”.

a9181e-LANDLENS-TENET.jpg

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https://mothership.sg/2022/12/hdb-bto-flats-pricing

HDB explains how it sets BTO selling prices, says flat pricing is ‘totally separate’ from project costs

HDB also explained at length how its pricing approach is "fundamentally" different from that of private developers.

The Housing and Development Board (HDB) prices Build-To-Order (BTO) flats with affordability in mind, which means a profit margin is not applied to costs.

Rather, housing affordability is determined by HDB looking at the household incomes of buyers and the selling prices of the flats on offer, the statutory board and the Ministry of National Development (MND) said in a joint statement on Dec. 7.

The statement was made in response to media queries on how BTO flat prices are determined, and the development costs incurred by HDB.

How is household income used to determine affordability?

The statement said HDB looks at the resident household incomes, and compares them with the range of flat types and selling prices on offer at every BTO launch, using benchmarks such as the Mortgage Servicing Ratio (MSR), which refers to the proportion of monthly income used to service mortgage instalment payments.

Such benchmarks consider a range of different household incomes, both above and below the median household income level, to ensure a wide range of BTO flats for first-time homebuyers with different housing needs and budgets, the statement said.

HDB also offers housing grants, tiered by household incomes, to eligible first-time buyers, providing "targeted" help to those who need it most.

HDB and MND added that for the first half of 2022, 90 per cent of flat buyers who collected keys to their new flats in non-mature estates and more than 80 per cent of such buyers for mature estates used 25 per cent or less of their monthly income to service their HDB loan instalment payments, meaning that they had an MSR of 25 per cent or lower.

This also means that these flat buyers can service their HDB loans using their monthly Central Provident Fund (CPF) contributions, with little or no cash outlay, according to the statement.

What about the selling prices of BTO flats?

HDB and MND said selling prices of new BTO flats will not be uniform, as BTO projects are launched every year in different housing estates across the island.

The prices will therefore have to take into account the different attributes and locational factors of the flats on offer at each BTO launch.

This also ensures fairness for the buyers as these HDB flats can be bought and sold in the resale market after the five-year Minimum Occupation (MOP) period, with the locational and other flat attributes reflected in the resale prices, and any benefits accruing to the flat owner or seller.

Elaborating on the process of pricing new BTO flats, the statement said HDB first establishes the market value of the flats by considering the prices of comparable resale flats nearby, which is influenced by prevailing market conditions, as well as the individual attributes of the flats.

HDB then applies a "significant subsidy" to the assessed market values to ensure that new flats are affordable for flat buyers.

The difference in prices between the comparable resale flats and subsidised flats broadly reflects the market subsidies provided for the new flats, after accounting for differences in attributes, which include tenure.

HDB's subsidies will also move in tandem with resale prices

In addition, besides the varying attributes of new flats across BTO projects, market conditions may also fluctuate between BTO launches.

The extent of market subsidies applied by HDB will therefore vary across BTO projects in different launches, the statement said.

Such variation protects homebuyers from market fluctuations and ensures that BTO flats remain stable and affordable, MND and HDB added.

Hence, when resale prices move up, HDB will also need to increase market subsidies in tandem to keep BTO prices affordable.

HDB and MND said, "The market subsidies have been factored into the selling prices of BTO flats, and flat buyers should consider the selling prices, alongside their housing budget and personal preferences, when deciding on a flat purchase."

A similar approach has also been adopted for the Prime Location Public Housing (PLH) projects.

As new flats in prime locations naturally command higher market values, PLH flats are priced with additional subsidies, according to the statement.

This is on top of the market subsidies accorded to all BTO flats, to keep PLH flats affordable to a larger group of Singaporeans, especially first-timers.

HDB and MND further pointed out:

"For parity with other BTO flat owners who are not accorded these additional subsidies and to reduce windfall gains, PLH flat owners will need to pay a fixed percentage of the higher of the resale price or valuation of the flat to HDB, upon sale of their flats, to reduce any excessive windfall gains."

HDB's approach is "fundamentally" different from private developers

The statement also highlighted how HDB's pricing approach is "fundamentally different" from that of a private developer's cost-based approach for private residential developments, which takes into account provision for a profit margin.

For HDB, its flat pricing approach is "totally separate and independent" from the BTO projects' development costs.

By increasing the subsidy applied in a rising property market, HDB has kept BTO flat prices relatively stable, the statement pointed out.

Such was the case, even in the past two years where construction costs increased by almost 30 per cent.

Further highlighting that such a practice was not just applied during the past two years of the pandemic, HDB and MND said the increase in BTO flat prices before grants, from 2012 to the first three-quarters of 2022, has kept within the growth in resident household incomes.

table-1.jpg

Average selling prices per square foot for BTO flats over the span of a decade in 2012 (before grants) and the first three quarters of 2022 (before grants). Screenshot via MND and HDB

From 2012 to 2021, the median resident employed household income grew by 26 per cent. Meanwhile, the resident employed household income at the second income deciles grew at a faster rate during that period, by 32 per cent.

The statement also noted, "On top of the subsidy applied, HDB provides housing grants to help targeted demographic groups achieve their home ownership aspirations, and housing grants have also increased several times over the same period."

HDB pays fair market value for public housing land

As for land costs, the statement said HDB pays fair market value for land that is developed into public housing.

The fair market value is determined independently by the Chief Valuer in accordance with market conditions and established valuation principles.

Explaining the differences between land used for public housing and private residential use, the statement said the former is meant for providing affordable homes to Singaporeans, and buyers of public housing flats are subject to more restrictions than buyers of private residential flats.

The price of land for public housing is thus lower compared to the land price for private housing in the same locality, said the statement.

This differential reflects the more stringent eligibility criteria and conditions that buyers of public housing must meet in terms of income, citizenship, and minimum occupation period, and so on.

Proceeds from HDB’s land purchase are also paid back into the Past Reserves, which are in turn invested to generate returns for future generations of Singaporeans.

Total development cost cannot be fully covered by selling prices of flats

As for the total development cost, which includes construction and land costs, it cannot be fully covered by the selling prices of flats because these flats are highly subsidised.

"That is why HDB incurs significant deficits every year in its Home Ownership Programme, which are reflected in HDB’s Annual Reports found on the HDB InfoWEB," the statement said.

As an example, HDB and MND said that for the 2021/2022 financial year, HDB recorded a deficit of about $3.85 billion in its Home Ownership Programme.

The S$3.85 billion deficit stems mainly from the gross loss on flat sales completed, where keys are issued to buyers in the financial year, disbursement of CPF housing grants to eligible resale flat buyers, and expected loss for flats that commenced development in the financial year.

table-2.jpg

The statement also pointed out that HDB's cost of flat sales completed came up to a total of S$5.346 billion, and comprises largely $3.167 billion for land development costs, and $2.077 billion for building development costs.

The remaining S$102 million is attributable to the costs of flats acquired from ex-flat owners.

table-3.jpg

Information on BTO projects and pricing is available to the public

The statement also stated that at each BTO launch, the recently transacted prices of comparable flats are shared, alongside the selling prices for each BTO project.

"These prices clearly show that each BTO project is priced substantially lower than comparable resale flats, due to the significant subsidies applied," MND and HDB said.

Relevant price-related information for different family archetypes is also provided, with each BTO launch having illustrations to show how homebuyers with different household incomes can afford different flat types.

Such information is generally not made available for private residential development projects.

Both MND and HDB noted that the statutory board also publicly shares information on the construction and development costs of its BTO projects on the following platforms:

  • The construction cost of every HDB BTO project is public information, as successful tenderers by contract sums are published on the HDB InfoWEB and in GeBIZ. This is not the case for residential projects by private developers.
  • HDB also publishes the cost of building flats and the revenue from the sale of flats in its Annual Report. This is similar to listed companies of private developers which release aggregate figures on costs and profits in their Annual Reports.
    • However, a key difference is that HDB’s annual report captures development loss from its homeownership programme, while private developers’ annual reports mostly show profits, which reflects HDB's primary pricing principle of ensuring affordability.

HDB.jpg

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Supercharged
1 hour ago, Windwaver said:

Elaborating on the process of pricing new BTO flats, the statement said HDB first establishes the market value of the flats by considering the prices of comparable resale flats nearby, which is influenced by prevailing market conditions, as well as the individual attributes of the flats.

So who provides the valuation of nearby resale unit price?

Ans.  et-dee-bee loh....:grin:

Gar gee gong, gar gee song  :lll._.:

Once upon a time, a minister said, "'We subsidised you when you buy and we increased the value of your flat when you live in it and... facilitate you to monetise it when you grow old. This is the best form of investment and welfare for the people."

knnbccb :pissed-off: You see why they spend so much effort trying to justify HDB is affordable?

The burden is on our children when they start looking for a place to live.

Edited by Didu
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11 minutes ago, Didu said:

So who provides the valuation of nearby resale unit price?

Ans.  et-dee-bee loh....:grin:

Gar gee gong, gar gee song  :lll._.:

Once upon a time, a minister said, "'We subsidised you when you buy and we increased the value of your flat when you live in it and... facilitate you to monetise it when you grow old. This is the best form of investment and welfare for the people."

kknbccb :pissed-off: The burden is on our children when they start looking for a place to live.

Your GST is used to subsidise your children’s HOME

🤭

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https://www.channelnewsasia.com/singapore/drastically-lowering-bto-hdb-prices-land-costs-hurting-singaporeans-sim-ann-3137456

Drastically lowering BTO prices by disregarding land costs will only end up hurting all Singaporeans: Sim Ann

Increasing housing subsidies further must be weighed carefully against other urgent spending priorities, says Senior Minister of State for National Development Sim Ann.

SINGAPORE: "Drastically" lowering the prices of Build-to-Order (BTO) flats, to the extent of disregarding land costs, would end up "hurting all Singaporeans, instead of helping them", said Senior Minister of State for National Development Sim Ann on Sunday (Dec 11).

She was responding to a post by NCMP Leong Mun Wai (PSP) on his Facebook page and website that questioned the Government’s subsidies for Housing and Development Board (HDB) flats.

Mr Leong also said that land costs should not be included when pricing HDB flats, and that the Government should only include construction costs and price differences between locations.

Ms Sim said the Government cannot disregard land costs if it accepts that land values vary across locations.

"I conclude that what Mr Leong is really asking for is the Government to price BTOs much lower, whatever the justifications may be," she added.

The Government has been increasing subsidies and grants where necessary to keep BTO prices affordable and stable, despite resale prices surging 28 per cent from 2019 to 2022, Ms Sim said.

Further increasing housing subsidies must be weighed carefully against other urgent spending priorities. It would mean reducing spending on other important things such as education, healthcare and security, the Senior Minister of State said.

“We may well also have to raise taxes to pay for the higher housing subsidies,” she said.

“Mr Leong’s response would be that the Government can charge HDB less for the land.

“By this, he means that we should draw more from our Reserves, though he has avoided saying this explicitly. We have explained a number of times that state land forms part of the nation’s Reserves.

“If HDB does not pay back into the Reserves the fair market value of the land, we would in effect be running down the value of our Reserves, to the detriment of current and future generations.”

Ms Sim added that the Government has kept BTOs affordable for Singaporeans and will continue to do so. For many buyers, the home price to annual income (HPI) ratio is about four to five. This means buyers use about four to five years of total household income to pay for their BTO flats.

In comparison, HPI ratios in global cities range from eight times to more than 20 times, she added.

Many BTO flat owners service their mortgages solely out of their CPF contributions and pay “little or no cash”, Ms Sim noted.

They use about 25 per cent or less of their monthly income to pay for their housing loans, she said, adding that owners in other countries use a larger proportion of their pay.

“Hundreds of thousands of homeowners who bought their flats from Housing and Development Board have sold them for higher prices in the resale market. They know HDB’s pricing of BTO flats is generous,” Ms Sim wrote.

She said concerns about affordability usually focus on larger units, but such flats are already priced at a “very generous discount to the open market”.

There is a limited supply of such units, and pricing them lower would attract more eligible buyers into the queue, making it less likely for those starting families to obtain one.

“This would also be unfair to all the buyers not lucky enough to secure such a flat, and enjoy the large windfall gain,” she said.

show-photo.jpg?id=2293174

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3 minutes ago, Windwaver said:

https://www.channelnewsasia.com/singapore/drastically-lowering-bto-hdb-prices-land-costs-hurting-singaporeans-sim-ann-3137456

Drastically lowering BTO prices by disregarding land costs will only end up hurting all Singaporeans: Sim Ann

Increasing housing subsidies further must be weighed carefully against other urgent spending priorities, says Senior Minister of State for National Development Sim Ann.

SINGAPORE: "Drastically" lowering the prices of Build-to-Order (BTO) flats, to the extent of disregarding land costs, would end up "hurting all Singaporeans, instead of helping them", said Senior Minister of State for National Development Sim Ann on Sunday (Dec 11).

She was responding to a post by NCMP Leong Mun Wai (PSP) on his Facebook page and website that questioned the Government’s subsidies for Housing and Development Board (HDB) flats.

Mr Leong also said that land costs should not be included when pricing HDB flats, and that the Government should only include construction costs and price differences between locations.

Ms Sim said the Government cannot disregard land costs if it accepts that land values vary across locations.

"I conclude that what Mr Leong is really asking for is the Government to price BTOs much lower, whatever the justifications may be," she added.

The Government has been increasing subsidies and grants where necessary to keep BTO prices affordable and stable, despite resale prices surging 28 per cent from 2019 to 2022, Ms Sim said.

Further increasing housing subsidies must be weighed carefully against other urgent spending priorities. It would mean reducing spending on other important things such as education, healthcare and security, the Senior Minister of State said.

“We may well also have to raise taxes to pay for the higher housing subsidies,” she said.

“Mr Leong’s response would be that the Government can charge HDB less for the land.

“By this, he means that we should draw more from our Reserves, though he has avoided saying this explicitly. We have explained a number of times that state land forms part of the nation’s Reserves.

“If HDB does not pay back into the Reserves the fair market value of the land, we would in effect be running down the value of our Reserves, to the detriment of current and future generations.”

Ms Sim added that the Government has kept BTOs affordable for Singaporeans and will continue to do so. For many buyers, the home price to annual income (HPI) ratio is about four to five. This means buyers use about four to five years of total household income to pay for their BTO flats.

In comparison, HPI ratios in global cities range from eight times to more than 20 times, she added.

Many BTO flat owners service their mortgages solely out of their CPF contributions and pay “little or no cash”, Ms Sim noted.

They use about 25 per cent or less of their monthly income to pay for their housing loans, she said, adding that owners in other countries use a larger proportion of their pay.

“Hundreds of thousands of homeowners who bought their flats from Housing and Development Board have sold them for higher prices in the resale market. They know HDB’s pricing of BTO flats is generous,” Ms Sim wrote.

She said concerns about affordability usually focus on larger units, but such flats are already priced at a “very generous discount to the open market”.

There is a limited supply of such units, and pricing them lower would attract more eligible buyers into the queue, making it less likely for those starting families to obtain one.

“This would also be unfair to all the buyers not lucky enough to secure such a flat, and enjoy the large windfall gain,” she said.

show-photo.jpg?id=2293174

Proceeds from land sales go to Govt reserves while govt subsidy to HDB comes from current financial year revenue.

There is a mismatch in terms of revenue and expenses.

Recognition proceeds from land sales in govt reserves started from 1G

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