Filial Singles To Get More CPF Housing Grant

Under the usual Single Singapore Citizen (SSC) Scheme, single Singapore Citizens aged >=35 yrs can get a CPF Housing Grant of $11k to buy a HDB resale flat.

However, to encourage children to look after their parents, single S'pore citizens who buy a HDB resale flat with their parents may apply for higher CPF Housing Grant of $20k wef 1 Apr 08. This higher-tier Singles Grant also applicable to eligible singles buying DBSS flats with their parents.

* HDB-SingleGrant , CNA-SingleGrant *

Feb US New Home Sales Fell 1.8%

New home sales fell 1.8% in Feb. Yr-to-yr median sales price down 2.7%, but mth-to-mth rose by 8.2% to $244k.

Inventory fell 2.1% to 471k homes, which would take 9.8 mths to clear.

* CNBC-NewHomes *

A New Mall In Serangoon Soon?

Tender for a 99-yr LH white site above Serangoon MRT closed yesterday, with the highest bid at $800.9m, which surpassed expectations. With a GFA of 87,527 sm, this equates to about $850 psf.

A mall is likely to be developed there as it would bring the highest profit margin. With a net lettable area of about 600k sf, ave gross rent would be around $14 psf. The development will have to integrate with a new bus interchange and the MRT station.

* AsiaOne-S'goon *

Record Bid For Yishun Condo Site

MCL Land has offered $213.5m (~$350 psf ppr) for a 99yr LH condominium site at Yishun when tender closed yesterday. The completed unit may sold at $830 - $900 psf, according to KF's Mr Nicholas Mak. Nearby 14-yr-old Orchid Park Condo units have been sold for an ave price of $460 psf.

* AsiaOne-Yishun *

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Buy a high floor unit to enjoy the reservoir's scenic view.

Feb US Home Sales Rebound

Sales of existing homes rose 2.9% in Feb after 6 consecutive months of declines. However, this is still 23.8% below that in Feb 07. Median sales price has also fallen 8.2% in the past yr to US$196k, and was the biggest yr-on-yr drop on record since 1968.

* CNBC-HomeSales , CNA-HomeSales *

Feb CPI at 6.5%

Mth-to-Mth: 0.5% (Last mth: 1.3%)
Yr-to-Yr: 6.5% (Last mth: 6.6%)
1st 02mth 2008: 6.6%

* SingStat-FebCPI , AsiaOne-CPI *

For Agents: New HDB Requirements for Resale Flats

wef 1 May 08, housing agents handling resale flats have to complete a Resale Checklist with their clients and submit together with the resale application. These checklists will have to be done prior to granting/exercising an OTP.

This is part of HDB's efforts to ensure buyers/sellers are aware of HDB purchase and financing policies. Buyers/sellers without agents do not have to submit the checklists.

* HDB-Checklist *

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Gee, this reminded me of SOP, SOP and more SOP when things get more and more complicated to follow simply.

Thank you HDB for coming up with these checklists, your policies can sometimes be very confusing and complicated. In fact, buyer/seller w/o agent should do the same too, why only restrict to agents???

Fed Cut Interest Rate to 2.25%

Fed cut its lending rate by 0.75%, less than the expected 1%, to 2.25%; the lowest since Feb 2005. The cost of direct loans from the central bank was also reduced to 2.5%. Stock rally and dollar rose against the yen.

Since Aug 07, when the US subprime mortgages effect was being felt, Fed has reduced its benchmark overnight rate 6x, and discount rate 8x. There were at least $195b in writedowns and credit losses so far.

Home prices continued to decline with more foreclosures. The S&P Case-Shiller home price index has dropped 9.1% from Dec 06.

* Bloomberg-Fed , CNBC-Fed , CNA-Fed , AsiaOne-Fed *

Hong Kong's Hot Properties

Hong Kong's ultra high-end residential areas such as The Peak and the South Side are seeing houses selling at about HK$300m (S$53m) and are still moving north due to very tight supply.

This year, about 18 new houses are available at The Peak, 11 at the South Side and 165 at Mid-Levels. Only about 1,000 units in residential sector are estimated to be completed in 2008.

As inflation and rents are going up, more people choose to buy. In Nov 07, the number of S&P rose to 15,759, biggest jump in a single month since Jul 97.

* AsiaOne-HK *

Quiet Market

In Feb, only 185 units of 343 units launched were sold, down significantly from Jan's 328 units sold. However, prices are still holding steady.

A peek at some units sold in Feb and their median prices:
- Aalto @Jln Kechil, 2units sold, $2,619 psf (Jan: 3units at median $2,078 psf)
- Cosmo @Guillemard Cres, 41units sold, $1,098 psf
- Waterfront Waves @Bedok Reservoir, 26units sold, $808 psf
- La Casa (EC) @Woodlands, 15units sold, $557 psf
- Martin Place Residences @Kim Yam Rd, 11units sold, $1,723 psf
- Blu Coral @Telok Kurau, 9units, $872 psf
- Mt Sophia Suites @Sophia Rd, 5units, $1,709 psf (Jan: 12units at median $1,719 psf)

Over at en-bloc sale, just 1 small deal was closed, compared to 25 deals in the same period a yr ago. Freehold Ban Guan Park @Holland Rd was recently sold for $31.1m, and 52unit FH Pastoral View near Novena MRT was put up for sale at a guide price of $95m, slightly below $1k psf.

* AsiaOne-Launches , AsiaOne-Enbloc *

Dwindling Property Market

Kuwait Finance House did not exercise its OTP for 97 units of Goodwood Residence, which it had agreed to pay $818.4m in Dec 07. The median price of $3.2k psf would have set a record for that area.

Goodwood Residence, by GuocoLand, is located at former Casa Rosita site along Bukit Timah Rd, near Newton Circus. The 210-unit FH project sits on a 24,845 m2 site.

GuocoLand is in talks with KFH and may consider to grant a fresh options for the units.

* CNA-Goodwood , AsiaOne-Launches , GuocoLand-Goodwood , ST-GreenAward *

Feb US Jobs Fell by 63k, Highest in 5yrs

For 2nd consecutive mth, and the biggest in 5yrs, payrolls fell by 63k.

This triggered further decline in US$, and higher oil price; and with credit squeeze, consumers are likely to reduce spending.

* CNBC-Payrolls , Bloomberg-Payrolls *

Circle Line Effect?

(1) Bartley Station


(2) Lorong Chuan Station


(3) Marymount Station


(4) Dakota Station


(5) Mountbatten Station

Tightened Credit

Banks are tightening their financing to property investment deals as global credit squeeze has raised awareness of risks, and several mega projects here have left less liquidity for others. S'pore law also caps banks' exposure to property-related loans (excl owner-occupied properties) to 35% of their total loans.

Given a softer property mkt now, banks are giving smaller loans to buffer against a fall in property values, and smaller or new players may find it harder to get loans for their property development.

* AsiaOne-Tightening *

Mar08 DC Revision

Lastest DC rates revision may indicate a slower mkt as the changes were quite minimum except for 'Industrial & Warehouse' group.

Ave DC rates changed:
Group A - Commercial: 1.5%
Group B1 - Landed Residential: 0%
Group B2 - Non-landed Residential: 2.6%
Group C - Hotel & Hospital: 3.3%
Group D - Industrial & Warehouse: 16.8% (Only group to have jumped so much)

* URA-DC , AsiaOne-DC , RadarGaga-LastDC *