More Infill Sites For Sale

The Govt has put 8 small plots of 99-yr infill sites on sale, and the auction will be held on 21 Aug at M Hotel.

(1) Namly Ave (D10), 7,769sf - A 3-storey bungalow
(2) Ridout Rd (D10), 15,461sf - A GCB
(3) Braddell Rd (D13), 8,457sf - A 2-storey bungalow
(4) Upper East Coast Rd (D16), 7,365sf - A pair of 3-storey semi-D
(5) Tanah Merah Kechil Rd (D16), 4,360sf - A pair of 3-storey semi-D
(6) Jln Pari Burong (D16), 12,255sf - A 3-storey mixed landed
(7) Glasgow Rd (D19), 4,720sf - A 3-storey bungalow
(8) Jln Lempeng (D21), 14,157sf - A 3-storey bungalow

* SLA-Infill *

Buyers Liable For Unauthorised Works

A couple paid 5% deposit for a $1.18m 1-1/2 storey house at Lor 105 Changi Rd, only to discover that extra storey was an unauthorised structure while the paperwork was in process.

They wanted the sellers to put it right and pay for the alterations, but the High Court threw out their application for damages with costs, as BCA's reply to the buyers' lawyers of the unauthorised A&A came after the S&P contract was signed. Moreover, the buyers did not have any special clause to cancel the deal should any unauthorised works was found. The risk of a property passed to the buyer once the option was exercised.

In a similar case in 1993, the Court of Appeal held that so long the BCA had not issued a notice, the unauthorised works did not constitute defects in title.

* AsiaOne-A&A *

May CPI At 7.5%

Mth-to-Mth: 0.2% (Last mth: 1.2%)
Yr-to-Yr: 7.5% (Last mth: 7.5%)
1st 05mth 2008: 7.0%

* StatSing-CPI , AsiaOne-CPI *

Aussie Properties

Ave capital growth in major Australian cites is abt 7.7%, with rental yields at 5%. With increasing population due to immigration and lower housing supply, property values in Sidney, Melbourne and Brisbane are set to go north.

Rents in Sidney rose 24% in 2007, and current yields vary fr 4%-6%. Over at Melbourne, prices have increased by 30% over the past 1.5yrs due to several universities located there. At Gold Coast, Queensland, ave rental yields are abt 5%, but are higher during peak periods. Tourists, however, usually lease for abt a week only.

When making a choice, buyers should know their objectives whether they are looking for capital growth or rental yields. Serviced apartments may offer a more hassle-free investment, and it is important to look for property marketeers/developers with good track record.

* AsiaOne-AussiePty *

Q1 Employment Data

Employment: +73,200 (Last Q: +62,500)
Unemployment Rate: +2.0% (Last Q: +1.7%)
Resident Unemployment Rate: +2.9% (Last Q: +2.4%)
Retrenchment: +2,274 (Last Q: +1,966)
Openings: +38,200 jobs (Last Q: 37,400)

Nominal Earnings: +11% (Last Q: +4.3%)
Real Earnings: +3.6% (Last Q: +5.0%)
Productivity: -2.8% (Last Q: -3.7%)
Unit Labour Cost: +8.8% (Last Q: +6.0%)

* MOM-Employment , AsiaOne-Employment *

CPF Minimum Sum At $106k From 1 July

This is nothing new, as announced in 2003, the min sum will increase gradually to hit $120k (in 2003 dollars) by 2013 to factor in inflation.

Revision wef 1 Jul 08:
Min sum in OA+SA or RA (MS): $106k (up fr $99.6k)
Min sum in MA (MMS): $29.5k (up fr $28.5k)
MA contribution ceiling (MCC): $34.5k (up fr $33.5k) [Excess will go to SA or RA]

Revision wef 1 Jan 09:
Withdrawal at age 55:
Min sum met: Remaining monies in accounts
Min sum not met: $5k or 40% of savings, whichever is higher (down fr 50%)

* CPF-Min Sum *

*****

The art and science of CPF ... headache.

Banks Raise Rates

Banks have quietly increased rates for their new fixed-rate loans by as high as 1% recently. The higher fixed rates may encourage buyers to take up loans that are linked to Sibor or SOR which offer rates transparency. However, some banks have also raised their SOR-linked mortgages by as much as 1%.

At a glance ... ...
UOB, OCBC: 3yr fixed-rate fr 2.98% to 3.68%
Std Chart: 2yr fixed-rate fr 2.68% to 3.78%

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Property market gets another bucket of cold water.

3Q08 Employment Outlook

Of the 713 bosses polled by Manpower Inc, 42% expect to increase headcount for 3Q08. This is down fr 65% polled for 2Q08. 5% expect a fall in headcount for next quarter compared to 3% polled for 2Q08.

Employers are still recruiting, but are more cautious because of economic slowdown. The most optimistic sectors are public administration & education, while the most pessimistic sectors are wholesale & retail, and mining & construction.

* Manpower-Survey , AsiaOne-Employment , CNA-Employment *

New York Home Sales Slowed

Housing crisis that led to layoffs on Wall St and smaller bonuses for bankers, is now affecting Manhattan home sale. People are worried about their jobs and do not want to commit to mortgage payments.

Sale contracts have fallen by 21% and supply has increased 4.6% to 6,194 in 1Q08, compared to a yr ago.

* AsiaOne-NY *

En-bloc Re-launch For Sale

4 estates re-launched for collective sale with a discount of up to 30%, but no changes to the reserve prices.

They are:
1) Cavenagh Gdn (Cavenagh): $450m - $455m (Last asking: $619m)
2) Novena Hill (Novena): $42m - $45m (Last asking: $60m)
3) Seletar Gdn (Yio Chu Kang): $50m - $55m (Last asking: $75m)
4) Hong Thye (Geylang): $13m (Last asking: $16m)

*AsiaOne-En-bloc *

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Talking about GSS (Great S'pore Sale) :D .

Developers --> Landlords

Developers are becoming landlords in current soft market.

Vacant apartments are leased out to generate some income, instead of tearing down the enbloc estate to build new ones. Some enbloc owners benefited from such an arrangement, as they will have more time to find their next dream houses. Tenancy, however, is short term and renewable on monthly basis.

Lincoln Lodge: $2.7k - $4.5k, various sizes
Leedon Heights: $2.85k for 3BR
Sophia Court: $800 - $4k, various sizes

* ST-Landlords *

Smaller Studio On Sale

Developers are building more studio units that are <500sf due to poor market sentiments and higher construction costs. This targets at yuppies & property investors by making homes more affordable.

* AsiaOne-Studio *

*****

Space is limited here as one can see that flats/condo are getting smaller & getting more expensive. We are on our way to living in 'capsule' (like Japan). Down the road, pple (esp the young ones) couldn't afford to buy houses and have no choice but to rent. Setting up a family will take a back seat then.

I would be interested in investing in a studio unit too as I foresee that I would only need a small space when my kids grow up and are not staying with us.