Mar09 DC Rates Revision

wef 1 Mar 09, 4 grps will have lower DC rates:
~ Grp A (Commercial): -4%
~ Grp B2 (Res - NL): -15% (LastRev: -6%)
~ Grp C (Hotel, Hospital): -10%
~ Grp I (Biz zone commercial use): -4%

The rest remains unchanged.

* URA-DC , URA-Grouping , URA-DCRates *

Before You Leap ... ...

As pty prices continue to fall, some banks are disbursing a smaller loan amount to borrowers, and buyers will have to either top-up the diff or pay a 1-1.5% penalty for backing out the bank loan. This is because formal valuation lags behind indicative valuation, and when prices continue to drop, it will result in a lower valuation on a pty.

Some banks are also staying clear fr some developments such as The Sail and Sentosa Cove due to large variations in valuation. A Citigroup report showed that prices of high-end pty had dropped by abt 35% fr a yr ago, and could further drop by 30-40% this yr.

* AsiaOne-Valuation *

KL Luxury Condo Price Dived

Prices of luxury condos in KLCC area hv dived amid economic downturn, and as foreigners cash out.

Top KLCC apartment used to sell around RM3k psf (S$1,254 psf) during the peak. Now, most projects are selling abt RM1+k psf in the secondary mkt, except for some premium units which developers are asking abt RM2k psf.

* AsiaOne-KLCondo *

Strong Interest in Caspian

Caspian, by Frasers Centrepoint, attracted very strong interest at its preview last wk. This is the 1st major condo launch tis yr.

Located beside Lakeside MRT, the 712unit LH condo was priced at $580 psf for the 1st batch of 250 units. Subsequent 100 units with better facing were sold at $600 psf. Buyers who opted for interest absorption scheme hv to pay 3% more on the purchase px.

Nearby condos like Lakeholmz and Lakeshore are commanding at $564 - $626 psf and $750 psf respectively. The Centris at Boon Lay MRT was transacted at ard $550 psf last mth.

* ST-Caspian , AsisOne-Caspian , Frasers-Caspian *

Prime Projects Near Ave Launch Prices

A study by Savills S'pore showed tt recent economy downturn has led to a handful of uncompleted prime residential pty sold at prices below or near to their ave launch levels.

For projects launched in 2005, transacted prices remained well above their ave launch prices. But not so for those launched in 2006 - 2008.

Projects falling below launch levels (Non-landed in D1, 4, 9, 10, 11):

* ST-Prime *

HDB Lease Buyback Scheme

wef 1 Mar 09, HDB will accept application for Lease Buyback Scheme (LBS) - HDB will buy back the tail-end of the lease, leaving the elderly with a non-transferable 30yrs lease.

Eligibility:
- Singaporean
- Age of youngest lessee is >= 62yrs old
- Household income <= $3k
- <= 3Rm flat, with outstanding mortgage <= $5k
- Hv not owned >= 4Rm flat or pte pty
- Hv only enjoyed 1 housing subsidy
- Hv owned the flat for >= 5yrs

Equity Unlocked:
- Value of flat depends on (1) mkt value, and (2) length of the remaining lease.
- Govt subsidy of $10k.

Payout:
- $5k lump sum
- Remainder will be used to purchase an annuity fr CPF to provide mthly stream of income for life. The amt of mthly income depends on the equity unlocked (minus $5k), the age and gender of the lessee(s).

If the elderly passes away b4 30yrs is up, his fmy will get a pro-rated refund. And if he lives beyond 30yrs, HDB will also ensure a roof over his head.

* HDB-Leaseback , Asia1-Leaseback *