Overall median monthly rentals inched up in the second quarter, helped by the demand from those fleeing from high private property rents. Foreigners and locals who have sold their homes in a hot market are among those boosting HDB rents, experts say.

Overall, median rentals for two- and three-room flats were flat at $1,200 and $1,500 respectively. But four-room, five-room and executive flats saw median rental increases of between $50 and $100 a month from the previous quarter.

Four-room flat monthly rentals rose to $1,800 from $1,750, five-room flat rentals were $2,000 from $1,900 and executive flat rentals climbed to $2,100 from $2,000 in the previous quarter.

Median rentals for executive flats in Queenstown also passed the $3,000 mark for the first time since the fourth quarter of 2008, rising to $3,200. There were, however, fewer than 10 of such sublets.

Five-room flats median monthly rentals in the central region also hovered over the $3,000 benchmark for the second consecutive quarter at $3,150.

Executive flats in Jurong East saw one of the largest jumps, of $300, from $2,100 to $2,400, while areas such as Bukit Batok and Sengkang generally saw higher rentals across all flat types.

Property experts say these second quarter median rentals have hit the peak previously achieved in the second half of 2008. They expect further rise and new benchmarks to be set later this year.

Ngee Ann Polytechnic real estate lecturer Nicholas Mak said as private rentals rose steadily, some tenants were likely to look for cheaper alternatives.

‘The rate of rental increase might have outpaced the rental budget and so some tenants might prefer an HDB flat in a better location,’ he said.

HSR executive director (agency) Jeffrey Hong said that the strong demand is partly due to an influx of foreigners this year into sectors such as information technology, as companies have started hiring again.

Some Singaporeans who sold their property to cash in on high property prices have also decided to rent temporarily instead of buying immediately, he said.

Ms Hwa Hui-en, 24, a social worker, has been renting a four-room flat with four others near Ghim Moh for $2,000 a month since November last year.

She is worried her rent might rise when her lease ends in November as some of her friends have had to move out of rented homes due to higher asking rents.

‘Rentals are quite costly… We’re splitting the rent among five people and are sharing rooms now. If we don’t, it will probably take up a huge portion of our salary, maybe even one quarter of it.’

HDB said subletting deals rose about 15 per cent from 6,606 in the first quarter to 7,595 in the second – taking total approved sublet units to 30,500.

Source: Straits Times, 24 Jul 2010

SALES of private homes slowed towards the end of the second quarter but prices still kept heading north into record territory.

Prices rose 5.3 per cent in the second quarter – above the preliminary estimate of 5.2 per cent and not far from the first quarter rise of 5.6 per cent.

According to Urban Redevelopment Authority (URA) data released yesterday, prices are up 11.6 per cent since January and are expected to continue climbing although the pace may ease, said analysts.

Prices are now at record levels, eclipsing the 1996 peak, after shrugging off a dip in sales that began in May when Europe’s debt crisis rocked global stock markets, observers said.

Rents were also rocketing – up 5.9 per cent in the second quarter to take the half-year rise to 10.9 per cent. Rents fell by 14.6 per cent last year.

‘The continuing recovery in the economy facilitated the increased hiring of expatriate staff, which in turn, drove the rental market,’ said Mr Li Hiaw Ho, CBRE Research’s executive director.

Cushman and Wakefield managing director Donald Han added: ‘In the second half of last year, prices went up more than 20 per cent but rents fell. So, there was some fear of a bubble forming.

‘But prices are now moving in line with rent rises. As long as rents go up, the price rise should be supported.’

Non-landed home prices rose the most in suburban areas, up 5.7 per cent, from a 4.3 per cent increase in the first quarter.

City-fringe home prices were up 4.6 per cent while city-centre ones rose 5.4 per cent.

Prices of landed homes also continued to surge, climbing 6.2 per cent in the second quarter after jumping 8.3 per cent in the first quarter.

Luxury homes are the only sector yet to reach record heights, experts noted.

Yesterday’s URA data also showed that 4,033 new homes were sold in the second quarter, down about 8 per cent from the first.

As at the second quarter, there were 61,831 private residential units in the pipeline. Of these, 32,630 units were still unsold. The URA said: ‘This number is equivalent to about three years of supply based on the average take-up of about 11,300 units per year over the last three years.’

While some buyers hesitate, others have been snapping up property.

Copywriter Daryl Lee, 34, said: ‘The last thing I want is to lock my cash up in a mortgage when all people are doing is chasing higher prices to pay higher asking prices.’

Another potential buyer Alex Wee, 37, said: ‘On the one hand, things are pricey. But on the other hand, we’re afraid that if we don’t buy, we will miss the boat.’

Accounts executive Kris Lau, 33, who bought a small investment unit at a newly released project, 368 Thomson, after selling her HDB flat, said: ‘It’s a good time to cash out and upgrade.’

Jones Lang LaSalle’s head of residential project sales, Mr David Neubronner, told The Straits Times: ‘Prices… should take a breather. But given the current backdrop where our economic recovery is generating wealth, they are likely to continue to rise this year.

‘Quite a lot of people are parking their money in property for the long term. In the worst-case scenario, I think prices may stay flat.’

Ngee Ann Polytechnic real estate lecturer Nicholas Mak believes private home prices will continue to rise this year and possibly into next year but at less than 5 per cent a quarter as sales slow.

The level of speculation now is within manageable levels, he felt.

URA data shows that sub-sales fell to 723 units in the second quarter, from 996 in the first.

Mr Li said the surprisingly strong economic growth in the second quarter will help keep market sentiment positive.

‘However, as the Government is also anticipating a slowdown in the growth momentum for the rest of the year, the residential market is likely to move at a more moderate pace,’ he said.

Sales of new homes may still reach 14,000 units this year – below last year’s 14,688 units while home prices may rise by 12 to 15 per cent, he said.

Mr Mak is looking at a price rise of 16 to 21 per cent this year.

Meanwhile, office rents rose 1.1 per cent in the second quarter compared with 0.4 per cent in the first quarter.

Rents for shops and industrial properties rose by 0.5 per cent and 1.3 per cent respectively in the second quarter.

Source: Straits Times, 24 Jul 2010

RESALE prices for HDB flats have smashed records for the eighth straight quarter with a surge of 4.1 per cent in the April to June period.

Prices passed the 1996 peak back in 2008 and have not looked back since.

And the march shows no sign of letting up, with median cash over valuation (COV) at a record $30,000 in the second quarter.

This is 20 per cent ahead of the $25,000 in the January to March quarter.

COV is the cash paid upfront by a buyer over a flat’s valuation, and is often an indication of demand levels.

The HDB figures out yesterday show resale prices are almost 18 per cent above the previous peak in the last quarter of 1996.

Meanwhile, the HDB said yesterday it launched almost 9,000 new flats in the first half – equal to last year’s total supply – and will launch another 7,200 in the second half to meet demand.

It will launch 1,000 new flats in Jurong West and Bukit Panjang this month. The total home supply will be complemented by 4,700 new homes under HDB’s design, build and sell scheme (DBSS) and recently sold executive condo sites.

Despite this, resale activity keeps growing. Transactions hit 9,114 in the second quarter, up about 7 per cent on the first.

Nearly all deals involved cash paid upfront. The percentage of resale transactions done above valuation increased to 96 per cent, up from 93 per cent in the previous quarter.

The pace being set by buyers and sellers has also prompted fresh concerns on whether the market is overheating.

In estates like Queenstown the median resale price for an executive flat was an eye-popping $781,500 in the second quarter and $685,500 in Bishan.

The median resale price for five-roomers was $682,500 in Marine Parade and $675,000 for Queenstown.

Associate Professor Sing Tien Foo of the National University of Singapore’s real estate department noted that apart from the price index surpassing the 1996 peak, it has also increased by more than 60 per cent compared with 2003 prices.

He said that price increases appear to be supported by strong economic fundamentals for now, with demand coming from upgraders, downgraders, PRs and home buyers who cannot wait three years for new HDB flats.

As government policies on resale flats discourage speculation, this price growth is unlikely to be a housing bubble, observed ERA Asia-Pacific associate director Eugene Lim.

Prof Sing added: ‘But if price rises continue unabated, we should be concerned. When deviations from fundamentals are too large, some corrections in prices could occur.’

Mr Lim noted that the robust resale market is having a spillover effect on private property as HDB owners can upgrade thanks to the relatively high prices they can get for their flats.

Values in the private property market rose 5.3 per cent in the second quarter over the first despite slowing sales.

But as private property prices inch up, some buyers in that market could turn to the HDB resale sector, adding to demand, said PropNex chief executive Mohamed Ismail.

Some analysts believe prices have reached a new era.

‘Property prices move in cycles and prices will go up and down. But generally, it will move in an uptrend due to scarcity of land in Singapore,’ said Mr Lim.

‘Even if prices come down, I think it’ll still be higher than five years ago. It is unlikely we will go back to that level.’

While property agents say home buyers – especially first-timers – are getting increasingly disgruntled about blazing resale prices, some estates are still selling at levels below the 1996 peak.

PropNex agent Steven Ng, who recently helped a couple in their 50s sell a five-room Bishan flat for $615,000 – $70,000 above valuation – said the sellers were happy as they bought it at less than half that amount more than 10 years ago.

‘But some sellers in Bishan who bought at 1996 peak have still yet to see price levels at the price they paid,’ he said.

Source: Straits Times, 24 Jul 2010

PRIVATE home prices generally rose at a slightly slower pace in Q2 than they did in Q1, but latest official numbers show a broad-based growth in property prices – with stronger quarter-on-quarter gains for office, shop and industrial properties, as well as HDB resale flat prices in Q2 than in the first quarter.

The momentum of recovery in private residential rents also picked up in the second quarter, supported by an acceleration in hiring of expats as Singapore’s economy continues to expand.

‘Sentiment among developers and market watchers probably moderated from the end of first quarter as a result of the eurozone’s economic problems, but the recent spectacular official GDP growth forecast for Singapore has probably helped to restore some confidence,’ said Real Estate Developers Association of Singapore CEO Steven Choo.

The Urban Redevelopment Authority’s (URA) benchmark overall price index for private homes rose 5.3 per cent in the second quarter over the preceding quarter, close to the 5.6 per cent per cent hike in Q1.

The price index for office space increased 4.6 per cent quarter on quarter in Q2, a bigger gain than the 1.8 per cent quarter-on-quarter rise in Q1.

Likewise, the shop price index went up 3.9 per cent in Q2, following a 1.8 per cent pick-up in the first three months. URA’s flatted factory and warehouse price indices rose 5.4 and 9.4 per cent in Q2. In Q1, each of these increased 1.5 per cent.

In the private housing market, prices of detached houses rose 6.8 per cent in Q2, slower than the 9.6 per cent increase in Q1. Semi-D and terrace houses appreciated 6 per cent and 5.6 per cent respectively in Q2 – compared with increases of 7.5 and 7.4 per cent in the first three months.

Non-landed home prices in Core Central Region (which includes the prime districts, Marina Bay and Sentosa Cove) climbed 5.4 per cent in Q2, higher than the 4.4 per cent growth in Q1. Likewise, the price index for Outside Central Region (where suburban condos are located) rose 5.7 per cent in Q2 after increasing 4.3 per cent in Q1.

However, in Rest of Central Region the pace of price gain slowed from 7.9 per cent in the first quarter to 4.6 per cent in Q2.

In the primary market, developers sold a total of 4,033 private homes in Q2, down 7.9 per cent from Q1. In the secondary market, strong buying momentum was also seen in the resale market, with 4,682 private homes changing hands in Q2, although this was 5.6 per cent lower than the first three months of the year. However, subsale volumes eased 27.4 per cent, from 996 deals in Q1 to 723 in Q2.

‘Resales were strong in Q2 because prices are more reasonable for older, completed properties than new project launches. On the other hand, subsales (which are secondary-market deals involving projects that have yet to receive Certificate of Statutory Completion) come in waves. Those who bought homes from developers in the past few months are probably waiting for prices to rise further before they offload their units,’ suggests a market watcher.

In the leasing market, URA’s All Residential rental index rose 5.9 per cent in Q2 over the preceding quarter, compared with a 4.7 per cent quarter-on-quarter gain in Q1. The index has appreciated 10.9 per cent since end-2009.

Rents accelerated for both landed and non-landed private homes. Terrace houses led the landed segment, with rents rising 6.6 per cent in Q2, followed by semi-detached houses (up 5.6 per cent) and detached (up 4.6 per cent). For non-landed homes, rents in Core Central Region appreciated the most, by 6.4 per cent, followed by Outside Central Region (up 6.1 per cent) and Rest of Central Region (5.1 per cent).

However, the latest All Residential rental index is about 11.1 per cent below its peak in Q2 2008.

Jones Lang LaSalles’ head of residential Jacqueline Wong said the latest official figures confirm feedback from the ground. Monthly rentals of four-bedroom apartments in high-end developments such as Grange Residences, Draycott 8 and Ardmore Park are hitting $16,000-$18,000 on average – an improvement from $14,000-$15,000 in the second half of last year.

‘But we still haven’t achieved the peak levels of $18,000-$22,000 seen in the late 2007 to mid-2008 period,’ Ms Wong added. ‘We’re seeing rehiring of expats again but housing allowances are not as generous as before.’

Ms Wong is predicting flattish rents until the end of this year, citing new competition with the impending completion of The Orchard Residences and The Marq on Paterson Hill.

URA numbers show 4,379 private homes received Temporary Occupation Permit (TOP) in Q2, compared with 1,407 units in Q1. The surge in new completions pushed up the islandwide vacancy rate for private homes to 5.4 per cent at end-Q2, from 4.6 per cent at end-Q1. But this could ease again as owners or tenants move into the new homes.

Major residential projects completed in April-June 2010 include One Amber, Marina Bay Residences, Dakota Residences and The Arte.

With a further 4,958 units expected to receive TOP by year end, the full-year tally will be 10,744, slightly above last year’s 10,488 units

Source: Business Times, 24 Jul 2010

He sold his four-room flat last August to upgrade to a maisonette but while trying to secure a housing loan, HDB’s loan policy changed and he now faces a cash shortfall for his next purchase.

He still hopes to buy a maisonette, so his parents can move in with him.

For now, his wife and their two children, aged six and four, stay with her parents in Serangoon, while he is with his parents in Chua Chu Kang.

Every evening, he drives to Serangoon to see his family, then heads back to his parents’ four-room flat, which is too small to accommodate his family.

He is frustrated at the situation because, unlike some others, he did not sell his flat for easy cash but to upgrade to a bigger home.

When he sold his flat last August, he received cash proceeds of $57,000. Now, HDB has asked him to fork out half of that sum for his next purchase. HDB has also reduced the size of the loan it will grant him by that amount.

‘The housing loan is now smaller, and the cash-over-valuation for flats is rising. With this new rule, HDB has reduced the amount of cash I have that I could have used to pay for the COV of the new flat,’ he said.

A buoyant market has sent the COV – cash premiums for HDB flats – soaring.

Mr Wong has tried looking for flats with lower COV but to no avail. He also sought the help of his MP Cynthia Phua.

His query: ‘I sold my flat before the policy was implemented. Why does it apply to me?’

In November last year, he applied for an HDB loan to finance the purchase of his second flat.

The board rejected the application as the couple’s combined monthly income exceeded the cap of $8,000.

He re-applied. HDB finally gave him a loan in April. By then, his wife had left her job and the family income was below $8,000.

Now, the problem is that he does not have enough cash to buy a flat of the size he wants.

‘Every maisonette seller is now asking for at least $50,000 in COV. If I give HDB half of my cash proceeds, where do I find the cash to pay for the COV?’ he asked.

‘It’s all wrong timing,’ he lamented.

Source: Straits Times, 22 Jul 2010

A SMALL number of HDB buyers now face a cash shortfall and cannot buy replacement homes of their choice, due to changes to the HDB loan policy in March.

These buyers sold their flats before a new rule stated that buyers must use 50 per cent of their cash proceeds to finance their next flat. They are now stuck because they have spent the cash.

A Straits Times check with 16 MPs found that a small number of such buyers have showed up at their Meet-the-People sessions.

Aljunied GRC MP Cynthia Phua has five constituents caught out by the policy change; Dr Lim Wee Kiak, an MP for Sembawang GRC, has seven; Mr Yeo Guat Kwang, also of Aljunied GRC, has two and Madam Ho Geok Choo of West Coast GRC has 10.

These buyers are divided into two groups: downgraders who sold their flats and used the cash proceeds to settle debts, or genuine upgraders who need a bigger flat for their families.

Among those who sought Madam Phua’s help were a couple who sold their flat in 2006. When they tried to buy a flat this year, they were surprised that the loan amount granted by HDB was reduced by half the cash proceeds from the first sale.

HDB changed its loan policy in March to make second concessionary loans available to downgraders. Such loans were previously given only to upgraders. HDB also laid down a new rule – loan applicants must use the full CPF proceeds and half the cash proceeds from the sale of the previous flat or $25,000, whichever is less, to finance their next home. The change was to encourage financial prudence.

While Madam Phua supports the move to prevent home owners from cashing out on their flats, she does not think it is fair for those who sold their flats before the policy change in March to be subject to the new requirement.

‘HDB will now give a loan only less half of the cash proceeds amount, but that’s not enough money to buy a new home and most of them have already spent their cash proceeds,’ she said.

During Monday’s Parliament sitting, Madam Phua appealed to National Development Minister Mah Bow Tan on behalf of her constituent who sold his flat in 2006.

Mr Mah said in reply that the HDB gave home buyers a second subsidised loan so they could buy something they really needed. ‘If you have already made a lot of money, then I think it is only fair that the HDB takes that into account, irrespective of when you have sold a flat,’ he said.

He also felt that home buyers like the one Madam Phua cited were ‘rare’, as most bought a second flat soon after they sold their first. Still, he promised to review appeals on a case-by-case basis.

The HDB also provided figures to show that the policy change benefited large numbers of downgraders.

Between March and May 31 this year, HDB approved 2,439 applications for a second concessionary loan. Of these, more than half were downsizing or moving to a flat of the same size. These buyers would not have qualified for a second subsidised loan if the policy had not been changed.

On Monday, Mr Mah stressed that the size of the second loan could not be independent of the proceeds from the sale of the previous flat. If it were, that would create a ‘perverse incentive’ for people to upgrade and downgrade ‘to automatically get a larger HDB loan’.

PropNex chief executive Mohamed Ismail said the policy change has helped many flat owners who faced financial hardship and needed to downgrade to a smaller flat. Before the change, they could not apply for a second HDB loan. Many were also unable to secure a bank loan because of their bad credit history, he said.

The new rule has made some more cautious. Mr Jerry Lee, 31, a property agent with HSR Property, has had five clients change their minds about selling since March. ‘Many of them wanted to cash in on their property, but the policy change has made them think twice before selling.’

Source: Straits Times, 22 Jul 2010

The new law disallows Housing Board home owners from using the proceeds of selling their homes as collateral for loans, or for the payment of debts, except under approved circumstances.

Simply put, this means moneylenders are now no longer able to lodge caveats against flats to ensure they get first bite of the proceeds from the property’s sale if the borrower cannot pay up.

The Straits Times understands that at least 10 moneylenders who focus on loans for home sellers will be putting up the shutters in the coming weeks.

Moneylenders’ Association of Singapore president David Poh said at least 30 members in his association are extremely discouraged by the changes.

In May, new rules prohibiting licensed moneylenders from working as property agents, and vice-versa, were announced.

One affected moneylender, who declined to be named, said she used to lodge caveats for the four cases she handles on average monthly.

‘Now the law has closed all our options, we have no choice but to wind up,’ said the 37-year-old.

Another moneylender, who wanted to be known only as Mr Tan, 44, said he will now focus on his property business. He started a moneylending arm late last year to complement his realty work.

‘Now I just want to collect the loans I have given out, and close down the moneylending firm,’ he said, adding that he used to lodge about two caveats monthly. ‘Without caveats as security, who wants to risk lending out large amounts?’

The growing practice by some moneylenders of exploiting cash-strapped home owners desperate for loans was first flagged in Parliament in April.

Industry players estimate that of the 260 licensed moneylenders in the market, at least 30 per cent regularly lodged caveats on their borrowers’ homes. There were 556 registered resale applications with caveats lodged by moneylenders in just the first half of this year, a spike from 546 for the whole of last year and just 12 in 2008.

Mr Poh’s committee held a meeting yesterday to discuss the impact of the new rules. ‘Those affected are rethinking how to continue their business,’ he said, adding that most moneylenders will raise their interest rates by at least 10 percentage points per annum, now that they do not have the security of caveats.

The new rules could also put loansharks back in business. ‘The demand for loans is still there. But if the people can’t get loans, they will turn to the illegal lenders,’ said Mr Poh.

Source: Straits Times, 21 Jul 2010

HOME owners desperate for cash should look at other options to raise the funds rather than resort to selling their flats, National Development Minister Mah Bow Tan said yesterday.

‘They will have to find other sources of funds as… the whole (home ownership) scheme was designed to provide affordable, good quality homes for them, not to use that as a collateral or source of funds for other uses – whether for business or other things,’ he said.

Mr Mah’s comments came a day after a housing Bill was sped through Parliament and passed to close a loophole which had allowed moneylenders to lodge caveats on HDB flats to claim a stake in sale proceeds.

In the past year or so, there has been a spike in the number of moneylenders who exploited a legal loophole that allowed them to file caveats. This was the reason the Bill had to be passed urgently, said Mr Mah yesterday.

He noted that although there was nothing to stop owners from selling their flats prematurely to raise funds, public education was crucial in explaining to people why they should not do so.

‘We’ve always been telling people to be prudent, ‘don’t sell your flat unless you have alternatives’… that’s always been our message.

‘(If) they lose their flats, the roofs over their heads… where will they live, where will their children live?

‘We’ve decided to be prudent as far as HDB flats are concerned, (so) if you want to raise funds for business and other things… look for other sources of funds.’

Mr Mah was speaking on the sidelines of the Ministry of National Development (MND) scholarship ceremony. The ministry awarded 39 undergraduate scholarships out of 1,490 applications it received. Building and Construction Authority scholarship holder Lee Si Min, 19, who is going to Cambridge University to study engineering, said she had always been fascinated by buildings and wanted to work in a related field. ‘Being part of the ministry will enable me to contribute back to society when I’ve finished my studies,’ she said.

The ministry also awarded 12 postgraduate scholarships. The courses covered by all the scholarships are diverse, from agricultural economics to civil engineering, and sociology to urban planning.

Speaking at the ceremony, Mr Mah highlighted the recently concluded World Cities Summit hosted by Singapore where policymakers and industry professionals converged to discuss issues on governance, sustainable cities and fostering harmonious communities.

‘Just two generations ago, this would have been a most improbable feat for us… Once, some might have regarded us a tropical cesspit. Today, many parties… rank Singapore among the top 25 most liveable cities in the world,’ he said.

He urged the scholarship holders to ‘work hard, study hard, discover yourselves and find your passion’.

‘One day, we will welcome all of you back, joining us in this common journey to make Singapore a better home for all of us,’ he said.

Source: Straits Times, 21 Jul 2010

National Development Minister Mah Bow Tan yesterday announced changes to existing legislation giving the Housing Board the same punitive powers over public rental flats that it has over sold HDB flats.

Currently, when rental flats are sublet illegally, the HDB’s only recourse is to take back the flats and bar the tenants from renting for a fixed period.

However, experience showed that was not a sufficient deterrent and stiffer penalties were needed to keep rental flats for the truly needy, Mr Mah told Parliament.

The vast majority of those who sublet rental flats had alternative accommodation, and were abusing the highly subsidised monthly rentals of up to $60, he said.

In 2008, the HDB terminated the tenancies of 221 residents for illegal subletting.

The number of such cases has come down due to warnings against the practice, he added.

Last year, there were 170 cases. The first six months of this year saw 63 cases.

Source: Straits Times, 20 Jul 2010

Ang Mo Kio GRC MP Lee Bee Wah was worried that the statutory board would ‘lose sight of its original mandate’ of looking after Singaporeans and building communities, but National Development Minister Mah Bow Tan was quick to quell her fears.

Earlier, the minister had tabled an amendment to the Housing and Development Act to allow HDB to provide ‘much sought-after technical and consultancy services’ both locally and abroad on matters within its expertise. ‘(This) would allow HDB to act as the government’s agent to service requests to share its expertise in public housing development both within and outside of Singapore. HDB will also be able to develop, sell and acquire intellectual property rights on a commercial basis,’ Mr Mah told the House.

In response, Ms Lee asked if, by doing so, HDB would open a pandora’s box as other government agencies could follow suit and venture overseas in order to make huge profits for themselves. Cynthia Phua (Aljunied GRC) was the other MP who sought clarification from the minister.

Mr Mah said he was in no doubt that HDB’s work locally would not be affected by this move. ‘I’m very clear that is our primary responsibility, the main responsibility, is that HDB must do its work in Singapore. That’s the reason why we have hived off Surbana to allow it to do its work outside,’ he said.

Surbana Corp, formerly the HDB’s building and development division, was corporatised to become HDBCorp and then re-branded as its current name in 2005.

Mr Mah explained that, from time to time, Singapore receives requests from other governments asking it to do some consultancy work in their country. It accepts these requests to share its success stories and generate ‘a reservoir of goodwill’ with others.

He cited the Tianjin Eco-city project, a partnership between Singapore and China to develop the modern township. ‘Within this township, one aspect we are talking about is the provision of a good public housing system, and this is where HDB’s expertise and consultancy services are required,’ said Mr Mah.

‘It’s not so much in the planning of the town itself. It’s about sharing the policies – rental, home ownership, financial – that have worked for us, and those that have not worked so well.’

Mr Mah added that HDB has plans to work with local companies, especially small and medium-sized firms, on specific technical and consultancy services such as the concept of green buildings.

‘This provision enables HDB to do such work. It’s not going to be a big money-spinner for us,’ said Mr Mah.

Source: Business Times, 20 Jul 2010