WHEN financial adviser Hu Yaoqian heard of the policy changes, she felt elated. It meant that her decision to apply for citizenship last October was right.

The 26-year-old permanent resident (PR), who came to Singapore to study in 2003, says she realised the benefits of becoming a Singaporean when she learnt about housing policies here.

As a citizen, she would qualify for a $20,000 grant to buy an HDB resale flat. Moreover, a citizen would enjoy subsidised rates for upgrading schemes compared to a PR who has to pay the full cost.

Her software engineer husband, who is her high school sweetheart from China, came to Singapore in 2008 and is also a PR. The couple are hoping to buy a four-room or five-room flat in the Bishan or Serangoon area.

In Ms Hu’s line of work, she meets middle-income Chinese, who are mostly PRs typically around age 30 and married with young children.

Where government policy is concerned, she says, ‘their only consideration is property’ as their children are not old enough to go to school, and their health insurance covers medical fees.

Ms Hu notes that property ownership is a typical Chinese priority.

She says Singapore’s PR system is still better than China’s household registration or hukou system, which denies rural migrants access to employment, housing, cheap education and health care in the cities.

Source: Straits Times, 27 Mar 2010

PERMANENT residents looking to buy an HDB flat may have to widen their search beyond popular areas as some parts of the island have already reached the limits set out in the new quota system.

PRs will not be able to buy flats in certain areas in Jurong West, Choa Chu Kang, Sembawang, Sengkang or Bukit Batok unless they are prepared to pay a premium over the asking price in the hope of enticing other PRs to sell.

The areas have long been popular with PRs but some neighbourhoods and blocks are at the limit outlined by the Singapore Permanent Resident (SPR) quota introduced earlier this month.

It sets a cap for PR households of 8 per cent in each block and 5 per cent within each neighbourhood to prevent enclaves of foreigners forming in the heartlands.

The HDB’s website showed that certain addresses in these areas have reached their PR quota. The addresses include Admiralty Drive and Canberra Road in Sembawang, Anchorvale Link in Sengkang, Choa Chu Kang Avenue 5, Bukit Batok East Avenue 3, Woodlands Avenue 6 and Jurong West Central 1.

A non-Malaysian PR, for example, is eligible to buy a flat from any seller in Clementi Avenue 6. But he can buy only from a fellow non-Malaysian PR at Bukit Batok East Avenue 3 because the quota for the proportion of non-Malaysian PRs in that area has already been reached.

In some blocks, the market is even tighter after throwing the ethnic quota into the mix. For example, if an Indian non-Malaysian PR wants to buy a unit at 313C Anchorvale Road, he would have to buy a unit from an Indian non-Malaysian PR seller to maintain the balance.

PRs comprise about 14 per cent of the population in HDB flats, according to 2009 figures.
Property experts say the quota system might cause greater disparities in prices, not just among neighbourhoods, but within a block as well.

The Ethnic Integration Policy – which sets ratios for ethnic groups to ensure a balanced mix in housing estates – has also had a similar effect.

PropNex chief executive Mohamed Ismail said that PRs selling HDB flats in neighbourhoods or blocks that have reached their quota will be able to quote a higher price when selling to other PRs.

‘Assuming PRs can afford it, they might be willing to pay for a flat that might be nearer to good schools or the MRT, or to get a good view. But if the quota is reached they won’t be able to buy unless they offer a higher price.’

However, this effect is not expected to be big enough to affect general market trends, said Chesterton Suntec International’s research and consultancy director, Mr Colin Tan. ‘Some people will be willing to pay more to live with those from their country, but how much more is very subjective,’ he said.

Property agents say being near others of the same nationality is not a major pull factor for PRs. Cost and distance from their workplace weigh more heavily.

PRs from Myanmar like Jurong West because they work in nearby shipyards, offices and factories while Filipinos choose Jurong West, Simei and Bukit Panjang for the relatively cheaper prices.

PRs from Malaysia and China are scattered islandwide. Their key considerations are mainly cost and proximity to work, transport options like an MRT station or bus interchange and facilities such as schools and supermarkets.

Mr Jeffrey Hong, HSR International Realtors’ executive director of agency, said some PRs might consider moving elsewhere if the asking price over valuation is too high.

The Jurong estate, for example, has seen a 15 per cent rise in HDB prices over the past nine months, he said.
Chinese PRs might move from Jurong to areas like Yishun and Woodlands while Indian PRs might move from Serangoon to nearby Hougang and Lorong Ah Soo if quotas were soon to be reached.

‘These places are less pricey and also not that far from their ideal location,’ Mr Hong said.

Source, Straits Times 17 March 2010

To prevent foreign enclaves from forming in HDB estates, the Housing and Development Board (HDB) will introduce a new quota for permanent resident (PR) families buying resale flats, Mah Bow Tan, Minister for National Development said on Friday.

Mr Mah said even though PR enclaves are not a problem today, precautionary measures should be put in place early.

PRs will be subject to quotas of 5 per cent and 8 per cent at the neighbourhood and block levels respectively.

A PR family cannot buy a flat if the neighbourhood or block already has 5 per cent or 8 per cent of flats owned by other PR-PR families.

The quota will only apply to non-Malaysian PRs. Malaysians are excluded, because of Singapore’s close historical and cultural links.

In 2009, PRs make up 14 per cent of Singapore’s resident population. But PR families own only 5 per cent of HDB flats.

Source: Business Times, 5 Mar 2010

There is no evidence that specific buyer groups, like permanent residents (PRs) and private property owners (PPOs) are driving up prices of HDB flats.

National Development Minister Mah Bow Tan told Parliament on Friday that the median cash-over-value (COV) paid by PRs have been the same as the overall median COV paid for resale flats for the last two quarters.

‘Cases of PRs paying high COV are the exception, not the rule,’ Mr Mah said.

He said of the 37,205 resale transactions in 2009, 58 cases had COV exceeding $70,000 (US$49,995).

Of this, only eight cases or 14 per cent involved PRs.

Mr Mah added while PPOs pay higher COVs in general, their numbers are not large enough to drive up prices.

‘If we banned PPOs from buying HDB resale flats, what about HDB owners buying private properties? Should we ban that too?’ he asked.

‘I would urge that we take a longer-term view and not over-react, and do things we regret and have to reverse down the road.’

Source: Business Times, 5 Mar 2010

National Development Minister Mah Bow Tan announced in Parliament on Friday changes in housing policy to promote citizenship in HDB households and encourage social integration.

To promote citizenship and reinforce the privilege that comes with it, households comprising one Singapore Citizen and one Permanent Resident (PR) will have their CPF Housing Grant reduced by S$10,000 when buying a resale flat. This will also apply to Design, Build and Sell Scheme flats and Executive Condominiums.

Should such households opt for a new flat, they will have to pay a 10,000-dollar premium on top of HDB’s selling price.

Previously, PRs married to Singapore Citizens enjoyed the same subsidies as Singaporean couples. However, HDB will restore the S$10,000 should the PR family member take up citizenship, or if the couple has a child who is Singaporean.

Furthermore, in Parliament on Friday, Members of Parliament (MPs) aired concerns over PR enclaves.

Christopher de Souza, MP, Holland-Bukit Timah GRC said: “It is natural that people feel comfortable with their own kind, from similar backgrounds and culture. However, this could lead to a situation where integration within the Singaporean community is delayed or hampered.”

In response, Mr Mah said on top of fulfilling ethnic quotas under the Ethnic Integration Policy, non-Malaysian PRs will be subject to an additional quota, at 8 per cent at the block level, and 5 per cent at the neighbourhood level. HDB said Malaysian PRs are excluded because of close historical and cultural links.

Mr Mah said: “PR enclaves are not a problem today, but as always, we try to look ahead. And if we see the trend, we should put precautionary measures in place early. Otherwise, it may be too late when the problem is already there, and you have to unravel the problem later.

“It is important that PRs integrate well in our local communities as they are long-term residents of Singapore.”

The Ethnic Integration Policy will also be revised for Indians and other ethnic races living in HDB estates. At the neighbourhood level, their quota will go up from 10 per cent to 12 per cent. At the block level, it will be 15 per cent from the current 13 per cent.

There will be no change to the ethnic quotas for Chinese and Malays. For Chinese, it is 84 per cent at the neighbourhood level and 87 per cent at the block level. For Malays, it is 22 per cent at the neighbourhood level and 25 per cent at the block level.

Source: Channel News Asia, 5 Mar 2010

DPM Wong allays concerns about influx of immigrants

THE Government hears and understands Singaporeans’ concerns about the influx of immigrants in recent years, Deputy Prime Minister Wong Kan Seng said yesterday.

So it has refined the requirements for permanent residents (PRs) and new citizens, even as it continues to take them in to top up Singapore’s declining population, he told Parliament.

As one indication, there were 59,500 new PRs last year, down from 79,200 in 2008, and 19,900 new citizens, compared to 20,500 a year ago.

‘I know that this is a matter which Singaporeans care deeply about, and rightly so, as it concerns the value of our citizenship,’ he said.

‘We will ensure that those who become one of us are of suitable quality, and not only contribute to Singapore economically but also integrate well into our society,’ he added.

Mr Wong, who is also Home Affairs Minister and oversees population issues, spoke during the debate on his ministry’s plans for the coming financial year.

Eight MPs voiced concerns about the recent surge in foreigners – one in three people in Singapore is now foreign-born – and sought updates on policies to integrate newcomers.

Six months ago, Prime Minister Lee Hsien Loong first voiced understanding of Singaporeans’ concerns, and promised to sharpen distinctions between citizens and non-citizens.

Since then, the Government has increased fees for non-citizens in schools, polytechnics and institutes of technical education, as well as giving citizens double the chances of PRs when it comes to school balloting at Primary1.

In health care, subsidies for citizens will be raised further, thus widening the gap with PRs.

Yesterday, Mr Wong said that while the Government continues to welcome ‘good quality’ PRs, Singaporeans come first in their own country.

‘No need to worry about this,’ he declared.

But distinctions must be sensible and balanced, and not undermine the principle of meritocracy which makes Singapore competitive and draws foreigners to sink roots here.

He emphasised the distinction between ‘transient’ foreigners who form a quarter of the five million people here, and resident ones who become PRs and citizens. Transients leave when their work permits or employment passes expire.

While Singaporeans may be frustrated and annoyed at sharing common spaces with people of different social habits and reflexes, the Government is taking action to educate foreigners on social norms here, said Mr Wong.

He added: ‘I acknowledge that there are also those on employment passes holding jobs that Singaporeans are willing to do, and who compete directly with Singaporeans. However, if we want to compete globally, we have to create an environment which can attract the best people, including those who are mid-level – be they Singaporeans or foreigners.’

The number of new PRs minted each year rose from 32,000 in 2003 to 63,000 in 2007, which works out to an average of 48,300 a year over that five-year period.

Explaining the surge, Mr Wong said the Government took advantage of the strong economy in the mid-2000s to attract and retain suitable foreigners to sink roots here to make up for Singapore’s low birth rate. It recently reviewed its framework for assessing PRs and citizens, and will tighten it further.

But he rejected an absolute cap on the numbers, saying: ‘There may be events which trigger an unexpected surge in numbers, which we should take advantage of.’

Mr Wong also explained why Singapore needs to have new citizens each year: ‘If our total fertility rate remains the same, and we do not allow immigrants to settle here, our resident population will start to shrink as early as 2025 because deaths will outstrip births.’

To replenish the current resident pool, Singapore needs 60,000 new babies a year. But there were only 37,000 local newborn babies last year, and despite numerous procreation incentives, the number does not promise to increase by much, he observed.

Hence the need to top up with about 20,000 new citizens each year, to ensure citizens form the core of the population.

Appealing to Singaporeans to be realistic about the need for immigrants, he said: ‘We are all descendants of immigrants.

‘Singapore grew and prospered since its founding because our great-grandparents, grandparents and parents were allowed to come and settle to make a better life and in the process, to contribute to Singapore’s growth.

‘Had they been denied the opportunity to do so at the right time, we would not have been born here and Singapore would not be what it is today.’

Source: Straits Times, 5 Mar 2010

We refer to Ms Josephine Chia’s letter, ‘Single PR can’t buy resale HDB flat’ (Feb7), and Ms Teo Wai Lee’s letter last Sunday, ‘Single PRs and HDB flats’.

The needs of Singaporeans always come first. Permanent residents (PRs) who are singles are not eligible to buy an HDB flat alone under the Single Singapore Citizen scheme. They could consider other housing options, such as buying or renting private properties, renting a room or a whole HDB flat, or staying with their friends or relatives.

In Ms Chia’s case, since her sons are Singapore citizens, she can buy an HDB flat together with either or both of them, if they meet the eligibility conditions collectively.

Lily Chan-Wong Jee Choo (Mrs)
Deputy Director (Policy and Property)
Housing & Development Board

Source: Sunday Times, 21 Feb 2010

PERMANENT residents (PRs) may buy one in five, or 20 per cent, of HDB resale flats today but the latest figures available indicate they form a far smaller minority of the HDB resident population.

Findings of the HDB’s 2008 Sample Household Survey released yesterday showed that PRs made up 8 per cent of the total 2.92 million residents living in HDB flats in 2008.

Non-PR foreigners make up another 4 per cent, which means almost nine in 10, or 88 per cent, of HDB residents were still Singaporeans.

Foreigners and PRs have been singled out recently by disgruntled buyers priced out of the market as possible reasons for the sky-high demand that has pushed HDB resale flat prices to record levels.

But the numbers, the latest available, show that PRs and foreigners are not likely to cause significant increases in flat prices, said Associate Professor Sing Tien Foo of the National University of Singapore’s real estate department.

Still, to address concerns, the HDB said recently it is considering introducing a separate ethnic quota for PRs to prevent them from forming enclaves in public housing estates – but details are not available yet.

Source: Straits Times, 19 Feb 2010

I REFER to the letters by Mr Lua Eng Chuan (‘Ban PRs from reselling HDB flats at a profit’, Jan 19), Mr Wan Siew Kay (‘Citizenship caveat’, Jan 20) and Mr Robin Chua (‘Costly flats’, Jan 27).

In response to recent strong demand, the HDB has already ramped up the supply of new flats. With at least one build- to-order (BTO) launch a month, most first-time buyers can expect to select a BTO flat within two tries, and move into their new flats three years after booking.

The HDB is monitoring the demand situation closely and will increase the supply of new flats further, if necessary.

The oversubscription for BTO launches does not mean the flat supply is inadequate. In fact, many flat buyers do not select a flat when they get the chance. Last year, almost 50 per cent of first-time applicants in BTO launches did not select a flat upon invitation. So it is not true that there is inadequate supply of new flats, as suggested by Mr Chua.

We also wish to correct some misperceptions about permanent residents (PRs). PRs do not enjoy housing subsidies or HDB concessionary loans. Citizens make up 95 per cent of flat owners and 80 per cent of resale flat buyers.

Mr Wan may have confused HDB’s public rental flats with flats rented out by lessees at open market rentals. The former is meant only for needy Singaporeans who have no other housing options. PRs must rent a flat from the open market at full market rates.

Mr Lua suggested banning PRs from sub-letting or selling their flats at a profit. Like Singaporeans, PR flat owners are required to fulfil the minimum occupation period before they are allowed to sublet or sell their flats. They bear the market risks for their purchases. Nonetheless, the HDB is looking into whether our rules have inadvertently allowed flat purchases for speculative purposes.

Singaporean singles also enjoy subsidies to buy an HDB flat, albeit less than citizen households. Singles above 35 can buy a resale flat with up to $20,000 housing grant if their parents are staying with them.

Lily Chan-Wong Jee Choo (Mrs)
Deputy Director (Policy and Property)
Housing & Development Board

Source: Straits Times, 10 Feb 2010

I refer to last Sunday’s sidebar, ‘What properties can PRs buy?’, alongside the article on what permanent residents look for when buying resale flats (‘When PRs buy HDB resale flats, key considerations are cost, location’).

The sidebar stated that ‘PRs are allowed to buy resale HDB flats – but not new flats – without housing and mortgage subsidies’.

This is not entirely true.

Single Singaporeans over the age of 35 are allowed to buy resale HDB flats, but a single PR cannot do so.

I have appealed against this ruling for the last year or so, but have been unsuccessful.

I am nearly 59 and divorced, but am contributing to Singapore by teaching English and creative writing. I was born and raised in Singapore and was a citizen.

Nearly 30 years ago, I married an Englishman, and later took up British citizenship. I did so not because I was disloyal to Singapore, but because Singapore did not permit dual citizenship.

Five years ago, I divorced my husband. I have two sons who have served national service and retained their Singapore citizenship. They now live here.

I decided to come back to Singapore to live when my grandchildren were born. My sons managed to help me get PR status here.

I applied for an HDB flat as I could not afford a private apartment. I went to see the Housing Board, but my application was rejected. This year, I made an appeal and it was rejected too. So I have to stay with my family when I am in Singapore.

I understand the need for stringent housing rules so that people do not abuse the system, but I feel that some cases have to be reviewed with humanity.

Josephine Chia (Ms)

Source: Sunday Times, 7 Feb 2010