They may come up in established estates; no new estates to open

THE Housing & Development Board (HDB) could roll out more than 16,000 new flats across various estates next year if demand for public housing stays firm, National Development Minister Mah Bow Tan said yesterday.

Rising resale flat prices and cash premiums have prompted HDB to launch up to 16,000 new flats under the build-to-order (BTO) scheme this year. This is probably the highest number in 10 years, Mr Mah told reporters on the sidelines of his ministry’s National Day observance ceremony yesterday.

In the seven months to end-July, HDB brought more than 9,800 new BTO flats to market. And subscription rates for launches have been high.

‘If demand continues to be strong like this, we will ramp up our building programme even further for next year,’ Mr Mah said, adding that HDB is looking for land and getting plans ready.

More flats could come up in established estates such as Tampines and Jurong, beyond the newer towns of Punggol and Sengkang. Punggol has achieved a critical mass of about 21,000 to 22,000 flats, Mr Mah said. ‘Once we have achieved that, then we are able to now move into other parts of Singapore as well.’

There is still land available for development at Punggol and Sengkang, and HDB is also looking for sites in other estates, he said. But it will not open up new estates yet.

In March, Mr Mah flagged Tengah in the west and Simpang in the north-east as potential townships.

But while the government has set aside land for new estates, building them will be costly and will require a lot of work in terms of putting in roads, sewerage systems and other infrastructure, he explained.

Demand has been strong not just for public housing but also for private homes – particularly those in the mass-market segment. Earlier this week, the government cut the project completion period (PCP) for private residential sites that it sells to five years from six years to ensure a more timely supply of homes.

Mr Mah described the change as a ‘minor tweaking’ and said that it should not affect many developers. The shorter PCP gives ‘better assurance that the supply will come on stream’, he said. ‘The longer the PCP, the more uncertain the supply projections going forward.’

In his speech at the ceremony, Mr Mah said that the government will launch the Northern Explorer Park Connector Network this year. This is the third of seven loops linking parks around the island.

Five teams from various agencies under the National Development Ministry received awards from Mr Mah yesterday for various projects, such as rolling out Singapore Green Building Week.

Source: Business Times, 7 Aug 2010

SINGAPORE’S drive to become an education hub is providing a form of support for the home leasing market.

According to property and student agents, more international students in Singapore are turning to condominiums for accommodation even as the more traditional hostels and HDB flats remain in hot demand.

The influx of foreign students has visibly strengthened since the Economic Development Board launched concerted efforts to woo this bunch under the 2002 Global Schoolhouse Initiative.

From numbering 61,000 since 2003, when such annual figures were made available, international students here have surged by nearly 60 per cent to 97,000 as of last year, show Singapore Tourism Board statistics.

The official goal is to host 150,000 international students here by 2015. But already, this growing group’s presence is making itself felt in the home rental market.

Even though official data show that private rents have fallen 14.7 per cent from its peak in the third quarter of last year, it is a different story in areas like Boon Lay, Jurong West and Queenstown, say an ERA property agent who specialises in foreign student accommodation.

These are places where international students congregate, as they are near major tertiary institutions such as Nanyang Technological University (NTU) and the Management Development Institute of Singapore, said the agent, who wanted to be known only as Tony.

For example, the rent for a three-bedroom HDB flat in Boon Lay was about $1,300 monthly three years ago; now it can go up to $2,400, he said.

And the pullback in the overall property market has not necessarily brought down rents significantly. “Demand in that area is still quite high. Owners know that lots of students are looking for houses, so they are keeping prices high,” said Tony, a Vietnamese who is a former NTU student himself.
He estimates there are currently more than 400 Vietnamese students in NTU, compared to just about 70 five years ago.

“I encountered a case where the starting price was only $2,000, but because I brought in eight people (to share the flat), the owner managed to push up prices to $2,450,” he said.
Demand has also spilled over to the condominium segment.

Mr Lin Yu Wei, 23, a Taiwanese student of Raffles College in Beach Road, stays in Killiney Apartments in the Somerset area with two roommates, paying a monthly rent of $1,000.

“Most of my friends also prefer to stay in the city area. It’s nearer to our school and the shopping malls. Most of them will consider convenience as the most important factor,” he said.

Although he previously stayed in a cheaper student hostel, Mr Lin said he preferred his current environment as he has privacy and does not need to worry about his belongings.

On this recent trend, Kaplan Singapore’s deputy director of marketing, Mr Alvin Teo, said international students typically stay in hostels when they arrive, but move out together in groups to condos as they make friends.

“Some of the students, especially the Chinese ones, are quite well-to-do. Their parents want the best for them and opt for condos,” said Mr Teo, whose school has 3,200 foreign students.

Another pull is the phenomenon of landlords partitioning the living room of a condo to make way for more rooms in a unit – making rent more affordable for a student wishing to stay in a private estate, said property agents.

“A lot of owners have done it – it’s common knowledge in Singapore,” said property agent Clinton Poh.

Rents in such condos range from around $500 to $600, and are cheaper than an unaltered HDB room in the same area which goes for $700 a month, said another property agent, who declined to be named.

Such housing also caters to S-Pass holders who prefer their privacy albeit in a smaller room, rather than squeeze in with a roommate, said Mr Poh. Such housing can usually be found around Geylang and Balestier, which are also areas popular with students.

Source: Today, 18 June 2009

RESIDENTS in five neighbourhoods will be the first to get improved cycling facilities under a $43 million programme to promote it as a mode of transport.

Work will begin on 6.9km of cycling tracks for Tampines residents in the second half of this year, while 7.5km of tracks will be added in Yishun from next year. Plans are also in the pipeline for tracks in Sembawang, Pasir Ris and Taman Jurong.

These will either be dedicated 2m-wide cycling tracks or, where space is restricted, the tracks will join existing pedestrian footpaths but have painted markings to clearly identify them for cyclists.

The five were chosen because they have strong support for cycling, are relatively compact and
have land available for the cycling tracks.

Senior Parliamentary Secretary (Transport) Teo Ser Luck announced these measures yesterday during the budget debate on estimates for the Transport Ministry.

He was responding to Ms Irene Ng (Tampines GRC), Madam Cynthia Phua (Aljunied GRC), Mr Wee Siew Kim (Ang Mo Kio GRC) and Mr Ang Mong Seng (Hong Kah GRC) who, while encouraged by the increasing use of bicycles, were concerned about safety and how cyclists would interact with pedestrians and other motorists.

Mr Teo, in acknowledging the competing demands for space, said the authorities had taken ‘a very careful and deliberate approach to finding that balance between the various stakeholders’.

And while there was still some way to go before Singapore could be considered a ‘cycling nation’, he outlined initiatives to move the country in that direction.

First, a scheme to allow foldable bicycles on public transport has been approved after a six-month trial.

Foldable bicycles will be allowed on buses and trains during the off-peak periods of 9.30am to 4pm and after 8pm on weekdays, and all day on weekends and public holidays.

Other initiatives include 823 additional bicycle racks at three MRT stations – Pasir Ris, Tampines and Yishun – and safety signs on popular cycling routes.

An avid cyclist, Ms Ng, said that while cyclists were now allowed to share bus lanes, they were constantly squeezed out by buses. She called for markings on bus lanes to make them ‘bike-bus lanes’.

Responding, Mr Teo said too many markings may confuse users. He suggested education and publicity as an alternative approach.

Mr Ang – who brandished a model of a bicycle, photographs and a bicycle light and bell when speaking during the debate – wanted bicycles to have licence plates so cyclists could be held responsible if they were reckless.

Mr Teo said this may not be practical or feasible to implement, and noted that bicycle-friendly cities like Paris and Amsterdam did not have such a regulation.

‘Instead, we should focus on improving cyclist and pedestrian behaviour, which is really the crux of the matter,’ he said. ‘This is why we can move only at a pace that people are reasonably comfortable with, all the while actively consulting and engaging the various groups before taking the next step.’

Source: Straits Times – 13 Feb 2009

SINGAPORE: More is going to be done to promote cycling in Singapore.

The Land Transport Authority (LTA) will spend S$43 million to design and construct dedicated cycling tracks next to pedestrian footpaths in HDB estates.

The first phase of this programme will be implemented in Tampines, Yishun, Sembawang, Pasir Ris and Taman Jurong.

Foldable bicycles will also be allowed on MRT trains and public buses during off-peak hours on weekdays and all-day on Saturdays, Sundays and public holidays, from March 15.

The scheme follows an earlier six-month trial where an average of 70 foldable bicycles were brought on board trains and two foldable bicycles on board public buses each week.

LTA said eight out of 10 train commuters and about seven out of 10 bus commuters surveyed support the initiative.

Source: Channel News Asia – 12 Feb 2009

THE government will build two new community hospitals with 200 beds each as part of a bigger plan to deal with the ageing population over the next two decades.

Each of the hospitals will be built close to a general hospital. The first, to be ready by 2013, will be next to the Khoo Teck Puat Hospital under construction in Yishun. The second, to be completed by 2016, will be adjacent to Jurong General Hospital.

Announcing the plans during the Ministry of Health’s committee of supply debate yesterday, Health Minister Khaw Boon Wan said the target is to boost the number of community hospital beds by 60 per cent over the next 10 years. And by 2020, the ratio of community hospital beds to acute hospital beds should be improved to one to five, from one to eight at present.

‘Similarly, we are expanding nursing home capacity by 50 per cent over the next decade from 9,200 to 14,000 beds,’ Mr Khaw said. ‘This will be in both the private and voluntary welfare organisation sectors.’

The Health Ministry is already working with existing nursing homes, including those with expiring land leases, to increase bed capacity or relocate to bigger premises. Five new nursing homes are expected to be set up over the next two years. And there are plans to reserve more sites for nursing home development to meet longer-term demand.

The moves are in anticipation of higher demand for long-term care services as Singapore faces a ‘silver tsunami’ in 10-15 years when a generation of baby boomers turns 70-75. Mr Khaw believes Singaporeans will need to save more for their long-term care needs in future, but the issue will be revisited when the economy eventually recovers.

The $400 monthly payout provided under the basic Eldershield is clearly not enough, given a private nursing home can cost $1,800 a month. ‘We can either create an Eldersave or you save more in Medisave so it can also be used to fund long-term care,’ Mr Khaw said. ‘The question is how much will be needed for long-term care.’

Preliminary analysis shows the costs may not be insurmountable, he said. The Health Ministry is studying what is happening in the US, Europe and Japan, which spend less than 3 per cent of GDP on long-term care.

Source: Business Times – 10 Feb 2009

HOUSING Board flats in Jurong West saw significant price rises last year.

A study by property firm ERA has found resale prices of Housing Board flats there appreciated faster than those in other suburban towns such as Tampines and Woodlands.

More home seekers have flocked to Jurong West because of the Government’s Jurong Lake District masterplan which involves a major upgrade to the area.

The ERA study compared the median prices of resale flats in the first quarter and the fourth quarter of last year.

It showed that the median three-room resale flat prices in Jurong West rose by 19.4 per cent or $34,000 last year, compared with 12.3 per cent in Tampines and 15.7 per cent in Woodlands.

Four-room flat prices rose by 14.1 per cent, above the 8.6 per cent rise in Tampines and 12 per cent rise in Woodlands.

Prices of five-room flats rose the least, at 9.4 per cent, similar to Woodlands but still way above the modest 1.3 per cent rise in Tampines.

The bigger executive flats may be less popular these days, but in Jurong West last year, resale prices rose by 16 per cent, compared with 4.9 per cent in Tampines and 6.2 per cent in Woodlands.

The town, which used to conjure up unappealing images of sprawling factories and sleepy suburbia, is to be transformed into a vibrant place to live, work and play over the next 10 to 15 years.

The plan for Jurong Lake District includes turning the area around Jurong East MRT station into a commercial hub.

Prices of resale flats in Jurong East are generally higher than in Jurong West.

In a separate statement yesterday, property developer Frasers Centrepoint Homes said that it was launching a 712-unit condo near Lakeside MRT station called Caspian.

ERA and another property agency PropNex are marketing the 99-year leasehold condo, which is targeted at HDB upgraders.

It is located within the Jurong Lake District and will be the largest launch so far this year.

Developers generally did not want to launch their projects ahead of the Jan 22 Budget and the Chinese New Year celebrations, given the already poor sentiment.

Still, Frasers Centrepoint had been aiming to launch Caspian after Chinese New Year.

Sales start today with a staff preview. The public preview starts on Saturday, with 250 units available at an average price of $580 per sq ft.

A typical two- to four-bedroom plus study unit can cost between $540 psf and $640 psf.

The chief operating officer of Frasers Centrepoint Homes, Mr Cheang Kok Kheong, said in the statement that feedback and analysis of their pre-sales surveys had confirmed pent-up demand.

‘We have received strong interest from prospective owner-occupiers and even investors, who are now more keen to invest in brick-and-mortar property than risky financial instruments, especially if the property has a great potential upside to it.’

Another mass-market condo near Lakeside MRT station is The Lakeshore, which had seen the values of its units rise substantially since its 2003 launch and is reportedly selling at around $750 psf.

Source: Straits Times – 5 Feb 2009

A study by real estate agency ERA has shown that the resale prices of Housing and Development Board (HDB) flats in Jurong appreciated faster than other suburban towns in Singapore.

It compared median resale prices in the fourth quarter of 2008 to those in the first quarter of the same year.

The study covered three- to five-room, and executive flats in Jurong West, Tampines and Woodlands.

The comparison showed that resale prices of three-room flats in Jurong West went up by 19.4 per cent between the first and fourth quarters of last year. This was higher than the 12.3 per cent increase in Tampines and 15.7 per cent for Woodlands.

Resale prices for larger four- and five-room units also appreciated faster by 14.1 per cent and 9.4 per cent respectively.

In contrast, resale prices of four-room flats in Tampines rose by just 8.6 per cent and 12 per cent in Woodlands. Resale prices of five-room units grew by 1.3 per cent in Tampines and 9.4 per cent in Woodlands.

Resale prices of executive flats in Jurong West went up by 16 per cent or about three times more than those in Tampines and Woodlands.

ERA said the faster rate of increase in HDB resale prices in Jurong was partly due to the government’s plan to transform Jurong Lake District into a commercial and leisure hub over the next 10 to 15 years.

Source: Channel NewsAsia – 4 Feb 2009