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New en bloc record eyed by Mandarin Gardens with $2.79 billion price tag

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Author: Ravi Philemon

Mandarin Gardens in Siglap eyes a new en bloc record by raising their asking price from the previous $2.48 billion to $2.79 billion. Today Online which first reported on this new en bloc price sought by the owners of the development, said the asking price was increased after the development was found to be undervalued by more than $300 million.

If they are successful with their revised asking price, Mandarin Gardens will set a new en bloc record. Pandan Valley set the previous high with its $2.6 billion asking price.

Mandarin Gardens’ Collective Sale Committee (CSC) said they discovered the disparity in land value following a check with the Urban Redevelopment Authority (URA) on Mandarin Gardens’ development baseline record. “The drastically increased baseline we received resulted in a corresponding reduction of the differential premium, which enables us to increase the reserve price, and at the same time reduce the per sq ft per plot ratio (psf ppr) for the developers,” he said in a notice sent to residents.

Mortgage Broker Singapore – Should I use one?

The marketing agent for the collective sale effort, C&H Properties, believes that despite the new property cooling measures introduced in July which has helped to cool the en bloc fever, the 12.5 per cent increase in the new en bloc sale asking price is a winning proposition for both developers and sellers. They made the development more attractive to prospective buyers by reducing its price per square foot per plot ratio (psf ppr) from S$1,236 to S$1,191.

The CSC hopes that its new en bloc sale price would give the collective sale bid a shot in the arm, as they have so far garnered 62 per cent approval from residents — 18 per cent short of the 80 per cent requisite for a collective sale.

new en bloc

new en bloc

International Property Advisor CEO Ku Swee Yong said this is the first time he has encountered an en bloc effort raising its price due to the discovery of an inaccurate land value estimation. He noted that using nearby condominiums such as Seaside Residences which was launched at $2,000 psf last year as a benchmark, Mandarin Gardens’ psf price of $1,191 provides developers with sufficient margins. He added that the price adjustment could prove to be a futile exercise given that $2.79 billion is an enormous price tag.

With the new en bloc sale price, each owner stands to gain an average of $2.8 million if the sale is successful.

En Bloc Sales Process Singapore – A Definitive Step-by-step Guide

Paul Ho, chief mortgage consultant at iCompareLoan, said the 99-year leasehold development, with 1,006 units, sitting on sites close to or over one million sq ft, is so big that given the current market conditions, even the big boys may not have a risk appetite for.

“Developers interested in bidding for collective sales of Mandarin Gardens have to be mindful of other cost factors like development charge and Additional Buyers’ Stamp Duty, which may push up the actual costs for them even higher,” Mr Ho said. Adding: “With the upgrading premium, the actual bill for the developer could be pushed to be in the region of $3 – $4 billion.”

The attempt to sell Mandarin Gardens en bloc failed 10 years ago when the sales committee pushing for the collective sales of the condominium was accused of trying to control the management council running the estate and voting down proposals to upgrade estate facilities.

Mr Ho asks if  Mandarin Gardens be the single biggest uniting force to let property developers come together and work together?

“Previously, it was a case of too many developers and too few Government land sales plots. As no developer want to wind down their business, they bid increasingly higher to win land bids. The ability to price higher depends on whether there is a recession or not and whether people have sufficient choices of units to choose from. This is like 3 or 4 projects worth of condominium in 1 deal.
Are we trying to fish for a giant developer such as Century Garden or maybe Forest City type. These kind of developers could hail from China. They could easily move many units to Chinese buyers. In a new twist, the new condominium would go from “Mumbai” Gardens to “Chinese” Gardens. This is like an entire town in one condominium project, maybe it can have it’s own school, it’s own clinics, own police stations, own cinemas, own LRT tracks within the compound.
Fancy the new project being able to house 3,000 to 5,000 units? And each house having 4 people. That’s like an entire Electoral ward in a condominium. And maybe you can have your own MP stay within your condo as well. And the Condo manager is also your Management committee chairperson and your MP.
But it could also signal the start of developers cooperating to share bigger projects and consolidate their work force. There are too many developers and too many units in Singapore, least we want another property glut which we believe is coming, developers can work together and prevent bidding over the top. The only beneficiary is the Singapore government, not the people, nor the developers.”

How to Secure the Best Home Loans Quickly

iCompareLoan is the best infomercial loans portal for home-seekers, buyers, investors and real estate agents alike in Singapore. On iCompareLoan, you will be able to find all the latest news and views, informational guides, bank lending rates and property buying trends, and research data and analysis.

Whether you are looking to buy, sell or refinance apartments, condominiums, executive condos, HDB flats, landed houses or commercial properties, we bring you Singapore’s most comprehensive and up-to-date property news and best home loans trends to facilitate your property buying decisions.

Our Affordability Tools help you make better property buying decisions. iCompareLoan Calculators help you ascertain the fair value of a property and find properties below market value in Singapore.

Our trademarked Home Loan Report is Singapore’s first one-of-a-kind analysis platform that provides latest updates of detailed loan packages and helps property agents, financial advisors and mortgage brokers analyse best home loan packages for their clients, so that they may give unbiased home loan/commercial loan analysis for their property buyers and home owners. Our distinguished Panel of Property Agents who are users of our Home Loan report can give the best all-rounded advise to real estate seekers.

All the services of our mortgage consultants are ABSOLUTELY FREE, which means it’s all worth it to secure a loan through us.

Whether it is best home loans, best commercial loans or refinancing of existing loans or SME loans, CONTACT US TODAY!

The post New en bloc record eyed by Mandarin Gardens with $2.79 billion price tag appeared first on iCompareLoan Resources.

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Executive Condo in Singapore – Step by Step Buyer Guide

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Author: Si jie LIM

Executive Condo Singapore – Step by step buyer guide

Most Singaporeans are familiar with HDBs and private properties. But mention Executive Condo in Singapore and you will realise that less of us are familiar with them. This is partly due to the smaller quantity of Executive Condo compared to HDBs or private residential properties. The hybrid nature of Executive Condo also makes explaining it a tad more difficult. Executive Condo in Singapore are considered HDB flats at the point of purchase and they somewhat follow HDB financing and affordability rules. After 5 years, Executive Condominiums become quasi-private residential condominiums whereby Singaporeans and Singapore PR can buy and sell as though they are private condominiums. After 10 years, executive condominiums will be considered full pledge private residential condominiums and can be bought and sold to Singaporeans, Singapore PR as well as foreigners.

iCompareLoan noticed this phenomenon and we decided to write a guide to teach our readers all there is to know about Executive Condo in Singapore. This guide is here to answer all the questions you have about Executive Condo, from what it is to whether you are eligible to why you should buy one and how to buy one.

 

Executive Condo Singapore

Image Credits: The Scala, https://commons.wikimedia.org/wiki/File:The_Scala_Condo,_Singapore.jpg

 

What Is an Executive Condo in Singapore?

An Executive Condo is a hybrid type of housing under Singapore’s public housing scheme. In the past, Executive Condo was better known as Housing and Urban Development Company (HUDC) flats. The HUDC system was later overhauled and replaced with Executive Condo.

Singapore Executive Condo vs HDB (Housing Development Board Flats)

In the first 10 years of ownership, an Executive Condo takes the properties of an HDB. It is considered as a public housing, which means that the unit can only be sold to Singapore citizens or permanent residents. Furthermore, an Executive Condo will need to fulfil the 5-year minimum occupation period (MOP) before it can be sold on the secondary market, just like any HDB.

Executive Condo Singapore vs Private Condo Singapore

Both private condos and Executive Condos look very similar on the exterior. There are nice amenities like gyms and swimming pools in both types of condos. It is almost impossible to tell them apart based on their exterior. However, the devil lies in the details.

As mentioned above, an Executive Condo takes on the characteristics of an HDB in the first 10 years. But once an Executive Condo hits the 10-year mark, it will become fully privatised. A 10-year old Executive Condo will then take the properties of a private condo. As a privatised condo, there is no ownership restriction when it comes to selling on the open market. The Executive Condo can be owned by both Singaporeans and foreigners, regardless.

Who Is Eligible To Buy An Executive Condo in Singapore?

In order to be eligible to buy an Executive Condo, the usual eligibility criteria for a HDB applies. For instance, you need to be at least age 21 and qualify under one of the 4 eligible schemes (Public Scheme, Fiancé/Fiancée Scheme, Orphans Scheme or Joint Singles Scheme). You also need to have zero interest in an overseas property

Apart from those usual eligibility criteria, there is an added income ceiling criterion. Your average gross monthly household income cannot exceed $14,000.

Can You Still Buy An Executive Condo in Singapore If You Already Own A HDB, DBSS Or Another Executive Condo?

If you are in ownership of a HDB or DBSS flat, you are still eligible to apply for an Executive Condo. The caveat is that you need to fulfil the MOP of 5 years for your current HDB or DBSS. You can even apply for another Executive Condo if you are in ownership of an Executive Condo if your current Executive Condo has met the 5-year MOP but not yet reached the 10-year fully privatised mark.

Why Should You Consider Buying An Executive Condo in Singapore?

1. You Belong To The Sandwiched Class

Executive Condo was introduced to cater to the needs of the sandwiched class. The sandwiched class refers to the group of Singaporeans who exceed the household income ceiling for HDB ($12,000) but falls short of being able to afford a private condo. As a result, you have no choice but to make an Executive Condo your first choice.

2. Executive Condos Are Eligible For CPF Housing Grants

Since Executive Condos are classified in the same class as HDB when it is sold, you will be eligible to apply for CPF Housing Grants. You can get around $10,000 – $30,000 worth of CPF Housing Grants for first-time applicants. While it might not be a huge sum, it can easily cover the renovation cost of your new home.

3. Executive Condo Are Value Buys

Getting an Executive Condo in Singapore allows you to get the same range of amenities as a private condo. However, you do not need to pay the same price as a private condo. Instead, you get to buy it at a fraction of the cost. According to past transactions, an Executive Condo is around 20-25% cheaper than private condos of similar size and location. Even ex-National Development Minister Khaw Boon Wan said that “buying an Executive Condo is like buying a Lexus at (Toyota) Corolla price”. As bargain-sensitive Singaporeans, it is no wonder why we are all rushing to get Executive Condos.

 

4. Executive Condos Fetch Better Rent

Executive Condos not only serves the purpose of being a good shelter, it also serves the purpose of being a good investment. For the investment savvy Singaporeans, getting an Executive Condo makes perfect investment sense. Since it is almost like a full-suite private condo, Executive Condos can fetch higher rent in the open market than a HDB of similar size.

What Types of Loan Can An Executive Condo Qualify For?

You might have guessed it but let us confirm it for you. Just like an HDB, an Executive Condo will be eligible for both HDB loan and private bank loan. So, you have the flexibility of choosing between forking out more down payment and borrow at a lower interest rate or pay less down payment and borrow at a relatively higher interest rate.

One important point to note is that the mortgage servicing ratio (MSR) will apply for Executive Condo instead of the total debt servicing ratio (TDSR). This is because MSR applies to HDBs while TDSR applies to private properties. Since Executive Condo is HDB-like in the first 10 years, MSR of 30% will apply. Thus, the maximum loan amount you can apply for will be limited by the 30% MSR.

Where Can You See The Executive Condo Launches?

If you are shopping around for new Executive Condo launches, then you must keep a look out for new developments on HDB’s website. Under the ‘Upcoming EC Development’ tab, you can view a list of Executive Condos that are slated to launch. You can also find out the list of Temporary Occupation Permit (TOP) dates of Executive Condos under the same page.

Executive Condo Singapore – Steps to Buy one

This is probably the only difference between an Executive Condo and a regular HDB flat. Instead of buying through HDB, an Executive Condo is bought directly from the developer. Thus, you need to get in direct contact with the developer to understand more about the flat types and submitting an application.

 

  1. Shop For Around For Your Desired Executive Condo Development

The process of buying an Executive Condo starts with shopping for one. Unlike HDB where you get all the flat models in a central location (i.e. HDB Hub @ Toa Payoh), each Executive Condo has its own showroom. You need to visit the physical showroom to check out the flat models from the developer. The showroom is usually located in the vicinity of the land plot.

Increasingly, developers are moving towards a digital process where you need to apply for an e-application before you get invited to the showroom.

  1. Submit Your Application For Executive Condo

Once you have confirmed your desired Executive Condo unit, the next step is to submit your application. The application process varies depending on whether the development has officially launch or not.

If the developer hasn’t officially launched the development, you can indicate your interest with an electronic application. Once the development is launched, you will be given priority for viewing and booking a unit. If the development has already launched, you can make an application on the spot at the showroom during viewing.

  1. Awaiting Your Fate

This step is very similar to the HDB application process. You and your spouse will need to anxiously wait for the outcome.

  1. Booking An Executive Condo Unit

If you are lucky enough to be invited for booking of an Executive Condo unit, congratulations. Similar to the HDB application, you will be given a ballot number. The lower your ballot number is, the more priority you get to choose your Executive Condo unit. Most buyers will shortlist a few units in mind in case their desired unit gets picked up by a ballot number before them.

With a ballot number, you can head down to meet your developer to select the Executive Condo unit. You will be asked to sign an Option To Purchase (OTP) to ‘chope’ your Executive Condo unit. Upon signing the OTP, you will need to pay a 5% option fee, either by Cashier’s Order, cheque or cash. You will also need to bring along the following items:

  1. Proof of identity/citizenship
  2. Proof of relationship/marital status
  3. Income statement
  4. CPF Housing Grant application form (if eligible). Submission of CPF Housing Grant needs to be done within one week of signing the OTP.

Your developer will then pass you a set of Property Details Information. This contains the floor plans, rules and regulations, offered items and other documents relating to your unit. You will be asked to read every single document and sign on each of the page to indicate that you have read through them. After which, you will …. wait again …. for HDB’s approval of your purchase.

 

5. Prepare The Necessary Loan And Solicitor Arrangements

 

The process for HDB’s approval usually takes 4-5 weeks. While you are waiting for HDB’s approval, use the time to source for your loan. If you want to get a bank loan, make sure you source for a competitive rate using iCompareLoan’s loan comparison tool. Don’t spend unnecessarily on interest rate payment.

Concurrently, you should be appointing your solicitors (aka lawyer). He/she will represent you in the Executive Condo purchase and liaise with the bank to iron out details of your loan if you are taking one from the bank.

 

6. Executive Condo Affordability in Singapore

As Executive Condominiums in Singapore are considered HDB flats at the point of purchase, they are subjected somewhat to HDB financing rules. Buying a HDB flat is subjected to: –

  • Mortgage Servicing Ratio (MSR) of up to 30% of your gross salary and on top of that;
  • Total debt servicing ratio (TDSR) of no more than 60% and;
  • Subjected to tenure cap of 25 years.

The executive condominium will be subject to: –

  • Mortgage servicing ratio (MSR) of up to 30% and;
  • TDSR of up to 60%, but the executive condominium and;
  • Subjected to a longer tenure cap of 30 years.

You can find out about your loan affordability here.

 

7.Exercise Your Sales and Purchase Agreement

After HDB has approved your purchase, you will receive the Sales and Purchase Agreement from the developer. You need to sign the agreement and return to the developer 3 weeks from the receipt date to exercise your OTP.

At the same time, you will need to pay the 15% balance of the down payment and buyer’s stamp duty (if applicable). You need to pay the 15% down payment balance within 9 weeks from the date of signing the OTP either through cash or CP. If you are taking a HDB loan, HDB will pay a portion of it by disbursing your loan. The buyer’s stamp duty is due within two weeks of signing the Sales and Purchase Agreement.

8. Decide Between NPS Or DPS

At this point, your choice of Executive Condo is confirmed. But this doesn’t mean that you can stay in it yet. You need to first decide whether you want to start instalment payments for your Executive Condo or choose to defer it till the development is completed.

  • Normal Payment Scheme (NPS)

Under the Normal Payment Scheme (NPS), you will make payment to your developer each time a pre-set milestone is completed. You can expect a payment of around 5 – 10% of the purchase price every 6 months.

  • Deferred Payment Scheme (DPS)

You also have the choice for the Deferred Payment Scheme (DPS) where you only start paying once the project is completed. The average time taken for the Executive Condo to obtain Temporary Occupation Permit (TOP) is 3 years. One thing to take note is that DPS comes with a 2-3% premium on the purchase price.

9. Collecting The Keys To Your Executive Condo Unit

Finally, after a long process, your developer informs you of the good news. Your Executive Condo is now complete, and the TOP has been issued. You can now pick up your keys and start letting your interior designer carry out the renovations.

Sign up for iCompareLoan’s newsletter to get updates on the latest Executive Condo launches in Singapore.

List Of Executive Condominium In Singapore 1999 through 2018

EC Location TOP Date
Treasure Crest Anchorvale Crescent 14-Sep-18
The Visionaire Sembawang Road/ Canberra Link 14-Jun-18
Sol Acres Choa Chu Kang Grove 26-Apr-18
Parc Life Sembawang Crescent 29-Mar-18
Wandervale Choa Chu Kang Avenue 3 14-Mar-18
The Criterion Yishun Street 51 26-Feb-18
The Brownstone Canberra Drive 30-Oct-17
Westwood Residences Westwood Avenue 24-Oct-17
Signature At Yishun Yishun Street 51 (Parcel B) 14-Jul-17
The Terrace Punggol Drive/ Edgedale Plains 25-May-17
Bellewaters Anchorvale Crescent 3-May-17
The Vales Anchorvale Crescent 2-May-17
Bellewoods Woodlands Avenue 5/ Woodlands Avenue 6 16-Mar-17
Lake Life Yuan Ching Road/ Tao Ching Road 30-Dec-16
The Amore Punggol Central/ Edgedale Plains 28-Nov-16
Sea Horizon Pasir Ris Drive 3/ Pasir Ris Rise 7-Oct-16
Ecopolitan Punggol Way/ Punggol Walk 29-Aug-16
SkyPark Residences Sembawang Crescent/ Sembawang Drive 10-Aug-16
Lush Acres Sengkang West Way/ Fernvale Link 30-Jun-16
Forestville Woodlands Avenue 5/ Woodlands Drive 16 1-Apr-16
The Topiary Fernvale Lane 22-Mar-16
Twin Fountains Woodlands Avenue 6/ Woodlands Drive 16 14-Mar-16
Citylife@Tampines Tampines Central 7/ Tampines Avenue 7/ Tampines Avenue 9 3-Feb-16
Waterbay Punggol Central/ Edgefield Plains 27-Jan-16
Waterwoods Punggol Field Walk/ Punggol East 1-Dec-15
Heron Bay Upper Serangoon View/ Upper Serangoon Road 7-Oct-15
1 Canberra Yishun Avenue 7/ Canberra Drive 19-Sep-15
Twin Waterfalls Punggol Way/ Punggol Field 2-Jun-15
The Rainforest Choa Chu Kang Drive 6-Mar-15
The Tampines Trilliant Tampines Central 7 6-Feb-15
WaterColours Pasir Ris Drive 3/ Pasir Ris Linkg 31-Dec-14
Blossom Residences Segar Road 5-Sep-14
Arc at Tampines Tampines Avenue 8 5-Aug-14
RiverParc Residence Punggol Drive/ Punggol East 19-Jun-14
Belysa Pasir Ris Drive 1/ Elias Road 28-May-14
Austville Residences Sengkang East Avenue/ Buangkok Drive 22-Apr-14
The Canopy Yishun Avenue 11 14-Jan-14
Esparina Residences Buangkok Drive/ Compassvale Bow 11-Sep-13
Privé Punggol Field 17-Jul-13
La Casa Woodlands Drive 16 25-Apr-08
The Quintet Choa Chu Kang Street 64 23-Oct-06
The Esparis Pasir Ris Drive 4 22-Jun-05
Whitewater Pasir Ris Street 72 1-Mar-05
Park Green Rivervale Link 30-Sep-04
Nuovo Ang Mo Kio Avenue 9 31-Aug-04
Lilydale Yishun Avenue 6 29-Mar-03
Bishan Loft Bishan Street 11 26-Sep-03
The Dew Bukit Batok Street 21 19-Jul-03
The Eden Tampines Street 34 16-Apr-03
The Floravale Westwood Avenue (Jurong West) 13-Oct-00
Woodsvale Woodands Drive 72 5-Aug-00
Northoaks Woodlands Crescent 3-Oct-00
The Florida Hougang Avenue 7 30-May-00
The Rivervale Rivervale Link 28-Jun-00
Summerdale Boon Lay Drive 8-Sep-00
Yew Mei Green Choa Chu Kang North 6 1-Sep-00
Pinevale Tampines Street 73 28-Jul-99
Chestervale Bangkit Road 20-Mar-99
Windermere Choa Chu Kang Street 64 16-Sep-99
Simei Green Simei Street 4 28-Apr-99
Westmere Jurong East Street 13 27-Feb-99
Eastvale Pasir Ris Drive 3 27-Jan-99

Table 1: List of Executive Condominiums in Singapore from 27 Jan 1999 till 14 Sep 2018, Collated by iCompareLoan.com

 

Under construction EC Location Street address Estimated Completion
Northwave Woodlands Woodlands Avenue 12 Feb-2019
iNz Residence Choa Chu Kang Choa Chu Kang Avenue 5 Aug-2019
Hundred Palms Residences Hougang Yio Chu Kang Road
Rivercove Sengkang Anchorvale Lane

Table 2: List of Building Under construction Executive Condominiums in Singapore, iCompareLoan.com

 

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Podcast Ep#18: What Q3 Property Data Tell Us

Click on Podcast Ep#18: What Q3 Property Data Tell Us
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https://i1.wp.com/www.propertysoul.com/wp-content/uploads/2016/12/cropped-heading.jpg?fit=32%2C32&ssl=1 Author: Property Soul

On October 26, URA released the 3rd quarter 2018 real estate statistics. Let’s study them in details to see what the latest property numbers are telling us. I will share with you four things In this podcast: 1) Where the numbers show the shrinking size of buyers in the market; 2) Why the developers are… [read more]

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CPF members get protection from unfortunate events through Home Protection Scheme

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Author: Ravi Philemon

The CPF Home Protection Scheme (HPS) protects CPF members and their families from losing their HDB flat in the event of death, terminal illness or total permanent disability.​ The HPS is a mortgage-reducing insurance that protects CPF members and their families against losing their HDB flat in the event of death, terminal illness or total permanent disability.

HPS insures CPF members up to age 65 or until the housing loans are paid up, whichever is earlier.​

CPF members may use their Ordinary Savings Account to pay for HPS, but if you do not pay your Home Protection Scheme premium, your cover will lapse and you will not be covered under the scheme. You will need to re-apply for cover if you wish to be covered under CPF HPS and your eligibility for coverage will be subject to your health condition at the point of the re-application.

You have to fully disclose all information regarding your health conditions, which include all your past and current illnesses, any past or planned surgery, and any physical or mental impairment. You may also be required to undergo a medical examination. The CPF Board may also request a copy of the medical report on your health condition.

CPF Home Protection Scheme faulted for failing dead taxi driver’s family

The Home Protection Scheme premium is calculated based on four factors:

  • Outstanding housing loan on the flat;
  • Loan repayment period of the flat
  • Type of loan (concessionary or market rate); and
  • Age and gender of member

If CPF members suffer total permanent disability, terminal illnesses or passes away, CPF Board will settle the outstanding housing loan, up to the insured sum, with HDB or the mortgagee directly.​​

CPF members

If the member suffers from terminal illness or total permanent disability, or passes away on or after 1 May 2016, with the sum assured higher than the outstanding loan, the excess amount will be paid into the insured member’s Ordinary Account.

For deceased members, their CPF savings will be distributed to their nominees. In cases where no nominations are made, the Public Trustee will distribute the deceased member’s CPF savings under the intestacy laws or Muslim inheritance laws. The member and his joint owners or personal representatives will be informed once the claim payment has been made.

There are however some exclusions for HPS claims. CPF members will not be able to claim under HPS if the following events occur within the first policy year of the cover:

  • they committed self-inflicted injury or suicide, or​
  • they committed a criminal offence punishable by death, or​
  • the claim arose out of their own intentional criminal act.​​

CPF members will also not be able to claim under HPS if they were not in good health before the commencement of HPS cover, or​
if they provided false or misleading information, or​ if ​the claim arose from wars or any warlike operations or participation in any riot​.

Mortgage Broker Singapore – Should I use one?

CPF members will also have to adjust your HPS cover if the loan repayment period or loan amount has changed,or if your share of responsibility in repaying the loan has changed. This is to ensure that you are not over-insured and that your share of HPS cover is sufficient to pay your share of the outstanding loan in the event of death or permanent incapacity.

You can apply for HPS exemption if you already have one or more of the following insurance policies:

  • Whole Life
  • Term Life
  • Endowments
  • Life Riders (must be attached to a basic policy)
  • Mortgage Reducing Term Assurance (MRTA) / Decreasing Term Rider

These policies must cover your outstanding housing loan up to the full term of loan or 65 years old, whichever is earlier, in the event of death, terminal illness or total permanent disability​. Your exemption from HPS may be revoked if any of the insurance policies used for the exemption is discontinued or altered.

Subsequently, the CPF Board would only extend a HPS cover to you based on the declared percentage that you were exempted for, and this is subjected to the Board’s terms and conditions. If you wish to be exempted from HPS again, you will need to reapply for it. CPF members can apply for HPS cover regardless of if they are using HDB loan or bank loan.

By: Phoenix Lee/Contributor iCompareLoan

How to Secure the Best Home Loans Quickly

iCompareLoan is the best infomercial loans portal for home-seekers, buyers, investors and real estate agents alike in Singapore. On iCompareLoan, you will be able to find all the latest news and views, informational guides, bank lending rates and property buying trends, and research data and analysis.

Whether you are looking to buy, sell or refinance apartments, condominiums, executive condos, HDB flats, landed houses or commercial properties, we bring you Singapore’s most comprehensive and up-to-date property news and best home loans trends to facilitate your property buying decisions.

Our Affordability Tools help you make better property buying decisions. iCompareLoan Calculators help you ascertain the fair value of a property and find properties below market value in Singapore.

Our trademarked Home Loan Report is Singapore’s first one-of-a-kind analysis platform that provides latest updates of detailed loan packages and helps property agents, financial advisors and mortgage brokers analyse best home loan packages for their clients, so that they may give unbiased home loan/commercial loan analysis for their property buyers and home owners. Our distinguished Panel of Property Agents who are users of our Home Loan report can give the best all-rounded advise to real estate seekers.

All the services of our mortgage consultants are ABSOLUTELY FREE, which means it’s all worth it to secure a loan through us.

Whether it is best home loans, best commercial loans or refinancing of existing loans or SME loans, CONTACT US TODAY!

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Seven-storey freehold commercial building in South Bridge Road up for en bloc

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for the source.
Author: Ravi Philemon

Cushman & Wakefield today announced that it has been appointed as the marketing agent for the sale of a seven-storey freehold commercial building, known as Merchants Building, at No. 76 South Bridge Road.

The seven-storey freehold commercial building has a land area of 104.5 sq m (1,125 sq ft approximately). Under the Master Plan 2014, it is zoned “Commercial” with a gross plot ratio of 4.2.

The seven-storey freehold commercial building is located on an envelope control site, within the secondary settlement of “Upper Circular Conservation Area” in the Central Business District (CBD). The gross floor area of the seven-storey freehold commercial building is estimated to be about 6,927 sq ft approximately.

The strata-titled units within the seven-storey freehold commercial building are currently being held by 6 separate ownerships and the owners have decided to jointly put up for sale by tender with a minimum reserve price of $23.5 million. Based on this reserve price, it would translate to about $3,392 psf on the gross floor area.

According to Mr Shaun Poh, Executive Director of Capital Markets at Cushman & Wakefield, “This sale represents an exquisite opportunity to acquire a freehold commercial building within the bustling city centre, which is a short 5-minute walk to the Clarke Quay MRT station (North-East Line). The vibrant precinct is a popular district for businesses, tourists and locals alike for its wide array of amenities.”

“Given the recent cooling measures in the residential segment, coupled with the optimistic outlook in the office sector, commercial properties especially those in prime central locations, such as Merchants Building, will likely interest opportunistic funds and investors looking for investment-grade assets. The Property would also be an excellent option for end-users such as design houses, professional service providers, co-working operators, family offices, amongst others, who are seeking to acquire an entire building to house their operations and enjoy naming rights on the building. The new owner will have the option to redevelop or enhance the asset through Addition and Alterations (A&A) works, subject to approval from relevant authorities.”

The tender for the seven-storey freehold commercial building will close at 3.00 pm on 5 December 2018.

Mr Paul Ho, chief mortgage consultant of iCompareLoan said owners of the seven-storey freehold commercial building going en bloc have to act quickly and decisively.

En Bloc Sales Process Singapore – A Definitive Step-by-step Guide

With the winding down of the success of residential en bloc sales, commercial properties are now trying to join in the bandwagon. Many commercial en bloc sale attempts fail because the asking prices are often too high. Two critical factors affecting the success of commercial sites going en bloc are pricing and location. Older commercial buildings especially, may see a need to catch the current wave as an exit strategy as their rental yields come under pressure due to competition from newer commercial buildings.

And whatever decision owners facing en bloc sale make, it is better to make it fast so that the sale (or non-sale) can be concluded with minimal delay and maximum benefit to the owners. One way he said was to conduct a Collective Sales Agreement (CSA) as well as concurrently collect a “Non Collective Sales Agreement (NCSA)”, so that once a NCSA reaches 20%, the collective sale process is called off. There is really no point to drag on.

As collective sale process takes 20 to 30 months to complete, during this time, the owners typically do not have sufficient funds for down-payment and their CPF OA funds are tied up in the property, hence they cannot buy a new property early.

By the time the transaction is completed in 20 to 30 months later, the property prices would have already moved  up 10 to 20 per cent. This is already evidenced by sellers of older estate asking higher prices. Hence if the process takes 20 months to 30 months, owners may need to consider the cost of a replacement unit by that time, else they may want to hold up a higher selling price.

seven-storey freehold commercial building

Collective sale rules are quite onerous and stringent and is governed by the Land Titles (Strata) Act – section 84A. Over the years, additions and amendments by the Ministry of Law to the en bloc law have made the collective sale rules even tighter.

How to Secure the Best Commercial Loans Quickly

iCompareLoan is the best infomercial loans portal for commercial-property-seekers, buyers, investors and real estate agents alike in Singapore. On iCompareLoan, you will be able to find all the latest news and views, informational guides, bank lending rates and property buying trends, and research data and analysis.

Whether you are looking to buy, sell or refinance apartments, condominiums, executive condos, HDB flats, landed houses or commercial properties, we bring you Singapore’s the most comprehensive and up-to-date property news and best home loans trends to facilitate your property buying decisions.

Our Affordability Tools help you make better property buying decisions. iCompareLoan Calculators help you ascertain the fair value of a property and find properties below market value in Singapore.

Our trademarked Home Loan Report is a Singapore’s first one-of-a-kind analysis platform that provides latest updates of detailed loan packages and helps property agents, financial advisors and mortgage brokers analyse home loan packages for their clients and give unbiased home loan/commercial loan analysis for their property buyers and home owners. Our distinguished Panel of Property Agents who are users of our Home Loan report can give the best all-rounded advise to real estate seekers.

All the services of our mortgage consultants are ABSOLUTELY FREE, which means it’s all worth it to secure a loan through us.

Whether it is best home loans, best commercial loans or refinancing of existing loans or SME loans, CONTACT US TODAY!

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Singapore property hunters spoilt for choice, DBS Research

Click on Singapore property hunters spoilt for choice, DBS Research
for the source.
Author: Ravi Philemon

With three property developments launched for sale hitting the market in November 2018, Singapore property hunters are spoilt for choice said a DBS Insights report. Depending on further take-up rates, DBS believes that CDL could start raising prices in the medium term.

The bank noted that it was a busy weekend for Singapore property hunters and agents.

Singapore property huntersDBS noted that there were three property developments launched for sale and possibly the last two major property launches for the year, i.e. Parc Esta (ex-Eunosville) by MCL Land and Mayfair Modern (phase 2 of Mayfair Gardens) by Oxley will hit the market in the middle of November 2018. The three properties launched for sale moved quite a respectable number of units to Singapore property hunters despite the uncertainty brought about by the most recent government measure in October 2018, the report said.

“Whistler Grand by City Developments sold 160 units (22% sales take-up on total units, 67% of launched units), Arena Residences by Roxy-Pacific sold 40 units (41% sold) and Belgravia Green by Tong Eng Group (strata landed) sold 27 units (33% sales take-up). Priced to sell at close to the launch price of Twin Vew, we thought the strategy to “price to sell” by CDL worked somewhat, with momentum achieved at launch weekend.”

Depending on further take-up rates by Singapore property hunters in the coming weeks, DBS believes that CDL could look to start raising prices in the medium term.

“We were pleasantly surprised with the decent sales seen at Arena Residences despite being launched for sale within a week of preview, contrary to the norm of two weeks; this implies that Roxy Pacific is looking to catch the window before more launches hit the market. After some on-the-ground surveys, we understand that the interest generated was partly due to its freehold development status, near CBD location, and partly due to its strategy of launching for sale on Friday (2 November) ahead of all the property launches over the weekend with 5% + 3% discounts. Roxy-Pacific has removed the 3% discount as of today (5 November).”

The leading bank’s research further noted that it understands that Kent Ridge Hill Residences (by Oxley), which opened for preview on the same weekend as Whistler Grand, has postponed its official launch date. With that launch, the Singapore property hunters will have more choice.

“We visited the show flats of Parc Esta and Arena Residences over the weekend. The 1,399-unit Parc Esta, located opposite the Eunos MRT station and one MRT station away from the Paya Lebar Quarters, drew a decent crowd at its showflat. There were sizable queues to enter the show units. Living up to the Hongkong Land brand name, the show units displayed a nice finishing touch. The situated property agents seemed to be confident that the project could sell given the interests seen over the weekend and its proximity to the MRT station.

Arena Residences is a boutique development which offers a freehold, residential enclave at the CBD fringe. Its roof-top facilities (including swimming pool) offer a view of Marina Bay, much like the Kudeta Bar at Marina Bay Sands. In the long term, it will ride on the redevelopment of Kampong Bugis.”

DBS said that it will continue to monitor the sales momentum to gauge market sentiment.

DBS earlier said that its loan growth is expected to be in the mid-single-digit growth path, with continued net interest margin progression in 2019. DBS chief executive officer Piyush Gupta who made these observations in reflecting on the bank’s 3rd Quarter Report said there has been a moderate slowdown in economic growth, but that conditions are still favourable for expansion.

The bank reported that it delivered another healthy performance in third-quarter 2018 as DBS loan growth, fee income trends and net interest margin progression were sustained. It said that business momentum propelled total income to a record SGD 3.38 billion, up 5% from the previous quarter and 10% from a year ago.

DBS loans expanded 8% to SGD 340 billion, led by consumer and non-trade corporate loans. The banks’s net interest margin rose 13 basis points to 1.86% in line with higher interest rates in Singapore and Hong Kong.

How to Secure the Best Home Loans Quickly

iCompareLoan is the best infomercial loans portal for home-seekers, buyers, investors and real estate agents alike in Singapore. On iCompareLoan, you will be able to find all the latest news and views, informational guides, bank lending rates and property buying trends, and research data and analysis.

Whether you are looking to buy, sell or refinance apartments, condominiums, executive condos, HDB flats, landed houses or commercial properties, we bring you Singapore’s most comprehensive and up-to-date property news and best home loans trends to facilitate your property buying decisions.

Our Affordability Tools help you make better property buying decisions. iCompareLoan Calculators help you ascertain the fair value of a property and find properties below market value in Singapore.

Our trademarked Home Loan Report is Singapore’s first one-of-a-kind analysis platform that provides latest updates of detailed loan packages and helps property agents, financial advisors and mortgage brokers analyse best home loan packages for their clients, so that they may give unbiased home loan/commercial loan analysis for their property buyers and home owners. Our distinguished Panel of Property Agents who are users of our Home Loan report can give the best all-rounded advise to real estate seekers.

All the services of our mortgage consultants are ABSOLUTELY FREE, which means it’s all worth it to secure a loan through us.

Whether it is best home loans, best commercial loans or refinancing of existing loans or SME loans, CONTACT US TODAY!

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CPF Home Protection Scheme protects CPF members and their families from losing HDB flat

Click on CPF Home Protection Scheme protects CPF members and their families from losing HDB flat
for the source.
Author: Ravi Philemon

The CPF Home Protection Scheme (CPF HPS) protects CPF members and their families from losing their HDB flat in the event of death, terminal illness or total permanent disability.​

The CPF HPS is a mortgage-reducing insurance that protects members and their families against losing their HDB flat in the event of death, terminal illness or total permanent disability. CPF HPS insures members up to age 65 or until the housing loans are paid up, whichever is earlier.​

​You have to be insured under CPF HPS if you are using your CPF savings to pay your monthly housing loan instalments on your HDB flat. HPS does not cover private residential properties, such as executive condominiums (ECs) or privatised Housing and Urban Development Company (HUDC) flats.

Your CPF HPS cover starts when you are the legal owner of the flat, have completed the loan application with HDB or the approved mortgagee and are now legally responsible for the loan, have made your health declaration which is accepted for HPS coverage, and have paid the first Home Protection Scheme premium.

Mortgage Broker Singapore – Should I use one?

Your share of the Home Protection Scheme cover should at least match the proportion of the monthly housing installment which is payable with your CPF savings and/or cash. This is because Home Protection Scheme pays off the outstanding housing loan, up to the sum assured, based on the percentage share of cover of the insured in the event of death or permanent incapacity. For example, if you are paying 80% of the monthly housing installments, and your co-owner pays the remaining 20%, you should be insured for 80% of the loan and your co-owner 20%.

The total share of cover per household for CPF HPS should add up to at least 100%.

CPF HPS

However, you may each choose to insure for a higher or lower share based on your individual needs and circumstances, up to 100% share of cover per owner. For example, if you and your co-owner are paying 80% and 20% of the loan respectively, you can both be insured for 100%. This means that the CPF Board would settle 100% of the outstanding housing loan up to the insured sum in the event of death or permanent incapacity.

New members insured under Home Protection Scheme will be covered under Annual Premium (AP) up to 65 years old or until your housing loan is paid up, whichever is earlier. For members insured under Home Protection Scheme before 1 March 2001, your Single Premium (SP) CPF HPS will cover you up to 55 or 60 years old, depending on when you joined the scheme. This is stated in your SP certificate. The CPF Board will extend an AP cover when your SP cover has expired and you still have an outstanding housing loan. The issuance of AP cover is subject to premium payment.

​You will only need to pay annual premium for 90% of your Home Protection Scheme cover period. For example, if your CPF HPS cover period is 30 years, you will only need to pay the premium for 27 years.

The annual premium will be deducted automatically from your CPF Ordinary Account (OA) to renew your cover. CPF HPS premium deduction has priority over that of your monthly housing instalment. This is to ensure that you remain insured under Home Protection Scheme before you use your CPF to service the loan.

You will receive a notification from the Board to top up your OA if the balance is not enough to pay the premium.

If you have insufficient funds in your CPF OA account your spouse/parent/child/sibling, who co-owns the flat with you, can also authorise us to use his/her CPF OA savings to pay your premium shortfall.​

If you do not pay your Home Protection Scheme premium, your cover will lapse and you will not be covered under the scheme. You will need to re-apply for cover if you wish to be covered under CPF HPS and your eligibility for coverage will be subject to your health condition at the point of the re-application.

You have to fully disclose all information regarding your health conditions, which include all your past and current illnesses, any past or planned surgery, and any physical or mental impairment. You may also be required to undergo a medical examination. The CPF Board may also request a copy of the medical report on your health condition.

CPF Home Protection Scheme faulted for failing dead taxi driver’s family

The Home Protection Scheme premium is calculated based on four factors:

  • Outstanding housing loan on the flat;
  • Loan repayment period of the flat
  • Type of loan (concessionary or market rate); and
  • Age and gender of member

Written by: Phoenix Lee/Contributor iCompareLoan

How to Secure the Best Home Loans Quickly

iCompareLoan is the best infomercial loans portal for home-seekers, buyers, investors and real estate agents alike in Singapore. On iCompareLoan, you will be able to find all the latest news and views, informational guides, bank lending rates and property buying trends, and research data and analysis.

Whether you are looking to buy, sell or refinance apartments, condominiums, executive condos, HDB flats, landed houses or commercial properties, we bring you Singapore’s most comprehensive and up-to-date property news and best home loans trends to facilitate your property buying decisions.

Our Affordability Tools help you make better property buying decisions. iCompareLoan Calculators help you ascertain the fair value of a property and find properties below market value in Singapore.

Our trademarked Home Loan Report is Singapore’s first one-of-a-kind analysis platform that provides latest updates of detailed loan packages and helps property agents, financial advisors and mortgage brokers analyse best home loan packages for their clients, so that they may give unbiased home loan/commercial loan analysis for their property buyers and home owners. Our distinguished Panel of Property Agents who are users of our Home Loan report can give the best all-rounded advise to real estate seekers.

All the services of our mortgage consultants are ABSOLUTELY FREE, which means it’s all worth it to secure a loan through us.

Whether it is best home loans, best commercial loans or refinancing of existing loans or SME loans, CONTACT US TODAY!

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Prominent corner 999-year leasehold shophouse in Serangoon Garden for sale at $25 million

Click on Prominent corner 999-year leasehold shophouse in Serangoon Garden for sale at $25 million
for the source.
Author: Ravi Philemon

JLL today announced that a prominent corner 999-year leasehold shophouse in Serangoon Garden is up for sale. JLL being the exclusive marketing agent, is inviting offers through an Expression of Interest (EOI) exercise for the purchase of 56 Serangoon Garden Way, a 999-year leasehold corner non-conservation shophouse nestled in the heart of the quaint and trendy Serangoon Garden.

leasehold shophouse

image credit: JLL

Occupying a prominent corner location with a land area of 2,122 sf and total built-up area of approximately 3,482 sf, the prominent corner 999-year leasehold shophouse fronts a busy junction, benefiting from a wide dual frontage and high footfall. Located directly beside a large carpark, the property provides patrons with added convenience and accessibility.

Approved for permanent “Restaurant” use on the ground floor and “Shop” use for the upper floor, the prominent corner 999-year leasehold shophouse is currently fully-tenanted.

The ground floor is leased to a popular Indian restaurant whilst the upper floor is leased to a beauty salon. Zoned for “Commercial” use under the 2014 Master Plan, potential alternative uses for the property include retail, education, entertainment and medical amongst others, subject to approval from relevant authorities.

Mortgage Broker Singapore – Should I use one?

Known for its iconic laid-back character, Serangoon Garden is a vibrant F&B and lifestyle destination offering a plethora of lively restaurants, bars, cafes and local hawker joints. Famous for being home to the popular Chomp Chomp Food Centre and Serangoon Garden Market, the area constantly bustles with activities especially at night and on weekends.

Nestled in an exclusive residential enclave, the charming Serangoon Garden not only is a popular place of hangout to the surrounding population, but also offers a one-stop location for key amenities. Acting as the heart of the neighborhood, F&B, retail and convenience businesses flourish in the vicinity, being mainly supported by the large residential catchment in the area and the Serangoon town.

Identified by the Urban Redevelopment Authority (URA) as an identity node, Serangoon Garden will be well-preserved to safeguard and enhance its current charm and identity.

Mr Clemence Lee, Senior Director, Capital Markets, JLL said: “56 Serangoon Garden Way presents an exceptional opportunity to acquire one of the most outstanding assets in the popular residential enclave. All keen-eyed investors will recognize its excellent attributes, including its superior 999-year tenure, impeccable location, prominent corner plot frontage and stable rental income. We expect good interest from investors, funds, family offices as well as owner-occupiers.”

Opportunities to acquire corner freehold assets in prime affluent residential estates are extremely rare and they are seldom made available for sale. Over the last two years, notable assets of similar attributes transacted include 8/8A Sixth Avenue which sold for $12.5 million ($4,962 psf on GFA) in April 2018 and 22/22A Lorong Mambong which transacted at $16.2 million ($4,830 psf on GFA) in September 2017.

The indicative guide price for the prominent corner 999-year leasehold shophouse is in the region of $25 million.

Buying a commercial property versus residential property

As the prominent corner 999-year leasehold shophouse sits on land zoned for commercial use, foreigners are eligible to purchase the property. There is no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) imposed on the purchase of the property.

The sale of the prominent corner 999-year leasehold shophouse will be conducted through an Expression of Interest exercise which closes on Tuesday, 11 December 2018 at 3pm.

The biggest gainers following the new property cooling measures is likely be owners of strata portfolio of offices and shophouses approved for commercial use. The property cooling measures affected almost all categories of buyers and is predicted to achieve its intended objectives of cooling demand and moderating price growth. One report said investors looking for alternatives to park their money in the wake of property cooling measures, would divert their attention to the strata office and shophouse markets as they are not subjected to this round of purchase or sales restrictions/encumbrances.

In 2014, median shophouse price in Singapore peaked at $3,824 per square foot (psf) on land area. Due to the implementation of  loan curbs such as the Total Debt Servicing Ratio (TDSR) however, demand for shophouses decreased in line with other types of property. In 2017, the median shophouse price stood at $3,301 psf on land area. Even post-TDSR, many shophouses managed to rise in value.

Shophouses are perceived as attractive investments because they can hold their values because of their central locations and the freehold/999-year-leasehold of many of these properties. Shophouses are also valued because they give prominent presence to a business entity for them to be visible in a highly competitive environment.

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iCompareLoan is the best infomercial loans portal for home-seekers, buyers, investors and real estate agents alike in Singapore. On iCompareLoan, you will be able to find all the latest news and views, informational guides, bank lending rates and property buying trends, and research data and analysis.

Whether you are looking to buy, sell or refinance apartments, condominiums, executive condos, HDB flats, landed houses or commercial properties, we bring you Singapore’s most comprehensive and up-to-date property news and best home loans trends to facilitate your property buying decisions.

Our Affordability Tools help you make better property buying decisions. iCompareLoan Calculators help you ascertain the fair value of a property and find properties below market value in Singapore.

Our trademarked Home Loan Report is Singapore’s first one-of-a-kind analysis platform that provides latest updates of detailed loan packages and helps property agents, financial advisors and mortgage brokers analyse best home loan packages for their clients, so that they may give unbiased home loan/commercial loan analysis for their property buyers and home owners. Our distinguished Panel of Property Agents who are users of our Home Loan report can give the best all-rounded advise to real estate seekers.

All the services of our mortgage consultants are ABSOLUTELY FREE, which means it’s all worth it to secure a loan through us.

Whether it is best home loans, best commercial loans or refinancing of existing loans or SME loans, CONTACT US TODAY!

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CBD Premium and Grade A office rents for 2018 projected to grow at the fastest pace since 2010

Click on CBD Premium and Grade A office rents for 2018 projected to grow at the fastest pace since 2010
for the source.
Author: Ravi Philemon

CBD Premium and Grade A office rents for 2018 are projected to grow at the fastest pace since 2010, said a report by Colliers International. The Singapore office market looks set to end 2018 on a high amid tightening vacancy and limited stock of new space over the next three years. In particular, Colliers International anticipates that Premium and Grade A office rents in the Central Business District (CBD) could rise by 14% for the full 2018 – the first double-digit annual growth since 2011 and the fastest pace of increase since 2010.

grade a office rents

Image credit: Pixabay

Colliers’ Q3 2018 Office sector report showed that average CBD Premium and Grade A office rents rose 4.3% quarter-on-quarter (QOQ) to SGD9.20 per square foot per month (psf pm) in the three months to 30 September, following a 2.6% QOQ growth in Q2 2018. On a year-on-year (YOY) basis, average CBD Premium and Grade A rents increased by 15.2% in Q3. Strong headline rent growth and declining incentives probably underpinned the uplift in effective rents during the quarter, noted Colliers Research.

Cumulatively, CBD Premium and Grade A office rents have climbed by 12.1% in the first nine months of this year.

Ms Tricia Song, Head of Research for Singapore at Colliers International, said, “We expect the steady upward rental trend to persist over the next two years, with average rent rising an estimated 8% YOY in 2019, and a further 5% YOY over 2020. However, we acknowledge the risk that our rent forecasts may prove too high if turbulence in stock markets continues and results in reduced demand from finance sector occupiers, which account for about 45% of Grade A office space in Singapore’s CBD.”

Are Singapore Banks transferring Interest volatility risks to consumers?

In Q3 2018, CBD Premium and Grade A vacancy remained flat, rising by 0.1ppt QOQ to 5.6%. Colliers expects the prime office supply pipeline to taper significantly over 2019-2021, with new supply averaging 0.57 million sq feet (53,000 sq metres), or 2% of stock per annum, in contrast to the large supply injection in 2017 (approximately 10% of stock).

The office supply drought over 2019-2021 should keep CBD Grade A vacancy tight, below the 10-year average of 6.2%, even after accounting for the impact of slowing net absorption in 2020 and 2021 in accordance with consensus forecasts of a global economic dampening.

Mr Duncan White, Head of Office Services at Colliers International, said, “The market is acutely aware of the tight office vacancy rate and muted future supply, and this likely prompted a series of consolidation and relocation activity by multinational corporations in Q3 2018. We expect keen competition for prime upcoming supply and would advise occupiers to review portfolios early, as CBD Premium and Grade A vacancy should stay firmly below 6% over the next three years.”

Colliers Research found that the primary drivers of growth in the office property sector in Q3 were financial, insurance and business services, as well as the wholesale and retail trade industry.

Shoebox apartments keeps Singapore Banking Sector sustainable

Meanwhile, the office investment market saw lower overall volumes in Q3 2018 due to smaller deal sizes transacted during the quarter. The rolling 12-month volumes of office and mixed-use commercial transactions fell 28% QOQ to SGD3.83 billion, according to Colliers Research.

Some notable office transactions in Q3 included: 55 Market Street; the office component of OUE Downtown; and seven strata units at Prudential Tower. In particular, 55 Market Street was transacted at a record low cap rate (1.7%) for a 999-year leasehold asset, underscoring the weight of institutional capital chasing core opportunities at elevated valuations.

In Q3 2018, the average imputed capital value of CBD Grade A office properties rose 2.2% QOQ to SGD2,401 (USD1,756) per sq foot. CBD Grade A implied yields remained flat, ranging between 3.2% and 3.8% on average.

In an earlier report Colliers said that the projected growth in premium and Grade A office rents is likely to be front-loaded, with a sharper increase being recorded in 2018, and tapering down to a 5-7 per cent year-on-year rise over 2019.

It added that given that office rents have climbed by some 7.5 per cent year-to-date, it expects steady rental upticks in the Singapore office market to continue over the rest of 2018.

The biggest gainers following the new property cooling measures were predicted to be strata-offices and shophouses approved for commercial use as they are deemed as attractive investments. Investors looking for alternatives to park their money could divert their attention to the strata office and shophouse markets as they are not subjected to this round property curbs.

How to Secure the Best Commercial Loans Quickly

iCompareLoan is the best infomercial loans portal for commercial-property-seekers, buyers, investors and real estate agents alike in Singapore. On iCompareLoan, you will be able to find all the latest news and views, informational guides, bank lending rates and property buying trends, and research data and analysis.

Whether you are looking to buy, sell or refinance apartments, condominiums, executive condos, HDB flats, landed houses or commercial properties, we bring you Singapore’s most comprehensive and up-to-date property news and best loans trends to facilitate your property buying decisions.

Our Affordability Tools help you make better property buying decisions. iCompareLoan Calculators help you ascertain the fair value of a property and find properties below market value in Singapore.

Our trademarked Home Loan Report is a Singapore’s first one-of-a-kind analysis platform that provides latest updates of detailed loan packages and helps property agents, financial advisors and mortgage brokers analyse loan packages for their clients and give unbiased home loan/commercial loan analysis for their property buyers and home owners. Our distinguished Panel of Property Agents who are users of our Home Loan report can give the best all-rounded advise to real estate seekers.

All the services of our mortgage consultants are ABSOLUTELY FREE, which means it’s all worth it to secure a loan through us.

Whether it is best home loans, best commercial loans or refinancing of existing loans or SME loans, CONTACT US TODAY!

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CPF Home Protection Scheme faulted for failing dead taxi driver’s family

Click on CPF Home Protection Scheme faulted for failing dead taxi driver’s family
for the source.
Author: Ravi Philemon

The widow of a taxi driver faulted the CPF Home Protection Scheme in late September for failing to cover her husband even though he had been prompt in paying his premiums. In writing to the Chinese publication, Lianhe Zaobao, the widow said how she was hopeful that the Scheme would help her family from losing their HDB flat after her husband’s death, and how her hopes were dashed by the CPF Board.

Writing a letter titled, ‘Our Grievous Mid-Autumn Festival’, in the newspaper’s Voices section on 27 September 2018, the widow explained her troubles in her own words:

“One morning in mid-April this year, my husband was driving a taxi on the Ayer Rajah Expressway when his heart suddenly stopped beating. He used the last breath to stop the car, and the taxis and passengers were unharmed. After the accident, he was lying in the intensive care unit for five days. I was calculating how much the medical expenses would be to keep him in life support and realised that the money in his Medisave account can only keep him in this world just for a few more days.

Before deciding to remove him from life support, I first let the children say goodbye to their father, settle down and go home. I then returned to the hospital alone, held my husband’s hand, watched him painfully withstand the heart’s increasingly weak beating, and finally unable to bear his last breath and the body getting cold. I burst into tears.”

The widow continued that after her ordeal, one of her neighbour’s comforted her saying the CPF Home Protection Scheme will come in handy in protecting her house.

CPF Home Protection Scheme

The CPF Home Protection Scheme (HPS) protects CPF members and their families from losing their HDB flat in the event of death, terminal illness or total permanent disability.​ The CPF Home Protection Scheme  is a mortgage-reducing insurance that protects members and their families against losing their HDB flat in the event of death, terminal illness or total permanent disability. HPS insures members up to age 65 or until the housing loans are paid up, whichever is earlier.​

CPF Private Properties Scheme – what is it all about?

When the widow called the CPF Board about her husband’s claim, a staff of the Board comforted her, and assured her that the claim process has been launched. The staff reminded her not to default on her mortgage payments until the claim clears successfully. The widow borrowed some money to pay her mortgage loan promptly hoping that her CPF Home Protection Scheme claim will be cleared soon.

But four months later, the claim had still not cleared and she had also used up all the monies she had borrowed. She was however still hopeful that her claim will clear soon. She had disappointing news on the day of Mid-Autumn Festival.

On that day, she noticed that there was suddenly a deposit of $135 from CPF. She also received a letter from CPF saying that when the husband bought the CPF Home Protection Scheme coverage, he did not report that he had diabetes and heart disease. The Board decided that they could not payout his claim as a result and that they would return premiums he paid before his death.

The CPF Board returned $269.46 in unused CPF Home Protection Scheme premiums. The widow received $135, and the balance was divided equally between her two children.

The widow said:

“My husband signed the Home Protection Scheme at the HDB. If the relevant personnel had enquired, he will not deliberately conceal his medical history of chronic diseases. The hospital has records and he can’t hide it. Now how does the insurer prove that he has been asked about his health status when signing Home Protection Scheme?

“How can I prove that the relevant terms have been explained to my husband? When he walked through the door of the government department, he believed that the insurance was a guarantee provided by the government and that there was no need to doubt that the Government will honour its commitment.

“Since this is an insurance, the insurer is responsible for ensuring that the policyholder understands all the conditions and submits the proper documents and medical reports.

“If the CPF Home Protection Scheme will not cover for his death because of his diseases, why did my husband pay a premium of $1382.16 last year? If you will not cover, you should not collect the money. It now appears that if my husband was still alive, he will continue to pay the premiums, and his claim will continue to be not honored.

“If he had not died, he would be working hard every day and getting up early, just so that he can pay the premium of more than $1,300 this year. He will take more customers and buy cheaper daily necessities for our children.”

Mortgage Broker Singapore – Should I use one?

The CPF Board and HDB responded to the widow on Oct 2 and said that it had a duty to ensure integrity of Home Protection Scheme administration:

“We refer to Ms Li Yue’s letter, ‘Our Grievous Mid-Autumn Festival’ (27 September 2018).
We would like to convey our deepest condolences to Ms Li and her family on the demise of her husband. We are currently assisting her family and will reach out to Ms Li to see how we can help her with HDB’s financial assistance measures so that she can tide over this period of financial difficulty.
Please allow us to clarify how the Home Protection Scheme (HPS) works for the benefit of the readers.
HPS is an insurance scheme where claims are paid out from premiums collected. To keep premiums low and the application process simple, members are required to fully disclose their health conditions when they apply for HPS. Members who declare in the HPS form that they are healthy would generally not be inconvenienced by further underwriting and an HPS cover would be issued in good faith.
In Ms Li’s case, her husband bought an HDB flat in 1998. As he did not use his CPF savings to service his monthly housing instalment, HPS was optional and he did not seek HPS coverage then.
In 2013, Ms Li’s husband was hospitalised for a serious health episode. Soon after his discharge, he approached HDB to apply for an HPS cover. As with every HDB flat buyer who signs up for the HPS, the HDB officer would have explained to him the requirement to fully declare his health conditions in the application form. However, in his HPS form, he declared that he did not undergo any operation or hospital treatment in the last five years, nor did he declare the medical condition he was hospitalised for. HPS cover was issued to him on the basis of his declarations.
We are not in a position to speculate about the reasons why Ms Li’s husband did not disclose recent material facts at the time of his application. However, given the seriousness of his health conditions then, he would not have been eligible for an HPS cover.
As part of sound insurance practice, CPFB has a duty to ensure the integrity of HPS administration. Therefore, upon detection of non-disclosure by any insured member, we will terminate the HPS cover and refund the unused premiums into the insured’s Ordinary Account. It would not be fair otherwise to members whose HPS applications are rejected for similar reasons.
The vast majority of HPS claims by beneficiaries have been successful. Nonetheless, CPFB will look into how the HPS application and underwriting process can be improved.”

Written by: Phoenix Lee/Contributor iCompareLoan

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