Property value in flood-prone areas could suffer if problem not fixed

Property watchers have warned that the value of developments in flood-prone areas could suffer if the problem of flooding is not fixed.

They said prices and rental rates for residential and commercial properties could fluctuate if the problem continues for another three months. This may force businesses to move out.

Landlords may have to lower rent or take measures to prevent flooding to attract tenants.

Some buyers are now asking about the risk of flooding when they check out a property, including those that are not directly hit.

Executive director of Residential Projects, Orange Tee, Steven Tan, said: “In the past, this was never an issue. Now we can see that they are starting to have a concern whether the condominium or house that they want to buy will encounter this problem.”

Nicholas Mak, Real Estate lecturer at Ngee Ann Polytechnic, said: “Even if the property is not prone to flooding, but just because it is near another property that often suffers flooding whenever it rains, it could be guilty by association and its value could also be adversely affected.”

Source: Channel NewsAsia

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Private home prices up 5.3% to reach new record in Q2

Private home prices in Singapore continued to trend up but at a slower pace.

Data released by the Urban Redevelopment Authority (URA) on Friday showed that overall prices rose by 5.3 per cent in the second quarter of 2010, compared to 5.6 per cent in the first three months of the year.

This was marginally higher than the initial forecast of a 5.2 per cent climb for Q2 reported earlier this month.

The increase pushed the residential property price index to an all-time high, surpassing the market peak of 181.4 points in Q2 of 1996.

Non-landed home prices in the city and prime districts rose 5.4 per cent in Q2. Those in the city fringe cost 4.6 per cent more. And suburban home prices increased 5.7 per cent.

Landed home prices rose at a slower rate of 6.2 per cent in Q2 compared with 8.3 per cent in Q1.

Projects like The Minton and Waterbank were among the star performers in the second quarter.

But new home sales slowed in late-May, with sentiment hit by the European debt crisis.

Even with prices at a new high, observers do not expect more government intervention, for now.

Liang Thow Ming, Credo Real Estate’s executive director (residential services), said: “The measures that they have put in over the last two years have already brought sub-sales, in terms of percentage point, to a not-normally-seen single-digit (number). In that sense, I think speculation has been managed.”

Sub-sales, a key gauge of speculative activity, fell to 7.7 per cent in Q2, down from 9.6 per cent in the first three months.

Looking ahead, market watchers expect home prices to continue to moderate. They said prices could rise by some 3 to 5 per cent in the third and fourth quarter. That will bring the full-year increase to between 16 and 21 per cent.

Investors may also be comforted by rentals of private residential properties rising 5.9 per cent in Q2, up from 4.7 per cent a quarter ago.

Nicholas Mak, real estate lecturer at Ngee Ann Polytechnic, said: “This could be due to the improving job market. We are starting to see more foreigners being attracted to our shores and this will likely to continue due to the better economic forecast.”

Higher rentals may also spill over into the HDB rental market.

With economic recovery, observers expect property market sentiment to remain positive.

All in, new home sales reached 8,413 units in the first half. Analysts said sales could hit 14,000 units for the whole year.

- CNA

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Property sector tops consumer complaints list

The most number of complaints received by the Office of the Consumer Protection Board (OCPB) are against Thailand’s property sector, the office revealed yesterday.

In the first nine months of this fiscal year beginning October 2009, a record 2,900 complaints were filed against property firms, or 48.3 per cent of a total of 6,000 complaints.

OCPB secretary-general Niroth Charoenprakob said all complaints against property firms were about their failure to honour contracts.

Some of the complaints were about property firms not delivering the residence to the customer; firms unable to proceed with construction of the project when they face financial problems; not building infrastructure as promised in the advertising; not returning the down payment when the bank rejects a customer’s loan application.

However, OCPB has succeeded in dealing with 80 per cent of the complaints through negotiations, while the other 20 per cent have taken their cases to the civil court.

Niroth said that in all the cases filed in court, the customers will win and get pay back their money though it could take one to two years.

To help customers select the best property firms, OCPB has launched a campaign to find the best property firms by awarding stars to companies under the ‘The Star Property firm’ plan.

This scheme looks at five areas to find the best property firms. They are: financial structure, experience in property sector, design and construction standards, social and community responsibility, and customers’ application.

The 10 property firms who received ‘Star Property Firm’ rankings this year are: Pruksa Real Estate, Supalai, LPN Development, NC Housing, Charoem Nakorn Co, Home Place Development, Green Asset Co, Kanda Decor, Success Property, and Big 3 Asset. They were selected from 18 property firms who applied for the classification.

Niroth said that although there have been some complaints against property firms with the star classification, they are very few.

However, OCPB can withdraw the star if property firms fail to keep their commitments to their customers and the customers takes their cases to the court, he said.

Auto sector is behind property as the one with the most complaints, followed by the service sector, and consumer products.

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SME developers need to know their limits

Small property developers with little experience need to obtain sufficient information before making an investment, according to industry experts.
Tawatchai Sudtikitpisan, president of Kiatnakin Bank Plc, said big developers have an advantage not only in fund size but also access to information and research from their large client base.
“SME developers that may have completed three or four projects are still limited compared to big developers who have gone through more than 20 projects,” said Mr Tawatchai.
“Developing property from experience alone can be tough because the market changes fast and consumers are knowledgeable.”
Keerati Satasook, head of the Innovative Real Estate Development Programme at Thammasat University’s Faculty of Architecture and Planning, said SME developers need a new attitude.
“New developers who succeeded in other businesses may not be able to use the same methods in real-estate development,” said Mr Keerati.
For example, pricing in real estate is different from other products because if you unknowingly set the price too low, the product and the opportunity is forever lost, he added.
“In investment and loans, some businesses have learned that borrowing is not a good approach. But this is not the case in property,” he said.
Developers also need to know which projects are suited to their resources.
Kiatnakin has joined with Thammasat University’s Architecture department in organising an eight-week seminar, starting July 22, aimed at equipping SME developers with necessary information on property development.
The seminar content includes property development fundamentals, feasibility analysis of all project sizes, the property development process and property management fundamentals. The participants are 20 SME developers who are Kiatnakin’s loan clients.
Mr Tawatchai said the seminar should enable SMEs to compete with the big developers.
“SME developers who survive are those offering competitive products to the big developers,” said Mr Tawatchai. “What worries me is the ones who take up the business in the near future who need to keep up with the market.”
Thammasat University has also introduced an undergraduate programme in Architecture for Real Estate Development this year.
“It’s not enough for new architects to have only architectural design skills. They also need to understand business plans and property management,” said Asst Prof Santirak Prasertsuk, dean of the Faculty of Architecture and Planning.
The faculty aims to enroll about 90 architects in both the undergraduate and graduate programmes in real estate development each year. The graduate programme has been running for three years under the name Innovative Real Estate Development with about 40 students each year.
Source : bangkokpost.com

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HDB commits another S$550m for upgrading in Tampines, Pasir Ris & Hougang

SINGAPORE : The Housing and Development Board (HDB) has committed another S$550 million to upgrade the living environment for another 54,000 homes in three middle-aged towns – Pasir Ris, Tampines and Hougang.
Launching the HDB’s 50th anniversary celebrations at Tampines Town on Sunday, Deputy Prime Minister Teo Chee Hean said the government has already spent S$540 million in these three towns to the benefit of some 67,000 homes.
He stressed that as long as Singapore has the financial resources, the government will continue to upgrade and rejuvenate the housing estates.
And to keep up with the transformation of residential areas, supporting facilities like commercial and social areas will also be upgraded.
Mr Teo said Loyang Point in Pasir Ris will be upgraded at year’s end, with 40 new shops being added.
He said: “The result of all these efforts will be a better living environment for everyone, and towns that we can proudly call our own. Our HDB flats are not just flats, they are homes that root us to our community. People are at the very centre of every HDB development.
“While the physical transformation of the public housing landscape has been impressive, the kampong spirit must also be preserved and nurtured.”
Mr Teo, who’s also MP for Pasir Ris-Punggol GRC, said it has been an experience to work with the HDB, grassroots and community leaders in improving neighbourhoods, and help new residents settle into their new homes.
Source : Channel Newsasia – 26 July 2010

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Singapore Passes Housing And Development Amendment Act 2010

This Bill seeks to amend the Housing and Development Act (Cap. 129) to strengthen the protection of flats, houses and buildings sold by the Housing and Development Board.

The Bill works under Part IV of the Act, in particular, to prevent the use of such property as security or collateral for any debt, obligation or claim, except in favour of specified or approved parties; and to make several other unrelated amendments.

Clause 1 relates to the short title and commencement.

Clause 2 amends section 13 to include a new function for the Board, to allow it to provide technical and consultancy services in respect of matters within its expertise.

Clause 3 inserts a new section to make it clear that the Board has the power to develop and acquire intellectual property rights, and to sell and deal with them on a commercial basis anywhere in the world.

Clause 4 amends section 27 to allow penalties to be prescribed for the breach of restrictions, conditions or requirements in leases for the rental of flats directly from the Board, e.g. penalties for subletting rental flats meant only for those who are in need.

Clause 5 repeals and re-enacts section 51 that:

implements a new rule that voids any contract or agreement to use property sold under Part IV of the Act (including the proceeds of transactions involving such property) as security or collateral, except in favour of the Board, specified financial institutions and persons prescribed by the Minister. The exception ensures that the use of such property to secure financing for the purchase of the property from the Board or specified lenders (under the Housing and Development (Mortgage to Lender) Rules (Cap. 129, R 10)) will not be affected;
prevents any deed, instrument or document that purports to protect rights under or give effect to such contracts or agreements that are voided from having any effect and from being registered under the provisions of the Registration of Deeds Act (Cap. 269) or the Land Titles Act (Cap. 157). An owner may, for his own reasons, decide to execute documents to give effect to a voided contract or agreement. Such documents will also be of no effect, and consequently, no instruments (including caveats) can be filed at the relevant registries on the basis of the purported execution of such void contracts or agreements;
provides a procedure for the relevant land registries to cancel the registration of any deed, instrument or document that is of no effect; and
includes all the existing protection in section 51 for property sold under Part IV of the Act, with drafting refinements.
EXPENDITURE OF PUBLIC MONEY

This Bill will not involve the Government in any extra financial expenditure.

A BILL
An Act to amend the Housing and Development Act (Chapter 129 of the 2004 Revised Edition).

Be it enacted by the President with the advice and consent of the Parliament of Singapore, as follows:

Short title and commencement

This Act may be cited as the Housing and Development (Amendment) Act 2010 and shall come into operation on such date as the Minister may, by notification in the Gazette, appoint.

Amendment of section 13

Section 13 of the Housing and Development Act (referred to in this Act as the principal Act) is amended by inserting, immediately after paragraph (d), the following paragraph:

“(da) to provide technical and consultancy services within or outside Singapore, in respect of matters within its expertise acquired in the exercise of its functions under this Act, and to act as an agent for the Government or, with the approval of the Minister, as an agent for another public authority in the provision of such services;”.

New section 22A

The principal Act is amended by inserting, immediately after section 22, the following section:

“Power in respect of intellectual property rights 22A. The Board may create, develop, apply for, acquire and hold intellectual property rights and enter into agreements (whether in Singapore or elsewhere) for the sale, licensing or commercial application of such rights, on its own or in conjunction with other persons.”

Amendment of section 27

Section 27(2) of the principal Act is amended:

by deleting the word “and” at the end of paragraph (c); and by deleting the full-stop at the end of paragraph (d) and substituting the word “; and”, and by inserting immediately thereafter the following paragraph:“ prescribing the penalty (such penalty, if unpaid, to constitute a debt due to the Board and be recoverable as such) to be paid by the person who leases a flat from the Board, for non-observance or non compliance with any of the restrictions, conditions or requirements of the lease.”
Repeal and re-enactment of section 51

Section 51 of the principal Act is repealed and the following section 5 substituted therefor:

“Property not to be used as security or attached, etc., and no trust in respect thereof to be created without approval of Board

51.—(1) Subject to subsection (4), any contract or agreement to directly or indirectly use protected property (or the proceeds of sale of protected property) as security or collateral for any debt, obligation or claim shall be null and void.

Any act (including the deposit of title deeds), deed, instrument or document that purports to protect rights under or give effect to any contract or agreement that is null and void under subsection (1) shall
be of no effect and shall not result in or create any interest in land or be capable of being registered under the provisions of the Registration of Deeds Act (Cap. 269) or the Land Titles Act (Cap. 157).

Where any deed, instrument or document referred to in subsection (2) is registered under the provisions of the Registration of Deeds Act or the Land Titles Act:

the Board may, by an instrument lodged with the Registrar of Deeds or the Registrar of Titles, as the case may be, declare such deed, instrument or document to be null and void; and
the Registrar of Deeds or the Registrar of Titles shall register the instrument lodged by the Board under paragraph
without being concerned to inquire into its regularity or validity, and upon registration thereof shall cancel the registration of such deed, instrument or document declared by the Board to be null and void.
Subsection (1) does not apply if the security or collateral is to be created or granted in favour of:

the Board;
an approved financial institution; or
any person or person belonging to a class of persons prescribed by the Minister as a person to whom, or a class of persons to which, subsection (1) will not apply.
No protected property shall vest in the Official Assignee on the bankruptcy of the owner thereof.

No protected property shall be attached in execution of an order of any court unless the order of the court is obtained by:

a mortgagee in exercise of his rights under a mortgage created with the prior written consent of the Board over that property; or
a chargee in exercise of his rights under a charge under any written law over that property.
Subsections (5) and (6) shall not apply if the sole owner of any protected property is not a citizen of Singapore or, where there is more than one owner, all the owners are not citizens of Singapore.

No trust in respect of any protected property shall be created by the owner thereof without the prior written approval of the Board.

Every trust which purports to be created in respect of any protected property without the prior written approval of the Board shall be null and void.

No person shall become entitled to any protected property (or any interest in such property) under any resulting trust or constructive trust whensoever created or arising.

In this section, “approved financial institution” means:

any bank licensed under the Banking Act (Cap. 19);
any finance company licensed under the Finance Companies Act (Cap. 108);
any direct insurer registered under the Insurance Act (Cap. 142); and
any merchant bank approved as a financial institution under the Monetary Authority of Singapore Act (Cap. 186);
“proceeds of sale”, in relation to any property, means the proceeds from any transaction involving the sale, transfer, conveyance, assignment, mortgage, charge or the disposal in any manner of the property or an estate or interest in the property;

“protected property” means any flat, house or other building that has been sold by the Board under the provisions of this Part; “Registrar of Deeds” means the Registrar of Deeds appointed under the Registration of Deeds Act (Cap. 269) and includes any Deputy Registrar of Deeds; “Registrar of Titles” means the Registrar of Titles appointed under the Land Titles Act (Cap. 157) and includes any Deputy Registrar of Titles and Assistant Registrar of Titles.”.

Article printed from Gov Monitor: http://www.thegovmonitor.com

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