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Source: MAS Singapore
Individuals can now apply to their banks and insurers to defer repayment of property loans, as well as premium payments for life and health insurance plans, as part of a package of measures to ease their financial strain arising from the Covid-19 outbreak - allowing them to defer either principal payment or both principal and interest payments on their residential property loans until 31 Dec 2020.
The package, rolled out by the Monetary Authority of Singapore (MAS) and the financial sector on Tuesday (31 March 2020), also offers cash flow support to small and medium-sized enterprises, such as by ensuring continued access to bank credit and insurance cover. It will also help to ensure that interbank funding markets remain liquid and well-functioning, the MAS added.
MAS anticipates many individuals and SMEs in Singapore to face challenges in managing their cash flows and meeting their financial obligations, such as loan repayments and insurance premiums and therefore worked with the Association of Banks in Singapore, the Life Insurance Association, the General Insurance Association and the Finance Houses of Association of Singapore for the slew of measures to help individuals, i.e. allowing them to defer either principal payment or both principal and interest payments on their residential property loans until 31 Dec 2020. Interest will accrue only on the deferred principal amount, and no interest will be charged on the deferred interest payments, the MAS said.
Lenders will approve the request for deferment if the applicant is not in arrears for more than 90 days as at April 6, 2020. Applicants also do not need to show that they had been hit by the Covid-19 fallout to obtain approval. Those with unsecured loans can also apply to their lenders to convert their outstanding balances into term loans at a reduced rate of interest, capped at 8 per cent. This is lower than the 26 per cent typically charged on credit cards, MAS noted.
The package, rolled out by the Monetary Authority of Singapore (MAS) and the financial sector on Tuesday (31 March 2020), also offers cash flow support to small and medium-sized enterprises, such as by ensuring continued access to bank credit and insurance cover. It will also help to ensure that interbank funding markets remain liquid and well-functioning, the MAS added.
MAS anticipates many individuals and SMEs in Singapore to face challenges in managing their cash flows and meeting their financial obligations, such as loan repayments and insurance premiums and therefore worked with the Association of Banks in Singapore, the Life Insurance Association, the General Insurance Association and the Finance Houses of Association of Singapore for the slew of measures to help individuals, i.e. allowing them to defer either principal payment or both principal and interest payments on their residential property loans until 31 Dec 2020. Interest will accrue only on the deferred principal amount, and no interest will be charged on the deferred interest payments, the MAS said.
Lenders will approve the request for deferment if the applicant is not in arrears for more than 90 days as at April 6, 2020. Applicants also do not need to show that they had been hit by the Covid-19 fallout to obtain approval. Those with unsecured loans can also apply to their lenders to convert their outstanding balances into term loans at a reduced rate of interest, capped at 8 per cent. This is lower than the 26 per cent typically charged on credit cards, MAS noted.
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Customers of life and health insurance policies can apply to their insurer to defer premium payments for up to six months while maintaining insurance coverage. Premium deferment is available for all individual life and health insurance policies with a policy renewal or premium due date between April 1 and Sept 30. General insurance policyholders for property and vehicles may apply to their insurers for instalment payment plans while maintaining protection.
"Deferring payments increases future obligations and hence borrowers and policyholders should weigh their options carefully," said the MAS. Applications open on April 1 for insurers, and April 6 for banks.
"Deferring payments increases future obligations and hence borrowers and policyholders should weigh their options carefully," said the MAS. Applications open on April 1 for insurers, and April 6 for banks.
Straits Times article - 31 March 2020
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Mortgagee listings may increase if COVID-19 pandemic stretches beyond 3rd quarter of 2020 - Colliers
Colliers International
Compared to 2018, Colliers noticed a larger number of properties were being put up for multiple rounds of auction in 2019, resulting in higher levels of listings across all sectors and all major auction houses. The robust auction listings, especially in mortgagee properties, reflect the challenging economic outlook and uncertainties in 2019. Faced with a subdued rental market and the dampening effects of the July 2018 cooling measures, the residential sector continued to lead both auction listings and sales in 2019. In total, 11 non-landed residential units, nine strata-titled industrial and retail units, and one shophouse were sold during auctions in 2019 making a total of 21 properties, a decline of 40.0% YOY from 35 properties knocked down during auctions in 2018.
With rising listings, the success rate fell further to 1.4% in 2019, lower than the 3.2% achieved in 2018 and the lowest annual level in our database. However, this rate does not take into account properties sold before or after the auctions. The results from Colliers International’s auctions indicated that the success rate including sales during and outside of Colliers’ auctions and excludes re-listings, was much higher at 13.3% in 2019. Of the 21 properties knocked down during auctions in 2019, 16 (or 76.2%) were mortgagee sales, a decline of 33.3% YOY from 24 in 2018. Of these 16 mortgagee sales in 2019, eight were residential (down 50.0% YOY), four were industrial (down 33.3% YOY) and four were retail (up four times YOY).
With rising listings, the success rate fell further to 1.4% in 2019, lower than the 3.2% achieved in 2018 and the lowest annual level in our database. However, this rate does not take into account properties sold before or after the auctions. The results from Colliers International’s auctions indicated that the success rate including sales during and outside of Colliers’ auctions and excludes re-listings, was much higher at 13.3% in 2019. Of the 21 properties knocked down during auctions in 2019, 16 (or 76.2%) were mortgagee sales, a decline of 33.3% YOY from 24 in 2018. Of these 16 mortgagee sales in 2019, eight were residential (down 50.0% YOY), four were industrial (down 33.3% YOY) and four were retail (up four times YOY).
The number of both owner listings and mortgagee listings saw strong increases in 2019, with mortgagee listings rising to a record level. Total owner listings were up by 14.8% YOY to 707 as owners continued to sell their properties via auctions for maximum exposure and a higher chance to achieve optimal prices. Due to a more challenging economic environment, total mortgagee listings surged by 59.1% YOY to 751 in 2019, driven mainly by the residential sector which was up by 67.4% YOY to 432. Colliers believe the higher mortgage payments due to rising interest rates during 2015-2019, coupled with a subdued residential rental market, contributed to the increase in residential mortgagee listings.
Personal circumstances such as loss of job or bankruptcy could also have led to higher defaults. After cooling measures in July 2018, possibly more distressed owners were unable to dispose of properties quickly enough, leading to default. Retail mortgagee listings saw a 72.7% increase YOY to 114 as many were small units in strata-titled malls or locations with low foot traffic which had difficulty finding tenants or sustainable rents, leaving owners unable to support mortgage payments. Industrial mortgagee listings rose by 29.5% YOY to 189 while office mortgagee listings surged by eight times YOY to 16.
Personal circumstances such as loss of job or bankruptcy could also have led to higher defaults. After cooling measures in July 2018, possibly more distressed owners were unable to dispose of properties quickly enough, leading to default. Retail mortgagee listings saw a 72.7% increase YOY to 114 as many were small units in strata-titled malls or locations with low foot traffic which had difficulty finding tenants or sustainable rents, leaving owners unable to support mortgage payments. Industrial mortgagee listings rose by 29.5% YOY to 189 while office mortgagee listings surged by eight times YOY to 16.
Despite the lower number of sales in 2019, total aggregate value of properties sold at auctions remained relatively stable at SGD50.1 (USD37.2) million, a marginal decline of 1.7% YOY, due to the higher quantum per unit transacted in 2019. Despite the fewer number of properties knocked down, the total mortgagee sales value actually increased 25.3% YOY to SGD38.5 (USD28.6) million as the average ticket size in 2019 almost doubled that of 2018. The mortgagee sales value accounted for 76.8% of total auction sales value, up from 60.3% in 2018. The residential sector accounted for the lion’s share at 79.2% of total mortgagee sales value, up from 73.4% in 2018.
Colliers expected an increase in distressed or mortgagee sales in the retail, industrial and residential sectors from the ongoing COVID-19 outbreak especially if it precipitates a downturn into H2 2020 with prices to be more realistic, leading to an improved success rate.
Colliers expected an increase in distressed or mortgagee sales in the retail, industrial and residential sectors from the ongoing COVID-19 outbreak especially if it precipitates a downturn into H2 2020 with prices to be more realistic, leading to an improved success rate.
Credit: Colliers International Report dated 10 March 2020
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4 more MRT stations on the Cross Island Line (CRL) extension:- Punggol, Riviera, Elias & Pasir Ris
By 2031, Punggol and Pasir Ris residents will get better MRT connectivity with the addition of four more train stations that will link up the eastern and north-eastern parts of Singapore. The 7.3km extension to the future Cross Island Line (CRL) will act as a shuttle service to supplement the buses that currently ply routes between both towns.
Thanks to the new extension, commuters can expect to save up to 25 minutes when they travel from Punggol Central to Pasir Ris, down from the 40 to 45 minutes it currently takes, the Land Transport Authority (LTA) said on Tuesday (10 March 2020).
Thanks to the new extension, commuters can expect to save up to 25 minutes when they travel from Punggol Central to Pasir Ris, down from the 40 to 45 minutes it currently takes, the Land Transport Authority (LTA) said on Tuesday (10 March 2020).
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Three of the four stations - Punggol, Riviera and Pasir Ris - will be interchanges built into existing stations that will eventually link up the North East Line (NEL), the Punggol LRT and the main branch of the CRL, the first phase of which is expected to be completed by 2029.
Elias station, meanwhile, will be located near the residential blocks of Pasir Ris Drive 3, industrial developments at Pasir Ris Drive 12 and Elias Mall. The trains on the Punggol extension will have six cars that can expand to eight when demand rises, similar to those on the main CRL. Ridership on the entire CRL is expected to rise from 600,000 initially to one million in the future.
Elias station, meanwhile, will be located near the residential blocks of Pasir Ris Drive 3, industrial developments at Pasir Ris Drive 12 and Elias Mall. The trains on the Punggol extension will have six cars that can expand to eight when demand rises, similar to those on the main CRL. Ridership on the entire CRL is expected to rise from 600,000 initially to one million in the future.
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Timeline & History
- 17 Jan 2013: Cross Island Line announced as part of the Land Transport Master Plan 2013
- Aug 2014 – End 2016: Environmental Impact Assessment
- 25 Jan 2019: First Phase of Cross Island Line with 12 stations officially announced, slated to open by 2029
- 25 May 2019: Cross Island Line to connect to Punggol by 2031, as announced in LTMP 2040.
- 4 Dec 2019: Direct Alignment option under Central Catchment Nature Reserve for Cross Island Line chosen by Ministry of Transport
- 10 Mar 2020: Cross Island Line Punggol Extension with 4 stations (including Pasir Ris) officially announced, slated to open by 2031
Cross Island Line extensions and timeline - Credit: LTA & Straits Times Graphics
Pasir Ris & Punggol residents will be looking forward to the greater connectivity and convenience that these 4 more MRT stations on the Cross Island Line (CRL) extension will bring, namely: Punggol, Riviera, Elias & Pasir Ris. With the CRL extension, commuters can save up to 25 mins when they travel between Punggol Central & Pasir Ris when the stations open by 2031. This will connect the North-East Line (NE Line) to Punggol Coast & the Punggol Digital District. - From Straits Times article on 10 March 2020
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Single unwed parents below 35 will benefit from this recent amendment in parliament. Photo credit - CityTv
Housing is arguably the most fundamental practical issue that unwed mothers must deal with as currently, single unwed parents aged 35 and above are only allowed to purchase a 2-room Flexi flat in a non-mature estate, or a resale flat if eligible.
In September last year, Member of Parliament Louis Ng raised the issue in parliament that despite the Government’s efforts to be more inclusive, it has not completely resolved the housing needs of single unwed parents, especially those under the age of 35.
Unwed mothers face a double disadvantage: They single-handedly bear not only the typical burden of motherhood, but also the stigma and tribulations of being unmarried in a society that encourages a mainstream definition of parenthood (i.e. within marriage). Single parenthood also sees one person take on an incredibly heavy responsibility meant for two.
In September last year, Member of Parliament Louis Ng raised the issue in parliament that despite the Government’s efforts to be more inclusive, it has not completely resolved the housing needs of single unwed parents, especially those under the age of 35.
Unwed mothers face a double disadvantage: They single-handedly bear not only the typical burden of motherhood, but also the stigma and tribulations of being unmarried in a society that encourages a mainstream definition of parenthood (i.e. within marriage). Single parenthood also sees one person take on an incredibly heavy responsibility meant for two.
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The Ministry of National Development has announced on Wednesday (4 Mar 2020) that single, unwed parents over the age of 21 can now also buy a 3-room flat in a non-mature estate from HDB, compared to a 2-room flat previously. The government realised it’s a national imperative to give every child a head start in life, whether with affordable quality childcare, education or otherwise. Stable housing should surely be part of that social compact.These moves are encouraging. Yet more can and should be done to improve housing access, arguably the most fundamental practical issue that unwed mothers and their children face.
This is a cumulation of effort by MPs, activists, social workers and single parents themselves who were instrumental in moving Singapore toward greater compassion for unwed mothers. Unreliable housing seriously undermines a mother’s ability to stay employed, to protect her children from abuse, and to have the time and space to plan for her family’s future.
This is a cumulation of effort by MPs, activists, social workers and single parents themselves who were instrumental in moving Singapore toward greater compassion for unwed mothers. Unreliable housing seriously undermines a mother’s ability to stay employed, to protect her children from abuse, and to have the time and space to plan for her family’s future.
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Now, HDB will accept applications from all unwed parents for up to a 3-room flat, in addition to resale flats – will certainly ameliorate the situation for those who can afford such flats. However, HDB policy still does not allow unwed, single parents and their children to count as a “family nucleus”, which would make them eligible for flats and housing grants under the Families Grant scheme.
The struggle for a life free from discrimination and social stigma is far from over for these mothers. There is still much work to create a roadmap towards housing equality for all mothers so that an unwed mother and her children would count as a family nucleus, enabling them to apply for public housing under the Families Scheme. We hope that in future, unwed parents, whether the children end up with the father or mother, would have access to housing as a matter of policy and not on a case-by-case basis. There would be a separate scheme for those under the age of 35 to apply for 2- or 3-room flats (similar to the existing Orphans or Joint Singles Scheme). - CNA Commentary Article Online
The struggle for a life free from discrimination and social stigma is far from over for these mothers. There is still much work to create a roadmap towards housing equality for all mothers so that an unwed mother and her children would count as a family nucleus, enabling them to apply for public housing under the Families Scheme. We hope that in future, unwed parents, whether the children end up with the father or mother, would have access to housing as a matter of policy and not on a case-by-case basis. There would be a separate scheme for those under the age of 35 to apply for 2- or 3-room flats (similar to the existing Orphans or Joint Singles Scheme). - CNA Commentary Article Online
