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Less than 10 years ago, people were joking about buying a property and living in Tengah whenever someone say they have no money to procure a roof over their head when they get married in future. In just a few short years, Tengah is now one of the most sought after heartland neighborhood to live in.
Yesterday, the first executive condominium (EC) project in Tengah Town - Copen Grand EC was officially launched to an amazing crowd of eligible buyers - mostly young couples hoping to stay in Singapore’s first smart and sustainable precinct.
Real estate professional Kiwi Lim believe the government's efforts to develop Tengah is proving to be very appealing especially to young Singaporean couples who are looking for a great place to raise their families. The government recently announced its plans to make Tengah, Singapore’s first “car-free” town centre - where roads will run beneath the town centre, freeing up space at the ground level for retail and recreational use and being separated from roads and traffic, the heart of the town centre will be safe and friendly for residents to walk and cycle. There will be a sports centre, retail spaces and eateries at the town centre, as well as an MRT station on the Jurong Region Line. Residents here will have access to a polyclinic, a supermarket, a food court, tuition centres and a childcare centre when the neighbourhood centre is completed in 2025.
Copen Grand’s proximity to three upcoming MRT stations and two neighboring hubs, Jurong Lake District and Jurong innovation District may also add to its attractiveness among home buyers.
Yesterday, the first executive condominium (EC) project in Tengah Town - Copen Grand EC was officially launched to an amazing crowd of eligible buyers - mostly young couples hoping to stay in Singapore’s first smart and sustainable precinct.
Real estate professional Kiwi Lim believe the government's efforts to develop Tengah is proving to be very appealing especially to young Singaporean couples who are looking for a great place to raise their families. The government recently announced its plans to make Tengah, Singapore’s first “car-free” town centre - where roads will run beneath the town centre, freeing up space at the ground level for retail and recreational use and being separated from roads and traffic, the heart of the town centre will be safe and friendly for residents to walk and cycle. There will be a sports centre, retail spaces and eateries at the town centre, as well as an MRT station on the Jurong Region Line. Residents here will have access to a polyclinic, a supermarket, a food court, tuition centres and a childcare centre when the neighbourhood centre is completed in 2025.
Copen Grand’s proximity to three upcoming MRT stations and two neighboring hubs, Jurong Lake District and Jurong innovation District may also add to its attractiveness among home buyers.
Artist impression of Parc Residences @ Tengah, an integrated town centre development with public housing and a neighbourhood centre. (Photo: HDB)
73% of all the units in Copen Grand was sold on its launch day on 22 Oct 2022 (Saturday)
Copen Grand, the first executive condominium (EC) at the upcoming Tengah Town, were sold on the first day of its launch yesterday on 22 Oct 2022 (Saturday) with more than 73% of all its units snapped up and sold.
Eligible buyers bought 465 units at the development or 73% of the whole project on its launch day on 22 Oct 2022 (Saturday), which had an average launch price of S$1,300 per square foot (psf), with an additional 3 per cent applied to units sold under the deferred payment scheme, according to a joint statement by City Developments Limited (CDL) and MCL Land.
EC buyers can also opt for the deferred payment scheme and may be eligible for a Central Provident Fund (CPF) housing grant of up to $30,000. Under the deferred payment scheme, buyers make instalment payments only after getting their Temporary Occupation Permit (TOP). Those who are upgrading from Housing Board flats to a new EC also need not pay the additional buyer’s stamp duty upfront.
All unit types were well received by home buyers, with the four-bedroom deluxe units fully sold.
Copen Grand units were priced from $1.08 million for a two-bedroom plus study unit, to $1.18 million for a three-bedroom deluxe unit, to $1.88 million for a five-bedroom premium unit. Unit sizes range from 807 sq ft for a two-bedder plus study unit, to 1,722 sq ft for a top-floor five-bedder unit.
E-applications for second-time buyers for Copen Grand:
The 639-unit EC saw the maximum 30 per cent of the project which can be allocated to second-time buyers during its launch fully taken up. Interested second-time buyers who were unable to purchase a unit at Copen Grand EC during the launch period can make their bookings for the remaining units one month later. E-applications for second-time buyers will take place from Nov 17 to 23, with sales booking to start on Nov 26.
Eligible buyers bought 465 units at the development or 73% of the whole project on its launch day on 22 Oct 2022 (Saturday), which had an average launch price of S$1,300 per square foot (psf), with an additional 3 per cent applied to units sold under the deferred payment scheme, according to a joint statement by City Developments Limited (CDL) and MCL Land.
EC buyers can also opt for the deferred payment scheme and may be eligible for a Central Provident Fund (CPF) housing grant of up to $30,000. Under the deferred payment scheme, buyers make instalment payments only after getting their Temporary Occupation Permit (TOP). Those who are upgrading from Housing Board flats to a new EC also need not pay the additional buyer’s stamp duty upfront.
All unit types were well received by home buyers, with the four-bedroom deluxe units fully sold.
Copen Grand units were priced from $1.08 million for a two-bedroom plus study unit, to $1.18 million for a three-bedroom deluxe unit, to $1.88 million for a five-bedroom premium unit. Unit sizes range from 807 sq ft for a two-bedder plus study unit, to 1,722 sq ft for a top-floor five-bedder unit.
E-applications for second-time buyers for Copen Grand:
The 639-unit EC saw the maximum 30 per cent of the project which can be allocated to second-time buyers during its launch fully taken up. Interested second-time buyers who were unable to purchase a unit at Copen Grand EC during the launch period can make their bookings for the remaining units one month later. E-applications for second-time buyers will take place from Nov 17 to 23, with sales booking to start on Nov 26.
Executive condominiums (ECs) is a hybrid of public and private housing, are built by private developers but sold at a lower price than private condos as ECs are subsidised by the government. An EC project is privatised 10 years after completion, which means it can be sold to foreigners.
Executive condominiums (ECs) have traditionally been accepted by homeowners as a golden ticket for asset appreciation with nearly 300 units cashing out at least half a million dollar profit each and almost all 4,266 ECs cashed out around S$300,000 in gross profits according to a study on 29 Aug 2022 by OrangeTee. Around 4,001 of the 4,266 sold units in the study were sold less than 10 years from the date of purchase, which is close to 94%.
Kiwi Lim said the huge pent-up demand for executive condo (EC) projects as well as the rising cost of land, manpower and construction materials have seen executive condo (EC) launch prices higher by around 30% over the past 3 years from July 2019 when Piermont Grand executive condominium (EC) in the matured estate of Punggol was launched which sold merely 45% or 375 units out of a total 820 apartments at an average price of $1,080 per sq ft (psf) over the preview launch day but sales remained strong after launch and it was fully sold within months.
Copen Grand’s average launch price of $1,300 psf very attractive when compared to recent mass market new private condo launch prices that are currently selling above $2,200 psf in the OCR suburb / heartland regions of Singapore. There is definitely a large price gap between new EC and new mass market launches of about $800 psf. The recent property cooling measures have little impact on the demand for ECs, as buyers on the deferred payment scheme can use the construction period to build up their savings.
Any other executive condo (EC) project avail for eligible homebuyers to choose from?
Currently, the only other executive condo (EC) project avail for eligible home buyers looking to buy executive condo (EC) units is North Gaia in the matured estate of Yishun which is also currently selling at an average pricing of around $1,2xx psf for its 3 bedroom (from $1.14 mil onwards), 4 bedroom (from $1.6 mil onwards) and 5 bedroom units (from $1.974 mil onwards).
Any more upcoming executive condo (EC) project to be launched this year?
"Home buyers who are not keen to stay in the west can lookout for the next major executive condo (EC) launch and also the last executive condo (EC) launch this year in 2022 - which is the 618-unit Tenet executive condo (EC) located in the matured estate of Tampines expected to be launched next month in November." said Kiwi Lim.
Executive condominiums (ECs) have traditionally been accepted by homeowners as a golden ticket for asset appreciation with nearly 300 units cashing out at least half a million dollar profit each and almost all 4,266 ECs cashed out around S$300,000 in gross profits according to a study on 29 Aug 2022 by OrangeTee. Around 4,001 of the 4,266 sold units in the study were sold less than 10 years from the date of purchase, which is close to 94%.
Kiwi Lim said the huge pent-up demand for executive condo (EC) projects as well as the rising cost of land, manpower and construction materials have seen executive condo (EC) launch prices higher by around 30% over the past 3 years from July 2019 when Piermont Grand executive condominium (EC) in the matured estate of Punggol was launched which sold merely 45% or 375 units out of a total 820 apartments at an average price of $1,080 per sq ft (psf) over the preview launch day but sales remained strong after launch and it was fully sold within months.
Copen Grand’s average launch price of $1,300 psf very attractive when compared to recent mass market new private condo launch prices that are currently selling above $2,200 psf in the OCR suburb / heartland regions of Singapore. There is definitely a large price gap between new EC and new mass market launches of about $800 psf. The recent property cooling measures have little impact on the demand for ECs, as buyers on the deferred payment scheme can use the construction period to build up their savings.
Any other executive condo (EC) project avail for eligible homebuyers to choose from?
Currently, the only other executive condo (EC) project avail for eligible home buyers looking to buy executive condo (EC) units is North Gaia in the matured estate of Yishun which is also currently selling at an average pricing of around $1,2xx psf for its 3 bedroom (from $1.14 mil onwards), 4 bedroom (from $1.6 mil onwards) and 5 bedroom units (from $1.974 mil onwards).
Any more upcoming executive condo (EC) project to be launched this year?
"Home buyers who are not keen to stay in the west can lookout for the next major executive condo (EC) launch and also the last executive condo (EC) launch this year in 2022 - which is the 618-unit Tenet executive condo (EC) located in the matured estate of Tampines expected to be launched next month in November." said Kiwi Lim.
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Flat owners must obtain HDB’s approval before their new tenants may move into the flat - photo: Getty Images
In June 2022, the Council for Estate Agencies (CEA) highlighted a case study where a HDB owner got a real estate agent in 2019 to help him rent out his entire 5-room HDB flat. This may seem like a normal rental scenario except that at that time, the HDB flat was still within the 5-year Minimum Occupation Period (MOP) as the owner had only taken possession of the Flat around August 2018.
A tenant saw the listing for the rental of the flat and was assured that his wife and children could stay and use the entire flat. At signing, the tenant was shown a Room Rental Tenancy Agreement (the “Tenancy Agreement”) stating that the landlord was to let out 2 bedrooms in the flat to the tenant. The tenant was concerned with signing an agreement for room rental as they wanted to rent the entire flat and not 2 bedrooms but was assured again that the tenant & family is indeed renting the entire flat.
The tenant and his family (occupiers) moved into the flat after their respective work and immigration passes were approved but the landlord did not live with the tenant and the occupiers in the flat.
A tenant saw the listing for the rental of the flat and was assured that his wife and children could stay and use the entire flat. At signing, the tenant was shown a Room Rental Tenancy Agreement (the “Tenancy Agreement”) stating that the landlord was to let out 2 bedrooms in the flat to the tenant. The tenant was concerned with signing an agreement for room rental as they wanted to rent the entire flat and not 2 bedrooms but was assured again that the tenant & family is indeed renting the entire flat.
The tenant and his family (occupiers) moved into the flat after their respective work and immigration passes were approved but the landlord did not live with the tenant and the occupiers in the flat.
Sometime in September 2019, HDB sent an advisory letter to the landlord reminding him that it was a breach of HDB’s terms and conditions if he did not live in the flat or let out the flat without HDB’s written approval. Towards the end of September 2019, HDB officers conducted an inspection of the flat and found the tenant and the occupiers living in it.
During investigations, HDB established that the landlord did not live in the flat with the tenant and that the tenant had rented the whole flat from the landlord. The landlord eventually informed the tenant to vacate the flat in October 2019 due to ongoing HDB investigations. The tenant and his family were put to great inconvenience and expense as they had to search for a new rental property within a very short period of time and incurred costs to engage movers to move all their belongings to their new rental property.
The agent was suspended with a fine and the (landlord) owner's 5-room flat was compulsorily acquired by HDB eventually.
During investigations, HDB established that the landlord did not live in the flat with the tenant and that the tenant had rented the whole flat from the landlord. The landlord eventually informed the tenant to vacate the flat in October 2019 due to ongoing HDB investigations. The tenant and his family were put to great inconvenience and expense as they had to search for a new rental property within a very short period of time and incurred costs to engage movers to move all their belongings to their new rental property.
The agent was suspended with a fine and the (landlord) owner's 5-room flat was compulsorily acquired by HDB eventually.
HDB advisory:
HDB owners are required to seek HDB’s approval before renting out their flats / bedrooms or when renewing the tenancy for the HDB flat. Any attempt to rent out the flat / bedrooms without approval or informing HDB of subsequent changes (termination, renewal of tenancy, or changes to tenants or tenants’ particulars), the rental will be considered unauthorised by HDB.
HDB may take action against the flat owner, such as imposing a penalty and / or compulsory acquisition of the flat. For inclusion of new proposed tenants, flat owners must obtain HDB’s approval before their new tenants may move into the flat.
For those that have not attained their 5-year Minimum Occupation Period (MOP) status for their flats, the landlord (owner) and its authorised occupiers must continue to live in the flat with the tenants during the period of rental. Locking up a room and renting out the rest of the flat without physically staying in it is not allowed. HDB will revoke the approval for renting out of bedrooms, if an owner flouts the rules. Under the Housing and Development Act, HDB can also take action against the owner for renting out of the whole flat without HDB's prior approval.
Real estate professional Kiwi Lim said the various regulations by HDB is one of the main reason why home buyers choose to buy a private residential condo for their home as well as asset progression plans. "When you purchase a Build-to-Order (BTO) unit directly from the Housing and Development Board (HDB) or a resale HDB flat from the open market, you're required to comply with the 5-year Minimum Occupancy Period (MOP) before you can rent the entire flat or sell the flat." said Kiwi.
Sources: CEA and HDB
HDB owners are required to seek HDB’s approval before renting out their flats / bedrooms or when renewing the tenancy for the HDB flat. Any attempt to rent out the flat / bedrooms without approval or informing HDB of subsequent changes (termination, renewal of tenancy, or changes to tenants or tenants’ particulars), the rental will be considered unauthorised by HDB.
HDB may take action against the flat owner, such as imposing a penalty and / or compulsory acquisition of the flat. For inclusion of new proposed tenants, flat owners must obtain HDB’s approval before their new tenants may move into the flat.
For those that have not attained their 5-year Minimum Occupation Period (MOP) status for their flats, the landlord (owner) and its authorised occupiers must continue to live in the flat with the tenants during the period of rental. Locking up a room and renting out the rest of the flat without physically staying in it is not allowed. HDB will revoke the approval for renting out of bedrooms, if an owner flouts the rules. Under the Housing and Development Act, HDB can also take action against the owner for renting out of the whole flat without HDB's prior approval.
Real estate professional Kiwi Lim said the various regulations by HDB is one of the main reason why home buyers choose to buy a private residential condo for their home as well as asset progression plans. "When you purchase a Build-to-Order (BTO) unit directly from the Housing and Development Board (HDB) or a resale HDB flat from the open market, you're required to comply with the 5-year Minimum Occupancy Period (MOP) before you can rent the entire flat or sell the flat." said Kiwi.
Sources: CEA and HDB
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URA wants sufficient supply of large units built to encourage more families to live in central areas - Getty Images
New guidelines were introduced to curb the supply of shoebox units in non-landed private residential projects in the central area to ensure there will be sufficiently large units built to encourage more families to move there.
Urban Redevelopment Authority just announced yesterday that from next year 18 Jan 2023, all flats and condominiums within the central area, as well as the residential component of commercial and mixed-use developments, will be required to provide a minimum of 20 per cent of dwelling units with a nett internal area of at least 70 square meter (sqm).
The URA wants to encourage developers to provide a more balanced mix of unit sizes to cater to the diverse needs of homebuyers, including large families as there has been “a persistent trend in declining dwelling unit sizes in the central area,” which is in conflict with its planning intent to position this area as an attractive place to live, work and play.
The central area covers 11 planning areas including Outram, Newton, River Valley, Singapore River, Marina South, Marina East, Rochor, Orchard and the Downtown Core. In its bid to encourage more live-in population in the central area, the URA need to ensure a good mix of dwelling unit sizes there to cater to different household sizes and segments.
The URA plans to influence the relevance and appeal of our city centre and central areas, presenting new opportunities to renew core central areas of activities and life. The way we live, work and play is changing and may no longer be confined to specific locations or time periods of the day. Singaporeans want more choices in shaping our own lifestyles and more families may be considering moving to the city central areas of Singapore.
Urban Redevelopment Authority just announced yesterday that from next year 18 Jan 2023, all flats and condominiums within the central area, as well as the residential component of commercial and mixed-use developments, will be required to provide a minimum of 20 per cent of dwelling units with a nett internal area of at least 70 square meter (sqm).
The URA wants to encourage developers to provide a more balanced mix of unit sizes to cater to the diverse needs of homebuyers, including large families as there has been “a persistent trend in declining dwelling unit sizes in the central area,” which is in conflict with its planning intent to position this area as an attractive place to live, work and play.
The central area covers 11 planning areas including Outram, Newton, River Valley, Singapore River, Marina South, Marina East, Rochor, Orchard and the Downtown Core. In its bid to encourage more live-in population in the central area, the URA need to ensure a good mix of dwelling unit sizes there to cater to different household sizes and segments.
The URA plans to influence the relevance and appeal of our city centre and central areas, presenting new opportunities to renew core central areas of activities and life. The way we live, work and play is changing and may no longer be confined to specific locations or time periods of the day. Singaporeans want more choices in shaping our own lifestyles and more families may be considering moving to the city central areas of Singapore.
Rejuvenating the Central Area
We take a look at how the Master Plan is charting the future of Singapore’s Central Area. The vision is to continue to sustain the Central Area as a dynamic 24/7 city centre with diverse jobs and business opportunities, where homes are located close to work places and there is an abundance of lifestyle and recreational options. This is achieved through the following strategies:
1. Build up lively and inclusive live-in communities
More homes will be introduced in city locations such as Orchard, the Central Business District (CBD), Pearl’s Hill, Marina Bay and Marina South, offering residents with greater variety of city living options, with easy access to transport and employment nodes, lifestyle and recreational choices.
2. Celebrate areas of arts, culture and heritage
Cultural precincts at Fort Canning Park, Bras Basah.Bugis and the Civic District will be better connected and more walkable with wider sidewalks along Armenian, Coleman, and Waterloo Streets. These will also create spill out spaces for arts and cultural activities. A large part of Armenian Street will also be pedestrianised and turned into a park.
Our historic districts of Little India, Kampong Glam and Chinatown will retain their rich heritage and keep communities and visitors engaged through continued place making efforts in collaboration with local communities and businesses.
3. Enhance connectivity and encourage active mobility
Access into the Central Area and within will be faster and easier with upcoming train lines and cycling networks. Plans to transform Robinson Road into a Transit Priority Corridor12 are being explored to strengthen it as a key public transport and pedestrian corridor, with lanes repurposed for further bus priority, cycling and enhanced pedestrian environment.
4. Improve access to and the experience of parks and open spaces
Green linkages will be added to connect various green and open spaces between the Singapore Botanic Gardens, Fort Canning Park, Pearl’s Hill and to Tanjong Pagar and Marina Bay, for a more seamless experience. Green spaces within some of the attractions (such as the Fort Canning Park and Istana Park), will also be expanded and enhanced.
5. Rejuvenate distinctive areas to offer diverse uses and experiences
With evolving lifestyle needs and consumer demands, active efforts are made to rejuvenate key areas such as Orchard Road and the CBD, introducing more diverse uses and offerings, creating more multi-experiential precincts and enhancing their appeal and relevance as a whole.
We take a look at how the Master Plan is charting the future of Singapore’s Central Area. The vision is to continue to sustain the Central Area as a dynamic 24/7 city centre with diverse jobs and business opportunities, where homes are located close to work places and there is an abundance of lifestyle and recreational options. This is achieved through the following strategies:
1. Build up lively and inclusive live-in communities
More homes will be introduced in city locations such as Orchard, the Central Business District (CBD), Pearl’s Hill, Marina Bay and Marina South, offering residents with greater variety of city living options, with easy access to transport and employment nodes, lifestyle and recreational choices.
2. Celebrate areas of arts, culture and heritage
Cultural precincts at Fort Canning Park, Bras Basah.Bugis and the Civic District will be better connected and more walkable with wider sidewalks along Armenian, Coleman, and Waterloo Streets. These will also create spill out spaces for arts and cultural activities. A large part of Armenian Street will also be pedestrianised and turned into a park.
Our historic districts of Little India, Kampong Glam and Chinatown will retain their rich heritage and keep communities and visitors engaged through continued place making efforts in collaboration with local communities and businesses.
3. Enhance connectivity and encourage active mobility
Access into the Central Area and within will be faster and easier with upcoming train lines and cycling networks. Plans to transform Robinson Road into a Transit Priority Corridor12 are being explored to strengthen it as a key public transport and pedestrian corridor, with lanes repurposed for further bus priority, cycling and enhanced pedestrian environment.
4. Improve access to and the experience of parks and open spaces
Green linkages will be added to connect various green and open spaces between the Singapore Botanic Gardens, Fort Canning Park, Pearl’s Hill and to Tanjong Pagar and Marina Bay, for a more seamless experience. Green spaces within some of the attractions (such as the Fort Canning Park and Istana Park), will also be expanded and enhanced.
5. Rejuvenate distinctive areas to offer diverse uses and experiences
With evolving lifestyle needs and consumer demands, active efforts are made to rejuvenate key areas such as Orchard Road and the CBD, introducing more diverse uses and offerings, creating more multi-experiential precincts and enhancing their appeal and relevance as a whole.
URA's decision to reduce number of shoebox units in heartlands in 2018
In 2018, the URA cut the maximum number of units allowed in new private flat and condo developments outside the central area with the Government's move to reverse the trend of developers building more and more shoebox units in the heartlands of Singapore.
Under the 2018 rules, the maximum number of housing units allowed in a development outside the central area will be arrived at by dividing the proposed building gross floor area (GFA) by 85 sq m. The current formula divides GFA by 70 sq m. This means around 18 per cent fewer units will be allowed if developers maximise their quota.
Under the 2018 guidelines, it will be divided by 85sqm and 100sqm for a total of nine areas - Marine Parade, Joo Chiat-Mountbatten, Telok Kurau-Jalan Eunos, Balestier, Stevens-Chancery, Pasir Panjang, Kovan-How Sun, Shelford and Loyang. Previously, only four areas — Telok Kurau, Kovan, Joo Chiat and Jalan Eunos — are subject to stricter guidelines.
These guidelines have been effective in achieving a good mix of both smaller and larger units in new private housing developments outside the Central Area.
In 2018, the URA cut the maximum number of units allowed in new private flat and condo developments outside the central area with the Government's move to reverse the trend of developers building more and more shoebox units in the heartlands of Singapore.
Under the 2018 rules, the maximum number of housing units allowed in a development outside the central area will be arrived at by dividing the proposed building gross floor area (GFA) by 85 sq m. The current formula divides GFA by 70 sq m. This means around 18 per cent fewer units will be allowed if developers maximise their quota.
Under the 2018 guidelines, it will be divided by 85sqm and 100sqm for a total of nine areas - Marine Parade, Joo Chiat-Mountbatten, Telok Kurau-Jalan Eunos, Balestier, Stevens-Chancery, Pasir Panjang, Kovan-How Sun, Shelford and Loyang. Previously, only four areas — Telok Kurau, Kovan, Joo Chiat and Jalan Eunos — are subject to stricter guidelines.
These guidelines have been effective in achieving a good mix of both smaller and larger units in new private housing developments outside the Central Area.
One Pearl Bank may see an increase in buyer interest as its located in Outram Park central area identified by URA
Real estate professional Kiwi Lim from Huttons Asia believe Singaporeans want more choices in shaping their lifestyles and an increasing number of young families may be considering moving to the central areas of Singapore to enjoy a balanced lifestyle to live, work and play in the city. However, the average median sizes for new condo units in the city has shrunk in the past decade with continuing robust demand pushing up per square foot (psf) prices. This may drive up buyer's demand for current condo projects in the affected central areas like The Landmark and One Pearl Bank located in Outram Park area or Irwell Hill Residences in the River Valley area.
"The new guidelines favor families, as its likely to result in larger unit sizes with higher quantum price due to the larger floor area of the condo / apartment units. Future homeowners can look forward to larger livable space to enhance the quality of their living environment with the ultimate convenience offered by central area locations" said Kiwi Lim.
"The new guidelines favor families, as its likely to result in larger unit sizes with higher quantum price due to the larger floor area of the condo / apartment units. Future homeowners can look forward to larger livable space to enhance the quality of their living environment with the ultimate convenience offered by central area locations" said Kiwi Lim.
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A 600m jogging track will connect three housing blocks via sky bridges at the 34th storey. PHOTO: HDB
HDB announced that around 3,000 Build-To-Order (BTO) flats will be built in the eastern half of Dover Forest in Ulu Pandan across three housing projects, with the first to be launched in November. The first project will comprise 1,330 three-room and four-room flats in housing blocks with staggered heights to maximise views of the nearby Ulu Pandan Canal and the Holland Grove landed estate.
The Ulu Pandan BTO project is designed sensitively to minimise impact on the environment and, where possible, to incorporate nature to improve residents' way of living.
As part of the new generation of HDB homes, the developments in Ulu Pandan estate will weave in green and blue elements such as nature and waterbodies into the housing landscape, including retaining a natural stream. Blocks will have sky terraces - communal garden spaces provided at the selected level of buildings - roof gardens and even a terraced rain garden.
The Ulu Pandan housing estate will have about 5ha of greenery, including a 1.2ha park that will retain most of its original flora and fauna and an existing natural stream. The blocks facing Ulu Pandan Canal will be low-rise, while those closer to Commonwealth Avenue West will be high-rise. The Ulu Pandan BTO estate located close to Dover MRT will have a commercial node nearby that can provide amenities such as shops, supermarkets, and eateries for residents. A fitness trail will connect the terraced rain garden, roof gardens and fitness stations. Apart from that, there will be a 600m jogging track connecting three housing blocks via sky bridges on the 34th storey.
Ulu Pandan Estate - Car-lite Zone
Located in the mature estate of Queenstown, Ulu Pandan is one of four public housing estates to be zoned as car-lite areas, which are planned with public transport, walking and cycling connections. The number of carparks will also be reduced to free up space for public facilities and greenery. Parking spaces will be prioritised for residents.
To ensure pedestrians' safety, vehicular roads will be located at the perimeter of the precincts, segregated from the main pedestrian walkway with a comprehensive network of walking and cycling paths, providing residents with seamless connectivity to the neighbourhood centre and key amenities in Ghim Moh via the Park Connector Network. Residents will also enjoy sheltered elevated linkways connecting them directly to Dover MRT station and barrier-free accessibility to bus stops along Commonwealth Avenue.
The Ulu Pandan BTO project is designed sensitively to minimise impact on the environment and, where possible, to incorporate nature to improve residents' way of living.
As part of the new generation of HDB homes, the developments in Ulu Pandan estate will weave in green and blue elements such as nature and waterbodies into the housing landscape, including retaining a natural stream. Blocks will have sky terraces - communal garden spaces provided at the selected level of buildings - roof gardens and even a terraced rain garden.
The Ulu Pandan housing estate will have about 5ha of greenery, including a 1.2ha park that will retain most of its original flora and fauna and an existing natural stream. The blocks facing Ulu Pandan Canal will be low-rise, while those closer to Commonwealth Avenue West will be high-rise. The Ulu Pandan BTO estate located close to Dover MRT will have a commercial node nearby that can provide amenities such as shops, supermarkets, and eateries for residents. A fitness trail will connect the terraced rain garden, roof gardens and fitness stations. Apart from that, there will be a 600m jogging track connecting three housing blocks via sky bridges on the 34th storey.
Ulu Pandan Estate - Car-lite Zone
Located in the mature estate of Queenstown, Ulu Pandan is one of four public housing estates to be zoned as car-lite areas, which are planned with public transport, walking and cycling connections. The number of carparks will also be reduced to free up space for public facilities and greenery. Parking spaces will be prioritised for residents.
To ensure pedestrians' safety, vehicular roads will be located at the perimeter of the precincts, segregated from the main pedestrian walkway with a comprehensive network of walking and cycling paths, providing residents with seamless connectivity to the neighbourhood centre and key amenities in Ghim Moh via the Park Connector Network. Residents will also enjoy sheltered elevated linkways connecting them directly to Dover MRT station and barrier-free accessibility to bus stops along Commonwealth Avenue.
Two BTO projects in Bukit Merah and Ghim Moh were classified as PLH BTO projects in May
Dover Forest BTO Classified Under PLH Model?
Recently in May, HDB launched two BTO projects under the Prime Location Public Housing (PLH) model: Bukit Merah Ridge in Bukit Merah estate and Ghim Moh Ascent in Ghim Moh estate.
Bukit Merah Ridge PLH BTO project is bounded by Bukit Merah View, Henderson Road, Tiong Bahru Road, and Lower Delta Road. The development comprises five residential blocks ranging from 29 to 48 storeys in height, and is offered under the PLH model. Bukit Merah Ridge takes its name from the nearby Southern Ridges, which can be seen from the development. Inspired by the greenery at Telok Blangah Hill Park, Mount Faber Park, and the nearby Tiong Bahru Park, Bukit Merah Ridge features lush landscaping and roof gardens. Flat buyers can choose from 1,669 units of 3- and 4- room flats.
Ghim Moh Ascent PLH BTO is bounded by Ghim Moh Road, Ghim Moh Close, and the Rail Corridor, Ghim Moh Ascent is located near Buona Vista MRT station. This development comprises four residential blocks - two blocks are 40 storeys high and the other two blocks have varying heights ranging from 8 to 31 storeys. The name ‘Ghim Moh Ascent’ references the development’s location and the staggered height of the blocks. Flat buyers can choose from 867 units of 3- and 4- room flats.
Overall, Bukit Merah Ridge had an application rate of 1.5, whilst Ghim Moh Ascent had 1.3; both were lower than the rates of PLH BTO launches at River Peaks I/II and King’s George Heights which had 3.1 and 5.8, respectively.
Looking at the total number of applications, Bukit Merah Ridge received 657 for its 443 3-room flats and 6,008 for its 1226 4-room flats, whilst Ghim Moh Ascent had 263 for its 196 3-room flats, and 2,629 for its 671 4-room flats.
Recently in May, HDB launched two BTO projects under the Prime Location Public Housing (PLH) model: Bukit Merah Ridge in Bukit Merah estate and Ghim Moh Ascent in Ghim Moh estate.
Bukit Merah Ridge PLH BTO project is bounded by Bukit Merah View, Henderson Road, Tiong Bahru Road, and Lower Delta Road. The development comprises five residential blocks ranging from 29 to 48 storeys in height, and is offered under the PLH model. Bukit Merah Ridge takes its name from the nearby Southern Ridges, which can be seen from the development. Inspired by the greenery at Telok Blangah Hill Park, Mount Faber Park, and the nearby Tiong Bahru Park, Bukit Merah Ridge features lush landscaping and roof gardens. Flat buyers can choose from 1,669 units of 3- and 4- room flats.
Ghim Moh Ascent PLH BTO is bounded by Ghim Moh Road, Ghim Moh Close, and the Rail Corridor, Ghim Moh Ascent is located near Buona Vista MRT station. This development comprises four residential blocks - two blocks are 40 storeys high and the other two blocks have varying heights ranging from 8 to 31 storeys. The name ‘Ghim Moh Ascent’ references the development’s location and the staggered height of the blocks. Flat buyers can choose from 867 units of 3- and 4- room flats.
Overall, Bukit Merah Ridge had an application rate of 1.5, whilst Ghim Moh Ascent had 1.3; both were lower than the rates of PLH BTO launches at River Peaks I/II and King’s George Heights which had 3.1 and 5.8, respectively.
Looking at the total number of applications, Bukit Merah Ridge received 657 for its 443 3-room flats and 6,008 for its 1226 4-room flats, whilst Ghim Moh Ascent had 263 for its 196 3-room flats, and 2,629 for its 671 4-room flats.
Residents of Ulu Pandan will have sheltered elevated linkways connecting them directly to Dover MRT station and barrier-free accessibility to bus stops along Commonwealth Avenue
Dover Forest with four freshwater streams, has been relatively untouched since 1980s
About Dover Forest
A sprawling 33 hectare (330,000 sqm) of land size approximately about 46 football fields bounded by Commonwealth Avenue West, Ghim Moh Link, Ulu Pandan Canal and Clementi Road - is also where the beautiful natural green Dover Forest is located.
The Dover forest was part of rubber plantation from the 1920s to the 1940s abandoned after the 2nd World War. The half a century old secondary regrowth forest with four freshwater streams, has been relatively untouched since 1980s. embedded in Ulu Pandan estate consisting of both the western and eastern halves separated by a mowed grass lawn. Dover Forest is reported to be home to globally and locally rare and endangered species such as the straw-headed bulbul, changeable hawk-eagle, oriental pied hornbill, Pila scutata, Ficus virens, and many more.
HDB will work closely with national water agency PUB and the National Parks Board to establish a green linear corridor, measuring up to 40m wide at some stretches, along Ulu Pandan. It will serve as an ecological corridor for wildlife moving along Sungei Ulu Pandan, such as the grey heron and Asian softshell turtle - two species considered vulnerable and endangered respectively.
A sprawling 33 hectare (330,000 sqm) of land size approximately about 46 football fields bounded by Commonwealth Avenue West, Ghim Moh Link, Ulu Pandan Canal and Clementi Road - is also where the beautiful natural green Dover Forest is located.
The Dover forest was part of rubber plantation from the 1920s to the 1940s abandoned after the 2nd World War. The half a century old secondary regrowth forest with four freshwater streams, has been relatively untouched since 1980s. embedded in Ulu Pandan estate consisting of both the western and eastern halves separated by a mowed grass lawn. Dover Forest is reported to be home to globally and locally rare and endangered species such as the straw-headed bulbul, changeable hawk-eagle, oriental pied hornbill, Pila scutata, Ficus virens, and many more.
HDB will work closely with national water agency PUB and the National Parks Board to establish a green linear corridor, measuring up to 40m wide at some stretches, along Ulu Pandan. It will serve as an ecological corridor for wildlife moving along Sungei Ulu Pandan, such as the grey heron and Asian softshell turtle - two species considered vulnerable and endangered respectively.
3,000 Build-To-Order (BTO) flats will be built in the eastern half of Dover Forest in Ulu Pandan
HDB had originally intended to launch the entire Dover Forest land area for public housing as the whole forest had been zoned for residential use in the Urban Redevelopment Authority's Master Plan since 2003.
In 2020, the government announced plans to clear Dover Forest to develop the entire land space to satisfy Singapore's immense demand for residential homes raised concerns from environmental and nature groups sparking a hot debate over the challenging topic of balancing national development with nature conservation, especially for a small island nation with limited land space providing accommodation and infrastructure to more than 6.5 million people living on it.
After much consideration and intense discussion, the Singapore government finally decided to clear the eastern half of Dover Forest measuring around 11 hectares in size from mid of 2022 to build more public housing for Singaporeans. The western half of the site will be retained in the medium term and plans will be relooked in about a decade.
Real estate professional Kiwi Lim believe the Dover Forest BTO project may probably the most anticipated project in November's BTO launch exercise with approximately 5 mins walk to Dover MRT station and within close proximity to many schools plus the highly-coveted unblocked view, with the landed housing estate at Holland just across the Ulu Pandan Canal. More details about the project, such as flat prices and the estimated completion date, will be available only when the project is launched.
To keep public housing resale prices in check, the government's plan is to launch more BTOs to meet the strong demand for public housing in Singapore. Being a tiny island nation with more than 6.5 million people living on a small land space, the government faces an immense challenge to balance national development with nature and environmental preservation. I hope that Singapore will not one day become a concrete jungle where everything is artificial and manmade without traces of life and soul.
In 2020, the government announced plans to clear Dover Forest to develop the entire land space to satisfy Singapore's immense demand for residential homes raised concerns from environmental and nature groups sparking a hot debate over the challenging topic of balancing national development with nature conservation, especially for a small island nation with limited land space providing accommodation and infrastructure to more than 6.5 million people living on it.
After much consideration and intense discussion, the Singapore government finally decided to clear the eastern half of Dover Forest measuring around 11 hectares in size from mid of 2022 to build more public housing for Singaporeans. The western half of the site will be retained in the medium term and plans will be relooked in about a decade.
Real estate professional Kiwi Lim believe the Dover Forest BTO project may probably the most anticipated project in November's BTO launch exercise with approximately 5 mins walk to Dover MRT station and within close proximity to many schools plus the highly-coveted unblocked view, with the landed housing estate at Holland just across the Ulu Pandan Canal. More details about the project, such as flat prices and the estimated completion date, will be available only when the project is launched.
To keep public housing resale prices in check, the government's plan is to launch more BTOs to meet the strong demand for public housing in Singapore. Being a tiny island nation with more than 6.5 million people living on a small land space, the government faces an immense challenge to balance national development with nature and environmental preservation. I hope that Singapore will not one day become a concrete jungle where everything is artificial and manmade without traces of life and soul.
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The stations of Stage 3 of the Thomson-East Coast Line (TEL) are Stevens, Napier, Orchard Boulevard, Orchard, Great World, Havelock, Outram Park, Maxwell, Shenton Way, Marina Bay and Gardens by the Bay
The Thomson–East Coast Line (TEL) is a fully underground MRT line that will serve 32 stations over 43 kilometres in length that is indicated by the brown coloured MRT line on the MRT network.
Slated to be one of the world's longest driverless rapid transit lines, the Thomson–East Coast Line (TEL) runs along a combined north–south and east–west corridor, starting in the north at Woodlands town, passing through Upper Thomson and the towns of Ang Mo Kio and Bishan, before heading south to Orchard Road and Marina Bay, then running eastwards along the east coast through Kallang, Marine Parade and Bedok South, before ending at Upper East Coast.
The Thomson-East Coast Line (TEL) is currently being opened in 5 stages, with Stage 1 (from Woodlands North to Woodlands South) that opened on 31 January 2020. Stage 2 (from Springleaf to Caldecott) which opened on 28 August 2021 and now Stage 3, which will extend operations from Caldecott to Gardens by the Bay was just announced by the Land Transport Authority (LTA) on 7 Oct 2022 (Friday) that it will open on 13 November 2022.
Stage 3 of the Thomson-East Coast Line (TEL) spans 13.2km, the stations are Stevens, Napier, Orchard Boulevard, Orchard, Great World, Havelock, Outram Park, Maxwell, Shenton Way, Marina Bay and Gardens by the Bay.
Slated to be one of the world's longest driverless rapid transit lines, the Thomson–East Coast Line (TEL) runs along a combined north–south and east–west corridor, starting in the north at Woodlands town, passing through Upper Thomson and the towns of Ang Mo Kio and Bishan, before heading south to Orchard Road and Marina Bay, then running eastwards along the east coast through Kallang, Marine Parade and Bedok South, before ending at Upper East Coast.
The Thomson-East Coast Line (TEL) is currently being opened in 5 stages, with Stage 1 (from Woodlands North to Woodlands South) that opened on 31 January 2020. Stage 2 (from Springleaf to Caldecott) which opened on 28 August 2021 and now Stage 3, which will extend operations from Caldecott to Gardens by the Bay was just announced by the Land Transport Authority (LTA) on 7 Oct 2022 (Friday) that it will open on 13 November 2022.
Stage 3 of the Thomson-East Coast Line (TEL) spans 13.2km, the stations are Stevens, Napier, Orchard Boulevard, Orchard, Great World, Havelock, Outram Park, Maxwell, Shenton Way, Marina Bay and Gardens by the Bay.
Stevens station will connect to Downtown Line while Orchard station will provide a connection to North-South Line. Outram Park and Marina Bay stations are both three-line interchanges, with Outram Park connecting to the East-West Line and North-East Line, and Marina Bay connecting to the North-South Line and Circle Line.
The 11 new stations come under Stage 3 of the TEL. Another two stations under Stage 3 – Mount Pleasant and Marina South – will open only when housing developments around them are ready.
Stage 2, comprising six stations from Springleaf to Caldecott, started passenger service in August 2021, adding to the three stations in Woodlands that opened in 2020 in Stage 1.
The 11 new stations come under Stage 3 of the TEL. Another two stations under Stage 3 – Mount Pleasant and Marina South – will open only when housing developments around them are ready.
Stage 2, comprising six stations from Springleaf to Caldecott, started passenger service in August 2021, adding to the three stations in Woodlands that opened in 2020 in Stage 1.
The Singapore rail network
Today, more than 130 stations across six MRT lines span the island. This 200km system has over three million daily ridership. In addition, there are more than 40 stations across two LRT lines and this 28km system has over 200 thousand daily ridership. More networks are being built to further expand rail coverage.
Complementing the rail system are the two Light Rapid Transit (LRT) systems in Bukit Panjang, and Sengkang and Punggol, which acts as a feeder service that brings commuters closer to their homes.
The train system is currently run by two public transport operators – SMRT Corporation Ltd (SMRT) and SBS Transit (SBS).
Since 2018, some 200km of sheltered walkways have been added island-wide as part of the Walk2Ride programme. Pedestrians can now enjoy a sheltered walk within 400m from all MRT stations and within 200m from bus interchanges, LRT stations and selected bus stops with high commuter volumes.
Complementing the rail system are the two Light Rapid Transit (LRT) systems in Bukit Panjang, and Sengkang and Punggol, which acts as a feeder service that brings commuters closer to their homes.
The train system is currently run by two public transport operators – SMRT Corporation Ltd (SMRT) and SBS Transit (SBS).
- SMRT operates the North-South Line, East-West Line, Circle Line, Thomson-East Coast Line and the Bukit Panjang LRT.
- SBS operates the North East Line and the Downtown Line, and the Sengkang-Punggol LRT.
Since 2018, some 200km of sheltered walkways have been added island-wide as part of the Walk2Ride programme. Pedestrians can now enjoy a sheltered walk within 400m from all MRT stations and within 200m from bus interchanges, LRT stations and selected bus stops with high commuter volumes.
A map of the Thomson-East Coast Line. (Image: Land Transport Authority)
FREE TRAVEL ON 11 NOV 2022
An opening event will be held on 11 Nov 2022 and commuters can travel for free along the 11 new stations from 10am to 9pm on that opening day.
LTA said other activities will also be held to mark the opening of the newest stage of the TEL, and these will be announced on its social media pages.
An opening event will be held on 11 Nov 2022 and commuters can travel for free along the 11 new stations from 10am to 9pm on that opening day.
LTA said other activities will also be held to mark the opening of the newest stage of the TEL, and these will be announced on its social media pages.
"Properties along these 11 stations at Stevens, Napier, Orchard Boulevard, Orchard, Great World, Havelock, Outram Park, Maxwell, Shenton Way, Marina Bay and Gardens by the Bay are expected to see an upside in their prices as the fully underground Thomson–East Coast Line (TEL) is an important MRT line that connects to all other MRT lines (except LRT lines) running across the whole of Singapore" said real estate consultant Kiwi Lim from Huttons Asia.
"Developers of new condo projects like Irwell Hill Residences, One Pearl Bank, The Landmark, Riviere, Avenir, etc will likely see an increase in buyer interests this few weeks. Capitaland already hinted that its iconic new condo One Pearl Bank located strategically within 3 minutes walk to Outram Park MRT interchange with three MRT lines (NE Line, East West Line and TEL Line) in the city fringe on a beautiful green city hill-top on Pearl Hill may see prices increase from 31 Oct 2022 onwards."
"Developers of new condo projects like Irwell Hill Residences, One Pearl Bank, The Landmark, Riviere, Avenir, etc will likely see an increase in buyer interests this few weeks. Capitaland already hinted that its iconic new condo One Pearl Bank located strategically within 3 minutes walk to Outram Park MRT interchange with three MRT lines (NE Line, East West Line and TEL Line) in the city fringe on a beautiful green city hill-top on Pearl Hill may see prices increase from 31 Oct 2022 onwards."
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President Xi's relentless efforts to rid China of the coronavirus are taking a huge impact on China's economy - photo: Getty Images
Many are hoping for China to ease its strict Covid restrictions and reopen the country to boost China's economy’s recovery to balance the expected recession that may happen in Europe and America.
The Chinese government has until now insisted that "zero-Covid" policy is bringing more benefits than costs to the masses and President Xi has continuously expressed unwavering support for the strategy.
However China is seeing an increasing pressure to relax its "zero-Covid" policy and the call for it to reopen its economy is getting louder within China's citizens and businesses as the strict "zero-Covid" policy has led to significantly weaker income growth and a sharp rise in youth unemployment. These results are definitely the against the spirit of what President Xi Jinping is trying to achieve with his “common prosperity" policy goal for China's huge population of 1.4 billion people.
Forecast for GDP growth in China this year is widely projected to average a mere 4%. The "zero-Covid" policy greatly undermines China's economy from private consumption to foreign investment with China suffering significant economic & financial pressure and seeing a growing number of talented individuals leaving the country.
The Chinese government has until now insisted that "zero-Covid" policy is bringing more benefits than costs to the masses and President Xi has continuously expressed unwavering support for the strategy.
However China is seeing an increasing pressure to relax its "zero-Covid" policy and the call for it to reopen its economy is getting louder within China's citizens and businesses as the strict "zero-Covid" policy has led to significantly weaker income growth and a sharp rise in youth unemployment. These results are definitely the against the spirit of what President Xi Jinping is trying to achieve with his “common prosperity" policy goal for China's huge population of 1.4 billion people.
Forecast for GDP growth in China this year is widely projected to average a mere 4%. The "zero-Covid" policy greatly undermines China's economy from private consumption to foreign investment with China suffering significant economic & financial pressure and seeing a growing number of talented individuals leaving the country.
Pandemic fatigue is also growing among the Chinese people with small riots and fights breaking out all over parts of China.
There is a possibility that even though the "zero-Covid" policy will be maintained in 2023 and potentially beyond, its definition and related policy tools will be relaxed around the 2nd quarter of next year in 2023 with the aim of providing an economic boost to China's economic recovery.
Restrictions on international travel—such as visa applications, quarantine periods and flight availability may be relaxed early next year although they will still be restrictive but it may shine a ray of hope on international tourism as China tourists often boost tourism revenues in many parts of the world.
There is a possibility that even though the "zero-Covid" policy will be maintained in 2023 and potentially beyond, its definition and related policy tools will be relaxed around the 2nd quarter of next year in 2023 with the aim of providing an economic boost to China's economic recovery.
Restrictions on international travel—such as visa applications, quarantine periods and flight availability may be relaxed early next year although they will still be restrictive but it may shine a ray of hope on international tourism as China tourists often boost tourism revenues in many parts of the world.
Real estate professional Kiwi Lim believe that if China really decide to relax its Covid restrictions to slowly reopen the country from the 2nd quarter of next year in 2023, it will be a much needed boost to Singapore's tourism and businesses as the opening of China's market will cushion Singapore from the effects of a possible recession in Europe and maybe even America around the end of 2023 if the Russian war in Ukraine is not over by then.
"If President Xi decide to relax China's "zero-Covid" policy, we may see more Chinese buyers and investors buying luxury homes in Singapore in the Core Central Regions (CCR) and some city fringe RCR regions as well from the end of next year 2023 onwards possibly putting upward pressure on the luxury homes in Singapore." said Kiwi Lim
All these are of Kiwi Lim's own opinion and anything may change anytime in world politics.
"If President Xi decide to relax China's "zero-Covid" policy, we may see more Chinese buyers and investors buying luxury homes in Singapore in the Core Central Regions (CCR) and some city fringe RCR regions as well from the end of next year 2023 onwards possibly putting upward pressure on the luxury homes in Singapore." said Kiwi Lim
All these are of Kiwi Lim's own opinion and anything may change anytime in world politics.
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As interest rates soar, will Singapore's SMEs be affected? - Straits Times Photo
It was reported early last month in mainstream media that long queues were formed outside banks as massive crowds queued for more than 4 hours to deposit their savings for up to 2.8% p.a. on their Singapore dollar fixed deposits.
I subsequently wrote a blog post with the suggestion for potential depositors to wait a few weeks before putting their money into Singapore dollar fixed deposit accounts as I expect banks to raise their Singapore dollar fixed deposit interest rates to at least 3% this month in October. The Federal Reserve then raised interest rates by 75 basis points two weeks ago and we are now seeing banks offering up to 3.4% p.a. for their Singapore dollar fixed deposit rates which is a far cry from last month’s headline rate of 2.8% p.a.
Singapore's bank rates are benchmarked to the United States' Federal Reserve bank rates.
I have compiled the three banks currently with the highest Singapore dollar fixed deposit rates from my extensive research for your reference below:
I subsequently wrote a blog post with the suggestion for potential depositors to wait a few weeks before putting their money into Singapore dollar fixed deposit accounts as I expect banks to raise their Singapore dollar fixed deposit interest rates to at least 3% this month in October. The Federal Reserve then raised interest rates by 75 basis points two weeks ago and we are now seeing banks offering up to 3.4% p.a. for their Singapore dollar fixed deposit rates which is a far cry from last month’s headline rate of 2.8% p.a.
Singapore's bank rates are benchmarked to the United States' Federal Reserve bank rates.
I have compiled the three banks currently with the highest Singapore dollar fixed deposit rates from my extensive research for your reference below:
Maybank Fixed Deposit Rate - up to 3.05%
Malaysian bank - Maybank is offering promotional rate for its Singapore dollar fixed deposits on a 6-month tenure @ 2.80% p.a., 9-month tenure @ 2.90% p.a., 12-month tenure @ 3.00% p.a. and 15-month tenure @ 3.05%.
Minimum deposit of $20,000 required
Malaysian bank - Maybank is offering promotional rate for its Singapore dollar fixed deposits on a 6-month tenure @ 2.80% p.a., 9-month tenure @ 2.90% p.a., 12-month tenure @ 3.00% p.a. and 15-month tenure @ 3.05%.
Minimum deposit of $20,000 required
UOB Fixed Deposit Rate - up to 3%
Local banking giant UOB has decided up the ante on the 3 main local banks in Singapore by offering the highest rate for its Singapore dollar fixed deposits at 3% - raising its promotional rates with 10-, 12- and 15-month tenors now at 2.8%, 2.9% and 3.0% p.a. respectively - compared to its highest rate of 2.8% p.a. offered last month.
Minimum deposit of $20,000 required
Local banking giant UOB has decided up the ante on the 3 main local banks in Singapore by offering the highest rate for its Singapore dollar fixed deposits at 3% - raising its promotional rates with 10-, 12- and 15-month tenors now at 2.8%, 2.9% and 3.0% p.a. respectively - compared to its highest rate of 2.8% p.a. offered last month.
Minimum deposit of $20,000 required
RHB Fixed Deposit Rate - up to 3.4%
The highest rate for Fixed Deposit accounts now at this moment goes to RHB - a Malaysian bank that is offering 3.2% p.a. for their Singapore dollar fixed deposit customers who are willing to stash a minimum of $20,000 for a period of 2 years.
If you are a RHB Premier client, you may even enjoy up to 3.4% p.a. Fixed Deposit interest rate. Minimum deposit of $200,000 for RHB Premier client.
The highest rate for Fixed Deposit accounts now at this moment goes to RHB - a Malaysian bank that is offering 3.2% p.a. for their Singapore dollar fixed deposit customers who are willing to stash a minimum of $20,000 for a period of 2 years.
If you are a RHB Premier client, you may even enjoy up to 3.4% p.a. Fixed Deposit interest rate. Minimum deposit of $200,000 for RHB Premier client.
Even though Singapore banks are stepping up their Fixed Deposit interest rates, real estate professional Kiwi Lim does not expect local banks to raise the Fixed Deposit rates to more than 3.8% by the end of the year as a high interest rate will also increase the financial burden of our local businesses, especially small and medium enterprises.
"The Federal Reserve may continue to raise their interest rates basis points in the next few months but it may be lesser basis points as the looming possibility of a mild recession in Europe and America may reduce inflation and with world trade expected to be subdued in 2023 with multiple shocks weighing on the global economy." said Kiwi Lim
"Meanwhile, rental yields for residential properties are also rising in Singapore and currently provides property owners between 3% to 4% yield per annum if not more as we expect rental demand to stay strong into the 3rd qtr of 2023."
Disclaimer: Banks may decide to amend their above bank rates without notice
"The Federal Reserve may continue to raise their interest rates basis points in the next few months but it may be lesser basis points as the looming possibility of a mild recession in Europe and America may reduce inflation and with world trade expected to be subdued in 2023 with multiple shocks weighing on the global economy." said Kiwi Lim
"Meanwhile, rental yields for residential properties are also rising in Singapore and currently provides property owners between 3% to 4% yield per annum if not more as we expect rental demand to stay strong into the 3rd qtr of 2023."
Disclaimer: Banks may decide to amend their above bank rates without notice
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Buyers thronged new condo sales preview at an Evergrande new condo project a few years ago in China - CNA
After seeing decades of strong property sales growth and investor optimism in the real estate market in mainland China, the Chinese government acted to cool the red-hot property market in mainland China in August 2020 by introducing the Three Red Lines (三条红线) which are strict financial regulatory guidelines relating to the ratio of debt to cash, equity and assets. It was set up by the Chinese government as a framework to deleverage the real estate industry, whereby the more leveraged a developer was, the more they had to reduce their outstanding debt. Deleveraging was also imposed on banks to reduce the loans they could provide for property purchases to homeowners.
The Three Red Lines triggered a liquidity crises as the new regulatory requirements stipulated that real estate companies / developers must have:
In just a few months, to the horror of the Chinese government and the tens of millions of home owners who have yet to collect their keys due to the incomplete state of their properties, China's property sector slumped as large developers defaulted - starting from Evergrande - the most indebted of China's private homebuilders with overwhelming liabilities exceeding USD$300 billion.
One after another, huge developers started to default and collapse causing building construction to halt, property sales slowing to a trickle due to lack of confidence among home buyers and leading to a dramatic drop in housing prices across China.
The Three Red Lines triggered a liquidity crises as the new regulatory requirements stipulated that real estate companies / developers must have:
- A liability to asset ratio of less than 70%.
- A net gearing ratio (debt-equity divided by shareholders’ equity) of less than 100%.
- A cash to short-term borrowing ratio of at least 1.
In just a few months, to the horror of the Chinese government and the tens of millions of home owners who have yet to collect their keys due to the incomplete state of their properties, China's property sector slumped as large developers defaulted - starting from Evergrande - the most indebted of China's private homebuilders with overwhelming liabilities exceeding USD$300 billion.
One after another, huge developers started to default and collapse causing building construction to halt, property sales slowing to a trickle due to lack of confidence among home buyers and leading to a dramatic drop in housing prices across China.
What are Buildings Under Construction (BUC)
When home buyers / investors buy a newly launched condo that has yet to be completed or built, we refer to these condos as Buildings Under Construction (BUC) referring to a buildings, structures, or projects that is unfinished but actively being worked on. Usually unless a building receives its Temporary Occupancy Permit (TOP), it will fall under this category.
So why is Singapore different from China?
Real estate consultant Kiwi Lim believe there are two main differences in our BUC's structure that prevent Singapore's BUC market from turning into a crisis of incomplete BUC homes like what China is facing now.
Progressive Payment Scheme (PPS)
In China, homebuyers pay the full payment upfront for a BUC home. After paying the initial deposit for the BUC property, buyers often take bank loans where the bank will pay to the developer the full balance immediately for the property. These presale funds essentially offer interest-free loans for property developers, which they have the liberty to use at their disposal. This is the reason why home owners in China are now laden with the debt for the full sum of the property even though the property is uncompleted with some seeing only the foundations completed.
In Singapore, the government protects home owners buying BUC properties by limiting the amount of money home buyers need to pay for BUC projects through the Progressive Payment Scheme (PPS). This scheme is very helpful for home owners buying BUC properties as it allows them to manage their loan payments progressively rather than pay for the whole property at one go. So in Singapore, home owners buying BUC projects only pay when certain construction milestones are reached.
When home buyers / investors buy a newly launched condo that has yet to be completed or built, we refer to these condos as Buildings Under Construction (BUC) referring to a buildings, structures, or projects that is unfinished but actively being worked on. Usually unless a building receives its Temporary Occupancy Permit (TOP), it will fall under this category.
So why is Singapore different from China?
Real estate consultant Kiwi Lim believe there are two main differences in our BUC's structure that prevent Singapore's BUC market from turning into a crisis of incomplete BUC homes like what China is facing now.
Progressive Payment Scheme (PPS)
In China, homebuyers pay the full payment upfront for a BUC home. After paying the initial deposit for the BUC property, buyers often take bank loans where the bank will pay to the developer the full balance immediately for the property. These presale funds essentially offer interest-free loans for property developers, which they have the liberty to use at their disposal. This is the reason why home owners in China are now laden with the debt for the full sum of the property even though the property is uncompleted with some seeing only the foundations completed.
In Singapore, the government protects home owners buying BUC properties by limiting the amount of money home buyers need to pay for BUC projects through the Progressive Payment Scheme (PPS). This scheme is very helpful for home owners buying BUC properties as it allows them to manage their loan payments progressively rather than pay for the whole property at one go. So in Singapore, home owners buying BUC projects only pay when certain construction milestones are reached.
Housing Developers (Project Account) Rules
In China, the funds from the sale of the BUC projects from home buyers and the banks are essentially considered as interest-free loans for property developers, which the property developers have the liberty to use at their disposal for any other projects, or further diversification of businesses, etc.
In Singapore, the government acts to protect local home buyers from seeing their BUC condos from becoming unfinished and stalled housing projects through the HOUSING DEVELOPERS (CONTROL AND LICENSING) ACT. In this act, under Chapter 130 section 22 - we have the Housing Developer's (Project Account) Rules that requires Singapore developers to deposit purchase money from home buyers & banks into specific Project Accounts for each BUC project.
Under the ACT, a licensed housing developer shall deposit forthwith upon receipt all instalments of purchase money (including the booking fee) payable by a purchaser towards the purchase of a unit in a building project prior to the grant of the temporary occupation permit by the competent authority for the unit, including any instalment of purchase money payable by the purchaser towards the purchase of the unit upon the grant of the temporary occupation permit, into the Project Account of the building project. The licensed housing developer shall also have to deposit any loan for the construction of a building project into the Project Account of the building project.
The usage and application of moneys in the specific Project Accounts are for specific purposes. No moneys in a Project Account of a building project shall be withdrawn by a licensed housing developer except for all or any of the following purposes:
(a) the payment of property tax levied in respect of the land on which the building project is carried out;
(b) the payment of stamp duty payable on a mortgage to secure any loan for construction of the building project;
(c) the payment of legal fees in respect of --
(i) the sale and purchase of the units in the building project;
(ii) any mortgage to secure loans for construction of the units in the building project; and
(iii) any other matters relating to the building project;
To read more on the Housing Developer (Project Account) Rules, you may click here
In China, the funds from the sale of the BUC projects from home buyers and the banks are essentially considered as interest-free loans for property developers, which the property developers have the liberty to use at their disposal for any other projects, or further diversification of businesses, etc.
In Singapore, the government acts to protect local home buyers from seeing their BUC condos from becoming unfinished and stalled housing projects through the HOUSING DEVELOPERS (CONTROL AND LICENSING) ACT. In this act, under Chapter 130 section 22 - we have the Housing Developer's (Project Account) Rules that requires Singapore developers to deposit purchase money from home buyers & banks into specific Project Accounts for each BUC project.
Under the ACT, a licensed housing developer shall deposit forthwith upon receipt all instalments of purchase money (including the booking fee) payable by a purchaser towards the purchase of a unit in a building project prior to the grant of the temporary occupation permit by the competent authority for the unit, including any instalment of purchase money payable by the purchaser towards the purchase of the unit upon the grant of the temporary occupation permit, into the Project Account of the building project. The licensed housing developer shall also have to deposit any loan for the construction of a building project into the Project Account of the building project.
The usage and application of moneys in the specific Project Accounts are for specific purposes. No moneys in a Project Account of a building project shall be withdrawn by a licensed housing developer except for all or any of the following purposes:
(a) the payment of property tax levied in respect of the land on which the building project is carried out;
(b) the payment of stamp duty payable on a mortgage to secure any loan for construction of the building project;
(c) the payment of legal fees in respect of --
(i) the sale and purchase of the units in the building project;
(ii) any mortgage to secure loans for construction of the units in the building project; and
(iii) any other matters relating to the building project;
To read more on the Housing Developer (Project Account) Rules, you may click here
Currently, an estimated number of between 35 million to 50 million condo units in tens of thousands of residential projects are lagging behind schedule across China with young millennials forming a large part of the unfortunate home owners seeing themselves sinking deeper and deeper into debt as they continue to pay their monthly mortgage loans for the next 20 years without any idea when they will be able to see the completion of their homes.
"The massive halting of construction in China may see a reduction in the cost of construction in Singapore as China is the world's largest buyer of construction materials due to its booming property market previously, accounting for more than half of the global total demand for steel, etc." said Kiwi Lim
"The massive halting of construction in China may see a reduction in the cost of construction in Singapore as China is the world's largest buyer of construction materials due to its booming property market previously, accounting for more than half of the global total demand for steel, etc." said Kiwi Lim
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