Market Updates

Homebuyers can now get a better sense of how well developers and builders perform with the roll-out of a new construction quality banding system that tracks their record in private residential projects over the past six years. Launched on Thursday, the new banding system will replace the existing Construction Quality Assessment System (Conquas) scores for building projects with immediate effect, said the Building and Construction Authority (BCA). Conquas set out standards for various aspects of architectural works, and awarded points for works that met these standards. The points were then summed up to give a total quality score - the Conquas score - for the building project. During a conference on Thursday, Mr Neo Choon Keong, deputy chief executive of industry development at BCA, said that the new Conquas banding system rates developers and builders in bands from 1 to 6 - with Band 1 being the best. This is to give homebuyers a more accurate assessment of construction performance than the old system which merely provided one overall score. Homebuyers will know how the developer and the builder for the residential development they are interested in have performed in past projects, which would also be an indication of the quality of their upcoming projects, said Mr Neo. Conquas was introduced in 1989 to assess the quality of building projects at the point of inspection. Subsequently, Conquas assessments have been required for new buildings constructed on Government Land Sales sites since 1992, and public-sector building projects with contract values above $5 million since 1998. The new banding was developed following feedback from homebuyers that the current reflection of quality performance by score was not intuitive for research and meaningful comparisons in making an informed home purchase decision. BCA also noted that developers and builders have varying quality standards, and that past quality performance is an indication of quality for upcoming projects. Currently, BCA's Quality Housing Portal (QHP) contains the banding of 110 developers and 76 builders, covering 350 private residential projects completed in the past six years, as well as projects undergoing assessments. Developers, builders and private residential projects are rated on a scale from Band 1, which means they are found to have a very low incidence rate of major defects, to Band 6. Bands 1 and 2 are reserved for firms that have consistently delivered projects with little or no major defects, highlighting their strong performance, while Band 3 indicates an average incidence of major defects found, said BCA. The benchmarks and scores for each band are calibrated with reference to validated feedback on major defects received from home buyers. Major defects mainly relate to functionality as well as liveability. Some examples include inter-floor water seepage at wet areas, water seepage through the windows, as well as popping tiles. Conquas performance is a reflection of the extent of the major defects found, and these defects are required to be rectified by the developer and builder, said BCA. Currently, 20 developers and 15 builders have been accorded Band 1, including City Developments Limited (CDL) and Woh Hup Limited. EL Development, which sold 75 per cent of its 275-unit Blossoms By The Park on the first day of its launch in April, was placed in Band 3. Far East Organization, which will launch its 99-year leasehold The Reserve Residences in District 21 on Saturday, was put in Band 4, while IOI Group, developer of The Trilinq condominium in Clementi, was in Band 5. No developer has been put in Band 6 yet. Mr Tan Siang Leng, who has placed a cheque for a three-bedder unit at The Reserve Residences, was surprised to find out about Far East Organization's banding. "The new banding system is definitely good news for homebuyers. It is always a hassle and headache to complain and to rectify the defects upon taking over a unit, " said the 46-year-old accountant. He said that even with the subpar banding that Far East has achieved, he would go ahead with his purchase because he believes that the developer would be on its toes to deliver quality work. "I believe the banding system will pressure it to raise its quality. It will take a few years for The Reserve Residences to be built, so there's still time to rectify any issues, " said Mr Tan. Mr Marc Boey, executive director of property services at Far East Organization, said: "We welcome fair assessments and standards to uphold excellence across the real estate industry, benefiting customers and builders in the long run. "We will review the new Conquas banding system and work closely with partners and builders to ensure we continue delivering quality homes. " Mr Neo said: "We want a virtuous circle - informed buyers drive responsible developers to select competent builders, who want to consistently improve quality. "Then we will see the standard going up. "That's what we're trying to achieve. "

Efforts by the National Parks Board (NParks) to restore nature in the urban landscape have reached a milestone with the achievement to date of about 155ha of skyrise greenery, an area larger than 155 football fields. The target is to have 200ha of skyrise greenery under the Singapore Green Plan 2030. To meet this goal, NParks' Skyrise Greenery Incentive Scheme (SGIS), which provides funding of up to 50 per cent of installation costs for rooftop greenery and vertical greenery projects on existing buildings, has been extended from March 2023 for another three years, to the end of March 2026. SGIS is part of the Skyrise Greenery Programme, which comprises a wide range of initiatives - from incentive schemes and research to recognition programmes and education - to build Singapore's capacity and capabilities in skyrise greenery. Since it was launched in 2009, SGIS has disbursed over $10.2 million, said NParks, the lead agency for greenery and biodiversity conservation. There is a cap of $200 per sqm for rooftop greenery and $500 per sqm for vertical greenery. NParks has received around 300 SGIS applications to retrofit existing buildings with extensive green roofs, edible gardens, recreational rooftop gardens, and lush, verdant green walls, NParks' group director of horticulture and community gardening Sophianne Araib told The Straits Times. Applications are assessed based on the project's merits and ability to contribute towards climate, ecological and social resilience goals. Beneficiaries of the SGIS are wide-ranging and include educational institutions, healthcare facilities, industrial developments, community and commercial buildings, and private residential developments, said Ms Araib. Among them is One Shenton, a luxurious residential development in the heart of the city's downtown core planning region. "For One Shenton, vertical greenery columns have been added at the pedestrian level and adjacent to busy streets. Aside from visual relief for the building's occupants and members of the public, the green walls help to reduce one's exposure to air pollution and positively contribute to the therapeutic needs of people living and working in urban areas, " said Ms Araib. The overall costs, including installations on the building facade, came up to about $750,000, with $330,000 subsidised by NParks, said Mr Alexandre Collin, chairman of One Shenton's management council. Since 2019, One Shenton has been gradually upgrading its facilities and infrastructure, including the installation of skyrise vertical greenery. "Our residents have become more cognisant of their mental health and well-being. They want to spend more time outdoors, and our newly enhanced green spaces, outdoor pavilions, pool decks with cabanas, and communal spaces are now necessary comforts that will enhance their quality of life, " said Mr Collin. "Besides enhancing the quality of life for residents, adding sustainable features has long-term savings benefits because of a cumulative reduction in electricity usage of approximately 30 per cent throughout the building's common-area facilities. These savings, in combination with One Shenton's green building features such as climate-friendly reflective facades and energy-efficient light fittings, have helped its managing body absorb inflation without increasing management fees over the last 10 years, " he added. Currently, private residential property developers account for less than 3 per cent of total applications for the SGIS, said Ms Araib. It is because there is "already strong support and buy-in to incorporate lush and verdant greenery by private residential property developers", she added. Other projects that have been supported under the scheme include The Giving Garden @ Kim Tian West, which saw the conversion of a concrete carpark roof deck in a public estate into a lush edible garden, and Keppel Infrastructure @ Changi, which installed greenery along with solar panels on the building facade.

Property agents will have to meet a higher training requirement to renew their licences from October 2025, in a move by the Council for Estate Agencies (CEA) to raise professional standards in the industry. They will have to clock 16 hours of training a year, up from the six to nine hours currently required for agents to renew their licence each year. Announcing the new requirement on Friday, Second Minister for National Development Indranee Rajah said it will ensure agents do not get left behind as trends and circumstances change, and that they are "fully plugged into all that is happening". Of the 16 hours, agents will have to log 12 hours under a structured learning component which includes courses in areas such as laws and regulations, property markets and other related real estate knowledge. To allow agents to pick up new generic skills, they can take courses in areas such as customer service and digital market under the self-directed learning component to fulfil the remaining four hours of training. The CEA will review the 16-hour requirement after a few years, with the target of raising it to 24 training hours. The new requirement is one of eight measures that will be put in place by 2025, to ensure property agents provide more professional service to consumers, CEA said. In a speech at the Singapore Real Estate Agents Conference held at the HDB Hub in Toa Payoh, Ms Indranee said the measures are meant to raise the professionalism of the real estate industry and prepare it for the future. The other goals are to improve the quality of training for property agents, and promote a continuous learning mindset among them. Ms Indranee said the CEA will also tighten the accreditation criteria and design requirements for training courses, and adopt a more rigorous audit framework for training providers to "ensure a consistently high level of quality". The new measures to raise industry standards stem from recommendations made by a workgroup that conducted a 17-month study to review and improve the training ecosystem for the real estate sector. There are 34,427 property agents here as at Jan 1,2023, up from 30,399 in 2021, based on CEA figures. Mr Adam Wang, 46, president of the Singapore Estates Agent Association, said he felt agents will take the increase in training hours positively, as they will get to upskill and gain more knowledge. He reckons property agents will be open to a further increase in training hours from 16 to 24, as there has been a shift in mindsets among agents, who want to show the public their professionalism and ability to provide valuable advice. He added that the higher training requirements will take effect only in October 2025 to give training centres more time to prepare and revamp their course materials.

While New York has its "Billionaires' Row", Cairnhill Road can be seen as Singapore's "Tycoons' Street", since it was home to some of the most illustrious Chinese businessmen like Tan Kah Kee, Tan Chin Tuan and family members of Lien Ying Chow. Today, Cairnhill Road's premier address is shared with Klimt Cairnhill, the new luxury freehold development by mainboard-listed construction and property company Low Keng Huat (Singapore) Limited. Situated on a 62,904 sqft site, the freehold single 36-storey tower comprises 138 units and is right in the heart of the prestigious District 9 in Singapore. More than just a stellar location, Klimt Cairnhill features a 1902 Anglo-Malay bungalow on its premises, once home to the relative of Overseas Union Bank's founder, Mr Lien Ying Chow. The Lien family later sold it to developer Low Keng Huat (Singapore) Limited. The development is within 1km of Anglo-Chinese School (Junior) and easily accessible to other renowned schools like Singapore Chinese Girls School, St Joseph's Institution and Catholic Junior College. International students can also benefit from convenient access to the Stamford American International School (SAIS). A short six-minute walk away, residents can access premium medical services at Mount Elizabeth Hospital and Paragon Medical. The property is also just a few minutes' drive to Camden Medical and Gleneagles Medical Centre, amongst other top healthcare facilities. Fancy a night out? You're less than a 10-minute drive from cultural and dining hotspots like Marina Bay Sands, Esplanade - Theatres on the Bay and Dempsey Hill. The exclusive Tanglin Club and The American Club are in the neighbourhood, while the glitzy shopping belt of Orchard Road is mere minutes away by car. Conceptualised by DP Architects, the design of Klimt Cairnhill is inspired by the prominent Austrian artist Gustav Klimt. The key architectural feature is the golden curvilinear aluminium façade which takes inspiration from the way the artist used gold leaf in his art pieces. The plan of the building is rectangular, reflecting an efficient configuration and the curvilinear façade is akin to a soft elegant fabric draping onto the building, adding a touch of sophistication. Inside, the sizeable units cater to different needs, providing a comfortable and relaxing respite from the bustle of the day. Whether you're a couple looking for your dream home or a multigenerational family living together, Klimt Cairnhill offers the ideal space for your preferred configuration. Two-bedroom units offer 829 sqft of space or 893 sqft for units with a study. Three-bedroom units range in size from 1,432 sqft to 1,496 sqft, while four-bedroom units provide a generous living space of 2,056 sqft, increasing to 2,368 sqft for the Prestige units. A highlight of the property is the Anglo-Malay bungalow on its premises. Converted into a clubhouse, the bungalow's rich architectural history is preserved on the outside, while the interior is completely refurbished with modern accents and private dining rooms available for celebrations and events. A spacious verandah offers the ideal spot to wind down with a cocktail or two after work. Attracting both local and international buyers, with a steady increase in sales in recent months, Klimt Cairnhill has already sold its two penthouses - a 4,898 sqft six-bedroom simplex on the 36th floor and a 5,920 sqft six-bedroom duplex on the 35th and 36th floor. In addition, all the four-bedroom units are also sold out, a nod to the huge demand and popularity of the property. Compared to apartments in other major first tier cities like Shanghai, New York and London, Klimt Cairnhill's prices are very competitive. Two-bedroom units start at $2.65 million, while three-bedroom units start at $4.85 million. With the government ceasing to offer freehold land for developers to tender since 2007, a freehold property like Klimt Cairnhill straddling the Orchard-Newton districts is a rare value-for-money find that can certainly be passed down the generations for years to come.

The Housing Board has announced changes to how it will disburse housing grants for those looking to buy HDB flats. Also, from Tuesday, HDB loan and housing grant applicants will have their incomes assessed over a period of 12 months, instead of three or six months. The HDB loan eligibility letter is now replaced with the new HDB flat eligibility letter (HFE), which the board said will give buyers a clearer picture of their purchase costs and financing options. The Straits Times answers questions about the changes. A: Applicants do not have to be employed for a full 12 months, but must be working at the point when they apply for the HFE letter to be eligible for HDB loans. But to be eligible for the Enhanced Central Provident Fund (CPF) Housing Grant, they need to be employed for the full 12 months. The cut-off date of the income assessment period is two months before an applicant applies for an HFE letter. HDB said on Monday that standardising the assessment period at 12 months - instead of three or six months previously - allows for more consistent assessments as jobs are fundamentally different in various ways, including remuneration structures. This will enable a clearer assessment of applicants' income levels, especially for those whose incomes fluctuate from month to month. The new guidelines will apply when buying executive condominiums from property developers, and to schemes such as the Lease Buyback Scheme and Silver Housing Bonus. A: Applicants who exceed the household income ceiling of $14,000 can still be eligible for HDB loans and housing grants, as long as the household's average income across 12 months is under the cap. Mogul. sg chief research officer Nicholas Mak said the longer assessment period allows more people to be eligible for HDB loans and housing grants. "This is a more holistic way of looking at an individual's income, and it puts less pressure on the authorities to increase the income ceiling, which would affect the wider housing market. " The change means more applicants would be eligible for HDB loans, which carry a concessionary interest rate of 2.6 per cent - pegged at 0.1 percentage point above the CPF Ordinary Account (OA) interest rate. First-time buyers of two- to four-room HDB flats can get $80,000 in grants under the CPF Housing Grant, while those who buy five-room or larger units can get $50,000. First-timers buying HDB resale flats can also tap the Enhanced CPF Housing Grant, which gives up to $80,000 in grants for families, and the Proximity Housing Grant of up to $30,000 for families. In all, first-timer families can receive up to $190,000 in grants when buying a resale flat. A: Housing subsidies will now be split equally between a first-timer applicant and occupier who form a core family nucleus. Previously, all housing grants would be credited to the main owner's CPF OA. A couple purchasing an HDB flat have the option to list one spouse as an essential occupier, with the other as the main owner who will finance the flat. An essential occupier is a family member "who forms a family nucleus with the applicant to qualify for a flat from HDB", according to HDB's website. An essential occupier does not have a share in the flat, even if he contributed cash to finance it. With the changes, the main owner will receive only half of the grants, while the other half will go into the occupier's CPF OA. The occupier will not be able to use his grants to fund the current flat. In the future, he will be able to use the grant only for public housing - HDB flats and exec condos from developers. He cannot use the grants for private properties or investments. These funds will gain interest at the OA interest rate of 2.5 per cent per annum. An HDB spokesman said the main applicant "may wish to consider listing the core occupier as a co-applicant instead, if they would like to use the full grant amount for the flat purchase". After the flat reaches its minimum occupation period (MOP), the occupier can buy a private property as a first-time buyer, allowing him to avoid paying the additional buyer's stamp duty (ABSD). Huttons Asia senior director of research Lee Sze Teck said the change will create uncertainty in the HDB resale market as not every buyer will be able to use the full grant. "It may cool down the exuberance created by increasing the housing grant (in February 2023). However, there is no impact on the private housing market as the essential occupier can buy a private property after the MOP. " But Mr Mak said splitting the housing grants is not enough to discourage this method of avoiding ABSD. "The potential financial gain from investing in a private property outweighs the inability to use the housing grants to finance the purchase of the flat initially, " he said. "Furthermore, the HDB is rewarding the occupier by letting him keep the housing grant in his CPF account and earn 2.5 per cent interest in the meantime. " He added that it would be more effective to label both the applicant and the occupier as co-owners of the HDB flat, so they would have to pay the full ABSD when buying a private home as their second property. A: Yes, the grants will be disbursed to both the Singaporean applicant and the PR. Previously, housing grants would be disbursed only to the Singaporean applicant. A: No, the full grants will be disbursed to the parent, even if the child is helping to finance the flat. The child will still be considered a first-timer buyer if he chooses to buy a flat in the future. HDB said a first-timer child who is part of a core family nucleus with his parent will not be treated as having enjoyed the subsidy if he is single and listed as a co-applicant. He will also not be treated as such if he is listed as an occupier and is married or single. A: No, as long as the HLE letter is valid, the applicant does not need to apply for the new HFE. However, when the buyer's intent to buy or HLE letter has expired, he must have a valid HFE letter before he can be granted an option to purchase by a resale flat seller. As of Tuesday, the flat-buying process is streamlined so that buyers just need to make a single application to get the HFE letter informing them if they are eligible to buy a new or resale flat, how much of the housing grants they can use and the HDB loan amount they qualify for. Previously, the three aspects were assessed separately at different stages of the home purchase process.

More than 900 Housing Board flats will be built along Sin Ming Road in Upper Thomson, the first new units to be launched for sale in the area since 1988. The project - slated for completion in the second quarter of 2027 - will offer 984 flats across five residential blocks ranging from 22 to 28 storeys. There will also be a seven-storey carpark, social communal facilities and roof gardens, a signboard at the construction site showed. Photos of the site were posted to social media platform Reddit on Tuesday. When The Straits Times visited the site next to Block 25 Sin Ming Road on Wednesday, construction work was under way. ST understands that the Sin Ming flats will be launched as a Build-to-Order (BTO) project. BTO launches typically occur in February, May, August and November. The Sing Ming project comes under Bishan, and a check on HDB's website showed that there will be no BTO launches in the area in the upcoming May and August launches. Property analysts said the last HDB blocks completed in Sin Ming were in 1988, when 945 units were built in Sin Ming Avenue. Huttons Asia senior director of research Lee Sze Teck said there could be pent-up demand for BTO flats in the area. He expects the application rate for the Sin Ming project to fall between two and four - referring to the number of applicants vying for each of the units. "It appears that HDB is building BTO flats in mature estates in advance so as to deliver it within a shorter time, " he added. OrangeTee & Tie senior vice-president of research and analytics Christine Sun noted that the site is located near schools such as Catholic High School and Ai Tong School, as well as Bishan-Ang Mo Kio Park, which would contribute to demand. "There is a lack of new flats in the area, and prices of new private homes in nearby districts such as Upper Thomson, Bishan, Ang Mo Kio, Marymount and Lentor are quite high, " she said. The project could have a mix of two-room flexi, three-room and four-room flats, but bigger units like five-room and three-generation flats may not be offered to keep prices affordable, she added. Mr Lee said four-room units at the project could be priced between $525,000 and $650,000, based on resale prices. Other four-room flats in Sin Ming, which are more than 30 years old, have transacted at $600,000 to $750,000. Mogul. sg chief research officer Nicholas Mak said the new estate could include amenities such as retail shops and childcare services, as the former industrial estate currently does not have many existing amenities to serve residents. He added that the project is located near the Upper Thomson and Bishan MRT stations, which will give future residents access to three different lines - the North-South line, Thomson-East Coast line and Circle line. The analysts said the Sin Ming project is unlikely to fall under the prime location public housing model, in which owners are subject to criteria such as a 10-year minimum occupation period.

The Housing Board resale market is showing its resilience with prices climbing 1.1 per cent in April, the second straight month they have gone up. HDB resale prices had been rising since June 2020 before plateauing in February, and then rebounding with a 1 per cent increase in March. April's overall prices were 8.4 per cent higher than a year before. Flats in mature estates continued to attract a premium, with resale prices rising faster than for flats in non-mature estates for the second consecutive month. In April, prices in mature estates were up by 1 per cent, and those in non-mature estates by 0.8 per cent. Prices also went up for all flat types compared with March. Five-room flats recorded the highest increase of 1.9 per cent, followed by 1 per cent for executive flats. Three-room resale flat prices crept up by 0.7 per cent, and four-room flats by 0.3 per cent. The number of HDB resale flats sold in April fell by 4.3 per cent - or 99 units - to an estimated 2,188 units, according to flash data released by real estate portals 99.co and SRX on Thursday. This is 3.7 per cent lower compared with April 2022. April's resale volume, however, was still higher than the monthly average of 2,176 units sold from October 2022 to March 2023, OrangeTee & Tie's senior vice-president of research and analytics Christine Sun pointed out. "Demand was probably boosted by more buyers returning to the resale market as the Government announced in Budget 2023 that more Central Provident Fund housing grants will be given to first-timers buying resale flats, " said Ms Sun. "As anticipated, some first-timers may have switched from buying cheaper flats in non-mature estates to pricier ones in mature estates since they can use the additional grants to top up the price difference. " Since February, first-timer families buying two- to four-room HDB resale flats get a grant of $80,000, up from $50,000. Those who buy five-room or larger units can get $50,000, up from $40,000. Ms Sun said April's stronger price growth and robust sales showed that the resale market remains resilient despite the cooling measures announced last September that tightened lending limits on buyers looking to finance their flat purchase. Private home owners must also wait 15 months after the sale of their home before they can buy a resale flat without housing grants. PropNex Realty's head of research and content Wong Siew Ying said the HDB resale market was finding its footing and likely stabilising after last September's curbs. The latest signs point to a moderation in HDB resale price growth, which could encourage more prospective buyers to review their options in the resale flat market, she added.

Two days after new property curbs kicked in to raise additional stamp duties for some home buyers, a development in Buona Vista sold more than 200 of its 275 units at its launch on Saturday. Among the new launches in 2023, Blossoms by the Park in Slim Barracks Rise achieved the highest take-up rate of about 75 per cent, at an average price of $2,423 per square foot (psf). Several buyers told The Straits Times they were not affected by the new cooling measures, which do not apply to Singaporeans buying their first home. Developer EL Development on Saturday said all one- and two-bedroom units, except for the two-bedroom penthouses, were fully sold. It added that 96 per cent of the buyers were Singaporean and Singapore permanent residents (PRs), with foreign buyers making up only 4 per cent. Ms Tracy Ong, associate group director of Huttons Asia, said the frenzy for bookings began almost from the moment the development was launched. Huttons Asia is one of the marketing agents for the development. "The smaller units were snapped up really fast. Almost every few minutes, I would hear a ping alert in our booking system, alerting us that a unit has been taken up, " added Ms Ong. "My client's queue number was 674 and he wasn't too hopeful of getting a unit. By lunchtime, two-bedders were almost sold out and the three- and four-bedders were also being snapped up really fast. But there were also a lot of buyers who decided to drop out of the queue. Maybe the units that they wanted had already been sold. Thankfully, my client managed to secure a three-bedder. " Ms Serene Tan, 42, a housewife, was among the first 50 buyers to pick her unit, a two-bedroom apartment with a study for $1.6 million. Ms Tan said she and her husband moved to a rental apartment, paying $3,800 a month, after selling their Housing Board flat in Clementi earlier in 2023. They bought the condo unit as an investment. "If the price is right, we may sell it a few years later, " she added. "We are aware of the speculation that prices might drop following the stamp duty announcement. However, we have confidence in the project, which is why we are going ahead with the purchase. " Industry experts said they expected the strong sales despite the latest hikes on the additional buyer's stamp duty (ABSD) for Singapore citizens and permanent residents buying their second and subsequent properties. While foreigners will bear the brunt of the ABSD increases if they purchase any residential property here, most buyers of Blossoms by the Park are Singaporean, they noted. Property portal Mogul. sg chief research officer Nicholas Mak said foreigners made up fewer than 5 per cent of condo buyers in District 5 between January 2022 and now. "Foreign buyers are not the main demand driver of private residential property any more, especially outside of the central region, " said Mr Mak. Earlier in April, Tembusu Grand in Katong sold 53 per cent of its 638 units, or 340, during its launch weekend at an average price of $2,465 psf. Terra Hill in Pasir Panjang sold 102 units, or 38 per cent, of its 270 units at an average price of $2,650 psf in February. The strong sales performance at Blossoms by the Park affirms the view of a resilient market, underpinned by a healthy and stable demand for private housing among local buyers, said PropNex chief executive Ismail Gafoor. He added: "From our observations, many buyers at new launches do not pay ABSD as they are purchasing their first residential property, and hence are not affected by the new measures. " He said the PropNex sales team sold more than 100 units of Blossoms by the Park and most of the buyers were Singaporean and Singapore PR, with only three being foreigners. Mr Marcus Chu, chief executive of ERA Realty Network, said the development's proximity to the one-north research and development hub and its pricing were a draw for investors. Meanwhile, hundreds of interested viewers turned up on Saturday at the show flat for The Continuum in Thiam Siew Avenue in the east. The project by Hoi Hup and Sunway is expected to be launched in May. Some potential buyers told ST that they were not affected by the ABSD hike as it would be their first residential property purchase. Ms Rebecca Lim, a resident of Sengkang, is happy with the Government's intervention, which she feels would help to deter people buying properties for investment, leaving first-home buyers with more choice. Ms Lim is planning to sell her HDB flat and upgrade to a condominium. Since the ABSD hike was announced, some property agents have had calls from foreign clients asking to cancel viewings that had been arranged for this weekend. Mr Stuart Chng, managing partner of Navis, a network of 1,300 agents under Huttons Asia, said some foreign clients have now opted to rent, instead of buying a property. City Developments, which had originally slated a preview of luxury development Newport Residences in Anson Road in Tanjong Pagar, decided to reschedule the preview this weekend.

From May 9, potential buyers of Housing Board flats just need to make a single application to get a letter informing them if they are eligible to buy a new or resale flat, how much in Central Provident Fund (CPF) housing grants they can use and how much HDB housing loan they qualify for. They will get these three pieces of information in the new HDB Flat Eligibility letter as HDB moves to streamline the flat-buying process and give buyers a clearer picture of their purchase costs and financing options. The three aspects are currently assessed separately at different stages of the home purchase process. For new flats, buyers will need this letter for their application during an HDB sales launch or open booking of flats. Those buying resale flats need the letter to get an option to purchase from the seller, as well as when they submit a resale application to HDB. Buyers find out if they are eligible to buy new or resale flats when they make an application. Those buying new flats will confirm the quantum of housing grants they are eligible for only when they book their flat. The current process may lead to "some uncertainty among flat buyers on their housing budget", HDB said on Friday. Currently, their eligibility for flat purchase and housing grants is not confirmed at the point that they apply for a new flat or secure the purchase of a resale flat. And buyers need to provide relevant supporting documents such as payslips and CPF statements repeatedly to HDB for verification at various stages of assessment. Integrating the eligibility assessments for HDB flat purchases, housing grants and HDB housing loans into a single application "will bring about more certainty and convenience to buyers", said HDB. "With greater clarity upfront on their housing budget and financing options, flat buyers will also be able to make more informed and prudent decisions in their home purchase, " it added. Applying for the HDB Flat Eligibility letter, which will replace the current HDB Loan Eligibility letter, is a two-step process. Under the first step, applicants can find out if they are eligible to buy a flat, as well as the loan and grants they qualify for, immediately after logging into the HDB Flat Portal using Singpass and declaring information such as their household income and ownership of private property. In the second step, all applicants and occupiers, within the next 30 days, must furnish their personal particulars and upload supporting documents as required. The letter will be issued within 21 working days of HDB receiving the completed application, and is valid for six months. As part of the transition to this new process, those participating in the May 2023 Build-to-Order sales launch will need to complete only the first step of flat eligibility letter application before submitting their new flat application. They will need to obtain a valid letter when they book their flat. For sales launches from August 2023, applicants will need a valid flat eligibility letter before submitting their application for a flat. The HDB Resale Portal will be integrated into the HDB Flat Portal from May 9. Other improvements include allowing buyers to apply for home loans from financial institutions through the portal, while new flat buyers will be guided through each stage of the flat-buying journey with personalised information and customised financial and payment plans. More information on the changes can be found on the HDB website.

Prices of Housing Board flats are showing signs of cooling, with resale prices rising at 1 per cent in the first three months of 2023, marking the smallest quarterly increase in the past 10 quarters, or 2½ years. The increase in the first quarter was less than half of the 2.3 per cent for September to December 2022, data from HDB showed. Resale volume rose by 5.8 per cent to 6,979 transactions in the first quarter, from 6,597 transactions in the previous three months. Compared with the same period a year ago, resale transactions were 0.6 per cent higher. Analysts said higher housing inventory and the cooling measure introduced in September 2022 would have contributed to the slowdown in price growth. "The housing shortage is easing as inventory builds up, with more flats being completed in recent months, " said Ms Christine Sun, OrangeTee & Tie's senior vice-president of research and analytics. "The Government continues to launch BTO (Build-To-Order) projects and released new flats for sale. " Ms Sun also noted that more four-room and smaller-sized flats, totalling 5,000 units, were sold between January and March 2023, compared with 4,622 units in the last three months of 2022. The sale of five-room flats went up by 1.3 per cent, from 1,545 to 1,565 units. Executive flats, conversely, saw volumes fall by 3.7 per cent from 430 to 414 units. Since Sept 30,2022, private home owners must wait 15 months after the sale of their home before they can buy a resale flat without housing grants. The temporary cooling measure, aimed at moderating demand from private home owners who tend to have a bigger budget for HDB flats, was introduced after the market showed growing signs of overheating. Property portal Mogul. sg chief research officer Nicholas Mak believes that the 15-month wait would have contributed to the slowdown in the HDB price growth that started in the last quarter of 2020. Based on the HDB data, PropertyGuru Singapore country manager Tan Tee Khoon noted that estates such as Woodlands, Punggol and Yishun, which saw the most BTO flats fulfilling their five-year minimum occupation period in 2023, were driving the resale market. In terms of resale prices, Bishan reported the highest median price of $900,000 for five-room flats, while the highest median price for four-room flats was in Queenstown at $864,000. For three-room flats, Punggol and the central area recorded the highest median price at $450,000. "Buyers are still willing to pay for space and seek out larger flat types, as evidenced by the sustained demand for million-dollar flats despite the dwindling supply of five-room or larger flats, " said Dr Tan. He noted that there were 94 units of million-dollar resale flats sold in the first quarter, down from 96 units in the previous quarter. Meanwhile, the number of approved applications for HDB rentals rose 13.9 per cent to 9,657 cases, from 8,476 cases in the previous quarter. The latest number was 5.2 per cent lower than that of the same period in 2022. As at the end of March 2023, there were 56,652 HDB flats rented out. Ms Sun said: "Rental demand increased as tenants returned to the market after the year-end holidays, and leasing activities increased after the Chinese New Year period. Some tenants shifted downstream from renting private properties to HDB flats as rent prices have surged significantly islandwide, and many are looking for cheaper accommodation. " In the Government's latest round of property cooling measures announced on Wednesday, the additional buyer's stamp duty (ABSD) was raised for citizens and permanent residents buying their second and subsequent properties. Foreigners would also have to pay a higher ABSD for purchasing any residential property in Singapore. While this is set to slow down private residential sales in the coming months, Mr Mak said the curbs could also slow down the sales of HDB resale flats "as buyers and sellers take stock of the new market environment that is shaped by the latest round of property curbs". In May, HDB will offer about 5,400 BTO flats in towns such as Bedok, Kallang/Whampoa, Serangoon and Tengah. In August, between 5,200 and 6,200 BTO flats in towns such as Bukit Merah, Choa Chu Kang, Kallang/Whampoa, Queenstown and Tengah will be offered.