Tue, Apr 29, 2008
As published in The Straits Times
A COUPLE who bought a home and refused to pay the seller's agent the 1 per cent commission are being taken to court by a property company which is claiming a fee.
PropNex associate director Ricky Low Yong Sern, who is in his late 30s, is seeking about $4,000 in commission or a service fee, in a case that is likely to turn the spotlight on the issue of whether home buyers should pay a fee to sellers' agents, The Straits Times reported.
He was the exclusive agent handling the sale of a terrace house in Whampoa built over 30 years ago, which is classified as a Housing Board flat.
Marketing specialist Loh Yi Min, 29, and his wife, polytechnic lecturer Ariel Wee, 33, bought it for $400,000 in April last year. They acted on their own without engaging an agent.
In documents submitted to court, Mr Low claimed that he had a right to collect a commission as he had exclusive rights to market the property. He also claimed that he provided services to the buyers.
However, the couple refused to sign the commission agreement when they inked the sale last year. They claim they had made no deal to pay him a fee in the first place.
Both sides will attempt to reach an agreement when they attend a court dispute resolution session next month.
This is the first lawsuit of its kind started by PropNex.
The issue of commissions payable by independent buyers - or buyers who deal without agents - has been hotly debated in recent years.
While there is no law fixing fees payable, property sellers typically pay their agents a 2 per cent fee, while buyers pay their agents a 1 per cent fee.
Many agents marketing HDB flats also charge independent buyers a 1 per cent fee, but this is not practised in private property deals. Property veterans say this disparity is due to the lower prices of HDB flats, which amounts to a lower commission payable to agents.
Some independent buyers have complained that sellers' agents inform them that they have to pay a commission just before the purchase documents are signed, leaving them little time to find out about their rights.
Once the buyers sign the commission agreements, they are bound to pay the fee.
However, agents have countered that independent buyers often leave the paperwork to the sellers' agents but refuse to pay a service fee.
Major real estate agencies contacted by The Straits Times have varied responses to such situations, although they all maintain that independent buyers of HDB flats should pay a fee.
Wednesday, April 30, 2008
More attractive to buy home instead of renting
by Marcel Lee Pereira
29 April (Tuesday)
as published in My Paper
29 April (Tuesday)
as published in My Paper
WITH interest rates sliding, now could be a good time to move out of that rental apartment and get your own home.
Taking a home loan at a lower interest rate could translate into paying less than what you fork out in rent now, and getting the property under your name too, said consumer moneylender GE Money, which offers a range of consumer finance products such as personal and car loans, but not home loans.
Speaking to my paper on responsible borrowing in a climate of low interest rates and a strong Singapore dollar, GE Money's chief marketing officer, Mr Alok Kumar, said: 'It does make sense to buy property now because interest rates are low.
'If you haven't considered taking a housing loan, now is the time to consider that, because cash flow will make better sense today due to the lower interest rate and lower outflow.'
This is an option because the Singapore Inter-bank Offered Rate (Sibor) is on a downward trend, he said. Sibor, the rate at which banks lend to one another, is a key component used in setting home loan rates. It tends to track the United States Federal Reserve funds rate, which has been slashed in recent weeks.
The three-month Sibor has declined by more than one percentage point, from 2.38 per cent at the start of the year to 1.31 per cent at end-March. It dipped even further to just 1.25 per cent last week. Said Dr Chua Hak Bin, a strategist at Deutsche Bank's Private Wealth Management: 'It's an attractive time to borrow. There is still a chance that the interbank rates might move lower because the market expects the Fed to continue cutting rates.'
But GE Money's Mr Kumar said that consumers should also take a long-term view and understand the long-term risks.
He said: 'You can afford a loan today but, if the interest rate goes up four years later, do you see your earnings also going up' Will you be able to service the loan then?'
A DBS spokesman said that with lower interest rates now, customers would benefit from home loan packages that are pegged to benchmarks like Sibor, where it truly reflects the movements in interbank rates.
'However, one would also need to consider the purpose of the purchase,' said the spokesman.
'For example, if the property is meant for owner occupation, then the consumer should take a longer- term view on the housing loan.'
Besides, one does not buy a property just because of low interest rates, said UOB economist Ho Woei Chen.
'You also have to consider other things like housing prices now, and what you think the property market will be like going forward,' she said.
Mrs Lynn Ong, 32, who lives with her husband and three children in a rented house in Upper Thomson, is hoping to buy a house within the next six months, as her rent has just gone up from $3,000 to $5,000 a month.
'Lower interest rates mean I can get the most out of my money. Instead of paying rent, you service a mortgage,' said Mrs Ong, a contract adviser.
'It makes more sense that you put money into something that belongs to you.'
On the stronger Singapore dollar, Mr Kumar believes that investment in shares and funds traded in US dollars would provide higher returns.
'There are no clear low-hanging fruits that you can grab unless it's US dollar-denominated investments,' he said.
'But general prudence about spending and borrowing still prevails even in this environment.'
Sunday, April 20, 2008
For Sale - 4A in Punggol Central
For Sale
Beautiful 4A in Punggol Central
Rare! New listing! Just matured.
95sqm. High-floor.
Renovated. Nice and cozy.
3 bedrooms (No hacking done).
PR eligible. All races eligible.
Near LRT, Punggol Plaza, schools, church.
Lush landscaped gardens, covered carparks.
Call Jessica at 9858-0214 for viewing appointments now.
Friday, April 18, 2008
HDB to sell unsold flats on a less frequent basis
April 11, 2008
By Joyce Teo
NOT so long ago, unsold Housing Board flats were so plentiful that home buyers could simply walk in and buy a completed unit.
But with fast dwindling stocks, the HDB is streamlining the system for launching batches of unsold flats.
Starting July 1, it will hold fewer launches - but each launch will boast more flats.
It will sell three-room and smaller unsold flats once every three months, instead of once a month. And the bigger flats - three-room premium and above - will be sold half-yearly starting Oct 10, instead of every two months.
Property market observers say this will make life easier for urgent home buyers.
PropNex chief executive Mohamed Ismail said it will help unsuccessful buyers avoid the anxiety of having to re-apply for a dwindling pool of unsold flats every month or two.
An economic downturn in the late 1990s resulted in the excess stock of unsold flats.
'With the progressive clearance of these unsold flats, the number of ready-built flats available for sale will decline and the sales launches for unsold flats will become less frequent over time,' said the HDB in a statement yesterday.
HDB launched the final bi-monthly sales exercise yesterday.
Already, demand is strong. As at 5pm, 1,752 applications had been made for 490 four-room and bigger flats in the north and west zones. The 76 four-room flats, 371 five-room flats and 43 executive flats are in various towns such as Bukit Batok, Jurong East and Yishun.
From now on, the board will also be consolidating the supply of unsold four-room and bigger flats in a single launch. They were previously grouped under three sectors - north and west, north-east and established towns.
There is also good news for first-time buyers. Responding to public feedback, the HDB will now set aside 90 per cent of the flat supply in these exercises for first-timer applicants, similar to its practice for the build-to-order (BTO) scheme.
They will also enjoy double the number of chances compared to regular applicants under the ballot to determine their queue position.
Still, HDB encourages those needing a flat urgently or wishing to live in mature estates to con- sider a resale flat.
But not all home-hunters can afford a resale flat as they cost more and typically, require a fairly large cash-over-valuation sum, agents said.
Serious buyers should look to the BTO system, where projects are built only when a majority of units are booked, as this will be the main way the HDB will sell new flats from now on.
The catch is that buyers have to wait about three years for their flats to be built.
By Joyce Teo
NOT so long ago, unsold Housing Board flats were so plentiful that home buyers could simply walk in and buy a completed unit.
But with fast dwindling stocks, the HDB is streamlining the system for launching batches of unsold flats.
Starting July 1, it will hold fewer launches - but each launch will boast more flats.
It will sell three-room and smaller unsold flats once every three months, instead of once a month. And the bigger flats - three-room premium and above - will be sold half-yearly starting Oct 10, instead of every two months.
Property market observers say this will make life easier for urgent home buyers.
PropNex chief executive Mohamed Ismail said it will help unsuccessful buyers avoid the anxiety of having to re-apply for a dwindling pool of unsold flats every month or two.
An economic downturn in the late 1990s resulted in the excess stock of unsold flats.
'With the progressive clearance of these unsold flats, the number of ready-built flats available for sale will decline and the sales launches for unsold flats will become less frequent over time,' said the HDB in a statement yesterday.
HDB launched the final bi-monthly sales exercise yesterday.
Already, demand is strong. As at 5pm, 1,752 applications had been made for 490 four-room and bigger flats in the north and west zones. The 76 four-room flats, 371 five-room flats and 43 executive flats are in various towns such as Bukit Batok, Jurong East and Yishun.
From now on, the board will also be consolidating the supply of unsold four-room and bigger flats in a single launch. They were previously grouped under three sectors - north and west, north-east and established towns.
There is also good news for first-time buyers. Responding to public feedback, the HDB will now set aside 90 per cent of the flat supply in these exercises for first-timer applicants, similar to its practice for the build-to-order (BTO) scheme.
They will also enjoy double the number of chances compared to regular applicants under the ballot to determine their queue position.
Still, HDB encourages those needing a flat urgently or wishing to live in mature estates to con- sider a resale flat.
But not all home-hunters can afford a resale flat as they cost more and typically, require a fairly large cash-over-valuation sum, agents said.
Serious buyers should look to the BTO system, where projects are built only when a majority of units are booked, as this will be the main way the HDB will sell new flats from now on.
The catch is that buyers have to wait about three years for their flats to be built.
Saturday, April 05, 2008
Wednesday, April 02, 2008
HDB and private property prices up in Q1 flash estimates
Channelnewsasia: 01 April 2008
Private residential property prices in Singapore rose 4.2 percent in the first quarter this year, according to the latest preliminary estimates from the Urban Redevelopment Authority.
The pace was slower than the 6.8 percent clip recorded in the fourth quarter of last year.
On a quarter-on-quarter basis, the biggest rise in property prices for non-landed properties came from outside central region - up 4.8 percent in the January-March quarter compared with the October-December period.
Properties in the prime districts of 9, 10 and 11, as well as the downtown area and Sentosa, rose 4.4 percent on quarter.
Prices in the rest of the central region increased 3.9 percent in the first quarter from the previous three months.
The preliminary estimates were based on transaction prices given in caveats lodged during the first 10 weeks of the quarter, as well as the number of new units sold.
Meantime, the Housing and Development Board (HDB) said prices of HDB resale flats rose 3.4 percent in the January to March period over the previous three months. This was lower than the 5.7 percent increase in the fourth quarter.
Both the URA and HDB will release final figures at the end of April.
The URA said that as at 4th Quarter 2007, there are about 64,900 private residential units in the pipeline, of which about 56,100 new private housing units are expected to be completed between 2008 and 2011.
There are also some 38,300 units that have yet to be put on sale by developers.
As for the supply of government flats, the HDB said it had made available in the first quarter of this year some 1,100 new flats in two Build-To-Order (BTO) projects in Punggol and Yishun.
It said that depending on demand, there could be another 5,000 new BTO flats in towns such as Punggol, Sengkang, Woodlands and Bukit Panjang.
The total planned BTO supply of 6,100 new flats for January till September 2008 will surpass the annual BTO flat supply in 2007 and 2006.
This new supply of flats will be in addition to those offered under Balloting Exercises for surplus replacement SERS and other flats, as well as the planned release of three Design-and-Build sites in Simei, Toa Payoh and Bedok with some 1,500 flats in the first half of 2008. - CNA/sf
The pace was slower than the 6.8 percent clip recorded in the fourth quarter of last year.
On a quarter-on-quarter basis, the biggest rise in property prices for non-landed properties came from outside central region - up 4.8 percent in the January-March quarter compared with the October-December period.
Properties in the prime districts of 9, 10 and 11, as well as the downtown area and Sentosa, rose 4.4 percent on quarter.
Prices in the rest of the central region increased 3.9 percent in the first quarter from the previous three months.
The preliminary estimates were based on transaction prices given in caveats lodged during the first 10 weeks of the quarter, as well as the number of new units sold.
Meantime, the Housing and Development Board (HDB) said prices of HDB resale flats rose 3.4 percent in the January to March period over the previous three months. This was lower than the 5.7 percent increase in the fourth quarter.
Both the URA and HDB will release final figures at the end of April.
The URA said that as at 4th Quarter 2007, there are about 64,900 private residential units in the pipeline, of which about 56,100 new private housing units are expected to be completed between 2008 and 2011.
There are also some 38,300 units that have yet to be put on sale by developers.
As for the supply of government flats, the HDB said it had made available in the first quarter of this year some 1,100 new flats in two Build-To-Order (BTO) projects in Punggol and Yishun.
It said that depending on demand, there could be another 5,000 new BTO flats in towns such as Punggol, Sengkang, Woodlands and Bukit Panjang.
The total planned BTO supply of 6,100 new flats for January till September 2008 will surpass the annual BTO flat supply in 2007 and 2006.
This new supply of flats will be in addition to those offered under Balloting Exercises for surplus replacement SERS and other flats, as well as the planned release of three Design-and-Build sites in Simei, Toa Payoh and Bedok with some 1,500 flats in the first half of 2008. - CNA/sf
Punggol River set for big change
Source : The Straits Times (10 Mar 2008)
Work starts on $7.13m project to create reservoir park with man-made island by 2010.
WORK to transform the Punggol River into a scenic reservoir park, complete with a man-made island, got off the ground yesterday.
Prime Minister Lee Hsien Loong, who was at the official opening of the adjoining Anchorvale Community Club in Sengkang, symbolically released the first piece of the floating island - a clump of soil and grass - into the water.
For its design, the $7.13 million project will draw inspiration from a nearby fruit park being developed by the National Parks Board. Its pavilions will be shaped like mangosteens and its benches, like limes.
Work will be completed by 2010.
Punggol River is the first of five sites to be improved this year under the Active, Beautiful, Clean (ABC) Waters programme.
Launched by national water agency PUB in 2006, the $200 million programme is an ambitious island-wide revamp of 28 waterways.
The aim is to rejuvenate Singapore's drainage and water-supply infrastructure, including the canals and reservoirs, and turn it into a scenic network of streams, rivers and lakes where people can enjoy water activities and even commute.
Giving a preview of the projects during the Budget debate a fortnight ago, Minister for the Environment and Water Resources Yaacob Ibrahim said, for example, that the Lower Seletar Reservoir would sport a heritage bridge, featuring story panels which will tell of the area's kampung history.
Work on the pilot projects of Kolam Ayer and the Bedok and MacRitchie reservoirs is in its final phases and will be unveiled this year.
'With these projects, we hope to bring waterfront living to the heartland, improve the quality of our living environment and enhance property values,' said Dr Yaacob.
Related posts:
1 Landscape design contest for Punggol waterway
2 Announcing Punggol Waterway Competition Results
3 Punggol Waterfront Housing Design Competition
4 Punggol Waterway Shapes Up
5 Works to begin on Punggol Waterway
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