Wednesday 27 November 2013

Lower property taxes for 95% owner-occupied homes in 2014

SINGAPORE - Most owner-occupied homes will have to pay less in property tax next year, the Inland Revenue Authority of Singapore (IRAS) said on Tuesday.
Under the new Progressive Property Tax Rates regime announced during Budget 2013, all owner-occupied HDB flats and three quarters of owner-occupied private homes - or 95 per cent of owner-occupied homes - will see lower property tax bills.
Taking into account non-owner-occupied homes as well, 80 per cent of all homes will pay lower property tax in 2014.
With the new property tax structure, the Annual Value (AV) exemption threshold for which no tax applies will be $8,000, up from $6,000 previously. Owners who live in their own homes will not have to pay property tax on the first $8,000 of the Annual Value (AV) of their properties from Jan 1, 2014.
The new property tax structure also increases the progressivity of the property tax structure by taxing properties with higher AVs more.
A property's AV, which Iras reviews annually, is based on the estimated annual market rent of the property if it was to be let out. This is then used as a basis to compute the property tax payable.
The AV of three to five-room HDB flats will be revised next year, as market rents for these flats have increased by about 3 per cent since the last revision in January this year.
There will be no change to the AV of the other types of flats as rents on these flats have remained largely the same.
This means that all one and two-room HDB owner-occupiers will continue to pay no property tax.
Other HDB owner-occupiers will enjoy property tax savings ranging from $28 to $40 in 2014, IRAS added.
In total, 80 per cent of all homes will face lower property tax in 2014.
The property tax payable for HDB owner-occupied flats in 2014 are as follows:
AV and Property Tax for Owner-Occupied Private Residential Property
The market rents of 70 per cent of private residential properties over the past year have remained largely the same since the last AV revision. Only 30 per cent saw an increase in AV. Under the new property tax structure, 74 per cent of private owner-occupiers will pay less tax in 2014.
Property tax rates for non-owner-occupied residential properties with AVs above $30,000 will be increased gradually from January 1.
With this change, 74 per cent of non-owner-occupied private residential properties and HDB flats will have higher property taxes after applying the new tax rates on their 2014 AVs.
Property owners will receive their property tax notices and bills by the end of this year, and are reminded to pay their property tax by January 31.

Tuesday, Nov 26, 2013
Source: AsiaOne

Monday 25 November 2013

Can you use your CPF to repay housing loans after 55?

Whether your CPF can be used to repay housing loans after 55, depends on how much CPF savings you have at 55, and how much you have already used for housing. 

When you turn 55, a Retirement Account (RA) is created using savings from first your Special Account, then Ordinary Account (OA) to meet the Minimum Sum (MS) relevant to your cohort. While the MS provides monthly payouts from your draw down age, the balance in your OA can be used for housing loan repayments. 

Members who are able to set aside more than half of the MS, will be able to use the amount in excess of half of the MS for housing loan repayments. 

For example: 


If you continue working after 55, your CPF OA contributions can also be used for housing loan repayments. 

However, housing withdrawal limits may apply. This is to safeguard members from overspending on their housing loan repayments at the expense of their retirement savings.

Source: CPF

Wednesday 20 November 2013

Singapore Draft Master Plan 2013

Developed as an inter-agency effort, the Master Plan features a comprehensive and integrated planning approach that ensures our social and economic needs are met, while maintaining a liveable and sustainable environment.
In reviewing the Master Plan, we balance all major land needs in collaboration with relevant government agencies and take into account public feedback gained through our engagement process, before finalising the plans.

PLANNING FOR SINGAPORE’S FUTURE

Singapore is economically vibrant and one of the most liveable cities in the world. This is a result of our comprehensive and long-term approach in land use planning. This integrated approach is needed to optimise the use of Singapore’s limited land, to meet the current and future needs of our people. There are difficult trade-offs, but we try our best to plan ahead for the needs of current and future generations, considering social, economic and environmental factors in a holistic manner.

DRAFT MASTER PLAN 2013

The Draft Master Plan 2013 is driven by the vision of an inclusive, highly liveable, economically vibrant and green home for all Singaporeans. As a small city-state, we have to ensure that sufficient land is available to accommodate a whole range of land uses, including greenery and other critical needs such as housing, schools and employment centres.
We strive to plan for a quality living environment with amenities for all ages within reach, bringing jobs closer to homes, as well as creating green, healthy and connected towns with strong communities united in diversity.
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The planning strategies to achieve the vision for Draft Master Plan 2013 are presented through these six key focuses.
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The Draft Master Plan 2013 will continue to enhance the liveability of Singapore across all areas. Singaporeans can look forward to good quality living environments and a variety of housing options with supporting amenities to serve residents of all ages.
Government agencies will continue to actively work together to provide public amenities closer to homes, with more co-located facilities for greater convenience. Public facilities and spaces within easy reach also serve as social spaces for community bonding, and enable seniors to continue living in environments they feel at home in. As Singapore develops and older towns are rejuvenated, we will continue to ensure that the character of each town remains special and distinctive.
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Land will be set aside to sustain Singapore as a vibrant economy to provide a wide variety of jobs and opportunities that will meet the needs and aspirations of our people. As we strengthen our city area and other employment centres, we will also make a greater effort to decentralise jobs and create new hubs for businesses.
As part of the North Coast Innovation Corridor, we will see the emergence of the Woodlands Regional Centre, the Punggol Learning Corridor and Creative Cluster. New industrial estates such as Jalan Bahar / Wenya / Tengah, Lorong Halus and Seletar West will also be progressively developed.
In future, Singapore residents can look forward to job opportunities in the northern, southern, eastern and western regions of Singapore.
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By taking a holistic approach to planning and balancing our needs, we have managed to safeguard land for nature reserves, nature areas and parks. Earlier this year, we have added two new sites to our list of Nature Areas. While we will not be able to conserve every local green space, we have conserved a significant and representative segment of our native ecosystem through conscientious planning.
We will continue to safeguard land for greenery to ensure that parks and green spaces are well distributed so at least 90% of our residents will live within 400m walking distance of a park. More open spaces and local parks have been planned, and residents can also look forward to upgraded green spaces and facilities with fresh recreational options. Efforts to increase accessibility to parks will continue, with the Round Island Route anchoring Singapore’s green network.
Agencies will plan for eco-corridors to strengthen Singapore’s biodiversity and connections between our existing nature areas to sustain our rich natural systems, providing safe environments for nature to flourish as well as green havens where residents can find relief from the intensity of urban life. We will also continue to make creative use of functional water bodies such as reservoirs, canals and drains for recreation.
Under SSC’s Sports Facilities Master Plan, new spaces for sports will be created and existing ones will be enhanced to cater to the community’s needs. A tiered approach of sporting facilities will provide a network of venues for sports and leisure activities for various sporting needs at the national, regional, town and neighbourhood level. There will be more common spaces (e.g. integrated community sports hub and community playfields) for the community to interact and bond through sports.
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Within the Draft Master Plan 2013 are initiatives to protect our built heritage and social memory. Existing areas with distinctive identities will be enhanced, while new ones will be nurtured in community-centric ways.
To make Singapore an endearing home for all, we will provide more community spaces to foster social interaction, and integrate local identity and heritage into the development and design of future towns and projects. Our efforts will also be focused on strengthening collaboration with local communities and safeguarding our local identity via conservation efforts and the designation of identity nodes.
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As outlined in the Land Transport Master Plan 2013, our transport network will be expanded with an emphasis on green and sustainable transportation modes, such as public transport, cycling and walking. This will bring about greater connectivity for all commuters over the next 10 to 15 years. Agencies will continue to be guided by the vision of a more connected Singapore, with greater accessibility to public transport and a reduced reliance on private cars as a mode of commute.
The rail network will double to about 360km by 2030, so that 80% of all homes are within a 10-minute walk of an MRT station. Bus services will be enhanced with increased fleets, and there will be more integrated transport hubs provided for more convenient journeys. Infrastructure will be put in place to encourage cycling as an alternative mode of transport for both commuting and leisure. Pedestrian connectivity within a 400m radius of MRT stations will be further improved through a network of covered linkways that connect to activity-generating hubs in the vicinity.
With these enhancements to our public transport services, our towns will possess more options for walking and cycling, and ultimately lead to sustainable living environment.
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Well-designed public spaces are essential to the enjoyment of city life, and to make Singapore more attractive and liveable for all. More public spaces will be set aside to create and realise new shared community spaces. The successful implementation of these projects will require closely coordinated efforts between government agencies and collaboration with the community.

MOVING FORWARD

The Master Plan supports the needs of current and future generations of Singaporeans. As a city-state, we have a diverse range of land use needs, and we cannot predict the entirety of these needs nor the forms that they will take in future. Thus, we review the Master Plan regularly to refine it and take into account changing developmental needs.
We continue to explore better use of Singapore’s land by consolidating activities that require a large area, such as military training, golf courses and farming in order to release more land for other uses. In addition to land reclamation as a strategy for Singapore to expand our physical capacity, we will also continue to explore innovative ways to use underground space, such as for infrastructural, industrial and commercial developments.
Source: URA
Wednesday, Nov 20, 2013

Monday 18 November 2013

MINIMUM SUM SCHEME 2013

The MS was set at $80,000 in 2003 and is being raised gradually until it reaches $120,000 (in 2003 dollars) in 2015. The MS will be adjusted yearly for inflation.
55th birthday on or afterMS
(in 2003 dollars)
MS
(after adjustment for inflation)
1 July 2003$80,000$80,000
1 July 2004$84,000$84,500
1 July 2005$88,000$90,000
1 July 2006$92,000$94,600
1 July 2007$96,000$99,600
1 July 2008$100,000$106,000
1 July 2009$104,000$117,000
1 July 2010$108,000$123,000
1 July 2011$112,000$131,000
1 July 2012$113,000$139,000
1 July 2013$115,000$148,000
1 July 2014To be announced} To be
1 July 2015$120,000} announced
Setting aside the MS when you reach 55 years old ensures that you have a regular income from your drawdown age (DDA) to support a basic standard of living.
Year of BirthDrawdown age
1943 and before60
1944 to 194962
1950 and 195163
1952 and 195364
1954 and after65
When you reach 55 years old, your Special Account (SA) savings, followed by your Ordinary Account (OA) savings will be transferred to your Retirement Account (RA) to meet your MS.

If the savings in your SA and OA are not enough to make up the MS, your property which was purchased using CPF savings will be automatically pledged, for up to half of your MS, to make up the difference. The pledge amount will be the amount of CPF used for the property or the Minimum Sum shortfall, whichever is lower.

If you sell the property, you will need to refund the CPF that was used to buy it and the accrued interest. The amount refunded will be used to top up to the MS that applies to you, and the current Medisave Required Amount (MRA) of $38,500. The balance of the housing refunds will then be paid to you automatically. Also, if you had withdrawn your RA savings by pledging your property, you need to refund the amount withdrawn from your RA upon the property sale to redeem the pledge.

If there is still a MS shortfall in your RA after pledging your property, a portion of the new inflows like working contributions, voluntary contributions, government top-ups and other refunds received after 55 years old will be used to make up the shortfall upon your subsequent CPF withdrawals.

After setting aside your MS and current MRA, you can choose to withdraw the remaining cash balances in your OA and SA, or continue to keep your savings in CPF to earn interest.

For full info: CPF Minimum Sum
Source: CPF

Resale Checklist for Buyers Effect From 1st Dec 2013

The Resale Checklist highlights the important policies and procedures that you should take note of before buying a resale flat. The checklist must be completed before you exercise the Option to Purchase



Guide to Submit the Resale Checklist via the Resale Checklist for Sellers/Buyers e-Service

What’s New?

The Resale Checklist has gone ‘e’! From 24 October 2013, you can complete and submit the checklist online via the Resale Checklist for Sellers/Buyers (e-Service). From 1 December 2013, the HDB will only accept Resale Checklists submitted via this e-Service.

For buyers who have not engaged the services of a salesperson

Step 1
Step 2
  • You and all the co-applicants (if any) must go through the items in the Resale Checklist.
  • You will need to provide the particulars of all the buyers and your email address.
Step 3
  • Upon completing the checklist and reviewing the information click the ‘Submit’ button to submit the checklist to the HDB.
  • An acknowledgement page with a checklist serial number will be generated upon successful submission of the checklist. The acknowledgment page will also be sent to all buyers by e-mail.

For buyers who have engaged the services of a salesperson

Step 1
  • If you have engaged the services of a salesperson, your salesperson is required to go through and complete the checklist with you.
  • The salesperson will first click on the ‘Submit New Checklist’ button on the Resale Checklist for Sellers/Buyers (e-Service) and log in with his/her SingPass.
Step 2
  • The salesperson will need to provide his particulars and the particulars of all the buyers, including name, NRIC number and email address.
  • The salesperson is required to go through all the items in the checklist with all the buyers.
Step 3
  • Upon completing the checklist and reviewing the information click the ‘Submit’ button to forward the checklist to one of the buyers for endorsement.
  • The checklist has to be endorsed by the buyer by the next day from the date the salesperson completes the checklist.
Step 4
  • The buyer who is endorsing the checklist (you) will click on the ‘Retrieve Completed Checklist’ button on the Resale Checklist for Sellers/Buyers (e-Service) and log in with your SingPass. You are required to provide the serial number of the checklist that the salesperson had completed.
  • You will need to review the information provided and confirm that the salesperson has gone through the checklist with you and all co-applicants(if any).
  • You will need to click the ‘Submit’ button to submit the checklist to the HDB.
  • An acknowledgement page with the same checklist serial number will be generated upon successful submission of the checklist. The acknowledgment page will also be sent to you by e-mail.


Important Notes:

  • Buyers can only exercise the Option to Purchase after completing the checklist.
  • The checklist serial number is required when submitting the resale application.
  • If you are not able to submit your resale application within 6 months after the date the checklist is completed, you will need to resubmit a new checklist. This is to ensure that buyers are aware of the latest policies on buying an HDB flat.
  • All buyers and their salesperson, if any, are required to sign on the completed checklist during the resale First Appointment. The completed checklist will be printed by the HDB for your signing.


For full info: Resale Checklist
Source: HDB

Sunday 17 November 2013

HDB Resale Price Index 3Q 2013

The HDB Resale Price Index tracks the overall price movement of the public residential market. The index is calculated using resale transactions registered across various towns, flat types and models, with the fourth quarter of 1998 as the base period (i.e. index has a value of 100 in 4Q98). 

The Index is used by comparing how it changes from one period to another. For example, if the index increases from 100 to 108 in one year, it means that on the whole, HDB resale flat prices increased by about 8% over this period. 



PRICE INDEX OF HDB RESALE FLATS
Source: HDB

RENTAL INDICES OF NON-LANDED PROPERTIES BY LOCALITY IN SINGAPORE 3Q 2013



Quarter  CCR* RCR^ OCR
3Q/2009  133.3 131.4 118.3
4Q/2009  134.5 131.5 118.3
1Q/2010 141.6 136.8 124.0
2Q/2010  150.6 143.8 131.6
3Q/2010  156.0 149.1 136.3
4Q/2010  159.5 154.7 140.8
1Q/2011  161.4 155.3 143.0
2Q/2011  162.8 156.7 145.1
3Q/2011  163.5 158.2 146.6
4Q/2011  163.6 160.1 147.4
1Q/2012  164.4 160.7 147.7
2Q/2012  164.2 161.8 149.2
3Q/2012  165.1 163.4 151.6
4Q/2012  166.2 164.4 153.4
1Q/2013  167.6 164.5 154.6
2Q/2013  168.4 164.7 154.6
3Q/2013  169.0 165.7 153.4


* Core Central Region comprises Postal Districts 9, 10, 11, Downtown Core Planning Area and 
Sentosa. A map of Central Region showing the Core Central Region (CCR) and the Rest of Central 
Region (RCR) is available at: http://spring.ura.gov.sg/lad/ore/login/map_ccr.pdf 
^ Rest of Central Region comprises the area within Central Region that is outside postal districts 9, 
10, 11, Downtown Core Planning Area and Sentosa. A map of Central Region showing the Core 
Central Region (CCR) and the Rest of Central Region (RCR) is available at: 
http://spring.ura.gov.sg/lad/ore/login/map_ccr.pdf

RENTAL INDICES OF NON-LANDED PROPERTIES BY LOCALITY 

Source: URA (As on 25th Oct 2013)

NUMBER OF RESALE TRANSACTIONS FOR PRIVATE RESIDENTIAL UNITS BY MARKET SEGMENT IN SINGAPORE 3Q 2013


Core Central Region * Rest of Central Region ** Outside Central Region  Whole Singapore
Period Resale ^ Period Resale ^ Period Resale ^ Period Resale ^
2Q/2010 962 2Q/2010 1537 2Q/2010 2754 2Q/2010 5253
3Q/2010 825 3Q/2010 1382 3Q/2010 2512 3Q/2010 4719
4Q/2010 806 4Q/2010 1265 4Q/2010 2166 4Q/2010 4237
1Q/2011 604 1Q/2011 1016 1Q/2011 1887 1Q/2011 3507
2Q/2011 831 2Q/2011 1307 2Q/2011 2393 2Q/2011 4531
3Q/2011 606 3Q/2011 965 3Q/2011 1736 3Q/2011 3307
4Q/2011 486 4Q/2011 802 4Q/2011 1413 4Q/2011 2701
1Q/2012 376 1Q/2012 692 1Q/2012 1142 1Q/2012 2210
2Q/2012 750 2Q/2012 1126 2Q/2012 1958 2Q/2012 3834
3Q/2012 757 3Q/2012 1130 3Q/2012 1824 3Q/2012 3711
4Q/2012 808 4Q/2012 1002 4Q/2012 1649 4Q/2012 3459
1Q/2013 407 1Q/2013 622 1Q/2013 974 1Q/2013 2003
2Q/2013 441 2Q/2013 610 2Q/2013 1024 2Q/2013 2075
3Q/2013 315 3Q/2013 386 3Q/2013 639 3Q/2013 1340

* Core Central Region comprises Postal Districts 9, 10, 11, Downtown Core Planning Area and Sentosa. A map of Central Region 
showing the Core Central Region (CCR) and the Rest of Central Region (RCR) is available at: 
http://spring.ura.gov.sg/lad/ore/login/map_ccr.pdf 
** Rest of Central Region comprises the area within Central Region that is outside postal districts 9, 10, 11, Downtown Core Planning 
Area and Sentosa. A map of Central Region showing the Core Central Region (CCR) and the Rest of Central Region (RCR) is available at: 
http://spring.ura.gov.sg/lad/ore/login/map_ccr.pdf 
^ Data on the number of Sub-sale and Resale units, excluding en-bloc sale units, are collated from caveats lodged at the Singapore 
Land Authority. As the lodging of caveats is voluntary and they do not have to be lodged by a certain date, the statistics published here 
cover only caveats lodged by the cut-off date. The statistics will be updated in the next quarter when more caveats are received. 


NUMBER OF RESALE TRANSACTIONS FOR PRIVATE RESIDENTIAL UNITS BY MARKET SEGMENT 

Source: URA (As on 25th Oct 2013)

Saturday 16 November 2013

New private home sales plunge 19%

Sales of new private homes in October reached 1,009 units excluding executive condominiums (ECs), revealed data from the Urban Redevelopment Authority (URA). This is a 19 percent decline from the 1,246 units sold in September.
The drop was partly attributed to fewer launches of 1,124 units in October compared with September’s 1,806 units.
Over 90 percent of new home sales in the month came from the Rest of Central Region (RCR) and Outside Central Region (OCR). According to a statement from PropNex Realty, this is due to the presence of larger projects with more units available for sale and their more budget-friendly launch prices compared to other regions.
The five best-selling projects for October are:-
1.    The Inflora – 388 units sold at a median price of S$952 psf
2.    Nine Residences – 96 units moved at S$1,107 psf
3.    The Venue Residences – 39 units found buyers at S$1,457 psf
4.    Grandview Suites – 37 units sold at S$1,301 psf
5.    Sky Vue – 36 units sold at S$1,434 psf
Commenting on the strong demand seen for The Inflora, Mohamed Ismail, CEO of PropNex, said: “99 percent was sold after one week of its launch, and I believe the sweetener is the right pricing (at median price of less than S$1,000 psf) with the right quantum which led to the overwhelming demand.”
Moving forward, Ismail expects sales volume to stay at the current level of about 1,000 units per month for the rest of the year due to the government measures and tough economic conditions.

Friday, Nov 15, 2013
Source: PropertyGuru

Global property measurement standard to be ready next year

[SINGAPORE] A new property measurement standard, which will standardise the way valuation is conducted around the world, could be rolled out as early as June next year, following the formation of the first International Property Measurement Standards Coalition (IPMSC).
The draft of this first standard, which will target office space, is being finalised by the standards setting committee, and will likely be sent out for consultation in January next year before it returns to the coalition for approval, hopefully in June or July next year, said Michael Newey, president of the Royal Institution of Chartered Surveyors (Rics).
"In theory, if you are valuing a building here in Singapore, and you're valuing a building in Hong Kong, and one in London or Sydney, it's the same methodology. The problem is that properties are measured in hugely different ways around the world," said Mr Newey.
Using residential property valuation as an example, floor space in Spain would include outdoor swimming pools, while in parts of the Middle East it would include the hypothetical maximum number of floors that can be built on existing foundations, said Mr Newey.
In India on the other hand, there is no standard measurement basis, and residential and commercial property are sold or leased on the basis of "super area", said Sachin Sandhir, managing director for Rics South Asia.
Given that the super area includes common areas and amenities including lift lobbies, terraces and common spaces, there can be a difference of anything between 25 per cent and 50 per cent between the super area and the actual usable area, he said.
The same problem occurs when measuring commercial property space across countries.
Using Rics net internal area - the standard used in the United Kingdom - as a base, "leased area", depending on where in the world you are looking at it, can vary by up to 24.1 per cent according to Jones Lang LaSalle's global leased space comparison tool.
This is largely due to the various elements, including columns, floor lift lobby, lifts and other common areas, which can potentially be included in the standard leasing practice of different countries.
Looking at it from a valuation standpoint, this undermines the issue of transparency and introduces a risk element to the valuation, said Mr Newey.
"This means you have a risk element to whether the financial reporting of companies' assets particularly were correct," he added.
It is for this reason that the IPMSC was created in May this year - to address the creation of international property measurement standards (IPMS).
To date, more than 20 professional bodies from around the world have joined the coalition and have undertaken to adopt the standards. In addition, Dubai was the first government to officially support the IPMS in September this year.
Mr Newey said that he had a "positive meeting" with the Urban Redevelopment Authority, to raise awareness.
Following the roll-out of office standards, the coalition will look into other commercial assets including retail, warehousing and industrial. This will culminate in the creation of valuation standards for residential property in 2015.

Thursday, Nov 14, 2013
Source: STProperty