Friday 27 March 2015

3 values from home ownership, a legacy of Mr Lee Kuan Yew - AsiaOne

One of Mr Lee Kuan Yew's greatest legacies is home ownership. He believed that home ownership is a key pillar of a strong society.

His leadership has guided the creation of one of the most vibrant nations in the world and, in his words, it started with home ownership.
In opening the Pinnacle@Duxton, he remarked, "If all the HDB flats built over the past 50 years were rental flats, Singapore would be a very different society today."

"We would not have the stability, progress and prosperity that the stake in home ownership of a growing asset has made possible."

At SRX Property, we looked through Mr Lee's speeches and writings and identified three values of home ownership: community, responsibility, and prosperity.

In other words, Mr Lee believed that home ownership glues different ethnic groups together. A home is something that everyone can aspire to and achieve, regardless of race, creed or culture.

It's possible for different people to build a community together because each owner has a stake in their home, and, thus, the community.

He said, "The pride people have in their homes prevents our estates from turning into slums, which is the fate for public housing in other countries."

He was right. There is nothing like HDB in the entire world. It is an example of a public-private co-operation that has resulted in a housing system that has no equal. No country has as a high an ownership rate as Singapore's 90 per cent.

This means that most people will take responsibility for their own homes as well as put pressure on the neighbours to keep the neighborhood clean and vibrant.
Finally, Mr Lee saw homeownership as a path to prosperity.

He said, "If Singapore prospers, their flat values will appreciate and they will share in the growth. Home ownership motivates Singaporeans to work hard and upgrade to better flats for a better quality of living. The HDB story reflects the social mobility in Singapore."

Most of us work to provide for our families.

As we work to put a roof over our heads, food on the table, and better ourselves, we are contributing to the growth of Singapore, which in turn causes our homes to appreciate, which in turn, allows us to afford more expensive homes, education, retirement, and other important human endeavours.

It's a virtuous circle that starts with home ownership.

Most agree that property ranks up there as one of the most important topics of conversations when it comes to Singaporeans.

When we, at SRX Property, asked people what comes to mind when they hear the word "home", we usually hear word associations like comfort, stability, and family.
We have Mr Lee to thank for that.


Source: AsiaOne (27 Mar 2015)

Thursday 26 March 2015

3 Values from Home Ownership, a Legacy of Mr. Lee Kuan Yew - SRX

Arguably one of Mr. Lee Kuan Yew’s greatest legacies to Singapore and to the world is his vision that home ownership is a key pillar of a strong society.
His leadership has guided the creation of one of the most vibrant nations in the world and, in his words, it started with home ownership. 
In opening the Pinnacle@Duxton, he remarked, “If all the HDB flats built over the past 50 years were rental flats, Singapore would be a very different society today.  We would not have the stability, progress and prosperity that the stake in home ownership of a growing asset has made possible.”
At SRX Property, we looked back through Mr. Lee’s speeches and writings and identified three values of home ownership:  community, responsibility, and prosperity.
In other words, Mr. Lee believed that home ownership acts as a glue to hold different ethnic groups together.  A home is something that everyone can aspire to and achieve, regardless of race, creed or culture.
It’s possible for different people to build a community together because each owner has a stake in their home, and, thus, the community.
He said, “The pride people have in their homes prevents our estates from turning into slums, which is the fate for public housing in other countries.”
He was right.  There is nothing like HDB in the entire world.  It is an example of a public-private cooperation that has resulted in a housing system that has no equal.  No country has as a high an ownership rate as Singapore’s 90%. 
This means that most people will take responsibility for their own homes as well as put pressure on the neighbors to keep the neighborhood clean and vibrant. 
Finally, Mr. Lee saw homeownership as a path to prosperity.    
He said, “If Singapore prospers, their flat values will appreciate and they will share in the growth.  Home ownership motivates Singaporeans to work hard and upgrade to better flats for a better quality of living.  The HDB story reflects the social mobility in Singapore.”
Most of us work to provide for our families.  As we work to put a roof over our heads, food on the table, and better ourselves, we are contributing to the growth of Singapore, which in turn causes our homes to appreciate, which in turn, allows us to afford more expensive homes, education, retirement, and other important human endeavors.   It’s a virtuous circle that starts with home ownership.
Most people will agree that property ranks up there as one of the most important topics of conversations when it comes to Singaporeans. 
When we, at SRX Property, ask people what comes to mind when they hear the word “home”, we usually hear word associations like comfort, stability, and family.  We have Mr. Lee to thank for that. 
Source: SRX (26 Mar 2015)

Monday 23 March 2015

Singapore’s first Prime Minister Lee Kuan Yew dies aged 91 - Channel NewsAsia

Mr Lee leaves behind two sons and a daughter.

SINGAPORE: Mr Lee Kuan Yew, who was Singapore’s first Prime Minister when the country gained Independence in 1965, has died on Monday (Mar 23) at the age of 91.
"The Prime Minister is deeply grieved to announce the passing of Mr Lee Kuan Yew, the founding Prime Minister of Singapore. Mr Lee passed away peacefully at the Singapore General Hospital today at 3.18am. He was 91," said the PMO.
Arrangements for the public to pay respects and for the funeral proceedings will be announced later, it added.
Mr Lee, who was born in 1923, formed the People’s Action Party in 1954, then became Prime Minister in 1959. He led the nation through a merger with the Federation of Malaysia in 1963, as well as into Independence in 1965.
He leaves behind two sons – Lee Hsien Loong and Lee Hsien Yang – and a daughter, Lee Wei Ling.
HIS EARLY YEARS
From early in his life, Mr Lee Kuan Yew had braced himself to face history’s tumultuous tides head-on.
His efforts to build a nation were shaped by his early life experiences.
For the young Lee Kuan Yew, the Japanese Occupation was the single most important event that shaped his political ideology. The depravation, cruelty and humiliation that the war wreaked on people made it clear to Mr Lee that, to control one’s destiny, one had to first gain power.
Born to English-educated parents Lee Chin Koon and Chua Jim Neo, Mr Lee was named “Kuan Yew” which means “light and brightness”, but also “bringing great glory to one’s ancestors”. He was given the English moniker “Harry” by his paternal grandfather.
He continued the family tradition of being educated in English, and read law at Cambridge University after excelling as a student at Raffles College. His experience of being as a colonial subject when he was in England in the late 1940s fuelled his interest in politics, while also sharpening his anti-colonial sentiments.
He said later: “I saw the British people as they were. They treated you as colonials and I resented that. I saw no reason why they should be governing me – they’re not superior. I decided, when I got back, I was going to put an end to this.”
Mr Lee’s political life began right after he returned to Singapore in 1950, when he began acting as a legal adviser and negotiator representing postal workers who were fighting for better pay and working conditions.
He was soon appointed by many more trade unions, including some which were controlled by pro-communists.
In a marriage of convenience to overthrow the British, Mr Lee formed the People’s Action Party in 1954 with these pro-communists and other anti-colonialists.
THE BATTLE FOR MERGER
A key part of winning power at the time was securing the support of the masses, and this meant reaching out to the Chinese-educated, which made up the majority of the population in Singapore. He had taken eight months of Mandarin classes in 1950, and he renewed his Mandarin education five years later, at the age of 32. And within a short time, he had mastered the language sufficiently to address public audiences.
In the mid-1950s, riots broke out that fuelled tensions between the local Government and the communist sympathisers in the Chinese community. A few pro-communist members of the PAP were arrested.
Leading the PAP, Mr Lee fought for their release and ran a campaign against corruption in the 1959 elections for a Legislative Assembly. The PAP won by a landslide, and Mr Lee achieved what he had set out to do – Singapore was self-governing, and he was Prime Minister.
But there were others who would contest the power he acquired, and they had different political agendas. It became apparent that leading Singapore meant having to break ranks with some of his anti-colonial allies – the pro-communists.
Mr Lee said of the pro-communists: “They were not crooks or opportunists but formidable opponents, men of great resolve, prepared to pay the price for the communist cause.”
Mr Lee and his team were well aware of the hard fight they faced against the pro-communists, having seen up close how they could mobilise the masses through riots and strikes to paralyse a Government. And success in this fight depended a lot on Mr Lee’s leadership.
The battle-lines were drawn sharply over the proposal for merger with Malaysia – the non-communists were for it, and the pro-communists were against it.
There were compelling economic reasons for merger, but Mr Lee was also clear about its political necessity. To him, merger was absolutely necessary to prevent Singapore and Malaya being “slowly engulfed and eroded away by the communists”.
He believed that building a common identity between individuals on either side of the Causeway would propel them across racial and religious divides towards a common land. Part of this was making sure that people felt that they are wanted, and not “step-children or step-brothers, but one in the family and a very important member of the family”.
He campaigned relentlessly and tirelessly for merger, speaking over the radio, and in nearly every corner of Singapore. After an intense public contest that pitted him against his political opponents, Mr Lee won and most Singaporeans voted in favour of the union with Malaysia.
On Sep 16, 1963, which coincided with his 40th birthday, Mr Lee declared Singapore’s entry into the Federation of Malaysia.
But this did not mean an easy working relationship between the two sides, and serious differences emerged. Mr Lee wanted a “Malaysian Malaysia”, where Malays and non-Malays were equal, and he would not condone a policy that supported Malay supremacy.
Differences between the two sides grew – from conflicts between personalities and disagreements about a common market, to the PAP’s participation in Malaysia’s general election. Malaysian politicians considered it a breach of understanding for the PAP to take part in mainland politics.
Things came to a head over constitutional rights. Mr Lee addressed the Malaysian Parliament in May 1965, in both English and Malay, laying out his case against communal politics.
But a year after racial riots were sparked off by what Mr Lee called Malay “ultras”, creating a deep divide, Singapore separated from Malaysia on Aug 9, 1965. It was a time of great disappointment for Mr Lee, a moment which he said was one of “anguish” for him.
FROM MUDFLAT TO METROPOLIS
And so it was that Singapore became an independent state that day in 1965, but not by choice. The island’s 2 million people faced an uncertain future, and that uncertainty weighed heavily on the man who was leading it.
Left with no hinterland and hardly any domestic market to speak of, Singapore’s only option was for its leaders to fight hard for its survival.
And despite the daunting task that loomed ahead, Mr Lee chose to set his sights on building a country of the future, and he never veered from that vision. In his own words in September 1965: “Here we make the model multiracial society. This is not a country that belongs to any single community -  it belongs to all of us. This was a mudflat, a swamp. Today, it is a modern city. And 10 years from now, it will be a metropolis – never fear!”
But this difficult task was soon made more challenging by another crisis. In 1968, Britain unexpectedly announced its intention to withdraw its troops from Singapore. Mr Lee and his team now had to confront the prospect of a country without its own security forces. Worse, thousands of workers retrenched from the British bases joined the already large numbers of unemployed in the country.
Mr Lee’s good ties with British leaders led them to extend the departure of their forces to the end of 1971. These military bases contributed 20 per cent to the economy and provided jobs for 70,000 people, and the extension of the pull-out date softened the blow to Singapore’s economy.
In the face of these looming challenges, Mr Lee and his team soldiered on to hold the fledgling country together, and to make it work. The vacated British naval bases were used to boost the economy, and efforts were made to attract investors to set up industries on the former British army land.
To survive what was then a hostile neighbourhood, Mr Lee adopted a two-pronged approach to grow the economy.
First, to leapfrog the region and link up with the developed world, for both capital and market initiatives; and second, to transform Singapore into a “first world oasis in a third world region”. With first-world standards of service and infrastructure, Mr Lee saw the potential for Singapore to become the hub for businesses seeking a foothold in the region.
Mr Lee most likely saw the possibilities for Singapore, including eventually enjoying the world’s highest per-capita income, and becoming a leading business centre for Asia. He would have attributed such success to the confidence of foreign investors drawn to the nation’s amicable industrial relations.
Former President S R Nathan remembers Mr Lee’s focused approach: “He emphasised that his duty was to find ways and means of getting more jobs for people, and it was also the duty of the labour movement to help their fellow workers find jobs. And so for that, we needed industrial peace and a certain balance, not exploitation.”
GETTING THINGS DONE
The National Trades Union Congress (NTUC) was formed in 1961 when the PAP split. Led by Mr Devan Nair, a founding member of the PAP, the NTUC led Singapore’s labour movement away from militant trade unionism to one marked by cooperation.
This made Singapore the first in the world to have a tripartite arrangement where workers, employers and the Government came together to discuss general wage levels. This cooperation contributed significantly to harmonious labour relations and, ultimately, to Singapore’s rapid development in the 1970s and 1980s.
Mr Lee firmly believed that growth and development of the country was in the best interests of the workers and their unions. Speaking in 2011, he said: “In other words, growth is meaningless unless it is shared by the workers, shared not directly in wage increases, but indirectly in better homes, better schools, better hospitals, better playing fields, a healthier environment for their families, and for their children to grow up.”
Singapore’s metamorphosis from mudflat to metropolis was not just a physical transformation. Equally remarkable was the transformation of the psyche of an entire population. Within the span of a few decades, Singaporeans came to be seen as a people who could get things done.
Mr Lee played a big part in that change. From the start, he set the pace for excellence. He once told senior civil servants: “I want to make sure every button works, and if it doesn’t when I happen to be around, then somebody is going to be in for a rough time, because I do not want sloppiness.”
Sprucing up a young nation however was not so straightforward. Besides the challenge of ensuring sufficient security for the country’s borders, Mr Lee and his team had a more fundamental problem to tackle – that of a housing crisis.
HOUSING A NATION
Today, the 50-storey Pinnacle on Cantonment Road stands as an icon in Singapore’s 50-year-old public housing landscape. It is built on the site of one of the earliest public housing projects in the country. But housing in the 1950s was a far cry from what it is today. Slums were common when Singapore achieved self-government in 1959, and there was a full-blown housing crisis.
To meet the nation’s acute housing shortage, the PAP set up the Housing and Development Board in 1960. The aim set for it was to build 10,000 homes a year.
Its predecessor – the Singapore Improvement Trust (SIT) – was highly sceptical that the new board would meet its ambitious target. The SIT itself had built only 20,000 flats in its entire 30-year history.
The stakes were high and the difficulties daunting. The PAP, which had just come into power, needed to deliver results fast and gain the trust and confidence of Singaporeans.
There was doubt even with the Government of whether the HDB could get the job done, and a committee was set up to find out if the board had the capability and the materials to complete 10,000 houses as planned. When the committee published its report, the HDB had already completed 10,000 units of housing.
The HDB’s performance was crucial to the PAP’s re-election in 1963.
But it was more than a question of providing affordable homes for the people. The social motive to do this was equally compelling, and public housing helped tighten the weave of Singapore’s social fabric.
Mr Lee felt that it was important to have a rooted population. He said in 2010: “If you ask people to defend all the big houses where the bosses live, and they live in harbours, I don’t think that’s tenable. So we decided from the very beginning that everybody must have a home, every family will have something to defend, and that home must be owner-owned, but they have to pay by instalments over 20, 25, even 30 years. And that home we developed over the years into their most valuable asset.”
Today, more than 80 per cent of Singaporeans now live in subsidised public flats that they can call their own.
Singaporeans now had a personal stake in their country that went beyond feelings of patriotism. They had a physical space they could call home, and a vested interest to defend it.
National Service, aimed at defending the country and ensuring its borders were safe from external aggression, took on a different dimension.
After independence, Singapore was left with just two battalions of the Singapore Infantry Regiment. There was an urgent need to build a substantial defence force. And so National Service was introduced in 1967, with universal conscription making it compulsory for every male Singapore citizen to serve in the armed forces for about two years. It also contributed to promoting racial harmony.
UNIFIED BY LANGUAGE
In multi-racial Singapore, English is the common language used by all races. Mr Lee saw early on that English would be a unifier that would give Singapore an edge in the international arena.
But he also believed that knowing one’s mother tongue would build a sense of belonging to one’s roots, and increase self-confidence and self-respect. And so he championed bilingualism.
In retrospect, Mr Lee said that bilingualism was his most difficult policy to implement. He later admitted he had been wrong to assume that one could be equally fluent in two languages. He said in 2004: “Had I known all the difficulties of bilingualism in 1965, as I know now today, would I have done differently? Yes, in its implementation, but not in its policy. I don’t regret the stress and heavy burdens I put, because the other way would have been a destruction of the chance of building up some form of culture worth preserving.”
Former senior minister of state Ch’ng Jit Koon lauded Mr Lee’s foresight in creating a bilingual society. “If he did not succeed in bringing through our education system based on bilingual education, we will not have the advantage among other countries to tap on China’s economic trade,” he said in 2008.
Indeed, Mr Lee and his team were very sensitive to issues involving race, knowing how combustible such matters could be. The formative years of the PAP, the battles against communism and extremism and the racial riots he lived through meant that Mr Lee never underestimated the potentially explosive nature of race relations.
When it was time to remove the small, dilapidated mosques built on state land, he did so with caution. His plan was to replace these “suraus” with bigger and better mosques in every housing estate through voluntary contributions from the Malay-Muslim community, creating a sense of ownership and pride.
Mr Lee also took special interest in ensuring that Singapore’s different communities would all have a share in its prosperity. He believed better education was one of the keys to uplifting the Malay community.
Cabinet minister K Shanmugam said it would have been easy for politicians in Singapore to appeal to the sentiments of the majority Chinese community to gain political power. But he felt that part of the success of Singapore is due to leaders like Mr Lee, who shunned racial politics.
In an earlier interview in 2003, Mr Shanmugam said: “I think most sensible people in the Indian community, particularly those who went through the earlier struggles, who are older than me, accepted this - that we have the space and we have far more liberty and opportunity in Singapore than we would have if we were 6 per cent in any other society, including India, where many of the so-called upper caste Indians in Singapore would not have had a chance.”
Mr Lee Hsien Loong said that the elder Mr Lee remembered the situation that had existed in Malaysia before Singapore became an independent state. “After we became independent, a point that he always reiterated was – never do to the minorities in Singapore that which happened to us when we were a minority in Malaysia. Always make sure that the Malays, the Indians have their space, can live their way of life, and have full equal opportunities and are not discriminated against. And at the same time, help them to upgrade, improve, move forward,” he said in 2013.
CLEAN AND GREEN
Singapore is widely known for being a clean city, both in terms of its environment as well as governance. It is the least corrupt country in Asia, and according to the World Bank, it is one of the most preferred places in the world to do business.
But it was not always graft-free. Corruption was widely prevalent when Singapore was still a British colony. In the 1959 election, the PAP, then the opposition, campaigned against the Government’s corrupt practices. Mr Lee said at the time: “I am convinced that we will thrive and flourish, provided there is an honest and effective Government here.”
The PAP’s anti-corruption position resonated well with the voters. When the PAP Government took office, Mr Lee and his team turned up in all-white as a promise to the people that their leaders will not stand for corruption and will be “whiter than white”.
Over the years, the leadership’s zero tolerance for corruption earned Singapore a reputation for having a clean and effective Government. Establishing rule of law, public security and safety were fundamental to the success of the PAP.
Mr Lee applied the effort to stay clean to the island’s physical transformation as well. From the outset, he was adamant that urban development in the country did not proceed haphazardly. He had seen how a lack of planning had marred other cities, and was determined that Singapore did not make the same mistake.
Observers say this focus on paving the foundation for Singapore to have a first world environment while becoming a first world economy led to the good environment actually becoming an economic asset. And some felt that the efforts to green Singapore gave a certain softness and calmness to the country, and was not just an aesthetic benefit but spoke to the soul of Singaporeans.
Mr Lee expressed his passion for greening Singapore in practical ways. He planted a tree every year, a tradition he started in 1963. This kicked off an island-wide tree-planting initiative and launched Tree Planting Day, a national campaign that helped Singapore earn its reputation as a Garden City.
Mr Lee wrote in his memoirs: “After independence, I searched for some dramatic way to distinguish Singapore from other Third World countries and settled for a clean and green Singapore. Greening is the most cost-effective project I have launched.”
Mr Lee’s original vision of a Garden City evolved over the years into the concept of a City in a Garden, with about 2 million trees planted around the island.
In June 2012, this transformation was celebrated with the opening of the Gardens by the Bay.
Prime Minister Lee Hsien Loong said this was just one example of how Singapore’s living environment is being transformed. “It may be a densely populated city, maybe one of the densest in the world, but we are determined that our people should be able to live comfortably, pleasantly, graciously. Not just good homes, efficient public transport or safe streets, but also be in touch with nature, never far from green spaces and blue waters,” he said in 2012.
Mr Lee Kuan Yew was not known to be sentimental about buildings or landmarks, and he was practical yet ambitious about transforming the nation’s landscape, even when it came to defying nature.
And one of his most important initiatives started in 1977, and involved the Singapore River – historically the lifeblood of the economy and the centre of commercial activity.
The river had been the conduit for Singapore’s entrepot trade, allowing for the movement of goods from the port to the city. Over the years, it had degenerated into a filthy, congested, polluted waterway. The industries along its banks had been dumping sewage and garbage into its waters. The water was badly polluted and caused a stench in the area.
Mr Lee’s proposal was perceived as a monumental feat: A clean-up of the entire river.
The rebirth of the Singapore River took 10 years to complete, and today, it is not only glistening again, but its banks are also bustling with trendy restaurants, clubs and offices, and fish have even returned.
The Singapore River, now part of the Marina reservoir, is a constant reminder of the man who defied time and tide. Its transformation mirrors the fascinating evolution of a small backwater into a thriving global metropolis, and its currents echo the ebb and flow of one man’s life as he turned an impossible dream into reality.
In Mr Lee Kuan Yew’s own words: “You begin your journey not knowing where it will take you. You have plans, you have dreams, but every now and again you have to take uncharted roads, face impassable mountains, cross treacherous rivers, be blocked by landslides and earthquakes. That’s the way my life has been.”
Source: Channel NewsAsia

Singapore's founding father Mr Lee Kuan Yew dies aged 91 at 3.18am on Monday - AsiaOne


SINGAPORE - Lee Kuan Yew, Singapore's first prime minister, died on Monday aged 91, triggering a flood of tributes to the man who oversaw the tiny city-state's rapid rise from a British colonial backwater to a global trade and financial centre.


US President Barack Obama described Lee, who ruled Singapore for three decades, as "a true giant of history" whose advice on governance and economic development had been sought by other world leaders down the years.

Lee had receded from public and political life over the past few years, but he was still seen as an influential figure in the government of Prime Minister Lee Hsien Loong, his oldest son.
"The prime minister is deeply grieved to announce the passing of Mr Lee Kuan Yew, the founding prime minister of Singapore," the Prime Minister's Office said in a statement.

He died at 3:18am local time (1918 GMT) at Singapore General Hospital, where he had been admitted on Feb. 5 suffering from pneumonia.

The government has declared a period of national mourning until his funeral on Sunday. Lee's family will hold a private wake in the next two days, then his body will lie in state at parliament from Wednesday to Saturday.

Thousands of people had been leaving flowers and cards at the hospital over the past three days, praying for his recovery, and many rushed back there when they awoke to the news of his death. "I'm so sad. He is my idol. He's been so good to me, my family and everyone," said Lua Su Yean, 64. "His biggest achievement is that from zero he's built up today's Singapore." "Harry" Lee became Singapore's first prime minister in 1959 and held onto power for 31 years, overseeing the island's transformation from a port city battling crime and poverty into one of Asia's most prosperous nations.

Even after stepping down as leader in 1990 - signing off as the world's then longest-serving prime minister - the acerbic Lee stayed on in the cabinet until 2011. He was a member of parliament until his death.

His leadership of Singapore was seen as a model for developing countries across the world, and politicians of all stripes said they took inspiration from his policies. "Minister Mentor Lee's views and insights on Asian dynamics and economic management were respected by many around the world, and no small number of this and past generations of world leaders have sought his advice on governance and development," Obama said in a statement.

Thousands are expected to pay their respects at the Istana, or presidential palace, a grand colonial-era building where a condolence book has been set up. "My tears welled up as I received the sad news," said another former Singapore prime minister, Goh Chok Tong, who succeeded Lee. "He was my leader, mentor, inspiration, the man I looked up to most," Goh posted on Facebook.

Dozens of world leaders are expected to travel to Singapore for Lee's funeral. His wife, Kwa Geok Choo, was the last Singaporean to be given a state funeral. In 2010 her coffin was carried on a ceremonial gun carriage to a suburban crematorium.

"As Singapore marks its 50th anniversary of independence this year, its founding father will be remembered as one of the most inspiring Asian leaders," UN Secretary-General Ban Ki-moon said in a statement.

STRAIGHT TALKING
Lee, a British-educated lawyer, is credited with building Singapore into one of the world's wealthiest nations on a per capita basis.

Singapore is now home to many of the world's ultra-rich, lured by low taxes and a high standard of living. "His was a voice that spoke clearly and directly, even if his views might be controversial," said Simon Tay, chairman of the Singapore Institute of International Affairs.
Lee, a fourth-generation Singaporean, co-founded the People's Action Party (PAP), which has ruled the city since 1959 and led the newly born country when it was separated from Malaysia in 1965.

He stepped down as prime minister in 1990, handing power to Goh Chok Tong, but remained influential as senior minister in Goh's cabinet and later as "minister mentor" when his eldest son, Lee Hsien Loong, became prime minister in 2004.

Monday, March 23, 2015 - 08:04
Reuters

Source: AsiaOne

Homes near Rail Corridor could see price gains - AsiaOne

OWNERS of property near the old Malaysian railway track could reap some benefit when the area is refreshed.

Prices in some areas might enjoy a lift once the 24km path from Tanjong Pagar to Woodlands, known as the Rail Corridor, is revamped.

The Urban Redevelopment Authority (URA) on Wednesday sought ideas from design professionals on how to develop the historic strip of land.

The aim is to ensure the path remains continuous and at the same time reflect its heritage as a railway line while preserving its green nature.

Six areas would come in for special attention: the former Bukit Timah and Tanjong Pagar railway stations, the old Bukit Timah fire station, two areas near the Kranji and Buona Vista MRT stations and a stretch near Sungei Pang Sua canal in Choa Chu Kang.

That could give home owners potential gains to look forward to, although the residential areas near the old track are mostly already pricey private landed houses in the Bukit Timah district, including Holland Road and Rifle Range Road.

There are light industrial areas in Bukit Merah and Buona Vista, while Kranji to the north is more thinly populated, with some industrial activity.

Owners of property near the track have already reaped some benefit from the termination of rail services, which meant no more noisy trains rolling by, said Mr Nicholas Mak, SLP International executive director.

That had previously dragged down property values by 1 to 2 per cent. But the end of rail services means this is no longer the case.

Still, there already tends to be a premium in the nearby precincts as some are gazetted Good Class Bungalow Areas, including Ewart Park and King Albert Park, said Mr Desmond Sim, CBRE research head for South-east Asia and Singapore.


But values typically appreciate after announcements such as the latest one from the URA, and additional gains may be expected as new capital investment takes form, said Dr Chua Yang Liang, JLL research head for South-east Asia and Singapore.

"A lot of the potential upside will depend on... how the additional land that has been freed up is integrated with the surrounding area, and whether these enhancements are in line with the overall ambience and characteristics of the neighbourhood," he added.


This article was first published on March 20, 2015. 

Saturday, Mar 21, 2015
The Straits Times

Source: AsiaOne

Friday 20 March 2015

Singapore Property: Why 28 Shades of Red? - SRX

Singapore Property: 28 Shades of Red
28 Shades of Red
The private condo market has lost more than $15 billion in market value since its peak in prices in January 2014.  
SRX Property used X-Value, its valuation algorithm, to calculate the value of all transacted flats (recorded) at the market’s peak and then compared it with the value at 31 December 2014.
At the peak, the measurable market value was about $392 billion while it was $377 billion at the end of 2014. The difference is $15 billion and counting as prices continue to drop.
Homeowners in different regions have suffered disproportionately.
According to SRX Property, the worst hit regions, as designated by the darker red, include Districts 13, 1, and 28.  
In District 13, which consists of the Macpherson and Braddell neighbourhoods, 38% of homeowners would sell at a loss if they sold at their unit’s X-Value.This would translate to a market loss of about $ 92 million.
40% of homeowners in District 1, which consists of the Temasek Boulevard and Raffles Link neighbourhoods, would sell at a loss of about $ 516 million.
The Seletar area, or District 28, would have the largest percentage of loss makers at 44%, which translates to a market loss of about $117 million.
In contrast, residents in District 26, home to the Singapore Zoo and Night Safari, are in relatively good shape. Only 9% would sell at a loss if they sold at their unit’s X-Value. However, the loss would still be significant in dollar terms at more than $21 million.
So why have the Cooling Measures disproportionately impacted homeowners, as represented by their regions? Why are the 28 Shades of Red so discombobulated with no clear pattern?
It can’t be location. District 28 (dark red) and 26 (pink) are next door to each other.
It can’t be price per square foot. District 1 is more than twice as expensive as District 28, yet they are both dark red.
The explanation for the 28 Shades of Red goes to the very heart of real estate.
Real estate is local. As such, one-size-fits-all policies like the Additional Buyer Stamp Duty (ABSD) and Total Debt Servicing Ratio (TDSR) will impact homeowners differently and the blood splatter pattern is unpredictable in advance.
Each neighbourhood, project, and unit has different sets of circumstances. They vary in age, tenure, size, floor level, unit, spatial direction, and proximity to key amenities (i.e., schools, transportation hubs, parks, etc.).
Within each neighbourhood, homeowners have different circumstances, including TDSR profiles.
The real estate markets in those neighbourhoods are in different states of flux. Some are hot, some cold, and some warm.
Homebuyers who bought into the hot markets prior to the Cooling Measures are the ones who got the worst freezer burns and now represent the reddest of the 28 Shades of Red.
Sam Baker is co-founder of SRX Property, an information exchange formed by leading real estate agencies in Singapore to disseminate market pricing information and facilitate property listings and transactions. For more details on the data and calculations used in this article, visitSRX.com.sg/research.
Source: SRX (19 Mar 2015)

What Singaporeans need to know about home loan refinancing in 2015 - AsiaOne

What is Refinancing Anyway? Refinancing is the process of transferring your home loan to another bank. We have an article on it, but here's the quick summary:
When you get a home loan package, it tends to look something like this (exact numbers may vary):

Year 1: 3 Months SIBOR + 0.85 per cent
Year 2: 3 Months SIBOR + 0.85 per cent
Year 3: 3 Months SIBOR + 0.85 per cent
Year 4 and Thereafter: 3 Months SIBOR + 1.25 per cent! Special loyalty bonus! Now with extra cost!

When you refinance, you switch the home loan package on that all-important fourth year. 

This keeps the home loan interest rates low. Refinancing is especially important in Singapore, because bank loans do not have permanent fixed rates.

Quick Note: Refinancing vs. Repricing
Refinancing means switching your home loan to another bank. Repricing also means switching your home loan, but to a package offered by the same bank you're with.

For example, if you switch from a CIMB home loan package to a DBS home loan package, that's refinancing. If you switch from CIMB home loan package X to CIMB home loan package Y, that's repricing.

There is little difference between the two, except that legal and administrative paperwork might be cheaper. Some home loan packages offer one or two free repricings.

Why is Refinancing Different in 2015?
A number of factors makes refinancing different: new cooling measures, changing property market, Ben Bernanke's mouth, etc. But while refinancing decisions are tougher, that doesn't mean you can't save money from it. You just need to look out for these:
  • Rising interest rates
  • Restrictions on loan tenure
  • The new TDSR framework
  • Legal subsidies are restricted
1. Rising Interest Rates
Interest rates are expected to rise, after being at their lowest for a decade. Now before you start ranting about Quantitative Easing, stop: contrary to popular belief, SIBOR hasn't been shooting up like a heroin junkie.

Rather, the bank's spread (the amount added to the 3 month SIBOR) has been going up. See, the recent slew of loan curbs has reduced the number of property buyers. That sucks for banks, who generate revenue by charging interest on home loans.

To make up for the falling number of borrowers, many banks are raising the interest they charge. This, more than anything, accounts for the rising rates.

This means home owners who want to refinance should check the "thereafter" rate on the new home loan they are eyeing (see the example above, where we wrote Year 4 and Thereafter). As interest rates rise, it might be wise to consider a good long term home loan package that has decent "thereafter" rates.

Don't be sucked into mistake of focusing only on the first 3 years and assume you can keep refinancing on the 4th year.

Who knows, by then, the available home loan packages (4 years from now), might have year 1,2 and 3 rates that are higher than your existing "thereafter" rates. Nothing is 100 per cent certain, but I'm just saying… :)

If you need help looking for good long term home loan packages, you can look for home loan refinancing at MoneySmart.

2. Restrictions on Loan Tenure
Under the new home loan curbs, the maximum loan tenure is 30 years for HDB flats and 35 years for private properties. This cannot be stretched by refinancing. An example:
Say I've had the same HDB home loan package for 11 years at Bank A. When I refinance into a new one at Bank B, the maximum loan tenure for the new package would be (30 - 11) = 19 years.

It doesn't matter if you got a longer loan tenure before (e.g. 40 year loan tenure). Everything will be re-adjusted to current rules and regulations when you refinance at this point.

Shorter loan tenures mean higher monthly repayments, which in turn mean a higher Total Debt Servicing Ratio (TDSR). Some borrowers may not be able to refinance because of this.

3. The New TDSR Framework
There is a new TDSR framework for home loans. Here's the most important thing you need to know:
When you refinance, you are subject to the new TDSR framework unless the property is owner occupied.

Refinancing means going through a whole process of credit checks again. Your Mortgage Servicing Ratio needs to be 30 per cent or under, you get a haircut on variable income, etc. 

In particular, note that the TDSR framework takes into account all unsecured credit facilities, such as credit cards.

So because current loan restrictions are tighter than before, you may find that you no longer qualify for a home loan. Still, there's no harm in trying to refinance, if your current rate is high.

You won't have to worry about this if you are currently living in the property you are hoping to refinance, but if it's an investment property, you will be affected.

4. Legal Subsidies are Restricted
There are some legal costs when you refinance your home loan. You need to entrust somebody with the proceedings, and lawyers are paragons of honesty.

Well, the lawyer costs about $2,000 to $3,000, give or take. A repricing is cheaper, and might cost between $500 to $800 (Both can be paid by CPF).

In the past, the banks almost always subsidised the legal fees. But due to tweaks by the Monetary Authority of Singapore (MAS), a lot of banks are no longer offering this.

What this means is that if you want to refinance your home loan, you need to ensure your monthly savings are not negated by the legal fees you have to pay upfront.

If you're paying $3,000 in legal fees but saving $500/mth, that's a worthwhile switch (it will take you 6 months to "break even"). However, if you're paying $3,000 to save $50/mth, that might not be so worthwhile (it will take you 60 months or 5 years to "break even").

The minimum loan size to get a legal subsidy (as of October 2013) is around $300,000 to $600,000. Many banks do not even offer legal subsidies. Some examples of banks that do (and their minimum loan size requirements) are:
ANZ - $300,000
Citibank - $400,000
SCB - $300,000
BOC - $600,000

Should You Refinance?
At the very least, you should compare your home loan rates every three to five years. There may be something cheaper on the market, and there's no harm trying for it (at worst, you just don't qualify).

You should also refrain from taking on a personal loan, car loan, etc. if you intend to refinance. The added debt could drive your TDSR past the 60 per cent limit.

This article first appeared on MoneySmart

Thursday, Mar 19, 2015
MoneySmart

Source: AsiaOne