I like Cow, he always have something for everyone.

[Arcachon]

New HDB scheme to offer shorter, cheaper leases

Extensive public consultations are currently underway as to how studio apartments and 2-room flats can be combined into the new 2R Flexi scheme, but still retain their objectives, said National Development Minister Khaw Boon Wan.

Writing on his blog, Mr Khaw explained that singles and families will still be able to purchase a new 2-room flat from HDB on a 99-year lease, but elderly households aged 55 and above can choose a shorter lease period based on their age and preference under the unified scheme.

The lease options range from 15 to 45 years in 5-year increments, and will be granted provided the chosen lease allows applicants and their spouse to live in the flat till age 95 or above.

Prices of the 2R Flexi flats will take into account the lease tenure and whether they are bought by first-time or second-time buyers.

“Shorter lease flats will be cheaper than longer lease flats. Second-timer buyers will pay more than first-timers as the latter will get more subsidies. Through a combination of pro-rated grants for first-timers and pro-rated resale levy for second-timers, we will be able to price the 2R Flexi flats so that recent buyers of SA or 2R flats will find the 2R Flexi scheme to be fair. New buyers of 2R Flexi flats will also find the flats affordable,” wrote the Minister.

“We have worked hard over the past few months to get this balance right, for the new 2R Flexi scheme,” he added.

The government is expected to launch the unified scheme during the next Build-to-Order (BTO) exercise in September.

http://www.propertyguru.com.sg/property-management-news/2015/8/104478/new-hdb-scheme-to-offer-shorter-cheaper-leases

[Arcachon]

If the SA scheme and the 2R flat scheme were likened to coffee and tea, how do you combine the two schemes into one, and still retain the objectives of the two schemes? Extensive public consultations are underway to help us achieve this mix.

We want to be able to preserve the benefits of the old schemes, and at the same time offer new benefits under the new combined 2R Flexi scheme.

For example: first-timer families, second-timer families, and first-timer singles can currently buy a new 99-year 2R flat from HDB. They will continue to be able to do so, under the 2R Flexi scheme. At the same time, we will give elderly households aged 55 and above the additional benefit of being able to choose a shorter than 99-year lease, if they wish, based on their age and preference. Their lease options will range from 15 to 45 years, in 5-year increments, provided the chosen lease will be able to allow them and their spouse to live in the flat till age 95 or above.

How will 2R Flexi flats be priced? Pricing will take into account lease tenure and if buyers are first-timer or second-timer. Shorter lease flats will be cheaper than longer lease flats. Second-timer buyers will pay more than first-timers as the latter will get more subsidies. Through a combination of pro-rated grants for first-timers and pro-rated resale levy for second-timers, we will be able to price the 2R Flexi flats so that recent buyers of SA or 2R flats will find the 2R Flexi scheme to be fair. New buyers of 2R Flexi flats will also find the flats affordable.

Mixing coffee and tea requires balance, such that coffee lovers can still taste the coffee while tea drinkers can still enjoy the tea. And on top of that, both must get an extra distinct flavour and kick. We have worked hard over the past few months to get this balance right, for the new 2R Flexi scheme. We will bring it to the menu very soon.

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[Arcachon]

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Four years of hard work, ramping up new home construction, is seeing results. As flats and apartments take 3 or 4 years to build, we are enjoying the harvests of the hard labour.

As supply-demand rebalances, property prices are adjusting. 2014 was the first full year which saw home prices in decline. This was a great relief for home buyers. As the decline was moderate, it was also a relief for home sellers and home owners. A collapse of housing market benefits no one.

As projects’ completion dates vary, we put up a chart last year to track the pipeline supply of new homes for 2014-2017. A total of 200,034 units were projected. With the tapering of HDB’s BTO supply, the new figure stands at 195,788. Home buyers have plenty of choices.

As we move into 2015, we are updating the chart to show the pipeline supply for 2015-2018.

Our current stock is about 1.28m housing units: 960,000 in HDB; 320,000 in private sector. By early 2018, our stock would have grown to 1.43m housing units, an increase of about 11%.

Our residential market has achieved a better balance between sellers and buyers.

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