this new measures is not intended to reverse the market direction, it will only help to slowdown the supply, which IMO is a good thing because the last thing we want is for the MM to crash.Originally Posted by phantom_opera
Senior
this new measures is not intended to reverse the market direction, it will only help to slowdown the supply, which IMO is a good thing because the last thing we want is for the MM to crash.
Junior
I think for this rule, we should stop using the "OCR" term but rather non Central Area. Central Area is re-defined very strictly in the Orchard, River Valley, Marina Bay and Little India areas. Pls see the map for the new definition of Central Area.
Senior
roti prata...thats the word...
Senior
the record bid by world class land/fragrance must have been the trigger for this measure.
Junior
IMHO, it's a case of 'too little, too late'the record bid by world class land/fragrance must have been the trigger for this measure.
Senior
AS USUAL!WHEN ARE THEY GONNA PLUG THE BLOODY A/C LEDGE LOOPHOLE?! I HAVE BEEN SHOUTING THIS FOR MORE THAN A YEAR ALREADY. hahahahahaha.
Music of the night
Their roti prata too popular, you must wait to be served
And limited in supply, pay ABSD if order more than you should
Ride at your own risk !!!
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Singapore reins in 'shoebox' apartments
AFP News – 19 hours ago
Singapore on Tuesday said it will restrict the growth of "shoebox" private apartments in the suburbs to ease overcrowding concerns and encourage couples to have children.
The new cap will come into force on November 4 to "discourage new developments consisting predominantly of 'shoebox units' outside the Central Area", the Urban Redevelopment Authority (URA) said in a press release.
Shoebox units in Singapore typically measure 50 square metres (538 square feet) or less, about half the size of an average public housing apartment.
Singapore developers ramped up the construction of shoebox units to boost sales as land and other costs shot up in recent years.
Such units will increase more than four-fold from about 2,400 at the end of 2011 to about 11,000 units by the end of 2015, the URA said, adding that the share of small apartments in some developments can now reach 50-80 percent.
Such units "do not meet the needs of larger households and are not conducive for couples to have children," the body said, referring to a campaign for young Singaporeans to start families early and reverse the falling birth rate.
"A large concentration of such developments can strain the local road infrastructure as the number of housing units ends up much higher than what was originally planned for," it added.
Shoebox apartments command prices ranging from Sg$1,200-Sg$1,900 ($964-$1,526) per square foot.
Overcrowding in land-scarce Singapore has in recent years become a political topic, with the government's liberal immigration policies blamed for bringing in a massive influx of foreigners and straining local infrastructure.
ipropertyguru
This curb will boost the demand for shoebox development right at the fringe of the Central Area. These are actually city area, e.g. the other half of River Valley area, Stevens etc. Those developments within 350m from the Central Area boundary line.
Reason being supply of shoebox that is so close to the Central Area will be cut off. Though Central Area has no curb, and may seems attractive for developer to bid, if it gets to high, the shoebox will be launched at expensive price too leading to demand for higher rental. This is where those development within 350m of the Central Area will see a surge in rental demand as supply is limited and rental can be set cheaper than those in the Central Area.
Those REAL suburban area shoebox development such as at Kovan, Pasir Ris, Eunos, West Coast, Jurong etc, is everybody's guess in terms of its price movement. But do consider that the suburban also have rapidly aging population whom might like the idea of 1bedroom unit as retirement house.
Enbloc value goes down? Well these shoebox units are so young, give it another 20 years then we revisit enbloc topic ok. 20 years later, who knows got what policies...
So, in a nutshell, grab those so called shoebox developments that are not more than 350m from the Central Area boundary.
Ultimate Underdog
Too many ifs and too much speculation. Who knows what the climate is in 2015-2017 when many of the current PCs that are being built are completed?
Maybe interest rates have gone up by then?
What I see is that MND needs to show the sincerity in creating a sustainable picture for everyone. IMO, to the Govt, OCR MM price overall quantum is too low and offers too much affordability and temptation for especially the following two groups of people:
1. The rich and single - this highly mobile group should be encouraged to invest in central region instead of the easy option in OCR. Without much family commitments, they can definitely afford $1 mil apartments and above. If they choose OCR, they should be encouraged to buy larger apartments (overall quantum still close to or above $1 mil).
2. The young couple - when they seek the easiest private path, they get stuck when there is no space to produce children, and encounter difficulties if they attempt to switch back to HDB. Lots of difficulties resettling them. They should be encouraged to take up HDBs or larger OCR units to begin with.
It is still a story about quantum IMO.
ipropertyguru
Indeed, quantum is still the key. The talk about shoebox = not setting up family is a lame excuse. Many years ago, it is quite common that in a 3rm HDB, there could be 5 family members staying there (parents and 3 kids). It is a matter of WANT or DONT WANT to start family rather than the size of the house.
Senior
If quantum still the key, will you pay $800k for a 400sqft unit in Telok Kurau?
ipropertyguru
U need to realise that quantum needs to be compared and not standalone.
If i want a studio 400sqft and the cheapest is 800k at telok kurau, cos else where are already 1m and gelang studio are selling at 7xx, then yes, i will grab the telok kurau unit. This also mean that those bigger size units are selling way above $1m already.
Senior
That is why the quantum game can be dangerous sometimes. If affordability is the issue and the cheapest in tk is $800k for a 400sqft unit, it may sound cheap but psf is already $2k, making it the highest in that area if it is ever transacted at that price. People are too obssessed with quantum without considering the livability aspect of homes. I was very curious last time and personally went down to see a tiny 4xxsqft unit in tk with bomb shelter. I have to agree with the retiring CDL chief that it is indeed inhumane to live in such a small space.
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Wonder why Balestier is not under control??
Senior
livability is still adaptable, but enblocability will be a big problem when these MM apartments gets old, worst if it 99LH. I would imagine that in 20 years time, they should be many old and run down MM apartment that has got no possibility for enbloc.
Ultimate Underdog
Quantum game can be viewed from different perspectives. From a buyer's point of view, some aspects of liveability can be sacrificed for a lower loan and lower risk. Especially if abundant amenities are in the vicinity, there might not be a need for kitchen. 1 toilet might suffice. No need the space = not paying for it. Have you taken the floor plans from HDB and compared the sizes of 3-room HDB (2 bedroom HDB) vs 1 Bedroom or 1+S PC? The only real difference in size is the kitchen and extra toilet.
Still don't believe in the liveability? Why then is there still much demand and good yields from MM apartments? Is the market an illusion?
Quantum when viewed from the perspectives of Govt and bank is a different story. Lower quantum means lower loans and lower taxes collected upfront and subsequently = lower amounts going into national coffers. Also, the economy can only support a certain number of landlords, who do not directly contribute to the economy. These landlords probably retire early, and lower the overall productivity of the economy if their numbers are too huge. As such, the quantum required has to increase and not drop to maintain our competitiveness, to allow a longer servicing period for such people with multiple properties to work till official retirement ages. The additional amounts they pay in quantum and interests / taxes go into national coffers again. Win-win for all.
Still don't believe? Check out the prices of ECs and current new, well-located HDBs. Do you think cost of building has gone up by that much as compared to just five years ago? Why is it possible for first-batch Duxton owners to get 5-room flat below 300K and not possible now?
ipropertyguru
20years so many things will change. With inflation, land prices will go up definitely, so enbloc potential is still there. Also, most MM units are on Freehold land.
Who knows 20 years later the plot ratio will go up from 1.4 to 2? no one knows, hence no need to worry about enbloc.
ipropertyguru
when u visit the 4xx sqft unit, what was the intention? if u go there with the plan of staying with spouse, two kids and a maid, of course it is inhumane. if it is just for your own stay, or even for you and newly wed spouse, it is still very liveable. see this:
http://www.propertyguru.com.sg/listi...t-suites-eunos
So when one get a small unit, got to be realistic about the usage rather than just saying it is inhuman across the board. What is inhumane is to charge >$1000psf for 99LH properties at far-flung area like Kovan, Seng Kang, Bedok etc.
Senior
In 20 years time, 500sqft will still be 500sqft. Even if government revise the plot ratio, those nonMM development will get enbloc first because en bloc is mostly about shrinking the average unit size.
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Don't think there is a need to convince anyone. Different strokes different folks. Diversity is good. Without large units with large prices, shoeboxes wouldn't look attractive. Everything is relative....
Junior
Actually, smart developers can still capitalize on this by creating dual key apartments (e.g. FV). The apts total size would be about 753sf (70sqm) but its actually two MM units of smaller sizes. This has already been done in Flamingo valley. (dual key unit below 73sqm with a common foyer and two access doors)
Sure the absolute quantum will be higher but potential buyers may still see the benefit of still paying high psf prices as they are essentially getting two MM units in one. They can either rent out both or stay in one and rent one out. Developers and bankers can even match-make co-buyers to be tenants-in-common if their budget is not sufficient.
Any developers can feel free to consult me (haha...) but better do it fast before big bro clamps down
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I see this as no diff from partitioning out separate rooms. It is still ONE ADDRESS. No additional tax benefit? Will you be taxed at 4 or 10%?
Now you are gonna get taxed at 10% of the AV of the WHOLE apartment even if you are staying in one of the studio. No?
Senior
The prices of these MMs will eventually jack up the prices of larger units in the vicinity and will be used as a reference in pricing condos around the area and this is unhealthy. Since when has pricing for a condo in tk ever gone to $1500psf, all thanks to MM developments like the sound and cotz. Imo MM has a major impact on price increases of condos around the island significantly.Actually, smart developers can still capitalize on this by creating dual key apartments (e.g. FV). The apts total size would be about 753sf (70sqm) but its actually two MM units of smaller sizes. This has already been done in Flamingo valley. (dual key unit below 73sqm with a common foyer and two access doors)
Sure the absolute quantum will be higher but potential buyers may still see the benefit of still paying high psf prices as they are essentially getting two MM units in one. They can either rent out both or stay in one and rent one out. Developers and bankers can even match-make co-buyers to be tenants-in-common if their budget is not sufficient.
Any developers can feel free to consult me (haha...) but better do it fast before big bro clamps down
Junior
Therein lies the beauty...Dual key units are self sufficient with their own kitchenette etc and function just like a separate MM. However, as long you, the owner stay in one of the unit, it is as you have pointed out, just like renting out a room. You should most likely be able to claim owner occupation rate. See below quote.
Anyway, just because a unit is double the size does not mean that the annual value is double. In most cases, the annual value is less. Hence the tax you pay for 2 MM units will definitely be more than the tax you pay for one unit which is double the size. Further more, once you have two units, you can only claim owner occupation tax rate for just ONE unit. The other will be taxed at 10%.
If you live in the property
If you are renting out rooms of the residential property which you live in, you are still eligible for the owner-occupier’s tax rates. You just need to write to IRAS to:
- confirm that you are currently still living in your property;
- provide the reason(s) for partially renting out your property; and
- submit documentary proof such as copies of tenancy agreements, PUB bills, SC & CC bills, approval letter from HDB on room rentals, etc.
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You are right proper.t it DOES make sense.... buy buy buy!!
Provided you can find tenants willing to live right beside the landlord....
If I paid for a whole studio, I would want more privacy than that.
Senior
share dinner table?
Senior
No bad if you want to venture into guardian business for the rich kids and prepare to sacrifice.
Junior
Share bed, convert the other bed as 2nd dining table
Junior
I think you guys need to put up an ad saying 'Only HOT tenants need apply. Single air stewardess preferred'
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