According to its Q1 2009 real estate statistics, the Urban Redevelopment Authority (URA) has granted approval for nearly 10 commercial and private residential projects.

UIC Investments (Properties) received provisional permission in January 2009 to develop office and retail space with gross floor areas (GFAs) of 114,500 sq ft and 48,000 sq ft respectively at the UIC Building in Shenton Way. There will be 593 residential units within the development.

The South Beach consortium - comprising City Developments, a Dubai World unit and Elad Group - has been given the ‘green light’ to develop 560 hotel rooms across a GFA of 474,100 sq ft at its Beach Road project.

The site may include office space with a GFA of more than 632,100 sq ft, and retail space with a GFA of 158,000 sq ft. The project will be ready for occupancy in 2014.

Westwood Apartments in Orchard Boulevard will have shop space of 1,500 sq ft in gross floor areas, and 39 hotel rooms across 78,200 sq ft at the site. YTL Corp, which bought the site in 2007 has obtained provisional permission for the expansion. It will have to commence works within six months of the permission.

In February 2009, UOL Group subsidiary Hotel Plaza obtained URA’s approval to re-use the GFA in The Plaza’s podium block to create 273 hotel rooms.

Likewise, CapitaMall Trust, was reportedly ‘in talks with the authorities to optimise the integration plan for The Atrium@Orchard and Plaza Singapura’. If granted approval, CapitalMall Trust may start work by end-2010.

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Singapore has beaten other Asian cities in the latest Worldwide Quality of Living Survey by human resource consultancy Mercer to be the most liveable city in Asia. Globally, the island city has risen six places in ranking of cities with the highest quality of living, surpassing famous cities such as Paris, Honolulu and San Francisco.

Singapore also topped Mercer’s list of cities with the best infrastructure in the world.

The excellent housing, the development of Marina Bay and Sentosa Cove as new waterfront living areas, good schools including international and private schools, have boosted Singapore’s position in the rankings.

Singapore is the only Asian city on the top 100 list that managed to increase its ranking this year, with the rest largely maintaining their previous positions.

China’s capital, Beijing, moved up three places from 116 to 113 due to public transport improvements as a result of the 2008 Beijing Olympic Games.

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According to a US real estate research firm Real Capital Analytics, global sales of investment grade real estate plunged 73% to US$47 million in the first quarter (Q1) of 2009 when compared to the same time last year.

The firm said in a monthly report that a total of 1,014 properties, each worth more than US$10 million had been sold worldwide from January through March 2009, noting that the slump affected all property types and every market.

New reports of defaulted mortgages and failed commercial property companies surpassed US$55 billion in the first quarter, bringing the total known distressed commercial properties to US$153 billion.

According to a report which tracks commercial mortgage-backed securities, distress among US property is accelerating. The securities, backed by commercial loans, are often used as a gauge for the rest of the commercial loan markets.

Besides, loan delinquencies of multifamily properties have jumped over the last few months.

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If you are a foreigner in Singapore and want to buy property, the below will interest you.

The Residential Property Act of Singapore states that a foreign person cannot acquire or purchase restricted residential property unless he obtains prior approval. Such property includes:
(a) vacant residential land;
(b) landed property [i.e detached house, semi-detached house, terrace house (including linked house or townhouse)]; and
(c) landed property in strata developments which are not approved condominium developments under the Planning Act.

A foreign person is defined under the Residential Property Act to be:
(a) any person who is not a citizen,
(b) any permanent resident,
(c) any foreign company or any converted foreign company,
(d) any foreign society or converted society.

Hence, even a permanent resident is categorised as a foreigner unlike in the case of purchasing a Housing and Development Board (HDB) flat, whereby a permanent resident could be the applicant or the authorised occupant of the said flat. However, it does not necessarily mean that all foreigners are restricted from purchasing restricted residential properties in Singapore. A foreign person can still buy resticted residential property caught under the Act if he/she had obtained explicit approval from:

Land Dealings (Approval) Unit
Singapore Land Authority
8 Shenton Way
#27-02
Singapore 068811

The approval will be looked upon favourably if:
(a) the individual is a permanent resident
(b) an individual who can provide economic benefits to Singapore or makes adequate contribution in Singapore; and
(c) one who possesses professional or other qualifications or experience which are of benefits or advantageous to Singapore.

Any foreigners who attained ownership of residential properties in Singapore prior to the commencement of the Act in 1973 can have the right to retain it. In the event the said foreigners are desirous to sell their properties, it shall have to be sold only to any Singapore citizen or approved purchasers as stipulated by the Act.

Foreigners who are interested in purchasing restricted residential properties but have yet to attain explicit approval from the Land Dealings (Approval) Unit, the real estate agent can still have the foreigners to commit in the sale and purchase of the property concerned by spelling out clearly in the Option To Purchase documents by the insertion of a clause, i.e. “the intended purchase of the above mentioned property by the intending Purchases, namely one ___________ is subject to explicit approval from the Land Dealings (Approval) Unit, Controller of Residential Property, as stipulated by the governing Residential Property Act. In the event the approval is not validly obtained, it is hereby understood that the owners shall refund all monies without interests accrued to the said intending Purchaser and thereafter neither party shall have any claims, demands, proceedings, costs, expenses whatsoever against each other as pertaining to the said cancellation of intending sale and purchase of the said property concerned”.

Foreigners can acquire or purchase in Singapore the following residential properties without a written approval:
(a) An apartment in a building
(b) A unit in an approved condominium development.
(c) Any non-residential, commercial or industrial property.
Note: A foreign person is not allowed to acquire all the apartments within a building or all the units in an approved condominium development without the prior approval of the Minister for Law.

For restricted residential property such as vacant land, landed properties such as bungalows, semi-detached, terrace houses, townhouses and strata landed property, foreigners need to apply for approval from Land Dealings (Approval) Unit, Singapore Land Authority before buying. For more details on application, visit the Singapore Land Authority website.

For HDB flats, HDB shop-houses and executive condominiums, eligibility is subjected to the Housing and Development Board.

To buy a flat directly from HDB, you must be a Singapore citizen, must include another Singapore citizen or Singapore permanent resident to form a family nucleus. To buy a flat from the resale market, you must be a Singapore citizen or Singapore permanent resident. Include at least one listed occupier who is a Singapore permanent resident or Singapore citizen.

Are there any restrictions on home loans for foreigners?
Foreigners and permanent residents can borrow loans up to 70% - 80% of the purchase price of the property subjected to different banks criteria. Non-Singapore companies cannot be granted Singapore dollar loans to purchase residential properties.

What conditions must I fulfill if I am a Permanent Resident getting a home loan?
To obtain a Singapore dollar loan, you have to provide a written understanding that you do not have outstanding housing loans from any other financial institutions in Singapore.

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If you are new to Singapore, you may be interested in this

Q: How do I open a bank account in Singapore?
A: To open an account in Singapore, you will need copies of your passport, employer’s letter, and a statement from a bank in your home country. Singapore has extensive facilities of automated teller machines (ATMs) and a cashless payment system called NETS for your paying convenience.

Q: Who is eligible to apply for an Employment Pass?
A: Any foreigner may apply for an Employment Pass to be employed or to do business in Singapore if he/she fulfils the eligibility criteria. For details please click to see the Singapore Ministry of Manpower website or the Contact Singapore website.

Q: What must I do if my spouse or child is relocating to Singapore with me?
A: An Employment Pass holder may apply Dependant’s Passes for his/her spouse, unmarried or legally adopted children under 21 years of age.

Q: Who are required to apply for a Professional Visit Pass?
A: For details, please click to see the ICA Website for a list of foreigners who are required to apply for Professional Visit Passes.

Q: I am a professional/ specialist. Which Singapore agency should I write to if I wish to seek employment in Singapore?
A: For details, please visit the Contact Singapore website. You may also get in touch with the Contact Singapore Centres overseas or surf the EDB website.

Q: What is Central Provident Fund (CPF)?
A: Over the years, CPF has been used to accelerate natioinal growth. To meet the population’s needs in housing, healthcare, family protection and investment, several innovative schemes were introduced over the last five decades.

Q: Do foreigners need to contribute to the CPF?
A: Foreigners will only need to contribute to the CPF after having assumed permanent resident status.

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From 1 March 2009, Singaporeans who are at least 62 years of age can sell back the tail end of the lease period of their HDB 3-room (or smaller) flats to the Housing Development Board (HDB) and continue to live in their own flat.

The HDB will top up an additional $10,000 in the sale proceeds of the remaining lease and pay out $5,000 cash to the flat owners. The difference in the sale proceeds will be converted to an annuity and the flat owners will receive a monthly cash payment for the rest of their life.

LBS is available to Singapore citizens owning 3-room or smaller flats where the outstanding mortgage loan is $5,000 or lower. They must also meet the following criteria:

Age of youngest lessee is 62 years or older;

Household income of $3,000 or less;

Have not previously owned a 4-room or larger flat or private property;

Have only enjoyed one housing subsidy;

Have owned the existing flat for 5 years or more.

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The pace of price increase in HDB resale flats is slowing, though the general price trend is still firm.

The HDB resale prices went up marginally 1.4% in the final quarter (Q4) of 2008, following impressive rises of 4.2% in Q3 and 4.5% in Q2 respectively.

The main reasons contributing to the price appreciation include strong market valuation prices, which often act as a guide price for buyers; and the strong base of potential buyers, particularly for three– to four–room flats.

However, there has been a significant drop in the median cash-over-valuation portion for resale deals due to the recent gloomy economic outlook.

Median COV price fell from $19,000 in Q3 2008 to $15,000 in Q4 2008 – a drop of 21% – and back to levels last seen around Q3 2007.

Cases requiring COV constituted 85% of all resale transactions in Q4 2008, 4% lesser than that in Q3.

Demand for resale flats has also weakened in Q4 2008. There were only 6,186 resale transactions in Q4 2008 which represents a drop of 24% from the 8,110 resale transactions in Q3. The number of resale deals for the whole year was 28, 419, which represents a 3% dip from the transactions in 2007.

On the whole, property experts expect fairly strong demand for public flats as the continued economic slowdown will compel more wage earners to go for more financial prudence.

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According to data by the Urban Redevelopment Authority (URA), private home rents fell 5.3% in the fourth quarter (Q4) of 2008, after a marginal 0.9% decline in Q3 2008.

Non-landed homes in prime districts recorded the largest drop of 6.1% with mass-market homes down 4.3%. However, private home rents rose 2% last year, though it is apparent that they have reached the plateau.

Drops in rentals are expected in 2009 due to two main reasons. First of all, supply of new home will more than meet the dwindling demand. URA data shows that 7,012 private homes will be completed next year; while 13,686 units will be ready for occupation in 2011.

Secondly, the number of permanent residents leaving Singapore to seek greener pasture may go up when the negative effect of the on-going financial crisis start to bite.

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The Urban Redevelopment Authority (URA) will conserve another 100 buildings in Katong and Joo Chiat to add to the 700 conservation buildings there to preserve the area’s history and character. The Katong and Joo Chiat areas have been gazetted for conservation since 1993.

The conservation buildings comprise 95 shophouses, some terrace houses, two churches and three bungalows along Joo Chiat Road, Joo Chiat Place and East Coast Road.

More than 6,800 buildings have been conserved since URA’s conservation programme was launched in the early 1980s. They include traditional shophouses, black–and–white bungalows, civic buildings and modern developments such as the Asia Insurance Building and Jurong Town Hall.

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Developers are planning to launch more mass market projects this weekend to take advantage of a recent surge in buying interest.

Hiap Hoe Group, a niche developer, will officially launch its 118-unit The Beverly, located at Toh Tuck Road, this Saturday. The starting selling price is $648 per square foot (psf), which Hiap Hoe says is an ‘attractive starting selling price’.

‘We have designed The Beverly for those looking for affordable, high-quality residential developments in a good location,’ said Teo Ho Beng, the company’s managing director.

The Beverly’s two, three and four-bedroom apartments range from 1,120 sq ft to 4,187 sq ft, while its double-storey penthouses range from 2,099 sq ft to 3,757 sq ft and are each outfitted with a private roof garden and pool.

On the other side of the island at Pasir Ris, Sustained Land Pte Ltd will also officially launch Coastal Breeze Residences come this weekend. Two and three-bedroom units at the 63-unit development will sell for $610-$660 psf.

Sustained Land has sold 13 units in Coastal Breeze Residences since the start of 2008 in a soft launch. The units, which were mostly prime apartments on higher floors, went at an average price of $690 psf.

Developers are also throwing in more upmarket features into their mass market offerings to entice buyers. Each of The Beverly’s 118 apartments is served by private lifts that open into the lobby of its interior. UOL’s Double Bay Residences will also offer extras such as full-length windows in the kitchen, the company has said.

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