After a long time wait, the Chief Planner has finally gazetted the new plans which will determine the land laws for the next 5 years.
Published Date: 06 Jun 2014
The Chief Planner has gazetted the Master Plan 2014 on 6 June 2014. The Master Plan 2014 is the statutory land use plan that guides the physical development of Singapore for the medium term.
As part of the Master Plan, all 75 heritage buildings proposed for conservation under the Draft Master Plan 2013 were also gazetted today. See Annex A for the list of buildings.
The gazetting of the Master Plan concludes the year-long review of the Draft Master Plan 2013, which was exhibited in November 2013 for a month at The URA Centre Atrium and URA website. During this period, the exhibition attracted some 61,000 visitors, and the website had more than 513,000 page views. The review also involved consultations with Members of Parliament, grassroots leaders, professional institutions and other stakeholders. We thank members of the public for their positive and constructive feedback.
The Singapore Government has cut short of supply to their Government Land Sales with the announcement of 7 new sites for next year in H1 2014. Of the 7, 4,630 private apartments can be carved to the supply and it’s one of the lowest supply introduced since 2010.
Right next to Wingtai’s “The Crest” (960 psfppr in September 13) would be the only GLS plot (2.37ha) which is at City fringe for H1 2014 and can potentially yield 655 homes would be the highlight of the exercise.
This would be a good indicator of Singapore developers sentiments for the market on whether are they still positive on topping and developing their land bank for the consumers.
With limited residential supplies coming online, the Government is watching very closely on the supplies as well to prepare a soft landing should the market do some corrections.
ps. What’s interesting to me would be the commercial plot which is right next to City Plaza. The area has a good vibe going on with UOL’s Katong Regency coming online.
To complete the loop for a sustainable Executive Condominium (ECs) market, Ministry of National Development has introduced 3 primary measures to the EC segment, primarily:-
You can read more from the official source.
How will it affect the EC Market?
This will still primarily drive the 1st timers to purchase at ease and since they have lower cancellation fee, this would allow them to think prudently on their financing capability. Backing out would be less painful for them.
2nd timers would probably rush for existing EC launches prior before today so they would be able to avoid the levy. Again, these pool of purchasers would weed out in the market gradually.
EC developers would also be more careful when it comes to bidding for future EC land when it comes to affordability of EC purchasers since the MSR level came down drastically. We’ll see more competitive land bids for future plots; if not lesser.
Will it affect the Overall Market?
As of current, the primary indicator would still be HDB. With HDB prices tapering and aggressive supplies in the pipeline introduced by the government coming online, this would be the median basis of the fundamentals.
Prices should soften for the resale market for the next two quarters, as we’re experiencing a shift of tide already from the seller to the buyer’s market.
Whilst prices might soften, residential buyers should not expect a drastic drop in pricing as the rental market for residential segment is still active.
Riots happened in Little India last night around 9.30pm at the cross junction of Race Course Road and Hampshire Road involving at least 400 people, involving some 300 police both Special Operations Command (SOC) and the Gurkhas Contingent were activated to mobilise the incident. You can read more about it in Straits Times Online.
As of most Singaporeans, I had trouble sleeping knowing there was mishap happening in the country. The speed of social media’s reach was amazing. Twitter triumph all social platforms on the updates, even faster than our news media since the first photo of the riot was posted, and videos follow suit in Youtube for the explosions of the emergency vehicles. A hashtag search on #littleindiariot and you would get the latest updates with Minister Tan Chuan-Jin (@chuanjin1) pleading the public to stay calm during the ordeal. The tag has caught a huge global audience with the trending ranks of Twitter.
Kudos to the effective Home Team whom managed to subdue the angry mob within a short period of time without even firing a shot (Having gone through Army, I understand the rules of engagement well). At least no one else apart from the traffic accident was killed amidst the riot. My heartfelt gratitude to the peacekeeping HomeTeam and people whom are trying to help on site even amidst the chaos.
URA draft master plan for 2013 is out. While I spend sometime in digesting what is happening in the future, the Master Plan on its own is ready for usage. You could even check whether any land is intensified via here.
You can also visit the exhibition for the Draft Master Plan at URA Centre to find out more.
URA Masterplan 2013
Remember I’ve mentioned about the Masterplan is due for update this year? Channel News Asia did a report on the draft Masterplan 2013 which should be exhibiting soon and will be then finalized by next year. Recently I had a discussion with a developer friend and we suspect that there might be some land intensification in this version.
Either intensity or not, this version of Masterplan would be exciting to look at since the current version based on 2008 with revisions of street blocks over the years was definitely deemed successful in terms of urban planning for the nation.
Marina Coast Expressway (MCE) to be opened on 29 December
Probably one of the most costliest expressway to construct (and the most expensive expressway ever built in Singapore), this 10th exciting expressway is set to debute by the end of the year. With this 5km that connects to mainly the Marina Bay area as well as major expressways including KPE, ECP and AYE, this will ease and definitely improve traffic landscape.
Exciting changes doesn’t really end there. This definitely benefits some of the residential and commercial elements along the expressway which has a sea view that was previously pegged by noise levels from ECP.
Watch the video here to understand more about MCE.
Just when property market picks up by a little notch, MAS introduced a new cooling measure by introducing debt servicing ratio framework. With effect from 29th of June 2013 (by tomorrow), the new rules will take effect to ensure that a property buyer’s monthly payments do not exceed 60 percent of his income.
This new TDSR (total debt servicing ratio) will apply to loans for the purchase of all types of property, loans secured and refinancing of all related property loans.
This is to encourage prudence on borrowing and refrain borrowers from overexposure to financial risk. Banks will also have to apply a specific medium-term interest rate, or prevailing market rate, whichever is higher, to the property loan that the borrower will be apply for.
This would definitely affect in particular for existing property owners who are seeking to purchase another property for investment, be it residential, commercial or industrial.[block type=”alert”] You can read more about the framework from the official MAS website here.[/block]
No. As all your contracts are inked in and approved, this definitely will not affect your existing mortgages. I suppose what MAS worry about is the possibility of interest rate increasing that might put borrowers who neglect the ratio and is overweight on any type of mortgage loans.
In all honesty, TDSR of 60% has always been the norm, but just not followed through strictly. Now with the framework that is in place, I guess stringent checks with proper documentations are needed before loan gets approved. That might mean that loan approvals might take longer than your usual.
As of current since the framework was just released, our banker friends were not briefed yet on how this would impact their existing and new clients as well. More updates on Monday as soon as more case scenarios are being melted out. Look out for the space here.
My hunch is that MCL Land J-Gateway’s outstanding performance of 738-units selling out today probably triggered this new cooling measure which probably was already in the pipeline.
Amidst the heating Singapore market, MAS has released an immediate press release which will take immediate effect from tomorrow,
[block type=”download”]Read the official press release from MAS here[/block]
The Monetary Authority of Singapore (MAS) will restrict the tenure of loans granted by financial institutions for the purchase of residential properties. MAS’ move is part of the Government’s broader aim of avoiding a price bubble and fostering long term stability in the property market.
2 The maximum tenure of all new residential property loans will be capped at 35 years. In addition, loans exceeding 30 years tenure will face significantly tighter loan-to-value (LTV) limits. This will apply to both private properties and HDB flats. The new rules will take effect from 6 October 2012.
These measures are somewhat expected and mirrored what Hong Kong has done after QE3 was announced by the Feds. Traditionally tenures over 30 years are not too popular, and shouldn’t affect the current property prices. This is especially a good move for home buyers whom might overestimate their affordability as well as investors who tend to stretch the loan tenures in case any volatility will to happen in the market.
Ministry of National Development has released a heavy cooling measure to curb residential property investments or speculations, with updates as follow:-
The Government announced today an Additional Buyer’s Stamp Duty (ABSD)to be imposed on certain categories of residential property purchases. The ABSD will be imposed over and above the current Buyer’s Stamp Duty, and will apply to the purchase price or market value of the property (whichever is higher) for the following purchases:
a) Foreigners and non-individuals (corporate entities) buying any residential property will pay an ABSD of 10%;
b) Permanent Residents (PRs) owning one and buying the second and subsequent residential property will pay an ABSD of 3%; and
c) Singapore Citizens (Singaporeans) owning two2 and buying the third and subsequent residential property will pay an ABSD of 3%.
The ABSD will take effect on 8 Dec 2011. Remission of ABSD will be given for options granted on or before 7 Dec 2011 and exercised within 3 weeks (i.e. on or before 28 Dec 2011) or the option validity period, whichever is the earlier.
Official Source: MND Website
All foreigners buying 1st residential property in Singapore will have to pay 13% Buyer’s Stamp Duty instead of the previous 3% (Additional 10%)
All Permanent Residents 1st residential property will still remain 3% and the 2nd one will be 6% Buyer’s Stamp Duty (Additional 3%)
All Singaporeans 1st and 2nd residential properties will remain at 3% and the subsequent ones to be at 6% Buyer’s Stamp Duty (Additional 3%)
This will dampen residential market strongly as foreign buying interest has always been very strong. That said, other property segments such as commercial and industrial should not be affected.
Sharing with you more insights and periodic opportunities in the market.
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