BUYING AND SELLING A PROPERTY FROM THE COMFORT OF YOUR HOUSE

Latest data revealed that HDB resale transactions increased by 19.4% in the 3rd quarter of 2021 in contrast to the previous quarter. A total of 8,433 HDB resale transactions were registered from July to September, a surge from 7,063 applications in the second quarter. HDB resale prices in the third quarter rose in tandem, 2.9% higher than the second quarter.  Four-room flats remains the most popular among the resale buyers with a total of 3,593 resale applications, followed by five-room flats with 2,268 resale applications. HDB has set sights to launch about 17,000 BTO flats this year, which is still higher than the 16,800 flats launched in 2020. A total of 22,300 flats will be offered in 2021 including about 5,300 flats in the Sale of Balance Flats exercises and open booking. Upcoming Build-To-Order BTO Launches In November 2021, HDB will offer about 4,400 Build-To-Order (BTO) flats in Choa Chu Kang, Hougang, Jurong West, Kallang Whampoa and Tengah.  In February 2022, HDB will offer about 2,000 to 3,000 BTO flats in Geylang, Tengah and Yishun. 

The failed attempt to enbloc sale in 2019 did not deter the owners of Lakepoint condominium from seeking another collective sale this year. Lakepoint is a 99 years leasehold condominium with a total of 304 units and 5 commercial shop units. It was developed by Jurong Town Corporation in 1983 so the remaining lease is approximately 61 years now. Lakepoint sits on a massive land size of 562,286 sq ft and a plot ratio of 1.4. It is a five minute-walk from Lakeside MRT station and within five minutes drive to Jurong Point. The development of Jurong Lake District is an appeal to potential enbloc buyers. The reserve price of $640 million will require a joint venture (JV) of two or more property developers to manage the risk appetite. Moreover, the prolonged COVID-19 pandemic has complicated matters in terms of construction delays and high cost of materials.  The estimated land rate of S$959 per square foot per plot ratio (psf ppr) took into consideration the development charges (DC) and lease top-up premium from JTC. Propnex is the exclusive marketing agency for Lakepoint enbloc sale. The tender exercise will close on 22 December 2021, Wednesday at 2pm. Lakepoint $psf Land cost $959 Construction cost $350 Expenses and profit margin $390 Estimated launch price $1,699 Would you pay $1,700 PSF for a new launch at Lakepoint? 

Jervois Mansion, a freehold project by property developer Kimen Group, was almost fully sold when it was launched for sale on 16 October 2021. A total of 104 units of the new condominium at Prime District 10 were sold. It is located at Jervois Close near to the River Valley area.  The majority of the buyers were Singaporeans who are buying for owner occupation.  There are a total of 130 units in the new development and the developer will keep 25 units for its own investment purpose.  The upcoming Jervois Mansion has a total of six blocks of five storeys high due to its close proximity to the Good Class Bungalow (GCB) area. There are 70 units of one to two bedrooms and 60 units of three to five bedrooms for large families.  All the blocks at Jervois Mansion will be interconnected by bridges at the rooftops and there will be a community urban farm and garden.  Building and Construction Authority (BCA) has awarded Jervois Mansion with the Green Mark GoldPLUS Super Low Energy Residential Building rating for its initiative to power 30% of the common facilities using solar panels at the roof pavilions. The average selling price is very affordable at $2,548 per square foot (PSF). Considering that  a resale condo unit at nearby at Bishopsgate Residences, TOP in 2012, was sold at $3,840 PSF in June 2021. A four-bedroom unit of 1,539 sq ft was sold for slightly below $4.5 million The rooftops of the six blocks will be connected by bridges, with a community urban farm and garden atop one block and a "Regenerative Woods", a nature plot left untouched to flourish naturally, on another. Mr Andy Chia Jin Tai, associate division director of ERA, one of the three property agencies that was marketing the project, said: "COVID-19 pandemic has changed the mindset of most buyers. The shift to work from home means they demand a livable space and functional layout for a good working environment. Coupled with the right pricing, Jervois Mansion nestled in a prime D10 location appeals to savvy investors who are price sensitive."

Most people will flinch and overlook getting a Condominiums as they believe it’s too expensive, small and not worth the money. However, do you guys stop to think if newly launched Condo are better for you in the future? Yes, buying a newly launched requires you to fork out a lot of moolah but did you know that the prices of Condo tend to always rise in the near future? So let’s dive deeper into the Pros and Cons of buying a newly launched condo, so that you could evaluate to whether buying a condo is really worth it. Pros of Newly Launched Condominiums 1. Progressive Payment Plan (PPP) If you decide to purchase a new launch condo, you are not expected to make the full payment as the condo is yet to be constructed and it will take approximately 3 years from the new project launch date to temporary occupation permit (TOP). With that, buyers do not need to fork out a huge amount of money upfront. To book your desired unit at the project showflat, you will pay a 5% booking fee via cheque in exchange for the Option to Purchase (OTP) issued by the property developer.  The developer has up to 14 days to deliver the Sales and Purchase (S&P) agreement to the purchaser once the booking deposit cheque has cleared.  Upon receiving the Sales and Purchase (S&P) agreement, the purchaser has up to 21 days to secure a mortgage loan and appoint a conveyancing lawyer to exercise the OTP. To exercise the OTP, the purchaser must pay 15% of the purchase price in the form of cash + CPF, sign and return the Sales and Purchase (S&P) agreement to the developer.  Take note that the purchaser must pay Buyer Stamp Duty (BSD) within 14 days of signing the Sales and Purchase (S&P) agreement. Everyone must pay BSD for documents executed for the transfer or sale and purchase of Singapore property. BSD will be computed on the purchase price as stated in the S&P to be stamped or market value of the property (whichever is higher). CPF requires 6-8 weeks to process the application for using CPF funds. If there is insufficient time, the purchaser must pay in cash first. The mortgage loan allows you to stretch the payments over a longer period of time such as 25 years. The loan tenure depends on the age of the buyer or the income weighted average age (IWAA) if there is more than one buyer. This simply means a smaller and more affordable mortgage instalment, music to the ears of young couples! Progessive Payment Illustration based on $1,500,000 new launch property. Progress Payment % Payment $ Payment Mode Booking Upon the grant of Option To Purchase 5% $75K Cash S&P Upon signing of Sales & Purchase Agreement or within 8 weeks from the Option date 15% $225K CPF/Cash BSD Buyer's Stamp Duty - $44.6K CPF/Cash ABSD Additional Buyer's Stamp Duty 0% $0 CPF/Cash Foundation Completion of foundation work 10% $150K 5% CPF/Cash and 5% Loan Framework Completion of reinforced concrete framework of unit 10% $150K 10% Loan Wall Completion of partition walls of unit 5% $75K 5% Loan Ceiling Completion of roofing/ceiling of unit 5% $75K 5% Loan Windows Completion of door sub-frames/door frames, window frames and plumbing of unit 5% $75K 5% Loan Car Park Completion of car park, roads and drains serving the housing 5% $75K 5% Loan TOP Temporary Occupation Permit 25% $375K 25% Loan CSC Legal completion 15% $225K 15% Loan 2. Return of Investment (ROI) The value of most new launch projects will appreciate upon Temporary Occupation Permit (TOP). Because it is brand new and in a move-in condition. The prospective buyers can view the actual units and check out the facilities in the property development. When the minimum holding period of your condo is up, you’ll be able to sell your condo and bring in a hefty sum of returns. For Executive Condominium (EC), the minimum holding period is 5 years before you can sell to Singaporeans and 10 years before it is privatised. For a typical private residential property, if you want to avoid Seller Stamp Duty (SSD), you must not sell within 3 years of buying a new launch project. By buying during the showflat launch and being the first owner of the condo, you enjoy the first mover advantage to get the most capital appreciation from the unit. 3. Discounts Only newly launch condos have discounts and freebies as these are some of the creative methods property developers use to entice buyers and investors to buy their units. From early bird VVIP discounts to furniture vouchers, these are just some of the methods used by these developers. 4. Upcoming Launches will cost more As a result of the rising land cost due to bidding in Government Land Sale (GLS) and en-bloc sites, future new launches will be expensive. The increase in development charge (DC) and lack of foreign labour will eat into the property developers' profit margin. Cons of Newly Launched Condominiums 1. Time Just like a Build-to-Order BTO flat, you’ll have to wait for a while before getting the keys to your unit. It usually takes three years for a newly launched Condo to be completed but with the current COVID-19 situation, a delay in completion is inevitable. Hence, if time is not on your side, for a newly wed couple, newly launched condo is not advisable unless you are willing to rent a place for a period of time.  2. Size Similarly to BTO vs Resale, a newly launched Condo will be much smaller as compared to a Resale Condo that was built before Year 2000. The average size of a 3 bedrooms Resale Condo is 110 sqm while the average size of a newly launched Condo is 85 sqm. Thus, if size is what you after, then you might want to reconsider your options. Contact us for the latest VVIP invitations to new projects and we will keep you in the loop for the best discounts.

Housing and Development Board (HDB) has recently announced that BTO flat buyers for Punggol Waterway Sunrise II will be compensated after its completion was delayed by more than a year. Although there are currently a total of 94 BTO projects in Singapore, Waterway Sunrise II is the only BTO project where the delay has exceeded by at least one year. BTO flat buyers of Waterway Sunrise II will be pleased to know that HDB will disburse the maximum reimbursement sum that they are eligible for under the COVID-19 (Temporary Measures) Act, without the need to to submit claims. If they chose to cancel their BTO flat booking to buy a resale flat, HDB may consider waiving the forfeiture and one-year wait out period. First-time flat buyers can apply for temporary housing under the Parenthood Provisional Housing Scheme if they are unable to secure interim housing. The revised completion dates for Waterway Sunrise II could be in the fourth quarter of 2022 to the first quarter of 2023.  The original completion date was supposed to be by June 2021. Unfortunately, the original contractor Lian Ho Lee Construction did not live up to expectations and they were eventually replaced by Expand Construction in October last year The COVID-19 pandemic has adversely affected the construction sector with numerous contractors facing manpower shortages, supply disruptions and higher material costs. HDB has taken steps to minimize the delay in BTO flat projects by helping the construction firms to recruit workers from overseas and share the increase in manpower costs. Since January 2020, HDB has completed 25 public housing projects and delivered more than 16,000 new homes. The average waiting time is approximately 4.4 years for BTO projects to be delivered from now until end 2024. Punggol Waterway Sunrise II was launched in February 2017 and its prices started from S$163,000 for a three-room BTO flat to S$383,000 for a five-room flat.