News Highlights Tuesday 25 March 2008

Checklist of must-dos for HDB resale flats
Buyers and sellers would have to sit down with the housing agent and go through a checklist that details all the dos and don’ts, financial ins and outs, and other rules that are involved in a sale. The aim is to ensure everyone in the process knows what he is getting into, what his obligations are and that dodgy behavior like under-declaring prices is illegal. It would also prevent situations where the resale transaction has to be cancelled or delayed due to miscommunication and ignorance about policies. The mandatory checklist will kick in on May 1. Sellers will be taken through the list before they grant an Option to Purchase to a buyer.

- The Straits Times, P1



3,500 vied for 714 condo-like flats in Boon Keng, but only 460 sold
About a third of the 714 units – about 250 units – in City View @ Boon Keng remain unsold, despite the 3,500 applications during the selection process. City View is the second public housing project to be built by a private developer. It boasts condo-like features such as timber floors, built-in wardrobes and air-conditioning. Developer Hoi Hup Sunway sold about 460 units, including 6 of the top-priced five-room units at $727,000 each. Some buyers backed out of their purchase due to the weakening property market, while others did not meet the required criteria to buy the flats. Market watchers suggested that the relatively high prices for the City View units could also have proved a deterrent. The three-room flats were priced between $349,000 and $394,000, double the price of similar flats in the vicinity. Five-room flats went for up to $727,000, which experts said was close to condominium prices.

- The Straits Times, H2



Singapore inflation stays at 26-year high
Consumer prices surged 6.5% last month from a year ago, driven by higher food, transport and housing costs. Experts said rising prices will persuade the Monetary Authority of Singapore (MAS) to keep its policy of allowing the local currency to strengthen to fight off higher prices of imported goods.

- The Straits Times, S20



Singapore’s inflation hits 6.5% in Feb
The Ministry of Trade and Industry says that underlying inflation remains stable, as indicated by the three-month moving average CPI, which grew 0.8% month-on-month in February. Led by more expensive accommodation and electricity tariffs, the cost of housing jumped 8.8% in February from a year earlier. Food prices rose 6.7%, while higher petrol prices, taxi fares and car prices drove costs of transport and communication by 7.6% year on year. The CPI rose 0.2% in February from January. Economists note that while an upside risk to the CPI remains, an expected easing in the second half of 2008 will allow the index to fall within the government’s forecast of 4.5-5.5%. Hence, monetary tightening by the Monetary Authority of Singapore is unlikely. The CPI for the top 20% income group rose more sharply, from 0.4% in 2006 to 2.3% in 2007 due to higher costs of holiday travel, car and petrol, which have relatively larger weightings in this group than the lower-income groups.

- The Business Times, P3



Seoul to fight inflation as top priority
President Lee Myung Bak says tackling inflation is his top priority as South Korea faces a global economic crisis beyond its control. South Korea has few natural resources and has been especially hard hit by the rising global commodity prices. It is also grappling with a recent fall in the value of the won against the dollar, which makes imports more expensive.

- The Business Times, P14



China seeks price curbs through economic measures
China is attempting to curb its high-flying property prices mainly using economic measures, rather than administrative ones. China should increase the supply of cheaper and smaller apartments, said the Minister for Housing and Urban-rural Construction. The Chinese central bank, the People’s Bank of China ordered commercial banks last year to raise mortgage deposits to at least 40% for homebuyers who intend to buy a second apartment. The PBOC has raised the reserve requirements 12 times and interest rates six times since last year, which could cut finance available to companies, including property developers.

- The Business Times, P30



Home, retail, office rental growth to ease
Private housing rents are expected to grow at a slower pace this year, said Knight Frank, which expects a year-on-year rise of 5-15% in 2008. Knight Frank says that due to foreign schools being full and children of foreign families facing long waiting lists, housing demand from new foreign family tenants is projected to decrease. Foreign tenants and corporate HR departments have readjusted housing allowances this year, constricting rental demand according to their budgets. About 8,400 new private homes will be completed this year but this number will expand dramatically from 2009 to 2011. This could put downward pressure on rents, said Knight Frank. The same holds true for the retail sector. Growth in office rents and capital values in 2008 and 2009 will likely be more moderate than in 2007.

- The Business Times, P32