Older Singapore HDB flats back in demand after CPF rule change

<div class="separator" style="clear: both; text-align: center;"> <a href="https://1.bp.blogspot.com/-6srGbu-Yk4A/XVWalUD5CrI/AAAAAAAAASI/DZIjBi8eX5wrtU6jz7A3TLGU9HRLJlYxwCLcBGAs/s1600/10-hdb.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://1.bp.blogspot.com/-6srGbu-Yk4A/XVWalUD5CrI/AAAAAAAAASI/DZIjBi8eX5wrtU6jz7A3TLGU9HRLJlYxwCLcBGAs/s640/10-hdb.jpg" width="640" /></a></div> <br /> The Demand for ageing Housing & Development Board (HDB) flats is on the rise in Singapore, two months after the authorities changed Central Provident Fund (CPF) rules to expand the pool of people who can buy them.<br /> <br /> Some 564 flats aged more than 40 years changed hands in May and June, up from 403 in the same period last year.<br /> <br /> Transactions for flats between 30 and 40 years old rose 10.4 per cent to 1,219 units over the same period.<br /> <br /> This means that older flats – those over 30 years old – made up 44.9 per cent of the total resale transactions in those two months, up from 40.6 per cent last year.<br /> <br /> Christine Sun, head of research at real estate agency OrangeTee & Tie, which compiled the data in its half-yearly report, on Tuesday said the second quarter usually sees more sales.<br /> <br /> But the fact that resale transactions have also increased – by 5.6 per cent year-on-year – shows that "apart from a seasonal effect, the recent CPF changes may have been a major catalyst that has spurred buying demand last quarter".<br /> <br /> Since May, buyers have been allowed to use more of their CPF monies and get bigger HDB loans for ageing flats, as long as the property's remaining lease covers the youngest buyers until the age of 95.<br /> <br /> Previously, CPF usage and loan disbursement were based on a flat's remaining lease.<br /> <br /> At the time, analysts said the move would widen the pool of buyers who can use CPF to buy older flats, especially older buyers.<br /> <br /> But they said it may also deter younger buyers from purchasing flats with leases that they may outlive.<br /> <br /> According to OrangeTee & Tie, the policy change also appears to have benefited owners of bigger and older flats.<br /> <br /> The number of transactions for four-room flats over 40 years old rose 53.5 per cent from May and June last year to the same period this year. Five-room flat sales increased 54.5 per cent.<br /> <br /> However, transactions of similar-sized younger flats – between 10 and 30 years old – dipped by 4.4 per cent for four-room flats and 15 per cent for five-room flats.<br /> <br /> While the transactions of flats under 10 years old also increased substantially over the same period, Sun said the uptick can be attributed to a surge in the supply of flats reaching their five-year minimum occupation period, rather than CPF policy changes.<br /> <br /> The firm found that mature estates like Bukit Batok, Geylang and Bedok saw the highest year-on-year increase in resale transactions for older flats.<br /> <br /> In its report, OrangeTee & Tie added that the data findings are in tandem with its agents reporting a rising number of inquiries about older flats.<br /> <br /> They have also noticed more collective-sale owners turning to such flats after collecting their sales proceeds.<br /> <br /> The report added: "Some may regard older flats as affordable, given their lower price quantum and large living spaces, and they get to keep a sizeable amount of sales proceeds for retirement or re-investment.<br /> <br /> "With more public education, concerns surrounding the lease decay issue may start focusing on a new narrative that emphasises the importance of financial and retirement planning when a buyer makes a property purchase.<br /> <br /> "With a new perspective, older flats may see a revival in demand. More liquidity would a THE STRAITS TIMES (SINGAPORE)<br /> <div> <br /></div>

Older Singapore HDB flats back in demand after CPF rule change

The Demand for ageing Housing & Development Board (HDB) flats is on the rise in Singapore, two months after the authorities changed C...

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Residency in SK’s Sejong on the rise

<div class="separator" style="clear: both; text-align: center;"> <a href="https://1.bp.blogspot.com/-WfQhOmX3ajY/XVWZ2GsdAdI/AAAAAAAAASA/shFWZlAqJO8ogLaHDmGfKih1NaaiWq2vQCLcBGAs/s1600/11-sk_0.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://1.bp.blogspot.com/-WfQhOmX3ajY/XVWZ2GsdAdI/AAAAAAAAASA/shFWZlAqJO8ogLaHDmGfKih1NaaiWq2vQCLcBGAs/s640/11-sk_0.jpg" width="640" /></a></div> <br /> South Korea's centrally located Sejong city borders Daejeon to the south, Gongju to the west, Cheonan to the north and Cheongju to the east. It is also relatively close to the southern provinces of North Jeolla and North Gyeongsang.<br /> <br /> As of June this year, its population came to 327,643 with the number of households reaching 129,937.<br /> <br /> As the fastest-growing city in South Korea, Sejong is actively attracting people from neighbouring cities and from the Seoul metropolitan area.<br /> <br /> Builders and retailers have rushed to the vicinity of the new Government Complex Sejong in Eojin-dong as well as to Naseong-dong, where some public agencies and state-funded institutes are located.<br /> <br /> It is also one of the few areas in the nation where construction of residential complexes has been vitalised. Near the government complex, visitors can see major apartment brand names such as Hyundai Engineering & Construction's Hillstate and Jungheung Construction's S-Class.<br /> <br /> Sejong has already been designated by the Land Ministry as an area that is likely to see significant property speculation.<br /> <br /> A real estate agent in the city said it was hard to predict what the place would look like a few years from now. "More and more households are moving here from Daejeon (the nation's fifth-largest city) and from South and North Chungcheong provinces."<br /> <br /> He said the number of residents working in the service sector is growing in proportion to the increasing number of civil servants.<br /> <br /> The Ministry of Science and ICT is scheduled to relocate its office from Gwacheon, Gyeonggi province, to Sejong. The Ministry of Interior and Safety finished relocating there in the first quarter.<br /> <br /> Of the 18 government ministries, the complex is home to 12 – the finance, environment and agriculture ministries moved there in 2012, followed by the Trade Ministry, the Employment Ministry and seven others.<br /> <br /> A lingering concern, however, is that a large percentage of civil servants commute between the complex and the Seoul metropolitan area via KTX high-speed trains or government-funded commuter buses.<br /> <br /> "Our daily sales during weekdays far surpass those on weekends," said a food retailer in Sejong. "The families of many civil servants still reside in Seoul and Gyeonggi province due to factors such as their children's education and the lack of infrastructure here, like department stores and general hospitals."<br /> <br /> He also said private consumption among residents was limited as no major financial firm or conglomerate-based enterprise had its headquarters here.<br /> <br /> Nonetheless, analysts shared a positive view of the growth potential of the city, the result of an experiment initiated by former President Roh Moo-hyun.<br /> <br /> <b>Youngest region</b><br /> <br /> Sejong is the youngest region in the nation. Of all Korea's cities and provinces, only Sejong can say the average age of its residents is under 40.<br /> <br /> While the nationwide average for eight major cities and nine provinces is 42.4 years, with even higher averages of 44.2 in Busan and 45.9 in South Jeolla Province, the figure for Sejong was 36.8 as of June – 36.2 for men and 37.4 for women.<br /> <br /> Seoul citizens' average age was 42.4 – 41.5 for men and 43.2 for women – reflecting the nationwide average.<br /> <br /> "The youngest district means the highest percentage of working-age people, people between 15 and 64. This is promising within an aged society," said a research analyst in Seoul.<br /> <br /> Over the past five years, since June 2014, Korea saw its population increase by 609,000 – from 51.23 million to 51.84 million.<br /> <br /> During the same time frame, Sejong city recorded far faster population growth, an increase of 196,000 from 130,000 to 327,000 – the equivalent of 32.1 per cent of the nation's population growth.<br /> <br /> In addition, city officials are pushing ahead with plans for a new KTX station as early as 2025, either in Yongpo-ri or Balsan-ri in Geumnam-myeon. Both areas are just south of the Geum River, a five-minute bus ride from the government complex.<br /> <br /> The envisioned Sejong Station is part of a policy road map unveiled by Mayor Lee Choon-hee last year, which contained 145 pledges for his four-year term that would require about 9.3 trillion won ($7.8 billion) to fulfil.<br /> <br /> The budget for Sejong Station is estimated at 100 billion to 130 billion won, and it could serve as a valuable intermediate point between Osong Station in Cheongju, North Chungcheong province, and Gongju Station in South Chungcheong province.<br /> <br /> Construction of the Seoul-Sejong Expressway has been underway since the time of former President Park Geun-hye. THE KOREA HERALD

Residency in SK’s Sejong on the rise

South Korea's centrally located Sejong city borders Daejeon to the south, Gongju to the west, Cheonan to the north and Cheongju to th...

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Bangkok property project launches rise 11% in H1

<div class="separator" style="clear: both; text-align: center;"> <a href="https://1.bp.blogspot.com/-ak2P09LImGQ/XVWYvclAQUI/AAAAAAAAAR0/vc53f6JF1n8Msv2_lbMlA3outecmy0oWACLcBGAs/s1600/11-story-2_8.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://1.bp.blogspot.com/-ak2P09LImGQ/XVWYvclAQUI/AAAAAAAAAR0/vc53f6JF1n8Msv2_lbMlA3outecmy0oWACLcBGAs/s640/11-story-2_8.jpg" width="640" /></a></div> <br /> Some 219 property projects were launched in the first half of this year in Bangkok and its surrounding areas, an 11.2 per cent increase from the same period last year, the Agency for Real Estate Affairs (Area) reported last week.<br /> <br /> The launches put 55,596 units on the market, with a total value of 221.5 billion baht ($7.2 billion), up 18.6 per cent and 15.4 per cent, respectively, from the year-earlier period.<br /> <br /> Up to 211 of the new projects in the first half are residential, including condominiums, single detached houses, and townhouse. The other eight projects are for commercial buildings, the research said.<br /> <br /> The average residential price was 3.96 million baht per unit, up one per cent from the end of last year, the research said.<br /> <br /> AP (Thailand) Plc led the way on the first-half launches with 5,135 units worth 27.27 billion baht, followed by Pruksa Real Estate Plc with 3,755 units worth 13.66 billion baht, and Supalai Plc with 1,983 units worth 18.73 billion baht.<br /> <br /> The inventory of townhouses on June 30, 2019, was 61,541 units, down 2.7 per cent from the end of last year.<br /> <br /> Meanwhile, the inventory of single detached houses on June 30 was 61,541 units, down 2.5 per cent from the end of last year.<br /> <br /> Condominiums recorded a total inventory of 88,788 units at the end of last month, falling 8.5 per cent from the end of last year.<br /> <br /> In view of the market in the first half of this year, Area forecasts the property market this year will drop 16 per cent compared with last year, when demand had slumped. THE NATION (THAILAND)

Bangkok property project launches rise 11% in H1

Some 219 property projects were launched in the first half of this year in Bangkok and its surrounding areas, an 11.2 per cent increase f...

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VN banks ready for risky lending

<div class="separator" style="clear: both; text-align: center;"> <a href="https://1.bp.blogspot.com/-rXwpwnNh4eI/XVWYEy9twOI/AAAAAAAAARs/mFVI5rOXdZMt6fLk58gNcOZUJe_N6dhMACLcBGAs/s1600/11-story-1_12.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://1.bp.blogspot.com/-rXwpwnNh4eI/XVWYEy9twOI/AAAAAAAAARs/mFVI5rOXdZMt6fLk58gNcOZUJe_N6dhMACLcBGAs/s640/11-story-1_12.jpg" width="640" /></a></div> <br /> Nguyen Quoc Hung, director of the State Bank of Vietnam's (SBV's) credit department, recently told the media that banks have plentiful liquidity and are ready to lend to risky areas, including the property sector.<br /> <br /> "Though we all know real estate is a business with high risks, it does not mean the banks restrict lending to the sector."<br /> <br /> His statement came in the wake of the central bank making public a draft circular on adjustments to the Circular 36/2014/TT-NHNN, stipulating prudential ratios and limits in activities of credit institutions and foreign bank branches.<br /> <br /> The draft circular set the risk weight asset ratio to 150 per cent for mortgages worth three billion dong ($126,000) and the rate for loans worth 1.5 to three billion dong at 100 per cent (the current ratio for both loans is 50 per cent).<br /> <br /> Besides, it will also adjust the ratio of short-term deposits that can be used for medium- and long-term loans. Under a three-phase roadmap lasting until 2022, the ratio will be reduced to 30 per cent by July 1, 2020, from the current 40 per cent.<br /> <br /> The adjustments are expected to help the central bank control liquidity risks to ensure the safety of the banking industry in the face of economic changes, contributing to the country's sustainable development.<br /> <br /> But many experts have slammed this draft circular saying tightening credit for buying luxury homes could shock the housing market.<br /> <br /> It would seriously affect the development of the high-end segment, which is expected to help Vietnam improve infrastructure quality and people's living standards, they claimed.<br /> <br /> They suggested that policy makers should reconsider to ensure balanced development of the property market.<br /> <br /> The central bank should ask banks to carefully evaluate the financial capacity of buyers before lending to them instead of tightening credit to the entire high-end segment, they said.<br /> <br /> A spokesman for the Vietnam Real Estate Association said credit for buying land for speculation purposes could be tightened but it was not necessary to tighten credit for home buying because it stimulates other industries such as construction, cement and steel.<br /> <br /> In response to these protests, Hung said the credit tightening would apply to all sectors, not only real estate.<br /> <br /> "Banks do not lack capital but need to limit risks. So they will only lend to effective projects that meet legal requirements and prove to be profitable."<br /> <br /> In reality, banks are offering big loans to individuals to buy houses at attractive interest rates.<br /> <br /> Vietcombank is offering interest rates of 7.7 to 8.1 per cent for the first 12 months and 8.7 to 8.9 per cent for the first 24 months.<br /> <br /> Clearly, the central bank's new rules are not going to make lenders turn their backs on the real estate sector.<br /> <br /> Last year outstanding loans to the real estate sector, including both to developers and house buyers, grew by 31.7 per cent.<br /> <br /> In the first quarter of this year it grew by 3.29 per cent, higher than the overall lending growth. VIET NAM NEWS

VN banks ready for risky lending

Nguyen Quoc Hung, director of the State Bank of Vietnam's (SBV's) credit department, recently told the media that banks have plen...

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Researchers: HCMC office space market growing strong

<div class="separator" style="clear: both; text-align: center;"> <a href="https://1.bp.blogspot.com/-aDXL5iX9GTU/XVWXFtyfajI/AAAAAAAAARc/F90KLUZD3I0vqkpyuBHPotKZoYOyVRE2wCLcBGAs/s1600/10-hcmc_0.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://1.bp.blogspot.com/-aDXL5iX9GTU/XVWXFtyfajI/AAAAAAAAARc/F90KLUZD3I0vqkpyuBHPotKZoYOyVRE2wCLcBGAs/s640/10-hcmc_0.jpg" width="640" /></a></div> <br /> The flexible office market in Ho Chi Minh City comprising co-working and serviced offices is among the fastest growing in the Asia Pacific, market researchers said.<br /> <br /> At a meeting with the media to report on the city property market in the first half of the year, CBRE said Ho Chi Minh City was one of the top three flexible office markets in the Asia Pacific.<br /> <br /> Of its total office space, flexible office accounted for two per cent at the beginning of this year, and would increase to five per cent by the end of this year, it said.<br /> <br /> The development of the market is owed to the diverse range of business models in Vietnam, according to a CBRE executive.<br /> <br /> A representative of batdongsan.com.vn, an online channel providing information about the real estate market, told Viet Nam News the market had grown strongly and would further accelerate in future.<br /> <br /> It was no more a preserve of small companies with large foreign players having made an entry, he said, citing the example of the multinational Regus, which had opened 10 offices in the country.<br /> <br /> "The development of co-working space is an unavoidable trend since office space supply in big cities like Hanoi and Ho Chi Minh City cannot meet demand.<br /> <br /> Besides, co-working is suitable for Vietnamese companies, who are mostly small and medium-sized enterprises."<br /> <br /> "The market would continue to grow in terms of quality as well as size," he said.<br /> <br /> Companies would not only offer space in old places but also in Grade A and Grade B office buildings, he said.<br /> <br /> Speaking to Viet Nam News, a Savills executive said the co-working segment in Ho Chi Minh City had grown at 90 per cent a year for the last two years and had around 37,000sqm to rent, mostly in the central area.<br /> <br /> This growth was impressive compared with other markets in the region like Singapore and Hong Kong, he said.<br /> <br /> The market now has many famous foreign brand names like WeWork, Up, Dreamplex, Regus, Compass and Kloud.<br /> <br /> The market would continue to develop strongly thanks to demand from local and foreign companies who want to cut cost or are in the first stages of studying the market, he said.<br /> <br /> The status of the market can be clearly seen from the performance of the companies in the industry.<br /> <br /> A start-up offering co-working space, Toong is now a successful company which has been growing and growing.<br /> <br /> Toong CEO and founder Duong Do also said: "All offices the company has in Vietnam achieved high occupation rates of 85-100 per cent six weeks after opening."<br /> <br /> Duong said his company was planning to offer another 6,000sqm of space in Vietnam, 50,000sqm in Ho Chi Minh City by next year.<br /> <br /> "Our clients are from 36 sectors. They are individual clients and companies with up to 200 workers, both newly established and long-standing."<br /> <br /> The short supply of traditional office space is also cited as a major reason for the industry's growth.<br /> <br /> CBRE said the Ho Chi Minh City office market saw no new supply in the second quarter of this year in either grade.<br /> <br /> Due to limited supply in the first half, rents for both grades A and B continued to increase but at a moderate pace, especially Grade A. VIET NAM NEWS

Researchers: HCMC office space market growing strong

The flexible office market in Ho Chi Minh City comprising co-working and serviced offices is among the fastest growing in the Asia Pacifi...

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Developers in Bangkok go green and reap the benefits

<div class="separator" style="clear: both; text-align: center;"> <a href="https://1.bp.blogspot.com/-OkzViKm3cNM/XVWWdSUUcHI/AAAAAAAAARQ/HMZUSMKTot0R-okCZpNgf6XDhHbN-H29wCLcBGAs/s1600/10-bk.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" data-original-height="440" data-original-width="780" height="360" src="https://1.bp.blogspot.com/-OkzViKm3cNM/XVWWdSUUcHI/AAAAAAAAARQ/HMZUSMKTot0R-okCZpNgf6XDhHbN-H29wCLcBGAs/s640/10-bk.jpg" width="640" /></a></div> <br /> Property developers in Bangkok concerned about the environment are investing in the "green architecture" of Leadership Energy and Environmental Design (Leed), says one of the principals at JLL, an international real estate consultancy company.<br /> <br /> There are currently 1.26 million sqm of Leed office space in the Thai capital.<br /> <br /> Dexter Norville, one of the bosses at JLL, said on Monday that 877,000sqm of that space – nearly 70 per cent – is managed by JLL.<br /> <br /> Excluding owner-occupied offices, the Leed-certified gross floor area in Bangkok totals 630,000sqm, of which 577,000 (more than 90 per cent) is managed by JLL.<br /> <br /> Leed is one of the world's most popular green-building certification programs. Developed by the US Green Building Council (USGBC), it features rating systems for design, construction, operation and maintenance to help building owners and managers be environmentally responsible and use resources efficiently.<br /> <br /> "While Leed certification generally focuses on the physical building and its impact on the environment, the Well Building Standards are a series of certifications by the International Well Building Institute that broadly assess the building's contribution to the wellness of people who use it," said Norville.<br /> <br /> "Well certification is becoming increasingly popular among landlords and developers."<br /> <br /> JLL is management consultant on two projects pursuing Leed certification – One City Centre, a Grade A office development that is a Raimon Land-Mitsubishi Estate joint venture scheduled for completion in 2022, and One Bangkok, Thailand's largest mixed-use development project, a joint venture between TCC Asset and Frasers Property Holdings.<br /> <br /> One Bangkok is also seeking Well certification.<br /> <br /> Norville says Leed buildings involve high-quality standards and must also achieve the operating goals for which they were built. Some also receive Leed Ebom (Existing Building Operation and Maintenance) certification, showing that the landlord and manager are committed to sustainability.<br /> <br /> Chakrapan Pawangkarat, Norville's fellow chief of Property and Asset Management at JLL, said landlords are increasingly aware that sustainable development offers a competitive advantage.<br /> <br /> In fact, both landlords and occupiers benefit from being recognised for their commitment to social responsibility and cost-savings through more efficient energy consumption.<br /> <br /> A growing number of developments incorporate green features to obtain certification from reliable programmes such as Leed by the USGBC and the Thai Rating of Energy and Environmental Sustainability, which was established by the Thai Green Building Institute in collaboration between the Association of Siamese Architects and the Engineering Institute of Thailand.<br /> <br /> "To achieve their sustainability ambition, many developers and owners seek help from consultants and experts to assist with developing, operating and managing their green real estate. This has contributed significantly to our growing portfolio of Leed-certified buildings that we manage in Thailand, building on our expertise in this area," Chakrapan says. THE NATION (THAILAND)

Developers in Bangkok go green and reap the benefits

Property developers in Bangkok concerned about the environment are investing in the "green architecture" of Leadership Energy a...

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