Views, Reviews & Forum How to avoid 'alumni' effect with HDB priority Source: Straits Times Most Singaporeans surveyed support the Housing Board's plans to encourage couples to live near their parents. But how to do this without penalising other applicants too harshly is another question. In a blog post last month, Minister for National Development Khaw Boon Wan noted that half of all couples want to live with or near their parents, but only 37 per cent are able to do so. "We must do more to help families stay close to one another," he said.
Married couples' ideas for housing Source: Straits Times A new quota for Build-to-Order (BTO) flats and extending grants to second-timers purchasing resale flats close to their parents - these were some of the ideas floated by married couples at a housing dialogue yesterday at the National Library.
Global Economy & Global Real Estate London House Prices Fall Back From Record High Source: Bloomberg / Luxury Asking prices for London homes fell from a record this month in a sign buyer concern about overpaying is prompting them to step back from the market, according to Rightmove Plc. Values in London slipped 0.5 percent to an average 589,776 pounds ($999,700), the first decline this year, the property website operator said today. Prices in Kensington and Chelsea, Britain’s most expensive district, fell 0.3 percent to 2.38 million pounds. Across the U.K., they rose 0.1 percent, a less-than-average increase for this time of year. “Parts of the London market are starting to run out of steam,” Rightmove director Miles Shipside said. “It’s an example to the rest of the country of what happens when affordability and common sense get stretched too far.” The slowdown comes as Mark Carney prepares to lead a discussion among Bank of England financial-stability officials tomorrow on whether action is needed to prevent property from overheating. Rightmove said new tougher mortgage rules and a cooling in demand may have taken some momentum from the market. Only a third of London’s 32 boroughs saw asking prices rise this month, Rightmove said. The largest increase was in Westminster, the second-most expensive district, where values climbed 3.5 percent. Prices in Haringey, north London, plunged 4.8 percent. U.K. home prices have surged in the past year amid near record-low borrowing costs and a strengthening economic recovery. In London, values got an extra boost from cash-rich foreign investors seeking a haven. Rightmove’s report showed U.K. house prices have risen 7.7 percent in the past year, with London up 14.5 percent. Bubble WarningsThe surge has prompted warnings from both the BOE and international groups such as the European Commission. Carney said last week that housing debt is a concern and the government plans to give the central bank additional powers to curb mortgage lending. That may further restrict growth after the introduction of new rules in the Mortgage Market Review. “Through luck or judgement it appears that the timing of the MMR, more property for sale in all regions, and a tail-off in pent-up buyer demand are alleviating some of the upwards price pressure,” Shipside said. “This will come as a relief to the governor of the Bank of England and the FPC.” -By Fergal O’Brien http://www.bloomberg.com/news/2014-06-15/london-house-prices-fall-back-from-record-high.html Dubai’s Only REIT Sees Hidden Gems in City’s Underrated Offices Source: Bloomberg / News Dubai’s only real estate investment trust may spend about 675 million dirhams ($184 million) on Dubai office buildings, betting on a part of the market that missed out on the city’s property rebound. Emirates REIT (CEIC) Ltd. will only consider buildings with a single owner after properties with multiple landlords contributed to the office market’s stagnation, Executive Deputy Chairman Sylvain Vieujot said in an interview in Dubai. “We won’t look at a tower that has been sold to 200 people,” Vieujot said. “This is what gave the office market a bad reputation, but it also gives us an opportunity because we think it’s mispriced.” Office values tumbled with the rest of Dubai’s property market after 2008 as speculation-driven construction exceeded demand from tenants. A recovery that lifted homes, shops and hotels over the last two years did little to improve the office market as larger businesses shunned buildings sold to multiple owners under a system known as strata title. Office prices increased by 9 percent in the year through March while rents gained 11 percent, up from a 1 percent rise a year earlier, according to broker Colliers International. Values remain significantly lower than their pre-crash levels. Emirates REIT was founded in 2010 and the company raised $175 million in an initial public offering on April 8. The stock, traded in dollars, has gained about 7 percent since the company’s debut, giving the company a market value of $434 million. Targets IdentifiedThe company is considering buying three buildings and it’s talking with developers and banks in Dubai and Abu Dhabi that took over properties after owners defaulted on loans, Vieujot said. The REIT owns office buildings in Media City, Dubai Internet City, Sheikh Zayed Road and Dubai International Financial Centre. “There are a lot of opportunities in offices still and rents will grow,” Vieujot said. “If you buy a single-held property today, you might have good upside.” Demand for offices from large companies and startups is expected to increase as Dubai’s preparation to host the Expo 2020 global trade fair creates about 277,000 jobs, broker Jones Lang LaSalle Inc. said in April. Emirates REIT generally targets a net return on investment of around 10 percent, he said. Vieujot declined to specify which properties or areas the company is considering, saying he’s concerned about alerting competitors. The fund posted a total return of 25 percent in 2013, he said. Eiffel TowerThe REIT was established by Eiffel Management and Dubai Islamic Bank PJSC. Vieujot is chief executive officer of Eiffel Holding Ltd., which was the main shareholder of Societe de la Tour Eiffel until a few months ago. Tour Eiffel operated the Eiffel Tower under a leasehold agreement until the city of Paris took back the monument in 1996. Emirates REIT may buy empty buildings if offered at a discount and build up the occupancy itself, he said. The potential increase in property values would help provide long-term growth. More than 600,000 square meters (6.5 million square feet) of office space, or 9 percent of current supply, is expected to hit the market by the end of this year, Jones Lang said. Another 1.5 million square meters of offices is scheduled for completion by the end of next year. Emirates REIT owns more than 10 properties, mostly office buildings. Last month it bought a community mall in Dubai Marina for 118 million dirhams. It purchased a school from GEMS Education in Dubai and is looking at investments in warehouses, parking spaces, schools and health-care facilities, Vieujot said. Banks are becoming more willing to sell properties on their balance sheets as values rebound from the emirate’s 2008 property crash, Vieujot said. Rising prices mean “they no longer feel that its a distressed fire sale,” he said. -By Zainab Fattah |