Top Stories Khaw: Lease Buyback scheme may be made more flexible Source: Business Times / Singapore THE government is studying ways to make the Lease Buyback scheme more flexible to suit senior citizens joining the scheme at different ages. These could include varying the number of years that a senior can retain his HDB flat's lease when he joins the scheme and sells part of his flat's lease back to the Housing Development Board (HDB). Minister for National Development Khaw Boon Wan said this on Sunday, during a post-National Day Rally dialogue for Sembawang GRC, according to reports from The Straits Times and Channel NewsAsia.
Currently, those who join the Lease Buyback scheme retain a fixed portion of 30 years on their flats' leases, and sell the rest back to HDB for proceeds that are used to top up their Central Provident Fund (CPF) retirement account for annuity payouts. Govt looking at flexible options for lease buyback Instead of 30-year lease, flat owners may get to vary the number of years Source: Straits Times / Top of The News ELDERLY flat owners who opt for the Lease Buyback Scheme may be given the option to retain more or fewer years on their flat's lease, in a bid to make the scheme more flexible. Minister for National Development Khaw Boon Wan said this yesterday during a post-National Day Rally dialogue for youth in Sembawang GRC, adding that his ministry is set to announce changes to the scheme this week. Currently, under the scheme, retirees retain 30 years of the lease on their flat and sell the remaining period to the Housing Board in return for monthly payouts. The proceeds can be used to top up their Central Provident Fund (CPF) Retirement Account for annuity payouts. But depending on when they join the scheme, said Mr Khaw, some seniors may find the 30- year lease too long or too short. For example, those who join when they are younger may worry about outliving the lease period, while those who join when they are older, say at 80 years old, may find the 30-year period too long. To address these concerns, he said the Government could vary the period of the lease that it buys back. He suggested, for example, a 35-year period for those who sell part of the lease back at 65 years old, so that it would last until they are 100 years old. Someone who joins the scheme late may be able to sell the Government a longer part of his lease to get a bigger payout, he said. His comments yesterday followed Prime Minister Lee Hsien Loong's announcement during his National Day Rally speech last month that the Lease Buyback Scheme will be extended to owners of four-room flats as well, as part of the larger push to make sure that Singaporeans have enough for retirement. Mr Khaw said that this makes about 75 per cent of seniors eligible for the scheme, compared with about 35 per cent previously when it was limited to owners of smaller flats. At a separate dialogue in Pasir Ris-Punggol yesterday, Deputy Prime Minister Teo Chee Hean was asked why the scheme was not extended to include even larger flats. Mr Teo, the Coordinating Minister for National Security and the Home Affairs Minister, said the scheme is meant for retirees who want to continue living in their own flats. He added: "We don't need to encourage people to stay in flats which are much bigger than they really need." Those with larger flats, he said, can consider other alternatives to get income, such as renting out their flat or downsizing to a smaller one. At the Sembawang event, Mr Khaw was asked if Sembawang is slated for large-scale development projects, like those in Jurong highlighted in Mr Lee's National Day Rally speech this year. Mr Khaw said the Government had "massive plans" for the development of the North, and that facilities at Sembawang will be ramped up as the population grows. Noting that there have been requests for sports facilities, he said a site has been found and the details will be announced in a few months.
Sembawang town is still relatively small, Mr Khaw said, and flats were being built over the last three years to grow its population. Business undergraduate Han Dong, 25, who was at the dialogue, said he was glad that the concerns of young people were on the Government's mind. -By Lim Yan Liang Lease Buyback, education hot topics at post-NDR dialogueSource: Channel News Asia / Singapore SINGAPORE: Greater flexibility for the Lease Buyback Scheme and faster career progression for ITE and polytechnic students were some of the suggestions made by Pasir Ris-Punggol residents on Sunday (Aug 31). The residents were taking part in a dialogue to discuss the Prime Minister's National Day Rally speech. About 250 people attended the session to share their views with Deputy Prime Minister Teo Chee Hean and other MPs. The Lease Buyback Scheme allows elderly flat owners to retain 30 years of their lease and sell the rest to the Housing and Development Board (HDB). This was previously restricted to three-room and smaller flats. But Prime Minister Lee Hsien Loong announced at the National Day Rally on August 17 that the scheme will be extended to four-room flats. At Sunday morning's dialogue, Pasir-Ris Punggol residents offered mixed views on the scheme. Some were not satisfied with the amount the HDB pays flat owners for the remaining lease. Others felt that while it was a good scheme, it should be extended to beyond four-room flats. Deputy Prime Minister Teo said the scheme is meant as an extra option for elderly residents who want to continue living in their flats. "If you think that it is not fair, you always have the other choices - sell your flat, keep it or rent it out," he said. Mr Teo also said that the scheme was extended to four-roomers "because we think that we don't need to encourage people to stay in a flat which is much bigger than they really need." Some participants raised the point that an elderly couple may want to keep a bigger flat for their children. Participant Tang Yiam Boh said: "Perhaps some of the grandfathers or grandmothers may not want to sell the flat or even rent out the flat, because of the sentimental value. They also hope that their child, their grandchild and maybe even by then, their great grandchild, will come back...so they may want to keep the flat for themselves. So maybe this option should still be considered for the bigger flats as well." Education was another hot topic at Sunday's discussion, following the government's move to create better opportunities for ITE and polytechnic students. Residents wanted to know how this can be accelerated. MP Teo Ser Luck said there are many companies which are willing to offer jobs to such graduates. "The thing we are afraid of is whether these are good companies or not, whether they have a good career path for our students or not. Looking at ASPIRE's recommendation, they are working very hard to make sure the skills of our ITE and poly graduates...whatever they learn, they can apply to the job market." There were also suggestions that it would be helpful to students if the government were to highlight the jobs that would be in most demand in the next five to ten years. The need to assure future generations that they will not be burdened by a growing ageing population was also an issue that was raised during the dialogue. In response, DPM Teo said that it is important to help seniors now through programmes such as the Pioneer Generation Package, as this will help to lessen the burden for the younger working Singaporeans. - CNA/ir More flexibility planned for lease buyback scheme: KhawMandatory 30-year lease may be shortened or lengthened to suit needs of various age groups, says ministerSource: Today Online / Singapore SINGAPORE — Ahead of expected announcements on details of the expansion of the Lease Buyback Scheme to four-room flat owners, National Development Minister Khaw Boon Wan yesterday hinted at other possible changes to the scheme — namely, allowing home owners to retain a range of leases. The Lease Buyback Scheme in its current form allows senior Housing and Development Board (HDB) flat owners to keep 30 years of their flat’s lease and sell the rest to the Government, with proceeds used to top up their Central Provident Fund Retirement Accounts for annuity payouts. Prime Minister Lee Hsien Loong announced at the National Day Rally last month that the scheme, limited to three-room HDB flats or smaller, would be extended to four-room units. Speaking at a post-National Day Rally dialogue with youth in Sembawang GRC yesterday, Mr Khaw said there is a possibility the mandatory 30-year lease a home owner must keep may be shortened or lengthened to suit the needs of various age groups. Noting that some groups had discussed the scheme during the dialogue, Mr Khaw said some of the comments were valid. Home owners who come on board the scheme at 65 will be 95 at the end of their 30-year lease and there are “quite a number” of Singaporeans who live beyond 95, making 30 years too short, he said. On the other side of the fence are comments that “30 years is too long because there could be people coming in at the age of 80 … very few people live beyond 110 years old”. Musing aloud, Mr Khaw said: “For example, you can extend (the lease retained) from 30 to 35 years — that will bring applicants to the age of 100, which I think is probably sufficient for practically most of the users of this scheme. And likewise, on the other hand, to see how we can shorten the lease so you can have more upfront cash proceeds for those who are 80, 75 years old.” Mr Khaw said he is actively studying how to introduce such flexibility and hopes to make clearer announcements this week. At a separate dialogue at Sengkang Community Club — also held to discuss the National Day Rally — Deputy Prime Minister Teo Chee Hean addressed calls by some residents for the scheme to be extended to larger HDB flats or even private property. Mr Patrick Yeo and Mr Tan Yiam Boh, both residents attending the dialogue, had called for the scheme to be extended to larger flats such as five-room and executive units. Some residents are reluctant to downgrade to small units and prefer to rent more rooms out, said Mr Yeo. Explaining the origins of the scheme, Mr Teo, who is also Member of Parliament (MP) for Pasir Ris-PunggolGRC, said it is aimed at helping elderly Singaporeans who are living on their own to continue doing so. “The three-room flat, well, is a little bit bigger than you need for two people, but is still okay. A four-room flat is a little bigger than that still, because you have two spare rooms for a four-room flat for two people,” said Mr Teo. “Now, you talk about the executive flat. Sometimes, you call it a six-room flat; for two people, that’s really a very, very big flat.” Owners of such bigger units, he said, could consider other options first instead of the Lease Buyback Scheme. “We don’t need to encourage people who stay in a flat that is really much bigger than (what) they really need.” For private property owners, Pasir Ris-Punggol MP Gan Thiam Poh pointed out that an option that could be considered is reverse mortgages. Under such arrangements, an owner retains the full lease of his flat, but takes a loan against his unit as collateral and will have to repay the loan with accumulated interest on termination of it or death. In 2006, NTUC Income offered reverse mortgages to elderly Singaporeans, but it was later canned due to limited demand. In March, Mr Khaw said at his ministry’s Committee of Supply debate that the Government was starting a study on reverse mortgages as a means for the elderly to retire comfortably. -By Kok Xing Hui http://www.channelnewsasia.com/news/singapore/lease-buyback-education/1338766.html
http://www.todayonline.com/singapore/more-flexibility-planned-lease-buyback-scheme-khaw Singapore Real Estate Singapore economy needs ‘talent’ at middle levels: Teo Ser Luck More than 300 firms are waiting to hire ITE and polytechnic graduates, says Minister of State (Trade and Industry) Teo Ser Luck.Source: Channel News Asia / Singapore SINGAPORE: With a tight labour market, Singapore needs talent at the “middle” levels and the Government has been working with companies to help place good polytechnic and Institute of Technical Education (ITE) graduates in these jobs. Speaking at a post-National Day Rally (NDR) dialogue with Pasir Ris-Punggol GRC residents on Sunday (Aug 31), Minister of State (Trade and Industry)Teo Ser Luck, who is also Member of Parliament for the constituency, said more than 300 firms are waiting to hire ITE and polytechnic graduates and the Government is trying to help in job matching. He was responding to a question from a resident, who asked why it had been necessary to set up the Applied Study in Polytechnics and ITE Review committee to enhance education and career development for non-graduates. Mr Teo said firms could not have a situation where they have only managers and no supervisors and middle-level staff. “In fact, there are more jobs at that kind of middle level and supervisory level waiting to be filled. So, when I work with companies to find ITE and polytechnic graduates, actually, they are very willing to offer jobs and traineeship,” he said. “(The) labour policy (has been) tightened, so they need a lot of ITE and polytechnic students.” Another resident was concerned that the opening of more pathways to universities – introduced in the past few years – would lead to an oversupply of graduates who earned degrees in areas of their interest, but fail to find a job. In response, Deputy Prime Minister Teo Chee Hean, who was also present at the dialogue, said young people should do something that is practical and leads to a decent job. Interests can be pursued as a passion rather than a career, he added. He noted that youth nowadays could take a year off to pursue their passion with the support of their parents, instead of heading straight to work. “If you take your time and develop an interest, and you pursue the interest (as) something that can give you a decent living, I think that is okay,” he said. “But if you pursue an interest and find it difficult to make a living after that, and you expect your parents to pay a lot of money for you … I think for young people, that is not (the) most responsible thing to do.” Separately, at another post-NDR dialogue in Sembawang GRC on Sunday attended by about 150 youth, some said it might take a generation to change the population’s mindset to one that does not limit people based on paper qualifications. Responding, Sembawang GRC MP Vikram Nair said: “I think the mindset shifts that are required are probably in the students themselves. And here is a tough balance because the message is not ‘don’t study’; (it) also is not ‘studying is not important’. But I think the key message is wherever you are, do your best and there will be options and opportunities available.” -TODAY/cy S’pore economy needs ‘talent’ at middle levels in tight labour marketMore vacancies at supervisory levels waiting to be filled, says Teo Ser Luck Source: Today Online / Singapore SINGAPORE — With a tight labour market, Singapore needs talent at the “middle” levels and the Government has been working with companies to help place good polytechnic and Institute of Technical Education (ITE) graduates in these jobs. Speaking at a post-National Day Rally (NDR) dialogue with Pasir Ris-Punggol GRC residents yesterday, Minister of State (Trade and Industry)Teo Ser Luck, who is also Member of Parliament for the constituency, said more than 300 firms are waiting to hire ITE and polytechnic graduates and the Government is trying to help in job matching. He was responding to a question from a resident, who asked why it had been necessary to set up the Applied Study in Polytechnics and ITE Review committee to enhance education and career development for non-graduates. Mr Teo said firms could not have a situation where they have only managers and no supervisors and middle-level staff. “In fact, there are more jobs at that kind of middle level and supervisory level waiting to be filled. So, when I work with companies to find ITE and polytechnic graduates, actually, they are very willing to offer jobs and traineeship,” he said. “(The) labour policy (has been) tightened, so they need a lot of ITE and polytechnic students.” Another resident was concerned that the opening of more pathways to universities — introduced in the past few years — would lead to an oversupply of graduates who earned degrees in areas of their interest, but fail to find a job. In response, Deputy Prime Minister Teo Chee Hean, who was also present at the dialogue, said young people should do something that is practical and leads to a decent job. Interests can be pursued as a passion rather than a career, he added. He noted that youth nowadays could take a year off to pursue their passion with the support of their parents, instead of heading straight to work. “If you take your time and develop an interest, and you pursue the interest (as) something that can give you a decent living, I think that is okay,” he said. “But if you pursue an interest and find it difficult to make a living after that, and you expect your parents to pay a lot of money for you … I think for young people, that is not (the) most responsible thing to do.” Separately, at another post-NDR dialogue in Sembawang GRC yesterday attended by about 150 youth, some said it might take a generation to change the population’s mindset to one that does not limit people based on paper qualifications.
Responding, Sembawang GRC MP Vikram Nair said: “I think the mindset shifts that are required are probably in the students themselves. And here is a tough balance because the message is not ‘don’t study’; (it) also is not ‘studying is not important’. But I think the key message is wherever you are, do your best and there will be options and opportunities available.” -By Xue Jianyue http://www.channelnewsasia.com/news/singapore/singapore-economy-needs/1339260.html
http://www.todayonline.com/singapore/spore-economy-needs-talent-middle-levels-tight-labour-market Bidadari to have first bus interchange underground To be ready by 2019, it will sit below carpark and garden flanked by flats Source: Straits Times / Top of The News THE new Bidadari housing estate will be home to Singapore's first underground air-conditioned bus interchange below Housing Board flats. The new interchange next to Woodleigh MRT station, expected to be ready by 2019, will cater to five bus services. It will be "tucked away and hidden from the street view", sitting below a carpark and neighbourhood garden flanked by blocks of flats, according to the HDB's plans seen by The Straits Times. The Housing Board handed out design briefs and sketches to architects and engineers last week as it invited them to draw up architecture and engineering plans for the new housing estate. The bus interchange is part of an integrated transport, commercial and residential project that will form the estate's town centre. Besides the interchange, the project will also have a foodcourt and 360 flats, split equally into three- and four-room flats. Sales of these Build-To-Order flats are expected to be launched in August next year, with construction starting in 2016. They are among 10,000 HDB flats and 1,000 private homes slated to be built on the sprawling former cemetery grounds. The flats will have green features: Staircases will have LED lights with motion sensors and lifts will be partly powered by batteries charged by the lifts' own movements, like hybrid cars. Transport researcher Lee Der Horng said the bus interchange will make it very convenient for the HDB residents, most of whom do not own cars. "With the bus interchange right on their doorstep, there is no reason not to take public transport," said the National University of Singapore professor. But property expert Ku Swee Yong is worried about disamenities such as noise and air pollution. "The construction and maintenance costs for underground facilities are higher, not to mention the electricity bill for air-conditioning," he said. However, Professor Lee said pollution and noise can be managed with technology and the trade-off for convenience is worth it. Meanwhile, the Housing Board's plans for Bidadari have drawn support from cyclists for promoting cycling. The HDB wants Bidadari to be designed for commuting on foot and by bicycle, and has asked architects to plan for park connectors, cycling paths and cycling ramps at staircases. It has even set a minimum of one sheltered bicycle parking space to be built for every six flats, the same ratio as that for motorcycles. This is believed to be the first time the HDB has spelt out such a ratio. The ratio is low, but "it is a very useful step to establish a baseline requirement", said avid cyclist Francis Chu, co-founder of the LoveCyclingSG group. "Cycling is the ideal mode of transport for short distances within an HDB town and the neighbourhood," said Mr Chu. "Having enough safe parking lots for bicycles is a good start," he added. -By Toh Yong Chuan, Senior Correspondent Views, Reviews & Forum Loosen HDB policy to help elderly be more financially independent Source: Today Online / Voices Most elderly people desire to be financially independent and self-reliant when they reach retirement age. After toiling hard, they also hope to have something to bequeath to their children. Where possible, most seniors prefer not to depend on any handouts as they live out their sunset years. To help them achieve that, the Housing and Development Board (HDB) could allow elderly flat owners who also own a private property to downgrade to a smaller flat without having to sell their private property. Current regulations require them to dispose of their private property before they can own another HDB flat.
The proceeds from the sale of their bigger flat and the rental from their private property, coupled with their Central Provident Fund savings, should adequately provide for their retirement. Those who own more than one private property may not qualify. -By Jolly Wee http://www.todayonline.com/voices/loosen-hdb-policy-help-elderly-be-more-financially-independent Global Economy & Global Real Estate Property slowdown becomes more evident in Johor Sentiment may get worse in 2015-2016: Maybank IB Research Source: Business Times / Malaysia [KUALA LUMPUR] Cracks are starting to show in Iskandar Malaysia's once-booming property market, The Star reported. UEM Sunrise Bhd, considered a bellwether to Iskandar, last week slashed its sales target for 2014 to RM2 billion (S$792 million) from RM3.2 billion, citing weakness in the market for homes in the economic corridor south of Johor. This comes as a slew of high-rise apartments - many of them from the China developers, and many of them on the waterfront - are set to flood the market. And things could get worse before they get better, according to the report.It is believed that about half of the condominiums in Country Garden Danga Bay, which last year rolled out a record 9,000 high-rise units, have remained unsold, and the Guangdong-based property giant is now looking increasingly desperate to unload its stock by either hiking discounts of dropping prices, although the exact quantum is unknown.
The Danga Bay project was launched with much fanfare last year at an average of RM900 per square foot. Most of the real estate firms in Johor Baru have been roped in to sell homes for Country Garden Danga Bay, and it is dangling commissions of up to 8 per cent versus the typical 2-3 per cent as an added incentive, brokers told StarBizWeek. -From Kuala Lumpur, Malaysia Dubai’s Emaar Plans Share Sale of Malls Unit Next Month Source: Bloomberg / News Emaar Properties PJSC (EMAAR) climbed for a second day on the Dubai-based developer’s plans to sell at least 15 percent of its mall unit in September and distribute 5.3 billion dirhams ($1.44 billion) of the proceeds as a dividend. Shares advanced 5.4 percent to 11.75 dirhams, the highest since February 2008, at 10:42 a.m. local time. That brings the two-day gain to 15 percent. The company, which said in March it would sell 25 percent of the business, will make the dividend payment as part of plans to distribute about 9 billion dirhams to its owners including the Dubai government, Emaar said in a statement yesterday. The listing is expected in October, an Emaar spokesman said, asking not to be identified citing company policy. Emaar is focusing on recurring hotel and mall revenue to cushion itself from shocks in the emirate’s property market. The company is benefiting from a tourism and retail boom at its prized Dubai Mall, which received 75 million shoppers last year and features hundreds of stores as well as an underwater zoo, skating rink and the world’s most expensive cupcakes. “Emaar is the crown jewel of Dubai,” Taher Safieddine, an analyst at Shuaa Capital PSC in the city, said by telephone. “Demand will be tremendous as this is one of the most important mall operators in the world with high-quality assets and room for growth.” The shares spurred the benchmark DFM General Index 1.8 percent higher to 5,152.61, headed for the strongest level since May. Share AllocationAt least 70 percent of the Emaar Malls offering will be allocated to qualified institutional investors and 30 percent to individuals, the company said. A minimum 10 percent will be earmarked for Emaar shareholders as of Sept. 10, while the Emirates Investment Authority reserved 5 percent of the offering allocated to institutions. Properties owned by Emaar Malls were valued at 39.8 billion dirhams by Jones Lang LaSalle in June, Emaar said. Assuming a pro-forma net debt of 6.7 billion dirhams to 6.8 billion dirhams, this would imply a net asset value of 33 billion dirhams to 33.1 billion dirhams, the company said. The developer, which said in March it expected to raise between 8 billion and 9 billion dirhams, received an exception from the regulator allowing it to sell as little at 15 percent of its shares in the Dubai listing. Regulations in the United Arab Emirates require companies to sell at least 55 percent. ‘Wrong Message’An exception was necessary because “allowing Emaar to list in London would have sent the wrong message about the local market and deprived Dubai of one of its most stable companies,” Safieddine said. Bank of America Merrill Lynch, JPMorgan Chase & Co. and Morgan Stanley are joint global coordinators of the offering. EFG-Hermes Holding, Emirates Financial Services, HSBC Bank Middle East Ltd., National Bank of Abu Dhabi and Rothschild are also involved in the sale. Emaar Malls’ assets include four shopping malls and 30 community-shopping and retail centers with a total gross leasable area of around 5.9 million square-feet. The properties had 95 percent occupancy during the first half of 2014, according to the statement. Aside from the flagship Dubai Mall, Emaar owns the Dubai Marina Mall, Souk Al Bahar and Gold & Diamond Park. The Dubai Mall is the world’s largest by total built-up area and sixth largest by gross leasable area. The IPO “for the first time combines institutional and retail shareholders in the same offering on the DFM,” Chairman Mohamed Alabbar said in the statement. -By Zainab Fattah |