{"id":137258,"date":"2023-06-05T08:16:57","date_gmt":"2023-06-05T01:16:57","guid":{"rendered":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-extends-may-2023-sales-deadlines-singapore-grapples-with-housing-affordability-issues-and-more\/"},"modified":"2023-06-05T16:29:31","modified_gmt":"2023-06-05T09:29:31","slug":"hdb-extends-may-2023-sales-deadlines-singapore-grapples-with-housing-affordability-issues-and-more","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hdb-extends-may-2023-sales-deadlines-singapore-grapples-with-housing-affordability-issues-and-more\/","title":{"rendered":"HDB Extends May 2023 Sales Deadlines, Singapore Grapples With Housing Affordability Issues, and More"},"content":{"rendered":"


\nHDB Extends May 2023 Sales Deadlines, Singapore Grapples With Housing Affordability Issues, and More29 June to 5 May 2023
\n\u00a0
\nHDB\u2019s May 2023 BTO and Sale of Balance Flats (SBF) launch deadlines have been extended by three working days \u2013 from 5 June to 8 June 2023 \u2013 after some applicants experienced difficulties accessing the HDB Flat Portal due to system glitches. Meanwhile, Singapore is still plagued by affordable housing issues even as it has a high ownership rate and a robust economy.
\n\u00a0
\n1. HDB extends the deadline for May 2023 BTO and SBF launches to 8 June 2023<\/p>\n

The deadline for HDB\u2019s May 2023 BTO and SBF\u00a0launches has been extended by three working days \u2013 from 5 June to 8 June 2023 \u2013 after some applicants experienced difficulties accessing the agency\u2019s portal due to system glitches, reported CNA.
\n\u201cThis is to give our buyers even greater assurance of being able to submit an application,\u201d said HDB in a Facebook post.
\nOn 30 May 2023, some applicants complained on HDB\u2019s Facebook page that they spent long waiting times at the portal\u2019s virtual waiting room (VWR), while some encountered error messages when processing their HDB Flat Eligibility (HFE) letter.
\nHDB attributed the long wait times to various factors including higher application volume due to the combined launch of BTO and SBF units as well as the inclusion of popular mature estate projects.
\nIt also pointed to applicants applying for the HFE letter for the first time.
\nAfter adjusting system parameters, HDB said the waiting time to access its portal was reduced to just three to 20 minutes as of 30 May 2023, while the VWR was not triggered on 1 June 2023.
\n\u201cWe are sorry for the negative service experience, and would like to assure them that we are reaching out to assist those facing issues,\u201d said HDB.
\nRelated article: HDB BTO May 2023 Launch Review: Bedok, Kallang\/Whampoa, Serangoon, and Tengah
\n\u00a0
\n2. Singapore is still plagued by affordable housing issues despite high homeownership
\nDespite having a robust economy and a high homeownership rate, Singapore is still plagued by affordable housing issues.
\nUrban Land Institute\u2019s (ULI) recent report showed that the median prices of private homes in the city-state have exceeded that of Hong Kong\u2019s, making them the most expensive in the Asia Pacific region.
\nHowever, Singapore leads the region in terms of affordability when it comes to public housing.
\n\u201cIs Singapore\u2019s high housing cost a sign of affordability issues, or an endorsement of our thriving city-state?,\u201d asked Dr Lee Nai Jia, Head of Real Estate Intelligence, Data and Software Solutions, PropertyGuru Group, in an article posted in The Business Times.
\n\u201cIt could be argued that the housing price tag is a reflection of our city\u2019s undeniable charm and remarkable resilience,\u201d Dr Lee pointed out.
\nHe said the government should make careful deliberation before it implements any radical interventions.
\n\u201cThe potential costs must be calculated and implications accurately modelled, as any miscalculations could lead to unintended consequences,\u201d Dr Lee said.
\n\u00a0
\n4.\u00a0More than 7,000 HDB flats were launched in the May 2023 BTO and SBF launches<\/p>\n

The HDB\u00a0launched 5,495 BTO flats and 1,500 SBF units on 30 May 2023, with the BTO flats spread across five projects in Bedok (Bedok South Blossoms), Serangoon (Serangoon North Vista), Kallang\/Whampoa (Farrer Park Arena), and Tengah (Plantation Weave and Parc Meadow @ Tengah).
\nFour out of the five projects, or almost 90% of the BTO flats offered, have a waiting time of less than four years. Notably, the median waiting time for the flats offered during the May 2023 sales exercise is about three years and five months.
\nThis makes the May 2023 BTO sales exercise \u201cone of the BTO launches with the highest proportion of flats in recent years to be completed in less than four years\u201d, said HDB.
\nThe Housing Board expects Bedok South Blossoms and Serangoon North Vista to attract strong demand since it has been several years since Bedok and Serangoon have seen a BTO launch.
\nIt noted that the BTO project in Kallang Whampoa \u2013 the 569-unit Farrer Park Arena \u2013 is offered under the Prime Location Public Housing (PLH) model.
\n\u00a0
\n4. Service and conservancy charge hike at PAP town councils from July
\nResidents of People\u2019s Action Party (PAP) run town councils will face higher service and conservancy charges (S&CC) from July 2023, reported CNA.
\nIn a release, Marine Parade Town Council (MPTC) said the increase in S&CC will be phased over a two-year period, with the hike on 1 July 2023 being smaller than in July 2024, thanks to special funding support from the government.
\nMonthly fees for HDB residents will increase by $0.70 to $7.90 during the first revision, and by $1.00 to $9.10 on 1 July 2024.
\nMonthly fees for shops and offices as well as market and food stalls will also increase.
\nMPTC explained that town councils have been facing rising cost pressures due to higher maintenance costs, manpower costs and energy prices.
\nMeanwhile, the Workers\u2019 Party shared that, much like PAP town councils, they are also facing similar cost pressures.
\nThe party said they are deliberating the matter carefully and \u201cwill communicate any changes to service and conservancy charges to their respective residents directly\u201d.
\n\u00a0
\n5. Fixed rate home loans decline as US Fed takes a less hawkish stance
\nAfter rising past 4% last year, fixed-rate home loans in Singapore have been dropping since the start of 2023 as the US Federal Reserve appears to pause or even reverse policy tightening, reported CNA.
\nDBS, Singapore\u2019s biggest lender, offers fixed-rate packages with lock-in periods of between two to five years at 3.75% a year, down from 4.25% in January 2023.
\nTwo- and three-year fixed rate packages at OCBC are offered at 3.8%, down from 4.25% and 3.9%, respectively, in January 2023.
\nIndustry watchers expect the downward trend to continue.
\n\u201cWith inflation and employment data in the US softening, the US Federal Reserve has indicated a less hawkish stance,\u201d said Paul Wee, Vice President \u2013 PropertyGuru Finance. \u201cHence, it is likely that fixed rates will soften further.\u201d
\nMeanwhile, no change was registered for floating-rate home loans.
\nRelated article:\u00a0Will Interest Rates Increase Further In 2023? How This Affects Your Mortgage in Singapore
\n\u00a0
\n6. Developer sentiment softens, as reported by a new survey
\nA new survey showed that developer sentiment in Singapore had \u201csoftened visibly\u201d during the first quarter of 2023, amid high interest rates, the\u00a0latest April 2023\u00a0property cooling measures and the banking crisis in the West, reported The Business Times.
\nBased on the latest Real Estate Sentiment Index published by the National University of Singapore\u2019s Institute of Real Estate and Urban Studies (IREUS), the composite index \u2013 which comprises a combination of current and future sentiment \u2013 dropped to 4.6 in Q1 2023 from 5.1 in Q4 2022. The neutral line is 5.0.
\nNotably, concerns over government intervention and supply increased, with those expecting supply to be moderately or substantially higher in the next six months rising 12 percentage points to 35%.
\nDevelopers expect to see government intervention double to 54.5% in Q1 2023, from 25% in the previous quarter.
\n\u00a0
\n7. Landed home rents surge amid robust demand from High-net-worth-individuals (HNWIs)
\nAfter registering several quarters of growth, rents for landed properties in Singapore continued to increase, rising 14.5% in Q1 2023, reported CNA.
\nTricia Song, Head of Research for Southeast Asia at CBRE, noted that while rents spiked across all three landed property types, it was the detached homes which posted the sharpest increase.
\nIn fact, the median per sq ft (PSF) rents for such properties rose 120% from $1.70 PSF per month in Q3 2020 to $3.75 PSF per month in Q1 2023.
\nAnalysts attributed the surge in rent to the low supply of luxury homes as well as the strong demand from HNWIs.
\nSong also attributed the hike to HNWIs and families setting up businesses or offices in Singapore, adding that they are willing to pay top rents for prime bungalows or GCBs.
\nAnd with the Additional Buyer\u2019s Stamp Duty (ABSD) for foreigners increased to 60%, more foreigners may turn to the rental market, with the demand likely to spill over the landed property segment, she said.
\nLooking ahead, Song expects landed rents to stabilise later in the year on growing resistance to high rents and a weaker economic outlook.
\n\u00a0
\n8. Condo owners not keen on selling private homes
\nExperts observed that condominium owners in Singapore are reluctant to sell their homes, following the introduction of the 15-month wait-out period announced during the September 2022 property cooling measures, reported Singapore Business Review.
\nNotably, the wait-out period limits private homeowners\u2019 ability to acquire an HDB resale flat after selling their private homes.
\nSome owners of multiple properties are not also keen on selling their investment property amid concerns about paying higher ABSD.
\n\u201cIn addition, with the still-healthy home rental market, many of these owners have opted to lease out the unit,\u201d said an expert.
\nHuttons Asia noted that the new project launches in April may have shifted demand away from the resale market.
\n\u201cThe hike in interest rates by US FED in April and slower Q1 2023 economic growth in Singapore could have also contributed to the slower resale demand as well,\u201d added Huttons.
\n\u00a0
\n9. Resale price hike for Sentosa Cove condo surpasses price increases on the mainland
\nPrices of resale condominiums in Sentosa Cove have significantly increased over the past year compared to that of resale condominiums in mainland Singapore, reported The Straits Times.
\nIn fact, the median PSF price of Sentosa Cove condominiums jumped 29.77% to $2,018 in 2022 from $1,555 in 2021.
\nThe median PSF price of resale condominiums in the CCR, on the other hand, rose by 6.8% year-on-year (YoY), while prices in the city fringe climbed 9.97% and 12.2% in the suburbs.
\nSentosa Cove condos saw median PSF prices further increase to $2,147 from January to April 2023.
\nMogul.sg Chief Research Officer Nicholas Mak attributed the hike in prices for Sentosa Cove condos to the high prices achieved at Cape Royale.
\nThe 302-unit development accounted for a significant proportion of total transactions in Sentosa Cove. Of the 154 Sentosa Cove condos transacted from January 2022 to April 2023, 45% or 69 units were in Cape Royale.
\n\u201cIt means that the prices of the other condos, excluding Cape Royale, are still fairly subdued,\u201d said Mak.
\n\u00a0
\n10. Higher interest rates make new homes sold off-plan relatively attractive
\nHigher interest rates are making home acquisitions more expensive for those who borrow to finance their purchases.
\nAnd while new homes that are sold-off plan may come with higher PSF prices compared to resale units, these new homes may still be a better option for borrowers.
\nThis comes as they can take advantage of progressive payment schemes offered for uncompleted new homes, to stagger payments.
\n\u201cIn short, a buyer of an uncompleted new home need not draw down a home loan as quickly or fully as a buyer of a resale unit,\u201d said The Business Times.
\nAside from this, buyers of new homes may potentially enjoy lower interest rates in the future.
\n\u00a0
\nLooking for a property in Singapore? Visit PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\nMarcus Lee, Content Executive at PropertyGuru, edited this story. To contact him about this story, email: marcuslee@propertyguru.com.sg.
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…HDB Extends May 2023 Sales Deadlines, Singapore Grapples With Housing Affordability Issues, and More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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