Finance Ministry, too

http://www.todayonline.com/singapore/EDC091201-0000069/Finance-Ministry-too


Finance Ministry, too
05:55 AM Dec 01, 2009
Tell the Ministry of Finance what initiatives you would like Budget 2010 to include, to enhance the economy while being the best home for all Singaporeans.

Launched yesterday, the feedback exercise in partnership with Reach invites the public to share both their general feedback and specific suggestions at www.singaporebudget.gov.sg; via SMS at 9-Speak-Up (9-77325-87); or via phone (1800-226-0806), fax (6332-7435) or mail (Ministry of Finance, 100 High Street, #10-01 The Treasury, Singapore 179434).

Dialogue sessions and school debates will also be organised.

HDB accidents drop

http://www.todayonline.com/hotnews/EDC091201-0000083/HDB-accidents-drop


HDB accidents drop
05:55 AM Dec 01, 2009
The Housing and Development Board's accidents rate dropped for the first nine months of this year, despite there being more construction and upgrading projects. The figure of 0.36 accidents per million man-hours was much lower than last year's rate of 0.52, and far below the industry average of 2.9.

However, the HDB will further drive workplace safety efforts, as it opens up the construction market to consultants and contractors who are new to HDB works and, thus, unfamiliar with its safety requirements.

Worksite briefing, safety assessment and checks have been stepped up, while four contractors have been taken to task for not following proper construction procedures: They were fined and barred from bidding for jobs for between three months to a year. BYRON HO

Set commission, scope of work?

http://www.todayonline.com/hotnews/EDC091126-0000092/Set-commission-scope-of-work


Set commission, scope of work?

These are among several suggestions for new regulatory framework
by Tan Hui Leng
05:55 AM Nov 26, 2009
SINGAPORE - A property seller signs a commission agreement to pay the property agent 2 per cent on the deal but later complains to the Singapore Accredited Estate Agencies (SAEA), saying that he should not be paying so much as the agent had not "fulfilled his responsibilities".

A scenario like this could soon become a thing of the past if a proposal - that the Government set a standard commission guideline and implement a standardised form that sets out what an agent is expected to do - becomes part of a new regulatory framework for the real estate industry.

"We would usually ask what is the scope of work committed in a commission agreement but there's usually nothing more than that of an agent who will procure a buyer for the seller," said SAEA chief executive, Dr Tan Tee Khoon. "When this is done, his work is done."

With agents' commissions being a touchy issue, it comes as no surprise that one suggestion the Ministry of National Development (MND) has received in its public consultation on the regulatory framework is that of regulating the commission rate of property agents.

Some respondents suggested that the Government should set standard commission guidelines to curb undercutting among agents and protect less-educated consumers from being overcharged.

The public consultation - carried out between Oct 13 to Nov 17 - drew over 200 independent comments and suggestions, some of which may not be feasible, said industry players.

The suggested commission fee guideline for one, may not be viable. There was already such a guideline from the Institute of Estate Agents (IEA) previously but it was removed last year because the Competition Commission of Singapore had deemed it to be anti-competitive.

"The consumer feedback may not be in the spirit of existing laws or rules, it is also in the consumers' favour to let the market dictate," said PropNex chief executive, Mr Mohamed Ismail.

IEA president Jeff Foo, however, is for restoring the fee guideline as it would help consumers gauge the market rate for commissions.

Other suggestions to regulate the industry include standardising real estate industry practices; limiting the size of agencies for better control of agents; and disallowing agencies and agents from direct buying of properties from sellers or developers.

The last point is a breach of "basic human rights" to invest, said Dr Tan. This should be allowed as long as there is proper disclosure and the transaction is above board, he added.

In general, the public was supportive of key features proposed, including mandatory accreditation of agencies and agents; maintaining a public central registry for accredited agents; setting up an independent tribunal specialising in the industry; and introducing a demerit points system for errant agents.

MND will consolidate views from various channels when refining the regulatory framework - with the key elements expected to be announced early next year.

Too early to give a rollback date

http://www.todayonline.com/hotnews/EDC091124-0000053/Too-early-to-give-a-rollback-date

Too early to give a rollback date

05:55 AM Nov 24, 2009

SINGAPORE - Measures taken to cool the property market seem to have had the desired effect, said National Development Minister Mah Bow Tan, who signalled that the Government may remove certain anti-speculative measures in future if the property market stabilises or weakens - but it is yet too early to say when.

Mr Mah noted that since steps were introduced, starting with the ban on the Interest Absorption Scheme (IAS) and Interest-Only Loans, private home sales fell 37 per cent on-month in September and another 29 per cent last month.

The Government also reinstated its Confirmed List for its land sales programme in the first half of 2010.

It will continue to monitor the market closely to assess its response to the measures, before deciding whether further anti-speculative steps are needed, Mr Mah told Parliament.

"We want to curb erratic spikes in prices due to excessive speculation, inaccurate information or market manipulation. But we must let market forces determine prices, based on genuine demand from home-buyers and investors," he stressed.

Credo Real Estate managing director Karamjit Singh reads this as meaning that the property market should function with minimal intervention. "It's difficult to say when the Government would reinstate the (IAS and interest-only loans), since the property market changes year to year. The measures may be recalled to prevent a meltdown, but I don't see that happening in the short term," Mr Singh said.

PropNex CEO Mohamed Ismail, who credited the Government's action with bringing "sanity to the property market" by curbing speculators, concurred: "We do not think it is necessary for IAS restoration within the next one year." Yasmine Yahya and Esther Fung

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'Buffer flats' for urgent needs: Mah

http://www.todayonline.com/hotnews/EDC091124-0000073/Buffer-flats-for-urgent-needs-Mah

'Buffer flats' for urgent needs: Mah

by Esther Ng

05:55 AM Nov 24, 2009

SINGAPORE - To meet the demand for public housing, the Housing and Development Board (HDB) projects it needs to build some 10,000 to 12,000 flats annually over the next five years.

That should provide sufficient flats for all first-time homebuyers, usually young couples, National Development Minister Mah Bow Tan said in Parliament yesterday.

But even as the HDB anticipates demand, does it do enough to meet the housing needs of those who book their flats and have to wait until they are built?

MP Cynthia Phua (Aljunied) asked if the Government would set aside 10 per cent of new flats as buffer accommodation. "There are a lot of families who are in urgent need of a home over their head, for example, a pregnancy before marriage," she said.

As this and other housing issues got an airing in Parliament, Mr Mah revealed for the first time that while the policy does not set out to have a buffer, in the "scheme of things" a buffer of that size already exists.

"These are the flats which are available from other programmes like Sers (Selective En bloc Redevelopment Scheme) flats and some buy-back flats," he said. Flats marked for redevelopment, and which have yet to be demolished, are available through a managing agent at "reasonable rentals".

In addition, there are now 2,000 flats available under the Sale of Balance Flats and extra flats from the Build-To-Order (BTO) scheme.

"We will build when, say, the take-up rate is 70 per cent, so there will always be another 30 per cent not taken up ... Once the programme is launched, we will put this 30 per cent on the market for sale," he said.



BTO projections are flexible

The BTO scheme, Mr Mah added, may rely on HDB's medium-term projections but is flexible enough to be ramped up.

For example, HDB is offering 13,500 flats this year, up from the 6,000 originally planned, due to strong turnaround in the second half of the year.

"If the take-up of BTO flats remains strong, we will continue to push out more flats under BTO next year - at least one every month if necessary," he said.

PropNex CEO Mohamed Ismail believes the current HDB supply and projections are "adequate", and

that any more would be an "oversupply" which could "dampen the asset value" of flats, given that there is a "continual supply of resale flats".

But should the economy recover well, a buoyant resale market would result in buyers having to pay more cash above flat valuations, he said.

"In that case, the Government should be prepared to release more than the projected number of 12,000 flats per year," he said, as newly-married couples would not have enough cash on hand.

Mr Mah noted that 80 per cent of new flat buyers pay for their mortgage loans fully using their Central Provident Fund monies.

His message for new home buyers, though: Do not expect to walk into HDB and buy a ready-to-move-in flat as soon as they get married, even with a buffer stock.

They can shorten the waiting time by booking a new flat ahead of their marriage under the Fiance-Fiancee Scheme, and move in once they get married. "Forty per cent of first-time flat buyers make use of this scheme today," he said.

Those who want a flat immediately upon marriage can buy a resale flat, using housing grants.

Member of Parliament Lam Pin Min (Ang Mo Kio) wanted to know if the HDB would refund the registration deposit under the Fiance-Fiancee Scheme, if matrimonial plans "genuinely" failed.

To laughter in the house, Mr Mah wondered how Dr Lam would define "genuine", but added that his ministry would "look into it, as (they) have always done".

 

Higher property taxes in 2010

http://www.todayonline.com/hotnews/EDC091119-0000116/Higher-property-taxes-in-2010  

Higher property taxes in 2010

To cushion the rise, Govt to give a one-off rebate of 50%

by Esther Ng

05:55 AM Nov 19, 2009

SINGAPORE - Expect to pay higher property taxes next year, but the rise will come with some cushioning. The Inland Revenue Authority of Singapore (Iras) has announced that it is raising the Annual Value (AV) of Housing Development Board (HDB) flats.

The move comes on the back of rising resale prices and rents.

The tax authority noted that while rents for HDB flats have stabilised after a moderate decline between the end of last year and the middle of this year, rentals have begun to rise since.

"As a result, current values of HDB rentals, as well as HDB resale prices, are still significantly higher than levels observed in 2007. The AVs of HDB flats will therefore have to be adjusted," said Iras.

The last time there was a revision in the AV for HDB flats was in January last year.

Even though HDB rental increased by up to 37 per cent last year relative to 2007, Iras deferred adjusting the AV for the start of this year because of the "uncertainty in market rental trends" in a recession.

To help HDB flat owners cope with the increase in January, the Government will give a one-off property tax rebate of 50 per cent of the tax payable, capped at $120. This applies to all those who live in the flats they own.

To help those in smaller flats, Iras will offset the total tax amount for households which have to pay property tax of $50 or less. This would mean that two-roomers will not need to pay property tax.

"It will help soften the blow," said real estate consultant Nicholas Mak.

He added that owner-occupiers of HDB flats will not be affected that much as "property tax on HDB is lower than (that of) private property".

On average, the increase will in property tax will be $72 for three-room flats, $97 for four-room flats, $107 for five-room flats and $103 for those in executive flats.

For those renting out their HDB flats and who will not receive the rebate, Mr Mak said that with demand still buoyant from the immigrant population, the "increase in rentals could offset the increase in AV". As of March this year, HDB has approved 22,754 applications by owners to rent out their units.

The Government will have other help measures for the "down-and-out", added Member of Parliament Ho Geok Choo, a Government Parliamentary Committee member for national development.

A higher AV may also have implications for inflation, although economists were mixed about the expectations of the

impact

"It will be benign because underlying inflation is low," said DBS economist Irvin Seah.

While others expect headline inflation to go up, unlike in Jan 2008 - when the government last raised the AV of public flats - it will not hit the heights of 6.6 per cent then.

"The housing component is a large contributor to the CPI basket and inflation might reach 2 to 4 per cent by the first quarter," said CIMB-GK economist Song Seng Wun, who added, though, that higher food, utility and COE prices could present greater upside pressure.

 

When To Tax Property Gains

Straits Times July 8, 2009

When to tax property gains

By Goh Eng Yeow

A PROPOSED change to income tax laws will make clearer to property sellers when they will be taxed on their profits.

Anyone who sells only one property in any four-year period will not be taxed on his profit, according to a proposed amendment to the Income Tax Act.

But if he sells another property within four years of the first sale, the profit from the second sale may be taxable.

If the proposal becomes law, it will provide certainty for owners who now cannot be sure if the taxman will come calling after they sell.

Under existing rules, an individual does not pay tax on gains made from selling a property unless the taxman decides that he is trader - someone who buys and sells multiple properties within a short time span. And there is no way for the seller to know in advance if he might be deemed a trader.

The new way of taxing property profits is one of many changes listed in a draft Income Tax (Amendment) Bill 2009 put up for public feedback last month by the Finance Ministry. If implemented, the change will take effect from January.

A ministry spokesman told The Straits Times on Tuesday that the proposed change aims to provide certainty of non-taxation to individuals who own property.

Once it takes effect, the individual who sells a property for a profit can be sure that his gains will not be taxed - provided he had not sold any other property in the previous four years.

If he sold other properties within that period, the spokesman said, the Inland Revenue Authority of Singapore (Iras) will decide whether he should be taxed, 'based on the facts and circumstances, no different from the present tax treatment'.

The draft Bill can be read at the Finance Ministry website www.mof.gov.sg and the public has up to next Tuesday to give feedback. The Bill is expected to go before Parliament later in the year.