1. Comments on developers obtaining extended ABSD remission deadline
Developers will likely appreciate any extensions given to project timelines. This is a fairer system as larger and more complex projects should not be held to the same deadlines as smaller ones. This approach will ensure that the quality of the projects is not compromised, ultimately enhancing construction standards when given additional time.
The proposed policy change is timely, as there could be more projects with complex technical or infrastructure requirements near MRT stations in the future. This may include future integrated developments at Jurong, Hougang, and even new growth areas like Mount Pleasant, Turf City, and Turf Club.
However, developers may still face challenges despite the deadline extension as there are other considerations. For example, the success rate of en bloc sales will depend on the willingness of buyers and sellers to negotiate prices. Some smaller projects that do not qualify for the ABSD remission still encounter difficulties, particularly if they cannot sell all their units in time due to constrained market conditions. This challenge is amplified for high-end projects, which often rely on foreign buyers who have exited the market following the increase in ABSD for foreign purchasers.
2. Comments on supporting public rental families
Increasing the fresh start housing grant is a positive step towards helping more public rental families achieve homeownership. This initiative will lower the financial barriers for more first-time buyers especially low-income families, so as to make the dream of owning a home more attainable. While the number of families benefiting from this scheme may be modest, the social impact will be significant as it will foster stronger communities and further strengthen the social safety net to ensure that no families are left behind, thus contributing to better social equity.
3. Comments on enhancing the silver housing bonus to boost retirement income for seniors right-sizing their homes
The Silver Housing Bonus (SHB) will be expanded to include seniors who sell their private residential properties with an annual value (AV) between S$21,000 and S$31,000. Such properties may include smaller suburban condominiums that were purchased some time ago.
This initiative offers a significant opportunity for seniors to capitalize on the value of their assets while improving their strategic planning for retirement, financial stability, and medical needs. Seniors who benefit from this scheme include those with little CPF savings, limited cash reserves and/ or need to support themselves. The scheme will also help to protect the finances of seniors by ensuring that they have sufficient funds set aside for retirement and medical care even as they sell their assets.
Some seniors may choose not to participate in this scheme due to cultural beliefs, particularly in some Asian communities, where it is considered important to maintain assets to pass down as inheritance to the next generation. Others might prefer to sell their properties on the open market and live with their children.
The impact on the property market could be minimal, as this scheme primarily affects 3-room or small flats, which do not constitute the majority of flat types in the market. However, some seniors are now more cash-rich, which may push up demand on smaller resale flats.
4 Comments about the upcoming BTO at Mount Pleasant
Location and potential of the area
The Build-To-Order (BTO) project at Mount Pleasant is anticipated to be very popular. Mount Pleasant could be touted as the ‘next’ Toa Payoh or Bishan. Many buyers may perceive the future resale value of homes in Mount Pleasant to rival that of Bishan, Bidadari or Toa Payoh, where many new flats in these estates have been sold at high resale prices.
Furthermore, the limited availability of land for additional development in Toa Payoh means that opening up a new area nearby at Mount Pleasant will provide more housing options for residents who wish to stay in this central part of the island.
It is also rare to find new public housing in the city fringe area, surrounded by greenery and enriched with culture and heritage. Residents can enjoy leisure strolls along the nearby MacRitchie Reservoir, and the current site is surrounded by natural woods and trees, which some housing flats may enjoy unblocked views of greenery. Some residents will also appreciate having heritage buildings preserved in the area. Therefore, Singaporeans who prefer greenery and culture may find this location appealing.
The BTO project will also appeal to buyers who want a first-mover advantage since the BTO project will be one of the first housing developments to be built in the Mount Pleasant estate. Being situated next to the Mount Pleasant MRT station, executives who work in the CBD area can travel to Shenton Way via the Thomson East Coast Line. For those working in the one-north area or at Kent Ridge, they can take the Circle Line to get to their workplaces. Residents can also commute using the Thomson-East Coast Line to visit Orchard Road or Great World City for shopping. The place is near Toa Payoh, a mature estate with many amenities, schools and eateries.
Expected selling price
As Mount Pleasant Estate is quite large, it is possible that different projects may be classified under Plus, Prime or Standard, depending on their proximity to key amenities. For this upcoming BTO project, it could be classified as a Plus project given its close proximity to the MRT station.
The closest comparables could be the BTO flats launched in Toa Payoh or Bidadari, although these are not Plus or Prime flats when launched. As a reference, the prices of previously launched 3-room BTO flats in Toa Payoh range from around S$290,000 to S$450,000. For 4-room BTO flats, it is around S$390,000 to S$670,000. For the Mount Pleasant Plus flats, the prices could be at least S$450,000 to over S$700,000 for 4-room flats, considering the longer 10-year MOP.