The flat owners had rented out their entire units without fulfilling a minimum occupation period.

The housing board stressed that HDB flats are meant for owners to live in not for speculative purposes.

A routine inspection in Bukit Batok uncovered more than 20 people staying in the maisonette. 17 of them are maids.

Obviously, the owner has gone beyond the limit of nine sub-tenants and could lose his flat.

Flat owners can sublet their whole flats after they have fulfilled a minimum occupation period and have gained prior approval from the HDB.

However, there are some flat owners who try to circumvent the rules by locking up one bedroom and subletting the rest of the flat without physically staying in the unit.

The penalty for such an offence ranges from fines to repossession of the flat.

From January 2008 to December 2009, HDB took enforcement action against 56 flat owners who subletted their flats without the HDB’s approval.

The penalties for these 56 cases ranged from fines of S$1,000 to S$21,000 to the repossession of their flats. These 56 cases are from all flat types.

The housing board also set up a hotline last month to get tip-offs.

Teo Chye Hwa, head, HDB Bukit Batok Branch Office, said: “Once we receive a call, first we will verify whether the owner is allowed to sublet the whole flat. Once that is verified, we will conduct further investigation to gather more evidence of illegal subletting of the flats.”

It received more than 60 calls in three weeks and is investigating these cases.

The housing board said it will continue to step up routine checks to weed out unauthorised subletting.

Source : Channel NewsAsia – 8 Apr 2010

Most buyers are not aware that they do not have to pay for it. The sellers or their property agents have commonly pushed this cost to the buyers.

It is neither an HDB policy nor guideline that the buyer must bear the cost of the valuation report. It is entirely between the seller and the buyer and their agents who should pay for it.

The valuation report is usually requested by the seller or his agent. As the purpose is to market the property to interested buyers, it is therefore a marketing tool and part of the agent’s services.

Buyers should question and protest if this cost is passed to them.

Phyllis Law (Ms)

Source : Straits Times – 8 Apr 2010

A staggering 5,015 bids were received for 828 new flats in Sengkang and Sembawang by the application deadline of midnight on Monday.

The high level of interest outstrips that of recent years, when about four applications were typically received for each new flat, according to housing analysts.

Demand was particularly intense for five-roomers in Sengkang, where 1,341 applied for the 126 flats on offer – more than 10 applications for each flat.

This high level of interest follows January’s launch of four-roomers at Limbang Green at Choa Chu Kang, which attracted 14 applications for every flat.

The blistering demand for the developments at Fernvale Ridge in Sengkang and Sembawang RiverLodge is being attributed to the escalating prices of resale flats, which set a fresh record in the last quarter of last year.

HDB resale flat prices have risen by some 40 per cent over the past three years. ‘Demand has shifted from the resale market directly to HDB’s new flat queue, as many first-time buyers are likely to have been priced out of the resale flat market,’ said Dennis Wee Properties director Chris Koh.

PropNex chief executive Mohamed Ismail was not surprised by the high level of demand given that new flats were priced about 30 per cent lower than resale flats.

‘Couples who do not need flats so urgently will definitely join the queue,’ he noted.

HDB launched the Sengkang and Sembawang projects under its build-to-order (BTO) scheme, which builds only when a certain demand is reached and has a typical waiting time of three years. Combined, the projects offer 266 three-room, 436 four-room and 126 five-room units.

Fernvale Ridge’s 216 four-room flats attracted 1,671 applications, while its 180 three-roomers received 491 bids.

At Sembawang RiverLodge, the 220 four-room flats pulled 1,234 applications, while the 86 three-roomers drew 278.

Another 126 two-room flats in Sembawang RiverLodge will not be offered for sale, but set aside for lower-income families at a later date, said HDB.

Mr Ismail said he expects the demand for new flats to remain high given that resale flat prices are likely to stay robust at least in the short-term.

But Mr Koh suggested that demand for BTO projects might be less than it seems if flat applicants do not take-up flats when they are finally offered to them.

‘Some buyers who join the queue might be afraid to lose out, but are not that serious about buying,’ he said.

HDB has offered 3,653 flats this quarter, with a further 1,200 BTO units to be launched in Punggol next month.

Source : Straits Times – 31 Mar 2010

The rise was more moderate compared to the almost 4 per cent increase in the fourth quarter of 2009. It is the fourth consecutive quarter of price increase. Resale volume has, however, trended downwards.

The estimated number of resale transactions for the full quarter is about 8,500. This is about 5 per cent lower compared to the fourth quarter of 2009, which registered 8,926 cases.

HDB said the median Cash-Over-Valuation (COV) amount for the first quarter was S$25,000, an increase of S$1,000 over the fourth quarter. HDB said it will ensure an adequate supply of new flats to meet housing demand.

At least 12,000 new Build-To-Order (BTO) flats will be launched this year, with launches scheduled monthly for the next few months. This will be supplemented by flats under the Design, Build and Sell Scheme (DBSS) as well as Executive Condominiums (EC) for the higher income buyers.

If demand remains strong, HDB will launch more BTO projects in the fourth quarter of this year.

Source : Channel NewsAsia – 1 Apr 2010

Most buyers are not aware that they do not have to pay for it. The sellers or their property agents have commonly pushed this cost to the buyers.

It is neither an HDB policy nor guideline that the buyer must bear the cost of the valuation report. It is entirely between the seller and the buyer and their agents who should pay for it.

The valuation report is usually requested by the seller or his agent. As the purpose is to market the property to interested buyers, it is therefore a marketing tool and part of the agent’s services.

Buyers should question and protest if this cost is passed to them.

Phyllis Law (Ms)

Source : Straits Times – 8 Apr 2010

HDB said that from January 2008 to December last year, it took enforcement action against 56 flat owners. They faced penalties that ranged from fines of $1,000 to $21,000, to repossession of their flats.

In particular, HDB shared details of a case in which a Bukit Batok flat owned by Poh Boon Kay and his wife Khoo Kim Cheng was repossessed after there was ‘blatant flouting of sub-letting rules’.

Mr and Mrs Poh own five private properties and Mr Poh is also a registered real estate agent. The couple did not fulfil the MOP of three years, which is required under HDB’s rules before a whole flat can be sub-let. They claimed that they were not aware of this policy. Further investigations showed that Mr Poh was related to two other cases of unauthorised sub-letting, at Bukit Batok and Telok Blangah. HDB will also take legal action to compulsorily acquire those two flats.

It reiterated yesterday that owners who wish to sub- let their whole flat must obtain approval from HDB and fulfil the MOP. The MOP for sub-letting is now five years for flats bought direct from HDB and resale flats bought with any CPF housing grant, and three years for resale flats bought without the CPF housing grant.

Home-owners must also comply with HDB rules regarding the maximum number of sub-tenants allowed for the flat’s size.

Source : Business Times – 13 Mar 2010

They are also required to notify the HDB when they renew or terminate the sub-letting of rooms, and when there are changes to their sub-tenants’ particulars.

While there has been no need to seek prior approval for sub-letting of rooms, the latest move supports ongoing efforts by the Home Affairs Ministry to eradicate loan-sharking activities, and comes amid changes made to the law to better deal with the problem.

The HDB noted in a statement yesterday that some people used their old addresses to borrow from loan sharks while they rented a room in another HDB flat.

This resulted in the new occupiers of the flat being harassed by loan sharks instead, while the borrowers were untraceable as they moved without updating their addresses.

‘Through this new rule, HDB will be able to capture the particulars of those who rent rooms in HDB flats. With information on the addresses of owners and subtenants, the Ministry of Home Affairs will be able to trace the movements of borrowers,’ the statement said.

In Parliament yesterday, Associate Professor Ho Peng Kee, who is Senior Minister of State for Law and Home Affairs, said the move will make it harder for borrowers to remain untraceable when they rent a room in an HDB flat.

In tandem with the HDB’s move, the National Registration Act and Immigration Act will also be amended to empower the Immigration and Checkpoints Authority to obtain information from the HDB to administer and enforce the new requirements more effectively.

Source : Straits Times – 13 Jan 2010

Located at Jalan Kukoh, the flat is on a higher floor of block 10, and is about 40 years old.

Home owner Mr Tan, a 43-year-old advertising executive, bought the unit with his wife two years ago at about $145,000. They decided to sell as they want to move to a larger flat.

“We bought this unit because we wanted to live in Tiong Bahru, but could not afford a four-room flat in this area. Now, we want to upgrade to a larger flat. We also find it too noisy as it is near the highway,” he told Shin Min Daily.

According to OrangeTee property agent Mr Adrian Wee, 28, the new flat owners are a young couple with one child. Besides the central location, the flat is also near to where their parents stay. As they also like the simple, open layout of the flat, they did not object to the noise from nearby traffic.

The flat’s floor area of 53 square metres includes a living room and one bedroom; an additional storeroom was added by the former home owners. The price of $245,000 is about $45,000 above valuation.

Mr Tan says that although he made a tidy profit from the sale, the price over valuation of his new four-room flat is also quite substantial, so it is just enough to cover his costs of buying a new home.

According to HDB figures, the average price of a two-room flat in Tiong Bahru was about $190,000 to $220,000.

ECG Property CEO Mr Eric Cheng says that the price is high, but still reasonable for the prime location.

“Some couples prefer flats in mature estates as they are near the city and they can save time and transport costs,” he told Shin Min.

PropNex CEO Mr Mohd Ismail said that many of the home owners are elderly, and most of them have no intention of selling their flats, so it can be hard to find one on the market.

“For this price, a young couple can get a new four-room flat in Punggol,” he said.

Source : AsiaOne – 13 Jan 2010

It yesterday reminded owners that those who do not comply with the rule face a $3,000 fine.

Those who repeatedly fail to comply could also have their flats seized by the board.

Responding to queries from The Straits Times, an HDB spokesman said those who sub-let their flats without registering with the board will be guilty of ‘unauthorised use of the flat’.

The HDB announced on Tuesday that owners of flats will have to register with the board within seven days of renting out a room.

The new ruling also requires home owners to provide a whole host of information, including details of their sub-tenant, the conditions of the sub-letting agreement, and even his job.

Other information required includes the rental charged each month, and how long the tenancy will last.

The rules apply to tenancies that begin after Feb 1. Those already sub-letting their flats have a six-month grace period to register with the HDB and provide the information needed.

The measure was announced after Parliament passed the Moneylenders (Amendment) Bill on Tuesday, introducing tougher penalties to curb the worsening loan-sharking problem.

Illegal moneylending and harassment cases have risen rapidly, with 18,645 cases reported last year, up from 11,879 in 2008 and 10,221 in 2006.

The new HDB rule seeks to better protect residents who fall victim to harassment by illegal moneylenders when borrowers who rent a room and move out give their old addresses to loan sharks.

Senior Minister of State for Law and Home Affairs Ho Peng Kee told Parliament the new rule would help trace borrowers who move from place to place to avoid loan sharks, leaving innocent new home owners or sub-tenants to be harassed.

An HDB survey in September 2008 showed there were about 45,000 flat owners who rented out rooms.

Reacting to the new rule, HDB home owner Sara Nadeson, 34, who is renting out a room for the first time, said she would comply.

She said she does not want unpleasant surprises, such as the dreaded O$P$ – loan shark shorthand for ‘owe money, pay money’ – spray-painted outside her home.

Others, however, felt the detailed information they will have to supply the HDB made the new rule too onerous to comply with.

Some said they were willing to risk the $3,000 fine if their tenants were friends or people they knew well.

The owner of a four-room Jurong flat said: ‘My tenant is a personal friend, and I have confidence that he will not get me in trouble as a result of loan-sharking activities.’

However, the HDB spokesman cautioned home owners against taking a cavalier attitude to the new rule.

Mr Baey Yam Keng, an MP for Tanjong Pagar GRC, said it would ‘complete the chain of information’ needed by the authorities to crack down on loan shark activities.

Sub-Tenant Details required

NEW information required by HDB of flat owners who sub-let rooms:

Source : Straits Times – 14 Jan 2010

In HDB’s annual report for 2008/2009, published figures show that the price range of new four-room flats offered in Punggol was $223,000 to $327,000. The difference of $104,000 meant that the price of flats in the highest price range was 46 per cent more than the price of the lowest priced units.

In Sengkang, the difference was $85,000 or 44 per cent, with flats ranging from $190,000 to $275,000.

These two areas show the largest difference in prices, according to the table published by HDB.

HDB states in its annual report that the price differential may not be directly comparable as “it may be affected by different attributes of flats offered such as location, design, storey-height, orientation, etc”.

Mr Tan Kin Lian, president of the Financial Services Consumers Association of Singapore (FiSCA), told Shin Min Daily that he finds the price difference hard to understand. He felt that the price difference for flats in the same area should be about 10 to 15 per cent.

HSR Property director Mr Jeffrey Hong feels that part of the reason lies in fluctuations in last year’s property market, when the beginning of the year saw much lower prices compared to the latter half of the year.

For example, $200,000 to $230,000 was the average price of a four-room flat in Punggol at the beginning of 2009, but by the end of the year, it had risen to about $280,000 on average.

Mr Lim Yong Hock, senior vice president of PropNex told Shin Min that as Punggol and Sengkang are big housing estates, and some parts are not fully developed, thus resulting in large price premiums for areas which are near the MRT stations and town centres.

Source : AsiaOne – 14 Jan 2010