Residential Market News Extract - 12 September 2012

Govt in no hurry to finish DBSS review

There is no rush to complete the review of the Design, Build and Sell Scheme (DBSS), given the government's current priority to ramp up Built-To-Order flats and executive condominium (EC) units.

This is despite the fact that DBSS land sales have been suspended since July last year, following a public outcry over a Centrale 8 DBSS unit in Tampines bearing an original price tag of $880,000. The DBSS scheme, which allows private developers to design and build some public flats, was introduced in 2005 to give flat buyers more choice.

While the Housing & Development Board (HDB) would provide broad planning parameters such as the mix of flat sizes and the range of social and community facilities to be provided, the developer is responsible for the design, construction quality and the pricing of the flat.

Responding to a question by Member of Parliament Ang Hin Kee on whether the Ministry of National Development has completed the review and if the review looks into how it will impact owners of DBSS flats, Minister for National Development Khaw Boon Wan noted that the HDB's primary role is to ensure that only those who are eligible for public housing can buy such housing, and to disburse housing grants and provide concessionary loans to eligible buyers.

"As DBSS flats are sold directly by private developers to flat buyers, resolution of any contractual disputes, including defects, rests with the buyer and the developer," he said.

However, the HDB has played an active role in managing disputes between buyers and developers.

Said Mr Khaw: "HDB is playing a very active part to help them, counsel them and advise them to resolve the conflicts. Where they can play a mediating role will depend on what are the specific issues involved.

"But at the end of the day, we must be mindful that it is a contractual obligation between the buyer and seller. But we can advise the residents, perhaps together with the local MP, to see what the problem is and whether there are ways to resolve some of the issues."

Source: Business Times – 12 September 2012

 

Tender extended for 99-year site on Dairy Farm Road

The tender for a 99-year leasehold residential site on Dairy Farm Road has been extended by a week, following the introduction of a Development Control guideline on the maximum allowable number of dwelling units.

The 188,861.2 square foot site on Dairy Farm Road has a maximum gross floor area (GFA) of 396,617.4 sq ft and a maximum building height of part five storeys and part 15 storeys subject to 140 metres above mean sea level.

Under the new guidelines, the site will be subject to a maximum number of 526 dwelling units, said the Urban Redevelopment Authority (URA). The requirement will be applicable even if a formal development application for the site is submitted before the new guideline comes into effect on Nov 4.

Earlier this month, URA said the maximum number of units in non-landed private housing projects (including the residential component of mixed-use developments) outside the Central Area will be capped based on an average area of 70 square metres (sq m).

The Central Area includes locations such as Raffles Place, Tanjong Pagar, Singapore River, Marina Bay, Orchard and Newton, as well as Beach Road, Ophir Road, Jalan Sultan, Syed Alwi Road, Tekka Lane and Outram Road.

Furthermore, the guideline on the maximum number of homes based on an average size of 100 sq m, introduced last year in Telok Kurau Estate, will be extended to Kovan and Joo Chiat/Jalan Eunos estates from Nov 4.

"The tender for the land parcel will close at 12 noon on Sept 18, 2012 to allow more time for tenderers to reconsider their bids in view of the new requirement," said URA.

Source: Business Times – 12 September 2012

 

More HDB flats on the way, but can road network cope?

The Housing Board is expected to complete building five Build-to-Order (BTO) housing projects in Yishun by 2014, but the road network to support the additional residents will be ready only a year later.

This time gap worries Ms Lee Bee Wah (Nee Soon GRC), who foresees it causing massive jams along Lentor Avenue.

She was not the only MP expressing concern yesterday over the potential problems arising from the ramp-up in the building of BTO flats.

Mr Liang Eng Hwa (Holland-Bukit Timah GRC) wondered whether public transport infrastructure and facilities such as hawker centres will be ready to cope with the population explosion in Bukit Panjang, where eight housing projects are in the pipeline.

"Is it reasonable to build eight BTOs at about the same time, all at one go in a mature estate?"

Replying, Senior Minister of State for National Development Lee Yi Shyan said town planners would typically take into account the number of people and vehicles when drawing up plans, and that the HDB keeps a close eye on what is happening on the ground.

He added that an inter-agency meeting can be called to resolve local bottlenecks, should they arise.

Ms Lee asked how often such meetings were held, and added: "Certainly, I don't agree that there is good coordination."

Mr Lee said lessons have been learnt from the recent rise in public housing supply: 25,000 new flats are being offered this year, with another 20,000 next year.

"Some of the major infrastructure such as vehicular network and rail access will take much longer (to be completed) than the construction of HDB flat precincts. So I think coordination for short-term construction projects and longer-term planning are ongoing and we would intensify them as and when necessary."

He also said talks are ongoing with various ministries to minimise inconveniences to Yishun residents.

Source: The Straits Times – 12 September 2012