Property Portfolio

09/05/2022

What’s Up This Week?

-----

1. Singapore slaps 35% ABSD on residential property transfers into living trust, closing loophole

https://www.businesstimes.com.sg/real-estate/singapore-slaps-35-absd-on-residential-property-transfers-into-living-trust-closing

AN ADDITIONAL Buyer’s Stamp Duty (ABSD) of 35 per cent will be imposed on any transfer of residential property into a living trust, where the transfer occurs from May 9, the Ministry of Finance announced late on Sunday night (May 8).

Under current regulations, ABSD may or may not be payable upon such a transfer, depending on the profile of the beneficial owner of the residential property transferred into the trust.

Specifically, if the living trust is structured such that there is no identifiable beneficial owner at the time of transfer, ABSD does not apply. To close this gap, the government is introducing the “ABSD (Trust)” at 35 per cent, M*F said in its press release.

“ABSD aims to promote a stable and sustainable residential property market, and as such, it should apply to transfers of residential properties into all living trusts, irrespective of whether there are identifiable beneficial owners of the residential properties transferred into such trusts,” the ministry said.

The ABSD (Trust) is to be paid upfront when the transfer is made. A trustee may apply for a refund of ABSD (Trust) if certain conditions are met, namely that all beneficial owners are identifiable, that the beneficial ownership has been vested in all of them and cannot be revoked, varied or subject to subsequent conditions.

The application for the refund must be made to the Inland Revenue Authority of Singapore within 6 months after the instrument is executed.

M*F Press Release: https://www.mof.gov.sg/news-publications/press-releases/additional-buyer-s-stamp-duty-(absd)-for-residential-properties-transferred-into-a-living-trust

More Details: https://www.iras.gov.sg/taxes/stamp-duty/for-property/buying-or-acquiring-property/additional-buyer's-stamp-duty-(absd)

More Details: https://www.iras.gov.sg/taxes/stamp-duty/for-property/appeals-refunds-reliefs-and-remissions/common-stamp-duty-remissions-and-reliefs-for-property/remission-of-absd-(trust)

-----

2. Some retailers cut losses or shut stores, as rental rates rebound to even higher than pre-Covid
https://www.todayonline.com/singapore/some-retailers-cut-losses-or-shut-stores-rental-rates-rebound-even-higher-pre-covid-1891786

As the economy reopens, some tenants said that they are now looking at paying higher rent than before Covid-19 struck in 2020.

In interviews with nine tenants from various malls in the heartlands and along the Orchard Road shopping belt, many of them said that their rental costs were raised when they renewed their leases in the past 12 months. The majority saw a 10 per cent increase compared with pre-Covid levels but some experienced hikes of up to 30 per cent.

Some of the shop owners facing higher rent when their lease expire later this year said that they have chosen to close some stores or relocate to a different mall. Some major retail players, too, have been consolidating their outlets because of the higher rent.

The latest data from commercial real estate services firm CBRE showed that in the first quarter of the year, average prime retail rent for the suburban areas rose 2.2 per cent year-on-year, while retail rent for spaces on Orchard Road dropped 2 per cent. Prime retail rent refers to the rate for stores that have the best presence, footfall and accessibility in a mall — typically those on the first level or on floors with direct connectivity to the MRT rail network.

-----

3. Singapore industrial space rents, prices continue to rise in Q1; occupancy falls: JTC

https://www.businesstimes.com.sg/real-estate/singapore-industrial-space-rents-prices-continue-to-rise-in-q1-occupancy-falls-jtc

RENTS and prices of Singapore industrial developments continued to rise in the first quarter of 2022, although overall occupancy rates dipped, according to JTC's quarterly market report released on Thursday (Apr 28).

Industrial space prices rose 2.1 per cent on the quarter and 5.6 per cent on the year. Prices were up 2.3 per cent and 1.8 per cent quarter on quarter in the multiple-user and single-user factory segments, respectively.

Meanwhile, rents climbed 1 per cent quarter on quarter and 2.4 per cent year on year, led by gains in the warehouse sector on the back of robust demand for ramp-up facilities.

The warehouse sector saw a 1.5 per cent rise in rents in Q1, followed by the multiple-user factory segment which added 0.9 per cent and single-user factory segment which rose 0.3 per cent. Rents at business park spaces remained flat quarter on quarter.

Year on year, the warehouse segment saw rents rise 3.8 per cent, rents in multiple-user factory spaces rose 2.6 per cent, while rents in single-user factory spaces grew 1.8 per cent. Business park rents slid 0.3 per cent.

The overall occupancy rate for the industrial property market fell to 89.8 per cent in Q1, down 0.4 percentage point from the previous quarter and 0.2 percentage point from the year-ago period. This was mainly due to new completions picking up significantly, and an increase in supply exceeding new demand.

AN ADDITIONAL Buyer’s Stamp Duty (ABSD) of 35 per cent will be imposed on any transfer of residential property into a living trust, where the transfer occurs from May 9, the Ministry of Finance announced late on Sunday night (May 8). Read more at The Business Times.

08/05/2022

What’s Up This Week?

-----

1. Singapore landed homes see fastest price appreciation in a decade in 2021: ERA

https://www.businesstimes.com.sg/real-estate/singapore-landed-homes-see-fastest-price-appreciation-in-a-decade-in-2021-era

LANDED residential property prices in Singapore appreciated at the fastest pace in the past 10 years in 2021, surging 13.3 per cent year on year compared to a lacklustre 1.2 per cent expansion in 2020.

According to a report by ERA Realty Network on the Singapore landed housing market released on Wednesday (May 4), prices of landed housing from 2018 to 2021 also grew faster than prices of non-landed properties such as condominium units. During this 4-year period, capital values of landed residential properties increased by 28.8 per cent, while those of non-landed housing climbed 24.2 per cent.

With limited supply of landed housing in the primary market, more than 90 per cent of landed homes transacted were in the secondary market, with both segments seeing increases in the number of units sold in 2021. Year-on-year primary market sales volume of landed housing rose 157.6 per cent while secondary sales volume increased 71.6 per cent.

Among the 3 market segments in Singapore, the Core Central Region (CCR) saw the quickest rise in the number of landed homes transacted in 2021, followed by the Rest of Central Region and Outside Central Region, respectively.

Looking ahead, ERA believes prices of landed homes will appreciate by an estimated 9 to 15 per cent in 2022, as demand rises along with further recovery in the Singapore economy, even as supply remains limited. This is because the stock of landed homes launched and available for sale by developers fell to a historical low with a total of 60 unsold units islandwide in Q1 2022, said ERA.


-----

2. Hong Kong residents are flocking to Singapore, snapping up rental homes

https://www.cnbc.com/2022/04/28/hong-kong-residents-moving-to-singapore-snapping-up-rental-homes.html

Private home rents climbed 4.2% in the first quarter of this year, compared to a rise of 2.6% in the previous quarter, according to the Urban Redevelopment Authority.

“Anecdotally, we know that perhaps there are some of those based in Hong Kong looking to relocate to Singapore, and this is contributing to the increase in rents,” said Leonard Tay, head of research at real estate agency Knight Frank Singapore.

To be clear, interest from Hong Kong is not the only reason for rising rents. Rental prices in Singapore were already moving higher during the pandemic due to demand from various sources, including young adults moving out of their parents’ homes and people looking for interim housing because of construction delays.

Visitor arrivals from Hong Kong to Singapore nearly doubled from January to February this year, according to Singapore’s tourism board.

That figure rose further in March, jumping more than 110% from February, official data shows.

LANDED residential property prices in Singapore appreciated at the fastest pace in the past 10 years in 2021, surging 13.3 per cent year on year compared to a lacklustre 1.2 per cent expansion in 2020. Read more at The Business Times.

08/05/2022

What’s Up This Week?

-----

1. New private home sales rebound to grow 20.7% in March

https://www.channelnewsasia.com/singapore/new-private-home-sales-rebound-grow-207-march-2631506

Sales of new private homes rose by 20.7 per cent in March, rebounding from a sharp decline in the previous month.

Excluding executive condominiums (ECs), developers sold 654 units last month, up from 542 in February according to data released by the Urban Redevelopment Authority (URA) on Monday (Apr 18).

Most of these were in the Rest of Central Region (RCR), where 320 units were sold. There were 181 units sold for Outside Central Region (OCR), and in the Core Central Region (CCR), 153 units were sold.

-----

2. Singapore private home prices rise at slower pace of 0.7% in Q1 after cooling measures

https://www.channelnewsasia.com/business/ura-private-home-prices-resale-rental-cooling-measures-q1-2022-2640386

Private home prices in Singapore rose 0.7 per cent in the first quarter, slightly above flash estimates released earlier this month, but down from the 5 per cent increase in the previous quarter, due to cooling measures.

The private residential property price index increased to 174.8 points in the first quarter, up from 173.6 points in the previous quarter on the back of landed properties, according to real estate statistics released by the Urban Redevelopment Authority (URA) on Friday (Apr 22).

Prices were bolstered by landed homes for which prices increased by 4.2 per cent, compared with the 3.9 per cent increase in the previous quarter.

On the other hand, prices of non-landed properties went down by 0.3 per cent, a sharp reversal from the 5.3 per cent rise in the fourth quarter of 2021.

RENTALS

Rentals of private homes rose by 4.2 per cent in the first quarter from the 2.6 per cent increase in the previous quarter.

This was driven by both the landed and non-landed properties segment. Rentals of landed homes increased by 5.3 per cent in Q1 2022 compared with the 1.2 per cent increase in the previous quarter, while rental of non-landed properties jumped by 4.1 per cent from 2.7 per cent in Q4 2021.

A shrinking rental stock and a lack of new home supply drove rents up, said Ms Christine Sun, senior vice president of research and analytics at OrangeTee & Tie.

Future homebuyers who were priced out of the market or affected by the cooling measures turned to the rental market, boosting rental demand and pushing rents higher, Ms Sun added.

NEW LAUNCHES

The drop to an all-time low of 613 units in Q1 2022 was due to the lack of major project launches or mega developments that have 1,000 units and above, said Mr Mohan Sandrasegeran, research & content analyst at Ohmyhome.

This was the sharpest drop since the second quarter of 2020, when there was a total of 1,713 units sold, added Mr Mohan.

SUPPLY IN PIPELINE

As of the end of the first quarter, there was a total supply of 47,415 uncompleted private residential units and 5,333 EC units in the pipeline with planning approvals.

SINGAPORE: Private home prices in Singapore rose 0.7 per cent in the first quarter, slightly above flash estimates released earlier this month, but down from the 5 per cent increase in the previous quart

08/05/2022

What’s Up This Week?

-----

1. New home sales up in March, expected to stay buoyant in coming months

https://www.businesstimes.com.sg/real-estate/singapore-private-home-sales-to-rise-in-the-coming-months-analysts

Developer sales increased in March as home buyers are "coming to grips" with cooling measures, according to analysts. The growth also came as the Lunar New Year seasonal lull passes.

"The expected rise in interest rates also encouraged some people to buy properties and lock-in the current home mortgage rate," said Nicholas Mak, ERA Realty's head of research and consultancy.

"Geopolitical tensions have placed safe havens such as Singapore in the spotlight with foreign money flowing into properties," noted Lee Sze Teck, Huttons Asia senior research director.

Based on caveats lodged, analysts estimated that developers sold 651 new private homes last month, up 23.5 per cent from February's 527 units. Compared with the previous year, the estimates are 49.8 per cent lower than the 1,296 units sold in March 2021.

Last month also saw the sale of 48 executive condominiums (ECs), which are a public-private hybrid, up 50 per cent from 32 EC units sold in February, Mak noted. Including ECs, developers sold 699 units in March, up 25 per cent from the 559 units moved in February.

-----

2. 6,000 HDB flats to be built on Keppel Club site, first BTO project expected to launch within 3 years

https://www.channelnewsasia.com/singapore/hdb-flats-keppel-club-site-first-bto-launch-three-years-2621536
About 6,000 Housing and Development Board (HDB) flats will be built on the site of Keppel Club, with the first Build-to-Order (BTO) project expected to launch within three years, said Minister for National Development Desmond Lee on Tuesday (Apr 12).

It was previously announced at the 2019 National Day Rally that about 9,000 new public and private homes will be built on the Keppel Club site.

Measuring around 48 hectares – about the size of 86 football fields, the area will be redeveloped for housing when the golf club’s lease “runs out”, said the National Development Minister.

“Being close to the coast as well as green spaces, the Keppel Club site will offer unique waterfront living, close to nature,” Mr Lee added.

-----

3. 4-room BTO flats at Keppel Club site could cost more than S$700,000, high demand expected: Analysts

https://www.channelnewsasia.com/singapore/keppel-club-bto-hdb-plh-model-how-much-property-analysts-2623251

Buyers who are interested in the new Housing and Development Board (HDB) flats built on the Keppel Club golf course site could pay more than S$700,000 for a four-room Build-to-Order flat, property analysts said.

The development will likely see high demand, and some flats may come under the Prime Location Public Housing (PLH) model, they said.

However, it will be important to ensure that public housing remains inclusive to different segments of the population, and there may be rental units set aside in the area, analysts added.

SINGAPORE: Buyers who are interested in the new Housing and Development Board (HDB) flats built on the Keppel Club golf course site could pay more than S$700,000 for a four-room Build-to-Order flat, property analysts said. The development will likely see high demand, and some flats may come

08/05/2022

What’s Up This Week?

-----

1. Singapore private home prices up 0.4% in first quarter: URA flash estimates

https://www.channelnewsasia.com/singapore/singapore-private-home-prices-ura-flash-estimates-2600966

Private home prices in Singapore rose by 0.4 per cent in the first quarter of 2022, according to official flash estimates released by the Urban Redevelopment Authority (URA) on Friday (Apr 1).

This is the slowest price increment since the second quarter of 2020, when prices rose by 0.3 per cent. Prices went up by 5 per cent in the previous quarter.

The first quarter private residential property index increased to 174.3 points, up 0.7 points from the last quarter.

"Overall, the significantly slower pace of price increase at 0.4 per cent from 5 per cent last quarter was expected," said Catherine He, Colliers' head of research for Singapore.

"This can be attributed to a multitude of factors such as the slower rate of sales and launches during the lunar new year period, uncertainty from geopolitical tensions, buyers taking a wait-and-see approach post cooling measures and budget, as well as impending interest rate hikes."

-----

2. HDB resale prices rise 2.3% in first quarter, lowest growth since Q3 2020: Flash estimates

https://www.channelnewsasia.com/singapore/hdb-resale-price-rise-flash-estimate-2600781

Resale flat prices in Singapore rose 2.3 per cent in the first quarter of 2022 - the lowest growth since the third quarter of 2020, according to flash estimates released by the Housing and Development Board (HDB) on Friday (Apr 1).

Eighty-two flats were sold for at least S$1 million last quarter, which was almost on par with the 85 transactions inked in the preceding quarter, she said.

"Of the million-dollar transactions, more flats breached the S$1.3 million mark and could soon be breaking the S$1.4 million level. Six flats were transacted above S$1.3 million in total, with four such units inked last quarter and another two units transacted in Q4 2021," Ms Sun said.

-----

3. Most landlords prefer to rent to tenants of the same race: CNA-IPS survey

https://www.channelnewsasia.com/singapore/rental-housing-racism-discrimination-tenants-minority-survey-2601326

In choosing a tenant, a majority of Singapore residents said they would prefer to rent to someone of the same race, according to a survey on race relations conducted by CNA and the Institute of Policy Studies (IPS).

“This is only to be expected, as renting a room in one’s own home would bring the respondent into closer contact with the hypothetical rental tenant,” said the report.

About 40 per cent said they might change their minds if they could conduct regular inspections to ensure the house or room was properly cleaned and maintained. But more than a third (34.2 per cent) said that nothing would change their minds.

22/03/2022

What’s Up This Week?

-----

1. Singapore new private home sales slump 22.5% in February under 'quadruple whammy'

https://www.businesstimes.com.sg/real-estate/singapore-new-private-home-sales-fall-225-in-february

NEW private home sales slumped in February under a “quadruple whammy” from the Chinese New Year lull period, a declining housing supply, cooling measures and global uncertainties from the Russia-Ukraine war.

Developers in Singapore sold 527 new private homes in February, down 22.5 per cent from January's 680 units, data from the Urban Redevelopment Authority (URA) showed on Tuesday (Mar 15). The figures are also 18.3 per cent lower than the 645 new private homes sold in February 2021.

Last month’s volume was the lowest since 487 units were sold in May 2020 during the Circuit Breaker period.

Including executive condominiums (ECs), which are a public-private housing hybrid, 559 units moved last month, down 23.6 per cent from January.

The drop also came despite developers placing 194 units (excluding ECs) for sale on the market, 9 per cent more than the 178 units in January and 16.2 per cent higher than February 2021’s 167 units.

-----

2. HDB flat resale prices rose for 20th straight month in February, volume fell by 22%

https://www.straitstimes.com/singapore/housing/hdb-flat-resale-prices-rose-for-20th-straight-month-in-february-volume-fell-by-22

The prices of Housing Board resale flats edged up for the 20th straight month in February, while the number of flats sold fell on the back of property cooling measures introduced in December.

Last month, HDB resale flat prices rose by 0.6 per cent compared with January's 1.1 per cent, according to flash data from real estate portals 99.co and SRX on Thursday (March 10).

Compared with February last year, prices were up by 12 per cent, data showed.

Price hikes were seen in both mature and non-mature estates, with prices of five-room units climbing the most at 1.4 per cent. The prices of three-room units fell by 0.1 per cent.

-----

3. Good class bungalow sales, prices soar to new highs in 2021; luxury condo sales double

https://www.straitstimes.com/business/property/good-class-bungalow-sales-prices-soar-to-new-high-in-2021-luxury-condo-sales-double

The good class bungalow (GCB) segment enjoyed a banner year in 2021 as volumes and prices climbed to fresh highs. It posted a stellar performance in the first half of the year and held steady in the second half despite year-end festivities and diminished supply.

CBRE noted that 40 deals worth some $1.22 billion were recorded in H2 2021, bringing the full-year tally to 99 with a total transaction value of $3 billion. That surpassed the previous record of about $2.43 billion set in 2010 and is nearly triple the $1.09 billion in 2020.

There were 19 GCB transactions that crossed the $2,000 per square foot (psf) threshold last year. They drove the average GCB price up to $1,771 psf, crossing the previous peak of $1,617 psf in 2019.
-----

4. Condo and HDB rents continue to climb, both rising over 1% in February

https://www.businesstimes.com.sg/real-estate/condo-and-hdb-rents-continue-to-climb-both-rising-over-1-in-february

CONSTRUCTION delays resulting from restrictions to curb the spread of the Covid-19 pandemic have continued to push rents higher in both condominiums and Housing and Development Board (HDB) flats.

Condominium rents rose for 14 straight months, going up 1.4 per cent in February compared to the previous month, while rents for HDB flats also continued the uptrend for 20 consecutive months, increasing by 1.7 per cent over the same period, according to flash estimates by SRX and 99.co released on Wednesday (Mar 16).

On a year-on-year basis, overall rents for condominiums have gone up 11.8 per cent, while HDB rents rose 12.4 per cent.

Among condominiums, rents for those located in the rest of central region (RCR) saw the highest monthly increase of 2.2 per cent. Those in the core central region (CCR) went up 1.8 per cent, while units in the outside central region (OCR) rose 0.4 per cent.

23/02/2022

What’s Up This Week?

-----

1. Budget 2022: Property tax rates for homes to rise from 2023, analysts don’t expect demand to dampen

https://www.businesstimes.com.sg/government-economy/budget-2022-property-tax-rates-for-residential-properties-to-go-up-from-2023

Property taxes rates for both owner-occupied and non-owner-occupied residential properties will go up in 2 steps starting from 2023, but analysts do not expect this to dent demand for homes.

The property tax rate for non-owner-occupied residential properties – which includes investment properties – will be hiked across the board: from 10-20 per cent presently, to 11-27 per cent from Jan 1, 2023 and 12-36 per cent from Jan 1, 2024.

Meanwhile, the property tax for owner-occupied residential properties will go up for the portion of AV in excess of S$30,000: from 4-16 per cent today, to 5-23 per cent from 2023 and 6-32 per cent from 2024. "This increase will impact the top 7 per cent of owner-occupied residential properties," said Finance Minister Lawrence Wong during the Budget speech.

-----

2. Analysts See Little Impact as Singapore Raises Property Taxes to as High as 36%

https://www.mingtiandi.com/real-estate/research-policy/singapore-to-raise-property-taxes-to-as-high-as-36/

“This is an important part of our tax system. Apart from generating revenue, they also help to recirculate a portion of the wealth stock into our economy and in so doing, mitigate social inequalities,” Wong said. “Wealth taxes are therefore needed to build a fairer society where everyone can aspire to succeed regardless of their backgrounds.”

With Singapore wary of growing income inequality, Wong pointed out that the new system, which imposes higher taxes on more expensive units, places its highest tax rates on homeowners in the top seven percent of the city-state’s income bracket.

After seven years since Singapore last raised property taxes, the latest revision is expected to provide the government S$380 million in additional revenues each year, while having what some see as only limited impact on demand.

“I don’t see a huge impact on market sentiment and most investors are likely to shrug off the increase in property taxes,” said Wong Xian Yang, head of research head for Singapore at Cushman & Wakefield. “While an increase in property tax does increase holding costs for property, it is unlikely to dampen demand as the increase in absolute cost is relatively small.”

-----

3. Budget 2022 Property Tax: How much more it’ll cost you + what it means for the market

https://stackedhomes.com/editorial/budget-2022-property-tax-how-much-more-itll-cost-you-what-it-means-for-the-market/ .qkh1ha

Property Tax is calculated based on Annual Value; and Annual Value is based on estimated annual rental income, as determined by IRAS. Note that AV is not related to actual rental income, which can be significantly higher or lower.

The majority of homes in Singapore will not even reach an AV of $30.000. The AV of the average HDB flat is below $10,000, so none of this is really relevant to flat owners.

Even among private properties, most mass-market condos have an AV of around $22,000 to $24,000. Most properties that exceed an AV of $30,000 are upmarket condos, prime region developments, landed homes, etc.

As such, the vast majority of Singaporean home buyers probably won’t notice any difference. Even among landlords, those renting out mass-market condos will probably see a bump of just one or two percentage points.

How will the taxes affect the property market?
• Landlords will likely push for higher rent to compensate
• Not much impact at both the highest and lowest tiers
• Investors may shift to more mass-market assets
• Most of the impact is on landed homes

23/02/2022

Highlights of Budget 2022

In case you missed it, here are 11 highlights from Mr Wong's speech, in which he announced major tax changes and targeted help for various groups:

1. GST hike: str.sg/wmqJ
2. Measures to cushion the impact of the GST hike: str.sg/wmqT
3. Carbon tax increase: str.sg/wmTm
4. Rise in personal income tax rates for top earners: str.sg/wmTy
5. Higher taxes on properties, luxury cars: str.sg/wmqk
6. More help for families, including more vouchers for daily expenses: str.sg/wmTw
7. Greater support for businesses recovering from Covid-19: str.sg/wmTU
8. Policies to uplift lower-wage workers: str.sg/wmTa
9. CPF basic retirement sum to be raised: str.sg/wmTR
10. Foreign worker policy revisions: str.sg/wmTd
11. Singapore's fiscal outlook: str.sg/wmqN

Budget Booklet: https://www.mof.gov.sg/singaporebudget/resources/budget-booklet/budget-booklet-english

23/02/2022

What’s Up This Week?

-----

1. HDB launches second BTO project under prime location public housing model in Kallang/Whampoa

https://www.straitstimes.com/singapore/housing/hdb-launches-second-bto-project-in-kallangwhampoa-under-prime-location-model

A total of 3,953 Build-To-Order (BTO) flats were launched for sale by the Housing Board on Thursday (Feb 17), including 398 units in Kallang/Whampoa - the second project under the prime location public housing (PLH) model - which come with a 6 per cent subsidy clawback clause upon their resale.

The units are spread across six housing projects in four estates, in the first sale exercise of the year, with waiting times ranging from about three to five years.

The project under the PLH model - King George's Heights - comes with stricter buying and selling conditions.

It comprises three-room and four-room flats housed in one block with two wings of 33 and 47 storeys. Bounded by King George's Avenue, Syed Alwi Road and Rochor Canal, the site is within a six-minute walk of the first PLH project in Rochor launched in November last year.

Prices range from $353,000 to $462,000, without grants, for a three-room flat, and $488,000 to $675,000 for a four-room flat, lower than those in the Rochor BTO project.
-----

2. BTO flats near Redhill, Tiong Bahru MRT stations to be launched in May

https://www.straitstimes.com/singapore/housing/bto-flats-near-redhill-tiong-bahru-mrt-stations-to-be-launched-in-may

House hunters looking for a unit in Redhill and Tiong Bahru will be able to pick from two Build-To-Order (BTO) projects in the Housing Board's (HDB) upcoming sales exercise in May.

In May, around 780 three-room and four-room flats are expected to be launched on a site next to Redhill MRT station.

Another 1,660 three-room and four-room units are slated to be offered on a larger site that is bounded by Tiong Bahru and Henderson roads and within walking distance to Tiong Bahru MRT station.

Strong demand is expected for both developments, which property analysts said could fall under the prime location public housing (PLH) model as they are in the mature estate of Bukit Merah, where there have been several million-dollar HDB resale deals.

Owners of flats under the PLH model are subject to a subsidy clawback and a 10-year minimum occupation period, among other stricter buying and selling conditions.

-----

3. S'pore economy beats estimates to expand 7.6% last year; 2022 growth forecast kept at 3-5%

https://www.straitstimes.com/business/economy/singapore-economy-beats-estimates-to-expand-76-in-2021-2022-growth-forecast-kept-at-3-5

Singapore's economic growth for the whole of 2021 came in at 7.6 per cent, up from the previous estimate of 7.2 per cent, the Ministry of Trade and Industry (MTI) said on Thursday (Feb 17).

MTI also revised its 2020 growth figure to a contraction of 4.1 per cent from an earlier estimate of minus 5.4 per cent.

This was after more comprehensive data from surveys showed better performance from sectors such as services, wholesale trade, transport and storage, and information and communications.

The gross domestic product growth forecast for 2022 was, however, maintained at 3 per cent to 5 per cent, MTI said in its Economic Survey report.

The upgrade for 2021 came after fourth-quarter GDP growth was revised to 6.1 per cent year on year, from the previous projection of 5.9 per cent.

Analysts said that the latest set of economic data highlights the resilience of Singapore’s economy despite the Covid-19-related risks.

At a media briefing, Mr Gabriel Lim, Permanent Secretary for Trade and Industry, said: “GDP growth in 2021 was mainly driven by the manufacturing, finance and insurance, and wholesale trade sectors.”

For 2022, MTI said the Singapore economy “is expected to continue to expand this year, although the outlook for the various sectors remains uneven”.

“Overall, activity in these sectors is expected to remain below pre-Covid-19 levels even by the end of 2022,” said MTI.

-----

4. Household incomes rose in 2021 to above pre-Covid levels as Singapore economy recovered

https://www.straitstimes.com/singapore/household-incomes-grew-in-2021-as-singapore-economy-recovered-from-covid-19

The median household income grew last year in tandem with Singapore's economic recovery from the Covid-19 pandemic, after it had fallen in 2020 for the first time in a decade, according to new figures released by the Singapore Department of Statistics (SingStat) on Tuesday (Feb 15).

Last year, the median household income from work rose by 3.6 per cent in nominal terms, or before adjusting for inflation, to $9,520, from $9,189 in 2020 - surpassing pre-pandemic levels. After taking into account inflation, this works out to a 1.5 per cent increase in real terms.

The household income from work includes employer Central Provident Fund contributions.

Nearly all income groups saw increases in average household income per member, except for top earners, who saw a 1.1 per cent drop in real income.

Meanwhile, household income inequality fell to the second-lowest since 2000, after accounting for Government transfers and taxes. It had hit an all-time low in 2020 with massive Covid-19 reliefs.