04/07/2005- Reduction in land rent and prices by an average of 20% from July 2005
In order to keep business cost competitive, JTC Corporation (JTC) will reduce industrial land rent and prices by an average of 20% from 1 July 2005. For urban and suburban areas like Kallang Basin and Paya Lebar, there will be a reduction of up to 25%. Similarly, land rent and prices for outlying areas like Woodlands will also be reduced.
This measure will boost Singapore's overall cost competitiveness as we thrive in an increasingly competitive global environment, competing for jobs and investment.
For existing land lessees, the land rent and prices will be adjusted to the new market rent level. In cases whereby the Lessees land rent falls below the new market rent level, they will continue to pay the same rent. HDB (Housing Development Board) will also be adjusting the industrial land rent which is under its management.
For ready-built facilities category, JTC will reduce the building rent for its business park buildings by 5 to 10%, while monitoring its rent and prices to ensure that they are in line with existing market conditions.
Back to top
19/07/2005 - Revised Housing Loan Limit and Downpayment for Purchase of HDB flats
HDB will revise upwards the housing loan limit for HDB concessionary loans with immediate effect, in tandem with the upward adjustment of mortgage financing limit by banks and financial institutions.
Revisions to Housing Loans Guidelines
The Government has announced the following revisions to the housing loans guidelines for banks and financial institutions:
- Financing limit: Loan-To-Value Limit to increase from 80% to 90% of Value1 of Property.
- Cash Requirement: Lowered from 10% to 5% of Value.
Housing Loans From HDB for Purchase of HDB Flats
HDB has revised its guidelines for granting HDB Loans.
- Downpayment for Purchase of Flats
The downpayment will be reduced from 20% to 10% of the Value. The 10% downpayment is fully payable with CPF monies as per existing policy.
- Housing Loan Ceiling
The housing loan ceiling will be raised from 80% to 90% of the Value, subject to credit assessment and full utilisation of CPF monies before loan disbursement.
Housing Loans From Banks for Purchase of HDB Flats
HDB flat buyers will pay a lower 10% downpayment and be able to obtain a mortgage loan up to 90% limit from banks and financial institutions.
The original plan was for the 10% cash downpayment for HDB flats financed with bank loans to be phased in over a period of 5 years, with a 2% increase each year starting from 1 Jan 2004. Currently, the cash portion of the downpayment is 4%. Under the revised guidelines, buyers undertaking bank loans have to pay 5% downpayment in cash. The last 1% increase will take effect from 1 Jan 2006.
Staggered Downpayment Scheme
Currently, young couples who book a flat from HDB that is under construction can qualify for HDB's Staggered Downpayment Scheme. Under the Scheme, they can pay the downpayment in two instalments - the first 10% upon signing the Agreement for Lease for the flat, and the remaining 10% upon taking possession of the flat. Under the new scheme, young couples will only need to pay a 5% downpayment when signing the Agreement for Lease, and the remaining 5% upon taking possession of the flat.
Implementation
These revised policies will take effect from 19 Jul 2005. The cut-off date for purchase of new and resale HDB flats, and transfer of ownership of existing flats will be based on the following:
| Mode |
Cut-off Dates |
| Purchase of New Flats |
Date of booking flat |
| Purchase of Resale Flats |
Date of resale application received by HDB |
| Transfer of Ownership of Flats |
Date of transfer application received by HDB |
Back to top
25/07/2005- Outsourcing of HDB and URA Car Parks Enforcement Services
From 1 Aug 2005, the Housing and Development Board (HDB) and the Urban Redevelopment Authority (URA) will outsource their car parks enforcement function to private service providers. This will allow HDB to focus on their core businesses, and outsource functions, which could be performed more cost effectively by the private sector. Under the current outsourcing exercise, HDB has awarded the contracts to The Commercial & Industrial Security Corporation (CISCO) and SembCorp Environmental Management Pte Ltd on 31 May 2005. URA has awarded the contract to United Premas Ltd, which will manage the parking enforcement function for all URA carparks.
Parking charges or parking fines will not be affected. The Service Providers will adopt HDB and URA's standard procedures in enforcing parking services. While the service provider will issue notice of parking offences, HDB and URA will continue to follow up with the issuing of formal notices to affected motorists for settling parking fines and handle all necessary enquiries and payments. The public can continue to make enquiries or offer their feedback on parking services to HDB and URA.
Back to top
