MND says no to relaxing property cooling measures

Posted on 5 Jul 2014 | Comments Off on MND says no to relaxing property cooling measures

The Ministry of National Development (MND) said it is too early to relax the property cooling measures, according to media reports.

The cooling measures include extra stamp duties to rein in speculative buying as well as the total debt servicing ratio (TDSR) framework which was rolled out last year.

Even though there is decline in home sales, prices have remained relatively stable.

“It is still too early to relax the property market cooling measures. If the measures are removed prematurely, we could see a sharp increase in demand and housing prices,” said a spokesman.

He added that the measures were placed to “ensure a stable and sustainable property market.”

MND’s statements came after property developer Kwek Leng Beng warned of a possible impact on the country’s the reputation as a global city, while calling for a review of the property cooling measures.

The National University of Singapore (NUS)’s Residential Price Index showed that resale home prices rose 0.8 percent month-on-month in May, after dropping for nine months, while Urban Redevelopment Authority (URA)’s flash estimates for private home prices showed a 1.1 percent decline in prices in Q2 2014 or its third continuous quarter of price decrease.

Christine Li, OrangeTee’s Head of Research and Consultancy, said the government will remain cautious since interest rates remain low and Singaporeans are still keen on investing in property.

“Four years ago, mass market units were about $700 to $800 psf. Now, the more attractively priced units are already nearing $1,000 psf,” she noted. “I think upgraders from Housing Board flats in particular will still prefer a steeper price correction.”

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Posted in Cooling Measures, Government, Property Market / Real Estate

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Court divides bungalow based on couple’s contribution

Posted on 5 Jul 2014 | Comments Off on Court divides bungalow based on couple’s contribution

Before buying a house, married couples should discuss how they will split the property in case they break up.

The Court of Appeal said this in its ruling last week, regarding an ownership tussle over a $20 million good class bungalow (GCB) between Chan Yeun Lan and her husband, See Fong Mun.

The house was purchased in 1983 by See, using his own funds and overdrafts, plus $290,000 from Chan’s savings. Three days before the transaction, she inked a power of attorney which allows her husband and their eldest son to manage the 20,000 sq ft property.

However, she rescinded the document in April 2011. Consequently, her husband filed a case in the High Court to invalidate her action, and he won the right to keep the bungalow in May 2013.

In the appeal, his lawyers Lim Seng Siew and Lai Swee Fung argued the house in Chancery Lane belonged entirely to their client because Chan’s contribution was intended to be a loan that will be repaid by See.

Chan’s Senior Counsel Engelin Teh and attorney Simon Jones asserted that certain documents prove that See had agreed to give her the ownership of the property in return for her contributions.

However, the Court of Appeal, comprising Chief Justice Sundaresh Menon and Judges of Appeal V.K. Rajah and Andrew Phang, decreed that 15.8 percent of the property should go to Chan due to her financial contribution. This is because both parties’ common intention in relation to the house is uncertain due to incomplete evidence and the wife’s hazy memory.

Chan died earlier this year, after her appeal was heard against a High Court decision.

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Posted in Conveyancing / Legal, Luxury Property

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