Frustrated agent starts petition

Posted on 14 Jun 2013 | Comments Off on Frustrated agent starts petition

One Singapore real estate agent has launched an online petition in a bid to force consumers to pay the GST on their rental fees.

Jason Lim of Vestor Realty is one of a growing number of Singapore real estate agents who are increasingly frustrated at having to absorb the tax element of deals when clients refuse to pay. He has now taken to online channels and is petitioning the Council for Estate Agencies (CEA) to take action.

Lim says: “GST isn’t and shouldn’t be an optional extra, but it seems like every time a rental is transacted, realtors will be arguing with the landlord to pay their GST. Invariably these landlord and consumers get their own way, but why should realtors subsidise them at all?”

In March PropertyGuru first reported how increasing number of real estate agents are being forced to absorb GST.

At that time a spokesperson for the Inland Revenue Authority of Singapore (IRAS) said: “All GST-registered businesses have to charge GST on the sale of goods or the provision of services. They are required to quote GST-inclusive prices, whether written or verbal, to their customers. The above principle applies to the services that GST-registered property agents provide in arranging or brokering property transactions.”

To minimise disputes, IRAS suggest that GST-registered property agencies and landlords should reach an upfront agreement on the GST-inclusive agent fee payable on the services rendered, and to formalise this in their contractual arrangement for property-related services.

In his online petition which was launched yesterday, Lim adds: “We ask that CEA make GST non-negotiable and compulsory for all consumers on all transactions, and to pay their rightful GST when paying commission to realtors.”

Yeap Soon Teck, Deputy Director (Licensing), Council for Estate Agencies, told PropertyGuru: “The CEA has constantly highlighted in its consumer education resources and messages that a GST-registered estate agent is allowed to charge and collect the Goods and Services Tax (GST), a requirement for GST-registered businesses under the guidelines of the Inland Revenue Authority of Singapore. Consumers are also advised to clarify with their salespersons if the GST payable is factored into the commission amount stated in the estate agency agreement.

He added: “CEA also has in place Prescribed Estate Agency Agreements, which are standard forms prescribed in the Estate Agents (Estate Agency Work) Regulations, that allow the estate agent to indicate whether it is GST-registered and whether GST is applicable or payable upon the transaction.

He confirmed that CEA has previously received similar feedback and is currently reviewing the standard forms to emphasise that if the estate agent is GST-registered then GST should be payable to the estate agent.

Petition: http://www.change.org/en-GB/petitions/council-for-estate-agencies-cea-impose-gst-as-non-negotiable-and-compulsory-payable-by-all-consumers

Source: PropGuru – 14 jun 2013

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Posted in CEA, General, Tax Matters / Property Tax

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Good buys at Newton for under $2,000 psf

Posted on 14 Jun 2013 | Comments Off on Good buys at Newton for under $2,000 psf

Buyers have turned their attention to the Novena and Newton area, snapping up units in condominiums such as The Lincoln Residences, Park Infinia @ Wee Nam and Rochelle @ Newton. Property agents say the renewed interest stems from the area’s affordability, considering its city-fringe location, as well as the condos’ larger unit sizes and the many entertainment and lifestyle options nearby.

On May 21, two units at The Lincoln Residences, a freehold condo on Surrey Road, off Newton Road, were transacted. One of the units was a 1,981 sq ft, three-bedroom apartment on the 22nd floor, which sold for $3.6 million ($1,820 psf). The other was a 1,884 sq ft, three-bedroom unit on the 18th floor, which changed hands for $3.29 million ($1,744 psf).

The developer of The Lincoln Residencesis Sim Lian Group. The project was completed in 2011 and contains 99 units. The property is a few minutes’ walk from United Square and the Novena MRT station. The 27-storey de- velopment comprises three-bedroom, three- bedroom-plus study and four-bedroom units as well as penthouses. The sizes of the units range from 1,281 to 3,337 sq ft.

Lyndy Sze, senior group associate direc- tor at Orange Tee, says buyers are attracted to The Lincoln Residences’ generous sizing. “Most properties in Novena and Newton of- fer small units of about 500 sq ft. The Lincoln Residences come in layouts of three to four bedrooms.” Facilities at the condo include swimming pools, tennis courts, a gym and a playground.

At $1,800 psf, The Lincoln Residences is selling at a more affordable psf price than properties such as Newton Imperial, a completed project that is selling at $2,000 psf, says Sze. The units at Newton Imperial are also large, with three-bedroom units start- ing from 1,711 sq ft. “The Lincoln Residences is a more affordable option compared with properties in Orchard. It also has full condo facilities, which are quite rare in the New- ton and Novena area,” Sze says. Launched in July 2008, only 10 units, mainly four-bed- room ones, are available for sale from the developer, she adds.

Meanwhile, on May 22, a 1,356 sq ft, three- bedroom unit at Rochelle @ Newton, a 99-year leasehold condo on Keng Lee Road, changed hands at $2.08 million ($1,534 psf). The 12th- floor unit was first sold in August 2009 for $1.46 million ($1,073 psf), which means the property saw a 43% price increase. On May 21, a 26th-floor 3,025 sq ft penthouse was sold for $4.2 million ($1,389 psf).

Developed by Sim Lian Group, Rochelle @ Newton comprises 129 units with sizes ranging from 1,012 sq ft for a two-bedroom unit to 3,283 sq ft for a penthouse.

According to Jimmy Lim, team asso- ciate director at Orange Tee, the property was completed last April and is about a few minutes’ walk to the Newton MRT station. “It has large and practical layouts. Units on the higher floors offer city views, and from some units, you can see Marina Bay Sands,” says Lim, who has sold more than 10 units since the project’s completion. There are just two units — a 1,012 sq ft, two-bedroom apartment and a 1,507 sq ft, three-bedroom apartment — available for sale from the developer, he adds.

According to listings on propertyguru. com.sg, rents at Rochelle @ Newton begin at $6,500 a month for a threebedroom unit of 1,356 sq ft, which works out to a yield of about 4%. Lim, who is also marketing units for lease at Rochelle @ Newton, says it is popular with expatriates because of its proximity to offices at United Square, Revenue House and Novena Square. It is also a short commute to the Tanglin and Holland Road area, where many embassies are located. “Some senior employees from foreign embassies are renting at Rochelle @ Newton,” Lim says.

At the neighbouring Park Infinia @ Wee Nam, two units were transacted on May 20 and 22. One was a 969 sq ft, two-bed- room unit on the 13th floor, which sold for $2.04 million ($2,106 psf). The unit was first transacted in October 2008 for $1.36 million ($1,399 psf), translating into a 51% price gain. On May 20, a 1,464 sq ft, three- bedroom unit on the eighth floor was sold at $3.03 million ($2,070 psf). It was first transacted in February 2006 for $1.42 million ($969 psf), which means prices have more than doubled since then.

Developed by Keppel Land, the freehold Park Infinia @ Wee Nam was completed in 2008 and contains 486 units. Unit sizes range from 560 sq ft for a studio apartment to 2,002 sq ft for a four-bedroom apartment that comes with a private lift lobby.

Source  – TheEdge – 12 June 2013

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