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News Release

Singapore

Singapore Budget 2012 - Key Highlights


 
An inclusive society, a stronger Singapore
 
 
Policy

Enhancing our Transport System
• When the planned Downtown Line, Tuas West Extension, Thomson Line and Eastern Regional Line are completed in a decade’s time, we will also have 400,000 housing units within 400 metres of MRT stations, double the number today.
 
Silver Housing Bonus

• Introduction of a silver housing bonus of $20,000
• The bonus will be given to older Singaporeans who wish to sell their existing flats and purchase 3-room or smaller HDB flats.
• More studio apartments will be built in the next few years.
• The Government will provide $15,000 in cash and $5,000 to the CPF accounts. To benefit from the scheme, homeowners will use the proceeds from the sale of their previous home to top up their CPF savings up to the prevailing minimum sum
• To complement the Silver Housing Bonus, the Lease Buyback Scheme will be enhanced, with the incentive doubled from $10,000 to $20,000
 

Impact

Enhancing our Transport System
• Increase in Government Land Sales close to MRT stations over the next decade.
• We expect this to be more heavily weighted to the HDB / BTO market than the private market given the emphasis on an inclusive society
• 20,000 units per year over the next 10 years will need to be built within 400m of MRT stations

Silver Housing Bonus

• These are largely empty nesters aged 55 and above.
• We think up to 5% of the existing HDB households might take advantage of this scheme.
• Likely upside of up to 5% in churn in the HDB resale market
• By analysing the premium gap between 5-room and 3-room and 4-room and 3-room flats in each HDB town and the number of senior households in each town, the three neighbourhoods which might see more activity as a result of this new policy are Bukit Merah, Toa Payoh and Queenstown.

 
“As expected, the 2012 Budget has limited impact on the property market in light of recent market trends and existing government policies in place. The only effect could come from two avenues: Silver Housing Scheme and the Enhancing our Transport system. The former is likely to impact the resale activity in the public housing market favouring the older central districts such as Bukit Merah and Queenstown given the higher proportion of senior households and recent property price trends. On the development front, we should see a shift in developers’ strategy as there could be more public housing sites being released nearer train stations over the course of the next decade.” says Dr Chua Yang Liang, Head of Research, South East Asia. 
 
 
 
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About Jones Lang LaSalle

Jones Lang LaSalle (NYSE:JLL) is a professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2011 global revenue of USD 3.6 billion, Jones Lang LaSalle serves clients in 60 countries from more than 1,000 locations worldwide, including 200 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 2.1 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than USD 47.7 billion of assets under management. For further information, please visit our website, www.joneslanglasalle.com.
 
Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 22,000 employees operating in 78 offices in 14 countries across the region. 
 
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