Property rental markets are favouring tenants

The residential leasing market is gradually turning to favour tenants, even as there is likely to be strong demand over the next half a year.

The rental market was buoyant in the third quarter of the year. There were 15,083 rental transactions - a record number and an 11.6 per cent increase from the previous quarter.

This was attributed to factors such as the 5.1 per cent growth in GDP for Singapore year-on-year, lower unemployment rates, and foreign nationals bringing forward plans to relocate here in light of the Fair Consideration Framework (FCF) which will take effect next August.

The FCF will require every company with more than 25 employees to advertise job openings on a new government-sponsored job bank before applying for a new Employment Pass (EP).

While the framework applies to jobs with monthly salaries below $12,000, "it is foreseen that from the start of next year, the number of overseas nationals in Singapore will decline further, as EP holders will soon face more difficulties in getting approvals on both fresh and renewed applications”.

These factors come against a backdrop of higher vacancy rates and slower rental growths. In Q3, 6.1 per cent of private homes, or 17,459 units, were vacant, up from 5.6 per cent in Q2. This came on the back of several big projects such as the 1,040-unit The Interlace on Depot Road, the 429-unit Tree House on Chestnut Avenue and the 302-unit Cape Royale at Sentosa Island getting their temporary occupation permit.

As for rents, the overall index for private residential properties from the Urban Redevelopment Authority showed a 0.2 per cent growth in Q3, down from 0.3 per cent in Q2. The average monthly rent of high-end condominiums tracked by Savills was flat at $4.86 per square foot.

Source: Business Times – 26 November 2013

Property investment seminars on CEA radar

Bold claims by property experts of wielding the secret technique of buying homes with no cash outlay or owning multiple properties have proliferated in recent months, as investors look for ways to circumvent the successive rounds of cooling measures. This has inevitably raised alarm bells in some quarters.

Indeed, generating high returns, having the right opportunities identified and served up on a platter, and gaining financial freedom are some of the enticements dangled by newspaper advertisements on a daily basis.

Ranging from a quarter to half page, these advertisements often entice investors to investment seminars by waiving the registration fees for early birds. Investors who attend these seminars are not only drawn in by claims that these experts, who range from authors to enterprise award winners, have made millions from the property scene, but also that they get to waive the registration fees which can cost a few hundred dollars.

According to Yeap Soon Teck, deputy director (licensing), Council for Estate Agencies (CEA), the regulatory body is aware of such property investment companies inviting members of the public to attend seminars on property investment.

"We have conducted checks including on-site inspections of these seminars to ensure the companies comply with the Estate Agents Act," he said.

The Estate Agents Act covers the conduct of estate agency work - including introduction of a vendor to a purchaser or assistance in the negotiation of a transaction between them as well as subsequent work relating to the transaction - in Singapore, even if the property to be transacted upon is located outside the country.

Source: Business Times –23 September 2013

A property billionaire turns bearish

"[...]Up to 5% fall in property prices" is a very bold claim from the Chairman of City Developments Limited (CDL), a leading real estate developer in Singapore. 

Is he trying to talk the market down? Trying to manipulate market prices?

Read the below article and judge for yourself.

http://sg.finance.yahoo.com/news/property-billionaire-turns-bearish-130126516.html

Suburban launches to cross $1200psf

Take heed and get started early if you can. Get your new home now or continue waiting...

Property market stabilising but curbs will stay: Tharman

Property prices in Singapore are starting to stabilise but the Government is not ready to take its foot off the property market brakes, said Deputy Prime Minister Tharman Shanmugaratnam.

"Our intention is to stabilise the market, if possible have some softening of prices," he told Reuters in an interview yesterday.

"Longer term, our intention is to try as best as we can, although it's difficult, to have prices not run away from incomes, which means that on a trend basis, we would like to see some stability in prices relative to median incomes especially."

New HDB ruling on renovation workers

Renovation contractors will be required to hire only certified workers to carry out demolition or hacking works in HDB flats from Jan 1, 2014.

The HDB announced this mandatory requirement yesterday.

It also said that it is collaborating with the BCA Academy to customise a demolition course for renovation workers.

Under existing guidelines, HDB flat owners are required to engage contractors registered with the HDB for any renovation work and they must also obtain HDB's approval before the work begins, particularly if it involves demolition or hacking.

New Complex System Modelling Tool Enhances HDB’s Town Planning Efforts

This is so COOL!!

The Housing & Development Board (HDB) will be signing a Research Collaboration Agreement (RCA) with leading European companies Electricite de France (EDF) and Veolia Environnement Recherche et Innovation (VERI) on 14 Jun 2013 during the World Cities Summit (WCS) Mayors Forum held in Bilbao, Spain.

This signing, supported by the Economic Development Board (EDB), marks the beginning of a collaboration to develop a complex system modelling tool that will greatly improve HDB’s current approach towards town planning. Future residents in new towns such as Punggol, Bidadari, Tampines North and Tengah could stand to benefit from this tool’s ability to make effective urban planning decisions that will lead to a better living environment for residents in Singapore.

This computer modelling tool has the ability to simulate various built environments and to recommend an optimal scenario to meet the desired outcome of the living environment. This is particularly useful for town planners because they cannot afford experimentation with actual developments in land scarce Singapore. The tool will reduce the risk of physical trial and error by providing a virtual platform for testing a planned environment before developments are actually implemented.

For example, the computer model can simulate the various new urban solutions introduced to drive energy efficiency, effective waste management, water recycling, rainwater collection, thermal comfort and efficient transportation networks. Planners can then choose the optimal combination of solutions to achieve the desired sustainability targets.

HDB can also test out various housing typologies and determine how best to site the new flats to optimise wind flow, or to minimise heat and glare. The tool can help HDB study the most effective way to place the solar panels on the rooftops, which in turn could influence the way the buildings are orientated and designed.

Besides simulating and modelling ‘hardware’ initiatives, understanding the behaviour of the residents is another important aspect in this research collaboration. The behaviour of residents can have a significant impact on the sustainability performance of the ‘hardware’ initiatives and therefore also needs to be taken into account.

The design of public housing will continue to evolve, with more attention paid to design in order to add character and identity to the towns. New housing typologies will also be introduced to ensure liveable towns even as HDB builds in a high density environment. The complex system modelling tool complements HDB’s design efforts. It is an intelligent tool that will help HDB to derive the best combination of strategies using design, innovative technologies and influencing social behaviour so as to shape a good quality living environment for residents. Overall, it represents a new generation of tools to build smarter cities.

Dr Cheong Koon Hean, Chief Executive Officer of HDB, said: “HDB is pleased to embark on this collaboration with EDF and Veolia to develop this new modelling tool. This is a sophisticated tool that will simulate complex urban scenarios and help HDB planners analyse and determine the best combination of strategies using both design and technological solutions. Ultimately, it will help us create a better living environment that will benefit our residents.”

The WCS Mayors Forum, co-organised by Singapore’s Centre for Liveable Cities (CLC) and Urban Redevelopment Authority (URA) will be held from 13 to 15 Jun 2013. It will be a platform for over 100 city leaders, international organisations and urban solutions companies to discuss common urban challenges and share best practices in building liveable and sustainable cities.


Source: HDB

Bullish prices for Jurong East condo launch

The upcoming launch of MCL Land's J Gateway in Jurong East with prices in the bullish region of $1,600 per sq ft (psf) is set to test buyers' appetite for suburban homes.

Average prices of homes at the 738-unit development are expected to range from as high as $1,650 psf for a 474 sq ft one-bedder to $1,450 psf for a 1,163 sq ft four- bedder.

One agent said he has received over 100 queries from interested buyers in the past three weeks.

In comparison, developments launched in the area in the last few years are further from Jurong East MRT station - The Lakefront Residences, launched in 2010, is two MRT stops away while Parc Oasis is at Chinese Garden MRT station.

Based on the Government's Master Plan 2008, the 70ha Jurong Gateway encompasses amenities such as the Jurong East MRT station, existing and upcoming malls like Jem, J Cube, Westgate and Big Box, and Ng Teng Fong Hospital.

In due course, a new hotel will be developed in Jurong Gateway - a site there was bought for $238.2 million in November by Resorts World Singapore, a unit of Genting Singapore.

Jurong Gateway is one of two zones - the other being Lakeside - that make up Jurong Lake District.

Other consultants say prices at 99-year leasehold J Gateway are not far off from what other condos are also asking.

Prices of units at Keppel Land's The Lakefront Residences in the Lakeside area are at $1,434 psf for a 495 sq ft unit, and are expected to inch up.

That in turn, might lift resale prices of older condominiums such as Parc Oasis, which are at $1,022 psf for a 1,076 sq ft unit.

Source: The Straits Times –12 June 2013

Register your interest for J Gateway @ Jurong East

Resale Prices of Resale Private Apartments down in May

Resale Prices of resale private apartments down in May amid weak transaction volumes, flash estimates from the Singapore Real Estate Exchange (SRX) show.

SRX said its Singapore Property Index (SPI) for resale prices for non-landed private residences eased 0.5 per cent to 175.7 last month from April.

In April, it had edged up 0.1 per cent from March.

Developers upbeat about Executive Condominium market

Developers upbeat about Executive Condominium market segment given the provisional results for yesterday's tender for an executive condominium (EC) site in the Sengkang area, like that for a Woodlands EC site which closed earlier this month, led property consultants to conclude that.

This is despite measures introduced in January to rein in some of the exuberance in the sector and more recently, strong hints from the government that its housing subsidy of up to $30,000 for first-time buyers who pick up an EC unit from a developer, is in for a change. ECs are a public-private housing hybrid.

Metro Holding will launch Singapore residential project this year

Metro Holdings will launch its first Singapore residential project in nearly two decades later this year and plans to further expand its footprint in China, it said yesterday.

A site at Prince Charles Crescent, which Metro is jointly developing with Wing Tai and UE E&C, will go on the market by the end of the third quarter, chairman Winston Choo said at a results briefing.

Effects of Jan property curbs unclear: NUS

A paper from the National University of Singapore's Institute of Real Estate Studies (IRES) argues that it is unclear that the seventh instalment of cooling measures announced in January has had the desired impact of mitigating home price inflation.

It based this on an analysis of its Singapore Residential Price Index (SRPI) series, which tracks prices of completed non-landed private homes excluding executive condos.

Cooling measures for multiple properties starting to bite

The proportion of private housing loan applicants without any outstanding mortgages continued to rise in the first quarter of this year, according to latest figures from Credit Bureau (Singapore). This suggests that the January cooling package, with measures that discouraged multiple property ownership, is starting to bite, analysts say.

CBS data shows that of the 16,208 Singaporeans and permanent residents granted private home mortgages (including refinancing cases) in the first three months of 2013, 65 per cent did not have any outstanding home loans either for an HDB flat or private home.

Foreigners' share slips in private home deals

The proportion of private home transactions involving foreign buyers (including Singapore permanent residents, or PRs) slipped to 20.8 per cent in April, after recovering to 26.7 per cent in March.

In February, their share dived to 23.3 per cent following the seventh round of property cooling measures that took effect on Jan 12. In January, foreigners had accounted for 28 per cent of caveats lodged for private homes purchased in Singapore. Conversely, Singaporean buyers' share increased, from 72.5 per cent in March to 78.3 per cent in April - highest monthly share in a year.

At least five home launches coming up

Home hunters will have plenty to choose from with an array of upcoming launches planned across the island.

Those keen on the city centre can focus on Corals at Keppel Bay near HarbourFront MRT station and Liv on Sophia near Dhoby Ghaut MRT station. Corals, which has 366 units and is being developed by Keppel Land, is beside the Caribbean condominium.

Keppel Land pricing Corals units at $1800 - $3000 psf

Keppel Land is said to be pricing the initial 100 apartments at its Corals at Keppel Bay condo at between $1,800 psf and $3,000 psf.

The project - being developed on a site with 99-year leasehold tenure starting February 2007 - has a total of 366 units in 11 blocks between four and 10 storeys high.

Nearly 45 per cent of the units are one and two-bedders. Corals at Keppel Bay will have one, two, three and four-bedroom apartments sized between 600 sq ft and 3,600 sq ft in addition to eight penthouses (4,800 sq ft to 7,800 sq ft).

Five plots released for sale set to yield 2,700 homes

Five plots released for sale by the government yesterday could yield more than 2,700 homes. All are 99-year leasehold plots.

The sites were launched by the Urban Redevelopment Authority (URA) and the Housing and Development Board (HDB) as part of the Government Land Sales (GLS) programme for the first half of the year.

HDB priority scheme still drawing young families

HDB priority scheme are still drawing married couples with children below 16, capitalising on the Housing Board's recent initiative to help them own a home.

At the latest sales launch in March, first-timer households under the Parenthood Priority Scheme (PPS) applied to take up 32 per cent of the Build-To-Order (BTO) flats on offer, said an HDB spokesman yesterday.

Banks' property exposure makes up about 28% of their non-bank loans

Banks' property exposure makes up more than a quarter of their non-bank loans, it was revealed yesterday.

As of March 2013, property-related exposures accounted for 28 per cent of banks' total outstanding non-bank loans, Monetary Authority of Singapore Chairman Tharman Shanmugaratnam said in a written reply.

These exposures comprised housing loans at 17 per cent, and loans to property developers and construction companies, at 11 per cent. Of the housing loans granted, more than 70 per cent were for owner-occupation.

Non-landed private home owners profit from resales

Non-landed private home owners pocketed a total of $107 million in gross profit, from quick resales over the five quarters of Q1 2012 to Q1 2013.

Noting that the property market has "rebounded very strongly", high property prices - the overall private residential price index is now 60 per cent above the trough in 2009 - contributed largely to the profit in this sector, which includes private condominiums and apartments but excludes Housing and Development Board (HDB) executive condominiums.

In the current bull run, newly completed homes that were resold upon receipt of Temporary Occupation Permit (TOP) yielded good returns for purchasers.

For $2 million you can get a freehold landed home

Many home hunters may assume that landed freehold property - the rarest of land titles in Singapore - is way out of their reach.

Not necessarily so.

Fairly small freehold plots in Geylang and MacPherson have been selling for about the price of a suburban condominium.

Developer sales hit new highs on pent-up demand

Developer sales to moderate over the next few months after they hit a record 2,793 units in March, nearly four times the 712 units sold in February, analysts said.

The record figure was due to pent-up demand arising from developers holding back launches in February in the aftermath of January's cooling measures and also due to the Chinese New Year festive period.

Last month's primary market sales figure of 2,793 private homes (excluding executive condos) is the highest since the Urban Redevelopment Authority began releasing developers' monthly sales data in June 2007. The last time the figure came close to this was in July 2009, when developers moved 2,772 units.

Striking a new balance on flat prices

Striking a new balance between keeping new flats affordable yet fulfilling Singaporeans' desires for their home values to rise, is what the Government is trying to find, said Minister in the Prime Minister's Office, Grace Fu, yesterday.

For decades, new flat prices were pegged to resale ones, so that home owners' asset values would grow, she said.

"If we were selling Build-To-Order flats at a much lower price than resale flats, you would find people turning away from resale and then flat prices would be less able to rise," she explained to Jalan Kayu residents at a dialogue.

Radical idea: Remove income ceiling for new Housing Board flats

Not one to shy away from radical ideas for housing policy, National Development Minister Khaw Boon Wan floats another talking-point suggestion: Do away with the income ceiling for new Housing Board flats.

If he had his way, he would remove the income ceiling for a Build-To-Order (BTO) flat to give everyone a shot at living in them, Mr Khaw said in his wide-ranging interview.

Noting that HDB flats are as essential to the Singaporean way of life as national service and hawker food, he said: "I like the idea of every Singaporean, rich or poor, having a stint in HDB living... and not growing up your whole life in a bungalow, for example."

HDB should set the price of public housing: Khaw

HDB should set the price of public housing, rather than take its cue from the resale market. Given that Housing & Development Board (HDB) is the chief supplier of homes.

No longer will HDB let "the tail wag the dog" as it did for decades when it used a market-based approach to price its Build- To-Order (BTO) flats, said National Development Minister Khaw Boon Wan.

This resulted in soaring new flat prices as the resale market spiked 80 per cent over the last six years.

Novena businesses get a Healthy boost

Novena has transformed, from being more of a residential area with private housing and condominiums, into a medical hub in the past few years.

And with the private medical centres and malls that have sprouted up near the Tan Tock Seng Hospital (TTSH), which has been there since 1909, and Novena MRT station, business is booming.

But things are different on the other side of Thomson Road, where quiet nostalgia is being pushed out by the busy new.

London properties getting more attractive for Singapore Buyers: Survey

London properties near underground rail stations or universities are high on the wish lists of Singapore investors, according to a new survey.

But it also found that while location is important, investors here still want value for their money and are looking for yields of between 4.5 per cent and 5.5 per cent in the British capital.

No delays in BTO flats construction so far: Khaw

There have been no delays in BTO (Build-To-Order) flats construction timelines so far, with a further tightening of foreign labour, even as the Housing and Development Board (HDB) girds itself for the changes.

To that end, National Development Minister Khaw Boon Wan told Parliament yesterday that HDB will consider replacing contractors unable to cope with the tighter policies.

Grange Road properties still in the spotlight

Grange Road Properties like the Spring Grove condominium which could undergo a $1.045 billion collective sale has put the spotlight on other residential blocks in the same street.

The high-end sector has been down in the dumps for months, so the prospect of a big payday for Spring Grove owners has raised eyebrows among property experts.

Grange Road, like many other prime city neighbourhoods, has come under the pressures of the additional buyer's stamp duty and the risk of more cooling measures.

URA reviewing key index of private home prices

The study, which The Straits Times understands began last year, could involve revising the way the Urban Redevelopment Authority's (URA) quarterly index is computed. It is believed that no concrete decisions have yet been made to overhaul the methodology.

A key indicator of private home prices is being reviewed to ensure that it continues to accurately reflect values in Singapore.

The index was last modified in 2000, after changes in 1992.

Executive condominiums drawing more buyers

Executive condominiums (ECs) have grown more popular with buyers in recent months as a price gap with mass-market condos widens.

The median price of a suburban 99-year leasehold condo unit climbed to $1,073 per sq ft (psf) in the first three months of this year, said property consultancy CBRE.

EC units were 30.6 per cent cheaper - with a median price of $745 psf in the same period. The price gap between ECs and condos has widened significantly, from 18.4 per cent in the fourth quarter of 2010, when the EC segment was relaunched. Then, the median price for an EC flat was $748 psf, while the median price for a suburban condo unit was $917 psf.

First-time buyers support non-central condo prices

Amid the latest official flash estimate showing a slower quarter-on-quarter increase in private home prices in Q1 2013 than in Q4 last year, some property consultants believe that the latest cooling package in January will have a more lingering impact than the six preceding rounds.

However, prices in the widely watched Outside Central Region (OCR), home to suburban condos, are unlikely to fall this year given the strength of the first-time home-buyer pool, say some analysts.

Completed condo prices in Central down 3.7%

Prices of completed private apartments and condos fell in February - in contrast to January's rise, according to the latest flash estimate from the National University of Singapore. Analysts note this is in tandem with the sharp slowdown in resale transaction volumes for completed private homes following the Jan 12 cooling measures.

NUS' overall Singapore Residential Price Index (SRPI), which tracks prices of completed non-landed private homes, excluding executive condos, dipped 1.4 per cent month- on-month in February, after rising 0.8 per cent for January.

Balestier - Red-light area to red-hot property

Balestier is shrugging off its unsavoury red-light reputation and luring buyers with some new projects.

A key move in the area's makeover was the refurbishing of the Sun Yat Sun Memorial Hall and the integrated hotel-park complex comprising Zhongshan Mall, Zhongshan Park, and the Days and Ramada hotels.

Buyers, including expatriates on tight budgets forced out of the city centre, see Balestier as a handy substitute given its proximity to the centre of town but with prices below those for neighbouring Novena and Toa Payoh.

Brisk sales at Bartley Ridge on launch day

The Bartley Ridge condominium being built near the upcoming new Bidadari township development proved popular with buyers on launch day yesterday.

The Straits Times understands that more than 200 units were sold by 4pm.

About 900 people turned up with their agents at 11am to enter a ballot for flats at the 99-year leasehold project between Serangoon and Paya Lebar.

Ho Bee leases out luxury units to ride out property troughs

The lacklustre market for high-end homes has prompted developer Ho Bee Group to lease out units at its completed projects.

Ho Bee has developed several pricey projects in Sentosa Cove, including Seascape and Turquoise, but sales have been hit by several rounds of cooling measures and a slowing economy.

The firm has responded by leasing out apartments, with 70 per cent of its unsold units in Sentosa already tenanted. Ho Bee chairman Chua Thian Poh told The Straits Times: "We hope by the time the market (is all right again), we can put the apartments on the market for sale again.

Review of rules for housing estate agents being finalized

The Council for Estate Agencies (CEA) is finalising its review of regulations for agents with input from stakeholders, according to Senior Minister of State for National Development Tan Chuan-Jin.

Having experienced the new regulatory system since CEA was set up two-and-a-half years ago, he said, some industry members had raised issues and given feedback.

The agency itself has also gained experience through its handling of cases. Since its formation, CEA has received about 2,300 complaints, or an average of four a day.

HDB backs down on acquiring flat; legal challenge averted

A flat owner's bid to challenge the HDB's move to take back his five-room unit ended yesterday when the Housing Board told the High Court it will withdraw its notice of intent to acquire the flat.

Mr Chew Teck Fatt in return agreed not to proceed with his judicial review application. Justice Woo Bih Li, who made no order on the application, ruled that HDB pay Mr Chew's legal costs at the closed-door hearing.

Yesterday's turn of events staved off a potential landmark case on whether the decisions of the HDB and the office of the Minister of National Development can be the subject of judicial review.

Property investment in Singapore to rise

Singapore can expect a significant uptick in property investment activity this year, on the back of an expected 15-20 per cent increase in global investment activity, which is likely to surpass US$1 trillion for the first time since 2007.

Cooling measures in Hong Kong (double stamp duty) and China (more aggressive implementation of capital gains tax) will generate strong investor sentiment for Singapore and Tokyo. This is a turnaround from last year, a slow year of investment trading, which is defined in the report as deals of US$5 million and above; last year, Singapore saw virtually no price growth.

BTO flat buyers face longer wait amid labour and supply strains

Home buyers might have a longer wait for the keys to their Build-To-Order (BTO) flats. A combination of the construction industry labour crunch and a ramp-up in the Housing Board's building programme is stretching the completion period for new BTO projects by several months.

The private sector has already taken a hit as contractors push back deadlines and take longer to complete projects, as the industry struggles with fewer workers.

Potong Pasir set to get infusion of new life

Potong Pasir has long been something of a backwater but it is likely to spring to life in the next few years, with as many as 1,000 new homes set to be built there.

The new condominiums which will boost the supply of private homes in the neighbourhood are Nin Residence, 18 Woodsville, Sant Ritz, and the newest kid on the block - Sennett Residence.

Sennett Residence, which is closest to the Potong Pasir MRT station, has sold more than 70 per cent of its 332 apartments since its launch last week. The average price of units at the project was $1,450 per sq ft (psf).

Any fresh HDB curbs will affect new buyers only: Khaw Boon Wan

National Development Minister Khaw Boon Wan yesterday gave the assurance that any fresh curbs that would be introduced to make public housing more affordable - including disallowing the reselling of HDB flats on the open market - would apply only to new buyers, not existing flat owners.

The clarification came after earlier mention of such possible curbs last week unnerved the market and drove property stocks down, as many buyers of private homes are HDB upgraders. Keppel Land, Wing Tai Holdings and City Developments have fallen 2-3.8 per cent while CapitaLand has lost 4.8 per cent.

Two-room HDB flats may not appeal to many singles

Going by the numbers alone, the next launch of two-room Housing Board flats in July could be massively over-subscribed as a result of the recent move to allow singles to buy the units.

Eight in 10 working singles - some 150,000 Singaporeans - are now eligible to buy the smaller flats, which make up only a small fraction of the units launched each year.

But property watchers and singles themselves also say many of those eligible may give the flats a wide berth because of their small sizes and far-flung locations.

Property Agencies spooked by talk of changes to public housing system

HDB Owners Beware! Sell your houses in the resale market now when you still can! Ask me how! **

Alarm and uncertainty are permeating property agencies after National Development Minister Khaw Boon Wan floated three suggestions on how he might reboot the public housing system.

While some fear that the changes could cause redundancies in the industry, others worry that they might produce the opposite of the desired result.

On Sunday, Mr Khaw said reverting to the pre-1971 system of allowing flats to be sold back only to the Housing Board, with minimal capital gains, could be one way of bringing down the prices of new flats. He has pledged to reduce these by some 30 per cent.

Singles BTO scheme to benefit 8 in 10

More than 80 per cent of singles above the age of 35 are eligible to buy new Build-to-Order (BTO) flats, said National Development Minister Khaw Boon Wan, even as he revealed that the government might look at raising the income cap.

This follows Mr Khaw's announcement on Friday that first-timer singles earning $5,000 or less will be able to buy new two-room flats in non-mature estates directly from the Housing & Development Board (HDB) with effect from the July BTO exercise. The first BTO exercise for singles will be in Sengkang.

Big drop in HDB resale deals as new cooling measures bite

The number of Housing Board resale flats changing hands dropped drastically last month - a sign that the new cooling measures announced at the start of the year are beginning to kick in.

There were around 750 resale deals last month, the lowest activity in any month since the Singapore Real Estate Exchange (SRX) started tracking prices in 2007. This is less than half the 1,740 transactions in February last year.

Urban Vista in Tanah Merah, Bartley Ridge at Mount Vernon set for launch

With more launches expected later this month - including Urban Vista next to Tanah Merah MRT Station, Bartley Ridge and Kingsford.Hillview Peak - developers can be expected to post strong housing sales for March, analysts say.

Urban Vista in Tanah Merah could go on the market as early as next week, if developers World Class Land and Fragrance Group secure all regulatory approvals. Market watchers expect the 582-unit condo to be priced around $1,300-1,400 psf on average.

Expectations are also running high that Hong Leong Group could roll out Bartley Ridge - an 868-unit condo near Bartley MRT Station - by month-end. Analysts reckon that the average price could be around $1,300 psf.

Also targeted for release around month-end is a condo of about 500 units named Kingsford.Hillview Peak, next to The Hillier.

Developers sold 2,013 private homes (excluding executive condos) in January.

Source: Business Times –6 March 2013

Suburban apartment rents on the rise

Suburban apartments in the east and north-east part of the island were the star performers on the rental front in the fourth quarter last year.

Median monthly rents rose 2.9 per cent to $3.13 per sq ft (psf) in the three months to Dec 31.

Apartments in western areas such as Jurong managed rental increases of 2 per cent to $2.96 psf while suburbs in the north such as Woodlands saw a 1 per cent dip to $2.72 psf.

Home prices 'not at acceptable level yet'

Property prices in Singapore still have "some ways to go" before they reach an acceptable level relative to incomes, according to Finance Minister Tharman Shanmugaratnam.

"We're still in a wrong part of the cycle," he told Bloomberg TV in an interview on Thursday.

Mr Tharman, who is also Deputy Prime Minister, said the adjustment process would "happen through a combination of income improvement, as well as prices certainly not going up further".

Non-landed resale prices on the rise in Jan

Resale prices of completed private apartments and condos fared slightly better in January compared to December, according to the latest figures from the National University of Singapore.

The university's January flash estimate for the Singapore Residential Price Index (SRPI) suggested that prices of small units (up to 506 sq ft) islandwide was the star performer for the month, rising 2.6 per cent, reversing a dip of 0.7 per cent in December.

First Government Land Sales sites on tender since cooling measures

The first Government Land Sales (GLS) sites since the last round of property cooling measures have been put up for sale. And analysts are casting a keen eye on the tender.

The two 99-year leasehold residential sites at Kim Tian Road and Sengkang West Way were released yesterday by the Urban Redevelopment Authority (URA) and the Housing and Development Board (HDB) under the Confirmed List of the GLS programme for the first half of the year. They could yield about 1,100 homes.

HDB upgraders propel private home sales

Private residence purchases rose in 2012 primarily due to increased demand from public-housing dwellers, according to data from the Urban Redevelopment Authority.

17,590 of the 36,887 private residence transactions across all markets last year, or 48 per cent, involved buyers with HDB addresses. This marked a sharp increase of 17 per cent from the number of such transactions in 2011.

Punggol F&B site gets top bid of $11.4m

A plot of land at Punggol Point zoned for food and beverage (F&B) use has drawn a highest bid of $11.4 million, pipping eight other offers.

The offer, which works out to $3,789.6 per square metre of gross floor area (GFA), was submitted by Fragrance Group.

The next highest bidder was KT & T Resources at $8.6 million, or $2,865.1 per square metre of GFA.

Tax blow for high-end developers

The move to abolish the tax vacancy refund will put more pressure on individuals and companies, particularly those with high-end residential asset portfolios.

This, combined with progressive tax rates which will see the government raising property tax rates for high-end residential homes with the largest increases applying to investment properties, means that high-end developers could potentially be hit with a double whammy.

Higher home taxes unlikely to have big impact: Tharman

The increase in "wealth tax" for high-end homes in this year's Budget will not have significant impact on the property sector here, said Finance Minister Tharman Shanmugaratnam yesterday.

"I don't think (the higher taxes) will impact the property market much, but if it does, it's not such a bad thing - our property taxes are not very high.

"As a permanent state of affairs, we have to find some ways of getting tax revenue for the long term. It's better to tax wealth than to tax income," he said during a Budget forum broadcast live over Channel NewsAsia.

Minister Khaw unveils Woodlands regional hub plans

National Development Minister Khaw Boon Wan yesterday sketched out what Woodlands Regional Centre will be like.

With 100 hectares of space available for development, Woodlands Regional Centre is a key component in reshaping northern Singapore laid out in the recent Land Use plan.

It is expected to serve as a major commercial hub in the north and will take about 15-20 years to fully develop, Mr Khaw said during a community event at Woodlands Ring Road.

Property Development charges projected to rise

Property development charges (DC) rates - payable for enhancing the use of some sites or building bigger projects on them - expected to head upwards come March 1 for all major use groups. They cite an appreciation in land values over the past six months. In some cases, the hikes could be in double digits.

DC rates, revised on March 1 and Sept 1 each year, are stated according to use groups - such as landed residential, commercial and hotel - across 118 geographical sectors. The Ministry of National Development, in consultation with the Chief Valuer, revises DC rates based on current market values. In addition to being tracked in property circles as they can impact redevelopment sites with a sizeable DC component, DC rates are seen as the government's reading of land and property values.

San Centre put up for collective sale

San Centre, a 12-storey office building on Chin Swee Road, has been put up for collective sale by tender.

Standing on 28,719 sq ft of land, the building comprises 107 strata-titled office units and 80 carpark lots. It has a total gross floor area of 131,895 sq ft, resulting in a plot ratio of 4.59.

Offers are expected to come in at between $115 million and $125 million, or between $872 and $948 per sq ft.

Office rents in Singapore half that of Hong Kong's

Singapore's prime office rents are becoming more competitive.

Rents in the Central Business District (CBD) here last year came in at only half those in Hong Kong, which has the Asia-Pacific's highest rents at HK$104.47 per square foot (S$16.66 psf).

The rental rates in Singapore, ranked 14th in the Asia-Pacific, were $8.61 psf last year; the Republic was the 11th in 2011.

Roxy-Pacific Holdings set to launch residential projects in April

Roxy-pacific Holdings can expect to have a busy second quarter this year.

Its chief executive Teo Hong Lim said at a results briefing yesterday that showflats at three of its sites will be completed by next month and are set to be launched in April.

"We always sell the moment we are ready. If you go to the various sites now, the showflats are already rushing," he said.

More HDB resale flats sold at close to $1 million mark

A new record has been set for Housing Board resale flats, with a 1,750 sq ft executive maisonette in Bishan changing hands for $1.01 million last month. It broke the previous record of $1 million, set by a 1,615 sq ft executive apartment in Queenstown last year.

Fresh data from the Singapore Real Estate Exchange (SRX), which collects transaction information from larger property firms, also revealed that such sky-high prices are not one-offs.

Six prime strata office units at Samsung Hub up for sale

Six prime strata office units have been put up for sale on the 17th floor of Samsung Hub, a 999-year-leasehold, Grade A office block on Church Street, near Raffles Place.

The units have strata areas ranging from 883 sq ft to 3,595 sq ft, adding up to 13,132 sq ft. Their absolute price quantums range from $3 million to $12 million.

Their owner, Church Street Holdings, has put the units up for sale.

More home owners holding on to their HDB flats

More home owners are holding on to their HDB flats, reversing a trend that had been rising in the past four years.

According to data from the Housing Board yesterday, the percentage of home owners who sold their property within the year after it hit the five-year minimum occupation period (MOP) was 11.8 per cent last year.

It had been climbing steadily, from 4.3 per cent in 2008 to 18.3 per cent in 2011. These figures are for flats bought directly from the HDB.

OCBC Bank expects up to 30% fall in new home loans

OCBC Bank expects up to 30% fall in new home loans this year following recent property-cooling measures, but the impact will not be as great to its mortgage book, said Ching Wei Hong, the bank's chief operating officer.

Over the past few years, OCBC has grown its mortgages strongly and the drawdown in 2013 of home loans sold in 2010 and 2011 will cushion the fall in new sales, he said at OCBC's fourth-quarter 2012 results briefing yesterday.

Private home sales surged in rush to beat curbs

Private home sales surged 42.8 per cent in January from the month before, as developers dished out discounts and rebates to entice buyers in the wake of the seventh round of cooling measures.

Excluding executive condominiums (ECs), a total of 2,013 transactions were clocked in in January, up from 1,410 in December. This was the highest in four months, and exceeded the 1,799 units launched by developers.

Happy Chinese New Year 2013!!

HAPPY CHINESE NEW YEAR

to all readers

Updates will continue after the Holidays 

(10 - 12 Feb)

Have a great Holiday Season ahead!

HUAT AH!!

Call for review of zoning policy for industrial land

The way industrial land is zoned should be re- assessed to ensure small and medium-sized enterprises (SMEs) will be able to grow.

Responding to the Government's White Paper on Population, said there is a risk some firms will be left out in the cold by existing zoning categories. These were devised for a manufacturing sector that is rapidly evolving - and in turn, threatening to leave these zoning definitions looking outmoded.

Homing in on property price cuts

Developers who have been cutting prices following the new cooling measures risk angering buyers who bought at the earlier levels, say experts.
But developers claim that the recent discounting does not necessarily disadvantage early buyers.

Property experts say some buyers who have just shelled out on a new home will inevitably be unhappy when they see units at the same development suddenly going cheaper.

Major shift in planning strategy for housing and transport infrsstructure: Khaw

The Government has made a major shift in the way it provides housing and public transport infrastructure - it will now invest and build well ahead of demand.

Complaints about overcrowding, congestion and the long wait for a Housing Board flat prompted the switch, which National Development Minister Khaw Boon Wan described as "a major shift in planning and development strategy".

"We will do our best not to allow population to surge ahead of our infrastructure again," he told Parliament yesterday. "What we must do is to build infrastructure ahead of demand and where possible, we must also build in a buffer so that we can respond to unexpected developments and needs."

Housing Developers Bill gives more teeth to Controller of Housing

The Controller of Housing will be empowered to require developers to disclose any benefits they provide to home buyers - including reimbursements of stamp duty, discounts and vouchers - and to publish the information, under an amendment Bill introduced for first reading in Parliament yesterday.

The move will boost transparency on home prices, say industry players.

This is one of the changes contained in the Housing Developers (Control and Licensing) (Amendment) Bill - which will be tabled for its second reading at a future Parliament seating.

Next-gen HDB flats will be better designed: Khaw

Next-gen HDB flats will look like Punggol, National Development Minister Khaw Boon Wan said yesterday, but just how might this pan out?

Mr Khaw told Parliament that the next generation of public housing would be even more comfortable and better designed, holding up Housing and Development Board precincts at Punggol South as an example. Newer neighbourhoods, such as Punggol, were planned as smaller estates, HDB said in response to queries. Each Punggol precinct is made up of between 1,000 and 3,000 homes.

Indirect discounts for home buyers under review

Indirect discounts acting as sweeteners to home buyers by developers, to take the sting out of recent property cooling measures, is being reviewed by the Government.

It is concerned that sweeteners such as stamp duty rebates and furniture vouchers cause home prices to be artificially inflated. The Straits Times understands that the Urban Redevelopment Authority (URA) is looking into the practice and might act soon, as indirect discounts could make the cooling measures seem ineffective.

Latest Property Cooling measures won't hit banks heavily: Citi Research

The latest property cooling measures is unlikely to impact banks heavily, with mortgage and construction loan demand expected to remain resilient this year, though at a slower growth rate.

This is because data so far since the cooling measures were implemented suggests that demand for property is still strong, Citi Research said in a report yesterday.

It expects the mortgage growth rate to reach 9 per cent this year, compared with 16 per cent last year. It also predicts the growth rate for construction and non-bank financial institution loans to drop only slightly from over 17 per cent to about 15 per cent.

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Location of Sant Ritz
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Slow weekend for sales at showflats

Slow weekend for sales at showflats over the weekend as home-seekers adopted a wait-and-see approach in the wake of the new cooling measures.

A combination of Chinese New Year distractions and the possibility that some developers might start throwing in discounts meant sales are being put on hold.

Larger flats in mature estates draws most interest

Larger flats in mature estates have once again drawn the most interest in the latest Build-To-Order (BTO) exercise, a trend that is likely to continue along with the promise of rising resale values.

When the most recent exercise closed last night, there were 12 applicants for every five-room flat on offer in Ang Mo Kio and six for every four-room unit there. In Tampines, each four-room flat drew about seven bids.

Island south of Sentosa zoned for housing

An island south of Sentosa called Pulau Seringat, could let some residents call it home, in more than two decades later.

The island, reported as a potential site for a casino resort six years ago, has been zoned for residential use under the Ministry of National Development's (MND) Land Use Plan announced on Thursday.

The six southern islands - Kusu, St John's, the Sisters' Islands, Kias, Lazarus and Seringat - were reportedly set to be clustered into one of the two casino resorts, which were eventually sited at Marina Bay and Sentosa.

700,000 new homes by 2030: too many or too few?

700,000 new homes will be built in the central region, including the former Bukit Turf Club, Kallang Riverside, Bukit Brown, and the waterfront area around Keppel, as part of the government's long-term plan to roll out new housing units by 2030.

Of these, almost 200,000 homes, comprising 90,000 private units including executive condominiums, and 110,000 public homes, are expected to be completed by 2016. According to the Land Use Plan released yesterday, three new towns will be carved out: Bidadari which will have about 11,000 homes (both public and private housing), Tampines North which will have about 21,000 homes, and Tengah which will see about 55,000 homes.

Singapore offers a glimpse of its future

A couple of days after projecting that the population could rise to upto 6.9 million by 2030, the government yesterday revealed how they might be accommodated without Singapore feeling the squeeze. Reclamation alone will raise the land area by up to 5,200 hectares or 7.3 per cent - much of it in Tuas Port, Pulau Tekong and Jurong Island. Some of the existing 10,000 ha stock of reserve land will be tapped. Old industrial areas and some golf courses will be recycled to achieve higher land productivity. Infrastructure permitting, land use can be intensified.

Singapore's current population of about 5.3 million live on 71,400 ha of land. By 2030, some 76,600 ha could be available.

Expat housing here 2.7% pricier this year

Expat housing - in terms of relocating staff to Singapore has increased 2.7 per cent to average US$5,510 per month this year - third highest in Asia and eighth globally.

Taking currency fluctuation into account, however, the cost of renting an apartment in Singapore in US dollars has fallen slightly, said Lee Quane, regional director, ECA International, Asia.

"(In US dollars), we actually observe a small decrease in rental price. This contrasts strongly with a year ago when the US dollar was a lot weaker against the Singapore dollar," said Mr Quane, noting that in 2011, rents increased more than 15 per cent once converted into the greenback.

700,000 more homes needed by 2030 says Khaw

700,000 more homes are needed by 2030 and enough land has been set aside for this plan - more than half the 1.2 million households currently - to cater to a growing population.

This is part of a plan to provide good and affordable housing for Singaporeans detailed in the Population White Paper yesterday, as the population may reach 6.9 million by then.

"To support that kind of trajectory, we estimate that we will need another 700,000 new homes," said Minister for National Development Khaw Boon Wan at a press conference. The idea is to create a sufficient buffer, he said.

Office rents set for recovery: CCT

Office rents in Singapore are set to rebound from their first annual decline in three years as new supply shrinks and more businesses expand, according to the biggest office property trust in Asia outside of Japan.

Rents in the city are reaching a trough and demand may rise as the country positions itself as a regional business hub, said Lynette Leong, chief executive officer of CapitaCommercial Trust (CCT).

Supply for the next three years will be about 0.8 million square feet a year, down from 1.3 million sq ft over the past two decades, she said.

MAS on Asia govts' moves to cool property markets

Targeted interventions by governments to cool heated property markets across emerging Asia have achieved some degree of success, said Monetary Authority of Singapore (MAS) managing director Ravi Menon yesterday.

They allowed policymakers some freedom to experiment without relying too much on possibly counterproductive interest rate or exchange rate policies.

But these interventions - such as tightening loan-to-value ratios and stamp duties - need to be put in a more structured context, he said at Citibank's 10th annual Asia-Pacific Investor Conference.

Buyers' rights in building defect disputes

Knowing a buyers' rights is crucial, while recourse is available for homeowners following the purchase of a new home or a renovation stint, this is not to say that any and all defects can be claimed against the developer and/or renovation contractor.

Being able to differentiate between what is contractually binding and what is mere marketing speak is of great importance.

"Marketing speak should generally not be trusted or relied on to impose any legal obligations on the developer. The developer's legal obligations to the purchasers are contained in the sale-and-purchase agreement," said Rodyk & Davidson partner Ling Tien Wah.

Central Region condos saw biggest price fall in December

Prices of completed private apartments and condos generally fared worse in December over November, according to latest figures from the National University of Singapore.

The university's December flash estimate for the Singapore Residential Price Index (SRPI) series showed that the most marked price deterioration was in Central Region, which is defined as Districts 1-4 (including the financial district and Sentosa Cove) and the traditional prime residential districts of 9, 10 and 11. The sub-index for Central Region (excluding small units) fell 1.3 per cent month-on-month in December, reversing a 2.2 per cent gain in November.

Mixed-use developments draw homebuyers

Mixed-use developments integrating residential and retail components have become an attractive proposition for homebuyers, notably couples and young professionals, according to Far East Organization.

Chia Boon Kuah, chief operating officer for property sales, said this after a recent offering, the 99-year-leasehold The Hillier, sold its last residential units last weekend.

The homes at the 528-unit SOHO development at Hillview Avenue 2 commanded an average price of $1,474 per square foot and should be ready by 2016, after launching for sale in January last year.

Rentals keep up with rise in home prices

Rentals have kept pace with the rise in private home prices, but not across the board.

"Rental yields remain at 3.7 per cent islandwide," Maybank Kim Eng said in a report that compared 2011 and 2012 rentals at projects with more than 10 rental contracts. The minimal change in the figure indicates condominium rental rates have generally kept up with the increase in prices last year.

However, not all districts fared equally. The worst showings were in Newton and Sentosa, with yields compressing to just 2.2 per cent last year.

URA Q4 stats show signs of speculative buys

The Urban Redevelopment Authority's (URA) fourth-quarter real estate statistics show evidence of the investment and speculative activity that drove various segments of the Singapore property market last year and led to the latest cooling measures.

Home buyers in the private housing market, for instance, picked up far more homes from developers last year (22,197 units) than in the previous year (15,904 units). However, fewer homes changed hands in the resale market, which covers secondary market deals involving completed properties, last year (12,811 units) than in 2011 (14,046 units).

Cooling measures not a concern, says foreign developer of luxury condo

The latest property cooling measures may be targeting foreign buyers, but at least one property firm believes that the steps will not curb foreign appetite for Singapore properties.

China Sonangol Land plans to continue expanding in Singapore and is not too bothered by the latest cooling measures.

Mr Alain Fanaie, chief executive officer of the developer's parent company, China Sonangol Group, said he was "not really concerned" about the impact of the recent cooling measures.

He expects buying activity to return in about six months' time. The latest cooling measures rolled out on 12 Jan include raising the additional buyer's stamp duty (ABSD) for foreigners from 10 per cent to 15 per cent.

HDB resale prices seen remaining stable

Even as prices of resale flats hit new peaks in the fourth quarter of 2012, consultants say that prices should remain stable in the coming year, following the seventh round of cooling measures.

The Housing & Development Board's (HDB) Resale Price Index rose 2.5 per cent over the previous quarter to breach the 200-point price-index mark to hit 202.9 in the fourth quarter, resulting in a 6.6 per cent increase in resale flat prices for the whole of 2012.

According to HDB's data, Bukit Merah had the highest median resale price for a five-room flat at $765,000; Queenstown fetched the highest median price for a four-room flat at $710,000.

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