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

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.

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.

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.

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.

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.

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.

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.

Ho Bee gets ready to reap fruits of Metropolis project

Property developer Ho Bee Investment's efforts to build a strong base of recurring income will start to bear fruit later this year, with the completion of The Metropolis, its one million sq ft Grade A-specification office project directly linked to Buona Vista MRT Station on the Circle Line.

The development's 23-storey Tower 1 is expected to receive Temporary Occupation Permit around July, to be followed a couple of months later by the 21-storey Tower 2.

Govt unveils $2b package to reverse low birth rate

Being a parent in Singapore has never looked so attractive.

Married couples, with children under the age of 16, buying HDB flats for the first time will get priority allocation of new flats. Meanwhile, fathers will get paid paternity leave of one week in addition to the one-week leave they can co-share with their spouses.

These were some of the measures announced by the government yesterday as part of a bumper $2 billion Marriage and Parenthood package that it hopes will reverse the low birth rate here. As a side-effect, some see it helping to moderate prices in the HDB resale market and stabilising the HDB rental market.

Chinatown grows in commercial appeal

Parkroyal on Pickering hotel opened
on Wednesday. Next door is the recently
opened and revamped Chinatown Point

There is a buzz in Chinatown and not just because it is the festive season.

Property has become the new talk of the town in the past few months, particularly commercial real estate.

The heritage-filled district has just received a major boost with the opening on Wednesday of the 16-storey Parkroyal on Pickering hotel and launch of the revamped Chinatown Point mall.

Private home rentals seen remaining stable

Private property rentals are likely to remain stable as the latest property cooling measures take effect, analysts have said.

The pool of potential buyers may be shrunken by measures such as a greater minimum upfront cash required from second-time and subsequent home buyers, a higher additional buyer's stamp duty and tighter loan-to-value (LTV) limits on individuals with one or more outstanding housing loans.

Alexandra becoming hot spot for new homes

Better known for its industrial and office buildings, the sleepy neighbourhood of Alexandra has slowly been gaining favour among home buyers in recent years.

More private property projects - such as the Metropolitan, Alexis and Echelon - have been or will be built on sites previously occupied by public housing.

Flanked by neighbouring towns Tanglin and Queenstown, Alexandra is on the fringes of the District 10 prime residential area.

Kismis Lodge up for en bloc sale again

Kismis Lodge is being put up for collective sale for the second time.

Located off Toh Tuck Road, Kismis Lodge occupies a land area of 70,283 square feet (sq ft). The plot, comprising 64 walk-up apartments, was first put up for tender on July 16 last year.

In the July 2012 tender, the owners asked for between $90 million and $95 million, which translates to about $1,281 to $1,352 per square foot (psf).

HDB Resale Price Index Increases 2.5% over 3rd Quarter

Date issued : 02 Jan 2013

 HDB’s flash estimate of the 4th Quarter 2012 Resale Price Index (RPI) is 202.9, a 2.5% increase over 3rd Quarter 2012 (see Annexes A-1 (PDF 8KB) and A-2  (PDF 19KB)).

2The RPI provides information on the general price movements in the public residential market. Transacted prices of individual flats (by block and flat type) can be found on HDB’s website and detailed online enquiries can be made at http://services2.hdb.gov.sg/webapp/BB33RTIS/BB33PReslTrans.jsp

3The RPI for the full quarter and more detailed public housing data for 4th Quarter 2012 will be released on 25 January 2013.

Govt keeping close eye on Executive Condominiums

The National Development Ministry (MND) has warned that it is closely watching developments in the executive condominium (EC) segment and will consider further measures if needed.

It was responding to The Straits Times' queries on whether sky-high prices for some EC units at recent launches are of concern.

The latest focal point in the EC debate is a huge 4,349 sq ft "presidential suite" at 514-unit CityLife @ Tampines, which will be the first EC unit to eclipse the $2 million mark if sold at its launch today.

November prices of built condos up 1.9%

After lagging for most of this year, prices of completed private apartments and condos in Singapore's Central Region sprang to life in November, latest data from the National University of Singapore showed.

Its November flash estimate for the Singapore Residential Price Index (SRPI) series showed that the sub-index for the Central Region (excluding small units) rose 2.6 per cent from October.

This is double the 1.3 per cent gain over the same period posted by SRPI's sub-index for Non-Central Region (excluding small units).

Interest growing over $2m Executive Condominium unit

CityLife @ Tampines Site Plan

The $2 million-plus price tag does not seem to have dampened interest among potential buyers for a spacious executive condominium (EC) that hits the market tomorrow.

At least 12 people have expressed interest in the "presidential suite" at CityLife @ Tampines.

The prized unit comes with 4,349 sq ft of space, including a roof terrace of about 1,600 sq ft, and can be yours for an EC price record of $2.05 million.

Other large apartments at the 514-unit project also garnered healthy interest yesterday, the second day of the showflat preview. Bookings open tomorrow, with average prices of $770 per sq ft (psf).

Eight private estates to get upgrading

More than 7,000 households are set to benefit from a $29 million facelift under the government's Estate Upgrading Programme (EUP). The properties, spread across eight private estates, will see the money spent on the upgrading of parks, playgrounds and widening of footpaths.

The Ministry of National Development (MND) announced yesterday that Goldhill, Mayflower Gardens and Yio Chu Kang Gardens, Cashew and Hazel Park Terrace, Greenleaf, Bartley Neighbourhood, Carmichael, Haig Road and Limau estates have been selected to benefit from the eighth EUP.

These older private estates are expected to benefit from the improved facilities when work will be completed in three to four years.