Blog

Singapore New Launch And Condo

Come and find out about new launch and condo news in Singapore! Subscribe to our blog now for more latest property information.

Address:
Nearest MRT:
Tenure:
Kaeden Ong

Demand for homes in core central region may pick up

Posted by Kaeden Ong on 5th February 2014 in Blog

Demand for homes in core central region may pick up Some market watchers said demand for homes in the coreMore »

Demand for homes in core central region may pick up

Some market watchers said demand for homes in the core central region could pick up as early as the second half of this year, as prices continue to moderate.

Property consultancy Savills added that some unsold units in the city were even transacted at below valuation.

According to recent marketing materials, Hijauan on Cavenagh is offering units at prices from as low as S$1,701 per square foot.

Located near Orchard Road, a 915 square foot two-bedroom unit is available for just under S$1.9 million.

Property agents said the 41-unit Hijauan project is about 75 percent sold.

It is not the only project selling below valuation.

Alan Cheong, research head at Savills Singapore, said: “We’ve heard of anecdotal evidence where pricing has been below valuations. In the Newton area for example, prices six months ago was S$1,800 per square foot.

“Today, you can get it for S$1,700 to S$1,600 per square foot for a 1,700 to 1,800 square-foot apartment.

“For core central region, it is probably going to be quite the norm — (as) we expect more aggressive marketing strategies by developers.”

In particular, analysts said the larger units will be a tough sell as cooling measures and loan curbs have affected the buyer’s ability to afford them.

Savills said the pricing sweet spot for city homes now is probably between S$1.5 million and S$1.7 million.

Home prices in the core central region fell 1.9 percent in 2013 and some analysts expect to see another 5 percent drop this year. They said that could potentially trigger a return of buying interest for core central region homes.

Chris Koh, director of Chris International, said: “By middle of this year, we would have looked at four quarters of correction. Once the prices adjust by 5 to 10 percent, it would look significant.

“And the moment it looks significant, my gut feel is the buyers and investors who have been waiting on the sidelines will then pour back into the market again.”

Market watchers said demand for city homes could also grow if prices of units in the city fringe, or rest of central region, continue to recover.

Home prices in the city fringe rose 0.4 percent in the fourth quarter of last year, compared to the 2.1 percent decline for city homes.

Credits Channel News Asia

Tagged in:
1 Star2 Stars3 Stars4 Stars5 Stars (2 votes, average: 5.00 out of 5)
Loading...Loading...
Address:
Nearest MRT:
Tenure:
Kaeden Ong

New launches draw strong crowds

Posted by Kaeden Ong on 4th February 2014 in Blog

There has been healthy interest from buyers for the first two major property launches in 2014. Launched on Sunday, TheMore »

There has been healthy interest from buyers for the first two major property launches in 2014.

Launched on Sunday, The Panorama (pictured) sold 50 percent of the 120 units released for sale.

Most of the apartments sold were two- and three-bedrooms with sizes ranging from 678 sq ft to 1,130 sq ft.

Prices at the 698-unit condominium along Ang Mo Kio Avenue 2 range from S$650,000 to almost S$2.4 million.

According to its developer Wheelock Properties, the buyers were mainly professionals with young families who were owner-occupiers. The majority of them reside in the Ang Mo Kio, Bishan and Thomson areas.

Ms Tan Bee Kim, Senior Executive Director of Wheelock Properties said she was encouraged by the market response.

“Although the dampening effects on the Singapore property market brought about by the government’s cooling measures are still being felt, the recent World Bank economic forecasts augur well for Singapore. The World Bank raised its forecast for global growth for the first time in three years from 2.4 percent for 2013 to 3.2 percent this year and 3.4 percent next year. Hopefully we may be looking at a more upbeat market sentiment and sustainable recovery,” she added.

Set for completion in 2019, The Panorama comprises two 20-storey blocks, four 17-storey blocks, two levels of basement car parks and a clubhouse.

The project is a five-minute walk from the upcoming Mayflower MRT station on the Thomson Line which is slated to be operational in 2020.

Meanwhile, over at The Hillford in Upper Bukit Timah which has been marketed as Singapore’s first residential project targeted at retirees, there was overwhelming demand with all 281 units sold just hours after its launch last Friday.

Although many of those who turned up were older home seekers, there were also plenty of younger buyers drawn to its affordable prices averaging S$1,100 psf.

Developed by World Class Land, the project offers a range of amenities including 24-hour concierge service, full-time resort manager, clinics and restaurants.

Credits PropertyGuru

Tagged in:
1 Star2 Stars3 Stars4 Stars5 Stars (2 votes, average: 5.00 out of 5)
Loading...Loading...
Address:
Nearest MRT:
Tenure:
Kaeden Ong

Property curbs ‘likely to remain for a while yet’

Posted by Kaeden Ong on 29th January 2014 in Blog

Property curbs ‘likely to remain for a while yet’ PROPERTY prices and sales volumes have been in slow decline forMore »

Property curbs ‘likely to remain for a while yet’

PROPERTY prices and sales volumes have been in slow decline for six months but cooling measures, especially loan curbs, will be here for a while yet, experts say.

Property curbs 'likely to remain for a while yet'

Hope that the measures would be scaled down in next month’s Budget look to be dashed given that household debt is still high and prices remain elevated in some segments, they note.

A slight easing of stamp duties might be the only concession although some observers believe selected property cooling measures should be rolled back.

Bank of America Merrill Lynch economist Chua Hak Bin noted: “Transactions have collapsed and property developers are stuck. Smaller developers of higher-end homes may even go bust if some of these measures are prolonged.

“Reducing buyer stamp duties or exempting duties for prices above certain thresholds, say $1 million, may help ease the pressure.”

Sales of new private homes plunged last month with only 259 units shifted in December – the lowest level since January 2009. Private home prices have fallen in tandem – down 0.9 per cent in the last three months of last year, while the HDB resale price index slipped by 0.6 per cent.

But economists believe the correction has still some way to go before they have adverse effects on the broader economy.

“Previous comments from various ministers have indicated that the Government may not be averse to seeing prices fall,” said Barclays economist Joey Chew.

“The question is by how much. We think a 5 per cent correction can be easily absorbed by the developers and the market and will not cause undue concern.”

Some experts feel there could be some steps to ease the pain of property owners going through the market correction without interrupting the cooling process.

Chesterton Singapore managing director Donald Han suggests replacing the seller’s stamp duty (SSD) with a capital gains tax.

The SSD was introduced in February 2010 to curb property flipping by imposing a tax on a home owner who sells up within four years of purchasing, whether a profit is made or not.

Replacing the SSD with a capital gains tax – on profits made from a sale of assets – would be more equitable, Mr Han said, and “can send the appropriate signal out to foreign investors that they are welcome but Singapore wants a stable, long-term and productive investment market”.

Mr Colin Tan, Suntec Real Estate Consultants’ head of research and consultancy, added: “My wish for the Budget is maybe for the authorities to grant genuine upgraders a grace period – without the administrative hassle to pay first and claim back later – with regard to ABSD (additional buyer’s stamp duty).”

But experts say it is unlikely, and maybe even dangerous, for the Government to make any big moves towards repealing cooling measures now, given that they have only just started showing their effects.

Standard Chartered economist Edward Lee said: “While I think it is in no one’s interest to see a sharp property correction, it is also dangerous to foster a mindset that the Government is supportive of price increases and very sensitive to price correction.”

Furthermore, he noted, household debt remains high, with mortgage growth rates still outstripping nominal economic growth.

KPMG Singapore principal tax consultant Leung Yew Kwong said that barring any “unsettling” market corrections over the next two years, there is unlikely to be a major unravelling of the cooling measures.

“Home prices are still a sensitive topic and will continue to remain so in the immediate future, with the price of property still considered high by many Singaporeans despite showing signs of stabilising.”

Credits STproperty

Tagged in:
1 Star2 Stars3 Stars4 Stars5 Stars (2 votes, average: 5.00 out of 5)
Loading...Loading...
Address:
Nearest MRT:
Tenure:
Kaeden Ong

Speculators exiting private home market

Posted by Kaeden Ong on 27th January 2014 in Blog

Speculators exiting private home market Sub-sales down to lowest levels in eight years due to cooling measures SPECULATORS looking toMore »

Speculators exiting private home market

Sub-sales down to lowest levels in eight years due to cooling measures

14101097e

SPECULATORS looking to make a quick buck from private homes have all but disappeared, spooked by the recent series of property cooling measures.

Sub-sale transactions fell to 147 units in the fourth quarter last year, the lowest level in eight years, data out last Friday from the Urban Redevelopment Authority (URA) showed.

The last time such dismal figures were logged was in the first quarter of 2006, when speculators flipped just 127 units.

Sub-sales are when buyers resell a unit before it is completed. They are taken as measure of the level of property speculation in the market.

Property analysts said the chief reason for the drop in speculative demand is the imposition of tough sellers’ stamp duties in January 2011.

Home owners face a duty of up to 16 per cent if they re-sell their property within four years.

Mr Ong Teck Hui, national director of research and consultancy at Jones Lang LaSalle, said investors had to take a longer-term view on their asset if they wished to avoid the duty.

He said: “The number of speculators would not be increasing with the duty in place – this group would have shrunk over the years as they gradually off-loaded their properties to take profit.”

Just 1,072 sub-sale transactions were recorded for the whole of last year, making up 4.7 per cent of all sales. It was the lowest level since 2005.

Since the revised duty was put in place in 2011, the number of sub-sales has been on a downward trend.

This is in stark contrast to the heady days of 2007, when sub-sales were rampant and speculators would queue overnight to buy a property and sell it almost within days, said SLP International research director Nicholas Mak.

The resale market has also floundered in the past year, with just 6,608 transactions or 29.2 per cent of total sales, as buyers and sellers take account of tighter loan restrictions and a looming supply glut.

About 66,100 private homes are expected to come on stream within the next three years.

Mr Mak said: “There is growing realisation among buyers that many homes will be reaching completion within the next three years but with falling rentals and tougher loan requirements, investors may not want to get in.”

He added that the resale market has not been very active, reeling from a lack of demand due to a slower inflow of foreigners and fewer collective sales – two groups of home buyers who would need to look for completed homes.

A mismatch of price expectations between sellers and buyers is also making it harder for resale transactions to go through, consultants said.

Said Mr Ong: “When the market is upbeat, sellers of resale units tend to be optimistic in their asking prices and that has also affected the pace of resale transactions.”

Meanwhile, buyers have become more sensitive about how much they can fork out after the total debt servicing ratio (TDSR) was implemented in June last year.

Instead of opting for second-hand properties, they are choosing new launches where some developers offer more palatable prices.

Orange Tee head of research and consultancy Christine Li said: “Buyers are unable to take bigger loans because of the TDSR so they would turn to developers who can offer fairly attractive rates by forgoing some margins.”

Credits STProperty

Tagged in:
1 Star2 Stars3 Stars4 Stars5 Stars (4 votes, average: 5.00 out of 5)
Loading...Loading...
Address:
Nearest MRT:
Tenure:
Kaeden Ong

Developers likely to hold back on new project launches, say analysts

Posted by Kaeden Ong on 13th January 2014 in Blog

SINGAPORE: With home prices in the city centre softening, analysts say many developers are likely to hold back on launchingMore »

SINGAPORE: With home prices in the city centre softening, analysts say many developers are likely to hold back on launching new projects for the rest of the year.

Real estate consultancy CBRE estimates that there are some 2,000 units of private homes yet to be launched for sale in the core central region — the highest compared to the city fringe and the suburban areas.

Upcoming project DUO Residences in Bugis will offer the largest number of homes in the city at 660 units.

Channel NewsAsia understands that some prospective buyers, including high net worth individuals, have been invited to a “soft launch” on November 2.

And the project will be officially launched for sale in mid-November.

According to marketing materials, indicative prices for units at DUO range between S$1,800 and S$2,000 per square foot (psf) on average.

Apart from DUO, analysts are not expecting many new launches in the city in the next couple of months.

Other projects in the pipeline include Clermont Residence at Tanjong Pagar Centre and South Beach Residences.

Unlike other condominiums where launches are made even before the foundation has been built, South Beach Residences is fast coming up.

But its developers are not rushing to launch the 190-unit integrated development, saying they are waiting for the right market conditions.

While prices of city homes have weakened in recent months, analysts do not expect developers to slash prices.

New units in the core central region are still projected to cost between S$2,000 and S$3,000 psf.

Meanwhile, the robust demand for mass market homes have pushed up their prices.

In the third quarter, Savills Singapore says the average price of a home in the city is S$1,962 psf, compared to S$1,308 psf in the suburbs.

Eric Tan, chief executive officer of GSK Global, said: “The gap will continue to close for another six to nine months before the suburb homes — we will start to see the suburb home prices fall. The prices of suburb condo is getting higher and higher, and to me I’m very confident that those who bought suburban homes, they are not going to make money.”

Desmond Sim, associate director at CBRE, said: “If you look at it on a psf basis, the premiums have definitely narrowed but the biggest differentiator is the quantum. So city homes, a lot of them are of a good sized house. So in terms of their quantum, they are a bigger barrier for people to come into.”

Analysts say the cooling measures and loans curbs introduced this year will continue to weigh on demand for expensive homes.

Credits ChannelNewsAsia

Tagged in:
1 Star2 Stars3 Stars4 Stars5 Stars (4 votes, average: 5.00 out of 5)
Loading...Loading...