High-end Properties moving more units on Mainland

Luxury residential properties seem to be enjoying a bit of the respite from the sting which property cooling measures have brought to the sector. In prime district 10, Leedon Residence has moved 24 units within the last 6 weeks with a total net worth of $110 million. Developed by GuocoLand, the property received its temporary occupation period (TOP) in June. Their other district-1o property, Goodwood Residences also saw some sales, with only 12 units left unsold. Over at District 1, Marina Bay Suites moved 10 units in Q2 alone.  Both Goodwood Residence and Marina Bay Suites were ready for occupation in June 2013.

Leedon Residence on Holland Road.

Leedon Residence on Holland Road.

Property analysts are according this rise in sales to how ultra-high-net-worth buyers are often more comfortable purchasing physically present products, and not off-plan. Current prices may have reached a stagnant as developers with properties still in construction may not be willing to provide hefty discounts in order to move units as yet, especially those with deeper pockets. They are likely to hold on to their existing units in view of long-term gains.

On Sentosa however, sales were a little slower, with more action in the nearby district 4. Corals at Keppel Bay sold 8 units and Caribbean at Keppel Bay moved 10 units in the second quarter. Considering they come with assets of being close to the Central Business District (CBD) and having a seafront view, the current selling prices of 4 to 5 per cent lower are probably worth every penny.

Resale property prices slide further

The private property market seems to be going the way property analysts have predicted in the beginning of the year. Over the last 6 months, prices of completed private property have fallen 1.9%. The steepest fall was in the beginning of 2014, at 3.7%. Though the decline has continued, the fall has been lighter in the quarters following.

Maysprings condoSince the implementation of the Total Debt Servicing Ratio (TDSR) in June of 2013, property prices have fallen at varying speeds over the past 2 years. A total of 42,606 new homes are expected to be ready for occupation within these couple of years and up to 96 per cent of the land sold this year are expected for future non-landed homes. It may become a tussle for prices and buyers, between new and resale properties.

As rental demand also continues to dip, prospects for the property market seems to have dimmed slightly, though select properties will still hold potential. Property experts have explained that the dip in prices in the resale market may have been due to the ability of individual to be flexible with prices. New properties which are being sold by developers have the means to stick to their guns in terms of pricing. The scale for rental supply and demand is likely to continue leaning towards the former.

Weekend in the East – Pasir Ris

It’s almost the weekend. And when we think weekend, the mind often goes straight to the eastern districts with its breezy, relaxed atmosphere and sunny skies. Besides the popular East Coast and Marine Parade hot spots, there are also lots to see and do in the country’s edge of Pasir Ris.

The PaletteIn Malay, Pasir Ris translates to “White Sand” and this coastal town has long be lauded for its tranquility, almost like a secret tucked away in the quietest part of the island. But not to be mistaken for exclusion from the usual conveniences of city living, it is well-served by trains and buses and has a buzzing town centre and a few malls to boot. Add the revamped Lorong Halus Wetland, Sungei Tampines River and Sungei Api Api, Pasir Ris Park and it’s akin to having our own “The Hamptons” of our own. A countryside in an island city.

Private condominium apartments in this area include Seastrand, NV Residences, Coco Palms and The Palette. One of the latest executive condominium (EC) offerings, Sea Horizon, is also in its midst. With the infusion, of these private residential properties in the area, it is not surprising that HDB flats in the area and the surrounding district of Tampines are also gaining popularity with buyers.

 

EC’s potential attracts buyers

Most who qualify for an executive condominium (EC) are likely to apply for one when weighing the potential of an EC against a private condominium. And that perhaps fulfils the purpose of these public-private housing hybrids, which is to help citizens make a progressive step into the private property market. EC’s are public housing which become private housing after 10 years. This means buyers are able to enjoy the perks of a private residential apartment including the facilities and the eventual potential appreciation in value in the open market as a private property. There is an income cap however, at $12,000 in gross household income and the minimum occupation period (MOP) of 5 years still apply as they are essentially public housing provided by the Housing Board (HDB) on the onset.

The Vales

Their popularity has risen immensely, reflected in the often-sold-out launches. At the Forestville and Sea Horizon ECs by MCC Land and Hao Yuan Investments, up to 95 per cent of their units have been sold. Both properties are expected to receive their temporary occupation permits (TOP) by 2016.

The 653-unit Forestville executive condominium is situated in Woodlands, an upcoming regional business hub, and near the future Woodlands South MRT station. Schools in this area include the Singapore American School, Innova Junior College, Singapore Sports School and Republic Polytechnic. Across the island in Pasir Ris, just two bus stops away from Pasir Ris Central, the 495-unit Sea Horizon prides itself in being the only EC with a sea view.

It will be an exciting market to watch as there are quite a few new ECs being launched in this half of the year, including Westwood Residences, The Brownstone, Sol Acres and The Vales.

The many pluses of a Brownstone

Say Brownstone and most would think of the infamous (and also notoriously expensive) townhouses in America built in the 1800s.

But here in Singapore, a similarly named The Brownstone is a executive condominium (EC) in Canberra Drive. Response however was just as keen as it would have been if it were a brownstone townhouse in New York. Part of the attraction came from its proximity to the upcoming Canberra MRT station. Both the EC and the MRT station are planned for a 2019 completion date. The Brownstone will also feature a unique brown, sandstone-textured facade and jetty-like balconies.

The Brownstone ECThe 638-unit EC received 300 applications over the weekend of its launch and considering how the competition in the EC market has heated up since there are quite a few currently available for application in the market. Prices are expected to start at $599,000 for a 732 sq ft two-bedder to $1.3 million for a 1,711 sq ft penthouse. Other ECs launched recently include Westwood Residences on Westwood Avenue and The Vales at Anchorvale Crescent.

Buyers are often partial to executive condominiums as they are a hybrid between public and private housing, which means government grants can be applied to the initial purchases of these units, and after 10 years, they will become private properties. More often than not, their values would have appreciated by a considerable amount by then.

High turnout at High Park Residences Launch

The sales gallery for High Park Residences was filled to the brim as 8,000 people came to view and 500 deposits were made for the 1,390 units. The previous prediction for the number of units to be developed in the site near Thanggam LRT station and the new Seletar Mall was only 1,130 but the developers, CEL Development, Heeton Homes and Kim Seng Heng Realty, had planned for a higher number of smaller units in order to churn out a larger number of new homes.

HIghpark ResidencesMost of the sales were for the two-bedders which are sized between 53 to 68 sq m (up to or smaller than the size of an older resale three-room HDB flat) and priced from $398, 000 for the record-setting smallest 36 sq m studio apartment in District 28. There were also three-bedders available at 81 to 92 sq m, and various other unit configurations such as four-, five-bedroom apartments, 10 semi-detached houses, 4 bungalows and 9 commercial units. But at the weekend launch, affordability was the key word, with most units under $400,000 being snapped up quickly.

Though the quickest sales were of these smaller units, property analysts are hopeful that the area will be developed for families in the future and as it will be some time before the next private residential property enters the market in this area, High Park Residences may hold its place in terms of demand and pricing for some time.

Sentosa Cove units fetch high prices once more

There was a time when luxury properties on Sentosa fetched luxurious prices. That time was more than 2 years ago. The property cooling measures have hit home since their implementation over the past couple of years however, and sales number sand prices have dropped with the imposed additional stamp duties and loan restrictions.

TheOceanfrontBut there may be light yet in the horizon. Recent sales of 2 units at The Oceanfront condominium apartments in Sentosa Cove luxury enclave have soared above the $2, 000 psf range despite their lack of a waterfront view and their low-floor  Previous sales, which were few and far in between, have gone as low as $1, 190 psf. That was a $463 psf loss on a $1, 653 psf second-storey apartment at The Coast. Considering the fact that most mass-market homes on the mainland are already going at the $1,000 psf range, prices have declined substantially since its peak in 2008.

Will investors with deep pockets continue to pick up deals on the island, especially as prices dip? And will those who have already purchase units on this exclusive waterfront-living enclave continue to hold off on selling in wait of prices rising in the future? How much more will prices be able to rise and will the competition with units on the mainland only become fiercer?

Fewer new private property launches

Despite lower sales of new private home last month, the percentage of sales based on the number of units launched, was positive.

The lower sales figure was mainly due to the lack of new property launches. But the take-up rate of the 499 units launched was at a happy 128 per cent in May. The take-up rate was only 84 per cent in May this year, compared to 82 per cent in April 2014. Considering the 21 per cent fall in sales in the first 5 months of this year, the leap last month is a promising sign.

HighparkResidencesLeading the sales were suburban launches at Botanique at Bartley, Northpark Residences in Yishun and The Panorama in Ang Mo Kio. Median selling prices were $1,232 psf at The Panorama, $1,292 psf at Botanique at Bartley and $1,397 psf at Northpark Residences. Competitive pricing may have lowered prices on some newer launches and this could have attracted buyers back into the market. There were even reports of private funds or group of investors who have picked up 16 units at 111 Emerald Hill.

In the months ahead, the number of new property launches will remain low, which may in turn affect figures. But instead of looking at across-the-board figures, sussing out potential deals in previous launches which are re-launchning new units could be the way to get ahead of the pack. Upcoming launches to look forward to are Gramercy Park in Grange Road and High Park Residences in Fernvale.