Former HUDC Estate in Potong Pasir soon up for collective sale

Following the successful collective sale of the former HUDC estate, Shunfuville, earlier this year, yet another such property could be coming into the market soon.

Raintree Gardens Potong PasirPhoto credit: Google Maps

In May this year, Shunfuville was sold for $638 million. Now, the 175-unit Raintree Gardens on Potong Pasir Avenue 1 which was privatised in July 2014, could also be hoping for similar results as they finally attain their minimum consent level. The 201,405 sq ft site just next to the Kallang River is projected to have an asking price of $430 million, which could mean a potential $1.8 million for each home-owner in the estate. Developers may be drawn to its proximity to the Potong Pasir MRT station and the future Bidadari HDB estate, which could mean a bustling area that could potentially attract new businesses and the development of other amenities as well.

poiz-img-001The number of new private condominiums in the Potong Pasir area have been growing steadily, and most have sold well as consumers respond well to the exclusivity and connectivity of the district. One of the most recent launches in the area was that of Poiz Residences. With the St. Andrew’s Village nearby, the site will also be near primary and secondary schools as well as a junior college. It will be an en bloc sale effort worth watching as developers weigh in. One of the considerations developers may have is the length of time between getting the site and being able to start redeveloping it as the procedure in between could take at least 6 months.

 

More resale private properties sold in July

No movement may be good movement – as far as the current property market situation goes. Property analysts say any fluctuations in property prices or sales volume may be minimal for now. And as long as there are no drastic dips, the market is in good stead. Recovery may take awhile and it will probably be slow, a sudden rebound unlikely.

Hills TwoONeThere was a rise in property prices in Q2, though followed by a slight fall in July. Sales volume of resale private non-landed properties however has increased 31% and 770 units were sold last month, compared to the 586 in a year-on-year comparison. Buyers are back in action and are picking up deals which seem to be aplenty as more private properties enter the market, heating up competition in and between new and resale segments. The number of deals closed have been rising steadily since May with a 35.5 per cent increase followed by a 27.4 per cent increase in June.

For the rest of 2016, the resale market may see some heightened activity as stabilising prices prompt buyers who have waited long enough in the sidelines to jump back into the fold. The number of new launches this year is also considerably fewer than the last, and as buyers come to realise that prices are unlikely to fall further anytime soon, more may see the diminishing choices in the primary market as a sign to reconsider possibilities in the resale market.

 

 

Strata strategy – Landed homes with benefit

Though owning your own piece of land may seem the ultimate goal in terms of local property, but the maintenance fees, property taxes and other extras it comes with are often mentioned and considered much lesser than they should be.

Eight Riversuites condominium in Whampoa East.

Eight Riversuites condominium in Whampoa East.

And it is this market gap which cluster housing and strata-landed homes fill so well. These landed properties, though mostly leasehold, come with condominium facilities and amenities, not to mention the security of a gated community. In fact, so residents of me cluster housing developments even manage to foster long and meaningful relationships with one another.

Eight Riversuites is one of the latest additions to the sector and they have 19 three-storey terrace strata landed houses, each with their own roof terraces and bdedicated asement parking spaces. Some units even come with jacuzzis. Some other popular landed strata homes include those in Thomson Grand, Whitley Residences and Belgravia Villas

Strategically situated near Boon Keng MRT station in the Bendemeer and Whampoa districts, it is in a hip up-and-coming city-fringe area and is but just 3 MRT stops away from the town centre. There are a number of schools in its vinicity and value of properties around it have risen over the past few years. As MRT stations reach completion, values of properties in their vicinity will no doubt increase as well. Prices of units currently start at $850psf. 

 

Signs of property market bottoming out?  

Though the vacancy rates of private residential properties are currently 1.4 percent higher in Q2 and at a 16-year record high, and property prices 9.4 percent lower than the 2013 peak, property analysts remain positive about the outlook as these could be signs that the property market is reaching the bottom of its cycle.

7478d455d05b4f2aa26fd1e5a8ce7bd2There were 30,310 vacant private homes in the second quarter, that is 5,391 units more than in Q1. As the number of completed properties rise, with almost 11,400 new units entering the market in the first half of 2016, the rates are seemingly modest. Property prices have also been stabilizing, and as long as interest rates remain at their current level, most households will be likely to be able to hold on to their properties over the down season.

More property buyers are now making home purchases for their own use instead of pure investment purposes and many are taking the opportunity to seal deals during this quieter time. In a year-on-year comparison, sales volume has risen 11 per cent and the luxury property market in particular is enjoying a spike in buying interest as prices have fallen sufficiently, luring buyers back into the high-end property market.

 

 

 

Luxury property market heats up 

After the market lull in the past couple of years, buyers are once again picking off choice luxury units in the prime residential property sector.

ArdmoreIIIPrices in this segment have gradually become more competitive over the last year or so and sales volume has increased, partly due to this change. For example, in the first half of 2016 alone, 131 apartments priced above $5 million were sold. Only 166 similar units were sold in the entire 2015.

Investors are favoring Singapore properties they match up well against those in other global cities such as New York and London. Property analysts say most investors are still Singaporeans, though  Malaysians, Indonesians and Chinese continue to feature strongly in the investor pool as they see the value of properties here and are not deterred by the currency fluctuations.

An upcoming luxury development is the 99-year leasehold Victoria Park Villas by CapitaLand which consists of 3 bungalows and 106 semi-detached houses starting from $4.3million. In better times, these houses could have cost up to $6 million. Other high-end units currently in the market include those at Gramercy Park, OUE Twin Peaks and Ardmore Three.

The En-bloc secret

Could you possibly be sitting on an En-bloc golden egg and not know it? Or before you make an investment, do you know if your purchase could earn you a tidy sum in the  future?

Laguna Park

Laguna Park

En-bloc sales of older properties can often be the windfall property owners are looking for and having an idea of the process could be the start to planning for the future. Not every development will have the same potential and often the wait could be longer than the photos yields, but there is money to be made this way.

The first step involves securing 20% of the total share value of 25% or the total number of owners. But should the first bid at a collective sale fail,  50% of the previously mentioned total share value or total number of owners will be required to requisition a extraordinary general meeting (EOGM) within 2 years. Then there is the election of the collective sale committee (CSC). They will then draft the proposed a reserve price as part of the collective sales agreement (CSA). Though a high reserve price may increase the probability of securing sufficient signatures go the sale, the high price may also turn potential buyers away. Developers do after all need to take the time and money to conduct feasibility studies and land surveys of the site.

Then there is also the issue of valuation per unit. The criteria for share allocation as recommended by the Singapore Institute of Surveyors and Valuers are valuation, strata area and share value. In addition,  80% of the owners must also agree on the method of apportionment before the bid can happen.

ShunfuVilleOnly then will  public tender be made and a property valuation be made by an independent valuer on the closing date of the tender. In the 10-week period after the tender closing date, the CSC is still able to enter into a private treaty with a buyer. The process is often long and could take years, such as in the case of the Pearl bank apartments or Laguna Park.

 

Treasure Chest EC holds treasures for buyers

Buyers flocked to the recent launch of the Treasure Chest executive condominium (EC) in Anchorvale Crescent, Sengkang. The gallery was swarmed with approximately 3,000 home seekers and with applications closing tomorrow, it is already 60 per cent oversubscribed by 6th July. About 48 per cent of the applicants were first-time HDB buyers while HDB upgraders made up the rest. A total of 800 applicants have thus far applied for the 504 available units.

Treasure Chest ECThe 99-year leasehold Treasure Chest EC, developed by Sim Lian, was launched on Friday, 1 July with units going at the average of $735 to $755 psf. There are a total of 535 units over eight 15-storey blocks, with apartment sizes ranging from 3-bedders to premium 3-bedders and 4-bedroom units as well. Temporary occupation of the well-situated EC is targeted for 2019, a plausible time for young couples and families with young children hoping to live near schools of their choice.

The units are fairly spacious, with premium 3-bedroom units ranging from 1, 075 sq ft to 1,249 sq ft being the most popular with buyers. The smaller 3-bedders are sized at around 958 sq ft. Developers chalk the overwhelming response up to the affordable quantum pricing scheme coupled with a good location. Treasure Chest EC is situated near the Sengkang MRT station and bus interchange.

Some of the other ECs recently launched include Wandervale in Choa Chu Kang, The Visionaire and Parc Life in Sembawang and Northwave in Woodlands.

 

 

 

Completed private home prices fall further

Completed resale private non-landed property prices have dipped further in May, following a slight increase the month before. The muted sales could have also been a reflex response to the recent Brexit vote though in the long term, property analysts are not expecting the fallout to be too drastic.

FulcrumPrice decline of apartments in the central region were the lowest, with prices falling only 0.5 per cent last month, almost evening out with the 0.4 per cent rise in April. Properties here have the location advantage and will be unlikely to see a sudden price depression anytime soon. Astute buyers are however still out for the hunt and are likely to look towards properties in this areas for good deals. In the current market, buyers who lack holding power may find themselves having to let go of their properties within a time period, and may be more open to price negotiations.

As more new properties were launched in the last couple of months, activity from this segment may have also stimulated the resale private property sector and the spillover effect of positive market sentiments could have caused a slight blip in April’s price rise. Small apartments below 506 sq ft saw the steepest fall of 1.1 per cent as competition in the rental market heats up and prices continue to fall with high supply against lower demand.