3 City fringe properties exchange hands for $190 million

3 residential properties in the city fringes – owned by 1 group of 3 investment holding firms and sold to 3 different developers fetching $190.5 million in total. Quite the sale, it seems. These 3 sites, situated in Grange Road, Cuscaden Walk and Hullet Road, were launched for sale in October for $185 million and from the interest it drew before the sale closed on November 2, developers and investors seem upbeat about the future of high-end luxury residential projects and serviced apartments or hospitality-based properties in Singapore.

urban-suitesThe luxury property market may have shrunk slightly in the past 3 to 4 years, but buyers are coming back into the market, after letting the effects of the additional buyers’ stamp duty sink in. Despite the authorities being unlikely to budge on the property cooling measures for now, interest is once again growing, with central region properties sales on the rise this last quarter.

The site on Hullet Road with a total strata area of 18,428 sq ft was sold to Hullet Development for $38.2 million. The consortium led by Mr Patrick Kho of Lian Huat Group have plans to build a high-end development in the site, leveraging on its location right in the centre of town. The biggest of the 3 sites on Cuscaden Walk with a land area of 21,560 sq ft, was bought by a consortium led by Sustained Land for $103.8 million. The other plot on Grange Road was purchased by Roxy-Pacific Holdings for $48.5 million.

boulevard-vueThese new sales may ultimately see the introduction of some choice luxury apartment units in and about town, by the time they are launched or built, the market may or may not provide a suitably soft landing for these new properties.

Japan real estate may see future boom

Japan may have previously abhorred foreign labour but as their population declines and ages, they may be pushed to relax immigration laws. This may also increase the demand for real estate, and in particular since Japan’s Airbnb scene is also rather active, those who own a piece of prime real estate in the country will have profits to reap in the long run.

aoyama
Photo credit: Mitsui Fudosan Residential and City Developments

Singapore developer, City Developments (CDL) has recently been taking up stakes in various Japanese properties such as Park Court Aoyama The Tower, a 163-unit residential project in the Aoyama area within the Minato ward, where high-end businesses and exclusive residential areas  surrounded by modern eateries and pretty parks reside. In fact, with 26 storeys of freehold apartments ranging from 389 sq ft to 3,789 sq ft, the property looks set to attract both domestic and foreign buyers. Prices for the units will start at 178.8 million yen (approximately S$2.3 million) for a 1-bedder to 271 million yen (approximately S$3.5 million) for a 3-bedroom apartment. Only 55 units were released in its initial launch in Japan where show flats are already available for public viewing.

parkcourttokyo1Besides residential properties, hotels and commercial business spaces are also hot properties, quite literally. CDL’s hospitality unit, Millennium and Copthorne Hotels have already staked claim on a prime Ginza site for their flagship 329-room hotel and have invested in 3 other hotels as well. The CDL group also has stakes in 2 other residential developments. Despite the uncertain economic climate, Japan remains one of the more active real estate markets in the Asia-pacific region thus value appreciation will work in favour of property owners for quite some time yet.

October’s new home sales up 128 per cent this year

With more that 1,252 new private homes sold in October, new home sales have risen 145 per cent from the 509 units sold in September and 128 per cent in a year-on-year comparison with 2015 when 549 units were sold.

thealpsresidences4The sudden spike may have been due to pent up demand after the slower months of the June school holidays and Hungry Ghost month in August, plus the launch of major projects in the later part of Q3. The 2 new property launches which garnered most of the sales were The Alps Residences in Tampines and Forest Woods in Serangoon Central. Each sold more than 300 units which made up 55.7 per cent of October’s sales. Other projects which consumers actively seemed out such as Stars of Kovan, The Trilinq and Kingsford Waterbay all sold only 30 units each, though understandably as these are much older launches.

Property analysts put the sudden rise in sales, a 15-month record high in fact, to the affordable prices put out by developers. Despite the slower economic outlook, consumers know a good deal when they see one and are willing to invest in what they consider to be long-term investment-worthy properties. Forest Woods is situated close to the Serangoon transport hub – the MRT station, bus interchange and NEX shopping mall – which could account for its popularity.

forestwoodsForest Woods was the top seller last month, with 364 units going at an average of $1,078 psf. Smaller units were purportedly gaining traction with buyers once more. Shoebox apartments, though aplenty in the market, remain affordable and property analysts report a direction change from investors who have turned their attention from riskier financial products back to the more stable property market.

 

Resale private property prices slip further in October

Following the dip in resale prices in September, last month saw a further slip of 0.7%. Resale prices of private non-landed properties were apparently at a 50-month low.sycamoretreeSales volume of resale private properties also fell 15.2 per cent with 586 transactions clocked in October, in comparison to the 691 in September. In the peak of April 2010, 2050 units were sold, 71.4 per cent higher than the current numbers. September’s numbers may have been slightly more positive due to the pent up demand from the lack of major launches in the second quarter and the Hungry Ghost month in August.

Some districts fared better, with more than 10 resale transactions recorded – namely district 10 where the median selling price was $10,000 more than the computer-generated market value. But in most regions, sellers have found themselves having to offer prices up to $10,000 below the market value in order to close deals and attract buyers. In district 21 in fact, selling prices went as low as $23,000 below the market value.

HighlineResidences2Property prices in the city fringe, normally where selling and buying is the most active, have fallen 2 per cent. In the suburbs, prices also fell 3.3 per cent. Prime district properties however enjoyed a 4.9 per cent price increase, though it might only be sufficient to consider it a rebound from previous lull months.

New Vietnam properties hook buyers

It seems a few private residential ‘townships’ are coming up in Vietnam, and at the welcome of investors and those seeking a place to call home.

palm_cityOne of Singapore’s major developers, Keppel Land has been developing massive properties in Ho Chi Minh, where the expatriate population is growing and the rental demand for housing has increased by leaps and bounds in the last decade. 3 of Keppel Land’s major developments in the mamking are – Empire City, Palm City and Riviera Point.

Palm City on its own is already quite a force to be reckoned with. Jointly developed by Keppel Land and Tien Phuoc and Tran Thai, it covers a good 30 hectares of waterfront land, essentially an entire township itself. In Phase 1 of its development, all 135 landed terrace and detached houses have already been fully spoken for in their July preview. Now in Phase 2, they have launched the 816-unit Palm Heights apartments, with 570 units already booked at the average price of 32.6 million Vietnamese dong (S$2,017) per sq m.

riviera-pointOver at the 518-unit The View private apartments at Riviera Point, almost 33% of the 345-units launched have been sold. The selling price average at 37 million dong (S$2,302) per sq m. The developments in Ho Chi Minh seem be all be larger-sized high-rise ones. Yet another 500-unit private residential condominium project will be coming up within the year – Empire City, also a waterfront development in the Thu Thiem New Urban Area.

October’s private home sales set to rise

After a quarter of being in the doldrums, the mood in the property sector may lift a little next month as private home sales are expected to rise, mainly due to the increase in number of new property launches this last quarter of the year.

queenspeakcondoSome of the major launches which have already started things off on the right note include Forest Woods in Serangoon and Queens Peak in Queenstown. Both properties are situated near MRT stations and will no doubt be popular with buyers and investors who often look at the location and potential sales and rental yields. The Alps Residences in Tampines which launched last month has been enjoying the attention from buyers and have been selling well.

Property analysts are in fact expecting Q4’s property figures to exceed that of 2015. The total number of private homes sold last year stood at 7,440 units; and this year’s predictive numbers are between 7,500 and 8,000. Some of the best-sellers in the private home segment include Lake Grande in Jurong, The Trilinq in Clementi, Kingsford Waterbay in Serangoon, The Glades in Bedok and Sophia Hills in the fringe of the city. For October alone, sales volume looks set to exceed the 1,100-units mark, the highest number of units sold in a month this year.

KingsfordWaterbayWhile interest rates remain low, buyers are more savvy about where they put their money, and are more likely to look at new, uncompleted units, especially with some developers offering incentive schemes that benefit the financial plans of buyers without cash liquidity, which do not yet require immediate rental yields to help tide them over the market lull.

Parc Riviera – One price fits all

Developers have been dishing out various incentive schemes to draw buyers into the new private home fold, and now an upcoming property launch will do the same. EL Development will be offering a flat-price within the same type of units between the second and fifteenth floor of their Parc Riveria condominium. And the offer only stands when the deal is sealed at their launch this Saturday.

parcriviera2Photo Credit: www.parcrivieracondo.sg

With this new incentive scheme, units on the more popular higher floors will likely be the first to fly off the shelves as they traditionally command higher prices for the view they promise. As a price guide, the 2-bedroom units are going for $725,000. Other units available in the project’s two 36-storey blocks include 463 sq ft one- and 1,711 sq ft four-bedders though more than half are made up of one- to two-bedroom apartment units.

parcriviera1Units in the floors above the 15th-storey will also be available for purchase, though prices will be higher. Traditionally, units in the higher floors are about 15% more expensive than those in the lower floors. EL Development came up with the first-in-market scheme as a way to provide buyers with a transparent pricing system and a way to draw attention to specific units. Some of their other properties currently in the market include Skysuites 17, Stevens Suites, La Fiesta and Trivelis. Parc Riviera has already received positive interest and with this creative new strategy in place, it looks like the Parc Riviera sales office might see a flurry of activity this weekend.

 

 

Rougher terrain for local leasing market

Property owners with rental units at hand have been finding it increasingly difficult to find tenants.

MartinPlaceResidencesForeigners make up approximately 60 per cent of the rental demand in Singapore, and as the financial and oil and gas sectors take a hit, demand has declined with the foreign workforce diminishing due to companies moving out of the country or simply because housing budgets have been cut as the sluggish global economic drags out. As of mid-2016, vacancy rates stand at 8.9 per cent and there were about 30,310 units vacant. The sudden influx of completed new homes hitting the market this year could not have helped things as well. This year, the number of completed properties entering the market outgrew the influx of a foreign workforce. Immigration and labour policies have changed since the last general election.

Rental rates in the suburbs fell the hardest at 1.2 per cent, followed by 0.6 per cent in the city fringes. Rents of core central region properties however increase by 0.1 per cent.

cavenaghlodge2017 will see the completion of even more residential developments and analysts are expecting rental demand to fall even further, particularly in the suburbs. Rents have dipped by up to 8.8 per cent in the suburbs and 4.5 per cent in the central districts. Some landlords have even give discounts of up to 30 per cent, just to secure a tenant. Others have found themselves going months without finding a suitable taker on the unit. Smaller one- and two-bedroom apartment units are however still faring well, especially those in the Central Business District (CBD), Marina Bay, Orchard Road, and River Valley areas.