Poiz Residences – Poised for Potential

Come this weekend, another mixed-use development will enter the market and perhaps just in time to add some excitement to the year-end festivities.

With half of its units launching this Saturday, November 28, is the 731-unit condominium Poiz Residences developed by MCC Land. It is part of a mixed-use development that includes the retail and lifestyle-centric Poiz Centre. The project is situated in Myeappa Chettiar, just right next to the Potong Pasir MRT station.

poiz-img-001Photo credit: MCC Land

With the new Bidadari HDB estate coming up not far away, and schools such as St. Andrew’s primary, secondary and junior colleges nearby, the new private condominium may provide buyers with a tantalising option. Tentative completion date for the property is in 2019, which will comfortably coincide with that of the HDB flats in Bidadari.

Pricing of units at Poiz Residences are expected to be around the average of $1,380 psf with a good mix of 4 penthouses, 202 three-bedroom units, 52 four-bedders, and the rest made up of the highly palatable one- and two-bedders. With buyers now more akin to units with lower quantum prices, the latter might sell quickly.

MCC Land is hoping to position the mixed-use project as a mainstay of the Potong Pasir area, building it up as a central destination in the region.

October shows dip in resale private home prices

In the current market, where sentiments and demand are weakened by the property cooling measures, it might be idealistic to wait for the market to climb back to its peak in 2009 and 2013. But angle of decline for resale properties has been gentle, with a 7.6 per cent fall from January 2014.

26 NewtonPhoto: 26 Newton condo apartment

Though resale private home prices have dipped since then, the lowered prices may have brought more buyers back into the market. Resale properties or condominiums which were new launches between 2010 and 2012 have relatively larger floor area and in the current market, and buyers who are looking for a permanent home may find the fact that they have higher bargaining power a more-than-valid reason for approaching the resale property market.

Properties in the city fringes fared better as they are priced much lower than city centre properties, and yet offer the proximity or a good location and hints at exclusivity. Resale prices here have fallen just 5 per cent since the highs in 2013. This region has always been popular with investors and owner-occupiers and the lack of new launches here of late may have raised the number of resale transactions.

Suburban resale properties are facing a slightly different situation as the large number of new units have decreased the leasing and resale demand. Fiercer competition may have caused some owners to lower prices, more so than ever, buyers and tenants are finding the ball in their court.

Tri-factor sustaining Property market – Government, industry and home owners

As 2016 brings a slew of completed new homes into the property market, developers are concerned about what market restrictions and rising construction and project development costs will do to the industry.

Kallang Riverside

Photo: Kallang Riverside

Even as everyone understands that Singapore is a land-scarce country, and the costs of properties will never be unrealistically low, the current market sentiment seems to be one of wait-and-see. But property prices may never fall too far without affecting the quality of homes. Developers are already feeling the financial squeeze as land costs rise, along with regulatory fees for plans submissions and costs of construction, fittings and furnishings. On top of that, developers are also under the time pressure of selling all their units within a five-year period in order to avoid paying the Additional Buyers’ Stamp Duty. At the moment 3,000 units from the development of properties from land plots sold under the Government Land Sales Programme in 2012 remain unsold, they will reach their five-year deadline next year.

Thus as much as a home buyers may be waiting for even lower prices, new properties launched in the months or year ahead may not be able to lower their prices any further. Moving ahead, how the Government manages its land sales programme, and how developers manoeuvre around rising project development costs and market their products may be key to keeping the industry and ultimately the overall economy healthy and growing.

Compact apartment units popular with buyers

At a couple of the most recent property launches – Principal Garden and Thomson Impressions, smaller units such as one- and two-bedders were the stars of the show.

The developers of both properties have managed to hit it off with the buyers with smaller apartments. As buyers are now more price-conscious, it was no surprise that these units priced below the $1 million dollar mark sold fast and furious. At Principal Garden alone, 120 of the 200 units launched last weekend were sold at a $1,600 psf median; 70 per cent of the 663-unit Prince Charles Crescent project consists of one- and two-bedroom apartments ranging rom 484 to 807 sq ft. For a gauge of the quantum prices here, selling prices of a one-bedder started from $777,000 and $1.18 million for a two-bedder.


Photo: Principal Garden

Another much talked-about new property, Thomson Impressions, also launched 150 units last week, and 87 have since been sold at an average of $1, 393 psf. Similar to Principal Gardens, 60 per cent of the 288-unit Lorong Puntong property near Sin Ming Avenue are made up of one- and two-bedders. With its prime location near the future Bright Hill MRT station and many good schools, one-bedroom apartments at Thomson Impressions were going from $670,000.

About 85 per cent of the buyers at the launch were Singaporeans, which could signify a comeback of sorts for the private property market. Sales figures may indicate a shift to more palatable quantum pricing and smaller apartments.

Upper Thomson – Property Hot Spot

Ever since the up-and-coming Thomson-East Coast MRT Line was announced, a number of new properties along the upper thomson stretch have been launched to good, if not resounding, response.

New residential developments which will be ready within the next few years include Thomson Grand, Thomson Three and now, Thomson Impressions. These are all situated within walking distance of the Bright Hill and Upper Thomson stations. Units launched and priced under $1 million have almost all been snapped up as property analysts hint at a possible million dollar sweet spot for most buyers and investors.

Thomson Three 1Photo: Thomson Three

Smaller units such as one- and two-bedders were particularly popular. At Thomson Impressions, one-bedders start at $670,000 and two-bedders $980,000. Apartment sizes range from 68 to 71 sq m for the two-bedroom apartments, comparable to sizes of three-room HDB flats. Thomson Impressions is made up of 100 one-bedders, 72 two-bedders, 106 three-bedders plus 5 penthouses and 5 strata-landed homes.

Prices are fairly affordable, especially for HDB upgrades who typically go for private properties below $1.2 million. Previously, units at Thomson Three which were priced at around $1,400 psf, sold quickly as well. There are currently only 8 units left. Smaller projects with under 300 units tend to sell well, especially if the location is prime and are near a number of good schools. Ai Tong primary school, Catholic High School, St. Nicholas Girls’ School, Raffle Instituition are all within the district or nearby towns.

Compared to larger mass market projects, these smaller developments also have the advantage of exclusivity, and much lower competition in terms of resale and leasing.

The 19-storey Thomson Impression is situated in Lorong Puntong and is expected to be completed by 2019.

A+ Living in the City Fringes – Principal Garden

How would you like to take a 4km bicycle ride through greenery to work at the Central Business District? Or live just a stone’s throw away from the Redhill MRT station?

An upcoming launch on Prince Charles Crescent can put that, and more, right in your palms. Situated next to the Alexandra Park Connector which links to the CBD, the 663-unit Principal Garden condominium sits deftly in the cusp of the city fringe and will feature a wide range of units, including one-, two-, three- and five-bedders with average prices of $1,600 psf.

PrincipalGardenCompared to The Crest condominium nearby which has a median price of $1,688, this new property has its units reasonably priced for the good location it enjoys. As the developer, UOL, has secured the Prince Charles Crescent land at a good price, they are now passing the savings on to the consumer.

The smaller units, which Principal Garden has an abundance of, namely the two-bedders, are expected to be popular with investors. The property will have 182 one-bedroom and 304 two-bedroom apartments at approximately $770,000 and $1.18 million respectively. The three- to five-bedroom units will have private lifts. Their first launch happening this Saturday will feature about 250 units. The rest will be rolled out in subsequent phases.

From New York to Sydney – Investing in Foreign properties

While the number of new properties coming up in Singapore may tilt the scale towards supply and give buyers an upper hand, in other major cities around the world, a decline in supply has moved property prices up the charts.

MelbourneProperty_CollinsStreetIn New York, the number of available properties, especially those in popular districts, have been on the decline. There has reportedly been a 20 per cent fall in the number of available listings, now standing at 5,654 which is much lower than the 10-year average of 7,047. This has placed the median selling price for a Manhattan apartment to just below the record-setting US$1 million (S$1.4 million) mark. Though that may not seem much, considering Singapore condominium apartments are selling at similar prices, the amount of space you get is much lesser. If it’s space you’re looking at, buyers may have to look outside of New York and into the suburbs. Needless to say, the lack of available properties below the US$1 million mark has made competition all the more heated, and buyers now find themselves having to stretch their budget to get the apartment they want. Landlords and sellers now have the upper hand.


At the opposite end of the globe in Sydney, Australia, property prices have been climbing steadily for the past quarters and now stand at an average of A$785,000. But prices in Sydney may have reached its peak as prices only grew 0.1 % last month. Over in Melbourne, the average prices stand at A$580,000 and prices have rise 2.4 %.

Are there opportunities in both cities for investment and is the time now?

Luxury apartment market remains quiet

While luxury property buyers find similar properties in Singapore cheaper and more affordable than those in Hong Kong, the market for high-end apartments above 2,000 sq ft remains quiet. In the third quarter of 2014, 162 luxury condominium units were sold and this year, only 112. Most of the properties sold were in the prime districts of 9 to 11.

Palms Sixth Avenue 1Property analysts say the Additional Buyer’s Stamp Duty (ABSD) is one of the main factors affecting the change as it increases the total quantum price considerably. And as most luxury property owners are the highly affluent with sufficient holding power, they are unlikely to succumb to asking prices which are not suited to their liking. Buyers however are now looking for better deals as they see the property market as weakening. The buyer-seller tussle may continue while everyone keeps an eye on interest rates and global economic changes.

However, the landed home market in the prime districts are still doing well. 30 houses have been sold in the third quarter thus far, with the total sales numbers coming up to $266.3 million. And Malaysian and Indian buyers still have the strongest showing in the local market. Some of the projects which did well in 2015 include Leedon Residence, D’Leedon and Palms @ Sixth Avenue. Resale properties which fared similarly include Goodwood Residences, Urban Resort Condominium and St Regis Residences. Recently, a townhouse at Bishopgate Residence also sold at $21 million and Chinese buyers are coming back into the fold.