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30 Apr

Changes to Exec Condo housing scheme?

2013 might be the year of housing policies shockwaves. Earlier in the year, news of singles being about to purchase new HDB flats directly from housing board stirred the market a little, then there were the limits placed on dual-key apartments which are now only available to multi-generational families. A cap was also put on the size of executive condominium (EC) units, at 160 sq m. ECs have been put under the microscope of late, with some questioning the amount of subsidies buyers are receiving from the government.

Forestville Executive Condominium.

Forestville Executive Condominium.

Certain members of public have questioned whether EC buyers should receive any government subsidies at all, since they are able to or willing to afford million-dollar units in both new and resale developments. The executive condominium scheme was initially set up by the government in 1996 to help families transit between public and private properties. But as the price gap between ECs and private properties now draw close, there has been a niggling thought about whether changes should be made to this scheme.

National Development Minister Khaw Boon Wan recently highlighted that there might soon be changes in the EC scheme and buyers and developers are poised to react. Forestville, the next EC to launch in June this year, might benefit from increased response since buyers might be leaping at what may very well be their last chance to secure a unit under the current conditions. EL Development‘s Lim Yew Soon has this to say: “Whenever policies change or are alikely to, the immediate launches will have the biggest benefits. There’s a good change that buyers may snap up existing ECs to ensure they still receive the grant.” Will resale ECs also benefit from this rush?

Should there be a drastic adjustment in government subsides, the most affected might be first-time buyers. Buyers and owners of existing ECs are imploring the authorities and public to see things from their point of view. Engineer Eddy Lau, 40, said, “It’s not right to just look at the profit we make. We also pay more in interest over the years for the EC. For us who are sandwiched, ECs are the only option to upgrade.”

Ultimately, the question that probably begets the Government is, what defines “sandwiched class” and what are the housing schemes actually meant to do. And perhaps only honest answers will help everyone fully understand and accept Singapore’s future housing situation.

17 Apr

The case of the shrinking condominiums

Unit size, that is. It used to be that a one-bedder in 2008 measured an average of 678 to 947 sq ft. From 2010, they measured 538 to 678 sq ft. When the minimum becomes the maximum, it may be the sign of times.

 

One of the latest new properties offered - Natura condominium at Hillview Terrace.

Natura condominium at Hillview Terrace.

Property developers have been shrinking condominium sizes to make them fit into the pockets of buyers. And these are not restricted by area, across the board, homes are getting smaller. Shoebox apartments have been the focus these past couple of years, but now, it’s not only the studio apartments which are put under the microscope. Two and three-bedroom units have also been getting the slice. For example, a three-bedder in Natura at Hillview Terrace measures 635 sq ft, that’s even smaller than the smallest one-bedder unit launched in 2008. And before 2008, the same would have gotten you 1,500 sq ft.

As Singapore’s population rises, the challenge to contain all in livable conditions fall not only in the hands of the Government, but also on private developers. High land costs, labour costs, material costs have all contributed to the situation. It’s either higher prices or smaller spaces. Or both. But does this mean buyers now pay less? As competition increase, property developers find themselves fighting for the same crowd of buyers, and trying to put out products which fit into their price points.

Midtown Condominium at Hougang.

Midtown Condominium at Hougang.

Most buyers are willing to fork out $1.5 million for their first or second home, especially since loan limits have been tightened in the most recent round of property curbs. But experts are less concerned about the small size of shoebox apartments than two and three-bedders. They have voiced their concern that while it is reasonable for one person to live in a 500 sq ft studio space, it may not be so for small families to live within 600 to 700 sq ft. And these not only apply to private condos, but also to ECs (executive condominiums).

The trend looks set to continue, but is there any more space left to shrink? What quantifies “livable” space and are Singaporeans getting the quality of life they need?

8 Feb

One person to a home?

That might be the way Singapore’s property market goes in future. 6.9 million by 2030? Could the number of new homes be sufficient if this new trend continues?

Condo

More home owners are taking sole ownership of a property, to free up their spouse or family members for ownership of other properties whilst avoiding the additional stamp duties payable on the second and subsequent properties. The savings could be quite substantial, considering the new measures now require Singaporeans owning a second home to pay a 7 per cent ABSD (additional buyers stamp duty) and PRs (permanent residents) to pay 10 per cent.

Even families who currently have more than one name on the property are ‘decoupling’ or transferring their share of the property only one person so the rest are able to now purchase new properties without paying the additional buyers’ stamp duty. The 3 per cent standard stamp duty rate which comes with the transfer is however still applicable. How many properties would one family essentially own then? Is it going to be a case of landlord over tenants in the very near future?

KhattarWong managing partner Gurbachan Singh considers the recent cooling measures to be the ‘most radical’ since 1973, and a sign that the Government is keen to look after Singaporeans first. However there are still loopholes to be filled in and constrains to be released. The situation that occurs upon the inheritance of a property needs to be reconsidered as being levied up to 16 per cent ABSD on a property that one has inherited or is placed the executor of could hardly be fair, especially if special circumstances apply. Mr. Singh has said that should the response from IRAS not be satisfactory, they are willing to take the rulings to court.

11 Jan

Mount Sophia and Wilkie Highlights

A bungalow at Wilkie was sold recently. $24 million was the number. No, not the selling price, merely the profit made. An old building that was possibly bought for only $450, 000 ($48 psf) in 2005 seems almost impossible. But the search on Realis, URA’s real estate transaction website, shows that there were not other transaction since then. Other similar transactions of landed property went for $561 psf in 1996 and $779 psf in 2001.

The site was bought by Roxy-Pacific for $24.5 million. Zoned for residential development, the 9, 321 sq ft site could possibly yield 85 one-bedders. With its close proximity to many creative art schools such as School of The Arts, La-Salle College of the Arts and Nanyang Academy of Fine Arts, it is set to gain popularity, if not already.

Wilkie 80

The relatively quiet enclave adds to the exclusivity, with a quaint little park at the top, and some boutique hotels and eateries along the way, not to mention its expensive and desirable city fringe location, properties in this area have been flying out from under the radar in recent years. Populated usually by low-rise apartments, some new properties have been popping up here. 8 Mount Sophia, 1919, Mount Sophia Suites, Wilkie 80, Wilkie Studio are just a few of the private apartments available for sale.

On another note, bungalows and landed properties may be popular with home investors and upgraders this year. Areas such as Thomson, Tanglin, Bukit Timah, Lornie and Sentosa Cove of course, are just a few areas to do some home-spotting.

8 Jan

New Pasir Panjang Freehold Low-rise Apartments

SeaSuites, launched over the weekend, has collected 100 cheques even before its official launch. As a freehold property, the units range from 517 to 1, 410 sq ft, mostly made up of one and two-bedders. Prices hover around $1, 650 sq ft. With the fashion-based business group, Link (THM) behind this project, this small-scale landed development may be projected at buyers with an eye for design. The group’s other residential properties include a landed housing site in Holland Road, which when completed are expected to fetch a grand $10.5 to $11 million per home.

SeaSuites 1

With only 52 units available, who out of the 100 cheques collected will successfully secure a home at this new residential development by the end of Sunday? The exclusivity and rarity of low-rise apartments are perhaps the calling card for this new property. The previous lack of private condominiums may also be a contributing factor. Many buyers or investors may look at the area as a future property goldmine, at least for the potential it holds. And as more MRT stations are being built, areas such as these which are yet relatively underdeveloped may see much more activity and early buyers could benefit from a wider profit margin.

Other private properties in this area include Village @ Pasir Panjang, Parc Imperial, The Foliage and West Shore Residences.

2 Jan

Property makeover for 8 private estates

Under the Estate Upgrading Programme (EUP), 8 private estates will be getting a whole new look by the end of 2014. Although it may not extensively change the property prices, it may nevertheless provide an added incentive to potential buyers and thus benefit the sellers.

Mount Rosei GardenWhich estates are these?

What they will be getting are landscaped environments, fitness equipment, park furniture and wider footpaths, according to the Ministry of National Development. Selection was based on the age, physical condition and scope of improvement. As the areas have begun to look dated and some plagued with drainage and parking issues, the revamp will cost about $29 million.

Marine Parade GRC MP Fatimah Lateef and Potong Pasir MP Sitoh Yih Pin are looking forward to improvements for their wards. In all, there has been a high demand for these government-funded upgrading schemes and Senior Parliamentary Seretary for National development, Dr. Maliki, has reflected strong spport for such programmes as it is aimed at improving community bonding.

All in time for the next election perhaps? Either ways, about 7,000 households will benefit from these estate upgrades, but how much more these new amenities and facilities will bring to the properties in these districts still awaits further analysis.

27 Dec

Old Gold – Queenstown

Not only are home buyers going for glistening new properties, they are now getting more savvy and willing to pay to be in areas with a heritage. Which means areas such as Tiong Bahru and Queenstown are seeing a property boom.

Alexis @ Alexandra Condo

As one of Singapore’s oldest townships, Queenstown, with its proximity to the city, has seen a huge increase in interest and sales. Made up of mostly HDB flats, it is not surprising then, that earlier this quarter, an executive maisonette went for $1 million. Private condominium apartments are few and far in between, namely The Anchorage, Queens and Alexis @ Alexandra. The last in the list only recently received its temporary occupation permit (TOP) this year. Prices of private homes here have risen 5 to 7 per cent and now cost between $1,200 psf and $1,700 psf. At Queens condominium, prices have already risen from $700 – $900 psf to $1, 200 – $1, 400 psf. Home rental prices in this estate range between $3 to $4.50 psf per month.

With the One-North cluster filling up fast in the nearby Buona Vista, could this possibly direct even more property traffic in the Bukit Merah-Alexandra Hill sub-zone? Under the government land sales programme (GLS), 2 plots near the Queenstown MRT Station were recently released and perhaps we could expect a growing number of private condominium units in this area.

11 Dec

The Topriary penthouses sold out

At one of Sengkang’s up-and-coming executive condominiums, The Topriary, there were once 16 penthouses.  But they are now none. All were sold out within the first two hours and at prices of between $1.3 and $1.5 million at sizes of between 1, 970 sq ft to 2, 476 sq ft.

Buyers were attracted by The Topriary’s amenities and investment potential. Situated near the soon-to-be completed Seletar Mall and existing Greenwich V Mall, home  buyers snapped up 600 units of the 700 units within the first five days. Applications have since closed last Tuesday. Other units included two-, three- and four-bedders as well as dual-key apartments.

The response is a strong indication of the market interest in ECs. HDB upgraders and those not willing to fork out the money for limited space in private properties count amongst many of those applying for the recent EC launches. CityLife@Tampines was another EC with a 4, 349 penthouse which was more than three times oversubscribed. If you’re looking out for another EC launch, then Forestville in Woodlands might be just your thing.

With property developers offering more luxury fittings and options in the latest EC launches, it makes one wonder how much further will this particular property sector have to go before it becomes entirely comparable to private condominiums and possibly closer to laying its own path to demise.

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