You are here: Home / Archives for buy property

18 Apr

Ardmore Park luxury condominium unveiled

From the way units at the designer Sky Habitat apartments are going, luxury projects seem to be on its way up again. Yet another designer condominium project, Sculptura Ardmore, at one of Singapore’s priciest location, launched by SC Global is set to break records.

Hilltops high-end apartments also by SC Global, at Cairnhill Circle

High-end developer SC Global has unveiled the design for its Ardmore Park project. The condominium will be called Sculptura Ardmore and erected at No. 8 Ardmore Park, one of the priciest addresses in Singapore. The firm bought the 0.4ha site in 2007 through a collective sale. SC Global released design details yesterday but did not reveal the launch date, although given the current lacklustre state of the luxury market, consultants say it is unlikely to be any time soon. The development will be 36 storeys high, with only 35 apartments. They range from 2,800 sq ft to a super-penthouse of 11,000 sq ft. Consultants expect prices to start from $5,000 per sq ft (psf). That could price the super-penthouse at around $60 million.

Chairman and chief executive Simon Cheong told The Straits Times: ‘The brief to the designer is more important than having a brand-name architect. We are not building a monument, we are building a luxury living space.’ The facade, made of glass, curves slightly. There are also what are called glass fins that can slide across the apartments for shade. Four units will have private lap pools that extend out from the building to give the effect of swimming in the clouds.

What will the architectural landscape of Ardmore Park look like?

The building is designed by the New York-based CZ Design Studio and DP Architects in Singapore. Mr Cheong added: ‘We wanted to do justice to Ardmore Park. We want the owners’ guests to come in and say ‘Wow’.’

Property consultant Ku Swee Yong, chief executive of International Property Advisor (IPA), said: ‘Given the quality of the finishes, facilities and interiors that (have) made SC Global famous, I think it will be upwards of $5,000 psf.’  There have been few property transactions in Singapore that have gone past the $5,000 psf level. Last year, three units at SC Global’s The Marq set a series of benchmark psf prices. One unit went for $5,842 psf, one for $6,394 psf, with another selling at nearly $6,850 psf. That works out to nearly $20.5 million for the 3,003 sq ft home. Mr Ku added that Sculptura Ardmore will likely stand out in the Ardmore/Claymore neighbourhood ‘as the building design is a departure from the boring straight lines and white walls of this street’.

But with prices likely in the tens of millions of dollars, high-end buyers might opt for a good-class bungalow instead, although Mr Cheong disagrees, maintaining that an apartment and a bungalow cater to different buyers. An apartment offers height and views, while the maintenance charges may also be higher for a bungalow.

The Marq, by SC Global, hit benchmark prices for luxury homes when it was launched last year.

Although the additional buyer’s stamp duty (ABSD) of 10 per cent has hit foreigner purchases, Mr Ku said: ‘Investors at the ultra-high net worth category put product over price.’ Mr Cheong also tried to downplay the impact of the stamp duty: ‘People at the high end, they won’t buy unless it’s the right project. They will absorb the ABSD at the end of the day.’ He also expects many of the buyers to be locals who have travelled extensively. Mr Cheong admitted that the project cost will be expensive, and ‘managing a public company, I am conscious of telling that to my shareholders, but they know that they will see increased shareholder value’.

The Straits Times © Singapore Press Holdings Ltd. Reprinted with permission.

Editor’s Commentary:
Even as Singapore continues to be viewed as one of the most livable cities by Asian expatriates, home prices and rental prices of private properties and HDB flats seem likely to rise. Will luxury homes continue to attract the affluent from the region and afar?

17 Apr

Revival in Paya Lebar – Katong Regency

Another mixed-used development hits the market, this time in Paya Lebar. Katong Regency will sit where the old Lion City Hotel used to be. Located in a prime east side location, near good schools, modes of transport, not to mention other amenities such as shopping malls and public libraries, will the buyers come fishing for a good catch?

A mixed-use freehold project to be launched in Paya Lebar on Thursday is expected to get a good response despite a hefty price tag, property consultants said. Residential units at Katong Regency, which sits on the former Lion City Hotel and Hollywood Theatre sites, will cost an average of $1,500 to $1,600 per sq ft (psf), a price experts said is ‘on the high side’. Still, the take-up rate for the 244-unit UOL Group project could be ‘quite good’, said Mr Nicholas Mak, head of research at SLP International Property Consultancy. ‘The area is fairly middle-class… there will be a catchment of residents here who have the means to buy this project.’

Katong Regency will be linked to the new shopping mall - One KM.

More than half of the residences at Katong Regency are one-bedroom and one-plus-study units. Prices for a 550 sq ft one-bedroom unit start at about $950,000 and go up to over $2.5 million for a 1,970 sq ft three-bedroom penthouse. A major selling point could be the upcoming rejuvenation of the Paya Lebar area, consultants said. R’ST Research director Ong Kah Seng said: ‘The area is considered promising… and will be a major business hub in years to come.’ He estimated that monthly rental for one-bedroom units could reach $3,000, especially if there are ‘visible signs of the spillover effect from the rejuvenation of Paya Lebar’ by the time the project is completed in 2014.

Katong Regency boasts one to four-bedder apartments in a good east-side location.

UOL Group could be banking on similar interest to that shown for the recently launched Sky Habitat, believed to be the priciest suburban condo in the market. The 99-year Bishan project has average prices ranging from $1,747 psf for a one-bedder to $1,642 psf for a four-bedder. Still, over 70 per cent of units that were released were sold in the first weekend of its launch. Mr Mak said: ‘I won’t surprised if people would be willing to pay (for Katong Regency). It’s a bit on the high side but… this one is freehold, and there’s a mall.’ A new mall, One KM, will be built on the lower levels below the flats. Mr Kam Tin Seah, senior general manager of UOL Group, said yesterday that the mall, with a net lettable area of 210,000 sq ft, will follow a similar concept seen in United Square, but will focus more on performing arts education.

United Square, known for its myriad of enrichment centres and lifestyle retailers, is also developed by UOL. One KM, which has signed Cold Storage as an anchor tenant, will have over 150 tenants. UOL said ‘serious retailers’ have shown interest for about half of the available units.

The Straits Times © Singapore Press Holdings Ltd. Reprinted with permission.

Editor’s Commentary:
District 14, in particular Geylang and Paya Lebar, have been seeing a lot of activity recently. With new property launches and a vibrant home purchasing scene, will more properties be launched in these two areas and how will the culture and nostalgia of the area be kept in tact amidst all the revival?

27 Mar

Another round of New Housing Projects

Riding on the continued interest in new residential properties, new private housing projects are being rolled out this week in full force. From the shores of Pasir Ris Beach to right in the heartlands of Choa Chu Kang, they span across the island. Will buyers be biting and how hard?

A string of projects is coming on the market this week, and some of them could be priced slightly below nearby projects as developers who fret about further cooling measures by the government try to boost sales following February’s record developer home sales. The projects expected to be rolled out this week include MCL’s Ripple Bay condo, within walking distance to Pasir Ris Beach, and Frasers Centrepoint’s Palm Isles condo at Flora Drive. At Hillview Terrace, a consortium that includes Roxy-Pacific Holdings and Macly Group is getting ready to begin selling its Natura project. Property giant Far East Organization could also release the 416-unit Hillsta project at Choa Chu Kang Road – which will have condo units, Soho-style apartments and strata townhouses – any day now, pending securing the necessary regulatory approvals. All these projects are 99-year-leasehold, except Natura, which is freehold.

Ripple Bay Condominium new Pasir Ris Beach.

Meanwhile, Tuan Sing has sold 90 units at Seletar Park Residence which it released last week. The average price of the five-storey, 99-year-leasehold condo is about $1,100 per square foot (psf). Excluding ground-floor units with private enclosed space and penthouses with roof terraces, the average price would be around $1,200 psf. Buyers are mostly Singaporeans. The project’s 276 units range from one to four bedders. Ground-floor units have higher-than-normal floor-to-floor height of 4.5 metres, making them much sought-after. Absolute prices start from $634,000 for a 528-sq-ft one-bedder on the third floor (reflecting $1,201 psf). Three penthouses have been sold; a typical penthouse of around 2,240 sq ft costs $1.9 million or $840 psf

Over at the East Village, a freehold mixed development in the Bedok/Upper Changi Road locale, World Class Land is said to have found buyers for nearly all of the 90 apartments and 96 of the 108 shop units. The apartments are priced at about $1,400 psf on average. Shop units are said to have fetched around $5,000 psf or more. Investors seeking freehold properties can also consider Natura, a 10-storey freehold residential project at Hillview Terrace said to be priced at about $1,250 psf on average. The project, which will comprise one, two and three-bedroom units and penthouses, has been in the limelight for its smaller-than-usual three bedroom units, which start at 635 sq ft.

Palm Isles private housing project in Flora Drive boasts townhouses besides the usual condominium units.

Those looking for a dream apartment near the beach may want to check out MCL Land’s preview on Thursday of the Ripple Bay, a short walk from Pasir Ris Beach. The average selling price is tipped to be slightly above $850 psf after early-bird discounts, lower than Seastrand behind it. The latter project, which is further away from the beach, was released in June last year, with units sold in that month achieving a median price of $879 psf, according to government statistics based on developers’ monthly sales declarations. The following month, the median price rose to $935 psf and the project continues to trade at above $900 psf on average currently. MCL’s Ripple Bay comprises 679 units in four blocks of 12 storeys and three blocks of 13 storeys. One-bedders will make up 18 per cent of units and two-bedders 42 per cent. Facilities will include a tennis court and 50-metre lap pool. Absolute prices start from $415,130 for a 484-sq-ft one-bedder (which works out to $858 psf). Three-bedders begin from $795,500 for a 990-sq-ft unit ($805 psf).

Over at Flora Drive, Frasers Centrepoint is expected to price its Palm Isles project at $850-$880 psf on average. Hedges Park nearby was released in April last year, achieving an $889 psf median price that month. Developer Tripartite last month disposed of eight units at $873 psf median price. Palm Isles’ 429 residences will include a low-rise block with 28 ‘garden homes’ each with its own private carpark lots and garden. SLP International managing director Peter Ow said developers are launching projects as soon as possible as some worry that the authorities may come up with fresh cooling measures following the record number of private homes sold in the primary market last month. ‘To ensure a good take-up rate, developers are likely to price new mass market condo launches say about $10-15 psf below existing nearby projects,’ said Mr Ow.

Hillsta condominium project in Choa Chu Kang. Photo by hillstacondo.com

Mr Ow said there is no necessity for the government to come up with further cooling measures currently as the speculation has been taken care of by the seller’s stamp duty, and foreign buying has also come off significantly following the introduction of the 10 per cent additional buyer’s stamp duty. There’s also plenty of supply. DTZ’s Asia Pacific research head Chua Chor Hoon reckons that there will be buyers for new residential project launches on the back of ample liquidity, low interest rates and continued inflation fears. ‘Demand will be stronger for small units as there are many investors with sizeable bank balances looking to park their money in property,’ she said.

The Straits Times © Singapore Press Holdings Ltd. Reprinted with permission.

Editor’s Commentary:
With many new properties coming up near one another, prices may be competitive and developers may roll out offers which are hard to resist. What guidelines are you following in your property selection process? Is this the height of the housing supply?

13 Mar

2012’s Choice Property Pickings

Instead of being put off by the property cooling measures, home buyers continue to indicate interest as developers ramp up their offerings of new properties. What properties can you choose from and what deal sweeteners are developers putting out to attract home buyers?

Home buyers will be so spoilt for choice this year that most won’t know where to turn – or which developer’s sweetener to take up. The launches and freebies are already coming thick and fast with loads of new projects lined up. The news is less certain for pricing but few experts expect huge bargains on the horizon. While some say prices might stay firm because developers have strong holding power, others predict price cuts ranging mostly from 3 to 10 per cent – depending on the segment – although there does not appear to be any industry-wide price reduction yet, apart from the various sweeteners.

Guillemard Edge condominium on Lorong 30 in Geylang.

Still, the Urban Redevelopment Authority’s price index inched up just 0.2 per cent in the three months to Dec 31, suggesting that a turning point might be around the corner. But on the supply side, it’s all guns blazing. At least 10 developments were launched in the first two months of this year, including Bartley Residences, Watertown and Guillemard Edge, as firms rush to meet buyer demand, stoked by rock-bottom interest rates. Property consultancy CBRE said that up to 48 new private projects – more than 5,000 landed and non- landed units – may be launched this year. They range from high- end homes in River Valley, Nassim Hill and Newton to mass-market projects in Yishun, Bedok, Choa Chu Kang and Pasir Ris. But they do not include recently sold sites that could be launched by year’s end, so the total number of new projects could be even higher.

Apart from these private residential projects, at least two more executive condominium (EC) projects with another 1,100 units are expected to be launched. So competitive is the landscape that developers have been pulling out the stops to lure buyers, with incentives like furniture vouchers and the absorption of stamp duty thrown in. The bumper crop of new launches expected this year stems from the Government’s ramped-up land sales programme (GLS) that began in the second half of 2010 and attracted keen developer interest. It also comes from the roughly 50 collective sale deals sealed last year. Like last year, the bulk of the new launches is expected to be in suburban areas, catering to first- time buyers and upgraders who have been powering the market over the past few years.

Twin Waterfalls Executive Condominium in Punggol.

The pipeline supply of sites and projects will provide a variety in terms of location and pricing so buyers will have numerous options to consider, say experts. Mr Ku Swee Yong, chief executive of International Property Advisor (IPA), noted that with average unit sizes shrinking, the number of units eventually launched on GLS sites might exceed official estimates by 20 per cent or more. Land parcels that could yield an estimated 7,000 units were placed on the confirmed list of the GLS for the first half of this year. Mr Lee Liat Yeang, a partner in Rodyk & Davidson’s Real Estate Practice Group, agreed, saying that developers are aware of the importance of keeping homes small and hence, overall prices affordable. ‘Some two-bedroom units are smaller than 500 sq ft. These small two-bedders should appeal to investors of projects within the city or city fringe, who tend to rent out these units.’

Sky Habitat in Bishan, designed by award-winning US-based architect, Moshe Safdie, of the new CapitaLand condo project in Bishan. Image by CapitaLand.

Experts say that price trends are likely to be project-specific, with better located projects with strong selling points achieving higher prices. But while developers will be cautious on pricing, they will push the market for what it will bear if there is an opportunity or when sentiment is good, said Mr Colin Tan, research head at Chesterton Suntec International. Mr Tan Kok Keong, OrangeTee’s head of research and consultancy, expects mass-market projects in less well-located areas to be priced at $800 to $900 per sq ft (psf), while better located projects like Sky Habitat in Bishan could be in the $1,400 to $1,500 psf range. IPA’s Mr Ku, however, estimates that mass-market home prices will average $1,100 psf in upcoming launches. Homes in the city centre like Leedon Residences might go for $2,000 psf and up to $4,000 psf for Ardmore 3, he said.

In the high-end market where sales have been lacklustre, Chesterton’s Mr Tan said that developers will likely try to rent them out or delay completion as long as they can while OrangeTee’s Mr Tan said prices might fall by ‘a single digit’. ‘Developers need to sell enough units to finance their construction costs and do not need to sell out their projects within a short period from first launch,’ added Rodyk’s Mr Lee. ‘In short, developers who have done very well in the past few years have strong holding power and should not panic-sell so long as they can clear a reasonable percentage of units in each project.’

Completed projects are an alternative for buyers in urgent need of a new home that’s not from the resale market. The URA lists 66 projects that are completed but with unsold units as of the fourth quarter of last year. Most of these projects are in the high-end segment where sales have been slow. These include Reflections at Keppel Bay with 290 unsold, Hilltops at Cairnhill Circle with 208 and Newton Imperial with all its 36 units unsold.

Hilltops high-end apartments at Cairnhill Circle

ECs are an interesting segment to watch as the Government recently lifted the quota for second-time purchasers. This means that they will now be able to buy 30 per cent of units in an EC project within the first month of sale, up from 5 per cent before. The Government has also said it is ready to supply sites for up to 5,000 EC units this year if demand remains strong. Credo Real Estate executive director Ong Teck Hui said that prices for upcoming EC launches in areas such as Pasir Ris and Yishun can be expected to range from $680 to $750 psf. While private property prices remain high, there will be buyers who opt for ECs instead as these are typically cheaper by 20 per cent or more.

The pool of eligible EC buyers has also increased with the upward revision of the monthly household income ceiling last August from $10,000 to $12,000. ‘The main advantage of buying a new EC is the price discount over private homes when they are bought, and the value boost when they can be sold on the open market and fully privatised,’ said Mr Credo’s Mr Ong. ‘Depending on location, the capital appreciation can be significant. For example, the average launch price of Bishan Loft was $420 psf in 2001 but there are resale units commanding above $1,000 psf recently.’ ECs are subject to a minimum occupation period of five years. They can then be sold only to Singaporeans and permanent residents. They become private property after 10 years and can then be sold to foreigners.

 

Frabege egg feature at Thomson Grand condominium along Upper Thomson

Developers are also increasingly pushing out new and creative promotions, discounts or freebies to beat the stiff competition. There is very often an early bird or VIP preview price which can be up to 20 per cent lower than the list price. This discount gradually gets scaled back later into the launch, encouraging buyers to commit early. Some developers have also started absorbing part of the stamp duty to cushion the impact of the latest cooling measures announced on Dec 8 last year.

Far East Organization offers furniture vouchers, with the amount based on apartment size and usually given when a project attains its Temporary Occupancy Permit. It has also given additional discounts of 1 per cent, labelled Valentine’s Day or Leap Year promotions, for some projects. Experts say that some of these incentives are an attempt to boost sales without dropping the price as doing so might damage the reputation of the developer and anger earlier buyers. ‘There is the good feeling when you have received a deep discount whether real or perceived,’ said Chesterton’s Mr Tan.Snazzy showflats decked out in posh furnishings can also help sway buyers, and developers are now spending more time and big bucks creating concepts and designs that appeal to different buyer segments. The 15,000 sq ft Thomson Grand showflat along Upper Thomson Road, for example, cost $8 million to build. Its furnishings include Swarovski crystal chandeliers, Louis Vuitton luggage and Hermes plates – all to project its luxury positioning.

The Straits Times © Singapore Press Holdings Ltd. Reprinted with permission.

Editor’s Commentary:
New properties. Completed properties. Executive Condominiums. New Deals. Too many too choose from. What will you go for ultimately? And what are home buyers’ deal-makers and deal-breakers?

2 Mar

Get your Home Loan facts straight

Straight from your bank, that is. Now all banks have to provide a home loan fact sheet to potential borrowers explaining the details of the loan, such as repayment schedule and interest rates. Do you know what questions to ask before signing on the dotted line?

Home buyers will now be in for a reality check before they sign off on their mortgage. The Monetary Authority of Singapore has mandated that from today, banks will have to provide potential borrowers with a fact sheet when discussions on the credit facility take place. The sheet will help potential customers work through the nuts and bolts of the mortgage, with information such as the loan quantum and the repayment schedule. There will be notes to inform the borrower that the bank may have the right to ask for additional payments if the property falls in value.

Is the interest rates on your home loan rising? Be aware of what the risks and fluctuations are.

Customers will have to be told that monthly repayments can increase if interest rates rise. For example, the monthly repayment on a 20-year, $1 million loan can increase by about $1,500 if the interest rate increases from 2 per cent to 5 per cent. Banks have to provide a fact sheet as and when there are changes to the key features of the proposed credit facility too. This can be in written, printed or any electronic form, with a copy retained by the bank. The bank also has to obtain a written self-declaration by the borrower that he has received such a fact sheet before the mortgage is signed.

OCBC Bank has designed an iPad application that will help its employees generate the relevant information almost instantly. Ms Phang Lah Hwa, head of its consumer secured lending unit, said: ‘Customers want to be able to quickly and easily understand how different financing terms affect their commitment. ‘We have created the iPad application, which is able to demonstrate the financing packages with just a few clicks, with graphical tools which make it easier for customers to understand.’

Mr Derrick Ang, director of mortgage sales at consultancy portal SingaporeHousingLoan.sg, noted that the new safeguards also protect the interest of the banks. ‘There were incidents in the past where the borrower claimed to have been misinformed pertaining to loan details after the loan was accepted,’ he said. DBS Bank’s head of deposits and secured lending, Ms Lui Su Kian, said it has already been informing prospective home buyers along the lines of the new requirements. Staff are also trained to assist customers in understanding the fact sheet. Ms Lui added: ‘Mortgages are a long-term commitment… and customers should be aware of how the loan type will fit into their lifestyle and how interest rates are determined, as this will have a direct impact on their monthly budget.’

The Straits Times © Singapore Press Holdings Ltd. Reprinted with permission.

Editor’s Commentary:
Do a quick calculation before you even head down to the banks. As a home purchase could happen quickly, it is best to already have the knowledge at hand. Check out iProperty’s home loan calculator and keep up on latest property news to ensure you are a well prepared home buyer. .

1 Mar

Prices of Resale homes drop twice in a row

The verdict may be out on the most recent cooling measures. Prices of resale properties have dropped further in January, following a 1 per cent drop in December last year. Smaller apartments and luxury residential properties may be those seeing a more drastic drop as these are usually favoured by property investors. Has the money stopped rolling in or are investors merely waiting for better opportunities?

Prices of resale homes have fallen for the second straight month, with values dropping most in the luxury and small- unit segments. Overall prices last month for these non-landed homes fell 0.4 per cent, after December’s 1 per cent drop. Prices of non-central homes bucked the trend, rising 1 per cent. High-end property in the central area saw prices dipping 1.9 per cent while prices of units under 506 sq ft were down 1 per cent. The data was compiled by the National University of Singapore’s Institute of Real Estate Studies for its monthly Singapore Residential Price Index.

The Raintree - included in the SPRI's basket of properties with small units.

Analysts said small units and high-end homes typically attract a larger following of investors, a factor which could account for the slump in their resale prices. This group of buyers has been hit hard by the recent property cooling measures, said Mr Nicholas Mak, head of research at SLP International. ‘We assume that homes in the non- central areas are typically bought by owner occupiers. That’s probably why we see more robust resale prices for this segment of the resale market. ‘When these owner occupiers decide on buying a piece of property, they might not be able to wait it out for better market conditions.’ The success of new suburban projects may have had some part in the rise of non-central resale prices, said Mr Ku Swee Yong, chief executive of International Property Advisor. ‘Suburban projects like The Hillier and Watertown have achieved record prices for the sales of their units. These record highs have helped pull up the values of the surrounding properties in the neighbourhood,’ he said.

The slump in high-end resale prices in the central area is in line with earlier analyst expectations of a slowdown in the luxury home segment. This segment, heavily dependent on foreign buyer demand, has been hit hard by the recently announced additional buyer’s stamp duty. ‘The (extra duty) may deter foreigners who are not in a hurry to purchase a home here to put their decision on hold,’ said Mr Ong Kah Seng, director at R’ST Research. ‘The fear of property re-pricing in response to sales lethargy may mean locals are deferring their decisions to purchase such homes.’

Citylights condominium at the city fringe, on Jellicoe Road near Lavender MRT Station.

Prices of luxury homes might soften but some analysts feel they might stabilise within the third quarter, said Mr Mak. ‘It might come to a point where resale prices of these homes drop to a certain level, and when that happens, some investors will jump back into the market to snag a bargain.’ The drop in small-unit prices can be attributed to an increase in the number of new projects. Mr Ong said buyers would be less inclined to buy from the resale market, given the wider selection on the primary market. He added that a new property usually comes with staggered payment plans, compared to a resale property which would require an immediate financial outlay.

January’s figures also reflect a change in the basket of properties used to calculate the price index; it now reflects the effect of smaller units on resale prices. The new batch includes an additional 113 projects that have been completed since October 2001. About 100 properties that were completed from October 1998 were removed from the previous list. The changes are designed to better reflect the changes in the completed stock of private non-landed properties. Aside from the addition of newer properties, the batch also includes a higher proportion of small units, which make up 10 per cent of the measured properties, twice the proportion used to compile December’s index. The projects with small units include The Clift, One-North Residences, Citylights, Soleil@Sinaran and The Raintree.

The Straits Times © Singapore Press Holdings Ltd. Reprinted with permission.

Editor’s Commentary:
Newly launched properties are sprouting all around the island. Have these new units taken the attention away from resale homes and how do they compare in terms of size, location and quality? If the choice were yours, what would it be?

3 Feb

Foreign property buyers retreating?

With the Additional Buyers’ Stamp Duty (ABSD) in place, are foreign property buyers thinking twice and turning their sights outside of Singapore? If they are still biting, which properties do they prefer?

The proportion of private homes picked up by foreigners who are not Singapore permanent residents spiked in December before easing in January, according to preliminary numbers. A caveats analysis by DTZ Research shows that the foreign buying share increased to 23 per cent in December, from 16 per cent in November and 20 per cent in October. However in January 2012, the share slipped to just 3 per cent – although the caveat pool for the month is small, with just 131 caveats lodged so far. More will stream in over the coming weeks.

EuHabitat features townhouses, SOHO apartments as well as condominium units.

In comparison, for October, November and December last year, 2,147, 2,191 and 1,711 caveats respectively were lodged. Despite the small caveat pool for January, the sharp drop in foreign buying share to 3 per cent in that month from 23 per cent in the preceding month is remarkable, say analysts. DTZ’s Asia Pac research head Chua Chor Hoon suggests the surge in foreign buying share in December could have been due to foreigners rushing to close purchases on the night of Dec 7, when the government announced the additional buyer’s stamp duty (ABSD). The duty was set at 10 per cent for any foreign purchase of residential properties in Singapore starting Dec 8. Remission of ABSD was given for options granted on or before Dec 7 and exercised on or before Dec 28, 2011

Offering another explanation, SLP International managing director Peter Ow reckons the jump in the foreign buying share in December could be a reflection of strong sales to foreigners in the preceding month. ‘Typically a caveat would be lodged upon exercise of option and this is usually a few weeks after the date of grant of option,’ he adds. Agreeing, Rodyk & Davidson partner Norman Ho says: ‘For developer sales, buyers may have up to five weeks from the date of grant of option to exercise the option by returning the signed sale and purchase agreement to the developer. In the secondary market, it’s usually two to three weeks.’ ‘In some cases, buyers may not even have engaged lawyers to act for them in the early stages of their transactions and hence caveats may not be lodged until much later,’ he adds.

The Tennery at Bukit Panjang.

Initial evidence of a slowdown in foreign buying post-ABSD has already started to surface. At the popular Watertown condo in Punggol, where 771 units were sold in January, non-PR foreigners accounted for about 5 per cent of buyers (with PRs making up further 5 per cent of buyers and Singaporeans the majority 90 per cent). At The Hillier next to the upcoming Hillview MRT Station, options for 387 units were granted last month, with non-PR foreigners and PRs each having a 10 per cent buyer share. In comparison, at another Far East Organization development – The Tennery above the Ten Mile Junction LRT Station in Bukit Panjang – launched last year, non-PR foreigners made up 23.2 per cent of buyers, and PRs just 0.2 per cent. DTZ’s Ms Chua reckons that foreign buying is set to ease as the 10 per cent ABSD would be a substantial premium for most buyers – although not the super-rich.

SLP’s Mr Ow acknowledges that foreign buying has come off in the aftermath of the ABSD. ‘However, it will take about six months to figure out the full impact of the ABSD. For instance, once prices stabilise after an initial fall and if the Singapore economy continues to be fundamentally sound, foreign buyers are likely to re-enter the Singapore market, notwithstanding the 10 per cent ABSD,’ he added. DTZ’s caveats analysis also showed that non-PR foreign buyers made up 20 per cent of private homes bought in the fourth quarter of last year, up from a 19 per cent share in Q3 and 16 per cent each in the first two quarters of 2011.

Foreign buyers are eligible to purchase units at Woodhaven condominium project in Woodlands. Image by Far East Organization.

Full year 2011, the foreign buying share was 17 per cent, up from 12 per cent in 2010. For non-landed properties, the most sought-after projects by foreigners in Q4 2011 were euHabitat at Jalan Eunos (65 units), The Minton in Hougang(25 units) and Bedok Residences (23 units). For Q4 2011, the most popular landed properties among foreigners were at euHabitat (8 units) and Woodhaven in Woodlands (5 units). Because these two projects have condominium status, foreigners do not require the Singapore Government’s permission to buy strata landed homes in such projects.

The Straits Times © Singapore Press Holdings Ltd. Reprinted with permission.

Editor’s Commentary:
Is the 10 per cent Additional Buyers’ Stamp Duty (ABSD) a deterrent for foreign buyers hoping to claim a spot in Singapore’s property market? The effects are yet to be know, and even with the slower take-up rate from foreign buyers, the true impact (if any) of the ABSD is still uncertain. What would you think are the short and long-term effects of the ABSD on Singapore’s real estate landscape?

30 Jan

70% of Parc Rosewood units launched sold over weekend

Home buyers are coming out in full force as they chase the latest property launches. Hot on the heels of the Watertown launch in Punggol, Parc Rosewood in Woodlands is also garnering eager responses from the buying public. 70% of the units launched last weekend have already been sold. How many more left for those hoping to snag a unit?

Parc Rosewood in Woodlands seems to have picked up the momentum generated by Watertown in Punggol – with seven in 10 units released on Saturday finding buyers. Marketing agent ERA Realty Network said yesterday that it had sold 165 of the 236 Parc Rosewood units up for grabs. Most – 120 – were snapped up within four hours of the preview launch.

Parc Rosewood condominium in Woodlands

The price range of the five-storey, 99-year condominium, developed by Fragrance Group and World Class Land, had been lowered by 8-10 per cent ‘to offset any impact on sales from the recently implemented additional buyers’ stamp duty‘, ERA said. From an initial $1,030-1,100 per square foot, based on recently transacted prices, the units’ price range was lowered to $925-998 psf. This meant that prices for the initial 236 units released at the preview launch started from $398,000 for a one-bedder to $568,000 for a two-bedder and $778,000 for a 3-bedroom unit.

The five-storey development along Woodlands Avenue 2/Rosewood Drive has 689 units, most of which are one or two bedders with a few three bedders and penthouses.

Parc Rosewood units are mostly one to two bedders with some three bedders and penthouse units.

The Straits Times © Singapore Press Holdings Ltd. Reprinted with permission.

Ediyor’s Commentary:
It looks like a truly happy new year indeed for developers of these two recent property launches – Watertown and Parc Rosewood. Twin Waterfalls EC project in Punggol and The Tampines Trilliant have also just been launched last week, will they see similar responses?

 

« Older Posts