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24 Jan

Will the property cooling measures bite?

They might. According to DBS Group Holdings chief executive Piyush Gupta, the most recent cooling measures ‘have a lot of teeth and affect everyone’. Some of the biggest teeth include higher additional stamp duty and stricter loan limits. Thus is will somehow impact anyone buying a home, whether it is the first-time buyer or the seasoned real estate investor.

What do the recent residential property prices and sales figure indicate for Singapore?

What do the recent residential property prices and sales figures indicate for Singapore?

Mr. Gupta considers the measures a possible reflection of the Singapore Government’s dilemma balancing between ‘growth versus inflation, and growth versus social stability’. Not surprising since housing was one of the most hotly debated issues at the last elections.

There is speculation that home sales may dip by as much as 30%, in number, not in price. Property buyers may back off for a while but in the near-term, prices are expected to stay high as developers currently do have a strong balance sheet and some holding power. As time goes by, prices are expected to either plateau or dip 5 to 10 per cent, mainly in the prime segment.

As developers continue to buy up land from the Government Land Sales Programme (GLS), they will continue to build new homes at the current market high. And as population is expected to continue to rise, it might not be likely that prices will drop due to a demand-supply imbalance. Stable employment and interest rates will also keep the game going. The tipping point is not yet in sight.

According to a UOB report by Mr Francis Tan and Mr Jimmy Koh , even if home prices were to correct, first-time buyers may take the opportunity to buy thus softening the blow on the market.

Well, in short, whether or not you should play the waiting game, depends entirely on whether you have the time and money to wait, or not wait.

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.

30 Nov

Are homes in Singapore truly affordable?

If you have always wanted to ask the authorities this question, will now hear what they have to say. In a grassroot dialogue on Sunday night, National Development Minister Mr. Khaw Boon Wan emphasized the Government’s commitment to providing affordable homes for Singapore’s future generations.

Do you think Singapore’s homes are truly affordable for the average Singaporean?

On the one hand, the nation is hoping to improve birth rates and push up the population numbers, but on the other, housing prices have been soaring above the capability of the average Singaporean. But Mr. Khaw says that the 25, 000 new HDB flats built per year over the past couple of years have more than provided for the 15, 000 marriages per year. He also said that “Pricing is within my control”, further taking up the responsibility of making it possible for citizens to own a roof over their heads.

With the rate at which property prices are rising and the constant increment quarter by quarter, are you positive that affordability is true of the current situation? And what about in five years’ time? Will homes be more or less affordable then as compared to now? How should affordability be measured, or what other factors should it be measured against? What about inflation and other living expenses such as education, transport, or simply the overall livability of the nation?

12 Nov

Seng Kang Executive Condominium newbie

Though neighbouring HDB estate, Punggol, has been stealing the limelight this past quarter, the score is yet to be settled. Sengkang once began like Punggol, out of the way, with splotchy residential areas and far from amenities and transport. But now, it is rather a blooming, booming town.

La Fiesta condominium in Sengkang.

With another two sites up for bids, new executive condominiums (ECs) may once again ignite the excitement in the property market in the buzzing HDB town. Existing private condominiums in Sengkang include Riversound Residences, The Luxurie, H20 Residences and the upcoming La Fiesta.

And if you are waiting to spot an executive condominium unit in Sengkang by the end of this year, you’re in luck. 2 more launches are expected by year-end – CityLIfe @ Tampines and Forestville in Woodlands. Property developers have shown a great deal of interest in the recent EC bids and the real estate market could perhaps be expecting robust interest from buyers of this particular property type.

Executive condominiums have always been a good draw for buyers as they become private property after five years and their value is expected to rise accordingly. It also helps that this EC site is near a LRT station.

8 Nov

The wonder of Telok Blangah

Situated near major Multi-national companies and a number of business parks, entertainment and leisure spots, and the central business district, yet far enough to have a sense of exclusivity amidst lush greenery – Telok Blangah is certainly coming into its own as a district to watch.

Skyline ResidencesWith varied types of property available in this area, HDB flats, private apartments and also hotels, many are opting to buy or rent in this area to take advantage of its proximity and transport convenience. The Harbour Front MRT station and recently opend Telok Blangah MRT station have added value to properties in this area.

As there are no land parcels sold by the authorities in this area for H2 of this year, are property prices here expected to rise as more buyers lean towards surrounding districts and look for options in this district?

For the moment, the area is yet to be extensively built up, with only three condominium projects launched since last year – Foresta@Mount Faber, Skyline Residences and Harbour Suites. All three are expected to receive their Temporary Occupation Permit (TOP) between 2013  and 2015. Reflections at Keppel Bay is another major residential development to be launched within these two years.

19 Oct

Resale HDB flat prices still high

As low interest rates continue to flourish due to the monetary expansion in the US and Europe markets, Singapore’s home prices have continued to remain high. Thus the rise of resale HDB flat prices is still highly possible and the authorities are hoping that the property cooling measures will help stabilise the property market.

GreenTops @ Sims Place – one of the BTO flat launches in July this year.

The recent home loans curb are targeted at preventing ‘excessive speculation’, according to National Development Minister, Mr. Khaw Boon Wan. He has also said that the “acceptable resale index” depends on the global economy” and that “if prices remain unaffordable, that means people cannot afford to buy (property), then there will be no buyers and there will be no market”. The issue of singles being able to purchase new HDB flats directly from the housing board was also brought up.

Singles might be waiting to hear what criteria they have to fulfill in order to buy. What changes might this announcement bring to the constantly changing property landscape?

15 Oct

Property investment not as easy as before

For cash-rich property investors who have holding power, buying property right now might be a win-win situation. But for the other folks out there, its risky business.

City Square Residences at Kitchner Link used to go for $1000 psf in 2009. Now it is going for $1,600 psf.

In the 1960s, properties went for between $10,000 to $100,000. Now resale private properties are going for hundreds of thousands, and most of them crossing the million dollar mark. Landed property prices are going off the charts as well. In 2006, flipping properties within a few months and making back your downpayment amount of a few hundred thousand, if not more, kept the momentum going in the real estate market. Then came the 2008 crisis. Property buyers who dared to foray into the then-unstable property market might have made a tidy sum if they had been able to hold on to their properties, but now, making a 100 or 200 per cent upside is no longer a guarantee.

Need to live near schools along the Bukit Timah stretch? Units at Cascadia private condo apartments are available for rent.

As the government delivers on their promise to roll out more HBD flats and with new properties nearing completion within the next two to five years, another roller coaster ride might be in the the books. Instead of the fast lane, property investors might now have to take a slow but steady route – through rental. What this would mean is that investing in smaller units, or units which are easier to rent out in popular locations, could be the way to go. As long as Singapore remains a stable hub of trade and commerce in the region, the demand for rental units will exist. The motivation behind property investment decisions may need to change. Don’t hope for a windfall. Rather, give more thought to the type of property which will give you long-term returns.

11 Oct

More homes in Punggol

Waterbay Executive Condominium in Punggol will be open for applications from 12 – 16 October 2012.

Following news that Punggol‘s private residential development, Watertown, only has 34 units left for sale, are home buyers looking to snap up units at the up-and-coming Executive Condominium, Waterbay? Executive condominiums are one of the top options for Singapore home buyers as this hybrid property type can be placed on the open private property market in five year’s time. But the government is planning to roll out a record number of HDB flats and EC sites in the following months and there might be a tipping of the scale when all the units are completed. However, for buyers looking to secure a unit for their own occupancy, this could be a good for of investment.

Twin Waterfalls executive condominium in Punggol.

In addition, the focus on Punggol as a lifestyle enclave has been on the climb. Previous executive condominium launches in Punggol include Twin Waterfall. Will this new 383-unit project be oversubscribed this time round? Interested applicants should submit their e-applications between this Friday, 12 Oct and next Tuesday, 16 Oct.