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.


Has private property market reached stability point?

Has the private property market possibly reached a point of stabilisation? Figures of late seem to show that while there are slight fluctuations either ways of the scale, the market seems to have somewhat levelled.

Prices of completed private properties seem to have stopped declining and August showed a only a 0.6 per cent fall according to the Singapore Residential Price Index (SRPI). Property analysts have put the slight decline mostly to the increase in completed units in the central regions, the possibility of buyers waiting for post-election policy changes, and the lull in property transactions in the Hungry Ghost month.

Stevesn SuitesSmaller apartment units seem to have fared well though, with prices rising 0.5 per cent in July. Vacancy rates of rental units have risen while rental rates dipped island wide. As long as foreigner labour and immigration policies remain tight, the leasing market may remain weak, especially as the number of completed units are rising in the next couple of years. Resale properties in districts 1 to 4 and 9 to 11 have suffered a hit with a 23 per cent fall in transactions in August.

The next 2 years might be a time to watch for small apartments under 506 sq ft which were purchases for investment purposes. While sellers may not yet be pressured to sell as interest rates now remain low, as the number of these units rise upon completion of many developments launched last and this year, and interest rates fluctuate, the situation may be different come 2017.



The Criterion EC in Yishun

One of the latest executive condominium (EC) offerings certainly meets quite a lot of criteria for a good property. The Criterion EC in Yishun, jointly developed by City Development Limited and TID private limited, is set to yield 505 residential units by 2018.

TheCriterionThis new EC will feature units will range from two- to five-bedders and exclusive penthouses which offer scenic views of the golf course at Orchid Country Club or the Lower Seletar Reservoir. This new development will also offer flexi-units which allow buyers to select a room configuration that best suits their needs. Plus, a high percentage of the units will also have the optimal north-south facing orientation which most home owners look for to avoid the heat from the rising and setting sun and also allows for natural ventilation.

Its location also puts it in close proximity to the Yishun MRT station and bus interchange, the up-and-coming Northpoint City and a good number of schools, not to mention the Yishun Sports stadium and Sports Hall. Medical facilities in the vicinity include the Khoo Teck Puat Hospital and Yishun Community Hospital.

Buyers looking to book a unit can first view the show flat daily from 10am to 7pm, located near at the end of Miltonia Close. They will also be interested to know that The Criterion is the first EC to offer a microbubble spa from Japan aside from the range of more than 50 facilities promoting varied lifestyle activities such as yoga, cycling, swimming, starlight dining and community farming. How’s that for a modern living microcosm for you?

Competition heats up in suburban rental market

As the number of new condominiums reaching completion in the suburbs increase, more owners and landlords are feeling the heat of the competition, especially if many units within the same establishment are in the market for tenants.

Tenants are becoming more savvy and picky with their rental choices, and are more aware of the choices and rental prices available. Though rents are not dipping anytime yet, competition may eventually push it downwards. Older resale condominium developments may also feel the squeeze more as proximity no longer plays a part in differentiating rental prices. When placed near each other, newer private apartment units will command higher prices in comparison, as their facilities are newer and may need lesser maintenance.

WaterfallGardensThe size of the property will then come into play. Smaller suburban developments without amenities at the scale at which larger establishments offer may lose out slightly. At D’Leedon for example, rental prices were at a monthly median of $4, 288 whereas at the nearby older Waterfall Gardens, median prices were at $8,600 per month. That could however be due to the larger apartment sizes of units at Waterfall Gardens, which does not have smaller studio or one-bedders.

With diminishing expatriate housing budgets, landlords may be looking at tenants with the spending power of $3,000 to $6,000 per month. But as centrally-located apartments have rental price tags closer to $10,000 per month, suburban units may still garner some attention. It may merely be a matter of how thinly spread out the tenant pool will be.

Private property market – The road ahead

The outlook for private properties seems a little vague for the moment. Though the market seems to be enjoying a respite, with prices maintaining its current level, and prices have risen slightly over the past two months, property experts are expecting an overall fall of 3 to 4 per cent in the Singapore Residential Price Index (SRPI) this year.

Buyers looking out for good deals are picking up units across both the central and non-central regions. Recent increases in the SRPI could be due to the rise in number of transactions especially in the central regions with 0.6 and 0.2 per cent increases in June and July respectively.

WoodhavenThe rental market, however, has remained weak, especially in the suburbs. And as rents begin to fall in the central regions, many tenants are making quick comparisons and opting to move into more centrally-located properties instead. For example, a private 2-bedroom condominium unit in Woodlands is being rented out for $2,000 a month, which is comparative to leasing a 3-room HDB flat.

But for buyers and investors who are considering purchasing private properties, investing in bigger resale or new properties may be preferable as smaller units will be facing fiercer rental competition once many of these units reach completion next year.

Property – To buy or not to buy now?

Since the implementation of property cooling measures by the government agencies, property prices have fallen at a gradual pace and seem to have currently reached a plateau. Some may have been waiting for an opportunity to hop into the property buy-sell train, but others may be concerned about whether they should sell now or later.

How do you decide if the time is now or later?

The WaterlineThere are a few fundamental questions to ask yourself:

  • Need or want?

Of course, owning a home of your dreams is the ultimate desire for most. And so it is a want. But you will need to evaluate your situation very honestly – do you absolutely need a new place? Or could it wait? Are you hoping to merely flip a property for profit, or have the ability to hold out for the best deal? If you answer is “Need”, then you have to a few other considerations to take care of.

  • What’s in the piggy bank?

Do you have enough left in your savings and monthly earnings, after setting aside sufficient funds for your monthly bills, every day expenses and insurance to manage the risk of buying a home? Besides having enough to make your monthly mortgage, most people may not realise the need to have an amount within your savings for very real and unforeseen situations such as periods of unemployment or health issues.

  • Are there advantages or pros? 

Is the price on the property you are hoping to buy right? If there is room for negotiation, which is why an experienced real estate agent is a boon, and the mortgage calculator helps you compare rates and tells you that the interest rates are prime, then perhaps the time truly is now.

Singapore – An Island city and her Sea view homes

With Singapore being a island city, it is no wonder properties with a sea view, or better still, just next to the sea, are a popular choice. Some of the more common spots for these seafront properties include Pasir Ris, East Coast, Keppel Bay, Sentosa and though not as common – Sembawang.

Bunglows By the Sea Wak HassanPhoto Credit: Fragrance Group

Not as well known as the other districts, Sembawang is a well-kept secret on the Northern end of the island. The Sembawang park area overlooks quiet stretches of the sea and the Johor Straits. Perhaps its distance from the city centre has deterred some buyers from calling this area home. But those who have since bought properties in district 27 have many good things to say about it.

It is quiet, hence provides a sense of exclusivity, where the view seems like it is almost all yours. Landed homes in the Bungalows By The Sea in Wak Hassan Drive have yet to be fully sold despite landed property prices having fallen in recent times. Prices of a bungalow here is at around $610 psf for the built-up area. But land sizes are big, thus the price of a bungalow here could come up to $6 million. The other landed properties in the vicinity include The Shoreline Residences which have been fully sold.

Next up - The Nautical in Sembawang.

The Nautical in Sembawang.

Nearby, there are private non-landed properties for sale, including The Nautical and Skypark Residences which is an EC (executive condominium). Will Sembawang become the next seaside town to watch? Perhaps so, though it will take some time to fill it with amenities and residents. But the wait might very well be worth it.

Resale property prices slide further

The private property market seems to be going the way property analysts have predicted in the beginning of the year. Over the last 6 months, prices of completed private property have fallen 1.9%. The steepest fall was in the beginning of 2014, at 3.7%. Though the decline has continued, the fall has been lighter in the quarters following.

Maysprings condoSince the implementation of the Total Debt Servicing Ratio (TDSR) in June of 2013, property prices have fallen at varying speeds over the past 2 years. A total of 42,606 new homes are expected to be ready for occupation within these couple of years and up to 96 per cent of the land sold this year are expected for future non-landed homes. It may become a tussle for prices and buyers, between new and resale properties.

As rental demand also continues to dip, prospects for the property market seems to have dimmed slightly, though select properties will still hold potential. Property experts have explained that the dip in prices in the resale market may have been due to the ability of individual to be flexible with prices. New properties which are being sold by developers have the means to stick to their guns in terms of pricing. The scale for rental supply and demand is likely to continue leaning towards the former.