More for less – Smaller condo apartments

With the rising prices of land plots sold under the Government Land Sales programme and with developers taking into consideration how the property cooling measures have affected buyers’ purchasing power, private apartment sizes have been diminishing since 2010.

LakevillePhoto: Lakeville at Jurong West

More apparent in units in the city fringes, average sizes have shrunk from 1,051 to 810 sq ft. And in the suburbs, apartment sizes went from 878 sq ft to 811 sq ft; though the average sizes from new projects actually dropped from 1, 113 sq ft in 2006 to 667 sq ft in 2011 but rose again to 928 sq ft in 2014.

In 2012, the Urban Redevelopment Authority (URA) put in place guidelines for the maximum number of units for condominium developments outside of the central area. Developers have since noticed that buyers are more sensitive to the total quantum price of a unit rather than per unit prices, especially since the implementation of loan curbs such as the Additional Buyers’ Stamp Duty (ABSD) and Total Debt Servicing Ratio (TDSR), hence maximising the land area and total number of units would be the best way to go.

Symphony SUitesPhoto: Symphony Suites

There are some residential projects which chose to follow their own path however, including Lakeville and Symphony Suites. But as the population continues to grow, it seems that unit sizes will only continue to diminish. Resale units may then have an edge over the smaller-sized newer units, provided pricing is equally competitive when time comes.

Resale HDB flat prices hold steady

At this point of the property market cycle, prices holding steady could be a positive sign, indicating effectiveness on part of the cooling measures which did not crash the market but rather, merely realigned the prices gently. The change evolved over a long period of time, which is more palatable for sellers and the lowering prices may have also increased sales volume by enticing buyers.

BidadariPhoto credit: HDB

A 0.3 per cent fall in HDB resale flat prices indicate a slowly stabilising market. Although prices have been falling for 9 quarters straight, the last quarter showed the lowest rate of decline. In 2014, overall resale HDB flat prices fell 6 per cent. Industry analysts are expecting a smaller dip this year of 2 to 2.5 per cent. Some buyers may have been holding back on buying in the open resale market, in wait of November’s major launch of new Build-to-order (BTO) flats which includes prime units in Bidadari and Punggol Northshore.

Suburban resale private property prices are falling at a steeper rate of 1.3 per cent and if the prices fall even further and at a quicker rate than HDB resale flat prices, the gap between the 2 market segments will narrow. This could then draw a substantial pool of buyers from the resale flat market into the private property market, which could then give sales volume a boost and slow down the price decline in the private property sector.

Sims Urban Oasis

Photo: Sims Urban Oasis

Property developers are keeping a close eye on whether cooling measures will be adjusted, and pricing their units accordingly. We could also expect a more staggered schedule of new launches as developers become more careful about not cannibalising on one another’s market share. More so than before, it may be a matter of timing and opportunity.

Private property prices remain level

The NUS Singapore Residentail PRIce Index (SRPI) showed a 0.1 per cent rise in private non-landed home prices in September. But property experts say it could simply have been a post-election response, when buyers might have held back to see if the property cooling measures would be removed. Now that the authorities have indicated the cooling measures are here to stay, at least for now, some buyers may have taken advantage of the already-lowered prices and closed some transactions.

The Scala condo Serangoon

Photo: The Scala condominium in Serangoon

The resale private home market in particular has benefited from the lack of new property launches in September. Non-central units rose 0.3 per cent while smaller units gained a 0.4 per cent footing. But as 2016 brings an onslaught of completed new properties, the resale market may have to brace itself for a bigger hit. Industry players are expecting home prices in the non-central regions to continue on a downward trend as the number of completed units there rise. Leasing may also prove difficult as there will be a huge leap in supply while immigration policies are now tighter, which implies a lower demand.

While recent figures point to tenants looking towards to the central regions for leasing prospects, high-end properties may be hitting a wall in both sales and leases as competition has lowered rental prices in the suburbs and more tenants are seeking options there. The property market seems to be reaching a standstill as the year draws close and the festivities take over, the real time to watch the market might be the first quarter of 2016, which will set the tone for the year ahead.

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.

Property prices soften last quarter

Property market prices seemed to have fallen once again as Q3’s numbers show. Weaker market sentiments as well as a weakening rental market seem to have taken a toll on property prices and sales volume. Resale HDB flat prices were down 0.3 per cent and private property prices down 0.9 percent in Q3. In a year-on-year comparison, HDB resale prices have fallen 9.8 per cent and private property prices 8 percent since 2013. Property analysts have expected a drop in prices this year of between 4 to 6 per cent.

Queens Condo Stirling RoadWhile many private property owners may not yet be feeling the impact of the price decline, those who truly want to sell their property may be faced with the dilemma of dropping their asking price in order to close the deal. With more readily available industry information, buyers are now more aware of market prices and making more informed offers, which places the ball in their court.

The HDB resale flat market seems to be stabilising. Last month’s price decline is the smallest thus far, with the previous month seeing a 0.4 per cent drop. As most HDB flat buyers are able to service their loans using their property using Central Provident Funds (CPF), they may be less affected by a weakening economy and rising interest rates.

How the market fares moving ahead, will be largely dependent on the economy. The 1998 Asian financial crisis is a good reminder of how policies, jobs and industries are closely tied.


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?