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.

Private property sales steady

Private property sales seem to be steady in the past months, though there has been a recent spike in July as a new condominium launch pushed numbers up. Post June-holidays sales could also have made up the rise in number of sales transactions, plus some buyers may be rushing to close deals before the Hungry Ghost Month.

High Park ResidencesThe recent launch of High Park Residences in Fernvale performed exceedingly well in July, with 1,169 units sold. The average selling price stood at $989 psf. Property experts put much of their success to their ability to put the finger accurately on the buyer’s pricing ‘sweet-spot’. Smaller units with more affordable quantum prices seem to be the way to go in the current market. A good 15 per cent of the units went for under $500,000 and a 388 sq ft unit even sold at $373,450.

Situated close enough to the upcoming Seletar regional hub, the popular condominium has 2-bedders sized at 570 to 732 sq ft and 3-bedders at 872 to 990 sq ft. Considering a 2-bedder deluxe unit goes for $650,000, prices are more than affordable for the average middle-upper-class Singaporean. Other properties which have sold well last month include Botanique at Bartley, City Gate and Riverbank@Fernvale.

Moving ahead, property analysts are expecting the new property market to quieten slightly, though activity may pick up in the executive condominium (EC) segment.

 

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.

Rising property market – Vietnam

With a communist government, most would not have considered Vietnam potential ground for a thriving real estate market. Their property market suffered a severe blow about 4 years ago when property bubble burst, leaving banks in debt and buyers and developers defaulting on their loans.

hungvietmoi

Photo Credit: Phuoc Thanh Construction

But 4 years on, the government has injected stimulus into the real estate sector of up to US$1.4 million and has also restructured their banking sector to ensure history does not repeat itself. In fact, they have gone even further to relax rules on foreign investment money coming through their borders. Foreign firms, individual buyers as well as Vietnamese who have left the country during the war in 1975 – the Viet Kieu, are now able to purchase properties in Hanoi. And response has been overwhelming. One developer, Vingroup, reported a whooping 112 deposits on apartments within 2 hours of their launches specifically targeting foreigners and Viet Kieu.

Most foreign firms are keen to purchase properties to house their foreign staff. Intel and Samsung, which are situated in the Saigon Hi-Tech Park, are just a couple of the many international firms snapping up properties. Average prices of high-end apartments in the southern commercial hub go up to as much as US$1,800 per sq m. In the capital, prices are around $1,600, a number familiar to the property players before the last housing crisis. With a market value of US$21 billion, Vietnam’s real estate sector still has a way to go compared to Singapore’s US$241 billion, but that difference could be what most attracts investors.

Weekend in the East – Pasir Ris

It’s almost the weekend. And when we think weekend, the mind often goes straight to the eastern districts with its breezy, relaxed atmosphere and sunny skies. Besides the popular East Coast and Marine Parade hot spots, there are also lots to see and do in the country’s edge of Pasir Ris.

The PaletteIn Malay, Pasir Ris translates to “White Sand” and this coastal town has long be lauded for its tranquility, almost like a secret tucked away in the quietest part of the island. But not to be mistaken for exclusion from the usual conveniences of city living, it is well-served by trains and buses and has a buzzing town centre and a few malls to boot. Add the revamped Lorong Halus Wetland, Sungei Tampines River and Sungei Api Api, Pasir Ris Park and it’s akin to having our own “The Hamptons” of our own. A countryside in an island city.

Private condominium apartments in this area include Seastrand, NV Residences, Coco Palms and The Palette. One of the latest executive condominium (EC) offerings, Sea Horizon, is also in its midst. With the infusion, of these private residential properties in the area, it is not surprising that HDB flats in the area and the surrounding district of Tampines are also gaining popularity with buyers.

 

Move further away for better property deals

No longer are buyers limiting their sights to properties in familiar districts or estates. They are now willing to move from one end of the island to another if the draw of a property and its potential value in appreciation is strong enough.

This could be certainly be seen from the weekend turnout at the High Park Residences launch. Situated in Sengkang, a district only a few were willing to move to a decade ago, the Fernvale Road show suite of this latest mixed-use development in Sengkang was swarmed with interested buyers from all over Singapore; a sign that buyers are now more savvy about property investment and keen on purchasing properties with long-term goals in mind.

High Park 2Previously monopolised by public housing, Sengkang is slowly rising up as a popular new town with young couples and families. Private condominiums have also entered the district with gusto and buyers are snapping up units at resale and new private apartments in the area. Some of the properties in the area include Riverbank, La Fiesta and Rivertrees Residences.

High Park Residences will boast a mix of commercial, recreational and residential units. Out of their 1,390 units, 1,100 have been sold, with all the one-plus-study, bungalow and commercial units snapped up. With the Thanggam LRT station and Seletar Mall nearby, it’s no wonder this new kid on the block was popular with buyers.

The many pluses of a Brownstone

Say Brownstone and most would think of the infamous (and also notoriously expensive) townhouses in America built in the 1800s.

But here in Singapore, a similarly named The Brownstone is a executive condominium (EC) in Canberra Drive. Response however was just as keen as it would have been if it were a brownstone townhouse in New York. Part of the attraction came from its proximity to the upcoming Canberra MRT station. Both the EC and the MRT station are planned for a 2019 completion date. The Brownstone will also feature a unique brown, sandstone-textured facade and jetty-like balconies.

The Brownstone ECThe 638-unit EC received 300 applications over the weekend of its launch and considering how the competition in the EC market has heated up since there are quite a few currently available for application in the market. Prices are expected to start at $599,000 for a 732 sq ft two-bedder to $1.3 million for a 1,711 sq ft penthouse. Other ECs launched recently include Westwood Residences on Westwood Avenue and The Vales at Anchorvale Crescent.

Buyers are often partial to executive condominiums as they are a hybrid between public and private housing, which means government grants can be applied to the initial purchases of these units, and after 10 years, they will become private properties. More often than not, their values would have appreciated by a considerable amount by then.