Jurong Lake District – New sparkling Gem of the West

In less than 2 decades, the landscape of Singapore’s west-side could be said to be almost completely transformed. From the largely industrial factory districts to far-flung housing estates and only a few schools, new shopping malls, transport hubs, commercial and office spaces, private residential homes and spanking new build-to-order (BTO) flats now dot the scene.

Juronglakedistrict

Photo credit: URA

Jurong, once a busy but secondary commercial district, has been slated for development as Singapore’s second central business district (CBD). Every large city is almost certain to have one secondary commercial hub, as big and functional as the town-centre CBD, but newer and with more space for development. Just thing of Shanghia’s Pudong or London’s Canary Wharf. The Urban Redevelopment Authority (URA) is looking to transform the Jurong Lake District into a eco-friendly, futuristic township with homes, offices, hotels and filled with greenery and waterways.

LakeGrandeWith the Kuala Lumpur-Singapore high speed rail in its midst and as the convergence point of a number of new and existing MRT lines, there seems to be quite a far breadth for value appreciation of residential and commercial properties in the Jurong Lake district.

With Punggol and Jurong both set to include many good, new things may be coming the country’s way in the next decade or two.

Mixed use properties – Aiming for perfection in Integration

In the past decade, mixed-use developments have sprung up all over the island, in almost every township and with the most popular ones near town centres and transport hubs. As cities become more crowded and space scarcer, these all-in-one properties are finding favour with buyers and investors as rental yields are often considerably higher.

South Beach
Integrated developments consist of a mix of at least 2 uses – transportation, retail, commercial and residential. They offer the benefits of having conveniences at your doorstop and with an emphasis on a balanced lifestyle. Although it may seem like the lines are blurred, developers are clever about giving residents a sense of exclusivity and most mixed-use properties have their own residential parking area, driveway and serviced-lift lobbies.

Some of the more recent integrated properties include North Park Residences, Kensington Square and The Rise @ Oxley just to name a few. There are a growing number of integrated developments in the city centre as well, near the Central Business District (CBD) and Orchard road districts, including Scotts Square Residences and Icon condominium in Tanjong Pagar  Some older properties include serviced apartments connected to malls such as Far East Plaza and Liang Court. There are also quite a few massive integrated developments coming up in the next few years such as DUO Residences in Rochor road, Tanjong Pagar Centre and South Beach.

Icon VillageThough these properties do not come cheap, their potential is considerable and as Singapore progresses into the 21st Century with lesser available land area and increasing population, their value seem very likely to appreciate.

New home sales dip in June

June and July are traditionally slower months for the local property market as the school holidays are followed by the Hungry Ghost month. The lower numbers may also have been due to the lack of new launches.

Kingsford HIllview PeakLast month, only 536 new private non-landed units were sold, about 49 per cent lower than the 1,058 units clocked in May. Despite the huge fall in market figures, property analysts remain positive about the journey as numbers have reached a plateau and the fluctuations between quarters have been minimal.

Following the slew of cooling measures implemented by the government over the past few years, th market has cooled considerably. In a year-on-year comparison to 2015, the 536 units sold is 43 per cent higher than the 375 units sold last year.

Suburban homes were the best sellers in May, with developments such as Kingsford Waterbay, The Glades and Kingsford Hillview Peak managing to sell off some of their unsold stock. Median selling prices were at $1,185 psf, $1,402 psf and $1,315 psf respectively. In previous months, sales were largely  boosted by developers offering discounts, but the units sold in June were not heavily discounted, signifying the return of buyers to the market as they gradually come to realize that prices will not come down much more.

Treasure Chest EC holds treasures for buyers

Buyers flocked to the recent launch of the Treasure Chest executive condominium (EC) in Anchorvale Crescent, Sengkang. The gallery was swarmed with approximately 3,000 home seekers and with applications closing tomorrow, it is already 60 per cent oversubscribed by 6th July. About 48 per cent of the applicants were first-time HDB buyers while HDB upgraders made up the rest. A total of 800 applicants have thus far applied for the 504 available units.

Treasure Chest ECThe 99-year leasehold Treasure Chest EC, developed by Sim Lian, was launched on Friday, 1 July with units going at the average of $735 to $755 psf. There are a total of 535 units over eight 15-storey blocks, with apartment sizes ranging from 3-bedders to premium 3-bedders and 4-bedroom units as well. Temporary occupation of the well-situated EC is targeted for 2019, a plausible time for young couples and families with young children hoping to live near schools of their choice.

The units are fairly spacious, with premium 3-bedroom units ranging from 1, 075 sq ft to 1,249 sq ft being the most popular with buyers. The smaller 3-bedders are sized at around 958 sq ft. Developers chalk the overwhelming response up to the affordable quantum pricing scheme coupled with a good location. Treasure Chest EC is situated near the Sengkang MRT station and bus interchange.

Some of the other ECs recently launched include Wandervale in Choa Chu Kang, The Visionaire and Parc Life in Sembawang and Northwave in Woodlands.

 

 

 

River Valley’s properties peak

Just off the city centre, with a quiet and exclusive environment and a variety of hip and happening eateries, retail and office housed in quaint heritage buildings nearby, River Valley has always been a property hotspot for expatriates and young professionals.

MartinPlaceResidencesSo it probably comes as no surprise that developers were quick to bid, fast and furiously, on a GLS (government land sales) site in its vicinity. With the highest bid coming from Guocoland at $595.1 million or $1, 239 psf for the Martin Place plot which is situated near the upcoming Great World MRT station and promises to yield as many as 450 homes, this could be one of the highest bids for a land plot, aside from those on Sentosa. In January this year, a Siglap road condominium site was sold for $624.2million but that could yield up to 900 units, twice the number of units the Martin Place plot is capped at.

Confidence was likely to have been boosted by strong sales from the recent Cairnhill Nine launch. The area is peppered with a wide variety of private properties, including shophouses, older resale condominiums, newer developments and upcoming residential projects. Demand continues to be strong as rental prices become more competitive. Sales volume has always been on the rise, with 86 units sold in May this year, compared to the 15 units monthly average in 2015. Developers’ response to this land sale could be a positive indication of market confidence in recovery.

 

Money still to be made in property rental market

Despite falling property rental prices across the board as the market slump continues, home owners and investors are finding that there is still profit to be made in the home rental sector, at least earning them more than simply leaving their properties empty or waiting for money in the bank to earn them interest.

The AmstonA sudden and deep plunge in rents is quite improbable, and with slight adjustments of expectations, landlords will still find that there are tenants to be had in the current market. The median gross rental yield in May this year stood at 3.2 per cent, with median prices at $1,223 psf. Median monthly rents were down from $3.45 psf in April to $3.26 psf in May. The districts with the highest yields were 1, 2, 4,5 and 17 with the highest median prices at $1,960 psf in district 1 and 2 – in Chinatown, Raffles Place and Tanjong Pagar.

Property analysts are however expecting further reduction in yields as the foreign workforce plays musical chairs with the abundant number of rental units in the mark. Areas with fewer residential properties, such as in districts 1, 2 and where property prices are lower such as in district 17 (Changi, Loyang and Pasir Ris), rental demand tends to be stronger. Rents have however plunged in districts 20 and 8 of Ang Mo Kio, Bishan and Little india and Farrer Park respectively.

To buy or not to buy.

That is the question. When rental prices fall and rise according to property prices, which in turn are directed by local economies of scales and indirectly impacted by global economies and general market sentiment, that is often the question home-seekers ask themselves.

In the current market, is it wiser to buy or rent? Under what circumstances should you definitely choose one option over the other? Property analysts advice against renting while speculating on market direction as the uncertainties may not always work in your favour. Instead, the main factor should be whether renting or buying best suits your needs.

KembanganSuitesSingapore may very well be one of the cities in the world where most people own their homes. In many other cosmopolitan cities, rental is a more-than-common way of life. While renting may suit those who are not willing to be tied down by fixed monthly outlays such as mortgages, taxes and condominium maintenance fees, it also means that the money that goes into your rent does not ultimately accumulate into owning the roof over your head. There is also the danger of rental rates being raised and frequent moves.

Buying a property is not a small decision, and market advisors caution against doing so when you have not yet made sound financial calculations. The price differences in purchasing a freehold versus a leasehold property could also be considerable in the long run as most freehold properties tend to appreciate over time.  This then brings you to the considerations of when to buy and sell your property. While it is true that leasehold properties tend to depreciate, factors such as location and the competitiveness of neighbouring properties could also lend weight to the depreciation process, slowing it down considerably.

A resale private condo market respite

3 consecutive months of rising private non-landed home prices is reason enough for some mid-year cheer. Could this be a sign of respite from the recent property market lull?

GramercyParkProperty seekers and buyers who have been on the lookout for good deals and the right opportunity to jump back onto the property investment train have proven to be more active of late. Incentive schemes for various residential developments such as OUE Twin Peaks and Ardmore Three have also helped boost sales and prices. The former’s deferred payment scheme has received positive response from buyers, which ultimately translated to sales. The number of resale units sold in May rose by 36% with 840 units sold. 619 units were sold in April.

Prime central region properties are once again finding favour with investors as they view the potential value of the private residential properties here with new eyes. The next launch in the core central region (CCR) would be Gramercy Park luxury apartments by City Developments.

Property analysts are however cautious about their predictions for the rest of the year as the cooling measures will still mean buyers continue to be price-sensitive. They are expecting resale private apartment prices to fall 3 per cent across the board this year.