Resale HDB market looking at a year of stabilisation

Transaction volume and prices of resale HDB flats dipped once more last month, following a rise in November. Prices of resale HDB units fell 0.3 per cent in December and 13.9 per cent fewer transactions were recorded in midst of the usual year-end quiet. A total of 1,364 resale flats were sold last month.

bishanloftecLarger units such as the executive flats and 5-room flats saw a bigger price decline of 0.9 and 1 per cent respectively. Prices of rarer 3-room and 4-room units dipped only 0.1 and 0.2 per cent. The steeper decline for the bigger flats could be due to declining private property prices, which may steer some buyers towards that direction. Smaller HDB flats are priced much lower than the same in the private property sector, thus the pool of buyers for these units are considerably more stable though now that singles can apply for 2-room flats directly from HDB, the pool could have diminished slightly.

5-roomhdbPrices of resale HDB units in non-mature estates fell the hardest at 1.2 per cent year on year, possibly due to competition from the rising number of private residences in the suburbs. In mature estates on the other hand, prices have risen 1 per cent. Overall, with prices fluctuation within the 1 to 2 per cent range, analysts consider the market stabilised after years of gradual decline since 2013. The market could be reaching a zero per cent change soon and with the current market levels remaining unchanged, buyers are beginning to take the opportunity to snap up units in the resale market when a suitable deal comes up. Resale transactions may rise up to 15 per cent this year.

Raised income ceiling for HDB grants – Help or Hurt

The income ceiling for the application of HDB grants was raised last year, and till date, the policy change has helped more than 1,500 household secure new or resale HDB flats. Previously, the income cap was $12,000 for executive condominiums, $10,000 per household  or $5,000 for singles. Following the adjustment in August last year, the income cap is now $14,000, $12,000 and $6,000 respectively.

Westwood ResidencesThe Housing Board has cited rising income and an increased demand for public housing as push factors for the change. Some property experts however feel that the move has hurt the private property market as these are potential private property buyers whom the market may have lost out on and whom may have cost taxpayer’s more burden. However, these buyers could also have been sandwiched between the public and private housing markets, unable to afford the latter nor the former without a CPF housing grant.

From the 11,833 new HDB flats and 6,464 resale flats sold within the last year, about 5 per cent and 15 per cent of the purchases would not have been made prior to the income ceiling revisions. The last time the income ceiling was raised by $2,000 was 5 years ago in 2011. The question remains if it is a matter of eligibility or affordability of existing public housing units which detracts a possible remaining group or groups of buyers who may still be unable to purchase resale units despite securing all possible grants.

 

Properties up north gaining popularity

Up north in what was once woodlands is the growing township of well, Woodlands. The estate is groomed to be to the next Regional commercial and business hub where HDB flats, private condominiums and industrial buildings and regional offices reside, all in this area so close to our neighbouring Johor Bahru and where this rural outpost used to be densely populated with only rubber trees.

BellewoodsECTogether with the Seletar Regional Centre and the Punggol Creative Cluster, the Woodlands Regional Centre will form the North Coast Innovation Centre. The region will be efficiently serviced not only with the Woodlands MRT station and bus interchange, but also the upcoming Thomson-East Coast Line which is prepped for operation as early as 2019.

Some of the condominiums which have come up in Woodlands include Northoaks, The Woodsvale and the Bellewoods and Northwave executive condominiums (EC). The latter two being ECs, are rather prime properties as they hold the benefit of being both public and private housing,  Bellewoods EC, situated at the intersection of Woodlands Avenue 5 and 6, do not lack in the suite of amenities and facilities of any other private condominium. It has a clubhouse, indoor gym, tennis court, swimming pool, playground, jogging trail and waterside dining pavilion.

NorthwaveECAwarded the Highly Commended Best Executive Condo Development (Singapore) at the Southeast Asia Property Awards and with a TOP (temporary occupation permit) date of 2017, the 99-year leasehold EC consists of a mix of 2- to 5- bedders in all its 561 units. As it was launched prior to the resale levy rule implemented in December 2013, buyers who have previously purchased a subsidised HDB, DBSS or EC flat are also exempt from paying a resale levy which could be a huge plus as it could save them up to $55,000.

CDL reports positive growth despite property lull

With a whooping 60.1 per cent spike in net profits in the third quarter, City Developments (CDL) seems to be shaking off the market gloom early. Their Q3 net profit rung in at $170.3 million.

gramercyparkPositive public response and strong sales from their properties, both local and international, have contributed to their recent success. At their latest launch, Forest Woods condominium, sales have hit the 70% mark at the considerable price of $1,400 psf. The project has a total of 519 units. They are fully sold at their 616-unit Jewel@Buangkok condominium development and almost all of its 40 units released at the 174-unit Gramercy Park have also been snapped up.

At the 944-unit Coco Palms condominium in Pasir Ris and the 638-unit The Brownstone executive condominium in Sengkang, they are also 91 and 80 per cent sold respectively. Such promising numbers considering the current global economic uncertainty will put them ahead of their competitors and help them pave a strong foundation for the journey ahead.

The Brownstone ECCDL also has properties overseas which are doing well, including the Hanover House project in Reading, Britian. The group is also expanding their suite of investments into other areas such as hotel operations, investment properties and management. Moving forward, investors can looking forward to more international properties being added to the list of potential investment opportunities.

New executive condominiums still in demand

There has been an increase in the number of executive condominium (EC) units this year, as pent-up demand is satiated by new EC launches in the first half of the year.

Parc Life SembawangDespite the rise in supply, Fraser Centerpoint Limited’s (FCL) launch of Parc life has no doubt been met with renewed interest as more young married couples and families look to these private public housing hybrids as a potential start to their future investment. 

After a 5-year minimum-occupation-period (MOP), their values often appreciate considerably, and after a 10-year period, they are privatized and their values can rise further, especially if they are in popular districts or near schools or MRT stations. Situated in Sembawang just 5-minutes by foot from Sembawang  MRT station, bus-interchange and Sun Plaza and overlooking Canberra Park, Parc Life EC’s units start at $770 to $800 psf and feature condominium facilities such as an infinity pool, tennis courts, spas and even a pet grooming pavillion. 

All of the 628 units are spread out between 3 blocks and unit sizes range between 980 to 1,055 sq ft 3-bedders to 1,281 sq ft 4-bedders and 1,550 sq ft 5-bedders. The other EC in Sembawang which was launched recently is The Visionaire, and for looking at the response, the EC market looks set to continue its good run well into the year.

 

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.

 

 

 

Would you Woodlands?

Woodlands – This may have once been a forested area but now many call it home. Including the estates of Marsiling and Admiralty, Woodlands has HDB flats, executive condominiums (ECs) and private condominiums in its midst, not to mention a bustling regional commercial hub.

BellewoodsECSome of the condominiums standing in the district include La Casa, Woodsvale, Northoaks, The Tennery and Woodhaven. If it’s an EC you are looking for, the estate also has Bellewoods, Forestville, Twin Fountains and soon, Northwave to offer.

Under the URA Masterplan, a new Woodlands Regional Centre will feature easy and convenient links to Malaysia and also more than 700,000 sq metre of commercial spaces. New industrial spaces will also mean more jobs for the residents of Woodlands and could also translate to higher demand for rental and sale properties. The Woodlands North Coast is also in the works, aiming to bring greenery and waterfront living to the region.

woodlandsNCPhoto credit: URA

Bellewoods, an award-winning EC on Woodlands Ave 5, is one such project. It aims to bring the tranquility of green-living into the residence, with modern-day conveniences such as the woodlands MRT station and Causeway point shopping centre just next door. Developed by Qingjian Realty, Bellewoods is slated for completion next year and as it was launched before the resale levy rule was set, buyers are able to save up to $55,000 for an EC unit.

It’s an EC world

Executive condominiums are some of the hottest properties on the buying public’s radar this year. These rare hybrid private-public homes straddle the 2 markets in the best way possible. While they begin their journey as public housing, thus allowing qualifying buyers to make use of government subsidies and loans to secure a usually cheaper-yet-comparable alternative to private condominium units, they graduate after 10 years to the private property market and their values more often that not appreciate considerably.

WandervaleECOne of the first ECs to be launched this year include Wandervale and The Visionaire. The Parc Life will soon be launched. Even though the nearby 1-327-unit Sol Acres EC might have been competing for buyers , 320 out of the 534-unit Wandervale EC in Choa Chu Kang has been sold.  Most of the units popular with HDB ugpraders and young families were the 4-bedders. 82 were sold in total. Prices averaged at $755 psf with a 3-bedroom apartment starting at $655,000 and the larger 4-bedders going for more than $896,000.  The Wandervale’s proximity to the Choa Chu Kang MRT station could have added to its popularity.

Besides The Parc Life, other EC launches in the works include Treasure Crest in Sengkang, Northwave in Woodlands and another in Choa Chu Kang.