HDB resale flat market stabilising

While last month’s price decline in the HDB resale flat market may be slight at 0.3 per cent, a quick rebound may yet to be. Minor fluctuations may still occur, but prices seem to be stabilising. The number of flats changing hands also seem to be on the increase, up 3.9 per cent from August.

Punggol HDB EstateThe property cooling measures however continue to impact the property market with falling prices and sales volume in the private property market. While the effect is less apparent in the HDB resale market, prices have gone down by 8 to 9 per cent since its peak in 2013. Property analysts are expecting more gradual fall for the rest of the year, at a less-than-1 per cent monthly decline.

November’s mega-launch of 12,000 BTO (Build-to-order) flats may however take a toll on the resale market as buyers may hold back on buying from the resale market. On the other hand, most recent policy changes in public housing may also help buyers qualify for and attain a resale flat more easily. Income ceiling for resale flats have been raised from $10,000 to $12,000 and families who wish to purchase a resale flat near their parents or married child can apply for a $20,000 proximity grant.

The resale market has take some time to cool, but considering it has fallen from its 3,649 units sold in May 2010 to 1,504 in September 2015, all eyes and ears may be on when the authorities are likely to relax the property cooling measures.

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.


Demand for EC units slowing down

The Executive Condominium (EC) market seems to be facing some resistance from buyers. The pricing sweet spot in recent launches of Signature @ Yishun and The Criterion seem to be around  $750 to $780 psf respectively.

The most recent public housing policy changes include a higher income ceiling of $14,000, up $2,000 from the previous $12,000 for ECs. This may have an effect on the crossover pool of buyers who may well be able to afford private condominiums and may weigh in their options between both housing types. 20 per cent of the buyers for Signature @ Yishun fell within those with monthly household income above $12,000. Though more significant impact probably comes from the Mortgage Servicing Ratio and other loan restrictions.

Signature@YIshunThe Criterion is a 505-unit development built by City Developments and Signature at Yishun, a 525-unit project by JBE Holdings. That may also have thinned out the demand a little, as both are situated in Yishun and there are many points for comparison. Buyers may also be holding out in wait for the massive 12,000-unit BTO launch in November.

Although the sales may not be as fast and furious as before, with units being sold out within the launch period as buyers now tend to take their time in making comparisons and coming to a decision, the response will still be comparable.

Upcoming EC launches buyers can look forward to include Wandervale in Choa Chu Kang Drive and Parc Life in Sembawang.

HDB’s new sustainable homes

Mention public housing to non-Singaporeans and they may baulk at the idea of living in one as it usually means rundown, cramped living spaces in sometimes unsavoury neighbourhoods. But Singapore can be said to have made its global with the standards of public housing, in which most of Singaporeans now live.

The Housing Development Board (HDB) has begun humbly but continued to strive in improving the standards not only of homes but of living in Singapore’s many HDB flats and neighbourhoods. They launched a Roadmap to Better Living in 2011 and in it, are plans to include building eco-friendly and sustainable homes and communities; to bring a complete live-work-play-learn environment to residents.

In their HDB Awards this year, a few winners stood out :

SkyTerrace@DawsonAs part of HDB’s Remaking Our Heartland (ROH) plans, SkyTerrace@Dawson stands in one of the first mature estates to benefit from the board’s rejuvenation efforts. It in infused with roof gardens, sky terraces and incorporates a “loft concept” in units under the multi-generation living scheme. These unique units with their high ceilings and full-length windows will take you to cosmopolitan cities of Manhattan and the likes. Its prime central location near town and good schools are definitely a plus as well.

Or perhaps it’s waterfront living you prefer? Waterway Woodcress in Punggol is built right next to the Punggol Waterway and features unblocked views, a garden plaza and communal spaces, amidst hidden carpark facilities and recycling amenities such as a rainwater harvesting system which is used to wash corridors and for irrigation. Further down south into the centre of the island, is Hougang Capeview which also boasts waterfront views. It stands between Sungei Serangoon and Sungei Pinang, and is accessible to MRT stations such as Sengkang, Hougang and Kovan.

As HDB continues to roll out its roadmap, Singaporeans can look forward to better homes and public housing lifestyles in upcoming launches in Punggol Northshore, Bidadari and Tampines North.

More launches ahead in the North-West

August proved to be a slow month for the private property market as the lack of new launches and the Hungry Ghost month made a tiny bump numbers-wise.

The number of homes sold were similar in a year-on-year comparison with 2014, and while it is comforting to know that the numbers are level, the overall primary sales figure of 7,400 units sold last year is below the ideal 10,000 to 12,000 units per year primary sales volume. The resale private property market is largely dependent on the primary sales market thus home sellers as well as developers are all hoping for more vibrant sales of new properties.

PrincipalGardenThe last quarter of the year may be more promising as there are a number of new launches coming up. This includes Principal Garden in Prince Charles Cresent, and a slew of executive condominiums (ECs) in the North and North-west, namely: Signature @ Yishun , Wandervale in Choa Chu Kang, The Criterion in Yishun and Parc Life in Sembawang.

The most recent EC launch was Sol Acres in Choa Chu Kang. So far, 259  units have been sold at approximately $787 psf. Despite the recently-announced increase in income ceiling for EC applicants from $12,000 to $14,000, the uptake for EC units seemed to have stalled somewhat, with an increasing number of units unsold.

Property analysts are chalking this up to a lull month, the location of the properties, tightening loan limits and the developers’ track records. But will the upcoming EC launches fare better?

Signature @ Yishun – New Executive Condominium launch

With crowds flocking to the show flat of the new executive condominium (EC), Signature at Yishun, it could be sign Yishun will be seeing a potential rejuvenation. This district will already have a new private condominium Northpark Residences, interconnected with the Northpoint Shopping Centre and bus terminal ready by 2018.

With the recently announced raise in income ceiling to $14,000 for EC applicants, it will not be surprising if this new launch, the first EC to be launched after the change, draws a high number of applications. Applications are open till September 20.

Signature@YIshunPhoto credit: Executivecondominiums.sg 

Situated in Yishun Street 51, the 525-unit Signature @ Yishun EC will be quite near the Orchid Country Club and Lower Seletar Reservoir. Developed by JBE Holdings, which also has The Amore and SkyPark Residences executive condominiums under their belt, the new Signature EC will feature three- and four-bedroom units ranging from 764 to 1,302 sq ft. If prices of their previous EC launches were anything to go by, pricing of units at Signature will be around $800 psf or higher. Just next to this new EC project, another plot of land will also feature an EC by City Developments which has yet to be announced.

Yishun truly looks like it will see quite a bit of activity in the next decade or so. Will HDB flats in the district also enjoy the spillover benefits?

Waterfront living in public housing 

Not only do exclusive private mansions, bungalows, landed properties and condominium apartments or penthouses have waterfront views, public housing now offers such options, especially in the form of executive condominiums (ECs).

These hybrid property types begin their journey as public housing eligible for application under the Housing Development Board (HDB), and after 10 years, they become private condominium apartments, enjoying the benefits and price tags of private properties in the market. When they come with waterfront views and lifestyles, all the better.

Bellewaters ECA few of these EC properties include Bellewaters, and one in Punggol aptly named Waterwoods. Both situated in the new towns of Sengkang and Punggol, they seem targeted at young families and families who are looking to relocate or upgrade. With a projected temporary occupation permit (TOP) acquirement date of 2017, and now the raised income ceiling from $12,000 to $14,000 for ECs, it could be the prime time to seek out a good unit in potential EC developments. A bonus point for Bellewaters is that it was launched before 2013, thus the resale levy which is levied on home buyers who have previously bought a HDB flat or have taken a CPF housing grant does not apply here.

Waterwoods Punggol ECThere are big things planned for the Sengkang and Punggol HDB estates in the next couple of decades, including a North Coast Innovation Corridor with the Seletar Regional Centre and Seletar Aerospace Park in its midst, as well as the Punggol Creative Cluster and Learning Corridor which includes The Singapore Institute of Technology and links to the Punggol waterfront. The Punggol Waterway is also set to be a hub of commercial, retail and recreational activity.

Transport, though slightly lacking for now, will no doubt improve in time to come, and the new townships will have immense potential for growth.

Will new housing policy changes raise HDB flat prices?

With the upcoming General Elections in play, the government as announced a number of changes in HDB housing grants and income ceilings. How will this change the resale HDB flat landscape? Will more be going for new HDB flats or be seeking out resale flats in mature estates to take advantage of the proximity grants?

A summary of the changes include:

The BrownstoneThough it may seem like buyers may be more keen to purchase resale flats especially in mature estates, property analysts are more prudent with their predictions, stating that as long as the cooling measures are in place, demand may maintain its current level. Sellers may be able to command slightly higher prices in more popular estates, but the rise in prices will be slow. Buyers are negotiating for prices closer to median prices or recent sale prices.

The number of flats sold last month had dropped by 6.8 per cent, partly due to the Hungry Ghost month when buyers hold off purchasing properties. Prices of four- and five-room HDB flats have however risen by 0.3 per cent while three-room HDB flat and EC prices dipped by 0.7 per cent.