Poiz Residences – Poised for Potential

Come this weekend, another mixed-use development will enter the market and perhaps just in time to add some excitement to the year-end festivities.

With half of its units launching this Saturday, November 28, is the 731-unit condominium Poiz Residences developed by MCC Land. It is part of a mixed-use development that includes the retail and lifestyle-centric Poiz Centre. The project is situated in Myeappa Chettiar, just right next to the Potong Pasir MRT station.

poiz-img-001Photo credit: MCC Land

With the new Bidadari HDB estate coming up not far away, and schools such as St. Andrew’s primary, secondary and junior colleges nearby, the new private condominium may provide buyers with a tantalising option. Tentative completion date for the property is in 2019, which will comfortably coincide with that of the HDB flats in Bidadari.

Pricing of units at Poiz Residences are expected to be around the average of $1,380 psf with a good mix of 4 penthouses, 202 three-bedroom units, 52 four-bedders, and the rest made up of the highly palatable one- and two-bedders. With buyers now more akin to units with lower quantum prices, the latter might sell quickly.

MCC Land is hoping to position the mixed-use project as a mainstay of the Potong Pasir area, building it up as a central destination in the region.

Garden homes – New Bidadari HDB estate

Bishan was once set on cemetery grounds, but now it is a booming township with HDB flats, private condominiums, landed homes, schools, malls, libraries, sports complexes and MRT stations. Properties here are in high demand and HDB flat prices alone have blossomed more than thrice what their original owners purchased them for back in the 80s.

Bidadar HDB flat_EditPhoto credit: HDB

Thus the same fact that an all-new HDB estate, Bidadari, is built on a former cemetery site would probably not deter buyers, with this estate holding similar potential for growth. Besides a 10ha Bidadari Park featuring a new Alkaff Lake, named after the Alkaff family which built the Alkaff Gardens in 1929 which was closed after World War II, the area is also centrally located in Toa Payoh town which gives it the clout of good location and living environment.

Schools nearby include the Cedar Primary School and Cedar Girls’ Secondary School, and St. Andrew’s Primary, Secondary schools and Junior College.

Bidadari HDB flats 2

Photo credit: HDB

These new Bidadari HDB flats however may not come cheap, with prices about 20 per cent higher than other launches. For a gauge, a Build-to-order (BTO) launch at Punggol Northshore in May this year had four-room flats going from $284,00 to $350,000. There are 3 projects in the launch – Alkaff CourtView, Alkaff LakeView and Alkaff Vista.

Other BTO projects included in the launch are Waterfront I and Waterfront II @ Northshore and Northshore StraistView in Punggol, Hougang Rivercourt in Hougang, Fernvale woods in Sengkang, Teck Whye Vista in Choa Chu Kang and West Quarry in Bukit Batok.

Applications are open now till 26 November.

3 new MRT stations – Opportunity for property growth

76 Shenton
3 new MRT stations, part of the sixth phase of the Circle Line to be completed by 2025, have just been announced last week:

  • Keppel
  • Cantonment
  • Prince Edward

These areas are yet to be heavily populated, thus the breadth and depth for growth could potentially attract residential developers and commercial and retail businesses alike. These 3 new stations will link the rest of the island to the new Greater Southern Waterfront district under URA’s redevelopment and rejuvenation Masterplan which will take the place of the Keppel docklands.

Currently, residential areas in these districts are few and far in between. The nearest HDB area might be The Pinnacle @ Duxton and some HDB blocks in the Cantonment and Spottiswoode Park estates. The nearby Tanjong Pagar and Chinatown districts have already seen a positive revival with new apartment buildings and retail shops injecting some life into the previously sleepy region.

The Beacon

Some of the properties near the Prince Edward MRT station which will also benefit from the redevelopment of these districts include Spottiswoode 18, Spottiswoode Residences, The Beacon, 76 SHenton and Lumiere. Nearer the Keppel station, there are private apartment blocks such as The Pearl@Mount Faber and Mount Faber Lodge.

Developers and industry players are hoping this redevelopment project will revive property interest this region as sales have been a little quiet last year due to the property cooling measures.



500 potential new homes near Serangoon MRT station

Say Lorong Lew Lian and the name brings to mind the spiky durian fruit – but you might not be far off with the fruit metaphor as the site might yield a bumper crop of new homes in a few years’ time.

Bartley Ridge

Photo: Bartley Ridge

Hoping to plant the investment seed early, several property developers have already placed juicy bids for a 1.4 ha condominium site on Lorong Lew Lian. The top bid came from a joint venture between City Developments Limited (CDL), Hong Leong Holdings and TID at $321 million. The site could yield up to 500 new units in a 12 or 13-storey condominium project. The developers are old hands at building in this area, having already developed residential projects in the vicinity including Bartley Residences and Bartley Ridge. Sales at both properties have been more than positive, with Bartley Residences 100% sold and 99% of the units at Bartley Ridge snapped up.

As the authorities may not be releasing many more land plots anytime soon, putting in bids for tenders with good locations might be a good way to go. Despite recent concerns that an oversupply of homes might descent on the market as soon as next year, buyers may hardly tire of homes with good locations, near transport nodes such as MRT stations or bus interchanges and schools. This Lorong Lew Lian site is located near Serangoon MRT station and bus interchange and the NEX shopping mall. With the new Bidadari Housing Estate coming up along the North East Line, properties along this and the Circle Line are likely to enjoy some attention from property seekers.

Moderation of HDB flat prices modest

HDB flat prices rose 50 per cent between 2009 and 2013. With the property curbs in the last 3 years, prices have fallen 10 per cent. The government are considering the decline moderate and have mentioned that it is not yet time to completely reverse the process and policies despite recent figures showing a stabilisation of resale flat prices and a rise in sales volume.

Yishun HDB

Photo: HDB flat in Yishun

The most effective cooling measures thus far have been the 2013 implementation of the mortgage servicing ratio limit. The loan amount home buyers were able to take to service a HDB flat loan was capped at 30 per cent of their gross income. On top of that, there was a 60 per cent Total Debt Servicing Ratio (TDSR) which was also introduced in 2013 to prevent borrowers from over stretching themselves with the number and amount of loans payments.

Industry experts are mostly in agreement about a sudden and drastic switch in policies which back backfire on the industry and property market. But some have felt that certain measures such as the ABSD (additional buyers’ stamp duty) could be lifted in phases to encourage property investment. The current rule requires foreign property buyers to pay an additional 15 per cent of the price of a property here while Singaporeans have to do the same but at 7 and 10 per cent for second and third subsequent properties.

The new National Development Minister Lawrence Wong has however mentioned that adjustments may be possible, depending on global and local economic situations.


Maxing the potential of HDB Housing Grants

The General Elections of 2015 have brought about some changes in the local housing and property scene. With raised income ceilings for new flats and executive condominiums, plus a series of other adjusted or new housing grants, more HDB flat applicants are able to now secure a unit and at less by making use of these new grants.

HDB flats 10The new Proximity Housing Grant provides singles and families who are buying a resale flat with or near their married children or parents, with a respective $10,000 and $20,000 grant. Since its implementation on 24 August, 684 families and 53 singles have applied for the grant. Income ceilings have also been raised to $12,000 (from $10,000) for families and $6,000 (from $5,000) for singles. This means more would qualify for a HDB flat and the respective grants, possibly allowing some applicants who may have previously fallen just short of the income ceiling to now successfully apply for a unit.

Indirectly, this move may have also helped to boost resale transactions. As applicants who wish to live near their parents or married children may not be able to find a new flat within close proximity, especially in more mature estates where new flats are rare, resale flats may be their next best choice. With a combination of the Proximity Housing Grant and other CPF housing grants, what they may finally have to pay for a resale flat may be much more palatable.

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.

More BTO flats expected in 2016

2015 might have been the year the government slowed down the release of new BTO (Build-to-order) HDB flats to 15,000 as demand was deemed to have been fulfilled by the massive roll-out in the previous years; but 2016 might see a reversal as new National Development Minister Lawrence Wong announced last week that HDB will be building more new flats next year.

Clementi Crest HDB flat
Photo credit: HDB

Though the number of new flats will not be as massive in comparison to the 2011 to 2013 period when more than 22,000 flats were rolled out per year, the figure of just under 20,000 will still be considerable. This is largely to fulfil the increase demand that is expected to come with the recent policy changes. The income ceiling for BTO flat applicants have been increased from $10,000 to $12,000, which may mean that more families now qualify for a BTO flat. Add the new $20,000 Proximity Housing Grant which encourages families with parents or married children to live near to one another, and the numbers might increase significantly as well.

As the resale HDB flat market has only just stabilised after a year or so of declining prices, will this increase in HDB flat supply dampen the mood in the resale market? Probably not in the near future as demand for resale flats are still mostly in the mature estates, and most new flat owners are still serving out their 5-year MOP (minimum occupation period).

There will be a major sales launch of new BTO flats in November and the response to this will be used to temper the projection for next year.