New HDB flats in non-mature estate prove popular

BuangkokWOods1Usually it’s the new HDB flats in matures estates which receive the most applications. But in Wednesday’s launch of 4,841 new Build-to-order (BTO) HDB flats, it were the units in Buangkok woods in Hougang which caught the most attention. In the same launch were units in the mature estate of Tampines and also in the non-mature estates of Sembawang and Yishun. The price difference between 3-room HDB flats in the 2 estates differ by about $20,000 with those in Tampines starting from $202,000 and $185,000 in Hougang.

The lower prices may have been the deciding factor for HDB flat seekers. Units in Yishun were starting from $156,000. As of Wednesday evening, the Hougang flats were already seeing 6 applicants for every 10 units while the 2 projects in Tampines had 2 to 3 applicants for every 10 units.

ValleySpringYishunHDBIncluded in the launch were 2-room flexi flats, which are much sought-after by singles who are now allowed to purchase new flats directly from HDB but only in non-mature estates. As per other HDB flats, they have 99-year leases or shorter ones for the elderly. These popular property-types were almost completely subscribed for within the first day of the launch.

For young families and couples looking for a flat in mature estates, the next launch might prove worthy of the wait, with 2,910 units in popular HDB towns of Bedok, Kallang/Whampoa and Bidadari. The last on the list will probably be of most interest to buyers.

Applications for the current launch will close on Tuesday, 23 August 2016.

Resale HDB flat prices rise in July

Resale HDB flat prices have been stabilising for sometime now, and last month showed a 0.7 per cent rise in prices despite a fall in sales volume. Most buyers were in the market to take advantage of the lower prices, perhaps before an official market price-rise occurs. Three-room flat prices rose the most at 0.6 per cent, with five-roomers following at 0.5 per cent and 0.4 per cent for four-room flats.

HDB flat Jurong WestThe public housing market may be seeing some changes in August as 4,800 Build-to-order (BTO) flats are made available for application in Hougang, Sembawang, Yishun and Tampines which could direct buyers’ attention away from the resale segment. Buyers were mostly those looking for good market deals, and home occupiers might be more interested in the new HDB flats instead. The new executive condominium flats coming into the market may have also diluted interest for similar resale units as prices in this segment fell 0.4 per cent.

HDB SERS West CoastHDB is also revving up its Selective En Bloc Redevelopment Scheme (SERS) where 8 blocks in West Coast Road will be the next recipient of the scheme. Residents will be relocated to surrounding blocks and mature HDB estates will see improvements such as upgrading of toilets, lifts and installation of elderly-friendly features.

Property analysts are expecting the number of resale flat transactions to fall this month as the Hungry Ghost Festival begins, but prices are expected to remain level for the rest of the year.

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.

 

Singapore home prices remain muted

As long as the property cooling measures are here to stay and global economics remain shaky, home prices may hover at the current levels.

ArdmoreIIIAnd as the government continues to roll out more new build-to-order (BTO) flats while keeping the loan ratio capped at 30 per cent, demand for resale HDB flats may continue its lacklustre run. Although there was a 0.1 per cent rise in HDB prices in Q2, prices were mainly flat and private home prices dipped further by 0.4 per cent, that is following a 0.7 per cent fall in Q1. Some property players have viewed the private property market as possibly reaching the bottom of the cycle.

Since the last market peak in 2013, HDB and private home prices are now 9.8 per cent and 9.4 per cent lower respectively. There have been some signs of recovery in Q2 as private property prices in the core central region (CCR) rose 0.2 per cent. Developers have also been actively seeking out sales by offering creative payment schemes and keeping sales volume to a respectable level.

Considering the average length of a property lull being 8.4 quarters, this cycle may already have reached the end of its run. Will a prolonged cycle mean an even sharper and more drastic rebound when the measures are loosened? How will the market then respond to that and will there be any drawbacks?

Bukit Batok – Growing fame

The birth of a new town often means going through some growing pains, the largest factor being time. A township takes time to grow, to iron out uncertainties and for residents to grow familiar with their surroundings and to make the place home. But ultimately, more often that not, townships come into their own and begin to grow and mature into attractive and popular entities.

RegentHeightsBukit Batok is once such estate. Sharing district 23 with Choa Chu Kang, Diary Farm, Hillview and Bukit Panjang, there are areas of unfounded quiet, and yet with the bustle not far off with pockets of businesses just a short distance away. Catching such a growing township at the right time could mean more value for money in terms of property sizes and prices, with the light of promise not too far away as the township matures and more amenities, transport convenience and commercial opportunities arrive.

Some private condominiums already in her midst include Hillview Regency, Guilin View, Parkview apartments, Regent Heights and The Jade. Not to mention the abundance of HDB flats, some older resale units with considerable floor areas going for much less in comparison to similar units in older, more mature estates.

BukitBatokHDBAnd now with the Downtown MRT line in force, the Hill View, Dairy Farm and Bukit Panjang estates are just a quick 5 to 10 minute ride away, not to mention a much shorter travel time to the city centre. Are Bukit Batok properties ripe for picking?

High demand for bigger units in mature estates

Senja HeightsAccording to response from applicants for the latest HDB sales launch of BTO (build-to-order) and SBF (sale of balance) flats, bigger units in mature estates seemed to be most hotly contested.

3,770 BTO flats were rolled out in last week’s launch, with units available in Ang Mo Kio, Bedok, Bukit Panjang and Sembawang. In addition, 5,170 SBF flats were also available for selection across 29 HDB estates. The units in Bedok and Ang Mo Kio were most in demand as these mature estates have well-developed infrastructure and some buyers who have lived there most of their lives prefer to move within the estate.

bedoknorthwoods

Photo credit: HDB

Will this mean a corresponding demand for resale flats of similar size in the same estates? It is debatable as prices of larger resale flats have already been falling as demand waned. As the availability of new units direct from HDB, and options of going into the private property market beckons, HDB upgraders will have quite a few pros and cons to weigh. While private homes within the same price range may be quite a lot smaller, rental and future value appreciation of selected private properties may entice buyers. On the other hand, upgrading within the resale HDB flat market may get you a larger unit though not necessarily with future sale benefits. Rental demand however could still be high should the unit be near a MRT station, school or other amenities.

HDB’s May launch includes units in mature estates

bedoknorthwoodsUp to 8,940 new BTO (Build-to-order) and SBF (Sale of balance) flats will be made available in HDB’s latest launch. Most action may be seen in Ang Mo Kio and Bedok, both mature estates with well-laid-out amenities. Analysts are expecting subscription rates of up to 5 times the number of units available. The other estates with new BTO units available are  Sembawang and Bukit Panjang while SBF units are available in most other estates, numbers varying.

Sembawang East Creek1Without doubt, flats in mature estates tend to have a more established resale value. But Minister for National Development, Mr. Lawrence Wong, is encouraging young families to consider flats in non-mature estates, stating that “a ‘non-mature’ estate today can become a ‘mature’ estate tomorrow” as the government is working hard to instate regional commercial hubs, transport and other public amenities into these newer towns in order to connect the residents to the workforce better.

He cites the difference of up to $100,000 between a 3-room flat in Sembawang and a similar unit in Bedok. In fact, 2-room flexi units could be priced as low at $4,000 with grants taken into account. 2-room flats are now available for senior citizens and also singles, though the latter are only allowed to apply for those in non-mature estates.

AngMoKioCourt

Photos credit: HDB

Applications for May’s launch will close next Monday on May 30.

Shunfu Ville finally sold en bloc

After many turns in the collective sale route, the Shunfu Ville estate in Bishan has finally been sold en bloc. $638 million for 358 units. As one of the few remaining HUDC (Housing and Urban Development Company) estates in Singapore, this has been a long but fruitful wait for many of its owners who will each reap an average of $1.782 million from the sale. Back in its launch days, each unit was sold at approximately $230,000.

ShunfuVilleQingjian Realty (South Pacific) Group is the proud new owner of the estate. Though the price seems steep, the potential use of the plot of land this size is even steeper. The Shunfu Ville land area is almost equivalent to that of up to 3 similar land plots offered under the the government land sales programme.

Privatised in 2013, owners of the ageing estate have found maintenance increasingly difficult and expensive and 81 per cent came to an agreement to seal the deal last Thursday. The reserve price was lowered from $688 million to $638 million.

NaturaLoftMeasuring at 408,927 sf qt, Qingjian has plans to build up to 1,000 apartment units and a number of terrace-house units on this 2.8 plot ratio land. This may mean an injection of even more private condominium units into the Bishan and Upper Thomson districts. The developer also has another project, Natura Loft, opposite Shunfu Ville.