Consumer awareness crucial for property industry

The local property industry landscape has been changing quite a bit over the past few years, in particular for the consumer. The authorities have been working on transparency and consumers now have more information at their finger tips, and perhaps even more as net prices of de-licensed projects’ will soon be available as well.

singapore-property-authoritiesCurrently, the Housing Development Board (HDB) and Urban Redevelopment Authority (URA) both provide property statistics and data on their websites. The Singapore Residential Price Index (SRPI) by the National University of Singapore (NUS) Institute of Real Estate also provides month-on-month transaction-based information for private non-landed residential properties.

ardmorethreeThere are however some caveats to take into consideration. URA’s quarterly price index for example, does not include the discounts and incentives which developers sometimes provide. Only the net-price will be recorded, thus consumers will do well to take this into consideration when viewing statistics and median monthly transaction prices. The change will take effect this month, which means the price index may have some downward pressure put on it as current figures may be inflated. De-licensed projects which have obtained their Certificate of Statutory Completion and thus do not come under the Housing Developers Rules, such as OUE Twin Peaks and Ardmore Three, are known to provide incentive schemes to their buyers such as 15% discounts and Additional Buyer’s Stamp Duty (ABSD) rebate.

A recent case of a property agent who handled and misappropriated cash handed to him by his client also brings to light that consumers may not be entirely aware of what they are entitled to or what their agents are allowed and disallowed to do. In brief, it is against the law for property agents to handle any cash on behalf of their clients.

Tengah – HDB’s future model estate

There was Punggol, then Bidadari, and now Tengah. It looks ike HDB has big plans for the decade ahead and with 30,000 new BTO flats and 12,000 private homes in the pipelines, this new HDB town estimated to be the size of Bishan, will be setting new heights for future HDB estates. Though the new flats here will reach only a maximum of 15 storeys due to its proximity to the Tengah military airbase.

tengah-new-town

Photo credit: HDB

HDB is developing Tengah according to the government’s green and sustainable-living dictum, with a 700ha forest fringe surrounding the estate and a 5 kilometre forest corridor linking the town to the island’s western and central catchment areas. Living with nature will be the focus of this new township, it will also feature a host of community fairways, gardens, green play areas, walking and cycling paths and a car-free town centre.

hdb-bto-flats-roh-programmePhoto credit: HDB

The first of the Tengah flats to be launched will be in 2018 and transport-wise, the Jurong Region Line which is to be completed within the next decade, will be the town’s main connection to the rest of the island. The eco-friendly township will consist of 5 districts, namely – Park District, Plantation District, Garden District, Brickland District and Forest Hill District. Each district will be differentiated distinctively while still incorporating green features. The idea behind this is integration instead of replacement – keeping the identity of the current scrubland that Tengah is, spanning Jurong East, Choa Chu Kang and Bukit Batok.

Resale HDB flat prices fall in August

Photo credit: HDB

Photo credit: HDB

Rather than a market rebound, the HDB flat market may have to be content with stabilising prices and sales volume. August saw a 0.7 per cent dip in resale flat prices, led by a 1 per cent fall in 4-room flats, over the past 3 months after a slight rise in July. 3- and 5-room resale flat prices also inched down 0.6 per cent while executive condominium (EC) prices rose 0.8 per cent. The price drop is seen in both mature and non-mature HDB estates.

The Hungry Ghost month may also have had something to do with the drop in sales prices as buyers tend to hold off buying during that month though units with lower selling prices may have transacted hence pulling the average median prices down slightly. Since the market peak in April 2013, HDB resale flat prices have since fallen 11.5 per cent.

Photo credit: HDB

Photo credit: HDB

Property analysts predict a level market for the rest of the year, with price sustainability at best and as long as the economic forecast remains unclear and overall property market sentiment weak, any price rebound will be unlikely. Sales volume has however been rising, a promising sign, though as more new HDB flats reach completion within the next couple of years, more flat owners will be pushed to sell within a specified time period and competition may once again push prices down.

Sustainable and Community-focused projects win HDB Awards

Sustainability and community were the main drivers behind the winners of the Housing Board (HDB) Design and Construction Awards. 11 projects won for the HDB Design Award category and 12 Construction Awards were handed out to construction firms who had done well in the workmanship and structural works area.

Skyville@DawsonNotable winners included SkyVille@Dawson by WOHA Architects and Waterway Ridges by Surbana Jurong Consultants. SkyVille@Dawson features sky gardens for every 80 homes, that not only introduces greenery to the urban landscape, but also provides an area for community gatherings and exchanges. There is also a roof garden which links the 47th floor of each of the 3 blocks and even includes a 400m jogging track.

Waterway Ridges is a massive housing project near My Waterway@Punggol consisting of 7 blocks with a total of 832 units. The blocks are staggered in height and water is the main feature in the development. Harnessing the beauty of rainwater, 70 per cent of this natural resource will be channeled into the waterway by way of rain gardens, vegetated marsh areas and dry pathways.

Waterway RidgesA couple of this year’s winners upgrading projects from HDB’s Remaking Our Heartland scheme and the Neighbourhood Renewal Programme. The first are town centres in East Coast and the latter an upgrading project in Simei Street 1.

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?