Property market outlook positive

New condominium launches are once again welcoming eager crowds. Drawn mainly by the affordable prices and viable unit options, buyers are flocking new weekend property launches in search of investment-worthy buys.

Coco Palms2Both East and West ends of the island were covered last weekend, as sales started out briskly at Coco Palms near Pasir Ris MRT station and Waterfront@Faber on West Coast Road. Although buyers are now more selective, Coco Palms still sold a whooping 82 per cent of its 600 units released last Sunday. Not surprisingly, all of its one-bedders were sold out within the day. With price tags of $498, 000 for a 493 sq ft one-bedder, these units are highly affordable and practical. They are within the range of most young couples of singletons, and also make for easy rentals, especially with t’s proximity to the MRT station and international schools such as the United World College of South East Asia.

Waterfront@FaberAt the 210-unit Waterfront@Faber, 80 units were sold as 7pm on Sunday. Prices ranged between $1,100 psf and $1,350 psf. It’s distance, about a 20-minute walk, from Clementi MRT station could be a slight drawback for investors, but those who were looking for a quiet place of their own will still consider it a good buy. But considering the recent growth of commercial and regional hubs in the west, such as in the Woodlands, Buona Vista and Jurong areas, thinking far ahead may be a wise move.

Landed home prices set to rise

The spotlight has been on new and resale private mass-market homes recently. But with that market reaching saturation, attention is now turned onto landed private homes. Everyone knows how rare these types of property are in land-scarce Singapore, but prices have been falling due to the consumers’ diminishing ability to purchase these expensive properties.

Loyang Rise HouseBut the decline may ease up by end of this year. Analysts are expecting prices of landed homes to pick up next year. This may mean more home owners will hold on to their properties in wait for better prices. This restriction of supply could also be the start of rising prices. In the long run, landed homes do generally hold up in terms of prices better than condominiums. The drop in landed homes prices was only 0.7 per cent, compared to the overall private home prices of 1.3 per cent.

Meanwhile, buyers looking for a worthy landed property to purchase could look at areas such as Bukit Batok, Loyang, Jurong or Sembawang. Terrace houses are usually more affordable than semi-detached or bungalows, and they are usually the first to rise in prices when the property market bounces back.

One possibly glitch is the rental prospects of landed homes. Compared to apartments, they are harder to find tenants for.

Cluny Cluster – Exclusive prime district

Tucked away near the quiet of the Botanic Gardens, are a cluster of heritage properties with sprawling land and exclusive addresses. These are the homes in the Cluny cluster – namely Cluny Road, Cluny Hill and Cluny Park.

The area consists mainly of landed homes. But all that will soon change. New high-rise condominiums are planned for its midst and these landed properties will welcome their taller comrades as soon as this year.

Cluny Park ResidenceThe latest addition to be launched is the 52-unit freehold Cluny Park Residence. Sales began as early as August 2013 but its proper launch was only last weekend. 12 units have already be sold, and the developer Tuan Sing, is expecting a launch selling price of $3, 000 psf. Nearby, other condominium projects include The Siena, 10 Shelford and Dukes Residences. The last has already been completed in 2011. Prices at 10 Shelford are around $1, 874 psf for a 431 sq ft shoebox apartment. At Duke Residences, median prices were at $1, 576 psf for the past 6 months. Both are freehold properties.

The draw of the exclusive address which is surrounded by good class bungalows and semi-detached houses, and the proximity to good schools, eateries and supermarkets which are just a stone’s throw away, makes good fodder for well-heeled investors.

Real estate market fluctuations hard to predict

It might be a matter of long and in-depth research. Or perhaps a intuitive touch to reading the markets. Maybe it’s a matter of luck. Whichever it is you possess, perhaps even a combination of all three, the property market has always been a delicate and somewhat temperamental creature to handle. As we reach the end of the first quarter of 2014, many may be wondering if this year of the horse may gallop into the horizon or merely trot on the spot. The three factors creating the most effect on the current real estate market are:

  • Property curbs
  • Weak demand
  • Oversupply of homes
Property-related rules may be updated often, thus it would be helpful to keep track of new or amended rulings.

Where are home prices headed?

For buyers looking for a place to live, it might be a good time to jump in. Those waiting for a market crash to scoop up the best deals may be waiting in vain as that is rather unlikely. Singapore’s growing population will make for a constant demand for housing, and since home buyers usually have a fixed idea of which areas they would rather live in, other factors such as location, proximity to transport and schools, may still determine the price they pay.

Property upgraders may find themselves in a good spot as well. As the private property market becomes increasingly competitive, the price difference between their current and desired property may be diminishing, thus in turn save them a rather substantial amount.

Property investors may be those finding themselves most in a bind as mortgage limitations and rising interest rates create boundaries which may hinder their progress. Analysts advice against hasty decisions as properties may not be the easiest to manage within an investment portfolio. They suggest that investors look at all possible angles when considering a property, such as the number of bathrooms, size and shape of the unit, hidden spaces which may not suit the taste of most buyers etc. All-in-all, investors need to plan for future interest rate hikes, the possible lack of tenancy, financial holding power and governmental policy changes.

iProperty launches new Room-for-rent E-service

Home rental has always been a big thing in Singapore. As in most other busy, cosmopolitan cities.

Some folks have extra space to spare, some are hoping to rake in their investments, others need a place to stay. Just a little cosy corner to call your own. If you’re not looking to rent a whole house, condo apartment or HDB flat, but only a room, iProperty now offers an efficient way of searching room rental listings throughout Singapore in just a few easy clicks.

iProperty room rentalRegistration is free and 4 easy steps later you’re able to post your rental ad. Powered by iProperty, the rental portal resides at sg-house.com. Attract as many as 52,000 views on your post and find a suitable tenant quickly and at the comfort of your desk. It’s an easy way for landlords to reach potential tenants and vice versa.

Short-term accommodation options are also available. Great for companies hunting down term rentals for their overseas employees. Filter down your search through keywords and find what you need pronto.

Besides this new feature, iProperty’s recently revamped website also has organised links and a site chock full of other property related resources such as a search function for properties near MRT stations or schools, directory of condominiums in Singapore and property trends.

When even suburban mass-market home prices fell

 
8 RajaSingapore’s housing market could be bracing itself for a year of tougher times. It has after all enjoyed a rather long period of highs.  Though the initial signs are slight, a 0.7 per cent drop in December, it could be a warning for the year or next couple of years ahead.

As new properties now come with lower price tags, apartments in the resale market may find themselves having to lower their prices as well in order to attract buyers. The biggest decline came in the suburban segment, which may be a bit of a downer for the market since this is the sector which has been faring the best for many consecutive quarters. But the huge number of launches all over the island could have diluted the buying crowd. Investors who would previously have snapped up these properties in a jiffy may also have been hindered by the loan restrictions implemented last June.

Homes in the central districts could however take the hardest beating this year as many are left unsold. As most of the properties head towards completion in the next few years, the housing supply glut may become more apparent. Put into the mix resale properties and the bowl seems rather big, unless of course the population grows, which might cause other issues for the small nation and its limited resources and space.

Landed home prices land hard

With a few cracks in the market, landed home prices have come up lower to show for it. Perhaps an unexpected casualty of the series of government-implemented curbs in 2013. Once considered almost the rock of the residential property market, sellers may now find it increasingly more difficult to get the buyers who were once clamouring for them. Only 465 landed homes were sold in the second half of last year, that’s almost half of the 865 units sold in the first six months.

Whitley ResidencesPerhaps buyers may be willing in spirit, but in fleshly terms, their pockets are not. Restrictions on loans now leave buyers with shallower pockets and less cash all around. Landed home prices may have also peaked, and is now on the decline. As these properties are one of the few which cannot be bought by foreigners, it leaves a selective and much smaller pool of buyers or investors. When they feel the squeeze, so does the market.

Most of the target group for landed homes are working professionals in their 40s, who may already have a number of loans taken out, whether home, car or insurance. Servicing a heftier loan with a shorter timeframe means either smaller loan amounts or the need for bigger cash amounts in the bank, both of which may be a handful to juggle.

Poets Villas cluster housing in Teacher's Estate in the Upper Thomson district.

Poets Villas cluster housing in Teacher’s Estate in the Upper Thomson district.

But for those who are ready and able to invest, a short wait later and the prices may well be attractive enough to make a timely investment. Industry experts still consider landed homes a worthy long-term investment as demand will almost always outweigh supply.

Home prices down all around

Landed. Non-landed. Private. Public. Across the board, prices of all residential properties seem to have taken a hit in the last quarter.

Prices have dipped, some sectors more than the others, but signs are pointing to a possible slowdown in the market due to governmental curbs and the increased number of new property launches over the last 2 years. With the last price decline registered in 2005, resale HDB flat prices have been on the downhill slope for 2 quarters now. Private property prices have also suffered albeit to a lesser degree, with the lowest prices since 2009.

Mon JervoisMight it truly be the buyers’ market this year? Will this prompt more buyers to jump on the opportunity or are there other factors which might keep them away from the cash register? The tighter loan restrictions such as shorter loan periods, lower debt-to-income limits, and higher stamp duties may still be an obstacle to some buyers, thus sellers eager to cash in on their properties may find themselves having to wait a little longer for a good deal to come by.

Location usually still trumps all, though considerations such as space, amenities and living environment all have a part to play in the final selling price. With more new private condominium launches and new HDB flats pushing their way into the market this year, competition on the rental front is proving tough as well. Buyers now have more options for comparison and may be tempted to wait for prices to drop even further or wait it out for the best deal.

Even prices of suburban private homes, which have been the main stalwart of the property market last half of the year, have slipped 0.6 per cent. And as resale HDB flat prices drop, so have the number of HDB upgraders who may require the cash from the sale of their flats to purchase private homes. In turn, demand for mass-market suburban homes may fall.

Will it be a sombre year for Singapore’s residential property market?