Some luxury homes still making tidy profit

A few months back, luxury, high-end properties were finding it hard to lock down an audience. But apparently even though the number of takers were low, those who did shake on a deal were making a tidy sum.

Ardmore ParkLuxury homes in the Orchard area have been changing hands at high prices. This is particularly evident in the Ardmore Park apartments which brought a profit of $2 million each for the owners of 2 units in this high-end residential development by Wheelock Properties.

Property analysts however, are considering the spike to largely be condominium-specific as homes in the Nassim area did not seem to fare as well. Besides location, the unit-sizes are also indicative of the possible investor profile. Most of the homes at Ardmore Park were similar in size, each measuring approximately 2, 885 sq ft, which meant that buyers of these properties are more likely to me wealthier, with deeper pockets and different investment agendas. A1,335 sq ft unit in Tanglin Park condominium in Ridley park, though considerably smaller in size,  sold for a tidy $1.07 million profit as well.

Grange ResidencesDespite being in the same vicinity, a couple of Grange Residences and Nassim Park Residences units sold at a loss. It could be anyone’s game at the moment, but it seems buyers are becoming highly specific about the development they hope to buy into and competition between projects in the same district could be facing even fiercer competition for the same wallets come 2015.

Good class bungalows still in demand

The private property, and perhaps more so landed property sector, has been the doldrums for most of the year. But the niche market for Good Class Bungalows (GCBs) has been thriving.

e704119a11f840b8865a9fb67a23b14eA total of 26 Good Class Bungalows were sold this year, with the total sales figure coming up to a whooping $587.75 million. Though it is nothing compared to the 133 sold for $2.38 billion at the height of the industry in 2010, it is comparable to the 29 sold last year for $682 million. But the average sf prices for GCBs have risen this year to $1,454 sf as compared to last year’s $1,388 psf. The Belmont Park, Chatsworth Park, Chestnut Avenue, Dalvey Estate, Raffles Park and White House Park areas received the most attention in 2014.

There are only 2,700 GCBs over 39 designated areas in Singapore, though the number may have increased slightly in the 1980s when GCB areas were gazetted. This resulted in some sites entering the good class bungalow market even though they are smaller than the usual 1,400 sq m size.

But property experts have noticed that the drop in transactions for these high-end properties were largely due to the  MAS-imposed TDSR (total debt servicing ratio) framework and ABSD (additional buyers’ stamp duty). Most buyers of these properties are likely to already have existing properties and the increased stamp duties will total up to a rather substantial sum.

They are expecting this market to fare similarly next year as the property cooling measures remain. But with buyers’ consideration possibly turning into long term value appreciation, the Good Class Bungalow sector will certainly stand its own.

Landed housing gets a boost

Through semi-detached homes. Apparently prices of these landed properties have risen 4.2 per cent in the last 3 months, contrary to what most people would expect of a dimming property market. Usually the first property sectors to show significant decline are landed and luxury homes, followed by mass market suburban non-landed properties and resale HDB flats. But this rare glimmer of hope in the landed property sector has brought a little cheer to the otherwise gloomy industry.

semi-detached houseThe psf prices of semi-detached houses are now comparable to that of bungalows. But the rise could be due to the popularity of these property types with the rising group of buyers who are able to upgrade to landed properties but not yet able to afford the high quantum prices of a big landed home with a high overall land area. Add the group of buyers who may have originally been looking at bungalows but now find themselves strapped down by the property cooling measures, and there is a ready pool of potential customers for the sector.

Bungalows, being the rare commodity they are, will naturally continue to command high asking prices, which is unlikely to come down anytime soon as most owners have a strong holding power and are willing to wait out any industry recessions. However, property experts are quick to point out that the rise could be temporary and does not mean that landed property prices are on the rise per se. As the property cooling measures continue to restrict, the market will need to show significant adjustments before any change in policy will happen, which may then signify the start of a new era for the industry.

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.