Status quo for landed property market this year

Though figures from the last quarter indicated that landed home prices have risen 0.9 per cent, that was following a 2.7 per cent fall in Q3. Property analysts are careful not to yet call it a market rebound as 2017 may pose a difficult year for the economy.

bishopsgateThe landed housing market may continue to feel the pressure this year as cooling measures remain and the economic outlook seems uncertain. In a year-on-year comparison with Q3 of 2013, prices have fallen 14.8 per cent. Overall landed home prices fell 4.4 per cent last year and 4.1 per cent in 2015. The lowered prices could however have been a factor in bringing buyers back. Should sales volume and landed home prices continue to stabilise, the price index may inch up albeit gradually.

There were several considerable transactions in the detached landed house segment and this could have boosted numbers in Q4. One notable sale was for a property in Bishopsgate, at $26.8 million and a couple of others in Holland Park and White House Park at $25.5 million each. Though the Total Debt Servicing Ratio (TDSR) framework implemented in 2013 has limited buyers for private properties across the board, it has more effect on the higher-priced property segments as investors here may have more financial commitments.

whitehouseparkDespite a muted landed housing market last and possibly this year, landed homes remain much sough-after and investors in these segments may be bolder in their attempts to close deals this year.

Will property market bottom out soon?

Hopes of a market rebound may be reignited as the bottom of the cycle seems to be in close reach. While private home prices have fallen by 0.4% for the 13th consecutive quarter, the rate of decline of private home prices have been reduced from the 1.5% in 2016’s Q3.

cairnhillresidencesIn 2016, private home prices fell only 3%, the slowest since 2013. Since the third quarter of 2013, home prices have fallen 11.2%, with a 4% fall in 2014 followed by a 3.75% fall in 2013. The projected fall in home value this year is 2% to 3%. While home seekers and investors may be drawn back into the market with the lowered property prices, analysts are not expecting them to splurge.

highlandresidencesIn Q4 of 2016, non-landed private home prices fell 0.7 per cent, led by city fringe properties with a 2 per cent drop. Prices of units in the core central region remained unchanged while suburban home prices fell 0.3 per cent. Units in the core central region have suffered a 1.9 per cent fall in Q3, thus the fact that sales volume have increased while prices remained unchanged could be a good sign for the year ahead.

Landed property prices posted a surprising rise of 0.9 per cent after a 2.7 per cent fall in Q3 while in the resale HDB flat market, prices fell 0.1 per cent.

New homes in District 10 – Victoria Park Villas

Soon to nest in the midst of District 10 will be 106 semi-detached houses and 3 bungalows totalling 403,000 sq ft.

VictoriaParkVillas

Victoria Park Villas is a new development by CapitaLand situated in the junction of Coronation and Victoria Park Roads. Prime area indeed as it is only a 10-mins walk away from Farrer Road and Tan Kah Kee MRT station, not to mention having the selection of many choice schools down Bukit Timah road.

Launching tomorrow, 3 Sept, these 109 homes making up Victoria Park Villas are 99-year lease properties projected to sell at around $2,000 psf. Though on the high side, consumers will have to realise that having your own land even for awhile, will cost. The property sizes will range between 2,153 to 3,835 sq ft for semi-detached houses and 10,904 sq ft to 11, 539 sq ft in floor area for the 3 bungalows. Prices are expected to reach $12 million for the latter. Other similar properties in the King’s Drive, Hillcrest road and Greenwood Avenue have sold for between $906 to $1,351 psf last year.

Ventura HeightsNew cluster landed properties are not a dime a dozen, thus the property size, exclusivity and location Victoria Park Villas offer may very well be worth its calling price. CapitaLand has previously offer deferred payment schemes for their other properties such as d’Leedon, The Interlace and perhaps soon, Sky Habitat and Marine Blue as well. Will they be likely to extend the scheme to their upcoming projects once they are completed?

 

Property market’s road to recovery a gradual one

While the global economy remains in the doldrums and the authorities keep the local property cooling measures in place, Singapore’s real estate market is likely to see a gradual gentle road to recovery, starting with stabilisation.

LakeGrandeJuly’s sales figures show promise, with 1,091 units sold (excluding executive condominiums). That is almost double that of June’s 536 units. Although August’s numbers may dip due to the Hungry Ghost month and the lack of major property launches, September will see the launch of Parc Riveria at West Coast Vale and Forest Woods in Serangoon. The former is developed by EL Development and the latter by City Developments.

Consumer interest on landed homes, a rare commodity in local context, has also shone of late. CapitaLand‘s launch of 6 Victoria Park Villas‘ units which all sold between $4.3 to $4.9 million led the way to positive market sentiments. July’s major launch of the highly affordable units at Lake Grande largely boosted sales figures, accounting for 40 per cent of the total number of units sold.

VictoriaParkVillasProperty analysts are expecting monthly sales of 500 to 700 units for the rest of the year, totalling up to 8,000 units for 2016. Selling prices have remained steady in July while sales figures rose 22 per cent, signalling the start to the market’s road to recovery.

New citizens new buyers of Good Class Bungalows

Buyers and sellers of Good Class Bungalows (GCB) seem to be gradually meeting on the same page as the price gap between them narrows and more transactions were recorded thus far this year – 19 to be exact, valued at a total of $438.17 million. In 2015, 33 GCBs valued at a total of $714.78 million were sold and 28 totalling $626.14 million in 2014. Analysts are predicting up to 30 GCB sales in 2016.

Leedon Road GCBEven though prices of these rare properties have not fallen much at all, investors’ interest seems to not have waned. Developer OUE have just picked up 2 sites from the British government in Nassim road at $1,652 psf for $56.58 million, a steal considering the median price of the area stands at $2,000 psf.

An increasing number of GCB buyers are new citizens, buying over these massive-sized properties from Singaporeans moving between property transactions and investment deals. These buyers see the potential in prime properties and the slightest of price adjustments will spike their interest in their search for property upgrades and prestigious addresses. Recent sales included a $27 million GCB in Gallop road and currently on the market are a $38 million Bukit Tunggal Road GCB sized at 14,000 sq ft and a $30 million Dalvey Road property on a 15,211 sq ft site.

 

Luxury property market heats up 

After the market lull in the past couple of years, buyers are once again picking off choice luxury units in the prime residential property sector.

ArdmoreIIIPrices in this segment have gradually become more competitive over the last year or so and sales volume has increased, partly due to this change. For example, in the first half of 2016 alone, 131 apartments priced above $5 million were sold. Only 166 similar units were sold in the entire 2015.

Investors are favoring Singapore properties they match up well against those in other global cities such as New York and London. Property analysts say most investors are still Singaporeans, though  Malaysians, Indonesians and Chinese continue to feature strongly in the investor pool as they see the value of properties here and are not deterred by the currency fluctuations.

An upcoming luxury development is the 99-year leasehold Victoria Park Villas by CapitaLand which consists of 3 bungalows and 106 semi-detached houses starting from $4.3million. In better times, these houses could have cost up to $6 million. Other high-end units currently in the market include those at Gramercy Park, OUE Twin Peaks and Ardmore Three.

Promising year ahead for landed properties?

At least in the Good Class Bungalow (GCB) segment apparently. Property analysts are predicting a 5 per cent price growth this year following promising response in the first quarter alone.

Despite economic slowdown and stock market volatility earlier in the year, this luxury landed property sector has seen a pick-up in sales volume as Singaporean investors are turning their sights on home ground once more, after a few seasons of investing in overseas propeties. Property agents have reported buyers making serious offers as compared to just a quarter ago in the latter part of 2015.

Leedon Road GCBRecent sales of GCBs included one at Swettenham Close at $1,354 psf. A total of 33 GCBs were sold in 2015, a similar number is expected for this year. Perhaps property owners have lowered their expectations and asking prices, and buyers are also enticed by the rarity and land area these bungalows provide. Many are upgraders or investors while sellers tend to be those whose children have flown the coop and are looking to downsize to more manageable properties. Rental yields for these large-sized properties have been diminishing, and these properties also tend to have higher property taxes and maintenance requirements.

Buyers may be more willing to take the bite this year as prices have already fallen 15 per cent since its peak in 2013, and further price declines will be unlikely. As these landed properties are also far and few in between, they may be quicker to pounce on a deal as it will not be easy finding similar options.

Luxury tucked away – Seletar Hills

For now, the district of Seletar and its surroundings are fairly quiet and laid-back. But all that may soon change as the area is being redeveloped as part of the North Coast Innovation Corridor.

The exclusive Seletar Hills Estate in its midst holds a great deal of potential with the serene environment it provides as well as its proximity to town. A 999-year leasehold landed housing project is being built there at the moment –  Luxus Hills is currently in the seventh phase of its development and will feature 28 terrace units and 4 semi-detached houses. These landed properties are developed by Bukit Sembawang Estates whose other properties include Skyline Residences and Paterson Suites.

LUxus HillsPhoto: Luxus Hills

The surrounding area will soon be very vibrant with commercial and retail businesses including the Seletar Aerospace Hub, Greenwich V and Seletar Mall. Within a short drive or bus ride away are the Ang Mo Kio Town Centre and Compass Point in Sengkang. Situated somewhat midway between Yio Chu Kang, Sengkang and Punggol, and Ang Mo Kio, it’s proximity to the Central Expressway (CTE) also makes it a cinch to get to the Central Business District (CBD) and Orchard belt. The Hougang, Ang Mo Kio, Yio Chu Kang and Buangkok MRT stations are within easy reach.

Each of the Luxus Hills homes are designed to suit multi-generational families and come with four en-suite bedrooms, a guest room and roof terrace.

Other properties nearby include Riverbank, Rivertrees Residences, Seletar Park Residence, The Greenwich and Belgravia Park.