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.

Private resale home prices inching up

Prices of resale private non-landed homes have been on the rise since March this year and the upward climb though gradual, shows promise and property analysts are hoping market sentiments will improve as the year moves on.

Qbay ResidencesLast month’s price rise clocked at 0.5 per cent and was apparent throughout all regions. In the core central region (CCR), prices rose 0.9 per cent and 0.4 and 0.5 in the city fringe and suburbs respectively. Sales volume has also improved 27.4 per cent in a year-on-year comparison with 754 units sold, just a wisp lower than the 763 units sold in May.

Buyers are beginning to be more acceptable of the market prices of resale units as the median X-Value (TOX) was at negative $7,000, $1,000 more than the negative $8,000 in April. While there are a few major launches planned for the next half to the year, the number of unsold units in the market has been expanding to almost 15,000, and about 57,500 private homes and 12,000 executive condominiums are in the pipeline. How will the market react to the release of these units into the market? Many new launches now face challenging times beyond their initial launch. Depending on the speed and volume at which new units are released and changes in interest rates will be determining factors.

Completed private home prices fall further

Completed resale private non-landed property prices have dipped further in May, following a slight increase the month before. The muted sales could have also been a reflex response to the recent Brexit vote though in the long term, property analysts are not expecting the fallout to be too drastic.

FulcrumPrice decline of apartments in the central region were the lowest, with prices falling only 0.5 per cent last month, almost evening out with the 0.4 per cent rise in April. Properties here have the location advantage and will be unlikely to see a sudden price depression anytime soon. Astute buyers are however still out for the hunt and are likely to look towards properties in this areas for good deals. In the current market, buyers who lack holding power may find themselves having to let go of their properties within a time period, and may be more open to price negotiations.

As more new properties were launched in the last couple of months, activity from this segment may have also stimulated the resale private property sector and the spillover effect of positive market sentiments could have caused a slight blip in April’s price rise. Small apartments below 506 sq ft saw the steepest fall of 1.1 per cent as competition in the rental market heats up and prices continue to fall with high supply against lower demand.

 

River Valley’s properties peak

Just off the city centre, with a quiet and exclusive environment and a variety of hip and happening eateries, retail and office housed in quaint heritage buildings nearby, River Valley has always been a property hotspot for expatriates and young professionals.

MartinPlaceResidencesSo it probably comes as no surprise that developers were quick to bid, fast and furiously, on a GLS (government land sales) site in its vicinity. With the highest bid coming from Guocoland at $595.1 million or $1, 239 psf for the Martin Place plot which is situated near the upcoming Great World MRT station and promises to yield as many as 450 homes, this could be one of the highest bids for a land plot, aside from those on Sentosa. In January this year, a Siglap road condominium site was sold for $624.2million but that could yield up to 900 units, twice the number of units the Martin Place plot is capped at.

Confidence was likely to have been boosted by strong sales from the recent Cairnhill Nine launch. The area is peppered with a wide variety of private properties, including shophouses, older resale condominiums, newer developments and upcoming residential projects. Demand continues to be strong as rental prices become more competitive. Sales volume has always been on the rise, with 86 units sold in May this year, compared to the 15 units monthly average in 2015. Developers’ response to this land sale could be a positive indication of market confidence in recovery.

 

A resale private condo market respite

3 consecutive months of rising private non-landed home prices is reason enough for some mid-year cheer. Could this be a sign of respite from the recent property market lull?

GramercyParkProperty seekers and buyers who have been on the lookout for good deals and the right opportunity to jump back onto the property investment train have proven to be more active of late. Incentive schemes for various residential developments such as OUE Twin Peaks and Ardmore Three have also helped boost sales and prices. The former’s deferred payment scheme has received positive response from buyers, which ultimately translated to sales. The number of resale units sold in May rose by 36% with 840 units sold. 619 units were sold in April.

Prime central region properties are once again finding favour with investors as they view the potential value of the private residential properties here with new eyes. The next launch in the core central region (CCR) would be Gramercy Park luxury apartments by City Developments.

Property analysts are however cautious about their predictions for the rest of the year as the cooling measures will still mean buyers continue to be price-sensitive. They are expecting resale private apartment prices to fall 3 per cent across the board this year.

 

Property auctions at a glance

What happens at property auctions and are there truly good deals to be had? There has been an increase over the past couple of years in the number of properties put up for auction, with 516 properties listed for auction last year – a 45% increase from 2014.

TurquoiseCondoNot all auction sales are from mortagee’s sales (i.e. when a bank puts up the property for auction when the owner defaults on his loan payments) though they do make up an increasing percentage of property auction listings. In 2015, about 30 per cent of auction sales are from mortgagee’s sales. And contrary to popular belief, the properties listed at auctions do not necessary come with absurdly low prices and not all property owners of these listings are in a hurry to sell. Only about 1 or 2 properties are sold during the auction, with most others finding buyers following post-auction negotiations. Some property agents and buyers are there to see what options there are in the market, and almost everyone comes prepared, with a clear idea of market values and trends. Some owners even attend such auctions as a form of research, to better understand what their property is worth by comparing similar units offered at such auctions.

Parc EleganceWhile rock-bottom prices are not be expected, most listing vendors are more willing to budge on pricing by offering deeper discounts. As a guide, most properties valued at $3 million and below usually come with a 5 to 10 per cent discount while properties with price tags beyond $5 million may have even higher discounts. A recent auction sale of a $5.4 million unit at Turquoise in Cove Drive in Sentosa saw the bidder walking away with the unit at $2.92 million, $60,000 more than the opening bid of $2.86 million. Quite a steal, considering the $2.48 million difference. For property investors, auctions though not without risks, may be a good way to secure unique units which they can then profit from thereafter.

Some of the companies which organise property auctions are Knight Frank, JLL, DTZ and Colliers International.

 

 

West Coast soon abuzz with new properties?

Without question, the west coast has a vibe of its own. A sense of excitement, freedom; a buzzing undercurrent of work and play. So the government’s recent release of a 16, 378 sq m land site on West Coast Vale could potentially mean an even more vibrant district in as soon as half a decade’s time.

AYEPhoto credit: LTA

The plot of land released for sale is under the government’s reserve list, which also means the sale will only go through if the bids meet the minimum set by the government. With its prime location near the Ayer Rajah Expressway and West Coast Highway, and schools such as Nan Hua Primary School, The Japanese School and Commonwealth Secondary School, the area is ripe for a new residential condominium or strata landed housing project.

The neighbouring Parc Riveria may be a good gauge of the potential this new site holds. The land which Parc Riveria stands on was acquired only last year and another private condominium nearby is The Trilinq.

The TrilinqThe government has been more cautious of late with the  release of land for sale under the government land sales programme as the market is becoming more saturated. What may hold developers back from bidding for this site is its distance from MRT stations and other amenities. It may however mean quieter and more exclusive environments which young couples or families looking for a property near schools in its vicinity.

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?