Sparks of hope in property market

Despite the prolonged property lull, analysts are hopeful that a few sparks of recovery will begin to rejuvenate the market this year. The office sector may boost the commercial market while high-end luxury homes will hold up the residential property segment.

dleedonAs far as regions go, the core central region is heating up in terms of foreign interest in both residential and commercial properties. The sliding private home prices, by 11 per cent since 2013, have brought investors back into the luxury homes market. Currency valuation will however continue to play a part in the movement of investment money, and Singapore will still have to compete with other cities such as Melbourne, Sydney and Shanghai for investors’ attention.

Compared to other major cities such as Hong Kong, New York and London however, apartment prices here have fallen and will become more appealing to foreign buyers as the potential for yields in the medium term is considerable, especially as these specific market segment is expected to perform well this year.

skylineorchardboulevardThe collective sales market is another to watch in 2017, as developers are expected to collaborate to build up their store of land sites for long term yields. There might also be acquisitions of smaller developers by larger ones in order to participate in the government land sales programme. Property prices are expected to remain stable but depending on a property’s rental yields as a means of investment or profit could become less attractive as investors find it more difficult to find tenants in an increasingly competitive market.

Far East Organization came out tops in 2012

They were the top seller of private homes last year, selling 10 per cent of the total 22, 290 private residential property sales. The best sellers within the Far East Organization stable of new properties were The Hillier in Hillview and Watertown in Punggol. City Developments were second with 1,674 in total sales, with Bartley Residences and The Palette scoring top marks.

Watertown condominium. One of the first new properties to be launched in Punggol this year.

Watertown condominium. One of the Far East Organization’s top-selling properties launched in Punggol last year.

Out of the top 10 scores, 8 were local companies and the remaining 2 spots were taken by Qingjian Group and Hongkong Land. This is Qingjian’s first time in the top 10 list and its not surprising considering they have been lodging positive responses at GLS tenders.

Part of the reason for their success could be the rising popularity of suburban private homes the last year. Since high-end properties did not do as well, property developers like Wing Tai did not do as well, leaving space for smaller players such as Frangrance Properties and Macly Group. The latter were responsible for small residential projects such as Parc Rosewood, Guillemard Edge, Natura@Hillview and Eon Shenton. Most of these projects feature smaller units of fewer than 150 units, with the exception of Parc Rosewood.

Parc Rosewood condominium in Woodlands

Parc Rosewood condominium in Woodlands

Far East Organization, City Developments and Hong Leong are all pulling their weight in the Government Land Sales tenders. Having legacy sites certainly helps as well.