Resale property prices slide further

The private property market seems to be going the way property analysts have predicted in the beginning of the year. Over the last 6 months, prices of completed private property have fallen 1.9%. The steepest fall was in the beginning of 2014, at 3.7%. Though the decline has continued, the fall has been lighter in the quarters following.

Maysprings condoSince the implementation of the Total Debt Servicing Ratio (TDSR) in June of 2013, property prices have fallen at varying speeds over the past 2 years. A total of 42,606 new homes are expected to be ready for occupation within these couple of years and up to 96 per cent of the land sold this year are expected for future non-landed homes. It may become a tussle for prices and buyers, between new and resale properties.

As rental demand also continues to dip, prospects for the property market seems to have dimmed slightly, though select properties will still hold potential. Property experts have explained that the dip in prices in the resale market may have been due to the ability of individual to be flexible with prices. New properties which are being sold by developers have the means to stick to their guns in terms of pricing. The scale for rental supply and demand is likely to continue leaning towards the former.

Weekend in the East – Pasir Ris

It’s almost the weekend. And when we think weekend, the mind often goes straight to the eastern districts with its breezy, relaxed atmosphere and sunny skies. Besides the popular East Coast and Marine Parade hot spots, there are also lots to see and do in the country’s edge of Pasir Ris.

The PaletteIn Malay, Pasir Ris translates to “White Sand” and this coastal town has long be lauded for its tranquility, almost like a secret tucked away in the quietest part of the island. But not to be mistaken for exclusion from the usual conveniences of city living, it is well-served by trains and buses and has a buzzing town centre and a few malls to boot. Add the revamped Lorong Halus Wetland, Sungei Tampines River and Sungei Api Api, Pasir Ris Park and it’s akin to having our own “The Hamptons” of our own. A countryside in an island city.

Private condominium apartments in this area include Seastrand, NV Residences, Coco Palms and The Palette. One of the latest executive condominium (EC) offerings, Sea Horizon, is also in its midst. With the infusion, of these private residential properties in the area, it is not surprising that HDB flats in the area and the surrounding district of Tampines are also gaining popularity with buyers.

 

EC’s potential attracts buyers

Most who qualify for an executive condominium (EC) are likely to apply for one when weighing the potential of an EC against a private condominium. And that perhaps fulfils the purpose of these public-private housing hybrids, which is to help citizens make a progressive step into the private property market. EC’s are public housing which become private housing after 10 years. This means buyers are able to enjoy the perks of a private residential apartment including the facilities and the eventual potential appreciation in value in the open market as a private property. There is an income cap however, at $12,000 in gross household income and the minimum occupation period (MOP) of 5 years still apply as they are essentially public housing provided by the Housing Board (HDB) on the onset.

The Vales

Their popularity has risen immensely, reflected in the often-sold-out launches. At the Forestville and Sea Horizon ECs by MCC Land and Hao Yuan Investments, up to 95 per cent of their units have been sold. Both properties are expected to receive their temporary occupation permits (TOP) by 2016.

The 653-unit Forestville executive condominium is situated in Woodlands, an upcoming regional business hub, and near the future Woodlands South MRT station. Schools in this area include the Singapore American School, Innova Junior College, Singapore Sports School and Republic Polytechnic. Across the island in Pasir Ris, just two bus stops away from Pasir Ris Central, the 495-unit Sea Horizon prides itself in being the only EC with a sea view.

It will be an exciting market to watch as there are quite a few new ECs being launched in this half of the year, including Westwood Residences, The Brownstone, Sol Acres and The Vales.

Move further away for better property deals

No longer are buyers limiting their sights to properties in familiar districts or estates. They are now willing to move from one end of the island to another if the draw of a property and its potential value in appreciation is strong enough.

This could be certainly be seen from the weekend turnout at the High Park Residences launch. Situated in Sengkang, a district only a few were willing to move to a decade ago, the Fernvale Road show suite of this latest mixed-use development in Sengkang was swarmed with interested buyers from all over Singapore; a sign that buyers are now more savvy about property investment and keen on purchasing properties with long-term goals in mind.

High Park 2Previously monopolised by public housing, Sengkang is slowly rising up as a popular new town with young couples and families. Private condominiums have also entered the district with gusto and buyers are snapping up units at resale and new private apartments in the area. Some of the properties in the area include Riverbank, La Fiesta and Rivertrees Residences.

High Park Residences will boast a mix of commercial, recreational and residential units. Out of their 1,390 units, 1,100 have been sold, with all the one-plus-study, bungalow and commercial units snapped up. With the Thanggam LRT station and Seletar Mall nearby, it’s no wonder this new kid on the block was popular with buyers.

Resale private homes – Slow climb up

There was a glimmer of light in the resale property market last month as prices of homes in the city fringe rose 1.1 per cent and 0.5 per cent in the suburbs. Overall private resale home prices rose 0.4 per cent.

BlueHorizonThough property analysts are not certain if prices will maintain their current level or dip even further in the later part of the year, the numbers gave at least a little hope to private property owners and sellers. While the resale market shows that it has steadied itself with a $0 T-O-X (the median transaction over X-value or a home’s market value), in the city centre district 9 which consists of Orchard Road and River Valley, more resale properties were being sold below the computer-generated  home prices dipped to an average of $55,000 below the X-value.

In district 5 of Pasir Panjang and Clementi however, the highest media T-O-X came up to $30,000; and in the Bukit Timah, Holland Road and Tanglin areas of prime district 10, the number came up to $14,000.

As the number of new properties being launched or completed rise, the prices of resale properties may face the danger of being pushed down by competition. Though location and condition of resale units may always have an upper hand. With the General Elections planned for the year ahead, prices may fluctuate with policy or economic changes. Could this year be the watershed year for the property market?

Renting out your private condo apartment

Many property owners here rely on property rental to help them with their mortgages and oftentimes, the rental option is regarded as a long-term financial aid. What then should you as a home owner who is looking to rent out your private property or even just a room in your home be watching out for? And as a tenant, do you know what you should or should not do?

DuchessResidencePublic housing or HDB flats fall under the jurisdiction of the Housing Development Board (HDB), which has clear rules and guidelines for property leasing. But private properties are often left to the discretion of the market, tenants and landlords, with some areas which though seemingly grey, should be quite glaringly clear.

What is not allowed?

  • Short-term rentals. Though concepts such as Airbnb have been around for sometime, it sadly may not yet work within Singapore’s legislative system for property rentals. URA’s lease and subletting rules currently states that rentals need to fulfil certain requirements, with the time period being a minimum of 6 months.
  • Partitioning of a unit into smaller units. It is not uncommon to find landlords or sometimes a master tenant putting up false walls or partitions in order to sublet the unit.  The maximum number of residents in a private residential property is 8, regardless of the size of the property.
  • Leasing to tenants without proper papers. Landlords should always make it a point to check and keep a copy of the tenants’ passport and work permits or employment passes as the onus is on the owner of the unit to ensure that the unit is rented only to legal workers. A quick check on the ICA website will allow you to verify your tenants’ validity and authenticity.
  • Subletting of properties by master tenants. As landlords of a property, always be vigilant and do frequent checks on your property to ensure the clauses in your tenancy agreements are not flouted.

And for tenants, be aware that your landlord should pay for the condominium’s maintenance fees. For both sides, a reliable agent who will be able to advise and help you with the proper paperwork and help your keep a lookout for blind spots is an invaluable asset.

 

 

Future new private homes in 2 estates

Toa Payoh is well known for its attractiveness as a mature HDB estate, well chocked with amenities and commanding considerable prices for the resale HDB flats. However, the private condominiums in its midst are far and few in between

TreVistaTreVistaBut that might soon change as a private residential site near Braddell MRT station has been put on sale which might yield new 99-year leasehold properties in the future. Since the Government Land Sales Programmes (GLS) is planning to reduce the number of plots going up for sale, bidding for this prime site was keen, with 14 bidders going in with the highest coming from Evia Real Estate and their partners, Maxdin and Gamuda at $345.86 million. Selling prices of the new property is expected to range between $1,450 psf and $1,550 psf.

Just like Jurong and Lakeside, developers are expecting pent-up demand for private condominium apartments in Toa Payoh to work in their favour. The newest launch here, which has been for sometime now, is Trevista.

Hundred Trees on West Coast Drive.

Hundred Trees on West Coast Drive.

Another popular site which went up for sale under the GLS programme is one at at the Sungei Pandan waterfront at West Coast. With the possibility of yielding up to 600 homes in an area near the Westgate and Jem shopping malls, the Science centre and the future high-speed rail terminal in Jurong East, this 99-year lease term site is expected to fetch $370 million at auction. Nearby properties such as Waterfront @ Faber, Infiniti and Hundred Trees, have all fared well with some having sold out.

 

 

 

Smaller private homes popular with HDB Upgraders

Whether for occupation or investment, HDB dwellers moving into the private property market are setting their sights on smaller units below 100 sqm priced between $750,000 and $1.05 million. Median sizes of purchased non-landed homes have fallen to 85 sq m.

This could be a good indicator for developers and resale private condominium sellers of the pricing sweet spot in upcoming launches. Prices of completed transactions of non-landed homes have fallen 5.4 per cent. But private property owners who are purchasing within the market are snapping up bigger units of up to 110 sq m. This could be due to the fall in prices since 2013 and the affordable total quantum pricing.

Pollen&BleuThe number of foreign property buyers have also decreased slightly, with most now targeting luxury homes tagged above $5 million. In addition to Singapore’s political and economic stability, established infrastructure and education standards, value-for-money property options continue to draw foreign investors despite increased stamp duties.

As the market acclimatises itself to the new dynamics of the Total Debt Servicing Ratio (TDSR) framework, increased stamp duties and other property cooling measures, the buyers may gradually re-enter the market. With the promise of new launches coming up in then next few months, the numbers could see a turnaround soon.