Shunfu Ville finally sold en bloc

After many turns in the collective sale route, the Shunfu Ville estate in Bishan has finally been sold en bloc. $638 million for 358 units. As one of the few remaining HUDC (Housing and Urban Development Company) estates in Singapore, this has been a long but fruitful wait for many of its owners who will each reap an average of $1.782 million from the sale. Back in its launch days, each unit was sold at approximately $230,000.

ShunfuVilleQingjian Realty (South Pacific) Group is the proud new owner of the estate. Though the price seems steep, the potential use of the plot of land this size is even steeper. The Shunfu Ville land area is almost equivalent to that of up to 3 similar land plots offered under the the government land sales programme.

Privatised in 2013, owners of the ageing estate have found maintenance increasingly difficult and expensive and 81 per cent came to an agreement to seal the deal last Thursday. The reserve price was lowered from $688 million to $638 million.

NaturaLoftMeasuring at 408,927 sf qt, Qingjian has plans to build up to 1,000 apartment units and a number of terrace-house units on this 2.8 plot ratio land. This may mean an injection of even more private condominium units into the Bishan and Upper Thomson districts. The developer also has another project, Natura Loft, opposite Shunfu Ville.

 

More unsold private home stock moved in April

New private home sales fell 11.6 per cent to 745 units last month, though the numbers may be considered to be decent as there were 2 major launches in March which caused a spike in sales volume, the highest in 8 months. The 268-unit The Cairnhill and 216-unit The Wisteria launched in March while the 305-unit Sturdee Residences and 48-unit The Asana launched in April.
The AsanaOlder projects however were finding favour with buyers as the number of transactions on previously launched developments rose from 541 to 619 in April. A few of these projects such as The Trilinq, have reached or will be reaching completion soon and are more of a draw for buyers who wish to move in sooner than later. Developers of some of these properties have also offered discounts and the lower prices are the icing on the cake.

Taking executive condominium (EC) units into consideration, the numbers are even higher. Approximately 400 EC units were sold. At the previously-launched The Terrace EC, the developers have put a buyer-referral scheme where both parties received $10,000 cash vouchers for successful transactions.

The TerraceProperty analysts are optimistic about the shift in tide as sales were spread evenly amongst the 15 top-selling residential projects, a sign that buyers are looking throughout the island, and not simply converging on new launches. Ironically, the government’s insistence on keeping the property cooling measures might have driven buyers back into the market as they realise the curbs may not be lifted anytime soon.

 

Cool moves to boost property market take off

Property buyers and investors are certainly flexing their shopping muscles this year by weighing their many options carefully and taking time to do so. It has been the buyers’ market for sometime now, with sellers and developers realising that the ball is over in the other court.

Twin Peaks2Purchasing activity has certainly not ceased, but buyers are taking their time to shop their options, with most seeing about 10 to 15 units before taking the plunge. Thus interest is definitely still evident, but the speed and volume of sales may have to take a backseat for now. Some developers have taken to new and creative ways to push sales. OUE for example has offered a deferred payment scheme for their 99-year leasehold condominium Twin Peaks. The move has helped them sell around 100 more units since end March and also put them in the race against freehold properties nearby such as Ardmore Three and Gramercy Park. Average prices at Twin peaks stand at $2,300 psf while units at Ardmore Three are going for around $2,700 psf and the upcoming Gramercy Park has prices set at around $2,600 psf.

LloydSixtyFiveIn a move to help their customers tide over property cooling curbs, in particular the Additional Buyers’ Stamp Duty (ABSD), the developer of Lloyd Sixty-Five, TG development, is offering an “experimental purchaser scheme” which allows the buyer to pay only 12.5 per cent of the purchase price to occupy the unit without having to pay the maintenance fees and property tax for a stipulated period of time till such time when the property cooling measures may be lifted.

Private homes sales show slow and steady improvement

Twin-Peaks3Private non-landed property prices have been rising for 2 consecutive months now, a positive sign considering the recent market lull. Though values and volume are still lacking behind that during the peak of 2012 and 2013, any slight improvement is something to cheer for.

In April, the jump in non-landed homes sold was 17.6 per cent, a considerable 28.1 per cent higher on a year-on-year comparison with 2015. A total of 689 non-landed private units were sold last month. Property analysts are happy with the recent progress as it shows that the market is not completely dismal, and buyers will still bite if the prices are right. Resale private home prices similarly rose for 2 months straight, though the percentage were more modest with a 0.1 and 0.5 per cent increase in March and April respectively.

The residential developments which showed the most positive uptick were Twin Peaks in Leonie Hill, A Treasure Trove, D’Leedon, Double Bay Residences, Parkview Apartments, Thomson 800 and Carribean at Keppel Bay. The highest rise in home prices were in the core and central regions with a 1.3 per cent increase, while resale home prices in the suburbs fell 0.2 per cent.

Double Bay Residences SimeiAs the mid-year closes in, these 2 months may set the tone for the rest of the year, though much still hinges on how both local and global economies fare. Buying abilities and sentiments may follow suit.

Property mortgage sales even include uncompleted units

A weakening rental market and the growing supply of new homes have pushed even more units into the realm of mortgage sales.

Silversea1Even uncompleted units are now going under the hammer. While only 3 properties were auctioned last year, the number have more than quadrupled to 13 in the same period this year. More mortgagees are defaulting on their loans, which could be largely due to the diminishing loans they are now able to secure based on the debt servicing limits, increasing competition in the rental market and an overall property price drop.

Investors who have been dipping their toes into too many properties may be finding themselves unable to service the multitude of loans taken on multiple properties, in particular smaller one-bedders or studio apartments which are only reaching completion in the recent couple of years. Some units at The Greenwich in Seletar and euHabitat for example, in particular smaller one-bedroom apartments priced at $1 million or below, are being put up for auction as their owners are overstretched financially and find it difficult to secure rents sufficient enough to cover their mortgages. Larger penthouses with irregular layouts above 1,500 sq ft and priced above $2million are also finding it difficult to find buyers or tenants as they exceed the budget of many investors but may not yet fulfil the requirements of affluent or high-networth buyers.

The GreenwichSome of the units put up for auction this year include a one-bedroom penthouse in Guillemard Edge, a three-bedder in Bartley Residences and a four-bedder in Silversea condominium in Marine Parade. The latter was sold at $1,529 psf or a total of $3.9million.

 

Resale HDB market sees rise in sales

The number of resale HDB flats exchanging hands in April rose by 10.3%, a positive sign despite prices remaining level. The last time sales volume exceeded the 1,800-unit mark was in October 2012. 1,828 units were sold in April this year.

Though property analysts are wary about calling this a market rebound, the increase in transactions could mean an eventual decrease in the number of resale flats available. Depending on how far the price gap between private property and resale HDB flats goes, the diminishing stock of resale flats in the market may entice buyers to purchase sooner rather than later. And the increase in rarity could also mean the increase in prices.

Serangoon HDB flatFor the moment however, the buyers may still have the upper hand as most are buying only after having waited for prices to fall. The cash-over-valuation prices are almost all gone, and with the purchasing process adjusted, buyers are less likely to fork out additional monies above the valuation price. In addition, data pertaining to resale flat prices can now be more easily accessed, thus buyers are seldom willing to succumb to sellers’ high asking prices.

HDB flat prices have stagnated for almost a year now, though the fluctuation either ways has not been drastic. Last month for example, 3-room flat prices rose by 0.6 per cent though 5-room flat prices fell by 0.9 per cent. This could be an indication of what the buyers are now looking for. As the population and policies shift, the property market will also need to adapt quickly to their changing needs.

Singapore’s property districts: Where do you belong?

Though small, Singapore’s 28 housing districts and 26 (and growing) HDB towns each have their own unique and distinct atmosphere. Each have their own history, good eats and exclusive hideouts or communal features. How do you choose which district or estate you belong to?

Grandeur8Many older estates such as Ang Mo Kio and Toa Payoh have their identity rooted in times preceding even World War II. These matures estates have well-established amenities and their transport options have grown over the years. Each will have their own MRT station and bus interchange providing inter-town and shuttle buses; schools, shopping mall, medical facilities such as polyclinics, sporting and recreation amenities as well as parks and libraries.

Some larger townships are built around a regional commercial hub, such as Woodlands and Jurong. Woodlands for example is laid out in a circular shape, with each part of the town connected to major highways and to the town centre. HDB flats and many private condominiums dot the estate and its proximity to the Causeway also makes it a prime leasing spot for Malaysians working in Singapore.

Queenstown HDB flatPhoto credit: HDB

And there are also Satellite towns, Queenstown being the first and Tampines joining its ranks later on. Queenstown was developed by the former Singapore Improvement Trust (SIT) in 1952 and was named after Queen Elizabeth II to mark her coronation. These towns, much like the other mature estates, are chock full of property-investment opportunities as buyers tend to look to these towns for leasing opportunities.

Outlying townships such as Punggol, Sengkang and Sembawang, previously considered remote and unpopular, are all coming into their own with Punggol leading the way into the 21st Century.

Thus, depending on your lifestyle preference, with the variety available within our small nation, there will always be a spot in Singapore which suits you.

Property market showing signs of awakening

Sturdee-ResidenceAlthough property prices have been falling, the show of interest from the buying public has never really waned, instead they are now simply more aware of their options and have become more selective in their investments.

Signs that the market lull might be broken soon have come from the positive take-up of units in 2 recent launches at The Visionaire Executive Condominium (EC) and The Sturdee Residences. 158 units were sold the 632-unit The Visionaire EC at a median price of $811 psf while prices averaged at $1,550 psf at the 305-unit The Sturdee Residences. Buyers at the private residential project have gone mainly for the smaller one- and two-bedders though 3 of its 8 penthouses have already found new owners. Two of the 1,830 sq ft penthouse units were sold at $3.2 million each.

Gem REsidencesThe Parc Life EC and private residential project Gem Residences will launch this weekend. Private condominium Stars of Kovan is expected to launch next month. The latter is a mixed-use development consisting of 390 residential units, 5 strata terraces and 46 shops. Prices are expected to range between $1,550 to $1,600 psf. E-applications for Parc Life have already exceeded the 660 units available and there is hope that uptake will be on the uptick at both these projects.