Jurong will have more ECs

When Westwood Residences in Jurong comes up, Lake Life will not be the only new executive condominium (EC) in the Jurong district. Applicants will have better news as prices are expected to hover around the lower end of their price expectation.

Westwood REsidencesWestwood REsidences

Photo credit: thewestwoodresidences.com

Developers are gradually becoming more attuned to buyers’ pricing sweet spot and are more likely to price new units within their affordability range. If response at Lake Life EC was anything to go by, this new executive condominium and its fresh new prices may well be hot property. However, second-timers with a subsidised flat or EC will need to take note that the latest regulatory change will mean they will be subjected to a resale levy of $40 to $50 psf. Upgraders and first-time applicants will however enjoy a discount or subsidy.

Developers, Koh Brothers and Heeton Holdings have indicated an estimated price of $800 psf. The original price range was $790 to $840 psf. Bookings for the new EC units at the 480-unit Westwood Residences will commence on May 30 but show flats will be open by this weekend. The property will lie in the exclusive area of Westwood and just a few bus stops away from the Boon Lay MRT station. It also lauds itself as the first bike-themed development, with a focus on sports and lifestyle related offerings such as an aqua gym, bicycle garage and outdoor mini velodrome.

Resale private property prices dipped in April

Could it be that the competition from new properties are finally kicking in? Besides the property cooling measures such as loan limits and raised stamp duties, are buyers remaining cautious this year as they watch and wait?

NorthparkResidences2NorthparkResidences2Property analysts are expecting the property prices to remain mostly stable for the rest of the year, with buyers and investors beginning to suss out good deals and snapping up units. Further property cooling measures seem unlikely and any shifts in policy would probably be in favour of sellers. It goes without saying, this year might be the year of the buyer, but the next would be anyone’s guess.

In April, figures showed that buyers are no longer underpaying for properties and are purchasing them at market value. The biggest rebound came in District 16. The number of resale transactions, despite all the news about property prices and transactions falling, have been growing overall on a year-on-year basis. That itself is promising news for the industry and investors.

Thus the slight drop in resale private non-landed properties last month could be due to new launches such as that of Northpark Residences in Yishun. The relationship between new and resale, private properties and HDB flats, will always be symbiotic. But without a doubt, all will be tied to global and domestic economies and policy changes.

 

Rise in private condominium rental

Could the market be turning on its heels, headed up the charts? Vacancy rates have been falling as the number of rental properties finding tenants have been on the rise.

Property analysts are however not positive about the numbers. They have attributed it to statistics more than the actual market sentiment. Rental rates have instead fallen 1.7 per cent in Q1, which could show that the number of new occupant-ready properties entering the market last and this year may have shaven a chunk off the property rental pie. From now to 2018, almost 67,300 new units will flood the market, giving a possible indication of how the market will react in the months or even years to come.

AstoriaParkCondoLocation nevertheless still has the ability to bring rental prices up a significant notch. At the Astoria Park condominium near Kembangan MRT station for example, rents have risen for the first 3 months of the year. Older condominiums may have a battle at hand as newer properties offer fresher facilities; though the proximity to amenities, transport nodes and schools may put the former right back on the tenants’ maps. Landlords of older developments may also have an upper hand in their option of coming down on prices since they may have purchased the units at a lower cost.

As more new residential properties come into the fold in the months ahead, the symbiotic relationship between rental and sale prices could become more obvious and things may seem a lot clearer then.

 

Offers galore in blossoming EC market

Executive condominium launches in the recent months haev proved attractive to the buying crowd, especially after years of quiet on the ground.

But with 7 more launches planned for the later part of the year, will the market be poised for a saturation point? Or will buyers welcome the competition and options? Most of the new launches will be near existing EC sites in the North and North-east regions, which could mean stiffer competition for the developers.

Westwood ResidencesOne project which may however prove promising is the Westwood Residences in Boon Lay. Together with Lake Life EC, they could the only 2 executive condominiums in Jurong since 2010. The rarity, coupled with the pent-up demand could means buyers may be willing to pay slightly higher than average prices for units here as compared to ECs elsewhere. Property experts are expecting the median prices for ECs launched later this year to hover between $750 to $770 psf.

Currently, the average selling prices for ECs are at around $800 psf. But buyers have not been particularly responsive to this pricing level and with the introduction of thousands of new units over this and next year could bring the competition higher and prices lower. The dip in resale HDB and private condominium prices since the high in 2013, would also mean that ECs have to priced realistically in order to entice HDB upgraders and buyers.

As the market segments react to one another, the EC being hybrid between private and public properties, may also find themselves having to price themselves appropriately between these two market segments.

 

Yishun no backwater town

A somewhat laid back atmosphere that speaks of a slow and nature-filled life with occasional bursts of activity and energy describes the fringe township of Yishun. This HDB estate once was called “Ulu” (a Singaporean slang for being out-of-the-way and backward), but it has progressed nicely into the genteel gem it is today.

It seems to live life just the edge, growing and filling in a gap that straddles bustling and slow. Latest news of the redevelopment of the Yishun Central, with Frasers Centrepoint Homes taking the lead in building a mixed-use condominium and mall development, Northpoint City, in the vicinity, the Yishun area may be seeing a revival of sorts.

The EstuaryStretching out in a large area between Chong Pang, Sembawang and Yio Chu Kang, it has quite the space for development and expansion. Some of the current private properties already in its midst include Orchid Park, Lilydale and The Estuary. Newer residential developments include Nine Residences, Symphony Suites and the recently launched Northpark Residences.

There are a considerable number of HDB flats in the area as well, and property prices are considered reasonable and affordable. For now. New BTO (Build-to-Order) flats were also introduced into the mix starting from 2013, putting a good 9,500 units in the estate, including Yishun Greenwalk, DBSS ADora Green and Vista Spring.

From kampung to new town. The kampung spirit remains strong.

Affordable units below $1 million at Botanique @ Bartley

Over the weekend, the 797-unit Botanique @ Bartley condominium opened for viewing at pocket-friendly prices. Situated on Upper Paya Lebar road, near Bartley MRT station, the Paya Lebar Methodist Girls’ School (Secondary), Maris Stella High School and The Australian International School, this new property seems like it has all the ingredients for an expensive price tag.

But instead, more than 70% of its units were pricedbelow $1 million, making it one of the more affordable new properties around town. With prices starting at $598,000 for a one-bedder, up to $1.68 million for three-bedders. While most of the units here are smaller, with one-bedroom apartments ranging between 495 to 689 sq ft and 926 to 1, 356 sq ft for three-bedders, the total quantum prices are more palatable with upgraders. A floor area comparision will however reveal that at $1, 300 psf, it is actually priced higher than the nearby Bartley Ridge which went for a median of $1, 296 psf.

Botanique@BartleyDeveloped by the UOL Group, the Botanique @ Bartley will feature “flexi” units, referring to the two- and three-bedders which can be converted into dual-key apartments. Some of UOL’s other properties include the popoular Thomson Three which only has eight units left unsold, Seventy St Patrick’s and Riverbank@Fernvale.

The rest of the year might not be hectic on the new private property front, with more attention possibly given to executive condominiums, thus supply might not necessarily overtake demand. How will that impact both the private and public housing markets?

Will adjusting HDB income ceiling help “Sandwich class” own a home?

As earning power climbs, the combined household income for an increasing number of families now fall just above the income ceiling for public housing. This puts them just out of reach of a new HDB flat yet still quite a distance away from being able to afford a private property, especially as inflation and the financial stress of providing for a family kick in.

Forestville Executive Condominium.

Forestville Executive Condominium.

The combined household income ceiling for a new HDB flat currently stands at $10,000 while the same for an executive condominium (EC) is $12,000. The income ceiling was last raised in 2011, from $8,000 to $10,000 for HDB flats and $10,000 to $12,000 for ECs. Over the last five years, there has been a significant increase in the number of couples and families falling into the “sandwiched class” of middle-income households in Singapore. Especially as Singaporeans now tend to marry late in life, when the husband and wife’s earning capabilities are at a certain level which puts them just beyond qualifying for a new HDB flat might be facing the most headaches.

Is there a way around it as public housing was originally aimed at helping those in need. But since there might always be a section of the population who will find public housing out of reach and private housing too much of a financial burden or risk, will raising the income ceiling really help elevate their circumstances only to be a burden to yet another group of citizens? What other options are available for these middle class families? Will they be looking at resale HDB flats as the only viable and affordable option?

Lowered condominium prices scores sales

Two property launches over the weekend signaled a drop in new developer-launched private non-landed property prices. Kingsford Development’s 1,165-unit Kingsford Waterbay at Upper Serangoon launched at median prices of $1,050 to $1,180 psf. With those prices in mind, buyers snapped up 140 units over 2 days, a considerable success.

Over at GuocoLand’s 1,024-unit Sims Urban Oasis, prices ranged from $1,295 to $1, 595 psf. 29 sales were secured over the weekend, bringing the total to 170 units sold since 14 February. Developers’ spirits are buoyed by consistent daily sales. Most of the buyers were young Singaporean couples and upgrades.

KingsfordWaterbayProperty launches coming up in the next few months include Northpark Residences in Yishun and Botanique at Bartley. The former has its proximity to the Yishun MRT station and the attached shopping malls as a unique selling point; the latter might be a little tougher to market as the area is already saturated with a number of newer and resale apartment developments. But property experts still expect demand to be present, though perhaps it will be strongly dependent on pricing.

The next quarter might be the right time to gauge the markets’ response to changing market trends and it might be a close competition between new properties, resale non-landed properties and executive condominiums.