Jurong Lake District – New sparkling Gem of the West

In less than 2 decades, the landscape of Singapore’s west-side could be said to be almost completely transformed. From the largely industrial factory districts to far-flung housing estates and only a few schools, new shopping malls, transport hubs, commercial and office spaces, private residential homes and spanking new build-to-order (BTO) flats now dot the scene.

Juronglakedistrict

Photo credit: URA

Jurong, once a busy but secondary commercial district, has been slated for development as Singapore’s second central business district (CBD). Every large city is almost certain to have one secondary commercial hub, as big and functional as the town-centre CBD, but newer and with more space for development. Just thing of Shanghia’s Pudong or London’s Canary Wharf. The Urban Redevelopment Authority (URA) is looking to transform the Jurong Lake District into a eco-friendly, futuristic township with homes, offices, hotels and filled with greenery and waterways.

LakeGrandeWith the Kuala Lumpur-Singapore high speed rail in its midst and as the convergence point of a number of new and existing MRT lines, there seems to be quite a far breadth for value appreciation of residential and commercial properties in the Jurong Lake district.

With Punggol and Jurong both set to include many good, new things may be coming the country’s way in the next decade or two.

New home sales dip in June

June and July are traditionally slower months for the local property market as the school holidays are followed by the Hungry Ghost month. The lower numbers may also have been due to the lack of new launches.

Kingsford HIllview PeakLast month, only 536 new private non-landed units were sold, about 49 per cent lower than the 1,058 units clocked in May. Despite the huge fall in market figures, property analysts remain positive about the journey as numbers have reached a plateau and the fluctuations between quarters have been minimal.

Following the slew of cooling measures implemented by the government over the past few years, th market has cooled considerably. In a year-on-year comparison to 2015, the 536 units sold is 43 per cent higher than the 375 units sold last year.

Suburban homes were the best sellers in May, with developments such as Kingsford Waterbay, The Glades and Kingsford Hillview Peak managing to sell off some of their unsold stock. Median selling prices were at $1,185 psf, $1,402 psf and $1,315 psf respectively. In previous months, sales were largely  boosted by developers offering discounts, but the units sold in June were not heavily discounted, signifying the return of buyers to the market as they gradually come to realize that prices will not come down much more.

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.

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.

 

Increase in Foreign property purchases

The local property market is looking a little zestier as more foreign buyers picked up units in the first quarter. This affirms the continued popularity of properties in Singapore as compared to those in other major Asian cities, or global cities for that matter.

Kingsford HIllview PeakProperty prices in Singapore are still relatively affordable, and the number of purchases made by non-Singaporean residents rose by 5.4 per cent, while purchases made by permanent residents rose by 2.6 per cent in Q1. The Additional Buyers’ Stamp Duty (ABSD) initially dampened sales, but as foreign property investors find themselves having similar, it not even higher, fees levied upon them in other markets, their return is not particularly surprising. While there are other emerging markets with even lower property prices, the stability and proven track record of Singapore’s properties has done the market justice.

Most of the properties foreign buyers hunt down are priced between $1.5 to $3 million. They bought 79 units at Cairnhill Nine and 38 units at Kingsford Hillview peak. Most of the foreign buyers were Mainland Chinese or Malaysians. Property analysts are keeping positive about the market’s prospects for the rest of the year despite the number of local buyers falling 18.2 per cent, though it could be due to the Chinese New Year holidays falling in the middle of Q1.

 

 

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?

Private home prices on the rise?

Twin-Peaks3Prices of completed private condominium units rose 0.3% in April, though analysts are putting it up to a technical rebound. After a relatively good start to the year, private home prices have fallen 1.1% in March based on the Singapore Residential Price Index (SRPI).

Some completed residential projects have seen promising signs of buying activity. The recent upward price adjustments could have been due to higher pickup rates of central region private homes such as units at OUE Twin Peaks and Ardmore Three.

Although the rise of home prices this year has been tentative, across the board prices have increased by more than 50% since 2009. Small apartment units lead the way with a 62.8% rise, followed by a 57.7% increase in non-central region units. Central region home prices are now 30.9% higher taking March 2009 as a point of comparison.

Ardmore THreeLast year saw a dip in luxury, prime district properties while this year, the increased supply of new completed private apartment units have pushed prices of units in the non-central regions down. Buyers remain cautious in their purchasing approach and are more price-sensitive though projects in prime locations and whose developers offer fresh new incentives will continue to bring in sales.

Small gems win big

Gem residences in Toa Payoh has already sold more than 55 per cent of their 578 units in their weekend launch last weekend. Median selling prices were at $1,426 psf and analysts are happy to report this a success as most new projects receive bulk of their sales within the first 2 to 3 weeks and a 50 per cent sales rate within the first month is already a positive sign.

Gem REsidencesAnd the prize came in small packages as units below 1000 sq ft were the clear winners last weekend. Approximately 60 per cent of all their 471 units below 1,000 sq ft have been sold while buyer picked up about 20 bigger-sized units. Gem residences is developed by Gamuda, Maxdin and Evia Real Estate. As Gamuda Land‘s first project in Singapore, the response is a happy one probably because prices were kept realistic and affordable. Their 980 sq ft tri-key or trio units were popular picks, 5 of their 37 units have been sold thus far.

The TerraceOther new launches which recorded sales over the weekend included Stars of Kovan with about 70 units sold of date, The Trilinq, Sturdee Residences, The Poiz Residences, Principal Garden, Botanique at Bartley, Symphony Suites, The Terrace, Sol Acres, The Amore and Bellewaters.