Showflats season – Parc Riviera and Queens Peaks

Starting low and working the way up. That’s the strategy property developer, EL Development, will be taking with their latest project, Parc Riviera. They are hoping that buyers will continue to take the price bait and are thus pricing their units affordably and on the low side, with an option of raising prices later on should market conditions improve.

parcrivieraPhoto credit:

And this weekend looks like it will be busy one for the real estate industry as crowds are expected to take to the 2 latest private residential project offerings with relish, if recent buyers’ response to new condominium units are anything to go by. Buyers have been snapping up units at the recently-launched Alps Residences and Forest Woods condominiums.

Although Parc Riviera is only launching in November, their show flats will be ready for viewing this and next weekend. The projected average selling price at this 752-unit development in West Coast Vale is expected to stand at approximately $1,250 psf.

queenspeak2The 99-year leasehold Parc Riviera will feature  two 36-storey towers consisting of a range of units from 463 sq ft one-bedders to 1,711 sq ft four-bedders, though more than half will be smaller one- and two-bedroom units. Situated near the Pandan Reservoir and will feature rooftop pavilions and jacuzzi decks.

Another private condo project which will have their show flats ready for public viewing this weekend is Hao Yuan Investment‘s Queens Peak which sits near the Queenstown MRT station. Larger units are available at this 99-year leasehold development, ranging from 431 sq ft for a one-bedder to 2,002 sq ft for a five-bedder, including a penthouse at 4,768 sq ft unit.

Is new the new gold?

New private condominiums that is. The resale private condominium market may have a strong competitor in new private condominiums as prices in this sector become more competitive with developers offering various discounts and incentive payment schemes.

The TrilinqIndicative of the heightened activity in the new condominium sector was the 8.8 per cent rise in transactions last month, from the 468 units in August to the 5o9 units in September. And this was in spite of the lack of major launches. In fact, property analysts are expecting a further 8 to 10 per cent rise in the number of new condo units sold this year. There were 7,440 new residential units sold last year.

The highest sales number of 297 units sold last month came from properties in the city fringe, followed by 144 units in the suburbs and 68 units in the core central region. Some of the best-selling projects were Lake Grande, The Trilinq and Kingsford Waterbay.

queenspeakcondoIt seems, buyers are finally coming to terms with the stabilising of property prices, almost three years after the first property cooling measure was rolled out. They may have relinquished further expectations of price declines and are picking off deals whenever they come up in the market.

There will be 2 major launches next month – Parc Riviera and Queens Peak and new homes sales are expected to cross the 1,000 units per month mark in the next 2 months.


Fall in Q3 Private home prices

Private home prices have been falling for the past 3 years, 12 consecutive quarters to be exact, and it’s currently at it’s lowest in 7 years. Last quarter’s fall was the steepest at 1.5%. So it does seem like the property cooling measures which were rolled out at around the same time have worked. And while the authorities are committed to continue having them in place, the real estate industry might have to bite down hard and stay the course.

threebalmoralEffects from the general global, regional and local economic markets have trickled down to the property sector as worry about the job market and a weakening economy affects demand and risk-taking. Though interest in high-end core central region luxury properties may have improved, prices have yet to completely made a turnaround. Home prices in this segment fell the hardest at 1.8 per cent following a 0.3 per cent rise in Q2. Landed property prices also fell 2.2 per cent while previously in-demand city fringe properties saw a 1.3 per cent fall.

As the last quarter of the year will possibly see more new property launches in comparison to Q3 which was relatively quiet, and HDB rolls out its next launch of 5,090 new BTO flats in Bedok, Bidadari, Punggol and Kallang/Whampoa HDB estates in November, will existing unsold stock and resale private homes be on the receiving end of added pressure and competition?

European-living in Tampine’s new condominium

It looks like the east will be getting a mountain deal of a new condominium development with a 9-block, 626-unit Swiss Alps-inspired one in Tampines. Named The Alps Residences, it is designed by a Switzerland-based architectural firm and the developers promise nature landscaping and a general ambience akin to living in well, the Swiss Alps, sans the alps of course. And resort-living it could be, as it will boast 30 facilities including a 50-metre lap pool, roof terraces, 2 shops and more than 100 bicycle lots.

alpsresidencesMCC Land launched a preview of the 99-year leasehold project last Saturday and it will be one of the larger launches this quarter, following weaker market showing due to the Hungry Ghost month in August. This will be their second private residential project in Tampines, the first being the Mediterranean-inspired The Santorini.

SantoriniThe Alps Residences is situated near the Tampines Regional Centre which consists of a hub of 3 shopping malls, the bus interchange and also the Tampines MRT station. The project has a good mix of 182 one-bedders, 416 two- and three-bedders and also larger units such as four-bedroom apartments and penthouses. Unit sizes are ranging between 441 to 2,486 sq ft and prices are set between $900 psf to $1,200 psf. With one-bedroom units going for approximately $400,000, the prices are well within the affordability range of recent buyers. Completion is estimated for 2020.


Executive condominiums top August property sales

August was a good month for the executive condominium (EC) market, with all 3 top sellers coming from this particular property sector, namely – Treasure Crest in Sengkang, Sol Acres in Choa Chu Kang and Bellewoods in Woodlands.

Bellewoods ECUnderstandably, there were not many major property launches in August with only 590 units launched in the month at Victoria Park Villas in District 10. A total of 805 units were sold, less than half of the 1,921 sold in July, with 41 per cent of the month’s sales coming from ECs. But demand for these rare hybrid public and private properties seems to be rising.

The price gap between ECs and private properties may be closing in as resale private property prices continue to dip though there is still a considerable distance between these 2 property types. The median selling prices of all 3 top EC developments below $800 psf whereas average prices for private apartments are mostly above the $1,000 psf range.

Sol Acres Besides comparison with ECs, new developer launches have also been fighting market competition from completed resale units, providing discounts and other incentive schemes to entice buyers. As a hybrid between public and private housing, EC buyers can tap on HDB grants and subsidies in the initial purchase and after 10 years, are able to leverage on the private property status of their property, harnessing the full capacity of a private resale condominium.


More luxury homes above $5 million sold this year

The difference is 198 per cent – for Indonesians keeping their cash overseas without declaring it and in Indonesia for at least 3 years. And that whooping amount is possibly pushing wealthy Indonesians to pick up luxury properties in Singapore before the new law kicks in. Singapore will soon be sharing financial information with Indonesian authorities.

The TomlinsonAt the moment under a tax amnesty scheme, Indonesians pay a tax rate of 4 per cent and upwards on properties or funds outside of Indonesia. The rates are increased in stages up to 10 per cent up till March 2017, when the amnesty closes. It is uncertain if the information shared will be of both real estate and funds, but some buyers are understandably moving their monies into real estate ahead of time.

Local properties priced at $5 million and above have been attracting interest from Indonesians who have been closing deals quickly over the year. The number of such properties sold this year have already far surpassed last year’s, by almost 4 times. 30 properties valued at $5 million and above have been sold this year as of August, compared to just 8 the whole of last year.

Whitley ResidencesMost Indonesian buyers see the potential of high-end Singaporean properties and have been keeping an eye on the market, waiting for an opportune time to pick off prime properties. A total of 189 purchases, and possibly more as declarations of nationality is voluntary, were made by Indonesians from January to August this year.

More resale condominiums sold in July and August

Current Q3 property market figures are showing that while sales volume on a year-on-year basis has risen almost 60 per cent, with a 10 per cent rise in June and inching up a further 5.3 per cent in July, home prices have slipped consecutively for 2 months.

183 LonghausA total of 817 units were sold in August while 776 were sold in July. Prices of resale non-landed residential properties have however fallen by 0.8 per cent in August, following a 0.7 per cent fall in July. Most of the price decline came from suburban properties, led by those in the city fringes. The core central region private home prices have continued to rise 0.1 per cent. Overall, buyers are paying an average of $11,000 below market value last month as compared to $10,000 in July.

A few major new launches may have injected some competition into the market, fuelled by the rise in the number of completed private homes. District 20 of Ang Mo Kio, Upper Thomson and Bishan has however had a positive showing of buyers willing to pay up to a median of $18,000 above market value for properties here. The maturity of these estates, coupled with the number of schools and proximity to town may have driven prices up. Surprisingly in district 15 which consists of Katong, Marine Parade, Joo Chiat and Amber Road, buyers are shying away from the high prices properties here used to command.

Belgravia villasThe Hungry Ghost Festival in August may have dulled sales figures slightly, though property analysts expect only marginal adjustments in the months leading to the end of 2016.

Property market’s road to recovery a gradual one

While the global economy remains in the doldrums and the authorities keep the local property cooling measures in place, Singapore’s real estate market is likely to see a gradual gentle road to recovery, starting with stabilisation.

LakeGrandeJuly’s sales figures show promise, with 1,091 units sold (excluding executive condominiums). That is almost double that of June’s 536 units. Although August’s numbers may dip due to the Hungry Ghost month and the lack of major property launches, September will see the launch of Parc Riveria at West Coast Vale and Forest Woods in Serangoon. The former is developed by EL Development and the latter by City Developments.

Consumer interest on landed homes, a rare commodity in local context, has also shone of late. CapitaLand‘s launch of 6 Victoria Park Villas‘ units which all sold between $4.3 to $4.9 million led the way to positive market sentiments. July’s major launch of the highly affordable units at Lake Grande largely boosted sales figures, accounting for 40 per cent of the total number of units sold.

VictoriaParkVillasProperty analysts are expecting monthly sales of 500 to 700 units for the rest of the year, totalling up to 8,000 units for 2016. Selling prices have remained steady in July while sales figures rose 22 per cent, signalling the start to the market’s road to recovery.