October shows dip in resale private home prices

In the current market, where sentiments and demand are weakened by the property cooling measures, it might be idealistic to wait for the market to climb back to its peak in 2009 and 2013. But angle of decline for resale properties has been gentle, with a 7.6 per cent fall from January 2014.

26 NewtonPhoto: 26 Newton condo apartment

Though resale private home prices have dipped since then, the lowered prices may have brought more buyers back into the market. Resale properties or condominiums which were new launches between 2010 and 2012 have relatively larger floor area and in the current market, and buyers who are looking for a permanent home may find the fact that they have higher bargaining power a more-than-valid reason for approaching the resale property market.

Properties in the city fringes fared better as they are priced much lower than city centre properties, and yet offer the proximity or a good location and hints at exclusivity. Resale prices here have fallen just 5 per cent since the highs in 2013. This region has always been popular with investors and owner-occupiers and the lack of new launches here of late may have raised the number of resale transactions.

Suburban resale properties are facing a slightly different situation as the large number of new units have decreased the leasing and resale demand. Fiercer competition may have caused some owners to lower prices, more so than ever, buyers and tenants are finding the ball in their court.

Resale HDB flat prices hold steady

At this point of the property market cycle, prices holding steady could be a positive sign, indicating effectiveness on part of the cooling measures which did not crash the market but rather, merely realigned the prices gently. The change evolved over a long period of time, which is more palatable for sellers and the lowering prices may have also increased sales volume by enticing buyers.

BidadariPhoto credit: HDB

A 0.3 per cent fall in HDB resale flat prices indicate a slowly stabilising market. Although prices have been falling for 9 quarters straight, the last quarter showed the lowest rate of decline. In 2014, overall resale HDB flat prices fell 6 per cent. Industry analysts are expecting a smaller dip this year of 2 to 2.5 per cent. Some buyers may have been holding back on buying in the open resale market, in wait of November’s major launch of new Build-to-order (BTO) flats which includes prime units in Bidadari and Punggol Northshore.

Suburban resale private property prices are falling at a steeper rate of 1.3 per cent and if the prices fall even further and at a quicker rate than HDB resale flat prices, the gap between the 2 market segments will narrow. This could then draw a substantial pool of buyers from the resale flat market into the private property market, which could then give sales volume a boost and slow down the price decline in the private property sector.

Sims Urban Oasis

Photo: Sims Urban Oasis

Property developers are keeping a close eye on whether cooling measures will be adjusted, and pricing their units accordingly. We could also expect a more staggered schedule of new launches as developers become more careful about not cannibalising on one another’s market share. More so than before, it may be a matter of timing and opportunity.

Private property prices remain level

The NUS Singapore Residentail PRIce Index (SRPI) showed a 0.1 per cent rise in private non-landed home prices in September. But property experts say it could simply have been a post-election response, when buyers might have held back to see if the property cooling measures would be removed. Now that the authorities have indicated the cooling measures are here to stay, at least for now, some buyers may have taken advantage of the already-lowered prices and closed some transactions.

The Scala condo Serangoon

Photo: The Scala condominium in Serangoon

The resale private home market in particular has benefited from the lack of new property launches in September. Non-central units rose 0.3 per cent while smaller units gained a 0.4 per cent footing. But as 2016 brings an onslaught of completed new properties, the resale market may have to brace itself for a bigger hit. Industry players are expecting home prices in the non-central regions to continue on a downward trend as the number of completed units there rise. Leasing may also prove difficult as there will be a huge leap in supply while immigration policies are now tighter, which implies a lower demand.

While recent figures point to tenants looking towards to the central regions for leasing prospects, high-end properties may be hitting a wall in both sales and leases as competition has lowered rental prices in the suburbs and more tenants are seeking options there. The property market seems to be reaching a standstill as the year draws close and the festivities take over, the real time to watch the market might be the first quarter of 2016, which will set the tone for the year ahead.

Property prices soften last quarter

Property market prices seemed to have fallen once again as Q3’s numbers show. Weaker market sentiments as well as a weakening rental market seem to have taken a toll on property prices and sales volume. Resale HDB flat prices were down 0.3 per cent and private property prices down 0.9 percent in Q3. In a year-on-year comparison, HDB resale prices have fallen 9.8 per cent and private property prices 8 percent since 2013. Property analysts have expected a drop in prices this year of between 4 to 6 per cent.

Queens Condo Stirling RoadWhile many private property owners may not yet be feeling the impact of the price decline, those who truly want to sell their property may be faced with the dilemma of dropping their asking price in order to close the deal. With more readily available industry information, buyers are now more aware of market prices and making more informed offers, which places the ball in their court.

The HDB resale flat market seems to be stabilising. Last month’s price decline is the smallest thus far, with the previous month seeing a 0.4 per cent drop. As most HDB flat buyers are able to service their loans using their property using Central Provident Funds (CPF), they may be less affected by a weakening economy and rising interest rates.

How the market fares moving ahead, will be largely dependent on the economy. The 1998 Asian financial crisis is a good reminder of how policies, jobs and industries are closely tied.


Quality of life in quality homes

The number of private residential properties out there have blossomed, and with the options so far and wide, how do you narrow down your choices?

Location is often one of the first considerations for time-conscious buyers, but there should also be some leeway, depending on a balance of affordability and other factors such as age of the property, to consider quality of life and the lifestyle you’re in search of.

There are now a good many more properties offering waterfront living, or high-rise units with scenic views of the city of greenery than before. Take the 147-unit Riverbay apartments for example. Though not a massive development, its smaller size provides an exclusivity and quiet, especially with its view overlooking the Kallang River. Located at the fringe of the city, it also offers lush greenery and is close by the Kallang Park Connector. Other pros include the provision of a number of schools nearby including St. Andrew’s Junior and Secondary schools and Junior College, and the Stamford American Internationl School.

Suites@OrchardAnd if it’s stylish interiors and city-centre-living you’re looking for, then set your sight on properties in district 9 – Orchard and River Valley. Properties in this areas are pricier, but they do come with many pluses such as quality interiors, fittings and finishes; and are just a quick walk away from the Orchard shopping belt and MRT stations. Near the Dhoby Ghaut MRT station, in fact just next to the Plaza Singapura shopping mall, is Suites at Orchard – a 10-storey project with a range of units ranging from one-bedders to penthouses.

But if it’s resort-style living you are after, then looking East would not be such a bad idea. Take Palm Isles in Flora Drive for instance. It is situated close to Changi beach, though they already have resort living down pat right on their doorstep with dip pools, spa pools, lounge pools and lap pools all in its midst. The development also offers one of the few landed houses within a private property compound – 28 three-storey homes featuring 3,757 sq ft Garden Homes and 3,014 sq ft Garden Terraces.

Though choices are aplenty, and it is wise to shop around till you find a unit you like, narrowing down on the kind of lifestyle you want will help you be a step closer to your dream home.

The Criterion EC in Yishun

One of the latest executive condominium (EC) offerings certainly meets quite a lot of criteria for a good property. The Criterion EC in Yishun, jointly developed by City Development Limited and TID private limited, is set to yield 505 residential units by 2018.

TheCriterionThis new EC will feature units will range from two- to five-bedders and exclusive penthouses which offer scenic views of the golf course at Orchid Country Club or the Lower Seletar Reservoir. This new development will also offer flexi-units which allow buyers to select a room configuration that best suits their needs. Plus, a high percentage of the units will also have the optimal north-south facing orientation which most home owners look for to avoid the heat from the rising and setting sun and also allows for natural ventilation.

Its location also puts it in close proximity to the Yishun MRT station and bus interchange, the up-and-coming Northpoint City and a good number of schools, not to mention the Yishun Sports stadium and Sports Hall. Medical facilities in the vicinity include the Khoo Teck Puat Hospital and Yishun Community Hospital.

Buyers looking to book a unit can first view the show flat daily from 10am to 7pm, located near at the end of Miltonia Close. They will also be interested to know that The Criterion is the first EC to offer a microbubble spa from Japan aside from the range of more than 50 facilities promoting varied lifestyle activities such as yoga, cycling, swimming, starlight dining and community farming. How’s that for a modern living microcosm for you?

Private property market – The road ahead

The outlook for private properties seems a little vague for the moment. Though the market seems to be enjoying a respite, with prices maintaining its current level, and prices have risen slightly over the past two months, property experts are expecting an overall fall of 3 to 4 per cent in the Singapore Residential Price Index (SRPI) this year.

Buyers looking out for good deals are picking up units across both the central and non-central regions. Recent increases in the SRPI could be due to the rise in number of transactions especially in the central regions with 0.6 and 0.2 per cent increases in June and July respectively.

WoodhavenThe rental market, however, has remained weak, especially in the suburbs. And as rents begin to fall in the central regions, many tenants are making quick comparisons and opting to move into more centrally-located properties instead. For example, a private 2-bedroom condominium unit in Woodlands is being rented out for $2,000 a month, which is comparative to leasing a 3-room HDB flat.

But for buyers and investors who are considering purchasing private properties, investing in bigger resale or new properties may be preferable as smaller units will be facing fiercer rental competition once many of these units reach completion next year.

Choa Chu Kang’s Executive Condominium Future

With 11 bids for an EC (Executive condominium) site in Choa Chu Kang, it looks like the estate may be looking at 490 new homes in the next 5 years. The avid response could be due to the huge decrease in land supply this year and the possibility of the government further reducing the supply of land in the next year. In 2012, 6 EC sites were released in the second half alone; whereas this is the only EC site release by the government in the first half of  this year.

The BrownstoneCompared to last year’s EC site sales in Choa Chu Kang, the current site went for lower bids, and selling prices are expected to hover around $800 psf. The previous sites which were sold last March and September last year are however, closer to the Choa Chu Kang MRT Station.

Though there are 7 EC properties waiting in the wings for their big debut, and despite news that the EC vacancy rate was at 14.1 pre cent in Q2, developers are positive about the potential earnings from these public-private hybrid properties and are confident about the uptake. In Q2 alone, there were 2, 232 unsold EC units.

But if sales at last weekend’s launch of The Brownstone EC were anything to go by, the developers have little to worry about. 185 units were sold in the weekend alone, making it one of the most-sold EC launches this year.