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 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.

New homes in District 10 – Victoria Park Villas

Soon to nest in the midst of District 10 will be 106 semi-detached houses and 3 bungalows totalling 403,000 sq ft.

VictoriaParkVillas

Victoria Park Villas is a new development by CapitaLand situated in the junction of Coronation and Victoria Park Roads. Prime area indeed as it is only a 10-mins walk away from Farrer Road and Tan Kah Kee MRT station, not to mention having the selection of many choice schools down Bukit Timah road.

Launching tomorrow, 3 Sept, these 109 homes making up Victoria Park Villas are 99-year lease properties projected to sell at around $2,000 psf. Though on the high side, consumers will have to realise that having your own land even for awhile, will cost. The property sizes will range between 2,153 to 3,835 sq ft for semi-detached houses and 10,904 sq ft to 11, 539 sq ft in floor area for the 3 bungalows. Prices are expected to reach $12 million for the latter. Other similar properties in the King’s Drive, Hillcrest road and Greenwood Avenue have sold for between $906 to $1,351 psf last year.

Ventura HeightsNew cluster landed properties are not a dime a dozen, thus the property size, exclusivity and location Victoria Park Villas offer may very well be worth its calling price. CapitaLand has previously offer deferred payment schemes for their other properties such as d’Leedon, The Interlace and perhaps soon, Sky Habitat and Marine Blue as well. Will they be likely to extend the scheme to their upcoming projects once they are completed?

 

Developers keen to build more ECs in Sengkang

Despite the substantial quantity of unsold inventory in the executive condominium (EC) market, the numbers have been decreasing as more units sold in the last quarter, developers are picking up on the changing market sentiments and have come out in full force at the most recent land sales tender for an EC site on Anchorvale Lane. There were 16 bids in total for the site which could potentially yield 630 units.

Treasure Chest ECAs the private property market continues to show price improvements, the EC market has followed suit. Executive condominiums are a hybrid between public and private properties and more often than not, offer an almost surefire appreciation in its value after 10 years when it transits from the former to the latter. It’s initial step into the market as public housing means buyers can utilise HDB grant and subsidies to shave off part of the selling prices.

There are a number of ECs in the vicinity of this Anchorvale Lane site, namely The Vales, Bellewaters and Treasure Chest. The last sold 72 units within a week of its launch in July. However developers must be positive about the outlook of the EC market. Admittedly, the situation may change in a few years’ time and as the estate matures and becomes more popular with young families, there may also be an eventual shift in demand.

The ValesThe highest bid of $240.95 million came from Hoi Hup Realty and Sunway Developments. With this $355 psf purchase price, property analysts are expecting the developers to price their units at $820 psf and above, which is a sliver higher than other EC projects.

New citizens new buyers of Good Class Bungalows

Buyers and sellers of Good Class Bungalows (GCB) seem to be gradually meeting on the same page as the price gap between them narrows and more transactions were recorded thus far this year – 19 to be exact, valued at a total of $438.17 million. In 2015, 33 GCBs valued at a total of $714.78 million were sold and 28 totalling $626.14 million in 2014. Analysts are predicting up to 30 GCB sales in 2016.

Leedon Road GCBEven though prices of these rare properties have not fallen much at all, investors’ interest seems to not have waned. Developer OUE have just picked up 2 sites from the British government in Nassim road at $1,652 psf for $56.58 million, a steal considering the median price of the area stands at $2,000 psf.

An increasing number of GCB buyers are new citizens, buying over these massive-sized properties from Singaporeans moving between property transactions and investment deals. These buyers see the potential in prime properties and the slightest of price adjustments will spike their interest in their search for property upgrades and prestigious addresses. Recent sales included a $27 million GCB in Gallop road and currently on the market are a $38 million Bukit Tunggal Road GCB sized at 14,000 sq ft and a $30 million Dalvey Road property on a 15,211 sq ft site.

 

New Jurong launch boosts July’s private home sales

MCL Land‘s Lake Grande took the lead in July’s property sales with 42.5 per cent of the month’s sales coming from this development. 464 out of its 500 units have already been sold at the median price of $1,368 psf.

LakeGrandeAcross the board, new private home sales have hit a one-year high last month with 825 suburban new private homes sold. In the city fringes and central districts, 213 and 53 units were sold respectively. This could be partly due to the rise in number of units launched, 624 in total, in July plus investors are taking advantage of the low interest rates and lower property prices to buy up available units with long-term potential.

Though the government has not yet eased up on the property cooling measures, they have held back the release of new land plots this year, which could have in turn helped clear unsold inventory. The executive condominium (EC) market is coming out strong with 830 units snapped up in July, more than thrice the 232 units sold in June. The 2 major EC launches last month were Treasure Crest in Anchorvale Cresecent and Northwave in Woodlands.

NorthwaveECPhoto credit: MCC Land

August may be a slower month as fewer deals are likely to be closed during the Hungry Ghost month, but as long as interest rates remain low, buyers will continue to scour the market for good deals. Property analysts are expecting the positive sentiments and increased interest to carry on to the end of the year.

More resale private properties sold in July

No movement may be good movement – as far as the current property market situation goes. Property analysts say any fluctuations in property prices or sales volume may be minimal for now. And as long as there are no drastic dips, the market is in good stead. Recovery may take awhile and it will probably be slow, a sudden rebound unlikely.

Hills TwoONeThere was a rise in property prices in Q2, though followed by a slight fall in July. Sales volume of resale private non-landed properties however has increased 31% and 770 units were sold last month, compared to the 586 in a year-on-year comparison. Buyers are back in action and are picking up deals which seem to be aplenty as more private properties enter the market, heating up competition in and between new and resale segments. The number of deals closed have been rising steadily since May with a 35.5 per cent increase followed by a 27.4 per cent increase in June.

For the rest of 2016, the resale market may see some heightened activity as stabilising prices prompt buyers who have waited long enough in the sidelines to jump back into the fold. The number of new launches this year is also considerably fewer than the last, and as buyers come to realise that prices are unlikely to fall further anytime soon, more may see the diminishing choices in the primary market as a sign to reconsider possibilities in the resale market.

 

 

New executive condominiums still in demand

There has been an increase in the number of executive condominium (EC) units this year, as pent-up demand is satiated by new EC launches in the first half of the year.

Parc Life SembawangDespite the rise in supply, Fraser Centerpoint Limited’s (FCL) launch of Parc life has no doubt been met with renewed interest as more young married couples and families look to these private public housing hybrids as a potential start to their future investment. 

After a 5-year minimum-occupation-period (MOP), their values often appreciate considerably, and after a 10-year period, they are privatized and their values can rise further, especially if they are in popular districts or near schools or MRT stations. Situated in Sembawang just 5-minutes by foot from Sembawang  MRT station, bus-interchange and Sun Plaza and overlooking Canberra Park, Parc Life EC’s units start at $770 to $800 psf and feature condominium facilities such as an infinity pool, tennis courts, spas and even a pet grooming pavillion. 

All of the 628 units are spread out between 3 blocks and unit sizes range between 980 to 1,055 sq ft 3-bedders to 1,281 sq ft 4-bedders and 1,550 sq ft 5-bedders. The other EC in Sembawang which was launched recently is The Visionaire, and for looking at the response, the EC market looks set to continue its good run well into the year.