Almost all Lake Life EC units sold

At $799 to $930 psf with starting average prices of $685,000 for a 2-bedder to close to $1 million for a 3-bedder, units at the Lake Life EC in Jurong flew of the shelves over the weekend. Only 12 out of its 546 units  were available as of yesterday.

Lake Life ECThe palatable quantum prices of units at the executive condominium (EC) by Evia Real Estate could be the main draw. With a lower loan limit and other cooling measures in place, property buyers are now on the lookout for properties with a lower total selling price rather than focusing on per-square-foot prices. Evia Real Estate has done their homework well, and projected that the deepest pockets of buyers for the Lake Life, according to the demographics of the Jurong district, would be not more than $1.1 million. The pent-up demand for ECs may also have accounted for much of the rush for units in this quickly developing region. The Jurong and Jurong Lake district looks set to be one of the newest and busiest areas for development under the government’s island-wide growth plans.

URA Jurong Lake District

Photo credit:URA

In fact, some of the buyers were originally considering private properties in the area but decided instead to go for the EC options instead. Many saw it as a good investment even though they were purchasing units to live in for the moment. Executive condominiums are a hybrid between public and private property and can be sold after a 5-year minimum occupation period (MOP) in the open market. After 10 years, it will become a private property and may fetch even higher prices.

The other 2 ECs entering the market at the same time are Bellwoods and Bellewaters, developed by Qingjian Realty.

Housing supply to slow down in 2015

The authorities have announced that public housing supply and land sales will slow down come 2015 as the market has showed signs of cooling and stablising after the many rounds of property cooling measures rolled out over the past year or two.

West Terra HDB Bukit BatokPhoto Credit: HDB

The Minister for National Development, Mr Khaw Boon Wan, has commented in a blog post that the supply of new HDB flats will slow by 25 per cent next year. There will only be 4 launches next year, compared to the usual 6 per year. Each launch usually puts out up to 4,000 new Build-to-order (BTO) flats. The rate of successful BTO flat applications has been on the rise as reflected in the few recent launches. More married couples achieve success in getting their new flats, and the authorities have been allowances for couples either opting to apply for a flat with their parents, or for one near their parents. In addition, parents who opt to apply for a flat in a non-mature estate to be near their married children, will also receive priority.

The slight shift in policies may ensure that families remain close-knit and are able to receive help when needed. It may also help with a shift in aging mature estates and introduce a more age-balanced population per HDB estate. Mr Khaw Boon Wan also hopes that the move will help newlyweds plan for a family more efficiently and in turn increase Singapore’s population with a higher birth rate.

In the private property sector, the number of land plots being sold for executive condominiums and private apartments has already been reduced this year, though the industry might see a further reduction come 2015. But will this mean a decline in the building, construction and property industries? Or has the previous land sales and launches been sufficient to keep the industry going for the next few years? Which part of the cycle is the property sector in at the moment and are we set for a boom or lull in the next year?

New private homes – Sales lacklustre

The hungry ghost month and the lack of new property launches during that time have affected new home sales in August. Sales were down 15% and only 432 units were sold although 351 units in previously-launched developments were put up for sale.

The PanoramaMost of the sales came from suburban properties, especially from newer launches such as The Panorama in Ang Mo Kio and Coco Palms in Pasir Ris. Median selling prices at the former was $1,249 psf and $1,046 psf at the latter. Whilst Eight Riversuites launched around the same time as Coco Palms in May 2012, the Whampoa East property fared better with average prices at $1, 345 psf. Positive sales at these few developments could be due to the lower prices at its re-launch. The Panorama for example saw sales picking up once median prices were lowered during its relaunch in May. It was official launched in January this year.

But in the upcoming months, home sales may see a rebound as new launches in the pipeline bring a surge of buying interest. New launches include Marina One Residences, Highline Residences, Seventy St Patrick’s., and a few executive condominium developments such as Bellewoods and Bellewaters EC.

Property analysts are however cautious about the amount of increase in home sales, and the overall sales figures for 2014. The TDSR (total debt servicing ratio) framework and other property cooling measures such as stamp duties for additional properties, may keep the numbers suppressed. Some developers could also be holding their launches for next year in wait of any policy or market shifts.

Toa Payoh’s facelift

As one of the oldest mature HDB estates in Singapore and HDB’s second satellite town, Toa Payoh has a past which evolved with the growth of the nation. As more new towns such as Punngol, Sengkang and even newer ones in the future such as Bidadari come up, older estates are welcoming timely upgrades.

And it is now Toa Payoh‘s turn as the popular estate saw an overwhelming response to the BTO HDB flats launch a couple of weeks ago. With it’s central location, full-fledge sets of amenities, MRT stations, bus interchange and established schools in its midst, it’s an estate which will stand its own for a long time to come.

TreVista in Toa Payoh Made up of mostly HDB flats, there has hardly been any new private homes launched in the district for almost three years now. However, a plot of land near  the MRT station has been put aside for development, and should a private property be launched in the spot, it will be sure to bring in the buyers and fetch high prices.

In the current market, resale flats sales have dipped from 25 to 15 per quarter, but rental prices and value appreciation of private properties in Toa Payoh has remained stable. Average prices stand between $1, 121 psf to $1, 460 psf with monthly rents currently between $3,60 to $4,10 psf. The private apartments in the area now are Trellis Towers, Oleander Towers and Trevista.

The years ahead hold great promise for the estate and its continued growth seems imminent.

Landed housing gets a boost

Through semi-detached homes. Apparently prices of these landed properties have risen 4.2 per cent in the last 3 months, contrary to what most people would expect of a dimming property market. Usually the first property sectors to show significant decline are landed and luxury homes, followed by mass market suburban non-landed properties and resale HDB flats. But this rare glimmer of hope in the landed property sector has brought a little cheer to the otherwise gloomy industry.

semi-detached houseThe psf prices of semi-detached houses are now comparable to that of bungalows. But the rise could be due to the popularity of these property types with the rising group of buyers who are able to upgrade to landed properties but not yet able to afford the high quantum prices of a big landed home with a high overall land area. Add the group of buyers who may have originally been looking at bungalows but now find themselves strapped down by the property cooling measures, and there is a ready pool of potential customers for the sector.

Bungalows, being the rare commodity they are, will naturally continue to command high asking prices, which is unlikely to come down anytime soon as most owners have a strong holding power and are willing to wait out any industry recessions. However, property experts are quick to point out that the rise could be temporary and does not mean that landed property prices are on the rise per se. As the property cooling measures continue to restrict, the market will need to show significant adjustments before any change in policy will happen, which may then signify the start of a new era for the industry.

Queenstown has more flats to offer

One of the oldest HDB estates in the West, Queenstown looks set to have a fresh set of HDB flats. For the 3,480 flats from Tanglin Halt road to Commonwealth Drive will be torn down and rebuilt under the Selected En Bloc Redevelopment scheme.

Queenstown-HDBThis will be a promising move for the mature estate as these two to four-room flats make way for newer, bigger blocks. Most of the residents were offered replacement flats and compensation based on current market value of their units. Most three-room HDB flats in the Queenstown area are priced between $305,000 to $390,000 according to current HDB transaction values.

Residents can look forward to new sky gardens and terraces, panoramic views of the city and new shops, eateries, supermarkets and hawker centres. Considering these flats will have a new 99-lease of life, future residents will be stoked that their new flats will possibly fetch even higher prices in the future.

Commonwealth TowersOne of the more prominent private property offerings in the area is Commonwealth Towers, which is particularly attractive to buyers due to its proximity to the Queenstown MRT station. In nearby Alexandra and Tiong Bahru, there are other popular apartments such as Highline Residences, Ascentia Sky and Alexis. Will surrounding properties also benefit from this redevelopment process?

Paya Lebar thriving area for properties

A largely commercial and industrial area, one would not have thought Paya Lebar would bring much cheer to anyone but the landlords of commercial properties. But the large number of foreign workforce these businesses will bring to the surrounding districts may be something to look forward to.

Katong Regency - Mixed-used development on Tanjong Katong Road.

Katong Regency – Mixed-used development on Tanjong Katong Road.

Slated for sale in the next half of 2014, Paya Lebar Central will see a 132, 000 sq m new building with offices, retails businesses and even a hotel. What now stands on the spot is the Singapore Post Centre amongst other industrial properties. Its proximity to the city centre and its competitive rental rates will no doubt make it one of the more popular commercial districts in the country and residential properties nearby could be looking at positive rental possibilities.

There are a variety of both landed homes and high-rise apartments in Paya Lebar, Joo Chiat, Katong and Marine Parade. Urban Villas is a cluster of private terraces and semi-detached houses which are freehold. In the Katong area, there are Katong Regency, The Lush and Aura 83 condominiums, an area which has been a hive of activity since the opening of many new eateries and shops and also the 112 Katong shopping mall.

The East has never looked so exciting. And we can expect it to be the next big thing in a few years’ time.

Commonwealth – Properties not so common

Considered on the city fringe, just a little way off Alexandra which is an area popular with expatriates, Commonwealth may see renewed buyers’ interest as new private condominiums enter the mix.

The latest launch is Commonwealth Towers on Commonwealth Avenue. It will be officially launched on May 1 and is expected to be priced at $1, 600 to $1, 800 psf, it is relatively more expensive than similar properties in its vicinity, such as Queens condominium, Alexis, The Metropolitan, Ascentia Sky and The Anchorage private apartments. These are older residential developments and units are available on the resale market. Rental demand has been strong, though property experts are expecting competition to heat up once the newer condominiums are up and running.

The AnchorageAccording to URA figures, rental prices at the Queens averages at $4.32 psf per month. Sale prices were at $1, 350 psf. The Alexis commanded even higher prices at $6.65 psf and units sold at an average of $1, 939 psf, possibly because at 2 years old,  it is much newer than the Queens which was completed in 2002. Also, a third of the 293-unit The Alexis are shoebox apartments and are easier to rent out.

Alexis @ Alexandra CondoHowever the tightening foreign workforce rulings and immigration regulations may prove challenging for landlords looking to rent out their property especially with the rise in new units in the Redhill and Tiong Bahru area. Competition will always be present, but good location, providing attractive rental conditions and ultimately good timing may beat all that.