You are here: Home / Archives for property investment

25 Apr

Moving unsold apartment units – Good news for home buyers?

Private residential condo projects with unsold units may be moving them at discounted prices. Does this mean good things come to those who wait? What are the possible pros and cons in waiting out the initial rush for new properties?

Some developers are ramping up their marketing and throwing in discounts in a bid to move unsold units. Builders often have a stock of unsold flats in projects, even years after launch, so such campaigns are not uncommon. Bukit Sembawang marketed 19 units from its Paterson Suites, in Paterson Road, over the weekend with offers that effectively meant lower prices for buyers. These have been snapped up, leaving only two four-bedders, on the second and fourth floors of the luxury condominium, sources told The Straits Times. The freehold project was completed in 2010.

Paterson Suites luxury condominim on Paterson road.

One incentive could be the guaranteed 5 per cent rental yield for four years advertised in The Straits Times last Friday by the developer. This works out to $300,000 a year – or $25,000 each month – for four years, on a $6 million apartment. So if the rent falls below $25,000 a month, the developer will top up the difference. Owner-occupiers were given an outright 10 per cent discount off the purchase price. The two remaining units are around 2,200 sq ft and were quoted as costing just over $2,800 per sq ft (psf) on average, giving a price of more than $6 million each. The 102-unit development was sold for a median psf price of $2,720 in June 2007, shortly after its launch. The sources said a mix of locals and foreigners have bought units there.

Sources also said that in Simei, CEL Development, the property arm of Chip Eng Seng, is looking to release units at its project My Manhattan. The 301-unit condo was launched early last year, but experts said that the hefty price tag of about $1,219 psf could have deterred buyers earlier. It is understood that CEL Development is still deciding on how many units to release this time at the project, expected to be completed in 2014.

My Manhattan condo project.

Urban Redevelopment Authority data shows that only 134 units, or about 45 per cent of My Manhattan, have been sold so far. Mr Nicholas Mak, head of research at SLP International Property Consultancy, said it is common for developers to have unsold units a year or more after launch. He said that developers relaunch or revive promotions when the market gets hotter and they want a slice of the pie. ‘They may feel that there are now more buyers in the market, or are encouraged by the high number of sales in the previous months,’ he said, adding that prices may be revised to attract buyers.

Property consultants also said that Paterson Suites’ perks, while not new, have not been seen in the market for some years. Mr Colin Tan, research head at Chesterton Suntec International, said: ‘This is because in the central areas, developers see no reason for lowering prices… Now they feel confident enough to give such discounts and that it would attract more sales.’

The Straits Times © Singapore Press Holdings Ltd. Reprinted with permission.

Editor’s Commentary:
There is no guarantee of developers dropping prices for unsold units, thus it may all depend on what criteria you are measuring your property investment against. Location, rental potential, or long-term owner occupation?

18 Apr

iProperty.com EXPO April 20 to 22, 2012 at Marina Bay Sands Expo Centre Hall A

Fourth signature iProperty.com EXPO returns in April with exciting residential and commercial real estate investment opportunities

Complementary seminars open for investors and agents to gain insightful tips and advice

iProperty.com Singapore – the country’s No.1 property website – proudly presents the iProperty.com EXPO | International Property Expo. Held from Friday, 20 April to Sunday, 22 April 2012 at the Marina Bay Sands, Expo & Convention Centre, Hall A, the event will feature prominent international properties, prestigious property brands and exciting real estate opportunities under one roof.

Property investors and agents from around the region and beyond can benefit from a host of insightful seminars at the fourth signature iProperty.com EXPO, where renowned international property leaders will share tips on investing wisely, provide advice on buying overseas property and more. There are also exciting booths showcasing the latest property developments and investment opportunities in Malaysia, Australia, Thailand and the United States. In addition, visitors can have a chance to win over S$15,000 worth of lucky draw prizes at the EXPO.

“iProperty.com strives to help property buyers make informed choices when it comes to buying property. With the return of the EXPO, we are glad to help investors be in the know about the latest overseas property opportunities, and empower them with data, intelligence and insights that allow them to make the most out of the risks and opportunities that are present in this current state of global economic uncertainty,” says Shaun Di Gregorio, CEO of the iProperty Group, the No.1 online property network across Asia.

PRIZED PROPERTY DEVELOPMENTS

The iProperty.com EXPO International Collection will feature attractive offerings for those with a keen interest in the latest developments in property investment:

Leading international brands will be present for consultation, such as LCI Investment, CTL Group and Executive Directions from Singapore, as well as Mah Sing Properties, Elite Forward andDijaya Corporation from Malaysia.

A host of exciting international developments will be on offer, including attractive rebates and promotions, including:

  • Malaysia: M City (5% rebates, Free legal fees & disbursement for Sale & Purchase Agreement and Deed, etc) and A-Suites Serviced Residence in Taman Austin Perdana, Johor (Low down payment starting from RM4,800, no progressive interest for 3 years, etc).
  • Australia: 60 View St, Pascoe Vale, Victoria, Australia (One-year rental guarantee; free legal fees)
  • Thailand: Circle Condominium, Bangkok (Free 1st year maintenance fee, fully furnished, etc)

For more details on special rebates, please go to: http://edm.iproperty.com/sg/expo-april-2012-key-property-exhibitors/

FREE-TO-ATTEND PROPERTY SEMINARS

In addition, property agents and investors can look forward to free seminars, talks and forums featuring property experts who will share insights on property investments, and provide an in-depth analysis of the property market outlook both in and outside Singapore:

  • With the introduction of the Additional Buyer’s Stamp Duty (ABSD) last year as a measure to help cool the local property market, investors are increasingly worried about how this will affect their rental yield.  In his seminar Is Your Rental Income Secure? on 21 April, 5pm to 6pm, Alfred Chia, CEO of SingCapital, will examine the implications of ABSD to the real estate market, and provide tips for investors to secure and safeguard their rental income.
  • Well-known property expert Mohamed Ismail Gafoor, CEO of PropNex Realty, will share incisive insights and predictions useful for investors and the public at large, in his seminarProperty Market in 2012 on 22 April, 2.30pm to 3.30pm.
  • Those who are keen to venture slightly further afield will find the seminar How to build Cash Flow with UK Alternative
    Investment?      by Danny Lim, CEO of Property Barons, highly informative. On 21 April, 5pm to 6pm, Danny Lim will share tips on how invest in UK properties with as little as £3,750, and explore other lucrative investment options available in the UK.
  • Moving away from residential property, David Poh, CEO of Asia Management & Wisdom, will share why he considers commercial/industrial real estate investment to be the star performer of 2012. In the seminar How to Make Money from Commercial & Industrial Real Estate Investment on 20 April, 6pm to 7pm, he will teach agents how to acquire specialized skills and knowledge required to succeed in this field.

The iProperty.com EXPO | International Property Expo will take place over the weekend from Friday, 20 April to Sunday, 22 April 2012, 11am to 8pm, at Marina Bay Sands, Expo & Convention Centre, Hall A.

For more information and to register, please visit http://expo.iproperty.com.

 

5 Apr

The rich still favour Singapore as a place for second home

A survey of 4000 well-to-do individuals has cited Singapore as 5th in the list of most-favoured second-home country. Topping the list are the United States, the United Kingdom, France and Spain. How did we get so high up on the list? Will the luxury homes market continue to be a lucrative one?

Singapore luxury property remains resilient despite the government’s cooling measures, as the wealthy look to the city as a ‘safe haven’ and a lifestyle destination. This is one of the highlights of Knight Frank’s The Wealth Report 2012, produced in collaboration with Citi Private Bank. A survey of 4,000 individuals worth an average of US$100 million each cites Singapore as the fifth most favoured second home location across all respondents. In pole position was the United States, followed by the United Kingdom, France and Spain. In terms of quality of life, Singapore took second place, after London. The study reflects the growing shift in emphasis towards the East, where the number of ‘centa-millionaires’ – defined as those with a net worth of at least US$100 million in investible assets – is growing rapidly.

The Marq luxury apartment on Paterson Hill, designed by Hermes.

For instance, the current ranking of the most important global cities finds Singapore in fifth spot, after London, New York and Hong Kong. Shanghai and Beijing were ranked eighth and ninth, respectively. In 10 years, based on the expectations of survey respondents, Singapore continues to take the fifth spot. But Beijing and Shanghai moved up to third and fourth places, respectively. In terms of the rise in the number of centa-millionaires, the fastest growth by far between 2011 and 2016 is projected to occur in Africa, South and Central Asia, the Middle East and South-east Asia.

Property remains a favoured asset among high net worth individuals. It has the biggest share of 31 per cent of portfolios on average, and equities and bonds have 31 per cent each in 2011. In the Asia-Pacific, however, property’s share of portfolios is higher at 31 per cent, with equities taking 24 per cent and bonds 16 per cent. The study finds that 57 per cent of the ultra high net worth individuals expect to increase their residential property portfolio. The growing wealth market has led to the emergence of ‘super prime’ markets, characterised by transactions of at least US$20 million each. Of these transactions, foreign buyers typically account for a quarter. In Asia-Pacific, Singapore and Hong Kong are super-prime markets, but Shanghai may well emerge as one too.

Luxury Urban Resort Condominium in the city centre.

The report notes that Asian markets such as Singapore and China have implemented property cooling measures which have hit prices somewhat last year. In Singapore, however, Knight Frank director of valuation and head of consultancy and research Png Poh Soon believes the demand for prime residential property among foreign buyers remains intact. ‘The trend among foreign buyers implies that notwithstanding the Additional Buyers Stamp Duty (ABSD), ultimately the rich will buy Singapore property. We are confident of the long-term performance of the luxury residential market.’ This, he added, is due to a number of factors such as Singapore’s stable political and economic environment; its safe haven status for capital and it offers an attractive lifestyle.

The Straits Times © Singapore Press Holdings Ltd. Reprinted with permission.

Editor’s Commentary:
The cooling measures implemented may have put a temporary dent in the luxury property sector, but as Singapore continues to stand out in terms of political and environmental stability, the sales may continue to roll in. Do you think it has reached saturation point? If not, will prices continue to rise or stabilize? 

2 Apr

Q1 private homes sales could reach 5,200

Smashing lat year’s Q4 record of 3,603 units, 2012 seems to be off to a record-breaking start in private home sales, and this is excluding executive condominium units. What does this signify? Do home buyers have more to spare? Will home prices ever come down?

Developers’ sales of new private homes this quarter could reach 5,200 units – the second-highest level since the 5,578 units sold in Q3 2009, according to estimates from CBRE. Some market watchers point out that with 4,285 units sold in January and February, based on data from the Urban Redevelopment Authority compiled from monthly declarations by developers, the final tally for this quarter which ends today (Saturday), could even surpass the previous record. In Q4 last year, the figure was 3,603 units.

One of the latest new properties offered - Natura condominium at Hillview Terrace.

The above numbers exclude executive condominiums (ECs), a public-private housing hybrid. Among the latest projects to be released is Natura, a 10-storey freehold residential project at Hillview Terrace priced at about $1,250 psf on average. The development, which went on the market this week, features smaller-than-usual units, with a three-bedder starting at 635 sq ft.

Commenting on the sales tally for Q1, CBRE executive director Li Hiaw Ho said: ‘This is the first time since the previous peak in Q3 2009 that the sales volume has exceeded 5,000 units in one quarter. It has been averaging 4,000 units each quarter for the past few years. This increase in sales is due in large part to the slew of projects featuring compact apartments that have flooded the market in recent years.’ The smaller absolute price quantum of shoebox and other compact units makes them affordable and appealing to investors seeking a safe haven to park their savings to try and beat inflation.  CRBE’s analysis of caveats data showed that the median price and size per unit of new private apartments and condos sold in the Outside Central Region – where mass-market projects are located – has fallen from $942,165 and 1,216 sq ft in Q1 2010 to $874,940 and 893 sq ft in Q1 2011, and to $784,950 and 721 sq ft in Q1 2012, respectively. This is based on URA Realis caveats data available as of yesterday.

The Millage condominium on Changi Road

Among the projects with compact units that sold well in Q1 were Guillemard Edge, Casa Cambio, Millage and Tree Scape. Buyers’ interest in Q1 2012 was project specific, depending on location, proximity to MRT stations, product attributes and pricing. ‘Attractive discounts and rebates offered by developers pushed sales numbers higher,’ said CBRE. The quarter’s top-selling projects include Watertown in Punggol Central, The Hillier at Hillview Avenue (both mixed development projects), and Parc Rosewood at Woodlands. Another chart-topper for Q1 is Ripple Bay condo, which is a short walk from Pasir Ris Beach and priced at about $870 psf on average. Developer MCL Land released the project on Thursday. As of yesterday evening, 285 units had been sold. One and two-bedders were the fastest to fly off the shelves but there has also been demand for three and four-bedders. The cheapest unit to be sold was a 484 sq ft one-bedder, for about $430,000.

Ripple Bay Condominium new Pasir Ris Beach.

Going into Q2, CBRE expects developers to continue focusing on marketing mass-market projects as buying interest in this segment is expected to remain healthy. While the high sales volume of Q1 is unlikely to be repeated, it is reasonable to expect developer sales to register around 1,000 units per month, said CBRE. DTZ’s head of Asia-Pacific research, Chua Chor Hoon, who estimates that the Q1 developer sales tally will come in at 5,000-5,500 units, forecasts that the full-year number will be 14,000-17,000 units – ‘provided there are no drastic cooling measures‘. She reckons that URA’s flash estimate for the private home price index for Q1 2012, due to be released on Monday, is likely to remain positive – after the 0.2 per cent quarter-on-quarter increase for Q4 2011 – ‘because there were a lot more primary market sales than secondary market sales in Q1′.  ‘The lower pricing for newly launched projects would not have found their way into the caveats. And DTZ’s price index for secondary mass-market and landed homes for Q1 showed an increase. These will outweigh the decline in the luxury and prime market where there were fewer transactions,’ said Ms Chua.

The Straits Times © Singapore Press Holdings Ltd. Reprinted with permission.

Editor’s Commentary:
Despite reports that luxury and high-end homes are not selling as well, it could be that the sheer number of new mass-market suburban homes are pushing the numbers in their sector up. What exactly is the action in the luxury property market like? 

30 Mar

Palm Isles condominium sells half of first release

Mixed property-type private residential development, Palm Isles, has gotten off to a relatively good start by selling half of their first release of 100 units by Monday night. Are home buyers buying into the landscaped, resort lifestyle of this project?

Frasers Centrepoint had sold 50 units at its Palm Isles condo project in the Upper Changi location by 11pm on Monday night. The developer began previewing the project at its showflat at Flora Drive at 6pm, releasing an initial batch of 100 of the 429 residential units in the 99-year leasehold condo. The average price after discounts is $830 per square foot (psf),  below the $870 psf at which Hedges Park Condominium nearby is said to be selling at currently. The 501-unit Hedges Park, being developed by Tripartite Developers, was released in April last year and as at the end of last month, had 157 unsold units, according to government figures.

Palm Isles condominium features a resort-style ambience.

Palm Isles’ $830 psf average pricing is below the $850-880 psf that Frasers Centrepoint was expected to release the project at. Market watchers reckon that the developer would have taken into account competition from MCL’s Ripple Bay condo, within walking distance of Pasir Ris Beach, which goes on the market today. Ripple Bay is tipped to be priced at slightly above $850 psf on average – lower than the Seastrand condo behind it. As for Palm Isles at Flora Drive, buyers are mostly Singaporeans, some of whom are living in rented premises nearby. ‘The two- and three-bedroom units are doing well. We’ve also sold two garden homes,’ said Frasers Centrepoint Homes chief executive officer Cheang Kok Kheong. The developer has included 28 ‘garden homes’ in a low-rise block; each unit has its own private carpark space and garden.

Palm Isles private housing project in Flora Drive boasts townhouses or Garden homes, besides the usual condominium units.

The developer minted this new concept riding on the site’s sloped terrain. Garden homes have either four or five bedrooms. Palm Isles will have a mix of five to seven storey blocks in a resort-style ambience that will include lush landscaping, two tennis courts, and a 50-metre lap pool. The rest of the residential units in the condo will comprise one to four bedders. Absolute prices for one bedders start from $460,000 for a 506-sq-ft unit (or $909 psf). Two-bedders start from $660,000 for a 786-sq-ft unit (or $839 psf) and three bedders from $760,000 for a 990-sq-ft unit ($767 psf). A 3,014-sq-ft garden home is priced from $2.2 million (or $730 psf).

Source: The Straits Times © Singapore Press Holdings Ltd. Reprinted with permission.

Editor’s Commentary:
It’s an exciting time as many new private properties and new HDB flats jostle for attention in many popular districts. Location, a  view, well-maintained facilities and a ambience. Which are the pull factors for you? What will put you off considering a property and why?

 

27 Mar

Another round of New Housing Projects

Riding on the continued interest in new residential properties, new private housing projects are being rolled out this week in full force. From the shores of Pasir Ris Beach to right in the heartlands of Choa Chu Kang, they span across the island. Will buyers be biting and how hard?

A string of projects is coming on the market this week, and some of them could be priced slightly below nearby projects as developers who fret about further cooling measures by the government try to boost sales following February’s record developer home sales. The projects expected to be rolled out this week include MCL’s Ripple Bay condo, within walking distance to Pasir Ris Beach, and Frasers Centrepoint’s Palm Isles condo at Flora Drive. At Hillview Terrace, a consortium that includes Roxy-Pacific Holdings and Macly Group is getting ready to begin selling its Natura project. Property giant Far East Organization could also release the 416-unit Hillsta project at Choa Chu Kang Road – which will have condo units, Soho-style apartments and strata townhouses – any day now, pending securing the necessary regulatory approvals. All these projects are 99-year-leasehold, except Natura, which is freehold.

Ripple Bay Condominium new Pasir Ris Beach.

Meanwhile, Tuan Sing has sold 90 units at Seletar Park Residence which it released last week. The average price of the five-storey, 99-year-leasehold condo is about $1,100 per square foot (psf). Excluding ground-floor units with private enclosed space and penthouses with roof terraces, the average price would be around $1,200 psf. Buyers are mostly Singaporeans. The project’s 276 units range from one to four bedders. Ground-floor units have higher-than-normal floor-to-floor height of 4.5 metres, making them much sought-after. Absolute prices start from $634,000 for a 528-sq-ft one-bedder on the third floor (reflecting $1,201 psf). Three penthouses have been sold; a typical penthouse of around 2,240 sq ft costs $1.9 million or $840 psf

Over at the East Village, a freehold mixed development in the Bedok/Upper Changi Road locale, World Class Land is said to have found buyers for nearly all of the 90 apartments and 96 of the 108 shop units. The apartments are priced at about $1,400 psf on average. Shop units are said to have fetched around $5,000 psf or more. Investors seeking freehold properties can also consider Natura, a 10-storey freehold residential project at Hillview Terrace said to be priced at about $1,250 psf on average. The project, which will comprise one, two and three-bedroom units and penthouses, has been in the limelight for its smaller-than-usual three bedroom units, which start at 635 sq ft.

Palm Isles private housing project in Flora Drive boasts townhouses besides the usual condominium units.

Those looking for a dream apartment near the beach may want to check out MCL Land’s preview on Thursday of the Ripple Bay, a short walk from Pasir Ris Beach. The average selling price is tipped to be slightly above $850 psf after early-bird discounts, lower than Seastrand behind it. The latter project, which is further away from the beach, was released in June last year, with units sold in that month achieving a median price of $879 psf, according to government statistics based on developers’ monthly sales declarations. The following month, the median price rose to $935 psf and the project continues to trade at above $900 psf on average currently. MCL’s Ripple Bay comprises 679 units in four blocks of 12 storeys and three blocks of 13 storeys. One-bedders will make up 18 per cent of units and two-bedders 42 per cent. Facilities will include a tennis court and 50-metre lap pool. Absolute prices start from $415,130 for a 484-sq-ft one-bedder (which works out to $858 psf). Three-bedders begin from $795,500 for a 990-sq-ft unit ($805 psf).

Over at Flora Drive, Frasers Centrepoint is expected to price its Palm Isles project at $850-$880 psf on average. Hedges Park nearby was released in April last year, achieving an $889 psf median price that month. Developer Tripartite last month disposed of eight units at $873 psf median price. Palm Isles’ 429 residences will include a low-rise block with 28 ‘garden homes’ each with its own private carpark lots and garden. SLP International managing director Peter Ow said developers are launching projects as soon as possible as some worry that the authorities may come up with fresh cooling measures following the record number of private homes sold in the primary market last month. ‘To ensure a good take-up rate, developers are likely to price new mass market condo launches say about $10-15 psf below existing nearby projects,’ said Mr Ow.

Hillsta condominium project in Choa Chu Kang. Photo by hillstacondo.com

Mr Ow said there is no necessity for the government to come up with further cooling measures currently as the speculation has been taken care of by the seller’s stamp duty, and foreign buying has also come off significantly following the introduction of the 10 per cent additional buyer’s stamp duty. There’s also plenty of supply. DTZ’s Asia Pacific research head Chua Chor Hoon reckons that there will be buyers for new residential project launches on the back of ample liquidity, low interest rates and continued inflation fears. ‘Demand will be stronger for small units as there are many investors with sizeable bank balances looking to park their money in property,’ she said.

The Straits Times © Singapore Press Holdings Ltd. Reprinted with permission.

Editor’s Commentary:
With many new properties coming up near one another, prices may be competitive and developers may roll out offers which are hard to resist. What guidelines are you following in your property selection process? Is this the height of the housing supply?

26 Mar

Waterfront homes still popular with Foreign property buyers

The waterfront lifestyle has always been popular. And now that Singapore boasts a few more of these developments in the Marina Bay and Sentosa Cove areas, foreign buyers are snapping up units. Will the property investors keep coming?

Half of the units sold at Reflections at Keppel Bay in recent months were scooped up by foreigners, suggesting foreign demand for local luxury homes has not totally abated. Keppel Land sold a total of six units (at an average price of $2,100 per square foot) at the luxury waterfront development over the past two- and-a-half months, out of which three units were bought by foreigners. ‘There is still a worldwide trend for waterfront living,’ said Augustine Tan, president (Singapore residential) of Keppel Land who remains bullish on the outlook for waterfront homes. To add to the draw, all homeowners of Keppel Bay are also given a complimentary 10-year membership and five-year membership subscription at the Marina.

Reflections at Keppel Bay boasts waterfront living with a marina and a good many luxury amenities as well.

Obtaining its TOP (temporary occupation permit) in December last year, Reflections at Keppel Bay has a total of 136 apartments left unsold out of its 1,129 luxury units. Among the unsold units, 25 remain unlaunched by the developer and comprise premium units such as the development’s only 13,300-square-foot super- penthouse. Prices for the remaining units have an average asking price of about $2,400 to $2,500 per square foot (psf), though some premium units may go as high as $3,200 psf. This is in contrast to an average of $2,000 psf when the development was first launched. The property group has also set aside a total of 154 units as corporate residences to tap into the strong demand for the lease of such homes. Comprising configurations that range from two-bedders to four-bedders, leasing for the corporate units have commenced with average rents averaging $8,000 to $9,000 per month.

Bungalow at Sentosa Cove, where you can enjoy the waterfront lifestyle away from the mainland.

On future launches in the Keppel Bay area, the property group indicated at a press conference yesterday that it will be focusing on selling off the remaining units at Reflections at Keppel Bay before delving into their next launch. Having said that, plans for the plot 3 development have already begun with the new project envisioned to be a premium waterfront property comprising 367 home units to be located along the historic King’s Dock. Owning a total of six plots in Keppel Bay, Keppel Land will be partnering master architect Daniel Libeskind once again for the development of its third Keppel Bay plot. When all the plots are fully developed, Keppel Bay will have a total of 2,600 waterfront homes.

The Straits Times © Singapore Press Holdings Ltd. Reprinted with permission.

Editor’s Commentary:
Although there is talk that activity in the luxury property market may die down because of the Additional Buyer’s Stamp Duty put on foreign buyers, it may only be location specific. Waterfront living seems to still be a viable option and foreign property investment may not go away that quickly.

23 Mar

Rising Landed Home prices

In comparison to private condominiums, resale landed home prices have shot up the charts quickly in the first quarter. What is the lure of this rare commodity? How are the other property types faring? 

Resale prices of landed homes rose in the first quarter while those in the condominium market softened, according to estimates from consultancy DTZ. Freehold landed homes in suburban areas posted a 1.6 per cent price rise in the three months to March 31 while those in prime districts 9, 10 and 11 rose 1 per cent compared with the last quarter of last year. As the first quarter has not ended yet, the figures are estimates based on completed transactions. With less than two weeks to the end of the quarter, DTZ’s head of Asia-Pacific research Chua Chor Hoon said the estimates should be close to the final figures.

Fancy living in a restored terrace townhouse on Kim Yan road? There are only a few available thus are rare and expensive commodities.

Resale prices of non-landed homes continued to weaken in the first three months of the year, with those in the prime districts of 9, 10 and 11 faring the worst. Luxury condo prices declined 0.8 per cent while freehold condominium values slipped 0.7 per cent from the previous quarter. This was due in part to dwindling demand triggered by the additional buyer’s stamp duty implemented in December, DTZ said. Competition from uncompleted projects was another factor. An average of 2,200 units – excluding executive condominiums – were launched in January and last month. Last year, an average of 1,510 units were launched each month.

Despite the new stamp duty, sales of non-landed homes in the primary market jumped in the first quarter. Primary sales, excluding executive condominiums, averaged 2,143 units per month in the first two months of the year, up from the monthly average of 1,364 units last year. ‘The strong showing in the primary market was, however, not widespread, and was driven mainly by a few popular projects such as The Hillier, Watertown, Parc Rosewood and Guillemard Edge, which contributed to more than half of the sold units in January and February,’ DTZ noted. ‘These projects enjoy attractive locations near MRT stations and offer small affordable units which reflect the trend in the market of investors eager to park some of their money in property to earn better returns.’

Mixed-used developments such as The Hillier are hot properties to watch.

In contrast, sales of non-landed homes on the secondary market, many of which are not near MRT stations and of bigger unit sizes, hit a low of about 470 units per month over January and February. That was markedly lower than the monthly average of about 1,400 units recorded last year. ‘We expect a higher proportion of local buyers to dominate the market as foreigners take time to adjust to the new 10 per cent buyer’s stamp duty they now have to pay,’ said Ms Chua. ‘This will have a greater dampening effect on sales volume and prices in the prime areas.’ But the popularity of uncompleted suburban developments is expected to remain healthy, barring a recession, Ms Chua added. ‘If demand continues to remain strong at above 1,500 units a month, we do not preclude the possibility of further government cooling measures.’

The Straits Times © Singapore Press Holdings Ltd. Reprinted with permission.

Editor’s Commentary:
The restriction on foreign buying of landed homes and the ABSD (Additional Buyer’s Stamp Duty) may have put a damper on sales for now. But will there be a return of foreign property investors soon or will more cooling measures be put in place? How effective have the recent measures been?

« Older Posts