You are here: Home / Archives for property market

20 May

Variety of New Properties for the picking

After a brief respite in the property market, new property launches are back to make for a hot and heated summer.

Stratum in Pasir Ris.

Stratum in Pasir Ris.

Five new residential developments across the island are offering home buyers plenty of sweet ptions to pick from. Properties in the city centre include the 366-unit Corals at Keppel Bay near HarbourFront MRT station and Liv on Sophia near Dhoby Ghaut MRT station. The proximity of these developments to transport and amenities should mean they are popular with buyers and investors alike. Corals at Keppel Bay is situated beside the Caribbean condominium and previewed the weekend past. 100 more units will be launched this weekend. Prices range from $2, 000 psf for a one-bedroom unit of between 570 and 732 sq ft. Ferra condominium in Leonie Hill in the prime district 9 also released its remaining 22 units of its 104 units. A 732 sq ft unit is going for $3,160 psf.

Fancy being even nearer the city centre? Liv on Sophia on Adis Road offers 64 two-bedders starting from $2,500 psf. Buyers will have to wait a little longer for these though as they are launching only end of this month or early June. Also in the property launch pipelines is the mixed-use project King Albert Park Residences. With the Bukit Timah Shopping Centre and Bukit Timah Plaza nearby, King Albert Park Residences will add even more colour to the area with its 107 retail units and 142 residential units. It will also be flanked by the  upcoming King Albert Park and Beauty World MRT stations. Property agents are expecting prices to start at $2, 000 psf for the smallest 484 sq ft units.

King Albert Park Residences is a mixed-use development with retail and residential units.

King Albert Park Residences is a mixed-use development with retail and residential units.

And further in the East, Stratum in Pasir Ris launched last Saturday with a $900 psf median. The 99-year leasehold condominium will stand across Elias Mall and the new Singapore University of Technology and Design. Will this increase the potential investment value of the property? How will other older condominiums nearby fare?

Another new suburban launch to look out for is the Jewel at  Buangkok, just 2-minutes away from Buangkok MRT station. To be launched within the next few weeks, a small 463 sq ft apartment is expected to go for $1, 000 psf. In an area yet to be saturated with private high-rise properties, how will this new project fare? Will it bring more interest and development into the area?

8 May

Novena Ville will soon be Novena Regency

As far as mixed-use developments go, the new kid on the block is Novena Regency. Taking over the spot of the previous Novena Ville, (foodies might remember it as the location of the popular Wee Nam Kee Hainanese Chicken Rice),  Novena Regency will consist of 45 shop units and 55 residential units. It is set to receive its Temporary Occupation Permit in 2017.

Novena RegencyConsidering its prime city fringe location, the proximity to the Novena MRT Station, shopping malls such as Novena Square and United Square, post offices, churches and offices, Novena Regency looks set to bring even more life to the area. Launched just a few weeks ago, property developer Fragrance Realty, a subsidiary of the Fragrance Group, is predicting a more than healthy demand for both their shop and home units. Shop units are going for $7, 000 psf and the apartments at $2,300 psf.

Fragrance Group executive chairman and chief executive Koh Wee Meng has expressed positivity in buyer demand, “We are fairly confident that buyers will be attracted to its location – an exclusive private estate enclave within the Novena vicinity”. Commercial units will face the main road, where human traffic is heavy both on the weekdays from the offices nearby, and also on the weekends from the church-goers from Novena Church.

And if you’re looking for a home that is both private yet highly convenient, Novena is the prime spot. Already more than 44 units have gone to eager hands since its launch in mid April. Not many residential units, made up of one-, two- and three-bedroom units, are left. There are quite a number of condominiums nearby, but if you’re looking for a unique development that combines exclusivity with vibrancy and convenience, these Novena Regency units might be just the thing to look at. Will apartments in their vicinity see a corresponding response from buyers?

28 Mar

Rental may not earn you your investment money

Especially with property tax revisions in the 2013 Budget. The removal of tax refunds for vacant properties will take a huge chunk of potential income away from individual as well as corporate investors. They can no longer bank on getting money back on units they are holding on to whilst waiting for a good time to rent. Only those with extensive holding power will be able to hold on to their units and wait out the lulls in the real estate market.

Emerald Green condominium.

Coupled with the increase in taxes for luxury properties, more and more resale private residential properties may be pushed back into the market, which unfortunately is dominated by new homes at the moment. This may intensify competition within a saturated market which may or may not see a price drop, depending on how strong a holding power the investors have.

Starting January 2014, the concession for such properties will cease and 2013 might be the year where the price battle between resale and new properties may be fought most intensely. From next January, higher tax rates will apply, 5 different tiers in fact, ranging from 8 to 16 per cent. If luxury properties were not seen to be doing well in the current market, will things take an even worse turn come 2014?

On the other hand, might overseas properties be more promising for investors and how do you get your hands on one? Which countries hold the most potential? Answers could often be best found at property seminars and talks, where you get to pick the brains of property experts and those who have had experience doing just that.

5 Mar

Will Singapore homes ever be truly ‘affordable”?

Not for some time yet, according to Finance Minister and Deputy Prime Minister Tharman Shanmugaratnam.

Waterfront living in Sentosa. Is this the area for expansion in SIngapore's future?

Waterfront living in Sentosa. Is this the area for expansion in SIngapore’s future?

Stuck in the part of the property cycle where home prices run high, all are in wait to see if they run even higher. The Government is doing all they can to cool the market. The previous seven round of property cooling measures since 2009 will attest to that. But Singapore’s real estate market still stands for some price correction before it could get moving and complete the cycle it is apparently in.

It will not amaze most Singaporeans to know that housing prices have risen sharply in the past four years. 30 per cent is a huge leap. In the time where the global economy struggles to right itself from its humpty-dumpty fall, Singapore’s economic growth, lower interest rates and strong capital flow has kept the property market buoyant.

Is the private property market quietening? Image courtesy of Singapore Tourism Board

When will homes truly be affordable for the average Singaporean? Image courtesy of Singapore Tourism Board

Even though the cooling measures may have slowed the rate of increase of home prices, the pricing rise is still significant. We return once again to the question of whether the Government should be responsible for keeping market prices low or simply stall the rise in prices, which is inevitable and should be left to market forces to dictate.

Mr Thaman said as ‘Singapore’s highly open economy lives by being global and regional, the Government’s key priority is to raise productivity to a new level”, since raising incomes for the average person and for the median household is at the top of their to-do list for now.

7 Feb

Property developers discounts may be cut

If you’re waiting to see if the developer of your property of choice might dangle discounts to counter the recent cooling measures, you might have to reconsider. The authorities have caught on to property developers‘ tactics of offering discounts as a means to entice customers to buy new properties, especially since the cooling measures have taken a huge chunk out of the business.
House

But fear not, only the indirect discounts are under review by the Urban Redevelopment Authority. These mostly refer to the rebates and vouchers that the buyer receives only after purchasing the property. Since these are not reflected in the upfront price which the buyer pays, it may make the cooling measures seem ineffective, which also means URA’s quarterly price index based on caveats lodged might not be a true reflection of the market situation.

Property developers on the other hand tend to lean towards indirect discounts as this helps placate early buyers who may not be happy that they had gotten the raw end of the deal. Keeping the upfront price high also helps to keep prices high all around.

Other ways which developers have been trying to help buyers out are through the partial or full absorption of the Additional Buyers Stamp Duty (ABSD) which has been increased in the most recent round of measures. The frequency and fervency of this practice might be what the authorities are watching as it negates the effect of the property measures.

Another concern is also that the true value of the property needs to be conveyed truthfully to the home buyer, but with the discounts and cuts, it might not be the case and it might only confuse consumers. Not forgetting that home loans are based on the property value, thus might buyers be paying more in the end through bank loan interests for a higher priced property?

So are the cooling measures truly working? If it seems that discounts are offered more frequently, then it might be.

17 Jan

The rise of the Private Homes

Prices, that is. Private home prices look like they are on the way up. As suburban land prices steadily head upwards, a total of 22 per cent in 2012 alone, prices of new private properties may follow suit. 20, 879 private units were sold in January to November last year, boosted mainly by the regular supply of residential sites from the Government Land Sales (GLS) programme.

Cashew Crescent Terraces

And in 2013, as long as the supply of land sites continue, demand may be sustained at a respectable level. While the new private homes market is expected to do relatively well this year, they may stay just under last year’s numbers. The Government is keeping a close watch on the shoebox apartments sector and has implemented a cap on the number of non-landed private homes outside of the Central area. Property developers may find a drop in buyers due to subsiding rental demand.

However, landed property seem to top of the leader board with a 9.7 per cent increase, the largest rise in the private property sector. Is this because investors are expecting further rise in prices this year or at least within the next two years? Resale condominiums have also reflected a 3.4 per cent increase, though at a much slower pace compared to 2011′s 8.4 per cent.

Studio MarneForeign interest in the luxury segment is increasing, as more Chinese flock back to the market, especially as China’s economy improves. Reports reflect a hike in the numbers of Chinese buyers of properties above the $5 million mark.

If Singapore’s real estate market continues to walk the current path, it certainly puts big beams on property investors and sellers’ faces. In terms of the overall property and housing market however, uncertainty is masked. Are we heading towards the point of no return? Or is this merely healthy growth?

10 Jan

Slow ride for Property Market in 2013

With the real estate sector ending on a high note last year, will 2013 be the year things begin to stagnate?

8 Mounth Sophia

2012 seems to be the watershed year for Singapore’s property market, with residential properties doing extremely well and commercial and industrial properties not far behind. Despite cooling measures rolled out twice in the year, sales and growth remained strong.

Industry analysts are however expecting prices to reach a plateau this year. They are expecting property developers to be less active in the bidding for Government Land Sales (GLS) sites, whose number has also dropped as compared to 2011. There are still sites which may draw strong interest, such as Alexandra View, Prince Charles Crescent and Mount Sophia.

Echelon

And as new properties which entered the market last year compete for buyers, affordability may remain strong. Vacancy rates for rental properties may stay low, and the possibility of new property cooling measures being implemented this year may also contribute to a less vibrant market.

The prime districts are expected to do less well, as supply overshadows the weak rental demand due to companies cutting back on housing allowances and lowered employment rates. Mass market private homes are however given the thumbs up, resilient sales buoyed by affordable prices and favoured by investors and upgraders.

2 Jan

Property makeover for 8 private estates

Under the Estate Upgrading Programme (EUP), 8 private estates will be getting a whole new look by the end of 2014. Although it may not extensively change the property prices, it may nevertheless provide an added incentive to potential buyers and thus benefit the sellers.

Mount Rosei GardenWhich estates are these?

What they will be getting are landscaped environments, fitness equipment, park furniture and wider footpaths, according to the Ministry of National Development. Selection was based on the age, physical condition and scope of improvement. As the areas have begun to look dated and some plagued with drainage and parking issues, the revamp will cost about $29 million.

Marine Parade GRC MP Fatimah Lateef and Potong Pasir MP Sitoh Yih Pin are looking forward to improvements for their wards. In all, there has been a high demand for these government-funded upgrading schemes and Senior Parliamentary Seretary for National development, Dr. Maliki, has reflected strong spport for such programmes as it is aimed at improving community bonding.

All in time for the next election perhaps? Either ways, about 7,000 households will benefit from these estate upgrades, but how much more these new amenities and facilities will bring to the properties in these districts still awaits further analysis.

«Older Posts