Future new private homes in 2 estates

Toa Payoh is well known for its attractiveness as a mature HDB estate, well chocked with amenities and commanding considerable prices for the resale HDB flats. However, the private condominiums in its midst are far and few in between

TreVistaTreVistaBut that might soon change as a private residential site near Braddell MRT station has been put on sale which might yield new 99-year leasehold properties in the future. Since the Government Land Sales Programmes (GLS) is planning to reduce the number of plots going up for sale, bidding for this prime site was keen, with 14 bidders going in with the highest coming from Evia Real Estate and their partners, Maxdin and Gamuda at $345.86 million. Selling prices of the new property is expected to range between $1,450 psf and $1,550 psf.

Just like Jurong and Lakeside, developers are expecting pent-up demand for private condominium apartments in Toa Payoh to work in their favour. The newest launch here, which has been for sometime now, is Trevista.

Hundred Trees on West Coast Drive.

Hundred Trees on West Coast Drive.

Another popular site which went up for sale under the GLS programme is one at at the Sungei Pandan waterfront at West Coast. With the possibility of yielding up to 600 homes in an area near the Westgate and Jem shopping malls, the Science centre and the future high-speed rail terminal in Jurong East, this 99-year lease term site is expected to fetch $370 million at auction. Nearby properties such as Waterfront @ Faber, Infiniti and Hundred Trees, have all fared well with some having sold out.

 

 

 

More singles going for new BTO flats

With a major sales launch by the HDB putting out more than 9,000 new BTO flats yesterday, the response from applicants has been strong, especially for 2-room flats and units in specific HDB estates.

ClementiCrestSince July last year, when singles became eligible for new BTO flats, albeit with restrictions, the demand for new 2-room HDB flats has been overwhelming. This may have pushed the authorities to release more 2-room flats this round. For flats in Punggol, where HDB launched their new smart-tech flats, there were 1.4 applicants for each 2-room unit. In Sembawang, the response was even more fervent with 2.1 applicants for every 2-room unit.

Over at Clementi Crest, the only new launch in a mature estate, the response was understandably higher with 2.5 applicants for every 5-room unit. There were only 156 units available. The main attraction could be its proximity to the Clementi town centre and Clementi MRT station.

Will the policy shifts eventually change the landscape for resale HDB flats, in particular the 3- and 4-room flats? Previously, demand for these smaller units could be said to have come mainly from singles and smaller families as well as Permanent residents. Resale flats selling under HDB’s sale of balance flats scheme were not as popular as before, with only 19 applicants for 127 units in the popular mature estate of Queenstown and 29 applicants for 3-room flats in Toa Payoh.

The next new BTO flats launch will be in August, at Punggol Northshore and Bidadari.

 

Rise in private condominium rental

Could the market be turning on its heels, headed up the charts? Vacancy rates have been falling as the number of rental properties finding tenants have been on the rise.

Property analysts are however not positive about the numbers. They have attributed it to statistics more than the actual market sentiment. Rental rates have instead fallen 1.7 per cent in Q1, which could show that the number of new occupant-ready properties entering the market last and this year may have shaven a chunk off the property rental pie. From now to 2018, almost 67,300 new units will flood the market, giving a possible indication of how the market will react in the months or even years to come.

AstoriaParkCondoLocation nevertheless still has the ability to bring rental prices up a significant notch. At the Astoria Park condominium near Kembangan MRT station for example, rents have risen for the first 3 months of the year. Older condominiums may have a battle at hand as newer properties offer fresher facilities; though the proximity to amenities, transport nodes and schools may put the former right back on the tenants’ maps. Landlords of older developments may also have an upper hand in their option of coming down on prices since they may have purchased the units at a lower cost.

As more new residential properties come into the fold in the months ahead, the symbiotic relationship between rental and sale prices could become more obvious and things may seem a lot clearer then.

 

Affordable units below $1 million at Botanique @ Bartley

Over the weekend, the 797-unit Botanique @ Bartley condominium opened for viewing at pocket-friendly prices. Situated on Upper Paya Lebar road, near Bartley MRT station, the Paya Lebar Methodist Girls’ School (Secondary), Maris Stella High School and The Australian International School, this new property seems like it has all the ingredients for an expensive price tag.

But instead, more than 70% of its units were pricedbelow $1 million, making it one of the more affordable new properties around town. With prices starting at $598,000 for a one-bedder, up to $1.68 million for three-bedders. While most of the units here are smaller, with one-bedroom apartments ranging between 495 to 689 sq ft and 926 to 1, 356 sq ft for three-bedders, the total quantum prices are more palatable with upgraders. A floor area comparision will however reveal that at $1, 300 psf, it is actually priced higher than the nearby Bartley Ridge which went for a median of $1, 296 psf.

Botanique@BartleyDeveloped by the UOL Group, the Botanique @ Bartley will feature “flexi” units, referring to the two- and three-bedders which can be converted into dual-key apartments. Some of UOL’s other properties include the popoular Thomson Three which only has eight units left unsold, Seventy St Patrick’s and Riverbank@Fernvale.

The rest of the year might not be hectic on the new private property front, with more attention possibly given to executive condominiums, thus supply might not necessarily overtake demand. How will that impact both the private and public housing markets?

Lowered condominium prices scores sales

Two property launches over the weekend signaled a drop in new developer-launched private non-landed property prices. Kingsford Development’s 1,165-unit Kingsford Waterbay at Upper Serangoon launched at median prices of $1,050 to $1,180 psf. With those prices in mind, buyers snapped up 140 units over 2 days, a considerable success.

Over at GuocoLand’s 1,024-unit Sims Urban Oasis, prices ranged from $1,295 to $1, 595 psf. 29 sales were secured over the weekend, bringing the total to 170 units sold since 14 February. Developers’ spirits are buoyed by consistent daily sales. Most of the buyers were young Singaporean couples and upgrades.

KingsfordWaterbayProperty launches coming up in the next few months include Northpark Residences in Yishun and Botanique at Bartley. The former has its proximity to the Yishun MRT station and the attached shopping malls as a unique selling point; the latter might be a little tougher to market as the area is already saturated with a number of newer and resale apartment developments. But property experts still expect demand to be present, though perhaps it will be strongly dependent on pricing.

The next quarter might be the right time to gauge the markets’ response to changing market trends and it might be a close competition between new properties, resale non-landed properties and executive condominiums.

2015 – A year of the property buyer

Following the footsteps of 2014, this year seems like it will continue to be a buyer’s market. Some property hotspots have sprung up over the course of last year, as new MRT stations and areas of redevelopment were announced.

Twin Fountains Executive Condominium in Woodlands.

Twin Fountains Executive Condominium in Woodlands.

For buyers looking for a good deal, there will be sellers out there who are willing to let go of their property as not all are able to have the holding power to last out the year. Many HDB upgraders who are moving to private properties may have to sell their HDB flats, and due to a mortgage restriction, some private residential property investors may also be looking to move units in exchange of a healthier bank balance.

For buyers looking for immediate to medium term property returns, areas near upcoming MRT stations may be their ticket. These include those along the North-East Line (NEL) and Eastern Region Line. Other further flung districts which are experiencing an influx of amenities and new properties such as the Jurong Lake district, Woodlands Central, Buona Vista and Paya Lebar, may also pique the interest of investors. And for those who are not in a hurry to reap the benefits from their property purchase, property analysts are expecting districts which have not been included in previous upgrading and redevelopment plans, to get a major face lift within the next decade or so. Woodlands could be the next area to watch.

Thomson MRT Line's alignment. Are you already area-spotting for the best property investment?

Thomson MRT Line’s alignment. Are you already area-spotting for the best property investment?

Starting from the second quarter of the year, sales are expected to pick up, and industry experts’ advice for buyers are to keep a clear idea of what they are looking for, search for sellers who are sincere about selling, and hit the iron while it’s hot.

Re-zoning Geylang – Fewer residential properties

At first instance, this proposal may not sound promising, but it may actually bring good news for owners of existing condominiums in Geylang. The Urban Redevelopment Authority (URA) has recently announced a re-zoning of residential areas in Geylang for commercial use.

Rezi3TwoWhile this means that there may not be as many private residential properties in the area, the value of those which have already been built may appreciate as offices and businesses eventually move into the area. This proposal by the URA could be seen as mainly to facilitate the balancing of residential and commercial activities in the district. The over-building of residential properties in the red-light district could have a reverse effect and introducing more commercial properties and maintaining a suitable amount of residential properties in the area may in turn increase the rental yields and value of properties in its proximity.

With Geylang’s prime location putting it close to the city centre, Aljunied MRT station and the Singapore Sports Hub, rental yields here are already 1.5 per cent higher than those in other districts. With the area mostly made up of smaller land parcels, the likely tenants would be boutique developers and small businesses, with the possibilities of niche eateries and shops.

Some residents have however raised concerns over this re-zoning move as more commercial spaces here may mean an increase in the illegal and disruptive activities normally associated with this infamous district. What are the pros and cons of purchasing property in Geylang and does one outweigh the other?

New Thomson MRT Line will benefit East Coast residents

Not only will property owners in the North reap the benefits of the new stations of the up-and-coming Thomson MRT line, but those in the East Coast will also see the value of their properties rise in the long run as the new MRT stations run through Tanjong Rhu, Katong Park, Marine Terrace, Siglap, Bayshore, Bedok and Sungei Bedok.

LTA - TELPhoto credit: Land Transport Authority (LTA)

The Thomson-East Coast Line (TEL) will connect more areas in the Northern and Eastern parts of the country to the city centre and cut travel time considerably. There are a number of exclusive and boutique private residential properties in the East as it has been a popular area for expatriates, but a boost is expected when the TEL commences service in 2019. Property analysts are already expecting a 5 to 10 per cent rise in property prices, if the response to the North-east Line (NEL) stations are anything to go by. And upon completion of the MRT line, they foresee a rise of up to 12 per cent.

Some of the properties which may enjoy the most out of the announced realignment of the TEL includes condominium developments in the Tanjong Rhu area such as Casuarina Cove, Tanjong Ria, Meyer Residence, The Belvedere and Water Place. Properties nearer the already existing Bedok and Tanah Merah mrt stations may not see as significant a change.

Marine BlueNearer Siglap and Bayshore are private apartments such as Lagoon View, Laguna Park, Elliot at East Coast, Bayshore Park, The Bayshore and Costa Del Sol. Cote D’Azur, The Palladium and The Seaview along Marine Parade could also see a rise in home prices in the future.

How will developers price new properties in the area which have yet to launch? Will they release units are higher prices or will they keep to the current market values? New launches coming up include the 124-unit Marine Blue and 109-unit Amber Skye.