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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?

28 Feb

More Residential Property projects to be launched

Watertown, Parc Rosewood, Bartley Residences. New property launches have been selling exceedingly well in the first two months of the year. The wave of new residential projects does not seem to be subsiding, especially with a host of new properties to be launched soon – such as Greenwood Mews, Hillsta and Palm Isles.

Even as Hong Leong Group is understood to have sold about 160 units at Bartley Residences last week, other developers are getting ready to roll out their projects in the next few months. These include Tuan Sing’s Seletar Park Residence; Far East Organization’s Greenwood Mews (a 62-unit cluster housing development in the Bukit Timah area) and 416-unit Hillsta condo in Choa Chu Kang; and Frasers Centrepoint’s Palm Isles condo at Flora Drive in the Upper Changi area. Those looking for strata office units can also check out Far East’s PS100 next month, which will comprise 100 units of 402 sq ft to 507 sq ft spread across five levels (7-11) of a 27-storey tower at Peck Seah Street near Tanjong Pagar MRT Station. The tower will also include the 314-room Oasia Downtown Hotel. The strata offices will have a floor-to-floor height of about five metres – higher than the 3-3.5 metres for typical offices. PS100 is slated for completion next year.

Palm Isles condominium in Flora Drive.

Over in Seletar, Tuan Sing is expected to preview around mid-March its 99-year leasehold condo, Seletar Park Residence. Pricing for the 276-unit, five-storey development is expected to take after The Greenwich next door, where transactions have ranged from $1,244 psf to $1,512 psf over the past four months based on caveats data. However, as an analyst points out, half of The Greenwich‘s 319 units are one bedders, allowing higher per square foot pricing to be extracted. As for Seletar Park Residence, 93 or a third of the project’s units are one-bedders. The project has 113 two-bedders, 46 three-bedders and 24 four-bedroom apartments. The project is being designed by award-winning SCDA Architects. Tuan Sing is developing Seletar Park Residence on a site that it clinched at a state tender in December 2010 for $468 per square foot per plot ratio (psf ppr).  ‘We are preserving a row of raintrees on the site and will design a board walk and tree house around them, as part of our ‘green’ and sustainability efforts. We will also include a golf driving simulator room in our project,’ said Tuan Sing chief financial officer Chong Chou Yuen. The group also has another 99-year leasehold condo plot, next to Potong Pasir MRT Station, on which it is planning a project of about 312 units, including townhouses. A launch is likely around end-June, said Mr Chong. The project is being designed by MKPL Architects.

Seletar Park Residence will soon be launched.

Tuan Sing has a third residential project, at the freehold Serene House site in the Cluny Park Road area opposite Botanic Gardens MRT Station. The 63-unit low rise project is likely to be released towards end-September, Mr Chong estimated. For the whole of last week (Feb 20-26), Far East sold 66 units including joint venture projects. The three top-selling projects were Watertown in Punggol (17 units), The Hillier in the Hillview area (14 units) and euHabitat at Jalan Eunos (four units sold). To date, 917 of Watertown’s 992 units have been taken up since sales began in January. As for The Hillier, 446 of its 528 units have found takers, while the 748-unit euHabitat has seen 651 units being snapped up. Hong Leong meanwhile is said to have sold some 160 units at Bartley Residences since Tuesday last week. The average price after discounts is $1,240 psf.

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

Editor’s Commentary:
How will these new properties be priced and how many units will be sold? Keep an eye on the latest property news and property launches to keep a running lead.

30 Jan

70% of Parc Rosewood units launched sold over weekend

Home buyers are coming out in full force as they chase the latest property launches. Hot on the heels of the Watertown launch in Punggol, Parc Rosewood in Woodlands is also garnering eager responses from the buying public. 70% of the units launched last weekend have already been sold. How many more left for those hoping to snag a unit?

Parc Rosewood in Woodlands seems to have picked up the momentum generated by Watertown in Punggol – with seven in 10 units released on Saturday finding buyers. Marketing agent ERA Realty Network said yesterday that it had sold 165 of the 236 Parc Rosewood units up for grabs. Most – 120 – were snapped up within four hours of the preview launch.

Parc Rosewood condominium in Woodlands

The price range of the five-storey, 99-year condominium, developed by Fragrance Group and World Class Land, had been lowered by 8-10 per cent ‘to offset any impact on sales from the recently implemented additional buyers’ stamp duty‘, ERA said. From an initial $1,030-1,100 per square foot, based on recently transacted prices, the units’ price range was lowered to $925-998 psf. This meant that prices for the initial 236 units released at the preview launch started from $398,000 for a one-bedder to $568,000 for a two-bedder and $778,000 for a 3-bedroom unit.

The five-storey development along Woodlands Avenue 2/Rosewood Drive has 689 units, most of which are one or two bedders with a few three bedders and penthouses.

Parc Rosewood units are mostly one to two bedders with some three bedders and penthouse units.

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

Ediyor’s Commentary:
It looks like a truly happy new year indeed for developers of these two recent property launches – Watertown and Parc Rosewood. Twin Waterfalls EC project in Punggol and The Tampines Trilliant have also just been launched last week, will they see similar responses?

 

17 Dec

Stamp Duty increase might not go away

The new stamp duty increment might be here to stay. Or so analysts think. What circumstances may make it go away? Will a softening property market be reason enough to eventually do away with this huge rise?

The new buyer’s stamp duty could be a permanent fixture and stay in place even after the property market cools, according to Bank of America Merrill Lynch. Property measures imposed in 1996 to differentiate between foreigners and locals were eventually rescinded but this time it is different, said bank economist Chua Hak Bin. ‘The 1996 measures were seen as more of a move to cool the market, but this round seems more like a political move,’ he said. He added that the latest steps are in line with the Government’s aim to differentiate the privileges and rights of Singaporeans, permanent residents and foreigners.

Is buying a home becoming more difficult with the new stamp duties in place?

Dr Chua noted that differentiated pricing and treatment in employment rules and services like health care and education have already been imposed, following concerns among Singaporeans about living costs, congestion and the influx of foreigners. Under the new measures, foreigners must pay an extra 10 per cent stamp duty when they buy a residential property. Permanent residents who buy a second and subsequent residential properties have to pay an additional 3 per cent stamp duty. Singaporeans who buy their third and subsequent properties will also be taxed at an extra 3 per cent. ‘The measures come at a time when foreigners make up around 40 per cent of the luxury market and are seen to be making headway into the mass-market home segment. Singapore is also seen as a good place to park capital,’ said Dr Chua.

The new measures are similar to the ones introduced in 1996, which ruled that foreigners were not allowed to take out Singapore dollar mortgages and could only get a loan-to-value (LTV) of 70 per cent on foreign-currency loans. Permanent residents were also affected and limited to one Singapore-dollar housing loan. These measures were lifted in 2001 after the property market cooled. Dr Chua said there is still room to fine-tune the new measures, which have been labelled overly harsh by businesses and property players. Any relaxation could take several years, he said, and would likely affect measures that do not differentiate between the various buyer types, like the LTV ratios or the seller’s stamp duty.

How will Singapore fare in the global economy next year? Will doing well be reason enough to lower the stamp duty? Image courtesy of thinkstock.

Other market watchers said the fate of the buyer’s stamp duty will depend on how the global economy fares in the year ahead. Associate Professor Sing Tien Foo of the National University of Singapore’s department of real estate cautioned that the effects of the measures could be disastrous if the debt crisis in Europe persists. ‘While the measures will help stabilise the market and eliminate speculators, it will also block liquidity from entering the property market,’ he said. ‘This may result in a sharp downward spiral of prices.’

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

Editor’s Commentary:
It may be too early to determine if the economy will revert stamp duties. This may after all, depend on what buyers want and how popular Singapore property remains for foreign investors.

15 Nov

Palette condo two-third sold over preview weekend

It seems units at one of the latest new condo launches – The Palette – were on the plate and quickly off again in one weekend. 200 of the 300 units released over its preview last weekend have already been snapped up. Is this up your alley? What other new launches are in line?

The Palette residential development at Pasir Ris Grove saw a brisk take-up of 200 units at its preview launch last weekend. City Developments Ltd (CDL) released a total of 300 units in the 99-year-leasehold development at the preview. The average selling price of the 892-unit residential project, located within walking distance to Pasir Ris MRT Station, was in the range of $870 per square foot, with prices beginning at $561,000 for a 495-sq-ft one-bedder on a low floor and $1.8 million for a 2,217-sq-ft penthouse.

The Palette condo near Pasir Ris MRT Station

Unit layouts in the 12-block project range from one-bedders (up to 700 sq ft) to four-bedders (up to 1,798 sq ft). The residential development also has a total of 10 penthouses (from 2,217 sq ft to 2,562 sq ft), of which all four units launched last weekend have already been taken up. Warm responses have also been noted in other project launches located primarily in the heartland regions.

Notably, Sim Lian’s 99-year-leasehold residential project, Parc Vera, has met with keen interest from local buyers and has sold about 200 out of 240 units since its launch on Oct 28 at an average price of $800 per sq ft. Located along Hougang Avenue 7, the 452-unit development is also close to recreational sites such as the Serangoon Park Connector and Punggol Park. According to a property consultant, most of the buyers of Parc Vera already reside in the North-Eastern part of Singapore, with many citing proximity to their parents’ homes as a priority.

Parc Vera condominium - one of Sim Lian Group's latest private property offerings.

Despite concerns that residential prices are near a top, head of Residential at Knight Frank, Wendy Tang, continues to expect healthy sales in the heartland regions on the back of ‘real demand from local buyers’. Concurring with her view, Global Property Strategic Alliance CEO Jeffrey Hong expects ‘healthy pick-up rates’ going forward as HDB prices continue to soar, narrowing the price differential between public and private homes.

Going into the month of Christmas, developers are rushing to dish out a final spread of new launches before the year’s end to tap the buying momentum and capitalise on the festive spending mood of buyers. According to agents, CapitaLand is tentatively set to launch its 99-year-leasehold development, Bedok Residences, as early as this week.

Bedok Residences, near Bedok MRT Station.

Expected to draw a fair bit of attention due to its prime location and proximity to Bedok MRT Station, the 583-unit project will form part of CapitaLand’s plan to transform the Bedok Bus Interchange and the land surrounding it into a 15-storey mixed development comprising residential and retail components. Other projects expected to be launched in December include a 400 plus-unit residential project in Sembawang by MCC Land and a 577-unit development by UOL and SingLand by Bedok Reservoir.

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

Editor’s Commentary:
Developers have a few more choice pickings before the year ends. It may be a good idea to bulk up on research and check out other properties in the same area. With so many options, what will be your selection criteria?

12 Nov

City fringe properties commanding prime rental

Gone are the days when city fringe properties are the less expensive alternatives. Now rentals in residential apartments in the city fringe are holding their own. Will this upward trend continue into the coming year?

Residential rents in the city fringe areas are rising steadily, narrowing the rental gap between the prime districts and the city fringe, noted CBRE in a new report yesterday.

CBRE’s latest analysis of residential non-landed rents points to a steady increase in the ‘rest of central region’ (RCR) – which covers the city fringe areas of Balestier, Bishan and Geylang – since the rental market bottomed out in 2009. Rents in the RCR stood at a median of $2.86 per square foot (psf) at the height of the market in 2008. They fell to $2.64 psf in 2009 but then rose 19.3 per cent to $3.15 in 2010 when the market recovered. Rents in the RCR stood at $3.36 psf at end-September.

Clover by the park condominium in Bishan is newly built and units are available for rent.

‘The increase in rents in the rest of central region corresponds to the rise in the number of small-format-sized apartments in Serangoon, Balestier and Geylang over the last few years,’ said Li Hiaw Ho, executive director of CBRE Research. ‘Renting in the city fringe area, near the central business district, is a viable option with more expatriates having switched over to local packages in recent years.’

Twin Heights condo in Balestier, an area with history and character, plus the convenience of many other amenities and the proximity to the CBD and town areas.

Rents in the prime core central region (CCR) recorded a lower increase of 15.6 per cent over the 2009-2010 period. Prime rents recovered to register $4.30 psf in 2010, after having fallen to $3.72 psf in 2009. The rental gap between the RCR and the CCR areas has narrowed from 29 per cent in 2009 to 24.5 per cent in Q3 2011.

CBRE projects that the gap will probably stabilise at around 26 per cent by end-2011 as rents in both the CCR and RCR remain at current levels in the coming months. Apartments near MRT stations in the outside central region (OCR) – a proxy for suburban locations – have also risen in popularity, noted Mr Li.

Average rents in the OCR have seen steady increases too, according to the CBRE report. In 2010, rents increased 17.5 per cent to $2.68 psf from a low of $2.28 psf in 2009. By the end of Q3 2011, rents in the OCR had risen to $2.86 psf. CBRE’s report also said that since 2008, the number of tenancies contracted (comprising new leases and renewals) has exceeded 30,000 every year. Between January and September 2011, the number of tenancies stood at 31,083. Total volume of tenancies will probably hit an all-time high of between 37,000 and 38,000 this year, the property firm predicted.

Canne lodge apartments for rent in Geylang.

But as the impact of the economic slowdown begins to filter through, CBRE expects a lower volume in the coming year. ‘Rents are likely to stabilise in Q4 as leasing activity eases,’ said Mr Li. ‘The sluggish economic growth projected for 2012 may translate into reduced job opportunities for expatriates. Coupled with a high number of new completions in 2011 and 2012, there will be some pressure on rents going forward.’

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

Editor’s Commentary:
With close links to the global economic situation, rental income for property owners is largely based on the influx of expatriates. What will 2012 hold for Singapore’s economy and property market?

3 Nov

COV figures show increase

Does the ceasing of COV data release really make it more possible to get a HDB flat at lower prices? It seems not, as the HDB resale flat prices are still rising. What are sellers placing their COV prices at, and what are buyers willing to pay?

The Housing Board (HDB) has stopped issuing yet another component of cash-over-valuation (COV) data in its quarterly releases. This time, it left out the median COV figures for flat types in HDB estates where fewer than 20 sales were made in the three months to Sept 30. The COV is the amount a buyer pays over and above the valuation of a Housing Board resale flat. In the past, the HDB provided the median COV figures for all estates even if there were fewer than 20 transactions, but added the caveat that such figures may not be representative.

Is the non-release of Median COV prices of resale HDB flats any help in keeping HDB resale flat prices down? Image courtesy of HDB.

However, in the quarterly release, the HDB said the median COV of certain flat types in towns where there were fewer than 20 resale transactions ‘are not shown as they may not be representative’. This follows a move in July to stop issuing data on overall COV paid for HDB resale flats. National Development Minister Khaw Boon Wan said the figures could be misleading, so he took a ‘middle way’ – by issuing median COV data by HDB towns and flat types, but with no overall figures.

Despite the lack of overall figures, a closer look at COV figures shows them inching upwards. The lowest median COV for a three-room flat in any HDB town in the second quarter was $25,000 (in Ang Mo Kio and Toa Payoh), while in the third quarter the lowest equivalent was $27,900 (in Marine Parade). For four-room flats, the lowest recorded median COV in the second quarter was $27,000 in Sembawang. In the third quarter, this had risen to $35,000. Mr Chris Koh, director of property firm Dennis Wee Group, said that based on its transactions, most resale deals are made with COVs more than $30,000 these days. ‘For larger flats such as five-room and executives, the norm is $50,000 to $70,000,’ he said.

As an established estate, Ang Mo Kio may have quite a few resale flats available.

ERA Realty key executive officer Eugene Lim yesterday called for COV figures not to be published. ‘This facilitates sellers and buyers to negotiate based on price rather than COV,’ he said. ‘Buyers typically are able to make an informed decision by first obtaining an indicative valuation (in the private property market). Why can’t the same practice be adopted for HDB flats?’

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

Editor’s Commentary:
A survey done by iProperty.com in Q2 showed that most home buyers are willing to pay up to $25,000 for COV. Are these numbers rising? When will it hit saturation point?

14 Oct

Tackling the housing imbalance issue

The government has emphasized its role in helping to correct the housing imbalance, especially with regards to rising housing prices, by ramping up availability of new HDB flats. Is this sufficient or what other measures could be put in place? Is this housing imbalance temporary or could it swing wildly to either extremes?

The government is taking active measures to address the ‘temporary imbalance’ in the supply and demand of housing, National Development Minister Khaw Boon Wan reiterated yesterday. A sudden rise in housing prices following a sharp economic recovery, amidst global liquidity, has worried many Singaporeans, Mr Khaw noted in an addendum to President Tony Tan Keng Yam’s address in Parliament on Monday. ‘We are building more HDB flats and speeding up their completion. We have adjusted the income ceilings, so that higher income couples and singles can also qualify for public housing‘,’ Mr Khaw said.

Has the new HDB flats made housing more affordable for you?

At the same time, the government will also release more land for private homes and will ‘calibrate’ its measures to ensure that prices move sustainably with the economy, he said. Among other measures, the Housing & Development Board (HDB) recently upped the monthly income ceiling for purchasing new executive condominium (EC) flats from $10,000 to $12,000.

Besides schemes for singles and the elderly, HDB also has a Special Housing Grant for low-income families

As at end-September 2011, HDB has received around 140 EC bookings from flat-buyers within this income group, it said. The CPF Housing Grant disbursed to this group so far is about $130,000. Mr Khaw also reiterated that HDB is building more subsidised rental flats to help ‘vulnerable’ families that are unable to afford their own homes. He also said that as HDB moves into the next phase of public housing, it will strive for even better-designed and sustainable towns that have ample public spaces and community facilities so that residents can enjoy ‘cleaner, greener and better’ living. HDB will tap on private sector expertise and public feedback to develop such sustainable towns.

What will your town receive in the HDB Neighbourhood Renewal Programme? Image courtesy of HDB.

‘For the mature estates, we will upgrade and rejuvenate them. As we complete the lift upgrading programme, we are accelerating the home improvement programme and neighbourhood renewal programme,’ Mr Khaw said. ‘We will also identify suitable sites for more intensified redevelopment so as to inject more housing in mature towns.’ Where possible, some of the new HDB flats will be built in mature estates to ‘widen choices and meet aspirations’, he said.

Has your HDB toilet been upgraded under the HDB home improvement programme?

The government also intends to bring jobs closer to homes as new growth areas such as Jurong Lake District, Paya Lebar and Kallang take off. Housing will also be gradually intensified, especially around MRT stations and in mature towns such as Queenstown and Bishan to take full advantage of their amenities, Mr Khaw said.

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

Editor’s Commentary:
With positive steps taken to provide more HDB flats in mature estates and rejuvenating older HDB towns, what will this mean for prices of HDB flats in these areas? Will resale flat prices drop because of these changes or will it go the other way?

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