$653 million asking price makes Eunosville largest collective sale

Should the asking price of between $643 to $653 million for the HUDC estate of Eunosville truly go through, it would be the largest collective sale of late as it surpasses the $638 million paid for Shunfuville last year and the expected $450.8 million asking price for Rio Casa in Hougang which went on sale last month.

EunosvilleAnd it would mean each unit owner at the Sims Avenue estate would receive $780 to $790 psf or $1.9 to $2 million approximately. The estate has already reached the 80 per cent requirement for consent and the sheer size of the estate would be a dream for the winning developer. The 376, 713 sq ft site currently holds 225 maisonettes in 10 blocks and upon redevelopment, could yield 1,035 units of approximately 90 sq m each.

With 70 years left on its lease, $181 million on top of the bid will be required for intensification and a new 99-year lease. The site is just 100 metres away from the Eunos MRT station and strong showings at recent property launches show that buyers are still keen on new launches at good locations. Recent sales at Grandeur Park were a good example. All 420 of the units available at the launch were sold with the first weekend at the average price of $1,350 psf.

GrandeurParkResidencesThough bidding will be prudent as developers are keenly aware of the completion and sales deadlines imposed by the qualifying certificate and additional buyer’s stamp duty, some may be willing to put more into sites with long-term potential as land banks have been running low for the past year or so.

Fierce bids for Perumal Road land site

A mixed-use land site on Perumal road which could potentially yield 200 private homes and an entire floor of commercial spaces have attracted bullish bids from property developers since its release in November last year.

Sturdee-Residence11 bids have been placed, the highest at 4.4 per cent more than the next in line came from Low Keng Huat at $174.08 million. The second highest bid came from China Construction (South Pacific) development. The keen activity in the land sales sector could translate into a competitive primary and thereafter secondary market which will in turn mean a ready pool of buyers who are ready to spend after the prolonged market lull over the past few years.

Average selling prices at this site is expected to hover around $1,700 psf due to the high land cost and also its proximity to the Farrer Park MRT station and other amenities such as City Square Mall and Mustafa Centre. The neighbouring plot where Sturdee Residences stands only lodged at $787 psf.

The lack of land sites available for sale in the earlier part of 2016 could have resulted in pent up demand from developers who are looking to replenish their lank banks in preparation for 2018 and beyond when market recovery is expected to happen. Property analysts are already seeing signs of market stabilisation and developers who prepare ahead of the recovery could just catch buyers at an opportune time.

 

Forest Woods condominium in Serangoon selling fast

Keeping unit prices at the new Forest Woods condominium below the $1 million mark seems to be a good move by developer, City Developments (CDL).

forestwoodsBuyers are attracted by the prime suburban location and its proximity to the Serangoon MRT station which speaks volumes since location is still a key mitigating factor for most tenants. The fact that the Serangoon MRT station is a major interchange node connecting between different MRT lines, is linked to a bus interchange and also a huge shopping mall, NEX, are all bonuses. And as property prices have been falling for a couple of years now, buyer sentiment is that they will not fall any further, and are taking the opportunity to buy now before interest rates potentially rise in the later part of the year. The $6,000 to $12,000 early bird discount may also have enticed some to seal the deal early.

forestwoods2All the one- and two-bedroom apartments launched at Forest Woods have sold out and the median selling price currently stands at $1,400 psf. The development has a range of units ranging from 506 sq ft one-bedders to 2,185 sq ft penthouses. As of Sunday evening (the project was launched last weekend), almost 65% of the units were already sold. One of the three penthouses available was also sold at $2.85 million. Almost 90 per cent of the buyers were Singaporeans, with the rest being permanent residents or foreigners from China, Indonesia, Malaysia, Taiwan, Vietnam and Switzerland.

Singapore Real Estate – Of Buying and Renting

It is not easy sussing out a good landlord, tenant, seller or buyer. It takes time, a great deal of good timing and some amount of luck.

But whether you’re looking to rent a property or buy one, there are some common things to look out for.

Adana CondoPhoto: Adana Thomson

1. Reputation – If you are looking to buy a new property, the developer’s track record is one of the key factors. This even applies to resale properties for that matter. It is a reassurance of the current and future value of the property. They are familiar with the ins and outs of the industry and have quality control checks in place; plus they are often very transparent with the selling process. For tenants and landlords alike, background research and interviews are important. Employment track record, understanding each other’s background and culture are crucial and laying things out clearly on the table before anyone signs on the dotted line will help smoothen the tenancy out. In some cases, landlords may even request to check with a tenant’s previous landlords for references.

2. Price – There is no need to price below market price purely to secure a deal, landlords and home sellers should be realistic but also fair to themselves. They need to weigh the time and effort they are willing to sacrifice against the amount they are able to profit in the long run. Pricing too high may simply keep buyers and tenants at arms’ lengths and a vacant property will still require maintenance and utilities. It will always help to find out what similar properties in the vicinity are going for.

3. Finances – Before going on the hunt for a property, it’s always wise to first sort out your finances. Check with banks to see how much you are able to loan, how deep your pocket actually is, and what sort of financial liquidity you need and the sustainability of your current financial situation. Taking steps before committing to an often life-long commitment of buying a property will keep debt away. And remember not to be lead by opinions of others. They will not be paying your mortgage. Decide on what works best for you.

And after all that, if all else fails, a recommendation of a good real estate agent will often make all that property-hutning headache go away.

How much is that DBSS resale flat in the window?

$700,000. This is how much one of the first DBSS units to enter the resale market recently cost.

And this could very well set the trend for all the following DBSS resale units which enter the market. The Design, Build and Sell Scheme (DBSS) has been discontinued since 2011 when the public questioned the prices at which developers were selling the public housing units at. Centrale 8 at Tampines went for $880,000 in 2011, though developers lowered it to t$778, 000 thereafter.

The Premiere at Tampines

The Premiere at Tampines

But since units at the 2006-launched The Premiere at Tampines have gone on the resale market since most of its occupants have passed the 5-year minimum occupation period (MOP), all eyes are on how much these originally premium units will go for considering the current market situation.

Although lower than the highest asking price of $800,000 for units in Tampines, the average selling price is still about double of its original. A 5-room flat at The Preimiere @ Tampines originally cost $308,000 to $450,000. Recent sales figures showed a 2 units going for $699, 888 and $671,000. Comparing its age and size with other HDB flats nearby, they are considerably pricier. Most of the other HDB flats in this mature estate may however be larger, almost 109 sq m larger, but with less than 70 years left on the lease.

Centrale 8 in Tampines under the DBSS scheme. Image by Sim Lian Group Limited.

Centrale 8 in Tampines under the DBSS scheme. Image by Sim Lian Group Limited.

Should these young HDB flats cost more than its counterparts and will buyers buy into its premium private developer fittings qualifying for its higher prices even as resale units?

Aljunied Condominium to be sold

The Avant received its temporary occupation permit (TOP) last year, and already has a single tenant who rented all 50 units, but now these units will be sold on the open market. How does this work?

Suites@Guillemard condominium

Suites@Guillemard condominium

The buyers of this property will be purchasing the entire development and thereafter be able to receive rent from the existing tenant or sell the property en bloc, or one unit at a time. The Avant is a 99-year leasehold condominium project with 50 units made up of studio, one-bedroom and two-bedroom units. 43 units are less than 540 sq ft. Small, compact but rental yields are projected at a 3 per cent annual rise. Similar properties nearby such as Suites @ Guillemard and Suites @ Sims have all done well in recent months, with prices going at $1,500 to $1, 900 psf.

The developer-owner of The Avant is hoping to receive maximum prices for the property through the sale and although initially planned for long-term investment, many offers have since been made for the purchase of the property. If the sale is successful, will the new owner or developer be putting out single units for sale in the open market? Will this mean more competition for properties nearby or better prices all around? Are buyers still looking out for small apartments and will the seller be able to ride the resale home wave in time?

Lowered prices for High-rise living

If you’re thinking about reaching for the top, that is. All the way to the top.

Penthouses are the creme de la creme of every condominium, and naturally they would come with corresponding prices. But with the decreasing number of buyers for these sky-high units, developers are now dangling discounts and offers for these rare but expensive units.

Signature@Lewis is located in the prime district 9, near good schools, amenities and the Botanic Gardens.

Signature@Lewis is located in the prime district 9, near good schools, amenities and the Botanic Gardens.

As the number of expatriates dip and so do their housing allowances, rental is on the downhill slope as well. City Developments Limited (CDL) has been offering a 5 per cent discount on their unsold stock of completed penthouses. These include those at Shelford Suites, Wilkie Studio and The Glyndebourne. Prices start at $2.9 million after discount.

Another property developer offering discounts on penthouse units is Hiap Hoe. At Skyline 360, four penthouse units are going at a whooping 28 per cent discount. Though still a considerable $9 million, you get a 3,929 sq ft unit, and at those prices, shaving off 28 per cent is amount to scoff at. At their Signature at Lewis project, they are offering a similarly attractive discount of 25 per cent. Prices are estimated at $4.6 to $5.2 million ($1,500 psf).

Penthouses are usually priced out of reach for most buyers, thus they are seldom the first to be sold in a project. But they do offer premium space and privacy with the larger floor areas that includes large roof terraces of double-storey units – also known as duplex penthouses.

Is there a difference between penthouses within the Central region and those in suburban developments? But of course. Industry analysts approximate penthouse prices to be at:

  • City Fringe – $1,400 to $1,800 psf
  • Outside Central Region – $850 to $1,200 psf
Martin Place Residences in District 9

Martin Place Residences in District 9

In the resale market, penthouses are even harder to come by as buyers are often able to keep them despite not finding tenants, or simply enjoy them for themselves. Rental yields for these prestigious homes are high, but harder to come by. Monthly rentals are by the tens of thousands. A 4,230 sq ft penthouse unit at Amber Residences in district 15 for example, rents for $10,800 per month. At Martin Place Residences in district 9, the price could go as high as $24,000.

Are penthouses worth investing in or should they mainly be considered for owner-occupation. Are there any cons in buying one or are there only pros, especially in the long term?

Property curbs brought in revenue

What did all the previous rounds of property cooling measures bring to the table?

$1 billion. In tax revenue.

Financing Your HomeFollowing January’s new Additional Buyer’s Stamp Duty (ABSD) hikes, in February and March $158 million were added to the taxman’s coffers. The ABSD is now up to 15 per cent. $580 million came from foreign buyers, were 3, 041 homes were sold since December 2011. Singaporeans and Permanent Residents (PRs) forked out $386 million for 7,269 homes. ABSD was introduced in 2010, and since then, home owners have paid up a total of $66.6 million of this levy.

Foreign home buyers have retreated somewhat, with a 36 per cent drop from last year. The ABSD currently stands at:

  • 15 per cent for foreign buyers
  • 5 to 10 per cent for Singaporeans and PRs
Starlight Suites condominium.

Starlight Suites condominium.

Since new home sales have continued to push on, strongly, despite the measures, the ABSD may not have entirely been a deterrent nor an aid to managing home prices. Property developers are also helping to bolster the market by providing discounts, rebates and other incentives to home buyers.

Many buyers are willing to suffer a little now and buy when they can, rather than wait for something that may or may not happen. As the population continues to grow, they are perhaps preemptive of the future where rental could be a considerable means of income and should homes become out of reach for their children.