Woodleigh government land sales site attracts top bids

A 99-year leasehold site on Woodleigh Lane launched under the Government Land Sales (GLS) programme has drawn bids from 15 developers, with a top bid thus far of $700.7 million from CEL Unique Development, jointly owned by Chip Eng Seng Corp and Unique Real Estate. The latter is a joint venture between Heeton Holdings and KSH Holdings. About half of the 15 bids were above price expectations, one-third above the $1,000 psf plot ratio and the top 4 were within the 3.6% margin.

BidadariWith current market sentiments consistently improving and the potential for a market recovery not impossibly far away, when a choice piece of land comes along, developers have been seen to bid aggressively, especially of late. The 19,547 sq m Woodleigh site is primely located beside the Woodleigh MRT station and near the upcoming Bidadari township which many buyers and investors are keeping their eye on. The site has a maximum gross floor area of 58,641 sq m and residents of the new development may also enjoy the unblocked view of the neighbouring low-rise landed housing area.

8woodleighTaking into consideration the proximity to an MRT station and other amenities such as the NEX shopping mall, property experts are expecting selling prices of the future residential project on the site to be between $1,720 psf and $1,800 psf. The Bidadari township will prove to be both a boon and a slight disadvantage as the new HDB estate will bring life and activity into the area, but the recent sale of a mixed-use site nearby may bring on the competition. By the time both properties are launched, it will simply be a matter of whether the price is right.

Market recovery uncertain despite rise in resale condo prices

May was a rather good month for the resale private condominium market as prices rose 0.4% and sales volume increased by 17.4%. In comparison with the same month last year, prices have risen 1.5%.

CreekBukitTimahAll signs seem to be pointing to a market recovery after 3 years of lacklustre performances. However, some property analysts are taking a more conservative stance with regards to the recent price adjustments. The leasing market remains weak and rental prices have fallen, putting additional pressure on an already-weak market hence the market is still a ways from bottoming out. Private property values have fallen 11.6 per cent since the peak in Q3 of 2013.

skyline-residencesPrices of resale properties in the core central and city-fringe regions have shown improvements with a 1.1 per cent rise from April. In the suburbs, prices fell slightly by 0.4 per cent. A moderate look at the current situation would more likely than not mean a gradual rise in prices over the course of a year rather than a quick and immediate recovery. A recent hash of high land bids and the gradually diminishing stock of unsold private homes do however seem to be beacons of light, however dim, pointing towards the promise of a market stabilisation at the least. Positive sentiments and sales at new project launches and continued low interest rates may add icing to the cake if developers can have it and eat it too.

 

Resale private home prices fall in Q2

The first month of the second quarter ended with a slight fall in resale private home prices. The shift in the winds could be due to the higher number of new launches in April, with buyers’ attention turing towards new projects instead.

RiversailsOn a brighter note, demand for shoebox apartments seem to be on the rise, with consistently increasing numbers over the months of March and April. Figures for this segment are taken separately and have shown an 0.7 per cent rise in prices for these units with floor areas of up to 506 sq ft in April, following a 1.3 per cent rise in March. Property analysts are however wary of calling it a market rebound as the rental prospects for suburban smaller apartments are not yet on the road to recovery. Though there is a sense of the market picking up, most of the uptick have been focused on the developer sales segment. After a few months without new launches, buyers have returned to the new homes market with fervour, though most are in search of value-for-money deals targeted at property investment rather than on picking out units from the resale sector.

In the districts of 4, 9, 10 and 11, resale private home prices fell 0.5 per cent. Included in the core central region are the Central Business District (CBD) and Sentosa Cove. Prices of private non-landed properties have fallen 13.8 per cent since its 2013 peak and because of the debt servicing ratio limits placed on loans, buyers often have to be more selective of what their loans go towards. New properties are their product of choice for the moment.

With April’s price decline, could the bottom of the property cycle be in sight?

Resale private home prices up for 4th consecutive month

3 months into the new year and things seem to be looking up for the resale non-landed private home sector. Prices have been on the rise for the fourth consecutive month with a 0.9 per cent climb last month, following a 0.6, 0.3 and 1 per cent rise respectively in the months counting up from December last year.

ParkInfiniaRecent industry figures have shown a slight recovery in both prices and sales volume in the resale market, mostly due to an overall more upbeat atmosphere boosted by a series of successful new launches within the first 3 months of the year. Approximately 694 private non-landed residential units were resold in February albeit it being the shortest month of the year. That is 31.2 per cent higher than the 529 units which exchanged hands in January though that could have been because of the Chinese New Year holidays.

Comparing year-on-year, resale prices in February this year clocked at 1.8 per cent higher that the last and resale volume was 77.9 per cent higher than the 390 units sold the same month last year. Compared to the price peak in 2014, resale private non-landed home prices is still lagging by 6 per cent, but considering the lull which took over the real estate sector for the past 2 to 3 years, price increases across the island in this segment is a step in the right direction. Prices in the prime districts rose 1 per cent while inching up 0.8 per cent in the city fringes and 0.9 per cent in the outside central regions.

 

Will property market bottom out soon?

Hopes of a market rebound may be reignited as the bottom of the cycle seems to be in close reach. While private home prices have fallen by 0.4% for the 13th consecutive quarter, the rate of decline of private home prices have been reduced from the 1.5% in 2016’s Q3.

cairnhillresidencesIn 2016, private home prices fell only 3%, the slowest since 2013. Since the third quarter of 2013, home prices have fallen 11.2%, with a 4% fall in 2014 followed by a 3.75% fall in 2013. The projected fall in home value this year is 2% to 3%. While home seekers and investors may be drawn back into the market with the lowered property prices, analysts are not expecting them to splurge.

highlandresidencesIn Q4 of 2016, non-landed private home prices fell 0.7 per cent, led by city fringe properties with a 2 per cent drop. Prices of units in the core central region remained unchanged while suburban home prices fell 0.3 per cent. Units in the core central region have suffered a 1.9 per cent fall in Q3, thus the fact that sales volume have increased while prices remained unchanged could be a good sign for the year ahead.

Landed property prices posted a surprising rise of 0.9 per cent after a 2.7 per cent fall in Q3 while in the resale HDB flat market, prices fell 0.1 per cent.

Resale private condo prices up by 0.3%

Resale private non-landed property prices have inched up slightly in November with a 0.3 per cent increase following a 0.7 per cent fall in October.

teresavilleHowever on a year-on-year comparison, prices were 1 per cent lower than November 2015. As more new units enter the market and demand wanes, more sellers have put their properties up for sale below estimated market values. In districts 22 and 27 of Boon Lay, Jurong, Tuas, Sembawang and Yishun, private condominium units have been sold at around $20,000 below the market norm.

But in district 4 which includes Mount Faber, Telok Blangah and Habourfront, condominium prices have been consistent with some buyers even paying up to $25,000 above market value. On a positive note, the margin between the market value and the average selling prices of resale condominiums have been narrowing, as more buyers get used to the stamp duty requirements and additional fees involved and are rather actively seeking good deals.

pebblebaySales volume of resale condo units has also improved 21.3 per cent from last November with the 581 transactions recorded for the month. In the prime districts, prices rose by 2.3 per cent while those in the city fringe dipped 1.5 per cent. Suburban resale private condos fared least well with a 2.6 per cent fall in prices. Analysts are watching the market closely for signs of how it will fare in 2017, and have raised concerns about prices possibly lowering further as more unsold homes seep into the market.

Property market in the doldrums in Q3

The local property market seems to have taken a harder hit in the third quarter as both sales and rental figures fell. While the decline was not drastic or sudden, it nevertheless points to possibly tougher times ahead.

alexresidencesOverall property selling prices fell 1.5 per cent while rental prices dropped by 1.2 per cent. The general global economic gloom, fears of inflation and growing unemployment rates have given way to a sense of impending recession. Buyers are likely to be more careful with their finances and though property is a good way to hedge excess funds, investors are likely to weigh yield potential even more seriously should the negative sentiments persist.

The private residential market seems to be the most affected as vacancy rates rose. Property analysts report more positive sales in the resale rather than the new homes segment, possibly because there were fewer new residential project launches in Q3. Resale property sales clocked a 15.7 per cent increase while new homes sales fell by 12 per cent.

tampineshdbIn the resale HDB property market, prices continued to stabilise, with no significant rise nor fall. However, the number of transactions recorded fell by 5.5 per cent. Currently, overall private home prices have fallen 2.6 per cent.  With only 2 months left to the year, property experts expect a slight fall in prices and transactions in the private property market, which largely dependent on market sentiments may result in a final 3 to 4 per cent decrease for 2016.

Property cooling measures likely to remain

The economic slowdown and diminishing growth rates are causes for concern not only for the Singapore government, but also for consumers and businesses.

National Development Minister Lawrence Wong has recently spoken about the property cooling measures which were implemented in succession over the past three years. He has mentioned that they are likely to remain at this time of uncertainty as a response to “global context and environment”.

Kingsford HIllview PeakProperty prices have fallen 10.8 per cent since Q3 of 2013 and prices fell 1.5 per cent in the third quarter of this year, bringing it to the 12th consecutive quarter of price decline. The real estate industry currently faces stagnation and though interest rates are low, many are looking for higher yields. He has warned against creating an environment rife with property speculation and has said that capital inflow might create a volatile and highly-speculative atmosphere which will result in property market fluctuations.

With the high number of completed units entering the market this year, and with unsold inventory rising, the property cooling measures may be helpful in keeping the delicate market balance. As of Q2 this year, there were 21,500 unsold and uncompleted private homes, the lowest ever recorded, indicating a possible shift of influence from the seller to the buyer. The government has also held back on the launch of land sites earlier this year.

Meyerise2Property analysts are not surprised by the government’s move to keep the property curbs in place, though sudden pace changes and steeper declines might prompt the government to reconsider relaxing the rules sooner.