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.

 

More new homes sold in May

1,056 new homes were sold last month, the highest in the past 10 months and up 41.2 per cent from April.

StarsOfKovanSales were boosted mainly by 2 major property launchesGem Residences in Toa Payoh and Stars of Kovan in Upper Serangoon. The former moved 312 units at a $1,431 psf median while 76 units with an average price of $1,414 oaf were sold at the latter. The comparable selling prices could be indicative of buyers’ sweet. Factors which may affect figures in the next quarter could be the cutback on sales of government land sites and the lack of new launches.

Other properties which also fared well in the last month were Poiz Residences, Sturdee Residences and Botanique at Bartley. Location was definitely key, in particular units situated near MRT stations. Properties in the city fringe proved their mettle, selling 582 units while 414 suburban homes were sold and just 60 in the core central region.

But analysts are keeping their smiles on about property market’s recent movements though the second half of the year will need to have a strong economic showing to keep the momentum going. Interest rates if kept low, will also help to keep the ball rolling.

Small gems win big

Gem residences in Toa Payoh has already sold more than 55 per cent of their 578 units in their weekend launch last weekend. Median selling prices were at $1,426 psf and analysts are happy to report this a success as most new projects receive bulk of their sales within the first 2 to 3 weeks and a 50 per cent sales rate within the first month is already a positive sign.

Gem REsidencesAnd the prize came in small packages as units below 1000 sq ft were the clear winners last weekend. Approximately 60 per cent of all their 471 units below 1,000 sq ft have been sold while buyer picked up about 20 bigger-sized units. Gem residences is developed by Gamuda, Maxdin and Evia Real Estate. As Gamuda Land‘s first project in Singapore, the response is a happy one probably because prices were kept realistic and affordable. Their 980 sq ft tri-key or trio units were popular picks, 5 of their 37 units have been sold thus far.

The TerraceOther new launches which recorded sales over the weekend included Stars of Kovan with about 70 units sold of date, The Trilinq, Sturdee Residences, The Poiz Residences, Principal Garden, Botanique at Bartley, Symphony Suites, The Terrace, Sol Acres, The Amore and Bellewaters.

 

More unsold private home stock moved in April

New private home sales fell 11.6 per cent to 745 units last month, though the numbers may be considered to be decent as there were 2 major launches in March which caused a spike in sales volume, the highest in 8 months. The 268-unit The Cairnhill and 216-unit The Wisteria launched in March while the 305-unit Sturdee Residences and 48-unit The Asana launched in April.
The AsanaOlder projects however were finding favour with buyers as the number of transactions on previously launched developments rose from 541 to 619 in April. A few of these projects such as The Trilinq, have reached or will be reaching completion soon and are more of a draw for buyers who wish to move in sooner than later. Developers of some of these properties have also offered discounts and the lower prices are the icing on the cake.

Taking executive condominium (EC) units into consideration, the numbers are even higher. Approximately 400 EC units were sold. At the previously-launched The Terrace EC, the developers have put a buyer-referral scheme where both parties received $10,000 cash vouchers for successful transactions.

The TerraceProperty analysts are optimistic about the shift in tide as sales were spread evenly amongst the 15 top-selling residential projects, a sign that buyers are looking throughout the island, and not simply converging on new launches. Ironically, the government’s insistence on keeping the property cooling measures might have driven buyers back into the market as they realise the curbs may not be lifted anytime soon.

 

Property market showing signs of awakening

Sturdee-ResidenceAlthough property prices have been falling, the show of interest from the buying public has never really waned, instead they are now simply more aware of their options and have become more selective in their investments.

Signs that the market lull might be broken soon have come from the positive take-up of units in 2 recent launches at The Visionaire Executive Condominium (EC) and The Sturdee Residences. 158 units were sold the 632-unit The Visionaire EC at a median price of $811 psf while prices averaged at $1,550 psf at the 305-unit The Sturdee Residences. Buyers at the private residential project have gone mainly for the smaller one- and two-bedders though 3 of its 8 penthouses have already found new owners. Two of the 1,830 sq ft penthouse units were sold at $3.2 million each.

Gem REsidencesThe Parc Life EC and private residential project Gem Residences will launch this weekend. Private condominium Stars of Kovan is expected to launch next month. The latter is a mixed-use development consisting of 390 residential units, 5 strata terraces and 46 shops. Prices are expected to range between $1,550 to $1,600 psf. E-applications for Parc Life have already exceeded the 660 units available and there is hope that uptake will be on the uptick at both these projects.

Foreign buyers favour luxury properties in Singapore

Private apartments up to the size of 506 sq ft, more popularly known as shoebox apartments, have been having a hard time finding new owners as prices of completed units fell 1.1 per cent. However, non-central region private apartment prices rose 0.3 per cent in February and central region units have fared surprisingly well.

St Regis ResidencesThe recent sale of a $15million St. Regis Residences penthouse may have given the owner in a $3.3 million profit margin and given last month’s figures a boost despite the low sales volume. Overall, private property prices rose 0.4 per cent last month, following a 0.2 per cent rise in January. The luxury property market has not been in the best of health last year, but things may be taking a turn for the better.

Though property analysts are conservative about their predictions of a market turnaround this year, it is nevertheless a glimmer of light. With rising home prices in London and Hong Kong, foreign buyers are taking a second look at properties here in Singapore for investment purposes. Approximately 92 per cent of the sales and subsales transactions registered in the core central region come from foreign buyers.

Sturdee-ResidenceProperty investors with less holding power may be pushed to sell their units, in particular the smaller ones as rental prospects have dimmed, as oil, gas and marine sectors wobble.

New property launches in May

The first quarter revealed a dip in new private property prices, though it could have been chalked up to the lack of new property launches. Developers may have been holding back on the launches, due to China’s market instability and the lunar new year festivities, till the later part of H1. And when that happens, pent up demand may mean good news.

Kingsford WaterbayPhoto: Kingsford Waterbay

Sturdee-ResidenceThere were a few select launches in February,  the 40-unit Longhaus in Upper Thomson Road; and The Wisteria and Cairnhill Nine this month. With the increase in uptake this month, property analysts are hopeful that numbers will look up in the second quarter.

Suburban condominiums fared particularly well, with The Panorama in Ang Mo Kio and Kingsford Waterbay both selling 18 units last month, the former at $1,211 psf and the latter at $1,127 psf. Principal Garden, Symphony Suites and The Poiz Residences are close runner-ups. A total of 430 homes were sold last month, down 10.2 per cent from January.

Buyers will however have lots to look forward to in a couple of months’ time. Sturdee Residences, The Visionaire and Parc Life executive condominiums and a new private condo in Toa Payoh will all be launching soon.

 

New private homes market dependent on stock

Last month’s new home sales was a little lacklustre. But that could simply be due to the fact that there were no major or new launches in January. Only 146 units from previously launched projects were released. And January is after all known to be a slow month for property sales.

The Wisteria CondoPhoto: The Wisteria condominium 

The GladesThe new property market looks all set to be bright and exciting after the lunar new year, with new projects such as The Wisteria, Sturdee Residences, Wandervale EC (executive condominium) and The Visionaire EC. Property analysts are expecting new private property sales volume to reach 7,000 this year. In 2015, 7440 new units were sold.

Of late, developers are more focused on selling existing stock, with some even offering up discounts and Chinese New Year promotions. At High Park Residences, some 20 units were offered up with $33,888 in discounts while at The Glades, some units were going at a $38,000 discount while most other units had $8,000 shaved off.  Executive condominiums however were the big sellers, with an average of 155 units sold monthly despite there not being any new EC launch in the last quarter.

Resale properties are giving new units a run for their money, with prices rising last month. There may be a fair fight for buyers in the private property market as buyers shop their options and wait out market volatility.