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25 Apr

Guide to Insuring your Home

When it comes to ensuring that the value of your home and its contents are rightly accounted for when unfortunate circumstances hit, no effort should be spared in unearthing the best available insurance plans to suit your needs.

Don’t get burnt by sudden disasters; get the right policy for your needs. Image courtesy of Thinkstock.

Don’t get burnt by sudden disasters; get the right policy for your needs. Image courtesy of Thinkstock.

Assessing your needs

The first step to take in insuring your home is figuring out what you really need, as this will give you an idea of how much coverage to get. Reflect on how much you are financially invested in your piece of property, and how much more you are willing to fork out to protect its value.

  • Do you have many valuable possessions?

Take into account your state-of-the-art computer, expensive jewellery, artwork, or designer furniture. You may also wish to insure items of sentimental value, but don’t get carried away. What is important to you may not be of monetary value.

DirectAsia.com covers loss or damage to your home contents, which they define as “anything inside your house and garden that you would take with you when you move”.

  • Is your location prone to damages?

Singapore’s location on the globe may keep us safe from hurricanes or volcanic activity, but some homes remain at risk to the occasional flash-floods and earthquake tremors. If your home is perched on ground level or located on the lower floors of the building, at a low-lying area like Bukit Timah Road or Stevens Road, you might want to choose a policy that covers your belongings and renovations in the event of a flood.

DBS’s HomeShield plan insures against floods with damages up to an excess of $100. DirectAsia.com insures against floods and earthquakes, but covers only homes that have not previously suffered damage from floods and other listed disasters.

  • Did you splurge on your home?

If you purchased your home for an extravagant price and lavished it with renovation projects, you might want to spend a bit more to insure your investments in the home. However, stick within your budget and go for the best option you can afford.

Aviva’s Home plan covers fixtures like built-in wardrobes for a maximum sum insured of $100,000.

Basic coverage

Some houses come with their own insurance policies.

When you buy a new Housing Development Board (HDB) flat, you may be required to apply for two kinds of insurance: the HDB Fire Insurance Policy, and the Home Protection Scheme. The former is meant for those taking a HDB loan. The latter is for those who have arranged for monthly housing repayments via their Central Provident Fund accounts.

The Home Protection Scheme, in particular, is a mortgage-reducing insurance scheme. It ensures that your home will not be lost should you not be able to complete your housing loan payments.

Similarly, private homeowners taking out a bank mortgage have to first take out a fire insurance policy. Some banks, like Standard Chartered, offer free home-insurance for the first year when you take up a housing loan with them.

However, these policies usually have very basic coverage. In a typical fire insurance policy, only the walls and ceilings of your home are covered in the event of a fire. This means you cannot claim for the loss of your flat-screen television. Neither can you claim for items stolen or damaged by other means.

Choosing the right policy

If your basic home policy is insufficient, you should search for better solutions in the market.

Take note of these key points when deciding on a suitable plan:

  • Items covered

Check if the policy covers renovation costs and the value of contents of your house. Some policies even cover personal accidents and liability, loss or damage to valuables outside your home.

  • Definition of terms

Insurers do not all have the same definition of risks. Pay attention to these definitions as they can make a difference to what belongings you can seek damage against, and ultimately the amount you can claim.

  • Excess clause

This is the minimum amount you have to bear for all losses except those resulting from fires. Find out exactly how much you have to foot per item. For example, DBS’s HomeShield plan has an excess clause of $100 for water damages.

Tips:

  1. Most insurers offer more than one housing plan. Some, like Aviva, offer you the flexibility to add only the benefits you need, so you won’t have to pay more for a comprehensive plan you won’t fully utilise.
  2. Over-insure rather than under-insure, as it is common to accumulate new items in your home over time. The less you insure, the less you can claim. However unlike many insurers, Great Eastern’s HomeSupreme plan has a ‘First Loss Policy’ that does not penalise you for under-insuring.
  3. If you are a pet owner, look out for a plan that includes coverage for your beloved animal. Great Eastern provides coverage for the accidental death of pedigree dogs, but there are plans that cover cats and dogs for a handful of unfortunate situations.

 

25 Apr

Moving unsold apartment units – Good news for home buyers?

Private residential condo projects with unsold units may be moving them at discounted prices. Does this mean good things come to those who wait? What are the possible pros and cons in waiting out the initial rush for new properties?

Some developers are ramping up their marketing and throwing in discounts in a bid to move unsold units. Builders often have a stock of unsold flats in projects, even years after launch, so such campaigns are not uncommon. Bukit Sembawang marketed 19 units from its Paterson Suites, in Paterson Road, over the weekend with offers that effectively meant lower prices for buyers. These have been snapped up, leaving only two four-bedders, on the second and fourth floors of the luxury condominium, sources told The Straits Times. The freehold project was completed in 2010.

Paterson Suites luxury condominim on Paterson road.

One incentive could be the guaranteed 5 per cent rental yield for four years advertised in The Straits Times last Friday by the developer. This works out to $300,000 a year – or $25,000 each month – for four years, on a $6 million apartment. So if the rent falls below $25,000 a month, the developer will top up the difference. Owner-occupiers were given an outright 10 per cent discount off the purchase price. The two remaining units are around 2,200 sq ft and were quoted as costing just over $2,800 per sq ft (psf) on average, giving a price of more than $6 million each. The 102-unit development was sold for a median psf price of $2,720 in June 2007, shortly after its launch. The sources said a mix of locals and foreigners have bought units there.

Sources also said that in Simei, CEL Development, the property arm of Chip Eng Seng, is looking to release units at its project My Manhattan. The 301-unit condo was launched early last year, but experts said that the hefty price tag of about $1,219 psf could have deterred buyers earlier. It is understood that CEL Development is still deciding on how many units to release this time at the project, expected to be completed in 2014.

My Manhattan condo project.

Urban Redevelopment Authority data shows that only 134 units, or about 45 per cent of My Manhattan, have been sold so far. Mr Nicholas Mak, head of research at SLP International Property Consultancy, said it is common for developers to have unsold units a year or more after launch. He said that developers relaunch or revive promotions when the market gets hotter and they want a slice of the pie. ‘They may feel that there are now more buyers in the market, or are encouraged by the high number of sales in the previous months,’ he said, adding that prices may be revised to attract buyers.

Property consultants also said that Paterson Suites’ perks, while not new, have not been seen in the market for some years. Mr Colin Tan, research head at Chesterton Suntec International, said: ‘This is because in the central areas, developers see no reason for lowering prices… Now they feel confident enough to give such discounts and that it would attract more sales.’

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

Editor’s Commentary:
There is no guarantee of developers dropping prices for unsold units, thus it may all depend on what criteria you are measuring your property investment against. Location, rental potential, or long-term owner occupation?

24 Apr

Close to 80 per cent drop in home sales to foreign buyers

Permanent residents (PRs) aside, sales from foreign home buyers have dipped by 78 per cent in Q1. Are these numbers representative of the real estate market in Singapore? Are there untold implications hidden in these numbers?

Home purchases by foreigners plummeted 78 per cent in the first quarter as the effects of the 10 per cent additional buyer’s stamp duty hit hard. Most foreigners have retreated hastily from the market, buying just 293 homes in the first three months of the year, an analysis of caveats by Dennis Wee Group (DWG) found. This is 78 per cent down from the 1,358 homes bought by foreigners in the fourth quarter. Permanent residents (PRs) are not included as foreigners in these figures.

What do the recent residential property prices and sales figure indicate?

Among PRs, home purchases dipped just 7.5 per cent to 790 units, while Singaporean purchases fell 12 per cent. Tough cooling measures unveiled on Dec 8 slapped a 10 per cent additional buyer’s stamp duty on all home purchases by foreigners. But PRs had to fork out only an extra 3 per cent on their second and subsequent home purchases. Experts say the policy shift has caused foreigners to pull out of the market in a knee-jerk reaction as they reevaluate their options.

They say some foreigners might still see long-term potential in Singapore’s property market and are attracted by rebates offered by some developers to cushion the impact of the tax, but others are simply watching and waiting. Mr Lee Sze Teck, senior manager of research and consultancy at DWG, said he expects the number of foreigner purchases to hover at these subdued levels for the next one or two quarters. ‘Whether the foreigner market picks up again depends on prices and whether market conditions are favourable in the later part of the year. If things pick up, then they will be back because Singapore is one of the more stable countries in the region,’ he added. Jones Lang LaSalle’s South-east Asia research head Chua Yang Liang said uncertainty in the global economy might also have taken a toll. The new rules might have prompted more foreigners to rent instead of buy, DWG added. This could have led to median rents of private homes inching up 2 per cent in the first quarter, Mr Lee said.

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

Editor’s Commentary:
As long as Singapore’s political and economic stability is the draw, the property market will continue to be favourable. However, the situation here could also be closely linked to the global markets. What signs should we look out for to more accurately spot risks and property investment opportunities?

23 Apr

More backing out of property buys

Is the sheer number of new properties, resale properties and public housing options simply too mind-boggling for the home buyer? It seems so for some, as seen by the number of buyers returning their units in March, thus forfeiting their option fee. What could be the reasons?

Skyline @ Orchard Boulevard saw 11 buyers returning units which they paid options fee for.

Buyers of 107 new private homes had a change of heart last month and returned their units to developers. The numbers, contained in a report from Goldman Sachs, show that even in a hot market, some people get cold feet. The same report also stated that 100 homes were returned the month before. That means these buyers have paid an option fee but have chosen not to exercise the option and go ahead to complete the purchase. When someone buys a new condominium, they put down an initial option fee of 5 per cent to ‘reserve’ the unit. After that fee is paid, the developer of the project has 14 days or more to issue the sales and purchase documents as well as the title deed. From then, the buyer has three weeks to exercise the option to purchase the unit. In some cases, this whole process could take up to eight to nine weeks. If the buyer chooses to back out, he forfeits a quarter of the option fee, or 1.25 per cent of the purchase price. That could mean forfeiting $12,500 on a $1 million unit, or a $75,000 for a high-end one costing $6 million.

The 107 units returned in March could have been bought in either January or February. Analysts were not surprised by the high number of options lapsing, as the number of options lapsing tends to be correlated to the number of sales made. Buyers bought 4,289 units in the first two months of the year.

The Scotts Tower - A SOHO Development in Orchard Road was launched by Far East Organization in November last year.

In March, most of the returned units came from the mass market, but this could be because more projects were launched within the sector. The Straits Times looked at a sample of 15 upcoming projects and found:-

  • 11 units were returned at the 689-unit Parc Rosewood in Woodlands. Apartments at the 99-year condominium were sold for a median per sq ft (psf) price of $994.
  • Watertown, a 992-unit mixed-use development in Punggol, had 17 units returned. Units were sold for a median psf of $1,341.
  • Bartley Residences, with average prices of $1,240 psf after discount
  •  The Hillier, priced at about $1,289 psf, both had nine units returned.
  • Skyline@Orchard Boulevard, where an apartment recently went for $4,442 psf, had one unit returned. Prices there could easily exceed $6.5million, as the smallest unit is 1,744 sq ft in size.
  • The Scotts Tower also faced one cancellation. Earlier this year, a unit there fetched $3,567 psf.

A property developer also said that it was normal to see some units returned every time a project is sold. Likewise, PropNex chief executive Mohamed Ismail noted that no new cooling measures have been introduced in the market since last December, which means many buyers could be pulling out because of personal reasons. ‘It’s a glaring number but there’s nothing to worry about. It’s common to have a handful of units being returned every month of each project,’ he said. Mr Nicholas Mak, head of research at SLP International Property Consultancy, also noted that the projects with the most units returned – Watertown, The Hillier and Parc Rosewood – included shoebox apartments. ‘Sometimes, people are under ‘peer pressure’ at crowded showflats… They go home and speak to more people and decide not to buy it. They’d rather forfeit the 1.25 per cent than regret buying it,’ he said. Mr Ong Kah Seng, director at R’ST Research, shared similar sentiments, adding that some may have bought in haste. Other buyers might have been attracted to better choices elsewhere, he added.

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

Editor’s Commentary:
The grass may or may not be greener elsewhere. Thus it might be wise to consider a number of options and have a checklist of criteria you will consider each property against before whipping out the wallet. Other ways around it might be to always keep up with property updates and new property launches.

20 Apr

Abundance of Shoebox Apartments – When will it be too much?

Shoebox apartments and smaller condominium units have been all the rage of late. How much can you expect to get out of your shoebox apartment and for how long? What are the risks to watch, if any?

Property analysts have issued a blunt warning to investors keen to buy so-called shoebox apartments in hopes of capital gains and good rental returns. The strong interest in these units – mainly 500 sq ft or smaller – is playing a central role in fuelling the robust demand in the overall private property market.

New condominium Up@Robertson Quay

Analysts at major research firms cautioned that investors should look before they leap even though the price tags look tempting, given the units’ small size. They said investors should understand that thousands of these tiny homes are set to flood the market in the next year or so, which could mean headaches in getting a tenant – or a good resale price. The analysts said most buyers for such units tended to be investors rather than owner occupiers, many of whom lived in HDB flats that were larger than the shoebox units they were buying.

A report by BNP Paribas Group noted a spike in private units purchased by HDB dwellers since 2008, many of which were shoebox-size, ‘which we believe is not for owner occupation’.n A Citi Investment Research report added: ‘Judging by the increase in proportion of smaller units sold, we believe there has been an increase in investment demand.’ A research report by Nomura Group pointed out that the number of completed shoebox units could triple next year. Most units scheduled for completion are mass and mid-market projects and more than half of such units were purchased by HDB dwellers, it said. It added that shoebox units completed in the past two years had turned in a ‘mixed’ investment performance – with varying levels of rental demand among different developments. ‘While rental demand for projects such as Parc Imperial… appears healthy, demand for others like Kembangan Suites appears comparatively slow,’ it said.

Kembangan Suites condominium.

The BNP report also stated that tighter immigration rules may mean investors would face even more difficulty finding enough tenants for the units. ‘Facing an uncertain demand ahead, we believe the physical market could start to feel the first pains of oversupply as early as (the second half of next year) via softening rents and buyer sentiments,’ it said. The researchers also warned that rising interest rates could dampen home demand. ‘Coupled with other risks such as an earlier-than-expected climb in interest rates, this could indeed have a significant impact on the financial well-being of HDB households, which typically have less holding power,’ said Nomura. Likewise, the BNP report warned that a rise in mortgage rates could hurt home affordability, ‘unless household income rises faster or home prices fall faster’.

Parc Imperial private apartments.

Investor Leona Lo, who has just bought a 463 sq ft shoebox unit in Petir Road, said she is not concerned that the surge in the number of shoebox units next year will hurt rents if she intends to lease hers out. ‘You must always like what you buy. We’ve also chosen very carefully. In the area we’ve chosen, Bukit Panjang, there are no visible shoebox developments, so we’ll be the first,’ the public relations consultant said. ‘It’s not saturated like in the East Coast.’ She added that she had just sold a 430 sq ft shoebox apartment in East Coast Road, which she had previously rented out at a yield of ‘above 2.5 per cent – more than break-even’.

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

Editor’s Commentary:
If you’re waiting to see what other new properties catches your eye, to make comparisons before you put down the money for your long-term investment, and hoping to receive some sound property investment advice, don’t forget to head on down to the iProperty International Expo at Marina Bay Sands this weekend. The doors open tomorrow, Friday, 20 April.

18 Apr

iProperty.com EXPO April 20 to 22, 2012 at Marina Bay Sands Expo Centre Hall A

Fourth signature iProperty.com EXPO returns in April with exciting residential and commercial real estate investment opportunities

Complementary seminars open for investors and agents to gain insightful tips and advice

iProperty.com Singapore – the country’s No.1 property website – proudly presents the iProperty.com EXPO | International Property Expo. Held from Friday, 20 April to Sunday, 22 April 2012 at the Marina Bay Sands, Expo & Convention Centre, Hall A, the event will feature prominent international properties, prestigious property brands and exciting real estate opportunities under one roof.

Property investors and agents from around the region and beyond can benefit from a host of insightful seminars at the fourth signature iProperty.com EXPO, where renowned international property leaders will share tips on investing wisely, provide advice on buying overseas property and more. There are also exciting booths showcasing the latest property developments and investment opportunities in Malaysia, Australia, Thailand and the United States. In addition, visitors can have a chance to win over S$15,000 worth of lucky draw prizes at the EXPO.

“iProperty.com strives to help property buyers make informed choices when it comes to buying property. With the return of the EXPO, we are glad to help investors be in the know about the latest overseas property opportunities, and empower them with data, intelligence and insights that allow them to make the most out of the risks and opportunities that are present in this current state of global economic uncertainty,” says Shaun Di Gregorio, CEO of the iProperty Group, the No.1 online property network across Asia.

PRIZED PROPERTY DEVELOPMENTS

The iProperty.com EXPO International Collection will feature attractive offerings for those with a keen interest in the latest developments in property investment:

Leading international brands will be present for consultation, such as LCI Investment, CTL Group and Executive Directions from Singapore, as well as Mah Sing Properties, Elite Forward andDijaya Corporation from Malaysia.

A host of exciting international developments will be on offer, including attractive rebates and promotions, including:

  • Malaysia: M City (5% rebates, Free legal fees & disbursement for Sale & Purchase Agreement and Deed, etc) and A-Suites Serviced Residence in Taman Austin Perdana, Johor (Low down payment starting from RM4,800, no progressive interest for 3 years, etc).
  • Australia: 60 View St, Pascoe Vale, Victoria, Australia (One-year rental guarantee; free legal fees)
  • Thailand: Circle Condominium, Bangkok (Free 1st year maintenance fee, fully furnished, etc)

For more details on special rebates, please go to: http://edm.iproperty.com/sg/expo-april-2012-key-property-exhibitors/

FREE-TO-ATTEND PROPERTY SEMINARS

In addition, property agents and investors can look forward to free seminars, talks and forums featuring property experts who will share insights on property investments, and provide an in-depth analysis of the property market outlook both in and outside Singapore:

  • With the introduction of the Additional Buyer’s Stamp Duty (ABSD) last year as a measure to help cool the local property market, investors are increasingly worried about how this will affect their rental yield.  In his seminar Is Your Rental Income Secure? on 21 April, 5pm to 6pm, Alfred Chia, CEO of SingCapital, will examine the implications of ABSD to the real estate market, and provide tips for investors to secure and safeguard their rental income.
  • Well-known property expert Mohamed Ismail Gafoor, CEO of PropNex Realty, will share incisive insights and predictions useful for investors and the public at large, in his seminarProperty Market in 2012 on 22 April, 2.30pm to 3.30pm.
  • Those who are keen to venture slightly further afield will find the seminar How to build Cash Flow with UK Alternative
    Investment?      by Danny Lim, CEO of Property Barons, highly informative. On 21 April, 5pm to 6pm, Danny Lim will share tips on how invest in UK properties with as little as £3,750, and explore other lucrative investment options available in the UK.
  • Moving away from residential property, David Poh, CEO of Asia Management & Wisdom, will share why he considers commercial/industrial real estate investment to be the star performer of 2012. In the seminar How to Make Money from Commercial & Industrial Real Estate Investment on 20 April, 6pm to 7pm, he will teach agents how to acquire specialized skills and knowledge required to succeed in this field.

The iProperty.com EXPO | International Property Expo will take place over the weekend from Friday, 20 April to Sunday, 22 April 2012, 11am to 8pm, at Marina Bay Sands, Expo & Convention Centre, Hall A.

For more information and to register, please visit http://expo.iproperty.com.

 

18 Apr

Ardmore Park luxury condominium unveiled

From the way units at the designer Sky Habitat apartments are going, luxury projects seem to be on its way up again. Yet another designer condominium project, Sculptura Ardmore, at one of Singapore’s priciest location, launched by SC Global is set to break records.

Hilltops high-end apartments also by SC Global, at Cairnhill Circle

High-end developer SC Global has unveiled the design for its Ardmore Park project. The condominium will be called Sculptura Ardmore and erected at No. 8 Ardmore Park, one of the priciest addresses in Singapore. The firm bought the 0.4ha site in 2007 through a collective sale. SC Global released design details yesterday but did not reveal the launch date, although given the current lacklustre state of the luxury market, consultants say it is unlikely to be any time soon. The development will be 36 storeys high, with only 35 apartments. They range from 2,800 sq ft to a super-penthouse of 11,000 sq ft. Consultants expect prices to start from $5,000 per sq ft (psf). That could price the super-penthouse at around $60 million.

Chairman and chief executive Simon Cheong told The Straits Times: ‘The brief to the designer is more important than having a brand-name architect. We are not building a monument, we are building a luxury living space.’ The facade, made of glass, curves slightly. There are also what are called glass fins that can slide across the apartments for shade. Four units will have private lap pools that extend out from the building to give the effect of swimming in the clouds.

What will the architectural landscape of Ardmore Park look like?

The building is designed by the New York-based CZ Design Studio and DP Architects in Singapore. Mr Cheong added: ‘We wanted to do justice to Ardmore Park. We want the owners’ guests to come in and say ‘Wow’.’

Property consultant Ku Swee Yong, chief executive of International Property Advisor (IPA), said: ‘Given the quality of the finishes, facilities and interiors that (have) made SC Global famous, I think it will be upwards of $5,000 psf.’  There have been few property transactions in Singapore that have gone past the $5,000 psf level. Last year, three units at SC Global’s The Marq set a series of benchmark psf prices. One unit went for $5,842 psf, one for $6,394 psf, with another selling at nearly $6,850 psf. That works out to nearly $20.5 million for the 3,003 sq ft home. Mr Ku added that Sculptura Ardmore will likely stand out in the Ardmore/Claymore neighbourhood ‘as the building design is a departure from the boring straight lines and white walls of this street’.

But with prices likely in the tens of millions of dollars, high-end buyers might opt for a good-class bungalow instead, although Mr Cheong disagrees, maintaining that an apartment and a bungalow cater to different buyers. An apartment offers height and views, while the maintenance charges may also be higher for a bungalow.

The Marq, by SC Global, hit benchmark prices for luxury homes when it was launched last year.

Although the additional buyer’s stamp duty (ABSD) of 10 per cent has hit foreigner purchases, Mr Ku said: ‘Investors at the ultra-high net worth category put product over price.’ Mr Cheong also tried to downplay the impact of the stamp duty: ‘People at the high end, they won’t buy unless it’s the right project. They will absorb the ABSD at the end of the day.’ He also expects many of the buyers to be locals who have travelled extensively. Mr Cheong admitted that the project cost will be expensive, and ‘managing a public company, I am conscious of telling that to my shareholders, but they know that they will see increased shareholder value’.

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

Editor’s Commentary:
Even as Singapore continues to be viewed as one of the most livable cities by Asian expatriates, home prices and rental prices of private properties and HDB flats seem likely to rise. Will luxury homes continue to attract the affluent from the region and afar?

17 Apr

Q1 new home sales breaks record at 6,682

In the span of just 3 months, home buyers here have already bought 6,682 new homes, far exceeding the year-on-year comparision to 2000, 2003, 2004 and 2008. Talk about speed. Is this wave only going to gian momentum or is it headed for saturation point?

Buyers snapped up new private homes at such a blistering pace last month that they helped smash quarterly sales records. Developers sold 2,393 new units – a touch down on February’s 2,417 – making a total of 6,682 for the three months to March 31. That is not only a record amount for a quarter but exceeds even the full-year totals racked up in 2000, 2003, 2004 and 2008. The March total hits 3,032 if executive condominiums (ECs), a hybrid of public and private housing, are included. The rocket fuel for the remarkable sales run remains the amount of cash around in the market, a record number of home launches and rock-bottom interest rates that are enticing buyers to gear up.

Besides new properties, previously launched properties such as Riversound Residence in Punggol have also put up remaining units for sale.

Experts say that the unusually high number of launches boosted sales as Housing Board upgraders and local investors entered the suburban market in droves. DTZ Asia-Pacific research head Chua Chor Hoon noted that 2,582 homes were launched last month, the highest monthly figure in almost two years. Developers launched 6,982 homes in the quarter, the highest level since quarterly data was collected at the start of 1996. Ms Chua added that developers were taking advantage of the current buying momentum and relaunching older projects. There were a further 390 units launched at Riversound Residence, 153 units at Flamingo Valley, and another 100 units each at Archipelago, The Minton and The Palette last month.

Flamingo Valley condominium on Siglap Road.

Colliers research and advisory director Chia Siew Chuin noted that 76 per cent of sales were in suburban areas, where there were ‘intense project launches’. The strong sales since January have encouraged builders to keep rolling out units while demand is still strong and also before stiffer competition emerges in the form of more projects once the ample supply of state land gets developed, she added. Buyers also seem to have shrugged off concerns over the global economy, concerns that kept a brake on sales in the second half of last year. ‘Market uncertainties arising from the additional buyer’s stamp duty are also over, with foreigner buying being curbed and the market still remaining stable,’ Credo Real Estate executive director Ong Teck Hui noted.

Experts add that the demand for new homes is likely to hold firm, with mass market sales expected to stay strong. But although the robust sales have heightened concerns about further cooling measures, they were mainly supply-driven and likely achieved at the expense of little movements in pricing, Colliers’ Ms Chia said. Flash estimates of private property values dipped 0.1 per cent in the first quarter and indicate that the Government’s cooling measures have worked to put a lid on price growth. ‘Additionally, the private residential market is in a state of flux. While the primary market is active, the secondary resale market has been slow,’ said Ms Chia.  ‘Similarly, although the mass market remains buoyant, the mid-tier and high-end segments are lacklustre. (Thus), it would also be premature to decide on more interventions.’

The Palette condominium, one of the property launched in Pasir Ris last year has released more units last quarter.

PropNex chief executive Mohamed Ismail also pointed out that 65 per cent of sales last month, including ECs, were below $1,200 per sq ft (psf). But while buyers are still keen on mass market homes, developers may face resistance if the psf price is too high, he said. But Jones Lang LaSalle’s South-east Asia research head Chua Yang Liang thinks that the risk of further cooling measures is now higher with robust suburban sales volumes. Suburban home prices also gained 1.2 per cent in the first three months of the year, according to flash estimates. ‘Any policy adjustment, however, is unlikely to affect first-time home buyers,’ said Dr Chua. ‘Buyers making their second, third or more home purchases, are more likely to be affected through further tightening of existing measures.’ The other segments languished behind, with only 57 homes sold in the city centre and 511 in the city fringe region.

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

Editor’s Commentary:
Have the cooling measures even made any difference? The number of new properties being rolled out, combined with strong buying power, property developers seem to be gaining confidence in them market. Will home buyers always have the excess cash to fork out for rising home prices? 

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