HDB’s May launch includes units in mature estates

bedoknorthwoodsUp to 8,940 new BTO (Build-to-order) and SBF (Sale of balance) flats will be made available in HDB’s latest launch. Most action may be seen in Ang Mo Kio and Bedok, both mature estates with well-laid-out amenities. Analysts are expecting subscription rates of up to 5 times the number of units available. The other estates with new BTO units available are  Sembawang and Bukit Panjang while SBF units are available in most other estates, numbers varying.

Sembawang East Creek1Without doubt, flats in mature estates tend to have a more established resale value. But Minister for National Development, Mr. Lawrence Wong, is encouraging young families to consider flats in non-mature estates, stating that “a ‘non-mature’ estate today can become a ‘mature’ estate tomorrow” as the government is working hard to instate regional commercial hubs, transport and other public amenities into these newer towns in order to connect the residents to the workforce better.

He cites the difference of up to $100,000 between a 3-room flat in Sembawang and a similar unit in Bedok. In fact, 2-room flexi units could be priced as low at $4,000 with grants taken into account. 2-room flats are now available for senior citizens and also singles, though the latter are only allowed to apply for those in non-mature estates.

AngMoKioCourt

Photos credit: HDB

Applications for May’s launch will close next Monday on May 30.

Shunfu Ville finally sold en bloc

After many turns in the collective sale route, the Shunfu Ville estate in Bishan has finally been sold en bloc. $638 million for 358 units. As one of the few remaining HUDC (Housing and Urban Development Company) estates in Singapore, this has been a long but fruitful wait for many of its owners who will each reap an average of $1.782 million from the sale. Back in its launch days, each unit was sold at approximately $230,000.

ShunfuVilleQingjian Realty (South Pacific) Group is the proud new owner of the estate. Though the price seems steep, the potential use of the plot of land this size is even steeper. The Shunfu Ville land area is almost equivalent to that of up to 3 similar land plots offered under the the government land sales programme.

Privatised in 2013, owners of the ageing estate have found maintenance increasingly difficult and expensive and 81 per cent came to an agreement to seal the deal last Thursday. The reserve price was lowered from $688 million to $638 million.

NaturaLoftMeasuring at 408,927 sf qt, Qingjian has plans to build up to 1,000 apartment units and a number of terrace-house units on this 2.8 plot ratio land. This may mean an injection of even more private condominium units into the Bishan and Upper Thomson districts. The developer also has another project, Natura Loft, opposite Shunfu Ville.

 

Rents dip for Hong Kong’s luxury properties

The shaky global economic situation may have a wider effect than just the countries directly hit. The effects of cutbacks and job losses in the oil, gas and banking sectors have resounded worldwide. The flow of expatriates between countries have decreased and those who are still living overseas have found their housing allowances slashed considerably.

HKCEntralThis has in turn reduced the demand for property rental, mostly in the luxury sector. Besides  Singapore, Hong Kong is also feeling the effect of change. In Hong Kong, monthly rental budgets of expatriates have gone down to approximately HK$100,000 and below. Gone are the days when expats could easily afford a HK$300,000 per month rental. In fact, most are making do with HK$30,000 per month housing budget for individuals and HK$70,000 for families, which barely allows for a 550 sq ft apartment in the Central district.

Housing prices which have shot through the roof in September has since fallen 14 per cent and high-end properties at Victoria Peak have suffered the largest blow. Rental prices have fallen in some cases as much as 30 per cent. But considering the rise in property rents have risen steadily year by year for the past decade, it may not be as drastic as it seems.

HongKongPeakHowever, does this mean that smaller and middle-range private apartments are benefitting from the trickle-down effect? Are expats now looking at a whole new range of property types which could mean fatter pockets for landlords and developers willing to fit into their budget? In fact, some developers have already begin offering discounts in the form of offering a month’s rent for free.

Mixed-use development fever extends to the Philippines

Mixed-use developments have been hot properties in various Asian countries for sometime now and their popularity are extending to the city of Cebu in the Philippines.
MandaniBayPhilippines

Mandani Bay, the first mixed-use development in Cebu, hopes to bring the city the reputation of being a lifestyle destination. Even more so than it already is. For a long time now, tourists have flocked to the city for its clear waters, clean shorelines – well, the sun and the sea. The waterfront development is jointly developed by Hongkong Land and Taft Properties and will yield up to 10,000 residential suites and 240,000 square metres of retail and office spaces.

MandaniBay1Various hotspots within the Philippines have been attracting overseas investment money, either from foreigners or from monies remitted from well-educated Filipino professionals working overseas. And there is a growing demand for mid-range condominiums as The City of Mandaue, one of the 3 main cities in Metro Cebu invests in growing its IT and tourism sectors. The Cebu IT Park and Cebu Business Park for example , provide plenty of demand for not only residential but also office, commercial and retail units. Rentals of properties in and around Mandani Bay offer yields of up to 10 per cent per annum.  The population in this growing city-state is set to increase to 5 million by 2020.

With an annual GDP growth rate that is five times over the national average, Cebu’s potential for growth is not to be underestimated.

 

 

No signs of weakening China property market

Shanghai and Shenzhen – both super cities for properties. Home prices in these 2 top-tier cities have not waned despite China’s government tightening rules on the property market.

Savannah Hong KongIn April this year, home prices in Shanghai and Shenzhen continued to rise 2.3 and 3.1 per cent respectively. Though the numbers are slightly lower than March’s 3.7 and 3.6 per cent, in light of economic instability in other countries, this is a good sign. Even within China, where internal restructuring, higher global competition and weakening demand have began to put the brakes on their economy, the property sector continues to enjoy the momentum of growth.

Just over a year, home pieces in Shanghai  have risen a whooping 62.4 per cent and that in Shenzhen have grown 28 per cent. Across 70 cities in China, home prices are now 6.2 per cent higher, a further increase from the 4.9 per cent in March. Besides buying in the mainland, Chinese investors are also buying up properties in various other international cities such as Vancouver, Sydney, Melbourne, Hong Kong; and countries such as New Zealand, Malaysia, Cambodia and Thailand.

Canada HouseEven while property prices in first- and second-tier countries continue to accelerate, third-tier cities are also beginning to post positive growth after a period of declining interest and sales. Policy makers are however concerned about the excessive lending and rising debt levels and may be prompted to tighten lending rules and implement further measures.

Myanmar – Immense growth potential for property investments

While still battling a history of military rule, political censorship and restrictions, Myanmar has been gradually warming up to the rest of the world ever since its political reform in 2011 and the reception of foreign investment in 2012.

GOldenCity1

Photo credit: D3 Capital

Regional and global investors have been slowly exploring investment opportunities in the country and have found that it is a wealth of resources. Similar to China when the country first opened up, where folks had cash to spend but nowhere to spend them as it is not yet as developed as other Asian or Asean countries, the potential for growth is immense. Singaporean investors have also been seriously looking into the country for opportunities and properties have been sprouting rapidly.

D3 Capital, run by Daphne Teo, an ex-national swimmer who used to represent Singapore in her teens, has been developing mixed-used luxury project – Golden City – in Myanmar since 2014. Come 2018, the rare piece of land near the Inya LakeShwedagon Pagoda and University of Yangon, will see an amalgamation of some of the country’s tallest skyscrapers housing a hotel, serviced residences, plus offices and retail units. Consisting of ten 33-storey towers and a 6-storey block, it will also hold 100,000 sq ft of greenery and gardens and will be valued at approximately S$960 million.

CambodiaPropertyIf Cambodia and Vietnam, which have both had a head-start in the property investment market, are anything to go by, Myanmar will be a worthy contender for the fastest growing country in South-east Asia.

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 investment and London EPL football clubs

What’s the link you say? Well, apparently property buyers have been snapping up properties near their favourite European Premier League (EPL) clubs. That’s how fervent the football craze can get. But all the more cheer for landlords, property owners and those looking to invest in and benefit from a juicy piece of property.

LondonFLatThough more evident in the outlying boroughs rather than central London where property prices are high all around, even in the prime Central London areas, prices of homes near EPL clubs have risen 1 per cent. Recent studies have found that home prices around 20 of the more popular EPL clubs have grown considerably within a year. Even if your football team does not win, the yields from rents and value appreciation would be a good consolation, would it not?

For example in Tottenham, home of the Tottenham Hotspur team, values of properties around the White Hart Lane stadium have risen 18.4 per cent within 12 months ending 31st of December 2015. In East London, where West Ham United is based, prices of homes in the borough have risen 13.2 per cent. And in Watford and in Croydon, prices were up 10.6 and 9.2 per cent respectively. In Manchester, property prices rose 9.2 per cent. Not a bad way to map out investment monies and perhaps less risky than making bets on your favourite team.

ManchesterFLat

Though unlikely that property prices will fluctuate as much as the placement of the EPL teams on the leaderboard, it would be wise perhaps to keep an eye on how these numbers relate to one another. Who is the ultimate winner?