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29 Mar

Resale HDB units in 2011 remain competitively priced, compared to condos

iProperty iNsights arms property buyers with handy information and market outlook for year 2012

While prices of HDB flats on the resale market have risen in the past few years, they continue to be more affordable than condominiums, according to a report on property transactions in 2011 registered on iProperty.com Singapore, the country’s No. 1 property website and part of the iProperty Group.

The iProperty iNsights 2011 consumer trends report reveals pertinent information on the state of the residential property market in Singapore, highlighting essential data such as average per square foot (PSF) prices for HDB apartments and condominium units across the island.

Additional data from the popular property portal emphasizes the disparity in average PSF prices among private (non-landed) and public housing (resale flats). In general, the average PSF for HDB flats across all room types have steadily increased – yet they remain at least half as costly when compared to the average PSF of condominiums.

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“We are proud to share our latest iProperty iNsights report, which serves as an enabler for property buyers in Singapore to make informed, timely choices. We maintain an expansive network of agents and partners whom we work with closely to obtain on-the-ground information and ensure accuracy on the property data which we publish. With this handy guide, we hope to smoothen the decision making process among buyers for all their property-related needs,” said Shaun Di Gregorio, CEO of the iProperty Group.

 
Key highlights of iProperty iNsights 2011 Report

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1. Districts

The top three most popular districts, based on total unique searches, were 15 (Katong, Marine Parade, Siglap, Joo Chiat, Tanjong Rhu), 19 (Serangoon, Hougang, Punggol, Sengkang) and 9 (Orchard, Cairnhill, Killiney, River Valley) while districts 10 and 16 continued to remain popular among buyers of private properties.

Please refer to page 3 of the iProperty iNsights 2011 report.

2. Condominiums

- Condominium projects completed in the last few years in general fetched higher PSF prices, and this is even higher for city-based developments such as Icon (S$1,846) and The Sail @ Marina Bay (S$1,952).

- Projects located in the suburban areas continued to be more attractive for buyers, such as Melville Park (S$709) and Northvale (S$736).

Please refer to page 15 of the iProperty iNsights 2011 report.

3. HDB

- Based on total unique searches, the top three most popular HDB estates were Bedok, Bishan and Woodlands, while estates like Tampines and Yishun continued to remain popular among buyers of public housing.

Please refer to page 17 of the iProperty iNsights 2011 report.

4. Most popular keywords

The highest portion of visitors to iProperty searched for the keyword ‘studio’, a reflection of continued interest in compact-sized apartments. This could be linked to the higher price tags attached to apartments of higher floor area, and to investors who are looking at reaping attractive rental income.

Please refer to page 29 of the iProperty iNsights 2011 report.

Conclusion

In general, resale HDB flats remained affordable for many Singaporeans, especially when compared with more established condominiums that tend to fetch lower prices. This gap can be seen when we compare the average PSF for older condominiums, which was at least twice those of HDB flats in general.

For more information, please login and download the iProperty iNsights 2011 Report here for free.

21 Feb

iProperty.com Asia Property Market Sentiment Report 2012

In December last year, many of you participated in iProperty.com Asia Property Market Sentiment Survey, which resulted in this Report. We thank you for making this Report so great, filled with insights that we’re sure will help you make better property decisions – here and overseas.

As the first regional online property survey of its kind, the iProperty.com Asia Property Market Report comprises of 7,720 responses from website visitors and subscribers of iProperty Group networks in Singapore, Malaysia, Indonesia and Hong Kong. The survey revealed a common thread amongst property buyers throughout the region, but also key country-specific findings.

Did you know?

“85.6% of respondents in Singapore deemed affordability and
rising housing prices as the top 2 issues in the property market.”

“42.2% of Singaporean users in the survey showed interest in overseas property,
citing Malaysia and Australia as their most preferred overseas locations.”

“Over half (51.7%) of Singapore buyers has a budget of
between SGD 500,000 to SGD 1 million.”

“ Two-thirds (66.4%) felts that the Singapore property market is holding
up well despite the threat of a global recession.”

“ 58.3% agreed that the government should
step in to control COV on HDB flats.”

 

Download the full 65-page Report now.

 

18 Jan

iProperty.com Singapore Site Search Dec 2011 – Top 10 Most Searched Condos and New Developments

The list for Top Searched Keywords (Condo Name) includes all condos, both condos which have already reached TOP as well as new launches.

For the month of December 2011, Icon was clearly the most popular condo all, accounting for more than 12% of all searches. The high level of interest in Icon is likely due to its super-prime location in the middle of the CBD area, as well as its proximity to Tanjong Pagar MRT, where plots of land are usually reserved for commercial office buildings. Armies of office workers in the area also walk by the “iconic” building daily -  who although may not be able to afford the S$2,000 psf price tag of this new development, are unable to resist searching online and drooling with envy over photos of the Icon’s  top-end designer apartments.

Top Searched Keywords (Condo Name) – Dec 2011

Top 10 Most Searched New Developments – Dec 2011

Condo development names such as The Hiller and Woodhaven are likely already familiar to those of us who regularly browse through the newspapers and have come across their eye-catching advertisements featuring a glimpse into the luxurious lifestyle the privileged few can enjoy in one of their condos . These developments have been aggressively building awareness of their condo’s brand through the local media, and have been rewarded by their efforts by having their projects claim the top 5 spots in the Top 10 New Developments list. While the sales results are not fully out yet, it is likely condos ranking high on this list will perform well,  and enjoy strong showroom sales.

It is also interesting to note that many of the new developments in the top 10 lists are also located in the non-central areas – likely a reflection of overall falling sales in the core central region as a result of the additional 10% stamp duty on foreigners, as well as Singaporean HDB upgraders who are taking advantage of the wide-selection of new mass-market condos launched within their price range.

 

18 Jan

iProperty.com Singapore Site Search Dec 2011 – Top 10 Most Searched Districts and HDB Estates

Top 10 Most Searched Districts – Dec 2011

Districts 19, 15 and 10 retained their respectively positions in the top 3 spots on the Top 10 Most Searched –For Districts List in the month of December.

 

 

 

 

 

 

 

 

 

 

 

 

District 19 is of course where Punggol, the latest “talk of the town” estate in Singapore is located. Watertown, the very first condo launched in Singapore during the Chinese New Year period in 2012, attracted strong interest particularly from Singaporean buyers, for whom the latest 10% buyer stamp duty would not apply.

District 23(Bukit Batok, Choa Chu Kang, Upper Bukit Timah, Hillview Avenue) was the “most-improved” among those in the top 10, moving up an impressive 5 spots from the previous month to knock out District 9 from its 4th position. The significant increased interest in this district is very likely due to the strong interest prior to the release of the Executive Condominium (EC) at The Rainforest, near Choa Chu Kang MRT station, a development highly attractive to young couples who are unable to qualify for a HDB flat due to the $10,000 income ceiling, but who are within the $12,000 limit allowed for an EC. Strong online search interest translated directly into strong sales performance, as The Rainforest is now about 80% sold.

The launch of The Hiller in Hillview, with its proximity to the hip and trendy Rail Mall and proximity to the Bukit Timah Nature Reserve and Little Guilin (Bukit Batok Town Park) and the the upcoming Hillview MRT Station – a 3-min walk away, also contributed to the increase in searches for properties in District 23. As was the case for Watertown, a overwhelming majority buyers for The Hillier were Singaporeans.

Top 10 Most Searched HDB Estates – Dec 2011

 

 

 

 

 

 

 

 

 

 

 

 

While the majority of the online community were searching for private properties, those looking for HDB flats showed a clear preference for the mature estates of Bishan, Serangoon and Bedok, which were also the top 3 most-searched estates the previous month in November. With very few new HDB BTO flats released by HDB in these areas, HDB flat buyers had to turn to the resale market if they wanted to, for example, find a new flat close to their parents’ home in the Bishan area. New estates such as Sengkang and Punggol were conspicuously missing from the Most Searched HDB Estate list – no surprise, as an abundance of new BTO flats are released by HDB in these new estates at almost every launch, offer a more affordable, subsidized alternative for first-time flat buyers willing to wait for the 3-5 years construction period.

19 Dec

iProperty.com Singapore Site Search Nov 2011 – Top 10 Most Searched Condos and New Developments

We now take a closer look at ‘Condominium‘ as a property type, and spotlight on the Top 10 Most Searched Condos and the Top 10 Most Searched New Developments in November 2011.

In the chart for the Top 10 Most Searched Condo, we’ve upgraded the list with the latest average PSF prices so that you can compare and contrast. If you are looking to buy a condominium, it will be worthwhile to look at these charts before you make a decision – be it to live in, for rental yield or appreciation value.

Top 10 Most Searched Condominiums – Nov 2011

Icon remained the most searched condominium on iProperty.com.sg. Its median psf is S$1,841 in November 2011. The biggest climber is TreVista, moving 5 places up the chart from No. 7 to No. 2. The Sail @ Marina Bay remained steady at No. 3, with the highest average PSF price of S$2,710.  The most value-for-money, popular condo is Parc Oasis, trending at an average of S$835 psf.

In November, 1,417 condominiums and apartments were sold, and the national average price PSF was S$1,182. This can provide you with some basis to make comparisons on your property purchase.

(As cavaets may not be fully lodged at URA, the numbers above may change. Data is accurate as of December 16, 2011.)

Top 10 Most Searched New Developments – Nov 2011

The Palette, a 892-unit condominium, topped the chart in November as the most searched for new property development. It is also one of the best selling project, with 367 units sold out of the 450 units launched. Its median price is S$895 psf. (Source: URA, OrangeTee Research)

In a close 2nd is The Verv @ RV. Located on River Valley Road, its media price is S$2,098 psf from developers’ sales*.

Steady performers, Woodhaven and The Tennery, have a median price of S$1,034 psf* and S$1,246 psf* in November respectively. Notable new entries are The Hillier and Seastrand (S$952 psf* in Nov 2011).

Now, what are other important criteria when it comes to searching for your property in Singapore? Other keywords that you have been searching for include: studio, shophouse, MRT, Simei, Holland, and freehold.

*Source: URA, URA Property Market Info, StreetSine Property Analytics
*Data accurate as of December 16, 2011

16 Dec

iProperty.com Singapore Site Search Nov 2011 – Top 10 Most Searched Districts and HDB Estates

November to December 2011 has been an eventful month for the Singapore property market – increase in HDB property taxes, Additional Buyer’s Stamp Duty (ABSD) – just to name a couple of important ones.

Though we may not be able to make changes to the above, we can certainly arm you with relevant information and help you make better property decisions when buying, selling or renting your home. This is exactly what iProperty.com Singapore Monthly Site Search Report is aimed at doing.

And what’s great from this report? We’ve upgraded it by including the average PSF prices of the Top 10 Most Searched Districts, and the median resale prices and average PSF prices (all room types) of the Top 10 Most Searched HDB Estates. We hope you enjoy this report, and that it helps you make better property buying or selling decisions.

Top 10 Most Searched Districts – Nov 2011

In the month of November 2011, there were 1,662 private properties (landed and non-landed) transacted  - a 48.8% drop compared to November 2010, and a 35.0% drop compared to last month. The overall average PSF prices of private properties increased by 4.40% to S$1,116 from October’s S$1,069. This is also a decrease of 1.50% from November 2010.

The hottest district is once again District 19. For 2 consecutive months, District 19 overtook District 15. Is this an indication that the lower prices are attracting more buyers?

District 1, District 11 and District 16 dropped out of the chart, with the new entry of District 12, District 20 and District 22 in the Top 10 Most Searched Districts in Singapore.

(As cavaets may not be fully lodged at URA, the numbers above may change. Data is accurate as of December 16, 2011.)

Top 10 Most Searched HDB Estates – Nov 2011

The top 10 Most Searched HDB Estates saw the usual suspects – Bedok, Bishan, Tampines, Ang Mo Kio, Serangoon, Punggol, Woodlands and Clementi remained much sought-after areas to live in for HDB dwellers. Out of these, we can easily gather the popularity of mature estates when it comes looking for a HDB flat. Proximity to schools, MRT and amenities like market and heartland malls remain top considerations for property buyers.

There were 1,735 resale HDB flats transacted in November 2011. The average PSF prices for resale HDB have been steadily increasing in the year, reaching an average of S$430 psf for all HDB types in November 2011.

HDB also released 4,200 new HDB flats in November 2011. There will be 25,000 more new flats scheduled to be released in 2012.

*Source: URA, HDB, StreetSine Property Analytics
*Data accurate as of December 16, 2011

15 Dec

Thinking of Buying a Shoebox Unit? The Districts You Might Want to Short-List

While the term “shoebox units” was virtually unheard of even by professionals within the real estate industry as recent as 5 years ago,this term has become a part of many Singaporean’s common lingo today.

With the rapid increase in Singapore’s population from approximately 4.4 million in 2005 to more than 5.18 million today, the shoebox unit is one of the solutions to coping with the growing housing needs of a larger resident population. These units, defined by National Development Minister Kaw Boon Wan as having an area of less than 500 square feet, made up 12% of new private home sales last year. The shoebox trend is not restricted to just the private market alone – HDB has also jumped onto the bandwagon, as seen by the increased number of studio flats released, and shrinkage of floor areas for new BTO flats recently constructed.

1. An Abundance of Shoebox Units

Compared to just 7 years ago, the number of shoebox units snapped up by eager buyers increased by a mind-blowing 79 times, from just under 30 in 2004 to more than 2,390 units during the last 12 months (Oct 2010 – Oct 2011). Certain districts proved more popular than others, with District 15 (Joo Chiat, Katong, Marine Parade) taking up 20% of the share of all transactions of shoebox units. Following close behind was District 14 (Geylang, Eunos and Paya Lebar) accounting for 17% of transaction volume.

Districts with Top Share of Shoebox Transaction Volume

2. CBD Shoebox Units Command the Highest PSF

Given the abundance of shoebox units on the market, one question remains: How does a prospective buyer look out for the “best deals”, or units which would enjoy strong appreciation in future? When we took a closer look at the movement of transacted shoebox unit, what stood out the most was that not all shoebox units are created equal.

Districts with Shoebox PSF Greater than $1,000

Only 13 districts in Singapore were able to hit the $1,000 PSF mark, with District 1 (Marina Bay and Raffles Place) commanding the highest average transacted PSF at $1,923. District 9 came in a close second, with an average PSF of $1,837. It should be noted that there is a sharp drop in the PSF which other districts other than District 1 and 9 are able to command, as the next highest PSF is almost 10% less than that of District 1 and 9.

Districts 21 (Ulu Pandan and Clementi) fetched one of the lowest average PSF, at $618. Although these 2 areas are generally considered desirable by many Singaporeans, the lower PSFs may reflect a preference for bigger family-sized flats rather than shoebox units in these suburban areas.

3. Up & Coming Shoebox Areas To Watch

While shoebox units in the CBD area are well ahead of the pack, a number of up and coming neighborhoods are showing their potential for steady appreciation down the road. District 20 (Ang Mo Kio, Bishan and Thomson) fetched an average PSF of $820, which is approximately 30% lower than that of District 13 (Macpherson and Potong Pasir). Given the strong appeal of areas close to town such as Ang Mo Kio, the PSF of shoebox units in these estates may well rise in the near future.

4. Future Supply & Demand for Shoebox Units?

So what is the outlook on the future of shoebox units in Singapore? For sure, the Singapore demographic trends of a rapidly aging population, combined with a lower birth rate, do point the way toward smaller household sizes in the future. In addition, given the URA’s announcements on the master plan to increase the country’s population to 6.5 million by 2020, it may be likely that continuing higher immigration rates will fuel the move toward smaller units becoming the norm – rather than the exception. Developers, of course, are one step ahead, with many already choosing to release higher percentages of shoebox units in recent launches, hence reaping the attractive profit margins (as much as 20 – 30% higher) from the higher PSFs that shoebox units currently can command.

While most of us would enjoy a larger living space, it looks like the trend of shoebox units is set to continue. The question then remains: Is a Shoebox Unit a good investment? Not all shoebox units are created equal, and investors would be well-advised to carefully examine the past movement of shoebox units transacted prices before buying.

9 Dec

The Curious Case of Bedok: Are We Paying More for Less, and Is This A Sign of Things to Come?

Bedok, a heartland estate on the Eastern side of Singapore, is currently a hot favorite among property buyers, as demonstrated by the long queues at the most recent Bedok Residences launch. While Bedok is still not yet in the leagues of top prime locations such as Bukit Timah and Bishan, the estate located on the eastern side of Singapore is proving to be a force to be reckoned with, given its ability to command strong consumer demand amid the news of a pending economic downturn. With these factors at play, could it be the case that Bedok’s housing prices are still currently undervalued?

1. Is Bedok Fast Becoming an “Elite” Town?

It is common knowledge that HDB home prices in a neighborhood can rise for a number of reasons – the building of a new MRT station, new shopping center, or even a change in perception of the “prestige” accorded to those living in the neighborhood. Often flats command a higher price because of it is considered to be an “upper-class” neighborhood.

Although Bedok may still be regarded by many as a HDB heartland for the middle-class, public housing buyers seem to be moving away from HDB flats in Bedok – a possible result of higher asking prices from Bedok flat owners, and their willingness and ability to “hold” for a longer period until they can get a good price. The total number of HDB flats sold in Bedok has been on the decline, falling more than 32% during the period from Feb 2010 to Feb 2011:

 

Reflecting the changing landscape and preference of private home buyers for flats in the Bedok area, the drop in HDB transactions in Bedok is accompanied with a sharp increase in the number of condo transactions in the area, rising more than from 31 from a year ago to 137 by February 2011.

2. A Look at the Numbers

Although the number of HDB flats sold in Bedok have dropped dramatically over the past year, buyers of flats in this estate are paying significantly higher prices as compared to a year ago. Both the lowest and highest transacted HDB prices in Bedok for the same period were accompanied by substantial YOY (year-over-year) price increases:

 

The HDB flat in Bedok with the lowest transacted price in Feb 2011 was $228,000, reflecting a 8.6% appreciation from the previous year. On the other end of the spectrum, the HDB flat in the same estate with the highest transacted price showed a 15.6% YOY appreciation, up from $552,000 to $638,000, with both demonstrating substantial price appreciation.

3. Paying More for Less?

As expected, the rise in Bedok’s HDB flat prices were accompanied by higher PSFs, both on the low as well as higher end. PSFs on the low-end increased 22.4% YOY from $254 a year ago to $311 in Feb 2011. On the other hand, in PSF for Bedok HDB flats on the higher end showed a modest increase of 1.41%, reflecting the trend of higher PSF prices for smaller flats.

4. How Bedok Fits into the Overall Housing Picture

As many locals still aspire to the increasingly elusive Singapore Dream of owning a condo, the increased demand for smaller units even in heartland estates such as Bedok seem to reflect the unwillingness of many to let go of the Dream, and living in a smaller suburban condo may be an acceptable compromise for those belonging to this group. As average wages have not risen as fast as property prices in Singapore, buyers still have to look for a property within their means, leaving a smaller flat as the only solution. The lower condo management fees for smaller units may also make these units seem more value for money, as they also carry lower monthly fixed costs.

However, buyers of smaller units, both HDB and condo, should be reminded that smaller living spaces have important implications down the road. Young couples may find the limited space may deter their plans for multiple children down the road, and reduce the quality of life for those who value having their own personal space. Additional costs, such as paying for self-storage facilities, may prove to be unforeseen expenses that buyers of small units may not have initially anticipated.

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