Minority owners make their case for Horizon Towers - Singapore

Minority owners make their case for Horizon Towers - Singapore

By Fiona Chan, Property Reporter

HORIZON Towers minority owners said yesterday that the Strata Titles Board (STB) was right to throw out the estate’s collective sale application over a paperwork glitch.
Mr Ramesh Kannan, who is representing some minority owners, told the High Court that rules should be followed particularly strictly, because they involved compulsory acquisitions of assets.

‘The approach must be strict compliance…when it comes to the forced acquisition of people’s homes,’ said Mr Kannan, adding that the STB had consistently advocated strict compliance in previous cases. The sellers argued on Monday that the glitch - three missing pages - was a technicality that STB could overlook.

They want the court to reverse the STB’s August decision to abort the deal. This would allow the $500 million sale to a group headed by Hotel Properties to go ahead.

But Mr Kannan and Senior Counsel K.S. Rajah, who is representing another group of minority owners, argued that the STB had no powers to disregard the missing pages.

Mr Kannan also noted that upcoming changes in legislation will give the STB the power to ignore technical irregularities, as long as no owner’s interest is prejudiced.

The introduction of this rule proves that Parliament recognises that the STB now has no such powers, he said.

Mr Kannan, Mr Rajah and Senior Counsel Michael Hwang are acting for different groups of minority owners but all argue that the STB’s decision be upheld.

But while the floor was largely given over to the minority owners’ lawyers yesterday, Senior Counsel K.Shanmugam - acting for Horizon Towers buyers - made a brief appearance.

He told Justice Choo Han Teck that his clients’ only interest was to see the sale through. If this happens, the buyers will withdraw their suit against the sellers for breach of contract, without claiming costs, he said. The buyers are claiming up to $1 billion in lost profits.

‘We are not in the business of suing,’ he added, to sneers from the public gallery, where about 40 residents of Horizon Towers were sitting.

The hearing ends today, with the sellers’ lawyer responding to yesterday’s arguments. A decision is expected from Justice Choo in about a week’s time.

Source : Straits Times - 03 Oct 2007
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Big developers lose bidding for Singapore prime Kovan plot

Big developers lose bidding for Singapore prime Kovan plot

By Fiona Chan, Property Reporter

BIG gun property developers who lined up for a prime residential site in the Kovan area were pipped in the bidding by a firm hardly anyone has heard of.
Duke Development placed the top bid of $290 million for the 190,000 sq ft site in Simon Road, trumping high-profile rivals Far East Organization, Hong Leong Holdings, Frasers Centrepoint and Allgreen Properties.

Duke is believed to be a group of private investors with a pair of top dealers as shareholders.

A company search turned up Mr Han Seng Juan and Mr David Loh as Duke shareholders. They are former executive directors at UOB Kay Hian, the brokerage arm of United Overseas Bank.

Both Mr Han and Mr Loh, who are believed to be related, also hold shares in Cybertech Communications and Healthstats International, among other companies.

Their winning bid works out to about $437 per sq ft (psf) per plot ratio, and is a ‘reasonable bid’, said CB Richard Ellis Research executive director Li Hiaw Ho.

Mr Li believes this offer can break even at about $800 psf for the finished condominium units, which are likely to sell at between $850 psf and $950 psf.

Nearby Kovan Melody has sold out all 778 units, a testament to the strong demand for homes in the area. The units are now being resold in the secondary market for more than $800 psf, said Mr Li.

He added that part of the area’s attraction are the good schools in the vicinity, such as Rosyth School and Maris Stella High School.

A condominium with about 555 units can be built on the Simon Road site, which has a maximum gross floor area of 664,337 sq ft.

Apart from homes, the plot can also host service apartments, said the Urban Redevelopment Authority.
Source : Straits Times - 03 Oct 2007
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Singapore JTC looks to build floating petrol stations to save space

Singapore JTC looks to build floating petrol stations to save space

Platform to cost at least $180m and will raise Singapore’s oil storage capacity by about 7%
By Tan Hui Yee

LAND-SCARCE Singapore is turning to ‘floating petrol kiosks’ to give a leg-up to its growing petrochemical industry.
Industrial landlord JTC Corporation is studying the best way to build a vast floating oil storage platform - about the size of four football fields - after a year-long study that ended in June found the notion technically feasible.

This platform, to be built with concrete, would cost at least $180 million and boost Singapore’s oil storage capacity of 4.6 million cubic m by about 7 per cent.

It can be moored anywhere, including off Jurong Island, where most petrochemical companies are located. It is environmentally friendly as well, as the platforms will allow sea water to flow freely underneath, limiting damage - if any - to the marine ecosystem.

The announcement was made by JTC’s assistant chief executive officer, Mr Philip Su, at the StocExpo Asia, or Storage Terminal Operators Conference and Exhibition, yesterday.

Oil traders and companies, he said, have been clamouring for more storage space even though an additional 3.5 million cubic m is being built now, he said yesterday. This includes underground rock caverns being constructed off Jurong Island.

Industry feedback suggests that Singapore is short of at least three million cubic m of oil storage space, which would require more than 100ha of land if these facilities were built the conventional way.

But demands on available land are getting greater. About 1,200ha of the 2,700ha area of Jurong Island has already been built up and the Government plans to expand the number of companies there from 94 to 150 by 2015. Meanwhile, dormitories housing 12,000 workers on the island are also in the works.

Hence the need to develop the platforms, which can save at least 15ha of land each, and store enough oil or petrochemical products to fill a large tanker. These platforms can be built within 18 to 24 months.

Mr Su said JTC is already talking to several oil trading companies which have shown strong interest in these platforms.

The Government is expected to invest more than $1 billion on the island over the next five years.

Singapore is the world’s largest oil bunkering port, as well as one of the world’s largest oil trading hubs and refining centres. Last year , its total physical trade amounted to US$300 billion (S$447.3 billion), while its refinery output hit US$31 billion.

At the same event, Mr Su gave an update on the progress of the underground rock caverns off Jurong Island. Work on the first phase of the project, which costs $700 million and can store 1.47 million cubic m of oil under the sea, began in February.

That facility, which frees up about 60ha of surface land space - bigger than the whole of Bishan Park - is expected to be completed in phases starting from 2010.

Mr Su said JTC is finalising the design for the facility and expects to call a tender for the building of the tunnels, caverns and associated facilities within the next two months.

It is also shortlisting potential operators of the facility.

Source : Straits Times - 03 Oct 2007
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Growth of the office rentals to slow

Growth of the office rentals to slow

Tenants prepared to explore lower-cost locations and alternative premises: CBRE
By ARTHUR SIM
ENOUGH is enough. Or so it seems for those having to pay high office rents.

Modest but still attractive: The indicative price for the six-storey building at 23 Middle Road is $28m
CB Richard Ellis (CBRE) executive director (office services) Moray Armstrong foresees further rent rises but reckons that the pace of increases will slow.

‘We have observed tenants’ increasing resistance to rental hikes,’ he said. ‘Occupiers are more prepared to explore lower-cost locations and alternative premises such as business parks and high-tech space.’

CBRE’s analysis of Q3 2007 data shows prime office rents averaged $12.60 psf per month, an increase of 16.7 per cent quarter on quarter (QoQ) and 82.6 per cent year on year (YoY).

Grade A office rents now average $14.90 psf per month, an increase of 13.7 per cent QoQ and 96.1 per cent YoY.

CBRE said that at end-August, full potential supply - the sum of known private sector project supply, awarded Government Land Sales sites and potential supply from expected future land sales - was 10.8 million sq ft for 2007-2012.

This reflects an increase of 147 per cent from full potential supply of 4.4 million sq ft identified two quarters ago at end-March 2007 and works out to average potential annual supply of 1.8 million sq ft for the next six years, higher than the past 10-year average supply of 1.5 million sq ft per annum.

Based on projected average annual take-up of 1.6 million sq ft for 2007-2012, CBRE forecasts relative equilibrium between supply and take-up over this period, remaining in the range of 91 to 95 per cent even if full potential supply materialises.

‘On the supply side, the government’s reaction has been measured so far, but care is required in monitoring any future change in demand for office space,’ says CBRE.

‘As such, it may be timely for all in the sector - landlords, tenants, policy-makers - to take stock of the market dynamics in setting out policy and making decisions.’

The temptation to keep pushing rents is why Colliers International expects a modest office building at 23 Middle Road to be attractive.

The indicative price for the six-storey building - which has a total gross floor area of 23,499 sq ft and a net lettable area of 17,314 sq ft - is $28 million or $1,600 psf of net lettable area.

Colliers’ executive director for investment sales Ho Eng Joo says: ‘If tenants in the CBD have to pay more than $10 psf per month they may as well consider buying their own property rather than face landlords who keep raising rents.’

Mr Ho expects accountancy and law firms may be among the bidders for the Middle Road building.

With space tight, office property also has good investment potential.

Based on average rent of $6-$8 psf per month in the Middle Road area, Mr Ho expects an investment yield of 4-5 per cent.

And with capital appreciation, gains could be much higher.

Source : Business Times - 03 Oct 2007
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Mindy Yong
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Call for more hotels rooms amid crunch

Call for more hotels rooms amid crunch

By NISHA RAMCHANDANI

WITH hotels filling up and guests having to pay more for their accommodation, there is ‘a call for more hotel rooms’ in Singapore, says a consultant. There are already 15 more hotels planned or under construction, which should help, he says.
In an interview with BT, Patrick Ford, who is president of Lodging Econometrics, an international consultancy based in the United States, said that the HotelBenchmark Survey by accountancy firm Deloitte & Touche shows that Singapore had the third highest occupancy rates in the Pacific Rim at 81.5 per cent, last year. Hong Kong was first and Melbourne second.

The half-year results for the Deloitte report puts occupancy rates for the first half of 2007 at 82.9 per cent for Singapore, a 5.3 per cent increase over the corresponding period for last year. Deloitte reported average room rates for Singapore to be about US$160, a 22.4 per cent growth from the previous year.

Revenue per available room was strong and ‘driven up by average room rates’ Deloitte said, to US$132, a 28.9 per cent rise. The strength of these figures puts Singapore ahead of other Asia Pacific markets such as Hanoi, Mumbai, Manila, Shanghai, Bangkok and Bali.

According to data from Lodging Econometrics, Singapore currently has 15 hotel projects in the pipeline - which have been formally announced in the public domain or are being actively pursued - to provide the hotel industry with more than 6,400 rooms over the next few years.
Of the 15, five are currently under construction, two are expected to start in 12 months and eight are in various stages of early planning. The 15 hotels are expected to be completed between 2007 and 2010. Two of the 15 hotels will open their doors this year - the St Regis, Singapore, being one of them.

Mr Ford said the upcoming integrated resorts, coupled with Singapore being a popular choice as a MICE destination, keeps the city as a top international market and tourist destination as well as being on the booking rotation for conferences and conventions.

‘It puts Singapore on the map as a hot destination for different reasons and different markets,’ Mr Ford said.

Propelled by the flourishing property market, future hotel developments may have to be luxury or high-end ones, so as to reap the highest possible room rates and offset the costs of development and land, Mr Ford told BT. While there will still be a demand for mid-market hotel properties, they may be pushed outside of desirable locations.
Source : Business Times - 03 Oct 2007
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Mindy Yong
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MGPA sells 12 floors of offices for quick profit intake

MGPA sells 12 floors of offices for quick profit intake

$225m sale price is 70% up from price it paid in Jan for space in Springleaf Tower
By ARTHUR SIM

TWELVE floors in Springleaf Tower that were bought in January for $134 million have been sold again for $225 million - an increase of almost 70 per cent.

Springleaf Tower: The buyer of the office space is SEB Asset Management, part of German pension fund manager SEB, which bought SIA Building in April for $525m
The seller is Macquarie Global Property Advisors (MGPA) which made headlines recently by submitting the top bid of $2.02 billion for a development site at Marina View.

The buyer of the SpringLeaf Tower space is SEB Asset Management (SAM), part of German pension fund manager SEB, which bought SIA Building from CLSA Capital Partners in April for more than $525 million.

SAM said in a statement yesterday the Springleaf Tower investment is its second in Asia for its new SEB Asian Property Fund, after it acquired an office tower in Shanghai’s Puxi district in a 50-50 joint venture with Pacific Star at the beginning of September.

In Singapore, churn in the office sector appears to be increasing.

CLSA Capital Partners, for instance, acquired the SIA Building for $344 million in June 2006 before selling it less than a year later for 50 per cent more.

MGPA acquired Temasek Tower in March for $1.04 billion. And with capital values rising, it too could sell for a quick profit.

According to a report by CB Richard Ellis (CBRE), the average capital value of prime office space was an estimated $2,900 per square foot in Q3 2007, reflecting an increase of 16 per cent quarter on quarter and 114.8 per cent year on year.

CBRE said prime office yields were 4.32 per cent - up only slightly from 4.23 per cent in Q2 2007. But that has not stopped investors buying offices.

It said the office investment market remains active, with $3.459 billion of transactions in the third quarter. Notably, a fund linked to Goldman Sachs bought Chevron House for $366.4 million or $2,780 psf of net lettable area, setting a new benchmark that exceeded the $2,650 psf that British-based property fund Develica paid for One Finlayson Green in June.

SAM expects an internal rate of return of 9 per cent per annum on its investments.
Source : Business Times - 03 Oct 2007

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What’s NEW in the REAL ESTATE Market From 1 September to 30 September

What’s NEW in the REAL ESTATE Market From 1 September to 30 September

September started tentatively with property buyers taking cover from a slew of bad news originating from the financial markets the world over. Towards the end of the month, morale boosting news started to creep in and a stock market revival has restored some of the bruised confidence. By the time of this market review, real estate agents should be busier in their work as compared to the beginning of the month. Below describes the “ebb and flow” of the real estate market in September.

(A) Local banks are reportedly tightening credit

Though one big bank openly rebuffed the accuracy of the above report, the Credit Bureau Singapore (CBS) gave a different perspective a few days later when it released its independent findings on home loans. The gist is as follows:

CBS said that its own property loan index shows a hunger for credit to finance properties under the current property boom.

The number of property owners with more than one home loan has gone up by 64% to 38,520 in June this year.

In all, average home loan application per month is around 10,000, but only around 40% to 50% of the application would be approved probably due to the ‘multiple applications’ that would not be able to qualify for a home loan easily. (13 Sept)
See other details in Annex A.

(B) Banks must spell out home loan rates upfront

From 14 September, all the 107 local and foreign banks which are members of Association of Banks in Singapore (ABS) will have to follow a set of guidelines when promoting their home loan packages. They must inform borrowers upfront of the following:

The different interest rates being charged for different home loan packages before they take up the loan offers.

The financial indicators being benchmarked against for home loan rates, such as the three-month Singapore Inter-bank Offered Rate or the Central Provident Fund rate.

The banks’ prerogative to change the board rate at any time by giving 30 days’ notice,

Letter of Offer must include the above details. (9 Sept)

(C) Mortgage growth will double

Currently, most local banks are only financing a maximum of around 80% of the value of a property, despite MAS rules allowing a higher percentage of 90% funding. This means that borrowers will have to fork out more front-end cash.

In the 11 months to March this year, mortgage growth in Singapore remained under 3% even though home sales have almost doubled over the same period of time. However, according to current official figures, home loans are up 8.1% in July from 6.9% in June. In general, banks expect mortgage growth to reach double digits by the end of the year. (5 Sept)

(D) Number of new homes to come on stream

To reassure the public that there is sufficient supply of new homes and allay fears that some prospective home buyers might be priced out of the market, the URA released statistics showing the on-coming supply of new homes up to year 2010.

The potential supplies include 2007 (3,899 units now under construction), 2008 (6,579 units - comprising 6,257 units now under construction and 322 units being planned), 2009 (15,846 units – comprising 10,229 units now under construction and 5,617 units being planned), and 2010 (16,727 units - comprising 5,284 units now under construction and 11,443 units being planned).

See other details at Annex B.

(E) Sub-sale data

According to figures released by URA, sub-sales of private homes in the Core Central Region are 19.4%, the Rest of Central Region 10.4% and the Outside Core Region (OCR) under 5%. When taken as a percentage of total new sales within the respective regions, the proportion of sub-sales was just 7% for the OCR, but 53% for the CCR and 27% for the RCR. However, readers should take the statistics with a pinch of salt as ‘flipping’ of properties is untraceable as ‘buyers’ and ‘sellers’ are doing it ‘under the radar’ where no stamp duty and legal fees payable as there is usually no formal contract on such transactions.
See more details at Annex C.

(F) Private rental index by IRAS

On the whole, the statistics reflect a bullish outlook of the real estate market. Private apartment rents in Core Central region were up by 12% - the highest among all the three regions. The other two regions also saw apartment rents going up by 10% and 9.4% respectively. (19 Sept)

See more details at Annex D.

(G) Private residential rents likely to rise by 40%

Rents of private residential properties continued their flight path in the third quarter of this year, soaring 8% to 10% above the second quarter’s 10.4% increase.

Rents in the most remote heartlands in Woodlands and Mandai, which are near the Singapore American School, clocked the highest rates in rent increases in the third quarter, surging between 25% and 30%.  From the look of it, the full-year rental growth is likely to be as high as 40%. (29 Sept)

(H) Office rents will stay high in near future

Official figures show that average monthly rent in Raffles Place is now $14.50 per square foot (psf) with the dearest office space going for $18.00 psf (A grade A office space at Republic Plaza was rented at $17.50 psf). The average rent is 11% higher than in the second quarter of 2007.

In the Orchard Road zone, monthly rental shot up by 25% compared to last quarter. Orchard Road offices are now going for an average of $10.60 psf per month. (29 Sept)

(I) More HDB resale flats sold with higher “Cash-Over-Valuation”

Over the past eight months, HDB resale transactions have edged up slowly and steadily, reaching 2,553 transactions for the whole of August; the lowest resale figure this year was 1,217 in March. Transactions picked up steam from April and have not stopped since. (15 Sept)

Price wise, HDB resale prices have shown some sign of strength over the past eight months. More than 70% of the resale flats were sold above the market valuation prices.
See more details of HDB Resale Transaction in 2007 at Annex E; and details on upward trend of HDB resale prices in two typical HDB heartland locations at Annex F.

(J) High tender prices for Government Land Sale (GLS) programme

Two events that happened between a week of each other has restored some confidence in the otherwise jittery real estate market. On 11 September, Far East Organisation paid $202.9 million or $601 psf ppr for a 99-year leasehold site at Ang Mo Kio.

The particular site has a superb location being conveniently situated next to the Ang Mo Kio MRT station, and 15 minutes away from Orchard by train. (12 Sept)

(K) Highest $2b bid for Marina View plot

A parcel of state land in Marina View behind One Shenton and The Sail @ Marina Bay condominiums attracted a historic top bid of $2.02 billion or $1,409 psf of gross floor area. Earlier that month, experts predicted that the parcel could only fetch slightly higher than $1billion, given the uncertainty of the financial market.

The winning bid was put in by Australian Macquarie Global Property Advisers (MGPA), a private equity real estate fund management firm partly owned by Australia’s Macquarie Bank Group.

The eye-popping prices in the two instances underline developer’s confidence in the Singapore economy in the near term. This might be a sign that some foreign real estate funds may channel their attention to Singapore in the near term, given the lingering uncertainties in US and Europe. (20 Sept)

(L) Total private property transactions have gone up this year

The total number of private properties sold between January and August 2007 is 24,945 units.

New Condos/apartments
Comparing this year and the same period last year developers have sold 1,591 more new condos/apartments and this represents a 36.32% growth over last year.

Resale Condos/apartments
There were 8,497 more transactions this year compared to the same time period last year and this is a 126.95% jump over last year.

New Landed homes
Developers sold fewer new landed homes so far this year compared to the same period last year where 225 new landed homes were sold. Only 116 new homes were sold during the same period this year.

Resale Landed homes
There were 1,950 more landed homes sold this year compared to the same time period last year and it was a 106.38% increase in transactions. The landed home market has improved by 83.82% over the same period last year.

Overall private home transactions
Total transactions have jumped over 125% so far this year compared to the same period last year.

(M) Prospect of landed property excellent

The upside of landed home prices in the near term is excellent. There are a number of compelling reasons for landed home prices to rise fast, including:

Limited stock - Currently, there are 68,360 landed houses in Singapore, making up only 29% of the total 233,143 private property stock.

Limited new supply - In the next five year, supply of landed homes will remain subdued with only 1,872 landed units under construction and another 2,579 landed units being planned, accounting for only 6.6% of all new supply expected from the second half of 2007 to 2011.

High rental return - Rents of landed homes have outpaced its capital values, according to URA’s rental indices for all the landed property types. In the first half of the year, rents of detached houses increased by 13%, semi-detached houses by 11.4% and terrace houses 17.3% hike in rents.

Without a doubt, landed housing will always be a coveted prize in land-scarce Singapore. (27 Sept)

(N) En bloc sellers will swamp the resale market next year

So far this year, there were over 60 en bloc transactions between January and July 2007.  The second quarter saw 34 collective sale sites sold. Altogether, a total of 2,796 units will be taken out of the market.

Judging from the time needed to obtain a Sale Order, those en bloc sale sellers are likely to receive the 95% of the sale proceeds in the first three months of next year. Even if only half of these en bloc sellers are buying a replacement home, the demand for homes should increase across the board, including HDB flats. (29 Sept)

Annex A

New home loan applications went up but took a break in August

According to the Credit Bureau (S) Pte Ltd, the number of new home loan applications surged this year. In May alone, there were 17,323 such applications.

Since the start of the market boom in 2005, there have been 10,000 new home loan applications every month, out of which an average of 4,000 applications would be approved each time.

In May, a total of 4,856 applications were approved. This was a direct result of more new home transactions.

In June, 4,794 new home loan applications were approved out of a total of 16,017 applications. The number of new home loan applications fell to 13,870 in August in tandem with the unveiling of the US sub-prime market problems in the July/August period.

Overall, property loan approvals jumped 12% in June 2007 to 50,514 compared with the same time period in 2006. (13 Sept 2007)

Annex B

Number of new homes to come on stream

Excerpt of expected supply of private homes

Annex C
Sub-sale percentage to overall sale of private residential properties

Annex D

Annex E
HDB Resale Transaction up to August 2007

Sub-total from January to August 2007 = 16,949 transactions
Sub-total from January to August 2006 = 18,763 transactions
Whole year resale transactions in 2006 were 27,705 flats.

Some of the plausible reasons to explain the growing interests in HDB resale flats include the worsening of the US sub-prime market situation and en bloc sale sellers buying into larger HDB resale flats, as more and more en bloc sale projects nearing legal completion.

Annex F
Price comparison From January 2006 to August 2007

(1) Ang Mo Kio – 3-room flats (Table A)

In August 2007, out of the 50 three-room flats sold in Ang Mo Kio estate, 28% of the transactions were done at the higher price bracket. The details are as follows:

Percentage share of flats sold (Table B)

Tampines – Executive Apartments (Table C)

Comparing the highest price in the beginning of 2006 with the highest in June 2007, the sale price of Executive Apartments in Tampines has increased by $78,000 in the highest bracket.

Singapore Real Estate - Buy , Sell , Rent ,invest ,Singapore Property

Buy, sell and rent Singapore real estate: private property, residential apartments, commercial and industrial properties. HDB flats for sale and rental. Foreign investors, buyers, tenants or relocating expats can easily find their ideal landed house, bungalow, semi-d, terrace, condominium, townhouse, private apartment, HDB, HUDC, office, shop, factory, warehouse ; land right here.

MINDY YONG
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Where has the Singapore property bull gone? – September newsletter

Where has the Singapore property bull gone? – September newsletter

The previously frantic en bloc sale market has finally ground to a halt. Between April and July, there were a total of 34 successful en bloc deals, but in August there was only one deal struck. In September, it was a complete stand-still.

The government’s supply-side measure of jacking up the development charges has worked perfectly well to douse an over-heated collective sale market. It seems that, in the next three to six months, only en bloc sale projects with superb qualities and competitive prices will have a realistic chance of finding a buyer.

In the US, a worsening housing slump and a credit crunch may land the US economy on clutches. New home sales in the US plummeted in August to the lowest ebb in seven years. It is now much harder for home owners in the US to obtain any mortgage loan that is above US$417,000. Financing for larger homes had simply dried up in the aftermath of the sub-prime crisis.

There is now an even deeper fear that businesses in the US might cut back on spending and investing and in so doing push the economy further into a recession.

Likewise in Singapore, the local banks are cutting back on home loans. They now scrutinise a borrower’s creditworthiness more closely and treat it as the number one consideration in deciding loan eligibility.

In fact, there have been 10,000 new home loan applications every month since the property boom last year, however, at this moment only an average of 4,000 applications would be approved each time. This must be interpreted as an alarm bell sounding. It means that if banks continue to be cautious, about 60% of the new condo owners will be unable to obtain financing when their new condos receive TOP next year.

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Buy, sell and rent Singapore real estate: private property, residential apartments, commercial and industrial properties. HDB flats for sale and rental. Foreign investors, buyers, tenants or relocating expats can easily find their ideal landed house, bungalow, semi-d, terrace, condominium, townhouse, private apartment, HDB, HUDC, office, shop, factory, warehouse ; land right here.

MINDY YONG
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Prices of Singapore landed properties set to roar - September newsletter

Prices of Singapore landed properties set to roar - September newsletter

With the financial market woes subsiding, the prospect of landed home sale in Singapore looks much brighter in the near term.

As it is, there will only be another new 1,872 landed units being added into the market in the next three to four years. Add that to the current 68,360 landed houses in Singapore, there would only be around 70,232 landed homes compared with the total of about 250,000 private properties in the next few years. In short, landed properties would make up only around 28% of the total private property stock.

Unlike the meteoric rise of upscale apartment prices since last year, there are still many good bargains in the landed home market in outlaying areas. The near term should see more upper-middle income earners jostling for a coveted prize of land before the bull-run sets in motion again anytime soon.

From the investment yield perspective, the current rental yield for landed homes is extremely high with some semi-detached houses asking for $8,000 a month in rent. In fact, rents for semi-detached houses have risen by 11.4% year-on-year.

Detached houses are now dearer to rent with an increase of 13% in the yearly rental index. Rents for terrace houses have gone up by 17.3% compared to last year.

The push-pull factors of limited supplies and soaring rents should heighten the demand for landed residential properties in the next few months. The current market lull should be cherished by house hunters trying to reach the star. They will do well to grab a house of their choice and not let the opportunity slip. The property bull may be roused anytime from now -  home prices are set to roar again.

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Buy, sell and rent Singapore real estate: private property, residential apartments, commercial and industrial properties. HDB flats for sale and rental. Foreign investors, buyers, tenants or relocating expats can easily find their ideal landed house, bungalow, semi-d, terrace, condominium, townhouse, private apartment, HDB, HUDC, office, shop, factory, warehouse ; land right here.

MINDY YONG
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