Housing Market Singapore

Housing Market Singapore

After announcement of anti-speculation measures to cool the property prices down in Singapore it was expected that the prices would remain affordable for the middle and low income class. The government yet again intervened in the real estate market to ensure the implementation of the rules announced. Earlier in Feb this year government took certain corrective measures to have the market stabilized. The government’s interventions in the real estate business have received a mix response from different quarters.

It is said that if the official involvement continues it badly affects the growth of any market as the people will be unsure of what the government wants and what may be there the next day. Contrary to these views the other side takes the government involvement in a positive sense. This is being viewed as the government’s resolve and political commitment to ensure the implementation of the corrective measures announced on Aug 30. The government is actually in pursuance of its aim to bring the property prices to realistic and bearable levels. The price should remain affordable to all the classes of the society.
In fact there are two most prominent factors in driving the high prices of the property in the region especially in China, Hong Kong and Singapore. One being the actual economic growth rate and the second could be the temporary hype due to investments by the investors, builders and the buyers.

An important question arises that how common people are tempted to invest in the real estate business in Singapore. It has a simple answer that the returns being paid by the banks are low once compared with the dividends being earned by investment in the real estate business. That is the one of the main causes of this ever growing price hike trends in housing and other property related businesses.

The property prices are said to be highly unpredictable and the government’s time and again intervention is indicative of the sincere efforts to cool the prices down.
The funds keep flowing in the market. One source is even said to have been the government’s permission to divert some amount of the provident funds into the private businesses. Even after the retirement people tend to invest their hard earned money into the real estate for living a comfortable life. This practice is not free from the dangers of collapse of the market thereby risking the entire investment in a matter of days. It is advised by the experts on real estate business to refrain from such like short term investments.

Year 1997 witnessed the slump in real estate prices. Yet again it could go to the new heights leaving the 1996 prices far behind. Recent down trend of the property business in US has been critically viewed by the experts to compare with the other markets around the globe. Once the market prices are dropped the house owners have no option for selling their home and go for better job opportunities in other cities.

Besides taking remedial measures it remains the government’s sole responsibility to ensure availability of cost effective business opportunities to all classes of the society.

Buy Sell Rent invest In Singapore Property Real Estate

Mindy Yong

( +65 ) 91002985

Mindy@MindyYong.com

www.hotvictory.com

www.property-elite.com

Fall In Transactions »« Private Housing Projects Stay Calm

Private Housing Projects Stay Calm

Private Housing Projects Stay Calm

Government has taken very strict measures to control the speculation practices in in the real estate business in order to ensure affordable prices to all the citizens in such a way that the investment in the business remains secured with no prejudice to the national economy.

According to the policy announced by the Government on August 30, buyers of HDB flats will not be able to hold other properties i.e. private or public. This equal treatment plan will be applicable hereafter. The announcement of penalty will help the board to enforce the cooling measures announced by the government.

The important part of this announcement says that the buyers of HDB flats will have to certify that the property owned by them abroad is also disposed after the purchase of non-subsidized unit within the period announced by the board that is 6 months. However such buyers will be able to buy private lands after completion of the five years period. In that case they will be required to declare their intent for purchase of private property in the application.

But it seems that even these Government measures are not casting any fruitful effect on property transaction. NUS (National University of Singapore) have reported that non-landed property prices have continued to stay somewhat stabilized in August in contrast to the prices during last few months. The prices in July and August despite the government’s efforts have shown a minimal change. The overall input of the money into the real estate business has not much changed towards the either side.

Market variations have been reported to stay in a stabilized region of 10% approximately. The 2007 slump prices were raised to an unbearable level of 13%. Now the property sales indexes have shown the almost unhanged behavior to preclude any chance of slump again. The question of how the market prices have taken boom have increased in the past can be attributed by the speculations on the housing projects in the public as well as government sectors.

Government has tried three times during the year to bring the prices down to bearable limits have not been fruitful so far. it is said that the political resolve being shown the government has been a clear cut indication that whatever it takes the prices would be brought down to lower levels soon. In the contemporary world, any government‘s intervening so much in the business ruins the entire business activity.

Major market players are observing the trends very critically. The effects of the Aug30 anti-speculation measures have not been ascertained as the government has not yet announced the fresh prices of the private or the HDB units for resale. On the hand the private housing projects have experienced a very good response from the buyers. The owners of the projects have not given any sale record of the recent projects, the sources have revealed.

Buy Sell Rent invest In Singapore Property Real Estate

Mindy Yong

( +65 ) 91002985

Mindy@MindyYong.com

www.hotvictory.com

www.property-elite.com

Housing Market Singapore »« Which Way The Property Headed ?

Which Way The Property Headed ?

Which Way The Property Headed ?

We had seen earlier that property sales had started to shoot up after the Ghost Month ended and the property cooling measures had been imposed on Aug 30. It looked like the people of Singapore are not affected by cultural taboos any more like the Ghost Month. They had proved to be more practical thinkers than spiritualistic; however what did take more effect was the property cooling measures that the government had implemented over the property market.

The Property cooling measures were taken to take a step against the price surge in properties and it appeared that either the properties were aimed only for the niche’ class or that people over extended their resources to fulfill their dream of buying homes. Therefore measures were taken so that the prices don’t go up unreasonably high. Besides the high-mounting prices these measures also made it tough to get unnecessary home loans by giving out a lesser percentage of loans and increasing the cash down payment on leasing homes.

This did make all the difference since a sudden halt in transactions had been seen. However we did witness some activity at the Hari Raya weekend most of which took place at the NV Residences at Pasir Ris. A residential site for Condominiums sold out around 250 of its 300 put forth for sale in a showcase flat in its initial go for sales. They had put it up for an average price of $ 830 which proved to be quite attractive to the potential buyers and investors which led to the developers even raising their average price a little bit.

However since then though the NV Residences had managed to sell more housing units bringing a gross total of about 350 out of the 380 units put forth, the transactions were a little less as compared to earlier. And it seems to the property analysts that the property cooling measures might in fact take its toll in the end. The property market has started to look as if it’s going in to a slumber.

The government had hoped that their measures taken will indeed provoke the developers to negotiate with their prices a little bit, nonetheless we have seen no change and it looks like the builders are hopeful indeed that the market will turn up. So far a change in the scenario has not been reported.

A little activity has been seen here and there a little bit. The Overseas Union Enterprise situated at the Leonie Hill Road could not provide an update in numbers about their sales, although the project of the 99-year leasehold ‘Twin Peaks’ which has 462 units, was just launched around a week ago.

Investment analysts say that the prices of freehold condo prices have seen a dip but the price level is still higher than the previous years’ records. The landed prices outside the prime districts have even been raised a little bit in the hope that the home seekers might turn their gaze this way after being disappointed from other major developed districts.
The property market has always been very un predictable; and it is still too early to decide which way it is headed but it has slowed down for the moment.

Buy Sell Rent invest In Singapore Property Real Estate

Mindy Yong

( +65 ) 91002985

Mindy@MindyYong.com

www.hotvictory.com

www.property-elite.com

Private Housing Projects Stay Calm »« Fewer Investors Get PR status in Singapore; As the Government toughens PR criteria

Fewer Investors Get PR status in Singapore; As the Government toughens PR criteria

Fewer Investors Get PR status in Singapore; As the Government toughens PR criteria

The Government introduced GIP scheme for foreigners to boost population and investment .The initiative of GIP scheme was to bring more investment in Singapore. Singapore ranked as 2nd, after Switzerland in private wealth manager. Singapore Economical Board launched a new investor’s scheme in 2004, which offers four different categories for foreign investors. These categories includes,

1- Permanent resident
2- Multiple journey visa
3- Social visit pass
4- Enter pass

Gip scheme worked as a gateway and allow 4600 foreigner resident aligns. According to permanent
Resident scheme any investor can qualify if;

- Invest at least S$1 million in a new business start-up or expansion of an existing business operation or
- Invest at least $1.5 million in a new business startup, expansion of an existing operation, approved Singapore-incorporated venture capital fund or Singapore-incorporated foundation or trust that focuses on economic development or
- invest at least $2 million in a new business startup, expansion of an existing operation, approved Singapore-incorporated venture capital fund or Singapore-incorporated foundation or trust that focuses on economic development. Residential property can be purchased with not more than 50% of amount.

Under this scheme spouse and children under 21 years, as well a parent can also be applied by Main applicant.

It was estimated in June 2009 that the number of permanent resident reached at 55300 from total population of 4.9 million. Now as the conditions of World changing very rapidly, Singapore government took some initiative to tighten up PR scheme, to set up fine tune criteria for investors , who are more from high calibre ,and contribute in Singapore’s economy positively.
SEDB amended PR scheme, and now following amends will effect from 1 January 2011, the above investment options will no longer be available and new two options are;

- Option 1: Invest at least S$2.5 million in a new business start-up or expansion of an existing business operation.
- Option 2:: Invest at least S$2.5 million in a GIP-approved fund.
Now according to new amendments few more things contribute to get PR status like
- good track record of business
- Credible business proposal or plan.
- Entrepreneur background-(S$10million in the most recent year; and $10million on an average for each of the last three years.

It is required to submit financial statements of company for the last three years. If having more than one business, indicate the business having best turn over to meet the criteria.
In spite of money matters few more amendments will be proposed like; the laws for spouse and children under 21 yeas remains the same, but now parents and parents –in-laws are not eligible for apply under main applicant. They can apply for 5 years Long Term Social Visit Pass (LTSVP), which is renewable.

In previous years it was allowed to add up the cost of property , that been bought in Singapore like private home , but now from 1 January 2011, the investment doesn’t count the cost of private home or property.

Singapore government tightens up PR policy just to refine investors and it will also make Singapore in high ranked and difficult target.

Buy Sell Rent invest In Singapore Property Real Estate

Mindy Yong

( +65 ) 91002985

Mindy@MindyYong.com

www.hotvictory.com

www.property-elite.com

Which Way The Property Headed ? »« Vacanza @ East Launches freehold condo in the Kembangan

Vacanza @ East Launches freehold condo in the Kembangan

Vacanza @ East Launches freehold condo in the Kembangan

Vacanza @ East, an upcoming freehold condo in the Kembangan area launches its preview. The project is a joint venture of a Malaysian firm Sunway Group and the local Hui Hup Reality. It is 12 storied projects comprising a total of seven blocks. Out of total 473 planned units, 141 units of two blocks are being released for sale. The condo offers multiple options to choose from, which include one to four bedrooms apartments and the penthouses. Majority of the apartments comprise 2 bedrooms and a study room, whereas, three bedroom apartments are second to follow.

Apart from this project, a number of other developers put up their projects for preview during last few weeks. These include:

• Jupiter 18 at Lorong 102 Changi by the Roxi-Pacific Group.
• NV Residences in Pasir Ris by City Developments.

The Jupiter 18 project has sold almost 70 percent of the units which range from a unit of 1 bed (388 square feet) to two bed penthouses (1,119 Square feet) with an average price of about $1,100 per square feet. Hence, the price of single bed one unit comes out to be a little more than $500,000. The NV Residences project of City Developments have also witnessed the sale of 35 more units thereby taking the sales total to 335 out of 380 units made available for sale. The project comprises a total of 642 units to be developed.

The average increase in a 99 year lease hold developments on September 8witnessed an increase of 1-2 percent. The price tag remained around a figure of $830 per squar feet. During the period under review, the Far East Organization sold a total of 23 residential units in the last week, which is quite less as compared to the figure of 32 of the last week. These sold units were located at the under mentioned project localities:

• Floridian
• Waterfront Key
• Waterfront Gold
• The Greenwood
• Hill View Regency
• The Shore Residences
• Centro Residences
• The Greenwich

The price increase of 2 percent has been acknowledged by DTZ Research in the capital value of 99 years leasehold apartments and condo in the re-sale market on quarterly basis in the 3rd quarter. The prices came around to $660 per square feet. This increase is 100% lesser as compared to that of the 2nd quarter, which was 4 percent. Same trend was also witnessed in the luxury condos. The sale of these residential units grew by only 1.6 percent and remained close to $2,630 per square feet in the current quarter.

Same trend has also been witnessed in the landed segments in the important districts 9, 10 and 11. The prices have managed an increase of 2 percent only in quarter on quarter basis as compared to the increase of 3.3 percent in the 2nd quarter.

The experts are of the opinion that this current slow growth of prices is likely to come to a halt for the last quarter of the year. The cooling measures initiated by the government to keep residential unit prices under check are taking rapid effects and as a result the sales volume are expected to remain lower, which will ask the developers to lower the prices for potential buyers.

Buy Sell Rent invest In Singapore Property Real Estate

Mindy Yong

( +65 ) 91002985

Mindy@MindyYong.com

www.hotvictory.com

www.property-elite.com

Fewer Investors Get PR status in Singapore; As the Government toughens PR criteria »« Tender Draws only 4 Bidders for Sale of Executive Condo Site in Punggol

Tender Draws only 4 Bidders for Sale of Executive Condo Site in Punggol

Tender Draws only 4 Bidders for Sale of Executive Condo Site in Punggol

The global economic recession and the measures initiated by the Singapore government to keep the housing sector prices under check seem to have affected the bidding process for the sale of a state owned piece of land. The executive condominium site in Punggol which was being offered for a lease of 99 years, managed to attract only 4 bidders at the close of the tender. This lack of competition clearly signals out the cautious approach of the investors in a sector which is undergoing strict government policies.

Out of the four bidders Qingdao Corporation’s bid of $136.2 million was a mere 2.2 percent higher than the nearest competitor which quoted a price tag of $133.2 million. The lowest quoted price amongst the four bidders was $103.4 million.

Chinese Qindao Corporation was the highest bidder with $136.2 million. It comes out to be $237per square foot. The gross total area of the site is 574,578 square feet. The price offered by the Chinese group is the lowest amongst the top bids for the purpose in entire year and at the same time; this tender has drawn lowest number of bidders for any tender during the year. Some analysts do consider these bids as modest considering the location and less civic amenities of the site.

This trend reflects the selective approach of the investors. The real estate developers, apart from present policies, are also paying greater heed to the location as well as the other sites which are coming up in due course of time.

While calculating in terms of construction cost, site even if purchased at the bided rate of $136.2 million, a completed unit will cost around $600 per square foot. This expected price tag is a shade higher from the Park Green, River vale and the Florida, which revolves around $550-$650 per square foot during the last quarter.

A sharp decline in the bid prices have also been witnessed during this quarter. In the 2nd quarter, a $223.7 million were offered by Choice Homes and Chip Eng Seng Corporation jointly. That bid was almost 30 percent higher than the present price tag offered by the Chinese group.
The experts are also viewing these variations in the bids as the success story of government policies, which are aimed at providing cheap residences to the first time buyers. The process though is facilitating the common man interested in purchase of private property, but is affecting the business activity, particularly the real estate industry. The choosy attitude of the investors may cost some negative effects on the economy.

Now, it is to be witnessed that whether this ongoing process will lead to a lower price of houses in the coming year or the developers will be able to yield better profits by increasing the price tags. This primarily will depend whether the same policies will be pursued at that time and the economic climate will remain the same or it will worsen. It will be a real test of nerves for the government policy makers that whether to stick with these or allow some leverages to the developers / investors.

Buy Sell Rent invest In Singapore Property Real Estate

Mindy Yong

( +65 ) 91002985

Mindy@MindyYong.com

www.hotvictory.com

www.property-elite.com

Vacanza @ East Launches freehold condo in the Kembangan »« Slow Down in Sale of Property Units

Slow Down in Sale of Property Units

Slow Down in Sale of Property Units

Singapore, although is witnessing enhanced economic activity, at the same time the real estate business in general and residential property in particular has faced certain declines. The sale activity in real estate business in the quarter ending September 2010 has witnessed a decline of around 20 percent. During the period under review approximately 3300 units have been sold as compared to 4,380 units in first quarter and 4,033 units in the second. The figures are not painting a rosy picture at this point in time.

The present decline is said to hit the market due to certain cooling measures initiated by the Singapore government. These measures were originally aimed to keep a vigil over the prices of the property. However, these had a negative impact on the sale of these units, which was more evident particularly in the month of September. Amongst the certain possible reasons of this reduced activity, the most believed one is that key players of the real estate industry are consuming a lot of time to coop up with the measures initiated by the government.

Although the business activity in this field was reduced, however, the ideally located projects at popular sites and the ones with lesser budget i.e. small-format units remained most popular with the buyers and did very good business. A number of projects with the above characteristics sold out their complete units. These include:

- The Scala – 468 units
- 368 Thomson – 157 units
- Terrene – 172 units
- Haig 162 – 99 units (small-format projects)
- Dorsett Residences – 68 units (small-format projects)

Apart from the reduced sales activity, a number of well reputed projects managed to set new bench mark prices. These projects included Suburban 99 years leasehold condominiums with a price tag of S $1,095 per square feet and the Greenwich at Seletar road with a price of S $830 per square feet.

Amidst the reduced sale activity of residential units, the activity to acquire land for future sites by the developers continued. During the quarter under review more than 10 new sites have been acquired by the developers from the private sector. Some of the prominent deals in this context are:

- Goodrich Park at a price of S $86 million.
- Meng Gardens at a price of S $137 million.

Apart from the purchases from private sector a number of sites were also purchased from the government including one commercial-residential site. It is expected by the CBRE that the developers will continue exploring the market for new purchase options but they are likely to be less buoyant in future bids.

Considering the present trend of the market, it is being expected that residential sector may continue following the same trend of decline in the 4th quarter of this year and the total volume of the sales is expected to be around 2,000 units.
The sale purchase activity is continuing despite a slump being faced these days. A number of new projects are in the final stages for being launched in the market. These projects include:

- Vacanza
- Esparina Residences
- The Canopy

The residential units sale activity though has slowed down a little, it is expected that these activities will soon pick up the pace. At the same time the reduced activity is also affording opportunity to first time buyers to look for new houses.

Buy Sell Rent invest In Singapore Property Real Estate

Mindy Yong

( +65 ) 91002985

Mindy@MindyYong.com

www.hotvictory.com

www.property-elite.com

Tender Draws only 4 Bidders for Sale of Executive Condo Site in Punggol »« HDB new ready made solutions to home seekers