Punggol Central site gets top bid of $206.2m from Wee Hur

Punggol Central site gets top bid of $206.2m from Wee Hur

Posted: 15 December 2011 2140 hrs

SINGAPORE : A Government Land Sales site in Punggol has received a top bid of $206.2 million.

The public tender closed on Thursday with 13 bids received.

Wee Hur Development is the top bidder for the Punggol Central site.

Opal Star put in a bid of $200.88 million and Lum Chang Building Contractors, $198.42 million.

This is the first condominium site tender to close since the latest property cooling measures were announced on 7th December.

Nicholas Mak of SLP International Property Consultants notes that Wee Hur’s bid is 13.2 percent lower than a nearby sold in 2010.

He says the bid reflects an increased level of caution, mainly due to the perception of higher risk in 2012.

- CNA/ch

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Home prices rise in 2011 despite cooling measures »« Government’s cooling measures dampen property auction sales

Government’s cooling measures dampen property auction sales

Government’s cooling measures dampen property auction sales

By Millet Enriquez | Posted: 16 December 2011 2204 hrs

SINGAPORE : The government’s property cooling measures have dampened the performance of auctioned properties in 2011.

Property consulting firm Colliers International said that out of 542 properties put up for auction this year, only 46 were sold.

These raked in S$95.62 million in sales value.

But it is much lower than the S$223.9 million achieved from the sale of 71 properties in 2010.

This year’s figure is also the lowest since 2008 when total sales value was at S$83.67 million.

Ms Grace Ng, deputy managing director of Colliers International, said: “The fall in both volume and value of sales at property auctions was in part the result of the Eurozone crisis and the ensuing volatile stock market, which rocked investors’ sentiments – leaving buyers with less bullish bids for properties put up for sale since August 2011.”

Sellers’ asking prices have also remained high and this stand-off has led sellers to lease out their properties instead.

Buyers, meanwhile, have turned their sights to shops and shophouses, which offer better yield of four to six per cent, compared to two to three per cent for residential properties, said Ms Ng.

This year, auctioned retail properties contributed 39.7 per cent to the total sale value while residential properties comprised 28.4 per cent.

On the industrial property front, around 13 were sold to hit total sales of S$14.18 million.

This is about 37.3 per cent higher than the S$10.33 million for 12 industrial properties sold a year ago when demand for smaller strata-titled units was strong.

Overall, Colliers says sales value for the auction market may also continue to fall in 2012 and may come close to the level it reached during the 2008 global financial crisis.

The firm warns that some industrial properties may even be put up for sale as small businesses face a tougher environment ahead.

Still, the low interest rate and high liquidity environment will continue to prop up the property auction market.

Colliers also sees healthy demand for landed residential properties and old apartments in secondary markets.

But with foreigners kept at bay by the government’s latest move on stamp duties, sales of residential properties may be affected.

- CNA/ch

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Punggol Central site gets top bid of $206.2m from Wee Hur »« Analysts expect property prices to soften in 2012

Analysts expect property prices to soften in 2012

Analysts expect property prices to soften in 2012

By Wong Siew Ying | Posted: 14 December 2011 1949 hrs

SINGAPORE : The Singapore private residential property market was hit with two rounds of cooling measures in 2011 – moves widely described by analysts as harsh.

Coupled with an expected slowdown in the global economy, home-buying decisions may stall in 2012.

And developers may also roll out more incentives to prop up sales.

Despite the uncertain economic outlook in 2011, home-buying interest remained healthy judging by the long queues at recent property launches.

Analysts expect new private homes sales to hit a total of 15,000 to 16,000 units this year, compared to nearly 16,300 units sold in 2010.

Next year, crowds at property launches could get thinner as weak economic sentiment undermines the confidence people have in keeping their jobs.

Sales volume for 2012 is likely to dip further to under 14,000 units for the whole year.

Dr Chua Yang Liang, Research Head, Jones Lang LaSalle, said: “If the transaction volumes were to declined and sustained into 2012, then prices are expected to be affected. From our forecast we think possibly between 10 to 15 percent on the downside.”

Analysts say there is no chance of recovery for high-end property next year, with prices likely to slide 20 per cent.

The sale of high-end units was already lacklustre before the government imposed an Additional Buyers’ Stamp duty in December, which will further dampen demand from foreigners.

Market watchers expect some diversion of investor interest from residential, to other real estate including office and strata industrial properties.

Meanwhile, the cheaper home loans and genuine latent occupier demand are expected to continue to drive the mass market home segment.

However, prices for such homes could see a downward correction of about 10 per cent next year

To mitigate the impact of the cooling measures, experts say developers are likely to dangle a carrot in front of home buyers.

Chia Siew Chuin, Director, Research & Advisory, Colliers International, said: “They may have to even align their prices to move the sales or even look at incentives, soft sale kind of measures, probably extending rebates in the sense of discounts or even absorbing stamp duty on behalf of buyers or extending other kinds of incentives not only to buyers but also to agents to help them move sales.”

Developers will also continue to launch new projects, especially those in the suburban areas.

Donald Han, Vice Chairman, Cushman & Wakefied, said: “We will continue to see more launches coming up for mass market, mainly because the government sales of sites that have been launched in the last 24 months…a record number of over 20 sites will have to come into the market. They (the developers) have to do it now as these are on 99-year leases, unlike the high-end or mid-end projects which are traditionally freehold projects having a longer tenure life.”

Analysts say developers will also be more measured in their land bids next year, and prices for sites that are less attractive could dip by some 10 to 12 per cent.

- CNA/ch

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Government’s cooling measures dampen property auction sales »« Sing Holdings buys Robin Road site for $52m in collective sale

Sing Holdings buys Robin Road site for $52m in collective sale

Sing Holdings buys Robin Road site for $52m in collective sale

By Millet Enriquez | Posted: 14 December 2011 2038 hrs

SINGAPORE : The collective sale of a 16-unit apartment located at Robin Road has gone through for $52 million, says property consulting firm Credo Real Estate.

The winning bid came from Sing Holdings, which vied for the two 4-storey block apartment that forms part of four adjoining properties.

Ms Yong Choon Fah, Executive Director of Credo Real Estate, said: “More than 80 per cent of the owners at 2 to 8 Robin Road have consented to Sing Holdings’ offer of $52 million, which translates to $1,462 psf per plot ratio based on an allowable plot ratio of 1.54, including balconies.”

Ms Yong added “Development charge is not payable for the 10 per cent balconies Gross Floor Area space allowed.”

Sing Holdings had previously won the tender for two other adjoining developments: Robin Court for $77.33 million and Robin Star for $47 million via by private treaty.

Combined, the site can be turned into a joint condominium development of up to five storeys.

The latest en bloc site measures 23,084 sq ft, and together, Sing Holdings will have a total land area of 87,963 sq ft.

- CNA/ch

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Analysts expect property prices to soften in 2012 »« Three more sites for housing

Three more sites for housing

Three more sites for housing

by Avelyn Ng 04:45 AM Nov 30, 2011

SINGAPORE – The Government has put more land on the market, releasing three new sites for private housing that are expected to yield about 1,830 homes.

The 99-year leasehold sites – at Mount Vernon Road, Jalan Lempeng and Kovan Road/Simon Road – are put up for sale by public tender under the Confirmed List of the 2nd half 2011 Government Land Sales (GLS) Programme, the Urban Redevelopment Authority (URA) and Housing Development Board (HDB) said yesterday. They will add to the sites that have been launched under the GLS Programme this year which is expected to yield 14,945 units.

The 2.1 hectare land parcel at Mount Vernon Road is near Bartley MRT Station and can be developed into 785 housing units. The 2.4 ha site at Jalan Lempeng is near Clementi Town Centre and can yield about 685 units while the 1.7 ha plot at Kovan Road / Simon Road can yield about 360 units.

The tenders for the three sites will close on Jan 10, Jan 12 and Jan 18, respectively.

Property consultancy ERA said strong bidding would be likely for the sites at Jalan Lempeng and Kovan/Simon roads as they are located within developed residential areas that are in close proximity to amenities. The rapid sales at Trivelis also indicate there is a strong demand for mass market housing in Clementi as there is a limited supply of new apartments in the mature estate, ERA added.

The Bartley Road site is much nearer to industrial estates compared to the other two, ERA noted, saying it would likely appeal only to employees who work within the vicinity. The lack of shopping facilities is also a setback, it said. Avelyn Ng

Source : TODAYonline – MediaCorp Press Ltd’s copyright

Sing Holdings buys Robin Road site for $52m in collective sale »« New property curbs seen to cool prices

New property curbs seen to cool prices

New property curbs seen to cool prices

By Joanne Chan | Posted: 08 December 2011 1241 hrs

SINGAPORE : The Singapore property market is bracing for a slowdown, with experts predicting a steep drop in transaction volume and prices over the next few months.

This comes after tougher residential property measures kicked in on Thursday, hours after they were announced on Wednesday night.

Under the new measures, foreigners and companies must pay an additional stamp duty of 10 percent of the value of residential property purchases in Singapore.

Permanent residents who buy a second property and citizens who buy three or more properties will pay an extra 3 percent.

The new stamp duty is on top of the prevailing fees of between one and three per cent.

Property buyers hit hardest by the new measure would be foreigners like Norman Lu.

The 34-year-old healthcare consultant arrived in Singapore a year ago to work in a multinational company.

Mr Lu is renting a place, but in the last three months he has been looking to buy a condominium in Paya Lebar or Braddell. However the new rules have put a stop to such plans.

He said: “We are very disappointed. Even though we are foreigners, we have been working in Singapore for a year, we also contribute to this country. So as a foreigner, we feel that the government does not welcome us.”

Mr Lu said he was on the verge of closing a deal, but will need to evaluate his options now.

He said: “(There is) 80 per cent (chance that) I will not buy now. I will wait for one year, then I can get PR (permanent resident status) then I will buy a private condo or buy an HDB flat.”

His other options include leaving Singapore, “because I can easily find another job opportunity in another country” and “if property owners drop the price by 10 to 15 per cent, then I will buy a condo immediately because I want to stay in my own property.”

Market watchers expect transaction volumes in the core region like Orchard Road and Bukit Timah to slump by 40 per cent, because of the significant number of foreign buyers for such properties.

Prices will also be hit, with a possible correction of up to 20 per cent.

Mohamed Ismail, CEO of PropNex, said: “It takes a very bullish decision from a foreigner to come and invest in Singapore in today’s market, having to pay a 13 per cent stamp duty upfront, and (being) subjected to the Seller’s Stamp Duty in the next four years, of 16 per cent, 12 per cent, 8 per cent, and 4 per cent.

“And even if he sells after four years, if he buys a property today, he must expect at least a 25 to 30 per cent increase in the property price to break even, taking into consideration other costs and interests and all other elements.”

Mr Mohamed said there were a few foreigners who had already expressed interest in buying properties and were planning to sign the option papers on Wednesday, but pulled out after the announcement of the new rules.

He added that even though these buyers will not be affected by the higher stamp duty, they felt their returns will be severely impacted.

The mass market segment – which has seen more foreign buyers moving in – is also expected to dip, which may be a boon for Singaporeans.

Mr Mohamed said: “When more foreigners enter the mass market, they are competing with Singaporeans and Singaporeans’ aspirations are challenged mainly because the prices keep increasing. Overall, the buyers are now going to wait and see….with such a policy, where is the correction before entering the market.”

He added: “I do expect, in the next six months, the mass market properties are likely to see a correction of 10 to 15 per cent.”

New developments are springing up all over Singapore, but may soon have difficulties finding buyers. Property watchers expect the market to be fairly quiet over the next one to two months.

December and January normally see fewer transactions due to the school holidays and New Year celebrations. And with the latest round of cooling measures, buyers are expected to adopt a wait-and-see approach, hoping that prices will drop, before dipping their toes into the market again.

- CNA/ck/ms

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Three more sites for housing »« Additional buyer’s stamp duty for private property from Dec 8

Additional buyer’s stamp duty for private property from Dec 8

Additional buyer’s stamp duty for private property from Dec 8

By Joanne Chan | Posted: 07 December 2011 2003 hrs

SINGAPORE: The government has imposed an Additional Buyer’s Stamp Duty (ABSD) for private property of between 3 per cent and 10 per cent for Singaporeans, Permanent Residents and foreigners to moderate investment demand for private residential property and promote a more stable and sustainable market.

The changes take effect on December 8.

Foreigners will pay 10 per cent Additional Buyer’s Stamp Duty (ABSD) for any residential property.

Permanent Residents owning one and buying second and subsequent properties will pay 3 per cent ABSD.

Singaporeans owning two and buying a third and subsequent residential properties will pay 3 per cent Additional Buyer’s Stamp Duty.

The ABSD will be imposed over and above the current Buyer’s Stamp Duty, which are 1 per cent on the first $180,000 of purchase consideration or market value of the property (whichever is higher), 2 per cent on the next $180,000 and 3 per cent for the remainder.

In a joint statement on Wednesday, the Finance and National Development ministries say the government’s objective is to promote a sustainable residential property market where prices move in line with economic fundamentals.

They said prices of private residential properties have continued to rise, albeit more slowly in the last two quarters.

Prices are now 13 per cent above the peak in the second quarter of 1996, and 16 per cent above the more recent peak in the second quarter of 2008.

They said that even with the current economic uncertainties, the demand for private residential property remains firm.

Given the uncertainty in stock markets and with interest rates remaining low, private property in Singapore continues to attract local and foreign investors.

They added that excessive investment demand will make the property cycle more volatile, and thus increase the risks to Singapore’s economy and banking system.

The government said the higher ABSD rate for foreign buyers in particular is necessary, in view of the large pool of external liquidity and strong buying interest from abroad, and the relatively small size of the Singapore market.

The government said foreign purchases account for 19 per cent of all private residential property purchases in the second half of 2011, up from 7 per cent in the first half of 2009.

For purchases made jointly by two or more parties (eg a Singaporean with a PR, or a PR with a foreigner), the higher applicable ABSD rate will be imposed.

For example, if a citizen purchases a property with a foreigner, the ABSD of 10 per cent will apply.

In the case of a joint purchase by Singaporeans, who each already owns properties, the ABSD of 3 per cent will apply as long as one of the purchasers already owns two properties.

Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam, said: “We have always had open markets and must keep them that way. However, the reality is that investment flows into our property market are now larger than before, and unlikely to recede as long as interest rates remain low.

“The additional buyer’s stamp duty should help cool investment demand, and avoid the prospect of a major, destabilising correction further down the road.”

Nicholas Mak, Executive Director of Research and Consultancy at SLP International, said: “It will curb investment demand for private residential properties quite drastically, especially demand from non-resident foreigners. And I think in the next one to two months or so, demand from non-resident foreigners will almost dry-up.”

Home buyers are mixed in their views.

One Indian foreigner said: “I know there is a stamp duty, but any increase in that will probably take it out of my level where I want to buy.”

An Indian who is a Permanent Resident said: “Nowadays, HDB properties are also difficult to buy, because of more conditions. So they have to buy property here. Definitely they’ll keep buying more irrespective of whether the stamp duty is increased or not.”

One Singaporean said: “It probably wouldn’t have an effect in the short-term, because the property market prices are still rising, people are still speculating.”

Minister for National Development Khaw Boon Wan said: “We are ramping up the supply of new Executive Condominium units through the Government Land Sales Programme.

“This will help higher-income Singaporeans own private condominium units in an affordable way, as the sale of new EC units is restricted to Singaporean households only.”

Singaporean first-time buyers and upgraders, and buyers of HDB flats will not be affected by the new measure.

Certain reliefs will be provided so that the measure will not impact home occupation demand by residents.

For example, relief will be provided for Singaporean-foreigner/PR married couples buying their homes.

Reliefs will also be provided for qualifying developers and for purchases falling within the scope of Singapore’s international trade agreements.

The government will continue to ensure an adequate supply of private housing to meet-medium term demand.

There are 41,000 unsold private housing units in the pipeline.

The government will inject sites that can potentially yield a total of 14,100 units in the 1H2012 Government Land Sales (GLS) Programme, similar to the supply in previous GLS programmes.

Of these, about 7,000 units will be from sites on the Confirmed List.

These numbers take into account the ample pipeline supply and the dampening effect of the ABSD.

The government will also expand the supply of executive condominiums (ECs) in 2012 and is prepared to release sites that can potentially yield 5,000 EC units for the entire year.

Sites for 3,500 EC units will be made available in 1H2012, including 3,000 EC units on the Confirmed List.

The Confirmed List quantum is comparable to the 3,000 EC units from five sites sold for the whole of 2011. More details will be provided in the press release for the 1H2012 GLS Programme on MND’s website.

The Government will continue to monitor the property market and adjust its property policies in step with changes in the market and the economy.

- CNA/de

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

New property curbs seen to cool prices »« Residential site tender draws massive 22 bids

Residential site tender draws massive 22 bids

Residential site tender draws massive 22 bids

Posted: 08 December 2011 1951 hrs

SINGAPORE – A government land tender for a residential site drew a massive 22 bids, despite tough new measures to cool the housing market.

The Urban Redevelopment Authority (URA) said the site at Chestnut Avenue/Almond Avenue attracted a top bid of S$70.8 million from a company called SCB Terraform.

The next highest bid of S$67.8 million came from SK Land Pte Ltd.

CT Projects Pte Ltd put in the third highest bid of S$65.9 million.

The remaining 19 bids range from S$25 million to S$64 million.

The site measures 12,893.4 square metres. Located in the relatively popular Upper Bukit Timah area, it was offered for sale on a 99-year lease.

The top bid works out to S$5,494 per square metre of built-up space.

Under the latest property market-cooling measures, buyers of private properties in Singapore will have to fork out an Additional Buyer’s Stamp Duty (ABSD) of between 3 per cent and 10 per cent over and above the existing Buyer’s Stamp Duty.

The new measure does not affect permanent residents buying their first home and Singaporeans buying their first and/or second home.

Foreigners are the hardest hit. They have to pay a hefty ABSD of 10 per cent on any purchase of a residential property in Singapore.

- CNA/ir

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Additional buyer’s stamp duty for private property from Dec 8 »« Real estate agencies launch electronic network on property information

Real estate agencies launch electronic network on property information

Real estate agencies launch electronic network on property information

Posted: 08 December 2011 2123 hrs

SINGAPORE: Eleven real estate agencies have joined hands to launch an electronic network that will provide exclusive property listings and transactions details in real time.

Called the Singapore Real Estate Exchange (SRX), the network enables agents to access up-to-date information like transacted prices and rentals.

The SRX, which was soft-launched in July this year, is already seeing an average of about 300 transactions a day.

Property agents say this will help to raise professionalism in the real estate industry and provide greater transparency.

Commenting on the sidelines of the event, some property agents says the fresh round of measures to cool the property sector will definitely affect home buying interest.

In recent years, several real estate agencies have set up offices or conducted roadshows in China to woo foreign buyers, while others organise tours for Chinese buyers to view properties in Singapore.

They say the new cooling measures introduced will hurt demand in the short term, but the prospects in China are still bright.

Mr Mark Teo, Senior Group Division Director of ERA, said instead of the current 20 percent of foreigners buying property in Singapore, the trend may decline to 10 to 15 percent in the future.

Mr Tan Kok Keong, Research and Consultancy Director of Orange Tee, said: “Our expansion into China is not just a one day affair. We are going into China on a long-term basis, we do not expect to scale back our business. In fact, in times like this it’s an excellent opportunity for us to actually educate buyers.”

- CNA/de

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Residential site tender draws massive 22 bids »« Private-housing sites launched for sale