HDB resale prices moderate in Q4

HDB resale prices moderate in Q4

by Joanne Chan 04:47 AM Jan 04, 2012

SINGAPORE – The tide could be turning in favour of buyers, with home prices in Singapore showing signs of moderating.

Prices of resale Housing and Development Board (HDB) flats grew 1.7 per cent in the last quarter of last year, compared to the 3.8 per cent growth seen in the third quarter.

This brings the HDB Resale Price Index – which provides information on the general price movements in the public residential market – to 190.4.

The figures confirmed what the market had been expecting – a moderation in home prices following a year of policy tweaks by the Government to cool the red-hot property market, while home buyers are becoming more cautious in light of the uncertain economic outlook.

Market watchers also pointed out that cash-over-valuation – the cash premium paid upfront for resale flats – is showing signs of softening, dropping between S$5,000 and S$8,000 in the last quarter of last year, and could bottom out at around S$20,000 to S$30,000.

Mr Mohd Ismail, CEO of PropNex, said buyers could have more bargaining power in areas where prices are very high, where houses are on low floors, or affected by ethnic ratios.

“And when such houses are put on the market, you don’t even get a buyer at zero cash-over-valuation. Therefore, if you say are there possibilities of picking houses today without paying any cash … yes there are. But they may not have the best of the panoramic view and so on,” he said.

Some expect HDB resale prices to correct by up to 3 per cent this year, with the ramped-up supply of Build-To-Order (BTO) flats expected to continue to draw first-time home buyers away from the resale market.

Said Mr Eugene Lim, executive officer of ERA Realty: “The success rate is higher now. It is a lot better. In fact, any first-timer who applies for a flat is almost certain of getting one. So, this improved success ratio … translates into lower demand in the resale market.”

Last year, the HDB offered about 28,000 flats – 25,000 under the BTO system and about 3,000 units under the Sale of Balance Flats exercise.

This year, buyers can look forward to 25,000 BTO flats coming on the market.

The HDB said “these projects will have a good geographical spread in the various towns”.

It will offer nearly 3,900 BTO flats in Choa Chu Kang, Punggol, Sengkang and Tampines this month.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

HDB pumps in S$11m to help 3,300 shops »« Private property prices continue to moderate

Private property prices continue to moderate

Private property prices continue to moderate

by Tan Weizhen 04:47 AM Jan 04, 2012

SINGAPORE – Despite the property market still not feeling the full impact of the latest cooling measure, flash estimates showed prices of private homes were almost flat – rising by just 0.2 per cent – between October and December last year.

In a press release yesterday, the Urban Redevelopment Authority noted: “The rate of increase in private residential property prices has continued to moderate for the ninth consecutive quarter”. The 0.2-per-cent increase in the fourth quarter was in contrast to a 1.3-per-cent rise in the previous quarter.

With buyers adopting a wait-and-see attitude, property analysts Today spoke to pointed out that the estimates do not reflect the impact of the recent cooling measure, which has been described as the harshest yet.

Which is why some of them felt that prices of private homes could fall – for the first time since 2009 – in the coming months.

An increased supply of private homes, coupled with the impact of the cooling measure, could see private home prices fall by about 3 per cent in the year ahead, said Propnex CEO Mohamed Ismail.

However, Orange Tee director of research and consultancy Tan Kok Keong told Today that he expects prices to fall by between 1 and 2 per cent at most between January and March.

On Dec 7, the Government announced additional buyer’s stamp duties (ABSD) which will be imposed in addition to the existing tax. Foreigners and corporations will be hardest hit, with a 10-per-cent ABSD imposed on any private homes they buy.

While the indications are that private home prices are stabilising, analysts noted that the fourth quarter is the traditional lull period for the property market.

According to the URA, its flash estimates are compiled “based on transaction prices given in caveats lodged during the first 10 weeks of the quarter supplemented by information on the number of new units sold by developers”.

The statistics will be updated next month, when more data on the caveats lodged and the take-up of new projects are captured.

The URA said: “Past data has shown that the difference between the quarterly price changes indicated by the flash estimate and the actual price changes could be significant when the change is small. The public is advised to interpret the flash estimates with caution.”

SLP International research head Nicholas Mak said the revised figure would likely vary by between 0.1 and 0.2 per cent.

He said: “But if the final figures are low, it’s hard to tell if it is a direct impact from the ABSD. There are other factors such as the euro zone crisis and the Singapore economy.”

He added: “The ABSD alone will not cause prices to drop, as it does not eliminate demand. Singaporeans and permanent residents, who are not so affected by the new measure, will sustain demand and hence prices.”

Concurring, Chesterton Suntec International research and consultancy head Colin Tan said buyers should not hold their breath for prices to drop.

He said: “So long as we have slow growth or at least positive growth, so long as employment holds up, I think we do not expect prices to correct anytime soon.”

Source : TODAYonline – MediaCorp Press Ltd’s copyright

HDB resale prices moderate in Q4 »« Govt ready to supply land for 5,000 ECs

Govt ready to supply land for 5,000 ECs

Govt ready to supply land for 5,000 ECs

by Venus Hew 04:46 AM Dec 28, 2011

SINGAPORE – More land will be released for the development of executive condominiums (ECs) to meet the housing aspirations of higher-income Singaporeans.

The Government is prepared to supply land sites for 5,000 EC units next year, Minister of State for National Development and Manpower Tan Chuan-Jin said yesterday at the 52nd anniversary of the Real Estate Developers Association of Singapore (REDAS).

The announcement comes after the Government in August raised the monthly income ceiling for the purchase of new ECs to S$12,000 from S$10,000. Mr Tan said that the higher ceiling had benefited around 220 households who booked their ECs after August.

ECs, a hybrid of public and private housing, were introduced in 1995. Since their introduction, 14,600 EC units have been launched by developers and 3,000 units are coming on-stream.

Still, Mr Tan pointed out that the majority of Singaporeans would continue to live in public housing.

He said that while the Government remained committed to helping first-time owners and newly-weds buy their own homes, it would pay more attention to helping HDB second-timers next year.

Amid uncertainty in the external economic environment with more subdued growth prospects globally, Mr Tan called on Singaporeans to be prudent when purchasing a new home and to “buy within your means”.

He warned: “The current low interest rates have enhanced the affordability of housing. But such low rates are not the ‘new normal’ and will eventually rise. Buyers need to do their sums and be careful not to over-commit themselves in their borrowing for property purchases.”

As property prices continued to climb to record highs, the Government has introduced four rounds of measures since 2009 to cool the market, including the latest this month that imposed additional buyers’ stamp duties (ABSD) of 10 per cent for foreigners and non-individuals.

Permanent residents who own one and are buying a second and subsequent residential property and Singaporeans who own two and are buying the third and subsequent one would have to pay an ABSD of 3 per cent.

REDAS president Wong Heang Fine said yesterday developers would be hit by a double whammy as a result of the latest cooling measures: First, the ABSD may lead to a higher cost structure for developers due to the higher cost of acquiring land and, second, there may be knock-on effects on mortgages and a decline in property values.

“Developers are naturally concerned when they are also required to pay ABSD with interest if they fail to complete selling all the units in a residential project within five years of land acquisition. These measures are indeed a double whammy for developers,” said Mr Wong.

Mr Tan said he did not expect developers to welcome the measures even as he pointed out that many people would agree that “it is in our common interest to have a sustainable and stable property market”.

Singapore’s property market is likely to attract investments because of the volatile equity markets and uncertainty in Europe, he said. He added that the latest cooling measures introduced by the Government were intended to moderate such investment and avoid a major correction in the future.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

Private property prices continue to moderate »« Sing Holdings to buy Robin Rd freehold site for S$52 million

Sing Holdings to buy Robin Rd freehold site for S$52 million

Sing Holdings to buy Robin Rd freehold site for S$52 million

04:46 AM Dec 15, 2011

SINGAPORE – Sing Holdings, a Singapore-listed company, has signed a sale and purchase agreement to acquire a freehold residential site at 2-8 Robin Road (picture) for S$52 million, it said yesterday.

The collective sale deal was signed via its wholly owned subsidiary, which owns three adjoining sites.

The price for the 16-unit apartment in District 10 translates to S$1,462 psf per plot ratio based on an allowable plot ratio of 1.54, including balconies, said Ms Yong Choon Fah, executive director of marketing agent Credo Real Estate.

“Development charge (DC) is not payable for the 10 per cent balconies GFA space allowed,” she added.

The four sites, when amalgamated, will form an island site flanked by Bukit Timah Road, Robin Road, Robin Drive and Robin Close across a land area of about 87,962.6 sq ft.

The total purchase price for the four sites is S$176.33 million.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

Govt ready to supply land for 5,000 ECs »« Developers may use incentives to boost sales

Developers may use incentives to boost sales

Developers may use incentives to boost sales

by Wong Siew Ying 04:46 AM Dec 15, 2011

SINGAPORE – Property developers are likely to offer incentives to draw in buyers and boost sales amid tighter regulations by the Government and a slowdown in the economy, according to analysts.

Singapore imposed unexpectedly last week a second round of cooling measures this year, a move described by analysts as harsh. The most recent measures impose an additional stamp duty on property purchases by foreigners and on locals seeking to buy multiple residential units.

“If transaction volumes were to decline and sustain into 2012, then prices are expected to be affected,” said Dr Chua Yang Liang, research head at Jones Lang LaSalle. Mr Chua has forecast a decline of between 10 and 15 per cent, with prices for high-end properties to suffer the most with an expected drop of 20 per cent.

Analysts expect new private homes sales to fall to between 15,000 and 16,000 units this year from nearly 16,300 units last year. Sales volume for next year is likely to dip further to fewer than 14,000 units.

To mitigate the impact of the cooling measures, developers may start offering incentives.

“They may have to even align their prices to move sales or look at incentives,” said Ms Chia Siew Chuin, director of research and advisory at Colliers International. These may include “extending rebates by using 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”.

Still, developers will have to continue to launch new projects, especially those in the suburban areas mainly because “the Government sales of sites that have been launched in the last 24 months will have to come into the market. They have to do it now as these are on 99-year leases”, said Mr Donald Han, vice-chairman at Cushman & Wakefield.

As such, developers are likely to 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, analysts that MediaCorp spoke to said.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

Sing Holdings to buy Robin Rd freehold site for S$52 million »« Liang Seah shophouses for sale

Liang Seah shophouses for sale

Liang Seah shophouses for sale

04:45 AM Dec 13, 2011

Three adjoining conservation shophouses at Liang Seah Street have been opened for an Expression of Interest tender exercise by property consulting firm DTZ.

The 999-year leasehold shophouses are located opposite Bugis Junction on a 2,694-sq-ft site and have a total floor area of about 11,529 sq ft. The properties are currently occupied. The tender will close on Jan 13 next year.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

Developers may use incentives to boost sales »« Strong response for EC at Choa Chu Kang

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

Why Paya Lebar bid was rejected

Why Paya Lebar bid was rejected

04:46 AM Nov 22, 2011

SINGAPORE – The Government’s intent to keep the commercial office market in Singapore competitive does not mean that it will sell State land below its fair market value, the Ministry of National Development (MND) said yesterday in response to a question asking why it rejected the joint bid from UOL Group and Singapore Land for a site in Paya Lebar.

Earlier this month, subsidiaries of the two developers submitted the only bid of S$529.3 million, or about S$566 psf per plot ratio, for the site, which the Urban Redevelopment Authority (URA) said was too low. In its retort to the rejection, the developers called on the URA to reveal its reserve price in future tenders.

In a written answer to the Parliamentary question submitted by Dr Lee Bee Wah (MP for Nee Soon GRC), the MND yesterday reiterated its plan to develop Paya Lebar Central into a major commercial hub over the next 15 years. The 2.1 ha site that was put up for tender was meant for a mixed use commercial development.

To preserve a stable and sustainable commercial property market and ensure the competitiveness of the Singapore economy, the MND said it would try to provide an adequate supply of commercial land to meet projected demand.

There is 930,000 sq m of office space in the pipeline, or about 200,000 sq m per year over the next five years, well above the historical take-up rate of about 150,000 sq m per year, the MND said. It would continue to release a regular supply through the Government Land Sales programme to meet demand.

Claiming that its efforts have helped to stabilise the office market, it said the rate of rental increase for commercial properties was slowing down, with island-wide rentals for office space rising 0.9 per cent in the third quarter, the lowest quarterly pace over the last six quarters.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

Private non-landed home prices resume upward trend in Oct »« HDB launches Sengkang commercial site for tender

HDB launches Sengkang commercial site for tender

HDB launches Sengkang commercial site for tender

04:46 AM Nov 22, 2011

The Housing and Development Board (HDB) yesterday put up for tender a commercial site in Sengkang Town.

The 99-year leasehold site, which is located at Sengkang West Avenue/Fernvale Road, has a site area of 94,618 sq ft and a maximum allowable gross floor area of 283,854 sq ft.

The tender will close on Jan 17.

In a separate statement yesterday, the HDB said that it has awarded a residential site at Yishun Ave 1 and Miltonia Close to joint bidders TG Development and Master Contract Service for S$138.9 million.

The joint bid for the 181,910 sq ft condominium site, which has a maximum gross plot area of 382,011 sq ft, translates to about S$364 per square foot per plot ratio.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

Why Paya Lebar bid was rejected »« Pinnacle@Duxton wins prestigious global award

Pinnacle@Duxton wins prestigious global award

Pinnacle@Duxton wins prestigious global award

04:46 AM Oct 30, 2011

The Housing and Development Board’s Pinnacle@Duxton has won the prestigious 2011 Urban Land Institute Global Awards for Excellence.

The award is open to real-estate developments around the world. It recognises the full process of a project – covering construction, economic viability, marketing and management as well as design in an urban setting.

The Pinnacle@Duxton, at 50 storeys, is the tallest public housing development in Singapore. It was lauded as an outstanding example of how the HDB managed to confront the challenges of meeting housing needs in an urban setting.

The transformation of the area’s social life with the introduction of younger families – while sensitively preserving memories of the area’s heritage – was another winning factor.

HDB is the only Asian recipient for this year’s global award, with the remaining four hailing from the United Kingdom and the United States.

Source : TODAYonline – MediaCorp Press Ltd’s copyright

HDB launches Sengkang commercial site for tender »« HDB resale flat prices up