Limit certain buyers from resale HDB market: analyst

Limit certain buyers from resale HDB market: analyst

Jan 19, 2012 – PropertyGuru.com.sg

One way cash-over-valuation (COVs) can be lowered is if the government limits private homeowners and second-time buyers from acquiring resale HDB flats, according to Tejaswi Chunduri, PropertyGuru’s real estate analyst.

Her comments come after Minister for National Development, Khaw Boon Wan, highlighted in his blog yesterday that private property owners topped the list of median COV paid in Q4 2011 at S$45,000.

As for second-timers, first-timers, permanent residents (PRs) and singles, they paid S$34,000, S$33,000, S$32,000 and S$31,000 respectively.

“Private homeowners and second-timers have more money to spend and can afford the higher COVs asked by sellers,” said Chunduri. “If they are willing to pay a higher price for a better location, the seller would certainly be happy.”

According to some property agents, private homeowners who are eyeing for HDB flats include those aged 40 to 50, and who have up to S$200,000 worth of savings.

They added that there is a growing interest among this group of buyers for HDB flats. However, Mr Khaw said it is unfair to blame the higher prices on a particular group.

The Housing Board has always maintained that “prices are influenced by a myriad of factors such as pace of economic growth and market sentiments.”

Affirming that home prices have shot up within the last two to three years, Mr Khaw asked for the public’s patience, as he has been working for the market to “stabilise in due course”.

Source : PropertyGuru

« Cooling measures may need tweaking, says Far East

Cooling measures may need tweaking, says Far East

Cooling measures may need tweaking, says Far East

Jan 19, 2012 – PropertyGuru.com.sg

The 10 percent additional buyer’s stamp duty (ABSD) for foreigners is ‘a very big number’, according to Philip Ng, CEO at Far East Organization (pictured), noting that the recent property cooling measures may need to be calibrated, based on how persistently sales volumes drop.

Ng added that the cooling measures had prompted Far East and its partners to drop the prices for their soon-to-launch 992-unit Watertown project in Punggol Central, as foreigners have shown relatively less interest in the project compared to launches done prior to the cooling measures.

Consequently, the measures may eventually need tweaking, he said.

“Indeed, there could be some calibration or tiering perhaps, but that’s something that has to be discussed with good data between developers and policymakers.”

“At this point, it’s pretty early days and you can see that there was already a drop in December,” he said, referring to the 63 percent plunge in new private home sales last month.

Ng said implementing the policy for a while will gauge whether the sales decline is persistent before finally deciding if the measures must indeed be tweaked.

In response to the ABSD, unit prices at Watertown were reduced by five to eight percent.

Source : PropertyGuru

Limit certain buyers from resale HDB market: analyst »« Helping S’poreans own first flat is a priority, says Khaw

Helping S’poreans own first flat is a priority, says Khaw

Helping S’poreans own first flat is a priority, says Khaw

Jan 17, 2012 – PropertyGuru.com.sg

National Development Minister Khaw Boon Wan stressed that the government’s priority is to help Singaporeans own their first HDB flat.

“Our priority is to help Singaporean families own their first flat,” he said.

“I think our advice to our constituents is we will help you, we’ll help practically every Singaporean family to own their first flat, and buy within your budget and then please keep it.”

Mr Khaw was answering a question in Parliament yesterday on whether his ministry would consider restricting the sale of three-room or smaller flats to lower-income households only.

“Doing so will deprive flat owners of the full market value of their flats.”

He also noted that those who have never benefited from any housing subsidy “should get more subsidy than those who have already benefited once before.”

Source : PropertyGuru

Cooling measures may need tweaking, says Far East »« Don’t put the blame on PRs: Khaw

Don’t put the blame on PRs: Khaw

Don’t put the blame on PRs: Khaw

Jan 17, 2012 – PropertyGuru.com.sg

Rising resale HDB flat prices should not be blamed on permanent residents (PRs), but on local private property owners – the buyers who pull up the stakes for the cash premium on flats, said Khaw Boon Wan, Minister for National Development.

Mr Khaw’s statement was made in response to a query raised by Zaqy Mohamad, Member of Parliament for Choa Chu Kang GRC, as to whether the Housing Board would limit the sale of resale three-room and smaller flats to just lower-income Singaporeans.

Mr Zaqy argued that PRs are generally perceived as contributing to the rising prices of resale flats and the increasing amounts of cash premiums paid to sellers, known as the cash-over-valuation (COV).

According to Daniel Tan, a real estate agent from C&H Properties, sellers of four- to five-room resale units in Woodlands, Bedok and Ang Mo Kio could command COVs of between S$50,000 and S$80,000 in August last year.

When HDB raised the income ceiling for new flats and housing subsidies, Tan noted that these sellers lowered their expectations to under S$50,000.

By the third quarter of last year, median COVs ranged from S$27,900 to S$34,000.

“The data (is) quite distinct,” noted Mr Khaw. “Typically, the PRs pay the lower COVs… among the groups, the higher COVs are often by private property owners or former private property owners… especially the enbloc owners or residents, probably with a lot of cash and still need a roof… they are the ones who bid up the COV.”

Hence, he deemed that it is unfair to blame the higher resale prices on a particular group.

Affirming that home prices have shot up within the last two to three years, Mr Khaw asked for the public’s patience, as he has been working for the market to “stabilise in due course”.

Source : PropertyGuru

Helping S’poreans own first flat is a priority, says Khaw »« Home buyers and sellers wary of market conditions

Home buyers and sellers wary of market conditions

Home buyers and sellers wary of market conditions

Jan 16, 2012 – PropertyGuru.com.sg

Although a healthy number of prospective buyers have been seen at showflats a week before the Chinese New Year, they prefer to be cautious and keep their options open.

A Straits Times report revealed that despite the steady stream of home buyers flocking to showflats, very few units are being bought. Several analysts said the looming decline in property prices due to the recent cooling measures may be keeping many potential buyers at bay.

Around 10 apartments with an average price of S$850 per sq ft were sold at Qingjian Realty’s 590-unit Riversound Residence in Sengkang. The weekend sales brought the total to over 60 units since the project was launched a week ago.

Zuo Haibin, Managing Director at Qingjian Realty, noted that the effect of the cooling measures had been significant, with many people expressing interest in properties but only a handful committing to buy.

Meanwhile, property agents are reporting more enquiries from home sellers.

Since the implementation of the measure on 7 December 2011, agents said they have been getting more phone calls from clients who are worried about the effect of the additional stamp duty and the global economic uncertainty on the prices of their homes.

Clients are asking if they should quickly sell their properties while prices are still high.

Source : PropertyGuru

Don’t put the blame on PRs: Khaw »« New measures have already dampened property market

New measures have already dampened property market

New measures have already dampened property market

Jan 13, 2012 – PropertyGuru.com.sg

With 3,092 new homes sold from October to November, the residential market started Q4 2011 “on a strong note”, with new home sales for the first 11 months hitting 15,393 units, before the new set of cooling measures were introduced in December, according to CBRE in its latest quarterly report.

Before the additional buyer’s stamp duty (ABSD), strong sales activity was seen in Este Villa, Bedok Residences and The Palette.

The executive condominium (EC) market also performed well, with five projects adding a record 2,535 ECs to the market. With more choices and a 20 to 25 percent price gap between mass-market condominiums and ECs in the same location, buyers opted for over 2,100 EC units.

However, the ABSD has affected the property market. “The introduction of ABSD in December 2011 has dampened buying sentiments. Nevertheless, the total volume of new homes sold (excluding ECs) in 2011 may come close to 16,000 units, short of the record 16,292 units sold in 2010,” said CBRE.

Moving forward to this year, CBRE expects a 15 percent decline in demand for new homes and a drop in prices of luxury/prime (10 to 15 percent) and mass-market homes (five to 10 percent). Landed home prices may moderate by less than five percent, with limited supply and foreigners prohibited from purchasing them.

In terms of investments, real estate investment yielded S$29.5 billion in 2011. With more government land sites awarded and K-Reit’s 87.5 percent acquisition of Ocean Financial Centre from Keppel Land, investment sales rose 59 percent to S$7.6 billion in Q4.

“Total investment sales in 2012 are expected between S$20 million and S$25 million reflecting the more cautious outlook. This is based on weaker rental outlook and tighter liquidity conditions expected ahead,” it noted.

Source : PropertyGuru

Home buyers and sellers wary of market conditions »« S’pore govt releases 2 residential sites for sale