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

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

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

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

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

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

Posted: 19 January 2012 1139 hrs

SINGAPORE: Two new residential sites have been launched for sale by public tender on Thursday, to provide home-buyers and developers with more choices for private housing.

The Urban Redevelopment Authority (URA) and Housing and Development Board (HDB) said the sites are at Hillview Avenue and Upper Serangoon View/Upper Serangoon Road.

The two parcels are under the Confirmed List of the first half of this year’s (1H2012) Government Land Sales (GLS) Programme.

Together, they will yield about 805 units, as part of the total 7,000 residential units to be launched under the GLS Programme for the first six months of this year.

The land parcel at Hillview Avenue is about 1.26 ha, located within an established residential estate in the west region.

The site can potentially yield about 370 private housing units and is near the future Cashew and Hillview MRT Stations.

These stations are part of the Downtown Line 2 Mass Rapid Transit system that will provide residents with convenient access to the city centre when it is completed in 2015.

The land parcel at Upper Serangoon View/Upper Serangoon Road is about 1.24 ha, and is located in the north-east region and in close proximity to Hougang MRT Station and Bus Interchange.

Earmarked for an executive condominium development, the site can potentially yield about 435 units and is easily accessible via nearby TPE, KPE and CTE.

- CNA/cc

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Posted: 18 January 2012 1525 hrs

SINGAPORE: National Development Minister Khaw Boon Wan said HDB studio apartments do not fit the housing needs of younger singles.

He said these apartments are sold with a short 30-year lease which is appropriate for retirees but not necessarily for younger people.

Mr Khaw said this in response to a question from MP Dr Intan Azura Mokhtar.

She had asked if his ministry will consider allowing singles who are 55 years old or younger to buy HDB studio apartments.

Dr Intan said: “There are residents who have come and approached me. They are singles, without family members or not very well-to-do. They can’t afford the high COV of resale flats or buy a flat from the private market. There isn’t much option for them.”

Mr Khaw replied: “There’s a wide range of potential house buyers so housing is a very complex problem. I will approach these problems systematically, I have to set priorities. In due course, I will be able to address all the various segments. But I decided to just zero in for the first 12 months on the first-timers and I think we’re delivering some results.”

- CNA/fa

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Posted: 17 January 2012 2032 hrs

SINGAPORE: Housing residents in an HDB flat within an HDB community, with access to HDB estate facilities is preferred over dormitory-type temporary housing.

The latter may not be suitable for family-based households.

National Development Minister Khaw Boon Wan said this in a written parliamentary reply, in response to Chua Chu Kang GRC MP Zaqy Mohamad.

Mr Zaqy had asked if the government will consider easing the short-term demand for HDB rental housing by providing temporary lodging, similar to those built for foreign worker dormitories until the new rental flats are completed.

Mr Khaw said currently, there are 1,900 applicants on the HDB rental flat waiting list.

The average waiting time has been shortened to five months.

He said as the government ramps up the supply of rental flats, it’ll be able to clear the outstanding demand while meeting demand from new applicants.

Those in the rental queue who urgently need temporary housing can be offered an HDB flat under the Interim Rental Housing Scheme.

- CNA/ck

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

By Millet Enriquez | Posted: 16 January 2012 1259 hrs

SINGAPORE: Sales of new private homes in Singapore fell 63 per cent in December to 632 units, according to data released by the Urban Redevelopment Authority (URA).

That’s significantly lower than the 1,702 private homes sold in November.

Analysts said that’s the steepest monthly decline since 2009, when the government scrapped the Interest Absorption Scheme (IAS).

And sales volume could dip further as buyer’s sentiment remain cautious.

Units at The Palette in Pasir Ris were among the top sellers in December.

Amidst the lull of the holiday period and the latest round of property cooling measure, the project managed to book 61 units.

Analysts said private homes in suburban areas will continue to dominate sales volume in the coming months.

In 2011, a total of 11,272 units were launched in the area, with 10,404 units sold. They accounted for over 60 per cent of launches and sales volume last year, said Colliers International.

Donald Han, vice-chairman, Cushman & Wakefield, said: “We expect more launches particularly in outside the central region. Why? Because the government has a slew of Government Land Sales Programme over the last 18 months and majority of these Government land Sales Programme has to be translated into to new project launches by developers.”

All in, some 489 units were sold in the outlying areas in December.

In contrast, only 35 units were sold in the prime districts.

Meanwhile, a total of 108 units were sold in the city fringes.

As expected, the introduction of the Additional Buyer’s Stamp Duty (ABSD) has put off many buyers in the high-end home segment, particularly foreigners.

Colin Tan, head of Research and Consultancy, Chesterton Suntec International, said: “The sales are quite dismal and I think it’s reflective of the kind of shock that the market received. And I think given the current numbers, I think the weak sales volume will persist.”

Experts said sales volume could drop further to around 600 to 1,000 units in the next two months as buyers take a wait-and-see approach.

For 2012, analysts said demand for new homes could fall by 20 per cent while prices could drop 10 to 15 per cent.

Ku Swee Yong, CEO, International Property Advisor, said: “Developers could do several things. Other than incentives and discounts, developers could also increase the quality and specifications of the products they are building in order to maintain the prices.”

Prices will likely remain flat for the next few months. But as sales volumes drop, analysts said developers may consider cutting prices. And by March, developers could start competing for buyers.

Han said: “When the dust settles, I think the market activity will come back again in terms of property activity mainly because of the low interest rate environment that we have.

Overall, there were 16,027 private homes sold in 2011 – a slight dip from the 16,292 units sold in 2010.

- CNA/cc/ck

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Posted: 16 January 2012 1448 hrs

SINGAPORE: National Development Minister Khaw Boon Wan has said imposing an income ceiling for resale flats will deprive flat owners of the full market value of their flats.

He was answering a question in Parliament on Monday on whether the ministry would consider limiting the sale of 3-room or smaller flats to lower income Singaporeans.

Chua Chu Kang GRC MP Zaqy Mohamad noted that the Cash-Over-Valuation (COV) for 3-room flats is much higher than that for 4- and 5-room flats in recent years.

He added that the huge COV is a barrier for those who need to downgrade from a bigger flat.

Mr Khaw said: “Our priority is to help Singaporean families own their first flat. But here, the member is obviously talking about second-timers, somebody who has bought it and then sold the flat for whatever reason, and then try to come back, and face difficulties.

“The data do not quite suggest so because I’ve been looking at the median income of BTO flat applicants, the latest batch. For 3-roomers, it’s about S$2,500 per month.

“But for resale flat, again the latest data, the median income is S$3,000, so which is not significantly different from the BTO applicants…

“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.

“If you want to upgrade, that is a good development, but make sure, do your sums and then you should not have a problem doing so.”

- CNA/al

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

Posted: 13 January 2012 1133 hrs

SINGAPORE: The Housing and Development Board (HDB) will set aside another S$11 million to help 3,300 shops in 35 sites enhance their business vibrancy and competitiveness.

This is as part of its fourth batch of the Revitalisation of Shops (ROS) scheme.

HDB will also extend its co-funding portion for promotional events from the current three years to six years, in response to requests from the Merchant Associations (MAs).

The Revitalisation of Shops (ROS) scheme is part of the Government’s ongoing measures to help HDB retailers.

Piloted in November 2007, it has three components: co-funding for upgrading of common area, co-funding for promotional events and rent-free periods for tenants to renovate their shops.

The MAs may choose to take up all, or a combination of the measures.

For this fourth batch, HDB has selected a total of 35 sites for ROS co-funding: four sites for upgrading of common area and promotional events, and 31 sites for promotional events.

- CNA/fa

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

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

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

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

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

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

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

By Hetty Musfirah | Posted: 11 January 2012 1946 hrs

SINGAPORE: There’s been a strong take-up rate for the latest executive condominium (EC) project at Choa Chu Kang.

Some 150 units of The Rainforest were sold on the first day of booking.

The latest 466-unit development offer units priced from S$601,000 to S$1.01 million.

The Rainforest also saw strong demand from second-time buyers.

Only five per cent of the project is allocated to second-time buyers and all these units were taken up on Wednesday, said the developers City Developments Limited and TID Pte Ltd – a joint venture between Hong Leong Group and Mitsui Fudosan.

- CNA/ck

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

By Qiuyi Tan | Posted: 11 January 2012 1044 hrs

SINGAPORE: The Housing and Development Board (HDB) launched five Build-To-Order (BTO) projects on Wednesday.

The BTO launch, the first this year, offers 3,923 new flats in Choa Chu Kang, Punggol, Sengkang and Tampines.

And a further 4,110 new flats will be offered for sale in the next BTO launch in March, in Bedok, Bukit Batok, Bukit Panjang, Bukit Timah, Clementi, Geylang and Toa Payoh.

In total, HDB plans to offer 25,000 BTO units for the entire year.

HDB says at least 95 per cent of the flat supply (excluding Studio Apartments) will be set aside for first-timer households. Eligible first-timer households can also enjoy various housing grants to help them own a new BTO flat.

The projects launched on Wednesday are Fernvale Lea in Sengkang, Sunshine Gardens in Choa Chu Kang, Tampines Alcoves and Tampines GreenTerrace in Tampines, and Waterway Sunbeam in Punggol.

The selling prices for units at Fernvale Lea range from S$83,000 for a 2-room unit to S$283,000 for a 5-room unit.

For Sunshine Gardens, the price range is from S$77,000 for Studio Apartments to S$295,000 for a 5-room unit.

For units at Tampines Alcoves and Tampines GreenTerrace, the price range is from S$86,000 for Studio Apartments to S$292,000 for a 4-room unit.

And at Waterway Sunbeam, the price range is from S$152,000 for a 3-room unit to S$340,000 for a 5-room unit.

All these prices exclude grants.

Analysts expect strong demand for the Tampines projects, but the other projects are not likely to see 100 per cent take-up rate.

Mr Lim Yong Hock, senior vice president at PropNex Realty, said: “We can see the take-up rate has moderated over the last one year, from subscription of more than five times. Now, we have moderated down to one-over times.

“I believe today’s launch will probably see further moderation of the take-up rates. But of course, in a good location, the take-up rate will still be very strong, like Tampines (Alcoves). It’s a hot location and it’s also near a future MRT station, Tampines West.”

Mr Lim said applicants are being more selective as more BTO projects, some of them in mature estates, are in the pipeline.

He added: “Of course, everybody hopes to apply for a good location. So some of them may even wait for the March launch before they even put in their applications.”

The vast majority of new flats are reserved for first-time applicants, and only five per cent go to second-timers.

If take-up rates continue to moderate, analysts expect the government to start allocating more flats for second-timers as early as the first half of the year.

Minister for National Development Khaw Boon Wan had said in his blog last year that second-timers can expect more BTO flats to be reserved for them, starting 2012.

More information is available on HDB InfoWEB.

- CNA/fa/ck

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

By Pamela Koh | Posted: 09 January 2012 2151 hrs

SINGAPORE: Two freehold redevelopment sites – Asia Gardens and Jade Towers – have been put up for collective sale by tender.

The two sites are located in districts 2 and 19 respectively.

The collective sale of Asia Gardens has an indicative price of between S$302.6 million to S$307.7 million, or about S$1,500 to S$1,525 per square foot (psf) per plot ratio (ppr).

No development charge is payable for this site.

Meanwhile, Jade Towers is expected to fetch between S$108.8 million to S$110.8 million, or S$826 to S$841 psf ppr.

Asia Gardens, an 84-unit condominium development, is the last available freehold residential plot in the Spottiswoode enclave of district 2.

Located along Lew Lian Vale, off Upper Serangoon Road in District 19, Jade Towers comprises two 10-storey blocks with a total of 72 apartments of about 1,453 sq ft each.

According to its marketing agent Savills Singapore, the site can be redeveloped into 101 new condominium units averaging 1,200 sq ft each if the plot utilises a near rectangular configuration.

This is also the first time that both developments have achieved the relevant 80 per cent majority mandate to proceed with the collective sales exercise.

The tender for Jade Towers and Asia Garden will close at 3pm on 16 February 2012 and 29 February 2012 respectively.

- CNA/ck

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

By Pamela Koh | Posted: 09 January 2012 2058 hrs

SINGAPORE: Rents for business park space and offices have stagnated over the last six months.

This is according to research by DTZ which is part of commercial property giant UGL Limited.

Rent for business park space has remained unchanged at S$4.38 per square foot per month in the second half of 2011.

This is a contrast to the robust 6.6 per cent growth registered in the first half.

Likewise, average rent for hi-tech industrial space rose 6 per cent in the first half of 2011 but remained unchanged at S$3.00 per sq ft/month for the rest of the year.

Average rent for first storey conventional private industrial space also stalled in the second half of last year after rising 4.9 per cent in the first half to S$2.15 per sq ft per month.

The growth in rental values for these units also slowed down to 4.9 per cent last year compared to 5.1 per cent in 2010.

DTZ said this is due to the slow down in Singapore’s economy and a decline in manufacturing output last year.

Singapore’s economic growth has slowed to an estimated 4.8 per cent after the exuberant 14.5 per cent growth in 2010.

Manufacturing output fell in 2011, marred by regional supply-side disruptions from natural disasters in Japan and Thailand. Declining global demand as the Euro zone debt crisis deepens has also contributing factors.

Still, there is still a silver lining.

Capital values for industrial space have continued to rise in the second half of 2011 buoyed by investor demand.

Transactions of strata factory space rose more than 10 per cent to 1,733 in 2011, up from 1,562 transactions for the year prior.

For the whole of 2011, capital values for private industrial first storey resale spaces rose 5.7 per cent while that for upper-storey resale spaces grew by 10.8 per cent.

- CNA/ck

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

By Hetty Musfirah | Posted: 07 January 2012 2010 hrs

SINGAPORE: Demand for luxury private and public homes in Singapore is still upbeat despite a gloomy economic outlook.

The first weekend of the new year saw crowds made up of mostly first-time buyers and families looking to upgrade flocking to several property launches.

Market watchers say the recent cooling measures have also affected demand from foreigners.

It is a busy first day of sales for Riversound Residence which is located off Sengkang East Drive.

Its private condominiums cost between S$453,000 and S$1.8 million.

By 2pm on Saturday, four penthouse units costing some S$1.5 million each were taken up – three by Singaporeans and the other by a foreigner.

The developer said this trend is not surprising as the recent cooling measures requiring foreigners to pay an extra 10 per cent in stamp duty have dampened demand from foreigners.

Despite a slowing economy, the overall take up rate is projected to be healthy with 60 to 70 per cent of the 250 units released in the first phase likely to be snapped up before the Lunar New Year.

Qingjian Realty’s deputy General Manager Li Jun said: “Judging from the response today, there are still many people visiting the showroom. They are mostly locals. The development is also targeting those in the Punggol-Hougang area.”

Homebuyer Mr Loh Beng Huat said that the time may be right for an upgrade.

He said: “This launch is quite good so I think I’m keen. That’s why I am now looking at the financial area and see whether I can afford and upgrade. I have stayed in HDB for a number of years already so I think it is a good time for me to look into a new investment in a private condominium.”

Near by at Parkland Residences – a Design, Build and Sell Scheme (DBSS) project – crowds doubled on the second day of its launch.

Mr Lee Yoon Moi, who is the Chief Operating Officer at Low Keng Huat – the company behind the development, said: “Generally, there are a lot of young couples and also families. The more popular ones are the four and five rooms units.”

Parkland Residences is the only DBSS project within the Hougang & Punggol area and the first of only two DBSS projects this year after the government halted land sales for such developments last year.

Analysts say this is keeping demand up with flats here costing between S$359,000 and S$706,000.

“Most of it is done up so you don’t need to pay much for renovation,” said one potential buyer.

“The prices here are relatively cheap compared to the other DBSS projects,” said another.

Agents believe Parkland Residences will see a strong take-up rate when bookings begin on January 11.

The final DBSS project will be launched at Pasir Ris in March or April 2012.

The Executive Condominium (EC) at The Rainforest, near Choa Chu Kang MRT station, is also proving to be a hit with young couples.

“The EC is kind of like the in-thing now these days and we think it is a good opportunity for us to pick up a first-time house,” said one couple.

“We are in our 20s so we are looking at projects like this that are appealing to us. I think it is very good that the government is releasing projects in the mature estates instead of just Punggol and Sengkang,” another couple said.

The last EC that was launched near Choa Chu Kang is now about 80 per cent sold.

- CNA/fa

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

By Millet Enriquez | Posted: 05 January 2012 2140 hrs

SINGAPORE: Private home prices and rents in Singapore rose in 2011 from the previous year despite cooling measures, said property consulting firm DTZ.

The measures included imposing seller’s stamp duty and a reduction in loan-to-value limit.

In its report released on Thursday, DTZ said resale prices of leasehold condominiums in suburban areas increased 8.2 per cent on-year.

This makes it the fastest growing segment among non-landed housing according to a basket of completed condominiums tracked by DTZ.

Fourth quarter flash estimates also showed HDB resale prices went up last year by 10.7 per cent.

But prices of luxury condominiums only saw a 1.0 per cent on-year growth in 2011.

DTZ said the global economic uncertainties dampened demand for luxury condominiums, dragging prices down by 0.7 per cent in the fourth quarter.

“As a larger proportion of purchases in the luxury segment are by foreigners who are now subject to the Additional Buyer’s Stamp Duty (ABSD) of 10 per cent, this segment is expected to see a sharper fall in prices than other segments in 2012,” said Ms Chua Chor Hoon, head of Asia Pacific Research, DTZ.

Home prices in the prime freehold segment also took a hit, growing only 4.6 per cent on-year, compared to 8.3 per cent in 2010.

This contrasted with a sharp 12.8 per cent on-year increase in resale prices of freehold landed homes in the prime districts. Leasehold landed homes in suburban areas also rose 12.4 per cent last year.

Rents, meanwhile, were also higher in 2011, led by condominium rents which moved up by 8.9 per cent due to demand from foreign professionals with higher housing allowances.

However, rents for luxury condominiums only grew 1.3 per cent on-year.

From January to November, private home sales of 15,393 units in 2011 already outpaced the 15,288 units sold in the same period in 2010.

Volume is expected to fall in December and carry through in 2012 following the property cooling measures.

“Historically, significant price falls have been triggered by external events that affect the economy rather than cooling measures. The projected economic slowdown in 2012 will thus have a more significant impact on buyer sentiment and consequently on demand and prices,” said DTZ’s Ms Chua.

Overall, DTZ expects a take-up rate of 16,000 for 2012, slightly lower than the 16,292 units sold in 2010.

- CNA/al

Source : Channel NewsAsia – MediaCorp Pte Ltd Copyright

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

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

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

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

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

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