HDB resale flat prices - already at record high levels - are likely to continue rising this year, said National Development Minister Mah Bow Tan on Wednesday.
'The flat prices would probably go up ... by 1 per cent, 2 per cent,' said Mr Mah. 'It will just keep on going up if the economy recovers as people expect, and if confidence returns but affordability will always be there.'
HDB resale prices rose 1.4 per cent in the second quarter to a record high.
By Joyce Teo
Extracted from The Straits Times
02 Sep 2009
Thursday, September 3, 2009
Sunday, August 9, 2009
Demand for private homes on an upward curve
(SINGAPORE) Even as Urban Redevelopment Authority yesterday launched the tender for a plum 99-year leasehold site for condo development at Dakota Crescent, expectations are running high that developers will trigger the launch of more housing sites from the government's reserve list in the coming months.
This is against a backdrop of strong sales for mass-market projects, the latest being the Optima condo next to Tanah Merah MRT Station.
Mass-market home prices have risen about 10 to 20 per cent from the recent low in Q1, according to property consultants.
One concern is whether the market is running out of supply of mass-market condos and whether this will set the base for further price hikes.
The current pipeline has about 7,500 mass market homes yet to be launched on sites sold in the past, according to CB Richard Ellis data. These include three 99-year leasehold condo projects in Toa Payoh, Yishun and West Coast Crescent on earlier sites sold by the government.
The rest include 99-year projects by Hong Leong Group on a large historic landbank in Pasir Ris, projects by Far East Organization and Frasers Centrepoint on remaining land on the former Waterfront site along Bedok Reservoir, and a host of freehold projects by various developers in places like West Coast Road, Tampines Road, Yio Chu Kang Road, Toh Tuck Drive and Hillview Avenue.
After the recent launch of two housing sites (at Dakota Crescent and Chestnut Avenue) from the government reserve list following successful applications by developers, this list still has sites that can potentially generate a total of about 5,800 private homes. Some are attractively located near MRT stations in places like Bishan, Serangoon Ave 3, Bartley Road and Bedok. The last two sites will be ready for application by developers in November and December respectively.
The government could add more sites to its reserve list for first-half 2010, or even reintroduce the confirmed list, where sites are launched according to a prestated schedule, unlike reserve list sites, which are launched for tender only upon successful application by developers undertaking to offer minimum bids acceptable to the state.
It will take some time for site launches to translate to new condo launches. However, ensuring there's enough supply should not be a nagging issue.
But beyond looking at supply, one needs to also understand why demand has spiked since February. Developers have sold a total of 7,250 private homes in the first six months of 2009 - exceeding the 4,264 units sold in the whole of last year. Some consultants are predicting the number for the whole of this year may reach the record of 14,811 units set in 2007.
The current home buying wave began in the mass-market segment, then permeated upwards. Some of the buying represents pent-up demand. People are also taking the opportunity to pick up their dream home at current prices - which despite recent price hikes are still below peak-2007 levels - for fear of missing the boat as they did during the property run-up in 2006 and 2007.
Property speculators are also busying themselves.
But other factors are also at play that are creating a paradigm shift which could suggest that 'natural demand' henceforth may be higher than the average 8,000 private homes developers sold annually over the past 10 years (between 1999 and 2008).
These include an increase in immigration into Singapore over the past few years as it embraces foreign talent and wealth and a gradual 'internationalisation' of the Singapore property market as foreigners are drawn by Singapore's emergence as a global city.
Another point to consider when understanding why there could be higher natural demand for private homes is to look at the public housing segment.
The Housing & Development Board's construction of new flats has slowed down over the years. During 1981-85, an average of about 37,000-plus flats were built by HDB per year. In 1998 too, some 36,600 new flats were built. Later in the face of a supply glut, HDB scaled back building new flats; the figure eased to about 10,000 units a year completed in 2002 and 2003, and fell further to about 5,000 units completed in 2007.
A smaller supply of new HDB homes has made it easier for HDB residents to sell their flats in the resale market and upgrade to entry-level private homes in the suburbs.
Incomes of Singaporeans have grown over the decade, making more aspire to own a private home.
The low-interest rate policies adopted by governments around the world to cope with the global financial meltdown have translated to near-zero returns on fixed deposits and low mortgage rates - making property an attractive investment option. The strong distaste for structured financial products post-Lehman has made property more sought-after.
The home-buying frenzy of late has also come about due to a confluence of two important factors - a recognition of value by buyers (following price chops by developers in Q1) and an improvement in sentiment.
More value-recognition will emerge for real estate as Singapore's railway network is doubled to 278 km by 2020, boosting connectivity and cutting travel time from homes in locations once called suburbs to the city.
Perhaps we should not be too surprised if strong demand for private residential properties persists. Of course, if another international disaster takes place and foreign property investors again exit, demand could dive, like it did last year during the global financial crisis.
Spikes and dips in home buying and property prices could become more pronounced by virtue of Singapore's real estate market becoming more international.
By Kalpana Rashiwala
Extracted from The Business Times
7 August 2009
This is against a backdrop of strong sales for mass-market projects, the latest being the Optima condo next to Tanah Merah MRT Station.
Mass-market home prices have risen about 10 to 20 per cent from the recent low in Q1, according to property consultants.
One concern is whether the market is running out of supply of mass-market condos and whether this will set the base for further price hikes.
The current pipeline has about 7,500 mass market homes yet to be launched on sites sold in the past, according to CB Richard Ellis data. These include three 99-year leasehold condo projects in Toa Payoh, Yishun and West Coast Crescent on earlier sites sold by the government.
The rest include 99-year projects by Hong Leong Group on a large historic landbank in Pasir Ris, projects by Far East Organization and Frasers Centrepoint on remaining land on the former Waterfront site along Bedok Reservoir, and a host of freehold projects by various developers in places like West Coast Road, Tampines Road, Yio Chu Kang Road, Toh Tuck Drive and Hillview Avenue.
After the recent launch of two housing sites (at Dakota Crescent and Chestnut Avenue) from the government reserve list following successful applications by developers, this list still has sites that can potentially generate a total of about 5,800 private homes. Some are attractively located near MRT stations in places like Bishan, Serangoon Ave 3, Bartley Road and Bedok. The last two sites will be ready for application by developers in November and December respectively.
The government could add more sites to its reserve list for first-half 2010, or even reintroduce the confirmed list, where sites are launched according to a prestated schedule, unlike reserve list sites, which are launched for tender only upon successful application by developers undertaking to offer minimum bids acceptable to the state.
It will take some time for site launches to translate to new condo launches. However, ensuring there's enough supply should not be a nagging issue.
But beyond looking at supply, one needs to also understand why demand has spiked since February. Developers have sold a total of 7,250 private homes in the first six months of 2009 - exceeding the 4,264 units sold in the whole of last year. Some consultants are predicting the number for the whole of this year may reach the record of 14,811 units set in 2007.
The current home buying wave began in the mass-market segment, then permeated upwards. Some of the buying represents pent-up demand. People are also taking the opportunity to pick up their dream home at current prices - which despite recent price hikes are still below peak-2007 levels - for fear of missing the boat as they did during the property run-up in 2006 and 2007.
Property speculators are also busying themselves.
But other factors are also at play that are creating a paradigm shift which could suggest that 'natural demand' henceforth may be higher than the average 8,000 private homes developers sold annually over the past 10 years (between 1999 and 2008).
These include an increase in immigration into Singapore over the past few years as it embraces foreign talent and wealth and a gradual 'internationalisation' of the Singapore property market as foreigners are drawn by Singapore's emergence as a global city.
Another point to consider when understanding why there could be higher natural demand for private homes is to look at the public housing segment.
The Housing & Development Board's construction of new flats has slowed down over the years. During 1981-85, an average of about 37,000-plus flats were built by HDB per year. In 1998 too, some 36,600 new flats were built. Later in the face of a supply glut, HDB scaled back building new flats; the figure eased to about 10,000 units a year completed in 2002 and 2003, and fell further to about 5,000 units completed in 2007.
A smaller supply of new HDB homes has made it easier for HDB residents to sell their flats in the resale market and upgrade to entry-level private homes in the suburbs.
Incomes of Singaporeans have grown over the decade, making more aspire to own a private home.
The low-interest rate policies adopted by governments around the world to cope with the global financial meltdown have translated to near-zero returns on fixed deposits and low mortgage rates - making property an attractive investment option. The strong distaste for structured financial products post-Lehman has made property more sought-after.
The home-buying frenzy of late has also come about due to a confluence of two important factors - a recognition of value by buyers (following price chops by developers in Q1) and an improvement in sentiment.
More value-recognition will emerge for real estate as Singapore's railway network is doubled to 278 km by 2020, boosting connectivity and cutting travel time from homes in locations once called suburbs to the city.
Perhaps we should not be too surprised if strong demand for private residential properties persists. Of course, if another international disaster takes place and foreign property investors again exit, demand could dive, like it did last year during the global financial crisis.
Spikes and dips in home buying and property prices could become more pronounced by virtue of Singapore's real estate market becoming more international.
By Kalpana Rashiwala
Extracted from The Business Times
7 August 2009
Friday, July 31, 2009
Suburban condos drawing buyers
IN THE latest sign of the buoyant suburban property market, home hunters in Ang Mo Kio have been submitting cheques to buy homes at prices rarely seen outside Singapore's prime central areas.
Buyers are said to be paying prices starting from $1,150 per sq ft (psf) for the upcoming 329-unit Centro Residences by Far East Organization.
This means two-bedroom units cost more than $800,000, while three-bedroom apartments will cost $1.1 million and above.
Consultants said the Centro Residences is one of the few 99-year leasehold projects in the suburban areas that has crossed this level.
Jones Lang LaSalle's head of South-east Asia research, Dr Chua Yang Liang, said he was 'a bit shocked' by the pricing.
'I'm afraid at this moment there's a lot of euphoria, so there will be demand for this project even at this price,' he said.
Plus points for the project include its location in a popular mature estate right next to the Ang Mo Kio MRT station, as well as its proximity to international schools.
But Dr Chua voiced concern over the 'long-term sustainability of this pricing', saying that upgraders may not be able to afford it.
At another suburban condo, Optima, located next to the Tanah Merah MRT station, more than 40 people lined up yesterday afternoon to stake claim on the 297 units for sale, even before the showflat opens on Friday.
Many of those in the Optima queue were property agents holding places for their clients with blank cheques in hand.
However, some in the queue were possibly property agents lining up with a view to buying properties for their own investment purposes.
Pricing for the 99-year leasehold project has not even been finalised, according to developer TID, a tie-up between Hong Leong Group and Japan's Mitsui Fudosan.
Agents estimate that prices will be about $750 to $850 psf, with two-bedroom units going for about $600,000 to $700,000 and three-bedroom units from $700,000 to over $800,000.
They say buyers are so keen on the units that they have submitted blank cheques for them to fill in the amounts once the price list is available - a fairly common tactic in a boom market, and one that has resurfaced in recent weeks.
TID was alerted to the existence of the queue at about 5pm yesterday. At 10pm last night, TID representatives told those in the queue to go home, saying that the queue would not be recognised. The queue soon dispersed.
'We're not going to sell anything until Friday,' a Hong Leong spokesman had said earlier. A preview would be held for Hong Leong and TID staff on Thursday.
Last week, Hong Leong said in a press release that more than 1,000 inquiries have come in for Optima, which it said was 'the last condominium site available in the vicinity' of the Tanah Merah area.
With developers starting to tentatively raise prices for projects on the back of strong demand, Jones Lang LaSalle's Dr Chua warned that these price increases 'need to be supported by economic growth or wage growth in the long term', or they may lead to 'excess inflation' and a property bubble.
Far East will start its preview of Centro tomorrow and will release two-bedroom and three-bedroom units. Agents say some buyers have already written cheques to register their interest.
One reason for the relatively high price of Centro is the cost of the land. Far East bought the state-owned site in September 2007 for $601 psf of potential gross floor area, a record price for suburban condo land.
Over the weekend, suburban condos continued to do fairly well. Far East sold another 59 units at its Waterfront Key condo in Bedok Reservoir, bringing the total number of units sold to 278. The average price was $735 psf.
UOL Group also sold 70 units at Meadows@Peirce in Upper Thomson over the weekend, after selling 180 units on the first day of sales on Friday. The buyers, mainly Singaporeans, paid an average of $880 psf.
But weekend sales were slower at mid-tier projects closer to the city. Far East sold five units of Silversea in Amber Road at an average price of $1,380 psf, for a total of 59 units sold so far. At its Vista Residences in Thomson, seven more units were sold at prices starting from $1,100 psf, bringing total units sold to 144.
By Fiona Chan
Extracted from The Straits Times
28 July 2009
Buyers are said to be paying prices starting from $1,150 per sq ft (psf) for the upcoming 329-unit Centro Residences by Far East Organization.
This means two-bedroom units cost more than $800,000, while three-bedroom apartments will cost $1.1 million and above.
Consultants said the Centro Residences is one of the few 99-year leasehold projects in the suburban areas that has crossed this level.
Jones Lang LaSalle's head of South-east Asia research, Dr Chua Yang Liang, said he was 'a bit shocked' by the pricing.
'I'm afraid at this moment there's a lot of euphoria, so there will be demand for this project even at this price,' he said.
Plus points for the project include its location in a popular mature estate right next to the Ang Mo Kio MRT station, as well as its proximity to international schools.
But Dr Chua voiced concern over the 'long-term sustainability of this pricing', saying that upgraders may not be able to afford it.
At another suburban condo, Optima, located next to the Tanah Merah MRT station, more than 40 people lined up yesterday afternoon to stake claim on the 297 units for sale, even before the showflat opens on Friday.
Many of those in the Optima queue were property agents holding places for their clients with blank cheques in hand.
However, some in the queue were possibly property agents lining up with a view to buying properties for their own investment purposes.
Pricing for the 99-year leasehold project has not even been finalised, according to developer TID, a tie-up between Hong Leong Group and Japan's Mitsui Fudosan.
Agents estimate that prices will be about $750 to $850 psf, with two-bedroom units going for about $600,000 to $700,000 and three-bedroom units from $700,000 to over $800,000.
They say buyers are so keen on the units that they have submitted blank cheques for them to fill in the amounts once the price list is available - a fairly common tactic in a boom market, and one that has resurfaced in recent weeks.
TID was alerted to the existence of the queue at about 5pm yesterday. At 10pm last night, TID representatives told those in the queue to go home, saying that the queue would not be recognised. The queue soon dispersed.
'We're not going to sell anything until Friday,' a Hong Leong spokesman had said earlier. A preview would be held for Hong Leong and TID staff on Thursday.
Last week, Hong Leong said in a press release that more than 1,000 inquiries have come in for Optima, which it said was 'the last condominium site available in the vicinity' of the Tanah Merah area.
With developers starting to tentatively raise prices for projects on the back of strong demand, Jones Lang LaSalle's Dr Chua warned that these price increases 'need to be supported by economic growth or wage growth in the long term', or they may lead to 'excess inflation' and a property bubble.
Far East will start its preview of Centro tomorrow and will release two-bedroom and three-bedroom units. Agents say some buyers have already written cheques to register their interest.
One reason for the relatively high price of Centro is the cost of the land. Far East bought the state-owned site in September 2007 for $601 psf of potential gross floor area, a record price for suburban condo land.
Over the weekend, suburban condos continued to do fairly well. Far East sold another 59 units at its Waterfront Key condo in Bedok Reservoir, bringing the total number of units sold to 278. The average price was $735 psf.
UOL Group also sold 70 units at Meadows@Peirce in Upper Thomson over the weekend, after selling 180 units on the first day of sales on Friday. The buyers, mainly Singaporeans, paid an average of $880 psf.
But weekend sales were slower at mid-tier projects closer to the city. Far East sold five units of Silversea in Amber Road at an average price of $1,380 psf, for a total of 59 units sold so far. At its Vista Residences in Thomson, seven more units were sold at prices starting from $1,100 psf, bringing total units sold to 144.
By Fiona Chan
Extracted from The Straits Times
28 July 2009
No property bubble forming
PROPERTY developers are enjoying the surge in interest from buyers but they do not believe that speculation has reached a stage where the Government needs to step in.
They also maintain that the prevailing economic conditions will begin to cool the buying frenzy and stop a bubble forming in its tracks.
'It's not a bubble, it's just a blister after the pain we experienced in the global financial crisis and it comes before a recovery,' said Cushman and Wakefield managing director Donald Han.
But some developers and industry insiders acknowledge that the comments from National Development Minister Mah Bow Tan this week are timely. Mr Mah cautioned about a bubble forming, hinted at intervention if speculation got out of hand and advised buyers to tread carefully and not charge headlong into the market.
'The Government's message is quite clear: Don't rush as there is a lot of supply coming onstream,' said Sing Holdings chief executive Lee Sze Hao.
A property consultant who declined to be named told The Straits Times: 'There shouldn't be panic-buying. Buyers may pull back a bit, not knowing whether the Government will step in or not. The fact is that the Government has opened its mouth; it can do things indirectly.
Many feel the hype, which centres on several condominiums, will likely be short-lived amid a recession.
The market is seeing cashed-up investors ready to spend, which is different from speculators looking to buy another apartment to make a quick buck, he said. The Government will do something only if there is a queue at every project and every unit is snapped up, he added.
Buyers have certainly been out in droves visiting the new showflats and buying new homes off the plan. Queues have been forming and developers have raised prices in response.
The interest was evident last night at Tanah Merah, where crowds gathered at the 297-unit Optima showflat although the public launch is scheduled for today. The response was so strong that the developer TID held a ballot at midnight for about 300 genuine buyers who were queueing outside the showflat earlier so they did not have to stay overnight.
By Joyce Teo
Extracted from The Straits Times
31 July 2009
They also maintain that the prevailing economic conditions will begin to cool the buying frenzy and stop a bubble forming in its tracks.
'It's not a bubble, it's just a blister after the pain we experienced in the global financial crisis and it comes before a recovery,' said Cushman and Wakefield managing director Donald Han.
But some developers and industry insiders acknowledge that the comments from National Development Minister Mah Bow Tan this week are timely. Mr Mah cautioned about a bubble forming, hinted at intervention if speculation got out of hand and advised buyers to tread carefully and not charge headlong into the market.
'The Government's message is quite clear: Don't rush as there is a lot of supply coming onstream,' said Sing Holdings chief executive Lee Sze Hao.
A property consultant who declined to be named told The Straits Times: 'There shouldn't be panic-buying. Buyers may pull back a bit, not knowing whether the Government will step in or not. The fact is that the Government has opened its mouth; it can do things indirectly.
Many feel the hype, which centres on several condominiums, will likely be short-lived amid a recession.
The market is seeing cashed-up investors ready to spend, which is different from speculators looking to buy another apartment to make a quick buck, he said. The Government will do something only if there is a queue at every project and every unit is snapped up, he added.
Buyers have certainly been out in droves visiting the new showflats and buying new homes off the plan. Queues have been forming and developers have raised prices in response.
The interest was evident last night at Tanah Merah, where crowds gathered at the 297-unit Optima showflat although the public launch is scheduled for today. The response was so strong that the developer TID held a ballot at midnight for about 300 genuine buyers who were queueing outside the showflat earlier so they did not have to stay overnight.
By Joyce Teo
Extracted from The Straits Times
31 July 2009
Tuesday, July 28, 2009
Housing market shows classic recovery signs
Three classic signs of a recovery have emerged in the Singapore housing market. Subsales and foreign buying have accelerated while the share of HDB upgraders in the private home buying pie has declined.
The number of subsale deals for private homes has more than doubled from 414 in Q1 this year to 1,041 in Q2 and the median subsale price has also risen 18.1 per cent over the same period to $959 psf, based on Jones Lang LaSalle's analysis of caveats lodged for private homes captured by URA's Realis system as at July 17.
HDB upgraders' share of total caveats, which had been increasing for six consecutive quarters since Q4 2007, slipped in Q2 this year as purchases by those with private addresses rose at a faster clip. This could be because Q2 saw more mid and mid-upper projects launched, compared with predominantly mass-market launches catering to upgraders in Q1, says Knight Frank chairman Tan Tiong Cheng.
The number of caveats for private homes lodged by foreigners, including PRs, nearly tripled - from 496 in Q1 to 1,418 in Q2. The increase outpaced a 103.9 per cent rise in Singaporean buying. As a result, foreigners' share of private home buying rose from 15.5 per cent in Q1 to 20.5 per cent in Q2. The most popular districts among these buyers were Districts 9, 10 and 15 while the more sought-after projects included Rivergate and Martin Place Residences (district 9), The Arte (district 11), The Lakeshore in Jurong and Mi Casa in Choa Chu Kang
'Singapore properties are more affordable today than they were during the peak. Foreigners, like local buyers, are finding value in the local property market and looking at the upside potential,' says JLL's head of South-east Asia and Singapore research Chua Yang Liang, adding that the positive economic growth in China, India and Indonesia had nudged their citizens into investing here. He also observed a rise in purchases by Myanmar buyers.
Malaysians were the top buyers of homes in Singapore in Q2, making up 29.3 per cent of total caveats lodged by foreigners, followed by Indonesians (20.3 per cent share), mainland Chinese (14.9 per cent) and Indians (12.1 per cent).
Foreigners were drawn to prime district projects like Martin Place Residences in the primary market and Rivergate and Seaview in the secondary market in Q2, said CB Richard Ellis executive director (residential) Joseph Tan.
JLL's head of residential Jacqueline Wong has seen more high networth individuals from India, Hong Kong and China looking to make their maiden property investments here. 'They are not PRs and are looking at apartments 3,000 sq ft and above in the Orchard Road belt. They're drawn by value; prices in the luxury sector are today about 15 to 25 per cent below the 2007 peak levels,' she said.
Going ahead, foreign buying is expected to gain momentum, if the property recovery and regional economic upturn continue.
In the subsale market, the most popular projects transacted in Q2 were Rivergate (95 units), The Centris (46 units) and City Square Residences (45 units). Rivergate and Phase 2 of City Square Residences obtained Temporary Occupation Permit (TOP) in March, and Centris, this month.
The median subsale price in Rivergate has risen from $1,200 psf in Q1 to $1,400 psf in Q2 and that for The Centris increased from $587.50 psf to $625 psf. City Square Residences' median subsale price rose from $791 psf to $893 psf and that for The Sail @ Marina Bay, from $1,321 to $1,623 psf.
Subsales are secondary market deals in projects that have yet to obtain Certificate of Statutory Completion. This could be three to 12 months after the project gets TOP. Market watchers note that there's typically more sales activity around the time that projects receive TOP.
'There are buyers who like to have the finished product because it's ready for immediate occupation or renting out,' says Knight Frank chairman Tan Tiong Cheng. Sellers who bought for investment, especially on Deferred Payment Scheme, can also cash out.
Analysts reckon that with a significant number of private homes heading for completion in the next 18 months, more subsale transactions can be expected.
Buyers with HDB addresses accounted for 44 per cent of total caveats lodged for private homes in Q2, down from the 56 per cent share in the preceding quarter.
The fall in proportion of purchases by HDB ugpraders was due to a bigger Q-on-Q jump of 174 per cent in Q2 in caveats lodged by those with private addresses, compared with a 70.8 per cent increase in caveats lodged by those with HDB addresses.
The most popular projects among HDB upgraders in Q2 were Mi Casa, with 145 caveats at a median price of $630 psf, followed by Double Bay Residences (106 units changed hands at a median price of $665 psf) and The Arte, (87 units transacted at $899 psf median price).
The share of HDB upgraders may slip further in coming months as the proportion of mass-market developments among project launches lessens as developers release more upper-end condos.
By Kalpana Rashiwala
Extracted From The Business Times
25 July 2009
The number of subsale deals for private homes has more than doubled from 414 in Q1 this year to 1,041 in Q2 and the median subsale price has also risen 18.1 per cent over the same period to $959 psf, based on Jones Lang LaSalle's analysis of caveats lodged for private homes captured by URA's Realis system as at July 17.
HDB upgraders' share of total caveats, which had been increasing for six consecutive quarters since Q4 2007, slipped in Q2 this year as purchases by those with private addresses rose at a faster clip. This could be because Q2 saw more mid and mid-upper projects launched, compared with predominantly mass-market launches catering to upgraders in Q1, says Knight Frank chairman Tan Tiong Cheng.
The number of caveats for private homes lodged by foreigners, including PRs, nearly tripled - from 496 in Q1 to 1,418 in Q2. The increase outpaced a 103.9 per cent rise in Singaporean buying. As a result, foreigners' share of private home buying rose from 15.5 per cent in Q1 to 20.5 per cent in Q2. The most popular districts among these buyers were Districts 9, 10 and 15 while the more sought-after projects included Rivergate and Martin Place Residences (district 9), The Arte (district 11), The Lakeshore in Jurong and Mi Casa in Choa Chu Kang
'Singapore properties are more affordable today than they were during the peak. Foreigners, like local buyers, are finding value in the local property market and looking at the upside potential,' says JLL's head of South-east Asia and Singapore research Chua Yang Liang, adding that the positive economic growth in China, India and Indonesia had nudged their citizens into investing here. He also observed a rise in purchases by Myanmar buyers.
Malaysians were the top buyers of homes in Singapore in Q2, making up 29.3 per cent of total caveats lodged by foreigners, followed by Indonesians (20.3 per cent share), mainland Chinese (14.9 per cent) and Indians (12.1 per cent).
Foreigners were drawn to prime district projects like Martin Place Residences in the primary market and Rivergate and Seaview in the secondary market in Q2, said CB Richard Ellis executive director (residential) Joseph Tan.
JLL's head of residential Jacqueline Wong has seen more high networth individuals from India, Hong Kong and China looking to make their maiden property investments here. 'They are not PRs and are looking at apartments 3,000 sq ft and above in the Orchard Road belt. They're drawn by value; prices in the luxury sector are today about 15 to 25 per cent below the 2007 peak levels,' she said.
Going ahead, foreign buying is expected to gain momentum, if the property recovery and regional economic upturn continue.
In the subsale market, the most popular projects transacted in Q2 were Rivergate (95 units), The Centris (46 units) and City Square Residences (45 units). Rivergate and Phase 2 of City Square Residences obtained Temporary Occupation Permit (TOP) in March, and Centris, this month.
The median subsale price in Rivergate has risen from $1,200 psf in Q1 to $1,400 psf in Q2 and that for The Centris increased from $587.50 psf to $625 psf. City Square Residences' median subsale price rose from $791 psf to $893 psf and that for The Sail @ Marina Bay, from $1,321 to $1,623 psf.
Subsales are secondary market deals in projects that have yet to obtain Certificate of Statutory Completion. This could be three to 12 months after the project gets TOP. Market watchers note that there's typically more sales activity around the time that projects receive TOP.
'There are buyers who like to have the finished product because it's ready for immediate occupation or renting out,' says Knight Frank chairman Tan Tiong Cheng. Sellers who bought for investment, especially on Deferred Payment Scheme, can also cash out.
Analysts reckon that with a significant number of private homes heading for completion in the next 18 months, more subsale transactions can be expected.
Buyers with HDB addresses accounted for 44 per cent of total caveats lodged for private homes in Q2, down from the 56 per cent share in the preceding quarter.
The fall in proportion of purchases by HDB ugpraders was due to a bigger Q-on-Q jump of 174 per cent in Q2 in caveats lodged by those with private addresses, compared with a 70.8 per cent increase in caveats lodged by those with HDB addresses.
The most popular projects among HDB upgraders in Q2 were Mi Casa, with 145 caveats at a median price of $630 psf, followed by Double Bay Residences (106 units changed hands at a median price of $665 psf) and The Arte, (87 units transacted at $899 psf median price).
The share of HDB upgraders may slip further in coming months as the proportion of mass-market developments among project launches lessens as developers release more upper-end condos.
By Kalpana Rashiwala
Extracted From The Business Times
25 July 2009
Mass market buyers prop up home prices
THEY were shut out of the property market during the most recent boom in 2007, when furious demand for luxury homes drove up home prices far beyond their reach.
Now, buyers of cheaper mass market homes - defined loosely as bigger HDB flats and condominiums in the suburbs - are back in the market with a vengeance
They doubled their purchases of five-room and executive HDB flats between March and June, pushing overall HDB prices up 1.4 per cent to hit a new high in the quarter, according to Housing Board (HDB) data released yesterday.
Mass market buyers also picked up four out of every 10 private homes sold, a shopping spree that resulted in twice the number of homes being sold in the second quarter than the first quarter, said the Urban Redevelopment Authority (URA). The number of resales nearly trebled while sub-sales more than doubled.
The strong demand for cheaper condos meant that while private home prices still fell 4.7 per cent in the second quarter, it was a far smaller decline than the plunge of 14.1 per cent in the first quarter.
What helped jam the brakes on the decline were suburban homes, which saw the smallest price drop in the quarter - 2.3 per cent - compared to pricier prime and city-fringe properties, which saw prices fall by double that amount.
Rents for private homes continued to fall 5.2 per cent in the quarter, though 8 per cent more leases were signed.
Consultants had actually expected prices to increase in the second quarter, as home buyers flooded back and developers started to selectively raise prices.
'Our own analysis showed that private home prices in the second quarter rose,' said DTZ's head of South-east Asia research Chua Chor Hoon. She said the price increases ranged from 3 per cent for some suburban resale homes, to 11 per cent for homes in the prime districts.
In response to queries, the URA said that while prices have risen in some projects, there were still other developments that saw prices fall in the quarter.
But private home prices are likely to show a definite pickup from the third quarter, consultants say. 'The second quarter will possibly be the last quarter of price declines,' said Ms Tay Huey Ying, director of research and advisory at property firm Colliers International.
'If developers remain cautious and tread carefully with price increases, this momentum in the market could continue. But if developers are impatient and jack up prices too quickly, that may hurt demand as buyers are still price-sensitive.'
Mr Nicholas Mak, a long-time property consultant, said he expects overall prices to show an increase in the second half of this year. His reasons: the recovery in global stock markets, relief buying due to a shorter-than-expected recession, and low interest rates that make property purchases look more attractive.
The outlook has also been boosted by the fact that demand is no longer restricted to the mass market, he said. In recent months, more buyers have been keen on mid-tier and high-end condos such as The Arte at Thomson or One Devonshire in Somerset. Even at suburban condos, buyers seem to be opting for larger, more expensive units. Yesterday, developer UOL Group sold 180 units in a single day at Meadows@Peirce in Upper Thomson.
While the project offers smaller units from 517 sq ft in size, most units sold had at least three bedrooms and were priced at $1 million and above, said UOL's chief operating officer Liam Wee Sin.
The improved economic outlook also meant that offices and shops also saw slower declines in prices and rentals in the second quarter. Office prices fell 3.9 per cent, while rents fell 7.7 per cent.
But these numbers are unlikely to turn positive soon as recent retrenchment exercises dampen the office sector, said Mr Li Hiaw Ho, executive director of CBRE Research. He was more upbeat about shopping malls, as there is still 'healthy demand' for existing shop space. Shop rents eased 2 per cent in the second quarter and prices fell just 1.4 per cent.
By Fiona Chan
Extracted From The Straits Times
27 July 2009
Now, buyers of cheaper mass market homes - defined loosely as bigger HDB flats and condominiums in the suburbs - are back in the market with a vengeance
They doubled their purchases of five-room and executive HDB flats between March and June, pushing overall HDB prices up 1.4 per cent to hit a new high in the quarter, according to Housing Board (HDB) data released yesterday.
Mass market buyers also picked up four out of every 10 private homes sold, a shopping spree that resulted in twice the number of homes being sold in the second quarter than the first quarter, said the Urban Redevelopment Authority (URA). The number of resales nearly trebled while sub-sales more than doubled.
The strong demand for cheaper condos meant that while private home prices still fell 4.7 per cent in the second quarter, it was a far smaller decline than the plunge of 14.1 per cent in the first quarter.
What helped jam the brakes on the decline were suburban homes, which saw the smallest price drop in the quarter - 2.3 per cent - compared to pricier prime and city-fringe properties, which saw prices fall by double that amount.
Rents for private homes continued to fall 5.2 per cent in the quarter, though 8 per cent more leases were signed.
Consultants had actually expected prices to increase in the second quarter, as home buyers flooded back and developers started to selectively raise prices.
'Our own analysis showed that private home prices in the second quarter rose,' said DTZ's head of South-east Asia research Chua Chor Hoon. She said the price increases ranged from 3 per cent for some suburban resale homes, to 11 per cent for homes in the prime districts.
In response to queries, the URA said that while prices have risen in some projects, there were still other developments that saw prices fall in the quarter.
But private home prices are likely to show a definite pickup from the third quarter, consultants say. 'The second quarter will possibly be the last quarter of price declines,' said Ms Tay Huey Ying, director of research and advisory at property firm Colliers International.
'If developers remain cautious and tread carefully with price increases, this momentum in the market could continue. But if developers are impatient and jack up prices too quickly, that may hurt demand as buyers are still price-sensitive.'
Mr Nicholas Mak, a long-time property consultant, said he expects overall prices to show an increase in the second half of this year. His reasons: the recovery in global stock markets, relief buying due to a shorter-than-expected recession, and low interest rates that make property purchases look more attractive.
The outlook has also been boosted by the fact that demand is no longer restricted to the mass market, he said. In recent months, more buyers have been keen on mid-tier and high-end condos such as The Arte at Thomson or One Devonshire in Somerset. Even at suburban condos, buyers seem to be opting for larger, more expensive units. Yesterday, developer UOL Group sold 180 units in a single day at Meadows@Peirce in Upper Thomson.
While the project offers smaller units from 517 sq ft in size, most units sold had at least three bedrooms and were priced at $1 million and above, said UOL's chief operating officer Liam Wee Sin.
The improved economic outlook also meant that offices and shops also saw slower declines in prices and rentals in the second quarter. Office prices fell 3.9 per cent, while rents fell 7.7 per cent.
But these numbers are unlikely to turn positive soon as recent retrenchment exercises dampen the office sector, said Mr Li Hiaw Ho, executive director of CBRE Research. He was more upbeat about shopping malls, as there is still 'healthy demand' for existing shop space. Shop rents eased 2 per cent in the second quarter and prices fell just 1.4 per cent.
By Fiona Chan
Extracted From The Straits Times
27 July 2009
HDB prices hit record high
PRICES of Housing Board flats have reached a historical record, rising 1.4 per cent in the second quarter this year, reversing a first-quarter dip of 0.8 per cent.
Fresh data released from the HDB on Friday shows the resale price index rising to 140.2 - beating the previous record set in the fourth quarter of last year when it hit just over 139.
The figures have come in slightly higher than flash estimates released earlier this month which showed that prices rose 1.2 per cent.
6,000 BTO flats
The board said it plans to launch another 6,000 units under its build-to-order scheme in the next six months, of which some 2,400 units would be three-room and smaller flats.
The bulk of new flat supply would be in Punggol.
To date, the HDB has launched about 2,000 new flats in Punggol, Sengkang and Woodlands in 2009 to ramp up supply.
By Jessica Cheam
Extracted from The Straits Times
24 July 2009
Fresh data released from the HDB on Friday shows the resale price index rising to 140.2 - beating the previous record set in the fourth quarter of last year when it hit just over 139.
The figures have come in slightly higher than flash estimates released earlier this month which showed that prices rose 1.2 per cent.
6,000 BTO flats
The board said it plans to launch another 6,000 units under its build-to-order scheme in the next six months, of which some 2,400 units would be three-room and smaller flats.
The bulk of new flat supply would be in Punggol.
To date, the HDB has launched about 2,000 new flats in Punggol, Sengkang and Woodlands in 2009 to ramp up supply.
By Jessica Cheam
Extracted from The Straits Times
24 July 2009
HDB flats not for making money
Home-seekers may be snapping up HDB flats amid this recession as well, but don't dream of making a killing by investing in a public flat.
For one thing, HDB flats are meant to provide basic housing for the masses, which means they are not investment-grade properties.
'If you're looking to make capital appreciation or good rental income, then it is still the private condominiums because people who rent look for facilities,' said Mr Eugene Lim, associate director at property firm ERA Asia Pacific.
'The highest you can fetch in rent for an HDB flat in a good location is probably $2,000 plus. Any higher, people will go to condos,' he added.
HDB figures show that a three-room flat in Ang Mo Kio, Jurong West or Serangoon typically fetched rent of about $1,400 a month in the second quarter of this year.
Forget about making huge gains from selling your HDB property either.
'HDB is not a market that swings very widely. It is a gradual market,' said Mr Lim.
Strict HDB rules make it hard for anyone to profit from renting or selling his flat.
The board imposes a minimum occupation period on a home owner before he can sell his flat on the open market. This period depends on the mode of purchase, financing and the flat type.
Those who bought subsidised flats from the HDB would need to hold on to them for five years.
A flat owner who bought a resale flat without subsidy can sell it after 21/2 years if he has taken a loan from the HDB.
If he has not, or has taken a loan from a bank to finance his purchase, he can sell his flat after one year.
When it comes to renting out flats, those who bought resale flats without a housing grant from the government are allowed to sublet their entire flat only after three years of occupation.
Those who bought their flats from the HDB or from the open market with a housing grant will have to occupy their flats for at least five years before they are allowed to sublet their entire flat.
To sublet the whole flat, prior approval from the HDB is needed, and it is usually given if you have already fulfilled the minimum occupation period requirement.
Home owners do not need to seek permission from the HDB if they want to sublet just rooms in their flat, but they must continue to live in the flat during the period of subletting.
Only those who own a three-room or bigger flat are allowed to sublet a room.
Since the beginning of this year, the HDB has taken action against 12 flat owners who sublet their entire flat without prior approval. Last year, it caught 28 such flat owners.
It is understood that some got away with a warning and some were fined, but the most severe penalty could be having your flat taken away by the HDB.
The agency relies on tip-offs from the community and combs through the classifieds section of newspapers to sniff out those who illegally sublet their flats.
It also conducts half-yearly flat inspections for approved subletting cases.
Subletting rules for entire flats have been gradually relaxed since 2003 to allow flat owners to make some supplementary income and provide more rental options to those who do not own a home.
The maximum number of subtenants allowed per flat is four persons for one- and two-room flats, six persons for three-room flats, and eight persons for four-room and bigger flats.
Flat owners who own a private property can sublet their flat if they have met the minimum occupation period - three years for non-subsidised resale flats and five years for subsidised flats bought from the HDB.
But again, they must get written approval from the HDB first.
By Tan Dawn Wei
Extracted From The Straits Times
28 July 2009
For one thing, HDB flats are meant to provide basic housing for the masses, which means they are not investment-grade properties.
'If you're looking to make capital appreciation or good rental income, then it is still the private condominiums because people who rent look for facilities,' said Mr Eugene Lim, associate director at property firm ERA Asia Pacific.
'The highest you can fetch in rent for an HDB flat in a good location is probably $2,000 plus. Any higher, people will go to condos,' he added.
HDB figures show that a three-room flat in Ang Mo Kio, Jurong West or Serangoon typically fetched rent of about $1,400 a month in the second quarter of this year.
Forget about making huge gains from selling your HDB property either.
'HDB is not a market that swings very widely. It is a gradual market,' said Mr Lim.
Strict HDB rules make it hard for anyone to profit from renting or selling his flat.
The board imposes a minimum occupation period on a home owner before he can sell his flat on the open market. This period depends on the mode of purchase, financing and the flat type.
Those who bought subsidised flats from the HDB would need to hold on to them for five years.
A flat owner who bought a resale flat without subsidy can sell it after 21/2 years if he has taken a loan from the HDB.
If he has not, or has taken a loan from a bank to finance his purchase, he can sell his flat after one year.
When it comes to renting out flats, those who bought resale flats without a housing grant from the government are allowed to sublet their entire flat only after three years of occupation.
Those who bought their flats from the HDB or from the open market with a housing grant will have to occupy their flats for at least five years before they are allowed to sublet their entire flat.
To sublet the whole flat, prior approval from the HDB is needed, and it is usually given if you have already fulfilled the minimum occupation period requirement.
Home owners do not need to seek permission from the HDB if they want to sublet just rooms in their flat, but they must continue to live in the flat during the period of subletting.
Only those who own a three-room or bigger flat are allowed to sublet a room.
Since the beginning of this year, the HDB has taken action against 12 flat owners who sublet their entire flat without prior approval. Last year, it caught 28 such flat owners.
It is understood that some got away with a warning and some were fined, but the most severe penalty could be having your flat taken away by the HDB.
The agency relies on tip-offs from the community and combs through the classifieds section of newspapers to sniff out those who illegally sublet their flats.
It also conducts half-yearly flat inspections for approved subletting cases.
Subletting rules for entire flats have been gradually relaxed since 2003 to allow flat owners to make some supplementary income and provide more rental options to those who do not own a home.
The maximum number of subtenants allowed per flat is four persons for one- and two-room flats, six persons for three-room flats, and eight persons for four-room and bigger flats.
Flat owners who own a private property can sublet their flat if they have met the minimum occupation period - three years for non-subsidised resale flats and five years for subsidised flats bought from the HDB.
But again, they must get written approval from the HDB first.
By Tan Dawn Wei
Extracted From The Straits Times
28 July 2009
Wednesday, July 15, 2009
Record homes sales in June
DEVELOPERS sold a whopping 1,825 units of new homes in June, up from an already-high 1,673 units in May.
The monthly take-up has surpassed the boom-time high of 1,731 units recorded in August 2007.
Data released by the Urban Redevelopment Authority on Wednesday also showed that developers launched 1,637 units last month, up from 1,162 units in May.
Sentiment improved considerably in June, leading many to jump into the market.
The top sellers in June were 8@Woodleigh in Woodleigh Close, One Devonshire in Devonshire Road and Vista Residences in Jalan Datoh.
Among them, 8@Woodleigh stands out for having sold out all 330 units within days. The project achieved a median price of $804 psf.
Also, One Devonshire is a prime project that managed to attract buyers for 146 units out of 152 units released. The median price achieved was at $1771 psf.
By Joyce Teo(Property Correspondent)
Extracted from The Straits Times
15 July 2009
The monthly take-up has surpassed the boom-time high of 1,731 units recorded in August 2007.
Data released by the Urban Redevelopment Authority on Wednesday also showed that developers launched 1,637 units last month, up from 1,162 units in May.
Sentiment improved considerably in June, leading many to jump into the market.
The top sellers in June were 8@Woodleigh in Woodleigh Close, One Devonshire in Devonshire Road and Vista Residences in Jalan Datoh.
Among them, 8@Woodleigh stands out for having sold out all 330 units within days. The project achieved a median price of $804 psf.
Also, One Devonshire is a prime project that managed to attract buyers for 146 units out of 152 units released. The median price achieved was at $1771 psf.
By Joyce Teo(Property Correspondent)
Extracted from The Straits Times
15 July 2009
Tuesday, July 14, 2009
Top-end home sales gently pick up pace
More transactions streaming in at higher price bands as bottom-up recovery starts to take root.
SINGAPORE) High-end residential transactions continue to stream in steadily, in both the primary and secondary markets. Two units were sold recently at Nassim Park Residences by its developer at above $3,000 per square foot (psf), one of them at $3,813 psf.
In the sub-sale market, a caveat has surfaced for a 37th floor unit at The Orchard Residences at about $3,550 psf last month.
Caveats have also been lodged for transactions of three units at The Ardmore Park at $2,375-$2,513 psf, and for a sub-sale deal at Marina Bay Residences at $2,200 psf in June.
Also in the sub-sale market, a three-bedroom unit on the 13th floor of Tate Residences at Claymore Road has been sold for $2,400 psf or about $5.25 million.
The seller and buyer were both Indonesians, says Jerry Tan, managing director of JTResi, which brokered the sale. The option was exercised about 10 days back. Two months ago, JTResi had also handled the sale of a 17th-floor unit in the development, facing the same way, at a lower price of $2,150 psf.
The 36-storey freehold project is slated for completion in a few months. 'Prices at Tate Residences have trended up from the lows of $1,850-1,950 psf seen in March-April. Those were some of the scariest months in the property market,' Mr Tan adds.
In the primary market, at the freehold Nassim Park Residences near Botanic Gardens, an option was exercised last week for a second-storey unit at $3,813 psf or $13.25 million. The unit is in the premium block, on an elevated part of the project, with a pool view and with the back facing Nassim Hill.
The 3,477 sq ft unit has four bedrooms and a study. The buyer is Indonesian, said CB Richard Ellis (CBRE) executive director Joseph Tan, whose firm is the joint-marketing agent for Nassim Park Residences.
The project's developer is also said to have issued last weekend an option for the sale of a fourth-level unit at $3,081 psf. The five-storey condo is being developed by UOL Group, Kheng Leong and Orix Corporation.
'Of late, we have been seeing an increase in transactions in the market above $2,000 psf. However, what this covers may be the top 5 per cent of buyers, who remain selective and are project specific. We're seeing an equal mix of foreigners and Singaporeans buying. Current prices - which are about 20-25 per cent off the 2007 peak levels - are pretty attractive,' CBRE's Mr Tan added.
CBRE also brokered the sale of a fifth floor unit at Ho Bee development The Orange Grove last week for $2,200 psf, or $4.7 million, to a Singaporean buyer. According to government data, five units in the project were sold by Ho Bee in May at between $2,255 psf and $2,380 psf. These levels are roughly 20 per cent lower than the $2,800 psf average price for the project early last year.
Orchard Turn Developments has sold 10 units at The Orchard Residences since May at $2,700 psf to $3,300 psf. The buyers comprise a mix of Singaporeans, permanent residents (PRs) and foreigners.
Despite a return of transactions in the higher-price segments, DTZ executive director Margaret Thean notes that 'buyers are more cautious with their offers'.
JTResi's Mr Tan observes that the pick-up in transactions of higher-priced units has led some developers, who had earlier planned to launch or relaunch projects, to hold back. 'They basically don't want to under-price their projects,' he added.
Ho Bee executive director Ong Chong Hua said: 'Sales are beginning to filter to the higher end, but not in a big way yet - because the overall quantums involved are usually quite large. Banks are also more cautious about granting home loans for this segment, whereas for the mass and mid-market projects, banks have relaxed on lending and valuations are no longer an issue.'
Hong Leong Holdings said yesterday that 215 units have been sold at The Gale, a freehold condo in the Upper Changi area, since last Friday. The average price is said to be about $650-660 psf.
At Alexandra Road, Wing Tai sold over 70 units at the 99-year leasehold Ascentia Sky during last weekend's preview. The average price is $1,250 psf.
Over the weekend, MCL Land sold 55 units at The Peak @ Balmeg, a freehold condo at Pasir Panjang, bringing total sales to 100 units. The average price is $1,000 psf.
Interest absorption schemes are available for all three projects at price premiums.
Remarks Mr Ong: 'What we're seeing is a bottom-up recovery, which is more sustainable - unlike the last recovery from 2005 to 2007, which was top down.'
By KALPANA RASHIWALA
Extracted from The Business Times
14 July 2009
SINGAPORE) High-end residential transactions continue to stream in steadily, in both the primary and secondary markets. Two units were sold recently at Nassim Park Residences by its developer at above $3,000 per square foot (psf), one of them at $3,813 psf.
In the sub-sale market, a caveat has surfaced for a 37th floor unit at The Orchard Residences at about $3,550 psf last month.
Caveats have also been lodged for transactions of three units at The Ardmore Park at $2,375-$2,513 psf, and for a sub-sale deal at Marina Bay Residences at $2,200 psf in June.
Also in the sub-sale market, a three-bedroom unit on the 13th floor of Tate Residences at Claymore Road has been sold for $2,400 psf or about $5.25 million.
The seller and buyer were both Indonesians, says Jerry Tan, managing director of JTResi, which brokered the sale. The option was exercised about 10 days back. Two months ago, JTResi had also handled the sale of a 17th-floor unit in the development, facing the same way, at a lower price of $2,150 psf.
The 36-storey freehold project is slated for completion in a few months. 'Prices at Tate Residences have trended up from the lows of $1,850-1,950 psf seen in March-April. Those were some of the scariest months in the property market,' Mr Tan adds.
In the primary market, at the freehold Nassim Park Residences near Botanic Gardens, an option was exercised last week for a second-storey unit at $3,813 psf or $13.25 million. The unit is in the premium block, on an elevated part of the project, with a pool view and with the back facing Nassim Hill.
The 3,477 sq ft unit has four bedrooms and a study. The buyer is Indonesian, said CB Richard Ellis (CBRE) executive director Joseph Tan, whose firm is the joint-marketing agent for Nassim Park Residences.
The project's developer is also said to have issued last weekend an option for the sale of a fourth-level unit at $3,081 psf. The five-storey condo is being developed by UOL Group, Kheng Leong and Orix Corporation.
'Of late, we have been seeing an increase in transactions in the market above $2,000 psf. However, what this covers may be the top 5 per cent of buyers, who remain selective and are project specific. We're seeing an equal mix of foreigners and Singaporeans buying. Current prices - which are about 20-25 per cent off the 2007 peak levels - are pretty attractive,' CBRE's Mr Tan added.
CBRE also brokered the sale of a fifth floor unit at Ho Bee development The Orange Grove last week for $2,200 psf, or $4.7 million, to a Singaporean buyer. According to government data, five units in the project were sold by Ho Bee in May at between $2,255 psf and $2,380 psf. These levels are roughly 20 per cent lower than the $2,800 psf average price for the project early last year.
Orchard Turn Developments has sold 10 units at The Orchard Residences since May at $2,700 psf to $3,300 psf. The buyers comprise a mix of Singaporeans, permanent residents (PRs) and foreigners.
Despite a return of transactions in the higher-price segments, DTZ executive director Margaret Thean notes that 'buyers are more cautious with their offers'.
JTResi's Mr Tan observes that the pick-up in transactions of higher-priced units has led some developers, who had earlier planned to launch or relaunch projects, to hold back. 'They basically don't want to under-price their projects,' he added.
Ho Bee executive director Ong Chong Hua said: 'Sales are beginning to filter to the higher end, but not in a big way yet - because the overall quantums involved are usually quite large. Banks are also more cautious about granting home loans for this segment, whereas for the mass and mid-market projects, banks have relaxed on lending and valuations are no longer an issue.'
Hong Leong Holdings said yesterday that 215 units have been sold at The Gale, a freehold condo in the Upper Changi area, since last Friday. The average price is said to be about $650-660 psf.
At Alexandra Road, Wing Tai sold over 70 units at the 99-year leasehold Ascentia Sky during last weekend's preview. The average price is $1,250 psf.
Over the weekend, MCL Land sold 55 units at The Peak @ Balmeg, a freehold condo at Pasir Panjang, bringing total sales to 100 units. The average price is $1,000 psf.
Interest absorption schemes are available for all three projects at price premiums.
Remarks Mr Ong: 'What we're seeing is a bottom-up recovery, which is more sustainable - unlike the last recovery from 2005 to 2007, which was top down.'
By KALPANA RASHIWALA
Extracted from The Business Times
14 July 2009
Is housing market recovery in sight?
The factors driving the rebound in private home sales are mostly short term but current exuberance could continue.
AFTER being dormant for 17 months, the private residential market sprang to life in February. That month saw a burst of buying that took new homes sold by developers to over 1,300, against an average of less than 400 during the lull.
Since then, monthly sales of new homes have consistently stayed above the 1,200 mark, bringing total sales for the first five months to 5,478 units. This already exceeds the 4,264 new units sold for the whole of last year!
Why the sudden buzz in private home sales? After all, Singapore is suffering its deepest recession with job losses hitting a historical high of 12,760 in the first quarter.
Price weakness was what sparked the home buying mania in February. The pressure on developers to clear inventory, after months of standoff between buyers and sellers, finally saw them relenting by either launching projects at competitive prices or resizing apartments to keep the absolute cost affordable.
For example, February saw the launch of the 712-unit The Caspian in Jurong, where over 90 per cent of the 600 launched units were sold at an initial price of $580 per sq ft (psf). In the same month, the 293-unit Alexis in Alexandra Road sold out at prices ranging from $950 psf to $1,250 psf. Its popularity can be explained in part by the small apartment sizes; more than 70 per cent of the development comprises one- and two-bedroom apartments ranging from 366 sq ft to 786 sq ft.
These moves could not have come at a better time because there was a noticeable lift in sentiment at the time from the job-saving measures in the 2009 Budget, announced in January. This created a greater sense of job security among home buyers, allowing them to commit to long-term mortgage payments.
Then the stock market started to rally in early March, as the economic outlook brightened, with indicators pointing to a slowing contraction. All these encouraging factors, coupled with a bit of herd instinct among buyers, led to another month of strong sales in March, which saw 1,220 new units sold.
Also, private home prices had already dropped about 14 per cent in Q1, the sharpest quarterly decline seen in Singapore's housing market. This gave comfort to many that home prices might have finally bottomed or were close to it.
Encouraged by the good sales, developers reduced their discounts and incentives, while sellers in the secondary market started to raise asking prices. Panic buying set in as house hunters worried that they might miss the boat if they did not act soon. This contributed to primary home sales hitting 1,668 units in May - the second highest figure, after the last recorded peak of 1,723 units in August 2007.
The positive sentiment spilled over to higher-tier homes. Sales of new high-end units located in the Core Central Region doubled for two months running, from 133 units in March to 322 in April and 617 in May.
To a large extent, the buying was backed by affordability. The economic boom in 2007 had significantly raised the incomes of many Singaporeans. According to the Department of Statistics, the average household income of Singaporeans and permanent residents rose by a hefty 24 per cent in the past two years, from $5,720 in 2006 to $7,090 in 2008.
Singapore residents also saw their wealth grow exponentially during the 2007 property boom. Besides the billions of dollars owners realised from collective sales which reached fever pitch in 2007, substantial sums were also made through property investment and speculation.
Property investors/speculators are estimated to have made a total net gain of $2.8 billion between January 2007 and March 2009, going by caveats lodged for sub-sale transactions. Eighty per cent of the money was made in 2007.
This translates to an average gain of $390,000 per sub-sale transaction, a tidy sum that can comfortably cover a 40 per cent downpayment on an investment property costing up to $800,000. Alternatively, it could fund a 20 per cent downpayment for an owner-occupied property costing up to $1.7 million. So it is not surprising that homes priced under $1.7 million made up some 90 per cent of all transactions since January.
On the public housing front, the diverging price trends of private homes and HDB resale flats narrowed the gap between them and improved the ability of HDB dwellers to upgrade. As at March, HDB resale prices were up an average 5 per cent from the mid-2008 level, while private home prices contracted by a steep 21 per cent in the same period. The Singapore stock market's 50 per cent surge since its March low has also added to liquidity.
Does the rebound signify market recovery?
Market recovery is characterised by sustained sales momentum and prices, which calls for a continued lift in sentiment, and a return of fundamentals that support long-term as opposed to short-term affordability and liquidity.
However, market sentiment is fragile and vulnerable to adverse developments in the economy and stock markets, and potential disasters like a deadlier wave of the H1N1 flu.
The stock market is volatile and cannot be depended on to provide sustained liquidity for the property market. And affordability backed by wealth accumulated from the boom years is not boundless and will deplete if not replenished in time.
While buying by HDB upgraders might be sustainable, this group is extremely price sensitive, as can be seen from past behaviour.
There were two occasions in the past when HDB upgraders increased their presence in the private home market even after HDB resale prices had peaked. This was between Q4 1996 and Q4 1998, as well as between Q1 2000 and Q2 2002. HDB upgraders continued to increase their presence in the private home sales market even after HDB resale prices peaked in Q4 1996 and Q1 2000.
This took place alongside continued softening of private home prices. But buying by HDB upgraders trended down the moment private home prices gained strength.
Currently, given that private home prices are already creeping up as developers and sellers take advantage of the strong buying momentum, HDB upgraders may fade as a driver of sales as they see private homes becoming less affordable.
Hence, the factors driving the rebound in private home sales since February are mostly short term and are not supportive of a sustainable market recovery. Such a recovery would be possible only with growth in employment and personal income on the back of robust economic expansion.
For the luxury segment, sales would also have to be underpinned by the return of foreign demand. For now, foreign high net worth individuals are focusing their attention on more battered markets such as London and Tokyo where the prospect of capital appreciation is higher.
Where is the market heading then, in H2 2009?
Nevertheless, over the next six months, barring adverse developments, market sentiment is likely to stay upbeat. The current exuberance could continue, despite the weak rental market, as most buyers are looking to capital appreciation in the medium term. This could underpin demand and help maintain average monthly private home sales at above the 1,000-unit level till the end of the year.
Beyond 2009, sustainable buying momentum amid rising home prices would have to come about on the back of robust economic expansion. In the meantime, the impending completion of the two integrated resorts could boost confidence and lend some support to home sales, particularly for high-end properties located close to the resorts.
By Tay Huey Ying(Director of research and advisory, Colliers International)
Extracted from The Business Times
9 July 2009
AFTER being dormant for 17 months, the private residential market sprang to life in February. That month saw a burst of buying that took new homes sold by developers to over 1,300, against an average of less than 400 during the lull.
Since then, monthly sales of new homes have consistently stayed above the 1,200 mark, bringing total sales for the first five months to 5,478 units. This already exceeds the 4,264 new units sold for the whole of last year!
Why the sudden buzz in private home sales? After all, Singapore is suffering its deepest recession with job losses hitting a historical high of 12,760 in the first quarter.
Price weakness was what sparked the home buying mania in February. The pressure on developers to clear inventory, after months of standoff between buyers and sellers, finally saw them relenting by either launching projects at competitive prices or resizing apartments to keep the absolute cost affordable.
For example, February saw the launch of the 712-unit The Caspian in Jurong, where over 90 per cent of the 600 launched units were sold at an initial price of $580 per sq ft (psf). In the same month, the 293-unit Alexis in Alexandra Road sold out at prices ranging from $950 psf to $1,250 psf. Its popularity can be explained in part by the small apartment sizes; more than 70 per cent of the development comprises one- and two-bedroom apartments ranging from 366 sq ft to 786 sq ft.
These moves could not have come at a better time because there was a noticeable lift in sentiment at the time from the job-saving measures in the 2009 Budget, announced in January. This created a greater sense of job security among home buyers, allowing them to commit to long-term mortgage payments.
Then the stock market started to rally in early March, as the economic outlook brightened, with indicators pointing to a slowing contraction. All these encouraging factors, coupled with a bit of herd instinct among buyers, led to another month of strong sales in March, which saw 1,220 new units sold.
Also, private home prices had already dropped about 14 per cent in Q1, the sharpest quarterly decline seen in Singapore's housing market. This gave comfort to many that home prices might have finally bottomed or were close to it.
Encouraged by the good sales, developers reduced their discounts and incentives, while sellers in the secondary market started to raise asking prices. Panic buying set in as house hunters worried that they might miss the boat if they did not act soon. This contributed to primary home sales hitting 1,668 units in May - the second highest figure, after the last recorded peak of 1,723 units in August 2007.
The positive sentiment spilled over to higher-tier homes. Sales of new high-end units located in the Core Central Region doubled for two months running, from 133 units in March to 322 in April and 617 in May.
To a large extent, the buying was backed by affordability. The economic boom in 2007 had significantly raised the incomes of many Singaporeans. According to the Department of Statistics, the average household income of Singaporeans and permanent residents rose by a hefty 24 per cent in the past two years, from $5,720 in 2006 to $7,090 in 2008.
Singapore residents also saw their wealth grow exponentially during the 2007 property boom. Besides the billions of dollars owners realised from collective sales which reached fever pitch in 2007, substantial sums were also made through property investment and speculation.
Property investors/speculators are estimated to have made a total net gain of $2.8 billion between January 2007 and March 2009, going by caveats lodged for sub-sale transactions. Eighty per cent of the money was made in 2007.
This translates to an average gain of $390,000 per sub-sale transaction, a tidy sum that can comfortably cover a 40 per cent downpayment on an investment property costing up to $800,000. Alternatively, it could fund a 20 per cent downpayment for an owner-occupied property costing up to $1.7 million. So it is not surprising that homes priced under $1.7 million made up some 90 per cent of all transactions since January.
On the public housing front, the diverging price trends of private homes and HDB resale flats narrowed the gap between them and improved the ability of HDB dwellers to upgrade. As at March, HDB resale prices were up an average 5 per cent from the mid-2008 level, while private home prices contracted by a steep 21 per cent in the same period. The Singapore stock market's 50 per cent surge since its March low has also added to liquidity.
Does the rebound signify market recovery?
Market recovery is characterised by sustained sales momentum and prices, which calls for a continued lift in sentiment, and a return of fundamentals that support long-term as opposed to short-term affordability and liquidity.
However, market sentiment is fragile and vulnerable to adverse developments in the economy and stock markets, and potential disasters like a deadlier wave of the H1N1 flu.
The stock market is volatile and cannot be depended on to provide sustained liquidity for the property market. And affordability backed by wealth accumulated from the boom years is not boundless and will deplete if not replenished in time.
While buying by HDB upgraders might be sustainable, this group is extremely price sensitive, as can be seen from past behaviour.
There were two occasions in the past when HDB upgraders increased their presence in the private home market even after HDB resale prices had peaked. This was between Q4 1996 and Q4 1998, as well as between Q1 2000 and Q2 2002. HDB upgraders continued to increase their presence in the private home sales market even after HDB resale prices peaked in Q4 1996 and Q1 2000.
This took place alongside continued softening of private home prices. But buying by HDB upgraders trended down the moment private home prices gained strength.
Currently, given that private home prices are already creeping up as developers and sellers take advantage of the strong buying momentum, HDB upgraders may fade as a driver of sales as they see private homes becoming less affordable.
Hence, the factors driving the rebound in private home sales since February are mostly short term and are not supportive of a sustainable market recovery. Such a recovery would be possible only with growth in employment and personal income on the back of robust economic expansion.
For the luxury segment, sales would also have to be underpinned by the return of foreign demand. For now, foreign high net worth individuals are focusing their attention on more battered markets such as London and Tokyo where the prospect of capital appreciation is higher.
Where is the market heading then, in H2 2009?
Nevertheless, over the next six months, barring adverse developments, market sentiment is likely to stay upbeat. The current exuberance could continue, despite the weak rental market, as most buyers are looking to capital appreciation in the medium term. This could underpin demand and help maintain average monthly private home sales at above the 1,000-unit level till the end of the year.
Beyond 2009, sustainable buying momentum amid rising home prices would have to come about on the back of robust economic expansion. In the meantime, the impending completion of the two integrated resorts could boost confidence and lend some support to home sales, particularly for high-end properties located close to the resorts.
By Tay Huey Ying(Director of research and advisory, Colliers International)
Extracted from The Business Times
9 July 2009
Thursday, July 9, 2009
A softer slide in private home prices in Q2
URA flash estimates show 5.9% fall but many expect final showing to be better.
(SINGAPORE) Singapore's private home prices fell for a fourth straight quarter in Q2 2009 - but the marked slowdown in the rate of decline shows that the residential market here is recovering, analysts said.
The private residential price index fell 5.9 per cent in the second quarter, according to flash estimates from the Urban Redevelopment Authority (URA) yesterday. By contrast, the index fell 14.1 per cent in Q1.
The continuing fall in the index caught many analysts by surprise, as anecdotal evidence showed that private home prices started climbing again in the second quarter.
'The decline is surprising as prices have picked up in the latter part of the second quarter, especially in the prime districts of 9, 10 and 11,' said DTZ's head of South-east Asia research Chua Chor Hoon.
Echoed Li Hiaw Ho, executive director of CBRE Research: 'This smaller decline in the price index is contrary to the present market perception where actual price levels in the second quarter were known to be more than 10 per cent above those in the first quarter.'
CBRE's data showed that the median price registered in the second quarter for new 99-year leasehold projects was $788,000 - some 13.2 per cent higher than the median of $696,000 in Q1. For new freehold non-landed properties, it was $928,000 - 26.6 per cent higher than the first quarter's $733,000. Some 3,800- 4,000 new homes were estimated to have been sold in Q2, 50 per cent more than the 2,596 units sold in the first quarter, the firm said.
DTZ's Ms Chua pointed out that URA's flash estimates are based on transaction prices from caveats lodged during the first ten weeks of the quarter, while the buying frenzy gained pace in June. 'I expect the final price index to fall less or show some increase when more caveats in June are included in the computation of the index,' she said.
A URA spokesman said that while some developers had started raising prices recently, the extent of price increase quarter-on-quarter was small and pertained to selected projects.
'On the other hand, more projects had seen a fall in prices over Q2 2009,' said the spokesman. 'Hence, overall prices in Q2 2009 as reflected by the flash index fell in comparison with Q1 2009.'
The revised index (which will be out on July 24) will capture caveats beyond the first 10 weeks of the quarter.
Meanwhile, the slower pace of decline for private home prices was seen across the whole island.
In Q2, prices of non-landed private residential properties decreased 6.6 per cent in the core central region (which includes the prime districts, financial district and Sentosa Cove), 6.3 per cent in the rest of central region, and 2.6 per cent in the outside central region (which is a proxy for suburban mass-market locations).
In comparison, in Q1 2009, prices fell 16.2 per cent in the core central region, 17 per cent in the rest of central region and 7.3 per cent in the outside central region.
The improved sentiment was also evident in the resale prices of Housing and Development Board (HDB) flats.
The HDB resale price index, which fell for the first time in Q1 2009 after nine straight quarters of growth, also recovered somewhat to climb 1.2 per cent in Q2. The resale price index fell 0.8 per cent in the first quarter.
'This price rebound shows that demand for HDB flats is still very strong despite current economic challenges,' said Eugene Lim, ERA Asia Pacific's associate director.
ERA, which says it has a 45 per cent market share of the HDB resale market, observed that its transaction volume surged some 52 per cent in Q2 over Q1.
Buyers are returning to the HDB market because sellers have become more realistic about asking prices - especially those selling five-room and executive flats, analysts said. Rather than holding out for higher cash-over-valuation (COV) amounts, most are now willing to sell at valuation or with a slight COV.
Analysts expect the property market recovery to continue - but cautioned against over-exuberance.
OCBC Investment Research analyst Foo Sze Ming said that property prices in Singapore are unlikely to surge to 2007 levels, even with the current recovery.
Then, prices were boosted by global real estate funds that bought up homes here for investment. 'Since the economic crisis is still ongoing, I doubt that there will be that much interest from funds in the Singapore property market to drive prices up to 2007 levels this year,' Mr Foo said.
'We retain our cautious outlook for the Singapore residential market,' said Nomura analysts Tony Darwell and Min Chow Sai in a June 29 report.
'In our view, the directional trend in the market will be driven by the competing forces of inventory clearance and buyers motivated by current 'value' rather than expectations of a sustained recovery in asset prices.'
The analysts see the likelihood of a W-shaped recovery in asset prices, rather than their previous expectations of a U-shaped recovery, the note said.
By: UMA SHANKARI
Extracted from The Business Times
02 July 2009
(SINGAPORE) Singapore's private home prices fell for a fourth straight quarter in Q2 2009 - but the marked slowdown in the rate of decline shows that the residential market here is recovering, analysts said.
The private residential price index fell 5.9 per cent in the second quarter, according to flash estimates from the Urban Redevelopment Authority (URA) yesterday. By contrast, the index fell 14.1 per cent in Q1.
The continuing fall in the index caught many analysts by surprise, as anecdotal evidence showed that private home prices started climbing again in the second quarter.
'The decline is surprising as prices have picked up in the latter part of the second quarter, especially in the prime districts of 9, 10 and 11,' said DTZ's head of South-east Asia research Chua Chor Hoon.
Echoed Li Hiaw Ho, executive director of CBRE Research: 'This smaller decline in the price index is contrary to the present market perception where actual price levels in the second quarter were known to be more than 10 per cent above those in the first quarter.'
CBRE's data showed that the median price registered in the second quarter for new 99-year leasehold projects was $788,000 - some 13.2 per cent higher than the median of $696,000 in Q1. For new freehold non-landed properties, it was $928,000 - 26.6 per cent higher than the first quarter's $733,000. Some 3,800- 4,000 new homes were estimated to have been sold in Q2, 50 per cent more than the 2,596 units sold in the first quarter, the firm said.
DTZ's Ms Chua pointed out that URA's flash estimates are based on transaction prices from caveats lodged during the first ten weeks of the quarter, while the buying frenzy gained pace in June. 'I expect the final price index to fall less or show some increase when more caveats in June are included in the computation of the index,' she said.
A URA spokesman said that while some developers had started raising prices recently, the extent of price increase quarter-on-quarter was small and pertained to selected projects.
'On the other hand, more projects had seen a fall in prices over Q2 2009,' said the spokesman. 'Hence, overall prices in Q2 2009 as reflected by the flash index fell in comparison with Q1 2009.'
The revised index (which will be out on July 24) will capture caveats beyond the first 10 weeks of the quarter.
Meanwhile, the slower pace of decline for private home prices was seen across the whole island.
In Q2, prices of non-landed private residential properties decreased 6.6 per cent in the core central region (which includes the prime districts, financial district and Sentosa Cove), 6.3 per cent in the rest of central region, and 2.6 per cent in the outside central region (which is a proxy for suburban mass-market locations).
In comparison, in Q1 2009, prices fell 16.2 per cent in the core central region, 17 per cent in the rest of central region and 7.3 per cent in the outside central region.
The improved sentiment was also evident in the resale prices of Housing and Development Board (HDB) flats.
The HDB resale price index, which fell for the first time in Q1 2009 after nine straight quarters of growth, also recovered somewhat to climb 1.2 per cent in Q2. The resale price index fell 0.8 per cent in the first quarter.
'This price rebound shows that demand for HDB flats is still very strong despite current economic challenges,' said Eugene Lim, ERA Asia Pacific's associate director.
ERA, which says it has a 45 per cent market share of the HDB resale market, observed that its transaction volume surged some 52 per cent in Q2 over Q1.
Buyers are returning to the HDB market because sellers have become more realistic about asking prices - especially those selling five-room and executive flats, analysts said. Rather than holding out for higher cash-over-valuation (COV) amounts, most are now willing to sell at valuation or with a slight COV.
Analysts expect the property market recovery to continue - but cautioned against over-exuberance.
OCBC Investment Research analyst Foo Sze Ming said that property prices in Singapore are unlikely to surge to 2007 levels, even with the current recovery.
Then, prices were boosted by global real estate funds that bought up homes here for investment. 'Since the economic crisis is still ongoing, I doubt that there will be that much interest from funds in the Singapore property market to drive prices up to 2007 levels this year,' Mr Foo said.
'We retain our cautious outlook for the Singapore residential market,' said Nomura analysts Tony Darwell and Min Chow Sai in a June 29 report.
'In our view, the directional trend in the market will be driven by the competing forces of inventory clearance and buyers motivated by current 'value' rather than expectations of a sustained recovery in asset prices.'
The analysts see the likelihood of a W-shaped recovery in asset prices, rather than their previous expectations of a U-shaped recovery, the note said.
By: UMA SHANKARI
Extracted from The Business Times
02 July 2009
Private resale home prices up in Q2, says DTZ
12.8% increase in average price of 2-bedroom units; firm expects full-year primary market sales to top 2006 figure of 11,147 units?
The average price of freehold non-landed resale private homes in prime districts 9, 10 and 11 increased 11.3 per cent to $1,247 per sq foot in the second quarter from Q1, says DTZ.
This followed a 3.7 per cent quarter-on-quarter (q-o-q) price fall in Q1.
Two-bedroom units posted a 12.8 per cent q-on-q gain in Q2, as their lower quantum prices stimulated interest among people hoping to own prime district property.
But DTZ considers the Q2 price gain a blip supported by buyers' fears of missing the bottom, pent-up demand and low interest rates - rather than economic fundamentals.
As for primary market sales, the property firm is now projecting that developers' private home sales for the whole of 2009 are likely to surpass the 11,147 units achieved in 2006, which was the second-highest performance after the 14,811 homes they sold in 2007.
In the first six months of this year, the tally was about 6,700 to 6,900 units.
DTZ's figures also show the average price of luxurious non-landed resale homes rose 9.6 per cent q-o-q to $2,060 psf in Q2.
Outside the prime districts, the average resale price of 99-year leasehold homes rose 3.2 per cent q-o-q to $573 psf in Q2, as prices had fallen less and there are fewer 'specu-vestors' in this segment.
Earlier this week, the Urban Redevelopment Authority's flash estimate showed the overall private home price index declined 5.9 per cent in Q2 from Q1.
Despite DTZ's figures showing an increase in resale prices of non-landed homes in Q2, DTZ's head of South-east Asia Research Chua Chor Hoon said: 'Without a clear recovery in sight for the US and Singapore economies, the price recovery in Q2 2009 is not sustainable and sales volume would be affected if prices continue to rise.'
She noted that average resale prices have fell only 10-35 per cent between Q4 2007 and Q1 2009, compared with the fall of 35-45 per cent from the Q2 1996 peak to the Q4 1998 Asian financial crisis trough.
The number of caveats lodged for resales and sub-sales in April and May this year exceeded that for the whole of Q1 by 70 per cent. The proportion of foreign buyers, excluding Singapore permanent residents, rose from 5 per cent in Q1 to 8 per cent in April and May.
Indonesians and Malaysians accounted for 49 per cent of caveats lodged in April and May by foreigners and Singapore PRs, compared with 40 per cent in Q1.
Sub-sales and resales are secondary-market transactions. Sub-sales involve projects that have yet to obtain a Certificate of Statutory Completion (CSC), while resales relate to projects that have received CSC.
Meanwhile, as new supply came on stream amid waning demand, rents continued to fall in Q2, although at a slower pace than in Q1.
The average rental value of prime district homes slipped 9.1 per cent to $3.32 psf per month in Q2, after a 16.2 per cent slide in Q1.
Rents for luxury homes were the hardest hit, with a 10.6 per cent decline to $4.65 psf per month - back to their Q4 2005 level.
By:KALPANA RASHIWALA
Extracted from The Business Times
04 July 2009
The average price of freehold non-landed resale private homes in prime districts 9, 10 and 11 increased 11.3 per cent to $1,247 per sq foot in the second quarter from Q1, says DTZ.
This followed a 3.7 per cent quarter-on-quarter (q-o-q) price fall in Q1.
Two-bedroom units posted a 12.8 per cent q-on-q gain in Q2, as their lower quantum prices stimulated interest among people hoping to own prime district property.
But DTZ considers the Q2 price gain a blip supported by buyers' fears of missing the bottom, pent-up demand and low interest rates - rather than economic fundamentals.
As for primary market sales, the property firm is now projecting that developers' private home sales for the whole of 2009 are likely to surpass the 11,147 units achieved in 2006, which was the second-highest performance after the 14,811 homes they sold in 2007.
In the first six months of this year, the tally was about 6,700 to 6,900 units.
DTZ's figures also show the average price of luxurious non-landed resale homes rose 9.6 per cent q-o-q to $2,060 psf in Q2.
Outside the prime districts, the average resale price of 99-year leasehold homes rose 3.2 per cent q-o-q to $573 psf in Q2, as prices had fallen less and there are fewer 'specu-vestors' in this segment.
Earlier this week, the Urban Redevelopment Authority's flash estimate showed the overall private home price index declined 5.9 per cent in Q2 from Q1.
Despite DTZ's figures showing an increase in resale prices of non-landed homes in Q2, DTZ's head of South-east Asia Research Chua Chor Hoon said: 'Without a clear recovery in sight for the US and Singapore economies, the price recovery in Q2 2009 is not sustainable and sales volume would be affected if prices continue to rise.'
She noted that average resale prices have fell only 10-35 per cent between Q4 2007 and Q1 2009, compared with the fall of 35-45 per cent from the Q2 1996 peak to the Q4 1998 Asian financial crisis trough.
The number of caveats lodged for resales and sub-sales in April and May this year exceeded that for the whole of Q1 by 70 per cent. The proportion of foreign buyers, excluding Singapore permanent residents, rose from 5 per cent in Q1 to 8 per cent in April and May.
Indonesians and Malaysians accounted for 49 per cent of caveats lodged in April and May by foreigners and Singapore PRs, compared with 40 per cent in Q1.
Sub-sales and resales are secondary-market transactions. Sub-sales involve projects that have yet to obtain a Certificate of Statutory Completion (CSC), while resales relate to projects that have received CSC.
Meanwhile, as new supply came on stream amid waning demand, rents continued to fall in Q2, although at a slower pace than in Q1.
The average rental value of prime district homes slipped 9.1 per cent to $3.32 psf per month in Q2, after a 16.2 per cent slide in Q1.
Rents for luxury homes were the hardest hit, with a 10.6 per cent decline to $4.65 psf per month - back to their Q4 2005 level.
By:KALPANA RASHIWALA
Extracted from The Business Times
04 July 2009
At least 8,000 new flats
THE Housing and Development Board (HDB) will offer 8,000 new flats this year, or more if the pick up is stronger, said National Development Minister Mah Bow Tan on Wednesday.
Mr Mah said the Board is monitoring demand and will 'calibrate its supply of new flats' to meet some of that demand, but not all.
The HDB launched about 1,300 new flats in the first quarter of the year under its build-to-order (BTO) system where units are only built when certain demand is reached.
It plans to launch a further 2,400 such flats from April to September, subject to demand. The bulk of these will be in Punggol. Last year, the HDB launched about 7,800 new flats under its BTO system.
Mr Mah, who was speaking on the sidelines of an industry event, said prices in the HDB resale market have stabilised.
Recent HDB flash estimates showed that resale flat prices rose 1.2 per cent in the second quarter to hit a record high after dipping 0.8 per cent in the first quarter.
It surprised analysts and industry observers, who had expected prices to fall amidst Singapore's worst recession.
But Mr Mah said: 'The fact is that the HDB market is a large market... with prices going up or down by one per cent, I would term it a stable market, not a rising market.'
He also said that the HDB will continue to supply new flats but 'we cannot be building new flats to cater to every last person who wants a new flat... because if you do that, then obviously you are over building'.
By: Jessica Cheam
Extracted from The Straits Times
08 July 2009
Mr Mah said the Board is monitoring demand and will 'calibrate its supply of new flats' to meet some of that demand, but not all.
The HDB launched about 1,300 new flats in the first quarter of the year under its build-to-order (BTO) system where units are only built when certain demand is reached.
It plans to launch a further 2,400 such flats from April to September, subject to demand. The bulk of these will be in Punggol. Last year, the HDB launched about 7,800 new flats under its BTO system.
Mr Mah, who was speaking on the sidelines of an industry event, said prices in the HDB resale market have stabilised.
Recent HDB flash estimates showed that resale flat prices rose 1.2 per cent in the second quarter to hit a record high after dipping 0.8 per cent in the first quarter.
It surprised analysts and industry observers, who had expected prices to fall amidst Singapore's worst recession.
But Mr Mah said: 'The fact is that the HDB market is a large market... with prices going up or down by one per cent, I would term it a stable market, not a rising market.'
He also said that the HDB will continue to supply new flats but 'we cannot be building new flats to cater to every last person who wants a new flat... because if you do that, then obviously you are over building'.
By: Jessica Cheam
Extracted from The Straits Times
08 July 2009
Wednesday, July 1, 2009
HDB Resale Prices Up
Prices of HDB flats staged a surprising comeback, rising 1.2 per cent in the second quarter after dipping 0.6 per cent in the first quarter this year.
Flash estimates from the Housing Development Board (HDB) on Wednesday showed the resale price index rising to 140 - an all-time record high.
Market analysts attribute this increase to the continued demand for HDB resale flats, where cash needed to buy a flat, or cash-over-valuation (COV), has come down since the global economic fallout began last year.
'The popularity of resale flats is holding well against new project launches and design and build projects by private developers,' said PropNex Chief Executive Mohamed Ismail.
'Further, feedback from the ground is that demand in the matured estates far exceeds supply.'
Meanwhile, the slide in private home prices has abated, falling 5.9 per cent in the second quarter, compared to the 14.1 per cent decline in the previous quarter.
More detailed private and pubic housing data for the second quarter will be released at the end of July.
By Jessica Cheam
Extracted from Straits Times
1 July 2009
Flash estimates from the Housing Development Board (HDB) on Wednesday showed the resale price index rising to 140 - an all-time record high.
Market analysts attribute this increase to the continued demand for HDB resale flats, where cash needed to buy a flat, or cash-over-valuation (COV), has come down since the global economic fallout began last year.
'The popularity of resale flats is holding well against new project launches and design and build projects by private developers,' said PropNex Chief Executive Mohamed Ismail.
'Further, feedback from the ground is that demand in the matured estates far exceeds supply.'
Meanwhile, the slide in private home prices has abated, falling 5.9 per cent in the second quarter, compared to the 14.1 per cent decline in the previous quarter.
More detailed private and pubic housing data for the second quarter will be released at the end of July.
By Jessica Cheam
Extracted from Straits Times
1 July 2009
Private home prices dip 5.9%
SINGAPORE'S private home prices fell 5.9 per cent in the second quarter, which was an improvement from the record 14.1 per cent fall in the first quarter.
Initial estimates released by the Urban Redevelopment Authority (URA) on Wednesday also showed the decline in non-landed home prices was the lowest in the suburban areas.
Prices in this segment fell just 2.6 per cent, compared with a 6.6 per cent slide in the core central areas and a 6.3 per cent fall in the city-fringes.
The residential property market has been witnessing a boom of late, with buyers flocking to showflats to buy uncompleted homes.
Although the economic climate here remains weak, sales of new private homes have been strong and the resale homes market has also improved.
'The strong buying phenomenon in the market is partly due to new competitive pricing for some projects, the recent stock market rally, signs of an economic turnaround and pent-up demand,' said Mr Eugene Lim, ERA Asia Pacific's associate director.
In the HDB resale market, prices even rose 1.2 per cent on strong demand, reversing a marginal 0.8 per cent fall in the first quarter.
URA's initial estimates are based on caveats lodged during the first 10 weeks of the quarter. Updated figures will be released four weeks later.
By Joyce Teo
Extracted From Straits Times
1 July 2009
Initial estimates released by the Urban Redevelopment Authority (URA) on Wednesday also showed the decline in non-landed home prices was the lowest in the suburban areas.
Prices in this segment fell just 2.6 per cent, compared with a 6.6 per cent slide in the core central areas and a 6.3 per cent fall in the city-fringes.
The residential property market has been witnessing a boom of late, with buyers flocking to showflats to buy uncompleted homes.
Although the economic climate here remains weak, sales of new private homes have been strong and the resale homes market has also improved.
'The strong buying phenomenon in the market is partly due to new competitive pricing for some projects, the recent stock market rally, signs of an economic turnaround and pent-up demand,' said Mr Eugene Lim, ERA Asia Pacific's associate director.
In the HDB resale market, prices even rose 1.2 per cent on strong demand, reversing a marginal 0.8 per cent fall in the first quarter.
URA's initial estimates are based on caveats lodged during the first 10 weeks of the quarter. Updated figures will be released four weeks later.
By Joyce Teo
Extracted From Straits Times
1 July 2009
Condo units snapped up
STRONG sales in the property market continued over the weekend as mass- and upper-mid- market launches drew crowds of buyers.
Within three days of its preview launch last Friday, the 68-unit Residences@Killiney project sold 39 of 60 released units - with sales ongoing, a spokesman for developer Hoi Hup Realty said yesterday.
Preview prices at the Killiney Road condominium ranged from $1,700 per sq ft (psf) to $2,000 psf.
Opposite the condo at Devonshire Road, Allgreen Properties' One Devonshire has sold more than 95 per cent of its 36-storey, 152-unit freehold condo since its launch about two weeks ago.
In the Thomson Road area, Far East Organization sold 84 per cent - or 74 homes - of an initial batch of 88 units at a private preview of its Vista Residences over the weekend.
The 280-unit freehold project offers a range of accommodation from one bedroom to penthouse units starting from $960 psf.
Far East will release another 45 units tomorrow - its official launch date - said Mr Chia Boon Kuah, chief operating officer of the firm's property arm.
HSR Property Group executive director Eric Cheng noted that the buying activity - which started in mass-market new condo launches - seems to have moved into the higher market segments.
'This is undoubtedly due to the stock market rally, more positive sentiment, and is enabled by the interest absorption scheme,' he said.
The scheme allows buyers to pay a deposit and postpone monthly home loan payments until the project is completed.
By: Jessica Cheam
Extracted from Straits Time
30 June 2009
Within three days of its preview launch last Friday, the 68-unit Residences@Killiney project sold 39 of 60 released units - with sales ongoing, a spokesman for developer Hoi Hup Realty said yesterday.
Preview prices at the Killiney Road condominium ranged from $1,700 per sq ft (psf) to $2,000 psf.
Opposite the condo at Devonshire Road, Allgreen Properties' One Devonshire has sold more than 95 per cent of its 36-storey, 152-unit freehold condo since its launch about two weeks ago.
In the Thomson Road area, Far East Organization sold 84 per cent - or 74 homes - of an initial batch of 88 units at a private preview of its Vista Residences over the weekend.
The 280-unit freehold project offers a range of accommodation from one bedroom to penthouse units starting from $960 psf.
Far East will release another 45 units tomorrow - its official launch date - said Mr Chia Boon Kuah, chief operating officer of the firm's property arm.
HSR Property Group executive director Eric Cheng noted that the buying activity - which started in mass-market new condo launches - seems to have moved into the higher market segments.
'This is undoubtedly due to the stock market rally, more positive sentiment, and is enabled by the interest absorption scheme,' he said.
The scheme allows buyers to pay a deposit and postpone monthly home loan payments until the project is completed.
By: Jessica Cheam
Extracted from Straits Time
30 June 2009
Tuesday, June 30, 2009
Robust private home sales in June
(SINGAPORE) Private home sales stayed strong in June.
Far East Organization sold 74 apartments in its 280-unit Vista Residences at a private preview last weekend, the developer said yesterday.
And Frasers Centrepoint said that it has fully sold two of its projects - the 330-unit 8@Woodleigh and the 110-unit Woodsville 28. Homes at 8@Woodleigh went for an average of $790 per sq ft (psf), while units at Woodsville 28 sold for an average price of $775 psf.
8@Woodleigh was launched just two weeks ago. Woodsville 28 was launched in July 2008 but most units languished until the buying momentum returned to the market this year.
Over at the freehold Vista Residences - on Jalan Dusun and Jalan Datoh at the corner of Thomson Road - prices start at $960 psf. The project will be officially launched tomorrow, but Far East released 88 units at a weekend preview, and 85 per cent of them were snapped up.
'Buyers are mainly Singaporeans and there is particularly strong interest from young professional managers, teachers and civil servants who are buying to occupy,' said Chia Boon Kuah, chief operating officer of Far East Organization's property arm
While units at Vista Residences have sold for more than homes in the nearby The Arte - a City Developments project where units were launched at an average price of $880 psf in March - the difference in pricing is due to the difference in unit sizes and floor plans, analysts say.
'Vista Residences offer smaller size units that command higher psf pricing and also smaller balcony space than The Arte,' OCBC Investment Research analyst Foo Sze Ming said in a note yesterday. 'As such, we caution that the strong buying momentum at higher psf pricing for the new launch should not be viewed as a new uptrend for property prices.'
Mr Foo said that it is too early to call a recovery in the property market. 'We remain unconvinced by the recent 'recovery' in the physical property market,' he said.
'We believe buying strength over the recent weeks could have been driven by the spillover effect from earlier pent-up demand that drew cash rich local investors back into the market. In our view, potential catalysts for price increase will have to come from an inflow of foreign funds into the property market, as well as a pick up in employment opportunities
Foreign funds were the driving force of the property boom in 2007, but have not come back to the market in a big way.
Looking ahead, more mass-market and mid-market launches are expected in the coming weeks, including Oasis@Elias, a 388-unit, 99-year leasehold project at Elias Road by Chip Eng Seng, and The Gale, a 329-unit, freehold project at Flora Road by Tripartite Developers.
By:UMA SHANKARI
Extracted from The Business Times
30 June 2009
Far East Organization sold 74 apartments in its 280-unit Vista Residences at a private preview last weekend, the developer said yesterday.
And Frasers Centrepoint said that it has fully sold two of its projects - the 330-unit 8@Woodleigh and the 110-unit Woodsville 28. Homes at 8@Woodleigh went for an average of $790 per sq ft (psf), while units at Woodsville 28 sold for an average price of $775 psf.
8@Woodleigh was launched just two weeks ago. Woodsville 28 was launched in July 2008 but most units languished until the buying momentum returned to the market this year.
Over at the freehold Vista Residences - on Jalan Dusun and Jalan Datoh at the corner of Thomson Road - prices start at $960 psf. The project will be officially launched tomorrow, but Far East released 88 units at a weekend preview, and 85 per cent of them were snapped up.
'Buyers are mainly Singaporeans and there is particularly strong interest from young professional managers, teachers and civil servants who are buying to occupy,' said Chia Boon Kuah, chief operating officer of Far East Organization's property arm
While units at Vista Residences have sold for more than homes in the nearby The Arte - a City Developments project where units were launched at an average price of $880 psf in March - the difference in pricing is due to the difference in unit sizes and floor plans, analysts say.
'Vista Residences offer smaller size units that command higher psf pricing and also smaller balcony space than The Arte,' OCBC Investment Research analyst Foo Sze Ming said in a note yesterday. 'As such, we caution that the strong buying momentum at higher psf pricing for the new launch should not be viewed as a new uptrend for property prices.'
Mr Foo said that it is too early to call a recovery in the property market. 'We remain unconvinced by the recent 'recovery' in the physical property market,' he said.
'We believe buying strength over the recent weeks could have been driven by the spillover effect from earlier pent-up demand that drew cash rich local investors back into the market. In our view, potential catalysts for price increase will have to come from an inflow of foreign funds into the property market, as well as a pick up in employment opportunities
Foreign funds were the driving force of the property boom in 2007, but have not come back to the market in a big way.
Looking ahead, more mass-market and mid-market launches are expected in the coming weeks, including Oasis@Elias, a 388-unit, 99-year leasehold project at Elias Road by Chip Eng Seng, and The Gale, a 329-unit, freehold project at Flora Road by Tripartite Developers.
By:UMA SHANKARI
Extracted from The Business Times
30 June 2009
Saturday, June 20, 2009
Household Buying Tips - Things to note
Before buying a HDB resale flat, beside location and price, there are few points to take note.
LoanShark
- The flat that will give tons of problems to home owners.
- Walk through the corridors, staircases and the units surrounding. Check for any loanshark graffiti on the wall with your potential new home unit no. or beside your unit, or any paint stain at your neighbours floor. Nowadays, loanshark splash paints at borrower's neighbours.
Cats / Dog Faeces
- Have you experience, when you open your door and see a pool of cat's faeces .Or your neighbours keeps alot of cats and give you some problems?
- If you intend to buy, check with the bangladesh sweeper if he has to clear the faeces and urine at the common area near your unit. Observe if your new neighbour keeps any pets.
As extracted from HDB website ; http://www.hdb.gov.sg/fi10/fi10209p.nsf/WPDis/Keeping%20Of%20PetsOverview?OpenDocument
Cats are not allowed to be kept in HDB Flats as they caused nuisance such as shedding fur, defecating /urinating in common area, noise disturbance etc. HDB only allows one dog of an approved breed to be kept. Please refer to the HDB approved list for more information. http://www.hdb.gov.sg/fi10/fi10209p.nsf/WPDis/Keeping%20Of%20PetsPolicies?OpenDocument
Newly Painted ceiling / wall
Look out for any newly painted of ceiling or wall especially inside the bathroom or toilet. It may be there are some defects such as water seepage and the owner tried to cover up by painting over. Such unnoticed defects may cost you nuisances or even monetrary loss for repairing or damaging to your property
LoanShark
- The flat that will give tons of problems to home owners.
- Walk through the corridors, staircases and the units surrounding. Check for any loanshark graffiti on the wall with your potential new home unit no. or beside your unit, or any paint stain at your neighbours floor. Nowadays, loanshark splash paints at borrower's neighbours.
Cats / Dog Faeces
- Have you experience, when you open your door and see a pool of cat's faeces .Or your neighbours keeps alot of cats and give you some problems?
- If you intend to buy, check with the bangladesh sweeper if he has to clear the faeces and urine at the common area near your unit. Observe if your new neighbour keeps any pets.
As extracted from HDB website ; http://www.hdb.gov.sg/fi10/fi10209p.nsf/WPDis/Keeping%20Of%20PetsOverview?OpenDocument
Cats are not allowed to be kept in HDB Flats as they caused nuisance such as shedding fur, defecating /urinating in common area, noise disturbance etc. HDB only allows one dog of an approved breed to be kept. Please refer to the HDB approved list for more information. http://www.hdb.gov.sg/fi10/fi10209p.nsf/WPDis/Keeping%20Of%20PetsPolicies?OpenDocument
Newly Painted ceiling / wall
Look out for any newly painted of ceiling or wall especially inside the bathroom or toilet. It may be there are some defects such as water seepage and the owner tried to cover up by painting over. Such unnoticed defects may cost you nuisances or even monetrary loss for repairing or damaging to your property
Saturday, June 6, 2009
Property Owners, tenants encouraged to check windows every 6 months
SINGAPORE: Property owners and tenants are encouraged to check and maintain windows in high-rise buildings at least twice a year.
In a joint statement, the Building and Construction Authority (BCA) and the Housing and Development Board (HDB) said the safety of exterior features such windows are critical in Singapore's densely built environment as these could cause serious injuries.
BCA said since it introduced legislation to retrofit casement windows in October 2004, the number of fallen window incidents has gone down significantly. In 2005, the number was 125 but this has dropped to an average of 52 cases per year from 2006 to 2008. BCA and HDB said all property owners are responsible for ensuring that their windows are well maintained so that they do not fall off and cause danger to the public.
The statement came a day after a huge glass window went crashing down 18 floors from a high-rise building in downtown Singapore on Thursday morning.A man in his early 40s suffered cuts on his head as a result of the accident. He was believed to be working on the glass panel on the 18th floor of the AIA Building.
Fortunately, there were no vehicles or pedestrians when the glass panel came crashing down. - CNA/vm
By Hasnita A Majid,
Channel NewsAsia
Posted: 05 June 2009 2006 hrs
In a joint statement, the Building and Construction Authority (BCA) and the Housing and Development Board (HDB) said the safety of exterior features such windows are critical in Singapore's densely built environment as these could cause serious injuries.
BCA said since it introduced legislation to retrofit casement windows in October 2004, the number of fallen window incidents has gone down significantly. In 2005, the number was 125 but this has dropped to an average of 52 cases per year from 2006 to 2008. BCA and HDB said all property owners are responsible for ensuring that their windows are well maintained so that they do not fall off and cause danger to the public.
The statement came a day after a huge glass window went crashing down 18 floors from a high-rise building in downtown Singapore on Thursday morning.A man in his early 40s suffered cuts on his head as a result of the accident. He was believed to be working on the glass panel on the 18th floor of the AIA Building.
Fortunately, there were no vehicles or pedestrians when the glass panel came crashing down. - CNA/vm
By Hasnita A Majid,
Channel NewsAsia
Posted: 05 June 2009 2006 hrs
HDB launches Fernvale Crest under the Build-To-Order System
THE Housing Board has launched a build-to-order (BTO) project with far more smaller flats than usual. The project - Fernvale Crest - is at the junction of Jalan Kayu and Sengkang West Way and near the Fernvale and Thanggam LRT stations.
There are 700 flats - 372 three-roomers, 188 four-room units and 140 two- room flats of 45 sq m each. This is the largest number of smaller BTO flats ever offered for sale. The two-room flats will cost $74,000 to $98,000 each, while the three-roomers will go for $116,000 to $157,000 each. A family on a total monthly income of $1,300 buying an $85,000 two-room flat will need to pay a monthly mortgage of just $180, said HDB yesterday. But at 5pm yesterday, there was only one application for the two-room units, against 22 for the three-room flats and 131 for the four-roomers.
The four-room units are priced from $203,000 to $250,000 each - a level that HDB says compares favourably with the comparable resale flats in Sengkang. These comparable flats - each costing $290,000 to $360,000 - are all premium units as there are no standard resale flats in the area.
Fernvale Crest is a standard project, which means it comes with minimal finishes. The prices, for instance, do not include flooring in the bedrooms. ERA Asia Pacific associate director Eugene Lim said BTO standard flats are the most affordable kind of public housing as they target first-timers and those on a lower household income band.
'This batch of units is priced very attractively. We reckon they are a good 5 to 8 per cent lower than last year's prices,' said Mr Lim. Under the BTO scheme, flats are built only when demand hits a certain level. In the first quarter of this year, HDB launched about 1,300 new flats in two BTO projects in Punggol and Woodlands. It plans to launch a further 2,400 BTO flats in the next two quarters.
By Joyce Teo
Published:June 03 2009,
The Straits Times
..........................................................................................................................................................................................
There are 700 flats - 372 three-roomers, 188 four-room units and 140 two- room flats of 45 sq m each. This is the largest number of smaller BTO flats ever offered for sale. The two-room flats will cost $74,000 to $98,000 each, while the three-roomers will go for $116,000 to $157,000 each. A family on a total monthly income of $1,300 buying an $85,000 two-room flat will need to pay a monthly mortgage of just $180, said HDB yesterday. But at 5pm yesterday, there was only one application for the two-room units, against 22 for the three-room flats and 131 for the four-roomers.
The four-room units are priced from $203,000 to $250,000 each - a level that HDB says compares favourably with the comparable resale flats in Sengkang. These comparable flats - each costing $290,000 to $360,000 - are all premium units as there are no standard resale flats in the area.
Fernvale Crest is a standard project, which means it comes with minimal finishes. The prices, for instance, do not include flooring in the bedrooms. ERA Asia Pacific associate director Eugene Lim said BTO standard flats are the most affordable kind of public housing as they target first-timers and those on a lower household income band.
'This batch of units is priced very attractively. We reckon they are a good 5 to 8 per cent lower than last year's prices,' said Mr Lim. Under the BTO scheme, flats are built only when demand hits a certain level. In the first quarter of this year, HDB launched about 1,300 new flats in two BTO projects in Punggol and Woodlands. It plans to launch a further 2,400 BTO flats in the next two quarters.
By Joyce Teo
Published:June 03 2009,
The Straits Times
..........................................................................................................................................................................................
Sunday, May 24, 2009
Household Maintenance Tips - Flaking / Peeling Paintwork
Paintwork peeling or flaking is often caused by water content on the surface of wall or ceiling, poor surface preparation, low quality paint etc.
Repair Method
Check for any signs of water seepage and rectify it if there is. Scrape off the flaking or peeling paint. Sand the surface and clean off the dust. If there is any crack, patch the crack with suitable filler. Make sure the surface is even. The surface has to be free from grease, dirt and dust.
The container of paint must be stirred thoroughly before use. Apply a coat of sealer to the prepared surface. Followed by a undercoat and a finishing coat.Allow appropriate drying time in between the coats.
Repair Method
Check for any signs of water seepage and rectify it if there is. Scrape off the flaking or peeling paint. Sand the surface and clean off the dust. If there is any crack, patch the crack with suitable filler. Make sure the surface is even. The surface has to be free from grease, dirt and dust.
The container of paint must be stirred thoroughly before use. Apply a coat of sealer to the prepared surface. Followed by a undercoat and a finishing coat.Allow appropriate drying time in between the coats.
Saturday, May 23, 2009
Household Maintenance Tips - Door closes fast or not at all
Door Closer is a self closing device installed on top of door to keep the door closed at all times. It helps to slow down or prevent the fire / smoke from enter the house or to the corridor. It may close too fast or cannot close by itself at all due to the misadjustment of the speed control of the door closer.
Repair Method
Slide the front cover plate to one side and you will be able to see the adjusting valve. Adjust the closing door speed through the speed adjusting valves to the speed you are satisfied with.
Repair Method
Slide the front cover plate to one side and you will be able to see the adjusting valve. Adjust the closing door speed through the speed adjusting valves to the speed you are satisfied with.
Friday, May 22, 2009
Household Maintenance Tips - Ceiling Leaks
Ceiling Leaks
Ceiling Leaks happen when water seeps through from the above unit flooring into your ceiling.It indicates the waterproof membrane of the above unit flooring has malfunction due to wear and tear. It normally occurs in the bathroom or toilet. Damp patches could be seen on the ceiling and in some serious cases, water drips from the ceiling.
Repair Method
Repair is carried out on the above unit. Hack the entire floor finishing. Remove the toilet bowl or bathtub in the bathroom.
Remove the debris / loose particles after hacking. Lay at least a layer of a waterproof membrane onto the flooring and allow it to dry for a few hours. The membrane shall also be applied upturned against the wall,kerb or pipes for at least 0.15m from the floor level.
Next, lay a layer of at least 20mm thick waterproof screed (cement), follow by floor tiles and pedestrial pan after allowing the screed to dry. The screed has to be at a gentle slope to prevent water stagnant.
Ceiling Leaks happen when water seeps through from the above unit flooring into your ceiling.It indicates the waterproof membrane of the above unit flooring has malfunction due to wear and tear. It normally occurs in the bathroom or toilet. Damp patches could be seen on the ceiling and in some serious cases, water drips from the ceiling.
Repair Method
Repair is carried out on the above unit. Hack the entire floor finishing. Remove the toilet bowl or bathtub in the bathroom.
Remove the debris / loose particles after hacking. Lay at least a layer of a waterproof membrane onto the flooring and allow it to dry for a few hours. The membrane shall also be applied upturned against the wall,kerb or pipes for at least 0.15m from the floor level.
Next, lay a layer of at least 20mm thick waterproof screed (cement), follow by floor tiles and pedestrial pan after allowing the screed to dry. The screed has to be at a gentle slope to prevent water stagnant.
Thursday, April 30, 2009
Secondary Market buzzes as Prices fall
Q1 sees rise in resale and subsale deals as prices get more attractive.
By Kalpana Rashiwala
Published: April 24 2009,
The Business Times
(SINGAPORE) The pick-up in private home sales by developers has spilled over to the secondary market. Falling prices are greasing the flow.
Caveats have been lodged for 1,063 private homes in the resale market in the first three months of this year, up 11.7 per cent from the preceding quarter. In the subsale market, 384 caveats were lodged in Q1 2009, reflecting a 44.4 per cent increase from the Q4 2008 figure, according to Savills's analysis of caveats captured by the Urban Redevelopment Authority's Realis system.
Resales and subsales refer to secondary market transactions. Subsales involve projects that have yet to obtain Certificate of Statutory Completion while resales relate to projects that have received CSC. CSC is typically obtained anywhere from three to 12 months after the project receives Temporary Occupation Permit (TOP).
The average prices of resale and subsale transactions at the most popular projects in Q1 2009 were generally lower than in the preceding quarter as well as the same period last year.
City Square Residences, the most popular subsale project in the first three months of this year with 41 units, saw an average price of $804 psf, down 5 per cent from the $845 average subsale price in Q4 2008 and 15 per cent below the $947 psf average subsale price seen in Q1 2008.
Average prices for 11 of the 12 most popular subsale projects in Q1 this year fell between one and 14 per cent from the preceding quarter. The exception was Clementiwoods Condo, where eight subsale deals were done at an average of $664 psf in Q1, some 5 per cent higher than in the previous quarter but down 7 per cent from the same period a year ago.
Compared with Q1 last year, average prices for all 12 top-selling subsale projects in Q1 2009 fell between 4 per cent (Centris) and 36 per cent (The Cosmopolitan).
As for resale transactions, the 11 hottest developments saw quarter-on-quarter price declines ranging from 4 per cent (for The Lakeshore) to 19 per cent (Bayshore Park) in Q1. The Lakeshore was the most popular resale project in the first quarter, with 27 units changing hands, followed by Costa del Sol, with 11 units.
Savills Singapore head of research Priya Sengupta noted that the 11 most popular resale projects in Q1 were all in the mass and mid-tier sectors. 'Amid the economic uncertainties, affordability remains a key consideration for home buyers/investors; 100 of the 113 deals in the 11 most popular resale projects in Q1 were at below $1 million,' she said.
Resale activity for high-end projects was limited. 'This could be attributed to the price disparity between sellers and buyers as the latter expect further downward price adjustment in the near future, as well as the stricter home loan criteria in terms of loan-to-value ratio, especially for investors,' Ms Sengupta said.
Mass and mid-tier projects also saw more subsale transactions than high-end projects. Much of the subsales activity in Q1 surrounded projects that have either received TOP recently or are close to receiving it. For instance, City Square Residences, The Esta, The Sail @ Marina Bay, The Cosmopolitan and Rivergate have received TOP in 2008/2009, while One Amber and The Centris will get TOP soon, Savills said.
Market watchers said that this could be because many specuvestors who bought on deferred payment schemes (DPS) may be inclined to offload their units as the TOP date approaches, when they have to pay up the bulk of the purchase price to developers.
However, CB Richard Ellis executive director Joseph Tan pointed out that regardless of whether buyers opted for DPS, private housing projects are typically a hive of activity around the time they receive TOP, drawing buyers who want to move in themselves or to rent out immediately.
He also attributed the increase in subsale and resale transactions in Q1 to 'prices being at fairly reasonable levels now', with the stock market rally improving sentiment.
Mr Tan said that whether the buzz in the secondary market continues will depend on the stockmarket. 'So long as the Straits Times Index remains fairly stable, it will give comfort to investors that the property market is close to bottoming out, given the price correction in the past 12-15 months,' he added.
According to DTZ's figures, which are based on resale prices, the average freehold luxury condo and apartment price of $1,880 psf in Q1 this year marks about a one-third drop from the peak of $2,800 psf in late 2007/early 2008.
The most expensive subsale deal (in terms of psf price) in Q1 this year was a 29th floor unit at Orchard Residences that changed hands for $2,579 psf. In absolute dollar quantum, the most expensive subsale deal was an 11th floor apartment at The Tate Residences at Claymore Road, which sold for $5.93 million ($1,850 psf).
As for resale transactions, the top grossers were a 10th floor apartment at Richmond Park at Bideford Road which sold for $2,199 psf and a 25th floor unit at Four Seasons Park at Cuscaden Walk that fetched $6.5 million ($1,701 psf)
By Kalpana Rashiwala
Published: April 24 2009,
The Business Times
(SINGAPORE) The pick-up in private home sales by developers has spilled over to the secondary market. Falling prices are greasing the flow.
Caveats have been lodged for 1,063 private homes in the resale market in the first three months of this year, up 11.7 per cent from the preceding quarter. In the subsale market, 384 caveats were lodged in Q1 2009, reflecting a 44.4 per cent increase from the Q4 2008 figure, according to Savills's analysis of caveats captured by the Urban Redevelopment Authority's Realis system.
Resales and subsales refer to secondary market transactions. Subsales involve projects that have yet to obtain Certificate of Statutory Completion while resales relate to projects that have received CSC. CSC is typically obtained anywhere from three to 12 months after the project receives Temporary Occupation Permit (TOP).
The average prices of resale and subsale transactions at the most popular projects in Q1 2009 were generally lower than in the preceding quarter as well as the same period last year.
City Square Residences, the most popular subsale project in the first three months of this year with 41 units, saw an average price of $804 psf, down 5 per cent from the $845 average subsale price in Q4 2008 and 15 per cent below the $947 psf average subsale price seen in Q1 2008.
Average prices for 11 of the 12 most popular subsale projects in Q1 this year fell between one and 14 per cent from the preceding quarter. The exception was Clementiwoods Condo, where eight subsale deals were done at an average of $664 psf in Q1, some 5 per cent higher than in the previous quarter but down 7 per cent from the same period a year ago.
Compared with Q1 last year, average prices for all 12 top-selling subsale projects in Q1 2009 fell between 4 per cent (Centris) and 36 per cent (The Cosmopolitan).
As for resale transactions, the 11 hottest developments saw quarter-on-quarter price declines ranging from 4 per cent (for The Lakeshore) to 19 per cent (Bayshore Park) in Q1. The Lakeshore was the most popular resale project in the first quarter, with 27 units changing hands, followed by Costa del Sol, with 11 units.
Savills Singapore head of research Priya Sengupta noted that the 11 most popular resale projects in Q1 were all in the mass and mid-tier sectors. 'Amid the economic uncertainties, affordability remains a key consideration for home buyers/investors; 100 of the 113 deals in the 11 most popular resale projects in Q1 were at below $1 million,' she said.
Resale activity for high-end projects was limited. 'This could be attributed to the price disparity between sellers and buyers as the latter expect further downward price adjustment in the near future, as well as the stricter home loan criteria in terms of loan-to-value ratio, especially for investors,' Ms Sengupta said.
Mass and mid-tier projects also saw more subsale transactions than high-end projects. Much of the subsales activity in Q1 surrounded projects that have either received TOP recently or are close to receiving it. For instance, City Square Residences, The Esta, The Sail @ Marina Bay, The Cosmopolitan and Rivergate have received TOP in 2008/2009, while One Amber and The Centris will get TOP soon, Savills said.
Market watchers said that this could be because many specuvestors who bought on deferred payment schemes (DPS) may be inclined to offload their units as the TOP date approaches, when they have to pay up the bulk of the purchase price to developers.
However, CB Richard Ellis executive director Joseph Tan pointed out that regardless of whether buyers opted for DPS, private housing projects are typically a hive of activity around the time they receive TOP, drawing buyers who want to move in themselves or to rent out immediately.
He also attributed the increase in subsale and resale transactions in Q1 to 'prices being at fairly reasonable levels now', with the stock market rally improving sentiment.
Mr Tan said that whether the buzz in the secondary market continues will depend on the stockmarket. 'So long as the Straits Times Index remains fairly stable, it will give comfort to investors that the property market is close to bottoming out, given the price correction in the past 12-15 months,' he added.
According to DTZ's figures, which are based on resale prices, the average freehold luxury condo and apartment price of $1,880 psf in Q1 this year marks about a one-third drop from the peak of $2,800 psf in late 2007/early 2008.
The most expensive subsale deal (in terms of psf price) in Q1 this year was a 29th floor unit at Orchard Residences that changed hands for $2,579 psf. In absolute dollar quantum, the most expensive subsale deal was an 11th floor apartment at The Tate Residences at Claymore Road, which sold for $5.93 million ($1,850 psf).
As for resale transactions, the top grossers were a 10th floor apartment at Richmond Park at Bideford Road which sold for $2,199 psf and a 25th floor unit at Four Seasons Park at Cuscaden Walk that fetched $6.5 million ($1,701 psf)
Tuesday, April 28, 2009
Declining property Prices
Data came below flash estimates.
URA released the property statistics for 1Q09 last Friday.
Data came out weaker than the flash estimates released earlier this month.
In the residential sector, the URA Property Price Index and Rental Index
plunged 14.1% and 8.5% QoQ to 139.9 and 139.4 respectively in 1Q09.
Primary transaction volume surged 520% to 2,596 units, driven by the
pent-up demand in the HDB upgraders' market. While subsale and resale
transaction volumes improved QoQ in 1Q09, these are still comparatively
weaker than the volumes achieved in 1Q-3Q 2008. Launched but unsold
inventories declined from 3,880 units (end 4Q08) to 3,333 units in 1Q09.
HDB resale prices fell marginally by 0.8% QoQ in 1Q09 and prices continued
to be supported by strong transaction volume which increased by 4.2%
QoQ to 6,446 resale transaction in 1Q09.
Rapid deterioration in the office sector. In the office sector, prices and
rents of office space fell 12% and 10.7% QoQ respectively in 1Q09. 603,855
sq ft of office space was completed in 1Q09 but occupied space declined
by 322,917 sq ft in 1Q09. As such, office vacancy rate increased from
8.8% (end 4Q08) to 10% (end 1Q09). On a more positive note, developers
continue to put on hold their plans to develop more office spaces as the
pipeline of office space declined by 472,535 sq ft in 1Q09. Retail sector
performed relatively better, with prices and rents declining by a smaller
4.2% and 3.3% QoQ respectively in 1Q09.
Too early to turn positive. While buying sentiment in the property market
has improved over the last 3 months, we believe that it is still too early to
turn positive on the property sector. Primary transaction volume fell to
more than a decade low of 4,264 units in 2008 and we believe that much of
the recent demand could have come from buyers who delayed their
purchases in 2008. In addition, there were precedents whereby strong
transaction volume in one quarter was just a 'blip' followed by decline in
volume and prices that continued for quarters. Sustainable recovery could
only come with improvements in economic data and employment rates. In
the office sector, there is still a potential supply of 13.9m sq ft of office
space in the pipeline but developers are likely to continue delaying plans
to build more office space and thus easing some pressure on the rising
office vacancy rate.
Monday, April 20, 2009
Household Maintenance - Spalling Concrete
Spalling Concrete
Spalling concrete is the cracking and bulging of the concrete ceiling caused by the corrosion of the reinforcement bars that forced the concrete to crack over a period of time.
Repair Method
Hack the bulging concrete until the reinforcement bars are exposed.
Use a wire brush to brush off the corroded bars.
Apply anti corrosion primer to the bars.
Apply bonding agent to affected area.
Patch up the affected area with polymer modified cement mortar or epoxy mortar
Allow it to dry before painting the affected area to match the existing colour.
Spalling concrete is the cracking and bulging of the concrete ceiling caused by the corrosion of the reinforcement bars that forced the concrete to crack over a period of time.
Repair Method
Hack the bulging concrete until the reinforcement bars are exposed.
Use a wire brush to brush off the corroded bars.
Apply anti corrosion primer to the bars.
Apply bonding agent to affected area.
Patch up the affected area with polymer modified cement mortar or epoxy mortar
Allow it to dry before painting the affected area to match the existing colour.
The Peak @ Toa Payoh
A Public Housing Development by Hoi Hup Sunway J.V Pte Ltd under DBSS at Toa Payoh lorong 1A
E-Application Starts from 15 April 09 to 28 April 09 Midnight.
No. of 3Rm units: 95 , 70sqm Price from $355,000
No. of 4Rm units: 306 , 91sqm Price from $468,000
No. of 5Rm units: 802 , 110 to 117 sqm Price from $539,000
Tenure : 99 Years lease
Facilities: Playgeound
Elderly fitness stations
Adult fitness stations
Community garden
Community plaza
Precinct pavilion
Barbeque area
TOP: 20 August 2012
The Peak at Toa Payoh is a high rise development with 2 blocks of 42 storeys and 3 blocks of 40 storeys.It is within walking distance to Toa Payoh Mrt Station and Bus Interchange. All units' living/dining area and bedrooms are fitted with inverter air-conditioners. built-in wardrobes, built-in kitchen cabinets. The ground floor lift lobbies are fitted with the proximity card access security system.
E-Application Starts from 15 April 09 to 28 April 09 Midnight.
No. of 3Rm units: 95 , 70sqm Price from $355,000
No. of 4Rm units: 306 , 91sqm Price from $468,000
No. of 5Rm units: 802 , 110 to 117 sqm Price from $539,000
Tenure : 99 Years lease
Facilities: Playgeound
Elderly fitness stations
Adult fitness stations
Community garden
Community plaza
Precinct pavilion
Barbeque area
TOP: 20 August 2012
The Peak at Toa Payoh is a high rise development with 2 blocks of 42 storeys and 3 blocks of 40 storeys.It is within walking distance to Toa Payoh Mrt Station and Bus Interchange. All units' living/dining area and bedrooms are fitted with inverter air-conditioners. built-in wardrobes, built-in kitchen cabinets. The ground floor lift lobbies are fitted with the proximity card access security system.
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