Singapore Property News This Week #155

Residential

14 out of 18 HUDC estates have been privatized

Serangoon North HUDC Estate is the fourteenth out of eighteen HUDC estates to be privatized. Out of the remaining four estates, three estates at Hougang North Neighbourhood 3, Hougang North Neighbourhood 7 and Potong Pasir are in the process of privatization; while another at Braddell View is in the midst of garnering support. Such privatization requires support from at least 75 per cent of the residents. En bloc sales in mature sites such as Serangoon North HUDC are still attractive to developers due to the sheer difficulty in applying for such land parcels under government land sales programmes.

(Source: Channel NewsAsia)

April’s HDB resale prices continues to soften

From March to April, HDB resale prices for three, four and five-room flats have fallen 0.2 per cent, 0.8 per cent and 0.4 percent respectively. While prices of executive flats have surged by 1.2 per cent, overall prices are 0.2 per cent lower this April, as compared to in March. In April, prices plummeted despite a 4.4 per cent month-on-month increase in resale transactions, resulting in a total of 1,484 transactions. HDB resale prices also saw a drop of 5 per cent year-on-year in April, as total resale transactions dipped by 14.4 per cent year-on-year, according to the Singapore Real Estate Exchange. The overall median transaction over X-value, which measures how much people pay over recent prices, have been pushed down even further from a negative $3,000 in March to negative $4,000 in the April. This is expected to keep resale prices low and is likely to attract more buyers according to Eugene Lim, key executive officer of ERA Realty.

(Source: Business Times)

Home buyers unsure about how TDSR affects loan applications

According to a survey by UOB, one in three home buyers are unfamiliar with the total debt servicing ratio (TDSR) framework. While some are unsure of how the TDSR framework would affect loan applications, others do not understand how the new ruling would apply to them. Through the TDSR framework, the Monetary Authority of Singapore aims to encourage Singaporeans to borrow judiciously. Introduced in June 2013, the framework states that a maximum of 60 per cent of one’s gross monthly income can be used to service loans.

(Source: Business Times)

Prices for The Panorama slashed by 10%

Following price cuts by its competitors, Wheelock Properties may be slashing prices for The Panorama, a condominium at Ang Mo Kio. At its re-launch, unit prices may be as much as 10 per cent lower than at the initial launch. Depending on unit size, The Panorama will be sold from $1,100 to $1,310 per square foot. One-bedders at The Panorama which are between 431 and 474 square feet will start from $565,000; two-bedders between 678 to 700 square feet are marketed from $820,000; and three bedroom units will sell from $1,175,000 for 990 to 1,066 square feet. Previously, 58 of the 698 units at The Panorama were sold for a median price of $1,343 psf in January. However, the show flat was closed in mid-March due to poor turnout.

(Source: Business Times)

Minister says studio apartments make a lot of sense for seniors

In his blog, Housing Matters, Minister for National Development Khaw Boon Wan said that senior citizens profit about $200,000 by selling their old flats and moving into studio apartments. This is possible if outstanding loans have been paid off and if the new studio apartment is fully paid for. Thus, according to Minister Khaw, it is practical for senior citizens to move into studio apartments, especially if their children have moved out, as the net sale proceeds may support retirement needs. Beyond that studio apartments, which are elderly-friendly, are more conveniently located within HDB towns. Minister Khaw suggested that besides moving into a studio apartment, senior citizens may also rent out available rooms in their old flats so as to support their retirement.

(Source: Business Times)

Commercial

CBRE releases early-bird discount for Parkway Centre office units

Located at Parkway Centre, 22 strata office units that are between 732 square feet and 1,356 square feet are on sale. Marketed by CBRE at a three per cent early-bird discount, from $1,649 to $1,746 per square feet, the units have leases that will expire between November this year and July 2017. The 22 office units which are located between the third and thirteen floors are part of an office complex that has a 66-year lease remaining. They are part of the 51 units that were acquired in 2012 by the Parkway Investment Holdings. In 2012, units in the office complex were priced from $1,600 to $1,810 per square feet.

(Source: Business Times)

50% cut in lease for prepared industrial land

Although net allocation of prepared industrial land (PIL) is positive, their leasing and rental to companies is 50 per cent less than in Q1 2014 said JTC Corporation. Gross allocation of PIL dipped from 118.1 hectares in Q4 2013 to 48 hectares in the following quarter. According to JTC, this was due to lower gross allocation in the generic land and Jurong Island segments; not only so, take-up rates were higher in the chemical and logistics sectors in the following quarter. Nonetheless, the gross allocation in the earlier quarters of 2013 was an average of 50 ha per quarter. This is comparable to the gross allocation this quarter.

(Source: Business Times)

New operator wanted for newly revamped hotel along Robertson Quay

The Gallery Hotel at Robertson Quay is looking for a new operator after it has undergone a facelift. RB Capital, which manages the 223 rooms at the Gallery Hotel, has appointed JLL’s Hotel & Hospitality Group to launch a Request For Proposal exercise from hotel management companies to operate the hotel. RB Capital has invested $50 million to $70 million to give a new life to the hotel, and to integrate the retail podium of The Quayside with the hotel. The hotel which was acquired for $232.5 million last year is a 10-storey freehold building that will lease out about 63,000 square foot of retail space.

(Source: Business Times)