Singapore Property News This Week #199

Residential

Feb rents for condo and HDB falls by 0.8% and 0.3% respectively

Rental price for condominiums and HDB units have fallen by 0.8 percent month-on-month and 0.3 percent month-on-month in February from January. Compared to February 2014, rental prices for condominiums have fallen by 6.2 percent. Eugene Lim from ERA Realty predicts this downwards trend will continue due to an increase in non-landed residential properties this year. Other factors such as higher property taxes and slower inflow of expatriates may have affected the leasing market according to Lim. Lim expect rents to fall by 6 to 8 percent for this year. The rental index for non-landed private residential units in the Core Central Region (CCR) and the Rest of Central Region (RCR) had fallen by 1.2 percent and 1.5 percent respectively in February, from the previous month, according to data by SRX. Not only so, rental volumes have fallen by 25.8 percent from the 3,487 units in January to 2,586 units in February. Ong Kah Seng reasoned that the fall in demand for private residential properties could have been because of the festivities in February.

(Source: Business Times)

Feb condo resale price stagnates due to poor market sentiments

According to data from SRX, resale prices of condominiums and other private apartments have remained flat in February from the previous month. Mohamed Ismail from PropNex believes that the lack of urgency to buy has resulted in unchanging resale prices. Not only so, sellers have been unwilling to let it go at a lower price. He believes that if cooling measures are lifted, public’s sentiments may improve and thus lead to an improvement in the housing market. According to data by SRX, about 321 non-landed private homes changed hands in February. This was 6.7 percent less than the 344 units that were resold in January. Not only so, the resale volume in February was 84.3 percent lower than Apirl 2010, when resale volumes peaked at 2,050 units.

(Source: Business Times)

40% of launched units at Kingsford Waterbay already sold

About 40 percent of the 320 launched units at Kingsford Waterbay have been sold. Residential units at the mixed-use development have been sold from $1,050 psf to $1,180 psf. Retail space that are between 431 and 452 sq ft have also been sold for about $2,700 psf. Ong Kah Seng from R’ST Research said that the suburban leasehold’s competitive prices have helped to boost interest in the project. The development has a 99 year lease and consists of 1,165 condominium units in total. Besides that, the development also comprises of 6 strata terrace houses, 2 strata semi-detached houses, a childcare centre and 6 shops. According to the Business Times, two-bedders and three-bedders have been popular among buyers due to tighter credit conditions. The implementation of the Total Debt Servicing Ratio framework has made it more difficult to finance homes, thus, buyers may be more inclined to purchase smaller units. Nonetheless, Kingsford Development board chairman, Cui Zhengfeng believes that sales for two-bedders and three-bedders have been high because a majority of those units faced the river.

(Source: Business Times)

GCB at Ridout Rd on sale for $88 million

A good class bungalow at Ridout Road is on sale and is expected to be sold for about $88 million or $1,200 psf. The bungalow has a total of 73,277 sq ft and comprises of a two-storey bungalow with two single-storey outhouses. Ho Tian Lam from DTZ said that the prime location of the space and its large size will be the main draw for buyers. Under the URA Master Plan 2014, the site is zoned for residential use and is within Ridout Park. The sales tender for the property will cease on April 8.

(Source: Business Times)

Khaw: Govt aims to ease housing market gradually

National Development Minister Khaw Boon Wan said that the government is aiming to ease the housing market gradually to avoid a market crash. Previously, Foo Mee Har, West Coast GRC Member of Parliament had warned that cooling measures may be overdone if the market continues to spiral downwards. Lee Bee Wah also added that the Additional Buyer Stamp Duty (ABSD) have contributed to more Singaporeans investing in riskier foreign properties. Lee had suggested that the ABSD should be lifted so that Singaporeans with spare cash can invest in local properties instead. On the other hand, Khaw said that HDB resale prices have increased by 87 percent from 2005 to 2014. Khaw added that he would look into shortening lease tenures in some BTO projects to cater to different needs. He also said that the ministry may consider increasing the $10,000 HDB income ceiling as couples are marrying later and income levels are increasing.

(Source: Business Times)

North Park Residences will be launched at the end of March

North Park Residences which is located at Yishun is slated to be released at the end of this Month. The project consists of 920 units that are targeted at both investors and owner-occupiers. North Park Residences is part of Northpoint City, an integrated development that will be completed in 2018. Northpoint City is expected to be home to more than 500 retail and F&B outlets. Not only so, the residential project is located near to amenities such as the Khoo Teck Puat Hospital. According to market experts, integrated residential developments like North Park Residences are expected to yield higher psf pricing than pure residential projects.

(Source: Business Times)

Lease infringement bill has been tabled

A new bill that proposes to vary the quantum penalties that the HDB may impose on lease infringement cases has been tabled. Currently, flat owners who have been found to engage in unauthorised subletting, will be fined 15 percent of the flat’s price. However, if the new bill is passed, the penalty will be capped at $50,000. The new bill suggests that according to the severity of the lease infringement case, flat owners may deserve a higher penalty. According to the Business Times, this bill will give HDB officers more powers in investigating lease infringement cases, as they will be allowed to enter premises with a warrant.

(Source: Business Times)

Jurong West site won for $630.13 psf ppr

A Jurong West site has been won by MCL Land for $630.13 psf ppr or $338.12 million. This was 3.2 percent less than the top bid of $651 psf ppr of its neighbouring parcel. Koh Teck Chuan from MCL Land believes that as the profile of Jurong is being elevated, demand for properties within the region will increase. The breakeven cost for the project is estimated to be about $1,000 psf and the selling price is predicted to be around $1,300 psf according to market experts. The site at Jurong West Street 41 is expected to yield about 600 units.

(Source: Business Times)

Commercial

2 Shophouses at Pagoda St sold for $20m in total

A pair of shophouses at Pagoda Street has been sold for $20 million or $3,500 psf. The total built-up area is estimated to be about 5,700 sq ft. Market experts said that the shophouses have been sold for a relatively high price. The shophouses are located near Chinatown MRT station and have a 999-year leasehold tenure from 1875. Currently, the ground floors of the shophouses are leased to a souvenir shop and a café. Mary Sai from Knight Frank said that the high-price transaction is not expected as owners of freehold shophouses at Chinatown, Boat Quay and Telok Ayer are expecting about $3,000 psf on built-up area.

(Source: Business Times)

More than 100 strata titled offices will be launched at GSH Plaza

More than 100 strata titled office units will be launched for sale at GSH Plaza. GSH Plaza, which was formerly known as Equity Plaza, consists of 28 storeys. Located at the Central Business District, the building has 259 strata office units in total. Not only so, the building has two floors of retail space. The building will also be undergoing massive refurbishment.

(Source: Business Times)