Singapore Property News This Week #212

Residential

May’s condo resale price remains flat

According to the Business Times, the resale price of condominium units has remained flat in May from the previous month. In the core central region, resale prices of condominium units fell by 1.2%, however resale prices in both the city fringe and suburbs increased by 0.8% and 0.3% respectively from April to May. According to SRX, the median transaction over X-value showed that transactions made in District 9 were negative $20,000. As such, majority of the units in District 9 have been sold for an average of $20,000 less than the market value estimated by SRX. Eugene Lim from ERA Realty said that prices seem to have stabilised in the resale market. Lim added that prices from December to May have fallen marginally as home owners prefer to sell their houses due to difficulties in securing a tenant.

(Source: Business Times)

May’s condo rental falls by 0.6% month-on-month

Rentals for condominium units have fallen by 0.6% month-on-month in May from April. Market experts believe that this downwards trend will persist till 2016. Nicholas Mak from SLP International said that rental prices have been pushed down due to an oversupply of private condominium units, especially in the suburbs. To retain tenants, home owners have been more willing to lower prices, said the Business Times. In May, rents of condominium units in the central area rose by 0.2% month-on-month, while rentals in the city fringe and suburbs fell by 0.6% and 1.5% in the same period of time. Rentals of condominium units in the core central region have risen as tenant are choosing to move to better-located premises when their leases expire, said Mak. Eugene Lim from ERA Realty believes that the less than stellar rental prices indicate that the residential market has not recovered. Ong Kah Seng from R’ST Research echoes Lim’s concerns and pointed out that the overall leasing demand is still weak.

(Source: Business Times)

Government cuts private housing land supply

According to the Business Times, the government has cut the land supply of private housing in H2 this year, in anticipation of a weaker market. In H2 this year, only 7,852 private residential units will be released across 17 confirmed and reserve list sites. This is 11% lower than in H1 this year. Only 4 residential sites have been offered in the confirmed list, according to the Business Times. These 4 sites can yield 2,130 units. According to market experts, the government has been cutting land supply for private homes since H2 2010 due to a slowdown in demand. Christine Li from Cushman & Wakefield believes that the government is shifting its focus from keeping price growth low to maintaining a steady supply of land to meet long-term housing demand.

(Source: Business Times)

Khaw: Lease Buyback Scheme well received

According to the Minister for National Development Khaw Boon Wan, the latest Lease Buyback Scheme (LBS) has been well received since it took effect in April this year. Khaw said that 450 households had applied for the scheme. Of the 450 applications, 214 are four-room flat owners and the rest own three-room or smaller flats. In April, the scheme was extended to include four-room flats owners. The income ceiling was also raised from $3,000 to $10,000. Under LBS, elderly living in HDB flats may use their remaining flat leases to fund their retirement plans without leaving their flats. Khaw added that the ministry will review schemes for studio apartments and two-room flats, in order to cater to the needs of different groups.

(Source: Business Times)

GCB at Belmont Road fetched a price of $44m

A good class bungalow that is situated at Belmont Road has been sold for more than $44 million or $1,413 psf. The 31,125 sq ft freehold site has five bedrooms and a pool. According to market experts, the site may be subdivided into two plots that are about 1,400 sqm each. Among the other good class bungalows that have recently changed hands, is a freehold site at Ridout Road. It was sold for $1,251 psf based on its 73,277 sq ft of land area. This translates to a transaction of about $91.69 million.

(Source: Business Times)

Commercial

White site at Central Boulevard expected to draw strong interest

A white site at Central Boulevard that is situated between the old Shenton Way financial district and the new Marina Bay downtown is expected to draw strong interest due to its prime location. Due to its size and location, the Business Times said that the site will have a bid price that is between $1.7 billion and $2 billion. According to Desmond Sim, the hefty bid price will sieve out smaller developers. The white site which is 1.12-ha large can yield about 1.2 million sqft of commercial space and 375 residential units. It has a gross plot ratio of 13 and is situated near the Downtown MRT Station.

(Source: Business Times)