Singapore Property News This Week #235

Residential

Non-landed home sales increase by 60% in Oct

In October, developers sold 546 non-landed homes—a 60% increase from the 341 sold in the previous month. According to the Business Times, the launch of Principal Garden and Thomson Impressions made up 35.5% of the sales in October. The former had sold 113 units at a median price of $1,633 psf, while the latter sold 80 units at a median price of $1,399 psf. Despite the boost in sales, market experts explained that the overall private residential market remained muted due to the effects of the cooling measures. Ong Kah Seng from R’ST Research predicts that developer sales activity will remain sluggish for the rest of the year due to the holiday season.

(Source: Business Times)

Sentosa Cover bungalow sold for $2,775 psf

A bungalow at Sentosa Cover was sold for $23.8 million or $2,775 psf based on a land area of 8,576 sq ft. According to the Business Times, the psf price is the highest for a bungalow transaction in Sentosa Cove in the last two years. Nonetheless, it was priced lower than what two nearby villas had sold for in June and May 2013, before the total debt servicing ratio framework came into effect. The bungalow, which has three and a half levels, has a roof terrace and four bedrooms. The total built-up area stands at 10,000 sq ft, according to the Business Times.

(Source: Business Times)

The Poiz Residences to be launched in late-Nov

Half of the 731 units at The Poiz Residences will be launched on Nov 28 at an average of $1,380 psf. The private condo project, which forms part of a mixed-use development, includes a retail component and also a residential site. Despite market concerns of a potential oversupply, Tan Zhiyong from MCC Land is optimistic about sales as private housing demands have remained high. The Poiz Residences will consist of hotel-like “suites”, “urban” units for price-sensitive professionals and “habitat” units for families. Ong Kah Seng from R’ST Research said that affluent HDB upgraders may consider Potong Pasir given its proximity to the city area. Thus, sales is expected to be brisk within the area.

(Source: Business Times)

Indirect discounts less prevalent due to price-sensitive market

As buyers and sellers become more price sensitive, indirect residential discounts such as cash rebates and furniture vouchers are losing their favour, said the Business Times. Of 3,805 non-landed private home, which were sold by developers since May 25 this year, only 3% had indirect discounts, with an average discount of 1.7% of the transacted price. Tan Tee Khoon from KF Property Network said that for projects launched after the implementation of the total debt servicing ratio framework, developers had priced their developments to sell as they were aware of the loan restrictions and slow market sentiments. Mohammed Ismail from PropNex added that direct discounts are more popular now as a direct price cut will mean that some buyers will have a lower additional buyer’s stamp duty.

(Source: Business Times)

Commercial

Reits increase perpetual bonds before new rules take effect

Singapore landlords are loading up on bonds masked as equity to get around new rules that curb their debts amid a property slump. Real estate investment trusts (Reits) issued $700 million of perpetual notes with no set maturity date in 2015, according to Fitch Ratings. The Monetary Authority of Singapore (MAS) will be capping borrowings of Reits at 45% of assets from 2016. In addition, according to DTZ, office rents are expected to fall about 7% this year and another 8% in 2016 as demand slows. Falling values, rents and occupancies for debt-backed properties may slow growth further, said experts.

(Source: Business Times)

Bids for CPF Building surpasses $500 million

According to the Business Times, bids placed in a tender exercise that closed on Oct 28 for the CPF Building have surpassed $500 million. Fewer than 10 bids were placed, added the Business Times, and the two most aggressive bids came from a Singapore party and a foreign bidder. Market experts predict that with a small gap between the two top bids, the conditions offered by the respective bidders could determine which party was awarded the bid. The results of the tender will have to wait as bids are still being evaluated, said a spokesperson from CPF.

(Source: Business Times)