For Rent - Nim Road, Este Villa (District 28)

All races & nationalities are welcome

  

- 5 Storey (including basement)

- 5 + 1 bedroom

- Vacant

- Pool view

- Partial furnished

- Direct access from basement to 2 private parking lots

- Master bedroom with walk-in wardrobe

- Master bedroom toilet with bathtub & pool view

- Master bedroom with balcony

- Private lift to all floors

- Shuttle bus service available to Ang Mo Kio MRT station

- Mins drive to Greenwich V

-  Mins drive to TPE/SLE   

Asking: S$8.5K per month (Nego)

SMS to 9853-2213 for viewing

Desmond Lim (R024721B)

Miracles Realty Group (L3010524I)

First annual dip in HDB resale prices in 8 years

The Resale Price Index (RPI) for HDB flats for the full year of 2013 has dropped 0.6 per cent, the first annual decline since 2005.

SINGAPORE: Prices of HDB resale flats dipped by 0.6 per cent last year, marking the first annual fall since 2005.

According to data released by the Housing and Development Board (HDB) on Friday, the volume of resale transactions also reached a record low last year.

The HDB started recording such statistics in 1997.

The decline is down from the 6.6 per cent price growth seen in 2012, and the double-digit growth in the two years before that.

It also marked two consecutive quarters of price decreases in 2013, with prices falling 1.5 per cent in Q4.

This is slightly higher than the flash estimates released by the HDB earlier in the month.

For 2014, some property analysts think prices will remain flat, while others said prices could decline by four to eight per cent.

Nicholas Mak, executive director for research & consultancy at SLP International Property Consultants, said: "HDB resale prices have actually enjoyed quite a good run in the last four to five years. In fact, it's one of the price trends that actually defied the sub-prime crisis -- it's continued to increase.

“At such a high pace, there's actually quite a bit of room for prices to correct, if the market were to hit some kind of crisis. But luckily we're not facing any recession or crisis in the face, but due to the strong supply of BTO (Build-to-Order) flats that's expected to be offered in 2014, HDB prices are quite likely to come under pressure."

HDB resale transaction volume has also reached a record low.

Just 18,100 units were transacted last year -- a 28 per cent drop compared to 25,094 units which changed hands in 2012.

Colin Tan, director and head of research & consultancy at Suntec Real Estate Consultants, said this could be due to several factors such as the supply of flats eligible for sale and cooling measures.

He elaborated: "The low supply of maturing five-year flats -- I think, in the past decade we've built an average of six thousand (flats per year), compared with the previous two decades we were completing about 20,000 units per year. So this means the supply of resale flats has come down by more than half.

“The cooling measures bar you after you sell your flat, it's difficult to re-enter. So for the majority, if they can afford to keep their HDB flat they will do so. After all, if you've been looking at the median rentals, they're still pretty resilient,quite decent rental amount. So that has further reduced the amount of supply."

Another factor is the new rule barring new permanent residents from buying an HDB resale flat for three years, so some analysts said transaction levels could remain the same in 2014.

And some observers believe such low transaction levels may result in pent-up demand among upgraders going forward.

Some property analysts said another reason for the low transaction volume is that the demand has been shifted away from the HDB resale market.

For example, they said families may be drawn to cheaper Build-to-Order flats, while singles are now also able to buy a flat directly from the HDB.

Cash-Over-Valuation (COV) has also fallen across the board.
For instance, a four-room flat in Punggol would have commanded a COV of S$45,000 in the fourth quarter of 2012.

But in the fourth quarter of 2013, the COV has dropped to zero.

As for the HDB rental market, subletting transactions fell by three per cent in the fourth quarter of last year.

This is from 7,505 cases in the third quarter to 7,268 cases in the fourth.

However, the total number of HDB flats approved for subletting rose by 1.6 per cent in the last three months of 2013.

There were 44,966 units approved in the third quarter, compared with 45,764 in the fourth. 

- CNA/nd/gn

By Olivia Siong POSTED: 24 Jan 2014 09:42

Source: ChannelNewsAsia

Private home prices fall for first time in nearly 2 years

Singapore's fourth-quarter private home prices fell 0.9 per cent -- the first decline in almost two years as the government's mortgage curbs took effect.

SINGAPORE: Private home prices in Singapore fell in the fourth quarter, under the weight of policy measures and loan curbs.

The private-residential property price index fell 0.9 per cent in October-December to 214.3 points, according to final figures issued by the Urban Redevelopment Authority (URA) on Friday.

This is higher than the initial estimate of a 0.8 per cent drop.
For 2013 as a whole, private-home prices rose 1.1 per cent, compared with a 2.8 per cent rise in 2012.

As the market had expected, private home prices fell in the fourth quarter, hit predominantly by the government's mortgage curbs which were implemented in June 2013.

Private home prices in the core central region continued to moderate, falling 2.1 per cent in the fourth quarter.

Homes in the suburban areas recorded their first price drop since the second quarter of 2009, declining by 1 per cent.

Meanwhile, homes in the city fringe bucked the trend, with a 0.4 per cent growth in prices.
Property agency OrangeTee expects overall private home prices to fall by 2 to 5 per cent this year.

Christine Li, head of research and consultancy at OrangeTee, said: "For 2014, we know that for first half, prices might be flat or even surprise on the upside.

"But for the second half, I think some of the sites are not so attractive as those in the first half, and developers might find it tough to justify a benchmark price for that location, especially for sites not near the MRT stations. So for the second half, for the prices to hold up is a bit challenging."

14,948 new private homes (excluding executive condominiums) were sold in 2013 -- significantly lower than the 22,197 units sold in the previous year.

URA said the sale of 14,948 new homes by developers in 2013 is the lowest since 2009, when developers sold 14,688 new homes.

Analysts expect new home sales this year to be weaker than 2013, at around 12,000 units. That is mainly due to the cooling measures, loan curbs and fewer project launches this year.

Meanwhile, rentals of private homes fell by 0.5 per cent in the fourth quarter -- their first decline since the third quarter of 2009.

For 2013 as a whole, rentals increased by 0.9 per cent, lower than the 2.1 per cent increase in 2012.

Analysts expect rentals to moderate further as more housing units are completed in the coming years.

Nicholas Mak, executive director of SLP International Property Consultants, said: "We could also see the phenomenon of flight to quality. That means as you have more projects that are going to be completed, tenants will have more choices, and as rents come under pressure, some of these tenants may be moving from suburban areas to city fringe areas, while those that can afford higher budgets may be moving from city fringe areas to the prime districts.
"So on the whole, property in the prime districts will probably see stronger rental demand."

According to URA, 19,907 units, including executive condominiums, will be completed in 2014 while 24,153 units will be completed in 2015.
In comparison, about 14,400 units were completed in 2013. 

- CNA/nd/ms

By Wong Siew Ying POSTED: 24 Jan 2014 12:35
Source: ChannelNewsAsia

Rental yield for private flats falls, down 7.1% from 2012: SRX

SINGAPORE - In its latest 2013 private real estate round up, Singapore Real Estate Exchange (SRX) said the median gross rental yield for non-landed private residential properties dropped from 4.2 per cent to 3.9 per cent in 2013.

Here is the press release from SRX:

The Singapore Real Estate Exchange (SRXTM) today released the latest 2013 private real estate round up, which shows that non-­‐landed private residential rental yield has fallen to below 4 per cent in the past year.

Overall, the median gross rental yield for non-­‐landed private residential properties dropped from 4.2 per cent to 3.9 per cent in 2013, according to statistics compiled by SRXTM.

This represents a 7.1 per cent decrease in yield from 2012 and a 31.6 per cent decline since its peak of 5.7 per cent in 2008.

"For many investors seeking income from residential properties, 4.0 per cent is a psychological barrier when it comes to rental yields," said Jeremy Lee, SRX co-­‐founder and Chief Technology Officer.

"They generally seek yields above 4.0 per cent in order to justify the risks inherent in property as an asset. Below 4.0 per cent, investors worry that inflation will wipe out their gains."

Yield Performance Varied by Locale

Of the 34 planning areas in Singapore, 31 experienced a weakening in median gross rental yields, contributing to the overall decline.

"In the past two years, low interest rates have increased the willingness of some property investors to accept lower rental yields," said Mr Nicholas Mak, SLP International's executive director.

"This is illustrated in the rental yield table where the non-­‐landed residential rental yields of a majority of planning areas in Singapore have contracted in 2013."

On a planning area basis, yield disparity widened in 2013.

At the lower tier, four locations saw gross rental yields below 3 per cent.

All of them are prime areas, including Orchard, Tanglin, Southern Islands (Sentosa Cove), and Newton.

Newton experienced the lowest yield of 2.1 per cent.

"In the prime areas, the cost of homes is out of balance with the rents they command," added Lee.

"The homes are relatively expensive because of their location.

At the same time, there is downward pressure on rents, caused, in part, by the shrinking or disappearance of expatriate housing allowances."

At the top end, Outram, Yishun, Geylang, Tampines, and Jurong West registered gross yields of 4.0 per cent or above. 

The highest yield was seen in Outram, which saw its rental yield went up from 4.6 per cent in the first half of the year to end at 5.1 per cent.

Three planning areas bucked the downward trend. Downtown Core, Southern Islands and Outram saw their rental yields increase by 2.5 per cent, 15.5 per cent and 16.8 per cent, respectively. Southern Islands, which covers primarily the Sentosa Cove area, started the year slowly, posting a yield of 1.7 per cent during the first six months of 2013. By years end, its rental yield had improved to 2.7 per cent.

Said Mak: "The main reason for the increase in gross rental yields in the three planning areas, namely Outram, 

Downtown Core and Southern Islands, is that the median rentals in these areas have increased, while their median transacted prices have fallen. For example, in the Outram planning area in 2013, median rentals increased 8 per cent year-­‐on-­‐year, while capital values decreased by 3.7 per cent year-­‐on-­‐year.

"A possible reason for the increase in residential rentals in these three planning areas is that they are at the city fringe, and there was very little new supply of completed private housing units in 2013. This shows that rental demand in certain city fringe locations is still healthy."

Friday, Jan 17, 2014

Angela Tan

The Business Times

Source: AsiaOne

New non-citizen quota on subletting of HDB flats to prevent foreigner enclaves in HDB estates

From 16 Jan 2014, HDB will introduce a quota on the subletting of whole HDB flats to non-citizen (NC) subtenants (非公民租户顶限). This is to prevent the formation of foreigner enclaves in HDB estates, and maintain the Singaporean character of our HDB heartlands.

NC Subletting Quota Framework

2Today, only Singapore Citizens and Permanent Residents can buy HDB flats. But foreigners can rent rooms or entire flats. Currently, there is no cap on the number of flats sublet to such foreign tenants in HDB blocks. Less than 4% of HDB flats are sublet to foreigners, excluding Malaysians. However, the proportion could go up to 9% in some areas, or even 18% in some blocks.

3To prevent the formation of foreigner enclaves, HDB will implement a quota to cap the number of flats that can be wholly sublet to NCs in each neighbourhood and block. The quota will be set at 8% at the neighbourhood level, and 11% at the block level. It will apply to subtenants who are Singapore Permanent Residents and foreigners, but will not apply to Malaysians who can better integrate into our estates due to their cultural and historical similarities with Singaporeans.

4The quota will also not apply to subletting of rooms, to reduce the impact on those who rely on subletting for additional income, especially the elderly and low-income households.

5This aims to maintain the Singapore character of our HDB heartlands while balancing the housing and subletting needs of citizens and foreigners in Singapore.

Implementation Details

6The new policy will apply to all flat subletting applications received by HDB with immediate effect. All flat owners who sublet their flats to one or more NCs will be subject to the NC quota.

7A new e-Service is available on the HDB InfoWEB for members of public to check if a flat can be sublet to NCs (please see Annex A  (PDF 177KB) for the revised application process). The information will be updated on a monthly basis on the first day of the month, and is valid for the whole calendar month.

8Flat owners who are currently subletting their whole flat with HDB’s approval may continue to do so for the remaining approved duration. Once the existing approval expires or is terminated, any subsequent flat subletting application will be subject to the new policy.

Inclusion of NCs During Subletting Term

9Currently, the maximum period of subletting allowed per application is 3 years (if the subtenants are Singaporean/Malaysian), or 1.5 years (if they are non- Singaporean/Malaysian). Flat owners who have obtained approval to sublet their flat to Singaporean/Malaysian subtenants, and who wish to include NC subtenants subsequently, will be subject to the NC quota (please see Annex B  (PDF 176KB) for the revised application process). There will be no change to the approved subletting period if the remaining approved duration is less than 1.5 years from the date of inclusion of the NC subtenant. However, if the remaining approved duration for flat subletting is more than 1.5 years, it will be reduced to 1.5 years from the date of inclusion.

Actions against Unauthorised Subletting

10We would like to remind all flat owners that unauthorised subletting of the HDB flat is a serious infringement of the lease. HDB will take firm action against errant flat owners, which can include a fine and compulsory acquisition of the flat.

Enquiries

11For enquiries, the public can call 1800 555 6370 between Mondays and Fridays, 8am to 5pm.

Source: HDB

URA releases flash estimate of 4th Quarter 2013 private residential property price index

The Urban Redevelopment Authority (URA) released the flash estimate of the price index for private residential property for 4th Quarter 2013 today.

Overall, the private residential property index fell 1.8 points from 216.3 points in 3rd Quarter 2013 to 214.5 points in 4th Quarter 2013. This represents a decline of 0.8%, compared to the 0.4% increase in the previous quarter (see Annex A).  For 2013 as a whole, prices increased by 1.2%, less than the 2.8% increase in 2012.

Prices of non-landed private residential properties in both Core Central Region and Outside Central Region declined in 4th Quarter 2013. In Core Central Region, prices fell 2.2%, which is significantly larger than the 0.3% decline in the previous quarter. Prices in Outside Central Region decreased for the first time since 2nd Quarter 2009, by 0.6%, compared with the 2.2% increase in the previous quarter. In Rest of Central Region, prices increased by 0.8% in 4th Quarter 2013, compared with the 0.9% decrease in the previous quarter (see Annex B). For 2013 as a whole, prices in Core Central Region fell 2.1%, while prices in Rest of Central Region and Outside Central Region increased by 0.3% and 6.8% respectively. Prices of landed private residential properties fell for the first time since 2nd Quarter 2009, by 1.2%, after rising 0.3% in the previous quarter. 

The flash estimates are compiled based on transaction prices given in caveats lodged during the first ten weeks of the quarter, supplemented by survey data on new units sold by developers in the first two months of the quarter. The statistics will be updated 4 weeks later when URA releases the full real estate statistics for 4th Quarter 2013, which captures more data on the caveats lodged and the take-up of new projects. Past data have shown that the difference between the quarterly price changes indicated by the flash estimate and the actual price changes could be significant when the change is small. The public is advised to interpret the flash estimates with caution.

Source: URA (Published Date: 02 Jan 2014)

URA Private Residential Property Index

Some luxury home owners sell their places at a big loss

SOME luxury home owners who bought during market highs are selling their places at losses of up to $1.2 million as prices of posh homes take a tumble.

Experts say losses on that scale are sporadic, but that the wider luxury market is clearly softening in the wake of various government curbs.

Flash estimates released by the Urban Redevelopment Authority (URA) on Thursday showed that luxury home prices fell by 2.1 per cent last year - reversing the 0.8 per cent rise recorded in 2012.

Investors and foreigners have been driven away from luxury homes after heavier stamp duties were introduced, experts said.

As a result, just 4,041 homes were sold in the prime districts, which feature many upscale homes, last year, down 20 per cent from the 5,094 sold in 2012.

URA data showed the harsh losses some sellers are suffering.

A 1,679 sq ft unit at Paterson Suites for instance, suffered a loss of about $890,000. It was bought for about $4.5 million in June 2007, but sold at $3.61 million in November last year. This translates to a selling price of $2,150 per sq ft - a new low for the upscale project.

At the coveted housing district of Sentosa Cove, a 2,820 sq ft unit at The Coast took an even bigger hit of at least $1.2 million, when it was sold for $4.8 million last month. It was bought in January 2011 for $6 million.

Property agency DTZ's data also showed prices of non-landed homes in the prime districts of 9, 10 and 11 fell 0.5 per cent last year. "As we know, properties in prime districts see a large share of participation from foreigners," said 

Century21 chief executive Ku Swee Yong. "So the tougher additional buyer's stamp duty and the total debt servicing ratio basically ensured that foreign buyers were kept to less than 10 per cent islandwide."

In January last year, the Government imposed a 15 per cent duty on foreigners buying properties, while a 7 per cent duty was slapped on Singaporeans buying a second property. Tougher loan rules were introduced in June.

But while most of the losses suffered were on properties bought in 2007 and 2008 - when prices were buoyed to record levels by the burgeoning super-rich class - such examples are likely to be the minority, said Chesterton Singapore managing director Donald Han. Property prices in the city centre are, in general, still about 4.8 per cent higher than the peak in 2008, he noted.

Still, experts expect prime property prices to slide further as developers move to slash prices.

Foreign developers are given two years to sell all units, after their developments obtain a temporary occupation permit. 

To avoid penalty charges for missing the deadline, developers will lower prices to move units, said Ms Christine Li, research head of property agency OrangeTee.

Homes owners selling their units will, as a result, have to adjust their expectations, she said.

ocheryl@sph.com.sg

Monday, Jan 06, 2014

Cheryl Ong

The Straits Times

Source: AsiaOne

Curbs put squeeze on landed home prices

THE Government's efforts to cool the property market are biting in a somewhat unexpected segment - landed homes.

This coveted, once-resilient portion of the housing market has just registered its first price dip in more than four years along with plummeting sales numbers.

The slide comes amid growing evidence that curbs have reined in prices for non-landed homes.

Experts point to well-heeled buyers in their 40s wishing to buy landed homes but are having trouble getting loans under tough new rules introduced in June last year.

In the latest flash estimates from the Urban Redevelopment Authority (URA) on Thursday, the landed property index dropped 1.2 per cent for the three months to Dec 31, down from a climb of 0.7 per cent in the preceding quarter.

Experts had been expecting the slide, given that the tighter bank financing rules have made it harder for buyers to afford landed properties.

Also, prices of landed homes seem to have reached their peak.

"Here, we have the first confirmation that landed properties are affected," said Century21 chief executive Ku Swee Yong.

He noted that landed properties cannot generally be bought by foreigners and is a less speculative segment. "Yet the total debt servicing ratio (TDSR) is biting into this category."

Buyers of landed properties have been hit harder by the new TDSR framework, which caps a borrower's total monthly debt payments at 60 per cent of gross monthly income across the board - as they already have more debt.

"The loan restrictions are stacked against this category of buyers, who are generally over 40 years old, with other financial commitments such as cars and insurance," added Mr Ku.

The number of landed homes sold took a beating as a result. Last year, only 1,330 units were sold compared with the 3,075 landed homes sold in 2012.

Mr Alan Cheong, Savills Singapore's research head, noted that the decline was mostly in the second half of the year, when only 465 units were sold after the TDSR rules came in.

This was well down from the 865 units sold in the first six months of the year.

Mr Ong Teck Hui, Jones Lang LaSalle's national director of research and consultancy, also said that landed property prices have been at record levels, and that buyers have been showing resistance to the high or unrealistic asking prices seen on the market.

Jones Lang LaSalle data showed that prices of landed properties soared 86 per cent from mid-2009 to 2013, outpacing the 56 per cent jump for non-landed homes in the same period.

However, Mr Cheong pointed out that though landed property values appreciate faster than non-landed homes, their prices could also fall at a faster pace.

But landed homes - especially those with freehold lease terms - still remain worthy investments, as demand for these properties will continue to outstrip supply, experts said.

Landed homes under construction make up only 3 per cent of the total number of uncompleted homes here, said Mr Ong.

"Due to their limited supply, landed homes are still good investments over the long term. But with signs of price corrections, some buyers may hold off their purchases hoping to decide later, at a more attractive price."

Mr Cheong also said that buyers looking to invest in this segment should note that landed homes tend to deliver better returns than non-landed homes over the longer term.

ocheryl@sph.com.sg

Monday, Jan 06, 2014

Cheryl Ong

The Straits Times

Source: AsiaOne

Resale-flat prices may tumble 5-8 per cent

SINGAPORE- Resale prices of public homes fell 1.3 per cent in the fourth quarter of last year - the largest drop since the first quarter in 2009 - according to estimates released by the Housing Board yesterday.

And the slowdown may be more acute this year, with resale prices expected to go down by 5 to 8 per cent, according to both PropNex and ERA Realty.

Flash estimates from the Urban Redevelopment Authority showed that private home prices have also declined, by 0.8 per cent, in the fourth quarter of last year, the first time in nearly two years. Prices of non-landed private residential properties in the Outside Central Region dropped for the first time since 2009 by 0.6 per cent.

Where the HDB resale market is concerned, PropNex Realty chief executive Mohamed Ismail foresees a "quiet year (ahead)".

He said that the total number of HDB resale transactions this year could slump below 20,000, the lowest since the turn of the decade. Resale volumes have ranged between 24,000 and 37,000 over the past five years.

"It comes as no surprise...in the light of the numerous property-buying restrictions," he explained, citing the housing curbs for Singapore permanent residents, who now have to wait three years before they are eligible for a resale flat.

Mr Eugene Lim, key executive officer of ERA Realty, pointed out that the ramped-up supply of Build-To-Order (BTO) flats has offered first-time homebuyers "a good number and variety of choice", significantly reducing demand for resale flats.

He added: "By allowing singles to buy two-room BTO flats in non-mature estates, resale demand from this group is also reduced."

OrangeTee head of research and consultancy Christine Li said that prices of private homes could also moderate between 2 and 5 per cent this year.

"Many buyers have to cut back on affordability now, especially with cooling measures like the Total Debt Servicing Ratio (TDSR) framework," she said.

Under the TDSR, which was introduced by the Monetary Authority of Singapore in June, a property buyer's debt repayments cannot exceed 60 per cent of his gross monthly income.

Ms Alice Tan, associate director and head of research at Knight Frank Singapore, said that demand in the mid-tier and mass-market segments is likely to be more resilient, compared to the high-end segment.

Even so, the falling cash-over-valuation for HDB resale flats may set back demand for mass-market homes, as "HDB upgraders would have less returns to upgrade to private property", she added.

Friday, Jan 03, 2014

Jacqueline Woo

My Paper

Source: AsiaOne