Singapore tops office rental growth in Asia: Jones Lang LaSalle - Channel NewsAsia

The strong rental growth in the third quarter comes on the back of low vacancy levels in the city-state, the real estate consultancy says.

SINGAPORE: Office rental rates in Singapore grew 3.5 per cent from the previous quarter in the third quarter of the year, the fastest growth in Asia, Jones Lang LaSalle said.

The strong rental growth comes on the back of low vacancy levels in the city-state, the real estate consultancy said in a report released on Wednesday (Nov 19).

Office rents in Tokyo, Beijing and most emerging South-east Asia markets grew by 1 to 2 per cent quarter-on-quarter, while Hong Kong saw marginal growth of 0.4 per cent driven by the top end of the market, the report said.

In the Asia-Pacific region, New Zealand saw strong rental growth in the third quarter as well, with rents in Auckland and Wellington growing between 3.8 per cent and 4.6 per cent from the previous quarter.

Over the next 12 months, the strongest rental growth in Asia Pacific is likely to be seen in Tokyo, Beijing and Auckland, Jones Lang LaSalle said, adding that the growth rate in Singapore will likely slow sharply due to upcoming supply.

- CNA/cy

Source: Channel NewsAsia (19 Nov 2014)

Singapore private home sales up 18% in October - Channel NewsAsia

Property developers sold 765 new private homes last month, up from the 648 units sold in September, according to the Urban Redevelopment Authority.

SINGAPORE: The private housing market picked up pace in October, with sales of new homes rising 18 per cent from the previous month.

Excluding executive condominiums (ECs), developers sold 765 new units last month, up from the 648 units sold in September, data from the Urban Redevelopment Authority (URA) showed on Monday (Nov 17). Including ECs, 855 units were sold in October, up from 707 units in September.

The improved sales came as more units were launched for sale. A total of 649 units were launched in October, up from the 514 units launched in the previous month.

Sales in October were driven by the newly-launched Marina One Residences. The project sold about 330 units - about half of October's sales volume - at a median price of S$2,228 per square foot (psf).

DEVELOPERS CLEARING EXISTING STOCK

Older projects Coco Palms and Lakeville also managed to clear units without developers having to offer discounts. Coco Palms cleared 34 units at a median price of S$1,039 psf, while Lakeville sold 32 units at a median price of S$1,340 psf.

Marina One Residences was the only new project launched last month, and property watchers said this is a sign that developers are focusing on clearing old stock.

According to URA, there were 19,270 unsold units in the market.

ERA Realty's key executive officer, Eugene Lim, said: "The loan curbs and ABSD (Additional Buyer's Stamp Duty) framework have somewhat dried up buying momentum in the market and developers would prefer to focus on clearing existing stock rather than introduce more new stock into the market."

Developers were also launching their projects in phases, noted Desmond Sim, head of research at CBRE Singapore. He added: "Going forward, developers will be eye-balling each other, timing themselves accordingly by putting slow launches into the market so that it will be slowly absorbed and not overcrowd the market."

However, a further spike in buying activity is expected in November as ECs make a comeback after almost a year. Already, all 546 units at the Lake Life EC have been sold.

- CNA/cy/ac

Source: Channel NewsAsia (17 Nov 2014)

TDSR Running Out of Steam? - SRX

One conclusion that we can draw from the Cooling Measures is that placing limits on borrowing is more effective than levying stamp duty taxes at bringing Singapore property prices down.

According to the SRX Property Index for Private Resale Flats, the first Additional Buyers Stamp Duty (ABSD1) did little to impact both resale volume and prices. 

While the foreign buyer surcharge of 10% discouraged some investment from overseas, diverting money originally destined for Singapore to other international property markets like London and New York, ABSD1 actually spurred the local investment market.

ABSD1 did local investors a favor because it removed some foreign competition for private properties while creating expectations for lower prices.  Singaporeans thought that they could take advantage of the lower demand by foreigners to get a better price.

However, things didn’t go according to plan because of low interest rates.  As a result of the low interest rate environment, property was a much more attractive asset class than cash and bonds.  Furthermore, financing property investments was cheap.

As a result, enough Singaporeans, armed with inexpensive financing and less competition from overseas entered the market, to keep driving prices upward.

Recognizing ABSD1 did little to discourage local demand for private property, the government introduced ABSD2, levying a 15% tax on most foreigners and a 7% stamp duty on Singaporean purchasing a second property.

ABSD2 reduced the resale volume range from 781-1,439 units in 2012, excluding Chinese New Year, to 581-734 range during the first half of 2013, excluding Chinese New Years and January.

ABSD2 didn’t cause a meaningful decline in price because sellers, believing that Cooling Measures would not last forever, were willing to give a little on price but not that much.

Remember, transacting real estate requires a willing buyer and a willing seller.  Sellers knew that the stamp duty taxes had not altered the fundamental value of their homes.  As such, sellers could justify selling at the price plateau – since prices were high and were unlikely to go up.  In enough instances, they resisted going below the price plateau by exiting the market and sitting on the sidelines.

The government clearly recognized the stamp duty taxes, even when applied to Singaporeans, were not doing the trick so it introduced the Total Debt Servicing Ratio (TDSR) in January 2013 in an effort to limit Singaporeans from over-extending themselves with debt.

TDSR worked. 

It took a while but finally private, resale prices capitulated in July 2014 when private resale flat prices declined 5.6 % from their peak. 

Since then, prices have reached a new plateau, bouncing around the 168.8 and 169.8 range of the SRX Price Index for four consecutive months.  (As of October, SRX Property reports that prices have declined 5.2% on a slight increase of 0.4% since September.)

This new plateau suggests a new support level for prices in the private, non-landed market.  In other words, prices seem to be stuck.

In addition, in looking at the SRX Property graph, since March 2014, resale volume seems to have achieved a new equilibriumaround 400 units transacted per month.

This new equilibrium in resale volume, coupled with the price plateau, suggests that the TDSR might have run out of steam in terms of its effectiveness in reducing prices further.

Therefore, for prices to continue to decline, something must be introduced into the equation to alter the market’s dynamics. 

So, the first question, is the government satisfied with a 5% decline?

If not, then what additional policy tools do they have available?

Given that the Cooling Measures have proven that price is a stubborn variable in the property market, if the government wants the price to drop further in the private resale market for non-landed properties, the only way to do this is to increase supply. 

Demand, at its current level, is about as far down as Cooling Measures can push it.

posted on 20 Nov 2014

Source: SRX (20 Nov 2014)

6 months to sell a condo, 3 to offload a flat - SRX

PRIVATE condominium sellers are taking nearly six months to secure a sale, the longest wait in over two years, new data shows.

It also takes far longer now to find a buyer for a Housing Board flat - with a three-month wait on average.

Data compiled by the Singapore Real Estate Exchange (SRX) shows that private non-landed units spent a median of 120 days on the market in the first quarter, rising to 137 days in the second quarter and 154 days in the third.

Last month, they spent 172 days - almost six months - on the market before being sold. It is a far cry from 88.5 days, or less than three months, a year back.

The median wait to sell HDB units has grown as well, from more than 60 days per quarter in 2012 and last year to 91 days in the third quarter this year.

These long waits reflect weakened demand, consultants say. Upcoming increases in total residential stock will further pressure owners to sell, said Century 21 chief executive Ku Swee Yong.

In the HDB market, resale demand has suffered owing to factors such as the large number of new Build-To-Order flats, giving first- and second-time buyers a more affordable option, said PropNex CEO Mohd Ismail.

There has also been growing supply in the HDB resale market from people collecting keys to second homes, leading to sliding prices in the past five quarters.

For private homes, the total debt servicing ratio and additional buyer's stamp duty have discouraged buyers.

New private home sales are not expected to exceed 9,000 this year, far lower than last year's 17,590 annual sales figure.

The median price spread - the difference between asking and transaction prices - has also risen in both public and private residential markets, SRX found.

In the HDB market, the median price spread rose from 4.7 per cent in the first quarter to 4.9 per cent in the second and 5.9 per cent in the third. It was 3.8 per cent in the third quarter last year and 2.1 per cent a year earlier.

For private non-landed properties, the spread went from 6.3 per cent in the first quarter to 7.3 per cent in the second and 8.2 per cent in the third. It was 4.9 per cent in the third quarter last year and 4.1 per cent a year earlier.

While median days on market is expected to rise, price spreads may keep edging up though they are likely to stabilise soon, said OrangeTee research manager Wong Xian Yang. Valuations could be adjusted and sellers are likely to lower asking prices.

Private condo owners tend to have more holding power, but weak leasing demand for newly completed mass market condos may pressure some owners to sell, said R'ST Research director Ong Kah Seng.

The longer waits and growing price spread do not necessarily mean prices will soften further, said Savills Singapore research head Alan Cheong.

"Usually, (this could be the case) for more liquid markets like equities... Fortunately, real estate is not a homogeneous product with factors including location and unit size... all having an effect on pricing. Still, with a negative economic indicator such as increased days on market, creditors may feel compelled to quickly act against delinquent loans."

posted on 19 Nov 2014

BY RENNIE WHANG

Source: SRX (19 Nov 2014)

S'pore posts biggest drop in house prices in the region - PropertyGuru

House prices in Singapore fell 4.3 percent year-on-year in the third quarter, making it the largest drop across several Asia Pacific markets, according to JLL and reported in the media.

The drop in prices came as extra stamp duties and tighter bank lending rules continue to weigh on market sentiments.

JLL expects house prices in Singapore to continue to correct over the next quarters, with a decline of -2 percent to -6 percent in the quarters leading up to end-2015.

In other markets, Manila registered the largest year-on-year increase in house prices at 12.7 percent, while Shanghai came in second with an 8.9 percent increase in prices.

“Modest price growth is expected in Beijing and Shanghai as sales volumes may improve in the next 12 months after the loosening of mortgage lending policy,” said the report.

“In emerging SEA, most markets should see moderate price growth supported by persisting buyer interest. However, capital value growth in Kuala Lumpur is likely to be driven by the introduction of higher priced units.”

Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg

Source: PropertyGuru (21 Nov 2014)

Leasing volume up 15% in Q3: Savills - PropertyGuru

The leasing market was buoyant in the third quarter of the year, according to a recent report by Savills Research, Singapore.

Leasing volume of private homes reached a new record of 17,775 cases, registering a quarterly increase of 15.2 percent or an 11 percent growth year-on-year, citing Urban Redevelopment Authority (URA) data.

From January to September 2014, there were a total of 46,632 leases inked, 8.7 percent higher than last year’s 42,899 leases recorded over the same period.

However, rents throughout all regions continued to soften by 0.8 percent quarter-on-quarter, after a dip of 0.6 percent in the second quarter. Core Central Region (CCR) saw the widest decline by 1.9 percent, followed by the Rest of Central Region (RCR) which weakened slightly by 0.2 percent while rents in the Outside Central Region (OCR) saw no change.

Rents of non-landed residential properties reduced by 1.1 percent in Q3 compared to the 0.2 percent drop in the previous quarter.

The average monthly rent of high-end condominiums continued to fall, with average monthly rents down by 2.2 percent quarter-on-quarter to $4.66 per sq ft.

The report also noted the softening rent is most evident in the CCR especially among luxurious residential units, and a possible reason is the shrinking housing budgets in a market where there is an ever increasing supply of new homes.

Alan Cheong, Head of Research at Savills said, “With leasing numbers still rising strongly, landlord sentiment will be supported and although rents may soften somewhat, we are still not too concerned with the onslaught of supply.”

Photo by Muneerah Bee

Muneerah Bee, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email muneerah@propertyguru.com.sg

Source: PropertyGuru (19 Nov 2014)

International award for Punggol's waterfront plan - PropertyGuru

The Punggol Master Plan has won an award at the recent Excellence on the Waterfront Awards in the Plan Honour category.

Conferred by the US-based Waterfront Centre, the Excellence on the Waterfront Awards is in recognition of top quality design and development work on waterfronts.

According to the website, the jury felt the Master Plan Punggol is “an important example for emerging nations of the world of how to tackle a complex set of variables in a creative way.”

Under the plan, Punggol will feature seven distinctive waterfront housing districts, each with a unique identity and character.

“The Punggol plan is in some ways unique to Singapore because of its governance system and growth patterns. Nonetheless it provides a model for thoughtful, sustainable development in countries with high population growth in waterfront communities. The jury saw the master plan for Punggol as a big step toward that end which is sure to gain notice in this part of the world,” Waterfront Centre added.

HDB’s CEO Cheong Koon Hean said, “It is a privilege for us to be recognised on the global stage with this award. HDB will continue to apply our knowledge of sustainable urban planning as a guiding principle for other HDB towns.”

The Waterway East and West districts in Punggol will be completed by 2015, and plans to develop Punggol as a sustainable waterfront town continues to be realised over the next five to 10 years, HDB added.

The Waterfront Center is a non-profit educational organisation Washington, DC, and the Excellence on the Waterfront Awards was initiated in 1987.

Image source: HDB 

Muneerah Bee, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email muneerah@propertyguru.com.sg

Source: PropertyGuru (18 Nov 2014)

Bedok Integrated Transport Hub opens 30 Nov - PropertyGuru

Bedok residents can look forward to a new transport facility soon.The new Bedok Integrated Transport Hub (ITH) will begin operations on 30 November 2014, and the temporary Bedok bus interchange will close on the same day.

The air-conditioned ITH links the bus interchange and Bedok MRT Station. The 1.6 hectare interchange is one of the larger bus interchanges in Singapore, and also has 400 square meters of commercial space. In addition, it is connected to Bedok Mall for the convenience of commuters. Residents of the upcoming development, Bedok Residences, and several HDB estates around Bedok North will benefit from the proximity to the ITH.

The bus interchange will have 10 boarding and five alighting berths to serve 29 bus services. Passengers in wheelchair can experience easier boarding with dedicated boarding points and graduated kerb edges, along with barrier-free facilities.

With its green features such as energy efficient lighting for the concourse, and LED lighting for the driveway and bus park area, the new Bedok ITH is Singapore’s first ITH to achieve the Building and Construction Authority’s (BCA) Green Mark Platinum Award.

The Bedok ITH is the seventh ITH where the bus interchange and MRT station are linked with adjoining commercial developments.

Image (by LTA): Artist Impression of Bedok ITH

Muneerah Bee, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email muneerah@propertyguru.com.sg

Source: PropertyGuru (14 Nov 2014)

Declining private OCR rents may affect HDB market - PropertyGuru

Declining rents for private homes in the Outside Central Region (OCR) may have a spillover effect on the HDB rental market, according to OrangeTee.

“As rents in the OCR become more affordable, some tenants may consider moving to private condominiums. This would sap demand from the HDB market and put downward pressure on rents,” the consultancy said.

However, a sharp correction in rents is not expected in the short term, as Singapore’s economic outlook is still bright and landlords will likely resist any sharp drops in rents.

Overall private rents across the country are expected to continue falling in view of increasing supply, especially in the OCR segment, where rents are expected to experience increasing pressure on the back of record supply in the pipeline in 2015 and 2016.

Muneerah Bee, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email muneerah@propertyguru.com.sg

Source: PropertyGuru (13 Nov 2014)

Hurry! Detached House For Rent @ LIAN VILLAS - 4 Units Left Only

LIAN VILLAS is abrand new cluster housing development in East Coast (Siglap) residential area.

- Only 4 Units available
- Unit sizes range from 5600 to 6300 sqft
- 5 bedrooms, with ensuite, 2 bedrooms on level 2, 3, 5th bedroom on attic
- Lift access From basement to level 3, Level 4 (attic) not accessible by lift.
- Maid's Room and WC: Basement
- Lift maintenance by Developer
- Partial Furnished: Kitchens equipped with dishwasher, fridge, one, cooker hob and hood. Washer and dryer @ basement
- Facilities: Lap Pool, bubble pool, children's playground, fully equipped gym, bbq pit, side gate to marine parade
- 2 private basement car park lots for each household and many others for visitors or extra vehicles.
-  Air Con maintenance, solar heater maintenance by tenant
- 2 years lease term

Asking Rental: S$12,000/month for partial furnished

Hurry! SMS or Whatsapp Desmond Lim 9853-2213 For Viewing Now!

Click to view Virtual Tour

Location: 2 East Coast Avenue



Photos

Lian Villas - Living Room

Lian Villas

Lian Villas - Dinning Area

Rents set to fall with flood of new condos - The Straits Times

Landlords of older properties will be affected too as tenants get more choices

PUBLISHED ON NOV 1, 2014 6:00 AM

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COMPETING FOR TENANTS: Some 2,300 new condominium units have been added to District 19, which includes Punggol, Sengkang and Hougang, in the past year. It will be followed by another 3,000 condo units over the next 12 months, with the completion of A Treasure Trove (above) and The Luxurie. -- ST PHOTOS: DESMOND LIM

Potential condo glut in Dairy Farm, Hillview area

IT'S fast turning into a tenants' market with an impending flood of new apartments set to drive down rents.

Landlords have less reason to cheer, given that they are already battling the effects of cutbacks on foreign employment and shrinking expatriate housing budgets.

Market experts warn that it is not just owners at newly completed developments who might have difficulty finding tenants or securing higher rents. Investors at older properties nearby are likely to feel the heat from the sheer number of new units as well.

"When many get the keys to their new houses at the same time, there could be as many as 30 to 40 people who want to rent out their units all at once," said PropNex Realty chief executive Mohamed Ismail.

"Existing tenants in older flats nearby will always think about moving across to a newer flat, with brand new furnishings.

"And these new units may end up having a lower rental rate because of the competition."

Industry players have long flagged the mounting supply of new condominium units as a pressing concern. In the past year alone, about 16,000 non-landed private homes were completed, according to Urban Redevelopment Authority figures.

Look further ahead and the situation becomes even more alarming for landlords: There are 25,000 new units expected to be completed between this quarter and the end of next year, with more than half in the suburbs.

A significant proportion of the 16,000 already built in the past year have been erected amid clusters of new homes, indicating that certain parts of the island are already experiencing a sudden supply glut, according to consultants DTZ.

About 2,300 units have been completed over the past year in the Katong, Joo Chiat and Amber Road precinct, also known as District 15. This includes The Shore Residences, a 408-unit condo, and the 383-unit Silversea - both developed by Far East Organisation.

Another 239 units at Hong Leong Holdings' The Meyerise condo were completed this year.

In District 19 - which encompasses Punggol, Sengkang and Hougang - 2,300 new units have hit the suburban precinct in the past year.

This will be followed by a further 3,000 condo units over the next 12 months, with the completion of projects such as Sim Lian's 882-unit A Treasure Trove and Keppel Land's 622-unit The Luxurie.

"Because these areas have seen the largest increase in the supply of non-landed units in the past year, they are likely to see the most rental pressure as tenants would have a wider selection of options, increasing their bargaining power," said DTZ research director Lee Lay Keng.

Experts note that areas that are well-connected to transport nodes or have malls and popular schools could have enough rental demand to soak up the fresh supply.

Still, landlords with units in outlying districts do not just face competition from new completions in the immediate vicinity, said Ms Lee.

"Tenants who intend to rent a unit in a suburban condo can rent a unit anywhere in the suburban areas, all things being equal, unless they have very strong reasons for living in a particular area," she added.

DTZ's analysis also showed that median rents at older condos slipped in the six months after completion, although they picked up subsequently.

At The Interlace, a 1,040-unit project in Depot Road, median rents fell 12 per cent to $3.04 per sq ft (psf) six months after it was completed.

In the three months after it was ready for occupation, rents at the 775-unit condo The Anchorage in Alexandra Road slipped 8 per cent to $3.03 psf.

Elsewhere, the numbers point to a potential glut in the vicinity of Dairy Farm Road and Hillview Avenue.

Two new condos were completed there in the past year - accounting for 710 apartments - but supply is gathering pace with at least 1,500 additional units from three new developments due for completion by 2016.

These will add to a substantial supply from the handful of older projects nearby.

SP Setia's 483-unit Eco Sanctuary, which was launched in 2012, is expected to be completed in two years.

Far East's mixed-development The Hillier is partially completed.

It opened the commercial component hillV2 earlier this year. The 528 residential units are expected to be ready next year.

Said PropNex Realty's Mr Ismail: "As long as the Government is stringent in bringing in foreigners, obviously there will be a correction in rents. It's a matter of time, demand and supply."

ocheryl@sph.com.sg

By Cheryl Ong

Source: The Straits Times (1 Nov 2014)

Property curbs: Which should stay and which should go? - SRX

EVERY few months, property industry players renew their call for cooling measures to be lifted, pointing to the sluggish property market.

The most recent suggestion came, albeit indirectly, from the Real Estate Developers' Association of Singapore.

In September, it warned that if cooling measures cause consumer sentiment to decline too much, "there could be a broader impact on the economy".

But it stopped short of calling for specific changes - unlike property developers in August, who did not hold back.

Each time the topic is broached, however, the Government reiterates its stance that it is still too early to do so.

Of course, the cooling measures will be relooked "sooner or later", as National Development Minister Khaw Boon Wan put it during a Chinese news programme last week. There has been much speculation about when this might happen.

But apart from timing, there is another question about this eventual relaxation: Exactly which measures will or should be lifted?

A whole range of policies are referred to as "cooling measures", but some are arguably important not just as short-term moves to bring a soaring property market down, but as basic safeguards.

Even if prices cool as planned, some measures may be worth keeping.

One is the 35-year cap on the tenure of home loans. At its introduction in October 2012, the Monetary Authority of Singapore (MAS) said it was part of the "broader aim of avoiding a price bubble and fostering long-term stability in the property market".

In other words, it was important not just as an immediate cooling measure, but also as part of a more stable property market.

The cap was also meant to protect both borrowers and lenders.

The MAS noted then that low initial monthly repayments, made possible by long tenures and low interest rates, might lead borrowers to take a larger loan than they can truly afford, and to have the repayments stretch over a longer period.The number of residents aged 65 and over with outstanding private mortgages has almost tripled since 2008, reaching 15,506 this July.

While some may be financing investment homes and are not in financial difficulties, others may be in danger of being saddled with a loan they cannot afford to keep servicing. The 35-year loan tenure cap for private property should help avoid that situation.

R'ST Research director Ong Kah Seng considers the cap "a good measure to keep, irrespective of market conditions".

Similarly, other cooling measures that keep homeowners from overstretching themselves should be retained for that purpose.

"Loan-related measures should be removed last, as these measures encourage financial prudence," says OrangeTee managing director Steven Tan.

Take the Total Debt Servicing Ratio (TDSR) of 60 per cent, introduced last June. This means financial institutions cannot extend a home loan if prospective borrowers' monthly repayments - for all their loans - exceed 60 per cent of their gross monthly income.

This protects borrowers from over-extending. It also reduces the risk of bank overexposure to bad loans by filtering out borrowers more likely to default, notes PropNex Realty chief executive office Mohamed Ismail Gafoor, who also thinks it should remain.

Playing a similar role to the TDSR is the Mortgage Servicing Ratio limit of 30 per cent. This is the proportion of gross income that can be used to service a loan for a Housing Board flat.

As it promotes financial prudence, it would make sense to retain this- at least in part - to ensure that buyers do not overstretch themselves.

In contrast to these cooling measures are those which seem to aim simply at reducing demand. These include the Additional Buyer's Stamp Duty (ABSD), introduced in 2011 and increased last year.

Singaporean property owners must pay 7 per cent on their second property, and 10 per cent on subsequent ones. The duty is higher for permanent residents and foreigners, with the latter paying 15 per cent on any property bought.

Experts point to this as the first of the cooling measures that should be tweaked or removed.

As a tax on property purchases, it merely discourages buyers.

Administratively, removing ABSD is also the easiest move if the Government wants to adjust any cooling measures, notes SLP International Property Consultants head of research Nicholas Mak. It will not affect existing properties, unlike loan curb changes which have implications for refinancing, for instance.

After ABSD, the next cooling measure which could be relooked is Seller Stamp Duty, say experts.

Payable on properties sold within four years of their purchase, it aims to discourage speculation and "flipping" of properties. "In times of a downturn, the SSD can prove to be a double-edged sword, amplifying losses for investors who need to liquidate their property investments," says Mr Tan.

BY JANICE HENG

Source: SRX (7 Nov 2014)