Wednesday, 28 October 2015

Release of 3rd Quarter 2015 real estate statistics - URA

The Urban Redevelopment Authority (URA) released today the real estate statistics for 3rd Quarter 2015.1

PRIVATE RESIDENTIAL PROPERTIES

Private residential market at a glance:
Prices and Rentals
Prices of private residential properties decreased by 1.3% in 3rd Quarter 2015, compared to the 0.9% decline in the previous quarter.
Property Price Index of private residential properties
 
Price decline was observed across all segments of the private residential property market. Prices of non-landed properties fell 1.2% in Core Central Region (CCR), 1.6% in Rest of Central Region (RCR) and 1.6% in Outside Central Region (OCR), compared to the declines of 0.6%, 0.6% and 1.1% respectively in the previous quarter. Prices of landed properties declined by 0.4%, compared to the 1.0% decline in the previous quarter (see Annexes A-1 [PDF, 15.4kb], A-2 [PDF, 18.1kb] & A-6 2[PDF, 17.2kb]).
Rentals of private residential properties fell 0.6% in 3rd Quarter 2015, compared to the 1.1% decline in the previous quarter. The rental decline was observed across all segments of the private residential property market. Rentals of non-landed properties fell 0.4% in Core Central Region (CCR), 0.8% in Rest of Central Region (RCR) and 1.1% in Outside Central Region (OCR), compared to the declines of 1.3%, 1.1% and 1.0% respectively in the previous quarter. Rentals of landed properties declined by 0.1% (see Annexes A-3 [PDF, 14.8kb] & A-4 [PDF, 20.2kb]), compared with the 1.0% decline in the previous quarter. 
Rental Index of residential properties
Launches and Take-up
Developers launched 2,435 uncompleted private residential units (excluding Executive Condominiums, ECs) for sale in 3rd Quarter 2015, compared to the 2,099 units in 2nd Quarter 2015 (see Annex C-1 [PDF, 16.3kb]).
Developers sold 2,410 private residential units (excluding ECs) in 3rd Quarter 2015, compared to the 2,116 units sold in 2nd Quarter 2015 (see Annex D [PDF, 135kb]).
Number of private housing units launched and sold by developers (excluding ECs)
 
Developers launched 2,387 EC units for sale in 3rd Quarter 2015 and sold 1,212 EC units over the same period (see Annex F [PDF, 18.2kb]), compared to the 439 units sold in 2nd Quarter 2015.
Resales and Sub-sales
There were 1,619 resale transactions in 3rd Quarter 2015, compared to the 1,827 units transacted in 2Q2015. Resale transactions accounted for 38.9% of all sale transactions in 3rd Quarter 2015, compared to the 44.5% in 2nd Quarter 2015 (see Annex D [PDF, 135kb]).
There were 130 sub-sale transactions in 3rd Quarter 2015, compared to the 161 units transacted in 2nd Quarter 2015. Sub-sales accounted for 3.1% of all sale transactions in 3rd Quarter 2015, compared to the 3.9% in 2nd Quarter 2015 (see Annex D [PDF, 135kb]).
Number of resale and sub-sale transactions for private residential units (excluding ECs)
Supply in the Pipeline
As at the end of 3rd Quarter 2015, there was a total supply of 58,348 3 uncompleted private residential units (excluding ECs) in the pipeline, compared to the 61,237 units in 2nd Quarter 2015 (see Annexes E-1 [PDF, 93kb] & E-2 4 [PDF, 85.8kb]). Of this number, 22,456 units remained unsold as at 3rd Quarter 2015 (see Annexes B-1 [PDF, 10.8kb] & B-2 [PDF, 17.1kb]). After adding the supply of 14,540 EC units in the pipeline, there were 72,888 units in the pipeline. Of the EC units in the pipeline, 6,897 units remained unsold.
Based on the expected completion dates reported by developers, 6,296 units (including ECs) will be completed in the last quarter of 2015.  The total number of completions in 2015 would be 22,414 units. Another 27,149 units (including ECs) will be completed in 2016. In comparison, 23,298 units (including ECs) were completed in 2014.
Pipeline supply of private residential units and ECs by expected year of completion
Note:  13,589 private residential units and 2,529 executive condominiums were completed
(i.e. obtained Temporary Occupation Permit) from 1Q2015 to 3Q2015.

Stock and Vacancy
The stock of completed private residential units (excluding ECs) increased by 3,625 units in 3rd Quarter 2015. The vacancy rate of completed private residential units (excluding ECs) decreased to 7.8% at the end of 3rd Quarter 2015, from 7.9% at the end of 2nd Quarter 2015 (see Annex E-1 [PDF, 93kb]).
Stock and vacancy of private residential units (excluding ECs)

OFFICE SPACE

Office market at a glance:
Prices and Rentals
Prices of office space decreased by 0.1% in 3rd Quarter 2015, compared to the increase of 0.3% in the previous quarter (see Annex A-1 [PDF, 15.4kb]). Rentals of office space fell by 2.9% in 3rd Quarter 2015, compared to the decline of 2.6% in 2nd Quarter 2015 (see Annexes A-3 [PDF, 14.8kb] & A-5 [PDF, 101kb]).
Property Price Index of office space
Rental Index of office space in Central region
Supply in the Pipeline
As at the end of 3rd Quarter 2015, there was a total supply of about 908,000 sq m GFA of office space in the pipeline (see Annexes E-1 [PDF, 93kb] & E-2 [PDF, 85.8kb]).
Pipeline supply of office space
Stock and Vacancy
The amount of occupied office space increased by 15,000 sq m (nett) in 3rd Quarter 2015, compared to the 38,000 sq m (nett) increase in the previous quarter. The stock of office space decreased by 3,000 sq m (nett) in 3rd Quarter 2015, compared to the increase of 8,000 sq m (nett) in the previous quarter. As a result, the island-wide vacancy rate of office space at the end of 3rd Quarter 2015 fell to 9.6%, from 9.8% at the end of 2nd Quarter 2015 (see Annexes A-5 [PDF, 101kb] & E-1 [PDF, 93kb]).
Stock and vacancy of office space

RETAIL SPACE

Retail market at a glance:
Prices and Rentals
Prices of retail space decreased by 0.3% in 3rd Quarter 2015, compared to the decrease of 0.5% in the previous quarter (see Annex A-1 [PDF, 15.4kb]). Rentals of retail space decreased by 2.0% in 3rd Quarter 2015, compared to the decrease of 0.5% in 2nd Quarter 2015 (see Annexes A-3 [PDF, 14.8kb] & A-5 [PDF, 101kb]).
Property Price Index of retail space
Rental Index of retail space in Central region
Supply in the Pipeline
As at the end of 3rd Quarter 2015, there was a total supply of 786,000 sq m GFA of retail space from projects in the pipeline (see Annexes E-1 [PDF, 93kb] & E-2 [PDF, 85.8kb]).
Pipeline supply of retail space
Stock and Vacancy
The amount of occupied retail space decreased by 13,000 sq m (nett) in 3rd Quarter 2015, compared to the zero net change in the previous quarter. The stock of retail space decreased by 24,000 sq m (nett) in 3rd Quarter 2015, compared to the 25,000 sq m (nett) increase in the previous quarter. As a result, the island-wide vacancy rate of retail space fell to 7.0% at the end of 3rd Quarter 2015, from 7.2% at the end of 2nd Quarter 2015 (see Annexes A-5 [PDF, 101kb] & E-1 [PDF, 93kb]).
Stock and vacancy of retail space

URA’S REAL ESTATE INFORMATION SERVICE

More detailed information on the price and rental indices, supply in the pipeline, stock and vacancy rates of the various property sectors can be found in the Real Estate Information System (REALIS), an online database of URA.
More information on REALIS can be found at http://spring.ura.gov.sg/lad/ore/login/index.cfm.  You can also call the REALIS hotline at 6329 3456. 
1Statistics in this press release are based on quarter to quarter comparisons, unless otherwise stated.
2The prices of private residential properties are not uniform and vary from project to project. Home-buyers can view more detailed information on transactions of private residential properties at: https://www.ura.gov.sg/realEstateIIWeb/transaction/search.action. Similar information can also be accessed by users on the go via URA’s iphone/ipad application. The application can be downloaded directly fromhttp://itunes.apple.com/us/app/property-market-information/id428469176?mt=8&ls=1.
3Projects in the pipeline refer to new development and redevelopment projects with planning approval, i.e. either Provisional Permission (PP) or Written Permission (WP).
4More detailed data on supply in the pipeline by market segment, development status and expected year of completion can be found at https://www.ura.gov.sg/realEstateIIWeb/supply/search.action
Summary of Key Information for 3rd Quarter 2015
AnnexTitle
Annex A-1 [PDF, 15.4kb]Comparison of Property Price Index for 2nd Quarter 2015 and 3rd Quarter 2015
Annex A-2 [PDF, 18.1kb]Price Indices of Non-Landed Properties by Locality
Annex A-3 [PDF, 14.8kb]Comparison of Rental Index for 2nd Quarter 2015 and 3rd Quarter 2015
Annex A-4 [PDF, 20.2kb]Rental Indices of Non-Landed Properties by Locality
Annex A-5 [PDF, 101kb]Median Rentals and Vacancy of Office and Retail Space
Annex A-6 [PDF, 17.2kb]Chart of Property Price Index by Type of Property
Annex A-7 [PDF, 11.5kb]Chart of Residential Property Price Index by Type
Annex B-1 [PDF, 10.8kb]Number of Unsold Private Residential Units from Projects with Planning Approvals
Annex B-2 [PDF, 17.1kb]Number of Unsold Private Residential Units from Projects with Planning Approvals by Market Segment
Annex C-1 [PDF, 16.3kb]Number of Uncompleted Private Residential Units Launched in the Quarter by Market Segment
Annex C-2 [PDF, 157kb]Number of Private Residential Units Sold in the Quarter by Market Segment
Annex D [PDF, 135kb]Number of New Sale, Sub-Sale and Resale Transactions for Private Residential Units by Market Segment
Annex E-1 [PDF, 93kb]Stock & Vacancy and Supply in the Pipeline as at End of 3rd Quarter 2015
Annex E-2 [PDF, 85.8kb]Supply in the Pipeline by Development Status and Expected Year of Completion as at End of 3rd Quarter 2015
Annex E-3 [PDF, 13.2kb]Pipeline Supply of Private Residential Units and Executive Condominiums by Expected Year of Completion
Annex F [PDF, 18.2kb]Number of Executive Condominium Units Launched and Sold in the Quarter

Source: URA (23 Oct 2015)

Release of 3rd Quarter 2015 Public Housing Data - HDB

This press release provides the data for the HDB resale and rental markets in 3rd Quarter 2015.

HDB Resale Market


2          The Resale Price Index fell by 0.3%, from 135.0 in 2nd Quarter 2015 to 134.6 in 3rd Quarter 2015 (see Annex A).

3      Resale transactions fell by 7.4%, from 5,286 cases in 2nd Quarter 2015 to 4,893 cases in 3rd Quarter 2015 (see Annex B).

4      The median resale prices in the various towns are tabulated in Annex C.

HDB Rental Market


5      The median subletting rents in the various towns in 3rd Quarter 2015 are tabulated in Annex D.

6      The number of applications approved for subletting of HDB flat decreased by 4.7%, from 10,510 cases in 2nd Quarter 2015 to 10,018 cases in 3rd Quarter 2015 (see Annex E).  As at 30 Sep 2015, 49,796 HDB flats were sublet, an increase of 0.6% over 2nd Quarter 2015 (49,480 units).

Upcoming Supply 


7      In 1st Half 2015, HDB offered 8,039 Build-To-Order (BTO) flats and 5,387 balance flats.

8      In November 2015, HDB will offer about 7,000 BTO flats in Bidadari, Bukit Batok, Choa Chu Kang, Hougang, Punggol Northshore, and Sengkang.  An additional 5,000 flats will be offered in a concurrent Sale of Balance Flats exercise.  More information on the BTO flats to be offered in November 2015 is available on the HDB InfoWEB.

Source: HDB (23 Oct 2015)

Good Class Bungalow deals in Q3 down from previous quarter - AsiaOne

NINE bungalows in Good Class Bungalow (GCB) areas were transacted at a total of nearly S$177 million in the third quarter, down from 11 deals worth S$282 million in the second.

The Q3 showing was, however, ahead of the seven deals that closed for a total S$167 million in the third quarter of last year.

In the first nine months of this year, the GCB sale tally was 24 deals totalling S$554 million, slightly ahead of the 22 transactions worth S$511 million in the corresponding year-ago period.

Among the deals entered into in Q3 2015 was that for a freehold bungalow in Tanglin Hill that went for S$25 million; the price works out to S$1,539 per square foot (psf) on 16,243 sq ft of land area.

Mapletree Investments chief executive officer Hiew Yoon Khong, the winner of the Outstanding CEO of the Year award at this year's Singapore Business Awards, is buying the property from a low-profile property development company, a caveats search showed.
The property was previously transacted for S$10 million in 2006.

Singapore Christie's International Real Estate managing director Samuel Eyo described the recent S$1,539 psf price for the property as "very reasonable" for the location, taking into account that the new owner is likely to rebuild the house.

"Assuming it will cost about S$500 psf on gross floor area of about 10,000 sq ft to build a new home, the break-even cost will amount to close to S$2,000 psf on land area," said Mr Eyo.
Tanglin Hill is a popular GCB location because of its proximity to Orchard Road, he noted.

Data from URA Realis shows that there has been a general pick up in landed property deals.
DTZ's analysis of URA Realis data shows that 326 landed homes changed hands in Q3 2015, up from 304 in Q2, and 246 transactions in Q3 2014.

In the first nine months of this year, the value of landed residential properties sold reached S$3.54 billion, up from S$3.07 billion in the same period last year. However, the latest figure is still shy of the S$5 billion transacted in the first nine months of 2013.

Lee Nai Jia, regional head for South-east Asia at DTZ, said:
"Demand for landed homes has increased as buyers find the current prices attractive enough. Most of the buyers are purchasing for owner occupation for their children or for multi-generational family living. Additionally, the limited stock for landed properties makes them an appealing asset to investors for capital appreciation."

Besides owner occupiers and investors, developers have also been on the prowl for old houses to redevelop.

Last month, Roxy-Pacific inked a deal to buy an old bungalow sitting on 19,474 sq ft freehold site along Sea Avenue near Marine Parade. Roxy's executive chairman Teo Hong Lim said the group plans to redevelop the site into a five-storey apartment project with about 25 units; the site is zoned for residential use with a 1.4 plot ratio (ratio of maximum gross floor area to land area) under the 2014 Master Plan.

The purchase price works out to S$789 per square foot per plot ratio.
"It is hard to find landed housing sites for redevelopment these days, partly because the government has increased the minimum plot size for apartment development to 1,000 sq metres (10,764 sq ft). Moreover, most of the big bungalows which can be redeveloped into apartments under the Master Plan have already been redeveloped."

Expectations of owners are are also still ahead of the market, Mr Teo added.
For instance, in the Telok Kurau area, owners would be looking at about S$1,000 psf on land area, or S$700-plus psf ppr, which would translate to a breakeven of more than S$1,000 psf, he said.

Earlier this month, boutique property group Pinnacle Assets picked up an old freehold bungalow at 3, East Coast Avenue for S$46.38 million, or S$1,025 psf on the 45,249 sq ft land area.

The site is zoned for three-storey mixed landed housing and large enough for potential redevelopment into 14 to 18 conventional landed housing units, comprising a mix of terrace and semi-detached houses.

Ian Loh, executive director of investment and capital markets at Knight Frank who brokered the transaction said: "While such big plots for landed housing development are relatively rare, one can still find pockets of smaller plots with an old house on it that can be redeveloped into two to three new homes."


This article was first published on October 27, 2015. 

Wednesday, Oct 28, 2015
Kalpana Rashiwala
The Business Times
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