Privatised ECs in high demand - SRX

The Straits Times



Some privatised executive condominiums (ECs) are still in high demand and notching up huge gains despite the cool property market.

Just ask OrangeTee associate director Alan Yap, who gets calls every week for units he is marketing at Bishan Loft. "Newer and pricey condos in the area - Sky Vue and Sky Habitat - have helped Bishan Loft prices appreciate," said Mr Yap.

At Nuovo in Ang Mo Kio, which he also markets, prices have roughly doubled since launch.

Buyers at Wandervale EC in Choa Chu Kang, which was launched earlier this month, may be hoping for a similar price appreciation, as will potential buyers for two more ECs launching in the second quarter, Parc Life and The Vales. But the much higher average prices of ECs launched from 2010 - about $700 to $800 per sq ft (psf) compared with mid-$300 to mid- $400 psf previously - mean profits will not be as big.

"Launch prices back then were very low due to the weak economy and events impacting property prices, including the Sars crisis," said R'ST Research director Ong Kah Seng.

Prices of older ECs rose from about 2010, propelled by low interest rates that sent housing values soaring. In contrast, recent launch prices of ECs are nearer the $1,000 mark, a level which a resale EC unit seems unlikely to cross in the near future, said Mr Ong.

At about $1,000 psf, buyers have many other options, such as a new 99-year leasehold condo, though it may not be near an MRT station - for instance, High Park Residences in Sengkang where average prices are about $970 psf. They may even be able to get older, freehold condos, Mr Ong added. Not only are today's ECs priced much higher than before, but the price gap between them and new suburban condos may be slightly smaller now.

At the time the privatised ECs were launched, new suburban condos sold at about $500 to $600 psf, although prices in Bishan had already hit about $1,000 psf.

Suburban condo developers have been reducing prices in view of the ample supply of private homes. Besides High Park Residences, Symphony Suites condo in Yishun Close launched at an average price of $1,000 psf last year. In comparison, average prices at The Criterion EC, also in Yishun, are about $795 psf.

Ten years or so after both are completed, about 85 years will be left on their leases. If sold in the resale market then, and in a weak market, Symphony Suites prices could be as low as $900 psf, putting pressure on prices at The Criterion EC, said Mr Ku Swee Yong of Century 21 Singapore.

EC developers may not have been as motivated to cut prices in recent times, given government grants for EC buyers and the increased income ceiling cap last year. It was hoped these factors would spur demand.

In fact, prior to Wandervale EC, which launched at about $755 psf, recent EC releases were priced close to $800 psf.

There is also the issue of abundant supply. There were 3,450 unsold EC units at the end of last year, with another 3,200 homes expected from EC projects yet to be released.


For more projects and its listings, visit srx.com.sg/condo

Article was published on The Straits Times

Source: SRX (17 Mar 2016)

5-room flat in Bukit Merah sold for $900,000 in Feb - AsiaOne

SINGAPORE - A 13-year-old Housing and Development Board (HDB) flat in Bukit Merah was sold on the resale market for $900,000 last month, according to figures from the HDB website.

This is the most expensive transaction for a five-room flat in the area so far this year.

The 1,184 sq ft unit is located at Block 118B Jalan Membina, and is situated between the 19th and 21st storeys.

The block is located just 500m away from Tiong Bahru MRT station and Tiong Bahru Plaza, which is scheduled to re-open at the end of the year after a $90m revamp. It is also close to the Tiong Bahru estate and Tiong Bahru Market and Food Centre.

While this is the most expensive sale of a five-room flat in the area this year, it is not a record. Last October, another unit along Kim Tian Road nearby fetched $950,000. In 2015, a total of nine five-room units in the area changed hands for $900,000 or more.



Checks on the HDB website reveal that there have been a total of 27 five-room units sold in the Bukit Merah area this year, with prices ranging between $600,888 and $900,000.

The record price for a five-room HDB flat remains the $1,088,000 unit at the Pinnacle @ Duxton last November.

Recently, a five-room flat at Ghim Moh Link in Queenstown also crossed the $900,000 mark, fetching $948,888 in February.



seanyap@sph.com.sg

Friday, Mar 18, 2016

AsiaOne

Source: AsiaOne

4 estates in Singapore where HDB prices are higher than condos - AsiaOne

The Singapore dream used to be about the 5Cs. It consists of having a car, a country club membership, credit cards, cash and a condominium.

Given the fact that HDB resale prices in some housing estates in Singapore have increased significantly over the past few years, one can start considering adding the acquisition of a HDB resale flat in certain mature estate as part of the Singapore dream.

And why not? Especially since a HDB flat in these places may cost more than a condominium unit elsewhere.

1. Toa Payoh

By Toa Payoh, we don't mean the Bidadari estate some how termed as "Toa Payoh", but the actual Toa Payoh estate as how Singaporeans know it.

Based on HDB published information, the medium price of a 5-room flat in Toa Payoh is $770,000. On the higher end, a 5-room flat located at Block 154 was sold for $955,000 last year.

What you can buy instead - Kingsford Waterbay, Serangoon

It's not exactly Toa Payoh but Serangoon is fast in catching up as a nice centralised location. A brand new 3-bedroom condominium unit at Kingsford Waterbay cost around $870,000. It is of course much smaller, but newer as well - plus you don't have to spend another $60,000 on renovation compared to buying an old resale flat. 

2. Clementi

If you think expensive HDB flats are reserved only for 5-room or executive apartments, think again.

Earlier this year, a 4-room flat at Clementi was sold for a record-breaking $900,000. 

Similarly, the 4-room flats in the same street were selling at the high $800,XXX as well in the previous 6 months.

What you can buy instead - Sol Acres, Choa Chu Kang

Believe it or not, you can get a bigger-sized EC at Sol Acres (Choa Chu Kang) for a lower price. A 3+1 bedroom unit is currently being listed at $824,000. The unit is not only newer and cheaper, but also bigger (1,098 vs 1,001 sqft) as well. 

3. Pinnacle@Duxton

If we tell you it is better to have bought a flat at Pinnancle@Duxton in 2004 compared to winning the 1st price in 4D once a month ($3,000 per win) for 10 straight years ($360,000), would you believe us?

A 5-room flat at Pinnacle@Duxton was sold between $345,100 and $439,000 when it first launched in 2004. Last year, a 5-room unit was sold for $1,088,000. That equates to a profit of about $649,000 over a 10-year period, which equates to a return of about 15 per cent per annum, for 10 straight years, not withstanding interest cost.

In addition, buyers get to live in the flat at no cost for about 5 years.

What You Can Buy Instead - Savannah Condopark, Simei

If you are willing to give up on the centralised location, you can get an equally large 3-bedroom condominium unit at Savannah Condopark for about $1.04 million. Yes, the location is definitely different, but you get the full condominium facilities that include a bowling alley, a huge swimming pool and two tennis courts, in addition to many other amenities.

4. Bedok

If it has never occurred to you that Bedok is a premium location, you are not alone.

This did not stop news from breaking out last week that a 27-year old executive flat in Bedok was sold for $935,000. It is remarkable when you think about it. A $935,000 price tag is pretty hefty for an old HDB flat situated in an average location.

What you can buy instead - Coco Palm, Pasir Ris

While you will be giving up some size, you would be able to get a much newer 3-bedroom condominium unit at Coco Palm. At a sale price of $935,000, this CDL development is very likely to also come with much better furnishing, which would save you a bomb from having to do extensive renovation at a resale location.

With resale flats at prime location still selling at high prices, it might be possible for someone to "upgrade" from their HDB flat to a private condominium unit while spending less money.

You might need to compromise on the size and location, but as with all things in life, it's all about balancing between the pros and cons.

Friday, Mar 18, 2016

Timothy Ho

Dollars and Sense

Source: AsiaOne

Executive flat in Bedok sells for record-breaking $935,000 - AsiaOne

SINGAPORE - An executive flat in Bedok was sold for a record-breaking $935,000 in February, according to figures published on the Housing and Development Board (HDB) website.

The 1,571 sq ft executive maisonette was completed in 1989, and is located at Block 108, Lengkong Tiga.

Real estate website The Edge reported that the deal marked the most expensive flat transaction in Bedok.

While most analyses expected property prices to decline in 2016, the Bedok flat was one of three deals that went for over $900,000 in February this year.

The first saw a four-room unit at the Pinnacle @ Duxton fetch $938,880.

The unit is located on one of the levels from the 49th and 51st storeys at Block 1B, and has a floor area of 1,011 sq ft.

The most expensive four-room HDB flat sold to date was another unit at the Pinnacle @ Duxton, which went for $990,000 in September last year.

Finally, a Design, Build and Sell Scheme (DBSS) flat at premium public housing development City View @ Boon Keng was sold for $928,000 on Feb 24, based on data on the HDB website.

At 1,259 sq ft unit, the 21st-floor, five-room flat sold for $737 per sq ft.

Most flats at City View @ Boon Keng recently reached the five-year minimum occupation period in January, allowing owners at the three-block development to put up their units for sale.

The Straits Times reported that a top-floor unit there was sold for $1,028,000, after just two weeks on the market.

seanyap@sph.com.sg

Friday, Mar 11, 2016

AsiaOne

HDB resale prices up 0.2 per cent in February - AsiaOne

Housing Board resale prices edged up 0.2 per cent last month, maintaining an overall picture of continued stability in the market, according to flash figures yesterday from SRX Property.

For the past 11/2 years, resale prices have fluctuated by less than 1 per cent - and sometimes stayed flat - from month to month.

Experts said last month's marginal change should not be read as a rebound. ERA Realty key executive officer Eugene Lim said: "The signs are becoming clearer that resale HDB prices have largely stabilised over the past two years and might have bottomed out."

But downward price pressures remain strong, he said. "Though we might see month-on-month increases for various flat types from time to time, the possibility of a runaway price increase is very remote."

The 0.2 per cent rise last month was driven by three- and four-room flat prices, which rose by 0.2 per cent and 0.8 per cent respectively.

This more than made up for dips in prices of five-room and executive flats, which were down 0.1 per cent and 0.7 per cent respectively.

Overall, the 0.2 per cent rise was felt in both mature and non-mature estates.

But resale transactions fell for the fourth straight month during the traditionally slow festive season, from Christmas until Chinese New Year .

Last month, 1,200 resale flats changed hands, down from 1,286 in January. The figure was slightly higher than the 1,148 transactions posted a year before.

Experts expect transaction volumes to pick up from this month to July, before the Hungry Ghost Festival dampens activity again.

As for prices, the current stability seems set to continue. R'ST Research director Ong Kah Seng predicts prices will stay flat for the full year this year, assuming no change in property cooling measures.

"Most buyers will be 'opportunistic' ones who will buy after a long wait - and not give in to high prices asked by sellers," he said.

ERA's Mr Lim agreed, saying it "would be a mistake" for sellers to think the market is on a rebound and thus increase asking prices.

"This would not work in their favour as most buyers are adopting a very realistic and practical view, and they are not prepared to pay a premium in today's market."

With some 9,000 new flats to be offered in popular mature estates this year, some first-timer demand will also be directed away from the resale market, he noted.

janiceh@sph.com.sg

This article was first published on March 4, 2016. 

Friday, Mar 04, 2016

Janice Heng

The Straits Times

Source: AsiaOne

Mixed sentiment seen for retail property market - AsiaOne

Sentiment in the retail property market is expected to remain mixed in 2016 with prime retail rents likely to remain under pressure, while prime rents in regional centres will likely remain resilient and stay relatively unchanged in the year, said Colliers in a report on Wednesday.

This is largely an extension of the situation seen in Q4 2015. Indeed Q4 saw some retailers report deteriorating trading results and profit warnings, while others continued confidently with their expansion programmes.

Music retailer HMV for instance closed its last outlet at Marina Square in September 2015, although it announced on its website there are plans to reopen a new store in the near future. Homegrown fashion brand M(phosis closed all its Singapore outlets in November. 

Retailer and property group Metro Holdings also closed its 56,000 sq ft City Square Mall store when its lease expired at the end of the year.

On the other hand, several major flagship stores were opened by foreign retailers. These include Hong Kong-based Pedder Group which officially opened its 20,000 sq ft Pedder on Scotts store at Scotts Square in October. French womenswear label Maje opened its first Singapore flagship store at The Shoppes at Marina Bay Sands in the same month.

Retailers generally maintained a cost-conscious stance in Q4 while landlords showed greater propensity to consider offers.

Notably, the Orchard Road micro-market, which is more dependent on tourist traffic, registered the steepest fall in rents among the retail submarkets in Q4 2015, as it entered its seventh consecutive quarter of decline.

During the quarter, the average monthly gross rent for ground-floor shop space on Orchard Road dropped another 1.2 per cent quarter-on-quarter to S$34.40 per sq ft. This was the same rate of decline seen in Q3 2015. For the whole of 2015, rents were down by 4.9 per cent, which was steeper than 2014's 0.8 per cent fall.

In contrast, the average monthly gross rent of ground floor space in the regional centres, which had the advantage of a ready population catchment, held steady for the third consecutive quarter at S$33.94 in Q4 2015. For the whole of 2015, rents were up by a slight 0.3 per cent year-on-year, albeit at a slower pace of rental growth compared to 2014's 1.1 per cent improvement.

On the strata-titled sales front, transactional activity remained muted in Q4. This was due to the subdued investor interest, the slowing leasing market, as well as the continued effect of the Total Debt Servicing Ratio (TDSR) requirement.

Caveat records from the Urban Redevelopment Authority's Real Estate Information System (Realis) on Feb 22 showed 41 caveats were lodged in Q4 2015, down 37.9 per cent from the 66 caveats lodged in Q3 2015. This was also half the 82 caveats lodged in Q4 2014.

The imputed average capital values of prime Orchard Road strata-titled retail space remained unchanged at the previous quarter's level of S$6,667 per sq ft as of Q4 2015. 

However, compared with Q4 2014, the imputed average capital value for prime retail space in Orchard Road dropped by 4.0 per cent. This was also the first decline in six years and can be attributed to the softening rents.

For prime retail space in the regional centres where rents showed greater resilience, the imputed average capital values held steady for the seventh consecutive quarter at S$4,491 per sq ft as of Q4 2015.

Looking ahead, Colliers said it expects prime rents in the Orchard Road micro-market could ease by up to 5 per cent in the coming year. Prime rents in the regional centres, on the other hand, are expected to stay relatively unchanged.

Meanwhile, sales of strata-titled retail units (including those in mixed-use developments) are likely to remain subdued during 2016. This is in view of the challenging leasing market conditions, the continued effects of the TDSR and rising interest rates.

Coupled with softening rents, the imputed average capital value of prime retail space in the Orchard Road micro-market is expected to ease by up to 3 per cent in 2016. For similar space in the regional centres where rents are more resilient, the imputed average capital value is expected to slip at a slower rate of up to one per cent in 2016.

This article was first published on March 3, 2016. 

Thursday, Mar 03, 2016

Mindy Tan

The Business Times

Source: AsiaOne