Is Singapore’s housing market on the road to recovery? - PropertyGuru

Recent tweaks to the property cooling measures may be helping to stimulate market activity, say analysts. 

The recovery in Singapore’s residential property market appears to be gathering pace following a protracted downtrend, according to a CNBC report.

The inflection point in prices is expected to come “very soon”, said Cushman & Wakefield’s Managing Director for Asia Pacific Research, Sigrid Zialcita, in CNBC’s “The Rundown” recently.

This reversal was brought about by the government’s relaxation of some of its property cooling measures, which improved market sentiment. “We’ve seen an increase in foot traffic and it’s incentivising a lot of buyers,” she noted.

Other experts also believe that the reduction on the seller’s stamp duty and the lower minimum holding period may be helping to stimulate market activity.

For instance, PropertyGuru’s CEO Hari Krishnan revealed that the number of property listings on its website increased two percent in Q1 2017 on an annual basis, followed by a 2.4 percent gain in March.

“These increases could be indicative of an uplift in seller sentiment,” he said.

Citigroup analysts, in a recent note, also underscored the sudden “sentiment uplift” after the government relaxed some of its property curbs. However, they feel that the “exuberance” might be exaggerated.

They explained that it would be more logical for would-be buyers to wait for more significant policy easing, or for larger discounts from developers racing against the deadline to sell their residential units. However, Singapore buyers tend to jump back into the market at the first sign of easing, lest they lose the opportunity.

While it is “impossible” to determine the actual effect of the policy easing, the analysts noted that one indication of better sentiment is the strong interest seen at the 429-unit Park Place Residences, which sold 50 percent of its units in just one day.

Romesh Navaratnarajah • April 10, 2017 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

Source: PropertyGuru

HDB flats are still nest eggs for retirement needs: Lawrence Wong - SRX

LEASEHOLD properties are still a good store of asset value, so long as you plan ahead and make prudent housing decisions, said National Development Minister Lawrence Wong in a Facebook post.

This is a follow-up to his cautionary note on March 24 on the high prices of older Housing Board flats on the resale market, which generated discussions and debate over the 99-year lease, he said.

HDB flats, like many private properties, are sold on a 99-year lease.

Said Mr Wong on Wednesday: "To begin with, Singaporean couples enjoy significant subsidies when they purchase a HDB flat for the first time, be it a new flat or one from the resale market."

A 30-year-old couple, for example, with a combined monthly income of S$5,000 and looking for a resale flat in Woodlands near their parents can get up to S$75,000 in grants off the resale flat price and should easily afford a flat with a lease of 90 years.

Mr Wong said: "Thirty-five years later, the couple will be 65 and the remaining lease of the flat will be 55 years. They still have an asset which can be monetised for retirement."

This is already happening in Woodlands, he added, sharing the example of a 65-year-old elderly couple living in a four-room flat with 55 years of lease remaining.

Through the Silver Housing Bonus scheme, the couple can sell their flat and right-size to a nearby two-room Flexi flat with a 30-year lease, while enjoying a bonus of S$20,000 in cash.

Said Mr Wong: "They can also get quite a lot of money from the sale proceeds - around S$100,000 upfront in cash, plus S$500 per month of additional income for their retirement (on top of what they would get through CPF Life)."

Alternatively, they can apply for the Lease Buyback Scheme, which allows them to continue living in the flat for 30 years and sell the remaining 25 years of lease back to HDB, he pointed out. This would give them S$47,000 in cash and a monthly retirement income of S$400 under the scheme, on top of a cash bonus of S$10,000.

"The cash amount is not as much as if they were to right-size, but that's because they can continue to stay in the same flat, and also have the option to rent out a room," Mr Wong added. These examples are typical of many HDB households today, he said.

"The general point is that the HDB leasehold flat is not only a good home, but also a nest-egg for future retirement needs. That's what we have achieved and that's what we will continue to ensure - both now and in the future."

The Business Times

Source: SRX (13 Apr 2017)

SRX: HDB rental slide in March outpaces that for private condos - SRX

RENTS of HDB flats eased at a bigger pace year on year (y-o-y) in March 2017 compared with rents of non-landed private homes, according to latest flash estimates from SRX Property.

On a month-on-month (m-o-m) basis, rents for both categories fell.

SRX's rental index for private apartments and condos fell one per cent m-o-m in March - contrasting with a 0.7 per cent rise m-o-m in February.

The index has shrunk 3.9 per cent y-o-y from March 2016 and is also 19.1 per cent below its peak in January 2013.

Giving a finer split by geographical region, SRX said that the sub-indices for the prime areas or Core Central Region (CCR), city-fringe or Rest of Central Region (RCR) and the suburbs or Outside Central Region (OCR) all posted y-o-y drops of 3.9 per cent, 3.7 per cent and 4.1 per cent respectively.

An estimated 4,549 non-landed private homes were rented last month, up 14.6 per cent from 3,971 units in the preceding month. Year on year, the rental volume in March 2017 was 1.3 per cent lower than the 4,611 units in March 2016.

In the HDB flat segment, SRX Property's rental index eased 0.5 per cent m-o-m in March 2017, the same percentage drop as recorded in February 2017. The index was 4.7 per cent lower y-o-y compared with March 2016 and also 13.9 per cent below its August 2013 peak.

SRX Property estimates that 2,045 HDB flats were rented last month - an increase of 32.3 per cent from the previous month's 1,546 units but a drop of 7.5 per cent from a year ago.

Savills Singapore research head Alan Cheong said that the rental market for HDB flats may take a longer time to recover fully compared with private apartment and condo rents.

"The rate of rental decline appears to remain rather stubborn at levels significantly below zero per cent, on a m-o-m basis, especially in the case of four-room and three-room HDB flats."

This suggests that the malaise facing the HDB rental market is more broad-based and has a stronger momentum than the non-landed private residential sector, he added.

"HDB rents are expected to remain soft in 2017 as the lower end of the Employment Pass, S-Pass and Work Permit economy continues to be beset with lower demand for workers," argued Mr Cheong.

Private apartment and condo rents are expected to remain soft at least till the end of this year - with the high-end segment likely to bear the brunt of a soft expatriate leasing market with rents contracting 5-10 per cent.

"Rents in the RCR and OCR are expected to decline by 3 per cent and 5 per cent respectively," he said.

Nevertheless, rents should start to build a base by the end of 2017 as the pace of new private home completions falls sharply in 2018. "The point of inflexion for rents in the private non-landed residential sector may however only come in mid-2018."

The Business Times

Source: SRX (13 Apr 2017)

Sentosa bungalow market revs up - SRX

ACTIVITY In the bungalow market on Sentosa Cove seems to have gathered pace lately. This year so far, there have been at least seven deals, which are now in various stages of completion.

Agents credit the buzz to owners setting prices that are more in sync with market expectations for these high-end homes on 99-year leases.

A bungalow along Cove Drive, fronting a lake in the revamped Tanjong golf course, has been sold for S$16.25 million or S$2,016 per square foot (psf) on land area of 8,060 sq ft.

Steve Tay of CBRE Realty Associates brokered the recently-concluded deal. The sellers are Singapore-based jewellery designer Sara Taseer and her husband Salman Shoaib, and the buyer, a former mainland Chinese-turned Singapore citizen.

Designed by K2LD Architects, the 21/2-storey house has high-quality natural stone in its bathrooms, living and dining areas, and Burmese teakwood for its pool deck and the interiors of its second level and attic.

The five-bedroom villa also features state-of-the-art home-automation systems.

Mr Tay is also understood to be handling the sale of a waterway-facing bungalow along Cove Grove. The deal, which is in its initial stages, is said to be for more than S$1,800 psf on land area of some 9,000 sq ft, which works out to over S$16 million.

Designed by Guz Wilkinson of Guz Architects, the house has two levels and has an attic and a basement. The basement houses an entertainment room with a view of the pool, flanked by two large aquariums.

The house incorporates terraces, so each level has its own garden; a garden even runs over the attic roof.

Last month, The Business Times reported that Japanese discount retail group Don Quijote's founder Takao Yasuda bought a house along Lakeshore View, fronting the Serapong golf course.

Its cost: S$21.25 million or S$1,886 psf. The deal was brokered by CBRE.

Last week, options were exercised for two bungalows in the waterfront residential district in deals brokered by Bruce Lye, managing partner of SRI.

One property in Cove Drive, facing Tanjong Golf Course, sold for S$10 million or S$1,348 psf on land area of 7,416 sq ft. About 11/2 years ago, the seller had asked for S$18 million for this house.

The other property along Ocean Drive, next to the sea and with views of Brani Terminal and the Central Business District (CBD), transacted at S$12.5 million or S$1,693 psf based on the land area of 7,383 sq ft - down from the S$16.5 million asking price a year and a half back, said Mr Lye.

Both bungalows have five bedrooms each.

The Cove Drive property was sold by a Hongkonger to a couple - Chinese citizens turned Singaporeans - based here. The Ocean Drive one is being sold by one Singaporean to another.

The respective sellers had developed their property on land bought from Sentosa Cove Pte Ltd, added Mr Lye.

Describing the psf prices for the two properties as "fair market pricing", he noted that prices may differ even between bungalows on the same street in Sentosa, due to differences in the condition, build quality and design of the house. Their facing or orientation also affects the prices they can fetch.

"For instance, you could have two houses on Ocean Drive, both fronting the sea but with very different views - one facing the Brani Terminal and the CBD skyline and the other, the open sea."

BT reported recently that a sale has been entered into for the Cove Grove house that is owned by the chairman of Ezra. The price is believed to be between S$14.5 million and S$15 million for the villa, which sits on 11,515 sq ft of land.

A neighbouring property is also said to have changed hands lately for S$16.8 million or S$1,806 psf.

Based on CBRE Research's analysis, there were just four bungalow transactions in Sentosa Cove last year, based on caveats data.

However, there was also a bulk deal for the sale of the remaining 10 bungalows on Pearl Island, one of the five man-made islands in Sentosa Cove. This deal was structured through the sale of the entire equity of Ximeng Land (S) Pte Ltd, which developed the 19-villa project. The equity was sold by a Liu family from Beijing to SRIF Pte Ltd, fully owned by Leslie Lim and Vincent Ong, the co-founders of Evia Real Estate.

The deal is said to have valued the 10 villas at about S$125 million.

Mr Tay of CBRE Realty said there has always been interest in Sentosa Cove's bungalows because of their exclusivity and limited supply. "Foreigners who aspire to buy a bungalow in Singapore may do so only in Sentosa Cove."

The volume of transactions had thinned from the high of 54 deals in 2010 to three in 2014.

The property cooling measures, particularly the 15 per cent additional buyer's stamp duty on foreign buyers, combined with the 3 per cent stamp duty on all buyers, resulted in a wide gap between buyers and sellers' expectations.

Those hunting for bungalows in Sentosa Cove comprise newly-minted citizens hailing from India and China, and other Asians who are moving their families to Singapore.

Mr Tay said: "There are many local buyers who see an opportunity in the Cove due to the current lower pricing. These are typically seasoned property investors who like the environment in Sentosa and plan to buy for their own occupation, while also holding the property as an investment."

The Business Times

Source: SRX (12 Apr 2017)

Three Sentosa Cove bungalows sold in a week - The Edge Property

Interest in Sentosa Cove has translated into sales — not just that of the 99-year leasehold condominium units, but the leasehold waterfront bungalows as well. Word on the street is that a bungalow at Cove Grove — with a 270-degree view of the waterway and owned by Ezra Holdings founder and chairman Lee Kian Soo — has been sold.

The house at Cove Grove owned by Ezra’s Lee family is said to have been sold

When the property was first put on the market for sale by expression of interest a year ago, the price tag was $26 million, or $2,258 psf. According to market sources, there were many parties vying for the property. However, news that Ezra had filed for Chapter 11 bankruptcy protection on March 18 has led to offer prices dropping in recent weeks to $16 million to $17 million — about $10 million below Lee’s initial asking price.

Last October, the Lee family reportedly sold a Good Class Bungalow on Windsor Park Road for $21.8 million. The GCB sits on a freehold land area of 20,387 sq ft, which means the sale price translated to 1,070 psf. Lee is believed to have purchased the property for $5.9 million, or $288 psf, in September 2004.

Turning point

The fortunes of Sentosa Cove bungalow owners are about to change, says Bruce Lye, managing partner of SRI. Lee’s bungalow at Cove Grove is not the only one believed to have been transacted recently. Lye is said to have brokered the sale of two other bungalows in the waterfront residential enclave earlier last week.

One of them is a bungalow on Cove Drive, which fetched $10 million, or $1,348 psf. It sits on a land area of 7,420 sq ft and overlooks the Tanjong Golf Course. The original owner purchased the land parcel from Sentosa Cove, a private company set up by Sentosa Development Corp, to undertake the sale of land parcels when they were first put up tender.

The buyer of the five-bedroom bungalow is said to be a Singaporean, who purchased it for his own use.

A bungalow at Cove Drive which overlooks the Tanjong Golf Course was sold for $10 million, or $1,348 psf, recently

Another bungalow, on Ocean Drive, changed hands for $12.5 million. The 7,381 sq ft site fronts the sea and the land was purchased by the original owner to build the five-bedroom home, which comes with a rooftop pool. The recent buyer is also said to be Singaporean, buying the property for owner-occupation.

Improved sentiment “There has been a significant increase in interest in Sentosa Cove over the past month,” says Lye. This time, the interest has translated to actual deals, unlike in the past two years, during which, despite expressions of interest, potential buyers were reluctant to commit to a purchase, he observes.

A bungalow sitting on a 7,381 sq ft site at Ocean Drive with sea-front views changed hands for $12.5 million

Lye attributes the recent deals to the improvement in buyer sentiment following the government’s easing of property cooling measures, in particular, the reduction in the seller’s stamp duty (SSD) and holding period for residential property.

Prior to March 11, those who sold their residential properties within the first to fourth year of purchase were subjected to SSD rates of 16%, 12%, 8% and 4% respectively. The SSD has been cut to 12%, 8% and 4% for the first to third year of purchase.

Following the recent Sentosa Cove deals, several other bungalows have surfaced on the market for sale. One of the properties Lye is marketing is a bungalow on Paradise Island. Developed by Ho Bee Land and completed in 2009, Paradise Island has 29 villas. All its double- storey units were designed with private berths for luxury boats, water views and at least five to six en suite bedrooms.

The villa at Paradise Island that Lye is marketing sits on a land site of 8,170 sq ft and has an asking price of $13.8 million ($1,689 psf). The existing owner purchased the property in a sub-sale for $13 million ($1,591 psf) in October 2007. The previous owner bought the villa from the developer for $8.8 million ($1,078 psf) when the project was launched in April 2007, and made a profit of $4.2 million in just six months.

A double-storey villa on Paradise Island is on the market for $13.8 million

Pick-up in transactions

Based on caveats lodged with URA to date, the volume of bungalow transactions in Sentosa Cove peaked in 2010, with a total of 54 units sold that year. By 2013, the number of transactions had shrunk to a third of the peak volume, with just 18 units changing hands. Between 2014 and 2016, the average number of bungalow transactions hovered around four.

However, last August saw the first bulk sale of luxury bungalows at Sentosa Cove. That was when Vincent Ong and Leslie Lim, the co-founders of privately held property group Evia Real Estate, bought up the 10 remaining bungalows on Pearl Island developed by Ximeng Land. The average asking price of $1,500 to $1,600 psf for the waterfront villas reflected a bulk discount of 22%, compared with prices ranging from $1,904 to $2,228 psf for transactions made between September 2010 and October 2013.

The August 2016 transaction was carried out via a sale of shares in Ximeng Land, the developer of the 19-bungalow Pearl Island, and is therefore not reflected in the URA caveat records. Ong and Lim are believed to have purchased the bungalows as an investment, and plan to lease them out.

For the first three months of 2017, there was only one bungalow transaction in Sentosa Cove, at Lakeshore View. The property, which sits on an 11,270 sq ft site, fetched $21.3 million ($1,886 psf), according to a caveat lodged on March 1. Bungalows at Lakeshore View have views of greenery, the golf course, a manmade lake and the sea beyond.

However, with the three recent deals done, Lye is optimistic that Sentosa Cove is on the verge of a revival.

 By Lin Zhiqin / The Edge Property | April 7, 2017 3:00 PM MYT

This article appeared in The Edge Property Pullout, Issue 774 (Apr 10, 2017) of The Edge Singapore.

Source: The Edge Property

GCB in King Albert Park for S$43.8m - SRX

Far East Organization is buying a Good Class Bungalow (GCB) on a freehold site of over 39,000 square feet at 16 King Albert Park.

The plan is to amalgamate the site with four adjoining plots the group already owns before redeveloping the enlarged site of over 100,000 sq ft into several bungalows which the group will hold as an investment property for rental income.

Far East is paying S$43.8 million for 16 King Albert Park, translating to S$1,117 per square foot (psf) based on the freehold land area of 39,228 sq ft. The group's existing four plots add up to 69,803 sq ft.

Based on the total land area of 109,031 sq ft, up to seven bungalows may be developed based on the minimum plot size of 15,070 sq ft per bungalow in Good Class Bungalow Areas.

Far East is buying the GCB from the estate of Irene Ong, who died last year.

Most of the monies from the GCB's sale will go to universities and healthcare institutes, and will also be used to attract scholars to spur medical research in areas such as dementia, diabetes and cancer, according to an article in The Straits Times last December.

Another big recent residential transaction is Keppel Land's sale of a penthouse at the Corals at Keppel Bay condo for S$18.88 million. The price works out to S$2,400 psf based on the total strata area of 7,868 sq ft, although the point to note is that the strata area includes 1,550 sq ft of roof terrace. The duplex unit, located in a five-storey block, has five bedrooms and a jacuzzi. It is the largest penthouse in the 366-unit project.

The development, which received Temporary Occupation Permit in August, comprises 11 blocks ranging from five to 10 storeys. Corals at Keppel Bay is on a site with 89 years' balance lease. The buyer is understood to be a foreigner.

Over in the CBD, the 20th floor of the 999-year-leasehold Samsung Hub office tower is changing hands at S$43.07 million or S$3,280 psf based on the strata area of 13,132 sq ft. Standard Commodity Trade Centre Pte Ltd is selling the space on a vacant possession basis to Lei Shing Hong Properties (Singapore), which plans to occupy the space for its own use.

The company is part of Hong Kong-based Lei Shing Hong group, which is involved in businesses ranging from retailing premium cars, trading and securities brokerage, to property development and investment. The S$3,280 psf fetched for the 20th floor is identical to that for the 21st level back in 2014.

The Business Times

Source: SRX (06 Mar 2017)

Private home prices slipped 0.5% in 1Q2017 - The Edge Property

Private home prices continued to fall for a 14th consecutive quarter, shedding 0.5% q-o-q in 1Q2017, according to the Urban Redevelopment Authority's (URA) latest flash estimates. It was the same rate of decline as the previous quarter.

Prices of non-landed homes in Core Central Region (CCR) was back in the red with a 0.2% decline in 1Q2017 as opposed to a 0.1% increase in 4Q2016. Those in Rest of Central Region (RCR) remained unchanged in 1Q2017, following a 2.0% dip in 4Q2016. In Outside Central Region (OCR), prices bucked the trend, inching up 0.1% in 1Q2017, after a 0.6% decline in 4Q2016.

"The buoyant OCR primary market helped to firm prices in the suburban non-landed market in 1Q2017," says Ong Teck Hui, national director of research and consultancy at JLL. 

Ong expects positive buying sentiments seen in the first quarter to continue with the market remain upbeat. "Healthy sales volume would eventually lead to prices stabilising especially in the non-landed market although short term fluctuations in the indices may be expected," adds Ong. 

In the public housing segment, prices of resale flats fell for second consecutive quarter with a 0.6% decline in 1Q2017, following a 0.1% q-o-q dip in 4Q2016.

"This could possibly be an one off occurrence," according to Eugene Lim,  key executive officer at ERA Realty Network. He notes that the main cause could be the low volume of resale transactions seen over the January and February period due to the Chinese New Year season.

Lim remains optimistic that the HDB resale market has largely stabilised. He expects HDB resale transaction volume to increase to about 22,000 to 23,000 units in 2017, with prices edging up slightly by 0.1% to 0.5% for the full year.

In May 2017, HDB will roll out about 4,600 Build-To-Order (BTO) flats Woodlands, Yishun, Bidadari and Geylang. HDB also plan to offer about 3,000 balance flats. 

By Tan Chee Yuen / The Edge Property | April 3, 2017 11:00 AM MYT

Source: The Edge Property (03 Apr 2017)

FLASH ESTIMATE OF 1ST QUARTER 2017 RESALE PRICE INDEX - HDB

Published Date: 03 Apr 2017

            HDB’s flash estimate of the 1st Quarter 2017 Resale Price Index (RPI) is 133.8, a decline of 0.6% over 4th Quarter 2016 (see Annexes A1 and A2).  

2          The RPI provides information on the general price movements in the resale public housing market. The transacted prices of individual flats (by block and flat type) can be found via the e-services available on HDB’s InfoWEB.

3          The RPI for the full quarter, together with more detailed public housing data, will be released on 28 April 2017.

Upcoming Sales Launch

4          In May 2017, HDB will offer about 4,600 Build-To-Order (BTO) flats and about 3,000 balance flats.  More information on the BTO flats is available on the HDB InfoWEB.

Source: HDB

SRX: HDB resale prices up 0.3% in March; volume increases by 75.4% - SRX

RESALE prices of Housing & Development Board (HDB) flats rose 0.3 per cent in March compared to February 2017, while resale volume surged.

According to HDB resale data compiled by SRX Property, 1,910 HDB resale flats were sold last month, a 75.4 per cent increase from 1,089 transacted units in February.

Year on year, prices decreased by 0.1 per cent from March 2016, while resale volume increased by 14.1 per cent compared to 1,674 units resold in March 2016.

Compared to their respective peaks, resale prices in March declined by 11.2 per cent since the peak in April 2013, while volume was down by 47.7 per cent compared to its peak of 3,649 units in May 2010.

The price increase in March was driven by higher resale prices in both mature and non-mature estates, which rose 0.3 per cent and 0.2 per cent respectively.

The resale prices of HDB four-room, five-room and HDB executive flats also all rose - by 0.3 per cent, 0.3 per cent and 1.7 per cent respectively - while HDB three-room resale flat prices decreased by 0.7 per cent.

As featured on The Business Times

Source: SRX (06 Apr 2017)

Renewal plans for Woodlands, Toa Payoh and Pasir Ris to be unveiled in exhibitions from mid-April - SRX

Come April 16, the renewal plans for Woodlands under the Housing Board's Remaking Our Heartland programme will be unveiled in an exhibition at Woodlands Central.

Residents of Toa Payoh and Pasir Ris can also look forward to viewing the renewal plans for their estate from April 22 at HDB Hub, and April 29 at Pasir Ris Town Centre respectively.

"These plans will further rejuvenate the town and will further benefit more than half a million residents living in the three towns," said HDB's Director of physical planning Choo Chin Hua.

Each plan focuses on strengthening the unique character and distinctive features of each town, as well as to enhance community spaces and facilities so that residents may interact more with each other, said Mr Choo.

Pasir Ris Park and Beach will be enhanced with more family-oriented spaces and recreational options. Existing connectivity networks will also be enhanced to improve walking and cycling experiences within the town, he added.

Some highlights include a new town plaza within Woodlands Central, which will allow residents to organise more large-scale activities. The Woodlands Waterfront park will also be transformed through landscaping and more shaded areas for visitors.

A new "Community Nexus" near Admiralty MRT station will also serve as a one-stop hub for amenities for Woodlands residents.

The pedestrian mall at Toa Payoh Town Centre will be enhanced with more greenery, rest areas and shelters.

In Pasir Ris, a new town centre will serve as a focal point for community activities. Pasr Ris Park and Beach will also be rejuvenated with more family-oriented spaces and recreational options.

More details will be provided at the respective exhibitions.

These plans were first announced in 2015. Some 400 residents and community stakeholders from the three towns had participated in focus group discussions about the renewal plans.

Woodlands resident Madam Siti Mariam, 36, who participated in one of these discussions, said she suggested having more recreational spaces at Woodlands Waterfront park, which her family of seven frequents.

"We used to go there more often for family gatherings or for sports and exercise... Now it just feels so boring, it will be good to have more things to do there," she said.

Residents can still offer feedback at the upcoming exhibitions, said Mr Choo.

He added: "We do welcome residents to take a look at these plans and give us further suggestions and ideas to fine-tune the plans with the relevant government agencies."

The Straits Times

Source: SRX (04 Apr 2017)