01 Aug Singapore Property News: 16th to 31st July 2016
Property Market Activities
Apartment prices in Central Region fare better (BT, 29 July 2016)
June flash estimates for its Singapore Residential Price Index (SRPI) series – which tracks prices of completed private apartments and condos – showed that the subindex for Central Region (excluding small units) has climbed 0.7 per cent month on month. The data is yet another piece of evidence of greater price resilience of late in non-landed private homes in prime locations compared with other segments.
SC Global introduces enhanced purchase plan for Hilltops units (BT, 29 July 2016)
SC Global Developments Pte Ltd, a developer of upmarket residences, unveiled an Enhanced Purchase Plan that allows prospective buyers of its Hilltops condominium to earn a 10 per cent return per annum on a 20 per cent downpayment. As an example, a 20 per cent downpayment on a S$3 million unit, or S$600,000, will generate an annual income of S$60,000 per year or S$120,000 over two years for the prospective buyer, while also saving him two years of mortgage payments amounting up to S$100,000.
S’pore manufacturing gets boost from 3M’s S$135m Tuas expansion (BT, 26 July 2016)
High value-added manufacturing will continue to be a beacon of Singapore’s economy, as global science company 3M announced S$135 million expansion plans for its Tuas facility. The expanded Tuas plant, set to occupy 100,000 square metres, will be completed by the end of 2018. The company intends to hire 100 more employees on completion of its expansion, adding to its current strength of 1,600.
Indonesian tax amnesty could spark outflow from Singapore (BT, 62 July 2016)
Singapore’s wealth management industry is likely to suffer a bad dent as rich Indonesians move some money back home to take advantage of a tax amnesty, but the exodus of funds is not going to be as big as Jakarta is predicting. Around US$200 billion of Indonesian money that may not have been declared to the tax authorities in Jakarta has been squirrelled away in Singapore, according to private banking sources.
Property cooling measures to stay amid lower-for-longer rates (BT, 26 July 2016)
The property cooling measures will remain, the Monetary Authority of Singapore (MAS) said, noting risks of a renewed surge in property prices in this lower-for-longer-rates environment that keeps investors on the hunt for yield. At a press briefing, MAS managing director Ravi Menon said property prices have adjusted “only modestly” after a run-up that was stronger than that of income growth.
Q2 home prices show signs of bottoming out (BT, 23 July 2016)
Early signs of a bottoming-out in the private residential market surfaced in official quarterly data, indicating that the declines in the prices of private non-landed homes have eased, and HDB resale prices stayed flat in the second quarter. A rebound in resale transactions may also be setting the stage for prices to stabilise, market watchers say. But a convincing price recovery is unlikely to take place yet, given pockets of weakness in the market.
New Jurong buzz triggers red-hot response at condo launch (ST, 25 July 2016)
Lake Grande, a 710-unit condo along Jurong West Street that is being developed by MCL Land, released 500 units for sale. About 87 per cent of these apartments – or 436 in total – were sold at an average price of $1,368 per sq ft. MCL Land chief executive Koh Teck Chuan said 83 per cent of the transactions were for the one- and two-bedroom units. Seventeen out of every 20 buyers are Singaporeans.
Singapore private home prices weaken for 11th straight quarter, vacancy rate hits 16-year high (ST, 22 July 2016)
Private home prices and rents fell for an 11th straight quarter in the second quarter of this year, although this was at a slower pace than previously. But vacancy rates of private residential units jumped 1.4 percentage points in the quarter to 8.9 per cent, the highest highest since 9.1 per cent in the second quarter of 2000. A total of 30,310 private residential units were vacant in the second quarter, a rise of 5,391 units from the first quarter.
Prime property market warming up (ST, 22 July 2016)
More activity is afoot in the prime residential market after a recent rise in sales amid competitive pricing and various purchase schemes giving buyers more options. A total of 131 luxury apartments worth $5 million and above were sold in the first half of this year, this is about 76 per cent of the 166 units sold in the whole of last year. As at June 30, the overall average price of luxury apartments was $2,950 psf, up from $2,700 psf at the end of last year. This was due to more prime properties being sold recently, such as at Ardmore Three, where 34 units were sold at $3,200 psf in the first half of this year.
72% of units at Treasure Crest EC sold at weekend (ST, 19 July 2016)
Sales were brisk at the Treasure Crest executive condominium (EC) showflat over the weekend with nearly 72 per cent of the units snapped up. 362 out of the 504 homes at the project in Anchorvale Crescent found buyers over the two days, with all 56 four-bedroom units selling out. About 62 per cent of the units sold were booked by first-time buyers with the rest bought by HDB upgraders.
New sales of private homes up 10% in H1 (BT, 16 July 2016)
Developers’ new private home sales halved to 536 units in June from 1,058 units in May as new launches dried up amid the June school holidays. However, some market watchers gleaned several positive signals from the Urban Redevelopment Authority’s data, lending support to their view that the market is close to bottoming out.
HDB resale prices remain unchanged in Q2, transactions on up (CNA, 22 July 2016)
Resale prices of Housing and Development Board (HDB) flats remained unchanged in the second quarter of the year compared to the previous quarter, despite an increase of 31.2 per cent in the number of resale transactions, from 4,449 cases in the first quarter to 5,838 cases in the second quarter. The HDB added that it plans to launch about 4,800 Build-To-Order (BTO) flats in August in Hougang, Sembawang, Tampines and Yishun.
Queen Astrid Park GCB fetches S$44.5m (BT, 30 July 2016)
A single-storey bungalow on a sprawling site in Queen Astrid Park has changed hands for S$44.5 million. The price works out to S$1,271 per square foot based on the freehold land area of 35,011 square feet. Located at the corner of Queen Astrid Park and Coronation Road West, the site has potential for subdivision into two smaller Good Class Bungalow (GCB) plots.
Boutique developer wound up in Singapore property market slowdown (ST, 26 July 2016)
Several uncompleted houses have come up for mortgagee sales in recent months from a boutique developer, C&C Development, which was wound up. The latest home partly built by C&C, a double-storey, semi-detached house with basement and attic in Kingswear Avenue, Serangoon Gardens, was put up for mortgagee sale by Colliers. Other properties comprised of an uncompleted 3 1/2 –storey bungalow with a pool and lift in Mimosa Crescent, Yio Chu Kang, a pair of uncompleted 2 1/2 -storey semi-detached houses in Berwick Drive, Serangoon Gardens; and a new 2 1/2 -storey semi-detached house in Burghley Drive, also in Serangoon Gardens.
Khong Guan puts Tai Seng property up for sale (ST, 25 July 2016)
Khong Guan Industrial Building is an eight-storey property at 20 MacTaggart Road with a site area of about 21,100 sq ft, as well as surface and basement carparks. Based on the Urban Redevelopment Authority’s Master Plan 2014, the land falls under “Business 1” – a zone set aside for clean and light industrial use, at a 2.5 plot ratio. The property has been fully utilised with an existing gross floor area at 57,019 sq ft or an equivalent plot ratio of 2.7, and is being leased by multiple tenants.
The property, Khong Guan Industrial Building, will be sold through a public tender exercise that will close on Sept 7.