30 Apr Singapore Property News: 16th to 30th April 2014
Property Market Activities
Land prices expected to ease this year, say analysts (BT, 29 April 2014)
With home prices slipping, sales volumes waning and more supply coming on stream, land bidding is starting to reflect developers’ cautious mood. Singapore land prices are expected to soften this year, as developers restock their land bank in a conservative fashion with an eye on net margins which analysts are expecting to hover around 10 percent this year based on residential launch prices. According to analyst, it is expected that land bidding prices will reflect where selling prices will trend towards.
Wilshire condo in District 10 heading for sale en bloc (ST, 28 April 2014)
The Wilshire condo in upscale District 10 has been put on the market in its maiden attempt at a collective sale. This comes as another District 10 condo – Spring Grove – obtained approval to go for a collective sale earlier this month. The 325-unit estate may hit the market at a reserve price of $1.14 billion, up from an earlier proposed reserve price of $1.045 billion, according to earlier reports. The Wilshire has an indicative guide price of about $96 million to $98 million, or about $1,493 to $1,524 per sq ft (psf) per plot ratio (ppr), based on an allowable gross floor area of 64,310 sqft, said Savills. The 30-year-old condo comprises three-and four-bedroom units, measuring 2,196 to 5,662 sqft.
Private housing rental market seen being squeezed by 3 factors (BT, 26 April 2014)
The private rental housing market is set to come under pressure on the back of record private home completions, a tighter inflow of expat tenants into Singapore and a stricter property tax regime. Latest official statistics show that private residential rents slipped for the second consecutive quarter – easing 0.7 percent quarter on quarter in Q1 2014. This was a slightly bigger drop than the 0.5 percent dip in Q4 last year. Based on URA data, private housing completions are projected to hit 17,138 units this year, including the 4,114 units completed in Q1. This will be higher than the 13,150 units completed last year and 10,329 units in 2012. The pace of completions is projected to accelerate further – to 21,738 units in 2015 and 26,252 units in 2016. Landlords will also be incentivised to rent out their units due to the removal of vacancy claims on property tax and increased competition for tenants.
Sky Habitat relaunch draws crowds with lower prices (BT, 21 April 2014)
Attractive pricing and a revamped showflat drew a crowd of buyers at the Sky Habitat project in Bishan over the weekend. Developer CapitaLand sold 80 units last Saturday as the Bishan Street 15 project – once known as the most expensive suburban condominium in Singapore was relaunched with prices slashed by an estimated 10 to 15 percent. This brings the total number of homes sold at the 509-unit condo so far to 262. The strong response at the relaunch showed that buyers were still very price-sensitive, said analysts. Prices at Sky Habitat’s relaunch ranged from $1,276psf to $1,590psf, CapitaLand said.
New private home sales in Singapore drop in March (ST, 16 April 2014)
Sales of new private homes tumbled in March as buyers stayed on the sidelines amidst a softening market. Developers sold 480 new units in March, 35% down from 739 in February, according to URA data. The top seller was 597 unit The Santorini in Tampines, which sold 76 units at a median price of $1,108psf. The suburbs accounted for the bulk of the new sales, at 62%. The city fringe was next at 26% and the city centre made up the rest.
Clermont Residence world class on price (ST, 17 April 2014)
Guocoland’s Clermont Residence in Tanjong Pagar has been ranked in the world’s top 10 plushest high-rise apartment blocks by a website that caters to the world’s rich. Billionaire.com used a block’s price per square foot and the price of its most expensive unit to come up with its premier league table. It placed Clermont Residence, which is part of the Tanjong Pagar Centre mixed development, at No. 8, with an average price of US$2,360 (S$2,950) per sq ft (psf) and a penthouse worth US$47 million.
HDB resale prices continue slide, down 1.6% in Q1 (BT, 26 April 2014)
RESALE prices of public flats slipped for the third consecutive quarter, and analysts expect this downtrend to continue amid market caution and a large supply of new flats coming on stream. Data from the Housing and Development Board (HDB) showed that resale prices in the first quarter fell 1.6 percent from the previous quarter ago, following a 0.9 percent dip in the third quarter and 1.5 per cent decline in the fourth quarter of last year. Resale transactions fell 5 percent in the quarter to 3,781. Property consultants attributed the subdued market activity to recent government measures. As loan curbs continue to dampen the market, more transactions are taking place at valuation prices. Other factors include the new PR ruling and availability of 2 room flats for singles. The festive season lull and the abolishment of COV also added uncertainty to the resale market.
‘Modern kampung’ to launch in July BTO (ST, 27 April 2014)
Homes in Woodlands’ upcoming “modern kampung” – the first of its kind – will be launched in this July’s Build-to-Order exercise. To be completed in 2017, the all-in-one Kampung Admiralty includes two blocks of Housing Board studio apartments, centres for medicine, childcare and eldercare, and shops. Seniors who live in Woodlands, or whose married children live there, will get priority for the 100 or so flats. Prices are not yet available but studio apartments ranged from $83,000 to $125,000 in recent launches. These flats, on 30-year leases, are designed for elderly residents.
Government Land Sales
Developers show caution in bids for Sims Drive site (TODAY, 30 April 2014)
In yet another sign that developers are taking a more cautious stance when vying for land amid challenging property market conditions, a residential site at Sims Drive attracted only four bidders, who put in relatively conservative offers. The 99-year leasehold site, which is spread across 257,251sqft and has a maximum gross floor area of 771,775sqft, is the largest condominium site to be released under the Government Land Sales programme since early 2012, analysts noted. The top bid of S$530.9 million was placed by First Changi Development, a unit of GuocoLand. This translates into about S$687.90 per square foot per plot ratio (psf ppr), edging out the second-highest bid of S$650.45 psf ppr by a City Developments-led consortium.