01 Dec Singapore Property News: 16th to 30th November 2014
Property Market Activities
Rise in private home resale prices ‘not sign of recovery’ (ST, 29 November 2014)
Resale prices of private non-landed homes inched up in October after slumping in September, according to recent numbers. Property consultants said the rosy numbers do not point to a possible recovery in the ailing real estate market as they were partly due to investors timing their purchases. “Investors are willing to offer slightly higher prices than before, as they feel that a unit bought around September to November will mean that it will be ready for renting out in a couple of months, around early 2015, when the sale is fully completed.” One consultant said.
Private property prices still elevated: MAS (BT, 28 November 2014)
The cooling measures in the property sector have had a clear drag on demand in housing loans, yet private home prices simply have not fallen enough, data from the Monetary Authority of Singapore (MAS) suggested recently. This likely backs the government’s case for keeping the regulations in place – despite calls from the property industry to relax certain measures – particularly as the banking industry appears to be able to handle potential stresses in the market. Household wealth in Singapore – which is close to S$1.5 trillion – rose just 1.4 per cent in the third quarter compared to a year ago, slower than the five-year average rate of 7.9 per cent per annum.
Nanshan Group’s Song family buys GCB in Holland Park (BT, 25 November 2014)
Some members of the Song family behind Nanshan Group Singapore, which has been increasing its presence in the Singapore property market, are said to have bought a brand-new Good Class Bungalow (GCB) in Holland Park sold recently by Frasers Centrepoint for S$30 million. The S$30 million price of the freehold GCB translates to about S$1,991 per square foot (psf) on land area of 15,070.54 sq ft. The two-storey property has a pool, lift, five bedrooms, family area and a helper’s room. A week ago Nanshan is said to have completed its S$270 million purchase of the former Midlink Plaza site in Middle Road. The site is being redeveloped into a 396-room boutique hotel, with some strata retail space.
Luxury homes face nearly $3m in losses in mortgagee sale (ST, 24 November 2014)
Two luxury homes in Singapore are on the market at prices that would mean losses of nearly $3 million each as the local property market continues to weaken. The mortgagee sale of the two units in Turquoise, a luxury Sentosa Cove condominium, at fire-sale prices comes amid signs that banks are forcing more cash-strapped owners to offload property to meet loan shortfalls. The units, understood to belong to one owner, are on sale for an asking price of $4.5 million to $4.6 million apiece, which would mean losses of about $2.7 million each for the 2,777 sq ft units. Caveats lodged with the URA showed that both apartments were bought in November 2007 at about $2,600 psf.
More homes go under the hammer in weak market (ST, 21 November 2014)
Singapore’s weak property market has sparked a big jump in the number of auctions by banks trying to recover mortgages where borrowers have defaulted. Figures from a consultancy show that 131 properties of all types were put up for auction sale by mortgagees, or lenders, from January to October. That was more than five times the 25 properties in the same period last year. Of that, 98 homes were put up for auction by mortgagees in that period, seven times the 14 homes in the 10 months last year. Experts say borrowers in default have found it difficult to sell their properties on their own. Some upscale homes have been hit, including Marina Bay Residences, The Sail@Marina Bay, Reflections at Keppel Bay.
6 months to sell a condo, 3 to offload a flat (ST, 19 November 2014)
Private condominium sellers are taking nearly six months to secure a sale, the longest wait in over two years, new data shows. It also takes far longer now to find a buyer for a Housing Board flat – with a three-month wait on average. Data compiled by the Singapore Real Estate Exchange (SRX) shows that private non-landed units in October spent 172 days – almost six months – on the market before being sold. It is a far cry from 88.5 days, or less than three months, a year back. The median wait to sell HDB units has grown as well, from more than 60 days per quarter in 2012 and last year to 91 days in the third quarter this year.
7,500 HDB flats launched, including the first ones in Tampines North (BT, 26 November 2014)
The Housing and Development Board (HDB) recently launched its last Build To Order (BTO) – cum – Sale of Balance Flats (SBF) exercises for the year. This last launch for 2014, which includes Tampines North’s first housing project featuring the first three-generation (3Gen) flats in a mature town, comprises 7,568 flats in all, from a mix of mature and non-mature towns. The HDB said it will offer 4,277 BTO flats across six projects in the non-mature towns of Sembawang, Sengkang, Yishun and the mature town of Tampines. Under the BTO exercise, first-timers will continue to enjoy priority in the allocation of flats. Eligible first-timer singles have the option of applying for two-room flats in Anchorvale Fields, Blossom Spring@Yishun, Meadow Spring@Yishun or Sun Breeze.
Married children to get better chance of getting HDB flat near parents (BT, 22 November 2014)
Married children who want to live near their parents will now have greater assurance of success when they apply for flats, the HDB announced recently. Up to 30 per cent of the supply of new flats will be reserved for first-timer families. Previously, families who wished to live with or near each other received extra ballot chances for their application for a new flat under the Married Child Priority Scheme (MCPS). Under the tweaked scheme, two groups of applicants will get first priority: parents and married children who apply for a flat to live together, and parents who own a flat in a mature estate, and who apply for a BTO flat in a non-mature estate so as to live near a married child.
Government Land Sales
Two govt sites up for tender to yield 700 residential units (BT, 19 November 2014)
The HDB released a mixed-use site in Yishun and an executive condominium (EC) site at Anchorvale Crescent in Sengkang for tender a day ago, which are estimated to yield a total of 700 residential units. Both 99-year leasehold sites appear fairly attractive, and consultants are expecting the commercial-residential site at Yishun Avenue 4 to draw a high number of bids. The Yishun plot at Yishun Avenue 4, which has an estimated gross floor area of 27,327 sq m, is the first selected government land sale (GLS) site to be adopting prefabricated prefinished volumetric construction (PPVC), on top of having to meet a certain level of prefabrication under new government rules for the built sector.