02 Jul Singapore Property News: 17th to 30th June 2014
Property Market Activities
Sentosa condos feel the blues (BT, 30 June 2014)
About two in five Sentosa condominium units have resold at a loss in the past year, symptomatic of the plight of luxury homes here, as financing restrictions put off buyers. Of the 31 transactions in the past year, profitability analysis could not be done for seven because caveats. Of the remaining 24 transactions, 10 resold at a loss. This could be due to owners struggling to find tenants for their units amid the weak leasing market. The location is not the most convenient for expats to commute to the mainland for work.
City Gate developers mum about pricing (BT, 28 June 2014)
World Class Land, a unit of listed Aspial Corporation, and Fragrance Group opened the doors to their City Gate project’s showflat at its Keypoint site on Beach Road on 28 June. The 30-storey, 99-year leasehold project will include 311 apartments and 188 retail units. The apartments range from one to three-bedroom suites and dual-key units, and one to four-bedroom penthouses. Market talk is that indicative pricing for 18th floor units are $2,100 psf for a one-bedder, $2,000-plus psf for a two-bedder, $1,900-plus psf for a two-bedroom dual key unit and $1,900-plus psf for a three-bedroom dual-key unit. City Gate’s retail podium will span from basement 1 to level 2. There will also be a three-storey podium car park and a 25-storey residential tower with sky terrace on the sixth and 24th storeys. Facilities will include swimming pools, sky gym, dining and grill areas. The second-storey will have a sheltered link bridge to Nicoll Highway MRT Station.
Just over 30 units sold at The Crest (BT, 27 June 2014)
A Wing Tai-led consortium is understood to have granted options for a tad over 30 units in The Crest condominium project along Prince Charles Crescent. The project comprises 469 units in one-to five-bedroom configurations. The Toyo Ito-designed project, which is about 450 metres from Redhill MRT Station, has three 23-storey tower blocks and four low-rise blocks. The average price for the 99-year leasehold project is believed to be in the region of $1,750-1,800psf before reimbursement of up to 7 per cent for ABSD. The reimbursement will be made upon buyers showing proof of the ABSD payment. This means the effective price to Wing Tai would be lower, at $1,628-1,674 psf assuming the maximum 7 per cent ABSD refund on all units.
Private home prices ‘may fall up to 20%’ (ST, 26 June 2014)
Private home prices are expected to keep falling this year but analysts say a crash is unlikely. OCBC Investment Research forecast that values could dip 10 to 20 percent from the start of this year to the end of next year. It warned that mass-market homes could take a bigger hit than the middle and high-end segments but added that the price slide would probably not exceed 20 percent despite possible oversupply and an expected interest rate increase. It estimates that around 10,000 new private homes will be sold this year. Significantly more buyers coming into the market at lower price points, which will likely slow the rate of decline as prices soften. This latent demand is reflected in firm sales figures at projects that have been priced attractively or have dangled discounts.
Trilive condo in Kovan off to slow start (BT, 25 June 2014)
Roxy-Pacific Holdings has had a slow start to its Trilive condo project in the Kovan area, moving close to 30 units since sales began on 20 June. It has released 80 units in the 222-unit freehold project along Tampines Road at an average price of $1,550 per square foot (after early-bird discounts). Absolute prices start from around $730,000 for a one bedder-with study of 463 sqft. A typical two-bedder starts from around $870,000, a two-bedroom dual-key unit from around $960,000, and a three-bedder dual-key apartment from around $1.3 million. Prices of four-bedroom dual-key begin from $1.65 million.
Central Region share of GLS confirmed list on the rise (BT, 18 June 2014)
After creating jobs closer to homes in the suburbs in recent years, the government is increasingly bringing private homes closer to jobs in the city. Both strategies are aimed at cutting the commute between home and work, easing pressure on the strained transport infrastructure. In the confirmed list of the Government Land Sales (GLS) Programme for H2 2014, the proportion of private housing supply in the Central Region has risen to 33.2 per cent. This is up from 28.9 percent in H1 2014 and 15.1 percent in H2 2013. The recent low was 8.6 per cent in H1 2012.
May sales of private condos double from preceding month’s (BT, 17 June 2014)
Latest data from URA showed that developers sold 1,470 private condos last month, the highest level since June 2013 and a 96 percent jump from the 749 units sold in April. Developers’ sales of private homes nearly doubled in May from a month ago as new launches were priced to target buyers who have become more price-sensitive as a result of loan curbs. The increase in the number of new projects launched in May and the strong launch figures show that developers are more confident in resuming launches as there still many buyers in the market but who are now more price-sensitive.
Queenstown area set for biggest Sers project to date (BT, 28 June 2014)
The biggest collective redevelopment for public housing is in the offing for one of the country’s oldest neighbourhoods in Queenstown. Time may be up for 3,480 flats in 31 blocks along Tanglin Halt Road and Commonwealth Drive, which are slated to be demolished under the Selective En bloc Redevelopment Scheme (SERS). Residents, many of whom have lived in the area for more than 50 years, will be given the choice of relocating to one of the five new sites along Dawson Road, Margaret Drive and Strathmore Avenue, which will have new developments by between 2019 and 2020.
Government Land Sales
3 residential plots launched for tender (BT, 27 June 2014)
Two private residential sites in Sengkang and an executive condominium (EC) plot along Choa Chu Kang Drive, which together can yield about 1,700 homes, were launched for sale on 26 June. The three 99-year leasehold sites are the last on the confirmed list of the H1 2014 Government Land Sales programme to be released for tender. Of the twin private residential sites in Fernvale Road in Sengkang, one is 16,604 square metres in size and the other, 17,414 sq m. Together, they can yield more than 1,100 units. Both their tenders close on Aug 7. Analysts expect the site to obtain top bids of $420 to $480 psf ppr. The EC site in Choa Chu Kang Drive, the third to be sold in Choa Chu Kang this year, is expected to yield about 535 homes when fully developed. Analysts expect the Choa Chu Kang Drive site, located 500 metres from Choa Chu Kang MRT station, to draw five bids, with a winning bid of $310 to $350 psf ppr. The tender closes on Sept 4.