16 Aug Singapore Property News: 1st to 15th August 2016
Property Market Activities
Resale condo prices in CCR up 6.2% y-o-y: SRX (BT, 11 August 2016)
Despite a 0.5 per cent month-on-month decline in resale prices of condos and apartments in the Core Central Region (CCR) in July 2016, prices in the region were up 6.2 per cent year on year. The CCR has outperformed the other two regions tracked by SRX’s resale price index for non-landed private homes, on a y-o-y basis. Research analyst believe that the rise in CCR resale prices and volumes has been and should in the near term continue to be catalysed by non-traditional payment schemes for unit in developers’ inventory of completed projects.
Buyers back in condo resale market (ST, 11 August 2016)
Transactions of resale private condominiums have risen steadily in recent months as buyers return to the market. An estimated 770 non-landed private homes were resold last month, up a whopping 31.4 per cent from the 586 units moved in the same month last year. The sharp increase underlines a trend of increasing sales, although prices have taken a slight dip. Analysts told The Straits Times that sales have risen as more buyers realise that prices are unlikely to see a sharp drop and that the property cooling measures are here to stay, at least in the near term.
Singapore condo resale prices fall 0.4% in July, erasing June’s gain (BT, 10 August 2016)
Resale prices of non-landed private homes in Singapore eased 0.4 per cent in July 2016 over the previous month, based on SRX Property’s flash estimate for July. The drop contrasts with a revised 0.4 per cent month-on-month gain in the index for June 2016. Prices contracted 0.5 per cent in Core Central Region (CCR), 0.6 per cent in Rest of Central Region (RCR) and 0.3 per cent in Outside Central Region (OCR). Year on year, the July 2016 overall resale price index for non-landed private homes inched up 0.1 per cent compared with July 2015.
Hotel room supply outpaces surge in tourists to Singapore (Today, 8 August 2016)
Despite the surge in tourist arrivals in the first half of this year, hotel room rates in the Republic remain under pressure as the industry braces itself for the largest supply influx of new rooms since the completion of the two integrated resorts, Marina Bay Sands (MBS) in 2010 and Resorts World Sentosa (RWS) in 2011. The industry expects the number of hotel rooms to grow from 61,947 last year to 64,347 this year and 68,587 next year, followed by a further increase to 69,735 rooms in 2018.
Price war breaks out in Singapore home loan market (ST, 3 August 2016)
A price war has broken out in the home loans market comes as interest rates in Singapore pulled back recently, as expectations for rate hikes by the US Federal Reserve dissipate. Previously in May last year, some banks offered one month Sibor with spread at effective rate of 1.6 per cent. Now, the one month Sibor with spread is at an effective rate of 1.28 per cent.
NUS-Redas index shows easing in developer bearishness in Q2 (BT, 2 August 2016)
According to the latest NUS-Redas real estate sentiment index report, developer sentiment in Singapore improved slightly in the April through June period from the first three months of the year but it was still gloomy overall. The index indicated that overall real estate market sentiment in Singapore rose to 4.2 in the second quarter from 3.8 in the first quarter. The three sectors that Redas members who responded to the survey felt worst about were the prime retail sector, office sector and industrial and logistics sector.
Demand for turning condos to serviced apartments wanes (BT, 1 August 2016)
The surge of interest in 2015 among property owners to convert residential developments to serviced apartments may have lost some steam this year. Some market watchers attribute this to a pick-up in residential sales while others point to a soft patch ahead for serviced apartments. Some market watchers reckon that interest in conversions of luxury condominiums to serviced apartments would have been stronger if not for the fact that the qualifying certificate (QC) conditions still apply.
Prime areas eyed for public flats, to make city ‘accessible to all’ (Today, 12 August 2016)
The Government is looking into building public flats in prime areas, such as the planned Greater Southern Waterfront, to ensure that the city is “accessible” to all, said National Development Minister Lawrence Wong during a forum with National University of Singapore (NUS) students. The idea of building more public housing in prime areas to increase interaction between the haves and have-nots had been floated last year at a Real Estate Developers’ Association of Singapore event.
Different kinds of leases for new HDB flats under consideration: MND (CNA, 12 August 2016)
The Government is considering having different kinds of leases for new HDB flats in the Greater Southern Waterfront as well as the new central business district in Jurong, National Development Minister Lawrence Wong said on 11 Aug. Mr Wong said that different kinds of leases would ensure Singaporeans feel a sense of belonging, regardless of their backgrounds.
HDB resale prices up 0.7% in July; volume down 13.7%: SRX (BT, 5 August 2016)
Resale prices of Housing & Development Board (HDB) flats rose 0.7 per cent in July compared to June. But in terms of transactions, resale volume fell 13.7 per cent to about 1,573 flats last month, from about 1,823 units in June. This compared to a 0.6 per cent drop in resale prices in June, as transaction volume held steady. Analysts attributed weaker resale price to the school holiday period.
Eight West Coast blocks picked for redevelopment (BT, 4 August 2016)
The government has identified eight blocks along West Coast Road for its “selective en bloc redevelopment scheme” (Sers). Residents of some 994 flats in Blocks 513 to 520 will be offered new flats at two different sites at Clementi Avenue 1 and West Coast Link. Owners of these flats which are already 37 years old or so will have a unique opportunity to move to new flats on fresh 99-year leases.
Government Land Sales
Chinese developer said to have triggered Central Blvd site (BT, 13 August 2016)
A developer from mainland China is likely to have triggered the plum Central Boulevard site from the government’s reserve list. The applicant has undertaken to bid at least S$1.536 billion – which works out to S$1,010 per square foot per plot ratio (psf ppr) for the white site – which has to be developed into a predominantly office project.
The Agape up for sale, guide price at S$8-10 million (BT, 11 August 2016)
The Agape, a three-storey building with a basement carpark, is up for sale by expression of interest, with a guide price in the range of S$8 million to S$10 million. Located at 21 Yung Ho Road, it is located directly opposite the entertainment complex Superbowl and near Jurong Gateway. The building has a land area of 62,087 sq ft and a gross floor area of about 80,676 sq ft. The property has a 30-year lease from JTC starting Dec 30, 2001. The expression of interest will close on Sept 20 at 3pm.
Sentosa Cove bungalow market thaws (BT, 10 August 2016)
A bulk sale for the remaining 10 bungalows on Pearl Island, one of the five man-made islands in the waterfront housing district, has been entered into. The transaction, via a sale of shares in the company that developed the 19-villa project, values the balance 10 bungalows at S$120-130 million, which works out to S$1,500-1,600 per square foot on land area. The buyer is Singapore-incorporated SRIF Pte Ltd, which is fully owned by Leslie Lim and Vincent Ong, the co-founders of Evia Real Estate.
In a separate deal, an IT entrepreneur, Pang Shengdong – a Chinese citizen and Singapore permanent resident (PR), on the China rich list is understood to be the party who is picking up a bungalow along Cove Way. The price is S$16.5 million, or S$1,871 psf on land area of 8,819 sq ft, lower than the S$23 million the seller had paid a few years ago.