Singapore Property News: 1st to 15th July 2015

Real Estate News

Property Market Activities

Parliament: Record $31m price for Bukit Batok coffeeshop was an outlier (ST, 14 July 2015)

Minister for National Development Khaw Boon Wan told Parliament today that the recent record price of $31 million for the sale of a coffee shop in Bukit Batok and the $23.8 million transaction in 2013 for a coffee shop in Hougang are outliers, and their sellers are not speculators. The sale of Yong Xing Coffee Shop at Bukit Batok Street 11 made headlines last month. Its seller had bought the 4,521 sq ft coffee shop for $3.4 million nearly 20 years ago. Mr Khaw noted that since January 2010, there were 32 resale transactions involving eating houses of comparable sizes: 10 were below $5 million, 12 between $5 and $10 million, and eight between $10 and $15 million.

$16.5m price tag for 3 Jalan Besar shophouses (ST, 14 July 2015)

Three adjoining shophouses in Jalan Besar (138 to 142 Jalan Besar) have been put up for sale with a guide price of about $16.5 million, which works out to $1,617 per sq ft. The shophouses, with a combined land area of 4,353 sq ft and a total gross floor area of 9,719 sq ft, are in an area zoned for commercial use in the Historic District (Little India) Conservation Area in the 2014 Master Plan, said CBRE. An expression of interest sale gives potential buyers a specific period of time to view the properties and to make their offers to purchase by a specified time and date. Since the property is a commercial one, the expression of interest exercise is open to both locals and foreigners, with no additional buyer’s stamp duty or seller’s stamp duty imposed on the purchase of the property, said CBRE. The expression of interest exercise will close on Aug 28 at 3pm.

More owners put properties under hammer in weak market (ST, 9 July 2015)

There were 180 units put under the hammer in the three months to June 30, up 2.9 per cent from the first quarter and 45.2 per cent more than in the same period last year, according to Knight Frank Singapore. It noted there were 42 mortgagee actions – when mortgagees try to sell the asset they gained control over after the mortgagors of these assets defaulted – in the quarter, down 22.2 per cent from the first three months of the year. There were 39 industrial properties put for auction, 85.7 per cent more than in the first quarter, with 89.7 per cent of this being strata-titled industrial space. Owners of smaller units – one- and two-bedders – put 27 flats under the hammer, up 28.6 per cent on the first quarter. Knight Frank said such owners were struggling to generate the rental income required to meet mortgage payments.

Prime home rents: S’pore third worst performer among 18 cities (BT, 9 July 2015)

Prime rents here fall 4.9% in a year; Tokyo leads ranking for second consecutive quarter with prime rents up 8.1%. According to Knight Frank’s Prime Global rental Index, Tokyo led the annual ranking for the second consecutive quarter with prime rents up 8.1 per cent. On the other end of the scale, Moscow and Beijing came in last on the index, with prime rents there failing by 5.3 per cent and 7 per cent respectively in the 12 months to March. Alice Tan, director and head of research at Knight Frank Singapore, believes that the trend is contributed by the tightened immigration and labour policies along with moderated economic growth in Singapore.

Collective sale of Gilstead Court off after twists and turns (ST, 8 July 2015)

The court of Three Judges’ ruling overturns the nod the High Court gave in February to the $150.2 million collective sale of Gilstead Court. After the prolonged tussle for 2 years, it is held that the collective sale of Gilstead Court in Newton is not going ahead due to certain clauses in the collective sale agreement “unfairly prejudiced” subsidiary proprietors who did not sign the collective sale agreement by penalising them for holding their view. The clauses had resulted in a difference of $42,000 between dissenting and agreeing owners.

Fernvale Condo draws keen buyers (ST, 7 July 2015)

More than 8,000 people thronged the sales gallery of High Park Residences when it opened to the public on the first weekend of July, with around 500 cheques collected from buyers keen to own a unit at the massive condominium project to be launched later in July. The average price per square foot for the 1,390 units is below $1,000, said CEL Development, which is developing the project in Fernvale Road with Unique Residence, a joint venture between Heeton Hoes and Kim Seng Heng Realty. The 99-year condominium development, which is next to Thanggam LRT Station and a stone’s throw from Seletar Mall, is expected to get its temporary occupation permit in August 2010.

Home sellers stung by stamp duties (ST, 1 July 2015)

More than $70 million has been collected in Seller’s Stamp Duty (SSD) from non-landed private property transactions since the rates were increased in 2011. Data from SRX Property showed the owner of a unit at Four Seasons Park incurring a net loss of $2.64 million after paying the SSD. The property was bought at $11 million in April 2013 and sold within two years of purchase at $9.5 million, resulting in a loss of $1.5 million – made worse by the 12 per cent SSD of $1.14 million paid. The transaction in February this year represented the highest level of the SSD paid so far. In the past 12 months, at least 59 transactions for non-landed private homes recorded a loss after paying the SSD.

Public Housing

HDB resale prices up 0.1% in June: SRX (BT, 10 July 2015)

Resale prices of HDB flats inched up 0.1% in June from May 2015, according to the latest flash estimates of SRX Property. Consultants believe that this reflects stability in resale prices of Housing Board flats and hence a less pressing need for the government to relax its property cooling measures. SRX estimates showed 0.3%, 0.5% and 0.7% price increases for four-room, five-room and executive resale flats respectively. Resale prices for three-room flats, however, dipped 0.2%. SRX’s flash index for HDB resale prices still represents a 4.4% fall from a year ago and a 10.9% slump from the peak in April 2013.

HDB trims number of BTO flats on offer (ST, 2 July 2015)

The Housing Board has cut the number of Build-to-order (BTO) flats to be offered this year to 15,000 down from the 16,900 it had planned initially. The move is in the light of the stabilising resale market, the HDB said in a statement yesterday. Flash figures showed that HDB resale prices fell 0.4 per cent in the second quarter of the year. Last year, planned supply was also revised midway, from 24,300 initially to 22,455. The supply of new flats this year will be boosted by more than 9,000 flats to be offered in two Sale of Balance Flats (SBF) exercises. This is the highest number of SBF flats launched in one year, up from 6,700 last year. Of these, 5,387 were offered in May, another 4,000 will be offered in the next SBF, which will be held concurrently with the next BTO exercise taking place by September offering 4,860 flats in Bidadari and Punggol Northshore.

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