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The government has trimmed the development charge (DC) rates for industrial use, but the rates for all other use groups including residential, commercial, hotel/hospital and place of worship/civic and community uses remain unchanged for the period of 1 September 2015 to 29 February next year, revealed the Ministry of National Development (MND).

“With the dearth in land transactions, the Chief Valuer could have taken the cue from the occupier market to determine the DC rates for this round of revisions. With the market having just turned, the rates for office, retail and residential have remained unchanged as it is too quick to revise the rates. Should the occupier market continue to face headwinds, it is possible that more data points will be able to support any further downward revisions,” said Desmond Sim, CBRE Research Head for Singapore and South East Asia.

JLL noted that “the notable slow-down in private and public land sales in the commercial, residential (both landed and non-landed) and hotel property sectors are mainly accountable for the standstill in the respective use group’s revised DC rates.”

Meanwhile, industrial DC rates were lowered by an average of three percent, with a magnitude ranging from three to four percent for 87 out of 118 sectors.

The biggest drop of four percent applies to areas like Tampines Road, Kaki Bukit, Jurong West, Bedok, Sengkang West and Simei.

“The sedated industrial market over the past six months probably led to minor corrections in the DC rates for industrial. This is the first decrease in DC rates for industrial after having remained unchanged for the last three revisions,” Sim said.

The downward adjustment in the rates for industrial use is also the largest since September 2005, added Dr Chua Yang Liang, Research Head for Singapore and South East Asia at JLL.

credits: property guru

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Singapore-based CapitaLand has joined forces with BMW Asia to install six new plug-in electric vehicle (EV) charging stations at its properties outside the central business district by 2016.

The Star Vista and Westgate malls will each get two public EV charging stations, while Bedok Mall and The Atrium @ Orchard will have one each.

The developer currently has six stations at Capital Tower, CapitaGreen (two stations), One George Street, Raffles City and Six Battery Road in the city centre.

The additional charging points will see the number of CapitaLand properties with public EV charging stations increase from five to nine, accounting for nearly a third of the 31 locations with such facilities.

These stations can be used to power-up any EVs. The owners simply have to register through the Greenlots mobile app to tap the developer’s charging network.

Aside from installing charging stations at its integrated projects, shopping malls and office buildings, there are plans to offer these facilities at upcoming residential developments in Singapore.

“We are set to offer over 100 EV charging stations in more than 40 properties across Asia and Europe,” including 10 other local shopping malls in the near future, said Tan Seng Chai, CapitaLand’s Group Chief Corporate Officer and Chairman of its Sustainability Steering Committee.

CapitaLand’s decision to introduce more charging stations is part of its corporate social responsibility programme to reduce carbon footprint and promote green transportation.

The Building and Construction Authority (BCA) has incorporated the provision of EV charging stations as part of its Green Mark scheme to encourage property firms to support sustainable mobility.

credits : property guru

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The property market in Bangkok is expected to decline further after a deadly blast rocked the city recently. Demand for property was already soft before the bombing, and residential developers will reconsider, postpone and even scale down plans in the next four months, reported The Bangkok Post.

Supalai, Property Perfect, Major Development and Noble Development are just a few of the developers that have postponed launches scheduled for this year. Thailand’s largest developer, Pruksa Real Estate, is also considering delaying some of its launches, while AP (Thailand) is now focusing on safer single-house and townhouse projects.

“Developers should be more cautious of new investment, particularly in large projects that take a few years to develop,” Atip Bijanonda, President of the Housing Business Association, told the newspaper. “Maintaining financial liquidity with cash on hand enough for one year amid an uncertain situation is a must, as this year’s fourth quarter may not be a hot time for the sector to boost new residential sales.”

Developers are better off focusing on smaller projects that can close sales and be completed in a shorter time, he noted.

Suriya Poolvoralaks, Managing Director of Major, said the company has already converted a large condominium into a smaller eight-storey project of only 200 units to quicken sales and revenue.

Pruksa will delay its projects to next year due to the unfavourable market conditions, but the company isn’t sure how many will be pushed back. “It is hard to have new sales,” said Managing Director Prasert Taedullayasatit. “We will try to transfer our condo sales backlog to have revenue as targeted.”

Theeraphon Voranithiphong, Executive Vice-President of Noble, said the company has decided to postpone all four of its projects scheduled to launch in the coming months to 2016. These include condo developments in Thong Lor, Ari and a site that has yet to be determined.

Supalai will not launch any residential developments until it believes demand has returned. “We will not launch condo projects when we are not sure of their locations because launches come with expenses,” said Deputy Managing Director Tritecha Tangmatitham.

Fragrant Property CEO James Duan said the group postponed two new projects scheduled to launch in the fourth quarter to next year, including one on Soi Sukhumvit 36.

credits: propertyguru

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A recent property auction organised by property consultancy JLL saw one apartment sold out of seven residential and commercial properties submitted for sale.

The 2,174 sq ft loft unit at Orchard Scotts in District 9 comprises three bedrooms and was sold via mortgagee sale and with vacant possession for $2.8 million, despite being listed for $3.3 million.

The apartment comes with a 99-year lease with effect from January 2001.

Held at the Amara hotel last Thursday, the auction saw four properties put up for mortgagee sale and the rest through owner’s sale. Two other listings were withdrawn before the event.

The most expensive listing which didn’t sell was a two-storey maisonette at The Balmoral, with a price tag of $4.5 million.

JLL will hold its next auction on 23 September.

credits : property guru

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An apartment building which forms part of a A$575 million mixed-use development in Sydney has set a new sales record, after more than A$380 million worth of units were snapped up on the first day of launch.

By the close of business last Saturday, only two of the total 326 apartments remained at Infinity by Crown Group.

Crown Group said more than 70 percent of homes were sold to Australian residents and citizens, with prices starting from A$650,000.

The buyers were a mix of investors and owner-occupiers, noted Roy Marcellus, Director of Sales and Marketing.

“This is evidence of the strong demand for high-quality apartments in the right location,” said Crown Group CEO Iwan Sunito. Located within the new Green Square Town Centre, the project is close to a train station.

Sunito added that the building’s architecture, with a looped shape and an 1,180 sqm open-air garden plaza surrounded by retail outlets, restaurants and cafes, “has captured the imagination of Sydney and global investors alike”.

In July, the building’s design was unveiled to more than 1,500 guests at a Sydney red carpet event.

Meanwhile, construction work is expected to be completed in 2019.

Credits: propertyguru

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General Storage Company (GSC), a wholly-owned subsidiary of Singapore Post, has acquired the Store Friendly Self Storage Group (SFG) from Store Friendly Asia – the largest self-storage network in the region.

The acquisition of Singapore-based SFG, which provides personal and business storage facilities services, amounted to $12 million in cash and was funded from SingPost’s internal resources.

GSC may pay another $4 million to Store Friendly Asia if certain conditions are met.

“The acquisition will increase GSC’s presence across Singapore, making us the self-storage provider with the most number of facilities here (15). Customers of Store Friendly, especially those operating e-commerce businesses, will benefit from our value-added services such as parcel delivery,” noted GSC’s Group CEO Helen Ng.

In a statement released via SGX on Tuesday, SingPost said the deal is not expected to have any material impact on the net tangible assets or earnings per share of the group for the financial year ending 31 March 2016.

credits : propertyguru

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The 358-unit Shunfu Ville residential development in the highly sought-after Bishan/Thomson area has been launched for collective sale, revealed marketing agent JLL.

Built in the late 1980s by the former Housing & Urban Development Company (HUDC), Shunfu Ville was recently privatised in 2013, said Tan Hong Boon, Regional Director, Capital Markets at JLL.

Measuring 408,927 sq ft, the site is zoned residential with a gross plot ratio (GPR) of 2.8 under the Master Plan 2014, and could yield over 1,100 units with an average size of 1,000 sq ft.

“More than 80 percent of the owners have inked their consent to the collective sale, and they are expecting offers in excess of their minimum price of $688 million. This minimum price translates to a land rate of approximately $791 psf per plot ratio (psf/pr) on the potential GFA, after adding an estimated differential premium of $218 million payable to the State to top up the lease to a fresh 99 years and for intensification of use, subject to approval from the relevant authorities.

“At this rate, the estimated breakeven cost for the successful purchaser should be around $1,250 psf, with the new units expected to fetch between $1,400 psf and $1,450 psf. At the minimum price of $688 million, owners can look forward to receiving gross sales proceeds of at least $1.9 million per unit, or about 50 percent more than what they could obtain by selling their units individually,” said Tan.

He added that the new project could have a height of up to 36 storeys, making it the the tallest residential development within a 1km radius.

The site is close to the Marymount, Bishan and future Upper Thomson MRT stations, while established schools like Ai Tong School and Raffles Institution are also nearby.

The tender exercise for Shunfu Ville closes on 27 October 2015. 

 

credits: property Guru

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Extensive public consultations are currently underway as to how studio apartments and 2-room flats can be combined into the new 2R Flexi scheme, but still retain their objectives, said National Development Minister Khaw Boon Wan.

Writing on his blog, Mr Khaw explained that singles and families will still be able to purchase a new 2-room flat from HDB on a 99-year lease, but elderly households aged 55 and above can choose a shorter lease period based on their age and preference under the unified scheme.

The lease options range from 15 to 45 years in 5-year increments, and will be granted provided the chosen lease allows applicants and their spouse to live in the flat till age 95 or above.

Prices of the 2R Flexi flats will take into account the lease tenure and whether they are bought by first-time or second-time buyers.

“Shorter lease flats will be cheaper than longer lease flats. Second-timer buyers will pay more than first-timers as the latter will get more subsidies. Through a combination of pro-rated grants for first-timers and pro-rated resale levy for second-timers, we will be able to price the 2R Flexi flats so that recent buyers of SA or 2R flats will find the 2R Flexi scheme to be fair. New buyers of 2R Flexi flats will also find the flats affordable,” wrote the Minister.

“We have worked hard over the past few months to get this balance right, for the new 2R Flexi scheme,” he added.

The government is expected to launch the unified scheme during the next Build-to-Order (BTO) exercise in September.

credits: property guru

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A land parcel at Fernvale Link in Sengkang which was previously meant to be developed into a Chinese temple attracted four bids during the close of its tender on Tuesday, reported Channel NewsAsia.

Thye Hua Kwan Moral Society submitted the highest bid of $6 million while the Buddhist Compassion Relief Tzu Chi Foundation (Singapore) offered the second-highest bid of $4.58 million.

In July 2014, the site was awarded to Eternal Pure Land (EPL), which planned to build a columbarium there. However, the tender was recalled by the Ministry of National Development (MND) after nearby residents objected to the company’s plan for the site.

Then in May this year, MND revealed it would re-tender the 2,000 sqm site for its original purpose – as a Chinese temple.

The top bid by Thye Hua Kwan Moral Society was more than the $5.2 million bid by Eternal Pure Land back in 2014.

Meanwhile, the Lorong Koo Chye Sheng Hong Temple Association and the Peng Hong Association offered $3.88 million and $3.03 million respectively.

Credits: property guru

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Market Updates transactions as of july 2015

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blog2

 

Credits: ERA Realtor Network Pte Ltd

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National Development Minister Khaw Boon Wan said the new two-room Flexi housing scheme will see a “more inclusive” arrangement with the elderly and young living within the same block, reported The Straits Times.

Under the scheme, the two-room flats and studio apartments are placed in one category and sold under the same scheme.

“The buyers will be diverse – there will be some elderly people, younger people; some may be getting married, others may be married, and then there are those with kids,” noted Mr Khaw at a dialogue organised by Chinese daily Lianhe Zaobao.

The current practice of having the entire block of studio apartments occupied by the elderly may not be beneficial for their mental outlook, he shared.

The plan to put the two-room flats and studio apartments under the same scheme which will offer varying lease periods was first mentioned by the Minister during the 2015 Budget in March.

He had stated in June that the length of leases would be restricted based on the age of the buyers.

During the dialogue, Mr Khaw revealed that the scheme is expected to be ready by the next BTO exercise in September.

Two-room flats currently have a 99-year lease and are offered to families or singles, while studio apartments come with a 30-year lease and are allocated for individuals aged 55 and above, who have sold their previous flat to finance their retirement.

While both flat types have the same sizes of 36 sqm or 45 sqm, studio apartments are cheaper due to their shorter lease.

credits: property guru

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Resale prices of HDB flats dipped 0.4 percent in the second quarter of 2015 from 1.0 percent in the previous quarter, or its eighth consecutive quarter of decline, according to latest data from the housing board.

“The falling resale prices are due to the potent combination of the government’s measures to stabilise the public housing market such as, reducing the Mortgage Servicing Ratio (MSR) cap of 30 percent and the maximum loan term of 25 years for HDB mortgage loans, three-year wait for new PRs before they can buy resale HDB flats, and allowing singles to buy two-room BTO flats in non-mature estates,” explained PropNex Realty CEO Mohamed Ismail.

Ismail also attributed the drop in prices to the increased Build-to-Order (BTO) supply. He noted that the sale of balance flats (SBF) also offers first- and second-time buyers a good number and variety of choices.

The lower prices may have lured buyers back to the HDB resale market as transaction volume climbed 27.8 percent from 4,135 units in Q1 2015 to 5,286 last quarter.

Meanwhile, the number of applications approved for subletting HDB flats rose 1.2 percent from 10,385 cases in Q1 to 10,510 cases in Q2. As at 30 June, 49,480 units were being sublet, up 2.4 percent from 48,338 units in Q1.

HDB also revealed that 13,426 flats were offered for sale during the first half of 2015, of which 8,039 were BTOs and 5,387 were balance flats.

In September’s BTO exercise, HDB said about 4,860 flats in Punggol Northshore and Bidadari will be launched, while another 4,000 flats will be offered in a concurrent SBF exercise.

Looking ahead, Ismail expects HDB resale prices to continue falling by around three to four percent for full-year 2015, given the large influx of flat completions from next year and the continued enforcement of cooling measures.

He also expects the resale transaction volume to reach 19,000 to 20,000 units due to lower asking prices, up from 17,318 transactions last year.

credits: property guru

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The Australian dollar weakened to under the S$1.00 level on Monday (27 July), falling below parity against the Singapore dollar for the first time since 2009.

According to Bloomberg data, the Australian dollar was trading at 99 Singapore cents at around noon yesterday, not far from just above S$1.00 across Asia last week.

The decline was attributed to slowing global demand for the country’s commodities exports in recent months.

The Australian dollar has weakened against its Singapore counterpart by about 8 percent since the start of the year falling below parity for the first time in six years.

Industry experts, as cited by the media, said the Australian dollar could further weaken against the local currency over the next few months.

credits: property guru

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The tender exercise for an executive condominium (EC) site at Choa Chu Kang Avenue 5 closed on Tuesday after attracting 11 bids, revealed the Housing and Development Board (HDB).

A consortium comprising Qingjian Realty (Residential), Suntec Property Ventures and Bohai Investments (Sengkang) submitted the top bid of $156 million, or $295 per square foot per plot ratio (psf ppr). The lowest bidder was Sim Lian Land with an offer of $108 million.

Launched for sale on 19 May 2015, the 176,379 sq ft site has a maximum gross floor area of 529,136 sq ft and plot ratio of 3.0.

The land parcel is within proximity to Sunshine Place shopping centre and Chua Chu Kang Primary School.

Offered on a 99-year lease, the site could yield around 490 EC units.

A decision on the award of the tender will be announced at a later date after the bids have been evaluated.

Location-plan-for-land-parcel-at-Choa-Chu-Kang-Avenue-5

 credits: property guru

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Although market sentiment for the real estate sector remained weak, the sentiment index improved slightly from 3.8 in Q1 2015 to 3.9 in Q2 2015, revealed the latest survey by the National University of Singapore (NUS) and the Real Estate Developers’ Association of Singapore (REDAS).

A score of more than five indicates improving market conditions, while a score of less than five indicates deteriorating conditions.

The worst performing real estate sectors were the prime retail and residential sectors, while the best performing was the business park/hi-tech space sector, reported Channel NewsAsia.

Meanwhile, the Future Sentiment Index – which measures market sentiment for the next six months – climbed from 3.7 percent during the previous quarter to 4.0.

The NUS-REDAS survey also showed that property developers are unlikely to hold back on residential launches, with nearly 75 percent of developers expecting new launches to moderately increase and/or remain at the same level over the next six months.

Moreover, 52.4 percent of the developers polled expect residential property prices to moderately decline in the next six months.

Over 73 percent expect the rising inflation, interest rates and the slowdown in the global economy to adversely affect sentiment in the real estate market in the next six months. Notably, only 26.6 percent pointed to the cooling measures by the government as a potential risk that could negatively affect market sentiment.

Respondents of the quarterly survey are senior executives of REDAS member firms, said NUS and REDAS in a joint statement.

credits: property guru

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The mixed-use development Thong Sia Building has been sold to a member of private investment group SIN Capital for S$380 million, JLL announced in a press release on Wednesday (29 July).

This is the first collective sale for the year and is the largest mixed-use collective sale ever recorded in the republic.

According to JLL, the sale of the freehold Thong Sia Building is the second largest collective sale over the last seven years, after Serangoon Plaza, as well as the largest ever mixed-use collective sale in Singapore. The fully-commercial development Serangoon Plaza was sold for S$400 million in 2013.

Built in 1981, the 26-storey residential and commercial use Thong Sia Building has a land area of approximately 21,602 sq ft, and currently comprises seven levels of commercial space and a 19-level residential tower of 37 apartments. Based on the GFA, the purchase price translates to S$2,430 per sq ft.

In addition, JLL said the Urban Redevelopment Authority (URA) has verified the existing gross floor ara (GFA) of the building to be in the region of 156,300 sq ft, reflecting an equivalent gross plot ratio of about 7.23.

Karamjit Singh, International Director at JLL said: “In response to an outline application, the planning authority has advised that they are prepared to support the redevelopment of the site into a mixed residential and commercial development with at least 60 per cent of the space set aside for residential or serviced apartments.”

It is noted that the sale is subject to, among others, approval by the Strata Titles Board, before the completion of sale will occur.

credits: property guru

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Private home prices in Singapore fell 0.9 percent in the second quarter of 2015 compared to the 1.0 percent drop in the quarter before, according to more complete statistics released by the Urban Redevelopment Authority (URA) on Friday.

The data shows this is the seventh straight quarter of price decline in the private residential market.

Prices dipped across the island with the suburbs (Outside Central Region) recording the biggest drop of 1.1 percent, the same as in the previous quarter.

Both the city (Core Central Region) and city-fringe areas (Rest of Central Region) registered price falls of 0.6 percent last quarter, compared to declines of 0.4 percent and 1.7 percent respectively in Q1.

Landed property prices decreased 1.1 percent in the period, more than the 0.9 percent decline in the previous quarter.

The government’s slew of cooling measures which will stay in place for now have been effective in correcting prices since the peak in Q3 2013.

Credits: propertyguru

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Without a doubt, the cooling measures implemented during 2012 and 2013 have applied the brakes to what many have begun to view as a dangerously overheated property sector. Over the past seven quarters, we have seen the reverse happening, with sluggish sales volumes of private condominiums appearing to be the norm, suggesting that successive rounds of cooling measures have been very effective. And without further indication from the government if they will be maintained, market sentiment is that this trend could continue for the time being.

Impact on price

It has been widely recognised that of the different regulations that were implemented, the Total Debt Servicing Ratio (TDSR) and Additional Buyer’s Stamp Duty (ABSD) have been the two most effective measures to cool the property market.

In fact, since the implementation of the TDSR in June 2013, we have had seven consecutive quarters of price falls in the private condo market since its peak in Q3 2013. TDSR limits borrowing to 60 percent of your monthly income, including all forms of debt, such as housing, car, and personal loans. This is to prevent over-stretching one’s finances.

ABSD, on the other hand, is the vehicle to curb speculation by Singaporeans who can afford more than one home; as well as the influx of foreigners from buying. Here are the rates for ABSD, on top of the basic stamp duty of 3.0 percent:

• Singaporeans: +0% / 7% / 10% (1st / 2nd / 3rd and more)
• PRs: +5% / 10% (1st / more than one)
• Foreigners: +15% for any number of residential property

Over the last seven quarters since the peak in Q3 2013, the overall private residential property index has dropped by 7.2 percent. Across quarters, the fall has been rather uniform, averaging 0.9 percent per quarter. The first two quarters in 2015 were not different, at -1.0 percent in Q1 and 0.9 percent in Q2 (see chart 1).

According to data from the Urban Redevelopment Authority (URA), various parts of Singapore were affected to a different extent, since Q3 2013.

Quick facts:

Capture 02

Core Central Region (CCR):

The Core Central Region (CCR) consists of districts 1, 2, 9, 10 and 11, stretching from Singapore’s Central Business District to Orchard Road, Cairnhill, Tanglin, River Valley, Newton and Bukit Timah. Due to its prime location and convenience, the residential developments in the CCR are the highest priced and most sought-after. It typically consists of luxurious homes and is considered an enclave for the wealthy.

For the past half a year, the price index of non-landed private properties in the CCR dropped the least among the three regions, recording a decline of 0.9 percent. This followed a rather turbulent five quarters previously for the region, with a -6.2 percent drop in the price index. It started with a big drop of 2.1 percent in Q4 2013, followed by an average of 1.0 percent per quarter in 2014, and then softened to 0.4 percent and 0.5 percent in Q1 and Q2 this year respectively.

This is in line with general market trends – when a market slowdown happens, the CCR will be the first to get hit the worst. Conversely, when the market picks up, it is also this region that will move first with the strongest growth.

The presence of some new launches could help to cushion the market slowdown. Marina One Residences, launched in Q3 2014, has sold some 84 percent of its launched units so far. The price drop in the CCR has now trickled to below 0.5 percent per quarter, possibly showing early signs of price stabilisation.

PPI

Rest of Central Region (RCR):

The RCR, traditionally known as the mid-tier market, continues to be a popular area that home buyers often have their eyes on by virtue of its relative proximity to the CBD.

Popular areas include: Bishan, Bukit Merah, Geylang, Kallang, Marine Parade, Queenstown and Toa Payoh.

The region is seeing a number of new developments that are drawing buyers in search of a greater selection of high quality condo options in smaller sizes, and at lower price points than those available in the CCR, yet still within easy reach of the city centre.

This offers savvy investors the opportunity to enter into a growing property market in a popular area, without the price tags associated with the higher end of the condo market in the CCR.

Amongst the three regions, the RCR was the only one that didn’t show a decline in Q4 2013. It managed to see a +0.4 percent increase over Q3, possibly due to the shift of original buyers of properties in the CCR to consider the RCR.

Property prices took a bad turn thereafter – moving into 2014, RCR was the worst-hit region, with a -5.3 percent price drop for the full year. The decline continued into Q1 2015 at -1.7 percent, which then slowed down to -0.5 percent in Q2.

Capture 03

Outside Central Region (OCR):

The OCR is widely recognised as the suburbs of Singapore, and includes the densely populated neighbourhoods of Punggol, Woodlands and Jurong, where a wide variety of mass market condominiums are located together with, in recent years, an increasing number of executive condominiums (ECs).

Although traditionally seen as a refuge for those who cannot afford the prices associated with condos in the CCR or RCR, this view has begun to change as new projects appealing to more savvy and upwardly mobile investors are appearing across the OCR skyline.

Today, the lure of private developments in the OCR lies in the perfect combination of price, location, size and surrounding amenities.

With the private property price index dropping 1.0 percent in Q4 2013 compared to the quarter before, its price movement in 2014 was very subdued, at only -2.2 percent. This was mainly due to many new launches in the OCR, whose price points were very attractive to HDB flat upgraders. However, good things don’t last – going into just the first half of 2015, prices have already dropped by -2.3 percent.

We see this as a natural progression. With prices in the RCR dropping by -7.1 percent since the peak of Q3 2013 and -5.5 percent in the OCR, their prices are converging.

PTV

Price trends:

The top left chart says it all – properties in the OCR are overpriced. Taking the base point (100) at Q1 2009, prices in the CCR have grown +30 percent, +42 percent in the RCR, and +60 percent in the OCR. Coupled with the correlation between demand and supply, and with price as the third factor, the land scarcity in the CCR and RCR should cause prices to increase, and the prices in the OCR to decrease due to land abundance.

This could be due to successful planning on the government’s part to decentralise the financial and services business from the CBD towards the suburbs, thereby increasing the popularity and demand of housing near to these regional centres. Some examples of such business parks and business clusters are Woodlands Regional Centre and Jurong Lake District. With smaller business zones identified outside the CCR, in time to come, it may be irrelevant to compare prices across the three regions, but instead, the distance from each business or satellite town.

That said, there is still room for further moderation of property prices in the OCR.

Volume

Based on initial flash numbers collated, 3,748 units of non-landed private properties were sold in the first half of this year – a 29 percent decrease in comparison with half-yearly results of H2 2014. It is worse when we compare it year-on-year (H1 2014), at a 41 percent decrease.

Of all the quarters since Q3 2013, we saw more new launches sold than resale, except for Q1 2015.

Transaction volumes are greatly affected by the number of new launches – and usually those that are priced for the mass market. In the chart below, we see that there is a direct correlation between number of new units launched, and the number of new launches transacted.

In 2015, about 15,000 units are estimated to be launched by the end of the year. In the first half of 2015, only 1,813 units for sale were recorded.

We expect an upswing in take-up rates, with more mass market-priced projects set to be launched in the second half of the year. In the first half, four new projects reported relatively good sales, namely:

GV Chart

 

credits: property guru

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Construction will start next month on a new underground retail link in Nee Soon offering residents easy access between Yishun MRT station and the future Northpoint City integrated development.

Comprising close to 30 shops, the fully air-conditioned Northpoint Link will supplement the current underpass connecting the MRT station and bus interchange via Northpoint Shopping Centre.

“With Northpoint Link, not only will Nee Soon residents be able to reach Orchard Road in 22 minutes by train, but they can do so in total comfort, with Yishun MRT seamlessly connected to the new air-conditioned bus interchange via a comfortable and convenient underground retail link,” said Cheang Kok Kheong, chief executive officer of development and property for developer Frasers Centrepoint Limited.

At a width of eight metres, Northpoint Link will also provide more room for pedestrian movement than most underground connectors which typically have a width of five metres.

The ease of connectivity offered by the integrated transport hub was one of the major draws for buyers of the recently launched North Park Residences, a 920-unit condominium at Northpoint City which has an average psf price of $1,300.

Around 80 percent of the 600 units so far released were sold within two months of the project’s launch in April 2015.

Meanwhile, works on Northpoint Link are expected to take two years to complete.

credits: property guru

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The Brownstone, a 638-unit executive condominium (EC) project at Canberra Drive in Sembawang, has received around 640 e-applications since its launch on 10 July, reported Channel NewsAsia.

E-applications for the project, which is being jointly developed by City Developments Limited (CDL) and TID Pte Ltd, closed on Monday, while bookings start this coming Saturday, 25 July.

Although e-applications are usually viewed as an indication of interest in a project, applicants are not obliged to purchase once sales commence. Units at The Brownstone have an indicative price of $599,000 for a two-bedroom and $1.3 million for a five-bedroom penthouse.

Meanwhile, several other EC projects are expected to enter the market this month. E-applications for Sol Acres at Choa Chu Kang is currently in progress, while the 517-unit The Vales, located at Anchorvale Crescent, already opened for sales last Saturday.

 

Credits: propertyguru

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