New condominium projects attracts buying interest

Over the past weekends in March 2017, new condominium launches have been the talk of the town. The last few weekends saw active interest from the market with new developments such as Grandeur Park Residences, The Santorini and Highline Residences were actively in the thoughts of the market.

Besides, there was also Park Place Residences with ignited the market with its integration of the shopping mall, business hub and residences. This project is the gem of Lendlease, featuring 429 residential units that is located within the Payar Lebar Quarter. It open for the preview in Mid March, was attracted a good crowded indicating active interests in the market. Property agency, Knight Frank noted that the size of the crowded indicated good buying interests.

The Santorini at Tampines
The Santorini at Tampines

Earlier in February, local big boy, UOL Group, had a great start to the year with their gemstone project – The Clement Canopy at Clementi. According to the listed big boy, they saw a substantial size of crowd during the preview weekend at its showflat along Clementi Avenue 1. They noted that the recent adjustment made in the Budget 2017 had been a purposeful re-calibration that has positively impacted the market sentiment. One of their spokesperson said – “Our sales momentum has remained constant; we did not see a sharp increase.” So far, the 99-year leasehold The Clement Canopy has sold 244 units out of the 350 released, at prices ranging from $1,330 to $1,360 psf.

Buying interest was a brisk in the Eastern part of Singapore too! With Grandeur Park Residences topping the charts and spurring sales in the nearby housing projects such as Coco Palms, The Glades and the Santorini. There is also more upcoming action with Seaside Residences at Siglap too!

Meanwhile, CEL Development, the property arm of listed construction company Chip Eng Seng Corp, launched the 720-unit Grandeur Park Residences, located next to the Tanah Merah MRT station, in early March. As at March 14, 464 units (64.4%) in the 99-year leasehold condo had been sold at an average price of $1,350 psf. “The easing in the cooling measures didn’t result in a greater turnout at showflats,” says Chng Chee Beow, executive director of CEL Development. “In fact, it had very minimal impact.”

Will see we better property sales in 2017?

As we approach the end of 1st quarter in 2017, let us reflect and take a look on the property market in the upcoming months.

2016 wasn’t a year for where you can say the property market was good, in fact the private residential property sentiments was merely lukewarm. However, we want to highlight that it was also a year where we saw an increased amount of property buyers from overseas. This led us to think – Could see more of these foreign property buyers coming back to Singapore?

By the year of 2015, we saw most foreign buyers leaving the property market in Singapore. The total number of foreign buyers who bought non-landed private homes in 2012, but since then, the nos. steadily declined to only 894 in 2015.

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Why are we seeing such buying interests coming back?

Lets not talk about the the better sales volume we are seeing since 2015, it can be said that the buying habits of foreign property buyers has also changed over this period of time. Based on what we observed, it is no longer just about purchasing the best – i.e the most luxurious or high-end properties in the market. We see an increased interest shifting towards value for money purchases with the example of Cairnhill Nine & Sturdee Residences and also developments with upcoming MRT like The Line @ Tanjong Rhu (Katong Park MRT).

Foreigner property buyers increased from 894 in 2015, to 1,067 private residential purchases in 2016 for these non-landed residential property purchases not to the mention the hefty Additional Buyers’ Stamp Duty (ABSD) they needed to fork out – the reason for the decline since 2012. For the Singaporean Permanent Residents, their numbers declined drastically ever since the introduction of cooling measures in 2013. Overall, the number Singaporean Permanent Residents (SPR) buyers is also seeing an increase – reflecting continued confidences for the private residential market in Singapore.

Typically, most Singaporean Permanent Residents (SPR) purchases are in suburbans or lower-cost choices compared with foreign buyers – less impact by the Additional Buyers’ Stamp Duty (ABSD). Recently, there is a growing trend on these buyers looking into further locations (suburbs) or choosing relative smaller sized private residential developments.

Better buying confidence in 2017.

It widely expected that private residential property prices will remain stable in 2017. They are also expected to stabilise and we probably can expect foreign buyer interest to continue like 2016. It is also unlikely that foreign buyers will probably rush in the market because our cooling measures like the Additional Buyers’ Stamp Duty (ABSD) are set to stay. On the other hand, buying interests of most Singaporean Permanent Residents (SPR) will continue to be resilient moving from 2017 coupled by developments such as the future completion of the High Speed Rail (HSR) line, which will boost connectivity and accessibility for Malaysia and Singapore.

Residential vacancy rate in Singapore – Is there a problem now?

Many vacant units at The Shore Residences.

Something is brewing. There are reports saying that the overall vacancy rate in private residential properties are high now. What is the cause of this? Let us do some digging.
It is understood that the supply of new private homes in pipeline are coming up in bulk with interests continuing to be muted.

Reports

Straits Times reported that the vacancy rate of private condominiums and residential apartments are high because of a few different reasons – the main cause being that a substantial amount of new completions are due in the next few months of 2017. From the data acquired from Urban Redevelopment Authority (URA), we can see that there were 348,080 private homes available in Singapore and 29,197 were unoccupied in the last quarter of 2016. That would translate to a vacancy rate of 8.4 percent. Is that really high?

Apparantly, this 8.4 percent is still lower that the 8.9 percent recorded in the 2nd quarter of 2016 – which was all time high in 16 years. But R’ST Research Director Ong Kah Seng, who remains worried about the elevated vacancy level says that it still exceeded the 7.8 percent and 8.1 percent seen in the final quarters of 2014 and 2015.

What’s the cause?

The main cause of this situation is largely due to the enormous supply of new private residences with 20,000 built in 2016 versus 13,150 units in 2014 and 18,971 in 2015.

“High vacancy rates in 2016 are overall propelled by a combination of factors – substantial new private residential completions, and continued muted leasing interest amid crimped or no housing allowances by many foreign professionals,” noted Ong.

There is also another underlying reason behind this – Home owners are not willing to reduce their rental prices. But how true is this? Colin Tan, Director of Research and Consultancy at Suntec Real Estate Consultants is saying that the fact that there are many unoccupied units means that the majority of owners of units that have been completed over the past few years were either speculators or investors.

The Shore Residences

One might have heard that many apartments at The Shore have been vacant for substantial duration. This is in fact verified by tenants putting up at The Shore Residences. Jose Trinidad, a Filipino expatriate staying in the 408-unit residential project completed in 2013 – “Many units at The Shore Residences in the East Coast have been left vacant for long periods of time.”
“Most of the people living here are renting and the competition for tenants is very high nowadays. Many units are empty because the landlord just cannot find tenants,” noted the 38-year-old auditor.

An online check revealed that there are currently 55 units for lease at the project and 90 up for sale, but it is unknown how many of them are unoccupied.

New condo at Redhill MRT

Alex Residences is a masterpiece development of 99 year leasehold situated at the convenient location of Redhill MRT and Alexandra View. This luxury condominium block is right in the heart of Redhill and directly next to the Redhill MRT. Here you can take full advantage of the many amenities available in the near to the city and Orchard.

Alex Residences Redhill MRT
As well as our convenient location we offer our residents a luxury lifestyle community that is the perfect place for residents to enjoy time with their families and friends right in the heart of the city.

Here at the Alex Residences a wonder and unique lifestyle awaits you.

alex

The Alex Residences is one of the most conveniently located condominium buildings in Singapore. Right next to the Redhill MRT station, we are close to many other points of interest, from academic institutions, to retail shops, and more.

Alex Residences – Alexandra View
Living at the Alex Residences is like living at a highly-priced motel proper in the heart of Singapore.

A lot of our units overlook the prosperous Redhill and Orchard areas of Singapore, so that you may anticipate some robust views of town. The great a part of Alex Residences is that you may have all of the convenience of metropolis residing, whilst having fun with a serene, resort expertise in the comfort of your possess residence.

We’ve got a form of floorplans to swimsuit the desires of many distinctive households. As we are still within the approach of progress, these may alternate rather, but please do keep in touch, and investigate this site customarily to learn of any alterations from the developer, or discover more a few certain unit.

Alex Singland development
Our items are available in three, 4, or five bedroom choices, and look out over both higher Redhill MRT road or Redhill upward push. At the same time all of our models offer a peaceable and steeply-priced home atmosphere, these on the sixth ground and above present unblocked views for you to benefit from the city, and much more privateness.

If you need to study extra about any of those options, or see a full copy of the optional floorplans please contact us with any queries. Please actually have a look at our disclaimer for utilization of the Alex Residences floorplan.

Other property measures might be facilitated after TDSR changed: Report

The choice by the Monetary Authority of Singapore (MAS) to overhaul the renegotiating rules under the Total Debt Servicing Ratio (TDSR) structure is seen as an ideal move by Credit Suisse, and a conceivable antecedent to further amendments of other property cooling measures.

In a report, the money related establishment said “the expectation of the modification is to help borrowers renegotiate their current property advances at lower loan fees and better deal with their obligation commitments”.

“We decipher this emphatically, as the administration will tweak measures to suit advertise requirements and borrower input. The MAS assessed that 73 percent of exceptional lodging credits are for proprietor occupation as of Q3 2015, and five to 10 percent of families have obligation overhauling proportions above 60 percent.”

Check out Forest Woods – www.forestwoodsresidence.sg – New Launch by City Developments

The report included this is an indication that the administration is interested in unwinding different controls, despite the fact that the MAS expressed that the new guidelines don’t speak to a facilitating of the cooling measures.

“Semantics aside, we trust the changes bolster our perspective that with the debilitating large scale standpoint, further acclimations to property cooling measures would be one of the scopes of arrangements the administration can use to battle a log jam,” said Credit Suisse.

It noticed that the Additional Buyer’s Stamp Duty (ABSD) and Seller’s Stamp Duty (SSD) are not a vital piece of government assessment receipts, containing only two percent of aggregate expense incomes. TOP projects are selling well despite all of this. See Royal Square at Novena – royalsquare.sg

“The administration will probably need to save the component of astonishment preceding any activity, yet we trust the business sector could begin to cost in an expanding likelihood of (their) expulsion advancing,” noted Credit Suisse.

Under the new principles which produced results yesterday, borrowers who bought houses for their own utilization after the usage of the TDSR on 28 June 2013 will never again be liable to the TDSR edge of 60 percent or Mortgage Servicing Ratio (MSR) point of confinement of 30 percent when they renegotiate their home loans.

Beforehand, just proprietor possessed properties purchased before the execution of the TDSR were exempted from the TDSR system.

Besides, borrowers are presently allowed to renegotiate their venture property credits over the TDSR edge paying little heed to when they were obtained. In any case, they should focus on an obligation diminishment arrangement with their particular banks to reimburse no less than three percent of the remarkable equalization inside three years, and satisfy the money related foundation’s credit evaluation.

BREXIT may encourage S’poreans to invest in UK homes

A win by the Remain camp in Britain’s European Union submission may goad UK private property venture among Singaporeans, reported The Straits Times.

This comes the same number of potential purchasers here have been taking a sit back and watch approach throughout the most recent couple of months. Outstandingly, Central London saw prime property deals drop by more than 50 percent. Market specialists, be that as it may, trust volumes could rapidly recoup ought to Britain stay in the EU.

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Administration advisor Jimson Cheng uncovered that while he is not offering his Central London townhouse, he has selected not to make any further speculations. “I’ve companions with more than 10 London properties who have chosen to sell a couple of because of the instability, and as costs are higher at this point.”

With lodging request in London far surpassing supply, the exhortation a great many people have given him “is to hold tight to your unit”, he said. See Sophia Hills – New Property at Mount Sophia

Territorial Director of London firm Strawberry Star Group, Doris Tan, ascribed the slower deals enrolled subsequent to the begin of 2016 to a limited extent to the submission. The keep a watch out methodology saw property deals fall by around a third, said Knight Frank senior accomplice and Group Chairman Alistair Elliot.

In spite of the fact that the best deals have had a tendency to be outside Central London (Zone 1) amid the most recent couple of months, Central London is still prominent amongst Hong Kongers and Singaporeans, yet just at costs of up to £1,200 (S$2,360) psf, said Richard Levene, Director for International Properties at Colliers International. See the new singapore property – goodwood-grand.sg

Elliot said the best fleeting effect of a Leave vote would be a keep running on the sterling, which could thusly urge outsiders to buy more property.

New land releases for up to 7,550 homes in Singapore

The administration on Wednesday (8 June) propelled four affirmed list locales and 11 save list destinations under the second half 2016 Government Land Sales (GLS) Program.

These destinations could yield a sum of 7,550 private lodging units and 277,100 sq m gross floor range (GFA) of business space, uncovered the Ministry of National Development (MND). This is near the 7,420 units in the primary half 2016 GLS Program.

cck
See the new Executive Condominimum – Sol Acres

The 2,170 units in the affirmed rundown is higher than the 1,560 units propelled in the affirmed list in the principal half of 2016, however is near the aggregate supply of 2,130 units from the GLS Program in the primary portion of the year, which came about because of the offer of a store list site in February.

The affirmed list locales incorporate three private plots at Fernvale Road, Perumal Road and West Coast Vale, and one blended use site at Upper Serangoon Road. These locales could produce around 2,170 homes and 15,500 sq m GFA of business space.

The dominatingly private site at Upper Serangoon Road will give retail comforts to the inhabitants of Bidadari HDB domain, said the MND. With Coco Palms that is near Pasir Ris MRT.

In the interim, the store list incorporates seven private destinations, including one official apartment suite (EC) site, one business and private site, two business locales and one white site. These destinations could yield around 5,380 private units (counting 780 EC units), and 261,600 sq m of business space.

The store list incorporates three destinations at Beach Road, Woodlands Square and Central Boulevard for blended use advancements containing basically office space. Nearby, there is Sturdee Residences just launched in earlier this year.

As per the Urban Redevelopment Authority (URA), affirmed list destinations are dispatched available to be purchased at pre-decided dates and for the most part sold through tenders. Locales on the store rundown may be set up for delicate when a designer offers a base cost which is acknowledged by the legislature.

Strong demand for AMK and Bedok BTO

The aftereffects of the Housing Board’s most recent Build-To-Order (BTO) deals exercise, which shut on Monday (30 May), demonstrate that purchasers still support pads in experienced bequests, reported Channel NewsAsia.

This pattern was especially apparent in the experienced towns of Ang Mo Kio and Bedok, where BTO pads were offered without precedent for a long time.

Indeed, the 234-unit Ang Mo Kio Court venture reported 2,107 applications, or nine candidates for every level, starting 5pm yesterday, speaking to the most astounding general number of would-be purchasers in the most recent BTO deals exercise.

The advancement’s 5-room and 3Gen pads additionally saw solid interest coming for the most part from second-time purchasers, with around eight candidates for each level. As indicated by Ku Swee Yong, Chief Executive of Century 21 Singapore, second-clocks who purchased a home 15 or 20 years back have officially developed a great deal of value in their present pads, making it less demanding for them to move up to a 3-to 5-room HDB level.

As their youngsters have grown up, moving to Ang Mo Kio is additionally a coherent thing to do, given that there are numerous prominent schools close to the region, particularly if the Bishan bequest is incorporated, he included. See latest launch at Jurong – Lake Grande.

Bedok North Woods was another task that was oversubscribed, with 1,580 candidates going after 247 4-room pads.

Interestingly, interest for BTO pads in non-developed towns was lukewarm. The most noteworthy general membership rate of 2.6 was seen by the 5-room and 3Gen pads in two improvements in Bukit Panjang, Senja Ridges and Senja Valley, reported TODAYonline.

The second most prominent decision were the 4-room pads in Bukit Panjang, which collected 876 applications for the 525 units set available to be purchased.

SLP International’s Executive Director Nicholas Mak disclosed that purchasers have a tendency to incline toward HDB pads in developed areas as opposed to non-full grown towns as amateurs are liable to offer their first property for a benefit following quite a while. Freehold launches like Adana @ Thomson.

“So it’s nothing unexpected that the ones that are better found gets higher applications,” he said.

Just five percent of the 4-and 5-room BTO pads in an adult town are dispensed for second-clocks, while 15 percent of the 3-room pads and bigger units are put aside for this gathering in non-full grown areas.

Prime area in Singapore “over the top” and only higher – CDL

The Government has more than once flagged it is hesitant to lift the property cooling measures for apprehension such a move will prompt overheating in the business sector once more. Money Minister Heng Swee Keat said in his financial plan discourse on March 24 that it was “untimely” to unwind the controls, emphasizing a perspective communicated in February by National Development Minister Lawrence Wong.

The private controls have incorporated a top on obligation reimbursement costs at 60 for each penny of a borrower’s month to month wage and higher stamp obligations on home buys, after low loan costs and request from outside purchasers raised concerns costs had risen too very quick.

Singapore’s second-biggest Developer has taken a potshot at the costs of prime area in here, depicting them as extravagant and anticipating that they’ll just get significantly more costly in years to come.

coco palms
Coco Palms By CDL

“In area rare Singapore, it is progressively hard to secure prime place that is known for this scale and regardless of the possibility that accessible, the approaching cost for area alone is extremely high,” City Developments (CDL) said in its income articulation on Wednesday (May 11). The remarks alluded to the 170,000 square foot (16,000 square meter) site the organization purchased for its Gramercy Park venture, simply off the Orchard Road shopping belt, also see Three Balmoral.

While Singapore’s private property costs have been on the slide for 10 quarters after the administration forced a phenomenal arrangement of controls to cool purchasers’ excitement beginning in 2009, the nation remains Asia’s second-most costly lodging market. CLD, keep running by extremely rich person Kwek Leng Beng, said it was blessed to have secured the freehold Gramercy Park site in the prior years, which managed it the capacity to offer it at current business sector rates, as per the announcement.

“Future stock around there is relied upon to be estimated higher,” the organization said in its outcomes explanation, alluding to prime area costs. For Gramercy Park, “the gathering is amidst its territorial abroad roadshows to advance the property, and interest has been sure,” it said.

CDL put in the most astounding offer in 2006 and bought the Gramercy Park plot on Grange Road for S$383 million, as indicated by a before organization proclamation. Singapore is the most costly place in the area to purchase an extravagance home after Hong Kong, as indicated by a 2016 riches report by home specialists Knight Frank LLP.

The designer reported a 14 for every penny decrease in benefit to S$105.3 million for the quarter finished March 31, while income slid 11 for each penny to S$723.3 million.

Net profit drops 27% to $2.1m – Wing Tai

Because of slower private housing sales.

Wing Tai reported that its second from last quarter net benefit dropped 27% year-on-year to $2.1 million, on back of proceeded with headwinds in the private business sector.

The gathering’s net benefit likewise declined because of an erratic $21.1 million addition in the comparing time frame a year ago, identified with the offer of shares in a property backup in Indonesia.

The gathering’s income dropped 35% to $43 million amid the quarter. Profit came generally from dynamic deals in its private tasks The Tembusu and Le Nouvel Ardmore, and also The Lakeview in China.

Going ahead, Wing Tai expects working conditions in key markets to stay testing.

“Purchasing estimation for private property in Singapore is required to stay quelled. In Malaysia, the mindful purchasing notion in the property business sector will remain. In China, private property deals have enhanced in specific urban areas supported by some unwinding of home buy confinements. The Group will screen the business sector nearly and will at fitting times discharge more private units available to be purchased in the present year,” said Wing Tai.