Private home prices increase in second quarter

According to the Urban Redevelopment Authority’s second quarter flash estimates, the private home price index increased by 0.8 percent from Q1, with a 3 percent increase for non-landed home prices in suburban areas. In Q1, the increase for private home and non-landed home prices was 0.6 and 1.4 percent respectively. Property consultants and analysts predicted a decrease in the volume of transactions for private home in the near future, but were reluctant to forecast any drop in private home prices. At the same time, the Monetary Authority of Singapore took action to prevent loopholes previously used to circumvent tighter loan-to-value limits on second and subsequent housing loans and longer-tenure loans.

(Source: Business Times)

HDB resale price growth in Q2 lowest in over four years

HDB flat resale prices in Q2 have the lowest growth in over four years, signaling signs of stabilizing. HDB’s resale price index (RPI) showed only an increase by 0.5 percent, the lowest since Q1 of 2009. It was reported that cooling measures introduced in January and an abundance of new flats were the two main reasons for the halt. The Mortgage Servicing Ratio (MSR) for HDB flats was cut in January to 35 per cent of a borrower’s gross monthly income for loans from 40 per cent previously, which was thought to have reduced purchasing power of HDB buyers and deflated the price growth momentum. Resale price in Q2 was also held down by an abundance of supply.

(Source: Business Times)

Love for property drives up debt levels

Singaporeans’ love for property has driven up their debt levels to 75 percent of GDP, doubling that of 38 percent in 2000. This is considered high compared to other countries in the region, except for Australia, Korea and Malaysia. Housing loans in Singapore make up 74 percent of total consumer loans. The government has announced that it would take action to ensure more prudent borrowing, which, according to bankers, will have impact on loan volumes yet its impact is to be observed.

(Source: Business Times)


Ying Li appoints group COO

Tan Kiang Hwee has been appointed as group chief operating officer for Ying Li International Real Estate Limited. Mr. Tan will be based in Singapore first, before being relocated to Chongqing next year, following Ying Li’s expansion into integrated commercial property development in Chongqing, particularly in central business districts and urban renewal projects. Mr. Tan’s experience in real estate spans more than 25 years, with his previous position as group chief executive of building consultancy Surbana Corporation, appointments in the Housing and Development Board and the Ministry of National Development.

(Source: Business Times)

Rental gap in retail space narrows

The rental gap in retail space between the regional centers and Orchard Road has narrowed, as average monthly gross rents of prime retail space in Orchard Road declined 0.9 percent while regional centers gained 0.1 percent in Q2. This mean the price gap between Orchard Road and the regional centers narrowed even more from 10.1 percent in Q1 to 9 percent in Q2. Non-luxury and fast-fashion sectors were reported to move from Orchard Road to more suburban locations, which have been dominated by food and beverage operators. Despite looming supply in the suburbs, landlords still maintained their asking rents at $31.1 psf per month. Orchard Road rents came in at $35.1 psf in Q2.

(Source: Business Times)

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