Residential

TDSR continues to affect August developer sales

Despite a recovery last month, new private home sales were suppressed in August by the double influence of the TDSR framework and the Hungry Ghost month. According to the data of the Urban Redevelopment Authority (URA), there were 742 private homes transacted in August, not including the hybrid ECs, which was 54 percent higher than that of July, but just over half of 1,427 sales of last August. Mass-market residences dominated August property activities, with Outside Central Region homes accounting for 73 percent of sales and 76 percent of launches. Rest of Central Region made up 15 percent of sales and 13 percent of launches, and Core Central Region took up 12 percent of sales and 10 percent of launches. 726 EC units were sold in August, compared with 112 units sold in July. Developers launched 927 units for sale in August, compared with 557 homes of July. A Religare Capital Markets report said this was the first time that sales have lagged for two straight months since January last year. It is said that TDSR caused sales to take longer to go through due to more detailed financial assessments.

(Source: Business Times)

HDB extends interim housing scheme

More families now can temporarily rent an HDB flat while waiting for their new one to be ready through a faster and more convenient process. Under HDB’s Parenthood Provisional Housing Scheme (PPHS), couples engaged to be married, married couples either as first-time or second-time applicants, and divorced or widowed parents with children are also eligible for applying for these flats, with priority still reserved for married couples. Monthly rentals for 800 flats available are from $800 to $1,900 depending on size and location. All eligible families can now apply for PPHS flats on HDB’s website or at e-kiosks at any HDB Hub or branches. They can also move in faster, as they can apply for a PPHS unit right after booking a new flat, instead of having to wait for an Agreement for Lease, which could take a few months. HDB expects families to be able to move into their interim homes by the following month. Engaged couples can now apply for the scheme provided that they must produce their marriage certificate within three months of moving into the PPHS flat. It was reported that the latest changes are unlikely to impact the overall housing market much. Since the scheme’s introduction in January, 327 married couples have moved into PPHS flats.

(Source: Business Times)

HDB 5-year bond issue sold for $1.45 billion

HDB had its largest bond sale ever last week, when its $1.45 billion five-year bonds were sold amid a volatile market. This proves that demand is always strong for a solid Singapore issuer. The HDB, a statutory board and frequent issuer, initially wanted to put the issue at $1 billion, but then increased it to $1.45 billion given the strong demand. The deal was priced at 2.365 per cent, 55 basis points above the five-year swap offer rate (SOR) at 1.815 per cent. HDB usually sells tranches of $400 million to $500 million under its $22 billion multi-currency medium term note programme, but in January it had a $1.2 billion deal.

(Source: Business Times)

Commercial

Prime office rents increases by 1.4% in Q3

A report released by Knight Frank revealed that prime office rents increased in Q3 amid higher leasing enquiries. On contrary to seven consecutive quarters of decreased or flat growth, prime Grade A+ rents in Marina Bay and Raffles Place went up by 1.4 percent quarter-on-quarter, standing at between $9.90 and $12.00 psf. In this sub-segment, smaller office spaces received high demand from smaller companies who were previously located in serviced offices and are moving back to traditional office space. CapitaGreen, the latest premium Grade A office development, is now open for interested tenants with asking rents between $13 and $14 psf. Other Raffles Place Grade A office rents also increased by 0.6 percent quarter-on-quarter to between $9.30 and $10.45 psf. Outside the CBD, Orchard Road’s average office rents for Grade A space increased by 0.6 percent quarter-on-quarter, to between $7.00 and $10.90 psf.  Average rents in the Suntec/Marina Centre/City Hall area rose 0.5 percent quarter-on-quarter, while rents in the Beach Road/Middle Road decreased by 0.4 percent quarter-on-quarter.

(Source: Business Times)

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