Residential

Residential sector most hit by TDSR

Following the introduction of the TDSR framework in June, demand in all segments of the property market sank in July. According to property consultancy CBRE, residential deals were hit the hardest with a decrease of 56.6 percent, while transactions of strata industrial and commercial units went down by 20.9 percent and 31 percent respectively from June. Transactions for commercial units were supported by a relatively more resilient resale market. New sales of private homes by developers decreased by 73.3 percent to 482 in July compared with 1,806 in June. Resale private homes in July fell 14.3 percent to 539 based on caveats lodged. The number of strata units developers sold in the commercial segment went down by 57.6 percent to only 42, compared with 99 of June. Developers’ strata sales in the industrial segment also fell 32.3 percent, with resales falling 19.7 percent to 118 units in June.

(Source: Business Times)

Sideline income for property agents squeezed by cooling measures

After their “bread-and-butter” margins were affected by cooling measures, a small proportion of real estate agents are witnessing the disappearance of their sideline income which is by dabbling in property investments themselves.  According to the Council for Estate Agencies, there are 31,040 registered property salespersons as of Jan 1, 2013. The number of agents who invest in local properties is reported to be about 3 percent of the total number of buyers.

(Source: Business Times)

Property investment seminars on CEA radar

As more and more property investors trying to circumvent the successive rounds of cooling measures attend seminars promising to teach buyers to buy property with no cash outlay or loopholes to owning multiple properties in recent months, property experts urged that these seminars be regulated by the authorities. According to Mr. Mohamed Ismail, PropNex Realty chief executive, such unregulated claims may be damaging to the industry’s reputation and consumer protection, especially with the TDSR, and as more Singaporeans are looking for foreign properties to invest in.

(Source: Business Times)

Commercial

Reit flotations bolsters Q3 property investment sales

Q3 property investment sales – big-ticket transactions of at least $10 million – have reached $13 billion with $9.3 billion from deals originating from the private sector. This quarter’s sale doubles the $6.4 billion of Q2 and is the strongest showing since the $8.7 billion of Q3 in 2007. The sale has been supported by three real estate investment trust flotations with nearly $5.7 billion in asset sales, two government land sales sites of $2.35 billion at Telok Ayer Street and Yishun, and the sale of Grand Park Orchard hotel to Bright Ruby Resources for $1.16 billion. Due to the TDSR framework, the private-sector deals have decreased from 90 in Q2 to only 58 this quarter. Savills forecasts that investment sales would be $2-3 billion in the October-December period, which will take the full-year figure to $27-28 billion.

(Source: Business Times)

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