Residential
No oversupply in property market: Savills Singapore
Mr. Alan Cheong, head of research and consultancy at Savills Singapore, said that barring external shocks, property prices, residential prices will stay elevated, and that there will be an oversupply of homes in 2015 is not the case at all. This came among a recent talk of a possible residential property market crash, especially with more supply coming on board in 2015. Mr. Cheong made his case at Carlton Hotel for Singapore Management University’s (SMU) homecoming celebrations for its Master of Science in Applied Finance programme.
(Source: Business Times)
Sept SRPI worsens for three out of four sectors of non-landed private homes
According to the flash estimates of the Singapore Residential Price Index (SRPI) in September, prices of completed non-landed private homes fell in three out of four categories month-on-month. The only sector that showed an increase by 0.1 percent is for Non-Central Region (excluding small units), which had decreased 0.1 percent in August based on the revised value. The biggest drop in September was by the sub-index for small units (up to 506 sqft) islandwide, down 1.9 percent in September compared with August, contrasting with a 0.7 percent month-on-month increase in the revised index value for August. According to Savills Singapore, the reason for this could be that shoebox unit buyers in the early days with huge profits are less inclined to argue over pricing in today’s market when they offload their units.
(Source: Business Times)
OCBC mortgage insurance a bit hit
Four years ago, OCBC Bank launched a mortgage protector which would refund its buyers all the premiums paid if they are still alive at the end of the 20-year home loan. Currently, the Mortgage Protector Plus (a single-premium policy) and Mortgage Protector Advantage (the regular-premium version) are still the only mortgage insurance plans doing this and is still receiving great response from homebuyers. Despite the slowdown in Singapore’s property market, the number of new customers who bought these OCBC’s two mortgage insurance plans increased 60 per cent in the first nine months of 2013.These policies are considered to play right into the Singaporean psyche that hates giving or paying for something for nothing in return.
(Source: Business Times)
Good Class Bungalow market starts to warm up
Following the introduction of the Total Debt Servicing Ratio (TDSR) framework in lateJune, the Good Class Bungalow (GCB) market appears to be warming up. Options have been granted for the sale of at least two properties in Gallop Park and Dalvey Road. The Gallop Park bungalow is being on sale by a Singaporean in the banking and finance industryfor $25.2 million, or $1,574 psf on its land area of 16,010 sq ft. On site is a two-storey freehold property with about 7,000 sqft built-up area, with six bedrooms and a swimming pool. This transaction would mark the fifth time the property is changing hands over seven years; – the earlier transactions about $7.5 million in March 2006, $12.3 million in July 2007, $13.1 million in September 2008 and $21 million in December 2010 to the current owner.
(Source: Business Times)
Westwood EC site expects warm reception
The executive condominium (EC) site in Westwood Avenue is expected by property consultants to be warmly received, yet it is another matter to have agreement on pricing expectations. The site was one of two released for tender by the government. The other site is a 99-year leasehold residential site in Lorong Lew Lian. As for the Westwood site, the cost psfpprare expected by consultants to be from $285 to $380.SLP International’s executive director Nicholas Maksaid he expects a top bid of between $285 and $313 psfppr.
(Source: Business Times)
Singapore property investors heading overseas
Singapore property investors are reported to head to overseas property markets such as London, Australia, and new destinations like Canada and New Zealand. According to Jones Lang LaSalle (JLL), there has been an increase of 60 percent in Singapore investors’ interest in London properties in the first five months of 2013, with over 50 units per month bought by Singaporeans. Singaporean investors are more confident in London due to their financial confidence against the weakening pound. As for the Australian market, Singaporean investors have invested up to US$585 million worth of real estate between January and September this year, according to CBRE data.
(Source: Business Times)
Commercial
Five industrial sites released
Five plots of land have been released through the Industrial Government Land Sales Programme.Four of them are offered through the confirmed list. Tenders close on Dec 12 for three sites in Tuas South area (Plots 20, 22 and 24), and on Dec 10 for a plot in Gambas Crescent (Parcel 3).The fifth plot, Parcel 4 at Gambas Crescent, is offered through the reserve list. It will be launched for tender only if there is a successful application by a developer, with an undertaking of a minimum bid price that is acceptable to the state.The two Gambas sites are on 30-year leasehold tenure and zoned for Business 1 use with 2.5 plot ratio (ratio of maximum gross floor area to land area).
(Source: Business Times)