Singapore Property News This Week #159

Residential

HDB resale prices lowest in two years

In May, HDB resale prices have fallen for four consecutive months, hitting a new low in two years since April 2012. According to an HDB flash report by SRX, resale prices of HDB flats fell by 1.2 per cent in May as compared to the previous month. HDB executive flats saw the sharpest decline in its resale prices, with a 2.8 per cent fall. Ong Kah Seng from R’ST Research believes that demand for executive flats have fallen due to lower mortgage limits, as the mortgage servicing ratio is currently capped at 30 per cent of gross monthly salary. Besides the low resale prices, transaction volumes have also been low. While there was a 4.4 per cent month-on-month increase in transaction volumes in April, transaction volumes also fell by 11.1 per cent from April to May. Christine Li, OrangeTee research head believes that potential resale flat buyers could have turned to Sale of Balance Flats (SBF) as they are cheaper and ready for occupation.

(Source: Business Times)

Fewer HDB flats sold immediately after Minimum Occupation Period

HDB said that fewer HDB flat owners are selling their flats immediately after meeting the Minimum Occupation Period (MOP). Last year, only 470 HDB flats were sold within a year of their MOP. This was less than half of the 1,006 units sold in 2012. In 2010 and 2011, 1,338 and 1,231 flats were sold upon meeting their MOP respectively. Under the MOP scheme, flat owners cannot buy or invest in a private residential property during their MOP. Not only so, the flat has to be occupied for five years before they can sublet the unit, or sell it. According to Eugene Lim from ERA Realty Network, the slowdown in flat sales shows that the market is moderating and that flat owners may be waiting for the next upturn to sell their flats.

(Source: Channel NewsAsia)

Analyst says developers may adjust price to move sales in the near term

According to OrangeTee Research, developers may be adjusting prices of some of their projects to encourage sales and to avoid paying an extension fees. Under the government’s Qualifying Certificate (QC) rules, developers have to pay additional charges to extend their sales period after two years of the project’s temporary occupation permit (TOP). 24 condo projects are still not fully sold, two years after receiving their TOP, between 2010 and 2012. Thus, developers with unsold units may have to pay another $80.7 million to extend sales for another year. This is in addition to the $55.1 million that developers have previously collectively paid to extend the sales period of their projects from 2012. As such, analysts predict that developers may adjust prices to clear their stock by the deadline, in order to avoid hefty extension charges.

(Source: Business Times)

Online survey by MND: Singaporeans in favour of more three-generation flats

According to an online survey by the Ministry of National Development, Singaporeans support the development of more three-generation flats, and are supportive of giving priority to those who apply for a HDB flat that is near to their parents. The survey which has 1,927 participants since May 25 is part of the government’s new housing conversation with Singaporeans to understand housing preferences and to find out how the government can encourage families to live together or close by. Also, the survey revealed that Singaporeans want higher housing grants for those who live with their parents, or live close to them. 72 per cent of the 949 courting Singaporeans who responded to the survey said that they want to live close to their parents. Also, 68 per cent of the 41 seniors who currently live apart or plan to live apart from their children reflected that they want to live in the same town, or closer, to their children in future. However, only 31 per cent of the 880 married couples surveyed live in the same town with their parents. Dr Lee Bee Wah, chair of the Government Parliamentary Committee for National Development, said that this could mean that there are insufficient BTO flats in the same estates where parents are living.

(Source: Business Times)

Commercial

Overseas developers increasing marketing efforts in Singapore

Due to continued interest in overseas projects, more overseas developers are increasing their marketing efforts in Singapore. Overseas developers, Crown Group from Australia and UMLand from Malaysia have opened a sales office at Suntec Tower Two and a property gallery in Anson House at Tanjong Pagar respectively. Also, Galliard Homes from London is expected to open a sales office in Singapore soon. HSR International Realtors analyst, Wong Shanting said that Singaporeans may be encouraged to look elsewhere due to high property prices and due to the implementation of cooling measures such as the Total Debt Servicing Ratio, thus encouraging overseas developers to step up marketing efforts in Singapore.

(Source: Business Times)