Residential

Luxury home prices fell by 10% over the last year

According to Knight Frank’s Prime Global Cities Index, luxury home prices in Singapore have fallen by 10 percent, despite an average of 4 percent growth in most other leading cities, from September 2013 to September 2014. Nonetheless, luxury home prices have also fallen in six other cities. For example, luxury home prices in Hong Kong have fallen by 1.1 percent. Market experts believe that home prices in Singapore have fallen due to the cooling measures that were implemented in the recent years. Alice Tan from Knight Frank predicts that prices for luxury homes will continue to fall as transaction volumes are typically low during the festive seasons at the end of the year. Comparatively, in the United States, annual prices have risen between 6.7 percent and 16.3 percent in cities such as Los Angeles, San Francisco, Miami and New York.

(Source: Business Times)

TRE Residences priced at $1,560 psf

TRE Residences, which is located in Geylang, will be sold at an average indicative price of $1,560 psf when it is launched on November 15. A 5 per cent early bird discount will be offered during the launch. With the discount, prices at TRE Residences will start from $690,000 for a one bedroom unit; $899,900 for a two bedroom unit; $1.179 million for a three bedroom unit and $1.38 million for a four bedroom dual key unit. Nicholas Mak from SLP International believes that the average indicative pricing for TRE Residences is steep compared to prices of neighbouring projects. The condominium has a 99-year leasehold and its unit sizes start from 420 square feet to 947 square feet.

(Source: Business Times)

HDB resale prices up by 0.1% month-over-month

In October, HDB resale prices rose by 0.1 per cent from the previous month according to SRX. Prices of executive flats increased by 0.8 per cent while prices of four room and five room HDB flats fell by 0.4 per cent and 0.1 per cent respectively. Nonetheless, market experts believe that the market will soften further given that the government’s cooling measures have not been lifted. Yet, resale volumes have improved in October from the previous month by 5.7 percent as 1,553 HDB flats changed hands in October this year. According to SRX, this was the highest monthly resale volume for 2014. Ong Kah Seng from R’ST Research believes that high resale volumes and the slight increase in prices show that buyers may be rushing to close deals before the year ends.

(Source: Business Times)

The Terrace is launched

The Terrace which is located near Punggol Waterway, has been launched at an average indicative price that is between $770 and $840 psf. More specific quantum prices will be provided by the developer, Kheng Leong, when closer to the start of its e-application on November 21. The executive condominium comprises of a total of 747 units. Unit sizes range from 1,001 square feet for a three bedroom unit to 1,711 square feet for a penthouse unit. Ong Kah Seng from R’ST Research expects 40 percent of The Terrace to be sold within the first two months as it is priced reasonably. Not only so, it is conveniently located near amenities such as the upcoming Waterway Point shopping mall.

(Source: Business Times)

Holland Park GCB to be sold for $30m

A brand new Good Class Bungalow at Holland Park will be sold for $30 million, or $1,989 psf. The property has a built up area of 11,368 square feet and is freehold. The bungalow has a pool, lift, five bedrooms and is two storeys high. It has received its Temporary Occupation Permit a few months ago. Market experts believe that the asking price of the bungalow is slightly high, given current market conditions. Not only so, the property is not situated in the top-tier Good Class Bungalow area.

(Source: Business Times)

23 GCBs sold this year

According to the Business Times, 23 Good Class Bungalows (GCB) were sold this year for a total of $526 million. This was only slightly lower than last year’s tally of 29 transactions. Ku Swee Yong from Century 21 said that there is a steady demand for GCBs because high-net-worth Singaporeans prefer the low density environment of GCB areas. Thus, the sale of GCBs is less affected as compared to the sale of properties at Sentosa Cove. This year, only 2 bungalows located at the Sentosa Cove waterfront have been transacted for a total of $27.5 million. This is significantly lower than the $367 million that was amassed from the sale of 18 bungalows at Sentosa Cove last year.

(Source: Business Times)

Site at Serangoon to be launched as first GLS under new policy

From November 1, new rules to improve productivity in the construction sector will be rolled out. Under the new ruling, government land sale (GLS) sites have to higher building design and constructability standards. Also, developers have to meet certain levels of prefabrication. A site at upper Serangoon Road will be the first GLS site that will be affected by the new ruling. The site has a 99-year leasehold and has a plot size of about 10,000 square meters. It can yield about 340 homes. Market experts believe that the site will attract about 10 bidders. Besides the Serangoon site, other sites at Yishun and Jurong have also been selected for prefabricated pre-finished volumetric construction (PPVC), which involves assembling whole rooms that are manufactured off-site. The Building and Construction Authority (BCA) has said that it is still identifying more GLS sites for PPVC. Nicholas Mak from SLP International believes that the increase in construction costs may push GLS tender prices down or be passed on to property buyers.

(Source: Business Times)

Commercial

Oxley Hotel on auction

Oxley Hotel, which is located at Lorong 6 Geylang, is a freehold site that has eight storeys. It has a plot area of 3,725 square feet and a total gross floor area of 12,238 square feet. Its indicative price is $25 million and has been put up for sale on auction. The hotel has 56 guest rooms and has a gross plot ratio of 2.8. It has been zoned for residential or institution use in 2008. The auction will begin on November 21. Grace Ng from Colliers International believes that the auction will attract many bidders as it is unlikely for new hotel sites to be approved in the vicinity.

(Source: Business Times)

Reitas will engage regulators

The Reit Association of Singapore (Reitas) has been formed by several real estate investment trusts to promote the growth of Singapore’s Reit sector. The association will be helmed by nine committee members that are from major Reits and sponsors such as Mapletree, CapitaLand and Keppel. Reitas aims to engage regulators and to educate investors. According to market experts, Singapore’s Reit market is the third largest in Asia pacific, and as such, it is important to manage the sector. Reitas has been engaging MAS and IRAS on issues such as tax exemptions for foreign-sourced income as well as stamp duty remission for properties sold to S-Reits. According to the Business Times, Reitas will officially launch on November 17.

(Source: Business Times)

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