Residential

HDB resale prices fell by 0.8% 

According to the Singapore Real Estate Exchange (SRX), resale prices of HDB flats have fallen by another 0.8 percent in November, and have fallen by 6.3 percent year-on-year from November 2013 to November this year. This is the lowest in the last 40 months. Market experts believe that prices will continue to slip due to the completion of new BTO flats and executive condominiums. In November, 1,350 units have changed hands. This is a 13.1 percent month-on-month fall from the October. Mohammed Ismail from PropNex said that demand for HDB flats have been weak hence threatening resale prices. Eugene Lim from ERA Realty added that the fall in prices is due to the implementation of cooling measures such as the Mortgage Servicing Ratio.

(Source: Business Times)

Supply for private housing land expected to shrink

Due to weak market sentiments, market experts believe that the government will cut the land supply of private housing on the confirmed list for the first half of 2015. Alan Cheong from Savills Singapore said that the reduction in land sales for private housing will be in line with the shrinking demand in the residential market. In H2 this year, 3,915 private homes were released in comparison to the 4,630 units released in H1 this year. Market experts predict that the H1 2015 confirmed list will consist of 1,900 units to 3,700 private home units. Nonetheless, market experts believe that at least one office site will be put up for tender on the Government Land Sales Programme for the first half of next year. Experts predict that that site will likely be located in the suburbs so as to increase office space supply. Ong Choon Fah from DTZ predicts that more mixed-use development sites will be allocated near MRT stations.

(Source: Business Times)

BTO flats to be launched in Bidadari next year

According to Minister for National Development Khaw Boon Wan, 2,200 build-to-order flats will be released in Bidadari for the first time next year. Under the Married Child Priority Scheme, parents or children living in Toa Payoh will be given priority for the build-to-order flats in Bidadari. Not only so, the Ministry of National Development will be launching another 360 three-generation flats, including 150 units in Tampines to support families who want to live with their parents. Also, another 1,200 new flats will be released in Tampines North to help those whose parents or married children are already living in Tampines.

(Source: Business Times)

GuocoLand will launch a 1,024-unit condo in Aljunied next year

A 1,024-unit condominium project will be launched at Aljunied Road early next year. The 99-year leasehold site, Sims Urban Oasis, will have facilities such as a childcare centre. The childcare centre, which is about 300 square metres large, is able to accommodate about 30 to 50 children. Cheng Hsing Yao from GuocoLand said that the condominium project is targeted at a diverse group of owner-occupiers, ranging from young couples to multi-generation families.

(Source: Business Times)

HDB: Resale Price Index will be revised

The HDB Resale Price Index will be reviewed according to the Minister for National Development Khaw Boon Wan to accurately reflect trends in the resale market. According to Minister Khaw, there is a need to revise the computation of the Resale Price Index to include the variety of flat models. Not only so, the current resale price index does not account for transactions made in newer towns such as Punggol and Sengkang. Also, Minister Khaw believes that the Resale Price Index needs to be adjusted in order to reflect the age variance among flat buyers. Eugene Lim from ERA Realty believes that the changes in the Resale Price Index will increase the index’s sensitivity to price movements.

(Source: Business Times)

Commercial

Holland Road site will not have strata-titled shops and offices

A mixed-development site at Holland Road will be launched on the Government Land Sales reserve list. Strata-titled shops and office units will not be allowed at the site. The site, which has a total of 2.3 hectares will be sectioned into two zones. Zone 1 is reserved for residential use and can be developed into a maximum of 570 units. On the other hand, Zone 2 is slated for commercial and service apartment use. Zone 2 can also be developed into retail and office units. The maximum gross floor area for Zone 2 is 21,000 square meters. However, only 13,500 square meters can be developed for retail use, said a spokesperson from URA. This is to maintain the quality of the site and its public spaces. Ong Choon Fah from DTZ predicts that the site will attract many developers due to its uniqueness and prime location. Desmond Sim from CBRE added that he expects that the site will generate about 8 to 12 bids. He also predicts that the winning bid would be at least $1,200 psf ppr.

(Source: Business Times)

Attractiveness of Singapore’s property market falls to 9th in Asia

According to a report by PwC and Urban Land Institute, the attractiveness of the Singaporean property market has fallen from the 7th position to the 9th in Asia. This comes as no surprise as the government have been implementing cooling measures to slow the increase in property prices. Nonetheless, Yeow Chee Keong from PwC believes that the Singaporean market is still going strong. He expects an increase in demand for commercial space next year. The report added that other countries such as Hong Kong and China have also experienced an outflow of property investments, into other markets such as Australia.

(Source: Business Times)

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