Singapore Property News This Week #191

Residential

230 private homes sold in December 2014

In December 2014, developers sold 230 private homes. This was significantly lower than the 423 units that were sold in November last year. According to the Business Times, the lack of launches and marketing effort could have affected sales of private homes in December. Not only so, weak market sentiments could have affected demand of private homes, said Alice Tan from Knight Frank. Nonetheless, the sale of new homes in December last year was comparable to the 259 units sold last year, year-on-year, according to the Urban Redevelopment Authority. Market experts predict that there will be fewer units sold this year, and theyexpect developer sales to reach 7,000 to 10,000 units this year. Prices of private homes are expected to fall by 5 to 8 percent, compared to 2014. Nonetheless, Ong Teck Hui from JLL is optimistic about the property market in 2015 because he believes that as the government ease the cooling measures, buyers will attempt to time their purchases.

(Source: Business Times)

SRX: Dec’s non-landed private residential rent falls by 0.8%

From November to December 2014, rents of non-landed private residential properties have fallen by 0.8 percent. According to Singapore Real Estate Exchange, this is the 10th month that non-landed private residential rents have fallen. Ong Kah Seng from R’ST Research believes that this falling trend will continue into 2015. He expects rents to fall up to 8 percent by the end of 2015. As foreign labour supply shrinks, demand for private residential properties will likely weaken further, said Ong. Residential rents in the core central region have fallen by 1.2 percent in December from November in the last year. On the other hand, rents in the rest of central region and outside central region had experienced a smaller fall of 0.6 percent and 0.3 percent respectively.

(Source: Business Times)

Dec’s private condos resale prices increase by 0.1%

According to SRX Property, there was a 0.1 percent rise in resale prices of private condos in December. However, market experts believe that this was a blip. Resale prices in December had been driven by transactions in suburban areas, according to the Business Times. Resale prices from units in the outside central region had increased by 0.5 percent in December. Nonetheless, transactions in the core central region and rest of central region had fallen by 1.1 percent and 1.2 percent respectively. The SRX non-landed private residential price index has fallen by 4.2 percent in December, year-on-year. Prices have fallen by 6.1 percent from January to December 2014. Christine Li from OrangeTee said that the current total debt servicing ratio (TDSR) favours the mass market segment, as buyers from that segment have a lower quantum. Li said that the year-on-year increase in sales volume could mean that buyers and sellers are adjusting to the TDSR.

(Source: Business Times)

Property prices expected to fall by 3% per year in 2015 and 2016

Residential property prices are expected to fall in 2015 and 2016. According to Fitch Ratings, private and public home prices are likely to slip by 3 percent per year. On the other hand, mortgage rates are expected to increase from 1.5 percent to 2 percent. Despite the increase in mortgage costs, debt burdens are still considered low due to a strong labour market. Singapore’s macro-prudential policies are also likely to cool demand in the property market.

(Source: Business Times)

URA: Geylang will be rezoned for commercial and institutional use only

Lorong 4 to Lorong 22 at Geylang will undergo a rezoning exercise, according to the Urban Redevelopment Authority (URA). The rezoning exercise will stretch across 14 ha of land. Under this exercise, residential projects will no longer be approved for development within the 14 ha stretch. Instead, the rezoned section may only be developed for commercial or institutional use. Nonetheless, the maximum plot ratio remains at 2.8. Also, existing residential projects will be allowed to remain as they are. The rezoning is expected to boost land values in the locale and increase collective sales, said market experts. URA believes that the rezoning exercise will decrease friction on the ground between residents and other users of the area. Mary Sai from Knight Frank believes that in the short run, residential value in Geylang will not improve due to the rezoning. However, when the commercial developments in the area matures, residential property value may increase.

(Source: Business Times)

Units at Marine Blue sold for $1,800- $2,000 psf

Marine Blue, which is located near the Grand Mercure Roxy Hotel at Marine Parade Road, has been put up for sale. Of the 50 units released, 31 have been sold for an average price that is between $1,800 and $2,000 psf. These include one-bedroom-plus-study, two-bedroom units and a penthouse. According to the Business Times, the average selling price is about 10 percent lower than the listed price. The 120-unit condominium is expected to attract young professionals and families due to its proximity to amenities and schools.

(Source: Business Times)

Commercial

JTC: industrial space will be built to meet demand

To ensure that supply will meet demand, JTC Corporation will be building a new industrial space. The site will target niche semiconductor firms, and will consist of facilities to cater to corporations from the aerospace, biomedical and chemical industries. JTC will work with trade associations, industrialists and partner agencies to design a ready-built facility to cater to the specific needs of such companies. The industrial building is expected to be four stories high. It would comprise of common utilities such as bulk gases and chilled water to help ease upfront capital costs for companies, according to JTC. The site will be located at Tampines High Tech Park. It would have a total gross floor area of 22,700 sqm and a plot ratio of 1.7. It is expected to be ready for use in 2017.

(Source: Business Times)

3 office floors at Anson Rd sold for $30 million

3 floors on Hub Synergy Point, a 28-storey freehold office block on Anson Road has been sold for $30 million. The 26th level was sold for $9.97 million or $2,400 psf while both levels 27 and 28 were sold for $20 million or $1,512 psf. The 26th level had a strata area of 4,155 sq ft and the levels 27 and 28 had a total strata area of 13,299 sq ft. With the sale of these three levels, Donald Han said that the building is now under a single ownership. This would allow the owner to reposition or redevelop the building.

(Source: Business Times)

Fewer bids made for site at Yishun

A mixed-use site at Yishun attracted only five bids. This was lower than expected. Previously, market experts had predicted that there would be between six and eighteen bidders. Market experts also expected the highest bid to be about $650 psf ppr. However, the site was won by Northern Resi and Northern Retail for $185.09 million or $629.24 psf ppr. The site has a gross floor area of 27,327 sqm, and uses prefabricated prefinished volumetric construction (PPVC) technology. Due to the mandatory use of PPVC, most of the bidders were developers with a construction arm, said Desmond Sim from CBRE.

(Source: Business Times)