Residential

Jan’s price index for shoebox apartments falls by 0.6% month-on-month

In January this year, the index for private shoebox apartments that are less than 506 sq ft have fallen by 0.6 percent month-on-month, according to the Singapore Residential Price Index. This fall is smaller than the 1.9 percent drop in the Central region. According to the Business Times, the overall price index in January has fallen by 1.6 percent. Ong Kah Seng from R’ST Research believes that the prices of completed non-landed private homes will fall by up to 7 percent this year. This is because of a surge in supply of residential homes. Not only so, Ong believes that the market for shoebox apartments will be affected by the weak leasing market. Ong said that owners who are cash tight may choose to sell off their apartments at a lower price if they are unable to find tenants to lease the apartment.

(Source: Business Times)

Redas: price of luxury homes last year has fallen by 20% since 2013

According to the Real Estate Developers’ Association of Singapore (Redas), the price of luxury homes last year was 20 percent lower than in 2013. The average price of new luxury apartments above $5 million in the core central region has fallen by 17 percent from $2,950 psf in 2013 to $2,450 psf in 2014, said CBRE. Also, the resale market for luxury homes shrank by 6.2 percent to an average of $2,650 psf. Yet, Alice Tan from Knight Frank predicts that there will be a slower fall in luxury home prices this year. Lee Nai Jia from DTZ added that when interest rates increases, there may be more mortgagee sales. The average price of good class bungalows that are about 15,000 sq ft is around $22 million, according to Desmond Sim from CBRE.

(Source: Business Times)

52% more properties up for auction this year

In the first two months of this year, 114 properties have been put up for auction. This is 52 percent more than the number of properties that were up for auction during the same period of time last year. According to the Business Times, this increase was due to an increase in mortgagee sales. Data from JLL showed that a total of $30.78 million was reaped from eight auction transactions in January and February this year. Out of the eight transactions, seven were properties from mortgagee sales. Mok Sze Sze from JLL believes that the number of mortgagee sales will increase by at least 20 percent this year as credit is expected to be tightened. Not only so, the proportion of residential properties at such auctions has also increased in the last 1.5 years. This was due to a reduction in investor interest in commercial and industrial properties, said Grace Ng from Colliers International.

(Source: Business Times)

Feb’s HDB resale prices fall by 0.6% from January

Data from SRX showed that HDB resale prices have dropped by 0.6 percent in February from the previous month. Not only so, it is 5.7 percent lower than in February last year. Resale volumes in February also fell by 8.5 percent to 1,148 flats from the 1,255 that were transacted in the previous month. Nonetheless, the year-on-year resale volume has increased by 20.7 percent this February. Resale prices fell 0.6 percent and 0.7 percent in mature and non-mature estates. Market experts believe that HDB resale prices will continue to fall by a total of 5 to 8 percent at the end of 2015.

(Source: Business Times)

Apartments at Marina Bay Residences sold for more than $3,000 psf

Three four-bedroom apartments at Marina Bay Residences have been sold for at least $3,000 psf. In particular, one of the units on the 38th floor sold for $3,450 psf while the unit directly above it sold for $3,150 psf. Market experts believe that the high prices are not indicative of the market and they believe that this is likely a one-off incident. Market experts also added that the large size and the Bayfront view may have justified the higher price. The Marina Bay Residences has a balance lease of 89 years. It has 55 floors, 418 apartments and 10 penthouses. Previously, in 2006, developers had sold the apartments at the building at about $1,850 psf, and penthouses were sold at about $3,000 psf.

(Source: Business Times)

Commercial

SG’s office rents increasing but still among lowest in Asia-Pacific

Despite the rise in office rents in the central business district (CBD), Singapore is still one of the countries that offer the most competitive office rents in Asia-Pacific. Last year, the overall occupancy cost for offices in the CBD area had increased by 9.8 percent to US$93 psf, per year from 2013. Yet, data from Cushman & Wakefield showed that the cost of renting an office space is still 49 percent lower than in Hong Kong, where the total occupancy cost is about US$184 psf per year in 2014. Cushman predicts that rents in Singapore may stabilise in the coming year as the supply of office space increases. Nonetheless, office rents may still increase by another 5 to 6 percent this year, said Cushman.

(Source: Business Times)

Industrial building at Bendemeer sold for $88m

A seven-storey industrial building neat Bendemeer MRT Station has been sold for $88 million or $500 psf. The site is about 79,818 sqf and has a net lettable land of 175,000 sqf. It has a 2.5 plot ratio and has a balance lease of 50 years. Since the building is nearly fully let, the buyer will be able to enjoy an immediate rental income stream. Beyond that, market observers believe that its prime location and its ample parking facilities are have increased the appeal of the building. The building has been zoned for Business 1 use. This means that it can be used for clean and light industrial and also warehouse uses.

(Source: Business Times)

Two freehold retail properties at Paya Lebar and Aljunied launched for sale

A retail space at Paya Lebar MRT station and another at Aljunied has been launched for sale by expression of interest. The former is a basement space at Grandlink Square which is a commercial-and-residential development near Paya Lebar Central. The space, which has a floor area of 26,533 sq ft, is expected to be sold for $1,508 psf or $40 million. The other retail space at Aljunied has a total area of 8,805 sq ft. It comprises of eight adjoining strata shops and is expected to be completed by mid-2016. The space has been priced at $3,407 psf or $30 million.

(Source: Business Times)

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