Residential

March HDB resale prices fall 0.8% month-on-month

According to flash estimates by SRX, HDB resale prices fell by 0.8 percent in March from the previous month and 6.6 percent from last year. Prices fell for three-room, four-room, and five-room HDB flats according to the flash estimates. SRX sub-indices for HDB resale prices show that there was a 0.9 percent and a 0.8 percent fall in the mature and non-mature estates respectively. Nonetheless, resale transaction volumes have increased. Data compiled by SRX showed that there was a 17.5 percent increase in the number of HDB flats sold from 1,148 units in February to 1,349 units in March. However, this is still 5 percent less than the 1,420 units that changed hands in March last year.

(Source: Business Times)

HDB resale transactions expected to improve from March

According to Eugene Lim from ERA Realty, the volume of HDB resale transactions are expected to increase from March. He added that if resale volumes improve, the total number of units that changed hands may increase from last year’s all-time low of 17,318 units. He expects that there would be about 18,000 to 20,000 units sold by the end of the year in the resale market due to a reduction in Built-To-Order flats. Based on data by SRX, prices fell by 0.9 percent, 1.1 percent and 0.5 percent in the three-room, four-room and five-room flats respectively. Since the lowering of the lending cap of the mortgage servicing ratio, Ong Kah Seng from R’ST Research said that prices of smaller flats have remained flat. Ong added that buyers’ interest will increase around mid-2015 as he expects resale prices to fall further. Wong Xian Yang from OrangeTee said that when the HDB income ceiling is raised, more first-time buyers who were previously ineligible for property grants may choose a resale flat over a private property.

(Source: Business Times)

Winning GLS bids fell between 3 to 24 percent

This year, winning bids for residential sites sold under the Government Land Sales programme have fallen by 3 to 24 percent in price relative to comparable sites sold in the last two years. This excludes the tender for a residential site at Sturdee Road. Market experts believe that land prices will continue to fall this year. Ong Teck Hui from JLL said that developers are placing more conservative bids as they are more cautious on the market. Christine Li from Cushman & Wakefield believes that land prices are expected to fall further as the cooling measures had not been lifted and interest rates are expected to rise. The rise in construction cost due to a shortage of labour has also pushed the price of land bids down, said Cheang Kok Kheong from Frasers Centrepoint Limited.

(Source: Business Times)

GCB at Ridout Rd attracts 10 bids and another at Gallop Rd is sold for $25.8m

A Good Class Bungalow (GCB) site at Ridout Road has closed for tender. The 73,277 sq ft freehold bungalow has attracted 10 bids. It is believed that the highest bid is around $85 million. According to the Business Times, the land area may be further subdivided into four smaller GCB plots due to its large size. Also, another GCB site at Gallop Road has been sold for $25.8 million or $1,712 psf. The 15,070 sq ft of land area consists of a two-storey bungalow with five bedrooms and a swimming pool. According to information from URA, it was built in 1984.

(Source: Business Times)

More than half of the 920 units at North Park Residences have been reserved

Since its launch, more than half of the 920 units at North Park Residences have been reserved. According to the BusinessTtimes, almost all of the units at North Park Residences would be up for sale by the weekend. Nicholas Mak from SLP International said that its prime location and close proximity to facilities such as shopping centres and Yishun MRT Station would attract buyers. At its soft launch, 313 units out of the 413 released units were sold. Singaporeans accounted for 88 percent of buyers and there were equal distribution of buyers across all room types, from one-bedders to five-bedders. A one-bedroom plus study unit is priced from $758,000 while a two-bedder costs about $840,000. A three-bedder costs $1.049 million, a four-bedder starts from $1.496 million while a five-bedder costs about $1.79 million.

Commercial

Colliers: owners of older buildings need to lower rents to remain attractive

According to a report by Colliers International, occupiers are moving into newer office buildings. As such, demand for office space in existing developments in the CBD area may be affected. On average, the occupancy rates of premium grade office space in Raffles Place has increased by 3.6 percentage points quarter-on-quarter to 91.8 percent. The average monthly gross rents for premium grade offices in that area has remained unchanged at $11.93 psf in Q1 2015 from the previous quarter. On the other hand, rents of Grade A offices in that market have increased by 1.6 percent to $10.41, while rents of Grade B offices have increased by 1 percent to $8.74. Rents of Grade A offices are expected to increase further, according to a report by Cushman and Wakefield. Owners of older buildings should offer better incentives or more competitive rents in order to retain its tenants, said a report by Colliers.

(Source: Business Times)

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