Singapore Property News This Week #208

Residential

April’s resale prices of condos fall by 0.7 percent month-on-month

According to flash estimates by SRX Property, resale prices of condominium units have fallen by 0.7 percent in April from the previous month. Nonetheless, about 440 private non-landed homes changed hands in April. This was 2.7 percent lower than in March, where 452 units changed hands. Eugene Lim from ERA Realty said that the fall in resale volumes was due to an increase in new launches. Particularly in April, there were two new launches in Yishun and Bartley. Lim believes that as prices stabilise, demand for resale units will increase. According to the Business Times, in April, resale prices of condominium units in the core central region and outside central region fell by 0.1 percent and 1.5 percent respectively. However, resale prices of condominium units in the rest of central region increased by 0.4 percent during the same period. Wong Xian Yang from OrangeTee said that despite the price falls, transaction volumes have not picked up because buyers hesitate to return to the resale market. Not only so, given the stable economy, sellers have been able to hold on to their properties.

(Source: Business Times)

HDB rents in April falls by 0.7 percent from March

In April, HDB rents have fallen by 0.7 percent month-on-month according to flash estimates by SRX. Also, during the same period, HDB rental volumes have fallen by 13.2 percent to 1,705 units in April from 1,964 units in March. Four-room, five-room and executive flats saw a 0.9 percent, 1.3 percent and 0.4 percent dip in rents respectively. However, three-room flats saw an increase in rents by 0.4 percent. On the other hand, private residential rents have remained flat in April compared to March. Rental volumes for private homes have also fallen by 11.9 percent month-on-month in April. Private residential rents in the prime city area have increased by 0.7 percent, while rents in the city fringe and the suburbs have fallen by 0.1 percent and 0.7 percent respectively. According to Ong Kah Seng from R’ST Research, the low rental volumes show that tenants are still finding rental prices high. Lastly, Ong predicts that condo rents will fall by up to 7 percent this year.

(Source: Business Times)

EC in Jurong launched at indicative price of $800 psf

Westwood Residences, an executive condo in Jurong, has been launched. The project, which consists of 480 units, has been priced at $800 psf according to the Business Times. The project boasts of its bike-themed features such as a two-tier bike garage for 500 bicycles. Not only so, the development will contain a bike maintenance area that will consist of repair tools and bike stands. Also, the residential estate will feature a “BMX adventure” park that is child-friendly. There will also be an indoor gym, a pool and other facilities. According to the Business Times, the project has a 99-year lease. It comprises of 28 two-bedders, 62 three-bedders, 98 four-bedders and 28 five-bedders. The project will be the second executive condominium in 18 years to be developed in Jurong.

(Source: Business Times)

March’s luxury home prices fall by 12.6%

A study by Knight Frank shows that prices of luxury homes in Singapore have taken the hardest hit among the 35 cities in the study. According to the Prime Global Cities Index, luxury home prices in Singapore have fallen by 12.6 percent year-on-year by the end of March this year. On the other hand, Geneva and Zurich came in next with a 5 percent fall in prices of luxury home. In general, the index increased by 3.9 percent year-on-year to March 2015. San Francisco saw the largest increase in luxury home prices as prices surged by 14.3 percent year-on-year till March. Alice Tan from Knight Frank said that the cooling measures that were implemented by the government had curbed demands in the luxury home market in Singapore.

(Source: Business Times)

April’s increase in developer sales highest in 11 months

In April, the increase in developer sales for private homes, excluding executive condominiums has hit a new high in 11 months as 1,124 units were sold in April. However, due to a lack of major launches in the coming months, market experts believe that this trend will not be sustained in the coming month. According to market experts, the 83.4 percent increase in developer sales in April from the 613 units sold in March, was due to the launch of two major projects in Yishun and Bartley. Ong Teck Hui from JLL said that it is still too early to say if the market has recovered. Chia Siew Chuin from Colliers added that buyers have flocked to the two major launches due to the prime location of the projects and their reasonable pricing. Eugene Lim from ERA Realty said that cooling measures such as the total debt servicing ratio framework and the additional buyer’s stamp duty have curbed buyers’ interest. As such, he believes that buyers are still price sensitive. As the number of launches slows down in the coming months, Chia believes that sales volumes in May will be around 400 to 700 units.

(Source: Business Times)

Commercial

High-speed rail terminus to replace Jurong Country Club

The Jurong Country Club will be torn down and developed into a terminal for a high-speed rail link to Malaysia. According to Tan Boon Khai, the chief executive of Singapore Land Authority, the Jurong Country Club will not be offered a replacement site following its acquisition, which was made under the Land Acquisition Act. The 67-ha site will be handed over in November 2016. According to the Business Times, part of the site will be redeveloped into a mixed-use precinct comprising offices, retail outlets, hotels and homes. Chew Men Leong from the Land Transport Authority said that most of the infrastructure for the high-speed rail will be built underground. Slated to be completed in 2025, the Jurong Region Line and the Cross Island Line which is to be completed in 2030, will be located near the high-speed rail terminal, said Chew.

(Source: Business Times)