Residential

Non-landed private home prices stabilised after three months of declines

According to flash estimates by the National University of Singapore, prices of completed non-landed private homes have stabilised after three consecutive months of decline. The overall Singapore Residential Price Index (SRPI) fell 0.3% month-on-month in April, 0.6% month-on-month in May and 0.1% month-on-month in June. Nicholas Mak from SLP International said that prices may continue to fall in the coming months as the supply of completed private homes is expected to increase. Mak predicts that the full-year decline in the overall SRPI would be around 3 to 4%. In July, the SRPI sub-index for central region increased 0.2% month-on-month, while the SRPI for non-central region fell by 0.2% in the same period. Wong Xian Yang from OrangeTee believes that the price drop in the non-central region could be due to landlords’ lowered rental expectation and increased vacancy rates.

(Source: Business Times)

HDB and EC income ceiling will be increased

Income ceilings for both HDB flats and executive condominiums (ECs) will be raised from $10,000 to $12,000 and $12,000 to $14,000 respectively. According to Prime Minister Lee Hsien Loong, this increase in income ceiling will allow more Singaporeans to buy new HDB flats and ECs as incomes have increased since 2011 when the ceiling was last raised. Not only so, couples are marrying later and hence are more likely to have crossed the income ceiling by the time they settle down. Besides that, the Special CPF Housing Grant (SHG) will be extended to cover households with income ceilings that are not above $8,500. The current maximum SHG amount has also been doubled to $40,000. To help second-timer rental households own a two-room flat, the Fresh Start Housing Scheme was also implemented. These flats will have shorter leases and stricter resale conditions thus making them more affordable. According to Desmond Sim from CBRE, higher income ceilings and grants will help increase demand.

(Source: Business Times)

247 units sold at Sol Acres

247 units out of the 1,327 units at Sol Acres have been sold—making it the best-selling executive condominium project thus far this year. Located at Choa Chu Kang Grove, units at the executive condominium have been released for sale at an average price of $780 psf. The project which includes three clubhouses, three swimming pools and two tennis courts is located near two LRT stations. One-bedders are priced from $356,000, two bedders cost about $452,000, three-bedders cost at least $667,000, and four-bedders cost about $866,000 while five-bedders are priced from $1.028 million at Sol Acres.

(Source: Business Times)

Commercial

Weak demand for industrial sites in Tampines and Ubi

Two sites that have been zoned for Business 2 development at Tampines Industrial Drive (Plot 6) and Ubi Avenue 1 have not been well-received by developers. Both sites which have short tenures have received low bidding interest. The Tampines site which was 0.47 ha large and a 20-year tenure received a top bid of $4.94 million or $69.21 psf ppr. The other site which was 0.6 ha large and has a 30-year tenure received the highest bid of $19.86 million or $120.91 psf ppr. Nicholas Mak from SLP International said that due to the size of the site, the buyer may develop it into facilities for its own use. Market experts believe that since the implementation of cooling measures such as the seller’s stamp duty and the total debt servicing ratio framework, developers’ interest in industrial sites may have fallen.

(Source: Business Times)

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