Singapore Property News This Week #230

Residential

Condo resale price increase by 2.8% in prime areas in September

In the core central region, non-landed private home resale prices have increased by 2.8% in September from the previous month. In the rest of central region and the outside central region, resale prices fell by 1.4% and 0.9% respectively over the same period of time. Not only so, the SRX’s overall resale price index for non-landed private homes also fell by 0.1% month-on-month in September. Eugene Lim from ERA Realty said that the increase in resale prices in the core central region could have been due to the lack of new launches within that region. Buyers may have thus entered the resale market to seek properties.

(Source: Business Times)

Condo rents fall by 0.3% in September

According to SRX Property, rents of private non-landed residential units have fallen by 0.3% month-on-month in September. Rental volumes have also fallen by 4.1%. SRX Property estimates that there were 3,758 rental transactions made in September, down from the 3,919 made in August. Year-on-year, there is a 17.7% increase in rental transactions in September. According to Eugene Lim from ERA Realty, this could be due to existing tenants taking advantage of lower rents by signing shorter leases and moving around.

(Source: Business Times)

341 private homes sold by developers in September

Data from the Urban Redevelopment Authority showed that only 341 private homes were sold by developers in September this year. This makes it the lowest recorded figure since the start of the year. Excluding executive condominiums, the number of private homes sold by developers is 34% lower than in August. The slump in sales may be attributed to a reduction in developer launches, the Hungry Ghost month and other festivities during H2 of the year. Apart from that, market experts believe that the erratic stock market could have also dampened buying sentiments. Ong Teck Hui from JLL said that the softening of the economy and difficult business environment were likely factors that contributed to the slow sales.

(Source: Business Times)

Normanton Park up for collective sale

Located near Kent Ridge Park, the condominium, Normanton Park will be put up for collective sale after the requisite of 80% majority consent was secured from owners. Yet, due to the expansiveness of the site, developers may not be as keen to take up this site, said market experts. This is because it may be difficult to sell off all units, in light of the additional buyers’ stamp duty which will be applied to unsold units five years after the land purchase date. Nicholas Mak from SLP International believes that the reserve price of $840 million may be high for developers. The site’s tender will close on Jan 19, added the Business Times.

(Source: Business Times)

More BTO flats to be released next year

To meet higher demand arising from recent policy changes, more HDB flats may be released next year. National Development Minister Lawrence Wong said that HDB will look into supplying more flats. Nonetheless, Wong said that the government will continue to taper the housing programme and make temporary adjustments to accommodate higher demand. He added that the government will take into consideration the responses of next month’s BTO sale exercise, when planning the supply of flats for the coming year. Not only so, he added that the cooling measures will be retained as price adjustments observed so far have been moderate.

(Source: Business Times)

Commercial

Rental growth in business parks and factories eases in Q3

Data from DTZ showed that the average monthly gross rents of first-storey and upper-storey conventional factory space have fallen by 2.3% and 2.9% respectively in Q3 from the previous quarter. Rental growth in business parks in Q3 remained constant at $5.10 psf quarter-on-quarter in Q3. For the past 13 quarters, the monthly gross rents for business parks and high-tech sectors have increased by an average of 0.8% quarter-on-quarter and 0.7% quarter-on-quarter. Cheng Siow Ying from DTZ said that leasing activities are slower as occupiers are opting to renew their leases or seek expansion space within the existing building. In addition, experts believe that overall, rents are unlikely to increase in 2016.

(Source: Business Times)

Prime-office rents may fall by 3% in next 3 years

According to market experts, prime-office rents may fall by 3% over the next 3 years due to a 7.6 million sq ft increase in supply of gross floor area. The new supply of office spaces planned especially in the central business district, is likely to limit rental growth, said Alice Tan from Knight Frank. Premium-grade offices with large floor plates of over 10,000 sq ft are most likely to suffer the largest cut in terms of rental growth. According to Tan, an estimated 10% drop in rents for large premium-grade office space next year is expected.

(Source: Business Times)

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