Residential

Nov private home sales up by 39% month-on-month 

In November, developers sold a total of 759 private residential units, up from the 548 sold in the previous month. This translates to a 39% month-on-month increase in sales and a 79% year-on-year increase. Chua Yang Liang from JLL said that the number of units sold in November is the third largest this year. Chua said that the rise in demand may be temporary as buying typically increases in November ahead of the festivities in December. According to Chua, the EC market experienced a 32% fall in sales in November, as the number of units sold by developers fell from 275 in October to 186 units in November. Market experts predict that by the end of this year, 7,500 private residential units would have been sold. Nicholas Mak from SLP International predicts that the annual sales volume could fall to between 6,500 and 7,000 units in the coming year.

(Source: Business Times)

Private non-landed home prices fall by 3.4% since Q1

According to the Business Times, prices of private non-landed homes have fallen by 3.4% over the first three-quarters of the year. This drop in prices was led by the sale of homes in the suburban region. Alice Tan from Knight Frank believes that there could be a return of interest from both local and foreign buyers. Yet, she predicts that vacancy rates could increase up to 10% or higher especially for non-landed homes due to a surge in home completions next year to 22,300 private home units. Alan Cheong from Savills estimates that about 7,500 private non-landed homes, excluding executive condos will sold in the primary market.

(Source: Business Times)

Fresh Start Housing schemes to help public rental households

To help public rental households own their own homes again, second-timers may receive another HDB concessionary loan under a new scheme that could also give them the option of buying two-room flexi flats on shorter leases. The Fresh Start Housing Scheme may consist of a grant that aims to reduce the amount that buyers need to pay for their new flat. The Ministry of National Development is currently gathering views on the scheme.

(Source: Business Times)

Govt tapers off residential and commercial land supply in H1 2016 GLS

According to The Business Times, the government will be tapering off residential and commercial land supply in H1 2016 so as to contain the problems of an oversupply. Market experts predict that land prices will remain high as limited sites have been released under the Confirmed List for the H1 2016 Government Land Sales (GLS) programme. According to The Business Times, 4 sites have been released on the Confirmed List while another 12 are on the Reserve List. 1,560 private residential units and 11,000 sq m of gross floor area of commercial space are expected to be developed from the Confirmed List.

(Source: Business Times)

Commercial

1.1 ha site at Central Boulevard released under Reserve List

A 1.1 ha white site along Central Boulevard has been released under the Reserve List by the Urban Redevelopment Authority (URA). The 99-year leasehold site can be built to 50 storeys with a maximum gross floor area of 141,309 sq m, of which 70.77% must be put to office use. Up to 5,000 sq m of the gross floor area may be set aside for retail use. Moray Armstrong from CBRE said that the site is the most prime office site that has come on the market since 2007. Ong Kah Seng from R’ST Research believes the site is expected to draw 5 to 8 bids and the top bid is expected to be between $1,100 to $1,250 psf ppr.

(Source: Business Times)

Number of auction properties highest in 6 years

The number of auction properties rose to 796 this year—the highest in 6 years according to data by Colliers. Despite that, only 33 units were sold. This translates to a success rate of 4.1%, which is down from an average of 6.2% over the last 5 years. The data cited by Colliers excludes deals closed in private treaties. According to Grace Ng from Colliers, to seal better deals, most buyers prefer to negotiate privately with sellers. Ng added that a price gap persists between what buyers are willing to pay and what owners are willing to accept. Market experts predict that the number of auction properties will continue to rise as owners continue to struggle to secure tenants.

(Source: Business Times)

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