Residential

Private home price flash estimates fall by 0.5% in Q4 2015

According to flash estimates by the URA, private residential prices have fallen by 0.5% in the last quarter of 2015. Year-on-year, private home prices have fallen by 3.7%. Since Q3 2013, private home prices have fallen by 8.4%. On the other hand, HDB resale prices have increased by 0.2% in Q4, a first in 10 quarters. Eugene Lim from ERA believes that this reflects that the market is stabilizing. Ku Swee Yong from Century 21 echoed Lim’s sentiments. Ku added that since the price decrease is within acceptable limits, cooling measures will stay for a longer period. In Q4 last year, the price index for landed properties fell by 10.4% from Q3 2013, compared to a 7.6% decline in the non-landed price index in the same period. This showed that the landed property market was more affected by the cooling measures.

(Source: Business Times)

HDB resale prices increase by 0.2% in Q4 20115

Flash estimates by HDB showed that HDB resale prices have increased by 0.2% in Q4 last year, resulting in a total of a 1.5% fall in resale prices over the whole year. In 2015, 16,360 flats were transacted for the first 11 months of the year. Mohd Ismail from PropNex believes that resale prices may be flat in 2016, with price movements between 1-2%, and transaction volume exceeding 20,000 units, as the current price points may plump up demand. JLL’s Ong Teck Hui said there could be a positive spillover effect on the private suburban condo market as HDB resale prices stabilise and HDB owners may be more willing and able to sell of their flats and upgrade to private condos. Ong believes that if the trend persists, the private suburban market may stabilize and even recover.

(Source: Business Times)

Tanah Merah site triggered for tender

A private housing site near Tanah Merah MRT station has been put up for tender from the Government Land Sales (GLS) Reserve List, three weeks after MND announced the sites to be released for H1 of 2016. This reflects developers’ hunger for land. Based on a poll of three property consultants, the triggered site is expected to garner 3 to 12 bids, with the top bid forecasted to be between $600 and $750 psf ppr, according to JLL’s Ong Teck Hui. Based on Ong’s forecast, the breakeven cost would be around $1100 to 1200 per square foot.

(Source: Business Times)

HDB resale prices stabilize in Dec as volume falls

HDB resale prices were unchanged in Dec 2015 while sales volumes fell slightly by 4.3% compared to Nov 2015. Resale prices of 3-room and 4-room flats rose 0.3% and 0.1% respectively, while 5-room and EC flats both fell by 0.4%. Compared to 2014, prices have fallen by 1.3% and as expected, resale volumes fell slightly in the traditional lull month of Dec. However, compared to a year ago, resale volume shows more buyers returning to the resale market; with an increase by 8.4% in resale volume as 1,404 units were sold in Dec 2015 compared to 1,295 units in Dec 2014. Market experts expect either a stabilised performance or a slight decline in HDB resale prices in 2016.

(Source: Business Times)

Commercial

Value of shophouse deals increase by 8% in 2015

In 2015, the value of shophouse transactions rose by 8% from $606.2 million in 2014 to $655.60 million. Yet, only a total of 103 caveats were lodged last year, down from 112 in 2014, suggesting bigger-ticket shophouses changed hands in 2015. According to market watchers, there has been heightened interest for this property asset class from ultra high net worth investors and family funds. CBRE’s Sammie Lim predicts that the volume and value of shophouse deals will remain stable this year. Despite the recent increase in volume and value of shophouse transactions, market experts said that since the implementation of the total debt servicing ratio framework in June 2013, the number of caveats lodged have fallen by 22-23 deals per quarter. The value of the transactions have also fallen from $287-464 million to $124- 204 million, over the same period.

(Source: Business Times)

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