Singapore Property News This Week #243

Residential

Resale condo prices fall by 0.8% month-on-month in Dec 2015

Based on flash estimates by SRX Property, resale prices of non-landed residential units have fallen by 0.8% month-on-month in December 2015. Year-on-year, the price index fell by 2.1%. Resale prices of condos fell the greatest in the Outside Central Region as a 4.1% drop was recorded last year compared to a 3.3% in 2014. In the Core Central Region and the Rest of Central Region, resale prices had increased by 2.2% and 1.5% in 2015 after falling in 8% and 4.8% 2014 respectively. Last year, the resale transaction volume for condos rose by 28% from 2014 to 6,346 units. Eugene Lim from ERA Realty said that more buyers are returning to the resale market particularly for units with larger floor areas as developers tend to launch smaller units.

(Source: Business TImes)

Condo rents fell by 5.4% while HDB flat rents fell by 4% in 2015

Year-on-year, the condo rental price index has fallen by 5.4% for non-landed private homes in 2015. This was more than in 2014 when a 5.2% year-on-year drop was recorded. Eugene Lim from ERA Realty predicts that there will be a 5 to 8% fall in rental prices of non-landed private homes in 2016 due to tight immigration policies and high supply of rental units, particularly in the Outside Central Region. In 2015, condo rents in that region had fallen 6.4% while rents in the city fringe fell by 7.6%. Condo rents in the Core Central Region had fallen by just 0.9%  last year. Similarly, the rental index for HDB flats had also gone down by 4% in 2015. Month-on-month, the index had fallen by 0.6% in December last year. Yet, the volume of HDB flats had increased by 8% year-on-year in 2015. Lim believes that more expats are renting HDB flats instead of private apartments due to crimped relocation packages, thus the surge in rental volumes for HDB flats.

(Source: Business Times)

Commercial

Mortgage auctions expected to increase

According to market experts, mortgagee listings at auctions are expected to increase this year. This month, the properties on auction include an uncompleted factory in Kranji, shop units along Cuscaden Road and a two-storey detached house at Upper East Coast Road. Market experts believe that properties are auctioned off as a last resort. Often, these properties are put up by foreign investors who have defaulted on their loans, said experts. While the number of properties put up for auction has increased to 796 in 2015, only 33 units were sold because of a mismatch between sellers’ and buyers’ expectations, added Colliers’ Grace Ng. Nevertheless, Sharon Lee from Knight Frank said that sales rate at auctions may be low as buyers tend to pick up a property after the auction.

(Source: Business Times)

Rents for 1st floor retail space down by 1.2% in Q4 last year

According to DTZ, rents for first-storey retail space have fallen by 1.2% quarter-on-quarter in Q4 last year to about $30.50 psf. Year-on-year, rents have fallen by 5.9%. Market experts believe that the fall  in prices could have been due to weaker consumer sentiments. Rents of retail spaces at Orchard/Scotts Road fell by 5% year-on-year,compared to a 5.7% drop in retail space rents in the suburban areas in the same period. Lee Nai Jia from DTZ said that rents in the Other City areas such as Chinatown and Bugis are expected to recover when residential components in mixed-use developments receive their temporary occupation permits.

(Source: Business Times)

Site at Lok Yang Road up for sale

An industrial site at Lok Yang Road is up for sale by expression of interest. The indicative price is set at $20 million. The 133,876 sq ft site which comprises of 5 buildings, has a total gross floor area of 107,130 sq ft and has been zoned for Business 2 use with a maximum approved plot ratio of 2.5. Grace Ng from Colliers said that end-users in the Business 2 industry such as those in manufacturing may be particularly interested in the site as industrial spaces of such size are hardly available for sale.

(Source: Business Times)

Tuas South Link 2 site tender awarded

JTC has awarded the tender for an industrial site at Tuas South Link 2, at a tendered price of $3 million. The 5,050 sq m site has a gross plot ratio of 1.4 and a tenure of 20 years. The site has been zoned for Business 2 use.

(Source: Business Times)

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