Q4 2015 HDB resale prices up by 0.1%

For the first time in 10 quarters, resale prices of HDB have risen by 0.1% quarter on quarter in Q4 2015. Ismail Gafoor from PropNex believes that resale prices have already hit its lowest in Q3 last year. Nonetheless, he predicts that resale prices will continue to be flat in 2016. More buyers are expected to enter the market as cooling measures remain in place. Also, as HDB resale prices fall, homeowners may be less willing to upgrade to private properties, said Ismail Gafoor. Eugene Lim from ERA Realty believes that the market could have found its support level as there is increased price stability. However, Lim warns that with higher interest rates and a slowdown in the economy, it may be too early to say that the market has recovered.

(Source: Business Times)

GCB at King Albert Park sold for $25 million

A good class bungalow (GCB) along King Albert Park has been sold for $25 million or $1,493 psf based on a land area of 16,750 sq ft. The bungalow which is freehold, consist of two storeys and a swimming pool. It has a built-up area of about 10,000 sq ft and was completed in 2012. Currently, the bungalow is tenanted.

(Source: Business Times)

Foreign buying falls as property sales plunge

According to the Business Times, foreigners have cut their purchases of private homes in Singapore, leaving the market to depend on local buyers at a time when domestic interest rates are increasing. Data by DTZ showed that in Q4 of 2015, foreigners including permanent residents have bought 499 homes, which accounted for 16% of the total transactions made. In contrast, more than 30% of the transactions made in 2011 came from foreign buyers. Alan Cheong from Savills said that Chinese buyers may have been more attracted to countries like Australia and the UK. To remain competitive, Cheong believes that stamp duties need to be tweaked to retain buyer interest.

(Source: Business Times)


Office vacancy rate in 2016 expected to hit double digits

In Q4 2015, office rents have fallen by 1.8% while in Q3, office rents were down by 2.9% quarter-on-quarter. In 2015, office rents fell by a total of 6.5%, eroding most of the gains achieved in 2014 when rents rose 9.8%. Weak leasing demand, caused by a slump in business sentiment, is expected to increase vacancy rates. However, as office stock is reduced during Q4 last year, the overall vacancy rate held steady at 9.6%. Christine Li from Cushman & Wakefield believes that as more than 4 million sq ft in gross floor area of office space is slated for completion in 2016, vacancy rates will increase this year.

(Source: Business Times)

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