Prices of non-landed private homes up by 0.1% month-on-month in Jan

Based on flash estimates by the National University of Singapore for the Singapore Residential Price Index (SRP), there was a 0.1% month-on-month increase in prices of completed non-landed private homes in January from the previous month. This price increase was led by small units and units in the non-central region. In January, the estimates were made based on a revised basket that consists of 574 private residential projects. This was an increase from the 429 projects that were included previously. To reflect changes in the completed private housing stock, the composition of the basket is adjusted every two years. For the revised basket with December 2015 as the base year, prices of small units of 47 sqm or less increased by 0.5% month-on-month. Price of units in the non-central region, excluding small units had increased by 0.5% during the same period. However, prices of units in the central region had fallen by 0.5% in January, after a 0.8% drop in December. Eugene Lim from ERA Realty said that residential purchases in the central region took a harder hit than non-central apartments due to market volatility and the economic downturn, as non-central apartments tend to draw more owner-occupiers than investors.

(Source: Business Times)

HDB resale prices increase by 0.2% in Feb

According to the Business Times, resale prices may be stabilizing for HDB resale flats as prices have increased by 0.2% month-on-month in February. This increase was seen in both mature and non-mature estates. Year-on-year, HDB resale prices are still 0.6% lower than a year ago and 10.9% lower than in April 2013. ERA Realty’s Eugene Lim said that the recent increase in prices could indicate that prices have bottomed out. However, this does not mean that the market has fully recovered or that sellers should up their prices, he said. Ong Kah Seng from R’ST Research agreed that HDB resale prices have yet to stabilize entirely. He added that buyers are unlikely to accede to higher asking prices as cooling measures such as the mortgage servicing ratio have not yet been eased. For buyers that cannot wait for BTO flats to be completed or do not qualify to buy BTO flats, Lim believes that these buyers will turn to the HDB resale market. As such, he expects resale volumes in March to increase.

(Source: Business Times)

Wandervale EC set at average price of $755 psf

Wandervale, the first EC to be launched this year, will be selling at an average price of $755 psf. Prices will begin from $655,000 for a three-bedroom unit to $753,000 for a three-bedroom premium unit and $896,000 for a four-bedroom unit. Since its e-application period ended, the development was oversubscribed by 1.47 times. A total of 783 e-applications were made while only 534 units were available. Located at Choa Chu Kang, the 99-year leasehold development is expected to receive its Temporary Occupation Permit by 2019. The development will consist of 130 three-bedders, 322 three-bedroom premium units and 82 four-bedders that range from 958 to 1,249 sq ft.

(Source: Business TImes)


Mixed sentiments seen for retail property market

Market experts expect sentiment in the retail property market to remain mixed this year as prime retail rents are expected to fall on the whole. Nonetheless, in the regional centres, prime rents are expected to remain resilient. In Q4 last year, several retailers have reported falling profits with some closing down. Yet, several other major flagship stores have been opened by foreign retailers during that period. This included Hong Kong-based Pedder Group which opened an outlet at Scotts Square last October and French label Maje which opened a store at Marina Bay Sands. In Q4 last year, the Orchard Road micro-market experienced the steepest fall in rents among retail submarkets as the average monthly gross rent for ground-floor shop spaces fell by 1.2% quarter-on-quarter to $34.40 psf. Year-on-year, rents were down by 4.9% in 2015, which was higher than the 0.8% fall that was recorded in 2014. However, due to a ready population catchment, the average monthly gross rent of ground-floor space in the regional centres maintained for 3 quarters at $33.94 in Q4 2015. Year-on-year, rents were up by 0.3% in 2015. Due to lowered rents, the imputed average capital value of prime retail space in the Orchard Road is expected to decrease by 3% this year while the average capital value of similar spaces in regional centres is expected to fall at a slower rate as rents remain resilient.

(Source: Business Times)

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