Residential

Weak response to two residential project launches

Parc Life executive condominium (EC) project in Sembawang by Frasers Centrepoint Limited (FCL) and Keong Hong Holdings sold 50 units of the total 628 units as at Monday, which translates to a take-up rate of 8 per cent. According to FCL, units at Parc Life were sold at an average price of S$775 per square foot. Some agents attributed the poor take-up to the timing of the launch, which took place soon after the launch of the EC project The Visionaire by Qingjian Realty, where 158 units during the launch last week. Competition from the new HDB build-to-order (BTO) flats was also cited as another reason for the weak response. For private residential project Sturdee Residences, nine units were sold during its official launch over the weekend.

(Source: Business Times)

HDB resale volumes in April hit 3-year high

HDB resale data compiled by SRX Property showed that an estimated 1,828 HDB resale flats were sold in April. That’s a 10.3 per cent increase from the 1,657 transacted units in March, and 13.5 per cent higher than a year ago. ERA Realty key executive officer Eugene Lim noted that the jump in resale volumes was a result of stabilising prices. HDB resale prices of five-room HDB flats slipped 0.9 per cent in April, resale prices of HDB three-room and executive flats, however, rose 0.6 per cent and 0.1 per cent respectively during the month. Resale prices of HDB four-room flats remained the same. Resale flats are well-sought after because they have a shorter waiting time before buyers can move in, which caters to those with immediate housing needs.

(Source: Business Times)

New rules on ownership transfers clarified by HDB

Housing & Development Board (HDB) has made clear that its new policies on ownership transfers are not a reaction to potential Additional Buyer Stamp Duty abuse cases. Under the eligibility conditions that kicked in since April 1, changes in flat ownership are allowed only on grounds of marriage, divorce, death of an owner, financial hardship, renunciation of citizenship and medical reasons. The HDB spokeswoman clarifies that the new measures are meant to facilitate any changes in household structures could happen over time. Hence, if the proposed owners met the eligibility conditions to own a HDB flat, an ownership transfer could take place.

(Source: Business Times)

Developers still gloomy about prospects

Developer sentiment remains weak, according to the latest NUS-Redas Real Estate Sentiment Index, with the composite sentiment index remaining below 5. A score below 5 indicates deteriorating market conditions while a reading above 5 indicates improving conditions. Associate professor Sing Tien Foo of the NUS Department of Real Estate noted that while there is a slight upturn in the current and future sentiment in the property market, the general mood remains weak as the sentiment scores still fall in the deteriorating range. Developers were largely supportive of the government’s stance to keep current property cooling measures in place. They also warned that excessive supply through new property launches is a potential risk that will adversely impact market sentiment.

(Source: Business Times)

Commercial

Commercial property rents expected to fall further

The Royal Institute of Chartered Surveyors (RICS) is anticipating a further drop in capital values and rents over the coming year. Demand fell last quarter across all sectors even as available space continued to rise. About 64 per cent of surveyors expect rents to fall further in the next quarter, and 65 per cent expect the downward trend to continue into next year. The outlook for the office market remains bleak. However, the medium-term outlook is slightly more optimistic. Respondents to the survey expect modest capital value growth over the next three years at a rate of 0.6 per cent per annum.

(Source: Business Times)

Large office spaces up for lease in Jurong

Sim Lian Group on Tuesday announced it would release approximately 200,000 square feet of large office spaces for lease at Vision Exchange, at a rate of S$6.80 to S$7.20 per square foot per month. Sim Lian Group CEO Kuik Sin Pin predicts that professional firms, major services and solutions companies as well as institutional users are likely to drive demand for Vision Exchange, and he believes that Vision Exchange has high-grade specifications that will meet occupiers’ and tenants’ expectations. It is Sim Lian’s first development that primarily focuses on commercial spaces. CBRE and OrangeTee have been appointed joint leasing agencies for the project, which will be managed by CBRE Asset Services.

(Source: Business Times)

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