Residential

Foreign buyers active in the property market again

After the decline in foreign buyers following the ABSD, there are signs that foreign buyers are becoming active in the property market again, with the four largest nationalities in Q2 being Malaysians (6.3%), Indonesians (4.7%), mainland Chinese (4.4%) and Indian nationals (3.0%). The largest increase came from the Indonesians, from 247 in Q1 to 391 in Q2, while transactions by the Malaysians, Mainland Chinese and Indian nationals increased from 398 to 521, 311 to 365 and 173 to 252 from Q1 to Q2 respectively. From July to Aug 23, Malaysians took up 7% of foreign purchase or 120, with the mainland Chinese, Indian nationals and Indonesians taking up 6.2% (107), 4.2% (72) and 3.7% (63) respectively. There were 8,311 deals transacted in Q2, a 37.2% increase from the 6,059 deals in Q1. Of these transactions, foreign buying in Q1 and Q2 took up 22.96% and 23.58% respectively and increased to 27.06% from July to Aug 23. Though demand from Chinese buyers is high, this could change as the twice-reduced interest rates by the Chinese government may attract Chinese buyers to buy properties back home.

(Source: Business Times)

Demand for shoebox units to fall if singles allowed to buy new flats

If singles were allowed to purchase new flats from HDB, there may be a fall in demand in shoebox units since such units are catered to mainly singles. However, whether this would make a big impact depends on the types of restrictions singles would likely face when buying HDB flats. For example, an income restriction may mean continued demand for shoebox units from those who are unable to buy flats. The supply of new flats and potential restriction on flat types singles can purchase may also affect the demand for shoebox units.

(Source: Business Times)

Suburban condos remain resilient against downward price pressure

According to National University of Singapore’s Singapore Residential Price Index (SRPI) series, the overall SRPI fell by 1.1% in the year-to-date. The subindex for Non-Central Region (excluding small units) increased by 1.3% between December last year and July this year, while the subindex of shoebox units (up to 506 sq ft) islandwide and the subindex for Central Region (excluding small units) fell by 0.1% and 3.9% respectively in the same period. In July, the overall index fell by 1.1% from June which had seen an increase of 0.1% while the subindex for shoebox units (up to 506 sq ft) islandwide increased by 1.1% after a 0.9% fall in June. The subindex for Central Region also fell by 1% in July while the subindex for Non-Central Region (excluding small units) fell by 1.3% in July, compared to the 1% increase in June.

(Source: Business Times)

Prices of property near Thomson MRT Line to rise

Prices of properties near the upcoming Thomson MRT Line are likely to rise immediately, though those in the Springleaf, Seletar, and Lentor area may be the ones to gain the most increase with those in the Springleaf/Springside possibly increasing by 10%. Though prices will start to increase by 3-5% now, they will likely increase more by 20-30% over properties that are further away from the station when the line is near completion. There is also a possibility that prices of properties near the major construction work sites will fall 5-15%.

(Source: Business Times)

99-year leasehold Farrer Rd residential site attracts 14 bids

The 29,509 sq ft plot within walking distance of Botanic Gardens MRT Station drew a total of 14 bids with the top bid of $45.777 million, or $1,107.80 psf ppr from Far East Soho. The plot with a 1.4 plot ratio can be developed up to five storeys and can potentially yield 54 70 sq m (753.47 sq ft) units. Far East plans to develop the site into a development with one and two-bedroom apartments with high ceilings. The estimated break-even cost and average selling price are $1,500-1,600 psf and $1,800-2,000 psf respectively.

(Source: Business Times)

Commercial

Tampines Industrial Crescent site attracts four bids

The 30-year leasehold 3.88 ha site at Plot 3 Tampines Industrial Crescent attracted four bids, with the top bid of $55 million, or $77.47 psf ppr from Oxley Bliss. The site with a maximum permissible gross plot ratio of 1.7 and a 709,986.8 sq ft GFA is zoned B2. Located within a bigger wafer fabrication park, it is permitted for clean industrial activities that are compatible with the surrounding wafer fabrication operations. The four bids are expected given that the site cannot be strata subdivided and can only be rented out. A mixture of unit types could be built on the site, with a two-storey terrace fetching rents in the range of $1.50-$1.80 psf and a 3-5 storey terrace fetching rents in the range of $1.30-$1.50 psf.

(Source: Business Times)

Kranji industrial plot sold for $240m

The freehold 466,540 sq ft Business 2 industrial plot located at Jalan Lam Huat, off Kranji Road is said to have been sold at $240 million or $205 psf per GFA based on the 2.5 plot ratio and 1.17 million sq ft maximum GFA. There is no development charge payable for the site. The site consists of six land parcels and is likely to be redeveloped into strata industrial facilities and landed factories.

(Source: Business Times)

Confusion over pricing of industrial space

As the ABSD drives some property investors to the industrial property sector, there had been some confusion over pricing of industrial space especially from inexperienced buyers. This is especially since developers in Singapore tend to base the psf breakdown of an industrial unit on the total floor area as well as the potential mezzanine level that can be built within a high ceiling unit but does not offer the mezzanine level upon TOP. According to a URA spokesman, there have not been amendments to the rules to address this since buyers had tended to be knowledgeable investors from the business sector until recently. There also had been complaints that a number of salespeople at industrial launches were not equipped with relevant knowledge to sell such properties. Given the increase in new investors, the government would probably introduce new measures to solve this problem, with a rule requiring a more detailed and accurate breakdown of each saleable unit by developers recommended.

(Source: Business Times)

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