RESIDENTIAL

HDB increased launches of BTO flats to increase applicant’s chance: Minister Khaw

An increase in BTO flats launches will increase an applicant’s chance of securing a unit as application rate is lowered, said Minister Khaw as he announced that HDB will be launching more new flats and the next launch will be in September. HDB data showed that a successful applicant, who participated in BTO exercises between January to March 2011, stood a higher chance of choosing a flat in a BTO project when there were fewer applicants. Also, increasing launches of BTO flats will increase second-timers chances of getting their flats as second-timers’ chances to select decreased when more first-time applicants apply for a particular BTO flat. By increasing BTO launches, Minister Khaw also aim to stablise housing prices and offer more choices to applicants.

Seven BTO projects drew a total of 11,548 for 3,556 flats on offer

HDB received a total of 11,548 bids for the 3,556 flats offered under seven BTO projects in Bukit Panjang, Jurong West, Sengkang, Tampiness, and Yishun. The 149 studio apartments on offered at the Golden Carnation project in Tampiness attracted 531 applications, while 590 four-room flats in Bukit Panjang attracted 1,505 bids. Over at Sengkang, there were 645 bids for 168 three-room flats, 2,933 bids for 944 four-room flats, and 2,277 bids for 717 five-room flats. At the Yishun Natura project, 140 four-room flats attracted over 1,010 applications and 112 five-room flats attracted 655 bids. At the Golden Orchid Project in Jurong West, the 232 studio apartments on offer drew 340 bids.

Resale flat prices increased 3.1% in Q2, up from the 1.6% rise in Q1

HDB’s data showed that price of resale flats increased 3.1% quarter-on-quarter in Q2, up from the 1.6% hike in Q1. Due to strong demand and limited supply, the resale flat market has been strong. There were 6,581 resale transactions made in Q2, an increase of about 6% from Q1, and the price growth in Q2 was also beyond the official flash estimate of a 2.9% hike. However, ERA Realty Network noticed that transactions were lower in Q2 as compared to the past when around 8,000 transactions could be achieved.

En bloc sales, especially for those above $100 million, slowed; successful selling rate decreased from 65% in whole of 2010 to 51% in H1 2011

Data from Credo Real Estate revealed that the successful selling rate for plots put up for enbloc sales decreased from 65% in the whole of 2010 to 51% in H1 2011. As compared to the whole of 2010 where only 11 sites valued at $100 million and above were up for sale, 26 sites above $100 million were up for sale in H1 2011. Out of these 26 sites, only six sites which were priced below $300 million were sold; this made the success rate to be 23.1%, lower than the 27.3% last year. However, the successful selling rate for plots below $50 million was 87% in H1 2011, more than the 76% for 2010.

PRs only own 3.5% of landed residential properties in Singapore: Minister Shanmugam

Law Minister Shanmugam disclosed that only 3.5% of landed residential properties in Singapore, which includes the Sentosa Cove properties, are owned by PRs.He mentioned that properties in Sentosa Cove are open to foreigners who are not PRs because Sentosa Cove properties are planned to target and attract famous, wealthy, and influential people to come to Singapore. Mr. Shanmugam reiterated that Singaporeans will always be the top priority when it comes to purchasing landed residential property, given the scarcity of such housing.

Private house subsales increased 10.6% in Q2

The number of private houses sold in the subsale market increased 10.6% quarter-on-quarter in Q2 2011, to 712 units. Despite that, this rate of increase was lower than a near 27% increase in the 4,562 new private houses that developers sold. Savills mentioned that the higher SSD launched in January has allowed genuine buyers to have access to units in the primary market directly. Based on Savills’ analysis of caveats captured by URA Realis, the resale segment saw a 17.5% quarter-on-quarter increase to 4,144 units in Q2 2011.

COMMERCIAL

Several projects gained provisional permission (PP) from URA

In Q2, several industrial and residential projects island-wide gained PP from URA. One of them is a Tuan Sing unit in CBD that had received PP to carry out a development consisting of 23,530 sq metres GFA of offices and 380 sq metres of retail space on Robinson Road. Similarly on Robinson Road, Oxley Consortium Pte Ltd also gained PP to redevelop The Corporate Office into a project that consists of 12,280 sq metres of offices and 2,770 sq metres of shops. Furthermore, some project sites sold under GLS also gained PP from URA between April to June. One of them is the 497-unit Boathouse Residences condo project.

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