[Focus] Singapore housing market

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Private-property prices fall sharply in core area

By Reico Wong
Thursday, Feb 09, 2012
my paper

THE property cooling measures introduced late last year have started to show a significant impact on the housing market.

Prices of private apartments and condominiums have dropped by as much as 10.2 per cent in the Core Central Region since the fourth quarter, suggesting that home buyers became more cautious after the additional buyer's stamp duty took effect in December.

The average selling price of such units has fallen to $1,600 per sq ft (psf) from $1,781 psf in the fourth quarter, according to data released yesterday by the Singapore Real Estate Exchange (SRX).

The rental prices of apartments and condominiums have also been affected, with those of properties in the non-central areas hit the hardest.

The rental rates of units outside the central region have fallen 2.3 per cent since the fourth quarter, from $2.99 psf to $2.92 psf.

However, rents for apartments and condominiums in the Core Central Region are still climbing. They have risen 1.3 per cent since the fourth quarter, from $4.68 psf to $4.74 psf.

This is likely to be just the start of a downtrend, the heads of property agencies said yesterday at a housing forum organised by SRX. They added, however, that a price crash is unlikely.

Private-property prices are expected to drop between 10 and 15 per cent this year, said Dennis Wee Group, HSR Property Group, PropNex, DTZ, ERA Realty and C&H Properties.

Prices of Housing Board resale flats are likely to ease between 3 and 5 per cent this year, but could also fall by as much as 10 per cent if the euro-zone debt crisis worsens, the companies said.

Mr Albert Lu, chief executive of C&H, said population growth - especially that of permanent residents and new citizens - is slowing, leading to a fall in housing demand.

He added that HDB prices have doubled over the past six years and are unlikely to climb steeply soon, given the large number of Build-To-Order (BTO) flats being pumped into the market.

He said the attractive prices of BTOs would draw buyers from the resale market following remarks by National Development Minister Khaw Boon Wan that he is looking into letting second- timers buy BTO flats.

When second-timers buy BTO flats, they will have to sell their flats, which would further "dampen demand", said Mr Lu.

PropNex CEO Mohamed Ismail said buyers now enjoy more choice, with some 5,000 executive-condominium (EC) units slated for construction this year and "a continued supply of government land sales".

There will be "supply, supply and more supply, be it of HDB flats, EC units or mass-market properties", he said.

"I would not be surprised if public- housing prices remain the same, five years from now," he said, adding that they might be only about 10 per cent higher at most.

Purchases of private property by foreigners reached historic highs last year, hitting 31 per cent, a two-fold increase from 10 years ago, according to another report released yesterday by Savills.

Mainland Chinese were the top buyers, making up 28 per cent of all purchases by foreigners, with Indonesians accounting for just 18 per cent of all foreign purchases.

Mr Lee Sze Teck, senior manager of research and consultancy at Dennis Wee, said: "Singapore is still one of the best cities in Asia to put your money. If prices drop about 10 per cent and conditions are favourable, buyers will definitely come back."

reicow@sph.com.sg

via : http://business.asiaone.com/Business/My%2BMoney/Property/Story/A1Story20120209-326719.html

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HDB announces bumper launch of 8,000 flats
The Housing and Development Board (HDB) will launch a bumper crop of 8,000 flats in Build-to-Order (BTO) and Sale of Balance Flats (SBF) exercises on Wednesday.

The flats are in mature and non-mature estates, and cover a full range of flat types.

HDB is using the ramped-up supply of new flats to help other buyer groups, now that the queue of first-time flat applicants has been largely cleared, National Development Minister Khaw Boon Wan said in his latest blog entry on Tuesday.

Slightly more than half of the flats will consist of BTO flats, with about 1,200 flats in Bukit Batok, 860 in Bukit Panjang, 670 in Clementi, 640 in Geylang, 410 in Bedok, 180 in Toa Payoh and 130 in Bukit Timah.

Mr Khaw said that with the wide range of flats offered in the launch on Wednesday, flat buyers will be able to apply for one that best meets their needs, and in an estate of their choice.

As strong demand is expected for flats that are completed or nearly completed in mature estates, Mr Khaw advised those who want to have a better chance of success to widen their options and consider applying for a BTO flat in non-mature estates.

Mr Khaw said he will be monitoring the application rates to see how Singaporeans respond to the new government initiatives, adding that nothing is cast in stone.

The results of the launch will help the HDB calibrate BTO rules for future launches to ensure that policy objectives are met.

The priority still lies with helping first-timers get their first HDB flat as quickly as possible so they can start their families, Mr Khaw said.

In early March, Mr Khaw announced in Parliament a number of new measures to help various groups of home buyers.

The HDB is tripling the chances for second-timers to get BTO flats in non-mature estates and enhancing the Married Child Priority Scheme.

It is also introducing a new Multi-Generation Priority Scheme to help married children live with or near their parents, along with an Ageing-in-Place Priority Scheme and a Silver Housing Bonus Scheme to help the elderly age in a familiar environment.

via : http://www.bmw-sg.com/forums/property-discussions/64227-hdb-announces-bumper-launch-8-000-flats.html

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107 new home buyers backed out in March
Most who forfeited option fee bought mass market units
Published on Apr 23, 2012

WATERTOWN; 17 units returned: Units at this 992-unit mixed-use development in Punggol were sold at a median per sq ft price of $1,341. -- PHOTO: FAR EAST ORGANIZATION

BUYERS of 107 new private homes had a change of heart last month and returned their units to developers.

The numbers, contained in a report from Goldman Sachs, show that even in a hot market, some people get cold feet. The same report also stated that 100 homes were returned the month before.

That means these buyers have paid an option fee but have chosen not to exercise the option and go ahead to complete the purchase.

When someone buys a new condominium, they put down an initial option fee of 5 per cent to 'reserve' the unit

The Straits Times
Apr 23, 2012
107 new home buyers backed out in March
Most who forfeited option fee bought mass market units

BUYERS of 107 new private homes had a change of heart last month and returned their units to developers.

The numbers, contained in a report from Goldman Sachs, show that even in a hot market, some people get cold feet.
The same report also stated that 100 homes were returned the month before.

That means these buyers have paid an option fee but have chosen not to exercise the option and go ahead to complete the purchase.

When someone buys a new condominium, they put down an initial option fee of 5 per cent to 'reserve' the unit.

After that fee is paid, the developer of the project has 14 days or more to issue the sales and purchase documents as well as the title deed.
From then, the buyer has three weeks to exercise the option to purchase the unit.

In some cases, this whole process could take up to eight to nine weeks.

If the buyer chooses to back out, he forfeits a quarter of the option fee, or 1.25 per cent of the purchase price.

That could mean forfeiting $12,500 on a $1 million unit, or a $75,000 for a high-end one costing $6 million.

The 107 units returned in March could have been bought in either January or February.

Analysts were not surprised by the high number of options lapsing, as the number of options lapsing tends to be correlated to the number of sales made.

Buyers bought 4,289 units in the first two months of the year.

In March, most of the returned units came from the mass market, but this could be because more projects were launched within the sector.

The Straits Times looked at a sample of 15 upcoming projects and found, for instance, 11 units were returned at the 689-unit Parc Rosewood in Woodlands.Apartments at the 99-year condominium were sold for a median per sq ft (psf) price of $994.

Watertown, a 992-unit mixed-use development in Punggol, had 17 units returned. Units were sold for a median psf of $1,341.

Bartley Residences, with average prices of $1,240 psf after discounts, and The Hillier, priced at about $1,289 psf, both had nine units returned.The luxury homes sector, which is in the doldrums, also saw some units being returned.

For example, Skyline@Orchard Boulevard, where an apartment recently went for $4,442 psf, had one unit returned.

Prices there could easily exceed $6.5million, as the smallest unit is 1,744 sq ft in size.

The Scotts Tower also faced one cancellation. Earlier this year, a unit there fetched $3,567 psf.

A property developer also said that it was normal to see some units returned every time a project is sold.

Likewise, PropNex chief executive Mohamed Ismail noted that no new cooling measures have been introduced in the market since last December, which means many buyers could be pulling out because of personal reasons.

'It's a glaring number but there's nothing to worry about. It's common to have a handful of units being returned every month of each project,' he said.

Mr Nicholas Mak, head of research at SLP International Property Consultancy, also noted that the projects with the most units returned - Watertown, The Hillier and Parc Rosewood - included shoebox apartments.

'Sometimes, people are under 'peer pressure' at crowded showflats... They go home and speak to more people and decide not to buy it. They'd rather forfeit the 1.25 per cent than regret buying it,' he said.

Mr Ong Kah Seng, director at R'ST Research, shared similar sentiments, adding that some may have bought in haste.

Other buyers might have been attracted to better choices elsewhere, he added.

via : http://forums.hardwarezone.com.sg/eat-drink-man-woman-16/those-thinking-buying-house-part-2-a-3656194-128.html