[Focus] Singapore housing market

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Sun, Nov 01, 2009
The Straits Times

Home sales: Boom with a difference

By Joyce Teo, Property Correspondent

PROPERTY developers here appear set to sell at least as many new homes this year as in the record year of 2007.

But the total value of these new private homes is on track to be only about half of that two years ago, underlining how different the two property booms have been.

This shift is partly thanks to a dramatic rise in sales of smaller, mass market units, says a new analysis by CBRE Research.

The running total for units sold in the first three quarters of this year is 12,828 compared to 2007's 14,811 - so even average sales for the final three months will take this year's total close to that of 2007.

The total value of new homes sold two years ago was $23.04 billion, based on caveats lodged. In comparison, the total from January to the first week of October this year was $11.2 billion - just 48.6 per cent of 2007's record.

This is because back in 2007, the luxury end of the residential market achieved top-line record prices with units that were usually large in size, said CBRE Research executive director Li Hiaw Ho.

'Unit sizes were often greater than 2,000 sq ft,' he said, adding that much of the demand came from the luxury segment where overall prices were high.

This year, mass market homes positioned to attract HDB upgraders accounted for most of the demand, Mr Li pointed out. In addition, the proliferation of smaller homes of less than 500 sq ft - which have a lower total price - also helped to bring down the overall value.

Developers were keen to ensure affordability this year as they scrambled to reconfigure their unit sizes to allow for smaller apartments.

'Our high-end market has not started to move. It's the reverse of Hong Kong, where the property market picked up with the high-end segment,' said Mr Donald Han, managing director of Cushman & Wakefield. 'Luxury prices are generally 25 per cent below the peak of the market in the first quarter of 2008.'

Another key difference between the previous boom year and this year is the number of foreigners buying into Singapore's private housing market, said CBRE Research.

Two years ago, about 1,736 foreigners bought new homes in the primary market. A fair number were speculators who were not based here but were attracted to the Singapore growth story and the gains to be made in real estate.

'Developers were doing a lot of road shows overseas then. We had buyers from Europe, Japan looking at huge penthouses, and the funds were buying,' said Mr Han.

But, so far this year, only 651 foreigners have bought new homes, just a third or so of 2007's figure, said CBRE's Mr Li.

Knight Frank executive director (residential) Peter Ow said that for much of this year, prices have been generally lower, which was why many buyers jumped in to buy.

'The market in 2007 was also more speculative. In the first half-year of 2009, buyers were mostly owner-occupiers.'

Although some speculators have returned to the market since then, this year's market is generally a lot more stable compared with 2007's, said Mr Ow.

A total of 2,780 units was traded in the sub-sale market in the first three quarters of this year, compared with 4,193 units done in the first three quarters of 2007, according to data from the Urban Redevelopment Authority (URA).

Price rises earlier in the year were fast and furious but the increases cooled somewhat after the Government's market-calming measures were introduced in mid-September, said Mr Ow.

Some new private home prices are now high enough to cause buyers to think twice, he said.

The breather is thus good as buyers need time to accept current prices and the fact that the low prices of the earlier part of this year are likely gone forever, he said.

'Developers are not in a hurry to launch in view of rising land prices. There isn't a lot of supply coming up. While the land sales programme will have more land, it will take time for it to roll out,' said Mr Ow.

Next year, gradual price rises are likely with the high-end market set to improve, said Mr Han.

This article was first published in The Straits Times.

http://business.asiaone.com/Business/My%2BMoney/Property/Story/A1Story20091030-176801.html

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waoho.

Govt releasing quite a bit of land for both the commercial n residential market. can expect some sort of over correction in the next couple of years if this is done poorly n if the economy goes south at the same time. 

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http://singsupplies.com/showthread.php?t=42672

November 10, 2009
Possible Property Bubble Has Singapore Officials Worried
By REUTERS

SINGAPORE — The Singapore central bank warned Monday that more measures could be needed to curb the risk of speculation in the country’s property market, which has been bolstered by low borrowing costs.

The comments underscored a growing concern among policy makers in Asia, who are worried about the possibility of a bubble in residential markets in financial centers like Hong Kong, Singapore and Seoul.

“As Singapore emerges from recession and with the market expecting low interest rates to persist for some time, the risk of a renewed escalation of speculative momentum cannot be discounted,” the Monetary Authority of Singapore, the country’s central bank, said in its annual Financial Stability Review. “More measures might then be necessary.”

In September, Singapore moved to cool the property market by releasing more land and making it harder for home buyers to defer payments.

Last month, the Hong Kong Monetary Authority said it would lower the mortgage limit for luxury property to 60 percent from 70 percent and limit loan values. The South Korean central bank has warned that it would have to raise rates if property prices continued to soar.

The Monetary Authority of Singapore said property market activity had taken on dynamics of its own, despite the lingering economic uncertainties in the island-state and around the world. The authority also warned that a rally in global financial market had outpaced economic fundamentals, and that any perception that the economic recovery was stalling could bring a repricing of financial assets.

It said the rally in Asian asset prices since the first quarter of 2009 had been supported by extensive stimulus policies around the world, but asset prices might prove weak once those policies were scaled back. “Such market volatility could prompt capital outflows from Asia and, in turn, exchange rate volatility,” the authority said.

Asian stocks, as measured by the MSCI index of Asian shares traded outside Japan, have climbed 60 percent this year, outperforming a 27 percent increase in the MSCI world equity index.

The authority said some Asian economies might need to tighten monetary policies before policies were changed in the world’s largest economies, particularly the United States, but the central bank expressed concern about doing so before any significant change of direction by the Group of 3 economies — the United States, Japan and the euro zone. It said such a development could entail “a risk of asset price bubbles.”

Reuters

as mentioned before, if it's picked up in the papers as in "news"paper. it's probably already happening. issue is how much only.

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via : http://www.h88.com.sg/article/Heartland+Bunnies+-+More+HDB+Upgrading/

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HDB property tax going up
One-off rebate to cushion rise; one- and two-room owners will pay nothing


[SIZE="1"]In line with the rally in home prices, the taxman is revising upwards the value of Housing Board (HDB) homes. --ST PHOTO: DESMOND WEE[/SIZE]

HOMEOWNERS: be prepared to pay higher property taxes next year.

In line with the rally in home prices, the taxman is revising upwards the value of Housing Board (HDB) homes.

The Inland Revenue Authority of Singapore (Iras) announced on Wednesday that the annual values (AV) of all types of HDB flats will be raised with effect from Jan 1.

This will mean a hike in property taxes for 2010.

The property tax rate in Singapore is currently set at 10 per cent of a property's AV, although owner- occupied residential properties enjoy a concessionary 4 per cent tax rate.

To soften the impact, a one-off rebate is being introduced to help HDB homeowners adjust to the increase.


HDB property tax going up

via : http://forums.vr-zone.com/newsroom/510141-news-hdb-property-tax-going-up.html

===============

classic move to cool down the overheating HDB market prices.

they (the govt) have quite a few tools at their disposal to do their bidding. 

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more measures to cool ...

SINGAPORE: First—time homebuyers now have more options when it comes to getting their dream home.

The Housing Board is offering 2,670 new flats through four Build—to—Order projects launched on Tuesday. This brings the total flat supply for this year to 13,500 units.

HDB said two BTO projects in Queenstown estate, SkyVille and SkyTerrace@Dawson, cater mainly to buyers who are prepared to pay more for a prime location and better finishes.

It expects an overwhelming response to these flats.

Prices start from S$112,000 for a Studio Apartment, S$280,000 for three—room, $373,000 for four—room and S$532,000 for a five—room flat.

The Dawson projects, which are more than 40 stories high, will offer new features.

For those who want to stay close to their parents, they can buy "paired flats" at SkyTerrace under the Multi—Generation Living Scheme.

Yap Chin Beng, deputy chief executive officer, Estates and Corporate, HDB, said: "Altogether, we have 65 pair studio apartment with four room flats, or studio apartment with five room flats so that the married children and parents can apply under a single application.

“The flats are connected through connecting doors, but each unit have their own main entrances."

Buyers of SkyVille will get to choose the layout of their homes under the flexi—lay out scheme.

For example, they can opt for a bigger living room area but fewer bedrooms.

The other two BTO projects are Montreal Dale in Sembawang and Segar Grove in Bukit Panjang.

Prices for the standard flats start from S$72,000 for a two—room unit, S$125,000 for three—room flat and S$210,000 for a four—room unit.

95 per cent of the two, three, four and five—room flats offered through the four BTO projects will be set aside for first—timers.

Market watchers said with the latest batch of BTO projects, homebuyers now have a wider range of options to suit their budgets and preferences.

Eugene Lim, associate director, ERA Real Estate, said: "Some of the new flat buyers have expressed that there is not much location to choose from. But actually now it is pretty much spread out. You have your central location and also what you call the suburban locations. So it sort of caters to the needs of flat buyers."

HDB said there will be more BTO projects in 2010.

It is prepared to launch at least one BTO project every month if there is a sustained demand for new flats. — CNA/vm

HDB offers 2,670 new flats under four Build—To—Order projects - Yahoo! Singapore News

via : http://forums.vr-zone.com/newsroom/521145-news-hdb-offers-2-670-new-flats-under-four-builda-toa-order-projects.html

[tags] BTO

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as with any measure, it takes time. things will "overflow"/"overshoot" first before getting back in line.
all inline, all accordingly to plan. 

Jan 4, 2010
HDB prices hit new high
By Jessica Cheam

PRICES of Housing Board resale flats continued its relentless climb, rising 3.8 per cent in the fourth quarter of last year to hit a fresh record.

The Resale Price Index (RPI) hit 150.7 in the fourth quarter, up from 145.2 in the third quarter, according to flash estimate released by the HDB on Monday.

This means HDB resale flat prices rose about 8 per cent for 2009. Analysts say this is due to the nascent economic recovery and strong demand for resale flats.

HDB said on Monday it will continue to launch more build-to-order flats in 2010 'if there is sustained demand for new flats',.

It will ensure that there is an adequate supply of flats to meet prevailing housing needs, it said.

About 1,300 new flats will be launched for sale tomorrow in Choa Chu Kang and Hougang.

Full public housing data for the fourth quarter will be released on Jan 22.

via : http://forums.hardwarezone.com.sg/showthread.php?t=2626568

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HDB launches 1,291 new flats 

HDB is launching two new BTO projects today, Limbang Green in Choa Chu Kang and Buangkok Vale in Hougang, offering a total of 1,291 units.

The selling prices for the flats range from $64,000 to $89,000 for a studio apartment, to $226,000 to $278,000 for a four-room flat at Limbang Green. Three-room flats are going for $140,000 to $169,000.

Prices are Buangkok Vale are slightly higher at $231,000 to $288,000 for a four-room flat, $88,000 to $111,000 for a two-room; and $142,000 to $182,000 for a three-room.

 
592 units are located in Limbang Green, while Buangkok Vale offers 699 standard flats.

The flat supply comprises 276 studio apartments, 128 two-roomed flats, 241 units of three-roomed flats and 646 four-roomed flats. 95 per cent of new flats will be set aside for first-timers.

Limbang Green

Located along Choa Chu Kang Drive, it is served by Yew Tee MRT station.

The Kranji Expressway (KJE), Bukit Timah Expressway (BKE) and Pan-Island Expressway (PIE) also provide connectivity to the rest of Singapore.

Nearby commercial facilities include Limbang Shopping Centre and Yew Tee Square. Community facilities such as Yew Tee Community Club, Choa Chu Kang Swimming Complex, Choa Chu Kang Sports Hall and Choa Chu Kang Stadium are also within walking distance.

Buangkok Vale

Situated in Hougang town, Buangkok Vale is bounded by Buangkok Green and Yio Chu Kang Road and served by two MRT stations, Hougang and Buangkok, as well as the Hougang Bus Interchange and the Central Expressway (CTE).

Residents can enjoy commercial facilities at Hougang Mall and Hougang Plaza at the Town Centre and also at neighbourhood centres such as Central Place and Hougang Green Shopping Mall.

Other communal facilities include the Hougang Swimming Complex, Hougang Sports Hall and Hougang Stadium.

First-time flat buyers are expected to use 18 per cent to 25 per cent of their monthly household income to meet their monthly loan payments for flats in Limbang Green and Buangkok Vale. As such, most of the new flat buyers can service their loan payments fully using their monthly CPF contributions (i.e. 23% of income).

For example, a 4-room unit priced at $260,000 in Buangkok Vale requires a monthly installment of about $937. A family with a household income of $4,300 can service this fully from their CPF contributions without any cash outlay.

Upcoming flat supply

Next month, HDB will be launching another 1,500 flats in Punggol and Woodlands.

Flat buyers can look forward to more BTO projects this year with about 12,000 new BTO flats, if there is sustained demand.

In addition, HDB on behalf of the Government will also be inviting tender for the sale of two Executive Condominum housing sites at Buangkok Drive and Yishun Ave 11, on 15 Jan.

 
HDB launches 1,291 new flats

via : http://forums.vr-zone.com/newsroom/533575-news-hdb-launches-1-291-new-flats.html

[tags] BTO

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SINGAPORE - You want to sell your flat and you are asking for $100,000 cash over valuation (COV).

A buyer is willing to pay you $95,000. Would you sell?

A couple asked that amount for their four-room Housing and Development Board (HDB) flat, and a potential buyer offered $5,000 less than the amount they wanted.

But the sellers said no.

"$100,000 is $100,000. Because we are not in urgent need to sell," said Michelle, who is in her 30's.

The owners - who declined to give their full names - run a food and beverage business.

The Bishan flat - which had recently been put up for sale - has been valued at $460,000 by an independent valuer appointed by HDB.

The flat owners are not alone in asking for increasingly higher COV figures. According to the HDB, four out of 13,000 four-room flats sold last year had premiums higher than $70,000.

Housing analysts say it is a sellers' market right now, with resale flats being a hot commodity.

The Bishan flat owners said they have received three offers so far - including the $95,000 bid - all of which they rejected. The others were between $50,000 to $60,000.

"In one way, it's to test the market," said Michelle. "If we sell, we sell. If we don't sell, we will just continue to stay."

HDB figures show that 79 per cent of home sales transacted in the third quarter of last year were above valuation. In the second quarter, it was 57 per cent.

The median COV is also on the rise - jumping from $3,000 in the second quarter to $12,000 in the quarter after that.

Housing agents say most flats now command at least $20,000 to $30,000 COV. Throw in a good location, close proximity to an MRT station and good renovation, and the price can go up to between $50,000 and $70,000.

Analysts caution against jumping into deals that require high cash premiums.

COV is a premium, and five years down the line, the renovation will deteriorate. And there's no guarantee that you can sell at the same COV (that you had paid) above the then value, said Mr Mohamed Ismail, the chief executive officer of PropNex.

"Buyers should exercise discretion as far as how high you want to pay," he said.

The HDB does not control resale flat prices as they are the result of negotiations between willing buyers and sellers.

Intervening in COV means forcing people to buy and sell at fixed prices, it said.

It has urged buyers to exercise caution and to do their homework to determine if a flat is truly worth its asking price. Buyers should offer a price within their means, said the HDB.



Link: http://www.todayonline.com/Singapore/EDC100119-0000043/Would-you-pay-$100,000-COV?

via : http://forums.hardwarezone.com.sg/showthread.php?t=2643962

[Vorsprung durch Technik]

well resale is a deregulated, grey area when it comes to COV. as with the statement, it takes two willing parties to complete the deal. one way to reduce the cost is to reduce the leasing years; instead of 99 years, reduce to 75 years like in HK or lower like 60 years.

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wah raos muz be millionaire then can stay in pigeon hole??!! :eek:



5-room Marine Parade HDB flat asking for nearly SGD$1 million dollars
February 1, 2010 by admin   
Filed under Headlines

Written by Our Correspondent

The day when HDB flats will cost no less than $1 million dollars may be closer than what Singaporeans think.
A property agent has put up a 5 room HDB flat in Marine Parade for sale at a shocking price of $990,000 on an internet property portal:



The previous record price paid for a HDB flat is $739,000 for a 5-room flat also in Marine Parade last year.
Though Singapore was mired in recession in 2009, prices of resale flats continue to climb by 8.2 per cent:



Prices increased by as much as 3.9 per cent in the fourth quarter alone:



The sky-rocketing prices are fueled largely by limited number of flats built between the years 2006 – 2008 coupled with the large influx of foreigners into Singapore during the same period of time.
Only 3,183 new flats were built in 2008 when there were over 90,000 PRs and 20,000 new citizens in the same year:



[Source: HDB Financial Report 2008/2009]

As public housing is a basic necessity in Singapore, many have no choice but to pay the price set by HDB, the sole provider and seller in Singapore.

Despite widespread frustration, worries and resentment on the ground, the ruling party appears to be unfazed by the prospect of a property bubble emerging.
Prime Minister Lee Hsien Loong said recently that his government does not have any control over the prices of resale flats:

“These resale prices are set by individual households who transact flats on a willing buyer, willing seller basis, and are affected by movements and sentiments in the wider economy, including the private property market. Hence, resale prices of HDB flats will fluctuate from year to year,” he explained.

National Development Minister Mah Bow Tan, who is bearing the brunt of criticisms over his inaction to put a stop to the escalating prices promised to “monitor” the situation carefully.
Though he acknowledged that some people may be “adversely” affected by the housing policies, he is adamant that they are beneficial to Singaporeans as a whole:

“There’s no question that our policies are designed for the good of the people. While there may be certain parts of the policies that are not favourable, overall, I think these policies are for the well-being of the people and are good for the country.”

Mr Mah did not elaborate on the inadequacies of the policies and how they can be fine-tuned to better suit the needs and interests of the people.

While HDB has increased the supply of new flats, they will not be ready till a few years later which does nothing to dampen the red hot property market right now.

With the rise in prices of HDB flats fast out-pacing the wages of Singaporeans, are they still affordable to Singaporeans as proclaimed constantly by HDB and the ruling party?

Perhaps the “affordability benchmark” used by HDB will have to be raised to more than 50 per cent in the near future to ensure that the flats remain “affordable” to Singaporeans.


sauce: http://www.temasekreview.com/2010/02/01/5-room-marine-parade-hdb-flat-asking-for-nearly-sgd1-million-dollars/

via : http://forums.hardwarezone.com.sg/showthread.php?t=2660035

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Feb 17, 2010
Property launches heat up

Developers are already preparing to launch at least six projects
By Fiona Chan

NOW that the holidays are out of the way, property developers are ready to lay out a spread of new offerings for home-seekers.

At least six projects are being prepared for launch, while others have started preview sales or will have new phases released.

At the higher end of the market, Wing Tai is preparing to sell its 147-unit L'Viv in Newton Road at an average price believed to be about $2,000 per sq ft (psf).

The units at the freehold 32-storey development will be fairly small. About half are one-bedroom apartments between 600 sq ft and 700 sq ft, while the rest are two-bedders about 1,000 sq ft in size.

There are also three penthouses of more than 2,000 sq ft, according to Wing Tai. It is offering the deferred payment scheme for a limited period for the project, which is expected to be completed in 2014.

Elsewhere, Far East Organization has started selling units at Altez, a 62-storey project along Enggor Street at Tanjong Pagar, located near its Icon condominium.

via : http://singsupplies.com/showthread.php?t=51840

[Vorsprung durch Technik]

Pay stamp duty if you 'flip' property; bank loans capped at 80%.

What the changes mean

THE new rules mean a homebuyer will now have to fork out more of his own money to buy a property, and will reap a smaller profit if he sells it within a year.

Take, for example, a buyer who pays $1million for a home today and sells it in less than a year for $1.1million.

BEFORE THE NEW MEASURES

The buyer could take out a loan of 90per cent of the price - so he could purchase the property with as little as $100,000 as a downpayment.

By selling, he would have made a fast $100,000, less the stamp duty he paid when he bought the property - $24,600 under the stamp duty formula.

That means he would pocket a profit of $75,400.

His return on capital: 75,400/100,000 = 75.4%

AFTER THE NEW MEASURES

The buyer can take out a loan for only 80per cent of the price which means a downpayment of $200,000.

He would have made $100,000 minus his original buyers' stamp duty ($24,600), and now minus an additional sellers' stamp duty, of $27,600.

This means a greatly reduced profit of $47,800.

His return on capital: 47,800/200,000 = 23.9%

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via : http://vagsg.com/forums/showthread.php?t=26162&page=6

[Vorsprung durch Technik]

recent launches are really crazy prices... such as L'VIV, 1+1study cost 1.2mio.