Residential Market News Extract - 11 June 2012

Resale home deals keep climbing

The number of private resale non-landed home transactions continued to climb in April-May, on the coattails of a surprising turnaround in March.

According to data provided by the Singapore Real Estate Exchange (SRX), the total number of caveat and non-caveat transactions as at May 31 was 2,551, beating the 2,117 in Q1, and just shy of the 2,601 transactions in Q4 2011.

Buyers who adopted a wait-and-see stance after the introduction of the ABSD (additional buyer's stamp duty) are re-entering the market, buoyed by the exuberant return in buying sentiment in the primary market. They are also turning to the secondary market for better value as new launches set new benchmark prices.

In similar vein, Housing & Development Board (HDB) resale prices have risen 2.05 per cent in the past two months, to $438,800 from $430,000 in Q1.

The top three towns which witnessed price increases include Bukit Panjang (up 7.6 per cent at $460,000), Bukit Merah (up 7.55 per cent at $591,500), and Marine Parade (up 7.37 per cent at $502,500).

HDB resale market prices have reached their peak and are not expected to further increase in price in the coming quarters as buyers are becoming reluctant to pay high COVs (cash over valuations). Overall, the HDB price increment will be muted with no significant growth in the coming months.

On the rental front, private non-landed rent volumes fell 33.2 per cent from 7,504 in Q1 to 5,014 in April-May. Rental yield fell 25 basis points to 4 per cent.

In the Core Central region (CCR) rental yield fell from 3.42 per cent to 3.19 per cent, while in the Rest of Central region (RCR), rental yield fell 12 basis points to 4 per cent. In the Outside Central Region (OCR), rental yield fell 20 basis points to 4 per cent.

Source: Business Times – 11 June 2012

 

Cemeteries before, homes to die for now

Some home buyers may be feeling a little squeamish about living at former cemetery Bidadari once it is redeveloped.

But property industry experts had this reminder for Singaporeans: Various high-profile residential areas share a similar history.

For instance, some apartments in mid- to high-end districts such as Bishan, Orchard and Tiong Bahru were formerly occupied by cemeteries, they say.

These experts noted that with the passage of time, the former use of a site is often forgotten, with the home's value unaffected.

The issue came to the fore recently when the Government announced that work on the new town, Bidadari, will start by the year end, paving the way for 12,000 new homes to be built there.

But despite their past solemn uses, these areas remain some of the choicest HDB estates due to their city fringe location.

While the first few blocks of homes to be built on such sites might face some buyer resistance, there is little stigma for subsequent projects once a population catchment is established.

But home buyers should be forward-looking, looking at a site's upcoming potential and taking into account the location, rejuvenation plans and new infrastructure planned for the estate.

Source: The Straits Times – 9 June 2012

 

Launch of two freehold condos

Two freehold condominiums are being launched today amid a lull in the market, which are expected to give a gauge of the buying interest.

Both - one in suburban Eunos and another in central Mount Sophia - are relatively small projects, with fewer than 200 units in total between them.

The Tong Eng Group's Tropika East, a freehold project off Jalan Eunos, was privately previewed yesterday and will be open to the public today.

Already, at least 30 units have been snapped up.

The showflat at 1 and 3 Foo Kim Lin Road will be open to the public from 11 am today.

A three-bedroom unit of between 1,033 sq ft and 1,109 sq ft will cost from $1,150 per sq ft (psf) to $1,275 psf. Two-bedders ranging in size from 710 sq ft to 840 sq ft will cost between $1,250 psf and $1,350 psf.

One-bedders of from 441 sq ft to 527 sq ft will start from $1,350 psf, up to $1,450 psf.

Penthouses, measuring from 840 sq ft to 1,819 sq ft, are on sale for $1,000 psf on average.

The 105-unit condo will be split into three blocks of five floors each. It will be ready by June 2016. It is near to the upcoming 748-unit euHabitat.

Tropika East will be about 600m away from the upcoming Kaki Bukit MRT station, expected to be ready in 2015.

Aurum Land is launching its upscale development 1919 on Mount Sophia. Aurum Land is a subsidiary of Woh Hup.

The condo, expected to be completed by 2015, will consist of 75 black-and-white apartments.

Average prices range from $2,000 psf to $2,200 psf, while patio units - on the ground floor with a bigger balcony - start from $1,600 psf. Unit sizes range from 560 sq ft to 1,302 sq ft.

The showflat at 118 Sophia Road will be open to the public from 10am.

Dhoby Ghaut MRT Station is about a 10-minute walk from the condo.

Source: The Straits Times – 9 June 2012

 

Projects add some buzz to Bartley

Sleepy, tucked-away Bartley may not be the first area that springs to mind for home hunters, but it is likely to come into its own as a housing area in years to come, some property experts have said.

More than 12,000 homes - public and private - are set to be built on the nearby former Bidadari cemetery plot when it gets redeveloped.

Meanwhile, there will be more than 1,000 units coming up from two plots of land being developed into condominiums by Hong Leong Holdings, City Developments and TID Residential.

One is the 702-unit Bartley Residences, which will be ready in 2015. About 400 units have been launched to date, with 80 per cent sold.

Work on the new town at the Bidadari plot will begin by year end, and the first Housing Board launch may be as early as 2015, which may mean new homes by 2018.

Bidadari is likely to 'fully awaken from its slumber' in the next five to 10 years once new developments fill up. It will boast new amenities which can cater to Bartley residents.

In addition, a site near Woodleigh MRT station has been slated for a future residential and commercial development.

Generally, new condos are about 5 per cent cheaper in Bartley than in Kovan.

In the resale market, prices are likely to be 8 to 10 per cent lower.

This could make the area a good bet for those working in the nearby Tai Seng and MacPherson industrial areas, consultants said.

There will be housing demand in Bartley because it's near to centres of employment, although those working there may not be as highly paid as those in Raffles Place.

Source: The Straits Times – 9 June 2012

 

Slow start for Stella RV condo

A recent new city centre launch in River Valley has had less than enthusiastic response, a recent report said, even as other suburban projects gather healthy sales.

Freehold 120-unit Stella RV in prime district 10 sold less than 20 units at its first weekend of launch at average prices of $2,100 per sq ft (psf), a UBS research report noted. The launch took place two weekends ago.

Jointly developed by Nobel Design, Pinnacle Assets Group and Fission Group, the project targets local and foreign professionals and investors.

It comprises mainly small-format units with one-bedroom plus study units at 452 sq ft, two-bedders at 517 to 581 sq ft, and penthouse units at 818 to 936 sq ft.

'Despite the small absolute quantum at $1.2 million per unit, we think the low take-up could be due to the premium pricing versus surrounding projects,' UBS analysts Michael Lim and Adrian Chua noted.

For instance, nearby RV Edge last transacted at $1,850 psf, Loft @ Nathan was sold at $1,750 psf while RV Suites changed hands at $1,650 psf.

Source: The Straits Times – 9 June 2012