Residential Market News Extract - 27 August 2012

New HDB flats for singles?

The Government is studying whether singles can buy flats directly from the Housing Board, Prime Minister Lee Hsien Loong hinted last night.

Currently, singles, and only those aged 35 and above, can buy resale HDB flats and use government grants. They cannot buy new flats directly from the HDB.

But with resale flat prices rising, it has caused concern as singles find buying a home increasingly unaffordable. "It is something on the minds of many Singaporeans, because the singles numbers have gone up," he said.

Mr Lee was addressing what the Government is doing to address current concerns over housing, as well as jobs, transportation and health care, in his National Day Rally speech.

The Government is looking to cut the waiting time needed to book HDB flats, and has been launching new HDB flats.

He added that he is confident there is enough space to accommodate an expanding population through developing more housing estates and reclaiming more land in the long run.

The Government is also tackling problems related to jobs and infrastructure, Mr Lee said.

It is bringing in new investments to create new and better jobs. The new Singapore-Industry Scholarship, for example, has already sponsored 90 Singaporeans who go to university and then work in a local firm, he said.

It is also investing $60 billion over 10 years in building up the train transportation network, and building more hospitals, nursing homes and day care centres.

On transport, he said that while the long-term investment was being laid out, new bus services will start being rolled out from next month to ease the crunch.

Source: The Straits Times – 27 August 2012

 

Living in the city is catching on

City living is taking off, with thousands of new apartments downtown and thousands more in the pipeline.

One key factor is the exponential growth of office space in the Central Business District (CBD) - specifically the Marina Bay, Shenton Way, Cecil Street and Robinson Road areas.

Office space in these areas has jumped 38 per cent to 17 million sq ft over the last five years and that demand for homes is likely to spike in tandem.

Moreover, another 1.425 million sq ft of office space is expected to be completed by 2015, which will likely bring another 16,000 professionals to work there.

This increase will fuel demand for more homes, especially after the Government's push to cultivate an area where professionals can "live, work and play".

Housing stock is set to grow sharply from the 3,000 to 3,500 completed apartments now, with an estimated 17,000 people already living in the area.

Already, a further 3,400 homes are expected to be built in the city from now to 2018.

Ever since the 646-unit Icon and mega 1,111-unit The Sail @ Marina Bay were completed about four years ago, new residential projects such as One Shenton and Marina Bay Residences have mushroomed in the district.

Newer projects such as EON Shenton, V on Shenton and Marina One, which are all still under construction, have followed.

And both investors and tenants seem to have remained keen on the area, with recently launched projects seeing positive interest.

Median rents at the existing projects in Marina Bay and Shenton Way have risen from $5.50 psf in the third quarter of 2010 to $6 psf in the first three months of the year.

Yields at the Icon near Tanjong Pagar MRT station were about 4.6 per cent in the second quarter, The Clift in McCallum Street pulled in 4 per cent and The Sail @ Marina Bay, 3.5 per cent.

Yields at Marina Bay Residences, however, were lower at 2.7 per cent while those at One Shenton were 2.95 per cent.

F&B outlets and retail and hotel establishments being planned will ensure that life in the CBD carries on well into the night.

Source: The Straits Times – 25 August 2012

 

Condo strip boosts Bedok Reservoir's appeal

A quiet stretch in Bedok Reservoir Road has been transformed in recent years into a row of private condos housing more than 2,300 units.

The new developments have helped to raise home-buyer interest for the entire area.

Four condos in the Waterfront collection developed by Far East Organization and Frasers Centrepoint dominate the strip.

Farther down the road is UOL Group's Archipelago, which was launched in December.

About 485 flats have been sold at the 577-unit project. It was launched at a median price of about $1,118 psf, slightly pricier than Waterfront Isle, which was launched in January last year at a median price of $980 psf.

Waterfront Key, launched in 2009, was sold for a median price of about $734 psf. A year later, Waterfront Gold went for a median price of about $996 psf.

While the Waterfront condos are separated from the reservoir by a road, most of the units have unblocked water-facing views, especially those on the higher floors, but some apartments at the lower-rise Archipelago may not enjoy the same view.

Older condos nearby are recording higher median resale prices. For instance, Aquarius by the Park had a median price of $864 psf in the second quarter of this year, on $799 psf a year earlier.

There is no MRT station at Bedok Reservoir yet but that will change in 2017 when the new Downtown Line opens. The spruced-up reservoir park will also add to the area's appeal, with an outdoor adventure centre and restaurant.

Source: The Straits Times – 25 August 2012

 

Good response to eCO, One Dusun Residences

Braving the traditionally inauspicious Hungry Ghost Festival has boded well for both eCO and One Dusun Residences, which saw keen interest from buyers.

Indeed, the 99-year-leasehold eCO at Bedok South Avenue 3, which is jointly developed by Far East Organization, Frasers Centrepoint and Sekisui House, and is priced at some $1,250 per sq ft (psf), has received in excess of 300 registrations of interest for the 222 units rolled out, since marketing activities for the project started last week.

Most of the interest has been directed at the two-bedroom units, which can range from about 597 sq ft to some 1,181 sq ft, depending on the unit type.

The 752-unit project consists of 246 suites, 220 small-office-home-office (Soho) apartments, 34 townhouses and 252 condominium units, according to marketing brochures.

Residential units at the freehold mixed-development One Dusun Residences, which consist of 154 apartments and 76 shop units, also flew off the shelves.

BT understands that less than 10 apartments are left at the project, which is located at Jalan Dusun (off Balestier Road). The units were priced at $1,400 to $1,500 psf.

According to the marketing material, majority of the units, which are two-bedders, range from about 452 sq ft to 786 sq ft. There are also seven duplex penthouses of two and three-bedroom mix, which range from 796 sq ft to 980 sq ft and 1,087 sq ft to 1,098 sq ft, respectively.

Despite buoyed sentiments, transactions in the market have slowed.

Non-landed private resale transactions dipped 25.4 per cent, from 193 transactions per week year-to-date (on average) to 144 transactions in the first week (Aug 17-23) of the Hungry Ghost Month. Rental transactions too dipped 31.5 per cent, from 648 transactions on average per week year-to-date to 444 transactions in the first week of the seventh lunar month.

HDB resale and rental transactions fell too, from 513 to 278 (45.8 per cent) and from 448 to 307 (31.5 per cent) respectively.

Source: Business Times – 25 August 2012