Residential Market News Extract - 2 October 2012

Jury is out on outlook for private homes

The jury is out on just how private home prices will fare next year, after the Urban Redevelopment Authority's third-quarter flash estimate shows a return to firmness in private home prices, with much of the gain coming from the suburban condo market.

Two new suburban condos released last week saw pretty brisk sales. Hoi Hup moved close to 370 units or 94 per cent of its 393-unit Kovan Regency over the weekend. The average price of the 99-year project at Simon Road/Kovan Rise is $1,250 psf. Allgreen Properties has sold slightly over 200 units at Riversails at Upper Serangoon View since Friday. The average price is $827 psf. The 99-year project has 920 units.

Property consultants say developers are expected to end the year with record sales of 20,000 to 22,000 private homes (excluding executive condos) - up from last year's 15,904 units and busting the previous record of 16,292 units in 2010.

URA's flash estimate shows its widely watched overall private home price index rose 0.5 per cent in Q3 over the preceding quarter. This is slightly better than the 0.4 per cent quarter-on-quarter increase for Q2. In Q1 the index dipped 0.1 per cent.

The authority's split of regional performances in price indices of non-landed private homes reflects a 1 per cent quarter-on-quarter gain in Outside Central Region (where suburban homes are located) in Q3, compared with a 0.5 per cent rise in Q2. In city-fringe locations, or what URA terms Rest of Central Region, the price index was up 0.7 per cent in Q3, again a stronger showing than Q2's 0.4 per cent increase.

The index for Core Central Region (which includes the traditional prime districts 9, 10 and 11 as well as the financial district and Sentosa Cove) edged up 0.2 per cent in Q3, a smaller rise than Q2's 0.6 per cent gain.

URA's overall private home price index has appreciated just 0.9 per cent year-to-date and analysts expect a further marginal increase in Q4.

The index climbed 5.9 per cent in 2011 and 17.6 per cent in 2010.

Views diverge on the outlook for next year.

Source: Business Times – 2 October 2012

 

Q3 HDB resale prices up again to hit record

Price gains in the public housing resale market are picking up momentum again. A 2 per cent quarter-on-quarter hike in Housing & Development Board's resale flat price index lifted it to a fresh record in Q3.

This is the biggest Q-on-Q increase since the 3.8 per cent gain in Q3 last year.

The index rose 0.6 per cent in Q1 this year and 1.3 per cent in Q2. Year-to-date, the index is up 3.9 per cent, and after yesterday's Q3 flash estimates, market watchers expect it to end the year 5 to 6 per cent higher than 2011.

ERA Realty Network key executive officer Eugene Lim raised a flag on the pace of increase. The HDB resale price index is climbing much faster than the 1.5-2.5 per cent growth expected in Singapore's economy this year.

And with higher resale prices, property agents are reporting that the overall median cash over valuation figure has started to spiral up again.

Based on ERA Research's analysis of Singapore Real Estate Exchange data covering HDB resale transactions lodged by major property agencies, the overall median COV increased from about $26,000 in Q2 this year to $30,000 in Q3. This reverses the earlier trend, when the figure eased from a high of $37,000 in Q3 2011 to $33,000 in Q4 2011, $27,000 in Q1 2012 and $26,000 in Q2 2012.

Giving a split of the Q-on-Q increases in median COVs by flat types in Q3, ERA said the biggest hike of 18.18 per cent was for three-room flats, while the smallest rise of 9.14 per cent was for executive flats. "This is expected as population demographics have shifted and families are smaller," said Mr Lim.

The median COV for four-room flats rose 11.11 per cent Q-on-Q to $30,000 while that for five-room flats appreciated 14.66 per cent to $33,250.

The Housing & Development Board in its press statement yesterday stressed that it has been ramping up the Build-to-Order flat supply to meet the housing needs of first-time buyers. HDB will be offering 27,000 BTO flats this year, 2,000 units more than originally planned. Last year, it launched around 25,000 BTO flats. The supply has gone up from 8,000 units in 2008 and 9,000 flats in 2009 to 16,000 units in 2010. HDB is also offering some 7,200 units under Sale of Balance Flats (SBF) exercises this year, up from 2,800 units last year. The figures were 2,100 flats in 2009 (the year when SBF was implemented) and 1,600 flats in 2010.

ERA's Mr Lim finds it hard to predict HDB's resale price index next year as much will depend on the extent of an expected increase in the proportion of BTO flats allocated to second timers. He adds that although resale flats in mature estates are likely to continue commanding high prices, the launch of BTO flats in these areas in September and November will help prevent runaway price increases.

Source: Business Times – 2 October 2012

 

Villa Des Flores up for collective sale with $165m price tag

Villa Des Flores, a freehold development sitting along Whitley Road, is being relaunched for collective sale by tender with its asking price of $165 million unchanged from its previous launch in June.

The cost of the 104,370 square feet site for landed housing works out to a land price of $1,581 per square foot. No development charge is payable.

Green Lodge, Chateau Eliza and Thomson View were all sold last month. The Toh Tuck Road located Green Lodge fetched $191.888 million in what is the largest freehold residential collective sale so far this year. Chateau Eliza, a freehold development off Orchard Road was sold for $92.2 million, while Thomson View went for a whopping $590 million, making it fifth largest en bloc sale here.

According to the Master Plan 2008, the site can be developed into 2-storey mixed landed housing: the developer has the option to build detached, semi-detached, terrace housing or a combination of such, either based on conventional housing types or as a cluster housing development.

As a cluster landed project, the site can accommodate about 24 strata bungalows, 48 strata semi-detached or 64 strata terrace houses.

The tender closes on October 23 at 3pm.

Source: Business Times – 2 October 2012

 

Joo Chiat's Katong Junction up for sale

Commercial block in Katong has been launched for sale by public tender.

The four-storey, freehold Katong Junction building is opposite the 112 Katong mall in Joo Chiat Road and zoned for commercial use. It has 13,346 sq ft of area, a 30-space basement carpark as well as a wide frontage.

The property was valued in August at $62 million. Bids are expected at that level.

According to caveats lodged, nearby Joo Chiat Hotel was sold for $25.8 million in May and GRTH Building, also in the vicinity, was sold in March for $76.1 million or $1,298 per sq ft per plot ratio.

The tender is open to locals and foreigners.

The building can be used for various activities including retail, food and beverage, offices and learning centres or even a hotel, if approval is granted.

The buyer will also be entitled to naming and signage rights.

The tender closes at 3pm on Nov 2.

Source: The Straits Times – 2 October 2012