Property Market Sentiments

Sharp drop in land prices unlikely for prime sites in Hong Kong
Correction in properties in urban areas will be less severe than those in the New Territories
Yvonne Liu

Recent land sales results have shown the government is willing to accept lower offers for its sites. The trend is reflected in the sale of the Whitehead residential site in Ma On Shan, which Sun Hung Kai Properties bought last month for about HK$1.83 billion or HK$4,241 per square foot, 18 per cent less than a site in the district acquired by Cheung Kong in November 2012.

But the city's current average property price is still 2 per cent higher than in 2012, according to Centaline Property Agency's Centa-City Leading Index, a barometer of the local property market.

Another example of the downward trend is the case of the Lands Department charging a land premium of HK$2.71 billion or HK$2,059 per square foot for phase four of Lohas Park in Tseung Kwan O at the end of last month. The levy was 15 per cent less than that charged for phase three in 2007. Nonetheless, property prices have surged 117 per cent since then.

In another example, Far East Consortium International bought a residential site in Tai Wai for HK$148 million or HK$3,336 per square foot. It is the lowest price paid for a residential site in the eastern New Territories over the past 10 years. These sales show land prices are falling, the result of higher construction costs and weakening market sentiment.

Developers used to enjoy higher profit margins. As they say it is difficult to cut construction costs, they have lowered their offers for land acquisitions to maintain those margins and cushion the impact of the market downturn.

However, the trend does not mean land prices will drop sharply and all over the city. For example, Wing Tai Properties paid HK$433 million or HK$9,396 per square foot for a site in Shau Kei Wan. The price is at the upper end of market expectations, even though the site is small.

The different prices for the sites are because of the location. If the site is on Hong Kong Island and in other urban areas with less supply, developers are willing to offer a higher price. The competition for sites in prime locations is strong and local developers are facing rivalry from mainland players.

As land prices on Hong Kong Island remain stable and future home supply is tight, price correction will be less. Many developers are trying to build more small flats to maintain a higher price or sit on their inventories. But in the New Territories, property prices will experience a sharp correction when new home supply increases significantly and market sentiment is poor.

yvonne.liu@scmp.com

http://www.scmp.com/property/article/149...-hong-kong

Sleepy waterfront estate set to transform

New condo launch seen as catalyst to development of Kampong Bugis area
Published on May 3, 2014 1:23 AM


Kampong Bugis was once home to the Kallang Gas Works and was earmarked under the URA's masterplan last year to be turned into a residential and lifestyle district. -- ST FILE PHOTO

By Melissa Tan

A TRANSFORMATION is under way in sleepy Kampong Bugis, a piece of waterfront land next to Kallang River and once home to the Kallang Gas Works.

The upcoming launch of a new condominium could provide the catalyst and kickstart the district's development into a high-density waterfront residential estate, analysts say.

The freehold 212-unit Kallang Riverside condominium, which sits on the site of the old Singapore Johore Factories building at 51 Kampong Bugis, is being developed by a company called The Singapore-Johore Express.

Its launch date has not been announced but it is expected to go on sale at around $1,500 to $1,700 per sq ft (psf) as the district is still a relatively untested market for private homes.

The project's neighbours are few and far between and resale activity in what developments there are has been fairly muted.

However, analysts said sales could pick up as the area develops further.

The area's city fringe location means there will continue to be strong demand for homes, said PropNex chief Mohamed Ismail, who added that the rental yields will likely remain "relatively stable" even if there was an ample supply of homes.

SLP International research head Nicholas Mak noted that investors "will need to be more patient to wait for its full potential to be realised".

One project in the vicinity is Wing Tai's freehold The Riverine By The Park in Kallang Road, a 96-unit apartment development completed in late 2010.

Resale prices have ranged from $1,447 psf for a 1,776 sq ft home in December 2010 to the most recent deal - a 1,776 sq ft unit that went for $3.2 million or $1,802 psf in June last year, according to caveats lodged with the Urban Redevelopment Authority (URA).

Rental leases that began in March ranged from an estimated $3.40 to $4.20 psf per month.

Across the Rochor River, there is the 99-year leasehold Southbank in North Bridge Road with 197 homes.

The mixed development by UOL was completed in 2010 and includes so-called Soho (small office, home office) commercial units.

There has been only one resale transaction at Southbank this year, according to caveats - the sale of a 958 sq ft unit for nearly $1.6 million, or $1,634 psf, in March.

The project also posted only three resales last year, at prices between $1,639 psf for a 958 sq ft unit and $1,940 psf for a 614 sq ft unit.

Rents for leases that started in March this year were about $5.30 to $5.40 psf a month.

CapitaLand's 600-unit Citylights condo completed in Jellicoe Road in 2007 is another private residential project not too far from Kampong Bugis

The average resale price at the 99-year leasehold project was $1,629 psf over the past six months, according to caveats lodged.

Its most recent resale was just last month, at $1.7 million for a 1,356 sq ft unit or $1,276 psf. A unit of 689 sq ft was resold for $1,684 psf in March.

Kampong Bugis, bounded by Kallang Road and Crawford Street, was earmarked under the URA's masterplan last year to be turned into a residential and lifestyle district.

About 18ha in Kampong Bugis will be developed after 2016 and could yield about 4,000 private homes as well as commercial developments and even a school.

melissat@sph.com.sg

Singapore Johore express family same as Hotel Royal family. If I
remember correctly.

[align=justify]

(03-05-2014, 01:09 PM)opmi Wrote: Singapore Johore express family same as Hotel Royal family. If I
remember correctly.

Good noon Opmi san:wave:

Yes Sir. here the link

http://hotelroyal.listedcompany.com/management.html

http://hotelroyal.listedcompany.com/shareholdings.html

PUBLISHED MAY 05, 2014
TDSR pushes some to offshore loans
Banks outside S'pore not obliged to report to credit bureau here

BYLYNETTE KHOO
lynkhoo@sph.com.sg @LynetteKhooBT

As far as the Monetary Authority of Singapore (MAS) is concerned, banks in Singapore need to obtain a written declaration from the borrower on all outstanding credit facilities that would include loans from overseas banks and conduct verification checks, an MAS spokesman said - PHOTO: REUTERS
[SINGAPORE] For Singaporeans still hoping to snap up overseas properties despite having their borrowing capacity curbed by what is known as the TDSR (total debt servicing ratio), more may be considering offshore loans to finance their purchases.
"A handful of clients are looking at overseas loans," said a private banker.
Another relationship manager at a foreign bank said that he has referred some clients to the mortgage department of the bank outside of Singapore. Both could not be identified due to client confidentiality.
Some property agents also noted that there have been more enquiries of late from clients for overseas loans.
BT understands that some of these agents tout the idea of an offshore loan to potential buyers of overseas properties if they have maxed out their capacity to borrow.
The TDSR caps an individual's total monthly loan repayment at 60 per cent of gross monthly income, taking into account property and non-property related loans, as well as onshore and offshore loans.
But banks outside of Singapore are not obliged to report to Singapore's credit bureau, so the responsibility to declare overseas loans rests largely on the individual. It remains unclear how leveraged Singaporeans are in terms of offshore loans given the absence of available data.
The picture also becomes less clear in the case of interest-only loans, which allow borrowers to only service the interest cost in their monthly instalments for a period of time and then possibly refinance the principal when it is due. Such home loan packages are available in the UK and Australia but have been disallowed in Singapore since 2009.
As far as the Monetary Authority of Singapore (MAS) is concerned, banks in Singapore need to obtain a written declaration from the borrower on all outstanding credit facilities that would include loans from overseas banks and conduct verification checks, an MAS spokesman said.
For now, Singapore banks are seen to have toed the line.
Joseph Wong, OCBC Bank head of consumer credit risk management, told BT that in assessing customers' applications for overseas property loans, the bank takes into consideration both the onshore and offshore loans that customers have.
Linda Lee, executive director for deposits and secured lending at DBS Bank, also said that the bank offers overseas property financing to "a very selective group of customers as overseas property purchases require a higher level of financial literacy".
Since the TDSR, the number of applications for overseas property loan from DBS has not let up, Ms Lee said. This group of clients is aware of the need to avoid over-stretching themselves.
All three local banks provide property loans for purchases in popular locations such as London, Malaysia and Australia. OCBC also provides home loans for properties in Tokyo and New York, while UOB offers loans for Thailand and China properties.
Bank of China (BOC) is also eyeing the mortgage pie here, offering Singaporeans loans for purchases in less considered places such as Edinburgh in Scotland.
Arguably, Singapore's relatively low mortgage rates - thanks to its low interbank rate - make it more attractive from a rental yield perspective to obtain Sing dollar loans from Singapore banks.
The appeal of offshore loans also rests on various factors including exchange rates and cost of funding.
With Japan being a hot spot now with its upcoming Olympics 2020, BOC Tokyo is offering loans for homes at about 2.8 per cent interest, but the borrower needs to be physically present in Tokyo to sign the loan approval. OCBC is offering a Sing dollar loan for Japanese properties at 3.1 per cent interest, and 3.6 per cent interest if the loan is yen-denominated.
Australian banks' home loan rates are around 5 per cent, so with rental yields of Australian properties hovering at 4-5 per cent, buyers would need to seek tax optimisation on the income tax paid out of the rental income. A Sing dollar loan from a Singapore bank for an Australian property would have an interest of close to 3 per cent - however, the loan will certainly be factored into the TDSR.
Data from Colliers International show that sales transactions of overseas properties to Singaporeans grew 13 per cent in the first quarter from a year ago.
Such transactions are set to rise amid a movement towards global launches whereby units are made available to both local and foreign buyers at the same time, said Peter Allen, sales and marketing director at Londonewcastle, a London-based luxury residential developer.
Nina Davies, Colliers International operations director, told BT that the agency focuses on marketing projects that the Singapore banks are able to provide financing for.
Cherrin Loo, head of international residential sales at Savills Singapore, observed that for projects with low quantum of less than $1 million, many buyers do not require loans as they can afford to pay it all in cash.
Savills typically ties up with local banks that attend its exhibition of overseas properties. "We understand there are some clients that have existing banking relationships with overseas banks and so they may engage them," Ms Loo said.
Investors who buy property and obtain financing outside of Singapore should consider the regulatory framework governing their purchase and financing agreements, including the protection they can expect, said an MAS spokesman.
"They should also be mindful of other risks associated with cross-border property purchases, such as foreign exchange and interest rate risks," he added.

http://www.ura.gov.sg/uol/media-room/new...14-29.aspx
All charts and links there.

URA results out, take a look!

PRIVATE RESIDENTIAL PROPERTIES

Prices and Rentals

Prices of private residential properties decreased by 1.3% in 1st Quarter 2014, following the 0.9% decline in the previous quarter.

Price decline was observed across all segments of the private residential property market. Prices of non-landed properties in the Core Central Region (CCR) declined by 1.1%, following the 2.1% decrease in the previous quarter. In Outside Central Region (OCR), prices declined by 0.1%, following the 1.0% decline in the previous quarter. Prices in the Rest of Central Region (RCR) declined 3.3%, after registering a marginal 0.4% increase in the previous quarter (see Annexes A-1, A-2 & A-62). Prices of landed properties declined 0.7%, following a decrease of 1.0% in the previous quarter.

Rentals of private residential properties decreased by 0.7% in 1st Quarter 2014, greater than the 0.5% decline in 4th Quarter 2013 (see Annexes A-3 & A-4).

Launches and Take-up

Developers launched 1,964 uncompleted private residential units (excluding ECs) for sale in 1st Quarter 2014, fewer than the 2,631 units in 4th Quarter 2013 (see Annex C-1).

Developers sold 1,744 private residential units (excluding ECs) in 1st Quarter 2014, fewer than the 2,568 units sold in 4th Quarter 2013 (see Annex D).

No new EC units were launched for sale in 1st Quarter 2014 (see Annex F). Developers sold 149 EC units in 1st Quarter 2014, fewer than the 691 units sold in 4th Quarter 2013.

Resales and Sub-sales

The volume of resale transactions decreased from 1,206 units in 4th Quarter 2013 to 899 units in 1st Quarter 2014. Resale transactions accounted for 32.6% of all sale transactions in 1st Quarter 2014, compared to 30.5% in 4th Quarter 2013 (see Annex D).

The volume of sub-sale transactions decreased from 174 units in 4th Quarter 2013 to 111 units in 1st Quarter 2014. Sub-sale transactions accounted for 4.0% of all sale transactions in 1st Quarter 2014, lower than the 4.4% recorded in 4th Quarter 2013 (see Annex D).

Supply in the Pipeline

As at the end of 1st Quarter 2014, there was a total supply of 80,2613 uncompleted private residential units (excluding ECs) in the pipeline, compared to 83,702 units in 4th Quarter 20134 (see Annexes E-1 & E-25). Of this number, 29,482 units remained unsold as at 1st Quarter 2014 (see Annexes B-1 & B-2). After adding the supply of 13,691 EC units in the pipeline, there were 93,952 units in the pipeline.

In addition, another 11,042 units (including ECs) will soon be added to the pipeline supply. These units are from Government Land Sales (GLS) sites that had been awarded to developers, but for which planning approvals had not yet been obtained as at 1st Quarter 2014; and Confirmed List sites from the 2H2013 and 1H2014 GLS Programmes that had not yet been awarded (see Annex E-3). If these units are included, there would be about 105,000 private housing and EC units in the overall pipeline supply.

Based on expected completion dates reported by developers, 14,985 units (including ECs) will be completed in the remaining three quarters of 2014. Overall, 19,505 units will be completed in 2014. Another 24,592 units (including ECs) are expected to be completed in 2015. In comparison, about 14,400 units were completed in 2013.

Stock and Vacancy

The stock of completed private residential units (excluding ECs) increased by 3,913 units in 1st Quarter 2014. The vacancy rate of completed private residential units (excluding ECs) increased from 6.2% at the end of 4th Quarter 2013 to 6.6% at the end of 1st Quarter 2014 (see Annex E-1).

(05-05-2014, 07:34 AM)greengiraffe Wrote: PUBLISHED MAY 05, 2014
TDSR pushes some to offshore loans
Banks outside S'pore not obliged to report to credit bureau here

If one is keen to get offshore loans think it is fair to assume that one is savvy sophisticated and a minority. There could be some impact on property prices if you are forced to sell but the soured loans will not hurt our banking system.

You are on your own. Regulations that capture and affect the actions of 90% of the populace are already very effective.

HDB flat , selling 95k below valuation !

Sound unbelievable !


http://www.propertyguru.com.sg/listing/h...t-17493780

(07-05-2014, 12:09 AM)cfa Wrote: HDB flat , selling 95k below valuation !

Sound unbelievable !


http://www.propertyguru.com.sg/listing/h...t-17493780

If cannot use CPF...price will go even lower...


http://www.businesstimes.com.sg/premium/...a-20140507

SINGAPORE] Wheelock Properties's condominium project in Ang Mo Kio, The Panorama, is gearing up for a re-launch this Sunday, with agents saying that new prices could be as much as 10 per cent lower than those at the initial launch.

1 in 3 home buyers 'unaware of how TDSR rules work'
PUBLISHED ON MAY 10, 2014 1:06 AM


Potential buyers at a condominium showflat. The UOB survey, which quizzed 210 Singapore citizens and permanent residents, found that 42 per cent did not know how the cooling measures affect their loan applications. -- ST FILE PHOTO

BY AUDREY KANG
ONE in three home buyers does not understand the new total debt servicing ratio (TDSR) framework for property loans, a survey by United Overseas Bank has found.

The survey, conducted from March 20 to 27, quizzed 210 Singapore citizens and permanent residents on their awareness of the framework. Both private property and Housing Board home buyers took part.

Introduced by the Monetary Authority of Singapore in June last year, the TDSR framework restricts banks from approving home loans if a person's monthly debt obligations exceed 60 per cent of his monthly gross income.

Besides being unaware of how the TDSR framework operates, 42 per cent of the respondents did not know how existing cooling measures affect their loan applications, the survey found.

In addition, 43 per cent were unaware of how the TDSR framework applies to their personal situation.

While 64 per cent said they were aware of how debt is calculated under the TDSR framework, many failed to understand that banks have to look at their total debt obligations, including repayments for unsecured loans and obligations as a guarantor.

This means home buyers often fail to produce credit card statements from all card issuers, information on vehicle loans and documents showing they are a guarantor for other loans.

Ms Chia Siew Cheng, UOB's head of secured loans, said in a statement: "The TDSR framework requires a more holistic view of the home buyer's total debt obligation for property loans.

"Most of the time, home buyers bring inadequate or incorrect documents to support their applications or are not aware that loans are granted based on an assessment of their total outstanding debt, including credit cards."

It also found that 42 per cent of first-time home buyers prefer to do their own research online, while 60 per cent of experienced home buyers choose to speak to mortgage specialists to understand more about the application process and best loan options.

audkang@sph.com.sg