Property Market Sentiments

More private homes resold as prices fall
Published on May 13, 2014 1:23 AM
PRINT EMAIL


By Melissa Tan

MORE buyers jumped into the private home resale market last month as prices slipped to their lowest point in 16 months.

There were 476 non-landed private homes resold in April, the best figures since October last year, the Singapore Real Estate Exchange (SRX) said in a flash estimate yesterday.

Home-seekers appeared to be responding to what seems to be an emerging buyer's market.

An expected influx of completed homes and stiff competition among sellers for a shrinking pool of buyers has hit prices, with analysts tipping that the trend will continue all year.

Resale prices slipped 1.7 per cent from March to April to reach their lowest point since December 2012.

The price drop, combined with the larger number of transactions, suggests more sellers have caved in and lowered prices.

"Sellers have become more realistic," said ERA Realty key executive officer Eugene Lim. "Buyers may also have been attracted back to the resale market by the lower prices due to a slower private resale market."

PropNex Realty key executive officer Lim Yong Hock said some owners may have decided to sell now rather than risk even lower prices later, with a bumper crop of new homes due in the next two years.

Although the number of units that changed hands on the resale market last month was 25 per cent higher than in March, it was still lower than the 649 units resold in April last year.

Resale prices in the city fringe fared the worst last month, tumbling 3.6 per cent from March. That was followed by the city centre with a 2.3 per cent drop over the same period.

Analysts put the declines down mainly to softer leasing demand and reduced interest from investors after home loan curbs.

Rents rose a marginal 0.2 per cent last month after reaching a 27-month low in March, the SRX said yesterday.

Developers have been cutting prices for new projects to move units, meaning sellers of older, completed homes have had to lower asking prices to compete.

However, resale prices in the suburbs eked out a 0.4 per cent increase from March to last month. R'ST Research director Ong Kah Seng said this was likely just a blip.

melissat@sph.com.sg

ATTRACTIVE PRICING
Robust sales at two condo launches at the weekend

One key factor may be pricing, say analysts, who see rebound continuing
Published on May 19, 2014 1:03 AM




WATERFRONT@ FABER: Eighty of the West Coast project’s (above) 210 units sold as of 7pm yesterday. -- PHOTO: TEE ZHUO
COCO PALMS: Some 490, or 82 per cent, of the 600 released units of the Pasir Ris project sold as of 3pm yesterday. -- PHOTO: CITY DEVELOPMENTS


By Tee Zhuo

BRISK sales at weekend launches of two 99-year leasehold condominiums at Pasir Ris and West Coast suggest that the recent rebound in private home sales could be set to continue. Analysts said the robust demand was a good sign, but attractive pricing probably played a large part.

Coco Palms sold 490, or 82 per cent, of the 600 units released as of 3pm yesterday, according to City Developments (CDL), which is developing the project with Hong Leong Holdings and Hong Realty. All one-bedroom units released at the 944-unit project near Pasir Ris MRT station were sold out.

Waterfront@Faber - World Class Land's West Coast project - did moderately well. While final sales numbers were not ready by press time, the last count as of 7pm yesterday put the figure at 80 of the project's 210 units.

Over 300 people had turned up to ballot for homes when The Straits Times visited the launch on Saturday afternoon. Similarly large crowds were also reported for Coco Palms.

Ms Alice Tan, research head at Knight Frank Singapore, said developers recognise that buyers are "very selective" given the cooler property market and are adjusting prices accordingly.

"The disparity between buyers' expected prices and developers' pricing is narrowing," she added.

PropNex marketing manager Carolyn Goh said developers would not be pricing units beyond $1,300 per sq ft (psf), or "what the market can command".

Coco Palms units - which range from one- to five-bedders - averaged about $980 psf, which Ms Goh said was "very attractive". Prices started at $498,000 for a 463 sq ft one-bedder.

First-time buyer Jefper Ng, 25, got his one-bedder at a slightly higher price of $516,000, but still felt it was value for money. He was buying to invest and will likely rent out his unit. "It is hard to find such a price now, especially for a project close to an MRT station," he said.

Ms Tan said would-be landlords could be drawn to Coco Palms' proximity to international schools such as the United World College of South East Asia.

Waterfront@Faber units were between $1,100 psf and $1,350 psf, which Ms Tan noted is "more realistically priced" compared to other condominiums in the west.

For example, MCL Land's sell-out condo J Gateway had units priced $1,480 psf on average. But the project has a better location near the Jurong East transport interchange, while residents of Waterfront@Faber will need to walk 20 minutes to reach the nearest MRT station at Clementi.

Buyers who spoke to The Straits Times were mostly looking to stay in their new homes but had mixed sentiment on the prices. Accountant Elaine Tan, 52, bought a one-bedroom Coco Palms unit at $1,218 psf - higher than the $980 psf average - but said it was "reasonable".

But a 32-year-old, who wished to be known only as Jason, felt the over $850,000 he paid was "slightly more" than what he had expected for a two-bedder at Waterfront@Faber. The project sold mostly larger units to families who already live in the west.

Knight Frank's Ms Tan said those living in the region want to be part of the "West growth story". She cited developments including new Jurong retail malls such as Jem and Westgate.

PropNex's Ms Goh noted that the total debt servicing ratio (TDSR) framework has allowed more "genuine" buyers to enter the market. Introduced in June last year, TDSR restricts banks from approving a home loan if the applicant's monthly debt obligations, including other mortgages and car loans, exceed 60 per cent of his gross monthly income.

The response at the two launches follows similar demand for Hong Leong Holding's 845-unit Commonwealth Towers, jointly developed with CDL, which has reportedly shifted about 270 units.

But another suburban condo is doing less well. Wheelock Properties' 698-unit The Panorama in Ang Mo Kio has sold only 56 of 120 offered units as of end-April since its January launch. Smaller units are expected to be relaunched later this month at a discount of around 10 per cent.

Nevertheless, last month's new private home sales here still jumped 55 per cent to reach 745.

But developers cannot rejoice just yet. Ms Tan noted that pre-TDSR homes sales averaged 1,500 to 1,600 per month.

teezhuo@sph.com.sg

(07-05-2014, 07:58 PM)brattzz Wrote:

(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.

If some restrictions put in place for PR, (eg PR mus sell if they dont work here anymore), more price drop. Or if PR cannot rent out the units, expect more drastic. If HDB goes back to the original intent of housing citizens and not a asset for inflation, the prices should soften further.

(19-05-2014, 12:16 PM)Freenasi Wrote: If HDB goes back to the original intent of housing citizens and not a asset for inflation, the prices should soften further.

No doubt about it.
My question is when are you going to deploy this new measures?



Live with Passion, Lead with Compassion

(19-05-2014, 01:27 PM)chialc88 Wrote:

(19-05-2014, 12:16 PM)Freenasi Wrote: If HDB goes back to the original intent of housing citizens and not a asset for inflation, the prices should soften further.

No doubt about it.
My question is when are you going to deploy this new measures?



Live with Passion, Lead with Compassion

Road of no return , fine tune and continue .

election year coming soon, down with COE and HDB PRICE!! DOWN DOWN DOWN!

2 years to soften the ground lah...

(19-05-2014, 09:33 PM)brattzz Wrote: election year coming soon, down with COE and HDB PRICE!! DOWN DOWN DOWN!

2 years to soften the ground lah...

brattzz,
feel rich?
waiting for GSS?

U are definitely not alone.
Many people are holding back/cash and wait patiently for the day.

only problem is patient is running thin since the supposingly hugh drop does not happen yet.

Quote one of our value buddies says:
It's not about you are right, it's about what if you are wrong?




Live with Passion, Lead with Compassion

Four areas with potential to attract property buyers
Published on May 20, 2014 1:25 AM


By Audrey Kang

PROPERTY experts yesterday singled out four potentially popular areas for home buyers: Jurong, Woodlands, Holland Village and the upcoming Bidadari Estate.

They were taking part in the STProperty Rise Up To The Challenges In The Singapore Property Market forum, held at The Star Performing Arts Centre.

Speakers from SLP International, Fortis Law and PropNex gave advice to more than 700 participants. They were backed by representatives from Dennis Wee Group (DWG), Knight Frank and ERA Realty Network.

Mr Nicholas Mak, SLP International's executive director and head of research and consultancy, said that as a result of the draft masterplan 2013, these four areas are likely to be very popular for developments.

The experts also talked about the likely impact of the upcoming high-speed rail system connecting Singapore to Kuala Lumpur on property prices.

Mr Mak said: "I think the location (of the rail system) will probably be in the west... Properties near the station will benefit, but properties located along the railway, where there are no stations, might see a depreciation due to the noise from the rail system."

He also said the property market here will most likely remain the same in the next two years.

Mr Denka Wee, DWG's head of business service, said mixed developments are gaining favour.

"Mixed developments are not anything new, but private property developers have been catching up lately. In the past, you had HDB buildings with coffee shops and convenience stores. Singapore needs convenience, and mixed developments are becoming more popular as a result."

Despite the slow private property market in the past few months, Mr Eugene Lim, ERA's key executive officer, said there is still demand, especially for homes in the higher price range.

"Sixty per cent of transaction volume now belongs to properties that cost from $800,000 to $1.6 million, and 20 per cent of transaction comes from properties that cost up to $800,000."

Property agents were also advised to be more cautious when dealing with clients, as there have been lawsuits brought by disgruntled buyers and tenants.

audkang@sph.com.sg

(20-05-2014, 07:59 AM)greengiraffe Wrote: Four areas with potential to attract property buyers

PROPERTY experts yesterday singled out four potentially popular areas for home buyers: Jurong, Woodlands, Holland Village and the upcoming Bidadari Estate.

They were taking part in the STProperty Rise Up To The Challenges In The Singapore Property Market forum, held at The Star Performing Arts Centre.

If you missed out on the Singapore Property forum, nevermind.
Propnex is organising another forum called "Consumer Empowerment Seminar" next Tuesday, 27 May 2014 7:00 PM at Kallang Theatre

If you are available, just give me a ping and I'll get a complimentary ticket for you.

See you.

"Property agents were also advised to be more cautious when dealing with clients, as there have been lawsuits brought by disgruntled buyers and tenants."

Any idea why this is specifically highlighted and what the issues are ?