SINGAPORE JUST SOLD ITS MOST EXPENSIVE CONDO EVER

SINGAPORE JUST SOLD ITS MOST EXPENSIVE CONDO EVER

July 11, 2019

Singapore just sold its most expensive condo ever

British billionaire James Dyson, inventor of the bagless vacuum cleaner, has snapped up the most expensive apartment in Singapore, where his company plans to build an electric car.

Earlier this week, Dyson and his wife, Deirdre made headlines after they reportedly paid S$73.8 million for a triplex super penthouse at the ultra-luxe Wallich Residence (pic). The purchase is said to be the most expensive condo transaction ever in the city-state.

Based on title records seen by Reuters, Dyson and his wife bought the Wallich Residence penthouse on 20 June, 2019.

Once valued at $100 million, the three-storey property has an area of 21,000 sq ft and comes with five bedrooms, a private garden, a 600-bottle wine cellar, pool and jacuzzi. It can also be accessed by its own lift and boasts city views including the Marina Bay Sands, showed marketing documents.

The 99-year leasehold penthouse at Tanjong Pagar Centre spans across the 62nd to 64th floors of Guoco Tower, which was built by developer GuocoLand.

Find out more about Tanjong Pagar, a colourful and tidy corner of Singapore’s CBD!

In January, the 72-year-old Dyson announced plans to relocate his company’s head office to Singapore from Britain to be closer to its fastest-growing markets.

With products including bagless vacuum cleaners, air purifiers, hair dryers and bladeless fans, his company is also looking at building its first electric car in Singapore.

“Given the decision to locate the headquarters in Singapore and the growing focus of the company’s business in the region, of course James Dyson has bought a property there,” said a Dyson spokesman, without offering further details on the purchase.

Info courtesy - Property Guru

66% OF SINGAPOREANS SAY PROPERTIES ARE ‘Value For Money’

66% OF SINGAPOREANS SAY PROPERTIES ARE ‘Value For Money’

April 23, 2019

Despite perceived high prices, 66 percent of Singaporeans still consider property within the city-state to be good ‘value for money’.

Despite the perceived high prices, many Singaporeans remain positive of the local property market, findings from the latest PropertyGuru Consumer Sentiment Survey showed.

This comes as 41 percent of respondents said they were satisfied with Singapore’s real estate climate.

With this, the Sentiment Index increased to 45 points during the second half of 2018 from 39 in the first half of 2018. The index measures current real estate satisfaction, real estate climate, affordability, interest rate situation, property prices and perceived government efforts.

And while 88 percent of respondents believe that property prices are high and 72 percent expect prices to increase over the next six months, 66 percent still consider property within the city-state as not only affordable but also good ‘value for money’.

In fact, 64 percent were able to acquire a home at current prices and within their current incomes, while 27 percent intend to purchase a home in the following year.

“With prices in the private property market starting to see declines from cooling measures, and the HDB resale market remaining flat, buyers are likely to consider entering the market in 2019,” said Jeremy Williams, chief business officer of PropertyGuru Group.

“Furthermore, with at least 40 new launches expected to hit the market this year, private property buyers will have plenty of options to choose from. Despite macroeconomic uncertainties, we see from our sentiment survey that there remains a firm belief in the long-term potential of Singapore’s property market.”

The survey also showed increased intention among respondents to buy a condominium (by 22 percent), mixed-use development (by 32 percent) and landed property (20 percent) within the next six months.

For those looking to upgrade to private property, positive perception increased the highest for executive condominiums (ECs) at six percent.

Meanwhile, the survey also noted a growing trend among millennials of moving out of their parents’ homes earlier.

At least 24 percent of respondents who moved out of their family homes were 27 years of age and below.

Info Courtesy - Property Guru

PROPERTY INVESTMENT SALES DROP IN Q1

Property Investment Sales Drop In Q1
April 17, 2019

The residential sector saw a drop in investment sales due to less activity in the good class bungalow and collective sales markets.
Singapore saw real estate investment sales fall 21 percent quarter-on-quarter and 52 percent year-on-year to $5.3 billion during the first quarter of 2019, reported Singapore Business Review citing a Colliers International research report.
The residential sector made up 32 percent of total investment sales for Q1 2019 at $1.7 billion.
The figure is down 82 percent year-on-year as all sub-segments, including good class bungalows and collective sales witnessed declines.
On a quarterly basis, residential investment sales jumped 48.2 percent on the back of healthy public land sales.
The report noted that two residential Government Land Sales (GLS) sites at Kampong Java Road and Tampines Avenue 10 were among the top five biggest transactions in Q1 2019.
Despite the slow private residential investment sales, Colliers expects volumes to pick up by the middle of the year, possibly witnessing more activity within the en bloc sale market by the end of 2019 as sentiment improves. Meanwhile, Colliers also revealed that four of the five biggest transactions were GLS deals. “Public land sales booked a bumper quarter, surging 17-fold quarter-on-quarter and 32 percent year-on-year to $2.1 billion. They accounted for 40 percent of total investment sales in Q1 2019,” it added.
For the whole of 2019, Colliers expects total investment sales volume to hit $38 billion, which is on par with the level seen last year.



Info courtesy - PropertyGuru

SINGAPORE STILL WORLD’S 2ND MOST EXPENSIVE HOUSING MARKET

SINGAPORE STILL WORLD’S 2ND MOST EXPENSIVE HOUSING MARKET

April 12, 2019

This comes despite the government’s introduction of new cooling measures last year which saw property price growth drop a little.

Singapore has once again emerged as the world’s second most expensive residential property market behind Hong Kong, revealed a CBRE report which compared private residential properties across 35 key global cities.

Hong Kong maintained its top position as average homes there cost US$1.235 million or US$2,091 psf, while average homes in Singapore cost US$874,372 or US$1,063 psf.

Shanghai also remained in third spot, with average home prices at US$872,555 (US$714 psf).

“As a financial hub, Singapore is known for its skilled talent, ease of doing business, top-notch infrastructure, as well as economic and political stability. Singapore has always been an attractive location for multinational companies to establish their regional headquarters. These factors influence the cost of property ownership in the city,” said Desmond Sim, head of research for CBRE in Southeast Asia.

The report, however, noted that average price growth in Singapore was slower at 1.1 percent, compared to the 5.5 percent growth registered in Hong Kong and 11.2 percent in Shanghai.

The report revealed that these three top cities have all introduced cooling measures to keep prices under control.

Singapore’s introduction of new cooling measures last year saw property price growth drop for the second straight quarter in Q1 2019 following five consecutive quarters of robust growth since Q3 2017, said Sim.

“Coupled with increasing supply and weaker sentiments, prices are likely to moderate or remain flat from this year going forward,” he added.

Other Asian cities in the top 10 list are Shenzhen and Beijing, which were in 5th and 9th place respectively.

Completing the top 10 list are Vancouver (4th), Los Angeles (6th), New York (7th), London (8th) and Paris (10th).

Info courtesy – Property guru

Singapore Home Prices Down In Q1

Singapore Home Prices Down In Q1

April 2, 2019

The drop in private home prices wasn’t surprising considering the weaker market sentiment following the introduction of new cooling measures last year, said analysts.

Private home prices fell for the second straight quarter, dropping 0.6 percent in the first quarter of 2019 from the previous three-month period, according to the Urban Redevelopment Authority’s (URA) flash estimates released on Monday (April 1).

The fall in private home prices is “generally unsurprising” given the weaker market sentiment following the introduction of new cooling measures in July, said Tricia Song, head of research for Singapore at Colliers International.

Can you afford a condo? Check your affordability now

In fact, caveats registered to-date in URA Realis showed that there were 3,215 transactions of private homes in Q1 2019, a sharp 40 percent year-on-year decline from the 5,328 units seen in Q1 2018, noted Ong Teck Hui, senior director of research and consultancy at JLL Singapore.

“Buyers have become more cautious and selective and not in a hurry to purchase, as prices are easing and the significant supply in the sales pipeline would be offering more options to consider,” he said.

The Core Central Region (CCR) led the price decline, falling 2.9 percent from the previous quarter or the sharpest quarterly decline since Q2 2009 when prices fell 5.2 percent.

The Rest of Central Region (RCR) saw prices dip 0.2 percent, while prices in the Outside Central Region (OCR) were unchanged.

Meanwhile, resale prices of HDB flats also continued a downward trend, declining 0.3 percent quarter-on-quarter to 131 in the first quarter of 2019.

Find HDB flats for sale or read our HDB guides and BTO guides

Eugene Lim, key executive officer at ERA Realty Network, noted that the drop is similar to the 0.2 percent decrease registered in the preceding quarter.

“The concern of depleting leases of older resale HDB flats was in the spotlight earlier this year. However, PM Lee has addressed this concern in his National Day Rally speech, where VERS and the new HIP programmes were introduced. In this regard, we have not seen an immediate impact on resale flat prices,” he said.

Over the long term, however, Lim expects a change of mindset towards older HDB flats as the policies start to be implemented.

With this, he expects this year’s HDB resale demand to be resilient as an estimated 27,000 flats reach the minimum occupation period and the cooling measures’ side effects drive more buyers on a tighter budget to the HDB resale market.

Some en bloc beneficiaries may also choose to downgrade to HDB flats to keep more funds for other uses.

HDB also announced that it will offer around 3,400 Build-To-Order flats in Tengah, Woodlands and Kallang Whampoa next month. It will also hold a concurrent Sale of Balance Flats exercise.

Info courtesy – Propertyguru

PRACTICE GUIDELINES FOR THE SALE & MARKETING PROCESS OF FOREIGN PROPERTIES

PRACTICE GUIDELINES FOR THE SALE & MARKETING PROCESS OF FOREIGN PROPERTIES
The purchase of foreign properties carries additional risks not associated with local property transactions.
Property agencies and agents therefore play an important role in carrying out due diligence and advising consumers on the risks involved in purchasing foreign properties located outside Singapore, regardless of whether they are developed by foreign developers or Singapore developers, or whether they are owned by foreigners or Singaporeans. .
If you are marketing or facilitating the sale of foreign properties in Singapore, remember to abide by the Council for Estate Agencies’ Practice Guidelines regarding the conduct of such estate agency work.
The guidelines seek to instill professional practices that property agencies and agents must adopt in the sale and marketing process of properties located outside Singapore, as well as to better protect consumers’ interests.The sale and purchase of a foreign property is subject to the laws of the country where the property is located, with differing legal processes and financing practices.

This set of guidelines on the marketing of foreign properties took effect on 1 December 2018, superseding those issued in 2014 (PG01-14).

Let’s take a look at some of the key changes to the guidelines:

• In the pre-marketing phase, property agencies must now confirm that guarantees made in advertisements, e.g. return on investments (ROI) are binding on the vendor (such as the developer or underwriter who owns and sells the property purchased from the developer).

• Due diligence checks must be conducted by Estate agents. Due diligence must be conducted on the vendor and his claims.Due diligence must also be conducted on the foreign property, to verify the specifications and other material information relating to the foreign property, such as property title, tenure, location, size, features, amenities, etc.

• Property agencies must check whether there is information that is adverse or potentially adverse about the vendor or the property. This can be done by screening for news in the mainstream or social media.

• If property agencies assess that there are adverse or potentially adverse findings, they must inform consumers in writing.

• The agencies must also see the contractual documents providing these guarantees. If the figures indicated in the advertisement are not current, the date and time of the data must be stated in the advertisement e.g. ROI from previous years.

• Engagement of a Third Party to Conduct Due Diligence - Where an estate agent engages or depends on a third party (e.g. a company that provides compliance/accounting services, a foreign estate agent or a local representative in the country where the foreign property is located) to perform due diligence checks, the estate agent shall verify and ensure that the third party is qualified and appropriate to perform the due diligence. Estate agents shall determine the scope of due diligence to be performed by the third party and shall assess the results delivered accordingly.

• If a salesperson intends to represent a vendor or purchaser in a foreign property transaction, he shall seek approval from his estate agent to do so. 

• Estate agents shall ensure that they possess the necessary and adequate professional indemnity insurance for the conduct of estate agency work to market foreign properties.

• The agent must also be able to advise on the due diligence, risks, payment and financing for the property. Consumers are advised to also conduct their own due diligence and proceed at their own risk. 

• Estate agents and salespersons shall explain to consumers the arrangements for the signing of transaction documents (e.g. Sale and Purchase Agreements) and advise them to seek independent legal advice to explain the terms and conditions of the documents before they sign them. 

• If the documents are not provided in English, property agencies must obtain an English translation from reasonably qualified translators and provide the documents to consumers before these are signed.

• Salespersons who are marketing on behalf of the vendor cannot represent consumers in the same transaction.

• Estate agents and salespersons shall explain to consumers the dispute resolution mechanism that will apply in the event of a dispute relating to the purchase.They shall also inform consumers about the applicable jurisdiction where a dispute will be resolved, as well as the governing law of the Sale and Purchase Agreement (or equivalent contract).

• Must keep all records and documents.

The purchase of foreign properties is not without risk. However, if estate agents and salespersons do their work with due diligence and conduct themselves professionally throughout the entire transaction when they market foreign properties, the potential risks to all parties involved (estate agents, salespersons and consumers) will be reduced. In the event of any dispute, estate agents and salespersons will also know their rights and liabilities clearly.


Do refer to the Practice Guidelines (click on the link) for the full set of guidelines on the sale and marketing process of foreign properties in Singapore.


(Information accurate as at 29 March 2019.)







Info courtesy  - The Council for Estate Agencies.

Resale Condo Prices Down 0.5% In February, NUS Index

Resale Condo Prices Down 0.5% In February, NUS Index

March 29, 2019

Resale HDB flats

Resale prices of non-landed private homes in Singapore fell by 0.5 percent in February, continuing the revised 0.2 percent decline registered in January, revealed latest flash estimates of the NUS Singapore Residential Price Index (SRPI).

Excluding small units, prices declined by 1.5 percent in the central region, which is steeper compared to the 0.4 percent drop seen in January.

Prices in the non-central region, however, rose 0.2 percent, reversing the 0.1 percent fall in January.

The central region sub-basket includes properties located in districts 1 to 4 and 9 to 11, while properties found in other districts fall under the non-central region sub-basket.

Meanwhile, small units measuring 506 sq ft and below saw prices slip 0.2 percent, an improvement from the 0.7 percent drop recorded in January.

Info courtesy – Propertyguru

REDAS Calls On Government To Tweak Property Cooling Measures

REDAS Calls On Government To Tweak Property Cooling Measures
February 20, 2019

Last year, the government raised the ABSD payable by developers from 15 percent to 30 percent, of which five percent is non-remittable.

Real Estate Developers’ Association of Singapore (REDAS) president Chia Ngiang Hong has urged the government to review the additional buyer’s stamp duty (ABSD) policy to avoid the ‘land grab’ situation seen in 2017 and 2018, reported Channel NewsAsia.

In a surprise move in July, the government raised the ABSD payable by developers from 15 percent to 30 percent, of which five percent is non-remittable. The time frame to sell out the project was also capped at five years.

Get more details on the property market outlook for 2019 here

Speaking at a REDAS Chinese New Year event, Chia noted that the ABSD “has pushed all developers to exhaust their inventory at around the same time, and could partly account for the land price escalation in 2017 and 2018 because everyone basically ran out of inventory at the same time”.

And while excessive land-banking should be discouraged, he believes that some flexibility in the time-frame within which to sell the project should be provided.

“If the ABSD is not reviewed, we can expect a repeat of the 2017 to 2018 ‘land grab’ situation in four to five years’ time. When the price of the raw material goes up, we can expect the price of the end product to increase as well,” he noted.

Chia also called for a review of the loan-to-value limits for first-time property buyers as well as the upfront payment of ABSD for HDB owners looking to upgrade to a private home.

“I strongly believe that it is the intention of the government to assist to fulfil the aspirations of many young Singaporeans to own a private home. Hence, it may be timely to review and tweak some existing policies and measures to help Singaporeans, particularly first-timers, to achieve their objective,” he said.

Home buyers looking for Singapore Properties may like to visit our Listings, Project Reviews and Guides.




Info courtesy – Propertyguru

Property Cooling Measures’ Impact Bigger Than Expected

Property Cooling Measures’ Impact Bigger Than Expected
January 11, 2019


DBS bank’s property loans segment has dropped by 40 to 50 percent since the latest cooling measures were announced.

The government’s surprise property cooling measures in July 2018 had “more bite” than anticipated, with DBS bank’s property loans segment dropping by 40 to 50 percent – way below the bank’s forecast of a 20 to 25 percent reduction, said DBS CEO Piyush Gupta.

At the start of the year, the bank expected to add $4 billion to its mortgage loan book, reported Today Online.

More: Outlook 2019: Private Housing Supply In Singapore To Surge In 2019

The figure was forecasted to drop to $2.5 billion to $3 billion following the implementation of the property curbs. However, the amount of property loans posted by the bank stood at under $2.5 billion only.

As part of the July cooling measures, the government raised the Additional Buyer’s Stamp Duty (ABSD) for individuals by five percentage points, while entities faced a 10 percentage point hike. The loan-to-value limits were also tightened by the government.

Despite this, Gupta still expects Singapore’s economy to grow by 2.5 to 3.0 percent this year.

He cited the interest rate hikes by the US Federal Reserve, trade tensions between the United States and China, Brexit, and China’s economic slowdown as the macroeconomic headwinds expected to hit the global markets this year.

And while Gupta foresees a slowdown in the global economy this year, as evidenced by the drop in the Purchasing Managers’ Index (PMI) in the US, Europe and China, he believes that this “does not portend any significant recession”.

The PMI measures the manufacturing activity within an economy.

“I don’t see any recession coming at all. I think the slowdown is part of the normal cyclical slowdown,” he said.



Info courtesy – Propertyguru

Singapore Q3 Economic Growth Disappoints

Singapore Q3 Economic Growth Disappoints
November 23, 2018

Singapore’s gross domestic product (GDP) rose by 3.0 percent quarter-on-quarter on a seasonally-adjusted and annualised basis in Q3 2018, surpassing the previous quarter’s increase of 1.0 percent, reported the Business Times.

On an annual basis, the city-state’s economy rose by 2.2 percent.

However, both the quarterly and annual growth fell below forecasts of 4.2 percent and 2.4 percent respectively, according to median projections by 11 experts in a Reuters poll.

In particular, Singapore’s construction industry dipped 2.3 percent on a quarterly basis due to softer public-sector construction activities. The marginal increase is also slower than the 4.2 percent quarter-on-quarter gain in Q2 2018.

“There are concerns regarding the risk aversion and faster-than-expected hikes in interest rates causing excessive volatilities in the financial markets, and the property cooling measures weighing down on the real estate and construction sectors in the coming quarters,” said DBS economist Irvin Seah.

Looking ahead, the Ministry of Trade and Industry (MTI) expects Singapore’s economy to expand by 3.0 to 3.5 percent for the whole of 2018. But the agency thinks that GDP growth could weaken to 1.5 to 3.5 percent next year. This is due to declining global demand for electronics and the ongoing US-China trade war.

“Singapore’s economy is feeling the tremors from a slowing global economy and disruptions to global trade,” noted Maybank Kim Eng economists Lee Ju Ye and Chua Hak Bin.

Nonetheless, MTI believes that construction activity will likely recover by 2019, as works for contracts awarded since the second half of 2017 will likely start in the next few quarters.

Home buyers looking for Singapore Properties may like to visit our Listings, Project Reviews and Guides.

There are concerns that the recent property cooling measures could weigh down on the real estate and construction sectors.



Info courtesy – Propertyguru

CONDOS PASS BY-LAWS TO CURB SHORT-TERM RENTALS

CONDOS PASS BY-LAWS TO CURB SHORT-TERM RENTALS

February 8, 2017

The government is considering creating a new building-use category for private homes whose owners wish to offer their property for short-term rent.

In light of the growing number of homes offered for short-term rentals, the management committees of some condominiums have taken matters into their own hands by passing by-laws aimed at preventing the misuse of apartments, reported TODAY online.

The measures taken include forcing residents to present tenancy agreements, placing notices of short-term rental guidelines at lifts and lift lobbies, and limiting access to the condominium through the main lobby.

On Monday (6 February), Parliament passed laws that disallows the use of private homes for short-term stay, effectively making it illegal for owners to rent out their property via online homestay portals like Roomorama and Airbnb, reported Channel NewsAsia.

National Development Minister Lawrence Wong, however, revealed plans to create a new building-use category for private homes whose owners wish to offer their property for short-term rent. He noted that the authorities are also looking at reducing the six-month minimum rental period.

“But whatever adjustments we may make to this minimum period, it is clear that we will not accommodate residential homes that are put up for daily rental,” said Wong.

“Such premises which are rented out daily ought to be regulated more like hotels rather than residential homes, and should be subject to relevant license and conditions to ensure proper standards.”

In a separate report by Channel NewsAsia, Airbnb said while it is “committed to working with the government to adopt a model of home-sharing that works for Singapore”, it is disappointed that discussion on the issue has not moved forward.

Info courtesy – Propertyguru

RESIDENTIAL VACANCY RATE REMAINS HIGH

RESIDENTIAL VACANCY RATE REMAINS HIGH

February 6, 2017

The high vacancy rates are due to the huge supply of new homes and continued muted leasing interest.

The overall vacancy rate of private residential properties in Singapore remains high due to a myriad of factors, one of which is the significant number of new completions, reported the Straits Times.

Last quarter, there were 348,080 private homes available here, of which 29,197 were unoccupied, translating to a vacancy rate of 8.4 percent, based on data from the Urban Redevelopment Authority (URA).

Although this figure is slightly lower than the 8.9 percent recorded in Q2 2016, which was a 16-year high, it still exceeded the 7.8 percent and 8.1 percent seen in the last quarters of 2014 and 2015 respectively, said R’ST Research Director Ong Kah Seng, who remains worried about the elevated vacancy level.

Exacerbating the situation is the huge supply of private homes, as 20,000 units were built last year, compared to 13,150 units in 2014 and 18,971 in 2015.

“High vacancy rates in 2016 are overall propelled by a combination of factors – substantial new private residential completions, and continued muted leasing interest amid crimped or no housing allowances by many foreign professionals,” noted Ong.

Another reason is that some owners may not want to reduce their rental prices, shared Colin Tan, Director of Research and Consultancy at Suntec Real Estate Consultants.

“The fact that there are many unoccupied units means that the majority of owners of units that have been completed over the past few years were speculators or investors,” he said.

For example, many units at The Shore Residences in the East Coast have been left vacant for long periods of time, said Jose Trinidad, a Filipino expatriate staying in the 408-unit residential project completed in 2013.

“Most of the people living here are renting and the competition for tenants is very high nowadays. Many units are empty because the landlord just cannot find tenants,” noted the 38-year-old auditor.

An online check revealed that there are currently 55 units for lease at the project and 90 up for sale, but it is unknown how many of them are unoccupied.

Info courtesy – Propertyguru

HDB RESALE TRANSACTIONS DOWN 9.1% IN Q4

HDB RESALE TRANSACTIONS DOWN 9.1% IN Q4

January 26, 2017

Resale prices of HDB flats dipped by 0.1 percent in the fourth quarter of 2016, according to more complete data published by the Housing Board.

For the whole of 2016, the Resale Price Index slipped by 0.1 percent.

On the other hand, resale transactions fell by 9.1 percent to 5,012 cases in Q4 2016 from 5,514 cases in the previous quarter. On an annual basis, resale transactions rose by 7.8 percent to 20,813 cases last year from 19,306 cases in 2015.

The HDB revealed that it approved 10,678 applications for subletting of flats in Q4 2016, down by one percent from the 10,789 applications approved during the previous three-month period.

The number of HDB flats sublet rose by one percent to 52,941 units as at 31 December 2016 from 52,394 units in the quarter before.

Looking ahead, the HDB revealed that it will offer around 17,000 new flats for sale in this year’s Build-To-Order (BTO) exercises.

In fact, about 4,100 flats in Punggol, Clementi, Tampines and Woodlands will be offered in the first BTO exercise in February 2017, it said.

Info  courtesy - Propertyguru

PRIVATE HOME PRICES DOWN 3.1% IN 2016: URA DATA

PRIVATE HOME PRICES DOWN 3.1% IN 2016: URA DATA

January 26, 2017

Kembangan Residential Area in Singapore

Aerial view of private properties in the Kembangan area.

Excluding executive condominiums (ECs), prices of private homes in Singapore dipped by 0.5 percent in Q4 2016 following a 1.5 percent drop in the previous quarter. For the whole of 2016, prices fell by 3.1 percent versus the 3.7 percent decline in 2015, revealed more detailed statistics released by the Urban Redevelopment Authority on Thursday (26 January).

Last quarter, the cost of non-landed houses slid by 0.8 percent, an improvement from the previous 1.2 percent decline. Conversely, prices of landed properties increased by 0.8 percent, reversing the 2.7 percent fall in Q3 2016. Consequently, prices in each segment declined by 2.6 percent and 4.5 percent respectively for the whole of 2016.

Rental prices of private homes also fell by just one percent in Q4 2016 versus the 1.2 drop in the previous quarter. For the whole of 2016, rents fell by four percent compared to the 4.6 percent drop in 2015.

Moreover, developers launched 2,944 uncompleted private units for sale during Q4, up from the 1,609 units recorded in Q3. Last year, a total of 7,877 units were released compared with 7,056 units in 2015.

Excluding ECs, 2,316 private homes were sold in Q4 2016 versus the 1,981 units taken up in the previous quarter. Last year, 7,972 units were sold, exceeding the 7,440 units seen in 2015.

In the EC segment, 93 units were launched, while 734 units found buyers last quarter, a far cry from the 862 units launched and 1,398 units moved in Q3. Nevertheless, developers sold 3,999 EC units for the whole of 2016, surpassing the previous year’s 2,550 units.

As for the secondary market, there were 1,944 resale transactions in Q4 2016, down from the 2,477 units transacted in the previous quarter. The sale of secondary homes accounted for 44.3 percent of all deals, a contraction from the 53.9 percent market share in Q3 2016. Overall, 7,901 resale units were sold last year, outstripping the 6,160 transactions in 2015.

Moving forward, 18,307 private homes (including ECs) are expected to be completed this year, while another 13,785 units are targeted to be ready by 2018.

Info  courtesy - Propertyguru

SINGAPORE FALLS TO 7TH PLACE FOR HIGH-END RENTALS

SINGAPORE FALLS TO 7TH PLACE FOR HIGH-END RENTALS

January 25, 2017

Singapore falls to 7th place for high-end rentals

Singapore has fallen three spots this year for high-end rental accommodation in Asia.

Singapore has emerged as the seventh most expensive destination in Asia for high-end rental accommodation this year, down from fourth place in 2016, reported the Business Times.

Hong Kong retained its position as Asia’s most expensive location, with monthly rent for an unfurnished three-bedroom apartment hitting US$10,189 (S$14,473) on average.

Tokyo and Seoul grabbed the second and third spots respectively, followed by Yokohama, Shanghai and Beijing.

Mobility solutions provider ECA International’s latest Accommodation Survey showed that average rents in Singapore have dropped significantly since 2012, with an unfurnished three-bedroom apartment in popular expatriate neighbourhoods averaging US$4,535 (S$6,443) per month.

Lee Quane, Regional Director for Asia at ECA International, attributed the drop in rent to several factors.

“Firstly, expatriate numbers in Singapore have stabilised recently, which has curbed demand for rental property in popular expatriate neighbourhoods. Furthermore, improved transport links in Singapore have led to movement away from historically popular districts such as 9-11 to cheaper locations,” he said.

“Singapore has also received more assignees from places such as China, Malaysia, Taiwan and Thailand whose housing budgets are likely to be lower. These factors, combined with an increased supply of property in the market, have caused landlords to respond by reducing rental prices,” added Quane.

Info  courtesy - Propertyguru

SINGAPORE HOME PRICES REMAIN DEPRESSED

SINGAPORE HOME PRICES REMAIN DEPRESSED 
September 20, 2016

House prices in the city-state fell almost three percent during the year to Q2 2016.
Singapore’s housing market is still weak, with house prices falling 2.94 percent during the year to the second quarter of 2016, revealed a report from Global Property Guide.
But demand is now stronger, with 2,256 new units sold in Q2, up 59 percent from the previous quarter and 6.6 percent higher than a year ago, data from the Urban Redevelopment Authority (URA) shows.
Supply is also increasing, with the number of uncompleted units launched up 13 percent year-on-year to 2,371 units in Q2.
Meanwhile, Hong Kong is the worst performer in Asia, with residential property prices down 10.73 percent during the year to Q2, followed by Mongolia, which saw prices plunge 10.55 percent during the same period, stated the report.





Info Courtesy - PropertyGuru

YIELDS NOT PLUMMETING DESPITE FALLING RENTS

YIELDS NOT PLUMMETING DESPITE FALLING RENTS

June 22, 2016

The median gross rental yield of non-landed private homes in Singapore is around 3.2 percent.

Despite the drop in residential rents, yields, which represent the annual rent as a percentage of the property’s value, have not plunged as some had expected, reported The Straits Times.

According to Germaine Ng, who recently found a tenant for her condominium unit near Yew Tee MRT station, yields are a little better than putting her money in the bank.

Ng managed to rent out her three-bedroom unit for $2,800 per month, down from the previous price of $3,300, after three months of marketing.

Aside from paying about $300 in maintenance fees, Ng polished the floor and repainted the unit for around $2,200 in all. She is also adding furniture as requested by her tenant.

Taking into account the vacant periods and other factors, the yield is around two percent, based on the apartment’s estimated value of $1.2 million.

“I’m just glad someone is taking it,” she said.

In May, the island-wide median gross rental yield stood at around 3.2 percent, based on median rents of $3.26 psf and median prices of $1,223 psf, revealed a Savills report.

This is a slight drop from the 3.7 percent gross median yield registered a year earlier, based on median rents of $3.45 psf and median prices of $1,115 psf.

A person who bought a property in May 2015 and rented it out from May this year would enjoy a gross yield of around 3.5 percent.

Savills Singapore Research Head Alan Cheong noted that the decline in yields reflects not only falling rents, but also a slight increase in median prices.

This may imply that abundant cash within the system is being used to purchase fixed assets. “In a world of uncertainty, people may have greater faith in owning physical assets rather than other forms of investments,” said Cheong.

“While there is no denying the fact that (rental yields) are falling, even after netting off expenses, there is still a big spread between rental yields and interest rates.”

Info Courtesy - PropertyGuru

MORE FOREIGN WORKERS IN SINGAPORE, BUT RENTS STILL FALLING

MORE FOREIGN WORKERS IN SINGAPORE, BUT RENTS STILL FALLING

June 2, 2016

Rent prices in the Orchard Road area have been particularly hard hit.

Even though more foreigners are coming to Singapore to work, rents of residential properties continue to fall further, reported CNBC.

Based on data from the Ministry of Manpower (MOM), the number of overseas workers in the country, excluding domestic helpers, rose by more than 22,000 in 2015 on an annual basis. But this is still a far cry from the 149,000 added in 2008 before more stringent rules on foreign manpower took effect.

However, the government’s rental index has reported a decline of roughly 10 percent since 2013, while landlords, especially those leasing out high-end homes, have seen bigger rental drops.

For example, Panache Management’s Chief Executive, Alexander Karolik Shlaen, reduced the monthly rent for his unit to below $8,000, down 40 percent from $13,000 in 2008.

At the Four Seasons Park condominium in District 10, the monthly rent for a 2,200 to 2,300 sq ft unit was slashed to $7,800 compared to $10,000 between 2013 and 2015.

According to experts, one reason why rents are still falling despite the continued influx of foreign workers is that the new wave of expatriates earn less than previous groups.

These new workers could mainly be ‘S Pass’ holders rather than employment pass holders. The former earn at least $2,200 per month, while the latter have a minimum monthly salary of $3,300, said Satish Bakhda, COO of Rikvin Singapore, which helps firms apply for work permits for foreigners.

In addition, fewer foreigners from the well-paid financial industry are coming to Singapore, noted Kelly Tang Robinson, an agent with Land Vista Property Network.

“There’s almost like zero relocation here (among bankers),” she said. Although there are still some who are searching for accommodation, many are leaving the country.

Furthermore, financial institutions here now prefer to hire Singaporeans. “With the banking economy not doing so well, it’s better to use locals as they have to pay more for foreigners,” said Bakhda, adding that more workers from the oil sector are also leaving amidst a slump in crude prices.

Info Courtesy - PropertyGuru

CAR LOAN RULES EASED, PROPERTY MEASURES NEXT?

CAR LOAN RULES EASED,  PROPERTY MEASURES NEXT?

May 28, 2016

The Monetary Authority of Singapore (MAS) this week raised the maximum loan-to-value (LTV) ratio for motor vehicles to 60 to 70 percent, from 50 to 60 percent previously. In addition, the maximum loan tenure will be raised to seven years from five years.

What does this mean for the property market? In a report released on Friday (27 May), Credit Suisse said: “With the weakening macro outlook, easing of property cooling measures would be one of the range of policies the government can use to combat a slowdown.

“We believe the market could start to price in an increasing probability of property measures (which we expect in 2H 2016),” added the report.

The government has repeatedly ignored calls from developers to review the property cooling measures as prices haven’t fallen that much.

Housing prices in Singapore only fell by 1.2 percent since September 2015 and nine percent from its highest level in September 2013. Between 2003 and its peak, prices grew by a whopping 92 percent.

Info courtesy -  Property Guru

SLUGGISH RENTAL MARKET FORCES HOMEOWNERS TO LIST ON AIRBNB

SLUGGISH RENTAL MARKET FORCES HOMEOWNERS TO LIST ON AIRBNB

May 23, 2016

The difficulty in finding long-term tenants amidst the sluggish residential rental market has forced some owners of private condos in Singapore to offer short-term rentals via Airbnb, reported The Sunday Times.

The practice of short-term rentals is illegal in Singapore.

“The rental market now is horrible. I started doing this to defray my mortgage and maintenance costs on the apartment,” said a 56-year-old entrepreneur, who began leasing out his condominium unit through the home-sharing website at the end of last year.

Since then, he has accommodated around 20 groups of visitors at his condo on the city’s outskirts for about $150 per night, which is twice as cheap as a four-star hotel in the vicinity.

“Visitors to Singapore may not have the budget for luxury hotels and may not like hostels,” he noted.

“They like staying in a condo because it’s almost like a hotel suite. They can even cook and do their laundry,” added the businessman who asked to remain anonymous, as the practice of renting out a private home here for less than six months is illegal.

Meanwhile, the founder of a tech start-up who rents out two rooms in his Buona Vista condo, revealed that he occasionally hosts Singaporeans on weekends.

“They want to buy a place here and get a feel of the neighbourhood,” said the 33-year-old Airbnb ‘superhost’, signifying that he has received many positive reviews from his guests.

But most of his visitors are research students and foreign professionals who need to stay in Singapore for several months.

However, not all of his experiences with guests are positive.

“Some treat me like a hotel boy and want me to do everything for them,” shared the start-up founder. Some visitors even stole two towels from his flat, others do not clean up after using the kitchen, while a few forgot to turn off the air-con when they went out.

“It’s very time consuming. We have to be there to open the door for guests, clean up the house, and get calls in the middle of the night from those who lock themselves out of the room,” he added.

Info courtesy -  Property Guru