Q3 private home sales: Blame it on the Hungry Ghosts…again!

According to our de facto local English newspaper, the number of private home sales in Q3 2012 was 5,934. This is sharply down from the 10,780 transactions recorded in Q2.

And the lunar seventh month is (again) being blamed as the ‘culprit’. It is said that superstitious home seekers avoid buying homes during the inauspicious lunar seventh month period, which cuts across half of August and September.

New home sales were down more than 50% – from 6,007 in Q2 to 2,659 in Q3.

However, some projects managed to buck the trend.  The 154 units at One Dunsun Residences in Jalan Dunsun were almost sold out within two weeks despite launching towards the end of August. Kovan Regency in Kovan Road has also sold more than 90% of its 393 units, while Riversails in Upper Serangoon Crescent moved more than 200 units last month.

Sales involving permanent residents (PRs) were less badly affected in the quarter than other buyer groups such as Singaporeans and foreigners. Transactions involving PRs fell about 37% compared with the previous quarter, while other groups registered declines of more than 45%.

Sales of new executive condominiums (EC) have also slowed in Q3, possibly because of the increased number of Build-to-Order flats and EC launches.

About 27,000 flats are expected to be launched this year.

On the resale side of things, 2,850 units were transacted in Q3 versus 4,062 units in Q2. For sub-sale, 425 units were transacted in Q3 down from 711 in Q2.

 

 

 

Business as usual despite new housing loan restrictions!

According to reports, more than 300 units have been sold at Allgreen Properties’ 920-unit Riversails, with at least 20 homes sold over the weekend. Prices of the larger units average slightly over $800psf while the one-bedroom units average $1,000psf.

The larger units (three-bedrooms and above) at the 99-year project have been doing well, with quite a few sold to upgraders. Three out of the five stacks of one-bedroom units launched have been sold.

Over at Sky Miltonia, 67% of units at this 420-unit have found buyers. The developer is offering an 18% discount and throwing in the option for buyers of certain units to upgrade their flooring to marble.

The 748-unit eCO in Bedok South has thrown in an additional 2% furniture voucher in addition to an array of discounts offered.

According to our central bank, the average tenure for new residental property loans jumped from 25 years to 29 over the last three years. Over 45% of the new home loans have tenures exceeding 30 years.

Lower initial monthly repayments from long loan tenures and low interest rates may cause borrowers to overestimate their loan servicing ability, says MAS (The Monestary Authority of Singapore).

Our blog posting on the new housing loan restrictions have generated a fair amount of discussion between our readers (which the wife and I are extremely pleased, as it is another small indication that  people actually read our blog). A few have expressed the opinion that the new restrictions will have little to no impact on demand. But if it is indeed true that over 45% of the current new home loans are more than 30 years, we believe that the “penalty” imposed on loan tenures that exceed 30 years will have a significant effect on demand going forward. Already units at new launches are not flying off the shelves as they used to be just a couple of months ago.

While we cannot claim to be a representative sample, the new restrictions have effectively put us out of the market for a second property – the longest tenure that the wife and I can qualify for a new housing loan is about 20 years, else we be hit with the new LTV ratio of 40% of the property value should we decide to extend the loan period beyond the retirement age of 65 years.

And we are pretty sure that we are not alone in this predicament.

Having said that, the fear of potential (especially younger, first-time) buyers being lulled into complacency by the combination of lower initial monthly repayment with a longer loan tenure and low interest rates are very real indeed. We were once guilty of such back in our early days of property venture, and it took a bout of rising interest rates to jolt us back to reality…

New project sales status: Riversails, Kovan Regency

A tad late in sharing but below is as per news report on Tuesday:

Riversails
Allgreen Properties has sold slightly over 200 units at Riversails at Upper Serangoon View since Friday. The average price is $827psf. The 99-year project has 920 units.

Kovan Regency
Hoi Hup moved close to 370 units or 94% of its 393-unit Kovan Regency over the weekend. The average price of the 99-year project at Simon Road/Kovan Rise is $1,250psf.

Project Info: Riversails

Here are more information on Riversails that the wife and I have managed to gather from the internet:

Project Name:    Riversails
Description:    12 Blocks of 18 storey condominium with basement carpark
Developer:    Benefit Investments Pte Ltd (Subsidiary company of Allgreen Properties Ltd)
Tenure:    99-year Leasehold
Location:    2 Upper Serangoon Crescent
District:    District 19
Land Size:    265,015sqft
Total Units:    920 units
Expected TOP:    30th September 2017
Carpark Lots:    930 Lots (inclusive of 10 handicap lot)

 

 

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New project spotlight: Riversails

Allgreen Properties has typically been focused on the prime districts, with projects such as the newly completed 235-unit Viva on Thomson Road, the 536-unit Cascadia at Bukit Timah and the 360-unit Skysuites@Anson. On Sep 29, it will preview its mass-market condominium, the 920-unit Riversails on Upper Serangoon View.

While most developers of suburban projects are focusing on creating compact units targeted at HDB upgrader market, Allgreen has decided to provide quality finishings and spacious layouts more akin to high-end condos in prime districts, says Yong Voon Chen, director of sales and marketing at Allgreen.

The developer has engaged Patty Mak of Suying Design to plan the space layout as well as the interiors of the apartments. Among property developers, Mak has been the preferred name for high-end projects, having taken on projects such as Allgreen’s Viva and Skysuites@Anson, Lippo Group’s Centennia Suites, OUE’s Twin Peaks at Leonie Hill and Sing Holdings’ The Laurels at Cairnhill.

At Riversails, there are only 84 one-bedroom units of 505 to 516sqft. The one-bedroom units will have timber flooring and a wall partition that can slide to close off the master bedroom from the living and dining area. Unlike most projects, even the one-bedroom unit will be provided with a utility or storage room. The “transformer kitchen” is designed so that it can be hidden from view when not in used, which is similar to what is being offered at Allgreen’s Skysuites@Anson.

An integrated refrigerator and oven will be provided for the one-bedroom units, which are designed such that the living area can fit a three-seater sofa, says Yong. “The household shelter for one-bedroom units is located in the stairwell, so there is a lot of usable space even in a 505sqft apartment.”

For units other than the one-bedroom apartment, all bedrooms can fit a queen-sized bed, adds Yong. “We try to provide space and proper bedroom sizes.” Every unit has marble flooring and a balcony adjoining the living room, spacious enough to fit a table and chairs, and also to allow natural light into the rest of the apartment. Bathrooms are provided with storage cabinets, under-counter lights and Duravit sanitary ware.

The majority of the units in the project are two-bedroom units of 850 to 893sqft, 2-bedroom + Study units of 914 to 947sqft and three-bedroom units of 1,033 to 1,108sqft. There are also 65 four-bedroom units of 1,367sqft. The showflats depict typical one-, three- and four-bedroom units, as well as two-bedroom + study apartments. “We try to introduce features on how to make use of space and full-height windows to create display areas or additional storage space,” says Yong.

At Riversails, a first phase of 309 units will be released at an average of $827psf. This means that two-bedroom units will be from $677,000 ($796psf), while two-bedroom + study units will be from $741,000 ($811psf). Meanwhile, three-bedroom units will start from $879,000 ($793psf) and four-bedroom units, from about $1.15 million ($845psf), says Joseph Tan, executive director of residential at CBRE, joint marketing agents for the project with Knight Frank and DTZ. “More than 80% of the units in the development are priced attractively, at under $1 million,” adds Tan.

In terms of unit sizes, two-bedroom units at Riversails are 893sqft – comparable with the compact three-bedroom units in some new suburban condos, says CBRE’s Tan.

Riversails is expected to be completed in 2017. For the first two years after completion, the developer will provide free shuttle service to the Hougang MRT station. “The Upper Serangoon area is more accessible and closer to Hougang Central,” notes Wendy Tang, director of residential services at Knight Frank.

There has been concern among buyers about oversupply in the mass market, given the number of government land sites being released. CBRE’s Tan is confident that the mass market will be sustainable. “Every year, for the last three years, the number of new homes sold has either been equal to, or exceed the previous year’s,” he observes. “And this year is expected to be a bumper year, with some 18,000 to 20,000 new units sold for the full year, compared with about 16,000 in the previous two years. So, it’s still sustainable. As long as interest rates are next to nothing, where else can you put your money?”

Source: THEEDGE SINGAPORE