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Pasir Ris, Punggol. Next stop…Hillview?
Sales of new private homes have been brisk in the past year for projects in neighbourhoods like Pasir Ris and Punggol.
And some industry players said the Hillview area, located in the western part of Singapore, could be the next up-and-coming spot with more projects lined up.
The Hillier – a mixed development project at Hillview Avenue – is one of several new offerings in the area.
It has seen strong take-up, with 96% of the total number of units sold.
DWG’s senior manager for training, research and consultancy, Lee Sze Teck, said: “It is a private residential enclave, so it will attract quite a fair bit of people who want the peace and tranquility to stay there. Of course, the traffic network there is not so built-up yet but with the upcoming Downtown MRT line, it will improve the network in the area.”
Analysts predict that Hillview, along with nearby Cashew, Chestnut and Diary Farm areas, could garner more interest.
It is estimated that there would be over 2,000 new units in these areas in the next five years.
These projects include The Hillier (528 units), Eco Sanctuary (483 units), Tree House (429 units), Foresque Residences (496 units) and an upcoming condominium by Kingsford Development which could yield up to 500 units.
Market watchers said prices of new projects have climbed and could encourage developers to put in more optimistic land bids.
Knight Frank’s head of consultancy and research, Png Poh Soon, said: “For example Foresque, when it was launched, it was about $1,200psf and that set the new benchmark. When The Hillier came in, it is now on average transacting between $1,500psf and $1,600psf.”
Mr Png added: “When the market is being tested at this level and buyers are coming in, it seems to be able to support a certain selling price and thereafter, if you translate back to land bids, developers are more optimistic in their tendering in terms of whether the market is able to support at that range.”
Mr Png said prices of some units have also appreciated, looking at sub-sale transactions. For instance, a unit at Tree House at Chestnut Avenue was launched at $835psf, but it was sold at $945psf in the sub-sale market. Sub-sale refers to the resale of uncompleted units and it is a key gauge of speculative activity.
Another area with bright prospects in the long term is Woodlands, located in the northern part of Singapore. Property analysts said this optimism is driven by two key factors – better connectivity and increasing commercial activities in the area.
The existing Woodlands MRT station will link up with the upcoming Thomson Line which will be fully completed in 2021.
Colliers International’s director of research and advisory, Chia Siew Chuin, said: “We’ve also seen an increase in activities across the Causeway by Singaporeans, whether it is social activities or buying of properties across the Causeway. Woodlands is actually primed to be the main conduit for this channel of commercial and social activities.”
Colliers International said the median price of non-landed private homes in Woodlands rose by 6.9%in the third quarter this year from the first quarter of 2011.
This is slightly lower than the 7.2% increase in overall median price of similar homes in the mass market segment over the same period.
And there should be more upside ahead when the potential of the area is realised.
Colliers International also earmarked Jurong East as a property hot spot in the next 10 to 15 years, as the area is slated to be a new commercial hub under the Urban Redevelopment Authority’s Masterplan 2008.
Ms Chia said median prices of non-landed private homes in Jurong East rose 7.7% in Q3 2012 from Q1 2011.
For those seeking rental income…
Rentals for private homes are expected to ease in the next 12 months, especially those in the luxury segment.
Experts said current rentals for private homes are just 1% off the peak recorded in the second quarter of 2008.
It used to take about a month to secure a tenant for private homes in the rental market last year.
Now, it takes about three to four months, according to analysts.
While rentals have edged up slightly in recent years, the vacancy rate too has gone up, especially for high-end units.
Ku Swee Yong, CEO of International Property Advisor, said: “In the luxury segment, if we were to include Sentosa Cove, then the vacancies are as high as 9 to 10%, whereas islandwide, we are still seeing…average vacancies of about 5.5 to 6%.”
On average, it would cost about $5 to $8psf per month to rent a luxury home.
Some analysts said rentals for high-end units could come under pressure over the next 12 months, in view of the uncertain economic outlook and the additional supply of new units hitting the market. They said average rentals could dip by 3 to 5% in 2013.
Donald Han, special advisor at HSR, said: “Corporates are looking at reducing its cost, and part of the cost that will be reduced is expatriate housing allowances, so the first top-tier of that market being the luxury end of the residential apartments, some good class bungalow projects have seen a drop in terms of actual transacted rents.”
Mr Han said that for instance, the rent for a 15,000sqft good class bungalow which is about 10 years old went for $28,000 to $38,000 per month last year, but rentals have dropped by 3% since.
Meanwhile, the rental prospect of mass market units remained fairly stable.
Some analysts said the rents for such homes could see a 1 to 2% upside in the year ahead.
Industry players said average rental for mass market homes currently ranges between $3 and $4.50psf per month.
But there will be stiffer competition for areas like Hougang, Pasir Ris, Sengkang and Punggol, where many new housing projects are lined up.
“My own estimation is that these areas would account for 50,000 new homes by 2015, and that is a significant addition to that stretch,” said Mr Ku.
Nicholas Mak, executive director of SLP International Property Consultants, said: “Whenever a new project is to be completed in a certain area, the owners who are planning to rent it out are probably being approached by many agents, and tenants typically would prefer newer apartments with newer amenities. So we will definitely see some tenants being drawn away from the older developments to newer ones.”
With some key events coming up, industry players expect overall rental rates to stay soft in the coming months.
The events include the US presidential elections in November and the ongoing efforts to fix the eurozone debt crisis which is now into its third year.
With the onslaught of new private apartments coming onstream over the next 2 – 3 years, one better pray that the economy improves quickly and with it, the expat packages as well!
Maybank Kim Eng on latest property cooling measures
Here is what Maybank Kim Eng Research thinks about Round 6 of the property cooling measure.
http://www.scribd.com/doc/109444574/Kim-Eng-Research-09-10-2012
And in the spirit of "Don’t Ask Don’t Know, Right?"…
No harm trying, especially since we were given the impression that foreigners like those from mainland China and Indonesia are “so rich they don’t know where to spend their money on”.
Oh, we can offer causal friendship too. Just don’t ask either (or both) of us to get inside a car with you to go to some deserted carparks…
Left-click on image to enlarge:
But seriously, we pray that this is not a reflection of the mentality that our younger generation possesses these days.
Have a great week ahead!
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Private apartments under $1 million
The Straits Times ran an article today about private apartments that are still going for under $1 million these days.
The wife and I decided to save you the trouble (in case you are interested in any of the projects) by providing you with the caveats lodged at these developments for the past year.
Although most have indeed gone for less than 1mil as reported, we suggest not holding your breath on buying an apartment at the price indicated in the ST report as most seemed to be anomalies rather than norm. Then again, it’s always tempting to report what people want to see/read…
Toh Tuck Lodge:
http://www.scribd.com/doc/108035589/Toh-Tuck-Lodge#fullscreen
Sembawang Cottage:
http://www.scribd.com/doc/108035590/Sembawang-Cottage#fullscreen
Lakeside Tower:
http://www.scribd.com/doc/108035592/Lakeside-Tower#fullscreen
Elias Green:
http://www.scribd.com/doc/108035594/Elias-Green#fullscreen
Phoenix Heights:
http://www.scribd.com/doc/108035595/Phoenix-Heights#fullscreen
Casa Emerald:
http://www.scribd.com/doc/108035598/Casa-Emerald#fullscreen
The Florida:
http://www.scribd.com/doc/108035600/The-Florida#fullscreen
Lakeside Apartment:
http://www.scribd.com/doc/108035602/Lakeside-Apartment#fullscreen
Park View Mansion:
http://www.scribd.com/doc/108035603/Park-View-Mansion#fullscreen
Tampines Court:
http://www.scribd.com/doc/108035606/Tampines-Court#fullscreen
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Enbloc News: Green Lodged sold…finally!
This must be at least the third attempt for Green Lodge.
Another good example of perseverance pays!
Reference: “Green Lodge sold for $191.888 million” – The Business Times, 18th Sep 2012
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August home sales: Spooked by Hungry Ghost… again!
The wife and I are finally back after one week in Vegas.
The good o “Hungry Ghost Month” effect. Looks like superstition still rules the Singapore property market scene…
Reference: “Private home sales down 27% in August”- The Business Times, 18th Sep 2012″
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Wing Tai: Property market price correction looming!
Property developer Wing Tai foresees a growing possibility of a correction in Singapore’s property market.
This as the firm announced its fourth quarter (Q4) earnings on Tuesday.
At the results briefing, Wing Tai said it is targetting to launch its latest freehold residential development with 337 residential units with one commercial unit next year.
Formerly zoned for industrial use, the developer has successfully applied to change the use of its former headquarters to residential.
Located at Tampines Road near Kovan MRT station, Wing Tai said this latest project which sits on land acquired in the 1960s would help capture any potential uptick in the property market.
But the property developer believes the market is set for a correction ahead.
Chairman of Wing Tai Holdings, Cheng Wai Keung, said: “A number of you have been asking why have we not been tendering for URA projects and we have not been active in the market for quite some time.
“I would still maintain that the correction will be coming and the way I look at it, is that if there is a cycle, if you take away that 2008 temporary drop, you smooth out the curve, it is actually the eighth or ninth year of the rise in this cycle.”
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Singapore turns 47: Our THREE wishes for Singaporean…
Now that the fireworks are done and rumours over a certain senior (make that VERY senior) member of cabinet not being able to attend this year’s NDP is quashed, the wife and I would like to share with you all our 3 wishes for Singaporean on this joyous occasion:
1. May we never suffer the indignation of having a BTO/HDB project built within a 50-metre radius of our Condo/DBSS apartments. And same goes with hospices and nursing homes too! Surely with these being so close to our apartments, our view will be affected and the resale price will fall, right?!
2. And speaking of hospice and nursing home, may we never have to end up in one of those when we grow old. They will likely be located in some god-forsaken parts of Singapore far far away from those nice (younger) folks living in their public and private housing estates, or worse, in JB.
3. And for shoebox-owning couples who are looking to be tapped like an EZ-link card or have a bao stuffed in their ovens this National Night, may you be allowed to keep your shoeboxes and buy a second (bigger) HDB flat to live in once your baos are… steamed. Since you are starting a family purely because the government wants more babies, they surely must do better than them baby bonuses and 6-month maternity leave, right?! Heck, they should probably throw in the $900 stroller and first pick at any primary school too…
Disclaimer: DO NOT take us seriously on the above!
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