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New private homes sales up 5.4% in May!

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Sales of new private homes, excluding executive condominiums, climbed 5.4% to 1,455 units in May.

This is compared to 1,380 new homes sold in April 2013, according to figures released by the Urban Redevelopment Authority (URA).

The number of new private homes sold in the city fringes jumped by about 27% from 473 units in April to 602 units in May.

This was mostly due to new project launches in the area.

However, sales of new private homes in the city area dropped to 125 units in May, compared to 178 units in the previous month.

Meanwhile, new private home sales in the suburbs contributed to slightly under half of the sales volume in May.

The take-up rate for new homes remained stable at 728 units in May compared to April’s 729 units.

Source: Channel News Asia

April new private homes sales halved on-month!

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Sales of new private homes, excluding executive condominiums, halved to 1,375 units in April, compared to March.

This was down from the record 2,793 units sold by developers in March, the highest monthly sale volume since June 2007.

According to the latest figures released by the Urban Redevelopment Authority, the April 2013 figure was also lower than the 2,497 new home sales recorded a year ago.

The drop was mainly due to the fewer units moved in the suburbs and city fringes in April.

URA data showed that developers sold 727 new private homes in April, down 60% from 1,814 in March. The number of new units moved in the city fringe region declined 43% to 470 units.

But the number of new private homes sold in the city area bucked the trend, rising by 13.4% to 178 units in April, compared to the month before.

Source: Channel News Asia

And you think the biggest beneficiary of ABSD are first-time home buyers…

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Our de facto English newspaper reported today that the raft of cooling measures imposed to tame the red-hot property market has delivered more than $1 billion in additional levies to the taxman.

The surge in revenue was bolstered following the additional buyer’s stamp duty (ABSD) of up to 15% that was rolled out in January.

About $158 million in ABSD was netted in February and March, bringing the total until March to $1.03 billion since the tax was introduced in December 2011, according to the Inland Revenue Authority of Singapore (Iras).

The January measures – the seventh since September 2009 – also marked the first time that Singaporean investors buying their second homes were penalised with an additional tax.

Foreigners have forked out $580 million in ABSD for 3,041 homes from December 2011 to March this year, while Singaporeans and permanent residents (PRs) have stumped up $386 million for 7,269 homes, Iras noted. Non-individuals such as companies paid a further $66 million in levies for 285 units.

Home owners have also paid $66.6 million in seller’s stamp duties since that levy was introduced in 2010.

This tax of up to 16% is meant to curb speculation and applies to those who sell their homes within four years of purchase.

Experts say the new-sale market has continued to be healthy despite the measures as developers dangle discounts and other incentives to alleviate the ABSD’s sting.

Savills Singapore research head Alan Cheong estimates that 30 to 40% of buyers at new launches since the January measures came in are second, third or subsequent home buyers.

“They are creating reasons to buy. It could be for rental income when the population grows to over six million, capital gains or to hedge against the possibility of their children not being able to afford homes in the future,” he said.

Iras said Singaporeans and PRs bought 1,031 homes subject to the ABSD in February and March, contributing $97.7 million in additional taxes. They are subject to ABSD rates ranging from 5 to 10%.

Foreigners, subject to a 15% ABSD for all purchases, bought 232 homes with a total of $58.2 million in ABSD collected in the same period. Non-individuals acquired 13 homes with a total of $1.84 million netted.

Foreigners seem to have retreated from the market after the applicable ABSD rate of 10% was increased to 15% in January.

In February and March last year, when only the 10% levy applied, they bought 315 units, according to caveats lodged with the Urban Redevelopment Authority, 36% more than this year.

So everytime you buy a car, our “cheng hu” makes money. And when you buy a  second or more private homes these days, our “cheng hu” makes even more money. So is this what the Chinese termed as “鹬蚌相争，渔翁得利” (The fisherman will benefit from the fight between the Mussel and Snipe)..?

And just in case your wondering where the Chinese idiom “鹬蚌相争，渔翁得利” came from:

Seven states were locked in battle at the end of the Warring States Period (220-280 AD). The Duke Hui of the State of Zhao wanted to conquer the State of Yan (Real Bad). That is, until he talked to Su Dai, one of those advisers.

Su said: “One fine day, a mussel went out to the beach to sunbathe. Meanwhile a snipe (which is a kind of bird that looks like a sandpiper with a long bill) caught sight of the tasty tidbit. He plunged to bite the meat. But the mussel immediately closed up, meaning the snipe could not pull out its beak out of the shell. Both of them became locked in mortal combat. Along came a fisherman and bagged them both.

“If you go to conquer Yan now, Zhao and Yan will be like the mussel and the snipe. Meanwhile the strong Qin State will be make like the fisherman and gobble up both territories.”

And so Duke Hui never ate seafood again (just kidding). The idiom of course refers to a mutually-destructive battle between two parties, especially one involving unshakeable principles, thus leaving the coast clear for a third party to swoop in late and sweep up the spoils.

Explanation courtesy of SOHU.com

 

March private home sales quadrupled vis-a-vis February!

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Sales of new private homes jumped by more than four times in March, compared to February.

Latest figures released by the Urban Redevelopment Authority (URA) showed that developers sold 2,793 new units (excluding executive condominiums) in March.

This is in sharp contrast to the 712 new private homes moved by private developers in February.

The government announced its latest round of cooling measures in January this year in a bid to cool the Singapore’s property market.

Meanwhile, URA data showed that 1,814 units of new private homes located in the suburbs were sold in March, while developers moved 822 units in the fringes.

But the number of new private homes sold in the city dipped slightly to 157 units.

Source: Channel News Asia

Private home prices growth slows in 1Q2013!

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Prices for private homes grew at a slower pace in the first quarter of the year.
Analysts say the slowdown is no surprise, after the government’s latest round of cooling measures in January.

For private homes, prices moderated in the first quarter of this year, rising 0.5% on average, according to flash estimates from the Urban Redevelopment Authority (URA) Price index.
The 0.5% rise is smaller than the 1.8% growth recorded in the fourth quarter of 2012.

Analysts said the January cooling measures curtailed an otherwise rapid rise in property prices.

“The market is still very flush with liquidity in a very low interest rate environment. The measures had an impact in the first two months of its introduction, that is, in the month of January and in particular in the month February when developers did not launch any new projects. If you look at the February numbers, just over 700 units of primary new home sales were done,” said Donald Han, special adviser at HSR International Realtors.

Market watchers said prices of high-end properties in the city are expected to stay somewhat flat – up to 1% growth – for the rest of the year.

But private homes in the suburbs will climb as much as 4 to 5% by the end of the year, as demand is stable and developers continue to dish out projects.

Source: Channel News Asia
 
 
 
 

February home sales plummeted 65%..!

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Sales of new private homes in Singapore fell sharply in February, due to the Lunar New Year holidays, fewer launches and the government’s latest round of cooling measures.

However, analysts said it is still too early to gauge the effectiveness of the cooling measures introduced earlier this year.

According to data from the Urban Redevelopment Authority, 708 new units were sold during the month, down by almost 65% from January’s 2,016 units.

The figure was the lowest recorded since the 632 units booked in December 2011, which coincided with the government’s announcement of an additional stamp duty that month.

Including executive condominiums (ECs), just 917 units of new homes changed hands in February, compared to 2,272 units in the previous month.

Analysts said the drop was not surprising as February was a short month and it also included the Lunar New Year, which was typically a lull period in terms of new launches and transactions.

Mohamed Ismail, CEO of PropNex Realty, said: “The drop in February new home sales is also due to the latest cooling measures in January 2013 as potential homeowners are likely to take a wait-and-see attitude.

“Additionally, developers have held back on the project launches for the month and this is evident in only 261 new units that were being launched.”

Desmond Sim, CBRE Research’s associate director, said: “The full impact of the measures is not felt yet, so the dust has not really settled.

“We don’t foresee any new measures coming in at this point in time. We also do not expect the developers to push the envelope to go for higher prices – there will be no more benchmark prices going forward.”

In fact, analysts said some developers could offer more discounts to pull in the buyers – a strategy that seemed to have worked for D’leedon near Farrer Road.

It was the top selling project last month, with 166 units sold.

Q bay Residences at Tampines was the next best performer with 74 units sold.

In February, developers sold 341 units of new homes in the suburban areas, 198 units in the core central region and 169 units in the city fringe.

Chia Siew Chuin, director of research and advisory at Colliers International, said: “The upcoming launches are mostly on GLS (government land sales) sites, 99-year leasehold sites.

“The fact that there is a requirement for developers for their projects to complete and sell within a prescribed period, there is inherently more urgency for these developers to sell such projects.

“That is why we see these days, developers have been more open to consider discounts and incentives. But those with better balance sheets would probably be able to hold on to prices.”

Including executive condominiums (ECs), URA said 917 units of new homes changed hands last month. The Topiary in Sengkang was the best performer, with 84 units sold.

In the latest move to tamp down the red-hot property market, the government in January made it costlier for foreigners to buy property by raising stamp duties, and sharply increased minimum cash down payments for individuals applying for loans for second or subsequent homes to 25% from 10%.

The latest measures were imposed after property prices continued to rise despite an economic slowdown that saw the city-state narrowly avoiding a technical recession last year.

The trade-reliant economy grew just 1.3% in 2012, down from 5.2% in 2011, with 2013 expansion forecast at 1.0-3.0%.

Earlier measures by the government to tame the property market included a move by the central bank in October to impose a maximum tenure of 35 years for new housing loans.

Analysts said market players will continue to closely watch home sales in March for trends.

They expect new home sales in March to do better, in the region of about 1,000 to 1,500 units, with a wider selection of new launches in the market.

For a start, D’Nest at Pasir Ris has already seen a strong take-up on the first day of its preview sales on Friday. About 80% of the 450 units launched have been sold.

The 912-unit condominium project was launched at a special early bird price of about $920psf.

The 332-unit Sennett Residence at Potong Pasir has been popular as well. Over 70% of the project have been snapped up this month.

“Now that the dust is more or less settled, developers have started project launches in March. Hence, March and the coming months will be the real litmus test for market demand and the effectiveness of the cooling measures,” Colliers’ Chia said.

She added that while home sales are expected to “return to a normalised level” this month, the new measures meant the government “will continue watching the market closely and policy risks remain”.

Property stocks tumbled on Friday after the home sales figures were released, with Capitaland down 4.23% to $3.40, City Developments falling 3.67% to $10.76 and Keppel Land easing 2.04% to $3.84.
 

Source: Channel News Asia

Jan 2013 new private home sales jumped 43%

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Sales of new private homes in Singapore jumped by about 43% on-month in January 2013, despite the latest round of cooling measures introduced last month.

According to the Urban Redevelopment Authority (URA), 2,013 units of new private homes – excluding executive condominiums – were sold in January, compared to 1,410 units sold in December 2012.

A URA spokesperson said about 60% of the 2,013 units were sold before January 12 – before the latest cooling measures took effect.

The remaining 40% of the units were transacted from January 12 onwards.

The rush to beat the January 12 deadline partly caused the spike in new private home sales during what is traditionally a lull period.

Extending sales hours way into the night before the new measures kicked in helped pushed sales at La Fiesta in Sengkang.

The development saw a total of 404 units sold in January – making it the best-selling project for the month.

Out of the total sales, only 44 units were moved at La Fiesta post cooling measures.

Thomas Tan, executive director at RE/MAX Singapore, said: “After the cooling measures were announced, I think the effect will be seen probably after one quarter.

“You will probably see a truer picture – what is really happening in the market – from March or even April onwards, so that the cooling measures can take its course, then buyers can make informed decisions.”

Experts said sales discounts in the form of furniture rebates and renovation vouchers also helped move sales after the new measures were implemented.

But they added that sales momentum may run out of steam in the coming months.

Getty Goh, director at Ascendant Assets, said: “In February, we may expect to see good volume but it may not translate to significant price increases. This is because of all the discounts given.

“Right now, although we do not have clear visibility. Going forward, when the Parliament passes new regulations to the developers’ act, the Housing Developers’ Act, which requires them to start publishing what sort of discounts they are giving, then after that, we will be able to get a better sense of the kind of actual figures that we are talking about here.”

Meanwhile, data released by URA on Friday showed that 350 units of new private homes located in the core central region were sold in January.

Developers moved 376 new units in the city fringe and 1,287 units in the suburban areas.

Looking ahead for the full year, experts do not expect total sales in 2013 to surpass the record sales of 22,684 new private homes in 2012.

Source: Channel News Asia

And for those who are interested in d’Leedon, the wife and I understand that 263 units were sold at d’Leedon last month. This, coupled with a total of 848 units sold till Dec 2012, meant that a total of 1,111 units (although data in the URA website indicates 1,110) have been sold as at Jan 2013.

So if the project has indeed moved another 100 units in the first 15 days of February, the “left only less than 500 units” as informed by our agent friend could well be true…

 
 

This just in: 4Q 2012 home prices rose 1.8%

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Private home prices rose 1.8% in the fourth quarter of 2012, compared to a 0.6% increase in the previous quarter.

But for the whole year of 2012, prices of private residential properties increased by 2.8%, a smaller rise compared to the 5.9% growth recorded in 2011.

The Urban Redevelopment Authority (URA) on Friday said that prices of non-landed properties outside the central region rose 3.8% in the fourth quarter, compared to an increase of 1% in the third quarter.

Prices of non-landed properties in the core central region edged up 0.7% in Q4. For the rest of the central region, prices increased 0.9%.

Rentals of private homes climbed 0.7% in Q4. For the full year, private home rentals rose 2.1%, compared with the 3.8% increase in 2011.

Source: Channel News Asia