Singapore property market news
Singapore saw prime residential rents drop 3.3 percent in the fourth quarter of 2016 from the previous year, according to a Knight Frank report.
This comes as Knight Frank’s Prime Global Rental Index fell marginally by 0.4 percent in 2016.
The report noted that while rents generally declined in 2016, 10 of the 17 cities tracked in the index registered rental growth last year, up from seven in 2015.
However, the difference between the strongest and the weakest performing markets also increased to 14 percent from 12.5 percent previously.
Topping the list is Toronto, with prime rents increasing eight percent year-on-year in Q4 2016. This was followed by Cape Town and Guangzhou with rental growth of 6.3 percent and 3.9 percent, respectively.
Completing the top five list are Zurich (3.3 percent) and Tel Aviv (2.4 percent).
For five years in a row, North America emerged as the strongest performing region, with prime rents increasing by 5.2 percent in 2016.
Europe, on the other hand, displaced Africa as the weakest performing region, with prime rents there dropping 2.1 percent last year.
“With increasingly active fiscal and monetary policies in the US, such as President Trump’s proposed US$1 trillion infrastructure plan and tax cuts, as well as the decision by the Federal Reserve to raise interest rates, we may see other central banks and governments follow suit to either support currency or to deal with any spill-over of inflation,” said Taimur Khan, Senior Research Analyst at Knight Frank.
“Higher interest rates would negatively impact on market affordability, a process which could lead to an increase in the demand for rental accommodation, as prospective buyers opted to rent for a period.”
Credit : Source article by propertyguru.com.sg
There is potential to develop another 100,000 residential units along both sides of the Kallang River over the next 20 years, revealed the Urban Redevelopment Authority (URA).
The URA announced this following the launch of an exhibition on Wednesday (29 March), showcasing opportunities to rejuvenate the 10km-long river and surrounding areas. Dubbed “A River Runs Through It”, the exhibition is a call for public feedback and ideas on a preliminary conceptual plan to rejuvenate Singapore’s longest natural river.
In line with this, the government has outlined five broad key ideas to develop the Kallang River. One of them is to inject new waterfront housing developments in park-like settings and renew old industrial estates within the vicinity.
For instance, the authorities will look to transform Kampong Bugis near the Lavender and Kallang MRT stations into a vibrant residential precinct that is car-lite, people-centric and sustainable.
“There is potential for the government to collaborate with the private sector, for a master developer to master plan and oversee the implementation of developments in Kampong Bugis,” said the URA.
According to Ong Teck Hui, JLL’s National Director for Research & Consultancy, the Kampong Bugis project is expected to benefit from the river rejuvenation as the site has about 1km of river frontage.
“Units fronting the river would be in greater demand and command higher prices,” he said, adding that the master developer would have an additional unique selling point to leverage on.
“Besides the Kampong Bugis project, other residential developments along the Kallang River comprising both private and public housing would also benefit from the rejuvenation plans. River-fronting homes would become more attractive and likely to command higher prices.”
In addition, the government is looking to redevelop Kallang Distripark, a private industrial estate near the future Geylang Bahru MRT station, into a residential project due to its attractive waterfront location.
Meanwhile, there are possible plans to establish a mixed-use precinct in Kallang Industrial Estate, which consists of several smaller industrial estates at Kallang Basin, Kallang Bahru and Kallang Avenue.
The other four ideas to rejuvenate Kallang River are:
– Activate the waterfront, and enhance Kallang Basin as a sports and recreational venue
– Enhance accessibility by providing a seamless active mobility route along Kallang River between Bishan and the city centre
– Enrich the biodiversity of Kallang River
– Celebrate and incorporate the river’s rich heritage
Credit : Source article by propertyguru.com.sg
Prices of completed non-landed private homes fell 0.3 percent in February 2017, compared to the revised 0.1 percent decline seen in January, revealed flash estimates of the NUS Singapore Residential Price Index (SRPI).
Excluding small units, prices in the central region dropped one percent, reversing the 0.5 percent growth seen in January. The non-central region, on the other hand, saw prices increase 0.3 percent, an improvement from the 0.6 percent drop registered in the month before.
The central region sub-basket comprises properties situated in districts 1 to 4 and 9 to 11, while properties located in the other districts fall under the non-central region sub-basket.
Meanwhile, prices of small units measuring 506 sq ft or below fell 0.6 percent in February, after rising 0.1 percent in the previous month.
Source article by propertyguru.com.sg
Unlike other countries in the Asia Pacific, Singapore saw domestic real estate investment drop 16 percent in 2016, while inbound investment surged 441 percent from the previous year, revealed a JLL report.
The decline comes as domestic investors focus on diversifying their exposure overseas.
“Foreign investors’ appetite remained robust as the price gap between buyers and sellers in Singapore has narrowed following recent price corrections, and many seized opportunities to purchase assets in the office sector at lower prices,” said Tay Huey Ying, Head of Research at JLL Singapore.
The report noted that domestic investors were active in most Asia Pacific real estate markets last year, as many opted to buy real estate assets in their home market given the global economic and political volatility.
South Korea, for instance, saw domestic investment into real estate assets soar 75 percent to US$12.4 billion, while domestic investment in Chinese real estate jumped 50 percent to US$29.1 billion.
Looking ahead, JLL expects investment activity in the Asia Pacific to remain stable this year considering the solid appetite from institutional investors, the low interest rate environment and strong fund raising activity.
“However, as pricing in major gateway cities are at record levels and given the shortage of investable real estate assets, these factors could play a part in limiting investment activity.
“As for outbound investment activity from Asia Pacific, tighter government controls over capital outflows may limit Chinese outbound investment in the near term particularly for large sized deals which could take longer to conclude.”
Source article by propertyguru.com.sg
This represented over 100 percent of the planned sales under the first phase, making it one of Singapore’s most successful private condominium launches in recent years.
Lendlease had originally intended to release only 40 percent of the units last weekend, but due to overwhelming response from buyers who queued from early morning, an additional 10 percent of the condo units were launched for sale.
Prices of the units ranged from around $800,000 for a one-bedroom apartment to $2.1 million for a three-bedroom premium unit, which works out to $1,600 psf to over $2,000 psf.
“The strong sales show our buyers confidence in the quality of the project and in Lendlease,” said Tony Lombardo, CEO for Asia.
One of the buyers was Patrick Yap, 39, who purchased a one-bedder for investment purposes. “Park Place Residences is part of an integrated development (PLQ) with an upcoming retail mall and offices. Together with its convenient location, I am confident that it will attract many tenants,” he said.
Similarly, 31-year-old Huang Zhenbiao and his wife bought a two-bedroom apartment after being attracted to the project’s strategic location.
“The development is on the Paya Lebar MRT interchange, and we can get to the Central Business District (CBD) quickly. There is potential development around the area too, which is another plus point.”
Meanwhile, prices of the remaining units at Park Place Residences are expected to increase when details of other upcoming developments in the vicinity are announced, especially in the greater Paya Lebar Central area.
The location is also emerging as a new vibrant hub in Singapore, given its position on the double MRT Interchange and proximity to the CBD and Changi Airport.
Following the successful launch, Lendlease will now temporarily close the showflat. Details on the next phase of sales are expected to be revealed later this year, while construction of the entire development is expected to be completed by early 2019.
Source article by propertyguru.com.sg
Singapore saw house prices drop 2.6 percent in the fourth quarter of 2016 from the previous year, revealed a Knight Frank report.
This places the city-state in the bottom three on Knight Frank’s Global House Price Index rankings list along with Taiwan and Ukraine, which saw house prices fall 6.5 percent and 10.2 percent, respectively.
The index showed that global housing prices rose six percent in Q4 2016, up from 4.1 percent in Q4 2015.
Topping the list is Iceland, with house price growth of 14.7 percent, followed by New Zealand and Malta with growth rates of 12.7 percent and 12.4 percent, respectively.
Rounding up the top five list are Canada and Turkey.
“The overall picture is one of stable or rising prices, despite the global landscape of political and economic uncertainty,” said Kate Everett-Allen, Partner, International Residential Research at Knight Frank.
She noted that the number of housing markets that recorded price increases climbed from 43 in 2015 to 47 in 2016.
“With higher inflation and diverging monetary policies expected in 2017, we may see a widening gap between the strongest and weakest performing market,” she added.
Nicholas Holt, Head of Research of Knight Frank Asia Pacific, cited Singapore as the most notable market in Asia due to the surprise slight easing of certain cooling measures, which is expected to spur some additional interest in the market.
However, “many buyers in Singapore are still constrained by the Additional Buyer’s Stamp Duty and lending restrictions”, said Holt.
source article by propertyguru.com.sg
Somerset is the place to be, at least according to the legions of shoppers and diners who flock to the area every evening and on weekends.
Source article By Joanne Poh, propertyguru.com.sg
The Somerset area, which makes up the eastern half of the Orchard Road shopping belt, no longer plays second fiddle to the western end around Orchard MRT station. In the last decade, Somerset has been rejuvenated with spanking new malls that have turned it into the liveliest and hippest section on the shopping belt.
The making of a giant
Orchard Road, the Somerset area’s main thoroughfare, was formerly a rural road surrounded by a cluster of fruit, pepper and nutmeg orchards in the 19th century. Some of these plantations are now commemorated in tiles on the sidewalks.
The transformation of Orchard Road from rural to urban began in the middle of the 19th century. The first developments to supplant the plantations were residential, and shortly after, amenities such as markets, hawker centres, temples and cemeteries began to emerge.
But it was only in the early 20th century when Orchard Road began undergoing a transformation to become the retail hub it is today.
In 1903, the first Cold Storage outlet was built on the land where present day mall The Centrepoint stands. Then, in 1958, C. K. Tang, the very first department store on Orchard Road, was established.
By the 1970s, Orchard Road’s transformation into Singapore’s most popular shopping district was complete, complemented by entertainment options such as bowling alleys and cinemas.
Singapore’s favourite playground
Today, when Singaporeans mention they are heading “to town”, they are really referring to a trip to Orchard Road. The area has come a long way from its early days, and it is hard to believe that Plaza Singapura, the first multi-storey shopping mall within the area, was once the nation’s biggest.
Orchard Road has become an eye-opening parade of glitzy malls and stunning architecture. From the futuristic building housing ION Orchard, with its dizzying media wall, to the imposing Ngee Ann City, a walk down Orchard Road is a sensory smorgasbord. More than 5,000 shops, eateries and entertainment providers attract throngs of people on weekdays and weekends alike.
The Somerset area has undergone a transformation in the past few years, and many say it has all but stolen the show on the shopping belt. The 2010s have seen new malls being built at lightning speed, each more dazzling than the last.
Somerset MRT station opens up into 313@Somerset, a bustling mall with a huge selection of high street fashion retailers including Zara, Cotton On and a multi-storey Forever 21 outlet. The mall also contains an outdoor area where patrons knock down after-work beers at JiBiru Japanese Craft Beer Bar and Brozeit German Bier Bar & Restaurant.
Further down the road, the former Specialists’ Shopping Centre and Phoenix Hotel have made way for Orchard Gateway, which opened in 2014 and features an overhead bridge which takes on the form of a glass tube. The units above the shopping mall are home to Hotel Jen, with a stunning rooftop bar and infinity pool.
Orchard Central, just next door, possesses a gorgeously-landscaped roof garden with stunning views and artwork by local artist Victor Tan and Japanese artist Yayoi Kusama.
Another major landmark in the area is TripleOne Somerset. The shopping mall doubles as an office building, which houses Singapore Power’s corporate headquarters and the Swedish Embassy. Incidentally, PropertyGuru just moved to its new headquarters at TripleOne Somerset at the end of March 2017.
The Somerset area is a tourist hotspot and home to many hotels at various price points. Accommodation options range from five-star hotels such as Mandarin Orchard and Grand Park Orchard to boutique options such as Hangout@Mt Emily and Lloyd’s Inn.
Wong Xian Yang, Head of Research and Consultancy at OrangeTee, is confident that Somerset will continue to be a popular residential and commercial location for a long time to come.
He said: “Somerset has strong locational attributes given its location along the Orchard shopping belt. As such, the area commands premium prices and the supply in the vicinity is scarce.
“Medical tourists will also find this area attractive due to its proximity to Mount Elizabeth Hospital and Paragon Medical Centre. Furthermore, the area is served by Somerset MRT station which makes transportation a breeze.”
Tay Huey Ying, Head of Research at JLL Singapore, maintains that Somerset’s enduring appeal as a residential area lies in its strategic location straddling Orchard Road and the CBD.
“One gets to enjoy the convenience of easy accessibility to a diverse range of shopping, entertainment and leisure options along Orchard Road while at the same time benefitting from the convenience of being close to work, be it in Orchard Road, City Hall and Marina Centre, or Marina Bay and Raffles Place.
“Yet the Somerset area is not far from nature as Fort Canning Park, an iconic hilltop landmark boasting an expansive sprawling lawn, is just nearby for residents looking for a tranquil place to unwind after a hard day’s work.”
Those who are lucky enough to live in the Somerset area are not unaware of the advantages they enjoy as residents of the city’s core.
April Lim, a 34-year-old legal counsel and Somerset resident, echoes the benefits raised by Tay.
“I can walk to Fort Canning and Robertson Quay in under half an hour, or choose to go for a walk in nature or next to the river. I am also not far from the CBD,” she said.
For Lim, having many food and shopping options close to home is a big draw. Some of her favourite nearby haunts include the Killiney area, with its local eateries, the basement of Liang Court, where she goes for affordable sushi, and UE Square, where she recommends a cafe called Epicurious.
The future looks bright
As demand for housing in Somerset continues to dramatically outstrip supply, new developments in the area have been generating considerable interest.
Cairnhill Nine, a luxury condominium by CapitaLand on Cairnhill Road, is one of the most hotly-anticipated developments in the area. It has seen brisk sales and, according to Wong, is expected to be popular with expatriates with school-going children who wish to be close to international schools in the area.
Another noteworthy development is Lloyd SixtyFive by TG Developments, located a stone’s throw away in the River Valley district, just a short walk from Somerset MRT station. The freehold condominium pioneered a rent-then-buy scheme which has enabled prospective buyers to first commit to a two-year lease before deciding to purchase a unit.
What is more, according to Tay, City Developments Limited has announced that the sales launch for the 124-unit freehold New Futura condominium could happen as early as the second half of 2017.
Existing building TripleOne Somerset is also undergoing a facelift slated for completion in late 2018 or early 2019. The works aim to enhance the existing retail space, convert some office space into strata units for sale, and introduce medical suites into the complex.
These enhancement works have thus far proved successful. Tay said: “Strata sales of the medical suites and office units in the Somerset Tower commenced in Q3 2016 and reportedly, a few office units were transacted at an average price of above $2,680 psf.”
Park Mall is another existing building that will be given a facelift. It will be redeveloped into a mixed-use development comprising office and retail space, as well as bicycle parking facilities, shower rooms and lockers.
With a slew of initiatives to keep the area buzzing, Somerset’s star will continue shining for a long time to come.
Did you know?
– A house on Orchard Road was once bought by King Chulalongkorn, who was at the time King of Siam.
– The distance between Somerset MRT and Dhoby Ghaut MRT stations, when measured in terms of track length, is the shortest of any two stations on the North South line, and it takes only one minute for an MRT train to make the trip from one station to the other.
– Emerald Hill, located across the road from Somerset MRT station, is home to a row of historic residences with Chinese Baroque architecture that formerly served as homes of wealthy Peranakan families.
The HDB resale market has seen prices stay flat since Q2 2015. With an increase in the grants available for use, will this market start to see a pickup in 2017? We give you the Guru View.
source article By Chang Hui Chew, propertyguru.com.sg
For the HDB resale market, the past few weeks have been an interesting time.
In late February, Minister for National Development, Lawrence Wong, announced that the CPF grants for HDB resale flats would increase from $30,000 to $50,000 for couples, and to $25,000 from $15,000 for singles, for four-room flats and smaller units. This increase in grants should help those young couples start their families sooner, as they have more incentive to buy a resale flat, rather than wait for a Build-To-Order (BTO) flat to complete construction.
In this edition of the Guru View, we examine the performance of the HDB resale market in 2016, and look at some likely implications in this year.
Despite the fervour around private property, most Singaporeans live in HDB flats, and their resale performance is an important bellwether for Singapore’s property market.
The HDB Resale Price Index (RPI) has remained flat since the second quarter of 2015, hovering between 135 and 134 (refer to Figure 1). This is likely due to affordability curbs such as the Mortgage Servicing Ratio (MSR), which limits how much monthly income HDB flat buyers can use to pay their housing loans.
HDB resale flats remain a very price sensitive segment, with many HDB flats in the same area largely similar products, differentiated only by factors such as height. Sellers who wish to ask for higher prices often see buyers seek the next cheapest offering, a likely factor that contributes to the HDB RPI’s lack of growth.
In March 2014, the state also abolished the practice of Cash-Over-Valuation (COV), where buyers and sellers negotiated on the additional cash to be paid to homeowners above the agreed upon value of the flat. This practice led to soaring resale flat prices, as sellers, in a bid to outdo their neighbours, asked for higher COV.
Without COV, sellers and buyers are now negotiating based on agreed upon valuations, rather than a perceived premium. This has led to a lot more sense in the process when sellers are pricing their HDB flats.
At the same time, HDB resale volumes have improved since its low point in 2014. In 2016, total resale volume saw a year-on-year increase of 7.8 percent to 20,813 units, from 19,306 units the year before (refer to Figure 2). This was led primarily by a growth in transaction volumes in four-room and five-room flats.
Sellers in the resale market also need to contend with BTO launches in 2017.
At the end of 2016, Wong announced that the HDB would be launching over 17,000 BTO flats in 2017. Over 4,000 units were launched in February 2017’s BTO exercise, with two popular mature estates, Clementi and Tampines, in the mix.
The next exercise in May is more highly anticipated, with the up-andcoming Bidadari estate offering more than 1,300 units. In 2016, Bidadari’s BTO launches saw more interest than supply could meet, especially with the larger units among applicants.
Bidadari’s popularity stems from the government’s plans for the areaas part of the extended decentralised Central Business District in Paya Lebar, as well as its convenient location in the city fringe, just minutes away from Dhoby Ghaut via public transport. Furthermore, the state’s urban planners have drawn up plans for a garden estate, with lakes, parks and suburban shopping centres.
While the HDB resale market continues to be propped up by demand from those who need to move with a degree of urgency, or who choose not to wait for a new flat to be built, the relatively lower price and the attraction of being the first occupant of the unit continues to draw buyers to BTO launches. This could potentially drain demand away from the HDB resale market, another factor that continues to keep prices in that segment suppressed.
Buyers undecided on the route to take, but are looking to live in popular estates could potentially wait for the next BTO launch, trying their luck at the ballot. It is only if they are unable to secure a BTO unit that they decide to enter the resale market.
Not so great expectations
According to PropertyGuru’s Property Sentiment Survey for H2 2016, more than half of the respondents felt that HDB resale prices are likely to rise over the next five years, despite the weaker macroeconomic climate and continued affordability curbs.
This is not necessarily a worrying sign, and suggests sense in the market. Most Singaporeans have their wealth tied up in their real estate assets, which are largely HDB flats. An increase in prices, especially one that is sustainable, will also imply an increase in wealth for many Singaporeans.
More importantly, price increases will need to come with an overall increase in wages, to prevent issues of affordability.
The increased grants are likely to help Singaporeans who want to buy a resale flat, especially in the more expensive mature estates. In the short term, they might motivate individuals who have been waiting on the sidelines to enter the market. Longterm however, the increase in grants might not necessarily move the needle significantly, if wages are unable to rise with housing prices.
To read more on the HDB resale market and rental market outlook, visit: bit.ly/hdboutlookh12017
Two adjoining freehold residential redevelopment sites within the Balmoral Road area have been put up for sale by public tender, revealed marketing agent Edmund Tie & Co.
Launched in a concurrent but separate tender, the two sites at Balmoral Road and Ewe Boon Road are zoned residential, with a gross plot ratio of 1.6 and a building height control of up to 12 storeys under the 2014 Master Plan.
The sites have a combined area of around 57,349 sq ft, and are expected to attract strong interest from both local and foreign developers due to their rarity, along with “signs of the Singapore residential market bottoming out and growing momentum in sales volume in recent months”.
With this, Edmund Tie & Co. expects “many parties to submit bids for both sites as they offer greater economies of scale and flexibility in terms of layout and efficiency”.
Assuming an average apartment size of 70 sq m, the combined site is “ideal for an upscale boutique residential project of about 121 units”, it added.
However, the successful bidder will have to pay an estimated total development charge of around $31.5 million to redevelop the combined site up to a plot ratio of 1.6.
“The subject sites are among the last few remaining development land at the Balmoral Road area. Such opportunities where a freehold site within a prime location is available for sale are getting harder to come by as much of the area has already been developed,” said Swee Shou Fern, Senior Director for Investment Advisory at Edmund Tie & Co.
The tender exercise for both sites will close on 20 April.
source credit : propertyguru.com
Even with only one new project launch, the number of private residential units (excluding ECs) sold by developers rose 155.8 percent to 977 units in February 2017 from 382 in the previous month, according to data from the Urban Redevelopment Authority (URA).
On a yearly basis, private homes sales soared 222.4 percent from the 303 units sold in February 2016.
The Clement Canopy, which was the only new launch in February, emerged as the best-selling project, with 207 units sold at a median price of $1,343 psf. It was followed by Parc Riviera and The Santorini, with 200 units and 51 units sold at median prices of $1,281 psf and $1,041 psf, respectively.
Rounding up the top five best-selling projects are The Glades (30 units) and The Venue Residences (28 units).
Sales of ECs also increased 78.8 percent to 329 units in February, despite the lack of new projects.
Sol Acres topped new EC sales with 82 units sold, followed by The Terrace and The Visionaire, with 40 units and 39 units sold, respectively.
Analysts noted that the healthy figures indicated significantly better market sentiments from the previous year and an early start to the buying momentum this year.
“There is a greater sense of confidence in both developers and buyers,” said Ong Teck Hui, JLL’s National Director for Research and Consultancy, adding that 770 of the 977 private homes sold in February were from previously launched projects.
“This tells us that with more positive sentiments, buyers are not just attracted by newly launched projects but also drawn to those launched previously, reflecting a more broad-based improvement in demand,” he said.
“The recent easing of the Seller’s Stamp Duty and the Total Debt Servicing Ratio would be a favourable enhancement on a market that is already on a buying uptrend.”
Meanwhile, Desmond Sim, Head of CBRE Research for Singapore and South East Asia, believes the sales levels “reinforce the current trend of buyers favouring projects with units priced at a palatable quantum”.
Sim revealed that he does not expect the trend to change even with the recent tweaks to the property curbs.
Source : read full article at propertyguru.com
A 99-year leasehold residential site at Tampines Avenue 10 (Parcel C) has been put up for sale by public tender, said the Urban Redevelopment Authority (URA) on Tuesday (14 March).
The 2.17ha site is located between two upcoming condominium projects – The Alps Residences and The Santorini. Launched for sale under the confirmed list of the first half 2017 Government Land Sales (GLS) Programme, it can yield up to 715 housing units.
The URA noted that the site is linked to other parts of the island via major roads and expressways, such as the Pan Island Expressway and Tampines Expressway.
The future residential development is ideal for families with school-going children, as it is near various schools including United World College of South East Asia (East Campus), Temasek Polytechnic and St. Hilda’s Primary and Secondary Schools.
Industry analysts, however, expect cautious bidding in the tender due to the large housing supply within the vicinity, reported TODAYonline.
“While there are many cash-rich developers wanting to deploy their cash, the location attributes of the site can be challenging. The United World College is much-desired for expats with school-going children, but there is already a large supply of condominiums in the vicinity that could satisfy the needs of these parents, and demand may be insufficient,” said Ku Swee Yong, CEO of International Property Advisor.
He expects the tender to attract five to seven bids, with the top bid ranging from $450 to $550 psf per plot ratio. This works out to approximately $295 million to $360 million.
The tender for the land parcel will close on 25 April, said the URA.
Source: Read full article at propertyguru.com
With effect from 11 March, the government will implement changes to the Seller’s Stamp Duty (SSD) and Total Debt Servicing Ratio (TDSR) framework, but will retain the current Additional Buyer’s Stamp Duty rates and loan-to-value (LTV) limits, according to a joint statement from the Ministry of Finance and Ministry of National Development on Friday (10 March).
Currently, the SSD is paid by homeowners who sell their residential property within four years of purchase, at rates of between four percent and 16 percent of the property’s value. Since this measure was introduced in January 2011, the number of property sales within the four-year window has fallen significantly.
As such, the government will now reduce the holding period for imposing SSD from the current four years to three years. The SSD rate will also be lowered by four percentage points for each tier. The new rates will range from four percent for properties sold in the third year to 12 percent for those sold within the first year. This applies to residential properties purchased on or after 11 March 2017.
At the same time, the TDSR framework will no longer apply to mortgage equity withdrawal loans with LTV ratios of 50 percent and below. This comes after some borrowers shared that the TDSR framework limited their flexibility to monetise their properties in their retirement years.
Meanwhile, National Development Minister and Second Minister for Finance, Lawrence Wong, will introduce legislative changes in Parliament today on stamp duties for property holding companies that undertake transfers of equity interests in entities holding residential properties. This would be similar to what would happen if they were to buy or sell the properties directly.
Source: Read article at Propertyguru.com
Artist’s impression of Park Place Residences at Paya Lebar Quarter. Source: Lendlease
Australian property developer Lendlease plans to launch the Park Place Residencescondominium at Paya Lebar Quarter (PLQ) on 25 March.
It also announced unit prices at the 99-year leasehold project: the 117 one-bedroom apartments will be priced from $780,000, the 234 two-bedders from $1 million, and the 78 three-bedders from $1.6 million.
“The prices of Lendlease’s residential developments globally have historically been the lowest during the first phase of sales launches. This has resulted in early investors benefitting from the rising value of our developments,” said PLQ’s Managing Director, Richard Paine.
While all units at the 429-unit project are being made available, Lendlease plans to sell around 40 percent of its stock on 25 March, the project’s first phase of sales.
Park Place Residences is located close to two MRT lines and Changi Airport.
It is also exempt from the Additional Buyer’s Stamp Duty rules that require developers to sell all units in a development within a five-year period, as it is part of a mixed-use development located within a commercial zone.
Meanwhile, visitors to its showflat can use virtual reality (VR) technology to take a 3D tour around PLQ. The showflat for Park Place Residences will open to the public this Saturday (11 March).
Source: read articles on propertguru.com
Despite the lack of new project launches, developers sold 381 private residential units in January, excluding executive condominiums (ECs), according to latest data from the Urban Redevelopment Authority (URA). This is up 3.8 percent from the 367 units moved in December, and 17.6 percent higher than the 322 units sold in the previous year.
Developers also sold 184 EC units, down 13.6 percent from December, but 17.9 percent higher from last year, indicating more positive sentiments and outlook compared to the previous year.
“January 2017 is better than January 2016. Notwithstanding the lead-up to the Lunar New Year celebration in January, market sentiments and outlook at the onset of 2017 is clearly much more positive than the beginning of 2016, which was marred by a volatile stock market that dampened sentiments,” said Ong Teck Hui, National Director, Research & Consultancy at JLL.
Given the improved sentiments, Ong expects a more active first quarter this year as developers are more confident to launch new projects.
In fact, Desmond Sim, Research Head for Singapore and Southeast Asia at CBRE, expects new sales in February “to be higher with the launch of The Clementi Canopy and possibly Grandeur Park Residences if it is launched soon”.
Mohamed Ismail, CEO of PropNex Realty, said he also expects February “to enjoy a healthy number of transactions, exceeding January’s numbers, along the lines of 700 units. Whereas in March, we can expect more than 1,000 units sold”.
“This is indeed a buyers’ market which home buyers should take advantage of, while interest rates are still low,” noted Ismail, who also expects developers to continue dangling incentives to move unsold units.
Read article at propertyguru.com
The Real Estate Developers’ Association of Singapore (Redas) has called on the government to review the property tax for vacant private land, and to grant property tax exemption for land slated for, or under development, and also buildings undergoing renovations, reported the Business Times.
Under the Property Tax Act, the annual value of vacant land is assessed at five percent of its capital value, on the assumption that the land is freehold. However, Redas noted that a freehold site’s annual value tends to be 10 percent higher compared to that of a 99-year leasehold site.
“The disparity widens for say a 30-year leasehold industrial property, or a petrol station, or a piece of transitional office land on a 15-year lease, where they are assessed on the basis of a freehold title,” it said in its budget wish-list.
“Operators of such properties will find the current assessment a cost burden to their businesses.”
On the property tax exemption, Redas explained that developers of land slated for, or under development, are yet to receive an income from such properties. As such, a tax exemption will help these developers significantly reduce development costs as well as business risks.
On the other hand, an exemption or concessionary rate for buildings undergoing additions and alterations (A&A) would “encourage owners to retrofit and upgrade their buildings, as well as adopt innovative solutions”.
“This is in line with the government’s efforts to rejuvenate the city and ensure a more sustainable built environment,” noted the association.
D09 | Angullia Park
Freehold | 54 units
Est TOP: 2014
D03 | Dundee Road
99 Years | 736 units
Est TOP: Dec 2020
D14 | Jalan Eunos
Freehold | 48 Units
Est TOP: Dec 2020
District 09 | Leonie Hill
Freehold | 124 units
Est. TOP : TBA
District 09 | Martin Place
99 years | 450 units
Est TOP: Dec 2021
District 19 | Yio Chu Kang
99 years | 531 units
Est TOP: Feb 2020
District 03 | Commonwealth Ave
99 years | 845 units
est TOP: Dec 2017
District 15 | Siglap Link
99 Years | 843 units
Est TOP: Apr 2021
D14 | Paya Lebar Rd
99 years | 429 units
Est. TOP: Dec 2020
District 09. Mount Sophia
99 Years | 493 units
Est. TOP : Dec 2018