singapore property weekly issue 179

8/10/2019 Singapore Property Weekly Issue 179

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Issue 179Copyright 2011-2014 www.Propwise.sg. All Rights Reserved.
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CONTENTS

p2 Only 5 Percent Planning to Buy Property

Now: Property Survey

p6 Singapore Property News This Week

p11 Resale Property Transactions

(October 8 October 14 )

Welcome to the 179th edition of the

Singapore Property Weekly.

Hope you like it!

Mr. Propwise

FROM THE

EDITOR
mailto:[email protected]://www.propwise.sg/advertise/http://www.propwise.sg/advertise/mailto:[email protected]


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SINGAPORE PROPERTY WEEKLY Issue 179

Page | 2Back to Contents

By Property Soul (Guest Contributor)

With developers rushing to launch or re-

launch new and existing projects ahead of the

festive season, the Saturday after the Hari

Raya Haji public holiday saw twenty-two

property advertisements in the Straits Times

marketing local property projects.

Despite aggressive marketing by developers,

the PropertySoul.com Blog Readership

Survey revealed that only five percent are

saying that they are planning to buy a private

property now. The property survey asked 355respondents when they are planning to buy a

private property. It was conducted online

between September 5 and 23 this year.

Only 5 Percent Planning to Buy Property Now: Property Survey


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Prefer to rent than buy

Despite the fact that 10 percent of

respondents are currently renting, only 5.6

percent are planning to buy. The result showsthat most renters still prefer to continue

renting instead of taking the risk to buy now

for fear of prices dropping further after their

purchase.

A total of 13 percent of respondents have no

definite timeframe to buy a private property.

Among the non-buying group, half of them

have no intention to buy at all. Another half

are waiting on the sidelines and expecting to

buy at lower prices. Some are even

anticipating a recession that may result in a

major market correction before they will

consider buying again.


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Loss of market confidence

Contrary to the common belief that the

market is affected by the property cooling

measures, including additional buyer or sellerstamp duties and the total debt servicing ratio

(TDSR) framework, only one percent of

respondents are saying that they are waiting

for the removal of buying restrictions by the

government before considering buying again.

The results show that it is the eroding

confidence in the property market, not the

cooling measures, that is to blame for the

weak demand in private residential

properties. With no sign of recovery under a

softening property market, potential buyers

are adopting a wait and see approach for

property purchases.

The opportunistic and overzealous buyers

seen in the last few years are gone. As the

combination of high prices and low yields

makes property investment unattractive,

investor appetite will naturally shrink.

Worsening of oversupply

The worsening imbalance between supply

and demand is adding to the problem.

According to URA data, 37.7 percent of

uncompleted private residential units

(excluding ECs) remained unsold as of 3rd

Quarter 2014. There are now a total of 97,180

private housing and EC units in the overall

pipeline supply. The influx of 20,852 units in

2014 and 23,769 units in 2015 to the market

will create a housing glut in the next few

years.


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That said, there is still good news in that a

significant number of survey respondents (42

percent) plan to buy in one to three years

while another 27 percent plan to do so after

three to five years.

The demand from first-time buyers,

upgraders and investors will always be there.

The current situation is a see-saw battle

between the buyers and sellers. It will persist

for some time and little can upset the balanceunless a major crisis happens.

By guest contributor Property Soul, a

successful property investor, blogger, and

author of the No B.S. Guide to Property

Investment.
http://propertysoul.com/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://propertymarketinsights.com/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://aktive.com.sg/store/no-b-s-guide-to-property-investment/http://propertysoul.com/


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Singapore Property This Week


Residential

F ew e r B T O f lat s w i l l b e la u n c h e d in 2 0 15

According to National Development Minister

Khaw Boon Wan, 25 per cent fewer build-to-

order (BTO) flats will be released in 2015.

This year, 22,400 BTO units were released.

This is 10 per cent fewer than in 2013. Due to

high demand, a total of 77,000 BTO flats

were launched from 2011 to 2013. However,

Minister Khaw said that the government will

be reducing supply of BTO flats as demand

for them has waned. According to Minister

Khaw, BTO exercises will be held every

quarter, instead of six times per year.

Nonetheless, the BTO launch sizes will

remain unchanged at 4,000 units. Minister

Khaw said that this should be sufficient to

meet demand in the upcoming year.

(Source: Business Times)

U RA : Q 3 p r iv at e r es i d en t ial p r ic e i n d ex

d o w n 0 . 7 %

According to URA, prices of privateresidential properties have fallen by 0.7 per

cent in Q3 this year from the previous quarter.

Prices have fallen across all segments of the

private residential property market, said URA.

From Q2 to Q3, prices of non-landed homes

in the Core Central Region have dipped by0.8 per cent; while prices in the Rest of

Central Region (RCR) fell by 0.4 per cent

quarter-on-quarter from Q2 to Q3 this year.

SINGAPORE PROPERTY WEEKLY I 179


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On the other hand, landed home prices have

also dipped by 1.8 per cent from Q2 to Q3.

The rental market for private residential

properties has also taken a hit in Q3, as the

market saw a 0.8 per cent dip in rental prices.

Nonetheless, the resale market has

contributed to a larger proportion of the sales

in the secondary market. According to URA,

resale transactions for private homes

accounted for 43.6 percent of all private home

sales in Q3.


H D B r e sa le p r ice s sh r in k f u r t h e r

For five consecutive quarters, HDB resale

prices have fallen due to the increase in

supply of build-to-order flats and the

implementation of the cooling measures.

According to HDB, resale prices of HDB units

have fallen 1.7 per cent quarter-on-quarter

from Q2 to Q3 this year. This fall in prices is

marginally more than the 1.6 per cent that

HDB had predicted earlier. Nonetheless, this

fall in HDB resale prices have attracted

greater demand in the market as transaction

volumes rose 2.8 per cent during Q3 to 4,513

transactions, according to the Business

Times. Not only so, more residents have

flocked to the HDB leasing market. Market

experts believe that more HDB upgraders will

be looking to rent HDB flats while they move

into their newly completed condo units.

Nonetheless, Eugene Lim from ERA Realty

believes that resale volumes will fall below

17,500 units by the end of 2014. However, he

believes that the market will pick up in 2015,

when the government cuts back BTO flat

supply.


SINGAPORE PROPERTY WEEKLY I 179


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Commercial

Q 3 in d u st r ia l r e n t s f e l l

The industrial rental market has fallen due to

an increase in industrial space and due toanti-speculation measures. The factory space

segment suffered the biggest hit, according to

the Business Times. Market experts believe

that this downwards trend will persist in 2015.

According to JTC, industrial property prices

have fallen by 0.9 per cent from Q2. On theother hand, prices for multiple-user factory

spaces have dropped by 1.8 per cent.

Nonetheless, warehouse space prices have

risen 3.2 per cent. Chia Siew Chuin from

Colliers International said that buyers and

sellers for strata-titled industrial property

contributed to falling prices in the factory

segment. Rents for multiple-user factory

space fell by 2.2 per cent from Q2 to Q3. The

average occupancy rate stands at 86.8 per

cent in Q3 this year. This is the lowest since

Q3, 2007. Nonetheless, Nicholas Mak from

SLP International expects that the overall

industrial property prices to increase by 2 to

3.5 per cent this year due to a 4.5 per cent

increase in H1 this year. On the other hand,

Chia expects rents for higher specification

properties to remain constant in Q4 2014 due

to a tight supply.


D ev el o p er s en t im e n t i m p r ov ed b y 0 .2 i n

Q3

A survey done by the National University

Singapore (NUS) and the Real Estate

DevelopersAssociation of Singapore (Redas)

showed that developers confidence in the

market has increased slightly in Q3.



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While the overall sentiment remains weak,

the overall sentiment gauge has increased

slightly to 3.7 in Q3 from 3.5 in the previous

quarter. According to the survey, the future

sentiment indicator also increased from 3.4 in

Q2 to 3.6 in Q3. Sing Tien Foo from NUS

believes that the outlook for the next six

months will remain dull as the price correction

mechanism is expected to persist. Prime and

suburban residential sectors are expected to

suffer the biggest hits as market sentiments

showed that there is a current net sentiment

balance of negative 76 per cent in the prime

residential sector. Also, the current net

sentiment balance in the suburban residential

market stands at a negative 61 percent.

According to the Business Times, fear of a

slowdown in the economy has shrouded

market sentiments. 71 per cent of the

surveys respondents believe that launch

prices of residential properties will continue

falling. Nonetheless, 19 per cent of the survey

respondents felt that market demand would

not be affected.


O f f ice p r ice s in c r e a se d b y 1 . 6%

According to URA, prices of office spaces

have increased by 1.6 percent in Q3 this year

from the previous quarter. Following a 2.8

percent climb in Q2, office space rentals

increased by another 2.6 percent in Q3. A

total of 1.087 million square meters in gross

floor area was released by the end of Q3 to

be used as office spaces. Not only so, the

amount of occupied office space increased by

50,000 square meters in Q3, as compared to

Q2. As such, vacancy rates fell from 9.6

percent at the end of Q2 to 8.4 percent in Q3.



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Nonetheless, Desmond Sim from CBRE

Research said that the increase in office rents

is likely to be fuelled by firm expansions and

not due to the slowdown in office spaces.

However, Karamjit Singh from JLL said that

the weak economy may threaten the rental

market. He predicts that as interest rates

increase, the net rental yield will be low. This

is because office prices have increased in

excess of rentals. Nonetheless, Alan Cheong

from Savills believes that Singapores office

market will remain resilient.


http://www.moneymatters.sg/


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Non-Landed Residential Resale Property Transactions for the Week of Oct 8 Oct 14

NOTE: This data only covers non-landed residential resale property

transactions with caveats lodged with the Singapore Land Authority.Typically, caveats are lodged at least 2-3 weeks after a purchaser

signs an OTP, hence the lagged nature of the data.

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

3 THE ANCHORAGE 1,550 2,000,000 1,290 FH

4 THE PEARL @ MOUNT FABER 1,389 1,610,000 1,159 99

5 HERITAGE VIEW 969 1,160,000 1,197 99

5 HUNDRED TREES 1,227 1,350,000 1,100 956

5 CLEMENTIWOODS CONDOMINIUM 1,141 1,250,000 1,096 99

5 CARABELLE 1,302 1,380,000 1,060 956

5 REGENT PARK 1,152 1,130,000 981 99

9 HELIOS RESIDENCES 1,701 4,880,000 2,869 FH

9 HELIOS RESIDENCES 1,668 4,400,000 2,637 FH

9 MARTIN NO 38 1,335 3,280,000 2,457 FH

9 TRIBECA 1,367 2,350,000 1,719 FH

9 THE MORNINGSIDE 1,302 2,025,000 1,555 FH

9 THE REGALIA 1,270 1,860,000 1,464 FH

10 NASSIM PARK RESIDENCES 3,175 10,700,000 3,370 FH

10 REGENCY PARK 2,250 3,950,000 1,756 FH

10 BELMOND GREEN 1,313 2,300,000 1,751 FH

10 VALLEY PARK 1,701 2,610,000 1,535 999

10 DUCHESS CREST 936 1,300,000 1,388 99

11 PARK INFINIA AT WEE NAM 1,001 1,845,000 1,843 FH

14 WATERBANK AT DAKOTA 484 870,000 1,796 99

14 EUNOSVILLE 1,733 1,150,000 664 102

15 PEBBLE BAY 1,378 1,700,000 1,234 99

15 CRESCENDO PARK 850 920,000 1,082 FH

15 PARK EAST 1,938 2,030,000 1,048 FH

16 WATERFRONT WAVES 1,259 1,420,000 1,128 99

Postal

DistrictProject Name

Area

(sqft)

Transacted

Price ($)

Price

($ psf)Tenure

16 THE BAYSHORE 1,184 1,150,000 971 99

16 THE BAYSHORE 1,238 1,200,000 969 99

19 KOVAN GRANDEUR 570 720,000 1,262 99

19 ROSYTH VILLE 1,109 1,000,000 902 999

19 RIVERVALE CREST 1,195 922,000 772 99

20 BOONVIEW 646 830,000 1,285 FH

21 THE CASCADIA 990 1,538,000 1,553 FH

22 PARC OASIS 1,378 1,280,000 929 99

23 HILLVIEW HEIGHTS 990 1,035,000 1,045 FH

25 PARC ROSEWOOD 431 580,000 1,347 99

26 THE CALROSE 2,185 1,760,000 805 FH

27 CANBERRA RESIDENCES 1,927 1,600,000 830 99

27 YISHUN SAPPHIRE 1,216 900,000 740 99

27 SELETARIS 1,593 1,100,000 690 FH

28 SELETAR SPRINGS CONDOMINIUM 980 788,000 804 99

28 SELETAR SPRINGS CONDOMINIUM 1,636 1,050,000 642 99

singapore property weekly issue 179

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