Private property prices... Up or Down?

[merc280v6]

I thought it was 4 digit previously?

Haha ah boy, when you born?

Up to the early 70's, Singapore postal code was 1 and 2 digit only.

 

So Queenstown was Singapore 3.

Holland and Tanglin was Singapore 10.

Raffles Place was Singapore 1 ... and so forth.

 

Go ask your parents

[Theoldjaffa]

http://www.straitstimes.com/business/property/rents-and-capital-values-down-risk-appetite-up

Rents and capital values down, risk appetite up

Dec 25, 2016

 

MR DONALD HAN

 

Chesterton Singapore's managing director

 

 

Q How has 2016 been for the real estate industry?

 

A There were highs and lows in 2016. The lows are continued decline of capital values and rents in all segments of the market, including office, retail, residential and hospitality and industrial sectors.

 

Several highs achieved included near record-breaking land prices achieved for Government Land Sales (GLS) residential sites in Fernvale Road and Margaret Drive and a commercial/white site at Central Boulevard.

 

Of course, there's that single largest commercial investment transaction in the Asia-Pacific involving the sale of Asia Square 1 for $3.4 billion to Qatar's sovereign wealth fund.

 

 

Q How do you see 2017 panning out?

 

A Despite eroding fundamentals for both rents and capital values in the shorter term, developers' risk appetites for the longer term have grown with more bidders placing higher bid prices for each GLS site tender.

 

Investment sales en bloc in District 9 have gathered pace with the sale of 8 Hullet Road, 120 Grange Road and 3 Cuscaden Walk.

 

Unsold inventory in the core central region has been reduced, which should set the stage for a price recovery in the area, led primarily by District 9 properties.

 

Based on developers' land bid prices this year, I think these projects when launched in 2017 may see a 3 to 5 per cent price uptick compared with current levels. Not all new projects will enjoy good take-up. Those located near shopping malls, MRT and amenities (like parks and waterways) will see better success.

 

All eyes are on the Committee on the Future Economy's recommendation early next year. I hope some new prudent land policies will be revealed then.

 

 

Q Going into 2017, please give some tips to home buyers, sellers, owners?

 

A For home buyers, some good deals can be found in the secondary market. Auction sales, especially those offered by the banks via mortgagee sales, could be a good source.

 

The market for sellers/owners is likely to hit an inflection point some time in 2017, barring any unforeseen economic or technical recession in Singapore.

 

If you need to sell, it's likely better to sell in 2017 than in 2016 (not that we have many days left), although 2018 is probably the most opportune time.

 

i think he's providing information that was already reported in the media leh.

 

tips? i don't see any value add from him in the article. it's basically common sense for those "tips" he's giving.

[merc280v6]

i think he's providing information that was already reported in the media leh.

 

tips? i don't see any value add from him in the article. it's basically common sense for those "tips" he's giving.

Tale of Two Cities ...

 

It means that CCR D9/10 has bottomed out and starting to turn up, with fresh foreign interest and investment funds (or otherwise) being parked here ... where it is deemed 'safer'.

 

Good time to snag D10 GCBs and top-end properties in and around the Nassim area!

 

OCR and fringe LH property laggards are still languishing from the CMs instated, with low/no foreign investment interest whatsoever.

 

Caveat Emptor for the rest / masses!

[Throttle2]

i think he's providing information that was already reported in the media leh.

 

tips? i don't see any value add from him in the article. it's basically common sense for those "tips" he's giving.

Yup keh zhua, as they always have been.

[lumdaryl]

Just drove past Macpherson Mall. 

You are right. The whole mall looks empty and unoccupied except for lights for NTUC and a Salon. Lots of pasted for rent posters on glass wall.

 

Looks more like crisis period but if the mall is really opened, at least some shops should be able to find tenants.

May be the mall has not fully TOP yet??

I think this is the general situation for such malls. You should take a look at Kensington Square. It has only Giant Express operating. 

[Kusje]

Haha ah boy, when you born?

Up to the early 70's, Singapore postal code was 1 and 2 digit only.

 

So Queenstown was Singapore 3.

Holland and Tanglin was Singapore 10.

Raffles Place was Singapore 1 ... and so forth.

 

Go ask your parents

[Mercs]

i think he's providing information that was already reported in the media leh.

 

tips? i don't see any value add from him in the article. it's basically common sense for those "tips" he's giving.

Haha, you sure you wanna listen to their tips? Just take as reference guide.

 

And then there are also some who thinks they are smart and always right, or I should say just trying to act smart.

 

I say do homework, trust in your own instinct and gut feel, to make the right judgement call

[Mercs]

http://www.theedgeproperty.com.sg/content/guocoland-singapore-and-beyond

GuocoLand in Singapore and beyond

December 28, 2016

 

"On June 28, listed developer GuocoLand set the market abuzz when it submitted the top bid of $595.1 million, or $1,239 psf per plot ratio (ppr), for a coveted residential site at Martin Place.

 

The 171,535 sq ft site can yield up to 450 residential units. It attracted a total of 13 bids, with GuocoLand’s bid edging out the second-highest by just 1.2%. Based on historical data of sites sold by URA, the price psf ppr paid by GuocoLand marks a new high for a pure residential Government Land Sales site."

[Mercs]

http://www.theedgeproperty.com.sg/content/mcc-land-hao-yuan-launched-highest-number-projects-2016

MCC Land-Hao Yuan launched highest number of projects in 2016

December 28, 2016

 

Despite 2016 being a difficult year, MCC Land and its partner Hao Yuan Investment launched three projects that make up a total of 1,720 units. They started with Northwave executive condo (EC) in Woodlands in July, followed by The Alps Residences in early October and Queens Peak the following month. As at Dec 11, MCC Land and Hao Yuan had sold a total of 1,117 units this year, from new launches and existing projects.

 

“We are encouraged by the overall sales achieved in 2016 as this has been a challenging year underpinned by uncertain geopolitics as well as the sustained effect of the property cooling measures,”

 

MCC Land saw unprecedented sales at The Alps Residences, with 280 units sold on the first day of its launch, or 44% of the total units. By mid-December, 356 units (56%) had been taken up. The strong sales momentum gives Tan the confidence to claim that “the Alps Residences could be one of the best-selling projects of the year”.

 

The Alps Residences’ success has an added benefit: It sparked a rebound in sales at the neighbouring The Santorini. Close to 100 units were sold at the latter in the last two months, adding up to total sales of 262 units (44%) out of 597. MCC Land plans to relaunch The Santorini after it obtains a Temporary Occupation Permit in 2Q2017.

 

 

Active interest in Queenstown area

 

A month after launching The Alps Residences, MCC Land and Hao Yuan Investment launched Queens Peak. The 736-unit development is located on Dundee Road and linked directly to the Queenstown MRT station. Since early November, 275 units (37%) have been sold. Tan remains confident that the project will continue to see steady sales as it boasts 77 lifestyle facilities, smart-home features and private lift access for the three-, four- and five-bedroom apartments that make up 20% of its total units.

 

The recent sale of a land parcel in the nearby Margaret Drive has also buoyed Tan’s confidence. The tender for the site under the government land sales programme closed on Dec 6, with 14 bids. The top bidder, MCL Land, won with a bid of $238.39 million, which translates to a unit price of $998 psf per plot ratio (psf ppr). This is 7.9% higher than the next highest bid; it is also the widest gap between a top and second- highest bid for a GLS site sold this year, says Nicholas Mak, head of research and consultancy at SLP International.

 

“The strong sales of the nearby Queens Peak may have encouraged the developers to bid for the site,”

 

The top bid for the Margaret Drive site is 14.5% higher than the $871 psf ppr paid by Hao Yuan Investment for the Queens Peak site in June 2015, and the $883 psf ppr City Developments forked out for the 845-unit Commonwealth Towers in June 2013. And the latest site at Margaret Drive is further from the MRT station, notes Mak. “The high participation rate and bid price are indications that many developers are hungry for land.

 

Based on the land price of $998 psf ppr for the Margaret Drive site, Mak estimates that the new project could be priced at $1,700 psf when it is launched between late 2017 and early 2018.

[HP_Lee]

Wow! Other expert attempt to see the future with a crystal ball.

 

http://www.straitstimes.com/business/property/rents-and-capital-values-down-risk-appetite-up
Rents and capital values down, risk appetite up
Dec 25, 2016

MR DONALD HAN

Chesterton Singapore's managing director


Q How has 2016 been for the real estate industry?

A There were highs and lows in 2016. The lows are continued decline of capital values and rents in all segments of the market, including office, retail, residential and hospitality and industrial sectors.

Several highs achieved included near record-breaking land prices achieved for Government Land Sales (GLS) residential sites in Fernvale Road and Margaret Drive and a commercial/white site at Central Boulevard.

Of course, there's that single largest commercial investment transaction in the Asia-Pacific involving the sale of Asia Square 1 for $3.4 billion to Qatar's sovereign wealth fund.


Q How do you see 2017 panning out?

A Despite eroding fundamentals for both rents and capital values in the shorter term, developers' risk appetites for the longer term have grown with more bidders placing higher bid prices for each GLS site tender.

Investment sales en bloc in District 9 have gathered pace with the sale of 8 Hullet Road, 120 Grange Road and 3 Cuscaden Walk.

Unsold inventory in the core central region has been reduced, which should set the stage for a price recovery in the area, led primarily by District 9 properties.

Based on developers' land bid prices this year, I think these projects when launched in 2017 may see a 3 to 5 per cent price uptick compared with current levels. Not all new projects will enjoy good take-up. Those located near shopping malls, MRT and amenities (like parks and waterways) will see better success.

All eyes are on the Committee on the Future Economy's recommendation early next year. I hope some new prudent land policies will be revealed then.


Q Going into 2017, please give some tips to home buyers, sellers, owners?

A For home buyers, some good deals can be found in the secondary market. Auction sales, especially those offered by the banks via mortgagee sales, could be a good source.

The market for sellers/owners is likely to hit an inflection point some time in 2017, barring any unforeseen economic or technical recession in Singapore.

If you need to sell, it's likely better to sell in 2017 than in 2016 (not that we have many days left), although 2018 is probably the most opportune time.

 

[Theoldjaffa]

Haha, you sure you wanna listen to their tips? Just take as reference guide.

 

And then there are also some who thinks they are smart and always right, or I should say just trying to act smart.

 

I say do homework, trust in your own instinct and gut feel, to make the right judgement call

That's why I seldom read mainstream media. Learn from the sexperts here better. Hahaha

[therock]

http://www.straitstimes.com/business/banking/banks-drop-some-fixed-rate-home-loans-amid-interest-rate-uncertainty

 

 

A number of fixed-rate mortgage plans have been pulled from the shelves lately, as banks grapple with uncertainty over the pace of interest rate hikes.

Market watchers noted that several banks are trying to ensure their margins are not squeezed by cheaply priced fixed-rate packages.

Ms Grace Cheng, co-founder of personal finance website GET.com, told The Straits Times: "For example, Maybank removed its two-year, 1.6 per cent fixed- rate package in mid-November."

She said that earlier this week, Bank of China removed its two-year fixed-rate packages, starting from 1.4 per cent, while DBS removed its five-year, 1.99 per cent fixed-rate package.

Bank of China and Maybank did not respond to queries by press time. A DBS spokesman said the five-year offer ended because it was only a temporary promotion.

 

 

DBS has a three-year, 1.88 per cent fixed-rate loan, while OCBC is offering a two-year, 2.38 per cent loan.

United Overseas Bank (UOB) has one of the best fixed-rate offers in town - a two-year, 1.8 per cent loan - but apparently not for long. MoneySmart.sg chief executive Vinod Nair said this deal has Jan 1 as its last submission date.

Such withdrawals of plans are normal reactions to market forces, said Mr Nair.

"Analysts in these banks are likely forecasting the interest rate uptrend to continue and, hence, have increased rates to protect their margins," he said.

Unlike floating- or variable- rate packages, fixed-rate loans are locked and offer certainty to borrowers.

Low interest rates allowed banks to offer competitive pricing, but this may soon prove hard to swallow.

How fast interest rates will rise next year has become a concern since earlier this month, when the United States Federal Reserve hinted that there may be up to three increases next year.

The Singapore interbank offered rate (Sibor) has been gaining in tandem, with the three-month Sibor sitting at around 0.966 per cent this week - the highest since late June.

The three-month Sibor - one of the key benchmarks that banks use to price home loans - could hit 1.35 per cent in the second quarter of next year and 1.6 per cent in the fourth quarter, according to Nomura's forecasts.

Ms Cheng said: "We expect to see further home loan interest rate changes in the upcoming weeks as the Chinese New Year period draws near, which is typically a time when banks update their rates."

Against this backdrop, those hoping to buy new homes or refinance their mortgages with good fixed-rate offers may have to act fast. Consultant Pamela Ng, 35, who is looking to sell her home to buy a new one, is unsure whether she would be missing the window for a good deal.

She said: "I have a lower risk profile and prefer fixed rates… My current concern is whether I will still be able to lock down a fixed- rate home loan next year when we have sorted out our plans for the new apartment."

A UOB spokesman said mortgage rates are reviewed according to market conditions, and urged home buyers to set aside sufficient funds to manage potential rising rates.

 

[merc280v6]

What can I say but

[Jamesc]

Maybe Donald can make another Lehman

 

and we can have low interest rates all over again.

 

All these crashes only happy when a Republican 

 

is president. They are good for crashes. 

 

[HP_Lee]

The so call expert in property market, only knows property. How can one look into a crystal ball, with taking into the broadly perspective? That is to include Geo-political risk and external policies that may impact or implicate our Island that mainly depending on trading to survive? Business is not as usual as before. He can see through the thick clouds, with knowing what's ahead. Numbers are one factor. But that, does not tell one the future.

 

Maybe it's a vested interest that pushes to do so? Well, there many other opportunities to invest on alternative investments.

 

That's the advice. 

Well, uncertainty is opportunity. But don't catch the wrong footing. We are still have good employment rate. So watch out the cliff.

 

http://www.straitstimes.com/business/banking/banks-drop-some-fixed-rate-home-loans-amid-interest-rate-uncertainty

 

[Showster]

Actually those who had listened earlier on are now on more or less fixed rates for the next two-three years.

 

It's mainly those looking to buy and start loan who are affected now.

 

I wish America all the best in her journey for growth and return interest rates to at least 3%. If America does that well, all creditor countries will surely benefit! Huat!

 

What can I say but

[Throttle2]

What can I say but

[Mercury1]

Heng I took the 1.98% fixed rate 3 years with DBS 

 

Actually those who had listened earlier on are now on more or less fixed rates for the next two-three years.

 

It's mainly those looking to buy and start loan who are affected now.

 

I wish America all the best in her journey for growth and return interest rates to at least 3%. If America does that well, all creditor countries will surely benefit! Huat!