Private-property prices fall sharply in core area

[Old-driver]

Telok Kurau area small small units?

[Sabbie]

You u can find then buy lor! btw where ah?

 

Of cos not telling you la, but 850 metres away from the MRT....and don't think that place will be up and coming like Punggol Walk....so thinking hard about it...and take my time to think over.....once I buy have to slog my life away leow....sigh

Edited February 11, 2012 by Sabbie

[Sabbie]

He always talk only

 

Lol, just like you saying a project near KTVs is prestigious and peaceful?

[Sabbie]

Telok Kurau area small small units?

 

I already said mimimum 1000 sq ft ley....that area mimimum selling 1250psf....and yes....3 bedders can be 850 sq feet....my god...

[Old-driver]

Of cos not telling you la, but 850 metres away from the MRT....and don't think that place will be up and coming like Punggol Walk....so thinking hard about it...and take my time to think over.....once I buy have to slog my life away leow....sigh

Yawn...850 m is very far Cheap means inconvenience lor

[Old-driver]

He always talk only

I just found out :angry:

[Sabbie]

Yawn...850 m is very far Cheap means inconvenience lor

 

Still walkable la but abit far....all about compromise I think....hard to find the perfect one....if so good....sure going for 1300 psf like watertown

[Windwaver]

Once i/r rise and money becomes tight, thats when they will start to sell.

So i/r is the largest determining factor, amongst others.

 

Another major factor is job security. I have seen many people fall into depression because they got retrenched. Not just in bad times, even in good times

[Sabbie]

Another major factor is job security. I have seen many people fall into depression because they got retrenched. Not just in bad times, even in good times

 

That's why I say, be your own boss, you will never get retrenched

[Meanmachine]

loving this scene...hoping it to fall further...

 

Havent U learnt,would U catch a falling knife? Even if it did, ppl still wait to fall down South,

 

In d end, one nvr get to buy anything, The smart one go in discreetly and buy when no one is buying, when U see long Q outside new launch, it is d wrong time to buy.

 

[Scb11980]

Anyway don't see agent no up, they are actually the king, bank will suck up to them to refer loans, valuers and lawyers suck up to bank to refer cases....some valuers also poor thing.....I fark them when they give me a crap valuation....especially those poly valuers not to say i look down on them hor....I tell them I check myself already got transacted price wtf you cannot match! hahaha

my goodness bro

 

within a week or so you are already NOS

 

in another few weeks you would become fast and furious

 

how to catch up with you

 

 

[Scb11980]

Home prices go up, but sizes go down

 

11 Feb 2012

Straits Times

THE prices keep going up but the median size of private homes has been rapidly shrinking as home buyers try to stretch their dollar further.

 

Developers are driving the trend as they downsize homes to keep them affordable even though the prices per sq ft (psf) have been increasing.

 

The shrinkage has been marked with the median size of all new homes sold last year falling to 904 sq ft - 26 per cent less than the median 1,216 sq ft just two years ago, according to an analysis by consultancy CBRE of caveats lodged.

 

Experts add that a typical three-bedroom unit has been whittled down from about 1,100 sq ft to 1,300 sq ft five years ago to about 1,000 sq ft.

 

Shoebox apartments of 500 sq ft and less are also likely to have brought the median home size down as they have been gaining in popularity in recent years.

 

They usually go for under $1 million and attract mostly investors.

 

Sales of such units have shot up from 300 in 2008 to 1,900 in 2010, or from 6 per cent to 12 per cent of developers' sales over the same period.

 

Mr Colin Tan, research head at Chesterton Suntec International, said it is 'alarming' to note that half of all new homes sold last year were 904 sq ft or smaller.

 

'Unless all of these units are popular due to lifestyle changes...the data reflects how much damage has been inflicted on our physical real estate by high property prices,' he added.

 

'I expect average sizes of sold units to continue getting progressively smaller as long as market price levels remain high.'

 

Big units are also likely to command a premium in the longer term as there will be fewer of them, Mr Tan noted.

 

Mr Ong Teck Hui, head of research and consultancy at Credo Real Estate, said there has been a definite trend towards smaller units, especially in recent years.

 

In 2005, units up to 1,076 sq ft comprised 35 per cent of new private home sales, but last year that figure jumped to 65 per cent.

 

Affordability is a major factor in the shrinking of floor areas, he said, with home prices surging 74 per cent from 2005 to last year.

 

'Back in 2005, one could buy a new 1,100 sq ft to 1,200 sq ft three-bedroom suburban condo for $500 psf to $600 psf. Today's rate for a comparable unit would generally be upwards of $900 psf, making bigger floor areas less affordable than before,' Mr Ong noted.

 

Mr Tan Kok Keong, OrangeTee's head of research and consultancy, said lifestyle changes, like more singles choosing to live on their own, could have led to smaller homes.

 

'But the trend of shrinking homes might be reversed if property prices fall, allowing developers to build larger homes instead while keeping overall prices steady,' he added.

 

He noted that the median of 904 sq ft is just slightly smaller than a four-bedroom Housing Board (HDB) flat, which is usually 90 sq m to 95 sq m - or between 969 sq ft and 1,023 sq ft.

 

Private home sizes cannot keep getting smaller as there is a limit to how much home buyers, such as HDB upgraders, might be willing to trade size for private condo amenities, he said.

 

Home values have been generally rising on the back of the property market's recovery from the global financial crisis in 2009.

 

Median prices reached $1,194 psf in 2010 before dipping slightly to $1,125 psf last year, possibly due to an increased number of suburban homes sold compared with those sold in 2010.

 

But while the number of new homes sales in 2010 and last year exceeded the number in the previous record year of 2007, they were well below the total transaction value of $24.5 billion in 2007.

 

Experts say this is because 2007 was a year when the high-end and luxury market peaked and thousands of expensive homes in districts 9, 10 and 11 were snapped up.

 

On the other hand, it was the mass-market segment, with typically lower quantums, that powered the property market in the past two years.

 

IMPACT OF HIGH PRICES

 

'Unless all of these units are popular due to lifestyle changes... the data reflects how much damage has been inflicted on our physical real estate by high property prices.'

 

Mr Colin Tan, research head at Chesterton Suntec International, who finds it 'alarming' that half of all new homes sold last year were 904 sq ft or smaller

 

 

[Scb11980]

Playing the waiting game

 

11 Feb 2012

By Colin Tan

[Scb11980]

Change of focus for property investors

 

11 Feb 2012

Straits Times

THINK of property investment, and most people think of residential properties.

 

But more individuals and investors are being drawn to industrial and commercial properties as an alternative place to park their investment cash.

 

This growing group of buyers accounted for up to half of sales at some newly launched commercial projects.

 

One factor may be that these purchases are exempt from the recently announced additional buyer's stamp duty, though other charges apply.

 

Not surprisingly, business operators still make up the bulk of buyers of factories and other commercial and industrial property but investors are showing more and more interest.

 

For example, at Primz BizHub, an industrial project in Woodlands, The Straits Times understands investors account for 30 per cent of the sales.

 

More than 150 of the project's 380 factory units have been snapped up since marketing of the project started early last month, with units transacting at an average price of $390 psf.

 

Units range in size from 926 sq ft to 2,590 sq ft, with the smallest 926 sq ft unit costing $351,880.

 

Paya Lebar Square has seen investor interest inch up since sales of its strata office units started in December last year. Investors account for 52 per cent of sales so far at the 99-year leasehold project. The rest have been bought by businesses for their own use.

 

The stronger interest from investors has helped to drive the price slightly higher. The average selling price stands at $1,710 psf, a $30 increase from the last reported price.

 

EL Development chief executive Lim Yew Soon said his Eldix project in Mandai has also seen a recent rise in investor interest as more individuals or groups of individuals buy units.

 

Of the 40 units sold so far, investors account for 20 per cent of the transactions, up from the 10 per cent to 15 per cent recorded in late December.

 

Even businesses which buy industrial and commercial property could be using the space for investment purposes.

 

Mr Rocky Lau, managing director of Cutter Technologies, bought two 1,160 sq ft units at Primz BizHub for about $380,000 each in anticipation of future expansion.

 

'But we have to look at the timing of the market. If it's not good, then we can always rent out the space and use it for investment.'

 

Industrial and commercial property may be exempt from the additional buyer's stamp duty but buyers have to pay a 7 per cent government service tax.

 

Also, they cannot use their Central Provident Fund to offset the property purchase.

 

Analysts point out that the lower cash outlay required to buy strata industrial and commercial property is one big draw for investors. It is possible to snag a unit for less than $500,000, depending on factors such as the location and type of building.

 

Such deals are rare in the private residential segment, with homes more likely to start above the $1 million mark.

 

Rental yields are another attraction, with some industrial and commercial spaces touting an estimated yield of 6 per cent to 8 per cent, significantly higher than the 2 per cent to 3 per cent return on investment for residential property.

 

But higher returns come with bigger risks, said Mr Nicholas Mak, head of research at SLP International. 'Residential properties may have a lower yield but such properties can tap into a bigger pool of potential buyers and usually have good capital appreciation,' he said.

 

'Industrial and commercial property will also be the segments that get hit the hardest when there is a prolonged economic downturn.'

 

 

[Sabbie]

Good articles Bro, read them in the ST leow, always enjoyed your insightful sharings

[Scb11980]

Business Times - 11 Feb 2012

 

Bungalow market starting to move again

 

Agents report increase in number of viewings, sellers becoming more receptive to offers

 

By KALPANA RASHIWALA

 

AFTER being in deep freeze for several weeks, the bungalow market has started to thaw. This may be due to the firmer stockmarket and seeming improvement in the Eurozone crisis of late, suggest agents.

 

'The market is surprisingly getting back its momentum and buyers are making offers for units which are reasonably priced,' says William Wong, managing director of RealStar Premier Group, which specialises in bungalows in Good Class Bungalow Areas (GCBAs) as well as other locations on mainland Singapore.

 

He gives a few examples. The owner of a bungalow in the Oei Tiong Ham Park GCBA on land of about 11,000 sq ft had been asking for about $20 million before the introduction of the additional buyer's stamp duty (ABSD) on Dec 8 last year but has now lowered the price tag to $19 million. Over in the Ford Avenue GCBA, the asking price for a bungalow on a 20,000 sq ft plot has been trimmed from $40 million previously to $36 million.

 

'The quantum of price adjustment depends on the owner's motivation, but they're more receptive nowadays to granting viewing appointments and more prepared to listen to any offers,' says Mr Wong.

 

No caveats for deals in GCBAs have been lodged so far this year, but RealStar has brokered two such transactions. One is at Lornie Road for $16.5 million or $863.90 per square foot based on land area of about 19,100 sq ft. The two-and-a-half storey freehold property, with a built-up area of about 8,700 sq ft, has seven bedrooms and three smaller rooms. The other, near the Coronation area, has been sold for $13 million. It sits on about 11,000 sq ft land.

 

Word on the street is that a deal was sealed this week in the Chestnut GCBA for about $12 million or $983 psf on land area of about 12,209 sq ft.

 

Market watchers note that the introduction of the ABSD on Dec 8 does not have such a big direct impact on the GCB market as on mainland Singapore, buyers of landed residential properties must be Singaporeans or at least permanent residents (PRs). The latter need permission from Land Dealings (Approval) Unit before they can buy a landed home and criteria for such approval were tightened last year.

 

Under the ABSD regime, PRs pay 3 per cent ABSD on their second and subsequent residential property while Singaporeans pay the same ABSD rate on their third and subsequent residential property. Foreigners, however, must pay 10 per cent ABSD on any residential property purchased in Singapore.

 

'So a Singaporean or PR investor who buys a GCB may be liable for 3 per cent ABSD. On a $30 million GCB purchase, the ABSD would be $900,000 - under $1 million,' said Samuel Eyo, director, prestige homes, at Savills (Singapore) who added negotiations for GCBs are usually done in quantums of '$2-3 million or even $5 million'.

 

He attributes the slowdown in GCB activity during December and January more to the year-end holiday season and festivities stretching upto Chinese New Year in January.

 

'But the GCB market was hit by overall negative sentiment following the introduction of the ABSD and buyers made full use of this opportunity to try and negotiate for lower prices,' he added. Post-Chinese New Year, GCB viewings have increased, says Mr Eyo. During the Chinese New Year holidays, agents were busy entertaining potential buyers from China for viewings on Sentosa Cove.

 

CBRE director, luxury homes, Douglas Wong, says: 'Although the ABSD does not have a big direct impact on the GCB market, when taken into consideration with the global economic situation, it has dampened the general sentiments of the market. Buyers have adopted a wait-and-see attitude to monitor the property market. A clearer picture may emerge only in three to six months.'

 

Where the ABSD is having a bigger impact is for bungalows on Sentosa Cove, where 37.5 per cent of the 24 bungalows transacted last year were picked up by non-PR foreigners, notes Mr Eyo. Sentosa Cove is the only place in Singapore where non-PR foreigners may buy landed properties, albeit subject to LDAU approval.

 

Newsman Connections managing director Kris Ho, who brokered $192 million of bungalow sales on Sentosa Cove last year, mostly to overseas buyers, reckons that the 10 per cent ABSD may not affect some foreign buyers who are used to paying even higher taxes on property purchases in their home countries.

 

'I've seen a steady stream of overseas clients from China, Indonesia and Europe for viewings at Sentosa Cove since Chinese Year Year. Owners are so far holding on to their prices,' she added.

 

However, Ms Ho said she does not know of any bungalow deals in the upscale waterfront housing district that were entered into post-ABSD. The last bungalow deals in the area for which caveats were lodged in December are along Cove Drive, at $1,703 psf and $1,782 psf. The highest price achieved for a bungalow in the district last year was $2,610 psf for a property along Ocean Drive on land of about 9,580 sq ft, totalling $25 million, transacted in November.

 

The seller is understood to have incurred a slight loss, taking into account stamp duties and other transaction costs. He had paid nearly $24 million for the property in early January last year.

 

Elsewhere on mainland Singapore outside GCBAs, interest in landed homes has also started to revive, say agents.

 

Caution in the air

 

Says Credo Real Estate managing director Karamjit Singh: 'Buyers are starting to shop around again for landed properties in greater numbers compared to December and January - when ABSD was introduced and during the festivities.

 

'Most of these buyers seem to be business people or successful professionals in their late 30s onwards, looking for own occupation. Although the crowds are more, there's still caution in the air.'

 

This week, Credo brokered the sale of a unit at Carmine Collection, a development of six freehold semi-detached houses at the hilltop estate of Eng Kong Road/Lorong Kismis in the Jalan Jurong Kechil/Upper Bukit Timah locale. The unit sold is on land of 2,282 sq ft and comes with a home lift and swimming pool. It fetched $3.72 million.

 

RealStar's Mr Wong too reports greater interest in landed homes in the Sunset vicinity - near Clementi, on the outskirts of Bukit Timah - where there are currently more than 10 bungalows on the market. 'Prices in the Sunset area are lower than in central Bukit Timah, for example, Trevose Crescent, University Road and Kheam Hock Road, which appeals to some buyers. As owners see transactions in the vicinity, they too consider putting their homes up for sale,' said Mr Wong.

 

In such non-GCBA locations too, owners have adjusted their price expectations in the past couple of months. For example, the asking price for a bungalow in the Sunset area on land of 6,400 sq ft has gone down from $9 million pre-ABSD to $8 million, he adds.

 

Word in the market is that a two-and-a-half storey bungalow with six bedrooms in the Sunset location changed hands recently at $8.8 million or $1,381 psf on land of about 6,370 sq ft, while a two-storey link-bungalow in the neighbourhood changed hands for about $5.2 million or close to $1,300 psf on land area.

 

Near Trevose Crescent off Dunearn Road, a three-storey renovated bungalow is understood to have been sold last month for nearly $11 million or $1,830 psf on land area of about 6,000 sq ft.

 

 

[Theobserver]

There is a trend nowadays that people are buying old freehold semi-ds, terraces, etc. After that they would re-construct it to the maximum permissible floor area, for example, 2 storeys becomes 3 storeys. You can imagine how much the value will be inflated. Rich people's game.

[Bhtan]

Blossom EC advertise a full page in ST today.

But they are supposed to be already SOLD OUT after they lowered price few months ago !