Tag Archives: private residential

Private Home Resale Prices up


While prices have gone up, the number of resale transactions dipped by 2.2 per cent on-month in October with an estimated 451 units resold, according to flash estimates from SRX Property.

Resale prices of non-landed private homes climbed marginally in October by 0.4 per cent month-on-month, according to flash estimates from SRX Property on Tuesday (Nov 11).

When compared with October 2013, resale prices of non-landed private homes have dropped 4.5 per cent. Compared with the recent peak in January 2014, prices have declined 5.2 per cent, SRX said.

Resale prices of private homes in the Rest of Central Region and Outside of Central Region drove the climb, with both increasing 0.6 per cent. In contrast, prices in the Core Central Region dipped 0.3 per cent.

However, the number of resale transactions slipped by 2.2 per cent from September, with an estimated 451 units resold in October compared to the 461 transacted units from the previous month.


The overall median Transaction Over X-value (TOX), which measures whether people are overpaying or underpaying the SRX Property X-Value estimated market value, dipped to -S$4,000 in October from -S$2,000 in September.

For districts with more than 10 resale transactions, districts 9, 10 and 25 saw a positive median TOX, with district 10 posting the highest median TOX of S$30,000, followed by district 9 with S$22,000 and district 25 with S$15,000.

Conversely, districts 14 had the lowest median TOX, posting -S$41,000, followed by district 12 with -S$40,000 and district 11 with -S$31,000.

Resale prices of non-landed private homes dip in September, but volume increases

Resale prices of non-landed private homes fell 0.3 per cent in September from the previous month, SRX Property said in its flash report on Tuesday.

The lower figure was attributed to a 2.1 per cent fall in resale prices of homes in the Outside Central Region (OCR).

In comparison, prices of non-landed private homes in the Core Central Region (CCR) and Rest of Central Region (RCR)went up by 0.9 per cent and 2.9 per cent, respectively.

Prices of homes in the CCR has continued to rise after a 4.2 per cent gain in August.

According to the the SRX Property report, resale prices of non-landed private homes have dropped 4.6 per cent from September 2013. They are also 5.6 per cent lower from a peak in January this year.

On the other hand, resale volume increased by 15.3 per cent in September. An estimated 468 Non-landed Private Residential units were resold in September, up from 406 transacted units in August.

Year-on-year, resale volume improved 13.3 per cent compared with 413 units resold in September 2013. Resale volume is down 77.2 per cent when compared to its peak of 2,050 resold in April 2010.

Rental volume decreased by 14.0 per cent in September. An estimated 3,171 Non-landed Private Residential units were rented, down 14 per cent from the 3,688 units rented in August.

Year-on-year, rental volume in September 2014 is 8.7 per cent higher compared with the 2,916 units rented in September 2013.

Rental prices have also continued to fall. According to the SRX Property, rents dipped 0.2 per cent in September compared to August.

Non-landed private residential units in RCR and OCR saw decreases in rent of 0.6 per cent and 0.9 per cent respectively, while units in CCR posted a rent increase of 0.3 per cent.

– See more at: http://business.asiaone.com/property/news/resale-prices-non-landed-private-homes-dip-september-volume-increases#sthash.RZNc85Vd.dpuf

Marina One Residences launch receives lukewarm response

Luxury project Marina One Residences opened its doors to the public on Saturday (Oct 11) but saw a lukewarm response, with only 20 units sold. Its developer had cleared 300 units in the past week during private sales.

Business owner Lim Jit Song, who was at the public launch, was looking for a unit for investment purposes. The 39-year-old eventually settled for a S$1.7 million one-bedroom unit on the 13th floor, which works out to almost S$2,300 per square foot (psf).

Mr Lim said: “First of all, the location is very good, it is in the Marina area. Price-wise, it is also very reasonable. We saw the furnishing and it is very good – we are very happy with that. There are three MRT stations around, and amenities within walking distance. The last point – the developer is very dependable. So with all these reasons … we decided to go for it.”

The project is a joint-venture between Temasek Holdings and Malaysia’s state investment arm Khazanah Nasional. It is their second residential development after DUO Residences in Bugis, which was launched in November last year. Buyers had snapped up more than 60 per cent of DUO’s 660 units in just three days. Prices had averaged S$2,000 per square foot, with over S$2,600 per square foot for a studio apartment.

Private sales for Marina One started on October 3 to those purchasing multiple units. The developer said the majority of its buyers are Singaporeans (70 per cent). Malaysians make up 20 per cent, while the remaining 10 per cent are Indonesians and Chinese.

One analyst described the sales as “commendable” for the current market, but said prices – which now range from S$1,960 to S$3,100 psf – might need to be lowered to further boost demand.

Ku Swee Yong, CEO of Century 21 Singapore, said: “The current competition of the unsold units along the Shenton Way stretch, up to Tanjong Pagar, as well as future Government Land Sales of parcels around Marina One would affect investment sentiments in the project.” Mr Ku said units from older projects nearby are going at competitive prices, averaging about S$2,000 to S$2,500 psf.

The launch of Marina One comes on the back of lacklustre sales in the city area, weighed down by property cooling measures. In the second quarter of this year, 95 high-end homes were sold, down from 121 units in the previous quarter and 365 units in the same period last year. Prices in the city area have also declined for the fifth consecutive quarter since Q1 2013.

Its developer is also taking a cautious stance. The project has two residential towers comprising about 1,000 units, but only one tower is currently open for sale.


Resale volumes of condos plunge in Q2 ’14

In yet another sign of a stalemate between buyers and sellers, resale volumes of private condominiums have fallen to levels last seen during the Global Financial Crisis, with the bloodbath of declines seen splattered islandwide.

While sellers with strong holding power seemed unwilling to let go of their units at much-lower prices, District 18 in the east and District 27 in the north appear to have held up well in resale volumes for the second quarter.

District 18, which comprises Tampines and Pasir Ris, saw resale volumes inch up 5.6 per cent in the second quarter this year to 57 transactions compared to the year-ago period before the total debt servicing ratio (TDSR) kicked in on June 29, 2013.

Resale volumes of private condos in District 27, which covers Yishun and Sembawang, were flat at 18 transactions in the second quarter, compared to the same quarter last year.

Their resilience came against a plunge in resale volumes islandwide.

Total resales of private condos stood at 1,314 units in the second quarter, accounting for 31.9 per cent of all private non-landed residential transactions. This is moderately higher than the 29.9 per cent in the same quarter last year but lower than the 40.9 per cent in the fourth quarter of 2012.

District 7 comprising Middle Road and Golden Mile and District 19 covering Serangoon Garden, Hougang and Punggol saw the biggest falls in resale volumes across districts. Transactions in District 7 fell to two units in the second quarter from 12 in the second quarter last year while that in District 19 plummeted to 57 units from 164.

The comparisons of resale volumes before and after TDSR are based only on caveats lodged, which typically represent some 80 per cent of the market. This illustration excludes new sales as they are driven mainly by new launches that may not have taken place in certain districts. The heterogeneity of property units also prevent direct comparisons on price movements over time without controlling for quality differences through constructing an index, a weighted scheme or tracking repeat sales.

Nicholas Mak, executive director of SLP International, noted that much of the resales caveats were for family-size units. “The marketing activities of new projects in that district could have attracted buyers, who may have later decided to buy resale properties as they were cheaper in per square foot (psf) terms.”

New launches in District 18 included City Developments’ Coco Palms in Pasir Ris, which has moved over 560 units at a median price of S$1,020 psf since its launch in May. MCC Land managed to sell more than 100 units at The Santorini in Tampines since its launch in April at a median S$1,113 psf, according to URA’s developer sales data. In comparison, median prices of resale units in District 18 stood at S$897 psf in the second quarter.

The lack of new launches in certain districts could also have the converse effect on the resale market – as seen in Districts 19 and 12 (Balestier, Toa Payoh, Serangoon), Mr Mak added.

R’ST Research director Ong Kah Seng noted that buying interest for homes in Pasir Ris is supported by well-tested leasing demand, especially from the Changi Business Park. The decentralisation of the banks’ non-core back-office operations to the business park and increased foreign professionals in the technology sector have also expanded the potential tenant pool in the eastern part of Singapore, he noted.

At the other end of Singapore, District 22 (Jurong) also registered a marginal 4.3 per cent year-on-year drop in resale transactions of private condos in the second quarter, possibly finding some support from renewed interest in the area given URA’s masterplan to transform Jurong Lake District, consultants observed.

All transactions (new sales, resales and subsales) involving private condos have slumped 40.7 per cent year-on-year in the second quarter to 4,118 – similar to the levels last seen during the 2008-2009 Global Financial Crisis.

Based on the URA property price index for non-landed homes, prices of private condos transacted in the second quarter have fallen to levels last seen in the fourth quarter of 2012. Prices in the Core Central Region (CCR) fell by a larger magnitude to a level similar to that in the fourth quarter of 2010.

OrangeTee head of research and consultancy Christine Li noted that the drop in foreign purchases due to the additional buyer’s stamp duty (ABSD) has hurt the CCR market segment, as foreign buyers make up a significant portion of this segment.

“Secondly, the implementation of loan restrictions such as loan-to-value limits and the TDSR framework have hurt properties with high quantums,” she added. “As such, CCR properties have not held up as well as RCR (Rest of Central Region) and OCR (Outside Central Region). This trend is likely to persist until current cooling measures are tweaked.”

But given the exuberant run-up in property prices since the second half of 2009, sellers who sold their units recently are unlikely to have suffered a loss, though they could be making less profits than if they had sold their units last year, consultants noted.

A random sampling by SLP International on resale transactions in the second quarter showed that most of the sellers did not incur losses in the resale market because a majority of them bought their units more than three years ago when the prices were cheaper and they did not have to pay the seller’s stamp duty for properties that they have held for more than four years.

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More failing to repay mortgages on time: ST 19 Jul

Brief: MORE private home owners are not making their mortgage payments on time. The number of borrowers with delinquent mortgages – accounts that have not been paid for more than 30 days – hit 4,186 in May, up 20 per cent. Delinquent borrowers comprised 0.82 per cent of private home loans in May, up from 0.7 per cent in the same month last year.


*****************Background Story *****************


  • The number of borrowers with delinquent mortgages hit 4,186 in May, up 20 per cent from the 3,340 a year earlier.
  • Delinquent borrowers comprised 0.82 per cent of private home loans in May, up from 0.7 per cent in the same month last year.
  • Banks wrote off six mortgages in the first five months of the year, a touch up from the five bad loans in the same period last year.

Chart of rising private housing vacancy

It was reported of the recent Barclays analysis on Singapore private residential market in SBR. Large oversupply looms over private developers.

Analysts fear that the government’s efforts to scale down residential supply may not be enough to avert a looming oversupply in 2015 to 2017. A report by Barclays Research noted that the vacancy rate could hit 9.9% by 2016 assuming an annual demand of 15,500 units

According to Barclays Research, “We believe this is testament to the looming oversupply in 2015-2017 as the government reiterated the reduced future supply will be ‘added to the existing large pipeline supply of more than 90,000 private residential units (including ECs)’.”

Private housing (including ECs) on the Confirmed List for 2H14 is down 15% h/h and 34% y/y to 3,915 units. The bulk of the supply is now made up by the Reserve List, which has also been scaled down and which is unlikely to be triggered for sale should market conditions continue to deteriorate. We maintain our negative stance on the Singapore residential sector as we see an oversupply of private housing properties and expect prices to fall 20% by 2015E in view of an expected interest rate rise, coinciding with peak supply, and think the vacancy rate could reach a record 10% by 2016E. 

– See more at: http://sbr.com.sg/residential-property/news/chart-day-see-massive-spike-in-singapore%E2%80%99s-home-vacancy-rate#sthash.MhrCXG2Z.dpuf