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Prices of private residential properties fell by 1 % on-quarter in Q2, following a 1.3 % decrease in the first quarter

http://www.channelnewsasia.com/news/singapore/private-property-prices/1281612.html

Prices of private residential properties in the second quarter fell by 1 per cent from the previous quarter – the third consecutive quarter of decline, the Urban Redevelopment Authority (URA) said on Friday (July 25).

The price decline was observed across all segments of the private residential property market, URA said.

Prices of non-landed properties in the Core Central Region (CCR) declined by 1.5 per cent from the previous quarter, following the 1.1 per cent decrease in the January to March period. Prices in the Rest of Central Region (RCR) declined by 0.4 per cent, after decreasing by 3.3 per cent in the previous quarter. In the Outside Central Region (OCR), prices declined by 0.9 per cent, after the 0.1 per cent decline in the previous quarter. Prices of landed properties declined by 1.7 per cent, significantly more than the decrease of 0.7 per cent in the previous quarter.

Rentals of private residential properties in the second quarter fell by 0.6 per cent from the previous quarter, compared with a 0.7 per cent decline in the January to March period.

LAUNCHES AND TAKE-UP

Developers launched 2,843 uncompleted private residential units excluding Executive Condominiums (ECs) in the second quarter, compared with 1,964 units in the first quarter, URA said. A total of 2,665 private residential units (excluding ECs) were sold by developers during the quarter, compared with 1,744 units in the January to March period.

No new EC units were launched for sale during the quarter. Developers sold 154 EC units in the second quarter, compared with the 149 units sold in the previous quarter.

RESALES AND SUB-SALES

The number of resale transactions rose to 1,314 in the second quarter, up from 941 transactions in the previous quarter. Resale transactions accounted for 31.9 per cent of all sale transactions during the quarter, compared with 33.5 per cent in the first quarter.

There were 139 sub-sale transactions in the second quarter 2014, compared with 128 transactions in the previous quarter. Sub-sales accounted for 3.4 per cent of all sale transactions in the quarter, lower than the 4.6 per cent recorded in the January to March period.

Singapore ready to control industrial prices and rentals

A SLEW of measures targeted at controlling industrial prices and rentals in Singapore are in place, JTC said on Thursday.

JTC said it has a series of development projects in the pipeline to provide space solutions for industrialists in different industries.

For instance, more space will be made available in JTC CleanTech Two @ CleanTech Park, following the project’s completion of 11,590 sqm of space in February this year, to cater to research-related companies and institutions.

Beyond these projects, JTC will continue to develop next-generation high-rise developments with productivity-enabling features to cater to industrialists in the coming years, it said.

http://www.businesstimes.com.sg/breaking-news/singapore/too-early-ease-singapore-property-cooling-measures-mas-20140724

Why cooling measures are not removed yet: rise in caveats in Q2

Here’s a possible reason why the authorities are not inclined to remove any property cooling measures just yet: There was an across-the-board increase in caveats lodged for private home purchases in the second quarter compared to the previous quarter.

DTZ’s analysis of URA Realis caveats database shows a 37.1 per cent quarter-on-quarter increase in the total number of private homes transacted to 3,369 units in Q2.

A segmental breakdown showed that the number of units picked up in the resale market climbed nearly 41 per cent or 386 units to 1,328 units in Q2 from 942 units in Q1 – ending three consecutive quarters of decline.

New sales by developers too rose by 511 units or 36.8 per cent to 1,898 units. In the subsale market, 143 units changed hands in Q2, up 11.7 per cent from Q1.

http://katonghomes.com/2014/07/24/possible-reason-why-cooling-measures-not-removed-rise-caveats-in-q2/

Among Foreign buyers, Indians overtook Indonesians

http://www.businesstimes.com.sg/premium/top-stories/indians-overtake-indonesians-among-foreign-buyers-20140724

Something unexpected has taken place in the second quarter of the year – Indonesians’ share of private home purchases here by permanent residents and foreigners sank to a fresh low.

So much so that Indians zoomed past to emerge as the third largest group of non-Singaporean buyers in the quarter. Indonesians came in fourth.

In absolute numbers, though, purchases by both nationalities increased quarter on quarter amid an across-the-board rise in private home transactions, according to a DTZ analysis of URA Realis caveats data.

In the April-June period, Indonesians bought 95 private homes, a 13.1 per cent rise from 84 a quarter earlier. This gave them an 11 per cent share of the 834 units acquired in Q2 by PRs and foreign buyers – the lowest recorded in the URA Realis database that dates back to Q1 1995.

Thai Grocery Shopping Experience

Right at the 2nd floor of Golden Mile Complex there is a supermarket called the “Thai Supermarket”. Shoppers can find all kinds of Thai goods ranging from fresh Thai vegetables, Thai instant noodle, drinks to even medicated oil made from Thailand.

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Thai fish sauce.

 

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Pre-packed Thai Curry ingredients.

 

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There is even a good selection of Vietnamese goods.

 

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Shoppers get to also enjoy some freshly barbecued Thai Sausages and meat sticks. The stall is right next to the entrance of the Thai Supermarket

 

 

HDB to allow flat sellers to extend stay

FLAT sellers will, with immediate effect, be able to negotiate with buyers for a temporary extension of stay in their flats by up to three months.

This will give them more time to move out of their sold flats, the Housing & Development Board (HDB) announced yesterday.

This relaxed rule is likely to benefit about 15 per cent of total resale transactions, or some 2,700 households a year, it added.

Minister for National Development Khaw Boon Wan and property consultants welcomed the change; the latter even expect this to boost resale transaction volume in the months to come.

Developers’ pessimism deepens in Q2 Rising construction costs, inflation, interest rates seen roiling market

http://www.businesstimes.com.sg/premium/singapore/developers-pessimism-deepens-q2-20140723

DEVELOPERS are more pessimistic about the property market in the coming six months, citing rising cost of construction, inflation, and interest rates as factors that will likely have an adverse impact on market conditions.

The NUS-Redas Real Estate Sentiment Index Survey’s Future Sentiment Index – which measures sentiments towards the market outlook over the next six months – fell to 3.4 in Q2 compared with 3.9 in Q1.

A score under five indicates deteriorating market conditions while scores above five indicate improving conditions.

Meanwhile, the Current Sentiment Index slipped marginally, from 3.7 in the last quarter to 3.6.

Taken on a year-on-year basis, the Composite Sentiment Index (which measures overall sentiment) was weaker at 3.5 in Q2 compared to 4.5 previously.

Looking ahead into the next six months, the key potential risks are rising inflation/interest rates as identified by 75.4 per cent of respondents and rising cost of construction (63.1 per cent).

Equally worrying is the excessive supply of new property launches and a slowdown in the global economy, which were identified by 53.8 per cent of respondents.

However, 31.7 per cent of developers surveyed said that they expect moderately more residential launches in the coming six months, while 29.3 per cent said that they expect residential launches to hold at the same level.

In terms of unit price change, 26.8 per cent of them anticipate that residential prices will hold in the next six months, up from 26.3 per cent in the previous quarter. Majority of developers still expect unit prices to be moderately less (63.4 per cent compared with 64.8 per cent previously).

Of the various property sectors, prime and suburban residential sectors were the worst performing segments according to the survey.

The prime residential sector showed a current net balance of -72 per cent and a future net balance of -69 per cent; while the suburban residential sector showed a current net balance of -63 per cent and a future net balance of -65 per cent in Q2.

The current and future net balance percentage is defined as the difference between the proportion of respondents who have selected positive options and the proportion who selected negative options.

On the flipside, office was the best performing sector, with a current net balance of +41 per cent and a future net balance of +32 per cent.

In light of the high transaction cost and high property prices, 77.8 per cent of respondents said there will likely be strong outflows of investments into overseas real state markets in the coming 12 months.

These markets include the United Kingdom, Australia, and Malaysia.

GB Building floors for sale

http://www.businesstimes.com.sg/premium/singapore/three-gb-building-office-floors-sale-20140722

ABOUT 16,000 square feet of office space spanning three contiguous floors in GB Building in the Central Business District (CBD) have been put on the market for between S$32.1 million and S$33.7 million, or between $2,000 and $2,100 per square foot.

Each floor of the space, occupying the 20th to 22nd storeys of the Cecil Street building, ranges from 5,210 sq ft to 5,425 sq ft in size, is rectangular and column-free.

DTZ Debenham Tie Leung (SEA) is marketing the property, which is being sold with vacant possession.

GB Building comprises a 23-storey office tower atop three storeys of commercial space and has 67 years left on its lease.

It has three levels of basement carpark lots and is within walking distance of Tanjong Pagar MRT station on the East-West Line and the upcoming Shenton Way MRT station on the Thomson Line.

DTZ investment advisory services director Tan Chun Ming said that the property was a “rare opportunity” for owner-occupiers.

Given that the space is strata-titled, he expects keen interest from a range of investors looking to capitalise on the rising rental rates in the CBD.

A DTZ report has noted that average gross monthly rents in Marina Bay rose 6.5 per cent to S$12.25 psf in the second quarter from the first.

But average gross monthly rents for Shenton Way, Robinson Road and Cecil Street – older areas of the CBD – had stagnated at S$8 per sq ft.

Average office prices in those three areas inched up 0.2 per cent in Q2 from the previous quarter, supported by continued interest in strata-titled office units and en bloc office deals, as further rental increases are expected, said the report.

Based on caveats information from URA Realis, the top three strata floors of SBF Centre on Robinson Road, were transacted at an average price of S$3,069 psf in April. Last November, one strata floor at Eon Shenton on Shenton Way went at S$2,550 psf.

The expression of interest exercise for the GB Building space closes on Aug 21. Interested parties may submit bids for single or multiple floors.

FIVE adjoining shophouse properties at Club Street on sale for $22 million.

http://www.btinvest.com.sg/property/local/22m-asking-price-five-shophouses-club-street-20140703/

FIVE adjoining shophouse properties at Club Street have been put on the market with an asking price of $22 million.

BT Club Street Shophouse

They comprise Nos 1, 3 and 5 Club Street, which are three storeys high and have an attic, and Nos 7 and 9, which are two storeys high. All five have balance land tenure of about 80 years.

The properties are being marketed jointly by JLL and Historical Land Pte Ltd. The latter is a boutique property agency specialising in shophouses.

The five shophouses are being offered as a package. Nos 1, 3 and 5 are owned by Citystate Properties while Nos 7 and 9 are owned by Dr Ling Ai Ee, who is also one of the shareholders of Citystate Properties.

The $22 million asking price translates to $3,230 per square foot on floor area of about 6,800 sq ft. The shophouses are currently leased, with insurance company EQ occupying the ground level. The upper levels are leased out as residences.

A strong attraction of the properties is that they are part of a stretch of Club Street and Gemmill Lane that was recently rezoned to commercial use under Urban Redevelopment Authority’s Master Plan 2014. The stretch involved was previously zoned as “residential with first-storey commercial”.

In a circular issued on June 10 this year, URA said the zoning change is consistent with the commercial zoning for the rest of the shophouses along Club Street.

Historical Land director Simon Monteiro said: “With full commercial zoning, this means foreigners are now eligible to buy these shophouses.”

Foreigners require the approval of the Land Dealings (Approval) Unit of the Singapore Land Authority before they may purchase an entire shophouse on a site zoned for residential use, although they may buy a unit within a strata-subdivided shophouse building on residential-zoned land.

“In addition to offering prime frontage at the Club Street/Cross Street corner, a stone’s throw from the Telok Ayer MRT Station on the Downtown Line, these five shophouses make up a rare island-site in the popular Club Street locale which is steeped in history,” added Mr Monteiro.

Club Street was the last part of Chinatown to be developed, beginning in the early 1890s, according to architecture historian Julian Davison, who traced the provenance of the five properties for Historical Land.

The five shophouses on offer comprise two separate developments: Nos 7 and 9, which were most likely built in the late 19th century, and Nos 1, 3 and 5, which were built by business magnate Ezekiel Saleh Manasseh in 1924-1925.

A leading businessman and property developer in Singapore at the time, Mr Manasseh commissioned the architectural firm of Westerhout & Oman to build the shophouses that currently stand at Nos 1, 3 and 5 Club Street. The principal feature of the front facade is the central airwell. There is also a cantilevered balcony halfway up as well as a star-shaped pediment on top, intended to recall the Jewish Star of David, writes Dr Davison.

During World War II, Mr Manasseh was interned by the Japanese and died in 1944.

At a URA tender in August 1995, Citystate Management Consultants clinched Nos 1, 3 and 5 Club Street for $3.01 million while L&B Engineering picked up Nos 7 and 9 at $2.064 million. The properties were sold on 99-year leasehold tenure and with the requirement that successful tenderers had to restore them.

While activity-generating uses such as food and beverage outlets, and shops are allowed on the street level, URA in its June 10 circular stated that the shophouse owners and tenants are encouraged to use the upper storeys for residential or institutional use. Office use will be the only commercial use allowed on upper levels, as this is less likely to cause disturbance to the residents of the nearby Emerald Gardens.