Category Archives: Property Articles ( General)

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Private property market has turned but price increases will be gradual, say analysts

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SINGAPORE – Private home prices have turned but increases going forward will be gradual because of strong property cooling measures in place, according to early analyst reactions.

The analysts were responding to official flash estimates showing the private residential prices rising quarter-on-quarter for the first time in nearly four years, according to a Urban Redevelopment Authority (URA) index released earlier on Monday (Oct 2).

ERA Realty Network says it expects prices “to remain flattish, possibly moving within the range of 0 per cent to 1 per cent for the whole year”. Year to date, prices have inched up by 0.1 per cent.

Its key executive officer Eugene Lim noted that robust sales underpinned the 0.5 per cent quarter-on-quarter increase in private home prices in the three months to September.

ERA estimated that from July 1 to Sept 24, covering almost the whole of the third quarter, 2,870 private properties were sold by developers and 3,112 resale caveats lodged. This is already a 44.9 per cent and 19 per cent increase from the 1,981 developer units and 2,615 resale units in the same quarter a year ago.

Its key executive officer Eugene Lim noted that robust sales underpinned the 0.5 per cent quarter-on-quarter increase in private home prices in the three months to September.

ERA estimated that from July 1 to Sept 24, covering almost the whole of the third quarter, 2,870 private properties were sold by developers and 3,112 resale caveats lodged. This is already a 44.9 per cent and 19 per cent increase from the 1,981 developer units and 2,615 resale units in the same quarter a year ago.

“We view this as a strong signal that the market has turned,” said Mr Lim. “However, as the TDSR continues to keep a lid on prices, we are expecting any price increase to be gradual.”

The TDSR, which refers to the total debt servicing ratio which limits how much buyers can take out in home loans, was the the biggest of government property cooling measures introduced in the middle of 2013.

Mr Lee Nai Jia, senior director and head of research for Edmund Tie & Co, said the third quarter price rise is “unlikely to be a flash in the pan, given that private residential sales have been building up for a while”.

He also expects prices to slowly trend up, and sees them rising by 4 to 8 per cent in 2018.

OCBC research analysts Eli Lee and Andy Wong forecast private home prices to be overall flat in 2017 and to appreciate 3 per cent to 8 per cent in 2018, as the rental market begins to pick up and macro-economic conditions remain firm.

Desmond Sim, CBRE Research head, Singapore and South East Asia, said the 0.5 per cent price increase “is the best indicator that the correction period of the market is past us”.

But he noted it is still too early to call a market rebound “as we need more than one data point”.

Mr Sim said he expects price increases to hover between 0 per cent and 2 per cent, with “a near-definite increase” in the URA index in the next six months expected, driven particularly by higher land prices than by a demand-supply mismatch.

“The Singapore government will now be monitoring the price performance closely but the impending rise in interest rates will be a major factor to consider when buyers decide on a purchase,” he cautioned.

 

Source:http://www.straitstimes.com/business/property/private-property-market-has-turned-but-price-increases-will-be-gradual-quick-takes 


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Private Home Prices to Rise 10% by end 2018

Some developers are already increasing prices for the existing launches in due to the land bidding and enbloc fever. If you are ready to commit to new launches, wait no more!


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45 Amber Gardens, Currently Ban Nee Chen Nursery to Launch estimated in 2018

Land Parcel at Amber Road

A site in Amber Road that has housed a landscaping and nursery business (Ban Nee Chen nursery) for more than 30 years has been sold to property developer UOL for $156 million.

The plot of about 70,000 sq ft at 45 Amber Road, which was owned by developer Sin Lian Huat, is sandwiched between two condominiums – The Shore Residences and The Sea View.

Mr Liam Wee Sin, UOL’s deputy group chief executive, said in a statement to The Straits Times that the deal was an opportunity to acquire a rare freehold residential site.

“The quantum of the site is relatively low and it is close to many amenities – established primary schools, eateries, and within walking distance of upcoming MRT stations Marine Parade and Tanjong Katong, which are estimated to be completed in 2023,” he said.

Dr Lee added that the site is also close to East Coast Park.

Source: http://www.straitstimes.com/business/uol-buys-amber-road-site-for-156m

With a plot ration of 2, the site will be able to yield an estimate of 190 residential units in a single block of 22-storey tall.


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Changi Garden: To Ride On En-Bloc Wagon

Not suprising for hopeful owners to ride on the current ennloc situation.

Asking for $196 million which translates to about $700psf. For a freehold land of 200,093sqft.


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En-Bloc Fever

Interesting thoughts from various representatives about en-bloc fever situation in Singapore.


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