S’pore luxury home prices shoot up by 20%

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Jul 18, 2011 – PropertyGuru.com.sg
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Despite the property cooling measures announced in January, prices of luxury units have risen a staggering 20 percent to S$7.9 million, according to Kim Eng, in a report by Singapore Business Review.

“While the average price per unit in all the other segments declined, in the luxury segment, it rose nearly 20 percent from S$6.6 million to S$7.9 million,” it said.

It added that the volume dropped slightly to 43 units from 46 units but that transaction value increased to S$340 million from S$305 million.

Meanwhile, the transaction volume for units below S$1,000 psf remained strong, with developers selling 2,225 units, down 4.3 percent from 2,325 units sold last year.

The total transaction value, however, dropped by a larger 15.4 percent to S$2.04 billion from S$2.41 billion, which implies that the average unit size sold during the first half of 2011 was smaller.

In the resale market, the transaction volume for high-end and luxury segments increased between 23 and 27 percent, while the average price per unit increased, with the luxury segment leading at 20.6 percent.

The transaction volume for units below S$1,000 psf dropped 38.5 percent to 3,440 units in the first half, from 5,593 in the previous year.

To contact the journalist, you may send your message to editor@propertyguru.com.sg

Tharman foresees global economic slowdown in 2011

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Jul 18, 2011 – PropertyGuru.com.sg
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Singaporeans should prepare themselves for the effects of a sluggish world economy in the coming months, according to Deputy Prime Minister Tharman Shanmugaratnam.

However, he said that local economic fundamentals are still intact and that a major world crisis similar to the one in 2008 is unlikely to happen. His statement was made in response to the flash estimates for the country’s economic growth in Q2, published on 15 July.

Gross domestic product (GDP) rose approximately 50 basis point (BPS) over the same period last year— down from the 9.3 percent year-on-year growth seen in Q1 2011.

The slowdown was rooted in falling pharmaceutical production and lower demand for semiconductor chips in the manufacturing sector. The sector as a whole was also affected by the recent natural disasters in Japan.

“Things are not looking better in Europe,” Mr Shanmugaratnam said, referring to the fact that several European Union members are on the verge of debt default. “They are looking worse now than they were six months ago, and much worse than 12 months ago. They are still kicking the can down the road and unless the problems are being resolved decisively, confidence is going to keep ebbing.”

To contact the journalist, you may send your message to editor@propertyguru.com.sg

3600 new BTO flats

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Jul 15, 2011 – PropertyGuru.com.sg
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Around 3,600 new flats are entering the market, as the Housing and Development Board (HDB) has launched seven Build-To-Order (BTO) projects, combining the BTO launches initially planned for June and July.

“The government has certainly responded to the public’s demand for affordable public housing, especially for first-time buyers,” said Adam Tan, PropNex Corporate Communications Manager.

“This is especially so, given that at least 95 percent of the units, will be set aside for these first-timers.”

The 3,600 new flats are located across various towns, including Tampines, Sengkang, Jurong West, Yishun and Bukit Panjang.

Flat types offered in these latest BTO projects include studio apartments, as well as three-, four- and five-room flats, with prices starting from S$83,000 for a studio apartment, S$137,000 for a three-room flat, S$217,000 for a four-room flat and S$274,000 for a five-room flat.

“Young couples who are looking to start a family soon will be enticed by the amenities available at the two projects,” Tan said, referring to Anchorvale Isles and Fernvale Riverbow in Sengkang.

Referring to the projects in Yishun, Tan said, “Residents will be well served by the wide range of facilities in Yishun Town, such as the Yishun MRT station and bus interchange and Northpoint Shopping Centre.” Tan added that there are educational, medical and recreational facilities nearby, such as North View Primary and Secondary School, Khoo Teck Puat Hospital and Yishun Pond.

Tan said Golden Carnation will be the “more popular of the two studio apartment projects, as it is located in Tampines, which is a well-established neighbourhood with shops providing a wide range of services.”

“Fresh produce and varieties of food choices are available from the nearby Tampines Round Market and Food Centre. The Tampines MRT station, bus interchange, SAFRA and Tampines Town Council Office are all nearby.”

Following the launch, the HDB has now released around 15,500 BTO flats in the first seven months of 2011 and is on track to provide 25,000 BTO flats for the whole year.

To contact the journalist, you may send your message to editor@propertyguru.com.sg

China extends home purchase restrictions

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Jul 15, 2011 – PropertyGuru.com.sg
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China’s cabinet has expanded home purchase caps to more cities, reminding local governments to enforce measures to regulate the property market, in its latest move to cut back on property inflation.

China has also ordered local governments to increase their efforts in building low-cost housing and regulating rental prices, as Beijing has made it a priority to check increasing prices, which have lead to social unrest in the past.

While imposing moderation on increasing prices of residential properties in most cities, the cabinet meeting concluded that “some cities are still facing pretty high upward pressure on home prices and others are relaxing their tightening efforts.”

“Right now, the property tightening campaign is at a critical point and we must stick to the same direction and maintain the same force of tightening measures,” said the cabinet in an online statement.”

Since late 2009, the government has been enforcing measures to curb speculation in the housing market, including higher down payments and mortgage rates, as well as new property taxes in Chongqing and Shanghai.

“That means the central government will not relax its tightening policy anytime soon and that’s within market expectations,” said Li Shaoming, an analyst at China Jianyin Investment Securities in Beijing.

The government’s tight controls on the number of homes a family can own, is considered an effective tool in curbing speculation and stabilising prices in approximately 40 cities.

However, prices are still rising in other Chinese cities, as speculation is rife in markets in which acquisition restrictions are non-existent.

“Those that have imposed home purchase restrictions must continue to implement the policy, while the second- and third-tier cities where home prices are rising too fast should also adopt necessary purchase limits,” it said.

The industry sees Beijing’s restrictions on demand as a scheme to provide time to construct affordable homes, lower average home prices and address social complaints.

China will increase government loan support and investment, together with efforts to channel private funds, to meet this year’s goal of constructing 10 million low-cost homes nationwide, according to the cabinet.

So far it has reached over half the target by the end of June – an improvement from 34 percent in May.

To contact the journalist, you may send your message to editor@propertyguru.com.sg

Priciest flat in Pasir Ris goes on sale for S$900000

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Jul 13, 2011 – PropertyGuru.com.sg
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Following Sim Lian Group’s highly controversial Design, Build and Sell Scheme (DBSS) project in Tampines, the Housing and Development Board (HDB) is once again under fire after an eye-popping listing was posted on PropertyGuru.

The listing shows a 1,528 sq ft HDB executive flat in Block 780, Pasir Ris Street 71, with a selling price of S$900,000.

The unit’s asking price is higher than the average selling price in the area, considering that it is a public housing project situated in a non-prime area and has no facilities.

It is also not within walking distance to White Sands mall or Pasir Ris MRT station.

Roza Sure Bagus, Managing Director of Sure Bagus (Asia) Pte Ltd, said, “The asking price of S$900,000 is definitely way beyond the market price. It is certainly a one-off case which if the agent is able to get, it will be a record price for Pasir Ris.”

Roza sold a flat in Pasir Ris recently for S$696,000, which is S$96,000 above valuation.

“The S$96,000 (in) above valuation is still okay, provided the house has a good view, high floor and good interior. Nevertheless, if they are buying at S$96,000 above valuation, the buyer’s taste in the décor may not be the same. They may renovate everything.”

Caveat data reveals that the average psf pricing of similar properties sold in the area this year is between S$400 psf and S$500 psf.

The asking price for the executive flat translates to S$589.01 psf, which is well above the market price.

However, Roza believes there might still be a willing buyer.

“For a person who buys such a flat, he might buy it for sentimental value. Perhaps, it has a breathtaking view which he may not be able to get elsewhere.”

“The buyers are likely to be from the private property market who have already sold their properties or who were en bloc owners who made a huge profit. It is unlikely they will take any loan. They would buy this unit in cash, full settlement,” said Roza.

To contact the journalist, you may send your message to editor@propertyguru.com.sg