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Re: Singapore Government Announced Property Cooling Measures

Posted: Wed Apr 04, 2012 5:36 pm
by ngtfook
Google and found this Profile of Buyer report from DTZ. http://www.btinvest.com.sg/property/loc ... s-profile/

In 2011, SG buyer make up 67%, SPR 14%, Foreigners 17% and Company 2%

Infact, foreigners % has increase from 9% to 17% for 2009 and 2011 respectively.

Image

Dennis Ng wrote:
ngtfook wrote:Hi Dennis,

Apprecite if you could share where can I obtain the buyer profile.
just ask some property agents. That's what I did. I don't even bother to go to showflats in the last few months, becos they are so crowded.

Smart Investors do NOT enjoy squeezing with crowd. We like to buy when few people buying. We will leave the "party" when many want to squeeze in.

For last 2 years when I conduct property seminars, I kept telling people to consider buying condo in Bishan, becos for its good location, the price is relatively reasonable. Now with a new condo to be launched (rumoured at S$1,700 psf), guess what will happen to neighbouring properties in Bishan?

Buy when it's Cold, not when it's Hot, this is what I learn from the Rich how to make BIG money in investing, be it in stocks or property.

Re: Singapore Government Announced Property Cooling Measures

Posted: Wed Apr 04, 2012 6:12 pm
by Dennis Ng
important question is who made up the SG buyers? Foreigners?

I understand from property agents in recent months, they are mainly home buyers, upgraders and First Time Investors, NOT experienced property investors. I own HousingLoanSG.com and those clients of mine who are experienced property investors have NOT bought properties since Jan 2011.

Furthermore, it is already Apr 2012, if I'm not wrong, I've read in newspapers that percentage of foreigners (some can be home buyers and first time investors) have dropped as well.

Don't just do deskstop research, go to the ground, talk to people, especially property agents, as Philip Fisher taught as "scuttlebut" investing.

Cheers!

Dennis Ng
ngtfook wrote:Google and found this Profile of Buyer report from DTZ. http://www.btinvest.com.sg/property/loc ... s-profile/

In 2011, SG buyer make up 67%, SPR 14%, Foreigners 17% and Company 2%

Infact, foreigners % has increase from 9% to 17% for 2009 and 2011 respectively.

Image

Dennis Ng wrote:
ngtfook wrote:Hi Dennis,

Apprecite if you could share where can I obtain the buyer profile.
just ask some property agents. That's what I did. I don't even bother to go to showflats in the last few months, becos they are so crowded.

Smart Investors do NOT enjoy squeezing with crowd. We like to buy when few people buying. We will leave the "party" when many want to squeeze in.

For last 2 years when I conduct property seminars, I kept telling people to consider buying condo in Bishan, becos for its good location, the price is relatively reasonable. Now with a new condo to be launched (rumoured at S$1,700 psf), guess what will happen to neighbouring properties in Bishan?

Buy when it's Cold, not when it's Hot, this is what I learn from the Rich how to make BIG money in investing, be it in stocks or property.

Re: Singapore Government Announced Property Cooling Measures

Posted: Wed Apr 04, 2012 10:44 pm
by Dennis Ng
Dennis Ng wrote:important question is who made up the SG buyers? Foreigners?

I understand from property agents in recent months, they are mainly home buyers, upgraders and First Time Investors, NOT experienced property investors. I own HousingLoanSG.com and those clients of mine who are experienced property investors have NOT bought properties since Jan 2011.

Furthermore, it is already Apr 2012, if I'm not wrong, I've read in newspapers that percentage of foreigners (some can be home buyers and first time investors) have dropped as well.

Don't just do deskstop research, go to the ground, talk to people, especially property agents, as Philip Fisher taught as "scuttlebut" investing.

Cheers!

Dennis Ng
ngtfook wrote:Google and found this Profile of Buyer report from DTZ. http://www.btinvest.com.sg/property/loc ... s-profile/

In 2011, SG buyer make up 67%, SPR 14%, Foreigners 17% and Company 2%

Infact, foreigners % has increase from 9% to 17% for 2009 and 2011 respectively.

Image
as I said, I remember reading in newspapers, after searching for some time, finally found More Recent Information and Comments in a Straits Times Article published 22 March 2012:

Foreign buyers retreat as stamp duty bites
Share of private housing by non-PR foreigners falls after Dec measures
The Straits Times - March 22, 2012

By: Esther Teo
| More
Foreign buyers retreat as stamp duty bites -- ST PHOTO: DESMOND WEE

THE hefty new stamp duty imposed late last year seems to have cooled foreign demand for property here.

The share that non-permanent resident (PR) foreigners have of the private housing sector fell by about 10 percentage points this year compared with November - right before the Dec 8 measures kicked in.

In November, foreigners bought 385 units, including new sales, resales and subsales, for a 16 per cent slice of the entire market, excluding executive condominiums (ECs).

But they bought only 53 units in January and 96 units last month, giving them a market share of about 6.5 per cent, according to analysis of Urban Redevelopment Authority data by consultancy Savills Singapore.

In 2010, foreign buyers comprised 12 per cent of the market, rising to a record 17 per cent last year. Sales by PRs have held steady at about 13 per cent for both 2010 and last year.

Experts say the 10 per cent additional buyer's stamp duty applied to all foreign purchases was the main cause of the steep drop.


The measures would have caused a reaction, making foreigners think twice about whether Singapore was still an attractive investment destination.

Mr Ku Swee Yong, chief executive of International Property Advisor, said the frequent shifts in policy could also have dampened demand.

The slew of policy changes over the past two years may have prompted foreigners to opt to rent before deciding on whether they want to buy, he noted.

Some of his Malaysian clients are considering investing in commercial space or smaller homes with lower overall prices, to completely avoid the duty or pay a smaller fee.

Mr Ku expects foreign demand to be subdued for the rest of this year.

Mr Tan Kok Keong, OrangeTee's research and consultancy head, also noted that with no major bad news between November and last month, the additional stamp duty was clearly the main cause.

Some experts say the drop might be a temporary lull as foreign buyers take time to get used to the idea of the higher tax.

Mr Alan Cheong, director of research and consultancy at Savills, believes foreign demand will inch up over time.

'Foreign buyers at the moment may baulk at the extra 10 per cent premium, but once they see this as the new norm, they may merely treat the additional buyer's stamp duty as sort of a 'cover charge' for parking their funds in a safe haven,' he added.

OrangeTee's Mr Tan said foreign buyers could creep back in the second half of the year but they are unlikely to match the figures seen before the measures.

'It also depends on whether other countries like China impose further restrictions on their property market. If they do, some foreigners might be diverted here to buy instead,' he added.

Chinese buyers made up about 28 per cent of all foreign purchases - by PRs and foreigners - last year, bypassing Malaysians, the traditional leaders. Tighter home-buying policies in China, such as restrictions on residents in major cities buying a second or third home, prompted more Chinese to look further afield.

Despite the dip in foreign demand, home sales remained strong in the first two months of the year as Singaporean buyers continued to power the market. Last month, a record 3,138 homes, including ECs, were sold as buyers flocked to mass market projects with affordable, small-sized units.

Re: Singapore Government Announced Property Cooling Measures

Posted: Thu Apr 05, 2012 8:38 am
by ngtfook
Self explanary article points to investors are still bullish about SG property...

Who is correct? Report from Property consultancy company or Property sales person?

Make your own judgement.

Note that I am sharing a information for forumers information.


Private Investors to Remain Active in Property Market: CBRE
Apr 4, 2012 • 6:35 pm by Ernie B. Calucag


Private investors from Malaysia, Indonesia, Taiwan and Singapore will stay active and account for the bulk of demand in the local property market, real estate consultancy CBRE said on Wednesday. This, despite slower transactions seen in the first quarter of this year.

CBRE said total real estate investment sales were down 53 per cent year-on-year at S$4.0 billion in 1Q2012. The agency attributed the tepid investment sales to the weak global capital market sentiments and the recent government measures such as the additional buyers’ stamp duty (ABSD).

The higher ABSD, introduced in December last year, was aimed at moderating demand for private homes by foreigners.

CBRE said this has affected investment sales for high-end residential properties. It noted, however, that sales of mass-market homes quickly regained momentum, prompting both local and even newcomer developers from China and Malaysia to remain aggressive in their bids for land tenders.

Five en-bloc deals totalling S$380.6 million were inked since the start of the year, with the largest being Tai Keng Court sold to Fragrance Group & Aspial Corporation for S$161.1 million.

Residential investment sales as defined by CBRE include the sales of all Good Class Bungalows, residential Government Land Sales, en bloc sales, landed and non-landed property deals that are S$10 million and above.

In the office segment, investment turnover was S$581.4 million in the 1Q2012, down 76 per cent quarter-on-quarter. Despite this, CBRE said there was still some selective interest in quality en bloc buildings especially from regional investors.

The major commercial deal was CapitaCommercial Trust’s purchase of Twenty Anson from LaSalle Investment Management for S$430.0 million. GRTH building, a seven-floor office building, was sold to Oxley Holdings for S$76.1 million, with the intention of being redeveloped.

Meanwhile, both end-user and investor demand activity for strata commercial space remained strong, particularly those in the price range of S$1 million to S$5 million, as investors switch from the residential sector to the commercial sector.

“Strata-titled office units remained highly sought-after by private companies, high-net worth individuals and other investors switching from the residential sector following the introduction of cooling measures.
Financing for strata-titled deals remains easy to obtain and this sector will continue to witness plenty of activity this year,” said Petra Blazkova, Head, CBRE Research, Singapore and South East Asia.

Some strata office sales seen in the first quarter include units at The Adelphi, Suntec Towers, PS 100 and Paya Lebar Square.

“Although the climate remained muted this past quarter, investors, particularly private Asian buyers, continued to be on the lookout for quality assets. Among other sectors, retail assets remain attractive to investors but are tightly held by their existing owners whilst strata-titled industrial units continue to be the subject of strong interest,” Blazkova added.
by Dennis Ng » Wed Apr 04, 2012 6:12 pm

important question is who made up the SG buyers? Foreigners?

I understand from property agents in recent months, they are mainly home buyers, upgraders and First Time Investors, NOT experienced property investors. I own HousingLoanSG.com and those clients of mine who are experienced property investors have NOT bought properties since Jan 2011.

Furthermore, it is already Apr 2012, if I'm not wrong, I've read in newspapers that percentage of foreigners (some can be home buyers and first time investors) have dropped as well.

Don't just do deskstop research, go to the ground, talk to people, especially property agents, as Philip Fisher taught as "scuttlebut" investing.

Re: Singapore Government Announced Property Cooling Measures

Posted: Thu Apr 05, 2012 8:46 am
by Dennis Ng
FACT: In year 2012 (first 2 months), foreigners' share of property purchase fell from 16% in year 2011 to 6.5%. Below information was extracted from Straits Times article published on 22 Mar 2012.

Cheers!

Dennis Ng
Dennis Ng wrote: THE hefty new stamp duty imposed late last year seems to have cooled foreign demand for property here.

The share that non-permanent resident (PR) foreigners have of the private housing sector fell by about 10 percentage points this year compared with November - right before the Dec 8 measures kicked in.

In November, foreigners bought 385 units, including new sales, resales and subsales, for a 16 per cent slice of the entire market, excluding executive condominiums (ECs).

But they bought only 53 units in January and 96 units last month, giving them a market share of about 6.5 per cent, according to analysis of Urban Redevelopment Authority data by consultancy Savills Singapore.

In 2010, foreign buyers comprised 12 per cent of the market, rising to a record 17 per cent last year. Sales by PRs have held steady at about 13 per cent for both 2010 and last year.

Experts say the 10 per cent additional buyer's stamp duty applied to all foreign purchases was the main cause of the steep drop.

Re: Singapore Government Announced Property Cooling Measures

Posted: Mon Apr 09, 2012 8:54 am
by Dennis Ng
yes, it's funny, Ministry of National Development announced the "new measures" more than 1 year ago in mar 2011 but till now most showflats are still NOT complying with the new rules. So who is going to inspect to check that the measures are complied with, and by when will it happen?

Something done by ALL developers is remove walls in showflats...it made the showflat looks much bigger and spacious than if the walls remain. Another thing commonly done is to have custom made furniture and carpentry, to maximise usage of the limited space. Othewise, how can they sell 3 bedroom condos with floor area of 635 sf?

Cheers!

Dennis Ng
The Straits Times
Apr 9, 2012
Random check: Showflats don't fulfil proposed criteria
Market watchers say new guidelines should be implemented soon

By Gan Yu Jia

A RECENT Straits Times check on six showflats has revealed that all fell short of some of the rules proposed in March last year to ensure that developers are more transparent in their marketing.

The observation comes amid record monthly sales of 3,138 new homes logged in February, some of which were small-sized 'shoebox' units.

The guidelines were aimed at giving buyers a more accurate picture of what it would feel like to live in the flats. Almost all buyers who snap up new homes would have stepped into a showflat before making the decision to buy.

The refusal to adhere to guidelines may have meant that buyers could have left these flats in some confusion as to how big the actual unit would be and if walls or doors had been removed to give the impression of more living space.

Property investor David Lee said: '(Developers) make the inside look very grand... with nice wallpaper and furniture. Certain walls they knock down.'

That was certainly the impression gleaned from the checks made on the six showflats, which were randomly selected from across the island: two in the west, two in the east, and two in the central districts and all from different developers.

Three of the proposed rules were not observed by any of the six flats.

These were requirements that there be signs to mark any removed walls, partitions or doors; that the location, site and floor plans be drawn to scale; and that the floor areas of exterior spaces like balconies be disclosed.

There were other guidelines which The Straits Times could not evaluate with certainty, such as ensuring the showflat was of the exact same floor area and the same floor-to-ceiling height as the actual unit.

Market watchers say these results indicate that the new rules are necessary and should be enforced soon.

The proposed new rules aim to prevent misleading marketing gimmicks, to make it easier for buyers to access information about units and to ensure that showflats accurately represent the finished units.

They have undergone consultation with industry players and are 'being finalised' for implementation 'in the second half of the year after the Housing Developers (Control & Licensing) Act has been amended', the Urban Redevelopment Authority (URA) said last Tuesday.

Mr Colin Tan, research head at Chesterton Suntec International, said the new rules will help overcome some 'illusionary effects' of showflats, such as 'when beds are custom-made (to be) smaller or when walls are removed or replaced by transparent glass panels'.

He suggested that developers could prepare a bare showflat unit, 'the condition in which the developer will actually deliver the unit to you', and another showflat with a designed interior, 'to show what buyers can do to make it feel more spacious'.

International Property Advisor chief executive Ku Swee Yong noted that the suggestion to inform buyers about the sizes of exterior areas like aircon ledges and balconies, which are considered less useable spaces, was especially pertinent given that 'small-sized residential units suffer from disproportionately large low-value floor areas'.

'For a luxury 2,000 sq ft apartment, such areas may take up 8 to 15 per cent of the (space), but for small apartments of 500 sq ft, such low-value areas may take up more than 20 to 30 per cent,' he said.

'Given the proliferation of small-sized units in Singapore, I believe we should implement these guidelines urgently.'

Developers say they are all for transparency but were quick to stress that measures were taken to ensure their showflats were modelled after actual units.

A Keppel Land spokesman said buyers often asked if the showflat fittings and finishes and the unit's specifications would be similar to the end product.

'Where there are any disparities due to interior design styling, notices will be displayed at prominent locations informing buyers,' she added.

Others said that some of the unfulfilled requirements in the showflats checked could be verbally communicated to visitors or were just plain obvious.

Tuan Sing chief financial officer Chong Chou Yuen said of the suggestion to put signs at places where doors have been removed: 'Removed doors are understood, so to me it's not necessary... but if (the URA) eventually decides to implement these things, we have no issue.

'As far as we can see, we have complied with the spirit of the guidelines.'

However, Propnex chief executive Mohamed Ismail noted that there were constraints as to how accurate showflats could be.

'You can't have a design for every model. You may have six different designs... and each room may have a different layout depending on which part of the building. A showflat will only choose a sample of the building,' he said.

yjgan@sph.com.sg

Re: Singapore Government Announced Property Cooling Measures

Posted: Wed Apr 11, 2012 3:21 pm
by Dennis Ng
Jasper wrote:曾渊沧博士: 郊区与小型公寓价已太高

(2012-04-09)


  曾渊沧博士提醒投资者,选择郊区或是小型的公寓要三思。这些公寓的价格已经上涨不少,并被开发商包装成“豪宅”。不过,他认为这些都只能算“假”豪宅。

  香港城大商学院工商管理硕士课程主任曾渊沧博士提醒新加坡投资者,若买私宅投资,仍以第9、10和11区为佳,选择郊区或是小型的公寓要三思。这些公寓的价格已经上涨不少,并被开发商包装成“豪宅”。不过,他认为这些都只能算“假”豪宅。

  本地房地产价格近年上涨不少,因而新发展项目的房子越建越小,以保持在人们的“可负担范围内”。曾渊沧博士说,以前1200平方英尺的公寓可能有三个卧房,而现在,发展商为满足人们的需求,将其打造成拥有4个卧房的单位,甚至是“4+1”。以武吉知马路上段最近推出的公寓为例,每平方英尺的价格已经达到1400元左右,买下这样一套的公寓价格不菲,听起来有4个卧房,感觉也不错,很像豪宅,可是这只能算是“假”豪宅。

  他说,“除9、10和11区外,其他地段的公寓都只能算是发展商打造出来的‘假’豪宅,买之前要三思。”他举例说,香港在1996到1997年间,也曾经出现很多这样的“假豪宅”,公寓内每个卧房的面积都很小,地点也较偏远,但被发展商打扮成豪宅。当时这类公寓的价格上涨很快。不过,待金融危机过后,房地产价格反弹时,这些“假”豪宅难涨回原本的价格。可是那些坐落在太古城或是山顶的真豪宅,虽然也经历了价格大幅下跌,但如今是越“豪”越涨,很受大陆富豪的青睐。“长期来看,新加坡也会是同样的情况,越是高档的私宅将越受欢迎。”他指出,这是因为穷人和富人的两极化日益严重,富人舍得花大价钱买地段好,供应量不多的豪宅。

额外买方印花税 是暂时性措施

  曾渊沧认为,新加坡政府近期推出额外买方印花税(简称ABSD)的房市降温措施,控制外来移民数量,将取消“金融投资者计划”(Financial Investor Scheme),这些都会减少外国买家的数量。不过,他说:“我想这些政策都只是暂时性的。长期来看,政府还是欢迎富裕的外国人,不可能把‘财神’挡在门外。”等外国买家再进场时,相信仍选择以第9、10和11区为主的真豪宅,他们也大多会选择1500到2000平方尺的单位。

  此外,金融服务专业人员协会前主席梁实轩昨日在投资展览会举办的座谈会上也指出,从房地产投资的回报来看,富裕人士钟情的独立式洋房最高,其次是建屋局曾停建多年的二房和三房式组屋,而小型公寓位列最后。

  梁实轩、曾渊沧博士,以及新加坡证券投资者协会研究公司总裁陈一帆、N2N公司首席技术分析师李欣京、CMC Markets客户经理赵寅受邀出席了2012年投资展览会举办的座谈会,并针对房地产、证券投资等发表各自的看法。

  为期两天的投资展览会上周末在新达城举行,这个已连续举办了六年的活动吸引了超过1万5000人参加。它由《商业时报》和新加坡报业控股子公司智科(亚太)资讯中心(ShareInvestor)联办。

Above view inline with what Wei Teck has shared on Monday evening.

Regards
Jasper

Re: Singapore Government Announced Property Cooling Measures

Posted: Thu Apr 12, 2012 5:53 pm
by racoon12
Have learnt to read & understand the following news from another angle....after attending Dennis session & much reading on the forum.

Looks like there isn't much space for upside to go for property already.... and it should be near the top of plateau of property index, if not the top of plateau of property index. It going to have the repeat of history of the property index chart again.

just my opinion.

Many thanks

.....................................................................................................................................................................................................
3 resale flats sold break S$900k mark

Apr 12, 2012 - PropertyGuru.com.sg By Romesh Navaratnarajah

Three resale HDB flats transacted recently have hit the S$900,000 mark, according to data from HDB’s website.

Last month, an executive apartment located at Block 148, Mei Ling Street changed hands for S$900,000, while an executive maisonette at Bishan was sold for S$900,000. Over at Upper Boon Keng Road, a five-room flat was transacted for S$903,000 back in December.

However, these prices pale in comparison to the S$1.1 million sale of a HUDC flat in Shunfu Road two years ago.

Property experts have noted that these prices are exceptional and do not represent current HDB prices.

The property at Bishan is about 1,600 sq ft and is located on the 20th floor of Block 173, Bishan Street 13.

David Siah, 42, bought the flat for S$610,000 in 2008. The valuation for the property was S$740,000 but Siah was confident to ask for S$950,000 due to its good location and view.

The Queenstown property, which is around 1,700 sq ft, lies between the 16th and 20th storeys of a block at Mei Ling Street.

The flat, which was listed on PropertyGuru in December, belonged to an 80-year old Singaporean who died last year, so his siblings sold the four-bedroom and two-bathroom unit.

Initially, the asking price for the unit was S$950,000, or about S$560 psf, although it was valued at S$800,000.

“It took over a year to sell. I was very scared that it wouldn't be sold. The price was simply too high,” said the agent.

Fortunately, a buyer was willing to pay about S$900,000, approximately S$100,000 more than its valuation.

Meanwhile, the Queenstown flat’s high selling price did not surprise neighbours as it has a convenient location.


........................................................................................................................................................................................................

Price gap between mass market, city homes narrowing

Apr 12, 2012 - PropertyGuru.com.sg By Romesh Navaratnarajah
The price gap between private homes in the mass market and Core Central Region (CCR) is narrowing, with market watchers saying the gap has narrowed to just above 60 percent in Q1 2012 compared to 108 percent in Q2 last year.

This is due to mass market homes recording price increases at a much faster pace.

According to a report by Channel NewsAsia, the average price of city homes in the second quarter last year hit S$1,850 psf while mass market homes recorded a median price of S$895 psf. However, mass market home prices have since climbed to around S$1,000 psf while prices of city homes have dropped to about S$1,660 psf.

“Long-term sustainable level is about 50-60 percent gap in the two markets,” said Chua Yang Liang, Head of Research at Jones Lang LaSalle (JLL).

“The price will have to slow down by that time. It will be driven by buyers moving out from the mass market into the high end. At that point in time, buyers will be saying ‘why do I buy in the suburbs when for just a bit more I can buy somewhere downtown?’.”

Several analysts noted that the strength in prices of mass market homes has been boosted by healthy growth of resale flat prices, which has risen more than 80 percent in the past few years.

However, analysts expect to see a decline in the resale flat market in the next two to three quarters.

“We are going to see a plateauing of HDB resale mainly due to the contraction of your cash-over-valuation… In the first quarter we saw a contraction of about 12 percent. The mass market cannot continue to move upwards without seeing some stabilisation,” noted Donald Han, Special Advisor at HSR International Realtors.

Re: Singapore Government Announced Property Cooling Measures

Posted: Thu Apr 12, 2012 5:53 pm
by racoon12
Have learnt to read & understand the following news from another angle....after attending Dennis session & much reading on the forum.

Looks like there isn't much space for upside to go for property already.... and it should be near the top of plateau of property index, if not the top of plateau of property index. It going to have the repeat of history of the property index chart again.

just my opinion.

Many thanks

.....................................................................................................................................................................................................
3 resale flats sold break S$900k mark

Apr 12, 2012 - PropertyGuru.com.sg By Romesh Navaratnarajah

Three resale HDB flats transacted recently have hit the S$900,000 mark, according to data from HDB’s website.

Last month, an executive apartment located at Block 148, Mei Ling Street changed hands for S$900,000, while an executive maisonette at Bishan was sold for S$900,000. Over at Upper Boon Keng Road, a five-room flat was transacted for S$903,000 back in December.

However, these prices pale in comparison to the S$1.1 million sale of a HUDC flat in Shunfu Road two years ago.

Property experts have noted that these prices are exceptional and do not represent current HDB prices.

The property at Bishan is about 1,600 sq ft and is located on the 20th floor of Block 173, Bishan Street 13.

David Siah, 42, bought the flat for S$610,000 in 2008. The valuation for the property was S$740,000 but Siah was confident to ask for S$950,000 due to its good location and view.

The Queenstown property, which is around 1,700 sq ft, lies between the 16th and 20th storeys of a block at Mei Ling Street.

The flat, which was listed on PropertyGuru in December, belonged to an 80-year old Singaporean who died last year, so his siblings sold the four-bedroom and two-bathroom unit.

Initially, the asking price for the unit was S$950,000, or about S$560 psf, although it was valued at S$800,000.

“It took over a year to sell. I was very scared that it wouldn't be sold. The price was simply too high,” said the agent.

Fortunately, a buyer was willing to pay about S$900,000, approximately S$100,000 more than its valuation.

Meanwhile, the Queenstown flat’s high selling price did not surprise neighbours as it has a convenient location.


........................................................................................................................................................................................................

Price gap between mass market, city homes narrowing

Apr 12, 2012 - PropertyGuru.com.sg By Romesh Navaratnarajah
The price gap between private homes in the mass market and Core Central Region (CCR) is narrowing, with market watchers saying the gap has narrowed to just above 60 percent in Q1 2012 compared to 108 percent in Q2 last year.

This is due to mass market homes recording price increases at a much faster pace.

According to a report by Channel NewsAsia, the average price of city homes in the second quarter last year hit S$1,850 psf while mass market homes recorded a median price of S$895 psf. However, mass market home prices have since climbed to around S$1,000 psf while prices of city homes have dropped to about S$1,660 psf.

“Long-term sustainable level is about 50-60 percent gap in the two markets,” said Chua Yang Liang, Head of Research at Jones Lang LaSalle (JLL).

“The price will have to slow down by that time. It will be driven by buyers moving out from the mass market into the high end. At that point in time, buyers will be saying ‘why do I buy in the suburbs when for just a bit more I can buy somewhere downtown?’.”

Several analysts noted that the strength in prices of mass market homes has been boosted by healthy growth of resale flat prices, which has risen more than 80 percent in the past few years.

However, analysts expect to see a decline in the resale flat market in the next two to three quarters.

“We are going to see a plateauing of HDB resale mainly due to the contraction of your cash-over-valuation… In the first quarter we saw a contraction of about 12 percent. The mass market cannot continue to move upwards without seeing some stabilisation,” noted Donald Han, Special Advisor at HSR International Realtors.

Re: Singapore Government Announced Property Cooling Measures

Posted: Tue Apr 17, 2012 8:18 am
by Dennis Ng
A NEW Record High of transactions of New Home sales in Q1 Year 2012...but take a good look at the figures and you would realise that properties sold are mostly in the suburbs and bought by home buyers, upgraders or first time investors. City condos which are mainly bought by investors have few transactions and prices even softened a little...

Singaporeans made strange choices in my opinion. They rather buy condo at Punggol at S$1,300 psf than at East Coast. They rather buy condo at Bishan for S$1,700 psf than The Sail at S$1,700 psf...those who find this normal, well, "I really don't know what to say." (let me quote a famous quote made in the last General Elections in Singapore)

Cheers!

Dennis Ng

The Straits Times
Apr 17, 2012
Q1 new-home sales hit record 6,700
Figure even breaks a few full-year totals


By Esther Teo

BUYERS snapped up new private homes at such a blistering pace last month that they helped smash quarterly sales records.

Developers sold 2,393 new units - a touch down on February's 2,417 - making a total of 6,682 for the three months to March 31.

That is not only a record amount for a quarter but exceeds even the full-year totals racked up in 2000, 2003, 2004 and 2008.

The March total hits 3,032 if executive condominiums (ECs), a hybrid of public and private housing, are included.

The rocket fuel for the remarkable sales run remains the amount of cash around in the market, a record number of home launches and rock-bottom interest rates that are enticing buyers to gear up.

Experts say that the unusually high number of launches boosted sales as Housing Board upgraders and local investors entered the suburban market in droves.


DTZ Asia-Pacific research head Chua Chor Hoon noted that 2,582 homes were launched last month, the highest monthly figure in almost two years.

Developers launched 6,982 homes in the quarter, the highest level since quarterly data was collected at the start of 1996.

Ms Chua added that developers were taking advantage of the current buying momentum and relaunching older projects.

There were a further 390 units launched at Riversound Residence, 153 units at Flamingo Valley, and another 100 units each at Archipelago, The Minton and The Palette last month.

Colliers research and advisory director Chia Siew Chuin noted that 76 per cent of sales were in suburban areas, where there were 'intense project launches'.


The strong sales since January have encouraged builders to keep rolling out units while demand is still strong and also before stiffer competition emerges in the form of more projects once the ample supply of state land gets developed, she added.

Buyers also seem to have shrugged off concerns over the global economy, concerns that kept a brake on sales in the second half of last year.

'Market uncertainties arising from the additional buyer's stamp duty are also over, with foreigner buying being curbed and the market still remaining stable,' Credo Real Estate executive director Ong Teck Hui noted.

Experts add that the demand for new homes is likely to hold firm, with mass market sales expected to stay strong.

But although the robust sales have heightened concerns about further cooling measures, they were mainly supply-driven and likely achieved at the expense of little movements in pricing, Colliers' Ms Chia said.

Flash estimates of private property values dipped 0.1 per cent in the first quarter and indicate that the Government's cooling measureshave worked to put a lid on price growth.

'Additionally, the private residential market is in a state of flux. While the primary market is active, the secondary resale market has been slow,' said Ms Chia.

'Similarly, although the mass market remains buoyant, the mid-tier and high-end segments are lacklustre. (Thus), it would also be premature to decide on more interventions.'

PropNex chief executive Mohamed Ismail also pointed out that 65 per cent of sales last month, including ECs, were below $1,200 per sq ft (psf). But while buyers are still keen on mass market homes, developers may face resistance if the psf price is too high, he said.
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But Jones Lang LaSalle's South-east Asia research head Chua Yang Liang thinks that the risk of further cooling measures is now higher with robust suburban sales volumes.

Suburban home prices also gained 1.2 per cent in the first three months of the year, according to flash estimates.

'Any policy adjustment, however, is unlikely to affect first-time home buyers,' said Dr Chua. 'Buyers making their second, third or more home purchases, are more likely to be affected through further tightening of existing measures.'

The other segments languished behind, with only 57 homes sold in the city centre and 511 in the city fringe region.

esthert@sph.com.sg

------------------------------

The Business Times
April 17, 2012
Home demand rides the wave of new launches
Private homes continue to be snapped up with new offerings from developers
By Michelle Tan

Though they didn't quite touch the record-smashing levels of February, private homes sales continued to remain high in March as they were powered by new launches. The government will release six more residential sites this month to appease the growing appetite of developers and buyers.

The possibility that more cooling measures may lie in store has also been raised.

Urban Redevelopment Authority (URA) reported a total of 2,393 private homes - excluding executive condominiums (ECs) - being sold in the month of March, a mere 1 per cent fall from February. Still, this number was 73 per cent higher than in the same period a year ago, reflecting strong underlying demand for new private homes.

This brings the total number of private homes (excluding ECs) sold to 6,682 in the first three months of 2012 - a record for quarterly sales since 1Q 1996 when quarterly data was first compiled and around 41 per cent of the total volume sold in 2011.

New launches have been driving demand, observers say. An eye-popping 2,582 units (excluding ECs) were launched in March.

Said Credo Real Estate executive director Ong Teck Hui: "There is a clear trend of sales launches for private homes picking up ... For the last three consecutive months, launches have exceeded 2000 units per month while in 2011, only April exceeded 2000 units."

Mr Ong also added that if this trend continues, land supply under the government land sales (GLS) programme might have to be reviewed to cope with the spiralling demand.

Sales of ECs also remained at high levels, with 639 units sold in March, slightly lower than the 725 units in the month before, but still more than four times the volume transacted in the same period last year.

Including ECs, the total number of new private homes in March reached 3,032 units.

Units were snapped up in both new launches and projects launched earlier.

Among the new kids on the block, top-sellers included Ripple Bay (326 units sold at a median price of $883 psf), Palm Isles (102 units sold at a median price of $860 psf), Seletar Park Residence (98 units sold at a median price of $1,162 psf) and East Village (83 units sold at a median price of $1,309 psf).

Among projects launched earlier, The Minton (118 units sold), Riversound Residence (115 units sold), Archipelago (93 units sold) and Bartley Residences (86 units sold) saw strong demand.

Though no new ECs were launched in March, buyers - especially upgraders - continued to buy, with The Tampines Trilliant and Twin Waterfalls transacting 369 units and 153 units respectively.

Developers are likely to continue riding the selling momentum with new launches, says Chua Chor Hoon, Head of Asia Pacific Research at DTZ. "Even if monthly purchase activity were to drop by half for the next nine months to a more sustainable level (of about 1,200 units a month), total primary sales would still exceed that of last year," she said.

Demand for higher end units also seemed to become more resilient to the cooling measures, with almost twice as many homes in the above $2,000 psf range being sold in March, compared to February.

The priciest unit sold by a developer for the month was an apartment at Skyline@Orchard Boulevard, which transacted at $4,442 psf.

The bulk of properties sold in March remained in the $1,000 to $1,500 psf range, similar to the month before.

The mass-market outside central region (OCR) continued to dominate demand, with a total of 1,825 OCR units (excluding ECs) sold, just seven units less than the 1,832 homes transacted in February.

"This is the first time we have seen OCR sales sustaining above 1,500 units for three consecutive months," said Chua Yang Liang, Jones Lang LaSalle's head of research (South East Asia). "Going by this rate of demand, we are looking at an average (3-month moving average) of 1,806 units, equivalent to an annualised demand of 21,672 in the mass market segment alone."


Developers continued focusing on this segment, with OCR seeing 2,119 new units launched, some 35 per cent higher than the month before.

Mohamed Ismail, CEO of PropNex Realty also pointed out that though consumers still take keenly to mass market OCR developments, developers may soon face resistance from buyers should prices continue to rise.

Another alternative - more cooling measures - has also been touched upon. Chia Siew Chuin, director of research & advisory at Colliers International noted, however, that it would be "premature" at this stage to roll out new interventions. She noted that in such a market, price movements may serve as a "better yardstick" for more measures as opposed to sales volume alone.

Meanwhile, more launches are on their way in the months to come. These include UOL's 244-unit Katong Regency, Allgreen's 928-unit Riversails, Far East's 338-unit Seahill and Hoi Hup's 376-unit Sea Esta.

Re: Singapore Government Announced Property Cooling Measures

Posted: Fri Apr 20, 2012 5:00 pm
by Dennis Ng
New property launches selling like hot cakes...

Cheers!

Dennis Ng

RESIDENTIAL developments launched over the past week continue to be snapped up like hot cakes, despite their increasingly hefty price tags.

UOL's Katong Regency, which was soft launched barely two days ago, saw a large crowd at its showflat on a weekday afternoon, with many prospective buyers standing around eagerly analysing price lists of the units.

In fact, the freehold 244-unit mixed development which will reside on the former Lion City Hotel and Hollywood Theatre sites, was said to have sold around 70 per cent of all its units as of yesterday evening at an average price that ranged somewhere between $1,500 and $1,600 per square foot (psf).

According to agents smaller units, such as a 550 sq ft one-bedder unit, also achieved high prices starting from $950,000 - which translates to around $1,727 psf.

Last weekend, CapitaLand also saw brisk sales at the launch of its 99-year leasehold Bishan 509-unit condominium project, Sky Habitat, with 125 units out of the 180 launched sold by Sunday evening at prices that were well above those asked by existing developments in the vicinity.

Notably, average prices for a four-bedder and a one-bedder were said to come in at around $1,642 and $1,747 psf for the respective unit types with buyers being primarily Singaporeans

During UOL's annual general meeting yesterday, group chairman Wee Cho Yaw pointed out that the robust take-up at property launches is likely due to the high amount of liquidity in the market amid a low interest rate environment, which in turn spurs investors to park cash in options such as properties or stocks.

Consultants also note that demand has been well supported by local buyers so far and expect the sales momentum to continue in the coming months, especially in well-located sub-urban developments.

However, if demand and prices continue to spiral higher, some worry that new cooling measures might be rolled out by the end of the year.

Re: Singapore Government Announced Property Cooling Measures

Posted: Mon Apr 23, 2012 10:55 pm
by Dennis Ng
History repeating itself?

In 1997, developer launched a New condo in Bishan then, named Bishan 8, at S$1,100 psf, during that time, property prices at S$1,000 psf is deem high and more like prices for City centre condos.

In 2012, another developer launched a New condo in Bishan, named Sky Habitat, and the project property price does live up to its name, launched at S$1,700 psf, again this is more like prices for City centre condos. For instance, a recent unit in The Sail was sold at S$1,700 psf.

History does NOT repeat itself ENTIRELY, but I really hope history is not repeating itself again.

For the buyers of Bishan 8 in 1997, in 1998, property prices fell, and they waited 13 years later only to see prices of Bishan 8 transacting at S$800 psf in year 2010...still lower than their purchase price 13 years ago...without even factoring other costs, eg. Bank loan interest cost, Opportunity costs, etc, etc...

In Property purchase, people only remember the importance of Location, Location, Location.

But they forgot another Crucial factor called Timing, Timing, Timing (something which I always remind people in my property seminars.

I'm not saying that history will repeat itself, I just personally rather buy The Sail (at Marina) at S$1,700 psf than a condo in Bishan at the same price. What about you?

Developers gave the impression that the property market is very, very hot. However, URA statistics tell me there are close to 40,000 unsold New condo units as at 31 Dec 2011 and some condo projects, eg. D' Leedon after selling for more than 2 years, still have about 1,200 units unsold.

Re: Singapore Government Announced Property Cooling Measures

Posted: Mon Apr 23, 2012 11:06 pm
by racoon12
Hi Dennis

Agreed with your sharing. My friend with me the same to his friend that bought Bayshore park at $1million 10 years ago to see that the price when down and up to <$1million 10 years later.

Many thanks

Re: Singapore Government Announced Property Cooling Measures

Posted: Thu May 03, 2012 9:54 am
by Dennis Ng
sure, I believe what Minister said that HDB has not shrunk flat sizes. However, I checked and discovered that my mum's 4-room flat (bought in 1985) floor area is 110 sm and nowadays 5 room flat floor area is 110 sm. :D My 5-room flat (built in 1985, which I purchased in 1995) is 130 sm, plus access area is 136 sm (I bought over the access area for S$2,000, if I didn't remember wrongly).

Cheers!

Dennis Ng

May 3, 2012
HDB hasn't shrunk flat sizes, says Khaw

By Jessica Cheam

NATIONAL Development Minister Khaw Boon Wan yesterday addressed two questions many had been asking regarding the size and price of Housing Board flats.

No, he said, HDB flat sizes have not shrunk in recent years.

And no, prices will not shoot up in the same way they did in the past.

He gave these assurances at a feedback forum, after participants took the chance to quiz the minister in charge of housing.

While many believe that HDB flats have been shrinking, Mr Khaw said that flat sizes have in fact remained unchanged for the past 15 years.

A four-room flat, for instance, has remained at 90 sq m since the mid-90s, HDB figures show. HDB has also said that the amount of living space per person has risen, as the number of people in an average household has dropped.

Mr Khaw said Singapore will not go the way of Hong Kong, where public home sizes are much smaller. 'I would consider that a deterioration of our quality of life and we should avoid that,' he said.

As for prices, he said flats would remain affordable, and that the current high levels would not persist.

Prices had shot up, he explained, due to a 'temporary imbalance' of demand and supply: Singapore's population had grown so rapidly in the past five years that the infrastructure could not keep up. But HDB has been pumping more units into the market, and 'there is some stabilisation', Mr Khaw said. The housing market will stabilise once this imbalance is corrected, he added, though it will take time.

'In the next five years, I'm committed to building at least 100,000 HDB flats if necessary,' he said, adding that the Government will continue to release land if needed.

One participant, consultant Lu Keehong, 55, noted that buyers who bought an HDB flat for $60,000 two decades ago could sell it for $300,000 today. Did that mean, he asked, that prices would rise five times again over the next 20 years?

Replying, Mr Khaw said that housing values had grown so much primarily because of Singapore's rapid economic growth in the past. But as it reaches maturity, ending the days of high gross domestic product (GDP) growth, the growth in property prices will likewise slow down.

He also talked about the proliferation of 'shoebox' units of 500 sq ft or less built by private developers. The Government is keeping an eye on this trend, said Mr Khaw, and if the proportion of such units becomes too high in the market, 'we may have to step in'.

Re: Singapore Government Announced Property Cooling Measures

Posted: Thu May 03, 2012 2:39 pm
by racoon12
So if minister said never shrunk the flat size...then why the price come with so much difference, due to inflation? The workers wage never goes up, we used the same materials and same kind of machine to built nothing fantastic difference. :?:

A 5 room bought from HDB in 2002 cost <$300K Vs a 5 room bought at 2011 cost >$380K. OMG in less than 10 years :!: