RESIDENTIAL MARKET
HDB first - the ring can wait
A small but significant number of under-25s are putting down the deposits for their first flats even before the man has gone down on one knee.
Housing and Development Board (HDB) records show that under-25s formed 32, 39 and 35 per cent of its Fiance-Fiancee Scheme between 2009 and 2011 respectively. The median age of this group is 27.
National Development Minister Khaw Boon Wan noted last year that more than half of first-time buyers applied under the scheme. First-timers form 65 per cent of all applicants, he said.
The Business Times spoke to several young couples, all university students, fresh graduates, or relatively new entrants to the workforce with one or two years of experience. All were not deterred by their young age, smaller incomes, or even the lack of an official engagement.
In fact, many agreed that buying a house first "makes sense".
More modern-looking designs in the HDB repertoire sit well with young couples too.
Others find that getting public housing is the luck of the draw, and would rather not wait till they are engaged to attempt securing a flat.
Not only is it close to a three-year wait for Build- to-Order blocks to be constructed, but the application process is no guarantee of a flat.
Such young couples have "conflicting interests" in the battle for scarce property.
Their ability to plan ahead of time may price out those who need the flats more urgently, like married couples hoping to have children in the immediate future. HDB might have to prioritise those who need it now if more young couples edge them out.
But even if some young couples are less concerned about location, they must still be sure about their relationship before they sink money into a large asset like a house.
An HDB spokesman said the board advises young couples to "think through their options carefully" as buying a flat is a major decision, adding that HDB is always present to offer its assistance.
It also makes financial sense for young couples who are sure they want to tie the knot to purchase property early.
Taking advantage of the low income cap, couples can have "significant savings" if they get a flat earlier,.
Source: Business Times – 11 June 2012
CapitaLand has shoebox homes at Bedok Residences
CapitaLand Group, whose CEO recently called shoebox homes "almost inhuman", has residential projects with units that fall within this category.
At Bedok Residences, 37 of the development's 583 apartments are below 50 sq m (538 sq ft). The smallest unit is 48 sq m, or about 517 sq ft. Another 11 units border along the size of a shoebox apartment at 50 sq m.
Over at d'Leedon at Farrer Road, 226 of its 1,715 units are between 50 and 60 sq m, slightly bigger than what is usually considered a shoebox home.
The Urban Redevelopment Authority (URA) defines a small apartment as being below 50 sq m. There are, however, slight variations to benchmarks used on what constitutes a small home here. For instance, the NUS Singapore Residential Price Index (SRPI) classifies small apartments as those up to 506 sq ft (47 sq m). Most in the property industry agree, however, that shoebox apartments are units of about 500 sq ft each.
When asked about the small apartments that CapitaLand is building in relation to his recent comments, Liew Mun Leong, who is also the listed group's president, said: "CapitaLand does not build residential units for sale that are less than 500 sq ft each. At Bedok Residences, 37 units are 48-49 sq m each. If we convert to sq ft, they are about 517-527 sq ft each.
Source: Business Times – 11 June 2012
Resale home deals keep climbing
THE number of private resale non-landed home transactions continued to climb in April-May, on the coattails of a surprising turnaround in March.
According to data provided by the Singapore Real Estate Exchange (SRX), the total number of caveat and non-caveat transactions as at May 31 was 2,551, beating the 2,117 in Q1, and just shy of the 2,601 transactions in Q4 2011.
Buyers who adopted a wait-and-see stance after the introduction of the ABSD (additional buyer's stamp duty) are re-entering the market, buoyed by the exuberant return in buying sentiment in the primary market. They are also turning to the secondary market for better value as new launches set new benchmark prices.
In similar vein, Housing & Development Board (HDB) resale prices have risen 2.05 per cent in the past two months, to $438,800 from $430,000 in Q1.
The top three towns which witnessed price increases include Bukit Panjang (up 7.6 per cent at $460,000), Bukit Merah (up 7.55 per cent at $591,500), and Marine Parade (up 7.37 per cent at $502,500).
HDB resale market prices have reached their peak and are not expected to further increase in price in the coming quarters as buyers are becoming reluctant to pay high COVs (cash over valuations). Overall, the HDB price increment will be muted with no significant growth in the coming months.
On the rental front, private non-landed rent volumes fell 33.2 per cent from 7,504 in Q1 to 5,014 in April-May. Rental yield fell 25 basis points to 4 per cent.
In the Core Central region (CCR) rental yield fell from 3.42 per cent to 3.19 per cent, while in the Rest of Central region (RCR), rental yield fell 12 basis points to 4 per cent. In the Outside Central Region (OCR), rental yield fell 20 basis points to 4 per cent.
Source: Business Times – 11 June 2012
Cemeteries before, homes to die for now
SOME home buyers may be feeling a little squeamish about living at former cemetery Bidadari once it is redeveloped.
But property industry experts had this reminder for Singaporeans: Various high-profile residential areas share a similar history.
For instance, some apartments in mid- to high-end districts such as Bishan, Orchard and Tiong Bahru were formerly occupied by cemeteries, they say.
These experts noted that with the passage of time, the former use of a site is often forgotten, with the home's value unaffected.
The issue came to the fore recently when the Government announced that work on the new town, Bidadari, will start by the year end, paving the way for 12,000 new homes to be built there.
But despite their past solemn uses, these areas remain some of the choicest HDB estates due to their city fringe location.
While the first few blocks of homes to be built on such sites might face some buyer resistance, there is little stigma for subsequent projects once a population catchment is established.
But home buyers should be forward-looking, looking at a site's upcoming potential and taking into account the location, rejuvenation plans and new infrastructure planned for the estate.
Source: The Straits Times – 9 June 2012
Launch of two freehold condos
TWO freehold condominiums are being launched today amid a lull in the market, which are expected to give a gauge of the buying interest.
Both - one in suburban Eunos and another in central Mount Sophia - are relatively small projects, with fewer than 200 units in total between them.
The Tong Eng Group's Tropika East, a freehold project off Jalan Eunos, was privately previewed yesterday and will be open to the public today.
Already, at least 30 units have been snapped up.
The showflat at 1 and 3 Foo Kim Lin Road will be open to the public from 11 am today.
A three-bedroom unit of between 1,033 sq ft and 1,109 sq ft will cost from $1,150 per sq ft (psf) to $1,275 psf. Two-bedders ranging in size from 710 sq ft to 840 sq ft will cost between $1,250 psf and $1,350 psf.
One-bedders of from 441 sq ft to 527 sq ft will start from $1,350 psf, up to $1,450 psf.
Penthouses, measuring from 840 sq ft to 1,819 sq ft, are on sale for $1,000 psf on average.
The 105-unit condo will be split into three blocks of five floors each. It will be ready by June 2016. It is near to the upcoming 748-unit euHabitat.
Tropika East will be about 600m away from the upcoming Kaki Bukit MRT station, expected to be ready in 2015.
Aurum Land is launching its upscale development 1919 on Mount Sophia. Aurum Land is a subsidiary of Woh Hup.
The condo, expected to be completed by 2015, will consist of 75 black-and-white apartments.
Average prices range from $2,000 psf to $2,200 psf, while patio units - on the ground floor with a bigger balcony - start from $1,600 psf. Unit sizes range from 560 sq ft to 1,302 sq ft.
The showflat at 118 Sophia Road will be open to the public from 10am.
Dhoby Ghaut MRT Station is about a 10-minute walk from the condo.
Source: The Straits Times – 9 June 2012
Projects add some buzz to Bartley
SLEEPY, tucked-away Bartley may not be the first area that springs to mind for home hunters, but it is likely to come into its own as a housing area in years to come, some property experts have said.
More than 12,000 homes - public and private - are set to be built on the nearby former Bidadari cemetery plot when it gets redeveloped.
Meanwhile, there will be more than 1,000 units coming up from two plots of land being developed into condominiums by Hong Leong Holdings, City Developments and TID Residential.
One is the 702-unit Bartley Residences, which will be ready in 2015. About 400 units have been launched to date, with 80 per cent sold.
Work on the new town at the Bidadari plot will begin by year end, and the first Housing Board launch may be as early as 2015, which may mean new homes by 2018.
Bidadari is likely to 'fully awaken from its slumber' in the next five to 10 years once new developments fill up. It will boast new amenities which can cater to Bartley residents.
In addition, a site near Woodleigh MRT station has been slated for a future residential and commercial development.
Generally, new condos are about 5 per cent cheaper in Bartley than in Kovan.
In the resale market, prices are likely to be 8 to 10 per cent lower.
This could make the area a good bet for those working in the nearby Tai Seng and MacPherson industrial areas, consultants said.
There will be housing demand in Bartley because it's near to centres of employment, although those working there may not be as highly paid as those in Raffles Place.
Source: The Straits Times – 9 June 2012
Slow start for Stella RV condo
A RECENT new city centre launch in River Valley has had less than enthusiastic response, a recent report said, even as other suburban projects gather healthy sales.
Freehold 120-unit Stella RV in prime district 10 sold less than 20 units at its first weekend of launch at average prices of $2,100 per sq ft (psf), a UBS research report noted. The launch took place two weekends ago.
Jointly developed by Nobel Design, Pinnacle Assets Group and Fission Group, the project targets local and foreign professionals and investors.
It comprises mainly small-format units with one-bedroom plus study units at 452 sq ft, two-bedders at 517 to 581 sq ft, and penthouse units at 818 to 936 sq ft.
'Despite the small absolute quantum at $1.2 million per unit, we think the low take-up could be due to the premium pricing versus surrounding projects,' UBS analysts Michael Lim and Adrian Chua noted.
For instance, nearby RV Edge last transacted at $1,850 psf, Loft @ Nathan was sold at $1,750 psf while RV Suites changed hands at $1,650 psf.
Source: The Straits Times – 9 June 2012
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