RESIDENTIAL MARKET
Many unsubstantiated complaints against property agents
More than half of the complaints investigated by the Council of Estate Agencies (CEA) have been found to be unsubstantiated, or fell beyond its reach.
The agency also sent out 283 warning letters, and brought three cases to court.
This was revealed in the watchdog's first annual report, which covers the first 18 months of its operations. In October 2010, the agency began its arduous task of raising the standards of the real estate industry.
Said CEA president Greg Seow: "The industry has experienced significant change under this new regulatory landscape. CEA's approach has been to regulate with a lighter touch initially, and then gradually tighten up as the market adjusts to the new standards."
Between October 2010 and March this year, the agency had received close to 90,000 instances of enquiries, feedback and complaints.
Most complaints - 44 per cent - were about agents who were unprofessional and provided poor service by either giving the wrong advice or by not following proper procedures.
Complaints against misleading advertisements came in second, followed by misconduct, where a property agent might have harassed a client.
During that time, the CEA investigated 1,080 out of the 1,656 complaints lodged.
In 561 of these cases, the agency found variously that complainants made frivolous claims; the property agents did no wrong; there was insufficient evidence to substantiate a claim; or some cases were beyond its purview, such as disagreements between a landlord and tenant.
Source: The Straits Times – 2 November 2012
Reduced supply pushes prices up
Despite a record number of new flats launched by the Housing Board (HDB), prices of resale units continue to rise - 3.9 per cent so far this year - outpacing both the private market and economic growth.
This, said analysts, is largely due to a reduced supply of resale flats as more HDB dwellers choose to sublet their units when they upgrade to a private home.
Helped by low interest rates and healthy rentals from HDB units, these dual-property owners - of whom there are 33,000, or 4 per cent of all HDB flat owners - can use the rental to help cover mortgage payments on their private property.
Owners and analysts said a 2010 cooling measure - which barred private-property owners from owning both private and public homes - has also made HDB upgraders more determined to hang onto their flats.
Owners of private property who buy HDB flats must dispose of their private home within six months.
However, those who own flats can still buy private property.
And after they have stayed in the flats for the minimum five years, or less in some cases, they can rent out the whole unit while living in their condos.
The number of resale transactions has dropped by a quarter since the 2010 measure. In 2010, 32,000 resale flats changed hands. Last year, this fell to 25,000 and the figure for this year is expected to be the same.
At the same time, the number of HDB units rented out has skyrocketed. In 2009, about 24,000 units were approved for subletting by HDB. This has surged to 43,000 as of the third quarter of this year, an 80 per cent increase. This means that about 4.5 per cent of the stock of HDB flats is being sublet out.
Agency bosses said their subletting business has grown by 10 to 20 per cent while resale transactions have shrunk by about the same proportion.
DWG senior manager of training, research and consultancy Lee Sze Teck expects the bottleneck in the supply of resale flats to ease in a few years, when those who are waiting for their new flats to be built get their keys and sell their old units.
With the Government curbing the number of foreign workers and a huge supply of new flats and private units, analysts expect rental yields to fall in a few years.
The HDB has rolled out a record 27,000 new flats this year, and there are over 100,000 new private residential units and executive condominiums in the pipeline..
Source: The Straits Times – 3 November 2012
Rents of private flats a mixed bag
Rents for private apartments have been varied this year, with sharp rises in places like Geylang and Eunos but dips in Macpherson and Braddell.
The variations, strikingly wide in places, could be due to several factors, including the size and quality of the apartments and what amenities are on offer.
Landlords with flats in District 14 - which include Geylang, Eunos, Paya Lebar and Kembangan - topped the table with per sq ft (psf) rents rocketing 22 per cent in the first nine months of this year, according to the Singapore Real Estate Exchange (SRX).
This means average rents rose from $3.03 psf a month to $3.71 psf in the period.
The SRX collates transactions by major property agencies, which account for more than 80 per cent of the private rental market.
Rental gains of more than 10 per cent were recorded in District 3, which includes Queenstown and Tiong Bahru; District 12, consisting of Balestier, Toa Payoh and Serangoon; and District 20, where Bishan and Ang Mo Kio are found.
It was a different story in District 13, which includes Macpherson, Braddell and Potong Pasir, where rents slid by 6 per cent to $3.34 psf a month.
Average rents were down 4 per cent to $5.17 psf a month in District 2, which covers areas such as Anson Road, Shenton Way, Raffles Place and Tanjong Pagar.
On the whole, the SRX data points to rents rising, with areas near the central business district, where small units are available, registering a higher increase in rent.
A typical 1,500 sq ft three-bedroom unit at Rivergate at Robertson Quay, for instance, that was asking $7,500 a month a year ago now fetches $8,500.
A 2,000 sq ft three-bedder at Astrid Meadows in Coronation Road West was being rented for $7,500 a year ago but commands $8,500 today.
However, some projects, including BLVD in Cuscaden Walk, have floundered. Last year, for instance, a 2,000 sq ft three-bedroom unit at BLVD was being rented for $12,000 per month. However, due to noise from nearby construction activity, the asking rent is now $11,000
But the leasing market remained red hot with a record 14,029 leases inked in the third quarter - 8 per cent higher than the third quarter of last year, which was also a record.
Median rents reached historic highs for both landed and non- landed homes in the three months to Sept 30.
Source: The Straits Times – 3 November 2012
Selling Telok Blangah: It's parked in a good place
It is known for its nature spots and as a gateway to Sentosa but Telok Blangah has a more potent attraction - its proximity to the Central Business District and nearby business parks.
The quiet estate's prime position means demand for housing could grow as Singapore develops into a global financial hub and wealth centre, experts said.
Yet despite Telok Blangah's location at the city fringe, it remains largely tranquil, largely due to its vast expanse of parkland.
A park connector, Henderson Waves, links Mount Faber Park and Telok Blangah Hill Park.
But being close to the CBD, Mapletree Business City, Merrill Lynch HarbourFront and Alexandra Technopark gives it even more powerful selling points, as the active rental market attests.
Tenants are also drawn there by the presence of the VivoCity mall, one of Singapore's largest shopping centres, and HarbourFront MRT station.
The Telok Blangah MRT station along the Circle Line also opened last year.
Rents at the 969-unit Caribbean at Keppel Bay range from $6,000 to $6,500 a month for a 1,250 to 1,350 sq ft unit while a unit above 2,000 sq ft can command around $8,000 a month, Mr Png added.
Resale volume at the Caribbean at Keppel Bay also accounted for nearly a quarter of total new sale, sub-sale and resale transactions over the past five years, he added.
Though the rental market is buoyant, the number of new developments completed over the past five years is fairly limited.
There are also no sites in Telok Blangah under the Government Land Sales programme for the second half of this year.
Only three new condominium projects have been launched since last year - Foresta@Mount Faber, Skyline Residences and Harbour Suites. These are expected to obtain their temporary occupation permits some time between next year and 2015.
At Foresta@Mount Faber, developer Hoi Hup launched smaller units of between 430 sq ft and 720 sq ft at average prices ranging from $1,850 psf to $2,000 psf.
Other recent projects at the Telok Blangah area include the 1,129-unit Reflections at Keppel Bay condo and the new 333-room Bay Hotel Singapore directly opposite Sentosa Gateway.
Source: The Straits Times – 3 November 2012
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