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Why Are More People Buying Landed Properties Now?

Posted on by Goshen Admin

When the COVID-19 pandemic first hit, bringing with it the promise of an economic recession, the property market was expected to tank. After all, with Singapore residents tightening their belts, buyers would have been more cautious about committing to a purchase.

But against all odds, the property market proved surprisingly resilient, bouncing back strongly after a short slump at the beginning of the pandemic, primarily due to strong demand for private property.

Landed Property Sales Stronger than Ever 

Based on Q1 2021 real estate statistics published by the Urban Redevelopment Authority (URA), the price index for all residential properties rose from 157.0 in Q4 2020 to 162.2 in Q1 2021, a +3.3% increase.

Landed property provided an outsize contribution to these figures, with the price index for landed property rising from 173.8 to 185.4 over the same period, a 6.7% increase. This increase was partly due to landed property enjoying a significant percentage increase in transaction volumes in the past year.

By contrast, the price index increase for non-landed property from 153.3 to 157.1 resulted in a percentage change of just 2.5%.

It can thus be seen that landed property prices increased much more sharply than non-landed property prices in general, and that the overall price index increase was driven partly by landed property transactions.

But why are buyers flocking to landed property in this pandemic? Here are some reasons that could explain why that is happening.

Increased Optimism amongst Affluent Buyers

The pessimism at the start of the pandemic has dissipated for a number of households. Many Singapore residents were hit with job loss in 2020, with foreigners bearing the brunt of the retrenchments, but many affluent or high-earning residents emerged relatively unscathed.

The effect of the recession on incomes has not been even across the board. Certain sectors such as travel, tourism and retail have been more severely affected, and vulnerable groups have included freelancers, gig workers and workers in the service industry.

However, there are actually many other industries that have prospered during the pandemic. For example, digital and data services, essential retail businesses, finance and insurance sectors and more. 

Hence, there is likely to be a large market of affluent buyers, and it is likely to be these people who purchased private properties over the past year.

With the arrival of vaccines on the scene and a strong rebound predicted for the economy, many affluent buyers are feeling optimistic about the future of their finances. For these buyers, the pandemic has been a great time to pick up a new home or an investment property at a steal before economic growth starts to pick up again.

Desire for More Spacious Dwellings

The COVID-19 pandemic has had Singapore residents spending more time than ever at home. With an increase in working from home and the announcement by the Ministry of Education that home-based learning will be continued in some capacity even after the pandemic, having a spacious home has never been as attractive.

Furthermore, haunted by the spectre of the Circuit Breaker period in 2020 when everyone was forced to stay home, Singapore residents now have a stronger need for personal space. More bedrooms, more spacious common areas and a garden are now even more attractive as they are seen as beneficial to mental health.

Less Concern about Accessibility to the City Core

Lack of accessibility by public transport, which has traditionally been one of the biggest drawbacks for landed property dwellers, is now less important due to the reduced commuting afforded by home-based working and learning.

This sentiment is also reflected in the relative success of Rest of Central Region non-landed private properties, which enjoyed a 6.1% increase on the price index over the last quarter. By contrast, the Core Central Region only saw a very modest increase of 0.5%.

This suggests that Singapore buyers may be increasingly less concerned about proximity to the city core, possibly because of the rise of working from home.

Greater Desire for Privacy

The COVID-19 pandemic has brought about a greater desire to escape the crowds. With bigger condo developments housing thousands of people, condo dwellers are forced to come into contact with many people on a daily basis.

For instance, crowds are unavoidable in the lift during the morning rush hour, and there may also be competition for common areas such as the gym, swimming pools and playgrounds.

In addition, there have also been concerns about hygiene, particularly contamination of lift buttons, playgrounds, pools and gyms.

The privacy and freedom of living in landed property is thus more coveted than ever by those wishing to avoid contact with other residents.

Less Affected by COVID-19 Restrictions 

Tensions ran high during the Circuit Breaker period, with some condominium residents getting slapped with fines for flouting COVID-19 measures by using the pool or not wearing a mask in the common areas. Residents were not even allowed to exercise or walk their dogs in their condo’s common areas.

While the Circuit Breaker period has been reduced to a bad memory, mask wearing is still required in common areas at condos, and condo residents also face scrutiny over social visits and risk being reported to the police by other residents.

In contrast, landed property residents enjoy far fewer restrictions as they are free to use their gardens and enjoy any on-site facilities without having to wear a mask. Dog owners can also exercise their pets more conveniently, either in their own garden or on the street outside.

With a bigger space to enjoy and fewer neighbours within close proximity, residents are also less likely to encounter complaints from others in the neighbourhood when entertaining at home.

Are Landed Houses the Perfect Home in the Current Climate?

The COVID-19 pandemic has not only thrown into sharp relief the luxuries landed property dwellers enjoy but also rendered high-rise living more stressful and restrictive. Just as there has been an exodus of city dwellers to rural areas in bigger nations, Singaporeans are likewise reexamining their definition of an ideal home. With landed property looking more attractive than ever compared to condos, it is unsurprising that buyers with deep pockets are increasingly opting for the former.

Source: https://www.propertyguru.com.sg/property-guides/landed-property-growing-in-popularity-47730?utm_source=cmt_braze&utm_medium=edm&utm_campaign=sg-pg-consumer-newsletter-nlcc-enga-edm-cmt-20210507&utm_content=active—article2-btn

Why you should get a ready-to-move-in property

Posted on by Goshen Admin

5 benefits of getting a ready-to-move-in project

When it comes to choosing the right condo, there are many aspects you’ll need to consider: location, in-house facilities, and nearby amenities — to name a few.

Another aspect you should consider is whether you should choose a new development or a ready-to-move-in project.

While some might prefer buying a development under construction, many perks come with ready-to-move-in projects. Let us take a look at some of the benefits.

1) No need to rent during the interim period

If you’re moving into a new condo development, you’ll need to rent a place during the interim period.

It could take a few years before you finally move in, and during this period, you’ll need to fork out a significant sum to pay for your rental, which can be financially unproductive.

To reduce your sunk cost, it would make sense to opt for a ready-to-move unit as it allows you to settle in immediately, and you’ll not need to do any additional financial planning on your end.

Cutting out rent from your expenses will save you a significant sum even if the interim period is just a short few years.

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Source: Uptown @ Farrer

2) You get what you see

One of the biggest perks with ready-to-move-in units is that you get exactly what you see.

Condo brochures these days are better designed and depict the new developments as accurately as possible. However, that’s not quite the same as seeing the unit yourself in person.

Your perception of the floor plan based on images may differ from how the unit actually looks.

With ready-to-move-in units, you get to see the property in it’s completed state before you decide to purchase.

Expectations of what your soon-to-be home looks like will be met, and you can plan renovation works and interior design more efficiently.

You’ll be able to pick out furnishings and work with an interior designer to beautify the space in a more straightforward manner.

3) You can move in ASAP

Homeowners waiting to move into their new condo development may feel a little unsettled during the interim period.

It’s a bit of an awkward transition as you move into a temporary space while you’re preparing to move into your new condo. Besides spending on rent, you may need to spend a little extra on getting the right shelving or storage units you need.

During this period, many logistics arrangements have to be made and may add up to be quite a hassle.

Ready-to-move-in units can reduce coordination and planning significantly! Since there is no interim period, you wouldn’t need to move twice or do any additional planning.

What’s more, there’s no need to keep changing your address on your bills, which reduces quite a lot of administrative responsibilities for you.

Moving in immediately allows you to settle in and adjust to your new environment as soon as possible!

4) You can move in worry-free

All locks, windows, doors and plumbing would be in good condition in ready-to-move-in units.

It’s unlikely that you’ll need to deal with plumbing or electrical issues from the onset since these facilities are already put in place.

Locks, windows, and even kitchen stoves and other appliances should also be in good working condition so you can skip lots of renovation works.

With all the necessary fixtures in place, you can concentrate on what matters to you, settling down and redecorating to make the space your own.

If you’re looking for a home in the central, Uptown @ Farrer is an up-and-coming ready-to-move-in condo to consider. It’s situated right next to Farrer Park MRT, and its smart technology features are great for the modern family. Uptown @ Farrer is expected to attain the Temporary Occupation Permit (TOP) status in Q2 of 2021. Owners can look forward to moving in around Q2/Q3 of 2021.

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Source: Uptown @ Farrer

5) You can familiarise yourself with the environment

The great thing about moving into ready condos is that you’ll get to familiarise yourself with the environment before deciding.

You can visit the area, get to know residents living there, and perhaps even get an idea of who you’re living next to.

After all, it’s not just the interiors of your unit that affects your home life. The surroundings and people within the estate makes a big difference.

Ready-to-move-in condos let you experience the environment you’ll be living in right from the onset, so you know for sure that you’ll be comfortable living there in the long run.

Picking the right condo unit

Getting your own home is a huge decision, that’s why picking out the right condo unit is so important.

Ready-to-move-in condos help you ensure that your expectations align with reality and give you a more holistic experience when you’re scouting for your new home.

It’s comparatively more hassle-free as you wouldn’t need to move into a rental unit during the interim period.

A great condo to look forward to is Uptown @ Farrer, which will attain its TOP status by the second quarter of 2021. It’s located right next to Farrer Park MRT — a strategic area at the city fringes where it’s accessible yet private at the same time. If you’re scouring for new condo units to consider soon, you’ll definitely want to keep a lookout for this new development!

Source: https://deals.propertyguru.com.sg/property-offers/singapore-real-estate-reboot-2021-1/article/5-benefits-of-getting-a-ready-to-move-in-project-5

3 developments along the North-East Line to put in your house-hunting bucket list in 2021

Posted on by Goshen Admin

Getting a condo unit situated near an MRT station is always a plus — especially if you’re living along the purple line. It’s accessible, and you can get to the city area conveniently without much of a hassle.

The North-East line runs from Punggol to HarbourFront, passing by central areas like Serangoon and the city centre, Dhoby Ghaut. From end to end, the North-East line is just slightly more than 30 minutes, which makes travelling to town quick and convenient.

Additionally, you can change lines easily to the circle line, red line, blue line, and green line on various stations, making it easy to get around all parts of Singapore!

If you’re looking for a new condo located along the North-East line, you’ll need to check out some of these developments.

1) The Florence Residences

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In the heartlands

The Florence Residences is located between Kovan and Hougang MRT. Residents in the estate can take a 6 to 8 minute walk or take the complimentary shuttle bus service to either MRT stations.

With easy access to Hougang MRT station, residents can also look forward to the upcoming Cross Island Line (CRL) that connects them across the island. Comprising 12 stations in Phase 1, the CRL will connect homeowners of The Florence Residences to common recreational spaces such as Changi Beach Park and Bishan-Ang Mo Kio Park.

Since the estate is situated in the heartlands, you’ll get to enjoy a wide range of food in the area too. From hidden cafes to long-time hawkers, Hougang and Kovan are known for quality eateries featured in newspapers and food blogs.

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All the perks of luxury living

This isn’t one of those run-off-the-mill condos. The Florence Residences features a wide range of lifestyle activities and classes within the estate. In the first two years, residents get complimentary access to in-house pilates classes and other services — great for busy working adults who want to find balance in their hectic lives.

Interested in picking up a new skill? The condo has fun craft workshops and classes for you to try your hand at — from fitness and dance, cooking and baking, to niche skills such as flower arrangement. And that’s not all — children of all ages can also take up music classes.

There are even concierge services and 24/7 parcel collection facilities to ensure that all your needs are met and cared for.

Residents can enjoy the perks of luxury living with 12 clubs and 128 facilities right at the doorstep. With the wide array of facilities within your reach, this is truly a home that inspires and fuels your interests.

Various floor plans to suit your needs

Unlike most condos, there’s a wide range of floor plans to choose from at The Florence Residences.

You get to choose from 1 to 5 bedroom floor plans, depending on the space you need and the uses you’d wish to allocate to each room.

Now that many of us are working from home, it would be great to create a home office that’s designed to help with your productivity. Having an extra room for your home office can help you organise your space and create separation for your work life and home life.

For instance, the 3-bedroom, 4-bedroom and 5-bedroom units at The Florence Residences provide an upfront option for carving out a study area.

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Integrated health and wellness space

After a long day at work, you can head down to the Onsen, Salt Water Pool or Hot & Cold Plunge Pools to soak away the stress and rejuvenate your mind and body.

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If you’re a bike enthusiast, you’ll be glad to know that The Florence Residences features facilities such as Biker’s Hangout, Pavilion and Grooming Corner. With dedicated bicycle washing bays, mounts and repair stations, modern families can spend their weekend exploring the different parks connected to the condo.

The Florence Residences is also great for kids maintaining an active lifestyle. Featuring an open outdoor play area with slides and a pavilion for complimentary lifestyle activities, the facilities at this condo are designed to encourage activity and interaction among residents.

2) Uptown @ Farrer

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Accessible location

Located along the city fringes, Uptown @ Farrer is perfect for those who want a balance between privacy and easy access to the city. Just across from the condo is City Square Mall, where you can find enrichment schools catered to young children, and even children-friendly high element activities and fitness gyms suitable for adults.

Farrer Park MRT, which is just next to the condo, is only two stops to Dhoby Ghaut, one of Singapore’s liveliest areas.

If you prefer more traditional local food and heritage sites, you can take four stops from Farrer Park MRT to Chinatown. There, you’ll find lots of authentic hawkers and boutique bars and cafes that make great spots to hang out in the evening or on the weekend.

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Perfect for modern families

One of the best facilities that Uptown @ Farrer offers is its smart home provisions that easily syncs with your devices and smart home appliances.

As most of us work from home, you can tap into the in-built smart technology and make your work-from-home-experience a seamless one. This is great for those who own smart kitchen appliances and want to manage your smart home ecosystem.

If you have kids or are planning to, Uptown @ Farrer is also conveniently located near several educational institutions. For instance, Hong Wen School and Farrer Park Primary School are just a 2-minute drive away, while LASALLE College of the Arts, Singapore Management University (SMU) and School of the Arts Singapore (SOTA) are all within a 5 minutes drive.

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Amazing design

Uptown @ Farrer is easy to spot with its beautiful exterior architecture.

What’s more impressive is it’s skyline silhouette and the relaxing pool that’s surrounded by greenery within the estate.

After a long day staring at the screen, it’s great to step out and take a breather. It’s not hard to take your mind off the stresses of life when you’re surrounded by calming foliage and facilities specially catered to residents’ wellbeing.

Uptown @ Farrer comes a variety of floor plans. From 2-bedroom, 3-bedroom, 4-bedroom to 5-bedroom Duplex units, there’s sure to be something for your family.

3) The Landmark

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Convenient location for work and entertainment

Just 500m away from Chinatown, The Landmark is great for those who love to be surrounded by culture and heritage. It’s currently serviced by 3 walkable MRT lines (i.e. Downtown Line, North-East Line and East-West Line) from Chinatown and Outram MRT, as well as upcoming Thomson-East Coast Line (TEL).

A location for Live, Work and Play, you will have easy access to boutique stores, bars, cafes, and a wide range of authentic local food in the area as well. Additionally, being located so near to the CBD makes it extremely convenient for days where you have to go back to the office for meetings.

Whether it’s meeting friends for a drink, going to town for shopping or getting to work, everything you need is just a stone’s throw away.

Quiet and serene environment

Although it’s located in the city area, The Landmark is quiet and tranquil. Its single tower development had 396 units and is situated atop Pearl’s Hill City Park, away from the hustle and bustle.

Since it’s a relatively small estate, residents get to enjoy more privacy than the usual condo. Whether you’re single, a young couple, or have a big family, you’ll love the luxury and privacy that The Landmark has to offer.

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Wide range of facilities

The Landmark offers five decks of lifestyle facilities located in this single tower condo. Featuring jacuzzi spa, a fitness gym, a pilates deck, a heritage view deck and lush of greenery, The Landmark lets residents wind down at the comfort of their estate — perfect after a long day of work.

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With holistic lifestyle facilities spanning from home entertaining to outdoor recreation and physical fitness, the gem in The Landmark is the 50 metre Infinity Pool which lets you swim along the canopy of the well-aged Tembusu trees from the nearby park.

With the variety of amenities, this condo offers an extraordinary experience for residents looking for more than just a home to return to.

Affordable condos near MRT

The North-East Line is one of the most convenient and direct lines in Singapore. It runs through the heart of the city and also passes by the more popular heartlands.

Whether you’re a family with kids going to school or a young couple looking to live in amidst the excitement of the city, getting a condo along the North-East Line will definitely complement your lifestyle.

Source: https://deals.propertyguru.com.sg/property-offers/singapore-real-estate-reboot-2021-1/article/3-developments-along-north-east-line-to-put-in-your-house-hunting-bucket-list-2021-6

Private property prices post steepest quarterly rise in almost 3 years: URA flash estimates

Posted on by Goshen Admin
  • Private property prices rose 2.9 per cent in 1Q 2021, up from a 2.1 per cent increase in 4Q 2020
  • HDB resale prices rose 2.8 per cent in the first quarter, down from a 3.1 per cent increase in the fourth quarter
  • Property analysts say further private property price rises will hinge on border openings and an anticipated influx of foreign buyers
  • For HDB resale prices, the Government is in a position to regulate BTO prices to ensure housing remains affordable

SINGAPORE — Private property prices have posted a full year of quarterly increases after rising 2.9 per cent in the first quarter of 2021 from the fourth quarter of last year — the steepest jump since the second quarter of 2018. Prices had gained 2.1 per cent in the fourth quarter.

Analysts said the Urban Redevelopment Authority (URA) flash estimates, released on Thursday (April 1), indicate that the price rises were driven by sales in non-prime areas.

Private property prices in prime areas recorded a fall owing to the lack of foreign buyers due to Covid-19 travel restrictions, they added.

Housing and Development Board (HDB) resale prices also rose for the fourth straight quarter, increasing 2.8 per cent quarter-on-quarter in the quarter ended March 31, according to HDB flash estimates, also released on Thursday. In the previous quarter, the rise was 3.1 per cent.

Prices of both public and private housing have been on the rise since last year, sparking concerns about affordability.

Property analysts say that prices for private housing will continue to rise as more HDB dwellers look to sell their flats for an upgrade. A potential influx of foreigners as vaccination programmes are rolled out around the world may also lead to a surge in demand, they said.

Experts said that the HDB resale market, though on the rise, will not be as volatile as the private property market, as the Government will be able to cool the market by adjusting the prices of new Build-To-Order (BTO) flats.

HDB said in its flash estimates report online: “Given the economic uncertainty due to Covid-19, HDB is monitoring the housing market closely and will calibrate the supply if required.”

Both HDB and URA said that the statistics for the full quarter will be released on April 23. Flash estimates take account of some but not all of the data for the period under review.

PRIVATE PROPERTY PRICES SET TO RISE FURTHER WITH BORDER OPENINGS: ANALYSTS

Analysts said that the price rises were driven by sales of private properties in the rest of central region (RCR), which covers areas such as Chinatown, Tanjong Rhu and Boon Keng, which lie just outside the central core region (CCR).

The URA data showed that RCR prices jumped 6.1 per cent, compared to the 4.4 per cent rise in the previous quarter. In contrast, CCR prices fell marginally by 0.3 per cent, while those in the outside central region (OCR) — covering the rest of Singapore — increased by 0.9 per cent.

The CCR covers the traditional prime areas of Singapore such as Orchard, Newton, Bugis and Sentosa, and property prices are typically high in these parts of the city.

Ms Christine Sun, senior vice-president for research and analytics at consultancy OrangeTee and Tie, said that the surge in RCR prices is due to the increase in sales of pricier homes there.

Mr Leonard Tay, head of research at property consultant Knight Frank Singapore, told TODAY that many families in young HDB flats have reached their minimum occupation period and will be looking to upgrade to a private residence, driving up the demand for homes in the area.

“If their BTO flats are in fairly good locations, there will be some profits, and these profits will enable them to transit to the private market,” said Mr Tay.

A lack of foreign buyers, coupled with a dearth of new housing projects, accounted for the marginal dip in CCR prices, the analysts said.

Mr Chris Koh, director of property consultancy Chris International, said that the start of the year is when many foreigners typically return to their home countries while others were unable to travel to Singapore this year due to travel restrictions, thus the number of purchases fell.

The vaccination roll out and anticipated opening of borders in the coming year will probably push up demand again, he added.

“As we create more travel bubbles and once airlines start flying and the country opens itself up to foreigners, that would push the numbers up.”

According to URA statistics and those from Orange Tee and Tie Research and Analytics, foreigners bought 1,005 non-landed private homes in the whole of 2019, compared to just 743 they purchased last year amid the pandemic.

Agreeing, Mr Nicholas Mak, head of research and consultancy at real estate firm ERA Singapore, said that he expects a further increase in private property prices as borders reopen.

The URA and Orange Tee and Tie statistics show that the number of non-landed private homes bought by foreigners has jumped from 198 units in the fourth quarter last year, to 255 units in the first quarter.

This is also the highest quarterly number since the fourth quarter of 2019, when 316 units were sold to foreigners.

However, Mr Mak said the extent of any upcoming increase in sales remains to be seen, as the vaccination programmes for countries around the region have been “uneven”, keeping in mind that a big bulk of foreign buyers come from China, Indonesia, Malaysia and India.

“If you look at places like Indonesia and India, the pandemic is still not under control,” he said.

“No homebuyer would want to come here and go through stay-home notice for 14 days just to visit a showflat.”

HDB RESALE PRICES SET TO RISE, BUT NOT AS VOLATILE AS PRIVATE PROPERTY PRICES

While there is a steady stream of resale HDB units going on the market from sellers looking to upgrade, more young families have been jumping into buy flats on the resale market due to the uncertainty caused delays in BTO construction projects.

“(Buyers) are not sure when they can get keys to the flat,” said Mr Mak. “In the past it tends to be about three years, but now there are rumours that it could be four years or more.”

“As a result, some of these buyers turn to the resale market, where it is more certain, and this leads to an increase in demand and prices of HDB resale flats.”

Ms Sun noted that HDB resale prices are now just 5 per cent lower than the market peak in the second quarter of 2013.

“At the current pace of price growth, a new peak may be formed by the second half of this year,” she said.

However, Mr Mak said that the Government is in charge of public housing and has a greater influence of the price on resale flats. For instance, resale prices cannot hike too far above the prices offered for BTO flats.

“The Government has said time and again that it wants to keep housing affordable for Singaporeans… it may offer more HDB BTO flats, then it can keep the prices of the new flats low.

“This can have a moderating effect on the prices of the resale flats.”

Source: https://www.todayonline.com/singapore/private-property-prices-post-steepest-quarterly-rise-2q-2018-ura-flash-estimates?fbclid=IwAR0n1uJj1XP_E9vfN2snChkeJJvTfEENXPcWqrZx7Yog9MlxxtluMip02Sg
Writer: JUSTIN ONG

Quick takes: What is driving property buying in Singapore?

Posted on by Goshen Admin

PROPERTY buying activity in Singapore has been revving up the past few months amid low-interest rates, pent-up demand following the “circuit-breaker” period and a projected rise in HDB upgraders this year.

Urban Redevelopment Authority (URA) figures released on Friday showed that on a preliminary basis, developers sold 10,024 private housing units in 2020, surpassing the 9,912 units in 2019 by 1.1 per cent.

The property sector is also being monitored “very closely” by the Singapore government, which will adjust policies if necessary, said National Development Minister Desmond Lee. This is to maintain a stable and sustainable property market for Singaporeans.

CGS-CIMB is projecting private home prices to rise by between zero and 5 per cent for 2021 and volume demand to remain stable at between 9,000 and 10,000 units. It maintains its “overweight” call on the Singapore property sector, with its preferred picks being CapitaLand, City Developments Limited and UOL Group.

Here are some quick takes on what is driving the momentum for property buying in the Republic:

Low-interest rates, sub-1 per cent mortgages

In November 2020, the market was abuzz about Citibank’s aggressive home loan promotion for affluent clients who take a home loan of at least S$800,000.

The promotional floating rate from Citi is just under 1 per cent. But the talk is that for the well-heeled buyers of landed properties, the home loan rate could fall even lower.

This compares with UOB’s 1.35 per cent and 1.4 per cent for its fixed and floating home loan rates as of Nov 5, 2020.

Pandemic hit different parts of Singapore

A DBS report in October 2020 showed that lower-income earners (S$2,999 and below) made up about 49 per cent of DBS customers who suffered a drop in salary. Within this group, about half saw their income fall by over 50 per cent.

The extent of income deterioration in the food and beverage, hospitality and aviation sectors was even more pronounced than in other industries. In the aviation sector, some 40 per cent of workers’ income declined in March. This doubled to 80 per cent in May.

However, the private residential market has seen a disconnect with the general economic underperformance, given the recent surge in home sales and property prices.

The private home price index rose 0.8 per cent in the third quarter of 2020 over the preceding three months. The index is now up 0.65 per cent from a year ago, according to data released by the URA on Oct 23, 2020.

Anticipated lift in HDB upgraders

OrangeTee & Tie chief executive officer Steven Tan expects a surge in upgraders in the coming years, as more owners of new Housing & Development Board flats complete their minimum occupation period between 2020 and 2023 and will likely move to mature public housing estates or private residential properties, he said.

On the other hand, some owner-occupiers and tenants, including expatriates, are downgrading to smaller and more affordable housing due to employment woes and their industries suffering from Covid-19’s blow.

Foreign buyers make splash in Sentosa Cove

Buying activity in Sentosa Cove’s bungalow market has been getting busier in the past few months on the back of several demand drivers, including buyers from mainland China. List SIR’s analysis of URA Realis caveats database showed that 13 Sentosa bungalows transacted for a total S$195.66 million in 2020, up from just four deals adding up to S$83.39 million in 2019.

En bloc market revival

Market watchers are anticipating a new en bloc cycle to start in 2021, as unsold residential units under development fell in Q3 2020 to 26,600 units, signalling undersupply in the primary market. The start of the previous en bloc cycle was in Q2 2016, when inventory fell to 23,000 units.

A “conservative” and “calibrated” release of residential supply under the first-half 2021 government land sales programme is also likely to drive interest in the en bloc market, property analysts said to The Business Times in December 2020.

Supply will rise by 17.2 per cent for H1 2021, but analysts were mixed on whether or not the increase in housing supply was significant. However, most agreed that the government’s move to raise the number of residential units was in response to healthy demand in the market.

Source: https://www.businesstimes.com.sg/real-estate/quick-takes-what-is-driving-property-buying-in-singapore
Writer: VIVIENNE TAY

Commercial land development charges in S’pore reduced; those for residential use raised

Posted on by Goshen Admin

SINGAPORE – Development charges (DC) for commercial land have decreased, while residential rates have risen with the largest increases in prime areas such as Orchard Boulevard, Stevens Road, River Valley Road and Bukit Timah Road.

DC rates for commercial land use were adjusted down by 1.5 per cent on average in the latest half-yearly review released by the Ministry of National Development (MND) on Friday (Feb 26).

The largest decrease of 3 per cent was applied to the central region, including Raffles Place, Collyer Quay and Shenton Way and Marina Bay Sands areas.

Residential rates for landed use rose 1.5 per cent on average, while those for non-landed use increased by 0.3 per cent on average.

Only one out of the 118 sectors for residential non-landed use- 34 in Sophia Road – had its DC rates reduced. In this case by 4 per cent.

The largest increase – 6 per cent – applied to Bedok South Avenue 1 and the Kaki Bukit sectors.

Property analyst Ong Kah Seng noted that the increased DC rates for residential use are in line with the Government’s recent urging of developers to be prudent in their land bidding.

“The slight increase in DC rates reminds developers of added development costs, so they will not excessively acquire sites to shore up land inventory and over-develop beyond their capacity in this pandemic,” said Mr Ong.

CBRE associate director of research Catherine He said the revisions were “largely within expectations” and reflected the lower level of transactions over the past six months due to the pandemic.

The DC rates remain unchanged for hotel and hospital development use, industry use, place of worship/civic and community institution uses as well as for three other land-use groups: nature reserves; agricultural land; drains, roads and railways.

Mr Leonard Tay, head of research at Knight Frank Singapore, said it was surprising that there were no cuts in DC rates for hotel and hospital development use, given that the hospitality sector continues to suffer from a lack of tourist arrivals as Covid-19 travel curbs are still largely in place.

He said: “Perhaps the Government (hopes) to discourage new hotel developments until economic recovery is certain and some measure of cross-border travels are allowed as that would signal the promise of international visitors for the hotel sector.”

Source: https://www.straitstimes.com/business/property/development-charges-cut-for-commercial-use-but-raised-for-residential-uses
Writter : Michelle Ng

Singapore Home Prices Rise to Highest in More Than Two Years

Posted on by Goshen Admin

Singapore home prices rose to the highest in more than two years last quarter as the city-state forecasts a recovery from its worst recession since independence as Covid vaccinations are rolled out and restrictions eased.

Property values increased 2.1% in the three months ended Dec. 31, according to a preliminary estimate by the Urban Redevelopment Authority released Monday. That’s the biggest increase since the second quarter of 2018 when prices increased by 3.4%.

The gain marks the third consecutive quarter of growth, defying concerns home prices would decline amid lockdowns and border closures in the tourism and trade-dependent island. Instead, Singapore joins countries from Australia and New Zealand to the U.K. and the U.S. where property markets have surged during the pandemic, as record low-interest rates fuel demand.

Real estate values could rise further this year, as the government expects the economy to expand by 4% to 6%, rebounding from last year’s 5.8% contraction. The Southeast Asian nation has eased social distancing measures and started its vaccination program with health-care workers getting the first shots.

Buyer sentiment could pick up further on the back of Singapore’s vaccination roll-out, said Christine Sun, the head of research and consultancy at OrangeTee & Tie Pte.

(Updates with analyst comments in the fifth paragraph. A previous version of this story was corrected to say prices rose the most since the second quarter of 2018)

Source: www.bloomberg.com/news/articles/2021-01-04/singapore-home-prices-rise-to-highest-in-more-than-two-years

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