The number of new private homes sold in Singapore dropped 64% monthly in June – at a two-year low, despite an absence on new developments. In addition, sales of luxurious non-landed residential properties decreased in the first half of 2022, to $1.1 billion, a drop of 43.7% in total sale value from the second quarter of 2021.
Terra Hill at Yew Siang Road is also accessible through the West Coast Highway, close to many bus stops, and less than 500m from Pasir Panjang MRT Station.
Private home sales for new homes in Singapore dropped 64% monthly in June, due to the absence in new home launches.
Excepting Executive condominiums (ECs), developers sold 488 units in June , compared against the 1355 units sold in May.
Annually sales fell by 44% between June 2021 and June 2021.
The June transaction numbers resulted in new home sales for Q2 2022 at 2,504 units, an increase of 37.2% from the previous quarter.
The decrease isn’t surprising, and is even expected given the absence of any new launch projects during the month.
PropNex Real Estate’s Director of Research and Content Wong Siew Ying says “In out of the return of international travel as well as the June holiday – when families are more likely to take holiday abroad – could contribute to the slowdown in market activity.”
As reported by Knight Frank, it’s the third straight month in which it is the month that Core Central Region (CCR) has sold more than 200 units as well, for the first time in the month of March 2021, the region has sold the highest number of units.
The CCR sold 206 units and it was the Rest of Central Region (RCR) and the Outside Central Region (OCR) sold 171 and 111 units respectively.
Luxury, non-landed residential sales have dropped in the first half of 2022.
Luxury non-landed residential properties decreased to $1.1 billion, with the total of 125 units purchased during the first half of 2022. That’s a drop of 43.7% in total sale value from the second quarter of 2021, as reported by Knight Frank.
A significant 50.6% quarter-on-quarter decline in sales was recorded in Q1 2022. The value of sales then growing by 29.4% quarter-on-quarter in Q2 2022 when investors sought secure skies and foreign investment came back to markets following the reopening of the borders.
As per the PropertyGuru Consumer Sentiment Study H2 2021 Luxury property demand continues to rise and as high as 32% of the millennials who are planning to purchase the most expensive property in the future.
In the same way, Knight Frank expects interest for luxurious non-landed homes that are fully furnished, especially larger-sized ones that are ready for immediate occupancy that will continue to rise in 2022 despite the increase in travel between countries.
The value of transactions for homes that are landed also fell 46.9% to $2.9 billion in the 1H 2022 period from $5.4 billion recorded in the 2H 2021 period.
“While the activity of transactions is expected to slow in the coming year due to a an uncertain global outlook however, it is evident that the shortage of homes that are landed and the growing domestic wealth will drive the market,” said Knight Frank.
“As so, the prices of housing in the land-based residential market are predicted to rise by 10% over the entire period of 2022.”
Rehousing for SERS is a new option that will are not popular with users.
Two new rehousing options presented by the Government for Selective En Block Redevelopment Scheme (SERS)owners appear to not be popular, even though these options do not have to cost any money.
The new options include shorter leases of 50 years for those who are 45 years old at the time when they receive the SERS announcement as well as the possibility of a lease buyback for older flats.
The Straits Times reported that out of the thirty people interviewed by Ang Mo Kio, 23 wanted a renewal of their 99-year lease, while two went to sign a 50-year contract, while five people were undecided.
Property Analysts were shocked by the fact that the majority of residents, especially seniors, preferred the fresh 99-year lease because there’s plenty of uncertainty for those signing the shorter lease of 50 years.
Prof. Sing Tien Foo, director of the Institute of Real Estate and Urban Studies at the National University of Singapore (NUS) noted the difficulty in predicting market value of 50-year-old flats, which be resold within 10 years.
In the past it was an increasing trend of younger buyers settling for older HDB properties and hoping to be picked for SERS.
Lakepoint Condominium receives URA approval to ease height limits
After the open tender in June without bids accepted Lakepoint Condominium’s marketing representative provided updates to the land development parameters for the property.
PropNex Realty revealed that the Urban Redevelopment Authority (URA) has said that “it is willing to relax the height restrictions for the development that will be constructed on Lakepoint Condominium collective sale site subject to specific conditions and a thorough analysis once the formal planning application is approved”.
JTC also confirmed that the development baseline on the site. With the reserve price remaining of $640 million that amounts to an average land cost of $988 per square foot per plot ratio (psf ppr) which includes the rent top-up fee as well as development costs as well as seven% area for balconies.
Tracy Goh, Head of Investment and Collective Sales at PropNex said the height control of the website is one of the issues expressed by interested parties . She also said URA’s “latest response will go some step towards addressing the problem”.
PropNex has announced that all offers on their site will be reviewed by July 22nd, 2022.
Research has revealed where to locate affordable HDB flats for resales amid rising costs
With the prices of HDB flats for resales rising steadily over the last two years, home buyers are wondering if they can locate cheap HDB flats.
Not least, Singapore saw public housing prices rise 18.4% over the past two years.
In an article by the Business Times, Nicholas Mak who is the Director of Research and Consultancy at ERA Realty has revealed that the most affordable larger HDB flats, like five-room, four-toom, as well as executive apartments, tend to be located in Sembawang.
The town was ranked first in the list of the most affordable median prices for executive and five-room apartments and second in the rankings for flats with four rooms.
Jurong West, Woodlands and Yishun were also included on the towns with the lowest median transaction rates for three, fourand five-room flats and executive apartments.
At minimum, 2.ha Pang Sua Woodland will be kept, as per HDB
As eco-consciousness has grown in popularity in recent times, people have expressed concerns about clearing forest to be used for residential purposes.
After receiving feedback from the public along with an environment study following an environmental study, the Housing and Development Board (HDB) altered their plans to build a brand new housing development within Choa Chu Kang to include at minimum 2ha of greenery, as reported by in the Straits Times.
The greenery that will be kept is located along the Pang Sua Canal.
HDB stated it was important to note that Rail Corridor’s initial route that runs through the the western region of Singapore will be preserved as long as it is feasible.
Nature groups, however continue to fight against the construction on the site.
Leong Kwok Peng who is the Nature Society’s (Singapore) Conservation Committee Chair was not happy by the decision of the government to go ahead with the development.
“By cutting down the size of the forest and its potential to be an ecological link along the Rail Corridor will be diminished,” he said, saying that the development should be kept to the eastern side of the site in order to keep as much green as is feasible.
Cicada Tree Eco-Place said Pang Sua Woodland should be left to its own devices as the area is insufficient for flats and wildlife.
“Building flats that are so close to wildlife corridors can only cause more conflicts between humans and animals that animals will are always losers,” it said.
HDB issue $1.1bil Green notes with a fixed-rate
The Housing & Development Board has issued $1.1 billion fixed rate green notes as part of their $35 billion Multicurrency Medium Long Note (MTN) program.
Due to mature on the 13th of July 2027, these notes are offered in $250,000 denominations with the coupon in the amount of 2.94% per annum payable every two years in arrears. They’re graded AAA by Fitch Ratings.
HDB stated its intention to use the proceeds from these Notes “will serve to fund as well as consolidate Eligible Green Projects under the Project Category of Green Buildings according to the HDB’s Green Finance Framework”.
Although the principle approval for listing the notes in the Singapore Exchange Securities Trading has been obtained, it must “not be considered to be an indication of the advantages of HDB or its subsidiaries, nor of the notes” HDB said. HDB.
Four adjoining units in Peninsula Plaza up for sale for $60,000
Four adjoining commercial units in Peninsula Plaza has been put on the market with an estimated price in the region of $60,000 million as revealed by the marketing agent PropNex Realty.
It is $3,750 for each sq ft (psf) according to the strata area total of 16,038 square feet.
The portfolio is anticipated to draw a lot of attention because of the difficulty of locating a large commercial space in the strata that is adjacent to the city’s central area. It also comes with a 999-year leasehold.
The auction for commercial units will close on the 18th of August, 2022.
REITs, massive developers Earnings to rebound
Moody’s Investors Service believes that the credit quality of REITs and major property developers in Singapore will remain steady through 2023 despite the rising the demand for commercial properties due to the ease of curbs on COVID.
“Higher the retail market and footfalls following the ease of COVID curbs will lessen the requirement for rent rebates. This will help boost earnings in retail assets,” added Moody’s analyst Yu Sheng Tay.
“Office rental rates will increase due to an increase in demand from employees returning to work despite the shortage of office equipment that is new and high-quality.”
The most well-positioned companies to benefit from the recovery in demand include CapitaLand Integrated Commercial Trust, Mapletree Commercial Trust and Frasers Centrepoint Trust as per Moody’s.
City Developments, GuocoLand and UOL Group will also benefit due to their large property portfolio and hospitality services.
Although rising inflation and rates of interest may slow down growth in the coming year Moody’s is still expecting the profits of REITs and major property developers to rise from 2022 until 2023.
Prime office rents are up 1.1% in Q2 2022
Singapore witnessed prime office rents in that Raffles Place / Marina Bay region increase by 1.1% quarter-on-quarter to $10.36 per square foot monthly (psf pm) per month on average during the 2nd quarter in 2022 said Knight Frank.
The increase in rent was during the first half of 2022 between 2.3% and 3.8% as office rents peaked in the third quarter of 2021.
Knight Frank noted that the Raffles Place and Marina Bay precinct also registered high levels of occupancy despite the shortage of office space. The occupancy rate increased 1.5 percentage points per quarter and reaching 95.4%.
“Overall CBD occupancy levels also improved. In a reverse of the decision to reduce size due to hybrid work certain companies are looking at options like restructuring and reshaping their offices for more flexible collaboration in the workplace,” it said.
In the future, Knight Frank expects office rents to increase between 3% to 5% through the entire year of 2022. It also anticipates the leasing market for office space remaining stable all through the year, considering that as high as 100% percent of workers permitted to return to their work place.
