Primary market is still moving.

There were many preview launches since the start of March 2013. Initial reports in the papers indicate that sales volumes are good due to high demand in the market.

Some buyers / investors are undeterred by the ABSD imposed and are still buying but they are more selective ie location, quantum, size etc.  

D'Nest @ Pasir Ris, Sennett Residences @ Potong Pasir, Trilinq @ Clementi, Urban Vista @ Tanah Merah, Bartley Residences @ Bartley Rd all registered healthy sales volumes over their first week of preview launches.

However, the resale market has really taken a beating. Sales volume are down and there appears a widening gap between sellers' asking prices and buyers' offer prices.
The drop in transaction volume is also attributed to sellers unwilling to sell due to the additional stamp duties that they would have to pay when they buy a replacement investment property, thus they rather hold on to what they have currently. Besides, the low interest rate environment is in their favour and is unlikely to see much changes in the next 6-12 months. This makes it cheap to continue holding on to their investment properties.

On the commercial property side, it seems that sellers are asking for higher than valuation prices and investors are still biting. This scenario is very similar to 2007 where prices rise so quickly that buyers are the chasers in the bull market. Having said that, there are still many gems to be found.

I am also getting more enquiries from my clients about investing into commercial properties.

On a personal level, I am exploring overseas investment opportunities with the nearest destination just over the causeway.

A new class of affordable HDB flats?

There has been much discussions over the last few weeks on low cost HDB alternatives. It is probably a hot topic at this moment. 

What alternatives were mooted and could it have an adverse impact on current HDB owners?

Luckily, National Development Minister Khaw Boon Wan has made it clear that the low cost HDB will not affect the existing owners, but there would still be an impact no matter how distinctly different it is, just like how HDB prices can affect EC and private condo prices.

He proposed 3 ways to differentiate the low cost alternatives from the current HDB;

1) Longer Minimum Occupation Period
In theory, this is quite easy to implement but it would really impact those that eventually come under this scheme. I don't know how much longer it can be extended by; 7 years? 10 years? What if some owners that need to sell their flats before the MOP for various reasons? It may be unrealistic in reality.

2) Shortening the Lease tenure
In theory, if the lease period comes down, the cost should reduce proportionately. But we know that in land scarce Singapore, this may be a temporary effect and costs will go up over time. The purpose of creating maybe a special group of affordable flats may be rendered useless. Morever, due to a shorter lease, it may even be difficult to resell it in future.

3) Separating It From Resale Market

This may be the one to be implemented but currently, it is still very vague and we will need to see the proposed terms and conditions that will govern this special 'class' of HDB flats. Perhaps, it would be made mandatory to resell it back to only the HDB at cost plus an embedded profit over x years of holding and thus recycled to others who fall in this category? The problem with this is that it will be difficult for aspiring owners in this category to upgrade as they will not enjoy the appreciation like others outside this category. 

At this point in time, I believe there are lot more considerations to take into account before such a plan gets implemented. 

Only time will tell if it takes off. 

BTOs for Singles announced

Finally, the long awaited announcement to allow Singles to apply for new BTO flats has arrived !

Hurray to all waiting for this piece of news.

Of course, there are terms and conditions - singles must earn < $5k and are only allowed to purchase 2 or 3 room HDB flats in non-matured estates.
The purpose of this is aimed towards helping the lower income group of singles own their home.

Tough luck for singles that do not fall in this category as this probably means that they are earning substantially to either dip into the resale market on their own or even purchase a private residential unit on their own. 

I believe this is a good move on the whole as the lower income earning singles really need all the help they can get and they can fulfill their aspirations to own their own homes. 

Many launches and leftover units

On Saturday, I flipped the papers and saw numerous launches by the major developers and the smaller ones trying their very best to entice buyers or undeterred investors book a unit.

Among the new launches or previews, my sources tell me that Trilinq @ Clementi has sold quite a number of units. Bartley Ridge's showflat is open for preview; D'nest's preview launch was also well received. Sennett Residences @ Potong Pasir also saw brisk sales.

There were also many advertisements showcasing properties from Malaysia, especially at the Iskandar area, UK, Thailand and the Philippines.

The hot topic pointed out Tanah Merah area and a particular anticipated launch - Urban Vista is generating a fair bit of buzz. I believe many 'Expressions of Interests' (EOI) via blank cheque submissions by prospective buyers have been collected. A few of my clients also asked me about them.

The advantages have been covered in my earlier posts which I will not repeat here. The launch on Fri, 15 mar'13 will reveal the results.

On the whole, I think transaction volumes appear to dip slightly but there are still a strong demand by genuine first time buyers out there and not forgetting the foreigners and PRs who are  still undeterred by ABSD. After all, the market will be flushed with liquidity and will continue to do so unless a catastrophic economic event were to occur but at this point in time, I think this is very remote.

My Manhattan - only 2 units left

Property in the East has seen increasing demand recently. If you haven't heard of MY MANHATTAN, this development is right opposite Simei MRT Station and Eastpoint Shopping Mall.

This development will probably be NEWEST and the LAST development to be completed within 300m of Simei MRT station as there is simply no more empty residential land available. Well, there is a tiny plot just behind East Point Shopping mall but there has not been any news of impending GLS in the near future.

This project looks to be on track to TOP in about 12 months' time.

With low psf compared to other similar aged developments in the area, it's no surprise that only 2 ground floor units are left:

> 3-bedroom unit, 1259 sqft, S$1.5XM
> 4-bedroom unit, 1668 sqft, S$1.8XM

The usual buyer stamp duty rebates still apply.

> little wasted space - no bay windows, no planter boxes!

All bedrooms can fit a queensize bed with spare space.

Expect prices to rise due in the whole area due to PMETs from Changi Business Park and the upcoming 4th university which is walkable within 15 mins.

If you're interested, or know of anyone who might be, please contact me.
Or head over to my website at www.propertyconciergesg.com

Showflat Visit of D'Nest

I paid a visit to D'Nest's Showflat yesterday out of curiosity as this is really a large project.

This development is situated at Pasir Ris Grove and is shaped like a letter L. Beside it are other private residential developments like The Palette, NV Residences and Livia. Walking to Pasir Ris MRT station takes approximately 8 mins. 

Sitting on approximately 41,275 sqm / 444,284 sqf of land, this is really one of the largest private residential development in that area. The only one I can think of that is very big in land size is Loyang Valley. 

At first glance of the draft floor plans, the one bed units (approx 484 - 570 sqf) look pretty decent in size. The layout is quite good as well. It is a proper separated bedroom from the living and dining area. 

The washing machine area and wardrobe is to one side of the bedroom and the bathroom is through it. 

This is a good and efficient way of space utilization. Moreover, it makes the available area appear much bigger than it is. (See below picture)

The unit also comes with a movable island in the kitchen area and a foldable ironing board in the closet area in the bedroom. A nice touch from the developers.

The 2 - 4 bed units are pretty decent in layout design as well. One of the rooms in either room types comes with a choice of either (i) construct the bay window flushed against the floor whereby there is storage room beneath it or (ii) construct the storage area flushed against the bay window so that you have a large storage area spanning from beneath floor level to the top edge of the bay window. 

Depending on the objectives of the purchaser, by using option (ii), a super single bed can be placed on top of the resulting platform, thereby freeing up more space in the room. 

From my understanding, there are four colour themes one can choose from from a very modern cool feel to a more warm tone. IIRC, all units will come with kitchen appliances including the fridge, cooker top, hob, oven and refrigerator. I think the one bed units will also come with a washer/dryer unit (cannot confirm).

According to the draft e-brochure that I received, the development has more than 30 different facilities sprawled across it. It also comes with a basement carpark with 912 lots (1:1 ratio), 13 handicapped lots, 6 electric car lots and 6 washing bays. It seems quite decent. 

My only concern is the quality of the carpentry work that was in the showflats. I really hope that the actual quality and finishing when the development is complete shows a vast improvement. I would put it down to the developers rushing to complete the showflat for the impending launch. 

All in all, unit sizes are pretty decent by today's standards and layouts are generally good. 

This development is worth considering for upgraders currently staying in that area and neighbouring towns. 

Another round of cooling measure coming up?

With the latest news of China implementing another round of cooling measures over the weekend, I can't help but think that there may be a similar one coming up soon by our government before the end of this week in anticipation of more hot money flowing in Singapore.
My gut feel tells me that it may be a tweak to the most recent round of cooling measures.
Maybe it will have something to do with putting a limit onto the Mortgage Servicing Ratio (MSR) for private residential property loans since the cap has been lowered for HDB loans.
Only time will tell if my fears will come true.

Upcoming Launches - Mar'13

These are the few upcoming launches coming up in Mar'13 in the mass market segment post the latest round of cooling measures implemented back in Jan'13.

In the East and North-east, we have D'Nest in D17, Pasir Ris. This is one of the largest development in Pasir Ris area consisting of about 912 units and is a JV between CDL, Hong Realty and Hong Leong Holdings. The land size is estimated to be over a massive 41,000 sqm.
This is a 99 yrs leasehold development and it is located within 7-10 mins' walking distance to Pasir Ris MRT station.
The unit mix ranges from the usual 1 - 4 bedroom units. However, it also has 5 bedroom dual key units and even 5-6 bedroom dual key penthouse units.
Facilities appear to be extensive as this is expected for a development of this size.
Prices are estimated to be starting from $6xxk onwards and sizes of the units from 484 sqf. This works out to approximately $13xx psf for the smallest units.
I believe this will development to appeal to upgraders living around that area and very likely first timers who have been holding back.

Next, we have the much awaited launch of Urban Vista in D16. I have been paying special attention to this particular development since the land parcel was sold to Fragrance Group and World Class Land.
This development is situated literally at the door step of Tanah Merah MRT station and is directly at the opposite end of the recently TOPed Optima. This is a 99 yrs leasehold development and will consist of 585 units including 3 retail shops.
The unit mix ranges from 1 - 4 bedroom units of Soho, suites and normal condo units. However, it also has 4 bedroom dual key units.
Prices are estimated to be starting from $6xxk onwards and sizes of the units from 430 sqf. This works out to approximately $15xx psf for the smallest units.

What is interesting about this project is its location. It is situated right smack in a private enclave consisting of only private residential condo and landed property. With an MRT station right by it plus another plot of land zoned commercial right beside it, the potential is enormous.
A further analysis revealed that FEO's eCO which is slightly further away was sold at a range of $11xx - $16xx psf successfully and almost all the units were sold out excluding the townhouses.
Also, KeppelLand also successfully won a recent tender of another plot of land opposite Tanah Merah MRT station at a whopping record price of approximately $792psf. This is about $116 psf more than the land which Fragrance Group and World Class Land won for 'Urban Vista'.
Furthermore, there are only 2 more plots of land available for sale opposite Tanah Merah MRT station.
Coupled by the fact that demand for rentals in that area and Simei is very high due to Changi Business Park and the 4th Uni later on, I think this development appears to have good potential.

Next, we have Bartley Ridge in D20. This is also a large development situated in Mount Vernon  consisting of about 868 units and is a JV between Hong Leong Group and CDL.
This is a 99 yrs leasehold development and it is located right by Bartley MRT station.
The unit mix ranges from the usual 1 - 4 bedroom units and 4 bedroom dual key units.
Facilities appear to be extensive as this is expected for a development of this size.
I do not have any information regarding pricing at the time of writing.
I believe this development will appeal to a lot of people because of its location and proximity to good schools in the vicinity, shopping malls and city area.

Lastly, there is a cluster housing project called Charlton 27 which situated by the junction of Surin Avenue and Charlton Road. This development is made up of 27 inter and corner terrace houses and is freehold. Units contains 4-5 bedrooms with en-suite bathrooms and a private lift. They are spread over a basement with split levels and an attic level. Each unit will also come with 2 carpark lots.
Shared facilities include a steam room, gym, a 50m lap pool and jacuzzis.
Prices are estimated to be about $3.XXm onwards.
Location is pretty ok and is about 10 mins by bus to Heartland Mall and Kovan MRT station.

I await with anticipation of the prices during the VVIP launches of those above-mentioned mass market condominiums.

7th Round of cooling measures - Jan 2013

This is the most comprehensive round of measures ever implemented by the government. The scope of the latest cooling measures are wide-reaching and it covers everything from public housing, private residential and for the first time industrial properties as well. Only commercial properties were left out.

For more details, go to MND's website or my website at the following link. Click Here

I can understand the rationale of the government's point of view in implementing these measures. This is to further prevent a speculative bubble from forming as prices of residential properties in all regions were rising on the whole. Even prices of industrial and commercial properties have gone up tremendously. This is probably due to unusually low interest rates that we are seeing now due to the effects of Quantitative Easing (QE) from the US. Too much hot money is flowing into Asia.

With so much liquidity flowing into Asia coupled with more property measures in HK and China to stop a bubble from forming, funds are flowing into Singapore at an astonishing rate.

Even with the implementation of Additional Buyer's stamp duties (ABSD) since the last round of cooling measures, I am still seeing a large volume of transactions at increasing prices, especially in mass market residential segment.

Only time will tell in the following 3-6 months if this latest round of cooling measures will work.

A quick intro

My interest for real estate started way back during the Asian Financial crisis back in 1998. I did not really experience the effects first hand as I was doing my duty serving NS. However, I remembered hearing and reading about people who made a lot of money in real estate prior to the crisis.

Subsequently, a lot of people also lost money in stocks and real estate during the crisis.

Fast forward to the SARS period and the real estate sector is on a down turn and wasn't moving much.
It was only sometime in late 2006 where I really started paying a little more attention to real estate news. 

I started venturing into investing in real estate from 2007 onwards. My interests in real estate continued till today and the rest is history.