Category Archives: Property Market / Real Estate

Property analysts expect shift in housing policy

Posted on 20 May 2011 | Comments Off on Property analysts expect shift in housing policy

Property analysts are expecting policy shifts on HDB flats and mass market private homes, with the appointment of Mr Khaw Boon Wan as the new National Development Minister.

They say Mr Khaw is known to be an effective game changer.

With housing affordability as a hot-button topic during the elections, the analysts foresee Mr Khaw as being forceful on this issue, at least early on.

Terence Wong, research co-head at DMG & Partners Securities said he would not be surprised if Mr Khaw shows determination to make housing more affordable for the young.

Colin Tan, research and consultancy director at Chesterton Suntec International, said Mr Khaw has his ‘work cut out for him’.

‘PM Lee did say that the changes will allow for a fresh slate that will look at everything from scratch, so it’s possible that Mr Khaw will look towards reshaping and rethinking policies,’ he added.

The Government may overhaul other policies – including its immigration policy – to prevent a further run-up in prices and to cater to the increasingly squeezed middle class, analysts say.

The aim will be to ensure prices rise – or fall – in line with general economic growth, with a focus on the HDB and mass market segments to ensure affordability, they add.

The Government had already pledged to review the $8,000 income ceiling for buying HDB flats – unchanged for the past 17 years for first-timers.

Nicholas Mak, SLP International research head  said that the Government is unlikely to introduce sweeping measures that would cause a price slump as this would unfairly penalise sellers in the resale market.

However, it might look to bring down prices of new build-to-order HDB flats so as to draw demand away from the resale market and stem further price gains.

Last year, private home prices rocketed 17.6 per cent, while HDB resale prices surged 14.1 per cent, upsetting first-time home owners priced out of the market.

Chesterton’s Mr Tan added that policies focused on helping the middle-income group satisfy their housing aspirations are also likely as the middle class represents ‘mainstream Singapore’.

Comments Off on Property analysts expect shift in housing policy

Posted in HDB, Property Market / Real Estate

Tagged , , , , , , , , ,

High-end homes may see build-up in sales

Posted on 19 May 2011 | Comments Off on High-end homes may see build-up in sales

Demand in luxury homes seems to be creeping back, if last month’s new private home sales figures and reports of a fresh jaw-dropping record sale price are anything to go by.

A four-bedroom unit at SC Global’s The Marq on Paterson Hill recently sold at $17.5m, a record-breaking $5,842 psf – surpassing the previous high of $5,600 psf at The Orchard Residences in October 2007.

A total of 15 non-landed homes priced at $3,000 psf and above were sold in April – the highest number since December, when more than 60 units of Robinson Suites were sold in this price range, Savills said.

These included properties in Scotts Square, Alba, The Orange Grove and Tomlinson Heights.

Market experts say these sales might provide early signs of a comeback by high-end homes, where prices have struggled to recover to levels recorded during the boom in 2007.

The high-end segment must be monitored closely for the next few months before any trend can be firmly established, they add.

Kim Eng said in an analyst report that only three ultra-luxury projects – The Ritz-Carlton Residences, The Orchard Residences and The Marq on Paterson Hill – have achieved unit prices of more than $5,000 psf.

‘The latest above $5,000 psf transaction will certainly get the attention of high-end developers that are currently holding back on new project launches,’ the report added.

‘It might well be the tip of the iceberg, as we could see more sales breaking above the $5,000 psf mark.’

Cushman & Wakefield Singapore vice-chairman Donald Han noted that while he is confident that the high-end segment will do ‘fairly well’ for the rest of the year, not all projects can expect to set new benchmark prices.

The record price is likely an exception and limited to certain units and specific developments, he added.

‘But Singapore continues to be a sweet spot for investors with its robust economy and political stability… These factors look good to foreigners who contribute to the high-end activity here, making up 60 to 65 per cent of the segment above $3,000 psf,’ he added.

Experts also noted that some of the posh apartments sold last month – such as at Nassim Park Residences, The Orchard Residences and The Orange Grove – are already completed.

This could have encouraged sales since buyers of expensive apartments might prefer seeing the finished product before making a purchase decision.

Comments Off on High-end homes may see build-up in sales

Posted in Luxury Property, Property Market / Real Estate

Tagged , , , , , , , , , , , , , ,