Category Archives: Property Market / Real Estate

More private homes investigated for flouting minimum stay law

The number of private residential properties investigated by Urban Redevelopment Authority (URA) for breaching the minimum stay law has risen from 1,000 between 2014 and 2016, or an average of around 330 properties per year, to 600 from January to September this year, reported Channel News Asia.

Attributing the increase partly to “heightened public awareness of the regulations in place”, a URA spokesperson revealed that majority of the offences took place in condominiums.

To protect the “living environment of neighbouring residents”, URA has set the minimum rental period for private residential properties in Singapore to three months, which means typical short-term letting on platforms such as Airbnb is prohibited.

According to the spokesperson, URA is informed of potential violations either through feedback received from affected neighbours or a condominium’s managing agent or management corporation.

“All feedback will be investigated and URA works closely with the managing agents and management corporations on the investigations.”

URA, however, noted that most of the offenders have complied upon being served with enforcement notices, eliminating the need for further action.

“In considering the appropriate enforcement action to be taken, URA will take into account the specific circumstances of each case,” said the spokesperson.

“If the offenders are recalcitrant or fail to comply with our requirements following enforcement actions, they are liable to be charged in court.”

Notably, it is an offence to convert a residential property’s use for short-term accommodation without the approval of the URA under the Planning Act. Persons found to be violating the rules may be imprisoned for up to 12 months and/or fined up to $200,000.

Source – PropertyGuru

GCB sales rose to $209m in Q1

The good class bungalow (GCB) market reported an improvement in sales during the first quarter, with sellers lowering their asking prices to attract buyers, reported The Business Times.

“Owners who bought GCBs several years ago have found it profitable to sell at today’s prices rather than later, in view of the uncertainties in the economic outlook,” said Douglas Wong, Head of Luxury Homes at CBRE Realty Associates.

Based on CBRE data, there were nine transactions collectively valued at $209 million in Q1 2016. In the previous quarter, the number of deals was the same, but it only reached $161 million, while there were only four sales in Q1 2015 with a combined value of $95 million.

However, prices of these exclusive landed homes are estimated to have declined by nearly 15 percent from their peak in 2013, said Realstar Premier Group Managing Director William Wong, adding that prices could also see another marginal drop of two to five percent as a few GCBs were recently sold at below market valuations.

CBRE’s Wong also expects prices to fall slightly for the rest of 2016, given a build-up in pent-up demand and the strong holding power of most owners.

“When owners lower their price expectations, buyers who have identified a property they fancy will start biting, in the fear that someone else may beat them to it and they’ll miss the (chance) to buy their dream home. When buyers jump into the market in this fashion, owners will start to hold prices,” he explained.

Looking ahead, CBRE expects a total of 30 to 35 GCB transactions for the whole of 2016 versus last year’s 33 deals, with an overall value of $715 million.

On the other hand, Realstar predicts a 20 to 30 percent growth in volume, while total sales value may rise by just 20 percent due to the lower prices of some GCBs sold earlier this year.

Newsman Realty Managing Director KH Tan, who has noticed an increase in GCB viewings recently, forecasts that prices could increase by five percent for the entire year.

“We’re receiving more serious offers, unlike in Q4 last year, when many potential buyers were still throwing low-ball numbers at owners.”