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S’pore property investments up sharply in Q4

Posted on 22 Feb 2016 | Comments Off

Property investment volumes in Singapore’s residential sector rose 14.8 percent to $1.69 billion in Q4 2015 from $1.47 billion in the previous quarter, revealed a Colliers International report.

“The $999.98 million transacted from the sale of three public residential state land parcels helped sustain the overall investment sales value for the residential sector during the final quarter, enabling it to claim its second top spot on the quarter’s sales chart with a market share of 28.4 percent.”

The total value of property investments in Singapore stood at $5.96 billion in Q4 2015, up 39.3 percent from Q4 2014.

In the private residential market, investment sales amounted to $688.83 million in the last three months of 2015. The good class bungalow (GCB) segment led the activity in this sector, with nine GCB transactions worth $160.67 million recorded during the period under review.

“Overall, the transactions involving large landed homes (with each worth above $5 million) contributed 70.1 percent of the $662.75 million accumulated in the private residential sector.”

Colliers noted that the most significant transaction was a two-storey freehold GCB at 61 Dalvey Road. Sold for $26 million, the bungalow is situated on an elevated plot opposite the Israeli Embassy and features five bedrooms and a swimming pool.

Meanwhile, no collective sales were recorded in Q4 2015 as tighter regulations softened end-user demand.

“Collective home sellers, on the other hand, are generally still holding on to their high asking prices. This mismatch in price expectation will likely stall the collective sales market in 2016.”

The consultancy expects public land sales this year to fall below 2015’s level as the government cuts back on public land supply.

“Given that a lower supply of land is available through the Government Land Sales (GLS) programme, the public sector’s contribution to the total investment sales value in 2016 is likely to fall below the $5.27 billion concluded in 2015.”

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Posted in Property Market / Real Estate

Tagged Good Class Bungalow, PRIVATE RESIDENTIAL PROPERTIES, Property Investment

Larger resale condos selling for less than $1m

Posted on 22 Feb 2016 | Comments Off

With the various property cooling measures in effect, buyers are spotting homes in the private resale market for $1 million or less, reported The Straits Times.

And these homes are not all shoebox-size. Some of the bigger units in good locations like Bayshore Road have been going for this amount.

“In 2010 to 2012, $1 million was a sort of standard or expected price to pay, and it was unlikely buyers could get something good for less than that,” said R’ST Research Director Ong Kah Seng.

“Now, opportunistic buyers are referencing it as a ceiling price. They are scouring for properties significantly lower than $1 million. It is still not easy to get these deals, but definitely much easier than before.”

In fact, the proportion of freehold or 999-year leasehold homes resold at this price range climbed to 17 percent from 2014 to this month, from just six percent from 2010 to end-2013.

Aside from the resale market, bargains are also being seen in the auction market, where mortgagee sales are taking place.

Since the start of Q4 2015, units on auction with opening prices of below $1 million included the mortgagee sale of a 790 sq ft apartment in Tiong Bahru and an owner’s sale of a 527 sq ft unit at Dunearn Suites, revealed data from Colliers International.

In 2016, mortgagee sales are expected to be on a stable uptrend, potentially exceeding 270 in number, which is more than what was recorded during the 2008 Global Financial Crisis, noted Grace Ng, Deputy Managing Director at Colliers.

“The rising interest rate will add further strain on borrowers, particularly for those holding multiple properties. However, the numbers are not expected to spike as the employment rate in Singapore remains high, enabling most owners to service their mortgage loans,” she said.