Category Archives: Property Market / Real Estate

Private home prices will not decline in Q3, says Knight Frank

Posted on 5 Jul 2013 | Comments Off on Private home prices will not decline in Q3, says Knight Frank

A total of 8,247 new private residential units were launched by developers from January to May this year. Of these, a total of 8,368 units (excluding executive condominiums) were sold, according to Knight Frank’s latest Residential Bulletin.

In Core Central Region (CCR), prices of high-end non-landed properties fell 0.2 percent in Q2 compared to Q1’s increase of 0.6 percent. However, the sales proportion in RCR rose by 14.3 percent in Q3 2012, 22.7 percent in Q4 2012 and 24.9 percent in Q1 2013.

In addition, property prices in Outside Central Region (OCR) set a new benchmark as it rose 0.3 percent in Q2. Notably, private home prices in Singapore rose 0.8 percent quarter-on-quarter and 3.9 percent year-on-year in Q2, or the highest increase since Q4 2011, based on flash estimates from the URA.

Meanwhile, average rents of high-end and mid-market homes declined by 1.8 percent and 0.2 percent to S$5.79 psf and S$5.12 psf per month, respectively, in Q2. Rents of mass market homes slightly inched up by 0.1 percent on average to S$3.34 per sq ft a month.

Sales volume of new sale and resale private residential properties will likely decline by 10 percent to 15 percent in Q3, due to “the existing property cooling measures and the latest MAS ruling on debt servicing framework that was announced on 28 June 2013.”

However, Knight Frank noted that overall prices are not expected “to decline at least for Q3 2013, as long as the housing market is supported by genuine demand from local buyers in particular first-time home buyers with no major existing loans, and should low interest rates continue to prevail in the near term.”

Source – PropertyGuru – 5 Jul 2013

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Buying costs in SIngapore among highest in the world

Posted on 5 Jul 2013 | Comments Off on Buying costs in SIngapore among highest in the world

The costs of buying a property in Singapore are, along with Hong Kong, among the most expensive in the world for non-residents.

New research from Knight Frank looked at the purchase costs associated with buying a new-build residential property in 15 prime property locations around the world.

Hong Kong is the most expensive location to buy a home, once all the associated costs have been factored in. Non-residents can expect to pay 25 percent on top of the purchase price when buying a new-build US$3 million home. The bulk of this consists of stamp duty costs and a property tax levied on foreign non-permanent residents.

In Singapore, buyers pay purchase costs of 19.3 percent. The city-state’s 18 percent rate of stamp duty for non-residents is the highest of all the world cities analysed in the Cost of Buying report, in which analysis compared the purchase costs for non-resident buyers purchasing a new-build property valued at US$3 million. This includes stamp duty, legal costs, transfer fees and agency fees (where these apply for the purchaser).

London and Sydney sit in third and fourth places respectively with buying costs making 7.9 percent and 7.2 percent of the total purchase price in each city respectively. Moscow, where buying costs for non-residents for a US$3 million property amount to just US$100, is the cheapest of the 15 locations surveyed.

Despite being one of the more expensive locations to buy a new-build home, London property remains popular with international investors who are attracted by the U.K.’s political stability, good communications and the city’s top schools.

The research showed that 73 percent of prime central London’s new-build homes in 2012 were bought by overseas buyers, with Singaporeans making up the largest proportion of international purchasers.

In New York there is no stamp duty, but the purchase of a US$3 million new-build condominium will incur a 1 percent mansion tax.

Buying a US$3 million home in Paris is relatively low-cost. There are registration and notary fees to be paid, but it is cheaper to buy a luxury home in the city compared to other traditional locations.

Source – PropertyGuru – 5 Jul 2013

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