Category Archives: Rental / Lease

Singapore price index falls for the first time since Q2 2008

Posted on 15 May 2012 | Comments Off on Singapore price index falls for the first time since Q2 2008

After five rounds of cooling measures by the government, the private residential market finally eased 0.1 per cent in the first quarter to reach 206.0 percentage points, according to data from the Urban Redevelopment Authority (URA).

Properties in the Core Central Region (CCR) and Rest of Central Region (RCR) led in the price fall, both declining by 0.6 per cent, as the Additional Buyers’ Stamp Duty (ABSD) caused foreign investors to retreat from prime areas.

CBRE said the lack of new launches and softer prices of resale properties in these two market segments caused both price index to fall.

Meanwhile, those in the Outside Central Region (OCR) rose by 1.1 per cent – a sign that mass market condos are leading demand for this quarter.

“The OCR index was supported by a 1.4 per cent increase in uncompleted homes and a 0.6 per cent increase in completed homes,” said Petra Blazkova, head of research, Singapore and South East Asia, Asia Pacific Research, CBRE.

Less demand in the rental market
The rental index showed a marginal increase of 0.3 per cent quarter-on-quarter, following a 0.4 per cent rise in the fourth quarter.

While rents for apartments/condominiums and terrace houses rose marginally by 0.5 per cent and 0.8 per cent respectively, detached houses declined by 2.5 per cent.

The quarter also witnessed 7,092 tenancy deals contracted – some 31 per cent fewer than the 10, 249 leases done in the fourth quarter.

“This is also the lowest number of deals done in a quarter since Q1 08, signalling a weaker expatriate market in the beginning of the year,” said Blazkova.

Strong new home sales
The primary market continued to drive home sales with a strong buying momentum recorded.

This has resulted in the highest number of 6,526 new private homes ever sold in the first quarter of 2012.

Likewise, the 1, 557 Executive Condos (ECs) sold in the first quarter was also the highest since the return of ECs in the fourth quarter of 2010.

“The record sales volume could be attributed to high liquidity and low mortgage interest rates as well as the record number of projects launched in the first quarter of 2012,” said Blazkova.

A record supply was also recorded this quarter with 6. 903 private homes and 1,864 ECs launched in the quarter.

“Most of the projects were from the Government Land Sales programme in 2011, and developers have shortened the turnaround time to launch them,” said Blazkova.

Mass market takes the lead
The mass market segment saw the highest take-up of 5, 275 units (81 per cent) of the 6,526 new homes sold.

Meanwhile, 1,113 units (17 per cent) were from RCR and 138 units (2 per cent) were from CCR.

“Going forward, we expect home prices to continue to ease under the pressure of the property measures. Developers will continue to focus on selling mass-market homes and ECs,” said Blazkova.

According to CBRE, new mass-market launches taking place in the second quarter include One Canberra EC, Water Colours EC, Seahill and Sea Esta.

Source: PropertyReport – 15 May 2012

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Property owners, managing agents must rely on contract

Posted on 15 May 2012 | Comments Off on Property owners, managing agents must rely on contract

The working relationship between property owners and their managing agents is ultimately based on a contract, Minister for National Development Khaw Boon Wan said in a written response to a parliamentary question from Aljunied GRC MP Sylvia Lim on Monday.

Ms Lim had asked how the government safeguards the interests of consumers of property managing agent services.

Mr Khaw said most consumers of residential property managing agent services live in HDB estates.

In such instances, the town councils ensure agents do their job properly and safeguard the residents’ interests.

For those in strata housing, property owners have a choice in hiring their own maintenance teams, or engaging the services of a third-party managing agent based on their expected service level and budget.

Mr Khaw said the industry is well developed with more than 100 companies offering such services, giving property owners an adequate pool to choose from.

Ms Lim had also asked why the Singapore Standard on the performance of managing agents for strata residential properties was withdrawn.

But Mr Khaw said the Singapore Standard was developed to help raise the professionalism of managing agents for strata residential properties.

He said the emphasis was on the contractual obligation between a strata residential property management corporation and the managing agent, not on the managing agent’s work performance.

In April 2011, the Association of Property and Facility Managers (APFM) and the Singapore Institute of Surveyors and Valuers (SISV) jointly worked out a similar agreement for the appointment of managing agents.

The standard was withdrawn with the consensus of the industry.

Source: CNA – 15 May 2012

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