Govt won’t let property market crash: Shanmugam

Posted on 7 Feb 2016 | Comments Off on Govt won’t let property market crash: Shanmugam

Home Affairs and Law Minister K. Shanmugam during his dialogue session with ERA agents

The government has a “rough idea” on when to revise the property cooling measures, “but that doesn’t mean that we announce it”, said Home Affairs and Law Minister K. Shanmugam.

Speaking to over 2,000 property agents at an ERA Realty conference on Wednesday (3 Feb), the minister said such a decision would be made by the National Development and Finance ministers when they assess the risks to be “less or manageable”.

He was responding to questions on when the Additional Buyer’s Stamp Duty (ABSD) would be removed.

He explained that the measures were put in place by the government to protect Singaporeans, and they have managed to avert the disaster of an overheated property market.

He noted that while some people are worried that the property market could go the other way, the government will ensure this doesn’t happen.

“We cannot have a healthy economy if the property market has crashed. So it’s not in anybody’s interest to see it crash.”

First introduced in December 2011, the ABSD was revised upwards in January 2013 to rein in Singapore’s escalating residential property prices.

Singaporeans are required to pay an ABSD of seven percent for a second property, and 10 percent for a third and subsequent property. However, foreigners are required to pay an ABSD of 15 percent for their first and subsequent property purchases.

Eugene Lim, Key Executive Officer at ERA Realty, believes that the government is watching the market closely and will tweak the property measures in due time.

“The question is when, and many analysts have tried to set a target of how much prices will come down before the government removes the measures, but I do not think that is the case. The government is concerned about Singaporeans over-leveraging themselves as there are many potential buyers waiting on the sidelines.

“Right now, we’re not sure how quickly prices will rebound if one of the measures is removed, and I think that is the litmus test for the government. They don’t want to remove something and cause prices to rebound, derailing the measures.

“They are looking at market stability rather than a target price. When the time comes, they will make the decision to reverse the measures, which will be a quick and easy process.”

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Former Longhouse gets new lease of life

Posted on 4 Feb 2016 | Comments Off on Former Longhouse gets new lease of life

A new mixed-use development located along Upper Thomson Road on the site of the former Longhouse food court could launch as early as this month.

Dubbed 183 Longhaus, the four-storey project will comprise 40 residential apartments, 10 commercial units on the ground floor, facilities such as a Jacuzzi and gymnasium, and basement carparks.

Jonathan Phua, CEO and Executive Director of TEE Land, the developer behind the project, said they wanted to retain some semblance of the original name, due to the site’s colourful history.

The property had been an A&W fast food outlet in the 1980s before being leased to the Kopitiam Group for two years. It was subsequently abandoned for a decade before Longhouse took over in 2000 and converted it into a popular eatery.

In January 2014, TEE Land purchased the approximately 16,960 sq ft site for $45.2 million. There had been plans to acquire an adjacent plot that houses a Shell petrol station in order to amalgamate both sites and build a larger project, but the deal fell through, said Phua.

While the Urban Redevelopment Authority (URA) has yet to approve the launch of the units for sale, the showflat has been open since late January 2016.

It is understood that there have been more than 200 walk-ins from potential buyers, most of whom stay in the Thomson area. Property agency Huttons Asia is marketing the project.

One reason for the strong interest could be the freehold tenure of the property. “This is the last pocket of freehold land in Thomson,” Phua noted.

Meanwhile, the residential component will feature a mix of two- to four-bedroom apartments with sizes ranging from 529 sq ft for a two-bedder to a 1,238 sq ft penthouse.

Phua stated that prices of the apartments have not yet been finalised, but they will not be too high. “The units will be priced competitively within market expectations and at an affordable quantum.”

Early indications are that prices will start from below $900,000 for a two-bedroom unit.

As for the commercial spaces, he revealed that they are in talks with a few potential tenants. “At this point, we haven’t decided whether to sell or lease the units, but we are looking for upmarket tenants.”

Situated within an established landed housing estate, 183 Longhaus is close to Thomson Plaza and popular eateries along Thomson Road. Marymount MRT station, the future Upper Thomson MRT station on the Thomson-East Coast Line and MacRitchie Reservoir are also nearby.

Construction is expected to begin in June and the project is scheduled to obtain TOP in 2019.

Separately, TEE Land is also marketing Hilbre 28, a 999-year leasehold residential development in Kovan. Launched last year, close to 50 percent of the 28 units have already been sold at an average price of $1,219 psf.

Commenting on prospects for the Singapore property market in 2016, Phua admitted that “home seekers have become more cautious and would rather hold on to their money for now”.

Despite this, TEE Land will continue to be on the lookout for good sites to build boutique projects of up to 100 units each, he added.

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