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Shoebox mania subsides, demand up for bigger units

Posted on 2 Jul 2012 | Comments Off

With initial signs that the shoebox craze may be subsiding, demand for larger non-landed homes appears to be on the upswing with upgraders leading the way.

Data from property consultancy CBRE shows that the median size of all new non-landed homes sold in Q2 2012 rose to 79 sq m, up from 65 sq m in the previous quarter.

At the same time, the market share of shoebox units measuring 50 sq m or less fell to 23 percent from a high of 28 percent. However, this figure is still more than last year’s 20 percent.

Experts noted that cooling measures such as the seller’s stamp duty (SSD) and additional buyer’s stamp duty (ABSD) could have contributed to the decline in investor demand for shoebox units. Such properties have been very popular due to their affordability, with most units priced below S$1 million.

Despite the renewed interest for bigger units at some executive condominiums (ECs) and private suburban projects, Joseph Tan, Executive Director (Residential) at CBRE, explained that “interest in small units will always be there, especially if the current trend of reducing average family size persists and homeowners continue to look for affordable smaller apartments”.

“It also depends on developers’ supply and pricing strategy; if prices are kept at an affordable quantum, investors will continue to view this as an attractive form of investment in view of the prevailing financial crisis,” he added.

Source : PropertyGuru – 2012 Jul 2

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Posted in Property Market / Real Estate

Tagged ABSD, additional buyer’s stamp duty, Seller’s stamp duty, shoebox apartment, shoebox unit, Singapore Property Market, Singapore Real Estate, SSD

Property auctions market sputters along

Posted on 29 Jun 2012 | Comments Off

Singapore’s property auction market saw a subdued start to the year due to the effects of the additional buyer’s stamp duty (ABSD).

Of the 198 properties put up for auction in H12012, 191 were listed by owners while seven were put up by mortgagees.

“This continues the trend of declining mortgagee listings since Year 2007, which reflects the improved financial position of mortgagors on the back of the continued low interest rate and high liquidity environment, as well as a healthy rental market,” according to Colliers International.

But from the total number of listed properties, only 10 were sold achieving a total sale value of S$34.3 million, the second lowest figure since the 2008 global financial crisis.

The value is 50.5 percent below the S$69.25 million recorded from 33 properties auctioned in the same period last year.

Nevertheless, the total sale value remained 30.1 percent higher than the S$26.37 million seen in H22011.

“While there is a substantial 30.1 percent increase in the total sale value in H12012, it is largely attributed to the sale of a petrol station along Jalan Ahmad Ibrahim, which was sold for S$12.73 million,“ said Grace Ng, Deputy Managing Director at Colliers International.

Meanwhile, Jones Lang LaSalle (JLL) reported that the value proportion of commercial and industrial properties auctioned in H12012 to date saw a new three-year high of 78 percent compared to 32 percent in H12010.

“This has come off the back of a sustained, and some may feel worrying, “herd-mentality” shift in investor interest toward the non-residential sector,” noted JLL.

However, the total value of residential properties sold during auctions stood at 22 percent in H12012, down from 28 percent in H12011 and 61 percent in H12010.

In the near future, the attractiveness of the non-residential sector could be reduced “given the elevated level of policy risk and clustering of investors into the sector”.

Source : PropertyGuru – 2012 Jun 28