Tag Archives: Credo Real Estate

Executive condos return to the spotlight

Posted on 26 May 2011 | Comments Off on Executive condos return to the spotlight

Executive condos (EC), a hybrid of private and public housing, are now returning to the spotlight.

On 26 May, the government launched the 11th EC site since 2010, a plot in Punggol that can house around 720 homes.

Meanwhile, Chip Eng Seng and NTUC Choice Homes recorded rapid first-day sales for their Belysa project in the Pasir Ris / Elias Road area. Of the 315 units, 147, comprising three- and four-bedroom units, have been sold at around S$670 psf each.

“There is a big market for EC units priced between S$600,000 and S$700,000,” said Joseph Tan, CB Richard Ellis (CBRE) Executive Director (Residential), adding that the price gap between 99-year leasehold suburban private condos and EC projects has widened once again.

Mr. Tan noted that the typical price gap was around 25 to 30 percent when ECs were launched in 1996. This gap narrowed over the years due to weak suburban condo prices, which resulted in dwindling demand for ECs.

However, the sharp recovery of 99-year mass market condo prices has reinforced the demand for ECs.

“Today, 99-year mass market condos which are not near an MRT station could be priced around S$900 to S$950 psf on average, while an EC project in a similar location would be around S$650 to S$700 psf,” Mr. Tan said.

Most analysts expect the monthly household income ceiling for ECs to be increased from S$10,000 to S$12,000 or above, assuming the government proceeds to raise the ceiling for those purchasing new Build-To-Order (BTO) flats from the HDB from S$8,000 to S$10,000, pending a review.

“That will create more realistically-priced alternatives for the sandwich class and siphon off some demand from 99-year mass-market private condos,” said Mr Tan.

Many real estate analysts anticipate top bids for the recent EC site at Punggol Way / Punggol Field to be within the S$300 psf to S$350 psf ppr range and the average selling price to be approximately S$700 psf to S$750 psf.

Ong Teck Hui, Credo Real Estate Executive Director, noted that some EC developers may be more careful about bidding for the site if they are concerned that the income ceiling for EC buyers will be unchanged while that for HDB BTO flats will increase. Consequently, more people will qualify for HDB flats and this will lower demand for ECs.

Source : PropertyGuru – 26 May 2011

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Property market may see major changes

Posted on 24 May 2011 | Comments Off on Property market may see major changes

The property market may see some radical changes in the coming months, according to analysts.

They say the newly sworn-in Cabinet is expected to carry out extensive review of current housing policies.

This may include a review of the government land sales programme and moderating home prices.

However, some analysts say the population must continue to grow, otherwise the housing market will risk an oversupply situation in the next three years.

The new Minister for National Development Khaw Boon Wan has pledged to make the HDB flat a popular icon again, and market watchers are waiting for the government’s thorough review of housing policies, which they expect will take place between six and 12 months.

The review to increase the income ceiling for HDB flats, which started in early May, kicked off the process.

Patrick Liew, chief executive officer, HSR Property Group, said: “Increasing the income ceiling is a two-edged sword … because you are transferring some of the demand from the private sector to the public sector, we need to look at the supply side.

“We need to decrease the supply of land for private residential development and maybe increase the development in the public sector.”

But housing supply remains a hot issue among analysts.

According to estimates, there will be 41,400 public and private housing units to be completed by year 2014.

And analysts forecast that only about 33,000 units will be taken up in the next three years, based on an annual take-up rate of 11,000 units.

Analysts say population growth needs to increase by 1.8 per cent annually to maintain a healthy take-up rate.

For now, market watchers are not expecting new immigration policies soon, as they were tightened just over a year ago.

They warn that an oversupply in housing may limit property price growth.

But they are confident that future housing policies will prevent a large price correction as well.

Liang Thow Ming, head of residential services, Credo Real Estate, said: “I don’t think the government is working towards a huge correction. A huge correction is not in anybody’s favour, especially in a situation like Singapore, where the majority of us are house owners.

“A huge correction will impoverish a good part of Singapore and I don’t think the government wants to see that happening.”

Market watchers say they are hoping for more details about foreign workers in Singapore, as they say this will help them monitor the impact on property demand.

Source : CNA – 23 May 2011

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Posted in HDB

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