Tag Archives: Hillion Residences

Housing demand remains strong in 1Q2013, despite cooling measures

According to a quarterly report by Knight Frank, overall private home prices grew 0.5% in 1Q2013. March was a record month, with developer sales reaching 2,793 units, mainly from major suburban condo launches such as D’Nest in Pasir Ris, Urban Vista in Tanah Merah, Trilinq in Clementi, Bartley Ridge in Mount Vernon and Hillion Residences in Bukit Panjang. The number of new home sales for 1Q2013 totalled 5,533 units, or about 27% higher than in 4Q2012, according to Knight Frank Research. The property consultant attributes the buying frenzy to fears that another round of property-cooling measures was imminent.

While residential property prices are still growing, the pace is much slower. Price growth was strongest in the suburbs, or Outside Central region, at 1.7%, as at end-1Q2013. Overall private home prices increased 3.4% y-o-y in 1Q2013, the highest y-o-y increase since 2Q2012, according to Knight Frank.

As for residential leasing, the mid-tier segment grew 4.1% to $5.15 psf per month in 1Q2013, showing stronger growth relative to the mass market, which grew just 0.7% to $3.36 psf per month, and the high-end segment, which fell 0.6% to $5.84 psf per month.

Source – TheEdge – 29 Apr 2013


Mixed development projects may not command premium over residential developments

Several mixed development projects are expected to be launched for sale in the coming months.

Some analysts say home buyers and investors should assess their options carefully as mixed development projects may not necessarily command a premium over pure residential developments.

Hillion Residences at Bukit Panjang is one of the mixed development projects in the market.

Over three quarters of the 250 residential units launched have been snapped up last month. There are a total of 546 residential units at Hillion Residences.

Analysts expect demand for homes that are integrated with a retail mall to remain strong.

They say home prices at mixed development projects are usually comparable to condominiums in the vicinity.

Those located near or integrated with the train station or bus interchange could cost slightly more at around S$1,500 per square foot on average.

There are some factors to consider before booking those units.

Chia Siew Chuin, director of research and advisory at Colliers International, said: “If the retail component is sold on a strata-titled basis then therefore it would probably mean that there would be less control in terms of marketing strategy and selection of tenants and these may have a bearing on the tenant mix and the image of the entire development.

“If the retail component is actually owned and held by the developer for investment purposes, then I would say the tenant mix marketing strategy and overall management advertising of the mall will be better managed.”

Analysts say homes in mixed developments do not necessarily command a premium over other units in nearby residential projects.

Nicholas Mak, executive director at SLP International Property Consultants, said: “Typical range of rental yields for apartments in a mixed development would range from 2 to 3 per cent, in fact because of the rising prices, prices have been rising faster than the rental rates, so the rental yields are typically about 2.5, but the rental yield is facing compression down to 2 and some could go down to as low as 1.8%.”

Analysts say home buyers should also note mixed development projects typically do not come with the full facilities of pure residential projects. They may not have facilities like tennis courts, playgrounds or lush greenery. That could have potential impact on rentals and value of homes.

Source : Channel NewsAsia – 26 Apr 2013