Tag Archives: OCR

Private home prices will not decline in Q3, says Knight Frank

A total of 8,247 new private residential units were launched by developers from January to May this year. Of these, a total of 8,368 units (excluding executive condominiums) were sold, according to Knight Frank’s latest Residential Bulletin.

In Core Central Region (CCR), prices of high-end non-landed properties fell 0.2 percent in Q2 compared to Q1’s increase of 0.6 percent. However, the sales proportion in RCR rose by 14.3 percent in Q3 2012, 22.7 percent in Q4 2012 and 24.9 percent in Q1 2013.

In addition, property prices in Outside Central Region (OCR) set a new benchmark as it rose 0.3 percent in Q2. Notably, private home prices in Singapore rose 0.8 percent quarter-on-quarter and 3.9 percent year-on-year in Q2, or the highest increase since Q4 2011, based on flash estimates from the URA.

Meanwhile, average rents of high-end and mid-market homes declined by 1.8 percent and 0.2 percent to S$5.79 psf and S$5.12 psf per month, respectively, in Q2. Rents of mass market homes slightly inched up by 0.1 percent on average to S$3.34 per sq ft a month.

Sales volume of new sale and resale private residential properties will likely decline by 10 percent to 15 percent in Q3, due to “the existing property cooling measures and the latest MAS ruling on debt servicing framework that was announced on 28 June 2013.”

However, Knight Frank noted that overall prices are not expected “to decline at least for Q3 2013, as long as the housing market is supported by genuine demand from local buyers in particular first-time home buyers with no major existing loans, and should low interest rates continue to prevail in the near term.”

Source – PropertyGuru – 5 Jul 2013

Home buyers flock to suburbs

While the latest cooling measures have dented demand for private properties in the central region, the appetite for suburban homes has remained resilient thanks to an increasing number of launches that are attracting mass market buyers with good locations and relative affordability.

Prices of homes in the Outside Central Region (OCR) surged 3 per cent in the second quarter this year from the previous three months, according to preliminary data from the Urban Redevelopment Authority published yesterday. That was more than double the 1.4 per cent rise in the first quarter and helped drive the overall private residential index up 0.8 per cent, adding to the 0.6 per cent increase previously.

Meanwhile, prices of homes in the Core Central Region fell 0.2 per cent in the quarter in what PropNex real estate agency noted was the first decline in this region since the first quarter of last year, while prices in the Rest of Central Region were up 0.2 per cent.

Many of the buyers in the OCR are first-time home buyers and the Housing and Development Board (HDB) upgraders, who are largely unaffected by the cooling measures introduced in January aimed mainly at curbing investment demand.

SLP International Property Consultants’ Executive Director Nicholas Mak said: “Compared to the central region and the city fringes, the suburban market is driven not so much by investment demand. The cooling measures are not to discourage people from buying their one or only property, or changing their property from HDB to private.”

Recently launched OCR projects that boast attributes such as proximity to MRT stations as well as leisure and dining options, have been popular, driving up prices of these homes.

“This is largely a function of the number of projects with good connectivity that were released by developers in recent months,” said CBRE’s Executive Director for Residential, Mr Joseph Tan. He added that the proportion of new homes sold in the suburban areas accounted for 60 per cent of the total transactions in the last quarter.

Jewel@Buangkok, near Buangkok MRT Station, achieved more than 70 per cent sales during its debut weekend last month, with units priced at an average of S$1,250 psf, according to its developer City Developments. Jade Residences at Lew Lian Vale, close to Serangoon MRT Station and nex shopping mall, sold close to 80 per cent at its April launch at a median price of S$1,592 psf.

Besides attractive locations, some of the new projects are benefiting from a government-backed redevelopment plan to set up regional commercial centres outside the Central Business District.

One of them is J Gateway, the first condominium to be launched near the Jurong East MRT Station in 10 years. All 738 units of the project were snapped up at the weekend at S$1,450 to S$1,650 psf.

Source – Today – 3 Jul 2013