Tag Archives: Real estate pricing

Owners of private non-landed homes profit from resales

Posted on 30 Apr 2013 | Comments Off on Owners of private non-landed homes profit from resales

Owners of non-landed private homes earned a gross profit of S$107 million from quick resales over the five quarters of Q1 2012 to Q1 2013, according to a report from OrangeTee.

It stated that high home prices contributed largely to the profit in this segment, adding that the overall private residential price index “rebounded very strongly”, and is now 60 percent higher compared to levels in 2009.

“In the current bull run, newly completed homes that were resold upon receipt of Temporary Occupation Permit (TOP) yielded good returns for purchasers.”

According to the Urban Redevelopment Authority (URA) and Building and Construction Authority (BCA), 103 projects obtained TOP from Q1 2012 to Q1 2013, of which 68 recorded 348 transactions in the same quarter upon completion.

Sellers of newly completed units saw an average return of 33 percent. The most profitable non-landed private homes were in the Outside Central Region (OCR), where average profit stood at 41 percent compared to 31 percent in the Rest of Central Region (RCR) and 25 percent in the Core Central Region (CCR).

Units measuring 50 sq m or below (shoebox apartments) in all three regions were less profitable than larger units.

“Contrary to common belief, profitability of shoebox units underperformed the general market across all segments. Average profitability per unit was S$132,000 or 25 percent in the last five quarters, lower than that of the overall market,” noted OrangeTee.

Moving forward, the non-landed private housing market is expected to remain strong due to low interest rates, sustained foreign capital inflow and “record land prices” in recent Government Land Sales (GLS).

Source – PropertyGuru – 30 Apr 2013

Comments Off on Owners of private non-landed homes profit from resales

Posted in Property Market / Real Estate

Tagged , , , , , , , , , , , , ,

Resale private home prices rebound 0.9 per cent in March

Posted on 30 Apr 2013 | Comments Off on Resale private home prices rebound 0.9 per cent in March

Resale prices of completed non-landed private homes rose 0.9 per cent in March from February after a revised 1.2 per cent decline in the previous month, led by a rebound in the central region, according to Singapore Residential Price Index (SRPI) flash estimates released on Monday.

The SRPI, compiled by the National University of Singapore’s Institute of Real Estate Studies, showed that home prices in the central region rose 2.2 per cent in March from the previous month, after a 3.7 per cent decline in February.

Prices of homes in the non-central region eased 0.1 per cent after a 1 per cent rise in the previous month. Prices of small units, defined as homes with areas below 506 sq ft, were up 0.7 per cent after a 0.9 per cent fall in February, the SRPI data showed.

Mr Eugene Lim, Key Executive Officer at ERA Realty Network, said the prices of central region condominiums had increased due to limited supply, noting also that there had been very few sites released under the Government Land Sales programme in this area.

He added that January’s cooling measures hit prices for the non-central region, as many investors adopted a wait-and-see approach.

“There was a huge launch volume in non-central areas in March after developers monitored the market. Launches continued to be focused in the non-central region where developers introduced new 99-year leasehold projects built on GLS sites released from the increased supply of GLS programme,” he said.

Home buying mainly took place in the Outside Central Region, where the most units were launched and buyers could afford to be more picky, he added.

Looking ahead, Mr Lim expects sales volume to decline moderately and prices to stabilise for the next few quarters as a result of the cooling measures and increased supply, with some 16,742 private homes projected to receive the Temporary Occupation Permit this year.

Source : Today – 29Apr 2013

Comments Off on Resale private home prices rebound 0.9 per cent in March

Posted in Property Market / Real Estate

Tagged , , , , ,