Tag Archives: Singapore Real Estate

Shoebox mania subsides, demand up for bigger units

Posted on 2 Jul 2012 | Comments Off on Shoebox mania subsides, demand up for bigger units

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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Sleepy Joo Chiat to transform into boom town

Posted on 2 Jul 2012 | Comments Off on Sleepy Joo Chiat to transform into boom town

The neighbourhood of Joo Chiat will undergo major transformation in the next few years, with new buildings and changing demographics to rejuvenate the sleepy area.

Smaller boutique condos with less than 100 units each are springing up, including the sold out 25-unit Studios@Tembeling at average prices of between S$1,200 psf and S$1,300 psf. The freehold Parc Seabreeze along Joo Chiat Road was also fully sold with its 94 units averaging S$1,300 psf.

Launched in 2010, the 127-unit Coralis condominium is 96 percent sold at an average price of S$1,400 psf. Meanwhile, the Red House Bakery, which has been closed for almost a decade, will be remodelled into a mixed-use project comprising homes and shops.

“They will add a new buzz in lifestyle and dining options,” according to Joseph Tan, Executive Director, Residential at CBRE.

“When One KM opens in mid-2014, it will bring in more brands to suit the tastes of the Y-Generation,” he added.

Projects in Joo Chiat offer freehold tenure and easy access to the city. The developments are also adjacent to various amenities such as CHIJ Katong Convent, Tao Nan School, Parkway Parade and East Coast Park.

But Tan Kok Keong, Head of Research and Consultancy at OrangeTee, added that “there are still people who like (Joo Chiat) for being less crowded”.

Long term, the area’s transformation could make it more appealing and “prices would also remain attractive for a freehold property there”, said Ong Kah Seng, Research Director at R’ST.

Source : CNA – 2012 Jul 2

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