Revival of private resale?

Market watchers have said the private resale property market is seeing a gradual recovery after a drop in transaction volume in the first quarter this year following the introduction of cooling measures in January.

Based on preliminary estimates, some analysts said sales could potentially double in the second quarter compared to the first quarter.

New private homes may continue to pull in the buyers, but some analysts said the resale private property market is also picking up.

Real estate agency PropNex said it has seen resale transaction volume jump 20% in April and May. Enquiries and turnout at viewings of resale units have also improved, largely because buyers believe resale properties offer better value and comparable rental yield.

Mohamed Ismail, CEO of PropNex, said: "Sky Habitat at Bishan... is $1,600 psf (per square foot). Bishan 8, opposite, goes at $1,100. In other words, when you buy a resale unit, you are going to pay lower per square foot... absolute quantum is going to be lower, which means you pay lesser ABSD (additional buyer's stamp duty) to the government."

SLP International Property Consultants estimates that some 3,600 to 4,300 units of both completed and uncompleted units in the resale market could change hands in the second quarter.

This is up from about 2,200 units sold in the previous quarter.

Based on caveats lodged, analysts said that about 3,500 resale units have been transacted from January to early May this year.

About two-thirds of them are "family-sized" units above 100 square metres.

They added that the resale property market is likely to see a sustainable recovery, but there are potential risks as well.

Nicholas Mak, executive director of SLP International Property Consultants, said: "If prices continue to increase and rental yields continue to be compressed, one of the risks is that if interest rates were to increase this year or next year, we could see that this would actually discourage investors, because if rental yield is compressed to such a low level, any increase in interest rates would make that investment property less attractive."

Mr Mak said that currently, the average rental yield for private homes in Singapore hovers between 1.8% and 2.2%.

Some analysts said that prices in the resale market are catching up with prices of units in new launches. For the whole year, they said that prices of resale private properties could go up by as much as 8%, barring any additional cooling measures.

Some analysts added that the total units of resale private homes sold in 2013 should be comparable to the 15,136 transacted last year.

Source: Channel News Asia

What the report did not mention is that as more and more new developments get completed and come on stream from 2014 onwards, rental yields are likely to be further depressed even if prices of new and resale units do not increase significantly.

The wife and I feel that rental yields for both luxury apartments and smaller-sized units in suburban projects that were launched over the past 2 years are especially vulnerable with the expected large influx of new apartments into the market over the next 2 - 3 years.

Have a great weekend, everyone!

SRPI: Resale prices up 1.9% in April

Resale prices of private homes in Singapore rose at a faster rate of 1.9% in April, compared to the previous month's 1.1% price increase.

The Singapore Residential Price Index (SRPI) flash estimates were published by the Institute of Real Estate Studies at the National University of Singapore on Tuesday.

The price increase was led by private homes outside the central region, which rose 2.4% in April, reversing the 0.2% drop in March.

Prices of small units, defined as 506sqft and below, also trended upwards from 0.8% in March to 1.8% last month.

Meanwhile, resale homes in the central region bucked the trend as price growth moderated.

The SRPI for homes in the central area rose 1.3% in April, down from the 2.8% increase seen in March.

Source: Channel News Asia

Visit to Sentosa Cove: Quayside Isle & The Residences at W

The wife and I decided to spend the Vesak Day long-weekend with our son on a "staycation" in Sentosa.

And between visits to the new "Adventure Cove" water park and iFly, we decided to go check out Quayside Isle at Sentosa Cove. This is the latest F&B hotspot across from One degree 15 Marina Club, which primarily serves those rich (and some famous) people that live in their villas and humongous apartments around Sentosa Cove.

 

For those who has not been to Quayside Isle (yet), the area has really blossomed into quite a hip and happening place, littered with many restaurants, bistros and bars. You will find some familiar names like Picotin and Brussels Sprouts as well as other quaint little joints.

 

 

And while dining at the restaurants, one gets the full view of the Marina with its many boats and crafts of various makes and sizes. 

 

The 240-room W Hotel, which opened its doors in September 2012, is located next-door to Quayside Isle.

And situated across the road from Quayside Isle is The Residences at W. This is the 228 units ultra-luxurious condominium project developed by CDL. Other than the usual frills, e.g. concierge service, valet parking, spa facilities etc., a total of 34 berths (that can accommodate yachts of up to 12-metre in length) are available for residents that own boats in addition to their fleets of Lamborghinis and Ferraris.

However, many of the apartments seem to be vacant from what we can see. But at an asking price of between $2,500 - $3,000psf, we are not overly surprised!

The number of vacant apartments became more pronounced as darkness fell. So we reckoned parking (for cars, that is) is not a major issue for residents at the moment.

 

 

 

 

 

Returned condos at its highest!

The number of returned condominiums is at its highest in about a year, according to property research firm Square Foot Research.

Data shows there were 152 units returned in April. This slightly pips the previous high of 150 units returned in May 2012.

It also brings the total number of units returned for the first four months of this year to 415, about 10% higher than the same period in 2012 - there were 378 units returned in the same period last year.

Buyers who choose to return their units have to forfeit 1.25% of the property's price.

Some analysts attribute the increase to the record high private home sales in March, where 2,793 units were sold. The government's property cooling measures, may have also led some buyers to back out of their purchases.

Analysts added that those who made impulse buys could have also contributed to the high figure.
David Poh, senior director at PropNex, said: "Even before you view a property, you know you'll be influenced by salespeople and advertisements. So it's best to do your homework and financial planning, and know what you can afford before viewing a place."

Source: Channel News Asia

 

Sign of the times...?

 

Vesak Day-inspired piece...

Being Vesak Day, the wife and I with our little son in tow were at The Singapore Buddhist Lodge, a rather large temple located at Kim Yam Road, to perform our annual "bathe the Buddha" ritual.

While waiting in line with about 40 people ahead of us, we cannot help but notice the residential development situated next to the temple.

 

The development concerned is Waterford Residence, a 999-year leasehold condominium consisting of 118 units completed in 2011. As you can see in the photo, the condo is built literally next to the temple.

 

While we all know that the 3 main criterias for property purchase (whether for own-stay or investment) is "location, location, location", the wife and I cannot help but wonder if many people will consider beyond the usual "District Number", "Proximity to MRT stations and amenities" and "within 1-km of choice schools".

 

We do not know how many of the occupants within the 118 units at Waterford Residence are Buddhists. However, if you decide to purchase an apartment next/nearby to a temple (and a rather huge and popular one for that matter), you better be mentally prepared for the "inconveniences" that are typically associated with having large number of people moving in and out of the building next-door to yours, and the ocassional frustrations of double-parking along the 2-lane Kim Yam and Martin Roads. This is especially so during the first and fifteenth day of each Lunar Calendar month and major Buddhist festivals.

 

But if you ARE a Buddhist (more so if you are a devout one) however, you will probably find calm and peace from the constant Buddhist chants from next-door. And on every Vesak Day, you will probably be the first in line for "bathing the Buddha"! 

 

 

On the flip side, you must also be prepared to tolerate people using the ledge of the water feature oustide your condo as a resting place while waiting for taxis or transports.

 

 

So the next time you go house hunting, you may want to add "Is the condo located next to a building of religious worship?" to your list of considerations.

 

And just so we are clear, the wife and I are firm believers of religious tolerance and harmony. But we are not big fans of crowds and heavy traffic along our front yard.

 

Now back to "bathing the Buddha"....

 

 

Have a great long weekend everyone!