Malaysians top foreign private-property buyers here

Malaysians made up 27 per cent of the total number of foreign buyers in the second quarter. -myp 

Malaysians have replaced the Chinese as the largest group of foreign private-property buyers in Singapore, the latest data showed as foreign home purchases saw a strong 73 per cent rebound of 611 units in the second quarter of this year from the previous quarter.
However, a report released by property firm DTZ yesterday said the number of transactions is still at a low, due to the imposition of the 10 per cent additional buyer's stamp duty (ABSD) by the Government.
Foreign buying made up only about 7 per cent of the total private sales in the second quarter, up slightly from 5 per cent recorded in the first three months of this year.
Malaysians made up 27 per cent of the total number of foreign buyers in the second quarter, purchasing 520 units.
The number of transactions by Malaysian buyers rose by about 30 per cent quarter-on-quarter.
Home purchases by Chinese buyers, comparatively, rose by only 18 per cent to 369 units. The proportion of Chinese buyers also fell for a second consecutive quarter to make up just 19 per cent of the total number of foreign buyers - the lowest since the third quarter of 2010.
"Going forward, we expect Malaysians to dominate again as Chinese buyers retreat due to the economic slowdown in their country, the termination of the Financial Investor Scheme, and restrictions against foreigners buying strata landed homes," said DTZ.
As a whole, private-home buyers were observed to have turned more to the resale and sub-sale markets for value buys in the second quarter, instead of going for new properties.
Property transactions in the two secondary private markets jumped a strong 66 per cent quarter-on-quarter to 4,409 units, DTZ noted in its report.
This is due to fewer new project launches in the outer parts of the core central region of Singapore in the second quarter.



Prices of many such new developments, such as Sky Habitat and Katong Regency, also hit new benchmarks. It led to a widening of the property price difference in the primary and secondary markets, resulting in resale and sub-sale units gaining more popularity.
An increase in buying activity was also observed among foreign nationals such as Americans, Filipinos and Japanese.
The Americans, for example, purchased some 58 private units in the second quarter, almost three times more, compared to the previous quarter.
It was also higher than the quarterly average of 32 homes they purchased last year.
DTZ said that the higher number of transactions by the Americans could be due to them having the same ABSD treatment as Singaporeans, while enjoying the same incentives given by developers.
Developers have turned to giving out rental guarantees and furniture vouchers in recent months to attract more buyers.
This could result in foreign buyers paying less, compared to pre-ABSD days, DTZ noted.
Mr Lee Sze Teck, senior manager for training, research and consultancy at real-estate firm Denis Wee Group, agreed that American buyers appeared to have benefited from the exemption from paying ABSD.
"But this level of buying interest is from far off the record 140 transactions in Q2 2007," he said.
"The number of transactions by citizens from Switzerland has returned to pre-ABSD levels. Purchases from the other three countries (Norway, Iceland and Liechtenstein) exempted from ABSD were insignificant.
"Singapore is still one of the best places in the region to invest in property because of its clarity in ownership of properties, low-tax environment, absence of capital-gain tax, low interest rate and stable government," Mr Lee said.

reicow@sph.com.sg 

Reico Wong
Wed, Aug 29, 2012
my paper

Source: AsiaOne

Foreign buyers returning to S'pore property

Proportion of foreign buying stable and looks to be rising: HSR 

SINGAPORE - Foreign interest in non-landed private residential properties is returning, following a slump in interest after the Additional Buyer's Stamp Duty (ABSD) was introduced in December last year.
Looking at the four largest groups of foreign purchasers by nationality, Malaysians made up the largest portion of foreign purchasers in Q2, at 6.3 per cent, followed by Indonesians at 4.7 per cent, Mainland Chinese at 4.4 per cent, and Indian nationals, at 3.0 per cent.
Indonesians accounted for the biggest jump in transactions, from 247 in Q1 to 391 in Q2, followed closely by Malaysians from 398 in Q1 to 521 transactions in Q2.
Mainland Chinese transactions rose to 365 in Q2 from 311 the previous quarter while transactions done by Indian nationals rose from 173 in Q1 to 252 in Q2.
For the period from July to Aug 23, mainland Chinese demand perked up, accounting for 6.2 per cent of foreign purchases, just behind that of Malaysians at 7 per cent. This was followed by buyers from India and Indonesia, which constituted 4.2 and 3.7 per cent respectively.
Malaysians were involved in 120 transactions between July and Aug 23, followed by mainland Chinese (107), Indian nationals (72), and Indonesians (63).
Said Alan Cheong, Savills Singapore research head: "(The number of) Mainland Chinese buyers fell the most in Q1. Indonesian buying also fell sharply in Q1. However, Malaysian buyers have been a stable feature in the marketplace."
A total of 8,311 transactions (including sales to Singaporeans) were clocked in Q2, a 37.2 per cent jump over the 6,059 transactions seen the previous quarter.
The percentage of foreign buying in Q1 and Q2 was 22.96 per cent and 23.58 per cent respectively. Based on data from July to Aug 23, this figure rises to 27.06 per cent.
"It appears that the market for foreign buyers has stabilised in Q2 2012 and is beginning to pick up again from data obtained in Jul - Aug 23. We believe that foreign demand is returning," added Mr Cheong.
Chinese buyers, in particular, continue to show much potential for Singapore property, noted HSR in a separate report.
Between January and August 2012, non-landed residential properties in districts 19 (Serangoon Gardens, Hougang, Punggol), 18 (Tampines, Pasir Ris), 12 (Balestier, Toa Payoh & Serangoon) and 23 (Hillview, Dairy Farm, Bukit Panjang & Choa Chu Kang) were popular with Chinese buyers.
That said, HSR's Elaine Chow, associate director of research and consultancy, expects a continued decline in the number of Chinese buyers in the near-to-medium term.
"The Chinese government's move to reduce interest rates twice since June has spurred buying especially among genuine home buyers. This has resulted in an increase in new home prices in 49 out of 70 cities in July 2012 (according to the National Bureau of Statistics)," she said.
"With the global economic outlook remaining cloudy and further upside to residential prices at home, Chinese investors will likely be turning their attention back to home ground (including Hong Kong)."

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Tue, Aug 28, 2012
The Business Times

Source: AsiaOne

Resale private home sales edge out new launches

Recent data from the Urban Redevelopment Authority (URA) has shown that more home buyers are drawn to the private resale market than new homes. 

New home sales or developer sales fell 17 percent in Q2 2012 to just 5,402 units from 6,526 in Q1.

Last quarter, new home sales accounted for just 57 percent of total sales as compared to 71 percent in Q1. At the same time, sales of uncompleted homes dropped seven percentage points to 87 percent in Q2 from 94 percent previously.

On the other hand, resale home sales rose 58 percent to hit 3,487 in Q2 and accounted for 37 percent of total sales, an improvement from 24 percent in Q1.

The shift in focus from new to resale homes could be attributed to a number of factors, such as price, size and location.

Png Poh Soon, Head of Research at Knight Frank Singapore, said that the rise in demand for resale homes was buoyed by “fast rising prices of new sale uncompleted properties across the island”.

As new launches set price benchmarks, home buyers choose to purchase resale homes that offer more location choices, readiness for immediate occupation and better value for money, noted Png.

Even with similar location, tenure period and size, resale homes less than five years old “generally command lower prices compared to new sale properties (in terms of dollar psf)”. 

Png said that the average price premium ($psf) this year was around 10 percent. For instance, new homes ranging from 100 to 150 sq m in District 16 were sold at a four percent premium compared to resale homes less than five years old. In District 2, new homes between 50 to 100 sq m changed hands at a 20 percent premium compared to resale properties less than five years old.

Another factor to consider is size as developers usually build smaller units in new projects. Hence, families that need more space opt for resale homes that offer bigger sized units but at lower prices, Png noted.

In 1H2012, properties transacted in the resale market had an average size of 129 sq m as compared to 81 sq m for new homes.

Moreover, many buyers tend to go for older resale properties and those located in prime areas. The Core Central Region (CCR) is especially popular due to the narrowing price gap between mass market new launches and resale luxury homes.

By Romesh Navaratnarajah:

Source: PropertyGuru

Bungalow market astir with several changing hands

More Singaporeans are buying for their own occupation. -BT 

SINGAPORE - Several big-ticket bungalow deals have been sealed recently including a few in Good Class Bungalow Areas (GCBAs).
A 999-year leasehold bungalow at Yarwood Avenue in the Rifle Range/ Dunearn roads area has changed hands for $19.5 million or $1,198 per square foot (psf) on land area of 16,278 sq ft. On site is a two-storey bungalow spruced up a couple of years ago.
The property, with a built-up area of about 9,500 sq ft, has three large bedrooms and a swimming pool.
It is being sold by a Singaporean who is involved in businesses in Malaysia.
She paid $15.8 million for the bungalow in May 2010. The buyers - a Singaporean couple - are understood to be planning to live in the bungalow.
Market watchers say this is the third property to be transacted since last year at this Yarwood Avenue cul de sac.
A bigger bungalow on land area of 69,546 sq ft was sold in April last year for $59.5 million (or $856 psf) while another changed hands at slightly above $15.6 million or $968 psf in March 2011.
At Oriole Crescent, near Greenwood Avenue, a bungalow has fetched $18.2 million - or $1,726 psf on freehold land area of 10,546 sq ft.
On site is a two-storey house said to be over 20 years old. It is leased out at a monthly rental of $18,000 until end-July 2014. RealStar Premier Group brokered both the Oriole Crescent and Yarwood deals.
Talk in the market is that an option was granted recently for a bungalow on Camden Park. The price is understood to be $25 million, or $1,659 psf on land area of 15,070 sq ft.
The property, said to have been rebuilt about four years ago, features a pool and gym in addition to six bedrooms.
Last month, a seasoned bungalow investor sold his GCB at Binjai Park for $32.9 million or $1,471 psf.
On the 22,360 sq ft site is a new two-storey property, completed late last year, boasting seven en-suite bedrooms.
The built-up area is about 17,000 sq ft. Savills and DTZ are said to have brokered the transaction.
A stone's throw away from Farrer Road MRT Station, a small freehold bungalow at Woollerton Drive was transacted a few weeks ago at nearly $12.6 million or $1,570 psf on land area of 7,987 sq ft. It has five bedrooms.
Typically GCBs have a minimum land area of 1,400 square metres (15,069 sq ft).
However, when GCB Areas were gazetted in 1980, they included some slightly smaller existing sites.
These are still considered GCBs as they would be bound by the other GCB planning rules if they were to be redeveloped.
For instance, such plots cannot be further sub-divided and they cannot be built more than two storeys high (plus an attic and a basement).
Outside GCB Areas, other recent bungalow deals include a two-storey property at Trevose Crescent, in the Dunearn/Whitley roads vicinity, which changed hands at $13.7 million or $1,788 psf on land area of 7,662 sq ft.
The property, completed six years ago, has four bedrooms and a roof terrace. The basement houses a home theatre and pool room.
Savills Singapore director of prestige homes Samuel Eyo notes that GCB buyers these days are mostly Singaporeans seeking a property for their own occupation.
Agreeing, RealStar Premier managing director William Wong adds that buyers are more prepared to make a commitment while sellers have become more realistic on pricing. "Now at least for quite a number of GCBs in our database, pricing is quite reasonable; the price gap has narrowed compared with six months ago. I expect more transactions in the next few months."
The number of bungalow deals in GCB Areas doubled from nine in Q1 this year to 18 in Q2, with the value of transactions rising from $224 million to $359 million, according to CBRE's caveats analysis last month.
Jones Lang LaSalle will soon launch for sale by tender a bungalow at Cassia Drive - near Eng Neo Avenue/Linden Drive, in the Raffles Park GCB Area.
Pricing expectation is thought to be around $16 million, or $1,445 psf on 11,073 sq ft land area.
Its owner is believed to have purchased the single-storey house on site in the early 1960s for under $100,000.
JLL is also marketing via tender a freehold property on land of 10,712 sq ft at Goldhill Place, which is not in a GCB Area.
On site is an old bungalow.
The plot, which is zoned for two-storey mixed landed development, can be subdivided. Pricing is estimated at $1,600 psf or $17.1 million.

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Kalpana Rashiwala 

Fri, Aug 24, 2012
The Business Times

Source: AsiaOne

Sales in luxury property market rebound

But growing number of unsold homes points to further price correction. 

Even as investors stream back into the luxury property market, causing sales activity to almost double in the second quarter, further price correction may be in the offing given the growing number of unsold homes.


Data compiled by Savills Research & Consultancy showed that there were as many as 4,000 luxury condominiums completed over the past year in Orchard Road, accounting for about 7 per cent of total non-landed stock in the luxury market.
Of this, 16 per cent (over 600 units) remain unsold, bringing total unsold stock in the prime segment to 12,855 units.
This comprised 731 completed units and 12,124 uncompleted ones, half of which are ready to be launched.
Prices for non-landed new sales dipped 5 per cent quarter-on-quarter to $2,374 per square foot in Q1 2012, and slid further to $2,230 psf in Q2.
Reflecting the downtrend in prices, 19 units at Paterson Suites were purchased at an average price of $2,619 psf this year - 10 per cent below last year's $2,915 psf and 15 per cent off the peak price in 2007.
A total of 12 units at Orchard View changed hands at an average price of $2,604 psf, down 21 per cent from 2010's peak price, while four transactions at St Regis Residences posted the largest drop of 28 per cent from the peak to $2,228 psf in H1 2012.
Savills said the spike in sales activity was observed across all market segments, with new sales up 246 per cent quarter-on-quarter at 235 units in Q2, sub-sales rising 34 per cent to 94 units, and resales increasing 86 per cent over the previous quarter to 585 units.
This pushed the number of units sold to 914, compared with a three-year low of 453 non-landed units sold in Q1, following the eurozone debt crisis and imposition of the additional buyer's stamp duty (ABSD) in December last year.
Specifically, demand for ultra-luxury homes (priced above $3,000 psf) almost trebled from 11 units in Q3 2011 to 31 units in Q2 2012.
These transactions include two units at Scotts Square sold for $4,566 psf in May and another for $4,803 psf in June; a 1,808 sq ft unit on the 52nd storey of The Orchard Residences for $4,399 psf; and two units at Boulevard Vue which sold for $4,326 psf and $3,934 psf.
A newly launched project, Twentyone Angullia Park, also drew keen market interest, with five sales completed over the last three months at prices of between $3,950 and $4,338 psf.
"While these transactions do not mark new highs, they indicate that there is still a reasonable level of demand for luxury homes given the present cautionary mood," noted Savills.
With a looming pipeline of 19,056 units to be completed in the next few years, any price cuts seen in the sector could revive demand and possibly result in sales hitting 1,000 units per quarter until year-end, Savills said.
"More than seven major developments are slated to be launched within the next six months. We could expect moderate take-up of up to 30 per cent in the initial launch period," it added.

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Mindy Tan
Thu, Aug 23, 2012
The Business Times

Source: AsiaOne

Luxury-home prices may have peaked

This is due to the euro- zone debt crisis and a surge in home completions here. 

SINGAPORE - The high-end property market in Singapore may have reached a peak, with prices of luxury homes - in districts one, two, four, nine, 10 and 11, and priced around $2,000 per sq ft - down by about 5 per cent since the start of the year, due to the euro- zone debt crisis and a surge in home completions here.
Real-estate firm Savills Singapore said current luxury-home prices have also fallen between 10 and 30 per cent from their peak during the 2007 property boom.
Savills said yesterday that bargain hunters hoping to snag a good buy may find some ripe pickings, with property launches back in full swing after a lull last year and the increased number of unsold units likely to exert downward pressure on prices.
Mr Alan Chong, head of research at Savills, told my paper: "With supply chasing demand, property prices for luxury homes could see a drop of another 5 per cent within the next six months, although developers of new project launches will have more pricing power compared to those of...units already launched, or existing ones in the market which are being flipped."
Eight major projects, yielding about 1,200 new units, have been launched since the start of the year.
These include the 510-unit luxury apart- ment V on Shenton, located in the Central Business District; the 180-unit freehold high-rise 26 Newton; and the 132-unit mixed development Eon Shenton.
While the take-up rate for some of these projects was relatively healthy, the increase in supply - amid a market already hit by lacklustre demand - means increased competition among newly completed luxury developments, many of which still have a sizeable amount of units unsold, according to Savills.
The total number of unsold luxury homes in prime districts stands at about 12,855 units. Of this, 12,124 units have yet to be completed, but half of them are ready to be launched. At least another seven major projects are slated to be launched in the next six months.
One factor that buyers should bear in mind is the two-year post-completion deadline for developments: Developers would have to pay an additional charge - a percentage of their land price - if they were to extend their sale period beyond those two years, pro-rated according to the number of units they are left with.
This could motivate developers, especially those with shallow pockets, to mark down prices of the remaining units.
"Together with a looming pipeline supply of 19,056 units to be completed in the next few years, any price cuts could trigger a resumption in demand, possibly resulting in sales hitting 1,000 units per quarter until the end of the year," said Savills.
reicow@sph.com.sg

Reico Wong
Thu, Aug 23, 2012
my paper

Source: AsiaOne 

SENGKANG TRANSACTED HDB UNITS IN JULY 2012

SOLD BY US (Source: ERA)

4 ROOM

Blk	Road	Sales Price
105	RIVERVALE WALK	$418K	SOLD
106	RIVERVALE WALK	$425K	SOLD
132	RIVERVALE STREET	$440K	SOLD
197	RIVERVALE DRIVE	$425K	SOLD
185B	RIVERVALE CRESCENT	$435K	SOLD
226A	COMPASSVALE WALK	$485K	SOLD
261B	SENGKANG EAST WAY	$475K	SOLD
265B	COMPASSVALE LINK	$595K	SOLD
266C	COMPASSVALE BOW	$548K	SOLD
273A	COMPASSVALE LINK	$600K	SOLD
275A	COMPASSVALE LINK	$580K	SOLD
314B	ANCHORVALE LINK	$440K	SOLD

5 ROOM

Blk	Road	Sales Price
105	RIVERVALE WALK	$525K	SOLD
141	RIVERVALE STREET	$504K	SOLD
229	COMPASSVALE WALK	$500K	SOLD
116A	RIVERVALE DRIVE	$485K	SOLD
120B	RIVERVALE DRIVE	$525K	SOLD
200D	SENGKANG EAST ROAD	$553K	SOLD
201D	COMPASSVALE DRIVE	$510K	SOLD
203C	COMPASSVALE ROAD	$538K	SOLD
204C	COMPASSVALE DRIVE	$525K	SOLD
258B	COMPASSVALE ROAD	$575K	SOLD
258D	COMPASSVALE ROAD	$523K	SOLD
291A	COMPASSVALE STREET	$495K	SOLD
292B	COMPASSVALE STREET	$498K	SOLD
296A	COMPASSVALE CRESCENT	$498K	SOLD
298A	COMPASSVALE STREET	$505K	SOLD
298D	COMPASSVALE STREET	$481K	SOLD
301B	ANCHORVALE DRIVE	$538K	SOLD
301D	ANCHORVALE DRIVE	$533K	SOLD
305C	ANCHORVALE LINK	$501K	SOLD
307C	ANCHORVALE ROAD	$523K	SOLD
308C	ANCHORVALE ROAD	$540K	SOLD
319A	ANCHORVALE DRIVE	$550K	SOLD
319B	ANCHORVALE DRIVE	$549K	SOLD

EA

Blk	Road	Sales Price
298A	COMPASSVALE STREET	$593K	SOLD
298C	COMPASSVALE STREET	$575K	SOLD
298D	COMPASSVALE STREET	$602K	SOLD
302D	ANCHORVALE LINK	$602K	SOLD

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HDB to offer at least 20,000 new flats in 2013

Mr Khaw assured Singaporeans that almost all first-timers will get the chance to select a flat when they apply for one, especially in non-mature estates. -AsiaOne 


Minister for National Development Khaw Boon Wan said Monday that he has told the Housing Board (HDB) to build at least 20,000 new flats next year.
Mr Khaw wrote on the Ministry for National Development (MND) blog that this is to help more Singaporeans own flats, as well as to stabilise the housing market.
"This will give Singaporeans many options as they make their flat purchases prudently and wisely," he said.
The latest announcement comes on top of the 50,000 flats launched over 2011 and 2012.
Mr Khaw also assured Singaporeans that almost all first-timers will get the chance to select a flat when they apply for one, especially in non-mature estates.
This is due to first-timer application rates remaining below 2.0.
Second-timers will also have higher chances of getting new flats as the application rates have fallen slightly.
There will be 11,000 units for people to choose over two upcoming launches - 8,000 new flats will be launched by the end of this year, while 3,000 flats will be launched in September.

paullim@sph.com.sg


Source: AsiaOne Tue, Aug 07, 2012

Khaw: 11,000 new flats over next two launches

Mr Khaw has told the Housing Board to build at least 20,000 new flats next year. -myp 

National Development Minister Khaw Boon Wan said there will be 11,000 new flats for people to choose from, over the next two launches in September and at the end of the year.
In a blog post yesterday, Mr Khaw also said that, while plans are still being finalised, he has told the Housing Board to build at least 20,000 new flats next year.

Tue, Aug 07, 2012
my paper

Source: AisaOne

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Less Chinese nationals buying homes in Singapore

The Chinese fell to second place behind the Indonesians, buying 259 homes in the first six months compared to 372 homes bought by the latter. -AsiaOne 

The number of Chinese nationals buying homes in Singapore has fallen.
The Straits Times reported Monday that hefty new stamp duty and a slowing Chinese economy are deterring them from buying property here.
Caveats lodged with the Urban Redevelopment Authority said the Chinese fell to second place behind the Indonesians, buying 259 homes in the first six months compared to 372 homes bought by the latter.
Demand for homes here by foreigners have been dampened by the additional buyer's stamp duty - overseas buyers accounted for just seven per cent of the deals in the first half of the year, compared to 20 per cent in the same period last year.
According to the English daily, Chinese buyers bought 799 homes last year while Indonesians bought 614 units.
These figures refer to landed and non-landed sales, including new and resale homes. Executive condominiums are excluded.
Landed sales mean homes sold at Sentosa Cove. Foreigners are not allowed to buy landed property elsewhere.
Industry experts said Chinese buyers may now turn to the non-residential sector to avoid paying the 10 per cent additional buyer's stamp duty.


paullim@sph.com.sg


Source: AsiaOne - Mon, Aug 06, 2012

Seller Stamp Duty

In February 2010, the Government imposed a seller’s stamp duty (SSD) on sellers who buy (or acquire) residential properties on or after 20 February 2010 and sell (or disposed of) them within one year of acquisition.

The amount of SSD is computed based on the same rates as the buyer's stamp duty. 

On 30 Aug 2010, the Government further announced that SSD will be payable on residential properties which are acquired (or purchased) on or after 30 Aug 2010 and disposed of (or sold) within 3 years of acquisition. The amount of SSD for the holding period of 1 year is computed based on the same rates as the buyer's stamp duty, but will be reduced  to 2/3 and 1/3 of the amount of buyer's stamp duty for holding period of 2 years and 3 years respectively.

On 13 January 2011, the Government announced the extension of the holding period for imposition of SSD on residential properties from 3 years to 4 years based on new rates. The new SSD rates will be imposed on residential properties which are acquired (or purchased) on or after 14 January 2011 and disposed of (or sold) within 4 years of acquisition, as follows :

• Holding period of 1 year : 16% of price or market value, whichever is higher
• Holding period of 2 years : 12% of price or market value, whichever is higher
• Holding period of 3 years : 8% of price or market value, whichever is higher
• Holding period of 4 years : 4% of price or market value, whichever is higher

Properties acquired before 20 Feb 2010 will not be subject to SSD.

Scope of Seller Stamp Duty (SSD)
Computation of SSD and Payment Due Date (Seller's Stamp Duty rates, SSD illustrations....)
Exemptions and Remissions
SSD Payment Procedures
Frequently Asked Questions
Advisory Note to Buyers
Glossary of Terms

For more information, you can refer to the e-Tax guide on the Imposition of Stamp Duty on Sellers for Sale or Disposal of Residential Property (7th Edition)  (352 KB). 

Source: IRAS