Monday 27 July 2015

HDB resale prices continue to slide, down 0.4% in Q2 - Channel NewsAsia

The HDB Resale Price Index for the quarter was 135.0, down from 135.6 in the previous quarter – the eighth straight quarter of decline.


SINGAPORE: Prices of Housing and Development Board (HDB) resale flats continued their downward slide in the second quarter of 2015, with the Resale Price Index (RPI) showing a 0.4 per cent decline from the previous quarter, HDB announced on Friday (Jul 24).
The RPI for the quarter was 135.0, down from 135.6 in the previous quarter, HDB said. This is the eighth consecutive quarter of decline.
The number of resale transactions rose by 27.8 per cent quarter-on-quarter, from 4,135 cases to 5,286 cases. Four-room flats saw the highest number of resale applications, with 2,120 applicants, followed by three-room flats with 1,518.
The number of subletting transactions rose by 1.2 per cent, from 10,385 cases in the first quarter to 10,510 cases in the second quarter. As of Jun 30, the total number of HDB flats approved for subletting rose by 2.4 per cent from 48,338 to 49,480 units.
A total of 13,426 flats were offered for sale in the first half of 2015, comprising 8,039 Build-To-Order (BTO) flats and 5,387 balance flats, HDB said. Another 4,860 flats in Bidadari and Punggol Northshore will be launched in September, and an additional 4,000 flats will be offered in a concurrent Sale of Balance Flats exercise.
BUKIT MERAH TOPS 5-ROOM RESALE PRICES
Among estates with more than 20 resale transactions in Q2, Bukit Merah came in tops, with median 5-room flat prices at S$783,500. For 4-room flats, the median price in the Central region was the highest for 4-room flats at S$855,000. Tampines had the most expensive median resale price for executive flats at S$688,900, and Queenstown had the highest median resale price for 3-room flats at S$380,000.
CENTRAL COMMANDS HIGHEST MEDIAN SUBLET RENT
In towns with 20 or more subletting transactions, median subletting rents in Central were the highest for the 3-room, 4-room and 5-room categories at S$2,300, S$3,000 and S$3,500 respectively. For executive flats, Serangoon had the highest median subletting rent at S$2,900.
- CNA/cy
Source: ChannelNewsAsia
http://www.channelnewsasia.com/news/singapore/hdb-resale-prices/2004758.html# 

Sunday 5 July 2015

URA releases flash estimate of 2nd Quarter 2015 private residential property price index - URA

Published Date: 01 Jul 2015

The Urban Redevelopment Authority (URA) released the flash estimate of the price index for private residential property for 2nd Quarter 2015 today.
The overall private residential property index fell by 0.9%, compared to the 1.0% decline in the previous quarter. This is the seventh continuous quarter of price decrease (see Annex A [PDF, 13kb]) .
Prices of non-landed private residential properties declined in all market segments. In Core Central Region (CCR), prices fell 0.5%, higher than the 0.4% decline in the previous quarter. Prices in Rest of Central Region (RCR) fell 0.5%, compared to the 1.7% decline in the previous quarter. In Outside Central Region (OCR), prices fell 1.2%, higher than the 1.1% decline in the previous quarter (see Annex B [PDF, 13kb]).
The flash estimates are compiled based on transaction prices given in contracts submitted for stamp duty payment and survey data on new units sold by developers during the first ten weeks of the quarter. The statistics will be updated 4 weeks later when URA releases the full real estate statistics for 2nd Quarter 2015, which captures more data from the stamp duty records and the take-up of new projects. Past data have shown that the difference between the quarterly price changes indicated by the flash estimate and the actual price changes could be significant when the change is small. The public is advised to interpret the flash estimates with caution.
Source: URA

Flash Estimate of 2nd Quarter 2015 Resale Price Index - HDB

Date issued : 01 Jul 2015
 HDB’s flash estimate of the 2nd Quarter 2015 Resale Price Index (RPI) is 135.0, a decline of 0.4% over 1st Quarter 2015 (see Annexes A1 and A2  (PDF 21KB)).
2The RPI provides information on the general price movements in the resale public housing market. The transacted prices of individual flats (by block and flat type) can be found on HDB’s InfoWEB (online enquiry).
3The RPI for the full quarter and more detailed public housing data for 2nd Quarter 2015 will be released on 24 July 2015.
Further Tapering of BTO Flat Supply in 2015

4As the HDB resale market stabilises, HDB will further taper the Build-To-Order (BTO) flat supply in 2015, to 15,000 flats. HDB will augment this with over 9,000 balance flats offered under the Sale of Balance Flats (SBF) exercises in 2015, to ensure adequate flat supply to meet the demand.
5In 1H2015, HDB had offered 8,039 flats in two BTO exercises and 5,387 flats in a SBF exercise. HDB will offer another 4,860 BTO flats in Bidadari and Punggol Northshore by Sep 2015. About 4,000 flats will be offered in a concurrent SBF exercise.

Source: HDB

Why Are Singaporeans Still Choosing a Condo Over an HDB Flat? - SmartMoney


condo singapore
In a world before Wi-Fi and 3G, the Singapore Dream used to involve the 5 ‘C’s. These days, however, that Dream is all over the place. On the one hand, everyone and their cat has a credit card since people are signing up at roadshows more for the freebies than the card itself. On the other hand, the costs of owning a vehicle are so high that even buying a second-hand car seems impossible. When it comes to housing, the overpriced condominium is still the dream for most. But are condos a good financial investment? Ever wondered whether you make just as much with a HDB when property prices go up?  

1. First, let’s look at how prices have changed over the past 3 years

(All values obtained from PropertyGuru. HDB prices are based on HDB 4A transactions within a HDB Estate. Condo prices are based on average per-square-feet prices within a District. Due to the difference in size between older and newer 4 room flats, we will compare actual sale price instead of the PSF for HDB.)
Bedok (District 16)
20112014Percentage Change
HDB$460,000$533,00015.87% increase
Condominium$905 psf$1,069 psf18.12% increase

Tampines (District 18)
20112014Percentage Change
HDB$442,000$457,0003.39% increase
Condominium$775 psf$1,047 psf25.06% increase

Sengkang (District 19)
20112014Percentage Change
HDB$418,000$420,0000.48% increase
Condominium$874 psf$1,094 psf25.17% increase

Ang Mo Kio (District 20)
20112014Percentage Change
HDB$544,000$563,0003.49% increase
Condominium$955 psf$1,122 psf17.49% increase

Jurong West (District 22)
20112014Percentage Change
HDB$394,000$403,0002.28% increase
Condominium$884 psf$1,032 psf16.74% increase

Bukit Batok (District 23)
20112014Percentage Change
HDB$445,000$454,0002.02% increase
Condominium$775 psf$1,047 psf35.10% increase

Woodlands (District 25)
20112014Percentage Change
HDB$374,000$388,0003.74% increase
Condominium$650 psf$908 psf39.69% increase

Yishun (District 27)
20112014Percentage Change
HDB$390,000$402,0003.08% increase
Condominium$655 psf$817 psf24.73% increase

The numbers speak for themselves. With the exception of one HDB estate – Bedok – which had a double digit percentage increase, all the other HDB Estates only had a 4% or less increase in the value of their homes. On the other hand, all the condominiums experienced a double digit percentage increase, and even the lowest increase was still higher than HDB’s highest increase.
Of course, we can’t ignore the fact that there will be some HDB units that go against this trend completely– typically because they are in very desirable locations. Flats sold recently in Pinnacle@Duxton, Marine Parade, Holland Road or Tiong Bahru have fetched super high prices but of course are not representative of the rest of the estates in Singapore.

2. What is the situation today?

Today, in 2015, we are beginning to experience most of the consequences of the cooling measures implemented over the past couple of years. The main effect is that property prices have dropped as a result of government restrictions in buying and selling.
How has this affected the prices of condominiums and HDBs? Let’s take a look at the example of two properties in District 14 that became available earlier this year.

3. Case Study: newly launched condominium Sims Urban Oasis

Sims Urban Oasis began sales on February 14th this year. It’s a condominium project by GuocoLand, a member of the Hong Leong Group. Selling price is between $1,295 and $1,595 per square foot, with majority of the units being 2-bedroom and 3-bedroom units. Units have a 99-year lease.
Among other amenities, Sims Urban Oasis boasts several amenities, including tennis courts, swimming pools, a gym and even an in-house childcare centre among other amenities. It is next to the PIE and located about 350 metres from Aljunied MRT.

4. Case Study: newly launched HDB BTO Macpherson Spring

Macpherson Spring is a HDB BTO that opened for applications in February 17th this year. Selling price is between $303 and $478 per square foot. Majority of the units are 3-room and 4-room flat and they carry a 99-year lease.
Slightly over 22% of the units are studio apartments meant for senior citizens, so they come with a 30-year lease. Amenities include a childcare centre, playgrounds, fitness corners, a café and a “nearby” minimart. It is next the PIE, next to MacPherson MRT and about 500 metres from Paya Lebar MRT.

5. Comparing Sims Urban Oasis and Macpherson Spring

Both are extremely convenient, location-wise. Their proximity to the Pan-Island Expressway as well as the Paya Lebar MRT Interchange for the East-West Line and Circle Line means that you’re covered, regardless of whether you prefer public or private transport. In fact, this is probably the main reason why both properties are able to charge a premium, even in this depressed market.
Since it launched in February, Sims Urban Oasis has sold 183 of the 200 units launched, according to URA. In comparison, Macpherson Spring, despite being costlier than other BTOs launched at the same time, had 2,825 applicants for the 378 4-room units.
And so……
Well, if you can afford it comfortably, the condo option in Singapore remains the more lucrative option for the moment. In this example, units are available and you should be able to see some good gains if things stay constant. But then again, things rarely stay constant with the property market and you’ll want to really consider how stretched you are when reaching out for the condo purchase.
If you do commit to a new property, make sure you compare interest rates to get the best home loan for your particular situation.
Image Credits:
Source: SmartMoney.sg (18 Jun 2015)

New Projects Impact PSF Along North-East MRT Line - SRX

Change in Property Prices Along the North-East Line Explained
 
If the Singapore property market is a living, breathing, dynamic, flowing, and ever-changing organism, the MRT lines are its arteries.
The property market is in a state of flux with new homes being built and sold, old homes being resold, and new rental contracts being negotiated. Each of these transactions changes the different price equilibriums established in the various neighborhoods around the country.
Many forces influence these transactions. For example, an increase in supply of similar homes, either from built-to-orders coming online or a burst in owners putting their homes up for sale, wants to push prices down.
An increase in demand wants to push prices up. Urban development of a particular area might stimulate demand. Low interest rates make it cheaper to finance mortgages and can lead to an increase in demand.
External forces, like the Asia Financial Crisis or the Global Financial Crisis, push prices down.
Government policy can stimulate demand with subsidies or push down demand with stamp duty taxes or constraints on borrowing.
In the last year, one of the country’s major arteries, the North-East MRT Line, saw its fair share of price changes.

Change in the N-E MRT Line
As the accompanying SRX Property graph illustrates, home prices within one kilometer of each MRT station, as measured on a per-square-foot (PSF) basis, have changed as dramatically as an increase in PSF of 33.2% in the case of Outram Park and a decrease of 8.5% in Sengkang.
What’s behind these numbers?
If we investigate each station, plausible explanations for the increase or decrease in PSF of nearby homes become immediately clear. What’s even more interesting is that each explanation is unique to that area, underscoring the need to analyze each neighborhood and project before buying, selling, renting, or investing in property.
For example, new projects that opened for occupancy (also known as TOP’d or Temporary Occupancy Permit) drove up median prices big time in Outram Park and Hougang.
Specifically, Parc Vera apartments increased the median PSF in the Hougang station neighborhood from $742 in 2014 to $897 in 2015. That’s a jump of 20.9%.

The introduction of new projects, including Altez, Spottiwoode Residences and Skysuites@Anson, into the Outram Park area makes the overall neighborhood more expensive. In this case, the median PSF jumped from $1,295 to $1,725.  
So, despite the downward pressure on prices from the Cooling Measures, Outram Park and Hougang homeowners saw their neighborhoods increase in value thanks to the introduction of relatively more expensive new projects.
The neighborhoods of Harbourfront and Sengkang weren’t so lucky. They didn’t receive an influx of relatively expensive projects to prop up their prices. Instead, their neighborhoods experienced a decline in value as their existing projects absorbed the impact of Cooling Measures.
At SRX.com.sg/research, I have posted our analysts’ explanation for the price changes at each of the stations along the North-East MRT line. It is interesting to note how the introduction of new projects can impact the median PSF of a neighborhood in either direction, sometimes bringing prices up, sometimes bringing them down.
Posted on 02 Jul 2015
Source: SRX

Balancing Property Savings, Beer, and Commuting - SRX


Beers Savings North-East MRT Line
Say you’re a social animal and like to have a pint (or two) in a noisy pub before you return home after a hard day’s work.  Clarke Quay is as good a place as any.  It’s good for people watching, and there are plenty of bars and restaurants from which to choose.  
Clarke Quay has the added advantage of having its own station on the North-East MRT Line. If you’ve had one too many, you can safely return home to any condo within walking distance of this line.
Now, if you really like your beer, you want to maximize your time in the pub and minimize your time getting home.  This means the ideal location for your condo would be Clarke Quay.  No commuting time on the MRT. 
The problem, though, is that Clarke Quay property is relatively expensive.  Apartments near Clarke Quay rank third highest in terms of price per square foot as measured against all condos within one kilometre of a North-East MRT station.  
There must be a better balance between low home prices, beer drinking, and commuting time.
Let’s turn to SRX Property to find that better balance.  
In terms of home prices, Sengkang has the lowest median price-per-square foot at $733.  If you were to live there, you would achieve two of your three goals.  You would pay the lowest psf and save the most money, which, of course, you would spend on beer.  
In terms of beer, your property savings on a 1,000 square foot flat would be equivalent to the cost of 63,786 pints at $14 a pop.   (Yes, I know.  A home is not the only thing that’s expensive in Clarke Quay.)
The downside is that you would have the second longest commute at 23 minutes.
To recap, Sengkang gives you the lowest property price at $733 psf, the highest quantity of savings in beer at 63,786 pints, and the second worst commute to Clarke Quay at 23 minutes.
Sounds good?  Yes, but it’s not the optimal solution.  The problem is that, if you were to drink two pints every evening, it would take you 87.4 years to consume your property savings.
Therefore, a commute of 23 minutes from Clarke Quay doesn’t seem like a good trade-off for savings that you could not possibly drink in a lifetime.
There must be a better balance.
We would submit the better balance between home prices, beer drinking, and commuting time can be found at Woodleigh.  
There, the median private resale PSF is $1,008 or 38% cheaper than that of Clarke Quay.  
Its savings per 10,000 pint at 4.41 is better than that of neighbouring stations closer in (i.e., Potong Pasir and Boon Keng) and those further away from Clarke Quay (i.e., Serangoon and Kovan).
Woodleigh’s commuting time from Clarke Quay is not bad at 13 minutes and certainly better than that of Sengkang.
Finally, you would save the equivalent of 44,143 pints by living in Woodleigh.  It would take you only 60.5 years to consume two beers a night.  And, if you went crazy, you could consume four pints a night in 30.2 years.  Very manageable.
In the case of Sengkang, you would save enough
Ultimately, the balance you choose depends on the relative importance of property savings to beer drinking to commuting time.  It’s your decision.  
However, I would think twice about Dhoby Ghaut.
Condos there are more expensive than those near Clarke Quay so you start 10,286 pints in the hole and it will take you 14.1 years to catch up.
Posted on 25 Jun 2015

Source: SRX
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