SRX: Month-on-month rise in private home resale prices comes to halt - SRX

Resale prices of non-landed private homes in Singapore were unchanged in April from March, putting a stop to five straight months of month-on-month price rises, according to SRX Property's flash estimates released on Tuesday (May 9).

Its report also showed that the number of resale transactions fell 21 per cent in April from March. However, this came as sellers hiked their asking prices to above perceived market rates - the first time they have crossed that line in at least two years.

Going by location, the city fringes (rest of central region) and outlying areas (outside central region) recorded month-on-month price increases of 1.2 per cent, 0.1 per cent respectively, while the prime districts (core central region) saw prices decline 1.2 per cent.

Private resale prices rose an upwardly revised 0.8 per cent month-on-month in March, 1 per cent in February, 0.9 per cent in January, 0.3 per cent last December and 0.6 per cent last November.

Year-on-year, private resale prices last month were 1.8 per cent higher than in April 2016, though still down by 5.4 per cent from their recent peak in January 2014.

An estimated 907 units changed hands in April, down 21 per cent per cent from the 1,148 resale units for March.

Year-on-year, resale volume last month was 48 per cent higher compared to 613 units resold in April 2016. Resale volume was still down by 55.8 per cent compared to its peak of 2,050 units in April 2010.

SRX's overall median Transaction Over X-Value (TOX), which measures how far or below computer-generated market values units are actually going for, rose to S$5,000 in April from zero in March.

For districts with more than 10 resale transactions in April, district 16 (Bedok and Upper East Coast) and 21 (Clementi Park and Upper Bukit Timah) posted the highest median TOX of S$37,000.

Among relatively active districts, district 11 (Newton and Novena) posted the most negative median TOX of -S$40,000.

The Straits Times

Source: SRX (11 May 2017)

Proportion of HDB flats in housing stock dips - SRX

Over the past 10 years, even though more Housing Board flats have been built, they now make up a smaller proportion of Singapore's total housing stock.

Last year, the 1,011,000 HDB flats made up 73 per cent of total housing stock. This is down from 78 per cent- or 880,000 units - in 2006, Minister for National Development Lawrence Wong told Parliament yesterday.

And it is also down from 85 per cent in 1996, a check by The Straits Times showed.

Meanwhile, the number of private condo units and landed homes increased from 243,000 to 372,000 over the same period, with its proportion of the overall dwelling units growing from 22 per cent to 27 per cent.

Responding to a question from Mr Gan Thiam Poh (Ang Mo Kio GRC), Mr Wong said this proportion is expected to remain stable over the next few years, with 72 per cent out of all dwelling units projected to be HDB flats in 2020.

This ratio only refers to the housing stock, not the proportion of people living in HDB flats, which is still around 80 per cent, he added.

Minister for National Development Lawrence Wong said this proportion is expected to remain stable over the next few years, with 72 per cent out of all dwelling units projected to be HDB flats in 2020.

Senior Minister of State for National Development Dr Koh Poh Koon said some 56,000 out of all HDB flats are public rental flats, which cater to a yearly average of 2,600 households who move in.

In the past 10 years, about 1,600 households returned their rental flats and now have their own homes, said Dr Koh.

Mr Wong also revealed that less than 2 per cent of Build-To-Order (BTO) home buyers who had been invited to collect their keys had asked for a deferment in the whole of 2016 and the first quarter of this year.

While a majority were able to sell their existing flat, 45 buyers eventually cancelled their new flat bookings and paid the forfeiture, he said.

Mr Wong said: "The main reasons... include changes to the buyers' overall financial circumstances or they no longer wished to proceed with the new flat purchase for their own personal reasons."

He also reminded buyers to be prudent and take into account possible changes in the market if they plan to finance their new home with the existing flat's sales proceeds.

Mr Zaqy Mohamad (Chua Chu Kang GRC) asked if HDB could exercise more leniency, as he has come across several cases of buyers unable to let go of their current flat due to the slow resale market.

Mr Wong said HDB already "exercises flexibility and grants time extensions" to buyers to sell their flats and complete their transactions.

"For the minority who chose not to (complete the purchase), if there are financial hardships, we can look at the particular case at hand and waive the forfeiture that they have to pay," said Mr Wong.

The Straits Times

Source: SRX (09 May 2017)

HDB resale volumes, prices ease in April 2017 - SRX

PRICES as well as transaction volumes of Housing & Development Board (HDB) resale flats fell last month, according to the latest flash estimates from SRX Property. Its price index for HDB resale flats fell 0.3 per cent last month over March 2017 - reversing the 0.3 per cent month-on-month gain posted in March 2017.

Year on year, the price index also shed 0.3 per cent from April 2016. From the peak in April 2013, the index has slipped 11.4 per cent.

The subindex tracking prices of flats in mature estates has eased 0.2 per cent year on year - compared with a 0.4 per cent fall in non-mature estates over the same period.

Data compiled by SRX Property estimated that the volume of HDB flats resold shrank 4 per cent to 1,834 units last month from 1,910 units in March 2017. Year on year too, the figure was 0.9 per cent lower than the 1,850 units resold in April 2016.

The resale volume was 49.7 per cent lower than the peak of 3,649 units in May 2010.

OrangeTee's head of research and consultancy Wong Xian Yang expects HDB resale prices to fluctuate within a band of minus one per cent to plus one per cent this year - with several factors keeping prices sideways.

"Demand remains healthy due to a growing belief that resale HDB prices have more or less stabilised and are unlikely to show a major correction - barring an unexpected deterioration in economic conditions," he said.

"Moreover, the increase in the CPF Housing Grant announced in this year's Budget for first-timer families buying resale HDB flats should provide more incentive for eligible families to look at the resale market. This should drive slightly more demand towards the resale market and help support prices," said Mr Wong.

That said, the prevailing loan curbs, a healthy pipeline of Build-to-Order flats from the HDB and an uncertain economic climate will continue to hold back a robust recovery in resale HDB prices, he added.

He expects HDB resale volumes to grow around 2 to 5 per cent in 2017.

Savills Singapore research head Alan Cheong highlighted National Development Minister Lawrence Wong's cautionary statement in March against paying high prices for older resale HDB flats with short balance leases - in anticipation of a potential windfall if the block is selected for the government's Selective En-bloc Redevelopment Scheme (Sers). Only a small minority of HDB flats are picked for Sers; for the vast majority of HDB flats, their leases will eventually run out and the flats returned to HDB, which in turn will surrender the land to the state, Mr Wong said.

Giving his take, Mr Cheong of Savills reasoned: "With this statement weighing on the minds of potential buyers, sellers of older HDB flats in sought-after estates may have to temper their expetations. This is likely to result in a further delay in the price recovery for such resale flats.

"However, the flip side of this is that HDB flat owners who can afford to upgrade to private properties may now be more motivated to do so since they now have better clarity about the fate of their current abode as the lease runs out."

The Business Times

Source: SRX (05 May 2017)

HDB market to see positive growth in 2H 2017 - PropertyGuru

Romesh Navaratnarajah • April 28, 2017

HDB resale flat prices fell 0.5 percent in Q1 2017.

Resale flat prices in Singapore fell 0.5 percent in Q1 2017 from the previous quarter, according to 

more detailed statistics released by the Housing and Development Board (HDB) this morning.

The resale price index, which tracks the overall price movement of the public residential market, 

dropped to 133.9 from 134.6 in Q4 2016.

In the same period, resale flat transactions fell 9.6 percent to 4,530 cases.

Calling it a “marginal” price drop, Mohamed Ismail, CEO of PropNex Realty, noted that the first quarter 

of the year usually sees fewer activities in the market, with a lower number of transactions due to the 

Chinese New Year holidays and February being a shorter month.

“We are confident that HDB resale transactions in 2017 will likely hit the 22,000 mark due to the current 

stable environment in terms of pricing and the non-existence of COV (Cash Over Valuation) for more than 80 percent of transactions in the resale market,” said Ismail.

He added: “2017 will witness a positive growth in the second half of the year with an overall stable price

 movement of about -1 to +1 percent.”

On a quarterly basis, the number of applications approved for subletting of HDB flats 

dropped 6.5 percent to 9,981 cases in Q1. As at 31 March, there were 53,360 HDB flats being sublet,

 an increase of 0.8 percent from Q4 last year.

Meanwhile, the HDB said it will launch about 4,600 Build-To-Order flats and around 3,000 balance flats

 for sale in May.

Romesh Navaratnarajah, Senior Editor at PropertyGuru, 
wrote this story. To contact him about this or other stories, 
email romesh@propertyguru.com.sg

Source: PropertyGuru

Private home prices down for 14th consecutive quarter - PropertyGuru

Romesh Navaratnarajah • April 28, 2017

Prices of landed properties registered the largest decline of 1.8 percent in Q1 2017. 

Prices of private residential properties fell 0.4 percent in Q1 2017, following a 0.5 percent drop in
the previous quarter, according to data released on Friday (28 April) by the
Urban Redevelopment Authority. This is the 14th consecutive quarter of overall price decline.

Prices of non-landed properties remained unchanged, after falling 0.8 percent in Q4 2016.

Specifically, prices in the Core Central Region (CCR) declined 0.4 percent, compared with the
previous 0.1 percent increase.

In the Rest of Central Region (RCR) and Outside Central Region (OCR), prices rose 0.3 percent and
0.1 percent, compared with the 2.0 percent and 0.6 percent decrease in the previous quarter,
respectively.

Dr Lee Nai Jia, Head (SEA) Research at Edmund Tie & Co., said home prices in the RCR and
OCR were boosted by strong take-up rates at new launches.

“For instance, Park Place Residences at PLQ, with a median price of $1,805 psf in Q1,
sold 217 units out of 429 units in the project. Grandeur Park Residences also sold around 67 percent,
or 236 units, at $1,406 psf,” said Lee, who expects prices to remain largely stable this year.

Meanwhile, prices of landed properties registered the largest decline of 1.8 percent, after
rising 0.8 percent in the quarter before.

Said Lee: “The decline in price index may reflect only transactions of sellers in a weaker
bargaining position. The values of freehold landed homes, especially those that are well-maintained,
close to natural amenities like the seaside or hills, or in choice locations, are more resilient.”

Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. 
To contact him about this or other stories, email romesh@propertyguru.com.sg

Source: PropertyGuru

Release of 1st Quarter 2017 real estate statistics - URA

Published Date: 28 Apr 2017

The Urban Redevelopment Authority (URA) released today the real estate statistics for 1st Quarter 20171.

PRIVATE RESIDENTIAL PROPERTIES

Private residential market at a glance:

* Figures excluding Executive Condominium (ECs)

Prices and Rentals

Prices of private residential properties decreased by 0.4 % in 1st Quarter 2017, compared with the 0.5% decline in the previous quarter.

Property Price Index of private residential properties

Prices of landed properties declined by 1.8%, compared with the 0.8% increase in the previous quarter. Prices of non-landed properties remained unchanged, compared with the 0.8% decline in the previous quarter.

Prices of non-landed properties in Core Central Region (CCR) decreased by 0.4%, compared with the 0.1% increase in the previous quarter. Prices of non-landed properties in Rest of Central Region (RCR) and Outside Central Region (OCR) increased by 0.3% and 0.1% respectively, compared with the 2.0% and 0.6% decrease in the previous quarter respectively (see Annexes A-1, A-2 & A-62).

Rentals of private residential properties fell 0.9%, compared with the 1.0% decline in the previous quarter.

Rental Index of private residential properties

Rentals of landed properties fell 2.3%, compared with the 3.2% decline in the previous quarter. Rentals of non-landed properties decreased by 0.7%, the same rate of decline in the previous quarter.

Rentals of non-landed properties CCR and RCR decreased by 0.7% and 1.2% respectively, compared with the 0.4% and 0.1% decrease in the previous quarter. Rentals in OCR rose 0.4%, compared with the 2.0% decrease in the previous quarter (see Annexes A-3 & A-4).

Launches and Take-up

Developers launched 1,949 uncompleted private residential units (excluding ECs) for sale in 1st Quarter 2017, compared with 2,944 units in the previous quarter (see Annex C-1).

Developers sold 2,962 private residential units (excluding ECs) in 1st Quarter 2017, compared with the 2,316 units sold in the previous quarter (see Annex D).

Number of private housing units launched and sold by developers (excluding ECs)

Developers launched 1,024 EC units for sale in 1st Quarter 2017 and sold 1,072 EC units over the same period (see Annex F), compared with the 93 EC units launched and 734 units sold in the previous quarter.

Resales and Sub-sales

There were 2,170 resale transactions in 1st Quarter 2017, compared with the 1,944 units transacted in the previous quarter. Resale transactions accounted for 41.7% of all sale transactions in 1st Quarter 2017, compared with 44.3% in the previous quarter (see Annex D).

There were 70 sub-sale transactions in 1st Quarter 2017, compared with the 125 units transacted in the previous quarter. Sub-sales accounted for 1.3% of all sale transactions in 1st Quarter 2017, compared with 2.9% in the previous quarter (see Annex D).

Number of resale and sub-sale transactions for private residential units (excluding ECs)

Supply in the Pipeline

As at the end of 1st Quarter 2017, there was a total supply of 36,9423 uncompleted private residential units (excluding ECs) in the pipeline, compared with the 40,913 units in the previous quarter (see Annexes E-1 & E-24). Of this number, 15,930 units remained unsold as at 1st Quarter 2017 (see Annexes B-1 & B-2).

After adding the supply of 9,074 EC units in the pipeline, there were 46,016 units in the pipeline (see Annex E-3). Of the EC units in the pipeline, 2,940 units remained unsold. In total, 18,870 units (including ECs) remained unsold. 

Total number of unsold private residential units in the pipeline

 

Based on the expected completion dates reported by developers, 14,242 units (including ECs) will be completed in the remaining three quarters of 2017. Another 13,278 units (including ECs) will be completed in 2018.

Pipeline supply of private residential units and ECs by expected year of completion

Note: 4,307 private residential units and 561 executive condominiums were completed (i.e. obtained TOP) in 1Q2017.

Stock and Vacancy

The stock of completed private residential units (excluding ECs) increased by 4,230 units in 1st Quarter 2017, compared with an increase of 4,433 units in the previous quarter. The stock of occupied private residential units (excluding ECs) increased by 4,985 units in 1st Quarter 2017, compared with an increase of 5,072 units in the previous quarter. As a result, the vacancy rate of completed private residential units (excluding ECs) decreased from 8.4% at the end of the previous quarter to 8.1% at the end of 1st Quarter 2017 (see Annex E-1).

Stock and vacancy of private residential units (excluding ECs)

Vacancy rates of completed private residential properties at the end of 1st Quarter 2017 in CCR, RCR and OCR were 9.6%, 8.4% and 7.2% respectively, compared with the 9.6%, 9.6% and 7.1% in the previous quarter (see Annex E-4).

OFFICE SPACE

Office market at a glance:

Prices and Rentals

Prices of office space decreased by 4.0% in 1st Quarter 2017, compared with the 0.6% decline in the previous quarter (see Annex A-1). Rentals of office space fell by 3.4% in 1st Quarter 2017, compared with the decline of 1.8% in the previous quarter (see Annexes A-3 & A-5).

Property Price Index of office space

Rental Index of office space in Central region

Supply in the Pipeline

As at the end of 1st Quarter 2017, there was a total supply of about 826,000 sq m GFA of office space in the pipeline, compared with the 786,000 sq m GFA of office space in the pipeline in the previous quarter (see Annexes E-1 & E-2).

Pipeline supply of office space

Note: 97,000 sqm of office space was completed (i.e. granted TOP) in 1Q2017

Stock and Vacancy

The amount of occupied office space decreased by 6,000 sq m (nett) in 1st Quarter 2017, compared with the increase of 1,000 sq m (nett) in the previous quarter. The stock of office space increased by 31,000 sq m (nett) in 1st Quarter 2017, compared with the increase of 66,000 sq m (nett) in the previous quarter. As a result, the island-wide vacancy rate of office space at the end of 1st Quarter 2017 rose to 11.6%, from 11.1% at the end of the previous quarter (see Annexes A-5 & E-1).

Stock and vacancy of office space

RETAIL SPACE

Retail market at a glance:

Prices and Rentals

Prices of retail space decreased by 4.0% in 1st Quarter 2017, compared with the increase of 0.2% in the previous quarter (see Annex A-1). Rentals of retail space decreased by 2.9% in 1st Quarter 2017, compared with the decrease of 1.2% in the previous quarter (see Annexes A-3 & A-5).

Property Price Index of retail space

Rental Index of retail space in Central region

Supply in the Pipeline

As at the end of 1st Quarter 2017, there was a total supply of 606,000 sq m GFA of retail space from projects in the pipeline, compared with the 595,000 sq m GFA of retail space in the pipeline in the previous quarter (see Annexes E-1 & E-2).

Pipeline supply of retail space

Note: 25,000 sqm of retail space was completed (i.e. granted TOP) in 1Q2017.

Stock and Vacancy

The amount of occupied retail space decreased by 41,000 sq m (nett) in 1st Quarter 2017, compared with the increase of 66,000 sq m (nett) in the previous quarter. The stock of retail space decreased by 29,000 sq m (nett) in 1st Quarter 2017, compared with the increase of 10,000 sq m (nett) in the previous quarter. As a result, the island-wide vacancy rate of retail space rose to 7.7% at the end of 1st Quarter 2017, from 7.5% at the end of the previous quarter (see Annexes A-5 & E-1).

Stock and vacancy of retail space  

URA’S REAL ESTATE INFORMATION SERVICE

More detailed information on the price and rental indices, supply in the pipeline, stock and vacancy rates of the various property sectors can be found in the Real Estate Information System (REALIS), an online database of URA.

More information on REALIS can be found at https://spring.ura.gov.sg/lad/ore/login/index.cfm.

1	Statistics in this press release are based on quarter to quarter comparisons, unless otherwise stated.
2	The prices of private residential properties are not uniform and vary from project to project. Home-buyers can view more detailed information on transactions of private residential properties at: https://www.ura.gov.sg/realEstateIIWeb/transaction/search.action. Similar information can also be accessed by users on the go via URA’s iphone/ipad application. The application can be downloaded directly from https://itunes.apple.com/us/app/property-market-information/id428469176?mt=8&ls=1.
3	Projects in the pipeline refer to new development and redevelopment projects with planning approval, i.e. either Provisional Permission (PP) or Written Permission (WP).
4	More detailed data on supply in the pipeline by market segment, development status and expected year of completion can be found at https://www.ura.gov.sg/realEstateIIWeb/supply/search.action

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Summary of Key Information for 1st Quarter 2017

Annex	Title
Annex A-1 [PDF, 14kb]	Comparison of Property Price Index for 4th Quarter 2016 and 1st Quarter 2017
Annex A-2 [PDF, 16kb]	Price Indices of Non-Landed Properties by Market Segment
Annex A-3 [PDF, 14kb]	Comparison of Rental Index for 4th Quarter 2016 and 1st Quarter 2017
Annex A-4 [PDF, 17kb]	Rental Indices of Non-Landed Properties by Market Segment
Annex A-5 [PDF, 93kb]	Median Rentals and Vacancy of Office and Retail Space
Annex A-6 [PDF, 17kb]	Chart of Property Price Index by Type of Property
Annex A-7 [PDF, 14kb]	Chart of Residential Property Price Index by Type
Annex B-1 [PDF, 11kb]	Number of Unsold Private Residential Units from Projects with Planning Approvals
Annex B-2 [PDF, 16kb]	Number of Unsold Private Residential Units from Projects with Planning Approvals by Market Segment
Annex C-1 [PDF, 17kb]	Number of Uncompleted Private Residential Units Launched in the Quarter by Market Segment
Annex C-2 [PDF, 81kb]	Number of Private Residential Units Sold in the Quarter by Market Segment
Annex D [PDF, 154kb]	Number of New Sale, Sub-Sale and Resale Transactions for Private Residential Units by Market Segment
Annex E-1 [PDF, 90kb]	Stock & Vacancy and Supply in the Pipeline as at End of 1st Quarter 2017
Annex E-2 [PDF, 86kb]	Supply in the Pipeline by Development Status and Expected Year of Completion as at End of 1st Quarter 2017
Annex E-3 [PDF, 14kb]	Pipeline Supply of Private Residential Units and Executive Condominiums by Expected Year of Completion as at End of 1st Quarter 2017
Annex E-4 [PDF, 16kb]	Vacancy of Private Residential Units by Market Segment
Annex F [PDF, 90kb]	Number of Executive Condominium Units Launched and Sold in the Quarter

Source: URA