Tuesday 11 December 2018

Release of 3rd Quarter 2018 real estate statistics - URA

The Urban Redevelopment Authority (URA) released today the real estate statistics for 3rd Quarter 2018.1
PRIVATE RESIDENTIAL PROPERTIES
Private residential market at a glance:

* Figures exclude Executive Condominium (ECs)
Prices and Rentals
Prices of private residential properties increased by 0.5% in 3rd Quarter 2018, compared with the 3.4% increase in the previous quarter.
Property Price Index of private residential properties
Prices of landed properties rose by 2.3% in 3rd Quarter 2018, compared with the 4.1% increase in the previous quarter. Prices of non-landed properties remained unchanged, compared with the 3.2% increase in the previous quarter.
Prices of non-landed properties in Core Central Region (CCR) increased by 1.3% in 3rd Quarter 2018, compared with the 0.9% increase in the previous quarter. Prices of non-landed properties in Rest of Central Region (RCR) decreased by 1.3%, compared with the 5.6% increase in the previous quarter. Prices of non-landed properties in Outside Central Region (OCR) decreased by 0.1%, compared with the 3.0% increase in the previous quarter (see Annexes A-1, A-2 & A-62).
Rentals of private residential properties increased by 0.3% in 3rd Quarter 2018, compared with the 1.0% increase in the previous quarter.
Rental Index of private residential properties
Rentals of landed properties increased by 0.5% in 3rd Quarter 2018, compared with the 3.6% increase in the previous quarter. Rentals of non-landed properties increased by 0.3%, compared with the 0.6% increase in the previous quarter.
Rentals of non-landed properties in CCR decreased by 0.9%, compared with the 0.8% increase in the previous quarter. Rentals in RCR increased by 1.5%, compared with the 0.4% increase in the previous quarter.  Rentals in OCR increased by 0.9%, compared with the 0.8% increase in the previous quarter (see Annexes A-3 & A-4).
Launches and Take-up
Developers launched 3,754 uncompleted private residential units (excluding ECs) for sale in 3rd Quarter 2018, compared with 2,437 units in the previous quarter (see Annex C-1).
Developers sold 3,012 private residential units (excluding ECs) in 3rd Quarter 2018, compared with the 2,366 units sold in the previous quarter (see Annex D).

Number of private housing units launched and sold by developers (excluding ECs)
Developers did not launch any EC units for sale in 3rd Quarter 2018. Nevertheless, they sold 84 EC units from previous launches over the period (see Annex F). In comparison, developers launched 628 EC units and sold 762 EC units in the previous quarter.
Resales and Sub-sales
There were 2,672 resale transactions in 3rd Quarter 2018, compared with the 4,700 units transacted in the previous quarter. Resale transactions accounted for 46.3% of all sale transactions in 3rd Quarter 2018, compared with 65.4% in the previous quarter (see Annex D).
There were 81 sub-sale transactions in 3rd Quarter 2018, compared with the 120 units transacted in the previous quarter. Sub-sales accounted for 1.4% of all sale transactions in 3rd Quarter 2018, compared with 1.7% 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 3rd Quarter 2018, there was a total supply of 50,330 uncompleted private residential units (excluding ECs) in the pipeline with planning approvals3, compared with the 45,003 units in the previous quarter (see Annexes E-1 & E-24). Of this number, 30,467 units remained unsold as at the end of 3rd Quarter 2018, up from 26,943 units in the previous quarter (see Annexes B-1 & B-2).
After adding the supply of 2,834 EC units in the pipeline, there were 53,164 units in the pipeline with planning approvals (see Annex E-3). Of the EC units in the pipeline, 828 units remained unsold. In total, 31,295 units with planning approvals (including ECs) remained unsold, up from 26,961 units in the previous quarter.
Total number of unsold private residential units in the pipeline
Based on the expected completion dates reported by developers, 3,506 units (including ECs) will be completed in the last quarter of 2018.  Another 11,505 units (including ECs) will be completed in 2019.

Pipeline supply of private residential units and ECs (with planning approvals) by expected year of completion

Note: 4,392 private residential units and 4,130 executive condominiums were completed (i.e. obtained TOP) in 1Q-3Q 2018.
The redevelopment of the large number of private residential developments sold en-bloc since 2016 will add a significant number of new housing units to the supply pipeline.
As at the end of 3rd Quarter 2018, there were 31,295 unsold units with planning approval5, up from 26,961 units as at the end of 2nd Quarter 2018. In addition, there is a potential supply of 14,200 units (including ECs) from Government Land Sales (GLS) sites and awarded en-bloc sale sites that have not been granted planning approval yet. They comprise (a) about 6,700 units from awarded GLS sites and Confirmed List sites that have not been awarded yet, and (b) about 7,500 units from awarded en-bloc sale sites6. A large part of this new supply of 14,200 units could be made available for sale next year, and will be completed from 2022 onwards.
Stock and Vacancy
The stock of completed private residential units (excluding ECs) increased by 83 units in 3rd Quarter 2018, compared with an increase of 1,152 units in the previous quarter. The stock of occupied private residential units (excluding ECs) increased by 1,042 units in 3rd Quarter 2018, compared with an increase of 1,994 units in the previous quarter. As a result, the vacancy rate of completed private residential units (excluding ECs) decreased to 6.8% at the end of 3rd Quarter 2018, compared with 7.1% in the previous quarter (see Annex E-1).
Stock and vacancy of private residential units (excluding ECs)
Vacancy rates of completed private residential properties at the end of 3rd Quarter 2018 in CCR, RCR and OCR were 10.4%, 8.1% and 4.5% respectively, compared with the 10.9%, 7.7% and 5.0% in the previous quarter (see Annex E-4).
OFFICE SPACE
Office market at a glance:
Prices and Rentals
Prices of office space increased by 0.1% in 3rd Quarter 2018, compared with the 1.9% increase in the previous quarter (see Annex A-1). Rentals of office space increased by 2.5% in 3rd Quarter 2018, compared with the 1.6% increase in the previous quarter (see Annexes A-3 & A-5).
Property Price Index of office space in Central region
Rental Index of office space in Central region
Supply in the Pipeline
As at the end of 3rd Quarter 2018, there was a total supply of about 793,000 sq m GFA of office space in the pipeline, compared with the 725,000 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: 130,197 sqm of office space was completed (i.e. granted TOP) in 1Q-3Q 2018

Stock and Vacancy
The amount of occupied office space increased by 45,000 sq m (nett) in 3rd Quarter 2018, compared with the increase of 74,000 sq m (nett) in the previous quarter. The stock of office space increased by 28,000 sq m (nett) in 3rd Quarter 2018, compared with the increase of 60,000 sq m (nett) in the previous quarter. As a result, the island-wide vacancy rate of office space dropped to 12.0% at the end of 3rd Quarter 2018, from 12.2% 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 increased by 0.3% in 3rd Quarter 2018, compared with the decrease of 1.3% in the previous quarter (see Annex A-1). Rentals of retail space decreased by 1.2% in 3rd Quarter 2018, compared with the decrease of 1.1% in the previous quarter (see Annexes A-3 & A-5).
Property Price Index of retail space in Central region
Rental Index of retail space in Central region
Supply in the Pipeline
As at the end of 3rd Quarter 2018, there was a total supply of 501,000 sq m GFA of retail space from projects in the pipeline, compared with the 498,000 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: 78,103 sqm of retail space was completed (i.e. granted TOP) in 1Q-3Q 2018.
 
Stock and Vacancy
The amount of occupied retail space decreased by 26,000 sq m (nett) in 3rd Quarter 2018, compared with an increase of 21,000 sq m (nett) in the previous quarter. The stock of retail space decreased by 11,000 sq m (nett) in 3rd Quarter 2018, 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 increased to 7.6% at the end of 3rd Quarter 2018, from 7.3% 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.

1Statistics in this press release are based on quarter to quarter comparisons, unless otherwise stated.
2The 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/app/property-market-information/id573494340?mt=8.
3Projects in the pipeline are new development or redevelopment projects with planning approvals, i.e. Provisional Permission (PP) or Written Permission (WP).
4More 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
5These include 4,122 new housing units from awarded en-bloc sale sites that were granted planning approval in 3rd Quarter 2018 for redevelopment.
6The en-bloc sales of existing developments are subject to regulatory conditions, such as the issuance of the collective sale order by the Strata Titles Board under the Land Titles (Strata) Act. New private housing supply from these sites is estimated based on their site areas and allowable plot ratios under Master Plan 2014. For each site, the number of units proposed by the developer will be subject to detailed evaluation to determine if it can be supported. En-bloc sale sites sold up to mid-October 2018 have been included. 

Summary of Key Information for 3rd Quarter 2018
AnnexTitle
Annex A-1[PDF, 15kb]Comparison of Property Price Index for 2nd Quarter 2018 and 3rd Quarter 2018
Annex A-2 [PDF, 18kb]
Price Indices of Non-Landed Properties by Market Segment
Annex A-3 [PDF, 15kb]Comparison of Rental Index for 2nd Quarter 2018 and 3rd Quarter 2018
Annex A-4[PDF, 20kb]
Rental Indices of Non-Landed Properties by Market Segment
Annex A-5[PDF, 40kb]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, 13kb]Number of Unsold Private Residential Units from Projects with Planning Approvals
Annex B-2[PDF, 18kb]Number of Unsold Private Residential Units from Projects with Planning Approvals by Market Segment
Annex C-1[PDF, 19kb]Number of Uncompleted Private Residential Units Launched in the Quarter by Market Segment
Annex C-2 [PDF, 25kb]Number of Private Residential Units Sold in the Quarter by Market Segment
Annex D [PDF, 151kb]Number of New Sale, Sub-Sale and Resale Transactions for Private Residential Units by Market Segment
Annex E-1 [PDF, 24kb]Stock & Vacancy and Supply in the Pipeline as at End of 3rd Quarter 2018
Annex E-2 [PDF, 29kb]Supply in the Pipeline by Development Status and Expected Year of Completion as at End of 3rd Quarter 2018
Annex E-3[PDF, 14kb]Pipeline Supply of Private Residential Units and Executive Condominiums by Expected Year of Completion as at End of 3rd Quarter 2018
Annex E-4[PDF, 17kb]Vacancy of Private Residential Units by Market Segment
Annex F[PDF, 136kb]Number of Executive Condominium Units Launched and Sold in the Quarter



Source: URA (26 Oct 2018)

Release of 3rd Quarter 2018 Public Housing Data - HDB

Published Date: 26 Oct 2018

            This press release provides the data for the HDB resale and rental market in 3rd Quarter 2018.

HDB Resale Market


2          The RPI fell slightly by 0.1%, from 131.7 in 2nd Quarter 2018 to 131.6 in 3rd Quarter 2018 (see Annex A).  

3          Resale transactions rose by 18.9%, from 5,941 cases in 2nd Quarter 2018 to 7,063 cases in 3rd Quarter 2018 (see Annex B).    Compared to 3rd Quarter 2017, resale transactions in 3rd Quarter 2018 were 21.6% higher.

4          The median resale prices in the various towns in 3rd Quarter 2018 are tabulated in Annex C.

HDB Rental Market


5          The median rents in the various towns in 3rd Quarter 2018 are tabulated in Annex D.

6          The number of approved applications to rent out HDB flats fell by 6.7%, from 12,024 cases in 2nd Quarter 2018 to 11,216 cases in 3rd Quarter 2018 (see Annex E). Compared to 3rd Quarter 2017, the number of approved applications to rent out HDB flats in 3rd Quarter 2018 was 4.8% higher. As at 30 Sep 2018, there were 56,074 HDB flats rented out, an increase of 2.1% over 30 Jun 2018 (54,896 units).

Upcoming Sales Launch


7          In November 2018, HDB will offer about 3,800 Build-To-Order (BTO) flats in Sembawang, Sengkang, Tampines, Tengah and Yishun. Those in Sembawang, Sengkang and Yishun will have a shorter waiting time of 2.5 years, instead of the typical 3 to 4 years, to the flat buyers. More information on the BTO flats is available on the HDB InfoWEB. There will also be a concurrent Sale of Balance Flats exercise.


Source: HDB (26 Oct 2018)

Monday 5 November 2018

Monday, 5 November 2018 Exclusive rights or multiple property agents: Which is better? - Channel NewsAsia

SINGAPORE: You can engage as many real estate agents you want, and that is just what some people do when trying to sell or rent out their properties.
It is like having a football team with 20 players instead of 11: The more people, the more chances to score right?

Actually, it is not quite that simple. Here is what you need to know before you use a whole army of agents, or give a property agent exclusive rights to market your property, be it for sale or renting out.

THE PROS OF MULTIPLE PROPERTY AGENTS
The benefits of having multiple property agents are that: You can theoretically reach a wider group of buyers; you are getting a wider perspective; and you can access different buyer demographics.

1. You can theoretically reach a wider group of buyers
This is the theoretical “shotgun effect”. If one property agent with exclusive right can find two interested buyers/tenants, 10 property agents can find 20. This remains one of the core reasons why some sellers/landlords want multiple agents: They think they can close the deal a lot faster.
But further below, we will explain why we think this theory is outdated.

2. You are getting a wider perspective
More agents often mean more feedback. You will get a wider range of opinions, such as on what renovations to make to attract more tenants, or which nearby amenities to highlight, or how much you should set your asking price. Since each agent potentially brings a new insight, you could learn a lot about your property that you had not considered.
The downside to this is analysis paralysis. It is kind of like hosting a marketing meeting with 30 people, and ending up taking six months to decide on the colour of a product. You also need to remember that not all agents have equally informed opinions – that leaves it up to you to filter out the valuable insights from the rubbish.

3. You can access different buyer demographics
Different agents, in theory, cater to different types of buyers. By using multiple agents, you can market your property to multiple demographics at once. For landlords this would mean reaching different types of tenants, from foreign students to affluent single expatriates.
There typically isn’t a diverse demographic where buyers are concerned, so using multiple agents to reach different profiles is usually done by landlords who want to rent out, but are not sure which segment of the market they should target. Even though this sounds reasonable, we do not fully agree with this, for reasons described below.
THE DOWNSIDE OF USING MULTIPLE AGENTS
Back in pre-Internet days, the two positions – multiple agents versus an agent with exclusive rights – were more or less equal, but buyers now rely on online platforms to search for properties.
Changes in the way a property is bought and sold, coupled with new regulations implemented over the years that restrict the ways agents can market their properties, mean there is now more advantages to using an exclusive agent.
That is because: Almost all agents now use the same platforms to market your property; for regular residential properties; you seldom need access to niche demographics; prioritisation is more important than numbers; and multiple listings can confuse prospective renters or buyers.
1. Almost all agents now use the same platforms to market your property
Before the rise of online listings, marketing properties was less efficient. It mattered how many flyers your agent put out, how many cold calls they made, and which newspapers or magazines they advertised in. Multiple agents were more helpful in those days, as they were needed to cover more ground.
But today, most buyers go through the same online listings sites, or browse using the same apps. And because of the way internet listings work, you will reach roughly the same volume of potential buyers, regardless of how many agents you use. The Do Not Call registry and Council for Estate Agencies (CEA) rules against flyer distribution also helped concentrate agent marketing efforts on online portals.
(At most, having multiple agents will mean your listing gets posted a few more times, but that is also a drawback – see point four).
2. For regular residential properties, you seldom need access to niche demographics
It is commonly said that different agents can access different demographics. But the question you have to ask yourself is: Does that really matter for your property?
If you are trying to sell a property that is out of the norm – such as a S$15 million penthouse, or an industrial manufacturing site – then having a group of specialised agents can be important.
You will want agents who can access certain niche demographics (for example, one agent to target the super-affluent or one agent to target businesses buying properties). Each agent may also have personal networks they can tap on for potential buyers.
But for selling more mainstream properties, such as HDB resale flats or mass market condos, these specialisations matter less. The buyer demographics are not as niche, and most agents will be reaching out to the same pool of people.
For renting out properties, different demographics now rely on the same means — online portals — to find their rooms and units to rent, thus negating the need for multiple agents.
3. Prioritisation is more important than numbers
Because real estate agents are in sales, there is the old misconception that it is just a numbers game. Now that may be true for the agent in question, but sellers and landlords are always better off focusing on quality.
There is no point having five agents who can sell your property, if all of them put you last on the priority list (because they think someone else might get the commission).
Even worse, a non-exclusive agent might use your house as leverage to sell another property on his/her list. The agent might show a prospective buyer your house first, because he/she has access to it, after which they may bring the buyer to a better house, using the technique of contrast to pump up the perceived value of the second home. In short, you might get played if you use multiple agents.
4. Multiple listings can confuse prospective renters or buyers
This is why some agents hate listing houses, after another agent already has. Prospects get confused when they see the same property marketed by different agents – they may think some of the listings are old, or wonder if there might be something wrong about the house. They might even think it is a scam.
Put yourself in their shoes: Imagine if Agent A shows you around the house, and the next day you find the same property listed, but with Agent B as the contact — you may feel that you are being played.
So, stick to an exclusive agent if you do not want prospective buyers to start asking questions like “How come there are so many agents and it’s still not sold? Have all the other agents gave up?”
In general, it’s better to give one property agent the exclusive rights to sell or rent out your property. Given how properties are marketed nowadays, as well as buyer behaviour and mindsets, there is very little to recommend the multiple agents route. It is much better to switch agents if the current one is not performing. It is not hard to do, and it ensures every agent you engage is more committed to market your property.
This article first appeared on 99.co.
Source: CNA/aj
By Ryan Ong
 (Updated: )

Read more at https://www.channelnewsasia.com/news/singapore/exclusive-rights-multiple-property-agents-which-is-better-10887762
Subscribe to: Posts (Atom)