First GLS tender closing since new cooling measures in July. Is the situation as bad as what market watchers think?

This week, there were 3 government land sales tenders closing and these were the first batch of tenders that closed since the government announced the new cooling measures in July.

How were the responses to these tenders?

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Condo site at Jalan Jurong Kechil

There were only 3 tender bids received for the site at Jalan Jurong Kechil and this is one of the lowest in recent times. The low number of bids received reflect the general pessimism amongst Singapore property developers. Some developers may have decided to sit out of the land tenders, in view of the weakened market sentiments.

The highest price of S$1,002 psf ppr from CSC Land and COHL Singapore seems aggressive. Earlier this year, Kismis View, a nearby 99-year condominium development, was collectively sold to Roxy Pacific and Tong Eng Group for S$941 psf ppr. The bid from CSC Land was 6.5% higher than the price paid for Kismis View.

There was a wide disparity in the tender bids submitted. Second highest bidder – Hao Yuan Investment submitted a bid of S$764 psf ppr, which was 23.8% lower than CSC Land’s bid. The lowest bid came from Sim Lian Holdings, which offered S$606 psf ppr for the site (39.5% lower than CSC Land’s bid).

 

Condo site at Dairy Farm Road

The highest tender price of S$830 psf ppr from United Engineers is 22.2% lower than the S$1,067 psf ppr that Hong Leong Group recently paid for a nearby GLS site at Hillview Rise but the large price differential is likely to be a reflection of the differences in selling prices in the 2 area.

The Dairy Farm Road site is located further away from the Hillview MRT Station and some of the nearby condominiums in the area include Tree House, Foresque Residences and Eco Sanctuary. A 2-bedroom 797 sq ft high floor unit at Tree House was recently transacted at S$855,000 or S$1,073 psf.

The Hillview Rise site is located nearer to the Hillview MRT Station, with supporting retail amenities nearby – HillV2 mall. Some of the nearby condominiums in the area include The Hillier and Kingsford Hillview Peak. At Kingsford Hillview Peak, a 2-bedroom 829 sq ft high floor unit was recently transacted at S$1.2 mil or S$1,448 psf.

The difference in pricing implies that residential properties on the Hillview side could potentially sell at a premium of 30% to 40% above the prices of properties on the Dairy Farm Road/Petir Road side. This is a likely reason for the wide difference in the tender prices between the GLS sites at Dairy Farm Road and Hillview Rise.

The tender bid submitted by CSC Land for the Dairy Farm Road site also supports this view. CSC Land had also participated in the earlier tender for the Hillview Rise site, submitted a bid of S$935 psf ppr for the site. In comparison, the tender bid of S$804 psf ppr submitted by CSC Land for the Dairy Farm Road site was 14% lower than its bid for the Hillview Rise site. CSC Land has continued to bid aggressively for land since the recent cooling measures. Hence, the lower bid for Hillview Rise site is unlikely to be a reflection of the group’s conservatism towards land acquisition, but more likely to be a reflection of the weaker attributes of the site in comparison to the Hillview Rise site.

This government land sales officially marks the return of United Engineers to the residential development scene in Singapore. The last residential development by United Engineers was in 2012 when it launched 8 Riversuites in District 12.

It is evident that sentiments among property developers have weakened and this is reflected in the fewer number of tender bids received. Prior to the introduction of cooling measures, there are usually around 10 bids received for GLS tenders on average. For this Dairy Farm Road land tender, there were only 5 bids. Some developers may have decided to sit out of the land tenders, in view of the weakened market sentiments.

 

Executive Condominium site at Canberra Link

The highest tender price of S$558 psf ppr from Hoi Hup & Sunway is 4.3% lower than the record price of S$583 psf ppr paid by CDL and TID for the Sumang Walk EC site. Nonetheless, the tender price for the Canberra Link EC site is still very aggressive if we take into consideration the differences in executive condominium pricing in the 2 areas. Sumang Walk EC site is located in the North-east region and Canberra Link EC site is located in the North region.

In the North-east region, Rivercove Residences, an Executive Condominium development launched in April 2018 (another development by Hoi Hup & Sunway), achieved an average selling price of S$975 psf. In the North Region, Parc Life, an Executive Condominium developed by Frasers, was selling at an average selling price of S$850 psf this year.

Hence, the lower land price for the EC site at Canberra Link reflects the discount in the average selling price of executive condominium in the North, compared to the North-east region.

At the tender price of S$558 psf ppr, the estimated breakeven selling price of the development will be around S$900 to S$950 psf and the expected launch price should be around S$1,000 psf to S$1,050 psf. This is a 10.5% to 17.6% increase in the selling price of executive condominium in the area (using Parc Life as a reference).

Demand for this site is relatively strong in comparison to the number of bids received for the other 2 residential sites, but it was not as strong if we compare it to the last EC tender for Sumang Walk site. A total of 9 bids were received for the Canberra Link EC site, less than the 17 bids for the Sumang Walk site. All 9 tenderers for the Canberra Link EC site participated in the Sumang Walk EC site tender back in Feb 2018.

However, several developers and consortiums that submitted bids for the Sumang Walk EC site were missing in this Canberra Link EC tender – 1) Yanlord/Soilbuild consortium; 2) Sing Holdings/Far East Consortium/Koh Brothers; 3) Frasers Property/Keong Hong; 4) Nanshan Group; 5) GuocoLand; 6) Amara/Santarli/Kay Lim; 7) MCL Land; and 8) Ho Bee Land. This could be attributable to a more conservative land acquisition approach by these developers after the July cooling measures. It is also possible that some of these developers might have preferred to tender for the other EC site at Anchorvale Crescent instead. Tender for the Anchorvale Crescent EC site will be closing on 14th Sep.

 

What does the latest round of GLS tender tell us?

Firstly, the absence of several property developers which had been active in GLS tenders prior to cooling measures, as well as the decrease in the number of bids reflect the general cautious sentiments among most property developers in replenishing their land bank. No surprise here.

But this is unlikely to be a doomsday scenario yet. Some developers, especially those that had not replenished their landbank, may view this as an opportunity for them to acquire new sites at more reasonable prices. Both CSC Land and United Engineers had not acquired sites during the 2017/18 collective sale cycle and both companies managed to secure new development in the absence of fierce competition. This will sustain some interests in land acquisition activities but developers are likely to remain conservative in their offer prices for land as they factor in higher development risks when bidding.

Executive condominium seems to be the only bright spot in the residential property market. EC sites continue to be highly sought-after by developers. The existing stock of EC units in the market is almost fully sold. With the recent property cooling measures, executive condominium sites are looking even more attractive for developers. But, with the next round of EC launches likely to hit prices of S$1,000 psf to S$1,100 psf, which is close to some of the new condo launches, I’m just wondering how sustainable this will be.

Who knows, maybe the Government may be targeting the EC market next?

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Paying S$1,300 psf for a EC in future? Are you serious?

How much hotter can the Singapore property market get?

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Few days back, CDL put in a top bid of S$583 psf ppr for an Executive Condominium site at Sumang Walk in Punggol.

It was not just CDL’s tender price that set a new record price for an EC land. In fact, all the 17 bids were above the previous record price paid for the Lake Life EC site in 2013.

According to industry experts, breakeven selling price for the Sumang Walk site is likely to be around S$1,000 psf to S$1,100 psf. Hence, CDL is likely to launch this EC at around S$1,300 psf, which would be as much as a what a private condominium in the area fetches today.

The recently launched Parc Botannia was only selling at an average of S$1,280 psf and Sing Holdings acquired the land at only S$517 psf ppr less than 2 years ago. Do bear in mind that Parc Botannia is a private condominium and not EC.

For the upcoming EC launch  – Rivercove Residences, the developer Hoi Hup paid only S$355 psf ppr for the site. With an indicative price of S$800 psf to S$900 psf, Rivercove Residences do look like a good bargain now, if the Sumang Walk EC is going to be launched at S$1,300 psf.

Now, how would the buyers react to this news? Are buyers going to rush in and buy now in anticipation of an expected rise in property prices?

The upcoming new launches will give us the answer.

Growing Optimism over Singapore Property Market


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What are Singaporeans’ views on the local property market?

Below is an extract of the findings from PropertyGuru Consumer Sentiment Survey:

  • 46% of Singapore’s home buyers anticipate prices to rise further this year
  • Satisfaction levels in the Singapore residential market have gone up (37%) but unsatisfaction levels are still higher (42%). About 21% of respondents are neutral.
  • The record satisfaction level is due to the anticipation of long-term capital appreciation (45%) and the prevailing low mortgage rates (30%). Additionally, 28% said Singapore has a stable and resilient real estate market.
  • About 37% of respondents cited high prices as the top deterrent for not purchasing a property.
  • In the next six months, price hikes for condos are the most anticipated (67%), up from 57% in the previous survey.
  • More respondents (72%) expect condo prices to grow in the next five years.
  • About 26% anticipate price increases of more than 10%.
  • About 44% plan to buy homes in districts 15 (East Coast and Marine Parade) and 11 (Newton and Novena), making them the most popular spots on the island
  • 71% plan to buy at a budget of at least $750,000

Which camp are you in?

More information on the Survey can be found here:

https://www.propertyguru.com.sg/property-management-news/2018/2/169498/buyer-optimism-returning-to-the-singapore-residential-market

Weekly Kopi Talk (17/2/18 – 23/2/18)

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21st Feb 2018 – Implicit message in buyer’s stamp duty hike

SPK: As mentioned in my earlier blog post, this increase in BSD rates is not going to hurt most of us unless you are going for a high-end property. In fact, prior to the Budget, the market was expecting the government to introduce more drastic measures to cool the heated enbloc market. This mild measure seems to be a good news for the market.

20th Feb 2018 – Reit ETFs to enjoy tax transparency

SPK: The transparency for REIT ETFs is definitely a good news for the SREITs and fund management industry. Currently, there are 3 REIT ETFs in Singapore, with a total AUM of S$250 mil and their dividend yield ranges from 4.12% to 4.75%. The tax concession should result in some uplift in their dividend yield and make the ETFs more attractive to investors.

Short-term impact of the tax concession on the SREIT sector may be limited due to the small AUM size of the REIT ETFs in Singapore. It will require some time before the REIT ETF sector grows to a substantial scale that is enough for it to exert greater influence on the SREIT sector. Nonetheless, the tax transparency will be a good start to grow the REIT ETF sector.

20th Feb 2018 – Singapore property stocks fall on higher tax for home purchases

SPK: Singapore property stocks fell unexpectedly the day after the announcement of the hike in buyer’s stamp duty, despite the consensus view that the increase will not derail the housing recovery in Singapore. This was probably a knee-jerk reaction to the news and share price of developers managed to recover most of the losses the following day.

19th Feb 2018 – Singapore property stocks show ‘fatigue’ with surge in en-blocs

SPK: The collective sales market might be entering a cooling-off phase, as seen from the recent spate of collective sales attempt that ended without a sale being concluded during the public tenders. Developers were more aggressive in buying land last year. For most of the tenders, there were multiple bids and the majority of these tenders were concluded at a premium to the reserve prices.

 

Some of the recently sold sites like Brookvale Park and Pearl Bank Apartments did not manage to find a buyer during the public tender process. Nonetheless, they were able to secure a buyer via private treaty. This probably means that developers are still hungry for land. But developers might be more selective and cautious in buying land these days.

 

Buyer’s Stamp Duty has just been raised. What should I do?

Oh no! The government has just raised Buyer’s Stamp Duty for residential properties! What should I do? Should I exercise my option now before the clock strikes 12? More cooling measures coming up? Is the market going to CRASH???

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Fret not. I am here to give you (my) answers!

First of all, let’s not get confused. The additional 1% BSD is applicable for property value in excess of S$1 million. So if you are looking to buy a property below S$1 mil, please go back and have a good rest and not fret over this BSD hike.

What if you are upgrading to S$1.2 mil condo? Sad to say, you will be affected by this new rule if you do not exercise your option by midnight. How much more BSD do you need to pay? That will be S$2,000 payable to our tax man. Is there a need to rush? Please think twice. If you miss the deadline before midnight, at most you pay an additional S$2,000 in BSD. But if you make a rash decision and have to forfeit your option fees (partial), then that will be more than the additional S$2,000 for BSD.

But if you are a multi-millionaire who wants to buy a New Futura? Then maybe you should act now, if not you might end up paying as much as S$20,000 more in BSD. But maybe this S$20,000 is considered ‘peanuts’ to you, maybe?

My personal thought is that this increase in BSD rates is not going to hurt most of us unless you are going for a high-end property. In fact, prior to the Budget, the market was expecting the government to introduce more drastic measures to cool the heated enbloc market. This mild measure seems to be a good news for the market.

So, keep calm and carry on!

Weekly Kopi Talk (3/2/18 – 9/2/18)

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8th Feb 2018 – Singapore budget not expected to target property upswing

SPKI agree. As of now, there is already a very stringent set of rules and penalties (Qualifying Certificate extension charge and Additional Buyer Stamp Duty remission clawback) if developers cannot sell all their units within 5 years from the date that they acquire the site. Even though the Singapore government is getting concern on the activities in the collective sale market, it is still too early to take actions as the activities are happening on the supply side of the property market. On the demand side, things are improving but not at a heated level yet.

7th Feb 2018 – For China’s Wealthy, Singapore is the New Hong Kong

SPKThe return of foreign buyers could be a potential wildcard to fuel additional property demand and price increase in the property market. Property purchase by foreigners is recovering but it is still below the long-term average level. Chinese buyers will be an important group to watch out for. Based on 2017 statistics, the three most popular locations with Chinese buyers were districts 19 (Serangoon Garden, Hougang, Punggol), 23 (Hillview, Bukit Panjang, Choa Chu Kang) and 5 (Pasir Panjang, Clementi New Town). Oxley might have a good chance to sell its upcoming developments in District 19 – a 1,450-unit development at former Rio Casa site and 1,050-unit development at former Serangoon Ville site to Chinese buyers!

6th Feb 2018 – Oxley beats over 80 parties to buy Huang Clan Association site

SPKOxley, my favourite developer, is in the news once again! I would say that this is a very shrewd transaction by Oxley. The landowner is carving out a 99-year leasehold of the land and selling it to Oxley in return for a cash consideration of S$13 mil and the 2nd and 3rd floor of the completed development. Oxley will retain 4th to 8th floor of the development for sale. As the upfront cash payment is low, the return on investment for this project should be much higher. I’m impressed by Oxley’s strong business acumen, evident in its ability to beat over 80 parties to buy the site!

6th Feb 2018 – Developers paid S$380m in ABSD, QC extension charges

SPK: What a difference a year makes! Just a year ago, everyone was waiting for developers to give ‘special discounts’ to sell their old inventories in order to avoid paying QC extension and ABSD remission. Sad to say, that didn’t really happen unless you happen to be a member of the Wee family (who bought up all the remaining units at The Nassim from Capitaland) or some big funds who managed to bulk purchase remnant units during Feb/March last year.

Today, there are only around 80 developments (with a total of about 750 unsold units) that could be subjected to these fees and charges in 2018. This has come down significantly if we compare to last year when a total of 4,230 units were affected by the rules last year. With the recovery in the property market, concerns on the penalties due to QC extension and ABSD remission claw-back has since abated. In fact, developers may be more than happy to hold the units if they expect prices to increase further during the year!

4th Feb 2018 – Proposed home-sharing rules to be released for feedback by Q1

SPKYou can read my earlier analysis on this topic here!

5 things to expect with the legalization of short-term home sharing in Singapore

The wait is finally over (soon)! Yesterday’s Sunday Times reported that the proposed home-sharing rules will be released before April for feedback.

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Looks like short-term home sharing is here to stay. Despite the recent clampdown by authorities, the number of listings for homes as well as single rooms and shared rooms has risen from 7,781 in May 2017 to 8,601 in December the same year, an 11 per cent increase in eight months. In the same period, a total of 8,046 homes, single rooms and shared rooms were rented out for up to three months (which is technically against the current law). Airbnb’s total available room nights for single and shared rooms in Singapore from January to November 2017 was 1,186,887, a jump of almost 25 per cent compared to the same period in 2016.

Impressive statistics, isn’t it? With the weak residential rental market, property investors had little choice but to take the risk of running afoul of the law and list their properties on Airbnb to seek for an alternative source of income for their vacant properties. But with the impending home-sharing rules, it may be good to have clarity on how homeowners can officially do short-term leases in Singapore.

But wait. Is it really good for Airbnb landlords and the property market? Sunday Times reported that a new category of housing, which allows home sharing on a short-term basis, is believed to be one of the ideas in the consultation paper. Home-sharing platform operators like Airbnb may also be regulated. Mr Lawrence Wong also commented that “Singapore’s situation is complex due to its high density, and the majority of private homeowners live in strata-titled properties.”

So what can we possibly expect when the home-sharing rules come out?

  • A new category of housing? How does this work? Could it be like Private HireCar Driver’s Vocational Licence (PVDL), i.e. homeowners need to apply for a short-term leasing licence and subject to a very stringent set of rules to follow? Quite possible. The hurdle to getting the licence may be high, as the government need to protect the interests of the hoteliers.
  • There is no free lunch. Short term leasing can potentially generate better profits for owners compare to a typical residential lease. For owners who are allowed to lease short term, they might also have to prepare to pay an even higher property tax.
  • It is important to keep the neighbours happy. Government is paying attention to how the short-term leasing will affect neighbours in the development. So it is likely that once this home sharing rule is implemented, any complaint from a neighbour may result in a great deal of trouble for the short term leasing owner. So, be nice to your neighbours.
  • Another round of disruption to the hotel/residential leasing industry? Once the rules are clear, we may see hospitality operators and start-ups entering the short-term leasing market to be an operator for property owners in managing their short-term leases on their behalf. There are already some operators doing this (which is technically illegal).
  • Property market may get a boost from the home-sharing rules. One of the biggest concern of the property market now is the poor rental market at the moment. Whilst leasing outlook is expected to improve, the introduction of the home-sharing rules could provide an additional source of potential rental income and access to a bigger pool of tenants LEGALLY. This should help to improve buying sentiments.

This home sharing rule is probably one of the major change in Singapore property market in recent years. It is definitely an important development to look out for over the next few months. Stay tuned!

Weekly Kopi Talk (27/1/18 – 2/2/18)

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1st Feb 2018 – Singapore an emerging hot market for private equity real estate funds

SPK: Good and bad piece of news for Singapore office REITs. If CBRE’s projection turns out to be correct, more funds will flow into Singapore, resulting in more transactions in Singapore office market. This is likely to push up office property prices and resulting in further yield compression. It is good for raising the capital value of the office assets that Singapore office REITs are already holding. However, as it is today, yield compression of office assets has made it more challenging for S-REITs to acquire yield accretive office buildings in Singapore without income support and many office REITs have already turned to overseas like Australia to acquire assets that more yield accretive. The influx of funds into Singapore office properties will make it even harder for Singapore office REITs to acquire office properties in future, resulting in slower AUM growth.

 

1st Feb 2018 – Singapore property rebound has Frasers’ CEO chasing more land

SPK: Frasers Property managed to replenish its Singapore landbank last year by acquiring the site at Jiak Kim Street for close to S$1 bil, a record psf price at a government land sale. According to the report, Frasers is still in a land acquisition mode but on the contrary, Frasers did not participate in the recent Government Land Sale tenders. I believe that Frasers’ land acquisition strategy is to acquire sizeable plots of land at selective districts for development. Land acquisition will be a key driver of property developer’s share price in the near future.

 

31st Jan 2018 – Multiple tender closings, but bids still bullish

SPK: Intention of batch tender exercise is to give developers more options in site selection and to balance the supply and demand. But it appears that developers still remain very hungry for land. CDL and its parent company – Hong Leong Group, put in separate bids for the sites at Handy Road and West Coast Vale. Kheng Leong, the real estate arm of UOB’s Wee family, also participated in 2 tenders – Handy Road and Chong Kuo Road sites. There were several big developers also took part in the tender for Handy Road site, including an unidentified group from Hong Kong, Cheung Kong, and Wing Tai. This is a reaffirmation of the consensus outlook on the recovery in the high-end property segment. Read my earlier blog post on the GLS tender here!

 

30th Jan 2018 – Bullish Investors look past failed bid by CDL to privatise M&C Hotels

 

SPK: City Developments failed in its attempt to buy out Millenium & Copthorne Hotels, but its share price rose 1.97% to S$13.45 on Monday. CDL has always been a proxy to Singapore property market due to high concentration of assets in Singapore. CDL’s share price performance had been driven primarily by the recovery in Singapore property market. This is evident when we compare the share price performance of Capitaland and CDL. Capitaland has a more diversified geographical exposure and for the year-to-date, its share price is up by 14%. On the other hand, developers with significant Singapore exposure, such as CDL and Bukit Sembawang have experienced a greater jump in share price of 45% and 38% respectively.

5 important takeaways from yesterday’s GLS tender closure that you need to know

The Government Land Sale tender for 3 residential sites closed yesterday evening. Without much surprises, the demand for land remains strong and developers are still willing to pay good prices for land. CDL turns out to be the biggest winner in yesterday’s land tender, submitting the highest bids for 2 out the 3 sites.

 

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Handy Road Site

 

Below are 5 important takeaways from yesterday’s GLS tender closure that you need to know:

  • CDL/Hong Leong and Kheng Leong are hungry for land – Among the developers, CDL and Hong Leong are the most aggressive bidders in this round of GLS tender. Not just in terms of pricing, but also in terms of the number of bids that they put in. For the Handy Road site, CDL and Hong Leong both participated in the tender and submitted separate bids. It was the same for the West Coast Vale site. Kheng Leong also participated in the tenders for 2 sites – Handy Road and Chong Kuo Road sites. But for Kheng Leong, they are more measured in their tender offer price. In both of the tenders, Kheng Leong’s tender prices are among the lowest
  • Sophia Hills look like a good buy now – With an expected selling price of S$2,650 psf for CDL’s new project at Handy Road, Sophia Hills now look like a bargain buy. Personally, I would prefer Sophia Hills over CDL’s site because of its larger land area and space for residents, as well as the exclusivity and quieter environment. On the other hand, CDL’s site has an irregular shape and is sandwiched between Suites @ Orchard and Nomu. The blocks are likely to be close to each other due to the land constraint. With the announcement of the Handy Road site tender, Hoi Hup is likely to sell out the remaining 5% balance units of Sophia Hills sooner than later
  • Keen interests from big developers in prime district – Several other big developers took part in the tender for Handy Road site, including an unknown group of Hong Kong parties, Cheung Kong, Wing Tai, Hong Leong Group and Kheng Leong. This is a reaffirmation of the consensus outlook on the recovery in the high-end property segment
  • Developers are bullish on the West Coast area – CDL’s winning bid for the West Coast Vale site is 35% higher than what China Construction paid for the adjacent site in Feb 2017, an impressive inflation in land price in less than a year. China Construction also participated in the tender and offered S$794 psf ppr, which is less than 1% below the winning tender. EL Development, developer of the adjacent Parc Riviera, is also prepared to pay S$726 psf ppr or 32% than what it paid for the Parc Riveira land. Many other big developers such as UOL/UIC, CNQC, Hong Leong Group, also participated in the tender
  • Timing of West Coast Vale tender will benefit the launch of Twin View – According to Colliers, CDL’s breakeven price for the West Coast Vale site is around S$1,250 psf and selling price will be around S$1,400 psf to S$1,500 psf. With an expected launch price of S$1,200 psf to S$1,300 psf, Twin View should sell well as buyers will be attracted by the perception of “capital gain”, anticipating that prices of surrounding properties will rise when CDL launches the new site in a year’s time

Looks like it is going to take a while longer before the developers can satisfy their insatiable appetite for land.

Weekly Kopi Talk (20/1/18 – 26/1/18)

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26th Jan 2018 – Private home prices recovered in 2017, occupancies improved, says URA

SPK: Recovery in property market had been evident, but an important takeaway from the URA data is the improvement in residential occupancy rate and tapering of new supply completion over the next 2 years. This is what the property market really needs to sustain the recovery momentum. As long as owners are able to rent out their properties, they will at least have some cashflow to cover part of their mortgage repayment and this will ease the cashflow pressure on them. The tapering of new supply completion will also ease competition for tenants and further improve occupancy rates.

 

 26th Jan 2018 – More projects hopping on collective sale train

SPK: More developments are going for collective sales but as mentioned in SPK’s earlier post on market outlook, the collective sale market may start to cool for a while, before picking up again in 2H 2018. A total of 27 residential sites and 3 commercial/industrial sites worth S$8.7 bil were sold in collective sales last year. Developers may focus on preparation works for new project launches, instead of acquiring more sites. Other developers that have not acquired any sites may take a wait-and-see attitude. By 2H 2018, if the recovery is sustainable and take-up remains firm, the collective sale market is likely to pick up again as developers start to build up their landbank for launch in 2020.

22nd Jan 2018 – 18 New Futura units sold at S$3,200 psf at launch

SPK: It is interesting to note that high net worth foreigners are returning to the high-end market (despite the cooling measures still in place). Two-thirds of the buyers are Singapore permanent residents and foreigners. And according to List Sotheby’s, the number of luxury apartments (above $5 million) bought by foreigners and permanent residents in Singapore’s CCR last year more than doubled to 202 units. Looks like the high-end segment of the property market will drive the recovery this year?

22nd Jan 2018 – Foreign interest seen returning to Singapore residential market

SPK: Bank of Singapore expects foreign demand to return to Singapore residential property market. Residential rents are expected to bottom out and begin to recover due to a lower rate of physical unit completion. Home prices are expected to increase 3% to 8% in 2018, supported by a 5% to 10% recovery in rentals.

Happy weekend!