The HDB has an ambitious plan for Singapore’s residents, launching no less than 5,795 BTO units, of which 1,502 units will be located in Bishan alone. These units will be apartments with two, three, four rooms, meant to suit the needs of various homeowners and families. The previously mentioned number of units will not be concentrated in one single area, as it will be spread across five different estates. This way, future homeowners will have the possibility to choose the area that answers best to their requirements. Launched on the 17th of November, this will be the last project of this kind of HDB for this year.
The needs of Singapore’s residents changed over the past years and will continue to change, as a way to adapt to the coming times. Out of the desire to make Singapore a smart and well-adapted country, authorities are already depositing efforts in creating future plans that will improve the lives of its people. What does this mean? It means that we should soon expect to see housing projects with smarter and more intuitive features. These features should not just make life easier and more convenient, but should also allow homeowners to enjoy their time more and worry less.
The plans of the HDB, regarding future homes in Singapore, are meant to span over 10 years, as the recently presented blueprint shows. This blueprint is the development plan of a project called Designing for Life and it targets both public and private developments in existing and future cities around Singapore. Three major concepts compose this project, created out of the desire to give Singaporeans of all ages the chance to a much-improved life. With the help of this project, people will Live Well, supported by an environment built to enhance life quality and health standards. Then, they will Live Smart, as future homes will incorporate advanced technologies that will transform residential units into sustainable and smart constructions. And, finally, they will Live Connected, as part of the project is the involvement of the entire community in the development of neighborhoods.
During the months of October, the volume regarding resale flats provided by the HDB decreased indeed, but we can’t say the same happened with their prices. Last month was the fourth month in a row when prices did not just stay steady but even increased, despite what everyone believed. This is a clear sign that demand still exists on the market, even if the pandemic threatened to ruin everyone’s plans.
Numbers show us that during last month 2,436 HDB units were sold. In comparison with what happened in September, the number of transactions dropped by 2.1%. Even so, these numbers exceeded any prediction and managed to become the months with the highest number of transactions of this kind. The last time such a phenomenon took place on the real estate market was back in 2018, during the month of June when units summing up $11 million were resold.
In times when predictions are hard to make, as incertitude governates the background of many industries, the sale of two governmental land parcels managed to surprise everyone. Although it was not expected for developers to jump in making considerable investments, taking into account the unstable real estate market, these two land sales managed to stir interest beyond the prediction of specialists. We are talking about parcels located on the Yishun Avenue 9 and Tanah Merah Kechil Link.
The URA and HBD released a 99-year lease for parcels located at the previously mentioned addresses, as part of the government land sale program. The parcel on Yishun Avenue could bring 600 new homes, a fact that made bidders go as much as $374 million for this opportunity. On the other hand, the Tenah Merah Kechil Link provides, besides an approximate number of 265 residential units, a 2000 square meters commercial space, on the first story of the future development. This made developers bid up to $249 million for the change to invest here. Of course, before announcing the official winner, the authorities will have to closely evaluate each bid and development proposal.
The outbreak of Covid-19 changed, without a doubt, not just the way we live our lives, but also the world around us. The economy became more fragile and unpredictable, and we had to learn to deal with brand new conditions. Thus, considering the precarious state of the economy, the sales of new homes, in general, were expected to drop significantly. However, the private home sector managed to defy the predictions of specialists, continuing its upward trend, despite all odds.
What is more amazing is the fact that the current rises have not been seen for more than two years already. This September was the 5th month in a row when the level of sales was above expected and predicted values. If August recorded a sale of 1,258 of private units, September came with an even higher number, the total amount of units sold rising to 1,329. And all of this happened even though there were very few private home launches, an aspect that was highly affected by the unpredictability of the market in current conditions.
Are you looking to buy a new Singapore condo any time soon? In this case, you should know that you should be able to commit to the conditions of the issued OTP, as the possibility to reissue another OTP is not an option any longer. In other words, you should act within the validity of the issued OTP, as you won’t be able to get another one for the coming 12 months. This new restriction was recently released by the URA and should become familiar to all homebuyers because it can affect the final results of a property purchase.
According to reports, about 60% of the Penrose condominium units were sold by the Hong Leong group over the week of their launch itself. Even though experts predicted that the real estate market would take some time to recover from the blow of the pandemic, the statistics of this sale spurned a completely different story.
Out of 566 units, a total of 341 were sold in the 99-year leasehold area of development located in Sims Drive. The starting price of these condos were marked at $788,000 for an one-bedroom apartment, followed by the two-bedroom ones for $943,000, three-bedroom for $1.33 million and lastly, four-bedroom condos for $2.11 million.
For the unversed, the sizes of the apartments that are a part of the Penrose condominium fall within the window of 474 sq. ft. (one-bedroom) and 1,389 sq. ft. (four-bedroom). Hong Leong admitted that the take-up for these housing units were pretty decent as the selling prices were mostly between $1,500 and $1,700 for every unit.
Although the real estate market in Singapore is at peak these days, some discouraging practices are affecting the sales figures by a considerable level. The Urban Redevelopment Authority (URA) is now taking hard steps to tighten the property market monitoring practices so that deals for private developers can be controlled.
The main trouble occurs due to special arrangements of some private homebuyers with developers or property agents. They try to reissue options to purchase after expiry. This idea can be used for almost one year and can be even extended to 18 months right from the first OTP date. It gives buyers extra time to sell their existing homes.
What is currently happening in the real estate market was not foreseen by specialists, as everybody was expecting a significant decrease considering the worsening of the economic background because of the pandemic. However, despite all this, private homes are still in demand and, more than this, are being purchased. Thus, the month of July brought an increase of 8.2% regarding the number of units that were sold under these unprecedented conditions. More precisely, the newly-built homes manage to grab the attention of homebuyers. This particular sector enjoys an increase for the 3rd month in a row, even if the economics are far from being ideal.
What we are talking about are not just mere assumptions. The numbers speak for themselves, as developers providing non-landed private units managed to sell a number of 1,080 in the month that just passed. Taking the numbers from June, the increase reached a threshold of 8.2%, which is indeed unexpected. The increase is more than welcome after the circuit breaker that marked the month of April, an event that almost set the lowest value for the past 6 years. However, even with this increase, the sales are still well below those recorded in the same month of the past year. A year ago, in the same period, 1.179 units were sold, which means that this year sales are going down with 8.4%.
After a year that started mostly with bad news and uncertainties generated by the recent events, we are more than glad to announce that a batch of BTO units is ready for launch in the soon-to-be-famous Park District. When will this happen? Those interested in finding a home in the Park District should know that these units will be out for sale this month. The launch is within the Parc Residences @ Tengah project and it will provide the very first 1,040 built-to-order residential units in this area. Known as the “forest town”, the Park District is a gorgeous green area, an oasis of peace and relaxation for all those looking to get away from the busy sectors of the city.
Considering the events that marked the first half of this year, it’s no secret that the real estate market is not doing so well. Demand for new homes went down in a significant manner, plus developers had to stop or delay any launches they had planned because of social distancing rules and restrictions. Thus, it was quite a surprise to notice that the price of private homes managed to record a slight increase after the rather difficult past months. More precisely, the prices of homes from the private sector enjoyed an increase of 0.3% in the second quarter of this year.
While The Second Quarter Housing Board Flat Resale Transaction Period Plummeted, There’s Hope For The Future
During the second quarter of this year, the housing board flat resale transactions plummeted due to the circuit breaker measures. According to data from the HDB, transactions dropped by 41.9% from 5,893 during the 1st quarter to 3,426 over the 2nd quarter. In comparison to the data from last year, the percentage this year is 45.4% lower
According to the Housing Board, units dropped during the second quarter due to Say at Home Orders. Singapore’s shut down led to severe measures that lasted from April to June.
Not all businesses could sustain the tough phase of a pandemic. Many of them closed the door and moved to some other world by leaving the business industry. You can now see so many vacancies in the big malls where shop owners left their work due to extensive loss during the extended lockdown.
As people around the world are keen about following social distancing protocols, people have stopped to explore the malls anymore. It was a big business cycle breaker incident for the small businesses, and they are now failing to work at full capacity.
The Ministry of National Development (MND) stated that the supply of residential housing that belonged to the government land sales (GLS) program for the last 6 months of 2020 has been curbed because of the fallout from the global COVID-19 pandemic.
A total of 1,370 units of private home supply from the three confirmed units is around 23% lesser (405 units) than the 1,775 units that were allotted from such sites during the first half of this year.
If statistics are to be believed, this is the lowest number that has been ever recorded since the second half of the global financial crisis of 2009 when no confirmed lists for the sites were released. The current confirmed list comprises of an executive condominium site that alone is capable of yielding 615 units.
Yesterday’s report showed that during the pandemic, investment property sales declined in the first half, although the market showed signs of stabilization in the second quarter.
According to preliminary data compiled by Cushman & Wakefield, total investment sales for the six months to Tuesday were $ 6.13 billion, down 45% from $ 11.24 billion in the year-ago period.
The investment in the first three months of this year was US $ 3.07 billion, more than a third lower than in the fourth quarter of last year, but Q2 sales volume remained stable, with total sales of US $ 3 .06 billion.
Christine Li, head of research in Singapore and Southeast Asia at Cushman & Wakefield, said, “With a lack of catalysts, market sentiment is expected to remain sluggish and sales are unlikely to increase significantly in the next 6 months of the year.”
Ms. Li predicts that investment turnover will be between $ 12-15 billion this year. However, if the participant supports the merger between CapitaLand Commercial Trust and CapitaLand Mall Trust, he will increase the total treasury for the year by $ 10 billion to $ 22 billion to $ 25 billion. By comparison, last year it was $ 32.87 billion.
Cushman & Wakefield said the second-quarter investment market was driven by large-scale commercial transactions, and the total value of transactions increased to $ 2.02 billion, more than ten times than the first quarter. The transaction sales was at $183.4 million then. The commercial sector accounts for 66% of total investment sales. The biggest transaction this quarter was the 50% purchase of AXA Tower by leading e-commerce company, Alibaba Group, which valued the property at $ 1.68 billion.
Perennial sold its 30% stake in TripleOne Somerset to Sind Group for $ 155.1 million, while Olaya Group acquired the retail and banking division of 30 Raffles Place, the former Chevron Building, for $ 315 million. Much of the investment for the quarter came from the merger of Frasers Logistics Trust and Frasers Commercial Trust,. In tital, they are accounted for about 41% of the total sales which is equivalent to $ 1.25 billion.
The $ 1.25 billion transaction includes the $ 648 million (commercial) China Plaza Central transaction and the Alexandra Technology Park (industrial) transaction $ 606 million. This resulted in industrial sales of $ 701.3 million in the second quarter, slightly higher than the $ 661.4 million in the first quarter.
Without Alexandra Technology Park, industrial revenue would drop to $ 95.3 million. In the second quarter, land sales by the government were not closed, meaning home sales fell 85% from $ 2.02 billion in the previous three months to $ 305.4 million. While buyers waited to see prices drop further, there was no deal in the hotel industry.
Kushman said that uncertainties about how long the Covid-19 crisis will last and when the tourism industry returns to pre-pandemic levels may have led to a large number of hoteliers looking to leave the field, concluding in the coming quarters can trigger some transactions.
The Executive Director of Capital Markets Mr. Shaun Poh, added: “In the ensuing power outage period and economic recession, some owners might have to sell their assets to free up liquidity”.
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