Category Archives: Price Movements

Private apartment resale volume hits 3-year high in April

The number of condominiums and private apartments sold on the resale market last month hit a three-year high, even as prices edged up during the month, according to a local property index.

A total of 689 non-landed private residential units were resold in April, a 17.6 per cent increase from the previous month and the highest since May 2013, SRX Property said. On a year-on-year basis, resale volume was up 28.1 per cent.

Resale prices inched up 0.5 per cent in April compared to the previous month, with prices in the Core Central Region and Rest of Central Region recording a price increase of 0.7 per cent and 1.3 per cent, respectively. Units in the Outside Central Region bucked the trend, with resale prices falling by 0.2 per cent.

Overall, prices were down 0.5 per cent from a year ago.

MEDIAN TOX UP

The median Transaction Over X-Value (TOX), which measures whether people are overpaying or underpaying SRX Property’s estimated market value, rose in April to -S$9,000, compared to -S$10,000 in March.

For districts with more than 10 resale transactions, District 20 (Bishan, Ang Mo Kio) posted the highest median TOX of S$24,000. The lowest median TOX was in District 22 (Jurong), with -S$25,000.

Source : Channel NewsAsia – 10 May 2016

Private apartment rents remain flat, HDB rents slip 0.6% in April: Index

Rental rates for Housing and Development Board (HDB) flats continued their downward trend in April, while those for non-landed private properties remained flat with minor fluctuations outside of the Core Central Region.

Overall rental prices for private apartments were constant from March, although private apartment rents in the city fringes increased by 0.1 per cent and they decreased by 0.1 per cent in the Outside Central Region in April. Rents were down 5.4 per cent year-on-year, and 16.1 per cent lower than the peak in January 2013, according to flash estimates by SRX Property.

Private apartments in the city fringes saw the biggest drop in rent year-on-year at 8.2 per cent, while those in the Core Central Region and Outside Central Region saw decreases of 1.9 per cent and 6.8 per cent, respectively.

Rental volume plunged by 10.3 per cent from the previous month, with about 3,953 units rented in April compared to 4,405 in March. However, this was still 10.5 per cent higher than the 3,578 units rented in April 2015.

On the other hand, HDB rents saw a 0.6 per cent decrease from March to April. Year-on-year, rents in April were down by 4.3 per cent, and were down 9.9 per cent compared to the peak in August 2013.

Compared to the previous month, HDB three-room and five-room flats saw a 0.8 per cent and 1.1 per cent decrease in rents, respectively. Rentals for four-room flats remained the same, while executive flats posted a 0.4 per cent increase.

Furthermore, non-mature estates experienced a larger decrease of 0.9 per cent in April compared to the previous month. Rentals in mature estates fell by 0.3 per cent. Compared to the same time last year, rents in mature and non-mature estates dropped 3.9 per cent and 4.8 per cent respectively.

Rental volume for HDB flats also inched down by 2.2 per cent in April. SRX Property estimated that about 2,048 HDB flats were rented, compared to 2,093 units in March. Year-on-year, this was a 5.8 per cent increase from April 2015, however.

PRIVATE RENTS LIKELY TO CONTINUE DECREASING: PROPERTY AGENT

Property agent ERA said that while there was minimal movement in private rents in April, it expected the “general downward trend” to persist given that supply exceeded demand in the market.

“Landlords will have to up their game to retain their tenants or attract new ones,” ERA key executive officer Eugene Lim said.

Mr Lim added that the agency expected the number of leasing transactions for private apartments to remain stable in the short term as “the tenant pool is limited”, noting that the year-on-year increase in volume was mostly due to tenants renewing leases or switching apartments for better deals, rather than new tenants.

For HDB flat rentals, Mr Lim said units in mature estates were “typically easier to rent out”, as they were able to hold their value better especially if located near amenities and transportation nodes.

As they are still more affordable than private developments, Mr Lim also said ERA expected leasing demand for HDB flats to “remain resilient” as more tenants renewed their leases.

Source : Channel NewsAsia – 11 May 2016

Prices of HDB resale flats inch down further in April: Property index

The resale prices of Housing and Development Board (HDB) flats inched down slightly by 0.1 per cent on-month in April, SRX Property said on Thursday (May 5).

The price decline was driven by five-room flats, whose resale prices fell by 0.9 per cent. In contrast, the resale prices for three-room flats and executive flats rose 0.6 per cent and 0.1 per cent, respectively, and prices for four-room flats stayed the same.

Overall, prices have declined 0.2 per cent from the same period a year ago and 11.1 per cent from the peak in April 2013, SRX Property said.

A total of 1,828 HDB resale flats were sold last month – a record high since cooling measures were introduced in 2013 according to SRX Property. This was a 10.3 per cent rise from the 1,657 transacted units the previous month, and 13.5 per cent higher than the volume sold in April 2015, SRX Property said.

The overall median Transaction Over X-Value (TOX), which measures whether people are overpaying or underpaying SRX Property’s estimated market value, was zero last month.

For HDB towns with more than 10 resale transactions, Queenstown reported the highest median TOX of S$11,000, followed by Tampines with S$8,000. The lowest median TOX were in Clementi and Pasir Ris, at -S$10,000 and -S$8,000 respectively.

Source : Channel NewsAsia – 5 May 2016

Resale prices of private homes down 1% in March: Property index

Resale prices of private homes fell in March, after a marginal increase the previous month, according to flash estimates from the Singapore Residential Price Index (SRPI) released on Thursday (Apr 28).

The SRPI, compiled by the National University of Singapore’s Institute of Real Estate Studies, showed overall prices declined 1 per cent in March from the previous month. In February, prices rose 0.4 per cent from a month earlier.

Prices of homes in the non-central region, excluding small units, led the decline, falling 1.4 per cent from the previous month. In the central region, prices of homes, excluding small units, fell 0.5 per cent.

Prices of small units, which have a floor area of 506sqf or below, fell 1 per cent in March compared to the previous month.

Source : Channel NewsAsia – 28 Apr 2016

Almost 1 in 3 high-end Singapore condos sold at a loss in Q1

A S$4.3 million loss on the sale of a property would be a terrifying prospect for most people.

But that eye-watering amount is what the owner of a three-bedroom apartment at The Ritz-Carlton Residences Singapore Cairnhill saw disappear down the sink when the property was sold earlier this year.

The seller, a Chinese national who was a permanent resident here, had purchased the unit at S$3,815 per square foot (psf) in June 2013 and resold it at S$2,508 psf, a historical low. This was the most unprofitable deal for private non-landed homes in the first quarter of 2016.

And that loss-making sale was not unique. More owners of private property are selling units at a loss against the backdrop of a stagnating local economy, soft rental markets and sliding housing prices. A study by The Edge Property found that 14 per cent of sellers incurred losses in the first three months of 2016, up from 9 per cent in 2015 and 5 per cent in 2014.

Many of these owners are very likely being rocked by a double whammy – tenants are adjusting their expectations by asking for lower rentals and at the same time mortgages are increasing due to rising interest rates.

For the big-ticket transactions, however, the reasons could be entirely different. No rational seller of a multi-million dollar property would accept huge losses simply due to a challenging rental market or to cut their losses. Instead, they may simply need the proceeds to channel into their personal cash flow needs.

Nonetheless, it was the high-end segment which fared the worst in the first quarter of the year. Nearly a third of the transactions in the Core Central Region were in the red, up from 13 per cent in 2014 and 22 per cent in 2015. The losses averaged S$502,958.

Besides The Ritz Carlton Residences, another seller took in a huge loss of S$2.6 million. His property at Turquoise in Sentosa Cove was purchased in November 2007 at S$2,623 psf and was resold in January this year for S$1,400 psf.

The city fringe, or Rest of Central Region, has similarly witnessed a spike in the proportion of unprofitable transactions, from 5 per cent in 2014 to 8 per cent in 2015 and 16 per cent in the first quarter of 2016. The losses averaged S$232,648.

The biggest loss in the city fringe amounted to S$1.4 million. This was for a four-bedroom unit at Jardin which was purchased at S$2,028 psf in June 2010 and resold for S$1,232 psf. Incidentally, all four transactions at Jardin concluded in the first quarter of this year were unprofitable.

Besides The Ritz Carlton Residences, another seller took in a huge loss of S$2.6 million. His property at Turquoise in Sentosa Cove was purchased in November 2007 at S$2,623 psf and resold in January this year for S$1,400 psf.

In the mass market, or Outside Central Region, the biggest loss of S$677,600 was seen from the sale of a unit at Hillview Regency. The seller bought the property in August 2015 at S$1,263 psf and resold it in January this year for S$776 psf, incurring a 16 per cent Seller’s Stamp Duty of S$137,600.

The proportion of unprofitable transactions in the mass-market segment edged up from 4 per cent in 2015 to 7 per cent in the first 3 months of 2016, with losses averaging S$79,453.

PROFITS ALSO BEING PARED BUT OPPORTUNITIES REMAIN

While 86 per cent of transactions in the first quarter were still profitable, the average gains have also thinned, from S$443,533 in 2014 and S$381,472 in 2015 to S$326,992 in tandem with the overall downtrend in prices. Holding periods for these deals averaged 8.4 years.

The decline was observed across all segments. The biggest fall of 30 per cent was seen in the mass-market segment where the average gain has dipped from S$375,082 in 2014 to S$258,902 in the first three months of this year. In the high-end and city-fringe segments, average gains have fallen by just over 20 per cent over the same period.

The highest profit of S$3.3 million or 28 per cent, accrued to a 5,543 sq ft sky suite unit at St Regis Residences Singapore. The unit was purchased in February 2012 at S$2,111 psf and the previous seller had made a S$3.7 million loss. It was resold in February this year at S$2,706 psf, just after the expiry of his four-year SSD holding period.

The key question now is what will happen in the private market for the rest of this year. Looking at basic indicators – slower GDP growth, pressure on the job market and the soft rental market – the percentage of unprofitable deals is likely to continue to trend up.

For those who can afford it, this might be an ideal time to bottom-fish for high-end or city-fringe properties at attractive prices. Both The Ritz-Carlton Residences and Jardin units, which were sold at hefty losses, changed hands at or near historical low prices. At S$1,232 psf, the unit at Jardin was also a tad pricier than some mass-market properties. Investors looking for trophy deals should be on the constant lookout, as such deals can be snapped up quickly.

Property auctions can be a good place to start looking. Both The Ritz-Carlton Residences and Jardin units have previously surfaced at auctions, although they did not successfully go under the hammer. Auctions present opportunities for buyers to negotiate for a lower price if the property remains unsold.

Meanwhile, mass-market home prices could witness a steeper decline than other submarkets in view of the huge pipeline supply and stiff rental competition from HDB flats. These home owners may consider selling their properties now and rent, while waiting for the right opportunity. For those with extra cash, upgrading to the city-fringes or hunting for higher-end homes where there are signs that prices are bottoming could be viable options.

Note: The study matched resale and sub-sale caveats as at April 5, 2016 for private non-landed homes with their previous transactions. Profits and losses were computed based on the difference in selling and purchase prices, taking into account the prevailing SSD rate, but excluding other costs.

Source : Channel NewsAsia – 26 Apr 2016

Prices, rentals, occupancy rates for industrial space decline further in Q1 2016

Prices and rentals for industrial space in Singapore fell further in the first quarter of 2016, declining by about 5 per cent compared to the same period a year ago, according to figures released by JTC.

Occupancy rates fell in tandem during the quarter, declining 0.6 per cent from the previous quarter.

The national principal developer and manager of industrial estates said on Thursday (Apr 28) that on a quarterly basis, prices and rentals fell 2.5 per cent and 2.7 per cent, respectively.

This is the fourth consecutive quarter where prices and rentals have declined on both a yearly and quarterly basis, bringing them to 2012 levels, JTC said.

About 2.4 million square metres (sqm) of industrial space will come on-stream over the next three quarters, and another 1.8 million sqm will be completed next year.

This compares to the average annual supply of around 1.8 million sqm and demand of 1.2 million sqm over the past three years, JTC said.

The supply glut is likely to “exert further downward pressure” on occupancy rates, it said.

Source : Channel NewsAsia – 28 Apr 2016

Resale volume of non-landed homes up 47.6% in March

Resale transactions for non-landed private homes surged 47.6 per cent last month from the previous month, rebounding after four straight months of decline as prices inched higher, but analysts say it remains to be seen if the market has bottomed out.

Resale volume jumped to 577 homes last month from the 391 units registered in February, flash estimates from SRX Property showed on Tuesday (April 12), the highest level since the 586 homes resold in July last year.

On a year-on-year basis, last month’s volume was 19 per cent higher compared with the 485 units resold in March 2015.

Analysts said the steep rise in the resale volume was encouraging, especially at a time when new launches such as The Wisteria in Yishun and Cairnhill Nine also did well during the month. This means potential buyers are coming back into the market in force after the seasonal Chinese New Year lull.

“Historically, the month after Chinese New Year is a good month for the property market. That’s when we can see volume spiking. Forty plus per cent is quite a big jump and I find it encouraging that it is also higher than March 2015,” said Mr Wong Xian Yang, OrangeTee’s senior manager for research and consultancy.

“However, I think it is premature to say the market is on firmer footing. Rents are still falling due to the huge supply of completed homes and the economic outlook is not looking great.”

ERA key executive officer Eugene Lim also said that economic conditions remain challenging, but added that the private housing resale market should remain active until July before the market turns quiet again during the Hungry Ghost Festival.

“Sellers who are in a pinch may decide to cut their losses to sell now rather than later, so buyers with the capacity and ability to pick up properties are in an increasingly favourable position,” he said.

“Serious sellers should right-price their units and capitalise on this active period to secure their buyers. Pushing for a premium price is not realistic in current market conditions as buyers remain very price conscious.”

Non-landed private residential resale prices inched 0.3 per cent higher last month from February, showed the SRX Property data. However, on a year-on-year basis, last month’s resale prices dropped 1.3 per cent from March 2015.

Prices in the Outside Central Region, or suburbs, rose 1.3 per cent in March from the previous month, while those in the Rest of Central Region, or city fringes, inched up 0.1 per cent. On the other hand, prices in the Core Central Region, or city centre, fell 1.7 per cent.

Given that the property cooling measures and loan curbs are here to stay, analysts said prices should continue their general downtrend, notwithstanding monthly fluctuations.

“My expectation is that it is unlikely prices would rebound,” said Mr Wong.

“More likely than not, prices should show more stabilisation, perhaps with price declines narrowing in the next one or two quarters.”

On Monday in Parliament, Minister for National Development Lawrence Wong reiterated the Government’s stance not to roll back any cooling measures, saying it is “too early to declare victory” even though the policies have been effective so far in stabilising the market.

Source : Today – 12 Apr 2016

Condominium resale prices edge up in March

Prices of condominiums sold on the resale market edged up 0.3 per cent in March, while the number of units sold spiked 47.6 per cent, according to a local property index.

Non-landed private residential units in the Outside Central Region led the rise, with a 1.3 per cent in resale prices, SRX Property said. Resale prices of units in the Rest of Central Region edged up 0.1 per cent in resale prices, while those in the Core Central Region fell 1.7 per cent.

Overall, prices were down 1.2 per cent from a year ago and down 7.3 per cent from the peak in January 2014.

An estimated 577 non-landed private residential units were resold last month, an increase of 47.6 per cent compared to the 391 units resold in February. On a year-on-year basis, resale volume was up 19 per cent.

MEDIAN TOX DOWN

The median Transaction Over X-Value (TOX), which measures whether people are overpaying or underpaying SRX Property’s estimated market value, fell in March to -S$10,000.

For districts with more than 10 resale transactions, District 9 (Orchard, Cairnhill, River Valley) posted the highest median TOX of S$20,000. The lowest median TOX was in District 14 (Geylang, Eunos), with -S$29,000.

Source : Channel NewsAsia – 12 Apr 2016