2012 feb 2
Official numbers have revealed a rise in prices of small apartments – at almost double the speed of larger apartments. Location is still a differentiating factor and in general, property experts are not expecting the prices to drop too drastically.
Prices for small apartments islandwide as well as for larger apartments outside the Central Region rose about twice as fast as prices of larger apartments in the Central Region last year. This trend, while similar to the one in 2010, was more pronounced last year. According to flash estimates released by the National University of Singapore for its Singapore Residential Price Index (SRPI) series, the sub-index for small apartments islandwide (up to 506 square feet) rose 11.8 per cent for the whole of 2011. Central Region comprises Districts 1-4 (which includes the financial district and Sentosa Cove) and the traditional prime residential districts of 9, 10 and 11. The overall SRPI rose 9.2 per cent last year.
SRPI tracks prices of completed private apartments and condos, excluding executive condos. The current SRPI basket, fixed in December 2009, comprises 363 private residential projects completed from October 1998 to September 2009. NUS’s Institute of Real Estate Studies (IRES), which compiles the index, is revising the basket and the new basket will be reflected in the SRPI for January 2012. Among other things, IRES will add some projects completed between October 2009 and September 2011. These projects must have at least 40 units each and be relatively well transacted. At the same, IRES is expected to remove from its basket projects which are over 10 years old.
Urban Redevelopment Authority figures released recently show that developers sold 15,904 private homes in 2011, down 2.4 per cent from the record 16,292 units in 2010. Including ECs – a public-private housing hybrid – developer sales totalled a record 18,787 units in 2011, up 8.3 per cent from 2010. Some consultants suggest that home buying could come off 10-20 per cent in 2012, given the weaker economy and the recently introduced additional buyer’s stamp duty which seeks to cool home buying by investors and foreigners. However, some market watchers note that going by anecdotal evidence at least, interest remains strong among Singaporeans. ‘People say they believe prices are not going to come down too much. They’re waiting to buy for upgrading, investment and, in some cases, to provide an annuity for retirement, ie, rental income,’ says DTZ South-east Asia chief operating officer Ong Choon Fah. ‘While low interest rates are spurring interest in property, buyers are taking a longer-term view – including the limited supply of land in Singapore.’
Knight Frank chairman Tan Tiong Cheng reckons that a price reduction of about 10 per cent may be enough to entice most buyers in the mid and mass markets. ‘The high-end still has an oversupply, so a bigger price reduction may be necessary to encourage both local and foreign buying.’ Fragrance Group and World Class Land have sold 181 units at Parc Rosewood condo in Woodlands since Saturday. The average price is $960 per square foot. The five-storey, 99-year leasehold project will have 689 apartments. A good mix of units – one, two and three bedders – have been taken up. Singaporeans are believed to account for 80-85 per cent of buyers, with permanent residents making up the rest. Buyers comprise singles, young couples, families and investors – some living in the surrounding Woodlands area.
Far East Organization, Fraser Centrepoint and Sekisui House continue to achieve impressive sales at Watertown in Punggol, moving 148 more units over the weekend. They have now sold 744 units in the project since Jan 18. Transacted prices range from $980 psf to $1,500 psf. So far, 901 of the project’s 992 units have been released. The most popular are the one and two-bedroom suites (527-646 sq ft) and the two- and three-bedroom units (904-1,259 sq ft). All 385 suites have been been sold. Ninety per cent of the project’s buyers are Singaporeans. Market watchers credit strong sales to the developers’ marketing strategy, offering much-coveted waterfront living integrated with a mall (Waterway Point) and the Punggol MRT Station.
Mixed-used developments such as The Hillier are hot properties to watch this year.
Next to the upcoming Hillview MRT Station, where Far East is developing another mixed-use project, The Hillier, the property giant found buyers for another 26 residential units over the weekend, taking total sales to 386 units. It has released 479 of the project’s 528 units. The most popular are one-bedroom Soho-style apartments (506-624 sq ft). Singaporeans account for over 80 per cent of buyers. Far East also sold 19 units at other projects over the weekend.
http://blog.iproperty.com.sg/prices-of-small-apartments-rising-fast/
Official numbers have revealed a rise in prices of small apartments – at almost double the speed of larger apartments. Location is still a differentiating factor and in general, property experts are not expecting the prices to drop too drastically.
Prices for small apartments islandwide as well as for larger apartments outside the Central Region rose about twice as fast as prices of larger apartments in the Central Region last year. This trend, while similar to the one in 2010, was more pronounced last year. According to flash estimates released by the National University of Singapore for its Singapore Residential Price Index (SRPI) series, the sub-index for small apartments islandwide (up to 506 square feet) rose 11.8 per cent for the whole of 2011. Central Region comprises Districts 1-4 (which includes the financial district and Sentosa Cove) and the traditional prime residential districts of 9, 10 and 11. The overall SRPI rose 9.2 per cent last year.
SRPI tracks prices of completed private apartments and condos, excluding executive condos. The current SRPI basket, fixed in December 2009, comprises 363 private residential projects completed from October 1998 to September 2009. NUS’s Institute of Real Estate Studies (IRES), which compiles the index, is revising the basket and the new basket will be reflected in the SRPI for January 2012. Among other things, IRES will add some projects completed between October 2009 and September 2011. These projects must have at least 40 units each and be relatively well transacted. At the same, IRES is expected to remove from its basket projects which are over 10 years old.
Urban Redevelopment Authority figures released recently show that developers sold 15,904 private homes in 2011, down 2.4 per cent from the record 16,292 units in 2010. Including ECs – a public-private housing hybrid – developer sales totalled a record 18,787 units in 2011, up 8.3 per cent from 2010. Some consultants suggest that home buying could come off 10-20 per cent in 2012, given the weaker economy and the recently introduced additional buyer’s stamp duty which seeks to cool home buying by investors and foreigners. However, some market watchers note that going by anecdotal evidence at least, interest remains strong among Singaporeans. ‘People say they believe prices are not going to come down too much. They’re waiting to buy for upgrading, investment and, in some cases, to provide an annuity for retirement, ie, rental income,’ says DTZ South-east Asia chief operating officer Ong Choon Fah. ‘While low interest rates are spurring interest in property, buyers are taking a longer-term view – including the limited supply of land in Singapore.’
Knight Frank chairman Tan Tiong Cheng reckons that a price reduction of about 10 per cent may be enough to entice most buyers in the mid and mass markets. ‘The high-end still has an oversupply, so a bigger price reduction may be necessary to encourage both local and foreign buying.’ Fragrance Group and World Class Land have sold 181 units at Parc Rosewood condo in Woodlands since Saturday. The average price is $960 per square foot. The five-storey, 99-year leasehold project will have 689 apartments. A good mix of units – one, two and three bedders – have been taken up. Singaporeans are believed to account for 80-85 per cent of buyers, with permanent residents making up the rest. Buyers comprise singles, young couples, families and investors – some living in the surrounding Woodlands area.
Far East Organization, Fraser Centrepoint and Sekisui House continue to achieve impressive sales at Watertown in Punggol, moving 148 more units over the weekend. They have now sold 744 units in the project since Jan 18. Transacted prices range from $980 psf to $1,500 psf. So far, 901 of the project’s 992 units have been released. The most popular are the one and two-bedroom suites (527-646 sq ft) and the two- and three-bedroom units (904-1,259 sq ft). All 385 suites have been been sold. Ninety per cent of the project’s buyers are Singaporeans. Market watchers credit strong sales to the developers’ marketing strategy, offering much-coveted waterfront living integrated with a mall (Waterway Point) and the Punggol MRT Station.
Mixed-used developments such as The Hillier are hot properties to watch this year.
Next to the upcoming Hillview MRT Station, where Far East is developing another mixed-use project, The Hillier, the property giant found buyers for another 26 residential units over the weekend, taking total sales to 386 units. It has released 479 of the project’s 528 units. The most popular are one-bedroom Soho-style apartments (506-624 sq ft). Singaporeans account for over 80 per cent of buyers. Far East also sold 19 units at other projects over the weekend.
http://blog.iproperty.com.sg/prices-of-small-apartments-rising-fast/
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