SGHOUSING.COM 新加坡房地产网

Observers view supply increase as a signal to calm market amid high property prices.

THE Government has sent its strongest signal yet that it plans to increase the supply of homes and residential sites - a move that comes amid soaring real estate prices.

It will offer 6,000 new Housing Board flats over the next six months and might release more land for private homes next year if necessary.

The initiative comes as lower-end homes see a price spurt that is finally starting to match that in luxury homes.

Property consultants said the increased supply is the latest Government move to calm the market.

‘The Government is seeing a very strong take-up for homes, and it wants to avoid panic buying,’ said Mr Nicholas Mak, the director of research and consultancy at Knight Frank. ‘So it’s just telling potential buyers there is a lot of supply out there.’

Prices of entry-level private homes in suburban areas were 8.1 per cent higher in July to September than in the previous three months. The pace about matched that set by more expensive homes in the central region, going by initial estimates out yesterday.

In the same period, prices of HDB resale flats jumped by 6.5 per cent. This is double the 3 per cent rise in the previous quarter and is by far the biggest quarterly jump since 1999.

Given the recent ‘good response for new flats’, HDB will release a slew of new units in the coming months. Of these, 4,500 will come under the Build-to-Order (BTO) system. Another 1,500 units will be in three new Design, Build and Sell Scheme (DBSS) sites in central and eastern Singapore.

So far this year, HDB has released 2,700 BTO flats - about the same number as for the whole of last year. In the same period, it has sold a DBSS site at Boon Keng and launched another at Ang Mo Kio. The two combined can host at least 1,100 units.

HDB also said it ‘will continue to monitor the market situation closely, to ensure that there is an adequate and affordable supply of flats’.

A similar reassurance was issued by the Urban Redevelopment Authority (URA) with respect to private homes. It reiterated that it ‘will continue to monitor prices closely’.

In an unusual move, the agency added that it is reviewing the Government Land Sales scheme, launched every six months, for the first half of next year. It said it ‘will make available more sites…if the demand continues to remain strong’.

Experts interpreted this to mean that the URA intends to put out more sites for private home development, especially under its confirmed list.

The confirmed list system offers sites for sale outright, while the other option - the reserve list - follows a more cautious approach. Reserve sites are put out only when a developer submits a minimum acceptable bid.

While consultants believe the new HDB flats can be absorbed easily, some question the need for more land for private homes.

‘I don’t think there would be a glut on the HDB side,’ said Knight Frank’s Mr Mak. ‘If there is any risk of oversupply, it would be with private homes, three to four years from now.’

He noted the record run in collective sales in the past two years. Even if developers can sell all the new homes on these sites, those buying to rent out might not be able to find enough tenants when all the homes are finished.

This could bring rents and prices down, said Mr Mak. But for this year, he expects a record take-up of 15,000 new homes, compared with 11,000 last year and 7,500 in an average year.

On the other hand, collective sales will remove about 9,000 homes from the market, said Mr Ku Swee Yong, the director of marketing and business development at Savills Singapore.

‘If job growth continues to be strong, absorption may not be the problem; actually, there may not be enough to go around,’ he said.

The URA also removed a hotel site in Balestier from its land sales list yesterday. The 0.86ha site has been on the reserve list for a year or so, but the URA is reviewing its land use together with that of other vacant plots nearby.

Source : Straits Times - 2 Oct 2007

Private home prices also up smartly; govt may make more sites available.

The property price boom seen in the past two years has filtered down to the heartlands. The Housing & Development Board’s Q3 2007 flash estimate for its resale flat price index was 6.5 per cent higher than in the preceding three months. This is the biggest quarter-on-quarter jump in the index since Q2 1999, when it rose 8.1 per cent.

Market watchers say the key factor driving the increase this time around is the army of en bloc sellers downgrading for their replacement property.

Meanwhile, the party continues in the private housing market. The Urban Redevelopment Authority’s (URA) flash estimate shows that the official price index for private homes jumped 8 per cent in Q3 over the previous quarter, after rising 8.3 per cent in Q2. To ensure that prices do not run ahead because of a shortage of supply, the URA indicated that more sites could be made available through the Government Land Sales programme. Related link: Click here for URA’s news release

For now, the gains appear pretty evenly spread across regions. The URA said its price index for non-landed private homes in the Core Central Region - which includes the prime districts, Downtown Core and Sentosa - increased 8.3 per cent quarter-on-quarter in Q3, followed by an 8.1 per cent rise for Outside Central Region, which covers suburban mass-market locations like Woodlands, Yishun and Jurong, and 7.7 per cent for Rest of Central Region, including places like Bukit Merah, Toa Payoh and Katong.

The big price disparity among the three areas at the beginning of the year is clearly dissipating, notes PropNex CEO Mohamed Ismail. DTZ Debenham Tie Leung executive director Ong Choon Fah said yesterday’s official property data is ‘not such a bad thing. Everybody should feel a little richer’. CB Richard Ellis executive director Li Hiaw Ho says the URA’s Q3 flash estimate shows that ‘confidence in the residential market was unshaken despite periods of volatility in global stock markets caused by the sub-prime mortgage problems’.

‘While it’s not surprising that the high-end market continued to lead the way as more and more projects were marketed at above $3,000 psf, it was a big step made by several suburban projects that were launched at $850-1,000 psf,’ he added.

The URA’s flash estimate for its Q3 overall private home price index reflects a 22.6 per cent gain in the first nine months of this year, since Q4 2006.

Mr Li reckons the gain for the whole of this year may come in at 25 to 30 per cent. The uptrend will continue as there are more high-end projects to be rolled out in Q4, including Hilltops, Ritz-Carlton Residences, Grange Infinite, Phase 2 of Marina Bay Financial Centre and projects on Sentosa Cove, he noted.

Mrs Ong notes that other factors driving private home prices include still-strong liquidity, the trend of tenants deciding to become home owners, and the appeal of buying apartments for investment, given the tight rental market.

As for the HDB resale price index, Mr Ismail predicts the full-year increase will reach 15 per cent, considering that the increase in the first nine months alone amounted to 11 per cent. ERA assistant vice-president Eugene Lim forecasts an increase of 13 to 16 per cent for the whole of this year. He laments the unrealistic prices sought by many owners who are still riding on the euphoria created by record prices achieved for some five-room resale flats in the Bukit Merah area. HDB homebuyers are beginning to show some resistance and this could translate into lower resale volumes later down the road.

Mr Ismail estimates that transacted prices of HDB resale flats in Q3 reflect premiums over valuations ranging from $10,000 to $50,000. ‘A year ago, for the smaller three and four-room flats, the premium could have been $10,000-$15,000, while for bigger flats in outlying areas, many were not fetching any premium over valuation at all,’ he added. He reckons that for the next year, HDB’s resale flat price index could go up 10-12 per cent. Mr Ismail does not expect HDB resale flat prices to run away as they did in 1996, when the index rose 34.3 per cent, as the authorities will step up supply quickly to prevent public housing prices from becoming unaffordable.

HDB said it will continue to monitor the market closely to ensure ‘an adequate and affordable supply of flats’. It will be increasing its supply of new flats with plans to offer about 4,500 units under the Built-To-Order system over the next six months, after offering about 2,700 BTO flats from January to September. In addition, HDB plans to release three new sites under the Design, Build and Sell scheme that can generate about 1,500 HDB flats in central and eastern Singapore in the next half year.

As for the private housing market, the URA also gave a clear signal yesterday on its intention for the Government Land Sales programme for H1 2008, which it is currently reviewing. ‘The government will make available more sites for private residential development through the GLS programme next year if the demand continues to remain strong,’ it said.

Source : Business Times - 2 Oct 2007

THE rich heritage of Katong and Joo Chiat district will get more protection from the wrecking ball with a further 228 buildings earmarked for conservation status.

The buildings include landmarks such as St Hilda’s Church, the Bethesda (Katong) Church and the former Grand Hotel in Still Road South.

Three bungalows - in Marine Parade Road, Chapel Road and Joo Chiat Road - have also been selected.

The buildings were selected to serve as markers of the area’s heritage.

St Hilda’s Church, for example, was built in 1949 and is designed in a simple English parish church style while the former Grand Hotel building was built in 1917 in the ornamented Victorian style with a slight Indian influence.

There are already about 700 buildings under conservation orders in the East Coast area, traditional home of Singapore’s Eurasian and Peranakan communities and a haven for food-lovers.

The plan was announced by National Development Minister Mah Bow Tan yesterday at the Urban Redevelopment Authority’s (URA) Architectural Heritage Awards ceremony.

The URA has told the building owners about the conservation plan. Its final decision will be made after feedback.

Conservation orders mean owners cannot demolish the building or make major alterations to structures or facades.

But the URA noted that most can be redeveloped to their full economic potential even if conserved.

One owner, Ms Lyn Lee, 34, wants the certainty a conservation order would bring. Ms Lee, who owns the Awfully Chocolate cakeshop chain, lives in a pre-war, three-storey shophouse in Tembeling Road, one of a row of 10 houses.

She and her husband bought the ageing freehold property for $880,000 six years ago and have spent about $500,000 renovating it into a home for themselves and their three children. They do not intend to move.

‘It’s very important that someday, somebody won’t come and mow down three houses and build a pink-tiled monstrosity,’ she said.

Some of her neighbours are considering upgrading the neighbourhood if it is eventually conserved.

The 228 buildings proposed for conservation were chosen from about 1,000 buildings in the area that are more than 30 years old. More than 6,500 buildings have been conserved in Singapore.

The announcement was bittersweet for interest group Historic Architecture Rescue Plan, which has been lobbying the Government to conserve various properties in the district.

One - a 95-year-old Amber Road bungalow - could only be partly conserved. Earlier this year, its developer agreed to build a hybrid apartment block incorporating some elements of the old building, but it plans to tear down its much vaunted crescent-shaped section.

Mr Mah told the ceremony guests that Singapore had to strike a constant balance between redevelopment and conservation.

Six projects were singled out in the URA awards yesterday for sensitive or innovative restoration work, including the National Museum and Chek Jawa Visitor Centre in Pulau Ubin.

Mr Mah also announced the URA would be enhancing various districts next year. These include a 4.9km waterfront promenade from Punggol Point to Sungei Serangoon and a coastal promenade in Woodlands.

It will also improve roadside infrastructure in Siglap and Upper Serangoon Road.

Source : Straits Times - 2 Oct 2007

Suburban, HDB homes post best quarterly price growth in years.

NEW government figures released yesterday will bring cheer to the average Singaporean homeowner.

This is because prices for so-called ‘mass market’ properties - comprising mainly suburban condominiums and HDB homes - have posted their best quarterly growth in years.

This has brought the prices of both public and private homes to their highest level in a decade.

The flash estimates for the third quarter, which are based on home sales in July and August, show that private home prices rose 8 per cent, while prices of HDB homes jumped 6.5 per cent for the same period.

The numbers show that the effects of Singapore’s property recovery, which have been largely focused on high-end luxury apartments for the last year or so, are finally filtering down to the typical homeowner.

Most significantly, prices of non-landed private homes outside the central region - in areas such as Clementi and Bedok - surged 8.1 per cent, almost on par with the increase of 8.3 per cent for homes in the core, or central, area.

Growth in prices of homes located in prime areas like districts 9, 10, 11, downtown and Sentosa have far outstripped that of suburban homes since 2004, the earliest period for which price changes in different districts are available. But the gap in price increases has now narrowed to just 0.2 percentage points.

Property analysts say the figures show a confident local market generally unshaken by the recent volatility in the stock market - due to the sub-prime mortgage crisis in the US.

Savills Singapore’s director of marketing and business development Ku Swee Yong said future growth is now likely to be fuelled ‘from the bottom up’ by mass market homes.

CBRE Research’s executive director Li Hiaw Ho also marked this quarter as a ‘big step’ for suburban projects, which were launched at $850 to $1,000 psf.

Suburban projects were usually defined as those costing around $600 psf - but projects like The Parc Condominium in West Coast, for example, fully sold all 659 units in August at a median price of $880 psf, said Mr Li.

Meanwhile, HDB home prices are also driving the mass market recovery. The 6.5 per cent jump in prices is the highest since 1999, and comes on the back of a 3 per cent rise in the last quarter.

‘HDB home prices have languished in the doldrums for many years so it’s heartening for homeowners to see them pick up pace now,’ said property firm Propnex’s chief executive Mohamed Ismail.

The bullish figures have prompted some analysts to revise their forecasts. Property experts say private home prices have increased 21.1 per cent so far this year, already surpassing their forecasts of between 20 and 25 per cent.

Knight Frank’s director of research and consultancy Nicholas Mak gave a revised forecast of between 23 and 32 per cent.

As for HDB homes, Mr Mohamed expects the HDB price index to rise 15 per cent for the whole year.

Last year, in comparison, HDB’s price index only rose 2 per cent for the whole year, while for private homes, it was about 10 per cent.

The Government also highlighted that about 43,000 new private homes are expected to be completed from now till 2010, and almost half are still unsold.

Separately, the HDB also said it plans to launch up to 6,000 new homes in the next six months, subject to market demand.

The Urban Redevelopment Authority and HDB’s official third-quarter statistics will be released at the end of this month.

Source : Straits Times - 2 Oct 2007

Another 228 buildings in the Joo Chiat/Katong area identified for preservation

FROM landmark churches to picturesque pre-war shop houses, the Joo Chiat and Katong area is an undisputed hotbed of architectural diversity and the historical home for the local Eurasian and Peranakan community.

Given its unique mix of exquisite architecture, history and culture, the Urban Redevelopment Authority (URA) has identified another 228 buildings for preservation. These are in addition to the more than 700 historical landmarks located along key roads such as Joo Chiat Road and East Coast Road, as well as 15 bungalows on Mountbatten Road, that have already been gazetted for conservation.

Speaking at the URA Architectural Heritage Awards presentation ceremony at the National Museum of Singapore yesterday, Minister for National Development Mah Bow Tan said that the URA recently embarked on public consultation with the owners of the 228 buildings earmarked for conservation.

Said Mr Mah: “The aim of this conservation proposal is to complete conservation of the street block and add to the critical mass of heritage buildings and rich architectural diversity in Katong and Joo Chiat.”

Seeking the individual owners’ views, he added, was in line with the URA’s consultative approach.

“It also contributes to a more transparent process in gazetting buildings for conservation (and) will take into account the owners’ feedback,” he said.

Among the buildings targeted in this proposal will be the bungalows, terrace houses and shop houses in Koon Seng Road, Onan Road and Carpmael Road, as well as landmarks such as St Hilda’s Church at Ceylon Road and the single storey Bethesda (Katong) Church at Pennefather Road.

Mr Mah also announced plans to build a new 4.9km waterfront promenade stretching from Punggol Point to Sungei Serangoon, as well as projects to revitalise the older housing estates of Woodlands and Siglap Village “in order to enhance the distinct character, identity and overall environment of each area”.

These improvements are targeted for completion between 2008 and 2010.

“As a land-scarce nation, we have to take a pragmatic and balanced approach towards conservation,” he said.

“Creating an endearing home goes beyond individual heritage buildings, it is also about strengthening the identity of places where we live, work and play.”

Since 1989, the URA has gazetted more than 5,600 buildings for conservation. In addition, 55 buildings with historical significance have been earmarked as national monuments.

Source : Today - 2 Oct 2007