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Resale prices of Housing and Development Board (HDB) flats have risen to levels not seen since 1996, benefiting from a spillover of the bullish sentiment in the private home market.

In the third quarter of this year, HDB flats commanded an average 15-per-cent premium to their prices in the fourth quarter of 1998, which is used by the HDB as the base quarter for price comparison (base=100). Early estimates by the HDB showed the resale price index grew from 108 to 115 — a strong 6.5 per cent, in the three months ending September this year. This is more than double the 3-per-cent growth registered in the previous quarter.

“This means good news for the mass market — for people who have bought homes in the last six years, as they are now able to realise some profit,” said Mr Mohamed Ismail, the chief executive of real estate agency PropNex.

Mr Ismail noted that the HDB resale price index had shown positive increases for three consecutive quarters. He estimated that with the current trend expected to continue into the final quarter of the year, the total number of resale units registered for the year could surpass last year’s by about 4 per cent to hit 31,000.

Mr Eugene Lim, assistant vice-president at real estate agency ERA, said: “While the overall price increase was expected, the larger-than-usual jump in the HDB resale price index is probably caused by the filter-down effect from the private property market.”

Earlier this year, several resale HDB flats were snapped up at record prices by cash-rich beneficiaries from the en bloc sales of private housing estates. Some prospective sellers of HDB flats in choice areas such as Bukit Merah, Queenstown, Tiong Bahru and Toa Payoh are now asking for premiums between $50,000 and $200,000 above valuation, ERA noted.

“With these kinds of asking prices, we are beginning to see some resistance in the market as the typical HDB home buyer does not have or does not want to fork out too much cash,” said Mr Lim. “It just doesn’t make sense.”

Mr Nicholas Mak, director, Consultancy and Research Department at Knight Frank, believes that the growing demand for resale HDB flats will drive the lower end of the private property market.

“If the HDB resale home prices continue to grow by more than 3 per cent per quarter on average, it will give that extra push to the private mass-market segment in 2008, and we can expect very robust upgrader demand for private homes,” said Mr Mak.

For private non-landed properties, prices continued to rise, but at a slower pace, in the third quarter — the first time since the current market upturn that started two years ago. The Urban Redevelopment Authority’s (URA) preliminary estimates showed that private property prices rose 8 per cent compared to the second quarter, when they grew 8.3 per cent from the previous quarter — the fastest growth rate in eight years.

“Despite the stock market turbulence in August, the average private residential property prices in Singapore increased by 8.3 per cent,” said Mr Mak. “The surge is even more obvious when compared with last year, where the average private residential property prices rose by less than 4 per cent per quarter.”

“The demand drivers for the increase in the price of private homes could be attributed to several factors, including the increase in foreign talent to Singapore, optimism of the market, economic growth, and the increase in the price of the rental market,” said Mr Mak.

Singapore created a record 64,400 new jobs in the second quarter of this year, and recorded a seasonally-adjusted unemployment rate of only 2.3 per cent.

About 43,000 new units of private housing are expected to be completed between the second half of this year and 2010, the URA said. Of these, about 19,900 units, or 46 per cent, have yet to be sold by developers.

Mr Mak predicts that “for the whole of 2007, private home prices could increase between 23 per cent and 32 per cent year-on-year, while HDB average resale flat prices could rise by 13 to 20 per cent”.

Source : Today - 2 Oct 2007

The prices of private residential property in Singapore increased by eight per cent in the third quarter of this year, compared to the previous three months, according to the flash estimate by the Urban Redevelopment Authority.

Based on the estimated price index of private residential property, it said prices rose from 147.8 points in the 2nd quarter to 159.6 points in the 3rd quarter.

This represents an increase of 8.0 per cent, compared with the 8.3 per cent rise in the previous quarter.

According to geographical regions, prices of non-landed private residential properties in the Core Central Region increased the most - by 8.3 per cent.

Meanwhile, those in the Outside Central Region went up by 8.1 per cent and in the rest of the Central Region by 7.7 percent.

The flash estimates are compiled based on transaction prices given in caveats lodged during the first ten weeks of the quarter, supplemented by information on the number of new units sold.

The information will be updated four weeks later when the URA releases the full 3rd Quarter 2007 real estate statistics.

The URA said the government will continue to monitor prices closely.

It is currently reviewing the Government Land Sales (GLS) Programme for the first half of 2008 and will announce the details at the end of the year.

More sites for private residential development will be made available next year if the demand continues to remain strong.

Currently, about 43,000 new units of private housing are expected to be completed from the second half of this year to 2010.

URA said about 19,900 units or 46 per cent of these have not yet been sold by developers.

Property consultant Knight Frank, responding to URA’s 3rd quarter flash estimate released on Monday, said that for the whole of 2007, private home prices could increase by between 23 and 32 per cent.

It noted that the Singapore property market is still going strong. This is especially in the private suburban residential property market segment, where average prices only started to rise significantly in 2007.

In the third quarter, the increase in the price level was at almost the same rate as that in the prime areas.

As for the HDB market, it expects the average resale flat prices to rise by 13 per cent to 20 per cent year on year.

CB Richard Ellis said the URA’s preliminary estimate shows the confidence in the residential market was unshaken despite periods of volatility in the worldwide stock markets caused by the sub-prime mortgage problems during the third quarter.

The property consultant expects the upward trend in high-end market to continue as there are more high-end projects to be rolled out in the fourth quarter.

Barring any unforeseen circumstances, it says residential prices may rise by a total of 25 per cent to 30 per cent for the whole year.

In total, the residential price index rose by 22.6 per cent in the first nine months of 2007, following a 10.2 per cent increase in 2006. - CNA/vm/ch

Source : Channel NewsAsia - 01 Oct 2007

Six restoration projects have won the Architectural Heritage Awards this year.

They include the National Museum of Singapore’s $79m makeover as well as two private terrace houses that have been restored for modern-day living while retaining their historical charm.

The National University of Singapore’s Law School on Bukit Timah Road is also one of the winners.

The luxurious hotel suites at the Amara Sanctuary Resort Sentosa are the fifth winner of the award.

Built on top of a small hill to enjoy the natural sea breeze surrounding Sentosa, the hotel suites were transformed from two former military barrack blocks housing British soldiers before and after World War II.

But reminders of the past have been preserved in the transformation, including the former telegraphic posts and even a disused bomb shelter.

Miyake Masaki, concept architect for Amara Sanctuary Partner, Miyake Masaki Associates, said: “The bomb shelter was a unique item and building in Singapore. So I intentionally kept this one… will convert it to a small party space or a wine cave. We have many possibilities there.”

The sixth award winner is the House No. 1 located at the eastern tip of Pulau Ubin.

It is believed to be Singapore’s only remaining authentic Tudor-style house with a fireplace. Its uniqueness fits in nicely with its new function as a visitor centre to Singapore’s nature treasure, Chek Jawa Wetlands.

One of the two private houses that won the heritage award is situated at No.13, Martaban Road.

Once used as a dormitory for orderlies from the nearby Tan Tock Seng Hospital, the two-storey terrace house has been charmingly turned into a chic, contemporary home without sacrificing its humble heritage.

The other private house which won the award is the two-storey Early shophouse at No.62, Niven Road.

The Architectural Heritage Awards were organised by the Urban Redevelopment Authority (URA).

This year’s six winners bring the total number of projects that have received the Awards to 77 since the launch of the Awards in 1995.

The award ceremony was held at the National Museum of Singapore.

As Singapore develops, more is being done to preserve its past. Nearly 230 buildings in the Joo Chiat-Katong area are being considered for gazetting for conservation.

This will add to some 700 buildings in the area that have already been gazetted for conservation.

The majority are terrace and shophouses, including the two blocks at the junction of Everitt Road and Koon Seng Road. Also selected are St Hilda’s and Bethesda (Katong) Church, plus four bungalows.

The URA is currently in consultation with the owners.

National Development Minister Mah Bow Tan said that revitalising the areas is just as important as conserving the buildings.

He said: “Holland Village is not the only village in Singapore, we’ve got a very lovely, quaint little place called Siglap Village. Again, I think, it is developing very nicely. So we will try to improve the roadside facilities at Siglap Village.”

There are also plans to bring life back to Punggol Point, which used to be a chilli crab haven before the restaurants were closed down.

Mr Mah said the waterfront at Punggol Point will be opened up with a new 4.9km promenade which stretches to Sungei Serangoon.

Woodlands, too, will get a promenade.

The projects will be ready by 2010. - CNA/ir

Source : Channel NewsAsia - 01 Oct 2007

Singapore private home prices climbed 8.0 per cent between July and September to their highest level in a decade, early government estimates showed on Monday.

The Urban Redevelopment Authority (URA) said the price index for private residential homes rose to 159.6 for the three months ended September, from 147.8 in the previous three-month period.

The third-quarter gain follows a 8.3 per cent rise in the April-June period and comes after moves by the Government to cool the property market, including redevelopment-charge hikes and the tightening of rules on collective home sales that have seen firms such as CapitaLand and City Developments tear down older buildings to replace them with new projects.

The advance estimates are compiled from transaction prices lodged during the first 10 weeks of the quarter as well as data from new apartments that have been booked.

The URA will release the official price index on Oct 26. — REUTERS

Source : Business Times - 01 Oct 2007

HOME loans shot up at the fastest pace in over two years as more

en bloc sellers bought existing properties and foreigners opted to buy instead of rent.

Home loans in August expanded 2.6 per cent compared to the previous month, and grew 10.7 per cent from the same period a year ago, according to monthly data released by the Monetary Authority of Singapore (MAS).

The 10.7 per cent rate is the fastest in 29 months. This is the first time in over two years that it has entered double-digit territory. July’s growth figure was 8.1 per cent.

Bankers noted that one big factor driving mortgage growth was the growing number of borrowers who, having cashed in on en bloc deals, snapped up replacement properties, especially on the outskirts of the central part of Singapore.

One local banker noted that the average size of mortgages taken out in August dipped, possibly because some borrowers flush with cash from en bloc sales were taking out smaller loans or had downgraded to smaller homes.

Another group of borrowers were foreigners who had previously leased properties but were now opting to buy their own homes, given how high rentals have climbed.

Foreigners ‘are still interested in buying properties in district 9, 10, 11 and the central area’, said Standard Chartered Singapore general manager for mortgage and auto loans Elaine Heng.

But some, such as Chinese and Indian nationals, have shown more interest in district 15 (Katong, Joo Chiat and Amber Road area), as well as other areas on the outskirts of the city, she added.

The amount of home loans held by banks grew by $1.77 billion in August, making up a total of $69.1 billion of mortgages on their books.

Total lending for August grew 10.8 per cent compared to a year ago, as stronger mortgage and credit card growth offset a decline in building and construction loans.

Analysts expect home loans growth to pick up further in the third quarter of this year and beyond. They point to more home buyers on deferred payment schemes taking up loans, as the date of completion of their developments draws near.

But bankers say that the robust home loans growth is currently driven more by secondary market sales of existing properties, which make up about 60 per cent of total transactions.

Stanchart’s Ms Heng said monthly home loans growth could continue at this 10 per cent rate in coming months provided market sentiment remains positive.

But some investors and potential home buyers may adopt a ‘wait-and-see attitude’ from how the United States sub-prime mortgage crisis pans out, she added.

Source : Straits Times - 1 Oct 2007