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Who sinks or swims in a tumultuous residential market?


By Feily Sofian / The Edge Property | December 28, 2015 10:00 AM MYT
Tags: Year in reviewresidentialNon-landedHDB
The residential market in 2015 will likely be remembered for its low transaction volume, soft rental market and rising mortgagee sales. However, 2015 had its bright moments and may be better summed up as a year of divergence, where prices headed in different directions to seek a new equilibrium.

Developers sold 7,144 private homes between January and November this year. With no new project being launched in December, the full-year tally will likely be similar to last year’s 7,316 units. In comparison, developers sold almost 15,000 units in 2013. Notwithstanding this, several launches such as High Park Residences and North Park Residences witnessed brisk sales. In November, meanwhile, MCC Land sold 277 of the 350 units launched at The Poiz Residences at a median price of $1,440 psf.

Another positive highlight in 2015 was the pickup in secondary market transactions with 5,967 private homes changing hands between January and November, compared with 5,515 in 2014. The high-end segment led the rebound, clocking in 17% more caveats to date than in 2014.

With a median resale price of $1,667 psf, prices of high-end non-landed homes are at attractive levels, comparable to prices of new projects in the city fringe and at a narrow premium to new mass-market projects. Goodwood Residence chalked up the most number of resale transactions in 2015, with 31 units changing hands at an average price of $2,371 psf. Other actively transacted projects were The Sail@ Marina Bay (26 transactions at $1,889 psf), d’Leedon (18 transactions at $1,670 psf), Urban Resort Condominium (17 transactions at $2,274 psf) and Aspen Heights (16 transactions at $1,484 psf).

Here’s more of what’s hot and what’s not in 2015:



Bulletproof segment

Good class bungalows have historically proven to be a bulletproof segment. Although that market has been rather sleepy, prices have remained buoyant. Excluding land plots that are less than 1,400 sqm, the minimum area stipulated by the Urban Redevelopment Authority for GCBs, the average transacted price held firm at $1,392 psf from January to November 2015, on par with 2014 prices, which averaged $1,399 psf.

Despite market doldrums, a bungalow at 35 Ridout Road was sold at a historical high price of $91.7 million in May this year, which works out to $1,251 psf over a land area of 73,281 sq ft. This year also saw one transaction above $40 million for a bungalow at 45 Belmont Road, or$1,420 psf over its land area. The latest big-ticket transaction was for a bungalow at 16 Cable Road that changed hands for $22 million in November, or $1,293 psf of its land area.

Including land plots which are less than 1,400 sqm, 28 bungalows in GCB designated areas have changed hands between January and November this year, leading to a total transaction value of $618.5 million. In comparison, there were 25 such transactions in 2014 with a total value of $567.8 million.



Five HDB towns bucked market trends


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