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proper-t
22-12-10, 08:39
Landed homes' capital values rise faster than apartments, condos


Business Times - 22 Dec 2010

Landed homes' capital values rise faster than apartments, condos
Average cap value of prime resale freehold landed homes up 5.1% in Q4
By KALPANA RASHIWALA AVERAGE cap values of landed homes in Singapore have risen at a faster clip than those of private apartments/condos in the fourth quarter as well as the whole of this year, show latest figures from DTZ.
DTZ's analysis referred only to resale landed and non-landed homes, that is, properties that had already obtained Certificate of Statutory Completion.
'The limited stock of landed homes has made them prized assets, especially those in the prime districts. Landed homes currently account for about 26 per cent of Singapore's total private housing stock (including executive condos), with very limited supply in the pipeline. In contrast, the supply of non-landed private homes is injected at a faster pace via the Government Land Sales programme and collective sales,' says DTZ's Southeast Asia research head Chua Chor Hoon.
The average capital value of prime resale freehold landed homes stood at $1,693 per square foot (psf) on land area in Q4 2010, up 5.1 per cent from the previous quarter, taking the full-year increase to 17 per cent. For suburban freehold landed houses, the average capital value increased 4.3 per cent quarter on quarter to $993 psf in Q4, resulting in a full-year appreciation of 15.5 per cent.
In the non-landed segment, the average cap value for 99-year suburban condos remained unchanged at $660 psf on strata area in Q4 2010, taking the appreciation for the whole of 2010 to 8 per cent. The average price of prime freehold condos increased 0.4 per cent quarter on quarter to $1,520 psf in Q4, also reflecting an 8 per cent full-year price gain.
DTZ said prices in these two segments are hitting resistance, having risen by about 18 per cent and 36 per cent since their respective Q1 2009 troughs following the global financial crisis. The latest cap values are also above the respective Q4 2007 peak levels, it noted.
'Greater prudence is also being exercised on buyers' part following the latest property cooling measures introduced on Aug 30. Buyers are more selective and prefer projects with good location attributes such as proximity to MRT stations, schools or the central business district,' DTZ said.
On the other hand, the Q4 2010 average cap value of freehold luxury condos (above 2,500 sq ft) in the prime districts was $2,630 psf, about 6 per cent shy of the Q4 2007 peak of $2,800 psf. The latest Q4 figure was unchanged from the preceding three months while the full-year 2010 increase was 9.6 per cent.
'With a limited pool of buyers being able to afford these luxurious units which require a large quantum sum, this segment has seen more subdued purchasing activity,' DTZ said.
The firm's executive director (residential) Margaret Thean said: 'Although there's less activity in the high-end segment, we're still seeing strong interest from Chinese and Indian nationals, and increasingly from institutional investors such as funds. They have confidence in future price growth due to Singapore's strong economic fundamentals. As for individual foreigners buying for owner occupation, completed developments near renowned schools particularly interest them.'
Ms Chua predicts that resale prices of 99-year suburban condos are likely to remain flattish next year while those of prime freehold condos could rise by up to 5 per cent if there is more buying from foreigners due to the clampdown on property purchases in their home countries.
She expects prices of landed homes to continue to outperform those of apartments and condos due to their relative scarcity appeal.

Lovelle
22-12-10, 08:42
there are all types of landed prop. some are in odd sizes. foreigner cannot buy most landed.

proper-t
22-12-10, 09:04
there are all types of landed prop. some are in odd sizes. foreigner cannot buy most landed.

Foreigners can buy if they apply for permission from SLA. Also the landed homes in sentosa are open to foreigners.

devilplate
22-12-10, 09:10
i realised increasing trend of turning landed homes into domitories....they rent out 2-3pax per rooms...goto choose wisely which area to buy:2cents:

y ppl start to rent out rooms in landed? isit becoz very low rental if were to rent to a single family?

geylang apts also famous for illegal partitioning for tat reason

Lovelle
22-12-10, 10:50
yeah rental is low and cost is high , worst then mm

it's the game for the really rich to buy for capital appreaciation or own stay

proper-t
22-12-10, 10:58
It all boils down to which areas you are looking at. The writer of the article is referring to landed in prime districts. You rarely see prime landed properties being leased out room by room.

bargain hunter
22-12-10, 12:56
i think partitioning of landed is legal. for e.g. a company buys a semi detached house, chop up the house into 9 rooms and house 36 pple in it, i dun think there is any issue?

when i bring my father in law for viewings, he always ask me whether can turn into dormitory or not. LOL. :cool:

rental is definitely low for landed. rental YIELD is even worse as prices are escalating. most definitely for own stay or long term appreciation.


i realised increasing trend of turning landed homes into domitories....they rent out 2-3pax per rooms...goto choose wisely which area to buy:2cents:

y ppl start to rent out rooms in landed? isit becoz very low rental if were to rent to a single family?

geylang apts also famous for illegal partitioning for tat reason

teddybear
22-12-10, 16:21
Don't think so. I remember there was such cases where a terrace house accomodates something like >30 people and the owner has been stopped by relevant authority from doing so because there is regulation on max of how much space per person in the room and how many persons per toilet (can't remember how many, probably 6-8 I guess) for each person living in the house.


i think partitioning of landed is legal. for e.g. a company buys a semi detached house, chop up the house into 9 rooms and house 36 pple in it, i dun think there is any issue?

when i bring my father in law for viewings, he always ask me whether can turn into dormitory or not. LOL. :cool:

rental is definitely low for landed. rental YIELD is even worse as prices are escalating. most definitely for own stay or long term appreciation.

proud owner
22-12-10, 16:25
Don't think so. I remember there was such cases where a terrace house accomodates something like >30 people and the owner has been stopped by relevant authority from doing so because there is regulation on max of how much space per person in the room and how many persons per toilet (can't remember how many, probably 6-8 I guess) for each person living in the house.

is that right ??


wapiang like that we can complain leow

all SAF camps fail the ratio big time

teddybear
22-12-10, 22:13
SAF different mah. Can you urine in the field / grass? But SAF can in their training field. SAF toilets is like public toilets mah, just like public toilets in RWS, so few and yet so many visitors there! :p
When in SAF, you follow SAF military law, outside you follow civilian law. Wah, so many difference already! SAF don't follow URA law you know? :D


is that right ??


wapiang like that we can complain leow

all SAF camps fail the ratio big time

focus
22-12-10, 22:34
Eh.. how come for the longest time ever.. i remember seeing a lot of workers camping inside landed in Seletar estates.

Why is it illegal to partition?

I mean.. if I have a landed of 4000sqft, I want to build 8 rooms, why cannot? And I want to invite my indian guests over to stay.. why cannot? :p

Think got another article on the landed near Orchard Mount Elizabeth doing the same. It's a "hotel" for indon patients.

bargain hunter
22-12-10, 22:50
yah, that's the whole idea of freehold landed isn't it? there are only guidelines on how the house should look but not the no. of bedrooms.

my father in law's company owns a semi-d which houses the foreign staff of the company. perfectly legal.


Eh.. how come for the longest time ever.. i remember seeing a lot of workers camping inside landed in Seletar estates.

Why is it illegal to partition?

I mean.. if I have a landed of 4000sqft, I want to build 8 rooms, why cannot? And I want to invite my indian guests over to stay.. why cannot? :p

Think got another article on the landed near Orchard Mount Elizabeth doing the same. It's a "hotel" for indon patients.

teddybear
22-12-10, 22:55
No wonder landed have such bad names now! Better don't buy landed else these foreign workers may 1 day be your neighbours! Even if you live in Bungalows they also can be your neighbours! :p


yah, that's the whole idea of freehold landed isn't it? there are only guidelines on how the house should look but not the no. of bedrooms.

my father in law's company owns a semi-d which houses the foreign staff of the company. perfectly legal.

romeo
23-12-10, 21:50
we muz b more accommodating.. embrace diverse nationalities..:p

devilplate
23-12-10, 23:14
is there a limit in no. of rooms for landed?

bargain hunter
24-12-10, 00:35
i don't think so. of course if u r thinking of chopping up into MM and sell, u need approval. suites @ topaz evolved from 2 bunglows. so...


is there a limit in no. of rooms for landed?

devilplate
24-12-10, 00:55
i don't think so. of course if u r thinking of chopping up into MM and sell, u need approval. suites @ topaz evolved from 2 bunglows. so...

i m not aspired to b a developer

Duku
24-12-10, 06:43
yah, that's the whole idea of freehold landed isn't it? there are only guidelines on how the house should look but not the no. of bedrooms.

my father in law's company owns a semi-d which houses the foreign staff of the company. perfectly legal.

Actually there are guidelines
Refer to BCA

To prevent overcrowding and disamenity to the neighbouring residents, the maximum allowable occupancy of a residential unit (inclusive of the owner if he is living within the premises) shall be based on 10 sqm per occupant subject to a maximum cap of 8 occupants. This occupancy guideline does not apply if the entire unit is occupied by a family with no subletting involved

bullman
24-12-10, 08:42
Actually there are guidelines
Refer to BCA

To prevent overcrowding and disamenity to the neighbouring residents, the maximum allowable occupancy of a residential unit (inclusive of the owner if he is living within the premises) shall be based on 10 sqm per occupant subject to a maximum cap of 8 occupants. This occupancy guideline does not apply if the entire unit is occupied by a family with no subletting involved

Welcome to the forum buddy.

This is very interesting. Can you kindly provide the bca link to this?
Thanks

Duku
24-12-10, 13:08
Welcome to the forum buddy.

This is very interesting. Can you kindly provide the bca link to this?
Thanks

http://www.ura.gov.sg/homeowner/landtitled-buyproperty.htm

Merry Christmas!

devilplate
24-12-10, 13:10
http://www.ura.gov.sg/homeowner/landtitled-buyproperty.htm

Merry Christmas!

yo MrDuku...WC and merry xmas:cheers6: