Private home subsales rise 10.6% in Q2

Private home subsales rise 10.6% in Q2
With speculators out, supply chain is more efficient now: Savills

By KALPANA RASHIWALA
THE number of private homes sold in the subsale market, which is often used as a proxy of speculative activity, rose 10.6 per cent quarter on quarter to 712 units in the second quarter of this year, but this pace of increase was slower than a nearly 27 per cent jump reflected in the 4,562 new private homes sold by developers, according to Savills' analysis.
http://www.businesstimes.com.sg/mnt/...-22/krss22.jpg
'With speculators weeded out from the market after the higher seller's stamp duty (SSD) rates introduced in January, more genuine home buyers now have direct access to choice units from developers in the primary market. So the supply chain has become more efficient with the 'middlemen' or speculators cut out', said Savills Singapore research head Alan Cheong.

'The full impact of the January 2011 anti-speculation measures will need time to work their way through the system since the SSD would affect only those who bought a private home from Jan 14 and sell it within four years of purchase,' he added.

The SSD rates are 16, 12, 8 and 4 per cent respectively for those who sell their properties in the first, second, third and fourth year of purchase respectively.

Those who had, a few years earlier, picked up private homes which are now still under construction, would generally still find it worthwhile to divest them, given the recovery in property values since the global financial crisis, say property consultants. This is expected to continue to contribute to a steady stream of subsale activity.
'This will especially be the case for projects which are close to or have just been completed since buying interest in such developments is typically higher among those who would like to purchase a property that they can move into or rent out immediately,' says Ong Choon Fah, DTZ's COO and head of consulting and research, SE Asia.

Subsales refer to secondary-market deals in pro-jects that have yet to receive a Certificate of Statutory Completion (CSC).

Resales, which are also secondary-market transactions but involve projects with CSC, rose 17.5 per cent quarter on quarter to 4,144 units in Q2 2011, shows Savills' analysis of caveats captured by URA Realis.
The subsale and resale figures were based on caveats lodged (excluding en bloc sales) while new home sales by developers were based on developers' submissions to Urban Redevelopment Authority's surveys. The latest Q2 developer sales figure was compiled as the sum of monthly sales from April to June 2011; however, the final tally to be released by URA today may be lower as it will take into account units returned by buyers.

Savills' analysis covered landed and non-landed properties, excluding executive condos, which are a hybrid of public and private housing.
The study showed that the most popular non-landed project in the subsale market in Q2 2011 was Livia in Pasir Ris (29 subsales), followed by 10 Shelford (24 subsales), The Clift along McCallum Street (22 units), Clover by The Park in Bishan (21 units) and Double Bay Residences in Simei (21 units).
The Clift received Temporary Occupation Permit (TOP) in Q1 this year while Livia and Clover by The Park clinched the same approval this month. Typically, CSC for a project can be obtained one to six months after it has received TOP.

District 12 (which includes Balestier and Toa Payoh) was the most popular subsale district among non-landed homes in Q2, followed by prime districts 9 and 11.

Among non-landed resale transactions, the most sought-after districts were 15 (which includes Katong, Telok Kurau, East Coast Road and Siglap), 10 and 16.

In the landed resale segment, District 19 (which includes Upper Serangoon and Hougang) topped the chart, followed by District 15 and 16. The last includes Upper East Coast, Bedok and part of Upper Changi Road East.

Interesting to note that despite being the most popular district for subsale in Q2 this year, no project in D12 (balestier and toa payoh) subsaled above 20 units each.

I think Seletar Estate is a better bet compare to Serangoon Garden. With CTE Express just 4 mins away, Aerospace Industrial just across the road, The Greenwich Holland Village Shopping Centre coming soon and the new Fernvale Town Centre coming up in next 2 years !

Quote:

---

Originally Posted by Jadey

more genuine home buyers now have direct access to choice units from developers in the primary market.

---

This is one of the few good things from the many CMs introduced! :D

http://www.businesstimes.com.sg/sub/...64740,00.html?

Published July 22, 2011

Private home subsales rise 10.6% in Q2

With speculators out, supply chain is more efficient now: Savills

By KALPANA RASHIWALA


THE number of private homes sold in the subsale market, which is often used as a proxy of speculative activity, rose 10.6 per cent quarter on quarter to 712 units in the second quarter of this year, but this pace of increase was slower than a nearly 27 per cent jump reflected in the 4,562 new private homes sold by developers, according to Savills' analysis.

'With speculators weeded out from the market after the higher seller's stamp duty (SSD) rates introduced in January, more genuine home buyers now have direct access to choice units from developers in the primary market. So the supply chain has become more efficient with the 'middlemen' or speculators cut out', said Savills Singapore research head Alan Cheong.

'The full impact of the January 2011 anti-speculation measures will need time to work their way through the system since the SSD would affect only those who bought a private home from Jan 14 and sell it within four years of purchase,' he added.

The SSD rates are 16, 12, 8 and 4 per cent respectively for those who sell their properties in the first, second, third and fourth year of purchase respectively.

Those who had, a few years earlier, picked up private homes which are now still under construction, would generally still find it worthwhile to divest them, given the recovery in property values since the global financial crisis, say property consultants. This is expected to continue to contribute to a steady stream of subsale activity.

'This will especially be the case for projects which are close to or have just been completed since buying interest in such developments is typically higher among those who would like to purchase a property that they can move into or rent out immediately,' says Ong Choon Fah, DTZ's COO and head of consulting and research, SE Asia.

Subsales refer to secondary-market deals in pro-jects that have yet to receive a Certificate of Statutory Completion (CSC).

Resales, which are also secondary-market transactions but involve projects with CSC, rose 17.5 per cent quarter on quarter to 4,144 units in Q2 2011, shows Savills' analysis of caveats captured by URA Realis.

The subsale and resale figures were based on caveats lodged (excluding en bloc sales) while new home sales by developers were based on developers' submissions to Urban Redevelopment Authority's surveys. The latest Q2 developer sales figure was compiled as the sum of monthly sales from April to June 2011; however, the final tally to be released by URA today may be lower as it will take into account units returned by buyers.

Savills' analysis covered landed and non-landed properties, excluding executive condos, which are a hybrid of public and private housing.

The study showed that the most popular non-landed project in the subsale market in Q2 2011 was Livia in Pasir Ris (29 subsales), followed by 10 Shelford (24 subsales), The Clift along McCallum Street (22 units), Clover by The Park in Bishan (21 units) and Double Bay Residences in Simei (21 units).

The Clift received Temporary Occupation Permit (TOP) in Q1 this year while Livia and Clover by The Park clinched the same approval this month. Typically, CSC for a project can be obtained one to six months after it has received TOP.

District 12 (which includes Balestier and Toa Payoh) was the most popular subsale district among non-landed homes in Q2, followed by prime districts 9 and 11.

Among non-landed resale transactions, the most sought-after districts were 15 (which includes Katong, Telok Kurau, East Coast Road and Siglap), 10 and 16.

In the landed resale segment, District 19 (which includes Upper Serangoon and Hougang) topped the chart, followed by District 15 and 16. The last includes Upper East Coast, Bedok and part of Upper Changi Road East.

http://www.businesstimes.com.sg/mnt/...-22/krss22.jpg

http://www.straitstimes.com/Money/St...ry_693680.html

Jul 23, 2011

Private home prices rise but at slower pace

By Esther Teo, Property Reporter


PRIVATE home prices in Singapore have inched up to a new record high though the once rapid rate of increase has again moderated as buyers turn cautious.

Analysts say their caution is the result of higher asking prices, uncertainty over possible new government property measures and a slowing economy.

Prices in the sector rose 2 per cent in the April to June quarter, slowing from 2.2 per cent in the previous quarter, according to Urban Redevelopment Authority figures released yesterday.

It was the seventh straight quarter of moderation. Landed property posted the biggest gains of 3.6 per cent.

This overall 2 per cent gain is, however, a slight rise from the 1.9 per cent flash estimate released earlier this month, indicating that sales recorded in the last two weeks of the quarter continued to show some price increases.

The slowing rises suggest a stabilised property market, analysts say, with runaway prices unlikely now that the number of new private home sales has fallen in recent months as well.

Total sales volume in the primary and secondary - or resale - market has also fallen 18 per cent in the six months to June from the same period last year.

'Home buyers have begun to resist the higher asking prices by sellers and they have also become more selective. There are some uncertainties as they await clearer housing policy directions from the Government,' said ERA Realty key executive Eugene Lim.

Tighter lending rules and sellers' stamp duty of up to 16 per cent have helped weed out speculative purchases.

The Housing Board's move to ramp up new flat supply has also helped calm demand and thus prices, said PropNex chief executive Mohamed Ismail.

Across the various segments - whether landed homes or condos, on the city fringe or suburban areas - prices largely slowed their pace of increase as well.

One exception was homes in the city centre, which saw values gain 1.6 per cent in the second quarter - quicker than the 1.1 per cent rise in the previous quarter.

The outlook for home hunters is positive, with experts predicting a continued price slowdown for the rest of the year.

They cautioned that while the residential market is still driven by low interest rates and ample funds, sentiment will be tempered by the record home supply in the pipeline, tepid global economic conditions and expected housing policy shifts.

PropNex's Mr Ismail said that data from his firm's transactions showed median per sq ft (psf) prices already falling across the island this month.

He expects prices to edge up a further 3 per cent to 4 per cent in the second half of the year.

Mr Png Poh Soon, Knight Frank's head of research and consultancy, expects an 8 per cent to 10 per cent jump in prices for the full year, significantly slower than the 18 per cent advance in prices last year, though still healthy by any standards.

Developers, however, may find themselves in a delicate situation in the light of the general slowdown and uncertain market sentiment, he added.

'Good quality developments will continue to attract demand, but they must be priced attractively to entice home buyers especially with the prospects of a quiet Hungry Ghost Month looming ahead.'

Private home rental growth also held steady with a slight increase of 1.3 per cent - marginally faster than the 1.2 per cent uptick in the previous quarter - led by rental growths in the semi-detached and terraced landed housing segments.

The broad-based softening also affected other property sectors, with the office and industrial segments mostly taking a hit. Gains in rents and prices mainly held steady or moderated quarter-on-quarter.

Cushman & Wakefield senior manager of Asia-Pacific research Ong Kah Seng said this reflected the effect of an economic slowdown and the increased price sensitivity of tenants as business costs rose.

Office rents, for example, inched up 1.5 per cent from 5.4 per cent the three months before, while prices rose at a slower pace of 3.6 per cent from 4.9 per cent.

'The office property sector is expected to achieve continued leasing and rental growth momentum, although (tenants) may be increasingly realistic in the face of modest economic growth, increased business costs and more space options,' Mr Ong added.

Price growth for industrial space eased to 5.5 per cent from 8.3 per cent, while rents slowed to 5.7 per cent from 6.3 per cent.

Shop space values, however, gathered pace to 1.1 per cent from 0.5 per cent in the first quarter as rents held steady with a 0.8 per cent increase.

[email protected]