Newly released sites at Toa Payoh and Queenstown could yield over 1,000 housing units, Private residential property price decreases one per cent in Q1 2015, Tenants pull the strings as rents dip in the private residential market, Resale prices of non-landed private houses climb 0.2 per cent, More HDB flats allowed for subletting
Newly released sites at Toa Payoh and Queenstown could yield over 1,000 housing units
The Housing & Development Board (HDB) released two residential sites in April, at Lorong 4 and 6 at Toa Payoh and at Queenstown’s Dundee Road. The release is under H1 2015 of the Government Land Sales (GLS) programme. The two sites can yield approximately 1,180 residential units. The closing dates for the tender are 18 June for Toa Payoh and 23 June for Dundee Road.
Private residential property price decreases one per cent in Q1 2015
The Urban Redevelopment Authority (URA) announced on 24 April that private residential property prices have dropped by one per cent on-quarter, its sixth straight quarterly decline. Singapore Business Review reported that Jones Lang LaSalle (JLL) noted a 5.9 per cent drop from the peak in prices in Q3 2013.
The fall was across all segments. Non-landed properties dropped 0.4 per cent in the Core Central Region (CCR), while the Rest of Central Region (RCR) area and Outside Central Region (OCR) saw larger falls, at 1.7 per cent and 1.1 per cent respectively.
326 out of 378 launched Executive Condominiums (ECs) were sold in Q1 this year, much lower than the 1,113 units sold in the previous quarter. Fewer private residential units (excluding ECs) were cleared this year, with 1,311 units sold, slightly less than Q4’s 1,376 units.
Tenants pull the strings as rents dip in the private residential market
Data released by the URA stated that rents for private residential properties have fallen 1.7 per cent on a quarterly basis, following a one per cent decline in Q4 last year. Rents are expected to dip further this year on the back of the booming oversupply in the housing market and slowing expatriate arrivals.
The largest fall in rentals was recorded in prime housing areas such as the financial district and Orchard Road. A study done by Savills Research and Consultancy tracked a 5.8 per cent reduction in the average monthly rent of high-end condominiums during Q4 2014, dropping to S$4.57 ($3) per square foot.
Mr Ong Choon Fah, Chief Operating Officer of DTZ, told The Edge that owners wishing to sell their units are pressured to “make it attractive” for potential buyers, many of whom are waiting for property cooling measures to be abolished or tweaked. Some buyers are diverting money to distressed properties, while some are buying certain projects in popular locations, or those with easy access to public transport.
Sales in the number of distressed properties are also increasing, with units being sold as low as 14.9 per cent off the purchase prices.
Resale prices of non-landed private houses climb 0.2 per cent
The Singapore Residential Price Index (SRPI) flash estimates by the National University of Singapore’s Institute of Real Estate Studies brought some good news to the market, with resale prices of completed, non-landed private homes gaining 0.2 per cent in March from the previous month. This is a turnaround from a 0.2 per cent drop in February.
Home prices in the central region (excluding small units) inched up 0.1 per cent after dropping 0.7 per cent in February, while those in the non-central region increased by 0.3 per cent. Mr Eugene Lim, Key Executive Officer at real estate agency ERA noted in TODAY that prices are expected to stay subdued due to the lack of change in government policy.
More HDB flats allowed for subletting
385 applications for subletting Housing and Development Board (HDB) flats were approved between January and March this year, a marginal increase of 0.2 per cent from Q4 2014. As of March 31, 48,338 flats have been leased, an improvement from the 48,120 last quarter.
Analysts who spoke to TODAY credited the increase to more Singaporeans renting out their flats instead of selling, due to shrinking resale prices. The Resale Price Index dropped one per cent from the last quarter to 135.6 this year. Resale transactions also dwindled 10.8 per cent to 4,135 cases quarter-on-quarter.