Winning bid for Sturdee Road residential site exceeds market expectations, Developers to implement lower prices and larger units to attract more buyers, Highest number of private property purchases by PR; District 1 most popular with SEA buyers, More residential areas receive upgrading and makeover, Sing dollar appreciation to boost overseas property buying, Higher mortgages looming with increasing SIBOR
Winning bid for Sturdee Road residential site exceeds market expectations
A 65,784sqf site on Sturdee Road, in the vicinity of Farrer Park drew a top bid of S$181.2 million, or S$786.92 per sqf per plot ratio (psf ppr). The bid by SL Capital 1 was 7.3 per cent higher than Singland Homes, the next top bidder that put in a bid of $168.8 million, or S$733.11 psf ppr. The top bids exceeded market expectations of about S$700 psf ppr owing to its location, which is near Farrer Park MRT and City Square Mall. Mr Nicholas Mak, Executive Director of Research and Consultancy at SLP International Property Consultants, said “Furthermore, this site could yield about 270 units, which is relatively small in number, resulting in a lower amount of funds needed to develop it. Hence, the risk would also be lower and it would be attractive to a wider range of developers”.
Developers to implement lower prices and larger units to attract more buyers
A large volume of unsold units and more in the pipeline are pressuring developers to attract more buyers. Median prices of units at Bellewaters in Sengkang were priced at S$774 per square foot (psf), slightly lower than the S$813 psf it was originally going for last year. Bartley’s Botanique, situated near Bartley MRT, priced over 70 per cent of its units below $1 million. Prices of one-bedroom units are from $598,000 while prices of two-bedroom units are from $798,000. Amber Skye in Katong offered other options such as larger units that are “perfect for multi-generational living”, including two six-bedroom units, 11 four-bedders and 30 three-bedders.
Highest number of private property purchases by PR; District 1 most popular with SEA buyers
Private property purchases by permanent residents (PRs) increased to an all-time high of 18 per cent in 2014, the highest since 1995. DTZ noted that the leap in numbers could be due to the three-year wait period for new Singapore PRs before they are eligible to buy a resale public flat. In the same report, DTZ noted that District 1 drew many Southeast Asian buyers, with Marina One Residences being a top pick.
More residential areas receive upgrading and makeover
Many places are receiving a refreshed façade, such as areas around Pasir Ris, Tampines, Choa Chua Kang and Kranji. Part of the makeovers will include new lookout decks, upgraded footpaths, increased recreational spaces and even rain gardens which retain and treat rainwater.
Sing dollar appreciation to boost overseas property buying
The Singapore dollar that saw an appreciation against the Australian dollar, Euro and Yen could result in a boost in overseas property buying. Mr Terence Tang, Managing Director of Capital Markets & Investment Services—Asia at Colliers International noted, “Singapore investors will likely be buying an income-producing asset in a key gateway city that has a net yield of around five per cent, with tenancies for as long as they can get. This serves as bond-like investment instrument for them.”
Higher mortgages looming with increasing SIBOR
Higher mortgage rates are expected as the three-month Singapore interbank offered rate (SIBOR) increased to its highest in six years at 1.00129 per cent on Tuesday. A number of home loans packages such as that by Oversea-Chinese Banking Corp (OCBC) are tied to SIBOR. The OCBC loan comes with an interest rate that is 0.85 percentage point above three-month SIBOR, which increases when SIBOR rises.