Against the backdrop of the cooling measures and the uncertain economic climate, crossing the 10,000 mark is commendable and shows the resilience of Singapore's property market.

Owners selling up in the public housing sector to buy in the private market gave a much-needed boost as 10,104 units were sold in 2019 - 14.9 per cent more than the 8,795 transacted in 2018 with 6 of the top 10 selling projects in 2019 being in the outside central region (OCR), with the remainder in the rest of central region (RCR). Usually, demand for OCR region mostly come from HDB upgraders, especially with the HDB resale market pricing bottoming out in 2019, HDB owners will likely sell their HDBs to buy private properties / condos in 2020 as an asset appreciation plan.

Developers sold 2,635 units in the fourth quarter of 2019, which is a 43.5 per cent surge from the 1,836 homes moved in the same quarter in 2018, as shown in Urban Redevelopment Authority's data published on 15 Jan 2020.

Huttons Asia's Kiwi Lim estimated around 30 new private apt / condo launches have been lined up for the first half of 2020, with about half in the core central region (prime districts) and the rest evenly spread between the rest of the central region or city fringes and the outside of central region. Top-selling projects last month included Parc Botannia, with 49 units sold at a median price of $1,345 per square foot (psf); Parc Esta, with 45 units sold at $1,666 psf; and Parc Clematis, with 40 sold at $1,638 psf. Demand for new homes is expected to stay strong with prices rising by 2 to 4 per cent in 2020.

Rents for both non-landed private homes and Housing Board flats rose in December last year from the year before, even as the number of rented condominium and private apartment units, and HDB homes, rose for the whole of 2019.

Flash data from real estate portal SRX Property on 15 Jan 2020 showed that overall condominium and private apartment rents rose 3.7 per cent in December 2019 from a year ago, although rents last month decreased 0.9 per cent from November. Figures in December 2019 are 16.6 per cent below their peak in January 2013. Year on year, non-landed private home rents were up in all areas last month: the prime or core central region rose by 3.9 per cent, the city fringe of rest of central region by 4 per cent, and in the suburbs or outside central region by 3.1 per cent.

For non-landed private home rental transactions, there were 58,236 homes leased for the whole of 2019, 2.3 per cent more than a year ago. In December alone, 1.2 per cent more private non-landed units were rented than the year before. 

​Over in the public housing market, HDB rents in December last year increased 1.3 per cent from a year ago. December's rents also inched up by 0.1 per cent from November. However, compared to the peak in August 2013, December's HDB rents are still down by 14.3 per cent. SRX data showed that while three-room flat rents fell 0.3 per cent in December compared with the year before, rents in other flat types rose: four-room flat rents rose by 2.1 per cent, rents for five-room units rose 1.3 per cent, and that for executive condominium flats rose 1.4 per cent. These price changes come on the back of more flats rented, as the number of HDB flats leased for the whole of last year hit 23,958, 1.9 per cent higher than 2018. Still, last month's overall HDB rental volumes fell 5.3 per cent compared with December 2018.

A condominium's management corporation (MC) has been held liable for the false ceiling of a penthouse collapsing due to the weight of spalling concrete that had accumulated on it and ordered to pay its owner $85,000 in damages, costs and disbursements.

The Strata Titles Board (STB) also ordered the MC of Mandalay Mansion, sited off Balestier Road, to repair the damage in the penthouse at its own cost. In addition, the MC has to hire a contractor registered with the Building and Construction Authority (BCA) to do the work, and a Qualified Person has to prescribe the repairs as well as certify their completion.

The Qualified Person was to be jointly engaged by the MC and the unit owner - at the MC's cost - to prepare a report that assesses the water tightness in the roof of the building and the presence of moisture in the roof slab, as well as recommend remedial works. The report is to be ready by Jan 17 this year.

The incident that led to the case took place in August 2018, when a part of the false ceiling in Madam Edna Kong's second living room collapsed together with the spalling concrete. Three people were injured and the police, an ambulance and the BCA were called. The following month, the BCA issued a notice that required both parties to conduct inspections and report their findings and recommendations to the authority.

Both parties separately appointed engineers to undertake the tasks to comply with the notice.​

The engineer that the unit owner engaged had concluded that the most probable cause of the spalling concrete was the presence of moisture due to ineffective waterproofing of the roof, which was common property and part of the MC's duty to maintain.

The MC blamed the unit owner for the collapse, saying Madam Kong failed to address the issue of spalling concrete from the false ceiling installed by the previous owner, when she carried out works on the penthouse in 2012.

The board, after considering the submissions and hearings, found there was evidence of moisture in the concrete roof slab located immediately above Madam Kong's living room which had the false ceiling. It held the MC liable since the defect was from the roof slab. The STB also said that the MC "had not discharged the burden of showing the collapse of the false ceiling was a result of the false ceiling works in 2012". STB made clear that the MC is required under the law to maintain and repair the roof slab.

​STB also noted that the MC had not provided a complete set of repair and/ or maintenance works carried out on the rooftop for the past five years, save for selective waterproofing works done in 2018. It further ordered the MC to pay $1,200 in STB fees for four arbitration hearings held last year and to reimburse the $500 application fee and costs of transcription services to Madam Kong.

The URA closed two government land tenders on Thursday – for a residential site at Irwell Bank Road, off River Valley Road, as well as a residential site at Jalan Bunga Rampai in the Bartley area. The URA will announce its decision on the award of the tenders at a later date, after the tender bids have been evaluated.
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The 137,632.6 sq ft site at Irwell Bank Road is in prime District 9 and has a maximum gross floor area of 385,379.9 sq ft. The new development is expected to yield about 445 units. The site is close to the upcoming Great World MRT Station on the Thomson-East Coast Line, Great World City shopping mall, and the Orchard Road shopping belt.

This government land sales (GLS) site attracted a total of seven bids. The highest bid of $583.9 million was submitted by CDL Perseus, a subsidiary of City Developments (CDL). This translates to $1,515 psf per plot ratio (ppr). The bid is 4.2% higher than the second highest bid of $560.1 million, which was made jointly by Far East Civil Engineering, Well Oasis, and Sekisui House.

According to Nicholas Mak, head of research and consultancy at ERA Realty, bidders displayed strong confidence in the site’s attributes, despite the fact that there are 16 upcoming new launches in the Core Central Region, with some 2,600 units that could be launched this year.
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“The median transacted prices of 99-year leasehold condo in the vicinity range between $2,680 psf and $2,860 psf. With a land rate of $1,515 psf ppr for the Irwell Bank Road site, the developer could earn a reasonable profit if the future condo on this site is launched at the current condo prices,” says Mak.

The 296-unit One Holland Village Residences, located in a prime district, sold 87 units of the 126 units launched in late November at a median price of $2,606 psf.

Three previously launched projects did well in November include Parc Esta (102 units), Jadescape (60 units) and Parc Botannia (59 units).

Year to date, a total of 9,547 units, excluding ECs, have been sold, out of 10,751 units launched, already exceeding the 8,795 units for the whole of last year. Some market watchers said developer sales could exceed 10,000 units for the whole of 2019.

Real estate professional Kiwi Lim from Huttons Asia believes Singapore's property market will only get better next year in 2020, with the economically damaging US - China trade war dispute showing signs of resolving. The recent phase-one trade deal between the world's 2 largest economies of US and China could de-escalate trade tensions and boost market confidence surely benefit Singapore's economy with capital continuing to enter Singapore’s property market next year as more Chinese capital flows inward towards Singapore from Hong Kong and China.

Market analysts also believe that mortgage rates may remain low or even go lower next year, which would help property buyers and further boost property sales.

Well-located One Holland Village Residences draws healthy sales

A consortium comprising Far East Organization, Sekisui House and Sino Group has sold 92 units at One Holland Village Residences. These units were sold between Nov 21, when preview sales at the 296-unit project began, and 6 pm on Dec 1. The District 10 project's official launch was held on Saturday, Nov 30. The sales outcome is seen as positive, given the relatively high price points. In its release on Sunday evening, Far East said that the average achieved prices for the three components are S$2,600 psf for Sereen, S$2,900 psf for Leven and S$3,200 psf for Quincy Private Residences.

The most popular units are the one- and two-bedroom apartments in Sereen. Ninety per cent of the total 92 units sold were bought by Singaporeans. Permanent residents and foreigners made up the remaining buyers. These include South Koreans, Norwegians and US citizens. Buyers of just under half of the total 92 units sold live in Districts 10 and 11. One Holland Village Residences and a 255-unit serviced residence Quincy House make up the residential component of the mixed-use project, which will also have offices and retail space.

Government holds housing land sales steady amid supply-demand gap

The government is holding land supply for private homes steady for the first half of 2020, which should keep the residential market stable amid a big supply of unsold units. It said that it will keep the supply of private housing units on the confirmed list for the H12020 government land sales (GLS) programme broadly similar to that for H22019. The confirmed list for H12020 has three new sites on it - two private residential sites (including an executive condominium or EC site), and a commercial and residential site. Jointly, they can yield about 1,775 private residential units (including 600 EC units) and 22,000 sq m of gross floor area (GFA) of commercial space. In the confirmed list in H22019, 1,715 private residential units were made available. Huttons Asia's real estate analyst Kiwi Lim believe that the government's move to keep the supply of dwelling units similar to that in H22019 is good news, as it reduced its initial planned supply quantity in order to keep the market stable. Therefore, Kiwi Lim predicts the property market prices in Singapore to see a continuous growth albeit a slower growth instead of taking a dip. 


Two plum sites in latest land sales; Bt Timah plot to revive Jln Anak Bukit vicinity

Two plum sites - Jalan Anak Bukit for mixed development and Tanah Merah Kechil Link residential site - have been offered in the latest Government Land Sales (GLS) programme for 1H 2020. The sites are well located near MRT stations, with the Jalan Anak Buikit site having an integrated bus interchange which will provide amenities for commuters and residents in the area. In line with the 2019 Master Plan to transform the Beauty World area, the government has decided to push out an integrated transport hub site on the 1H 2020 GLS programme, said Lee Sze Teck, director (research), at Huttons Asia. "This is definitely the choicest site of all and will be on the radar of a lot of developers," said Mr Lee.

​Kampong Bugis, River Valley GLS sites up for application

The Urban Redevelopment Authority (URA) has made available for application a white site in Kampong Bugis and a hotel site in River Valley Road on the government's reserve list. The Kampong Bugis site, at the mouth of Kallang River, will be released for sale to a master developer to allow for a comprehensive master plan, development in phases, and the implementation of district-wide "car-lite" initiatives and sustainable urban solutions. The 8.2 hectare (ha) site can potentially yield up to 4,000 housing units and 50,000 sq m of gross floor area (GFA) for complementary uses such as retail, serviced apartments and offices and for community use.

The site has a maximum GFA of 390,000 sq m. The URA has also drawn up an option scheme, which is a flexible-payment scheme and phaseddevelopment approach to enable the chosen developer to phase the site's development according to market demand, and so bear lower upfront costs and risks. The entire precinct is estimated to be completed over 11 to 13 years. The 1.02 ha River Valley site, located above Fort Canning MRT station and situated between Fort Canning Park and the Singapore River, has a maximum GFA of 28,666 sq m and could yield 530 hotel rooms. It has been envisioned as a distinctive waterfront landmark.


HDB resale prices up 0.6% in November

Housing and Development Board (HDB) resale prices have notched their biggest month-on-month (m-o-m) increase this year despite a smaller number changing hands. Resale prices, which through most of 2019 have moved within a -0.2 to +0.2 per cent range, rose 0.6 per cent in November from October. It is the biggest monthly increase since January's 0.5 per cent rise from December 2018. Prices in non-mature estates rose by 2 per cent year-on-year. Those in mature estates fell 2 per cent.

Non-resident deposits in Singapore rise over past few months

Bank deposits here from residents outside Singapore rose to levels not seen since early-2016, preliminary data from the Monetary Authority of Singapore showed. The latest data showed S$49.76 billion from residents outside Singapore were held through the domestic banking unit as at October this year. It includes deposits from persons with registered addresses outside Singapore - including overseas residents - Singaporeans working abroad, and companies with a registered address outside Singapore. Figures compiled by The Business Times showed that such deposits have been rising month to month since April. That makes seven straight sessions of expansion. Foreign-currency deposits have also continued their climb. As at October, they totalled S$15.47 billion - the highest since 1991, which is as far as records went - having risen in each consecutive month since May this year, with the biggest surge recorded in July. Foreign-currency deposits come from both residents and non-residents, and have mostly stayed within the S$7-8 billion range in the past three years.


Singapore business sentiment up slightly in Q1 2020; hiring to drop

Business sentiment among local firms has risen slightly for the first quarter of 2020, according to the latest Business Optimism Index study by the Singapore Commercial Credit Bureau (SCCB). Business sentiment rose to +5.31 percentage points in Q1 2020 from +4.82 percentage points in Q4 2019, with five of six indicators in the positive zone. The services sector was the most optimistic for Q1 2020, with all six indicators in the green. Its selling price indicator jumped to +29.03 percentage points from -12.90 percentage points in Q4 2019. Employment levels was the only indicator that fell, from +12.90 percentage points to +6.56 percentage points. The study polled 200 business owners and senior executives representing major industry sectors across Singapore.

The three confirmed-list sites for next year comprise two pure residential plots - one in Tanah Merah Kechil Link and one executive condominium (EC) site in Yishun Avenue 9 - and one commercial and residential parcel in Jalan Anak Bukit in Bukit Timah. They could yield 1,775 dwelling units and 22,000 sqm of commercial space.

Huttons Asia Real Estate's Kiwi Lim believes that "out of these 2 plots of land (excluding the EC plot), the Tanah Merah Kechil Link site will most probably attract the most number of bids from developers because it is very near to Tanah Merah MRT station and its size of 310 residential units, which makes it easier for smaller developers to bid as well."

The Jalan Anak Bukit site is also very attractive being it proximity to Beauty World MRT station but due to its large size, this project may only appeal to developers with deep pockets. The government is also planning an urban transformation of the Beauty World area.

HSBC home loan for completed properties (floating / fixed)

HSBC offers preferential rates to homebuyers who’re borrowing at least $800,000. However, the basic loan packages available are the same no matter how much you borrow. Completed property buyers can choose between two SIBOR-pegged floating rate home loans with a 2-year lock-in period, a fixed deposit-pegged home loan with a 2-year lock-in period, as well as two fixed-rate home loans with a 2- and 3-year lock-in period respectively.

The SIBOR-pegged interest rates for the packages with the lowest starting interest rates begin at 1M SIBOR + 0.25% to 0.3%, depending on loan package and loan amount. But from the fourth year onwards, they jump to 1M SIBOR + 0.65% to 0.7%. If you choose fixed deposit-pegged interest rates - You’ll basically pay the banks’ 24 month fixed deposit interest rates + a spread of about 2.13%. While these rates might not fluctuate as often as the SIBOR, the bank has the discretion to change them anytime they like. 

The fixed interest rate packages let you lock in a fixed rate for 2 or 3 years, after which you will pay a floating rate. In exchange for the stability you usually end up paying higher interest rates at the start. That being said, HSBC’s fixed interest rates are now advertised as starting from as little as 2%. 

DBS home loan for completed properties (2 years fixed)​

For completed properties, DBS offers several home loan packages and it’s interesting to see how they stack up against each other. The full range of home loans can be split into 2 broad types: Fixed interest rate and floating interest rate. The BUC home loans we talked about earlier are an example of a floating interest rate loan — the interest is pegged to some moving number.

Fixed rate home loans, however, promise to charge you a standard rate e.g. 2% p.a. for a specified number of years, regardless of what happens to DBS’s fixed deposit rates, or the economy.

Traditionally, for fixed rate packages, you pay a little more for the stability and security of a fixed rate. However, this is not the case right now with DBS home loans. Their fixed rate packages are actually really competitive right now.

Special offer: For a 2-year fixed rate home loan, DBS currently offers a special VIP rate of 1.86% p.a interest rate, which is actually lower than that of their floating rate package. Simply watsapp to 9386 4036 with your outstanding loan amount and your property address and we will help arrange for you to enjoy this special VIP rate. 

Meanwhile in Singapore...

• Foreign-currency deposits at both domestic and international banks operating in Singapore rose to a record S$12.8 billion ($9.3 billion) as of August 2019, according to Monetary Authority of Singapore preliminary data. The bulk of the increase took place in July and August, when the figure rose S$5 billion in total, a 64% increase in two months, the data show.  

 

• Property analysts believe that a portion of these recently recently transferred foreign funds may be used for property investments in Singapore. Real Estate Agency, Huttons Asia's Kiwi Lim said "foreigners, not only Hong Kongers - see Singapore as a good alternative safe haven to house their families and park their money because of our stable government, good banking laws, convenient transport and easily available eateries and amenities for comfortable living. Property prices in Singapore is also attractively priced when compared to other major First world financial centres across the globe."  

 

• Two straight quarters of increases in the overall private home price index of the Urban Redevelopment Authority (URA) have sparked a debate on whether this might prompt the authorities to respond with more measures to cool down the property market. Barclays' regional economist Brian Tan thinks the risk of more cooling measures has risen to "a relatively high level", and that the government could act quickly. He said the continued rise in the private home price index suggests that its surprising jump in the second quarter did not come from a distortion or measurement error. Huttons Asia's Kiwi Lim felt that property buyers or investors should not expect the government to remove or lower the ABSD and that now may be a good time to buy.