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Private residential market proved resilient and immune to the economic fallout of the Covid-19 pandemic - The Straits Times
While Singapore enter into recession in 2020, the private residential market in this land scarce island proved resilient and seem immune to the economic fallout of the Covid-19 pandemic.
In 2020, transaction volumes in both the primary and secondary sales market accounted for 9,982 units and 10,927 units respectively, edging out the new sales volume of 9,912 units and the resale total of 9,238 units in 2019. It is surprising that a year characterised by a pandemic-induced recession would perform better when compared against what would largely be considered as an ordinary one.
The rise in demand is partially spurred by Covid as we see an increased genuine need for young professionals both singles or couples to have their own private space instead of staying with their parents as Singapore entered into circuit breaker and adopted work from home measures - meaning more face time with extended family members at home.
In 2020, transaction volumes in both the primary and secondary sales market accounted for 9,982 units and 10,927 units respectively, edging out the new sales volume of 9,912 units and the resale total of 9,238 units in 2019. It is surprising that a year characterised by a pandemic-induced recession would perform better when compared against what would largely be considered as an ordinary one.
The rise in demand is partially spurred by Covid as we see an increased genuine need for young professionals both singles or couples to have their own private space instead of staying with their parents as Singapore entered into circuit breaker and adopted work from home measures - meaning more face time with extended family members at home.
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The increase domestic demand is real and represents a genuine need for local home buyers as we see a huge majority of domestic buyers as foreigners are largely left out of our borders during this Covid pandemic. Property analysts believe this spike in domestic demand was not anticipated by both the government and developers resulting in an imbalance of supply and demand as the supply could not meet this surge in domestic demand.
Singapore's residential enbloc land sales market saw a bit of action in the last quarter of 2020. Listed property developer Roxy-Pacific Holdings acquired 15 terraced houses in the Guillemard area for $93 million in November 2020. This makes it the largest collective sale in 2020 and brings the total number of reported collective sales this year to four, which is almost similar to 2019.
Singapore's residential enbloc land sales market saw a bit of action in the last quarter of 2020. Listed property developer Roxy-Pacific Holdings acquired 15 terraced houses in the Guillemard area for $93 million in November 2020. This makes it the largest collective sale in 2020 and brings the total number of reported collective sales this year to four, which is almost similar to 2019.
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Only five private residential and two executive condominium (EC) sites were awarded under the Government Land Sales (GLS) Programme in 2020, making for a mere total of about 2,625 future units. Compared to the seven private residential sites and two EC sites that were awarded in 2019, the likely numbers of units that can be developed from GLS sites bought in 2020 is 37.4% less than the potential of 4,195 units from GLS sites sold in 2019.
The first government land sales (GLS) tender last year at Tanah Merah Kechil Link after the lifting of the “circuit breaker” drew a whopping 15 bidders and a top bid of $930 psf per plot ratio (ppr). It was awarded to MCC Land on Nov 13 2020.
The first government land sales (GLS) tender last year at Tanah Merah Kechil Link after the lifting of the “circuit breaker” drew a whopping 15 bidders and a top bid of $930 psf per plot ratio (ppr). It was awarded to MCC Land on Nov 13 2020.
Putting aside the two-envelope system for the Holland Road GLS, the market has not seen such intense participation in a GLS tender since July 2017 where 15 bidders vied for a site at Woodleigh Lane. This is also the highest land bid for a GLS site in the Outside Central Region (OCR). It could be the palatable size and quantum, but the sheer number of bidders showed the hunger for land.
Most mass market projects launched in 2018 & 2019 have moved more than 60% of their units to date. This clearly shows the strong underlying de- mand for properties as people aspire to have a different lifestyle.
Kiwi Lim from Huttons Asia suggest that if the government does not release more land for Government Land Sales (GLS) for mass market condos, the supply for mass market new launch condo projects next year will offer very limited choices leading to higher resale transactions and a rise in resale prices.
Most mass market projects launched in 2018 & 2019 have moved more than 60% of their units to date. This clearly shows the strong underlying de- mand for properties as people aspire to have a different lifestyle.
Kiwi Lim from Huttons Asia suggest that if the government does not release more land for Government Land Sales (GLS) for mass market condos, the supply for mass market new launch condo projects next year will offer very limited choices leading to higher resale transactions and a rise in resale prices.
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The Ryse Residences at Pasir Ris Central By Reputable Developers Allgreen & Kerry Properties. Scan for Invite to Soft Launch. Click to Visit Website to Download Floor Plans, Showflat Location, Enjoy Direct Developer VIP Price
Talk is rife that policy tweaks could be on the horizon to cool Singapore's buoyant residential segment, as the government keeps an eye on the real estate market. Suggestions from consultants, analysts and agencies varied widely, but a common theme was the expectation that additional measures will target investors rather than first-time homebuyers and upgraders.
That follows Deputy Prime Minister Heng Swee Keat's comments in January, when he said the property market must remain stable so young Singaporeans can own their homes. Among the ideas are higher stamp duties and tighter loan limits for subsequent properties and foreigners.
One idea floated is to either set a minimum size for each unit or again increase the average minimum size for new developments. Kiwi Lim - real estate advisor from Huttons Asia believe that this would effectively raise the quantum amount that buyers need to pay for new condo units.
The intended effect of increasing the average minimum size for upcoming new condo projects is to bump up home sizes for occupiers, while building fewer shoebox apartments that typically appeal to investors due to the lower quantums. The first time the average size was increased, it raised quantums (absolute prices) for smaller units as many buyers are happy to forgo some space for an upgraded lifestyle.
Some observers do not expect cooling measures - at least not till the second half of this year. The performance of the different segments of the property market was not uniform either. For instance, though the rental market is showing initial signs of bottoming out, it is still not yet out of the woods.
That follows Deputy Prime Minister Heng Swee Keat's comments in January, when he said the property market must remain stable so young Singaporeans can own their homes. Among the ideas are higher stamp duties and tighter loan limits for subsequent properties and foreigners.
One idea floated is to either set a minimum size for each unit or again increase the average minimum size for new developments. Kiwi Lim - real estate advisor from Huttons Asia believe that this would effectively raise the quantum amount that buyers need to pay for new condo units.
The intended effect of increasing the average minimum size for upcoming new condo projects is to bump up home sizes for occupiers, while building fewer shoebox apartments that typically appeal to investors due to the lower quantums. The first time the average size was increased, it raised quantums (absolute prices) for smaller units as many buyers are happy to forgo some space for an upgraded lifestyle.
Some observers do not expect cooling measures - at least not till the second half of this year. The performance of the different segments of the property market was not uniform either. For instance, though the rental market is showing initial signs of bottoming out, it is still not yet out of the woods.
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Sharp Rise in Single Person Households
Single-person households living in Housing and Development Board (HDB) flats are becoming far more common as a result of Singapore’s ageing population and a rule change in 2013 that allowed singles aged 35 and above to buy new two-room flats. This group — which could include live-alone seniors, singles, widows and divorcees — made up about one in eight HDB households, or 11.9 per cent, in 2018.In 2003, it was about one in 14 households, or 7.1 per cent. This was one of the key findings of HDB's latest sample household survey results, which were released on Feb 10.
Mr Lee Sze Teck, head of research at property agency Huttons Asia, said that HDB will need to keep abreast of this demographic change and renew its housing provision accordingly, pointing out that the number of singles had jumped by almost 300,000 from 2000 to 2019. This has resulted in the number of one-person households almost tripling, from 75,400 in 2000 to 208,000 in 2019, he added.
On the finding that fewer citizens and permanent residents are living in HDB flats, Mr Lee said that it is reflective of rising income and affluence. Median monthly household income has more than doubled from S$4,398 in 2000 to S$9,198 last year, he noted. “Coupled with a desire to change their lifestyle, some families and singles have opted to move to a private condominium. This has supported the healthy demand in the private residential market.
Single-person households living in Housing and Development Board (HDB) flats are becoming far more common as a result of Singapore’s ageing population and a rule change in 2013 that allowed singles aged 35 and above to buy new two-room flats. This group — which could include live-alone seniors, singles, widows and divorcees — made up about one in eight HDB households, or 11.9 per cent, in 2018.In 2003, it was about one in 14 households, or 7.1 per cent. This was one of the key findings of HDB's latest sample household survey results, which were released on Feb 10.
Mr Lee Sze Teck, head of research at property agency Huttons Asia, said that HDB will need to keep abreast of this demographic change and renew its housing provision accordingly, pointing out that the number of singles had jumped by almost 300,000 from 2000 to 2019. This has resulted in the number of one-person households almost tripling, from 75,400 in 2000 to 208,000 in 2019, he added.
On the finding that fewer citizens and permanent residents are living in HDB flats, Mr Lee said that it is reflective of rising income and affluence. Median monthly household income has more than doubled from S$4,398 in 2000 to S$9,198 last year, he noted. “Coupled with a desire to change their lifestyle, some families and singles have opted to move to a private condominium. This has supported the healthy demand in the private residential market.
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The Housing Board resale market started 2021 on a strong footing as prices rose for the seventh consecutive month last month, propped up by the continuing strong demand for public housing
Last month, a total of 13 Housing Board resale flats changed hands for at least $1 million each. The highest transacted price was $1.21 million for a five-room Design, Build and Sell Scheme unit at Natura Loft in Bishan Street 24.
Other Housing Board resale flats sold for at least $1 million in Jan 2021 were located across various heartlands of Singapore in:
Other Housing Board resale flats sold for at least $1 million in Jan 2021 were located across various heartlands of Singapore in:
- Tanjong Pagar - Cantonment Road
- Toa Payoh - Lorong 1A
- Clementi - Avenue 3
- Ghim Moh - Ghim Moh Link
- Commonwealth - Commonwealth Drive
- Bishan - Bishan Street 12
- Bukit Merah - Bukit Merah View
- Serangoon - Serangoon Avenue 2
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According to flash data from real estate portal SRX released yesterday, resale prices rose by 1.7 per cent last month, compared with last December.
The overall price increase was 7.7 per cent compared with last year, but still 7 per cent lower than the peak in April 2013. A total of 2,501 HDB resale flats changed hands last month, a marginal 0.5 per cent increase from last December, but the resale volume was 30.3 per cent higher than in January last year.
The bulk of the sales volume came from four-room flats, which made up 41.7 per cent of all sales transactions, followed by five-room flats (26.2 per cent), three-room flats (21.5 per cent) and executive flats (9 per cent), with two-room flats making up the remainder.
The strong demand for public housing has continued to prop up resale prices and is expected to be sustained in the coming months, with prices rising by 2 per cent to 5 per cent this year, said Ms Christine Sun, OrangeTee & Tie's senior vice-president of research and analytics.
The overall price increase was 7.7 per cent compared with last year, but still 7 per cent lower than the peak in April 2013. A total of 2,501 HDB resale flats changed hands last month, a marginal 0.5 per cent increase from last December, but the resale volume was 30.3 per cent higher than in January last year.
The bulk of the sales volume came from four-room flats, which made up 41.7 per cent of all sales transactions, followed by five-room flats (26.2 per cent), three-room flats (21.5 per cent) and executive flats (9 per cent), with two-room flats making up the remainder.
The strong demand for public housing has continued to prop up resale prices and is expected to be sustained in the coming months, with prices rising by 2 per cent to 5 per cent this year, said Ms Christine Sun, OrangeTee & Tie's senior vice-president of research and analytics.
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At the moment, it seems demand for HDB resale flats seems to be outpacing supply now, as evident by the high subscription rates of recent Build-To-Order launches and increasing resale transactions.
The rising price index indicated that the typical sellers are asking for higher prices and the buyers are willing to pay the higher prices. In fact some HDB resale flats were sold above their valuation amounts, which meant that buyers paid cash to the seller for the difference between the transaction price and the valuation amount, adding that such cash-over-valuation transactions would accelerate the rise in HDB resale prices.
Kiwi Lim from Huttons Asia believe that this domestic demand for housing may be spurred on by Covid as families are now choosing to pay a premium to live in bigger flats with a great view and convenient location as they are spending much more time at home now due to the Covid pandemic. There were a total of 82 million-dollar flats transacted during the start of the Covid pandemic last year in 2020, eclipsing 2018’s record of 71 such deals. Kiwi Lim believe this year could see another record number of million dollar flats transacted in the market.
The rising price index indicated that the typical sellers are asking for higher prices and the buyers are willing to pay the higher prices. In fact some HDB resale flats were sold above their valuation amounts, which meant that buyers paid cash to the seller for the difference between the transaction price and the valuation amount, adding that such cash-over-valuation transactions would accelerate the rise in HDB resale prices.
Kiwi Lim from Huttons Asia believe that this domestic demand for housing may be spurred on by Covid as families are now choosing to pay a premium to live in bigger flats with a great view and convenient location as they are spending much more time at home now due to the Covid pandemic. There were a total of 82 million-dollar flats transacted during the start of the Covid pandemic last year in 2020, eclipsing 2018’s record of 71 such deals. Kiwi Lim believe this year could see another record number of million dollar flats transacted in the market.
Straits Times news article 5 Feb 2021
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Irwell Hill Residences by reputable developer CDL enjoys close proximity to Orchard Road shopping belt, Robertson Quay, Clarke Quay, Dempsey Hills, Tiong Bahru Conservation Area and Singapore Botanic Gardens
The year 2021 launched two new residential condo projects with amazing sales results - Normanton Park condo which sold more than 650 units on its first day of launch and The Reef at King's Dock which saw more than 65% of its total units being snapped up by eager local buyers in one day.
2021 has an estimated 20 residential condo projects in the pipeline with most of the in the Core Central Region CCR and Rest of Central Region RCR districts. Due to the lack of Out of Central Region OCR residential condo projects this year, Kiwi Lim from Huttons Asia expect available OCR new condo supply to run very low by the end of this year possibly pushing up prices if domestic demand maintains.
2021 has an estimated 20 residential condo projects in the pipeline with most of the in the Core Central Region CCR and Rest of Central Region RCR districts. Due to the lack of Out of Central Region OCR residential condo projects this year, Kiwi Lim from Huttons Asia expect available OCR new condo supply to run very low by the end of this year possibly pushing up prices if domestic demand maintains.
Midtown Modern by reputable developer Guocoland consists of 558 Luxurious Units with selection of 1 - 4 Bedroom units. Starting from $1.1 mil, direct connection to Bugis MRT. Live, Work & Play @ Midtown. Click to visit website for e-brochures & floorplans or scan QR code to Register for VVIP Preview
Home buyers and property investors this year can look forward to the following residential condo launches in the first half of 2021:
Irwell Hill Residences by CDL
Irwell Hill Residences by reputable developer CDL enjoys close proximity to Orchard Road shopping belt, Robertson Quay, Clarke Quay, Dempsey Hills, Tiong Bahru Conservation Area and Singapore Botanic Gardens.
Midtown Modern by Guocoland
Midtown Modern by reputable developer Guocoland consists of 558 Luxurious Units with selection of 1 - 4 Bedroom units. Starting from $1.1 mil, direct connection to Bugis MRT. Live, Work & Play @ Midtown.
One Bernam by MCC Land
One Bernam condo site is a corner land parcel consisting of 325 units from 1 bedder to 3 bedder units. Expected to be an attractive residential condo development in the CBD, One Bernam is bounded by Bernam Street and Enggor Street in District 2, just a stroll from Tanjong Pagar MRT Station.
Irwell Hill Residences by CDL
Irwell Hill Residences by reputable developer CDL enjoys close proximity to Orchard Road shopping belt, Robertson Quay, Clarke Quay, Dempsey Hills, Tiong Bahru Conservation Area and Singapore Botanic Gardens.
Midtown Modern by Guocoland
Midtown Modern by reputable developer Guocoland consists of 558 Luxurious Units with selection of 1 - 4 Bedroom units. Starting from $1.1 mil, direct connection to Bugis MRT. Live, Work & Play @ Midtown.
One Bernam by MCC Land
One Bernam condo site is a corner land parcel consisting of 325 units from 1 bedder to 3 bedder units. Expected to be an attractive residential condo development in the CBD, One Bernam is bounded by Bernam Street and Enggor Street in District 2, just a stroll from Tanjong Pagar MRT Station.
Canninghill Square sits on a prime site with a coveted dual-frontage facing Singapore River and Fort Canning Hill. Canninghill Square is an upmarket, high-rise riverfront residential condo development that comes with stunning views of Singapore River and the city centre. Click to visit website for e-brochures & floorplans or scan QR code to Register for VVIP Preview
The Atelier
The Atelier is a new condo located in the Newton area by upscale developer Bukit Sembawang Estates. Situated in a prime location, this freehold condo is close to iconic landmarks in Singapore including prestigious educational instituions such as Anglo-Chinese School, Cheng Ballet Academy, etc.
One-North Eden
One-North Eden is a mixed residential condo and commercial joint venture between Hong Leong Holdings and Mitsui Fudosan Co. One-North Eden condo is located in District 5, within walking distance from both Buona Vista MRT and One-North MRT station.
Canninghill Square by CDL & Capitaland
Canninghill Square sits on a prime site with a coveted dual-frontage facing Singapore River and Fort Canning Hill. Canninghill Square is an upmarket, high-rise riverfront residential condo development that comes with stunning views of Singapore River and the city centre.
The Ryse Residences by developer Allgreen
The Ryse Residences is an exciting upcoming integrated condo above the shopping mall, MRT station and bus interchange linked to a polyclinic and a town plaza at Pasir Ris Central.
The Atelier is a new condo located in the Newton area by upscale developer Bukit Sembawang Estates. Situated in a prime location, this freehold condo is close to iconic landmarks in Singapore including prestigious educational instituions such as Anglo-Chinese School, Cheng Ballet Academy, etc.
One-North Eden
One-North Eden is a mixed residential condo and commercial joint venture between Hong Leong Holdings and Mitsui Fudosan Co. One-North Eden condo is located in District 5, within walking distance from both Buona Vista MRT and One-North MRT station.
Canninghill Square by CDL & Capitaland
Canninghill Square sits on a prime site with a coveted dual-frontage facing Singapore River and Fort Canning Hill. Canninghill Square is an upmarket, high-rise riverfront residential condo development that comes with stunning views of Singapore River and the city centre.
The Ryse Residences by developer Allgreen
The Ryse Residences is an exciting upcoming integrated condo above the shopping mall, MRT station and bus interchange linked to a polyclinic and a town plaza at Pasir Ris Central.
The Ryse Residences is an exciting upcoming integrated condo above the shopping mall and MRT at Pasir Ris Central. Click to visit website for e-brochures & floorplans or scan QR code to Register for VVIP Preview
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South Korea, Canada & China among many countries seeing housing frenzy in 2021 possibly due to Covid
Irwell Hill Residences is a highly anticipated new launch condo developed by reputable local mega developer City Developments Limited (CDL) in District 9 near Orchard and Great World City. Click to visit project website.
Soaring private residential home prices in both residential property sales and rental rates surged in 2021 despite tighter mortgage curbs and heavier real estate taxes in Seoul, South Korea even after the government's efforts to discourage property demand through loan curbs and taxes failed to calm the South Korean market.
Residential developments in Seoul, South Korea is also seeing a supply crunch as construction projects from acquiring land to applying for building permits usually need about 10 to 13 years currently.
In addition to that, between 2016 and 2019, the number of single-person homes increased by 13 per cent to make up about a third of all households, while the nation's population edged up a mere 1.2 per cent to 51.8 million, Statistics Korea data showed.
South Korean policymakers have noticed an unexpected increase in the number of people living alone from last quarter of 2020 leading to a soaring demand for homes possibly from increased family tensions due to pandemic anxiety.
Residential developments in Seoul, South Korea is also seeing a supply crunch as construction projects from acquiring land to applying for building permits usually need about 10 to 13 years currently.
In addition to that, between 2016 and 2019, the number of single-person homes increased by 13 per cent to make up about a third of all households, while the nation's population edged up a mere 1.2 per cent to 51.8 million, Statistics Korea data showed.
South Korean policymakers have noticed an unexpected increase in the number of people living alone from last quarter of 2020 leading to a soaring demand for homes possibly from increased family tensions due to pandemic anxiety.
China’s real estate market defied the economic turmoil caused by the Covid-19 pandemic in 2020, with sales rising to a record after a strong recovery in the second half and a push by developers to shift unsold properties to raise cash as financing controls tightened.
Property sales measured by area climbed 2.6% to 1.76 billion square meters, while by value they rose 8.7% to 17.4 trillion yuan, both the highest since the data series began in 1991, according to figures (link in Chinese) released Monday by the National Bureau of Statistics (NBS). The full-year increase reversed a plunge in the first two months of 2020 when year-on-year sales by area (link in Chinese) slumped 39.9% and sank 35.9% by value as large swathes of the country went into lockdown to control the virus.
China’s economic gross domestic product is expected to grow by around 2 per cent this year in 2021 — a significantly better result than any other major economy, most of which are expected to suffer sharp contractions. One of the primary reasons for this resilience has been the relentless march of its property market. Construction activity has increased and house prices in major cities continue to rise.
Property sales measured by area climbed 2.6% to 1.76 billion square meters, while by value they rose 8.7% to 17.4 trillion yuan, both the highest since the data series began in 1991, according to figures (link in Chinese) released Monday by the National Bureau of Statistics (NBS). The full-year increase reversed a plunge in the first two months of 2020 when year-on-year sales by area (link in Chinese) slumped 39.9% and sank 35.9% by value as large swathes of the country went into lockdown to control the virus.
China’s economic gross domestic product is expected to grow by around 2 per cent this year in 2021 — a significantly better result than any other major economy, most of which are expected to suffer sharp contractions. One of the primary reasons for this resilience has been the relentless march of its property market. Construction activity has increased and house prices in major cities continue to rise.
CDL and CapitaLand to redevelop Singapore’s Liang Court site into an integrated development residential apartments - Canninghill Square directly linked to Fort Canning MRT station.
Canada faces record-high residential property demand and record-low residential property supply from the start of 2021. With competition continuing to heat up in Canada's largest cities, prospective homeowners - betting that work-from-home policies will outlast the pandemic - have been looking further afield to the suburbs and even rural areas. The largest benchmark price increases in December 2020 - up more than 30 per cent from last year - were seen in agricultural districts nearly two hours outside Toronto.
THE Canadian housing market capped off a record 2020 with a frenzied final month amid a rush to take advantage of low mortgage rates and buy bigger homes to ride out the Covid-19 pandemic. National home sales rose 7.2 per cent in December from the previous month, pushing total transactions for the year to a record 551,392 units, data released from the Canadian Real Estate Association (CREA) showed. Benchmark home prices were up 1.5 per cent on the month, bringing them 13.1 per cent higher from year-ago levels, while average home prices across the country reached a record US$607,280.
With banks offering mortgage rates below 1 per cent for the first time ever and a pandemic-induced desire for home offices and backyards, Covid pandemic led to many Canadians desiring to live separate from families by buying their own private property and others requiring a need for bigger dwellings with the ability to afford them. Even as a resurgence of coronavirus infections brings new lockdowns, a historic dearth of housing supply across the country leaves little prospect for the market cooling off in 2021.
Low available supply is the reason property values will continue to go up. While there were some regional nuance in prices, sales spiked in nearly every market across Canada.
THE Canadian housing market capped off a record 2020 with a frenzied final month amid a rush to take advantage of low mortgage rates and buy bigger homes to ride out the Covid-19 pandemic. National home sales rose 7.2 per cent in December from the previous month, pushing total transactions for the year to a record 551,392 units, data released from the Canadian Real Estate Association (CREA) showed. Benchmark home prices were up 1.5 per cent on the month, bringing them 13.1 per cent higher from year-ago levels, while average home prices across the country reached a record US$607,280.
With banks offering mortgage rates below 1 per cent for the first time ever and a pandemic-induced desire for home offices and backyards, Covid pandemic led to many Canadians desiring to live separate from families by buying their own private property and others requiring a need for bigger dwellings with the ability to afford them. Even as a resurgence of coronavirus infections brings new lockdowns, a historic dearth of housing supply across the country leaves little prospect for the market cooling off in 2021.
Low available supply is the reason property values will continue to go up. While there were some regional nuance in prices, sales spiked in nearly every market across Canada.
With excerpts from Business Times article
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The Reef at King’s Dock is a waterfront condo in the Harbourfront and Keppel Bay precincts by joint developers Mapletree Investments and Keppel Land. It also features a floating deck that will house a marine viewing area. Click to view more info.
Seafront homes are a rarity in Singapore as they offer breathtaking views of the sea right there by the edge of the sea. The latest seafront home to be made available in the market is The Reef at King’s Dock developed by two very reputable developers Mapletree and Keppel Land set to make waves firstly for its sought-after sea view and it will showcase Singapore’s first residential property with a floating deck and underwater marine viewing area, inspired by The Float @ Marina Bay.
Yesterday's sales balloting preview for The Reef at King's Dock condo on Saturday 30 Jan 2021 saw more than 65% of the total condo units in this beautiful seafront development swiftly snapped up in one day as developers launched & sold at attractive prices from $2,000 psf to $2,800 psf, with average price achieved of around $2,330 psf.
Kiwi Lim from Huttons Asia is not surprised by the sales results as he felt this development "makes you fall in love at first sight in terms of location, convenience, beauty and its amazingly cool floating deck that reminds him of the beautiful Club Med resort". The Reef at King's Dock is designed as “an urban village” that is set to be a new landmark in the neighbourhood. It is a unique development in terms of its scale and variation of blocks, compared to others along the coastline. As future plans for the Greater Southern Waterfront unfold, The Reef at King’s Dock will be “well-placed to benefit from the enhancements and growth in the precinct.
The Reef at King's Dock is different from other upcoming project launches. The Reef at King's Dock has attributes that are unique to itself, including its proximity to the HarbourFront area, within walking distance of VivoCity, Singapore’s largest mall, and the HarbourFront MRT interchange station.
Yesterday's sales balloting preview for The Reef at King's Dock condo on Saturday 30 Jan 2021 saw more than 65% of the total condo units in this beautiful seafront development swiftly snapped up in one day as developers launched & sold at attractive prices from $2,000 psf to $2,800 psf, with average price achieved of around $2,330 psf.
Kiwi Lim from Huttons Asia is not surprised by the sales results as he felt this development "makes you fall in love at first sight in terms of location, convenience, beauty and its amazingly cool floating deck that reminds him of the beautiful Club Med resort". The Reef at King's Dock is designed as “an urban village” that is set to be a new landmark in the neighbourhood. It is a unique development in terms of its scale and variation of blocks, compared to others along the coastline. As future plans for the Greater Southern Waterfront unfold, The Reef at King’s Dock will be “well-placed to benefit from the enhancements and growth in the precinct.
The Reef at King's Dock is different from other upcoming project launches. The Reef at King's Dock has attributes that are unique to itself, including its proximity to the HarbourFront area, within walking distance of VivoCity, Singapore’s largest mall, and the HarbourFront MRT interchange station.
The Reef at King’s Dock has 10 blocks of varying heights and comprises a total of 429 units slated for completion by 2025. Unit sizes range from 431 to 1,572 sq ft. Click to view about this project
The Reef at King’s Dock is described as a “sustainable, next-generation luxury development for discerning urbanites”. Located in the HarbourFront-Keppel Bay precinct (a short stroll away from HarbourFront MRT), The Reef at King’s Dock is located within the Greater Southern Waterfront, which the government plans to transform into a new major gateway for urban living along Singapore’s southern coast.
It’s also located alongside the historic King’s Dock, which was once the second largest dock in the world when it opened in 1913.
The development will comprise 429 units, with a selection of one- to three-bedroom apartments. Sizes span from 431 to 1,572 sq. ft., spread across 10 residential blocks. Prices is expected to start from around S$960,000 for a 1-bedroom apartment, S$1.6 million for a 2-bedroom apartment and S$2.8 million for a 3-bedroom apartment.
It will boast a full range of amenities including a state-of-the-art gym, a tennis court, sky gardens, a children’s play zone, a fitness zone and function rooms.
Special care has been taken to protect King’s Dock’s existing structure and preservation of the marine ecosystem in and around the waters, the developers said. For one, the main structure of the floating deck will be constructed offsite and then floated into King’s Dock during installation.
In addition, "The submerged surface of the floating deck has been specially designed to encourage colonisation by corals that, in turn, will attract fish and other marine life
It’s also located alongside the historic King’s Dock, which was once the second largest dock in the world when it opened in 1913.
The development will comprise 429 units, with a selection of one- to three-bedroom apartments. Sizes span from 431 to 1,572 sq. ft., spread across 10 residential blocks. Prices is expected to start from around S$960,000 for a 1-bedroom apartment, S$1.6 million for a 2-bedroom apartment and S$2.8 million for a 3-bedroom apartment.
It will boast a full range of amenities including a state-of-the-art gym, a tennis court, sky gardens, a children’s play zone, a fitness zone and function rooms.
Special care has been taken to protect King’s Dock’s existing structure and preservation of the marine ecosystem in and around the waters, the developers said. For one, the main structure of the floating deck will be constructed offsite and then floated into King’s Dock during installation.
In addition, "The submerged surface of the floating deck has been specially designed to encourage colonisation by corals that, in turn, will attract fish and other marine life
The Reef at King's Dock is inside the Greater Southern Waterfront mega development beside HarbourFront MRT Station, Grade-A offices, Seah Im Food Centre & VivoCity. Click to read more about it.
The Reef at King's Dock designed by the famous KCAP Architects & Planners is not just a typical residential project that could be found anywhere in Singapore. KCAP Architects & Planners have worked on many waterfront projects in Europe, including the transformation of the former port area at HafenCity, Hamburg; the masterplan of a 21ha brownfield site at the seafront city of Fredericia, Denmark; the Müllerpier in Rotterdam; the masterplan for the Riverside at Zuchwil, Switzerland; and the port area of the Bay of Pasaia, San Sebastian in Spain.
Kiwi Lim believes that the developers pleasantly surprised all buyers yesterday with super attractive prices from $2,1xx psf especially when the lease for The Reef at King's Dock has been refreshed to a full 99 years effective from 12 Jan 2021.
After the sales preview yesterday, all 1 Bedroom units & 1 + Study units are fully sold. Currently available units (subject to availability) are as shown below:
2 Bedroom Last 2 Units below $1.5m
2 + Study Last 2 Units
2 Premium Last 15 Units
2 Garden Villa Last 9 Units
3 Bedroom From $2.6xm
3 Garden Villa Last 7 Units
The Reef at King's Dock showflat will be closed from today till 18th Feb 2021. Interested buyers can call / WhatsApp 9386 4036 to pre-arrange a viewing after 18 Feb 2021.
Kiwi Lim believes that the developers pleasantly surprised all buyers yesterday with super attractive prices from $2,1xx psf especially when the lease for The Reef at King's Dock has been refreshed to a full 99 years effective from 12 Jan 2021.
After the sales preview yesterday, all 1 Bedroom units & 1 + Study units are fully sold. Currently available units (subject to availability) are as shown below:
2 Bedroom Last 2 Units below $1.5m
2 + Study Last 2 Units
2 Premium Last 15 Units
2 Garden Villa Last 9 Units
3 Bedroom From $2.6xm
3 Garden Villa Last 7 Units
The Reef at King's Dock showflat will be closed from today till 18th Feb 2021. Interested buyers can call / WhatsApp 9386 4036 to pre-arrange a viewing after 18 Feb 2021.
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Some Singaporeans bought homes in Johor as weekend homes or resort homes when they visit Malaysia.
Foreigners can buy condo and landed properties in Malaysia and own land as well - Malaysia is one of the only countries where you don't need to be a citizen to buy land and private homes. Many Singaporeans have bought properties in Malaysia, especially in the state of Johor.
Yesterday (Wed 20 January 2021), Dr Musa Mohd Nordin a well-known paediatrician in Malaysia during an online forum on Jom Channel said Malaysia is in danger of having perpetual movement-control orders (MCOs) if the government doesn’t get its Covid-19 strategies right. Malaysia is not finding the hotspots and not doing enough mass testing with rapid tests.
Dr Musa believes that the key element in the blueprint of action to effectively handle this Covid-19 national emergency in Malaysia, must surely be a well executed Find, Test, Trace, Isolate and Support (FTTIS) system recommended by the WHO, which has fallen terribly short Malaysia.
And if the government cannot get the FTTIIS right, it will constantly be having MCOs, said the consultant doctor from KPJ Damansara Specialist Hospital.FTTIIS is the acronym for Find, Test, Trace, Isolate and Support System for combatting virus pandemics.Dr Musa said polymerase chain reaction (PCR) tests — which the health ministry insists on — are too slow. “Although less accurate, rapid test kits (RTK) can provide results within an hour compared to the PCR tests. Once a person knows the result, they can be isolated immediately if they are in Stage 1 or 2.
Yesterday (Wed 20 January 2021), Dr Musa Mohd Nordin a well-known paediatrician in Malaysia during an online forum on Jom Channel said Malaysia is in danger of having perpetual movement-control orders (MCOs) if the government doesn’t get its Covid-19 strategies right. Malaysia is not finding the hotspots and not doing enough mass testing with rapid tests.
Dr Musa believes that the key element in the blueprint of action to effectively handle this Covid-19 national emergency in Malaysia, must surely be a well executed Find, Test, Trace, Isolate and Support (FTTIS) system recommended by the WHO, which has fallen terribly short Malaysia.
And if the government cannot get the FTTIIS right, it will constantly be having MCOs, said the consultant doctor from KPJ Damansara Specialist Hospital.FTTIIS is the acronym for Find, Test, Trace, Isolate and Support System for combatting virus pandemics.Dr Musa said polymerase chain reaction (PCR) tests — which the health ministry insists on — are too slow. “Although less accurate, rapid test kits (RTK) can provide results within an hour compared to the PCR tests. Once a person knows the result, they can be isolated immediately if they are in Stage 1 or 2.
Sengkang Grand Residences is a rare fully integrated residential condo developed by CDL integrated with supermarket, exciting shopping mall managed by reputable Capitaland, MRT station and bus interchange directly below. Scan QR code to arrange for viewing / ebrochure / floorplans. Click to visit project website for more info
“Furthermore, the ministry can begin contact tracing on the second day itself.“PCR tests are expensive, require laboratories and only provide results in three days. By this time, the person may have already started to infect others. This is a flawed methodology that unless recognised, Malaysia is in trouble,” said Dr Musa.But he said the ministry appears less keen to test now than before.“This is dangerous as one superspreader can spread to hundreds like Case 126 last year compared with 80 per cent who don’t infect anyone.”Dr Musa was speaking at a forum together with economist Dr Muhammed Abdul Khalid on Covid-19 and the economic impact of MCO. The session was moderated by Dr Abu Hafiz Salleh Hudin.
He said the Malaysian government must also cap the price of antigens so that the cost for testing is more affordable. “The World Health Organization supplies them to us at US$5 each (S$6.63) but some places are charging RM280 (S$91.75) for tests,” said Dr Musa.He said the government should also cap the price of vaccines so that they are assessable to the public and can be obtained from private hospitals and clinics.“The faster people get vaccinated, the faster herd immunity can be achieved.”
Meanwhile, Singaporeans who own landed homes in Malaysia say they have not been to their empty landed properties for almost a year now. Many have never left the house empty for so long and are concerned about the condition of their properties as they worry about illegal squatters and thieves who may break in knowing the owners are in Singapore and will not be able to enter Malaysia during the MCO.
He said the Malaysian government must also cap the price of antigens so that the cost for testing is more affordable. “The World Health Organization supplies them to us at US$5 each (S$6.63) but some places are charging RM280 (S$91.75) for tests,” said Dr Musa.He said the government should also cap the price of vaccines so that they are assessable to the public and can be obtained from private hospitals and clinics.“The faster people get vaccinated, the faster herd immunity can be achieved.”
Meanwhile, Singaporeans who own landed homes in Malaysia say they have not been to their empty landed properties for almost a year now. Many have never left the house empty for so long and are concerned about the condition of their properties as they worry about illegal squatters and thieves who may break in knowing the owners are in Singapore and will not be able to enter Malaysia during the MCO.
Today online article on 21 Jan 2021
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In total, developers launched 1,349 units for sale and sold 1,217 units in December 2020 - Huttons Asia & URA
Developers' sales in the first week of the New Year has been brisk, with foreigners picking up some luxury units. Developers' sales for the week of Jan 4-10 were 135 units, up 15 per cent over the last week of December.
The CCR accounted for 14.1 per cent while the RCR and OCR made up 30.4 per cent and 55.6 per cent. The top-selling project in the CCR was Nouvel 18, V on Shenton, followed by Kent Ridge Hill Residences in the RCR and Treasure at Tampines in the OCR. Several high-end luxury projects saw foreigners picking up units in the last week, probably an early indication that foreigners' interest may be returning.
In total, developers launched 1,349 units for sale and sold 1,217 units. Sales in December 2020 was 57.2% higher than November 2020 and 126.2% higher than the same period a year ago. The number of units sold in December was the highest December sales since 2012.
The CCR accounted for 14.1 per cent while the RCR and OCR made up 30.4 per cent and 55.6 per cent. The top-selling project in the CCR was Nouvel 18, V on Shenton, followed by Kent Ridge Hill Residences in the RCR and Treasure at Tampines in the OCR. Several high-end luxury projects saw foreigners picking up units in the last week, probably an early indication that foreigners' interest may be returning.
In total, developers launched 1,349 units for sale and sold 1,217 units. Sales in December 2020 was 57.2% higher than November 2020 and 126.2% higher than the same period a year ago. The number of units sold in December was the highest December sales since 2012.
The top ten private residential projects for December 2020 - Huttons Research & URA
The exceptional performance was down to the outstanding sales notched at Clavon where 473 units were sold. An expected rebound in economic growth in 2021, arrival of vaccines for Covid-19 and the inability to travel because of Covid-19 contributed partly to the sales performance in December as well.
A total of 23 private residential projects were launched in 2020 – ten projects before the circuit breaker and 13 projects after. Several projects launched after the circuit breaker – Penrose, The Linq at Beauty World, The Landmark, Ki Residences at Brookvale and Clavon achieved very good sales on the opening day of sale. The Linq at Beauty World sold more than 96% of the total units in one day while Clavon is the best-selling project on launch day in 2020, moving more than 460 units.
A total of 23 private residential projects were launched in 2020 – ten projects before the circuit breaker and 13 projects after. Several projects launched after the circuit breaker – Penrose, The Linq at Beauty World, The Landmark, Ki Residences at Brookvale and Clavon achieved very good sales on the opening day of sale. The Linq at Beauty World sold more than 96% of the total units in one day while Clavon is the best-selling project on launch day in 2020, moving more than 460 units.
Top Ten Projects by Sale Volume in 2020. - Huttons Research & URA
This month in January 2021, we just completed the sales balloting for Normanton Park which sold more than 30% on its first day of sales preview.
Towards the end of this month, we will see 2 more residential development launches for Parc Central Residences and The Reef at King’s Docks. We expect the sales momentum in December 2020 to spill over to January 2021 and possibly maintain the sales volume at around 1,000 units. If that happens, it will be the highest January sale volume since 2013.
Towards the end of this month, we will see 2 more residential development launches for Parc Central Residences and The Reef at King’s Docks. We expect the sales momentum in December 2020 to spill over to January 2021 and possibly maintain the sales volume at around 1,000 units. If that happens, it will be the highest January sale volume since 2013.
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Singapore property market outlook looks attractive for both investors and home buyers - photo from 99.co
With a healthy net absorption of new homes over the past three years, the higher take-up numbers against a conservative supply have resulted in fewer unsold, uncompleted private homes. The cumulative number of unsold units may be nearing its peak, and could start tapering this year.
With diminishing stock and the improvements in the macroeconomic outlook, the probability of home prices falling this year is not high. As it is, prices of private homes increased quarter on quarter by 2.1 per cent in the fourth quarter of last year, based on the latest flash estimates from the Urban Redevelopment Authority, after rising 0.8 per cent in the previous quarter. Overall private home prices rose 2.2 per cent for the whole of last year.
So what are the property trends to look out for in 2021 & beyond?
With diminishing stock and the improvements in the macroeconomic outlook, the probability of home prices falling this year is not high. As it is, prices of private homes increased quarter on quarter by 2.1 per cent in the fourth quarter of last year, based on the latest flash estimates from the Urban Redevelopment Authority, after rising 0.8 per cent in the previous quarter. Overall private home prices rose 2.2 per cent for the whole of last year.
So what are the property trends to look out for in 2021 & beyond?
Property Trend 1:
2020 saw an increase in racially discriminatory violence against people of Chinese & Asian origin due to pandemic anxiety and the American president calling Covid-19 as the 'Chinese virus' as well as political instability and unrest among citizens across the globe - especially in Europe and America. Many foreign businessmen are now avoiding risky geo-politically troubled cities and looking towards Singapore and Portugal as safe havens as their 2nd home for their beloved families and children's safety.
Property Trend 2:
Limited housing inventory doesn't just drive up home prices; it also gives buyers less selection and forces them to settle. Nobody is talking about new condo 'oversupply risk' in Singapore's residential market as most developers are expected to hold no more land parcels in their stock for 2022. The number of new project launches slated for this year is expected to be lower than in previous years as developers empty out their last remaining land banks from the enbloc fever in 2018. Most of the new launches this year will be mainly in the luxury and city area projects with many of them being smaller residential developments also known as apartment style living without the full condo facilities. About 20 new developments may be released for sale in the first half of 2021. In contrast, around 25 to 30 residential projects launched in each of the half years in 2018 and 2019.
The Government has also calibrated land supply from the Government Land Sales programme. Over the past two years, a conservative slate of land was released to maintain a moderate supply of units. For the first half of this year, about 1,600 new homes could be launched from the confirmed list, much fewer than the average of 2,700 units released in each half of 2018. Many new projects redeveloped from the 2017 to 2018 spate of sales en bloc have already sold more than 70 per cent of their units.
Kiwi Lim from Huttons Asia believes that if the government does not release more land parcels soon, we may see Singapore's available new condo stock in the market falling to historic low by end of 2021.
2020 saw an increase in racially discriminatory violence against people of Chinese & Asian origin due to pandemic anxiety and the American president calling Covid-19 as the 'Chinese virus' as well as political instability and unrest among citizens across the globe - especially in Europe and America. Many foreign businessmen are now avoiding risky geo-politically troubled cities and looking towards Singapore and Portugal as safe havens as their 2nd home for their beloved families and children's safety.
Property Trend 2:
Limited housing inventory doesn't just drive up home prices; it also gives buyers less selection and forces them to settle. Nobody is talking about new condo 'oversupply risk' in Singapore's residential market as most developers are expected to hold no more land parcels in their stock for 2022. The number of new project launches slated for this year is expected to be lower than in previous years as developers empty out their last remaining land banks from the enbloc fever in 2018. Most of the new launches this year will be mainly in the luxury and city area projects with many of them being smaller residential developments also known as apartment style living without the full condo facilities. About 20 new developments may be released for sale in the first half of 2021. In contrast, around 25 to 30 residential projects launched in each of the half years in 2018 and 2019.
The Government has also calibrated land supply from the Government Land Sales programme. Over the past two years, a conservative slate of land was released to maintain a moderate supply of units. For the first half of this year, about 1,600 new homes could be launched from the confirmed list, much fewer than the average of 2,700 units released in each half of 2018. Many new projects redeveloped from the 2017 to 2018 spate of sales en bloc have already sold more than 70 per cent of their units.
Kiwi Lim from Huttons Asia believes that if the government does not release more land parcels soon, we may see Singapore's available new condo stock in the market falling to historic low by end of 2021.
Property Trend 3:
Properties in the OCR (Outside Centre Region) may see a price increase as Covid-19 pandemic may change the way we work - i.e. there may be more emphasis on remote working or working from home.
New condo projects in Hougang and Serangoon has already reached $1,5xx psf and above with the OCR resale market also showing a rise in prices. These housing markets will grow in popularity due to the remote work trend according to Kiwi Lim from Huttons Asia. "Nowadays, many people are working remotely during the pandemic, and that trend is likely to continue to a certain extent even after it's safe to return to an office building." said Kiwi.
Property Trend 4:
Even as Singaporeans are moving towards OCR and RCR districts, city homes and property in the CCR may still not see a drop in prices as they are the preferred districts for foreign buyers flush with cash. Foreign buyers love the appeal of living in the city surrounded by convenience with proximity to restaurants, museums, theatres and other amenities to match or enhance their quality of life they enjoyed overseas. Many are also city dwellers and are only familiar with the prime districts in Singapore.
Properties in the OCR (Outside Centre Region) may see a price increase as Covid-19 pandemic may change the way we work - i.e. there may be more emphasis on remote working or working from home.
New condo projects in Hougang and Serangoon has already reached $1,5xx psf and above with the OCR resale market also showing a rise in prices. These housing markets will grow in popularity due to the remote work trend according to Kiwi Lim from Huttons Asia. "Nowadays, many people are working remotely during the pandemic, and that trend is likely to continue to a certain extent even after it's safe to return to an office building." said Kiwi.
Property Trend 4:
Even as Singaporeans are moving towards OCR and RCR districts, city homes and property in the CCR may still not see a drop in prices as they are the preferred districts for foreign buyers flush with cash. Foreign buyers love the appeal of living in the city surrounded by convenience with proximity to restaurants, museums, theatres and other amenities to match or enhance their quality of life they enjoyed overseas. Many are also city dwellers and are only familiar with the prime districts in Singapore.
Property Trend 5:
Globally, we can expect affluent consumers to continue realigning their priorities to spend more on real estate that gives them and their families a sense of security, health safety, and privacy in a cocoon all of their own. The wealthy is expected to apportion a large part of their hard cash in property in 2021.
Property Trend 6:
As the trend of working from home and telecommuting looks set to become the norm, we will spend more time at home. This may spark a new trend of spending more to make our home look and feel spacious and beautiful. Kiwi Lim from Huttons Asia believe that the demand for larger apartments may increase, e.g. 3 and 4 bedders may see an increase in demand for the need to set aside an extra bedroom as a home office or proper workspace at home becomes crucial as we spend more time working from home. Home owners may be willing to spend much more on interior designing to make their homes look inviting and nicer to cocoon in.
Property Trend 7:
Property buyers may trend towards properties within close proximity to greenery & parks as they spend more time at home. Quality of living and a healthy lifestyle will take more priority in our lives as Covid-19 has placed a higher emphasis on our physical and mental health. Health professionals and gurus worldwide have always encouraged people to talk walks in parks to relief stress and the fresh clean air from greenery and parks or park connectors nearby will do a lot of good for everyone living nearby.
Globally, we can expect affluent consumers to continue realigning their priorities to spend more on real estate that gives them and their families a sense of security, health safety, and privacy in a cocoon all of their own. The wealthy is expected to apportion a large part of their hard cash in property in 2021.
Property Trend 6:
As the trend of working from home and telecommuting looks set to become the norm, we will spend more time at home. This may spark a new trend of spending more to make our home look and feel spacious and beautiful. Kiwi Lim from Huttons Asia believe that the demand for larger apartments may increase, e.g. 3 and 4 bedders may see an increase in demand for the need to set aside an extra bedroom as a home office or proper workspace at home becomes crucial as we spend more time working from home. Home owners may be willing to spend much more on interior designing to make their homes look inviting and nicer to cocoon in.
Property Trend 7:
Property buyers may trend towards properties within close proximity to greenery & parks as they spend more time at home. Quality of living and a healthy lifestyle will take more priority in our lives as Covid-19 has placed a higher emphasis on our physical and mental health. Health professionals and gurus worldwide have always encouraged people to talk walks in parks to relief stress and the fresh clean air from greenery and parks or park connectors nearby will do a lot of good for everyone living nearby.
Enjoy relaxing ultimate seafront living next to nature and amazing convenience with our upcoming latest condo launch - The Reef at King's Dock. Scan the QR code for ebrochure and to register for our upcoming VIP soft launch invite to view this rare residential development at Keppel Bay & enjoy VIP discounts and pricings
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Given ample liquidity, a low interest rate environment and improving buyer sentiment, there is room for private home prices to head upwards in 2021, say analysts. BT FILE PHOTO
2020 witnessed a terrible global pandemic known as Covid-19 and surprisingly top cities in the world also saw property prices rising last year. Singapore's private property index clocked in a 2.2 per cent gain in 2020 comparable to the private residential property index pre-Covid in 2019 which saw a 2.7 per cent growth in Singapore private property prices.
The surprising turnaround in the private property market comes in a year where the local economy contracted by 5.8 per cent, based on the government's advance estimates.
According to the Urban Redevelopment Authority's (URA) flash estimate on Monday, prices of private homes in Singapore rose 2.1 per cent quarter-on-quarter in Q4 2020 in the highest quarterly increase since the 3.4 per cent notched in Q2 2018 before the last round of cooling measures kicked in. This comes on the heels of a 0.8 per cent increase in Q3 2020.
Kiwi Lim from Huttons Asia explained that billions worth of hot money from overseas provided ample liquidity in Singapore's financial market, a very low attractive interest rate environment as well as improving buyer sentiment give plenty of room for private home prices to head upwards in 2021 and the return of foreign buyers to Singapore with the eventual easing of border control measures.
The surprising turnaround in the private property market comes in a year where the local economy contracted by 5.8 per cent, based on the government's advance estimates.
According to the Urban Redevelopment Authority's (URA) flash estimate on Monday, prices of private homes in Singapore rose 2.1 per cent quarter-on-quarter in Q4 2020 in the highest quarterly increase since the 3.4 per cent notched in Q2 2018 before the last round of cooling measures kicked in. This comes on the heels of a 0.8 per cent increase in Q3 2020.
Kiwi Lim from Huttons Asia explained that billions worth of hot money from overseas provided ample liquidity in Singapore's financial market, a very low attractive interest rate environment as well as improving buyer sentiment give plenty of room for private home prices to head upwards in 2021 and the return of foreign buyers to Singapore with the eventual easing of border control measures.
Maybank Kim Eng economist Chua Hak Bin pointed to supporting factors such as the collapse in mortgage rates - which has been a plus for the property market - while fiscal support, wage subsidies and hiring incentives from the government have also helped where jobs are concerned.
"This recession has been very uneven, it's hit the lower-wage sectors a lot more," he went on to say, adding that there are still certain sectors in the economy that continue to expand. "At the same time, one of the peculiarities about this recession is the surge in the personal savings rate, (with) the higher income segment not being able to spend on a lot of services, including travel. Some chose to plough it back into property."
By region, prices of non-landed homes in the CCR, or prime areas, rose 3.3 per cent in Q4, reversing from a 3.8 per cent decrease in Q3. Noting that CCR had underperformed with its index shedding 3.4 per cent in the first three quarters of 2020, JLL's senior director (research & consultancy) Ong Teck Hui, said: "The lower prices could have attracted buyers and contributed to the price increase in Q420. The rise in the CCR index was accompanied by an increase in the proportion of high value transactions of S$2,700 per square foot (psf) and above during the quarter."
In the city fringe or RCR, prices increased 4.8 per cent quarter-on-quarter in Q4 2020, compared to 2.5 per cent in the previous quarter. Meanwhile, in the suburbs or outside central region (OCR), prices were up 1.7 per cent in Q4 2020, similar to the 1.7 per cent increase seen in Q3.
"This recession has been very uneven, it's hit the lower-wage sectors a lot more," he went on to say, adding that there are still certain sectors in the economy that continue to expand. "At the same time, one of the peculiarities about this recession is the surge in the personal savings rate, (with) the higher income segment not being able to spend on a lot of services, including travel. Some chose to plough it back into property."
By region, prices of non-landed homes in the CCR, or prime areas, rose 3.3 per cent in Q4, reversing from a 3.8 per cent decrease in Q3. Noting that CCR had underperformed with its index shedding 3.4 per cent in the first three quarters of 2020, JLL's senior director (research & consultancy) Ong Teck Hui, said: "The lower prices could have attracted buyers and contributed to the price increase in Q420. The rise in the CCR index was accompanied by an increase in the proportion of high value transactions of S$2,700 per square foot (psf) and above during the quarter."
In the city fringe or RCR, prices increased 4.8 per cent quarter-on-quarter in Q4 2020, compared to 2.5 per cent in the previous quarter. Meanwhile, in the suburbs or outside central region (OCR), prices were up 1.7 per cent in Q4 2020, similar to the 1.7 per cent increase seen in Q3.
Analysts said that the higher prices in the RCR in Q4 were likely due to new projects that were launched in the fourth quarter. Notably, 108 units at The Landmark were sold at a median price of S$2,137 psf and 119 units were picked up at The Linq@Beauty World at a median price of S$2,171 psf - above the S$1,813 psf median price for all new non-landed homes in RCR in 2020.
Private home prices in Singapore could climb again this year as a recovering economy lifts sentiment after the private residential property index shrugged off the impact of a global pandemic. 2020's upcoming project launches in the pipeline are mainly in the luxury and city fringe areas therefore will help push the private property index in 2021 higher.
"Demand for resale homes is expected to pick up further this year, while resale prices may increase around one to 4 per cent for the full year", Head of research & consultancy at OrangeTee & Tie, Christine Sun.
Knight Frank estimates that overall private residential prices could go up by around 5 per cent this year, while PropNex forecasts home prices could climb a further 2 to 3 per cent, owing to a better market outlook and a decreasing supply of unsold units.
Huttons Asia's director of research Lee Sze Teck expects private home prices to rise by up to 3 per cent in 2021, with up to 20 new projects to launch in H121. He said: "Selling prices are expected to edge up because of recent firm land tender prices and higher construction costs because of Covid-19 safety management measures."
Private home prices in Singapore could climb again this year as a recovering economy lifts sentiment after the private residential property index shrugged off the impact of a global pandemic. 2020's upcoming project launches in the pipeline are mainly in the luxury and city fringe areas therefore will help push the private property index in 2021 higher.
"Demand for resale homes is expected to pick up further this year, while resale prices may increase around one to 4 per cent for the full year", Head of research & consultancy at OrangeTee & Tie, Christine Sun.
Knight Frank estimates that overall private residential prices could go up by around 5 per cent this year, while PropNex forecasts home prices could climb a further 2 to 3 per cent, owing to a better market outlook and a decreasing supply of unsold units.
Huttons Asia's director of research Lee Sze Teck expects private home prices to rise by up to 3 per cent in 2021, with up to 20 new projects to launch in H121. He said: "Selling prices are expected to edge up because of recent firm land tender prices and higher construction costs because of Covid-19 safety management measures."
From Business Times article on 5 Jan 2021
