Collective Sales Is Back

Collective sales set to take off again. As many as 50 of them may be launched this year but deals may take longer under revised rules and rising price expectations. As many as 50 collective sales may be launched this year, though less than half of these could translate into actual deals before year-end, say property agents polled by BT. A study by property consultant Credo Real Estate has listed a total of 34 possible properties that could be tendered for collective sale in 2010. Eighteen of the 34 developments are either in District 10 or 15. 'These are among the larger high-density private residential districts that enjoy healthy demand for new homes and hence land for residential development.'

Who's Buying HDB Resale Flat?

More private residents buying HDB resale flats. Group still in minority, but data from property firms show rising trend. Property agents say they are seeing more private property dwellers buying Housing and Development Board (HDB) resale flats. This group remains in the minority of HDB flat buyers in the open market, but their number has been rising, according to three property agencies. Data obtained by The Straits Times show that the proportion of resale HDB flat buyers with private home addresses ranged between 8 per cent and 19 per cent of transactions last year. Such data is not widely available, but from the figures that ST managed to obtain, this proportion seems to be on the rise.

HDB Resale Prices

With Regards to HDB resale prices, don't just find a scapegoat. It is not an issue of us-versus-them, but one of a rise in demand. The Housing Board is reviewing rules on flat ownership, to see if any encourages speculation in HDB resale flats. The review will be completed in a few months' time, according to National Development Minister Mah Bow Tan. The background: Resale flat prices rose by 3.9 per cent in the last quarter of last year, or by 8.2 per cent in the year. From 2007 to 2009, prices have gone up nearly 40 per cent. Young couples complain that prices are rising beyond their reach. All manner of folk are being blamed for the rise in prices: foreigners, permanent residents, rich private-property owners who buy HDB flats for rental income, or people who 'flip' HDB resale flats within a year. The HDB will have its work cut out coming to grips with this issue. But actually, what exactly is the issue? Are rising HDB resale prices an issue? Surely not to the majority of 880,000 or so households who already own an HDB flat, to whom rising flat prices means rising asset values. Rising prices are an issue to new households and those with no roofs over their heads. Who are they? The 25,000 couples who marry each year. Also, over 7,000 couples in a year file for divorce, which means some 7,000 ex-spouses may be searching for a new home. In 2008, nearly 80,000 people were granted PRs and another 20,000 were conferred citizenship. Presumably, many among them will want to buy a home.

11-Feb-2010

Banks' Packages

Banks roll out more attractive home loans. Homebuyers benefit as rivals scramble to match lower rates of market leader DBS. Homebuyers should rejoice as it looks like a home loan war is afoot. DBS Bank has been lowering its home loan rates, forcing rivals to scramble to match its offerings in order to prevent the mortgage giant from gobbling their market share. The bank said that, last month alone, it enjoyed a more than 50 per cent increase in mortgage applications. BT understands that HSBC, for one, is countering that with what some call 'guerilla tactics'. Next week it will launch a special home loan package, but the offer may be valid only for a short time - to get customers to commit before the competition can react. DBS has cut its rates several times in the last two months - a fact that has not gone unnoticed by analysts who say that DBS's recent aggressive moves to sell loans under its new chief executive is a headache for other banks.

Altez Response

100 units sold at latest Far East project Altez. Far East Organization said yesterday it has sold 100 units in its latest residential project, the 280-unit Altez in Enggor Street. The developer said that during a preview for priority customers last week, 100 of the 104 units released were sold. Prices ranged from $1,600 to $2,000 per sq ft (psf). The units sold comprised one and two-bedroom apartments from levels 10 to 22 of the 62-storey development. Far East said that Altez, at 250 metres high, will be Singapore's tallest residential development. It is next to Tanjong Pagar MRT station. About 60 per cent of the buyers at Altez are foreigners, said Chia Boon Kuah, Far East's chief operating officer for property sales. 'The robust response to Altez demonstrates demand for well-conceived products of value in an excellent location in the city centre,' Mr Chia said.

Property Launches Heat Up After CNY

Property launches heat up after CNY. Developers are already preparing to launch at least six projects. Now that the holidays are out of the way, property developers are ready to lay out a spread of new offerings for home-seekers. At least six projects are being prepared for launch, while others have started preview sales or will have new phases released. At the higher end of the market, Wing Tai is preparing to sell its 147-unit L'Viv in Newton Road at an average price believed to be about $2,000 per sq ft (psf). The units at the freehold 32-storey development will be fairly small. About half are one-bedroom apartments between 600 sq ft and 700 sq ft, while the rest are two-bedders about 1,000 sq ft in size. There are also three penthouses of more than 2,000 sq ft, according to Wing Tai. It is offering the deferred payment scheme for a limited period for the project, which is expected to be completed in 2014. Elsewhere, Far East Organization has started selling units at Altez, a 62-storey project along Enggor Street at Tanjong Pagar, located near its Icon condominium. Altez is set to be the tallest residential development in Singapore when completed in 2015, according to Far East.

Circle Line Impact On Property Prices

Phase 2 opening of Circle Line set to increase property prices