Kovan Melody

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No Need to rush for mass market homes 03/08/2009

Filed under: Updates — aboutsingaporeproperty @ 11:24 pm
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No need to rush for mass market homes


Supply still ample, including units under or slightly above $1,000 psf, so first-time buyers need not panic

Property experts say there is no shortage of mass market homes for sale in Singapore, referring to properties under $1,000 per sq ft or slightly above it.

Apart from new launches coming up, there are also unsold units from existing launches.

These include the remaining phases of Far East Organization and Frasers Centrepoint’s site in Bedok Reservoir, and smaller projects by other developers, said CBRE.

Also, Hong Leong Group’s sites in Flora Road and Pasir Ris Drive 1 already comprise more than 3,000 new units.

There is also ample leasehold land available for redevelopment, though not all sites will be equally attractive.

Suburban plots purchased by developers include sites in Yishun, Khatib, Toa Payoh, West Coast and Optima in Tanah Merah, said CBRE executive director of residential Joseph Tan.

While the price outlook may be unclear, what is clear is that mass market prices are unlikely to go back to the previous lows, he said.

New suburban launches are unlikely to hit the market at levels of around $500 psf or slightly more, as land prices have gone up since then, he said. HDB prices have also risen.

‘Broadly, initial launch prices of mass market developments are now in the range of $600 psf to $700 psf,’ he said.

He added that those in a more attractive location will command a premium. For instance, he said the project he is marketing, Optima, started at $790 psf as it is right next to a Tanah Merah MRT station entrance and at the fringe of an HDB estate instead of inside one.

In general, the plentiful supply pipeline will keep suburban prices in check to a certain extent, experts said.

But first-time buyers must be aware that sentiment does at times get ahead of reality. The current market situation is a good example, said property veteran Nicholas Mak, formerly director of research and consultancy at Knight Frank.

The buying momentum is not sustainable past this year if foreign buyers continue to stay away, he said.

‘Some people think that they are buying at a ‘recession price’. They are wrong because developers always price at the level the market can bear,’ said Mr Mak.

Some suburban and city-fringe projects are being priced at levels near the previous peak or even at record levels, he cautioned.

A developer who declined to be named conceded: ‘Developers are businessmen. If I can sell at a higher price, why not?’

Said Mr Mak: ‘When the new launches are completed and the expected demand does not come, some investors will sell their units and prices could come down. Then some investors may be caught.’

In any case, there is a big pool of potential supply out there that can absorb any surge in demand, he said.

‘You can’t just look at the new suburban launches from developers. You also have to look at the supply in the resale market and also the HDB resale market,’ he said.

‘Usually, resale units tend to be cheaper and bigger than newly launched units.’

Second-quarter data from the Urban Redevelopment Authority (URA) shows that there are 38,482 units of unsold uncompleted homes.

Of this number, some 14,000 units are in the suburban areas or what the URA terms as outside the central region.

Considering developers have on average over the past five years sold 3,200 units of private suburban homes a year, this number provides enough supply for nearly 41/2 years, said Mr Mak.

So first-time buyers should not panic and rush into the market. They should take their time in finding their dream home. Do the necessary research, as National Development Minister Mah Bow Tan urged buyers last Wednesday.

Source: Sunday Times, 2 Aug 2009

 

Beware of exuberance 31/07/2009

Filed under: Updates — aboutsingaporeproperty @ 9:28 am
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THE real estate sector is stirring, though not lustily yet. There is every reason to support the rationale that the upswing this time is better moderate than precipitous. The lesson learnt of the irrational exuberance in the second half of 2007 was that asset price inflation that began to eviscerate purchasing power in Singaporeans’ foremost ownership ambition was socially fraught. The trap can be avoided. Now that the second-quarter GDP rebound and intermittent stock market rallies will provide real estate momentum, it is not too early to counsel caution.

But one should still be thankful. The property turnaround is tracking closely the people’s confidence, which has withstood better than thought the effects of the recession. There are also the multiplier gains for businesses providing appliances, furniture, electronic gadgets, home decor and renovation works. Although the Urban Redevelopment Authority’s monitoring showed that prices of private property declined again in the second quarter, what was noteworthy was that the slower rate of quarterly dip (4.7 per cent against 14.1 per cent) mirrored the improved buyer sentiment evident since February. In the HDB market, confidence has been more pronounced as prices and values stayed up through the worst of the economic slump.

Real estate companies have a responsibility to steer the recovery along a steady path that will bring them sustained earnings while keeping condominiums and flats affordable. The temptation to raise prices too sharply and quickly to catch the crest of the wave (it is not rolling fast yet) must be resisted. Precipitate repricing when the market is still tentative will set the recovery back – then it will be a case of all fall down. Property consultancies for their part should stay true to their ethical principles to not talk up the market and drive fear into people waiting to time their purchases correctly. So far, the actions of these two market catalysts have been mainly responsible. Long may this continue.

And buyers? They should never give in to the unwarranted fear of ‘missing’ their entree in a rising market. The evidence shows that HDB upgraders, en-bloc sellers and middle-aged types with savings have been the dominant buyers. Young couples with neither the CPF cache nor dependable careers can be expected to dive into the private market soon. They should stay well clear. The HDB is created for them as a step-up ladder. This cautionary tale may require review when rich foreigners and funds start buying sight unseen, as in 2007. Even then, prices can get out of whack only to the eventual dismay of developers – to say nothing of bona fide home owners.

Source: Straits Times, 28 July 2009

 

Latest Transacted Prices 23/07/2009

Filed under: Updates — aboutsingaporeproperty @ 4:08 am
Tags: , ,
Date of Option Exercised / Sales Agreement Signed  

 

Price
($)
 
Land/
Floor Area (Sqft)
 
Unit Price ($psf)  

Jun-09

900,000

1,173

767

Jun-09

725,000

915

792

Jun-09

962,000

1,302

739

Jun-09

832,000

1,216

684

Jun-09

830,000

1,216

682

Jun-09

862,000

1,216

709

Jun-09

880,000

1,270

693

Jun-09

685,000

904

758

Jun-09

840,000

1,227

685

Jun-09

665,000

904

735

Jun-09

707,000

904

782

Jun-09

715,000

904

791

May-09

970,000

1,410

688

May-09

803,888

1,453

553

May-09

905,000

1,313

689

May-09

890,000

1,292

689

May-09

715,000

904

791

May-09

625,000

904

691

May-09

855,000

1,292

662

 

Kovan Melody

Filed under: Updates — aboutsingaporeproperty @ 4:01 am
Tags: ,
Address Kovan Road
Tenure 99 years
District 19
Completion 2006
Developer Winhome Investment Pte Ltd (Wing Tai Holdings)
Unit sizes 2-bedroom (872-1281 sqft)
3-bedroom (1173-1604 sqft)
3-bedroom+ Family (1249-1690 sqft)
4-bedroom ( 1367-1873 sqft)
4-bedroom+Family (1518-1894 sqft)
No of units 778
 

 
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