View Full Version : New suburbans now at prime resale prices
CCR property prices expect to rise soon?
btw is stproperty.com.sg related to SPH? Is this some kind of subtle advertising from SPH?
New suburbans now at prime resale prices
Market watchers say savvy buyers may start due diligence for a prime unit
By
[SINGAPORE] The price gap between new suburban homes and secondary prime property has been narrowing as buying euphoria escalates prices of the former.
For instance, one-bedroom units at CapitaLand's Sky Habitat in Bishan have achieved per square foot prices exceeding $1,700 despite its 99-year leasehold status and its location in a traditionally off-prime area.
In contrast, such prices could have easily gotten the buyer a freehold resale unit of a similar size located in Singapore's prime districts, comprising those in the core central region (CCR).
To illustrate, one can acquire a freehold one-bedder unit at completed developments such as Mulberry Tree - which is a short five-minute walk to Velocity@Novena Square and Novena MRT - or District 11's Nineteen Shelford Road - which is within a one-km radius from popular primary schools such as Nanyang Primary and Raffles Girls Primary - for an asking price of around $1,700 psf, according to property sales portal, stproperty.com.sg.
Other popular suburban developments such as Watertown (in Punggol) have also attained record prices for their areas, further narrowing the price gap between homes in suburban and prime regions.
Taking for example, a 1,356 sq ft unit at Watertown was advertised on stproperty.com.sg with an asking price of $1,685 psf which translates to a total of $2.28 million.
But for less than that amount, the same buyer can purchase a 1,324 sq ft unit at Olina Lodge (located at Holland), for an asking price of $1,359 psf or a gross quantum of $1.80 million.
Said Alan Cheong, head of research at Savills Singapore: "We believe May was the nascent start to a trend where those savvy enough to realise that the price gap between suburban and prime districts have been closing, start their due diligence to shop for a prime unit and may put pen to paper in either June or July."
Seconding the view, head of research of Jones Lang LaSalle Singapore, Chua Yang Liang also agreed that prime market homes could see renewed interest as the price gap between prime and non-prime markets converge.
In fact, interest in resale non-landed private CCR homes has already started to pick up with an increasing number of units being transacted over the past few months, according to data compiled by the Singapore Real Estate Exchange (SRX) and the Urban Redevelopment Authority (URA).
The average price of homes in the CCR has also been on a gradual uptrend over the past few months, rising from $1,636 psf in Q1 to $1,733 in Q2 (comprising data from April and May 2012), noted the SRX.
Another interesting snippet to note is that contrary to popular belief, the development that raked in the greatest number of resale units in May was not from the much hyped about suburban regions, but from the CCR. Notably, Paterson Suites, which is located in the heart of the CCR in District 9, transacted a total of 16 units, according to R'ST Research.
Beyond the core region, activity in the broader secondary market has also been gaining speed.
According to preliminary data extracted from URA Realis, the number of resale units in May totalled 621 units, superseding that of developer sales (504 units).
Commenting on the data, Ong Kah Seng, director of R'ST Research said: "The numbers for May are really very preliminary at this stage as more caveats will be streamed into the database over the next few weeks. But, I think there is some consistency in buyers increasingly trending for resale, which probably is at the expense of interest for new launches."
However, experts such as ERA Realty key executive officer Eugene Lim continue to advise that it might be wiser for buyers to hold on to their purse strings and wait for further price discounts before entering the market, given the current global uncertainties.
Property consultancy group Cushman & Wakefield also expects sentiment to remain cautious and does not expect an increase in sales volume over the next few months, though they are positive on the longer term prospects of the local property market.
Said Toby Dodd, country manager of Cushman & Wakefield Singapore: "Our longer term stance is that we're positive about Singapore residential, and as confidence returns to global markets, we shall feel the knock-on effect."
Wild Falcon
12-06-12, 09:36
They always choose the poor comparables like Sky Habitat. Did they know the resale in Bishan like Bishan Park is only $700psf? And they should benchmark resale suburbs vs resale CCR. And some of the locations they mention like Holland area that is languishing is no longer considered very "prime". Transport networks has made some of the other suburban locations even more accessible. In addition, some suburbs nearer MRT stations are considered more "attractive" than prime areas not near MRT stations. There is also a new trend where people look at quality of life instead of shopping shopping all the time. Just look at the recent case of residents at Upper Bukit Timah and Dairy Farm OPPOSING a commercial mall near their homes even though it doesn't have any malls. New lifestyle choices about people choosing to live near their parents in the suburbs and nearer nature areas is something these experts should not ignore. From what I know, many of us with CCR properties don't even stay there, we rent it out.
And stop spilling half truths. Paterson Suites moved units because the prices were slashed to $2500psf from almost $2800-3000psf some years back. The original investors lost almost $500psf. Sure feels like shit.
They always choose the poor comparables like Sky Habitat. Did they know the resale in Bishan like Bishan Park is only $700psf? And they should benchmark resale suburbs vs resale CCR. And some of the locations they mention like Holland area that is languishing is no longer considered very "prime". Transport networks has made some of the other suburban locations even more accessible. In addition, some suburbs nearer MRT stations are considered more "attractive" than prime areas not near MRT stations. There is also a new trend where people look at quality of life instead of shopping shopping all the time. Just look at the recent case of residents at Upper Bukit Timah and Dairy Farm OPPOSING a commercial mall near their homes even though it doesn't have any malls. New lifestyle choices about people choosing to live near their parents in the suburbs and nearer nature areas is something these experts should not ignore. From what I know, many of us with CCR properties don't even stay there, we rent it out.
And stop spilling half truths. Paterson Suites moved units because the prices were slashed to $2500psf from almost $2800-3000psf some years back. The original investors lost almost $500psf. Sure feels like shit.
Take it with a pinch of salt. they are most likely using this to promote for stproperty. which IMO is rubbish. Lot of wrong info.
They always choose the poor comparables like Sky Habitat. Did they know the resale in Bishan like Bishan Park is only $700psf? And they should benchmark resale suburbs vs resale CCR. And some of the locations they mention like Holland area that is languishing is no longer considered very "prime". Transport networks has made some of the other suburban locations even more accessible. In addition, some suburbs nearer MRT stations are considered more "attractive" than prime areas not near MRT stations. There is also a new trend where people look at quality of life instead of shopping shopping all the time. Just look at the recent case of residents at Upper Bukit Timah and Dairy Farm OPPOSING a commercial mall near their homes even though it doesn't have any malls. New lifestyle choices about people choosing to live near their parents in the suburbs and nearer nature areas is something these experts should not ignore. From what I know, many of us with CCR properties don't even stay there, we rent it out.
And stop spilling half truths. Paterson Suites moved units because the prices were slashed to $2500psf from almost $2800-3000psf some years back. The original investors lost almost $500psf. Sure feels like shit.
Can you elaborate the part about quality of life? Staying in OCR near MRT with fewer malls has higher quality of life? or do you mean other amenities like near community clubs and football pitches?
Many bulls = many :D :D :D
todays property market got a lot of gurus take it with a pinch of salt...:D
Or can be OCR to drop or even OCR to drop some and CCR to rise some.
Got a few permutations other than CCR to just rise. But over the longer term, surely CCR will be higher than OCR, just as new > old and MRT/amenities>no MRT/amenties.
These are Golden rules.
[quote=Ringo33]CCR property prices expect to rise soon?
Or can be OCR to drop or even OCR to drop some and CCR to rise some.
Got a few permutations other than CCR to just rise. But over the longer term, surely CCR will be higher than OCR, just as new > old and MRT/amenities>no MRT/amenties.
These are Golden rules.
When times are bad, the property investment mantra of location x 3 will prevail.
So instead of joining the herd to chase after $1500-1700psf suburban home, it might be better to pay 5 to 10% more to get a similar size FH CCR property that is near amenities and MRT.
When times are bad, the property investment mantra of location x 3 will prevail.
So instead of joining the herd to chase after $1500-1700psf suburban home, it might be better to pay 5 to 10% more to get a similar size FH CCR property that is near amenities and MRT.
How about 30% lesser at $1000-1200psf for a suburban home?
Location is not a constant over time in IMO. The MRT networks and amenities provision, plus the decentralisation for businesses, thoughout the island has levelled many of the so-called differences in location, especially for our little red dot. What remains solely is the prestige factor.
Not everyone works in the central region. In fact, proportion wise, less and less people will be working in the central region over time.
OCR properties near amenities and MRT are still more attractive and palatable, provided they are not priced inhumanely.
Many of us who own CCR properties to rent out also live in CCR too :cool:
Stop pretending OCR this and that are better, etc. No such thing. Brutal truth is either u can afford, or u cannot.
That is of course not to say any little corner of CCR is great. Plenty of pretentious or not here not there "CCR"s. But by and large, CCR is stiil for those who had arrived to stay. Plus a bit of old D15 if you like. But punggol? Hillview?
A girl friend of mine used to say jokingly, if her husband forced her to live in **** (better not name it explicitly), she will divorce him.
And I'm only talking about own stay. For investment purpose, that's another story.
phantom_opera
12-06-12, 21:52
I have to admit I have not arrived ... 1919@Sophia 2br goes out of my budget :beats-me-man: Paterson is in my wildest dream :hell-hath-no-fury:
CCR is not just shopping, also culture, arts, entertainment and prestige lah
Many of us who own CCR properties to rent out also live in CCR too :cool:
Stop pretending OCR this and that are better, etc. No such thing. Brutal truth is either u can afford, or u cannot.
That is of course not to say any little corner of CCR is great. Plenty of pretentious or not here not there "CCR"s. But by and large, CCR is stiil for those who had arrived to stay. Plus a bit of old D15 if you like. But punggol? Hillview?
A girl friend of mine used to say jokingly, if her husband forced her to live in **** (better not name it explicitly), she will divorce him.
And I'm only talking about own stay. For investment purpose, that's another story.
Are you sure Hillview is as bad as Punggol?
Reading between the lines... the report is saying:
"You stupid! Pay so much of LH OCR, might as well buy FH CCR"
That's my reading of the report, don't flame me:scared-3:
Reading between the lines... the report is saying:
"You stupid! Pay so much of LH OCR, might as well buy FH CCR"
That's my reading of the report, don't flame me:scared-3:
thats exactly what this article is saying. $1500-1700 psf for OCR new launches are just insane, even for shoebox standard. For the same price, or perhaps 10% more, you can get a FH shoebox in CCR.
Please refer to my comments on this subject last month.
http://forums.condosingapore.com/showthread.php?p=264624#post264624
FH people, hold your breath for the new peak.
howww I dream a dream 9xx psf for rivervalley, no hope? :( :(
howww I dream a dream 9xx psf for rivervalley, no hope? :( :(
Got. I think there are some HDBs along that stretch facing Beo Crescent. Should be much less than 9xx psf.
Got. I think there are some HDBs along that stretch facing Beo Crescent. Should be much less than 9xx psf.
No >50% in 2015 no BUY! how??
Are you sure Hillview is as bad as Punggol?
So happy it is because people see hillview no up, thats why its closer and closer to enbloc heaven in future. So crowded ang moh gao gao. Only waiting one day hillview launches a 3 BR at 1600 psf.
Allthepies
12-06-12, 22:45
And stop spilling half truths. Paterson Suites moved units because the prices were slashed to $2500psf from almost $2800-3000psf some years back. The original investors lost almost $500psf. Sure feels like shit.
If mostly are foreigner buyers which I assume is the case, then it is actually a slight discount of 50psf to 250psf (10% stamp duty). U can view it as hot demand, a slight 2 to 5% discount, and immediately sold 10 units!! :eek: Prime properties very hot!
You sing until OCR so good, then why buy and rent out CCR? Why not buy your so precious and valuable OCR to rent out at premium rental rate? lol! :beats-me-man:
By the way, my investment mantra is I don't wish to live in that property, I won't buy because I don't assume the person going to rent my property to be a stupid idiot willing to rent a property which I despise and have ZERO wish to live in there. :p
They always choose the poor comparables like Sky Habitat. Did they know the resale in Bishan like Bishan Park is only $700psf? And they should benchmark resale suburbs vs resale CCR. And some of the locations they mention like Holland area that is languishing is no longer considered very "prime". Transport networks has made some of the other suburban locations even more accessible. In addition, some suburbs nearer MRT stations are considered more "attractive" than prime areas not near MRT stations. There is also a new trend where people look at quality of life instead of shopping shopping all the time. Just look at the recent case of residents at Upper Bukit Timah and Dairy Farm OPPOSING a commercial mall near their homes even though it doesn't have any malls. New lifestyle choices about people choosing to live near their parents in the suburbs and nearer nature areas is something these experts should not ignore. From what I know, many of us with CCR properties don't even stay there, we rent it out.
And stop spilling half truths. Paterson Suites moved units because the prices were slashed to $2500psf from almost $2800-3000psf some years back. The original investors lost almost $500psf. Sure feels like shit.
phantom_opera
12-06-12, 23:15
CCR my precious :p
http://period7ap.wikispaces.com/file/view/gollum-n-the-ring.jpg/169633123/gollum-n-the-ring.jpg
Relax all, nobody disputes that CCR will still have greater absolute value than OCR, even over time. There are values that people attach and associate to being in the centre of the island as well as to certain districts that is hard to change over time. Some other types of amenities and facilities are also more abundant in the CCR.
Nonetheless, one must admit that there are attributes of properties that are subject to change. There has been consistent increases in the value in many suburban locations with respect to amenities and transport.
When one considers the value for money that each offers, the difference in loan quantum might be significant. If we compare as far as possible similar conditions, same psf, tenure, proximity to MRT and amenities, with the only variable being prestige, type of amenity and centrality of location, there will be a portion who only sees value in one kind and not the other, and we should respect the preferences of each group
It's the same situation for landed vs non landed. Some people always associate it with prestige while some find greater value in non-landed. It's quite difficult to convince the other group otherwise. Demand is a composite of willingness and ability to buy, and indeed subject to change over time. It's not just ability to buy means must buy.
rattydrama
13-06-12, 08:57
ccr or no ccr there is some truth now that buyer see 2nd hand pc a good bargain now. I think developer will have to try very hard to sell at peak price for new launch.
I still can find S$1100psf fh property at not so bad location.
Relax all, nobody disputes that CCR will still have greater absolute value than OCR, even over time. There are values that people attach and associate to being in the centre of the island as well as to certain districts that is hard to change over time. Some other types of amenities and facilities are also more abundant in the CCR.
Nonetheless, one must admit that there are attributes of properties that are subject to change. There has been consistent increases in the value in many suburban locations with respect to amenities and transport.
When one considers the value for money that each offers, the difference in loan quantum might be significant. If we compare as far as possible similar conditions, same psf, tenure, proximity to MRT and amenities, with the only variable being prestige, type of amenity and centrality of location, there will be a portion who only sees value in one kind and not the other, and we should respect the preferences of each group
It's the same situation for landed vs non landed. Some people always associate it with prestige while some find greater value in non-landed. It's quite difficult to convince the other group otherwise. Demand is a composite of willingness and ability to buy, and indeed subject to change over time. It's not just ability to buy means must buy.
you need to remember that post 2009, prices of OCR property has gone up so much that it is now making more sense for people to start considering CCR property. This is part and parcel of the property cycle because of perceived value. So dont need to argue which one is better.
Despite of what government has done to some township etc, CCR will always command a premium purely is it central region.
IMO, the tide is now starting to move toward CCR property and this should be a good thing because without CCR moving up, it will be difficult for OCR to move up higher.
you need to remember that post 2009, prices of OCR property has gone up so much that it is now making more sense for people to start considering CCR property. This is part and parcel of the property cycle because of perceived value. So dont need to argue which one is better.
Despite of what government has done to some township etc, CCR will always command a premium purely is it central region.
IMO, the tide is now starting to move toward CCR property and this should be a good think because without CCR moving up, it will be difficult for OCR to move up higher.
And you are absolutely right. But I do hope both do not go up anymore. Must think of the burdens of the future generations. Many children already do not have the luxury of the possibility of a stay at home parent even for a couple of years when both parents have to work for their housing loans for easily 30-40 years. If the cost is high people can consider location and size accommodations, but any higher just might just be beyond the tipping point.
Wild Falcon
13-06-12, 09:36
Whatever "R", prices are not moving up significantly anymore. There is no need for any "experts" to go around shouting "buy" calls using poor reference points like Sky Habitat. Also, 1% increase here and there is not a big deal because the mix because be different. Remember, there are quite a lot of recently TOPed properties on the "resale" market which generally fetched higher prices because they are newer.
phantom_opera
13-06-12, 10:53
it is definitely not fair to quote Sky Habitat as it is a niche product that is not market tested
Give more realistic comparison:
8RS near Boon Keng MRT
1br 441sqft - 580-650k
2br 700sqft - 900+k
Optima near Tanah Merah MRT
1br 484sqft - 700k
2br 947sqft - 1.16m
New compare to 1919 new FH:
1+S - 1.1m
2br 881sqft - 1.75m
and old 1997 FH UE Square:
1br 506sqft 950k
2bf 840sqft 1.2m
CCR 1br entry about 1 million for 1br, OCR near MRT now about 700k, FH vs LH
Optima 2br brand new can get UE Square but must spend $$ to revamp
What say u??
TheOnlyGayInTheVillage
13-06-12, 11:32
http://business.asiaone.com/A1MEDIA/business/06Jun12/images/20120612.185705_bt_1.jpg
http://business.asiaone.com/A1MEDIA/business/06Jun12/images/20120612.185705_bt_1.jpg
wah prime districts and FH somemore.
Very obvious choice for investors.
wah prime districts and FH somemore.
phantom_opera
13-06-12, 12:48
Watertown 60pc buyers private address
Thought less than that.
Watertown 60pc buyers private address
TheOnlyGayInTheVillage
13-06-12, 15:52
Very obvious choice for investors.
That table effectively called all buyers of the left projects carrot heads.
Wild Falcon
13-06-12, 16:14
Holland Road is also the toilet bowl of the prime district - there is a reason why Holland Road or Ulu Pandan is only $12++psf and not moving. Very near city? No. Very near nature? Near sea or good views? No. The definition of "prime" changes over time. That's why I say, the reference points in the report is all wrong. They compare the toilet bowl of the so-called "prime" district which is no longer that "prime" with the most expensive and unrepresentative Sky Habitat in the suburbs. Even East Coast considered more prime than Holland Road or Ulu Pandan now.
wah prime districts and FH somemore.
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