reporter2
28-03-22, 10:37
Relaxing of safe management measures at sales galleries, border curbs could support new home sales
Watchers say allowing more prospective buyers to visit showrooms could bring more foreign buyers to Singapore
Mar 26, 2022
THE easing in travel curbs and in safe distancing measures at sales galleries could lift demand for new private homes, although the supply of unsold inventory remains tight.
In a circular to housing developers dated Thursday (March 24), the Urban Redevelopment Authority's Controller of Housing informed developers that group sizes within show galleries would be expanded to 10 people starting
Mar 29. This is line with sweeping changes to domestic and border curbs announced by the government as Singapore takes a decisive step towards endemic living.
For crowds of over 1,000 people at any one time, the capacity limit at show galleries would be capped at 8 square metres (sq m) per person. This has been revised from a capacity limit of 10 sq m per person.
Analysts say the bump in group size could help with sales as more prospective buyers will be able to visit sales galleries, including extended families.
Ismail Gafoor, chief executive of PropNex, expects that the relaxation of travel curbs could bring more foreign buyers to Singapore's shores, which in particular could benefit residential developments in the Core Central Region (CCR).
During the pandemic, the proportion of new non-landed private homes in the CCR purchased by foreigners slumped to 12 per cent in 2020 and 9.8 per cent in 2021, down from 23.5 per cent in 2019.
Highlighting Singapore's status as a safe haven, Gafoor said: "As international travel resumes and gains traction again, we could potentially see foreign demand returning for project launches in the CCR. Singapore remains an attractive investment destination with its stable currency and political environment, and excellent infrastructure."
Singapore's pivot to endemic living could also been seen as a plus point.
However, under the latest cooling measures implemented in December, foreign buyers are now subject to a 30 per cent additional buyer's stamp duty (ABSD) rate for any residential property, up sharply from 20 per cent previously.
A reduced number of launches this year and limited unsold inventory has PropNex maintaining its forecast of new home sales at 9,000 to 10,000 units (excluding executive condominiums) for 2022. In comparison, developers sold over 13,000 new private homes last year.
As at end-2021, there were 14,154 unsold units, down about 17 per cent from the third quarter of 2021.
Upcoming property launches include 99-year leasehold Piccadilly Grand at Northumberland Road - jointly developed by City Developments (CDL) and MCL Land - which is due to begin previews in April.
The mixed-use development has 407 residential apartments, with units ranging from one- to five-bedrooms, as well as 2,000 sq m of commercial space.
A spokesperson for CDL said that the developer plans to continue with digital marketing and sales bookings - as it has done for recent launches - although the latest changes will mean that it will be able to accomodate bigger groups for those preferring in-person appointments.
They added: "The reopening of our borders and the return of staff to the workplace will further boost sentiment and market confidence. Notwithstanding the latest cooling measures in December and the ongoing geopolitical volatility, we remain positive on the fundamentals of the Singapore residential sector."
Bukit Sembawang's Liv @ MB (former Katong Park Towers) at Arthur Road and Qingjian Realty's The Arden at Phoenix Road are also expected to be launched for sale in the second quarter of this year.
OrangeTee's senior vice-president of research & analytics, Christine Sun, reckons some developers may move their launches forward to capitalise on the positive news, while others may choose to relaunch any existing projects that still have unsold units.
For its part, the real estate agency is also looking at hosting on-site seminars for prospective buyers and, potentially, project exhibitions.
Watchers say allowing more prospective buyers to visit showrooms could bring more foreign buyers to Singapore
Mar 26, 2022
THE easing in travel curbs and in safe distancing measures at sales galleries could lift demand for new private homes, although the supply of unsold inventory remains tight.
In a circular to housing developers dated Thursday (March 24), the Urban Redevelopment Authority's Controller of Housing informed developers that group sizes within show galleries would be expanded to 10 people starting
Mar 29. This is line with sweeping changes to domestic and border curbs announced by the government as Singapore takes a decisive step towards endemic living.
For crowds of over 1,000 people at any one time, the capacity limit at show galleries would be capped at 8 square metres (sq m) per person. This has been revised from a capacity limit of 10 sq m per person.
Analysts say the bump in group size could help with sales as more prospective buyers will be able to visit sales galleries, including extended families.
Ismail Gafoor, chief executive of PropNex, expects that the relaxation of travel curbs could bring more foreign buyers to Singapore's shores, which in particular could benefit residential developments in the Core Central Region (CCR).
During the pandemic, the proportion of new non-landed private homes in the CCR purchased by foreigners slumped to 12 per cent in 2020 and 9.8 per cent in 2021, down from 23.5 per cent in 2019.
Highlighting Singapore's status as a safe haven, Gafoor said: "As international travel resumes and gains traction again, we could potentially see foreign demand returning for project launches in the CCR. Singapore remains an attractive investment destination with its stable currency and political environment, and excellent infrastructure."
Singapore's pivot to endemic living could also been seen as a plus point.
However, under the latest cooling measures implemented in December, foreign buyers are now subject to a 30 per cent additional buyer's stamp duty (ABSD) rate for any residential property, up sharply from 20 per cent previously.
A reduced number of launches this year and limited unsold inventory has PropNex maintaining its forecast of new home sales at 9,000 to 10,000 units (excluding executive condominiums) for 2022. In comparison, developers sold over 13,000 new private homes last year.
As at end-2021, there were 14,154 unsold units, down about 17 per cent from the third quarter of 2021.
Upcoming property launches include 99-year leasehold Piccadilly Grand at Northumberland Road - jointly developed by City Developments (CDL) and MCL Land - which is due to begin previews in April.
The mixed-use development has 407 residential apartments, with units ranging from one- to five-bedrooms, as well as 2,000 sq m of commercial space.
A spokesperson for CDL said that the developer plans to continue with digital marketing and sales bookings - as it has done for recent launches - although the latest changes will mean that it will be able to accomodate bigger groups for those preferring in-person appointments.
They added: "The reopening of our borders and the return of staff to the workplace will further boost sentiment and market confidence. Notwithstanding the latest cooling measures in December and the ongoing geopolitical volatility, we remain positive on the fundamentals of the Singapore residential sector."
Bukit Sembawang's Liv @ MB (former Katong Park Towers) at Arthur Road and Qingjian Realty's The Arden at Phoenix Road are also expected to be launched for sale in the second quarter of this year.
OrangeTee's senior vice-president of research & analytics, Christine Sun, reckons some developers may move their launches forward to capitalise on the positive news, while others may choose to relaunch any existing projects that still have unsold units.
For its part, the real estate agency is also looking at hosting on-site seminars for prospective buyers and, potentially, project exhibitions.