New Reporter
15-06-23, 13:47
Stabilising home prices
Jun 13, 2023
BUYERS of Housing and Development Board (HDB) resale flats can probably heave a sigh of relief that resale prices are no longer rising at a frenzied pace.
HDB resale flat prices rose in May at 0.3 per cent, compared with 1.1 per cent in April, according to flash estimates from SRX and 99.co.
May’s figures mark the third month of marginal price increase, which analysts attribute to sellers becoming more realistic and buyers being more rational as they feel less pressured amid the increased flat supply.
What happens with HDB resale prices matters greatly to the private homes market. Much demand for mass to mid-market condominiums come from people using proceeds from selling their HDB homes to buy private homes.
Perhaps HDB resale and private home prices are entering a phase where prices remain flat or rise marginally.
Also, as more housing supply gets completed, maybe the home rental market here will become more tenant-friendly.
As it is, rental demand for homes in Johor, Malaysia, have surged amid soaring Singapore rents.
Some help for home renters here will come from the HDB’s move to set aside more temporary housing for families waiting for their new flats, doubling the number of interim rental flats to 4,000 over the next two years.
Notwithstanding economic uncertainties, attractive products here continue to draw private home buyers. The 48 semi-detached houses at Eleven@Holland put up for mortgagee sale have drawn strong interest from buyers since the units – priced between S$3.7 million and S$4.4 million – opened for viewing.
These units are part of the 99-year leasehold development, located near Sixth Avenue MRT Station, that was developed by Clydesbuilt (Holland Link), which is being wound up.
Meanwhile, BT reported that the Fangiono family behind Singapore-listed palm oil producer First Resources is racking up four Nassim Road bungalow purchases this year. This includes the purchase of a trio of bungalows owned by Cuscaden Peak Investments for a total of S$206.7 million or S$4,500 per square foot of land area.
Located near the Singapore Botanic Gardens, bungalows in the Nassim Road areas are among Singapore’s most coveted homes.
Owners of bungalows in Nassim Road, with their large plots, will probably have little trouble providing parking space for their car collections or visitors.
However, the availability of car park spaces can be an issue at certain condominiums and landed housing estates. I delve into the issue of homeowners finding homes where there are adequate car park spaces in this week’s The Level Ground.
Could selling of car park lots at condominium developments be widely practised in Singapore in future?
Outside of the residential space here, major redevelopment could finally be in the works for a stretch of prime Orchard Road real estate owned by tycoon Ong Beng Seng’s Hotel Properties Limited (HPL).
A development proposal has been submitted to the Urban Redevelopment Authority involving land parcels that currently house HPL’s Forum The Shopping Mall, the voco Orchard Singapore hotel, and HPL House.
Beyond Singapore, local-listed Hongkong Land Holdings said it plans to open 10 retail developments in the next five years in seven cities across China, bringing the total number of commercial projects in the country to 17. Could this bold bet on retail property in China by the over 130-year-old company pay off?
In Hong Kong, some optimism may be returning to the retail property sector. At Silvercord, which is a mall in the premier shopping district of Tsim Sha Tsui, three floors have been leased to a dining and entertainment group for almost US$900,000 a month, the biggest lease by size and value since the pandemic ended, according to a report.
Prospects for China’s real estate sector may be humdrum. A research note by US investment bank Goldman Sachs Group opines that China’s struggling real estate industry is expected to see an L-shaped recovery in the coming years, placing a drag on the world’s second-largest economy.
In the listed trust space here, the push by activist investor Quarz Capital to internalise the manager of Sabana Industrial Reit will be closely watched. My colleague Ben Paul argues that the proposal to internalise Sabana Reit’s manager transfers value from ESR Group to unitholders.
I like listed trusts that have managers, which are owned by unitholders. I have worked overseas for such a trust before and enjoyed selling the merits of how this management arrangement benefits investors.
If Singapore’s listed trust market move from where external managers dominate to one where trusts are largely internally managed, this could hurt the prospects of leading sponsors of property trusts such as CapitaLand Investment and Mapletree Investments.
Perhaps, major sponsors of listed trusts here need to up the ante in passionately arguing why having external managers is good.
There continues to be strong interest in green financing among listed trusts. CapitaLand Integrated Commercial Trust’s seven-year senior green bond, with an issue size of S$400 million, was over two times subscribed. The notes carry a coupon rate of 3.938 per cent.
Eyes of developers and property buyers will be glued to the release of the second half of 2023 Government Land Sales Programme, which is expected soon. What sites will catch the market’s attention? Will there be further ramping up in supply of residential sites?
Home prices here could be entering a “boring” phase of stabilisation. However, there is no time for slumber - plenty is still going on in the economically important real estate market at home and abroad.
https://www.businesstimes.com.sg/property/stabilising-home-prices
Jun 13, 2023
BUYERS of Housing and Development Board (HDB) resale flats can probably heave a sigh of relief that resale prices are no longer rising at a frenzied pace.
HDB resale flat prices rose in May at 0.3 per cent, compared with 1.1 per cent in April, according to flash estimates from SRX and 99.co.
May’s figures mark the third month of marginal price increase, which analysts attribute to sellers becoming more realistic and buyers being more rational as they feel less pressured amid the increased flat supply.
What happens with HDB resale prices matters greatly to the private homes market. Much demand for mass to mid-market condominiums come from people using proceeds from selling their HDB homes to buy private homes.
Perhaps HDB resale and private home prices are entering a phase where prices remain flat or rise marginally.
Also, as more housing supply gets completed, maybe the home rental market here will become more tenant-friendly.
As it is, rental demand for homes in Johor, Malaysia, have surged amid soaring Singapore rents.
Some help for home renters here will come from the HDB’s move to set aside more temporary housing for families waiting for their new flats, doubling the number of interim rental flats to 4,000 over the next two years.
Notwithstanding economic uncertainties, attractive products here continue to draw private home buyers. The 48 semi-detached houses at Eleven@Holland put up for mortgagee sale have drawn strong interest from buyers since the units – priced between S$3.7 million and S$4.4 million – opened for viewing.
These units are part of the 99-year leasehold development, located near Sixth Avenue MRT Station, that was developed by Clydesbuilt (Holland Link), which is being wound up.
Meanwhile, BT reported that the Fangiono family behind Singapore-listed palm oil producer First Resources is racking up four Nassim Road bungalow purchases this year. This includes the purchase of a trio of bungalows owned by Cuscaden Peak Investments for a total of S$206.7 million or S$4,500 per square foot of land area.
Located near the Singapore Botanic Gardens, bungalows in the Nassim Road areas are among Singapore’s most coveted homes.
Owners of bungalows in Nassim Road, with their large plots, will probably have little trouble providing parking space for their car collections or visitors.
However, the availability of car park spaces can be an issue at certain condominiums and landed housing estates. I delve into the issue of homeowners finding homes where there are adequate car park spaces in this week’s The Level Ground.
Could selling of car park lots at condominium developments be widely practised in Singapore in future?
Outside of the residential space here, major redevelopment could finally be in the works for a stretch of prime Orchard Road real estate owned by tycoon Ong Beng Seng’s Hotel Properties Limited (HPL).
A development proposal has been submitted to the Urban Redevelopment Authority involving land parcels that currently house HPL’s Forum The Shopping Mall, the voco Orchard Singapore hotel, and HPL House.
Beyond Singapore, local-listed Hongkong Land Holdings said it plans to open 10 retail developments in the next five years in seven cities across China, bringing the total number of commercial projects in the country to 17. Could this bold bet on retail property in China by the over 130-year-old company pay off?
In Hong Kong, some optimism may be returning to the retail property sector. At Silvercord, which is a mall in the premier shopping district of Tsim Sha Tsui, three floors have been leased to a dining and entertainment group for almost US$900,000 a month, the biggest lease by size and value since the pandemic ended, according to a report.
Prospects for China’s real estate sector may be humdrum. A research note by US investment bank Goldman Sachs Group opines that China’s struggling real estate industry is expected to see an L-shaped recovery in the coming years, placing a drag on the world’s second-largest economy.
In the listed trust space here, the push by activist investor Quarz Capital to internalise the manager of Sabana Industrial Reit will be closely watched. My colleague Ben Paul argues that the proposal to internalise Sabana Reit’s manager transfers value from ESR Group to unitholders.
I like listed trusts that have managers, which are owned by unitholders. I have worked overseas for such a trust before and enjoyed selling the merits of how this management arrangement benefits investors.
If Singapore’s listed trust market move from where external managers dominate to one where trusts are largely internally managed, this could hurt the prospects of leading sponsors of property trusts such as CapitaLand Investment and Mapletree Investments.
Perhaps, major sponsors of listed trusts here need to up the ante in passionately arguing why having external managers is good.
There continues to be strong interest in green financing among listed trusts. CapitaLand Integrated Commercial Trust’s seven-year senior green bond, with an issue size of S$400 million, was over two times subscribed. The notes carry a coupon rate of 3.938 per cent.
Eyes of developers and property buyers will be glued to the release of the second half of 2023 Government Land Sales Programme, which is expected soon. What sites will catch the market’s attention? Will there be further ramping up in supply of residential sites?
Home prices here could be entering a “boring” phase of stabilisation. However, there is no time for slumber - plenty is still going on in the economically important real estate market at home and abroad.
https://www.businesstimes.com.sg/property/stabilising-home-prices