S'pore's private housing hits peak, with Q2 prices inching up just 0.17%

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Public housing hots up while private cools

Posted: 25 July 2008 1442 hrs


SINGAPORE : Prices for public housing on the resale market have risen while those for private property have moderated for the second quarter of 2008.

According to latest official figures there has also been little upward movement in the private property rental market.

Data for the HDB resale and rental markets based on transactions in Q2 saw HDB's Resale Price Index (RPI) up 4.5 per cent compared to the 3.7 per cent increase for the previous Quarter of 2008.

Reflective of the interest in public housing was the rise in resale transactions, from about 6,360 cases in Q1 '08 to about 7,760 cases, an increase by about 22 per cent.

Meanwhile subletting transactions in HDB flats increased by about 15 per cent to about 4,120 cases in the second quarter from about 3,580 cases in the first quarter.

In contrast, the private property market was a little more subdued with home prices increasing 0.2 per cent, the third straight quarter of slower growth signalling a definite slowing of the four-year housing boom.

Non-landed properties saw a modest 0.1 per cent rise compared with 3.7 per cent in the previous quarter as prices for condominium and apartments in districts 9, 10, 11, downtown district and Sentosa fell 0.1 per cent compared to similar properties in areas outside of the region which rose between 0.7 and 0.9 per cent.

As for landed property, prices rose 0.6 per cent compared with 3.9 per cent in the previous quarter.

Indicative of the cool-down in the property market are the 43,473 new units still unsold from a total supply of 67,569 uncompleted units from private housing projects.

This number includes more than 12,000 which developers have held back from launch and another 28,282 which are pending approval.

- CNA/sf

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July 25, 2008

S'pore's private housing hits peak, with Q2 prices inching up just 0.17%

Home rentals are also down by half, but HDB resale flats continue to draw more buyers.

By Fiona Chan


SINGAPORE'S private housing market appears to have peaked, with home prices inching up just 0.17 per cent in the April to June period.

This is the smallest rise in four years and well below the 3.8 per cent climb in the first quarter, according to the closely-watched data released by the Urban Redevelopment Authority (URA) on Friday.

In the prime districts, home prices actually slipped by 0.1 per cent in the second quarter, after climbing some 30 per cent last year.

Less well-located properties fared slightly better in the latest tally. Home prices in the city-fringe areas rose 0.7 per cent, while those in the suburbs went up 0.9 per cent.

The growth in private home rentals also halved, rising 2.5 per cent in April to June compared to six per cent in the previous quarter.

However, the HDB resale market continued to go from strength to strength. Prices jumped 4.5 per cent in the second quarter, from 3.7 per cent in the first quarter.

The number of resale deals also went up 22 per cent to 7,760 transactions. Outside of homes, office and shop prices went up a mere 0.7 per cent, with rental growth for offices also slowing.

They rose 6.3 per cent in the quarter, down from 7.3 per cent in the first quarter. Shop rentals, however, jumped 5.2 per cent in the period, from only one per cent previously.

During the second quarter, prices of landed properties rose 0.6 per cent, compared with 3.9 per cent in the previous quarter.

Prices of detached, semi-detached and terrace houses went up 0.7 per cent, 0.5 per cent and 0.7 per cent respectively.

The URA said the price index for private homes - an indicator of inflation holding at 26-year highs - rose to 177.5 for the three months ended June from 177.2 in the previous three-month period.

'The rates of increase in the prices and rentals of private residential and office properties have moderated in the second quarter as compared to the first quarter,' said the URA, noting that prices are not uniform and vary from project to project.

But there are a number of of uncompleted private units in the suburban areas with prices 'at more affordable level', it added.

Rentals of private residential homes rose 2.5 per cent during the second quarter - from the 6 per cent increase in the previous quarter.

Supply in the pipeline

There were 67,569 private homes in the pipeline at the end of the second quarter. Of these, 43,473 units were still unsold.

About 46,500 units are expected to be ready by 2011. A total of 1,814 units were launched for sale by developers, which was more than the 1,343 units in the first quarter.

More uncompleted units were sold by developers in the second quarter - 1,417 against 730 in the earlier quarter.

Office rentals up 6.3%

Overall rentals for office space, based on leases which began in the second quarter, rose by 6.3 per cent, compared with 7.3 per cent from January to March.

The median rentals were between $14.7 and $6.47 psf per month.

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July 25, 2008

HDB resale flats continue climb as private homes lose steam


Housing Board resale flats continue to draw buyers as private homes lose their lustre.

Prices for HDB resale flats rose further by 4.5 per cent in the second quarter, higher than the 3.7 per cent increase from January to March.

Continuing its lacklustre, private home prices rose just 0.2 per cent between April and June, compared with 3.7 per cent a quarter earlier.

The number of HDB resale transactions jumped by about 22 per cent, from about 6,360 cases in the first quarter to about 7,760 cases in the second.

The median Cash-Over-Valuation (COV) amount of all resale transactions in the second quarter was $20,000, a slight drop from the COV of $21,000 in the earlier quarter, said HDB on Friday.

Cases requiring COV made up 90 per cent of all resale transactions in this quarter, with the rest below valuation.

New flat supply

In the first six months, HDB launched a total of 4,524 new flats under the Build-To-Order (BTO) system, which provides the main supply of new flats.

Subject to demand, HDB plans to offer about 3,900 new flats under the BTO system over the next six months in Punggol, Sengkang and Bukit Panjang.

The total planned BTO supply of 8,400 new flats for this year will exceed last year's 6,000 units and 2006's 2,400 units.

This new flat supply will be in addition to flats offered under the balloting exercise for surplus replacement SERS flats, and balance flats from previous offers. HDB will provide more details of the BTO flats when the projects are launched

In tandem with rising rents for private residential properties, sublet rents for HDB flats also rose in the second quarter. The number of subletting transactions went up by about 15 per cent - from about 3,580 cases in the first quarter to about 4,120 cases in the second.

The total number of HDB flats approved for subletting rose to about 20,200 units, compared to about 18,700 units in the first three months.

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July 25, 2008, 12.47 pm (Singapore time)

S'pore private home prices up 0.2% in Q2


Urban Redevelopment Authority's private home price index increased 0.2 per cent in second quarter 2008 over the preceding quarter, slower than the 3.7 per cent quarter-on-quarter increase posted in Q1 2008.

The official price index for offices increased 0.7 per cent quarter-on-quarter in Q2 2008 while shop and industrial property prices posted gains of 0.7 per cent and 4.1 per cent respectively.

URA also said that rentals of private residential, office, shop and industrial properties increased by 2.5 per cent, 6.3 per cent, 5.2 per cent and 2.3 per cent respectively in Q2 2008 over Q1 2008.

'The rates of increase in the prices and rentals of private residential and office properties have moderated in Q2 2008 as compared to Q1 2008.

While the rate of increase in the prices of shop properties has also moderated in the Q2 2008, the rate of increase in the rentals of such properties has increased in the period as compared to Q1 2008.

For industrial properties, prices have increased at a faster pace in Q2 2008, while increase in rentals moderated in the period as compared to Q1 2008,' URA said. -- KALPANA RASHIWALA, BT NEWSROOM

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Published July 26, 2008

HDB resale market buoyant but upgrader effect still muted

Resale price index very close to record high of Q41996; Q2 transactions up 22%

By ARTHUR SIM


THE Housing and Development Board (HDB) has announced that its Resale Price Index rose by 4.5 per cent in Q2 2008 over the previous quarter and 8.4 per cent since Q4 2007.

The number of resale transactions also increased by 22 per cent quarter on quarter to hit 7,760 transactions.

On a half-yearly basis, a total of 14,120 transactions have been recorded so far, almost half of the 29,450 transactions for the whole of 2007.

The HDB Resale Price Index is now hovering very close to the all-time peak in Q4 1996, boosted by high resale prices in estates like Queenstown and Bukit Merah where the median price for five-room flats is now around $600,000.

But while a buoyant resale market can translate into a stronger HDB upgrader base, it may still be too early for developers to count on upgraders to prop up the private residential market.

DTZ executive director and regional head for consulting and research, Ong Choon Fah, said that HDB upgraders are 'still price-sensitive'.

According to DTZ's analysis, HDB upgraders accounted for 28 per cent of all private homes bought in Q1 2008, up from 22 per cent in the preceding quarter.

However, in 1998, when private property prices bottomed out, HDB upgrader transactions peaked at 62 per cent of all private property transactions.

And when the property market tanked again in 2002, HDB upgraders went in to buy up to 59 per cent of all private property transacted.

While the numbers suggest that HDB upgraders still find private property too expensive, Mrs Ong also pointed that HDB does now offer a 'spectrum' of property types to cater to more specific needs and price brackets.

Mrs Ong was referring to HDB's new Design, Build and Sell Scheme flats which have been selling well.

Sources also say that the 578-unit Park Central at AMK has received around 1,000 applications since its launch on June 23.

HDB has also launched a total of 4,524 new flats under the Build-To-Order (BTO) system for H1 2008.

ERA Asia Pacific assistant vice-president Eugene Lim points out that HDB upgraders tend to be those who sell their five-room or executive flats, and according to his analysis, this number has not increased significantly.

Five-room flats made up 26 per cent of all HDB resale transactions in Q2 2008, up from 25 per cent in the previous quarter while executive flats made up 9 per cent, up from 7 per cent quarter on quarter.

Four-room flats made up 37 per cent of all resale transactions, and Mr Lim also notes that the median price for this segment saw the highest increase by $15,000 to $300,000.

Mr Lim believes that the upgrader effect on the private property market could be curtailed by affordability too.

'Most upgraders will be looking for properties in the $650-$750 psf bracket,' he said.

Interestingly, the influx of new permanent residents (PRs) here has added to the demand for resale flats.

Mr Lim estimates that 20 per cent of buyers in the resale segment are PRs, up from 10-12 per cent a year ago.

However, whether PRs are partially responsible for the buoyant resale market is not known. HDB has not revealed the number of flats bought by PRs.

Perhaps a more interesting development is that the HDB Resale Price Index has begun to diverge from the private property price index, which grew by just 0.2 per cent in Q2 2008.

Still, most property consultants believe the chances of the two indices decoupling, to represent a disconnected private and public property markets, are remote.

Knight Frank director (research and consultancy) Nicholas Mak also highlights that between Q2 2002 and Q1 2004, prices of private homes fell, while HDB resale prices increased.

During this period, both indices did, however, remain relatively flat.

Mr Mak does believes that any divergence in price trends, if any, will only last for a few quarters before a correlation is re-established.

He added: 'Both private and public sectors do relate to the same macro-economic factors.'

DTZ's Mrs Ong also said that both sectors are linked by the 'substitutional effect'.

'If prices are too high in the private housing market, buyers will shift to the public housing market,' she added.

She also noted that significant shifts in price movements only tend to follow changes in housing policy and related spheres like Central Provident Fund.

Savills Singapore director (marketing and business development) Ku Swee Yong believes that HDB upgraders will eventually return to 'lend strong support' to the private property market, citing the interest, if not the take-up, in new mass-market launches like Livia and Clover by the Park as examples.


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July 26, 2008

Sharp drop in growth of private home prices

HDB resale flats, however, do well, strengthening in value

By Fiona Chan, Property Reporter


IT'S official: the private housing market has gone soft.

Prices peaked and rental growth braked sharply between April and June, with property consultants forecasting the beginning of a decline.

But Housing Board resale flats defied the trend and continued to strengthen in value as sales grew amid strong demand for cheaper homes.

Private home prices inched up just 0.17 per cent in the quarter - the least in four years and well below the 3.8 per cent in the first quarter.

The minuscule rise, announced by the Urban Redevelopment Authority (URA) yesterday, was even below the 0.4 per cent increase the agency had predicted at the beginning of this month.

This is the first time that the official figure has come in lower than forecast, 'a strong indication that home prices are finally softening', said Ms Tay Huey Ying, director of research and consultancy at Colliers International.

Prices are being dragged down by stubbornly gloomy market sentiment, stemming from the slowing global economy, high inflation and erratic stock market, say experts.

Developers have started to price projects more 'realistically' and individual home sellers are accepting lower offers, leading to an overall moderation of prices, according to Mr Li Hiaw Ho, executive director of CBRE Research.

In prime districts, prices of luxury homes dipped for the first time in four years after a spectacular climb of almost 70 per cent since 2005.

'This is the first fall since the start of the property boom in 2004 and could be the turning point in the price trend,' said Mr Nicholas Mak, Knight Frank's director of research and consultancy.

City-fringe and suburban homes barely fared better, with prices rising below 1 per cent in the second quarter.

Growth in home rents also halved in the second quarter to just 2.5 per cent, the lowest in two years. This could be due to fewer expatriates coming in as well as landlords starting to lower their asking rentals, said Mr Mak.

CBRE's Mr Li predicts an 'inevitable' correction in prices 'to the tune of 5 per cent to 10 per cent' in the second half of the year.

But Ms Tay from Colliers believes Singapore's mid-term prospects remain positive on the back of the two integrated resorts. This will 'hold prices steady and ensure they do not fall by more than 3 per cent in the third quarter', she said.

Still, caution prevails amid a large chunk of unsold homes waiting in the pipeline. Developers are sitting on some 12,500 new homes that are ready for launch, said URA.

Hopeful homebuyer Timothy Gan, 27, was cheered by the news that prices may fall. 'I'm waiting for their prices to fall so I can get married,' said the civil servant.

Prices and rentals of offices also grew more slowly in the quarter, as firms eased pressure on office supply by moving out of the central areas.

The bright spot is the HDB resale market, where prices keep rising due to higher valuations and strong demand from upgraders, downgraders and permanent residents, said Mr Eugene Lim, assistant vice-president of property agency ERA Asia-Pacific.

Resale deals jumped 22 per cent to 7,760 transactions in the second quarter, boosted by more sales of bigger flats. A quarter of all flats sold between April and June were five-room and executive flats, said Mr Lim.

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Weekend, July 26, 2008

Private property prices slow


PRIVATE home prices rose a slender 0.2 per cent over the second quarter. That’s half the Urban Redevelopment Authority’s earlier flash estimate of 0.4 per cent growth. This was the third consecutive quarter in which prices rose more slowly, after rocketing 31.2 per cent last year.

“The continued weakening of the property price index continues to reflect cautious sentiment in view of the slowing US economy, concerns about the sub-prime crisis and erratic stock market,” said Eugene Lim, assistant vice president at ERA Asia Pacific.

According to the latest government figures, prices of non-landed private residential properties fell by 0.1 per cent on quarter in the core central region, swinging from a 3.8 per cent increase in the previous three months.

Prices of properties in the rest of the central region increased by 0.7 per cent in the quarter, compared with a 3.3 per cent increase in the previous period. Outside the central region, prices increased by 0.9 per cent, slower than a 3.8 per cent rise previously. Prices of office, shop and industrial properties increased by 0.7 and 4.1 per cent respectively. The Government also said the increase in rentals of private residential properties slowed in the second quarter, rising 2.5 per cent compared with 6 per cent in the previous quarter.