New Private Home Sales Flat Transaction Record of $1.4mil Amid Lack of New HDB Launches
A 1,216 square foot five-room house located on Henderson Road emerged as the most expensive resales flat in the past few years after it was auctioned at a record amount of $1.4 million earlier this month. The sales of brand new private residences, excluding executive condos (ECs), held the same in April, due to the absence of new projects launches.
A 1,216 square feet five-room house on Henderson Road emerged as the most expensive resale home ever, when it was purchased at record-setting $1.4 million earlier this month as reported by The Business Times.
In Block 96A This unit is situated at the 41st storey of the 48-storey building, offering stunning views of the surrounding area. The flat is fairly new, as the lease began in the year the year 2019.
“With delays to construction caused by COVID, this apartment offers buyers to get their homes quickly. It’s also uncommon to find new five-room apartments in older estates,” said Huttons’ Senior Director of Research Lee Sze Teck.
The area is home to an indoor pool, hawker center, shopping mall and market. Additionally, Tiong Bahru MRT station is a mere five minutes away , and Alexandra primary school is within walking distance.
But, this record-setting price is likely to be surpassed within the next few months, since another five-room apartment within this block has been priced as $1.5 million, according to Lee.
In the first quarter of 2022, 82 million dollars of HDB flats were bought and sold. As per the PropertyGuru Singapore Property Market Report Q2 2022 the asking prices for HDB flats for resales continue to rise during the first quarter of 2022, and reached the highest level ever recorded. However, the increases will likely to slow during the next quarter and/or remain near the peak up until BTO supply is restored.
New private home sales that are not ECs were steady in April. developers having sold 653 houses as compared to 654 units sold in March, despite the absence of new projects being launched according to Urban Redevelopment Authority (URA) statistics.
Christine Sun, Senior Vice President of Research and Analytics at OrangeTee & Tie, stated that sales of new homes “seem to be stabilizing” in the wake of an introduction of cooling measures in December the previous year.
In addition to ECs New home sales including ECs, new home sales 19.5% to 839 units in April, up from the 702 units sold in March.
On a year-to-year basis, home sales for new homes without ECs fell by 48.6% last month.
She pointed out her observation that Rest of Central Region (RCR) was responsible for the majority of the sales, with 44.3% or 289 units. Core Central Region (CCR) was second. Core Central Region (CCR) was second in the list with 31.5% or 206 units and the Outside Central Region was responsible for 24.2% or 158 units.
“This marks the very first time within the last 12 months that the sales of the CCR is greater than that of the OCR,” said Lee Sze Teck the senior director of research at Huttons Asia.
Additionally, the number foreign buyers making new purchases has increased from 25 cases in March up to 59 by April.
As Singapore relaxes Safety Management Measures and reopens its borders, expats are also returning to Singapore. In addition to increasing rents, especially in the privately owned property rental market and leasing private residences. Foreigners who purchase any property located in Singapore are bound by thirty% additional buyer’s stamp duty (ABSD), which acts as a deterrent to people who want to invest in local property.
Three residential sites in the Lentor area have been put up to the public through the Urban Redevelopment Authority The Urban Redevelopment Authority is releasing the sites expected to result in 1,265 housing units.
Notably, two sites are open to bid in the Confirmed List and the third one is open for tender through the Reserve List of the Government Land Sales (GLS) programme for the first quarter of 2022.
The confirmed list sites located at Lentor Central and Lentor Hills Road (Parcel B) span 13,444.3 sq meters and 10,819 sq metres in total. It is also the Reserved List site at Lentor Gardens on the other hand, covers 21,866.7 sq meters.
Huttons Asia’s Senior Director of Research Lee Sze Teck anticipates to see Confirmed List sites to attract low interest – with between three to five bidders , and the highest bid being between $1,050 and $1,000 per sq ft/plot ratio (psf per).
Three sites are located within the Lentor Hills estate and are serviced by the brand new Lentor MRT station, which is located on the Thomson-East Coast Line (TEL). There are many eateries throughout the area, as well as excellent amenities in the area including a grocery store and childcare facilities. As a sustainable neighborhood in the future residents will have the opportunity to relax in the lush greenery of the new linear parks.
Liv@ MB, Bukit Sembawang Estates condominium project, located in the Mountbatten region which has sold more than 75% of its 298 units for an average of $2,387 per square foot according to The Business Times.
Bukit Sembawang noted that Singaporeans living in the immediate vicinity comprised greater than 90% percent of purchasers.
It is situated in Arthur Road near the future Katong Park MRT, the 99-year leasehold building was began previewing on May 6, with estimates ranging from $1.08 million to purchase a single-bedder as well as $3.63 millions for four bedrooms in a deluxe apartment.
“Another major project launched in 2022 has racked up over 70% sales on the day of launch. This is remarkable in the backdrop of the cooling measures that will be in effect in the month of December in 2021. the rising rate of interest, rising inflation and global uncertainty,” stated Huttons Asia CEO Mark Yip.
According to him, the appealing starting price of $2,080 per square foot added value to buyers. He added that the market views the price to be reasonable due to the rise of construction prices.
Liv @ MB is situated close to many prestigious schools including Tanjong Katong Primary School, Chung Cheng High School (Main), Tanjong Katong Girl’s School and Dunman High School, and medical facilities. Residents of the future can anticipate access to shopping centers like KINEX or PLQ Mall quickly and also the numerous local eateries and restaurants.
Kensington Park, an apartment complex of 316 units located in Serangoon Garden, has been offered for sale via public tender, and has a target cost at $1.28 billion, as revealed by the exclusive the marketing agency CBRE.
With the development fee (DC) of around $178.1 million. This cost amounts to the land rate of $1,414 per square foot per plot ratio (psf ppr). The land rate is set to be reduced to $1,371 psf per ppr when taking into account the 7% extra gross floor area of balconies as well as the DC of around $232.1 million.
It is situated at 2,4 7, 8 and located at 2, 4, 6, 8, 10, and 12 Kensington Park Drive, the leasehold development, which is 999 years old, covers an enormous 491,000 square feet site which is designated for “Residential” usage under the master plan for 2019. Plan with an average plot ratio of 2.1 and an upper limit on building height of up to 24 floors.
The auction to purchase Kensington Park closes on 7 July.
In the PropertyGuru Property Market Report Q2 2022, small and medium-sized developments will continue be the most popular in the bloc market. Other projects that are offered for sale include Lakepoint condos as well as Thomson View.
The rising interest rate and the increasing demand for housing could be a problem for homeowners who depend upon rental revenue, according to The Business Times using The Institute of Real Estate and Urban Studies (IREUS) located at the National University of Singapore.
Singapore’s interest rates for its domestic market are heavily influenced by global market trends and, in particular, the US. As inflationary pressures are likely to continue central banks around the globe are being pressured to raise rates of interest to curb price inflation.
The Singapore Interbank Offered Rate ( SIBOR) is a favored standard in the field of loan rates that are floating as well as the mortgage rate are predicted to rise further and put the homeowner who is highly leveraged under pressure.
The strong rental market for homes that are privately owned provides an opportunity for investors renting their properties because the rental income could be used to provide a cushion to help pay for mortgages with higher payment.
However, the private residential rental market’s capacity will be tested when increasing numbers of housing units are anticipated to be completed between 2022 until 2024. Around 10,401 units are scheduled to be completed between Q2 and Q4 2022. There will be 16,978 units in 2023, and another 10,850 units in 2024.
Lee Nai Jiais the Deputy Director at IREUS anticipates that the new supply of workers to be a significant burden on private home rental prices until a massive inflow of foreigners fuels the demand for rental homes.
Changi Airport Group (CAG) announced the fact that Changi Airport Terminal 2 will open in phases starting on May 29 to accommodate the expected increase in passengers’ traffic over the coming months, according to Channel News Asia.
The terminal was shut down to upgrade work in May of 2020. When completed in 2024, the expansion will expand its capacity from five million to 28 million passenger trips every year.
“CAG is delighted to see the rapid growth in travel demand and has been working together with partners in order to accelerate the gradual opening of T2 prior to the June peak in travel to meet this demand” stated Tan Lye Teck, Executive Vice President of Airport Management of CAG.
“The beginning of flights in Terminal 2 will provide more capacity to help our airlines partners, and they are getting ready to serve more passengers in the coming months. Terminal 2 will be reopened in stages over the coming two years, to help Changi’s rebirth as a regional hub for air,” he added.
A three-storey industrial structure situated on 1. Ang Mo Kio Street 63 is on the market via a private treaty worth $27 million, according to the exclusive market agent CBRE.
The project has a huge loading space as well as a parking spaces for the redevelopment of. The development also has an office auxiliary to the building and a food service for staff.
The total floor area of 116,768 square feet, this development is located on an 87,340 sq feet site which is designated for “Business 2” for use in the 2018 Master Plan with a plot ratio of 2.5.
“1 Ang Mo Kio Street 64 will be appealing to industrialists seeking to be part of an established cluster of technology industrialists working who work in advanced manufacturing, high-tech and semi-conductor industries,” said Graeme Bolin the Head of Occupier and Leasing, Industrial and Logistics Services at CBRE.
Locals who want to invest in a property and avoid paying ABSD might consider purchasing commercial property or an overseas property. Are you interested in learning more? Check out our guide to purchasing commercial Property Singapore. Singapore.