Month: January 2018

Malaysia is one of that doesn’t really tend to raise the interest rate, and more particularly the key interest rate. But at times, this can happen, and it actually ended up happening recently. This makes Malaysia the first country in SE Asia that ends up tightening its financial policy.

The increase on its own is not that large. It’s around 3.25%, and the previous rate was 3%. So, it’s not a huge bump. But it is a bump, and one that you need to take into account in here. The central bank has tried to implement this for quite some time, which means that it has been in the works for quite some time.

The problem for most people is that this increase doesn’t reflect the buying power. Sure, the Malaysian economy has gotten better, and the government actually seems to forecast a growth of 5.5% this year, which is really good. However, this type of approach may not sit well with everyone. Food costs and fuel costs are rising, which isn’t exactly ideal in such a situation.

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2017 was a mixed year for the Housing Development Board resale market with the number of resale transaction rising to 6.1% in comparison to the previous year, even as prices dropped.

The newest figures from the Board showed there were 22,077 resale transactions in 2017 while there were only 20,813 in 2016. The Housing Development Board also confirmed estimates for the year would be down 1.5%.

Experts believe that prices were forced down by numerous factors including the increase in housing grants, a shorter waiting period for the build to order units in some estates and the reselling of units previously picked up by other owners that are now back on the market.

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Over the course of the previous year, the share market was booming with lots of successful property developers who are now faced with the issue of supporting their newfound optimism with good sales figure in the wake of recent pressure.

According to researchers, there are a few corporations capable of releasing a number of innovative projects to gain from the upsurge in market, especially those firms that amassed a lot of landed properties prior to the rise in site values.

Owing to the 26.8% increase in the FTSE Straits Times Real Estate Holding and Development Index last year, it is correct to say the industry is quite healthy.

Following the 30 to 40% spike in price of shares last year, Brandon Lee, a property analyst at JPMorgan predicts a re-rating of a good number of property stocks for the New Year.

He added that based on what could ultimately turn out to be the early stages of a 3-year upsurge in the property market, the threat of rushed profit-taking remains small.

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It appears that developers and investors will have what to choose from in District 10, as two important properties are available to be purchased, as the result of collective sales. We are talking about Hollandia and Balmoral Gardens, two properties that still show the fact that the phenomenon of collective sales is not going to disappear anytime soon. The land rate for Hollandia is $1,515 for every square foot of the property, which has a total of 53,505 square feet, meaning that the starting price for this property jumps $163 million. Balmoral Garden is slightly more experience, with a land rate of $1,872 for every square foot, this freehold property having a total of 36,751.52 square feet, which means that the price expected by the owners ranges around the sum of $92 million.

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New Futura is one of the most important developments at the beginning of this year. Apparently, CDL which created New Futura has managed to move 18 units of this project at a price of $3200 per square feet, which is pretty good.

According to the market watchers, this is a very good showing and one that gives us a lot of trust into the results that can be obtained on the market. While it’s definitely not the ultimate price, the 5 agencies that backed this project seem to be pretty happy with it. And in many ways, that is for the best.

Considering the fact that only twenty five exclusive residential were released during the private show suites viewing on January 18^th, it’s miraculous to see more than 60% of those already sold. Simply put, this brings in front a very positive response and the new luxury project is definitely going to be followed with others.

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A piece of mixed commercial/residential plot along Holland Road is released by the Urban Redevelopment Authority (URA) for tender in 2017. The site has an area of 22, 967 square metres. The maximum gross floor area is 59,715 square metres, and out of this, 13,500 square metres will be used for commercial purposes.

Sitting in the heart of Holland Village, this mixed development is surrounded by an abundance of dining and retail options. The Holland village is a highly sought after location not only because of its close proximity to the city but also due to the vibrant lifestyle the town offers. Holland Village is also identified as an identity node by the URA due to its distinctive lifestyle destination, over here one can find a lot of hip cafes and restaurants.

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There are quite a few property developers in Singapore that anticipated the much-desired property market recovery, having a good level of activity in the past year so that they are ready when things start turning around. Now that it is happening, investors are looking for those developers that are capable of delivering according to their expectancies. In these conditions, how can a property developer ensure his success? He can do so with the help of solid sales of properties and higher prices for their units and, according to analysts, they will continue enjoying re-rating in the near future.

For quite a while, players in the property market of Singapore anticipated a turnaround of the market, some developers choosing to postpone the launches of their new properties until the coming of this moment. Thus, according to experts, the ones that will be ready to welcome these changes with brand new launches, more than needed to suit the requirements of growing market, will be the winners of the season, especially if they managed to secure the land for their property developments before the prices started going up. Mr Derek Tan, the DBS senior vice-president in charge of group equity research, believes that the stocks of developers will be subjected to increases ranging between 10 and 15%. According to what he says, developers that want to be successful in 2018 will have to deliver and meet the demands of the market, as the volume of transactions will continue to grow this year. This also means that the take-up rates for the new launch condos will be rather consistent.

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According to the data compiled by the Urban Redevelopment Authority (URA) in Singapore, executive condominiums and Singapore Condos are sitting at a four-year high for sales.

The Urban Redevelopment Authority notes that there were twenty-three percent more units sold last year coming in at 14,707 units whereas, in 2016, only 11,971 units were sold. Out of these 14,707 units, 10,682 of these were private residential units which make up a thirty-four percent increase than the 7,972 private residential units sold in 2016. This type of sales volume is a good indication that the private residential market is looking at an upturn which will help with its recovery and according to Ms. Tricia Song, head of research at Colliers International, this is very encouraging. Ms. Tricia Song added in that another twenty-five major private non-landed projects have the potential to be put on the market this year, yielding a potential of 15,000 – 16,000 units. Executive condos such as Hundred Palms Residences EC was also 100% sold during their preview.

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This year, according to an evaluation agreed upon by majority of the global organizations, global economic sentiment has risen to be far more positive.

Asia’s trade-dependent countries, like Singapore have had the opportunity to gain extensively from the far-reaching recovery in trade, investment, and manufacturing, and have benefited largely from the increasing global demand.

Although these risks are considered short-term, including mounting geopolitical pressures and financial strain, the main question at this moment is how far this recovery will continue. Longer-term problems such as ageing populations and flagging productivity have given rise to numerous concerns.

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In many occasions, the neighbors you have in the building where you live are almost like a second family, as you share your stories and experiences with them for so many years. So, when the times come to part, you feel the need to do it in a way that will make everybody remember the time spent together. This is what happened in the case of a group of people that owned apartments in Block 317, Shunfu Ville, a property that was recently put out for a collective sale and bought. But, before moving out, the residents of this bloc that lived on the 6th floor, decided to throw a farewell party, on the corridor of their floor.

This building has 358 units and all the residents of these units will have to move out very soon, as demolitions are scheduled to begin at this location next month. Qingjian Realty is the company that won the bid for the collective sale and acquired the estate in Bishan for $638 million. This means that each owner got somewhere around $1.78 million. The property was built in 1985 and now it is going to be demolished, making way for lander and high-rise residences. This collective sale was special right from the start, when it appeared in the newspapers, front page, in 2016, due to the fact that 82% of the owners expressed their agreement for the selling of the property. At that point, the sale of this property was the biggest since 2007, when Farrer Court got sold.

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SingHaiyi, a leading developer in Singapore, has won their third bid for a residential site in Clementi during an active sales frenzy. The residential site, Park West, is ideally located on Jalan Lempeng and nearby Clementi MRT Station.

This joint venture is SingHaiyi Land and Haiyi Wealth which are both subsidiaries companies of SingHaiyi.

Marketing agent Huttons Asia stated that the success of the transaction is the third attempt for a collective sale by the owners. Huttons Asia said the site could possibly yield 1.33 million square feet of space, once redeveloped.

Park West is a 99-year-old estate sitting on land that is approximately 633,644 square feet with a ratio of 2.1. With an additional $290.6 million differential premium and the lease upgrading premium, it is estimated to reach approximately $850 per square foot per plot ratio.

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In spite of the fact that quite a few apartment buildings were put up for a collective sale during the year that passed, plus the developers that launched themselves in bidding in a rather courageous manner, making everybody believe that the collective sale phenomenon will go through the roof, things are beginning to calm down. For 3 years in a row, the prices of properties were in a continuous drop, until this year started. Apparently, 2018 will bring the much-needed turnaround point in the property market of Singapore, as signs of improved traction are beginning to appear. Even so, we shouldn’t get ahead of ourselves with too much optimism because the change is far from being too significant at the moment.

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In April 2017, URA released a piece of land (Parcel C) in Tampines 10 for Government Land Sales (GLS). City Development Limited has placed a bid for a large condominium site in Tampines. Tampines is a residential area located in the Eastern region of Singapore. There were a total of 9 bids placed for the property which is much lower than was expected.

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It’s been a very good year for those who live in the HDB flats of the West Region of Singapore. Currently, as of March 2017, the government has spent 1.93 billion on Jurong West, a public housing development and residential town. The developmental town was made after the dissolution of Jurong Town and is the second largest town in terms of population within Singapore. The 1.93 billion was spent on the Home Improvement Program (HIP), with another 40 million spent on the “Enhancement for Active Seniors” (EASE) program.

The Home Improvement Plan was put in place in 2007, as a way to address maintenance problems that would crop up due to the age of the flats within the town. Issues like pipe sockets, laundry drying racks, and even broken concrete were the main concerns covered by the government as necessary essentials.  Since the creation of the Home Improvement Plan, over “101,000 flats” have been either upgraded, maintained or had maintenance done to them, with another 139,400 homes still eligible.  Once the program has run its course, it is estimated that over 300,000 flats will have been a part of the program.

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The residential homes prices were dropped to 3.1 percent in 2016. However, later on, all prices were increased to 1 percent.

If we compare everything then the increase in prices is as follows:

• Core Central Region (CCR): 0.8 %
• Rest of Central Region (RCR): 1.6 %
• Outside Central Region (OCR): 1.2 %

Note: These estimates have been based on two main things:

1. All the units that the developers have sold until 15 December
2. All the contracts that contain transaction prices

Let’s have a thorough look at the rise in prices and how it has affected the overall real estate operations.

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