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“Far too early” to worry of a private home oversupply

Despite the Monetary Authority of Singapore’s (MAS) warning that private home supply may significantly rise over the next few years on the back of the surge in en bloc deals, Maybank Kim Eng believes it is “far too early” to be worried of a potential oversupply, reported Today Online.

This comes as the redeveloped properties from the en bloc sales would not be entering the market until 2020 to 2021, said Maybank Kim Eng analyst Derrick Heng in a report.

He noted that the average net supply would still not be excessive – at a little more than 11,000 units per year – even after taking into account the completion of such projects in three to four years.

In fact, the figure is way lower compared to the 19,500 units added annually from 2014 to 2016 as well as the five-year average absorption rate of 13,200 units.

“As long as home buying sentiment is maintained, we believe fresh inventory from the Government Land Sales (GLS) and en bloc deals done can comfortably be absorbed,” said the report.

The availability of new inventory for sale may also be affected by delays or disputes in the collective sales deal.

“This should keep the supply of unsold units in the market in check,” it added.

In agreeing, JLL national director of research and consultancy Ong Teck Hui noted that instead of worrying of an oversupply, the potential supply coming from the en bloc sale sites sold since mid-2016 should be considered as “timely” in adding to the recent GLS programmes’ “low” supply.

Ong revealed that the unsold inventory of new private homes fell by about 50 percent over the last four years – from over 32,000 units in Q3 2013 to 17,421 units as at Q3 2017.

“Developer sales volume could end the year at around the 10,500 to 11,000-unit level. If this buying momentum is sustained into 2018 and 2019, the unsold stock of 17,421 units would be depleted in less than two years,” he said.

 

This article was edited by Keshia Faculin.

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Private home prices up 0.6% in October

Prices of completed private residential properties rose 0.6 percent in October, surpassing the 0.2 percent growth registered in September, revealed the latest flash estimates of the NUS Singapore Residential Price Index (SRPI).

Excluding small units, home prices in the central region climbed 1.2 percent, up from the 0.4 percent increase in the previous month. Prices in the non-central region also rose 0.3 percent, reversing the 0.1 percent drop posted in September.

The central region sub-basket comprises properties located in postal districts 1 to 4 as well as 9 to 11, while properties found in the other postal districts fall under the non-central region sub-basket.

However, prices of small units measuring 506 sq ft or below fell 0.8 percent, after increasing by one percent in September.

 

This article was edited by Keshia Faculin.

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Home sellers raising their prices by 4% in some areas: PropertyGuru Index

The CBD and its surrounding areas saw the highest increase in asking prices.

Home sellers are already starting to price their units higher following recent signs of a property market recovery in Singapore.

This according to the PropertyGuru Property Index launched on Thursday (23 November), which shows a 3.2 percent price increase in Q3 2017 from the quarter before, reflecting an inflection point after a steady decline from Q3 2015.

PropertyGuru said that sellers are “future-pricing” their homes in anticipation of the market recovery gaining strength in 2018, following the recent en bloc fever and growing confidence amongst developers.

The highest increase of four percent was in the city centre and the surrounding areas. This was followed by the suburbs in northern and western Singapore, which saw asking prices grow by 2.5 and 2.2 percent respectively.

The Index uses data from over 200,000 listings on PropertyGuru’s website, and is benchmarked against price levels as of Q1 2015.

At the same time, the supply of homes put up for sale fell by 4.5 percent in Q3 from the previous quarter in anticipation of higher prices next year.

“There is light at the end of the tunnel now that the market sentiment has finally taken a positive turn after two consecutive years of low seller confidence,” said Hari V. Krishnan, CEO of PropertyGuru Group.

“On the other hand, consumers looking to buy homes should consider closing on their property purchases and lock in prices at the current level.”

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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Landed home sales surge as prices drop to attractive levels

The ongoing recovery in the housing market saw landed home sales surge in the first 10 months of 2017 as landed property prices fell to attractive levels from their Q3 2013 peak, reported Business Times.

Between January and October, the number of landed homes sold stood at 1,513 units, up 50 percent from the 1,009 units moved over the same period last year.

Based on Savills Singapore’s analysis of caveats data from URA Realis data, the value of transactions rose 41.1 percent from $ 4.3 billion to $ 6.1 billion.

The preliminary figure for the period have also surpassed the result for the full-year 2016 at 1,187 units, sold at $ 5.1 billion.

The hike in transaction comes as landed residential properties registered a bigger price drop compared to non-landed private homes over 15 quarters before prices increased in Q3, said Savills Singapore research head, Alan Cheong.

He noted that the narrowed price difference between the two categories improved the attractiveness of landed homes.

Notably, URA’s price index for landed homes fell 16 percent between Q4 2013 and Q2 2017, while its non-landed private home price index contracted by only 10.2 percent.

“To some extent, buyers seem to have returned to the market with a vengeance, with sentiment buoyed by all the positive news about overall sales volume, record land prices, the influx of en bloc millionaires seeking replacement homes and improvements in the economy,” said Knight Frank Singapore executive director of residential sales and leasing Tay Kah Poh.

Cheong believes demand for landed properties in Singapore is “partly aspirational” as owning a landed home is still ranked high within the hierarchy of housing wants of Singaporeans.

Moreover, the overextended downturn in the property cycle has “unbottled pent-up demand for those wanting to buy a landed home”, he said.

 

This article was edited by Keshia Faculin.

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Widow sues grandson over Farrer Road family home

Claiming a 60 percent stake in the $ 4 million Farrer Road family home, 80-year-old widow Madam Lim Hoon Neo sued her 39-year-old grandson, Ang Wee Chai who had been named by her husband sole executor of the estate, reported The New Paper.

She was not mentioned in her husband’s will, in which the house was willed only to their eldest grandson and youngest son.

Madam Lim filed the suit after Ang Wee Chai has sought a court order to sell the two-storey terraced house and for his two uncles and grandmother to vacate the property.

He claims that he is merely fulfilling the wishes of his grandfather, who is the sole registered owner of the house.

Mr Ang Ho Sai, who died in 2014, and Madam Lim had five children, but one died in 1982.

They agreed to acquire the Farrer Road house in 1967 for $ 36,500.

According to Madam Lim, she contributed 60.3 percent or $ 22,000 to the purchase price.

Her lawyer, Tan Siah Yong, noted that the house was placed under the sole name of her husband since he was the one handling the transaction and the head of the family.

Based on her contribution, however, Madam Lim owns 60.3 percent of the house.

With this, Madam Lim wants the court to declare her right to live in the property until it is sold, after which she should be given 60.3 percent of the proceeds.

Ang Wee Chai, on the other hand, claims that the suit is just one of the attempt of his grandmother to thwart his efforts to administer the estate.

He revealed that Madam Lim and his two uncles had been blocking his efforts by refusing to cooperate with his attempts to dispose of the house in accordance with the will.

 

This article was edited by Keshia Faculin.

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