Here is the full list of the 8 recent property cooling measures.
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Here is the full list of the 8 recent property cooling measures.
Suffice to say, the numerous property cooling regulations imposed by MND, URA, MAS, IRAS have done much to curb the speculative fever and more.
Background of Singapore's housing woes.
Prices to drop by 12-15%.
According to PropNex, over the next three years, 80,000 new BTO flats will be completed and keys handed over to buyers. HDB will also launch a total of 24,300 BTO flats in 2014 – this is just slightly lower than last year's supply of 25,100 units.
And according to Minister Khaw, 18,000 households in the next 3 years will be moving to a BTO flat, thus they are required to sell off their existing flat within the 6 months. With the forthcoming supply of HDB resale units in the market, it is expected to further create a downward pressure for HDB resale prices. In the next 2 years, we are expecting HDB resale prices may well drop by 12 to 15 percent," Mr Mohamed Ismail, CEO of PropNex Realty.
Resale prices for HDB flats continued their decline in the first quarter of 2014, a trend which is unlikely to reverse even by the end of this year — this is the result of a convergence of measures imposed last year to cool the market and a continued supply of new flats. HDB today indicated that the resale price index in 1Q14 was 198.5, which represented a 1.6 percent contraction from the previous quarter.
Price decline observed across all segments.
According to the Urban Redevelopment Authority, prices of private residential properties decreased by 1.3% in 1st Quarter 2014, following the 0.9% decline in the previous quarter.
Prices of non-landed properties in the Core Central Region (CCR) declined by 1.1%, following the 2.1% decrease in the previous quarter.
In Outside Central Region (OCR), prices declined by 0.1%, following the 1.0% decline in the previous quarter. Prices in the Rest of Central Region (RCR) declined 3.3%, after registering a marginal 0.4% increase in the previous quarter (see Annexes A-1, A-2 & A-62following a decrease of 1.0% in the previous quarter.
Rentals of private residential properties decreased by 0.7% in 1st Quarter 2014, greater than the 0.5% decline in 4th Quarter 2013. Prices of landed properties declined 0.7%,
Source: Singapore Business Review 25th April 2014
Developers are pressured by Qualifying Certificate deadline.
According to Colliers International, rents are expected to come under further downward pressure. The increasingly competitive market could prompt landlords to lower their rent expectations in order to secure tenants. As such, rents for luxury apartments are projected to decline by up to 10% for the whole of 2014.
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Developers of high-end properties may feel the heat to meet the Qualifying Certificate deadline, which requires developers whose shareholders and directors are not all Singaporeans, to complete construction of the development within five years and to sell all units within two years of obtaining the temporary occupation permit.
Furthermore, owners of high-end homes face higher holding costs with the kicking in of the progressive fiscal system on 1 January 2014.
Particularly for investors who are servicing mortgages, the abolishment of tax concessions for vacant properties, as well as higher taxes for high-end properties on the back of a weak leasing market, could be a push factor, prompting them to put their properties on the market for sale, adding to the pool of new unsold units.
The heightened competition could weigh on prices of high-end/luxury residential properties for which an average decline of between 10% and 15% could be seen in 2014.
Source: Singapore Business Review 23rd April 2014
Everyone's devastated by the sudden crash in March.
According to PropNex Realty, private home sales slowed more than 33% in March after picking up last month, given the cautious mood and overall fewer new launches.
Developer sales remain fairly muted in the month of March with a total of 724 units launched and 480 units sold (excluding ECs); and only one new residential project— The Santorini, entered the market last month.
Singapore is located in the heart of Asia, strategically placed at the cross roads of trade between the East and the West. A vibrant city- state of about 712.4 sq km, with a cosmopolitan population of 5.4 million people. Singapore is well regarded as a triple- A rated economy with strong growth potential- a sound, stable and winning location for investments as well as business.
Global investors and talents are attracted to work. live and play in Singapore by its transformation into a truly global metropolis. And many had decided to leverage on Singapore's growth by investing in real estate assests in the country. The last few years had seen an increase in foreign real estate investment in Singapore's residential and commercial property sectors.
When applied to real estate, the principle of supply and demand refers to the ability of people to pay for housing coupled with the relative scarcity of real estate. For any type of good or service to have value in any marketplace, it must possess four characteristics: demand, utility, transferability and scarcity. Demand is a need or desire coupled with the purchasing power to fill it, whereas utility is the ability of a good or service to fill that need. Scarcity means there must be a short supply relative to demand. Air, for example, has utility and is in demand, but it is not scarce. Finally, a good or service must be transferable to have value to anyone other than the person possessing it.
In recent years, this part of the island has been going through a holistic transformation by tapping on development potential and opportunities.
What used to be swamps and fish farms has since transformed into a vibrant suburban hub over the decades. Developed as an industrial town in the early 1960s, Jurong now no longer leaves an impression of a polluted industrialised area and has grown into a bustling precinct.
As part of the government’s plans for Remaking Our Heartland (ROH), a new lease of life has been injected into the Jurong Lake area, benefitting local residents and bringing the area to the attention of international visitors. The 360ha Jurong Lake District features two areas - Jurong Gateway and Lakeside.
INVESTORS hoping to take advantage of the master plan out this week should look at Woodlands and Village but hang fire on Kampong Bugis, Marina South, Serangoon Gardens and Jalan Kayu, said consultants.
They added yesterday that while plans for Tanjong Pagar and the Greater Southern Waterfront were exciting, they would materialise only far into the future.
Khaw wants integrated health care complex to be connected with homes and nature.
A new integrated health-care complex coming up in Woodlands promises to be like no hospital seen so far in Singapore. It includes an acute care hospital, community hospital and nursing home, will open in phases from 2022.
When completed, the development will provide some 1,800 beds.
The complex will be built on a 7.7ha site along Woodlands Avenue 12 and Woodlands Drive 17, opposite Christ Church Secondary. It will be within walking distance to the future Woodlands South MRT Station.
The plot of land which will be used to build the new Woodlands General Hospital, taken on Feb 15, 2014. A new integrated health-care complex, which includes an acute care hospital, community hospital and nursing home, will open in phases from 2022 in Woodlands. -- ST PHOTO: MARK CHEONG
There are no architect's designs or artist's impressions, but National Development Minister Khaw Boon Wan's brief for the planners is to break new ground, make it different and connect it with homes and nature.
Altogether, there will be up to 1,800 beds in a general hospital, community hospital and nursing home due to open in phases from 2022, he said at a community event yesterday at Woodlands Civic Centre.
Good deals for owner occupiers
With property prices finally losing steam, home buyers may be wondering whether it is the right time to take the plunge.
Both the private and public housing markets have begun to slow down, as sales volumes tumble and prices turn downwards.
Analysts expect the property market to sink further this year owing to a triple whammy of weak demand, an expected rise in interest rates and looming oversupply.
Singapore said Friday that measures it had implemented to cool down the property market have succeeded but it was "too early" to relax them.
On Feb 10, 2014, the Monetary Authority of Singapore (MAS) announced some exemptions that would please owners having difficulties refinancing older properties due to the TDSR measures. In their press release entitled, "MAS Broadens Exemption from TDSR Threshold for Refinancing of Owner-Occupied Residential Properties Purchased before the Implementation of TDSR Rules", it was announced that some exemptions will be allowed for owner occupied and investment properties.
The Monetary Authority of Singapore (MAS) has widened the existing exemptions from the Total Debt Servicing Ratio (TDSR) to cover the refinancing of loans for owner-occupied properties that were bought before the measure was introduced last year.
In a statement, the MAS said it had received feedback from borrowers who have faced challenges refinancing such loans.
Under the revised rules, a borrower who bought a residential property before the TDSR rules were introduced will be exempted from the TDSR threshold as long as the buyer occupies the home that is being refinanced.
Last week, a commercial site in Woodlands attracted strong interest from developers, including some of the biggest names in the business. Yesterday, the Government awarded the tender to a consortium of Far East Civil Engineering, Tannery Holdings and Sekisui House, which had beaten seven other bids with its offer of nearly S$634 million. That translates to about S$907 per square foot per plot ratio (psfppr), for the first commercial site put up for tender since the announcement last November of Woodlands Regional Centre as Singapore’s Northern Gateway.
A LACK of new supply and increased demand amid a more upbeat business climate boosted prime office rents in the first quarter, said property consultancy Cushman & Wakefield yesterday.
The average grade A overall rent hit $9.90 per square foot (psf) per month - up 5.5 per cent over the previous quarter and the fourth straight quarter of increases.
It was also up 10.1 per cent on the same period a year ago.
PASIR Panjang has long been associated with container ports and warehouses but that image is changing, consultants say.
Private apartments, mostly low-rise and freehold, now line the western stretch of Pasir Panjang Road close to Clementi Road.
Consultants said that although this area may not be at the top of investors' priority lists now, its star will rise as the Urban Redevelopment Authority's Draft Master Plan last year sparks further development in the area.
The port at Pasir Panjang will be relocated to Tuas after its lease expires in 2027.
RESALE prices of non-landed private homes inched up 0.2 per cent in March, led by an increase in transaction prices in the Rest of Central Region (RCR).
This marked a slight recovery from a 3.1 per cent decline in resale prices in February, flash estimates by the Singapore Real Estate Exchange (SRX) show.
Resale transactions increased significantly in March with 451 transactions registered - the highest resale volume since October. This is 82.6 per cent higher than a month ago but 22.5 per cent lower than in March last year.
Buying volume likely to improve.
According to Colliers International, taking into consideration the healthy interest seen during the launch of Lakeville in early April, primary market sales volume is expected to climb to the region of 500-800 units in April before improving further in the following months.
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