Our top local and international property stories.
Review of cooling measures not dependent on election: Shanmugam
| The Singapore government’s decision to tweak the property cooling measures will not be dependent on the election, but on various factors such as the state of the economy, situation of the property market and wage growth, said Law and Foreign Affairs Minister K Shanmugam and reported by Channel NewsAsia.He made the statement at a real estate convention organised by property firm RE/MAX Singapore, in response to a question on a review of the property cooling measures.Although the minister admitted that he was not in a position to decide when to ease the measures, he offered a glimpse on what could influence such a move from the government.“Somebody just told me they are all hoping that after the elections, it would be taken off,” shared Shanmugam.
“But I don’t know why people linked it to the elections. These cooling measures came in a long time ago, they either make sense or they don’t make sense. And elections by itself is not a factor. What is, is the state of the economy, the state of supply and demand, the state of prices and the linkage to wages – those are the factors.” Held recently at Raffles City Convention Centre, the inaugural RE/MAX Asia Pacific Convention witnessed the launch of Real Centre Academy (Asia) (RCA), a regional centre for real estate professionals seeking cross-border training. |
The event, which was supported by PropertyGuru, saw over 500 attendees including 200 overseas delegates from the real estate industry attend the morning session.
RCA seeks to provide regional and international courses to real estate professionals with at least three years of experience, with courses including a Real Estate Mastery Programme (REMP), a Peak Performance Programme (PPP) and an International Internship Programme (IIP).
“We hope to transform how real estate professionals in Asia live, learn and earn,” said RE/MAX Singapore chairman Ken Lim.
“Real Centre Academy (Asia) will help them succeed in business as they learn what it takes to handle cross-border transactions. With the knowledge and business relationships gained through their training, they can make their brokerage profitable,” he added.
Resale condo prices continue to weaken
| Flash estimates of the NUS Singapore Residential Price Index (SRPI) revealed that prices of completed non-landed residential properties in Singapore continued to fall in May 2015.The decline was attributed to buyers holding back their purchases due to the restrictive cooling measures and loan curbs.Across the island, prices dropped 0.6 percent in May, higher than the 0.3 percent decrease reported in April.Not including small units, prices of private apartments in the central region dipped 1.0 percent in May, more than the 0.3 percent fall in the month before. But homes in the non-central region registered a smaller 0.1 percent slide after dropping 0.4 percent previously.
Meanwhile, prices of small units which have a floor area of 506 sq ft or below fell 1.3 percent after rising 0.4 percent in April. The NUS price index for the central region tracks properties located in districts 1 to 4 and 9 to 11. Properties outside these districts fall under the non-central region. |
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CapitaLand still positive on Iskandar
| CapitaLand remains optimistic about the potential of Iskandar Malaysia despite threats of property oversupply as it moves forward with plans to build a premier waterfront residential community on A2 Island in Danga Bay.The development will comprise high-rise apartments, landed homes and other supporting amenities.The property giant said it “takes a long-term view of this project and is confident of the long-term prospects of Iskandar Malaysia,” adding that the development will be paced and executed in phases over a period of 10 to 12 years according to market conditions, as originally planned.It is understood that conditions on the acquisition of land parcels on A2 Island have been met by Hallmark Connection Sdn Bhd (HCSB) under a sale and purchase agreement (SPA) between HCSB and Iskandar Waterfront Sdn Bhd (IWSB).
CapitaLand subsidiary CLM Isle Investment owns 51 percent of HCSB, while IWSB and Temasek own 40 percent and 9.0 percent of HCSB respectively. During a parliamentary session in May 2015, Minister for Culture, Community and Youth Lawrence Wong warned of a future housing glut in Iskandar that could devalue homes. “Based on data from Malaysia’s National Property Information Centre (NAPIC), there are around 336,000 new private residential units in the pipeline — more than the total number of private homes in Singapore,” said Wong. He added that buyers have become more cautious with surveys showing the number of Malaysian properties purchased through local property agencies has plunged from 2,609 units in 2013 to 838 last year. |
MAS refines proposals to strengthen REIT market
| In response to industry feedback, the Monetary Authority of Singapore (MAS) on Thursday (2 July) announced that it has refined its proposals to strengthen the real estate investment trusts (REITs) market.The enhancements, which will be phased in to facilitate a smooth implementation by the industry, will include strengthening corporate governance and increase transparency of fee structure where at least half of the manager’s board of directors must be independent directors, if unitholders do not have the right to appoint the manager’s directors.The changes also include increasing leverage limit imposed on a REIT from 30 percent to 40 percent of its total asset, but a REIT will no longer be allowed to leverage up to 60 percent with a credit rating, MAS said.“The finalised positions reflect a balanced approach to enhancing safeguards for investors and unitholders while facilitating the growth of a vibrant REIT market,” said Lee Boon Ngiap, Assistant Managing Director, Capital Markets, at MAS. |  |
Bungalow off Holland Road for sale
| A good class bungalow (GCB) along East Sussex Lane off Holland Road has been put up for sale through expression of interest (EOI).The two-storey detached house built in the 1950s sits on the 27,181 sq ft site. The property could be redeveloped into a luxurious bungalow.“The guide price for the GCB is approximately $1,200 psf. This is an estate sale and the vendors are open to considering all price offers put forth by prospective purchasers during the Expression of Interest exercise,” said Mary Sai, Executive Director, Investment & Capital Markets.Last month, a GCB at Belmont Road was moved for $44.18 million or $1,420 psf, while another bungalow at Bing Tong Park changed hands at $30 million or $1,400 psf.
According to Knight Frank, the demand for GCBs has held steady despite the slew of cooling measures imposed on the residential market. Knight Frank is the appointed marketing agent for the said property, with the EOI exercise closing on 30 July 2015. |
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Delay in next BTO launch
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The next Build-to-Order (BTO) exercise this year which includes the first batch of new flats in Bidadari estate has been pushed back from August to September, according to media reports.The upcoming exercise will be the third one this year and will include the first batch of flats in the Bidadari estate.The delay was attributed to the ongoing consolidation of the two-room flat and studio apartment schemes and the review on the higher income ceiling for BTO applications, said the Housing Development Board as cited by Channel NewsAsia.These plans were announced by National Development Minister Khaw Boon Wan in a radio interview on 23 June, who said he had hoped the changes would be in place for the next BTO exercise. |
Despite the delay and HDB’s move to trim new flat supply from 16,900 to 15,000 units, the Ministry of National Development (MND) assured the public that there will still be four BTO launches this year.
Sentosa home prices rebound: report
| An RHB Research report revealed that home prices in Sentosa are on the mend after suffering a significant correction in the last few years due to the government’s property cooling measures.According to the report, market activity is now on the rebound as buyers go on an acquisition spree, believing that residential prices there have already hit rock-bottom, said analyst Goh Han Peng. For example, residential projects in Sentosa like The Coast, Seascape and Turquoise recently witnessed an increase in transactions, with prices ranging from $1,400 psf to $1,600 psf.In April, The Oceanfront condominium also sold two units in the $2,000 psf range, a price level that had not been reached since October 2012, when a unit was purchased for $2,190 psf. “We think the play on Sentosa properties is still ultimately about the scarcity story, with a limited stock of some 2,000 plus units,” said RHB Research, explaining its bullish outlook on the island’s residential market. |
HDB rule could raise renovation costs
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The Housing and Development Board (HDB) has mandated the use of pre-packed cement throughout HDB flats, but this recently enforced rule could raise the renovation cost for owners by thousands of dollars.According to a report by The Straits Times, this requirement will affect all flat owners who signed renovation contracts since the first day of June.The ruling was supposed to be introduced in December 2014 and renovation contractors were informed about it a year ago. However, its implementation was delayed because many contractors asked the housing board for more time to prepare.Previously, HDB only required the use of this building material in wet areas like kitchens and toilets. As for other areas of the house, contractors could use cement that was manually mixed on-site. |
However, the rule was expanded to “ensure a cleaner environment and more uniform finishes”, said an HDB spokesperson. Other benefits include less material waste and higher quality finishes.
But this means flats owners would end up paying more. According to HDB’s estimates, renovation works for a five-room flat could cost around $1,500 more depending on labour costs and the extent of work needed.
In comparison, some contractors believe the new ruling could increase renovation costs by around $2.00 to $3.00 psf with total costs climbing by up to $3,000.
PropertyGuru appoints new Chairman, Directors
| Following the $175 million investment by a strategic consortium comprising TPG, Emtek Group and Square Peg Capital in June, Asia’s leading online property portal PropertyGuru recently announced the appointment of four new Directors, including a new Chairman to their board.Ganen Sarvananthan, TPG’s Partner and Managing Director, becomes PropertyGuru Chairman, while TPG’s David Gowdey, Square Peg Capital Partner and Co-founder Paul Bassat, and Emtek Group Commissioner Jay Wacher join PropertyGuru co-founders Steve Melhuish and Jani Rautiainen as board directors.In addition, TPG Senior Advisor Tunku Ali Redhauddin Muhriz becomes Chairman of PropertyGuru Malaysia.“Our Chairman and each new board members bring significant and relevant experience, insights and business networks to the board. This will help PropertyGuru capitalise on our now expanded capacity to pursue our growth agenda and seize new opportunities in the region’s digital space,” said PropertyGuru co-founder and CEO Steve Melhuish.
PropertyGuru announced the $175 million investment in June, which marks the largest investment into a Southeast Asian tech company this |
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This article was first published in the print version The PropertyGuru News & Views. Download PDF of full print issues or read more stories now! | ||