Guide into Singapore Property

Guide into Singapore Property

Category: Property


Demand drives Singapore house sales to six-month high

Demand for housing in Singapore continued to rise in March, pushing property sales to a six-month high.

According to data released by the Urban Redevelopment Authority on Monday, the number of newly constructed private flats purchased rose to 492. After plunging to a 14-year low in December due to a dearth of project debuts, prices had risen for three consecutive months.

“The general market view is still quite positive,” said Christine Sun, senior v.p. of research and analytics at OrangeTee & Tie, Normanton Park, and Normanton Park Floor Plan. Sun argued that the market will be buoyed by low inventories and high demand.

At a time when many international markets are failing due to increased borrowing rates and relentless inflation, the housing market in Singapore is thriving. The government’s decision to increase taxes on purchasers of high-end residences in February has not deterred demand, as seen by the increase in property sales.

After increasing by 3.2% in the first quarter, home prices are expected to increase by as much as 5% in 2023, owing to rising rents and positive supply and demand dynamics, as reported by Bloomberg Intelligence.

However, some potential buyers may want to wait for more options from upcoming launches and more stability in the global macro and interest rate environment, according to a note written by BI analysts led by Ken Foong last week. They also noted that developers can price their developments more reasonably to entice purchasers, which might impede the growth of housing values.

Suggested Article: Q1 bankruptcies increase distressed property listings


Q1 bankruptcies increase distressed property listings

More distress sales are anticipated in the second half of 2023 as the number of bankruptcy filings is predicted to rise, after a sharp increase in the number of mortgagee listings in the first quarter.

According to statistics from the Ministry of Law, the number of bankruptcies filed in the first quarter of 2023 increased by 5.6% over the previous quarter, reaching 959. In comparison to the first quarter of 2022, this represents a 22.2% increase in applications.

Mortgagee listings increased at monthly auction houses including Knight Frank and Edmund Tie in the first three months of 2018.

Knight Frank saw a significant increase in mortgagee listings at auctions in the first quarter of 2023, from 10 in the previous quarter to 32. There were still fewer ads than there were in Q1 2022, when there were 47.

The number of residential mortgagee postings increased by 143% from Q4 2021 to Q1 2022, rising from 9 to 18. After being on the market for two months, a non-landed house in St. Regis Residences sold for S$13.5 million without going to auction.

Mortgagee listings from Function.Sg, photo booth Singapore for retail properties in Q1 totaled four, while office listings of wedding photo booth Singapore totaled three. Meanwhile, the number of industrial listings has increased by a factor of seven from the previous quarter. According to Knight Frank, this is due to the difficulty of maintaining operations in light of the current economic situation and interest rate increases.

Suggested Article: Knight Frank: 1Q2023 auction listings down 3%


Knight Frank: 1Q2023 auction listings down 3%

According to data compiled by Knight Frank, the number of auction listings dropped by 3.0% quarterly to 96 in 1Q2023. This covers properties that have been listed before and are being listed again. According to Sharon Lee, head of auction & sales at Knight Frank Singapore, the decline may be ascribed in part to the Chinese New Year celebrations, when certain auction events were delayed.

Continuing a pattern that began in 2Q2022, Lee notes that owner listings outpaced mortgagee listings in 1Q2023. From 1Q2022’s 80 listings, the overall number of auctions has grown by 20% year-over-year.

While there were fewer postings overall in 1Q2023, there were still six sales, for a success rate of 6.3%. In contrast, the 4Q2022 auction market had a 9.1% success rate with 99 total listings.
In 1Q2023, 45 out of the total 88 postings were for homes. There were 18 entries by mortgagees and 20 by property owners. The remaining seven advertisements were all classified as “other,” which included estate, receiver, and bank sales. In St. Regis Residences, a non-landed mansion was put up for receiver sale for two months straight until it sold for $13.5 million in a private transaction.

Over the course of the first quarter of 2023, the number of mortgagee listings increased from ten in the fourth quarter of 2022 to thirty-two. More than double the number of postings from the previous quarter were made by residential mortgagees (18 vs. 8). However, the 21 residential mortgagee postings in 2Q2022 were 14.3 percent fewer year-over-year.

Four retail properties and three office buildings were listed by mortgagees in the first quarter of 2023, up from zero in the fourth quarter of 2022. From two in 4Q2022 to seven in 1Q2023, the number of mortgagee listings for industrial properties quadrupled like The Dunman Grand Price, and The Dunman Grand Showflat. According to Lee, the more challenging business environment brought on by global economic shocks, widespread inflation, and rising interest rates may be to blame for the surge.

Suggested Article: First day of the Sceneca Residence preview, around 3,000 people in attendance



First day of the Sceneca Residence preview, around 3,000 people in attendance

Nearly three thousand people stopped by the sales gallery on the very first day that Sceneca Residence at Tanah Merah Kechil Link was open to the public for previews. According to a press release issued by the joint developers MCC Singapore, Ekovest Development, and The Place Holdings, the Propnex Property Agent attracted a diverse group of people, comprising both locals and even those from other countries, like China.

“This is despite the fact that the Christmas season is now underway, during which a large number of prospective tourists, purchasers, and real estate brokers are still traveling internationally. The beginning of the preview comes at a convenient moment in light of the recent reopening of borders in a number of nations, including China, which took place a month ago.

As a consequence of this, there are more people coming from abroad to the preview.”
The Tanah Merah MRT station is directly connected to the 20,000 square foot Sceneca Square shopping mall, which is a part of the Sceneca mixed-use development that also contains the 268 apartment units that make up the Sceneca Residence. There will be a 10,000-square-foot shopping center in addition to a public plaza that may be used for events, pop-up shops, and bazaars.

The residential towers consist of a 14- and 15-story block with a variety of flats ranging from one bedroom to four bedrooms, in addition to four penthouses with four bedrooms each. One-bedroom apartments are 463 square feet in size, while one-bedroom apartments with a study are 538 square feet in size. Two-bedroom apartments with a study are 678 square feet in size.

The Sceneca Residence has a total of 48 amenities, from 1- to 4-bedroom apartments (including penthouses with 4 bedrooms) spread over two towers that are 14 and 15 stories tall respectively. Sceneca Square will be a single-story development that will have a variety of cafés, restaurants, and stores, as well as a brand-new supermarket that will be 10,000 square feet in size. Oasis Plaza and Event Plaza, which are located in front of Sceneca Square, are both capable of hosting events, pop-up booths, and bazaars.

Prices begin at $958,000 ($2,069 psf) for a 463 square foot yet another unit; from $1.085 million ($2,017 psf) for a 538 square foot one-bedroom-plus-study unit; $1.33 million ($1,962 psf) for a 678 square foot two-bedroom unit; $1.48 million ($1,965 psf) for something like a two-bedroom-plus-study unit; $1.765 million

The Sceneca Residence will begin accepting reservations on January 14, 2023, and it is anticipated that the project will get its Temporary Occupation Permit in the second quarter of 2026. PropNex, ERA Realty Network, and Huttons Asia have been chosen to serve as the designated marketing agency.

Suggested Article: Swiss Club Road GCB on sale for S$39.9m or S$1,874 psf



Swiss Club Road GCB on sale for S$39.9m or S$1,874 psf

A FREEHOLD bungalow in the Great Class Cottage (GCB) enclave of Swiss Club Roadway has actually begun the market, asking S$ 39.9 million in an exclusive treaty sale.

At that cost, the 10,600 sq ft home, remaining on 21,293 sq ft of land, is valued at about S$ 1,874 per square foot (psf) of land.

Most just recently, 2 residences with Swiss Club Roadway addresses were offered in the last 2 months, according to cautions submitted. In July, a 13,482 sq ft home was transacted at S$ 27.28 million or S$ 2,023 psf, while another home on a larger 19,406 sq ft story was sold for S$ 26.3 million or S$ 1,355 psf in June.

A year prior, a Swiss Club Lane home on 17,558 sq ft land went for S$ 24.5 million or S$ 1,395 psf in July 2021. And in January 2021, another Swiss Club Lane residence cost just under S$ 13 million or S$ 1,075 psf for the 12,087 sq ft plot.

Douglas Wong, period senior director of Capital Market and Investment Sales, Luxury Homes (GCBs) said: “The asking price of $39.9 million is reasonable, offering the current sentiments in the GCB industry and shortage of our land.”

The period is the advertising and marketing agent for the residential or commercial property. The house, a dual storey cottage with an attic room, is close to the neighborhood and also worldwide colleges in the Bukit Timah location near Leedon Green.

The GCB market has actually slowed down dramatically in recent months, with purchases diving as the buyer-seller rate gap broadens and also belief continues to be depressed by falls in the securities market as well as cryptocurrency industries and unpredictability on macroeconomic as well as geopolitical fronts. In the 2nd quarter, Checklist Sotheby’s International Real estate’s (Checklist SIR) evaluation of URA Realis caveats information showed that there have actually been 9 sell GCB Locations completing S$ 224.20 million (with the latest offer tracked dated Jun 10). In the year-ago quarter, 31 bargains totaling up to nearly S$ 900 million were shut.

From January to Jun 21, 2022, the tally stands at 24 transactions amounting to S$ 624.54 million – less than half the 55 deals amounting to almost S$ 1.6 billion in the first half of in 2015.

Deals continue to be struck. On Wednesday (Aug 16), The Business Times reported that a cottage along White House Park was being cost S$ 45.5 million, which works out to S$ 3,017 psf on the freehold land area of 15,081 sq ft. Fu Wei, chief executive of healthcare-dedicated investment company CBC Group, is acquiring the residential property from a Singapore-incorporated company owned by Sia family members.

Suggested Read: Housing Development Board owners to face higher property tax next year


Housing Development Board owners to face higher property tax next year

Most owners of three-room and also larger Real estate as well as Advancement Board (HDB) apartments will certainly have to deal with greater real estate tax next year.

This comes as the Inland Income Authority of Singapore (INDIVIDUAL RETIREMENT ACCOUNTS) revealed on Wednesday (1 December) that the annual worths (AVs) of HDB flats will be changed upwards by 4% to 6%, in accordance with the walk-in market leasings.

To take effect from 1 January 2022, the revision is part of the authority’s annual review of buildings to figure out real estate tax payable.

” The real estate tax payable is acquired by increasing the property tax price with the AV of the residential property,” stated IRAS.

With the alteration, all one- and two-room owner-occupiers will certainly not be needed to pay real estate tax.

Similarly, one in three three-room owner-occupiers of HDB apartments will not also be called for to pay such tax.

Meanwhile, around 65% of three-room owner-occupiers “will certainly each pay between $8 and $14 even more annually, while the four-room, five-room and executive apartments owner-occupiers will certainly each pay between $21 and also $26 even more annually for property tax in 2022″.

IRAS explained that the AV is the home’s estimated annual rental fee if it were rented and also is figured out based on similar residential properties’ market rents.

” The AVs of HDB apartments had actually remained the same since its last alteration in 1953 condo. However, with the increasing market rental fees of HDB flats in 2021, the AVs of all HDB flats will require to be changed upwards from 1 January 2022,” it stated.

It directed that owner-occupiers appreciate concessionary property tax prices of between 0% and also 16%, while those who rent their flats face real estate tax prices of between 10% and also 20%.

” The tax obligation prices are dynamic, with higher value residential or commercial properties being strained at higher rates,” said IRAS.

” The appropriate tax obligation prices for HDB apartments are up to 4% for owner-occupied apartments and also 10% for non-owner-occupied apartments.”

The property tax expenses will be received by the homeowner by end-December this year.

IRAS advised homeowners to pay their property tax for the following year by 31 January 2022.

“There will certainly be a 5% penalty enforced for property owners who stop working to pay or have actually not set up to pay their tax obligation using GIRO installments by the due day,” it said.

Those facing monetary troubles can approach IRAS for assistance, it included.

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