3 adjoining freehold industrial buildings in Kaki Bukit for sale at $19.5 milEn bloc potential for Eunos TechparkIndustrial property investment sales jumped 104% to $4.65 bil in 2019Prime industrial properties for saleIndustrial property demand remains strong; prices, rental expected to rise in 2020 JTC Punggol: $592.2 milHDB Clementi: $473.3 mil Housing & Development Board (HDB), the Republic’s public housing authority has announced the commercial and residential sites at Punggol North and Clementi as well as the private residential and industrial site at Dairy Farm.One of the situated at Punggol North is the area sited near a waterway link to Serangoon Reservoir. The site also stands for public housing. The 7,818 sqm was triggered for sale by the government land sales program for the confirmed list on July 28, 2017. The site can cater for around 235 units and can yield 1.14 plot ratio. The Punggol West LRT Station is nearby. There were seven bids received by the time the tender was closed on August 25, 2017. The highest bid was at $592.2 million, made by Sing Development and Wee Hur Development, which translates to $1,109 psf ppr.Two areas at Clementi were also triggered for sale under the confirmed list of GLS. One of them is for residential purposes and the other is for commercial and residential uses. There were two proposals received for the site at Clementi Avenue, with the highest bidder being MCC Land (Singapore) for $302.1 million. The site is near Nan Hua Primary School and is located between Clementi MRT Station and Clementi Arcade. The 140,339 sqm site can cater for 640 homes and boasts an area of 22,417.9 sqm for commercial usage.CSC Land Group, which is a new subsidiary of China State Construction Engineering Corporation also topped nine other bidders for the commercial cum residential site in Clementi. The price paid for the site was $232.5 million. The site is located at Clementi Avenue 1 and can accommodate a gross floor area (GFA) of 16,000 sqm. This translates to $788.31 psf ppr. The development will likely house around 115 commercial units. The site is also in close proximity to Clementi MRT Station, The Clementi Mall and Clementi Arcade. The estimated breakeven price is likely to be between $1,400 psf and $1,500 psf.Another top site to watch is the one for commercial and residential purposes which is located at Dairy Farm. The site had attracted nine proposals with the highest bidder being United Engineers Development for $368.8 million. This translates to $830.23 psf ppr. The site is in close proximity to the Hillview MRT Station and The Rail Mall and is situated one of the nicest corners in the enclave around the Bukit Timah Nature Reserve. The Hillview MRT Station is also only two stations away from the new downtown line 2 due in the near future. The site offers a great view for the residents and will be ideal for around 450 residential units. In addition, the site area also has 6,000 sqm of commercial space.Request for info or for streaming.This exciting employments in the Singapore real estate market are always a hit with potential buyers. Only time will tell what happens to these sites and whether or not they will end up attracting any more bids. Property agents has a last opportunity to help their clients by fully researching and previewing all potential sites. Furthermore, the employments made at these sites will only have an impact on rental rates when the projects are completed and older projects in the area continue their progress. Developers are always asking for the highest that potential buyers should consider. It is important to find sites that are suitable and appropriate for the market.Michael Ting – 11 November 2019Home prices gain by 0.9% in Q1Home prices slipped for the fifth consecutive quarter by just 0.1% in the last quarter of 2019. This is a clear indication that the market is finally bottoming out. This is according to the latest flash estimates released by the Urban Redevelopment Authority (URA) on Monday. The tiny decline was a huge improvement from the 1.2% decline recorded in the third quarter of 2019. If the trend holds, then there is a clear indication that the market is bottoming out and may soon be heading to the recovery phase. It’s clear that the government’s property cooling measures over the past few years have had an impact on the market, causing prices of residential properties to decline by a significant margin. For instance, according to the URA Price Index, private home prices have declined by 2.8% since the peak of 2018. This figure is much higher in comparison to the 0.6% decline recorded in the same period of 2019. On a quarter-on-quarter basis, private home prices declined marginally by 0.1%, a figure that is much lower to the 0.9% drop recorded in the previous quarter. However, it was higher than the original estimates made in the month of October when URA released the data for the third quarter. The index came in at 219.0 points, meaning that prices had barely changed from September’s 219.5 points. This was mainly attributed to the buzzing en-bloc market as well as rising prices for super prime condo units. These developments were the key drivers of prices of non-landed private homes in the core central region and had as much as 2.3% gain. This growth made a significant difference to the overall performance when compared to the 0.8% and 0.9% declines recorded in the city fringe and outside central region respectively.Read also: Private home prices fall by 0.9% in Q3Private home prices fell by 0.7% in Q2Private home prices fall by 0.8% in Q1Developer sales rose to 10-year high of 9,912 private homes in 2017There was a notable difference in prices across different regions. Across the CCR, the prices of non-landed properties rose by 2.3% in the last quarter of 2019. In the previous quarter, prices had declined by 3.8%. In the city fringe, prices fell by 0.8% in the fourth quarter of 2019. In the previous quarter, they had gained by 0.5%. Outside the central region, prices in the same quarter declined by 0.9%, up from the 1.2% drop recorded in the previous quarter. According to Huttons Asia, the gain recorded in the fourth quarter is an indication that the current depression in prices may soon be coming to an end. There was a significant reduction in the number of new projects launched in the market. According to URA, developers only launched 1,115 units in the fourth quarter, down from 1,468 units back in September. This is a decline of between 33.2% and 34.3%. All in all, the figure adds up to a total of 1,616 units launched in the last quarter of 2019, down from 2,682 units in the same quarter of 2019. In terms of unsold homes, the market had around 30,600 units in Q4 2019, 10% lower than the 33,900 units recorded in the previous quarter. When broken down, a majority of these were in the city fringe category, where CCR had a 4,400 figure and OCR a figure of 16,800 units. The first two quarters of 2020 will have approximately 60 projects being launched. According to Lee Sze Teck from Huttons Asia, the first project launch of the year, The Avenir at River Valley Close, will be a condominium project comprising of about 376 units. Prices are expected to be between $2,900 and $3,500 psf. The launch will be followed by Les Maisons Nassim, that will take up an 5,000 sqm space and have a gross development value of $400 million. The developer will be aiming for an average selling price of $3,000 psf. Buyers waiting for new launches that feature high capital appreciation should be keen on the 5,000 sqm to 10,000 sqm units. Units with plenty of amenities and better materials will definitely gain more capital appreciation with the rise of home prices. Prices of units with better interior finishings will be more resilient and at this point it is clear that home buyers will differentiate they value-add developers this way. However, gradual easing of property cooling measures has seen the market record huge gains in terms of property sales. In a separate data released by the URA, developers sold 10,104 units (exclusive of executive condominiums) in 2019, up from 5,500 units in 2018. There were 20,100 private homes sold in 2019, up from 16,300 in 2017. Knight Frank’s head of research, Mr. Lee Nai Jia expects a 4% to 6% growth in private home prices for 2025, which is wildly a result of the easing in property cooling measures across the market. But the repercussions are clear to see, where home buyers have seen prices skyrocket in previous years, especially in the CCR region.See more: Property Prices N
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Investing in a condo involves securing proper financing, a crucial aspect to consider. Fortunately, Singapore offers a variety of mortgage choices to suit different needs. However, it is important to take note of the Total Debt Servicing Ratio (TDSR) framework, which places a limit on the loan amount that a borrower can obtain based on their income and current debt obligations. By understanding the TDSR and seeking guidance from financial experts or mortgage brokers, investors can make well-informed decisions about their financing options. This will also help them avoid being overburdened by debt. It’s always wise to seek professional advice before making a major investment decision. New Condo Launches are also a great option for investors to consider in Singapore.