Property Update (9 September 2015)

Market still remains under pressure from the Government’s property cooling measures

Market still remains under pressure from the Government’s property cooling measures

Buyers emerge as home prices continue slide | todayonline.com

SINGAPORE ­: The number of non-landed private homes resold last month rose 15.9 per cent from August a year ago, as more buyers resurfaced amid the slow decline in prices, with analysts saying that the market remained under pressure from property cooling measures and the volatile external environment.

In its monthly flash report released today (Sept 8), SRX Property estimated that 466 non-landed private residential units were resold last month, up from the 402 units in the same month a year ago, making it the 10th consecutive month of year-on-year increase in homes resold.

“The double-digit year-on-year growth is a strong signal that more buyers are entering the market as resale prices are more stable now, and sellers looking to sell are also more willing to negotiate,” said Mr Eugene Lim, key executive officer of property agency ERA. Read more >>

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Private home rents slip 0.4% in August, HDB rents drop 0.6%: SRX Property | straitstimes.com

SINGAPORE : Rents for non-landed private homes continued to weaken in August, dropping by 0.4 per cent compared with July, according to flash estimates released by SRX Property on Wednesday (Sept 9).

There was no revision for the earlier estimate of a 0.3 per cent drop in rents in July.

August’s rents were 5.7 per cent lower year-on-year, and down 12.9 per cent from its peak in January 2013, SRX Property said.

Rents for condominiums and apartments in all types of locations softened: by 0.7 per cent in the prime districts (Core Central Region), 0.8 per cent in the city fringes (Rest of Central Region) and by the biggest margin of 1.3 per cent in outlying districts (Outside Central Region).

Rental volume also weakened. According to SRX Property, the number of non-landed private homes rented out fell 1.6 per cent to an estimated 4,097 units in August, from 4,163 units rented in July.

Year-on-year, rental volume in August was 13.8 per cent higher than the 3,601 units leased in the same month last year. Read more >>

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No End in Sight for Slide in Singapore Home Prices as Rates Rise | bloomberg.com

SINGAPORE : Rising borrowing costs and a weaker currency bode ill for Singapore’s home prices amid their longest slide in more than a decade.

The three-month Singapore interbank offered rate has more than doubled in a year to the highest since 2008. The main benchmark for housing loans is seen rising further as it narrows the gap with the swap offer rate, a measure of borrowing costs influenced mainly by exchange-rate expectations. The spread reached the widest since 2009 as the Singapore dollar slumped 6.3 percent this year.

“If the Sibor catches up with the SOR in the next three to six months, that premium may be eroded and we will get further softening in property prices,” said Vishnu Varathan, a Singapore-based economist at Mizuho Bank Ltd. “Buyers are going to factor in rate increases, so a further price correction is difficult to avoid.”

House prices may drop as much as 5 percent this year, set for the biggest decline since 2001, according to brokerage Knight Frank LLP. Developers are already grappling with falling values and lower sales after the government began introducing curbs on residential transactions as low rates and demand from foreigners prompted concerns that the property market was overheating. Read more >>

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Responsible Property Investment Comes of Age Globally | worldpropertyjournal.com

Portfolio Owners Embrace Emerging Green Lease and Wellness Trends

According to global real estate advisor CBRE, building developers and owners worldwide are increasingly implementing comprehensive Environmental, Social, and Governance (ESG) programs.

The results of CBRE’s recently released 2015 GRESB Global Survey — spanning over 700 participants reporting on the sustainability performance of real estate portfolios — show there is a significant shift towards enhanced responsible property investment (RPI) performance with the majority of responding portfolios achieving GRESB Green Star status for the first time. Two key themes emerging are the widespread adoption of green leases, and attention being placed on health and well-being of building occupants.
Read more >>

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