Property Update (12 May 2015)

Jurong East may see more manufacturing firms moving in: Analysts | channelnewsasia.com

SINGAPORE: Property analysts have said the location of the Singapore-Kuala Lumpur High Speed Rail (HSR) terminus at Jurong East is strategic to future commercial developments.

But even as Jurong East is being envisioned as the second Central Business District, some analysts said the area is unlikely to replicate the downtown core. Instead, the area may see more manufacturing companies moving in, especially firms that have production plants in the Iskandar development zone, or further into Malaysia.

The terminus is located about 600 metres away from Jurong East MRT interchange, and also lies adjacent to land parcels zoned for hotel and other commercial developments. But the terminus will only occupy 20 per cent of the site. Read more >>
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Fewer residential properties sold for more than S$1.5m last year: MND | channelnewsasia.com

SINGAPORE: The number of residential properties sold for more than S$1.5 million in 2014 dropped by 42.4 per cent from the previous year, but they fetched higher prices on average, according to the Ministry of National Development.

A total of 4,153 residential units were sold for more than S$1.5 million last year, compared to 7,218 sold in 2013, said the ministry on Monday (May 11), in a written reply to a parliamentary question from Non-Constituency Member of Parliament Gerald Giam.

The number of residential units sold for more than S$1.5 million in 2014 was an 80.9 per cent increase from that of 10 years ago. In 2005, 2,295 units were sold.

The average price of the residential units in 2014 was S$2.83 million, while the median price was S$2.13 million. Both saw an increase compared to 2013, which recorded S$2.76 million and S$2.10 million for the average and median price respectively.

The data was collected by the Urban Redevelopment Authority (URA) and the Jurong Town Corporation (JTC). They cover private property transactions and do not include HDB properties and executive condominiums, the ministry said. Read more >>

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Outlook for Singapore’s residential property market remains muted: Frasers Centrepoint | channelnewsasia.com

SINGAPORE: The outlook for Singapore’s residential property market remains subdued, although there still are opportunities for well-placed and well-priced developments, according to mainboard-listed Frasers Centrepoint.

“Projects with good locations and pricing continue to have the ability to attract buyers. It is clearly demonstrated by North Park Residences,” said Group CEO Lim Ee Seng at Frasers Centrepoint’s quarterly results briefing on Monday (May 11).

“We do believe in the long-term stability of the Singapore residential market so we will continue to participate, but selectively and opportunistically, in whatever is available in the market.”

For the second quarter ended in March, Frasers Centrepoint posted a net profit of S$143 million. This was more than double when compared to the same period a year ago, thanks to fair value gains of S$44 million from a joint venture.

Revenue for the quarter remained stable at S$442 million. Read more >>

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Changes to bankruptcy laws proposed | channelnewsasia.com

SINGAPORE: First-time bankrupts could be eligible for discharge after seven years in bankruptcy even if they cannot resolve their debts during that period. This is under a new framework that makes it harder for people to be declared bankrupt and easier for them to exit bankruptcy.

It is one of the major changes proposed under the Bankruptcy (Amendment) Bill, which was tabled by the Law Ministry for the first time in Parliament on Monday (May 11).

Under the framework, bankrupts will pay what is called a target contribution. It is determined based on their earning potential and serves as a repayment scheme to help them resolve their debts.

But those unable to pay the amount in full can still be discharged from bankruptcy. First-timers will be eligible for discharge after seven years, and repeat cases, after nine years. Read more >>

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Punggol marks new chapter in growth | asiaone.com

SINGAPORE : When Mr Low Ser Hui was growing up in Punggol in the 1960s, it was largely an area of pig farms and squatters – but it was home. With marriage and a move with his new family to Pasir Ris, he made the decision to return 12 years ago when plans to turn it into a residential new town were announced.

“When we moved back, it was not exactly a jewel,” said Mr Low, 50, who works in sales. “But there were big plans for it, and it was exciting to see it grow. “There’s been a tremendous change; it’s a place I have no regrets coming back to.”

Its growth was one of the key themes at the opening of Punggol North’s latest community club, the Punggol 21 CC.

Mr Low was one of 3,000 residents and grassroots leaders who packed the floors of the four-storey CC for its opening by Prime Minister Lee Hsien Loong yesterday.

In his speech, PM Lee congratulated Pasir Ris-Punggol GRC MP Penny Low and grassroots leaders who helped shape the development of Punggol New Town since its inception in 2001 – the year Ms Low was elected. Read more >>
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Air Pockets Ahead for Commercial Sector After Close UK General Election | worldpropertyjournal.com

UK : As per usual the opinion polls got it wrong, and the Conservative party has won the election with a small majority. This is a far better result than the fractured Parliament of shifting coalitions people were led to expect, says international real estate consultant Knight Frank.

Knight Frank further suggests there is good reason to now suppose the UK economy, that appeared to slow in the run-up to the election, can now resume a strengthening recovery. This will be good news for both the commercial leasing and investment markets.

However, there remains a great deal of political uncertainty as a result of the earthquakes that occurred last week. These will influence but not derail the property market. Read more >>

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Top 5 Hottest U.S. Housing Markets Announced, Denver Leads List

Based on a new report by Irvine-based Auction.com, Denver is the top dog in 2015 for being the best U.S. housing market in 2015 for single-family home sales.

Auction.com’s ranking of the hottest major single-family housing markets based on current and expected future housing fundamentals. Among the 49 largest U.S. markets, the top five include Denver, San Antonio, Nashville, Tenn., Fort Lauderdale, Fla., and Dallas, all of which display rising home prices, favorable affordability, strong housing demand, and excellent economic and demographic conditions pointing to future demand.

“As the U.S. housing market has continued to recover from the Great Recession, we’ve seen significant regional variances in terms of both price appreciation and sales volume,” said Auction.com Executive Vice President Rick Sharga. “Earlier in the recovery, most of the growth came from markets that had suffered the biggest declines during the housing bust, but what we’re seeing today is more in line with fundamental economic trends: markets with the best job growth and population growth are recovering most quickly.”

According to the report, the Southwest remains the strongest U.S. region overall, with robust local economies and strong population growth continuing to drive housing demand. The Southeast and West also show promise, as even previously hard hit housing markets in these regions are improving rapidly.

 

Top 5 Market Highlights

• Denver
  Denver’s housing market remains among the most robust in the Nation, as a booming local economy continues to drive demand. Employment in Denver is currently at a new record peak – 4.3 percent above its year-ago level – and its population is rapidly increasing, growing at a pace almost triple the national average. As a result, home prices have been appreciating at a torrid pace since mid-2012, hitting a record high in late 2014 on the heels of a 9.3 percent year-over-year growth. With a bustling local economy producing jobs and a burgeoning population base, housing demand is expected to continue to drive prices up even further over the coming years.
• San Antonio
  San Antonio’s favorable economy, growing population and exceptional affordability has given rise to gradually increasing sales – up 5.5 percent over the past year – and home prices are currently at their all-time peak, appreciating 4.3 percent over the past year. The metro’s population grew 2 percent in 2014, on par with its historical average and marking the fastest rate of expansion in three years. Its local economy continues to post solid fundamentals, with more than three years of uninterrupted employment gains and 8,000 jobs added over the past two months. Unemployment in San Antonio is low, measuring 4 percent in early 2015, and its economy is diversified across multiple industry sectors, lessening the potential impact of declining oil prices in Texas.
• Nashville
  Nashville is one of the faces of the new South, driven by education and health services, tourism and a vibrant downtown that is attractive to millennials. Its economy is booming, as local employment has expanded in 12 of the past 14 months, and its population has seen accelerated growth in each of the past four years. Nashville’s housing market has maintained a strong performance and home sales are up 4 percent from a year ago. Increased demand – which is expected to continue over the next few years – has spurred a 6.2 percent year-over year increase in prices.
• Fort Lauderdale
  Fort Lauderdale’s top five ranking is particularly noteworthy, considering this market’s significant decline brought on by the recession. With a population growth of 1.3 percent in 2014, Fort Lauderdale’s demographics remain strong and stable. Employment has expanded by 4.2 percent over the past year – among the fastest growth rates of all large U.S. metros – and all of the 100,000 jobs lost during the recession have been recouped. Sales have regained their footing and median prices have increased 7.8 percent over the past year. Although they have a way to go before reaching their pre-recession peak, current prices represent a healthier, more affordable range for this market. Given Fort Lauderdale’s low permitting activity and improved local economy, its single-family demand should continue to bounce back over the coming years, driving prices up further.
• Dallas
  Despite plummeting oil prices, Dallas’ economy remains as strong as ever. With consistently strong gains over the past year, its total employment increased 4.5 percent – and the metro has added more than 20,000 jobs in the past two months alone. Home sales are currently at their highest level in seven years and prices have been rising consistently since early 2012, increasing 26.4 percent over that time period and showing 7.3 percent growth within the past year. While some economic slowdown is expected due to low oil, Dallas’ local economy is diversified enough to hedge against any serious repercussions. Boasting favorable affordability and steady demand, home price appreciation should prevail over the next few years, albeit at a more modest pace.

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Source : http://www.worldpropertyjournal.com/real-estate-news/united-states/denver-real-estate-news/best-housing-markets-2015-auctioncom-rick-sharga-denver-home-sales-dallas-real-estate-news-nashville-home-prices-ft-lauderdale-home-sales-best-real-estate-investor-markets-2015-9011.php

Property Update (8 April 2015)

OCBC looks to sell over 30 shophouses and shop units | businesstimes.com.sg

SINGAPORE : Oversea-Chinese Banking Corporation (OCBC) is poised to divest a portfolio of more than 30 shophouses and strata shop units across Singapore which market watchers estimate could be worth around S$150-200 million.

The shophouses are in locations such as Havelock, Geylang, Upper Thomson and Upper Serangoon roads, while the strata shop units are in places such as Jalan Besar Plaza, Hoa Nam Building along Foch Road, Balestier Point, Sixth Avenue Centre and Upper Serangoon Shopping Centre.

Also for sale are shops in HDB estates such as Ang Mo Kio and Bukit Batok as well as HDB shophouses in locations such as Bishan, Aljunied, Jurong Gateway Road and Yishun Ring Road.

OCBC is believed to have arranged the properties in several bundles to be marketed by property agencies.

Some of these properties were previously used for bank operations but the majority are investment properties held for rental income. Read more here >>

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Using property prices to guide climate change policies | straitstimes.com

SINGAPORE : IN 2013, the Intergovernmental Panel on Climate Change reported that warming of the earth’s atmosphere and oceans is “unequivocal” and the dominant cause is human influence.

Among the expected effects of rising atmospheric concentrations of greenhouse gases are heat waves, rising sea levels and coastal flooding and droughts, among other extreme phenomena. Influential reviews such as the one headed by British economist Nick Stern described climate change as “the greatest and widest-ranging market failure ever seen”.

In response to such views, governments are considering investments in carbon abatement strategies. These are designed to reduce greenhouse gas emissions, such as by increasing petrol taxes and switching from coal to cleaner but more expensive fuels.

A government’s decision to invest in such carbon abatement strategies depends heavily on a cost-benefit analysis. If the benefits of greenhouse gas reduction outweigh the costs, then investment makes financial sense. But abatement strategies have costs and benefits that occur over many decades, centuries even.

Since a dollar today is worth more than a dollar in the future, a cost-benefit study requires all future dollars to be converted into today’s equivalent dollars. The rate of conversion used is called the discount rate. Read more here >>

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Property Zooms Ahead in Philippines | wsj.com

PHILIPPINES : Neighborhoods inspired by Beverly Hills, fast-rising office towers and swanky malls resembling landmarks like St. Mark’s Square in Venice: It might sound like China circa 2005, but this is the Philippines in 2015.

The real-estate sector here is enjoying a boom as new property floods a market usually stifled by low prices and developers notorious for completing projects years behind schedule.

Now, supply and demand are rising fast as the national economy grows reliably at 6% to 8% per year. Property values are increasing steadily, drawing investors. And cash-rich developers, backed by some of the country’s biggest conglomerates, are having an easier time delivering on their promises.

In a metropolis clogged with traffic and where millions still live in slums, Manila’s affluent buyers particularly favor newly built “townships”—self-contained districts where homes, offices, shops and schools are packaged together in tidy, linked communities, said Jericho Go, senior vice president at Megaworld Corp., the real-estate subsidiary of the Alliance Global Group. Read more here >>

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Homes Prices in U.S. Rise 5.6 Percent Year Over Year in February | worldpropertyjournal.com

According to CoreLogic’s February 2015 CoreLogic Home Price Index (HPI), U.S. home prices nationwide, including distressed sales, increased by 5.6 percent in February 2015 compared to February 2014. This change represents three years of consecutive year-over-year increases in home prices nationally. On a month-over-month basis, home prices nationwide, including distressed sales, increased by 1.1 percent in February 2015 compared to January 2015.

Including distressed sales, 26 states and the District of Columbia were at or within 10 percent of their peak prices. Six states, including Colorado (+9.8 percent), New York (+8.2 percent), North Dakota (+7.7 percent), Texas (+8.5 percent), Wyoming (+8.4 percent) and Oklahoma (+5.2 percent), reached new home price highs since January 1976 when the CoreLogic HPI started.

Excluding distressed sales, home prices increased by 5.8 percent in February 2015 compared to February 2014 and increased by 1.5 percent month over month compared to January 2015. Also excluding distressed sales, all states and the District of Columbia showed year-over-year home price appreciation in February. Distressed sales include short sales and real estate owned (REO) transactions. Read more here >>

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Property Update (26 March 2015)

The political and economic legacy of Lee Kuan Yew | cnn.com

Jamie Metzl of the Atlantic Council explains Singapore’s political closure and economic success under Lee Kuan Yew to CNN’s Richard Quest.
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Mortgage rates expected to climb further due to rise in SIBOR | channelnewsasia.com

SINGAPORE : Singapore mortgage rates have risen on average by at least a third within the past month, amid an increase in Singapore’s benchmark interest rate.

Market analysts have said mortgage rates are expected to climb further in the coming months and more home owners are reviewing their financial position.

Mortgage rates for home owners on floating rate loan packages are estimated to have risen on average from about 1.5 per cent a month ago, to 2 per cent now, according to mortgage broker FindAHomeLoan. This comes amid a steady increase in the Singapore Interbank Offered Rate (SIBOR).

The benchmark lending rate was at 1.00529 per cent on Wednesday (Mar 25). This is more than double the figure at end-December, when it was around 0.45 per cent. According to market watchers, it could rise further to about 1.5 per cent this year.

Mortgage brokers said that in anticipation of further increases in SIBOR, more home owners are refinancing or repricing to fixed rate loan packages. They said about eight in 10 now opt for fixed rates, compared to just over half of home owners, two months ago. Read more here >>

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Shophouses sizzle amid cool Singapore property market | straitstimes.com

SINGAPORE – Shophouses in Singapore are seeing a surge in investor interest.

Their median price has more than doubled from $1,455 psf in the fourth quarter of 2009 to a record of $3,772 psf in the fourth quarter of last year, said real estate consultancy Colliers.

Median rents have also risen over the last five years, said Ms Chia Siew Chuin, Colliers’ director of research and advisory. Quarterly median rents generally remained below $4 psf per month before 2012, but they hit a record $5.42 psf per month in the fourth quarter of last year

Here’s a look at the prices reached when some shophouses recently changed hands. Read more here >>

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Inbound Investment Into Asian Real Estate Set to Double in 2015 | newsmaker.com.au

HONG KONG, CHINA : (Marketwired – Mar 25, 2015) – While the flow of outbound capital from Asia will accelerate this year, it is inbound capital that will take a “quantum leap” in 2015, according to a new white paper from Colliers International.

“Inbound investment into real estate in the region will increase by 102% this calendar year”, Terence Tang, Managing Director of Capital Markets & Investment Services, Asia, predicts, “more than three times the rate of growth in 2014. The office market Asia-wide is at a stage in the cycle where new supply will rise 152% to about 100 million square feet, presenting significantly more opportunities. Shanghai, Hong Kong and Singapore remain the best target destinations, but structural change in markets such as India is making them more attractive.”

Outbound flows into real estate will increase 61% in 2015 from a record US$46 billion last year, Colliers predicts, thanks to continued appetite from traditional investors and relaxation measures on the policy front. For instance, China has streamlined the approval process for mainland companies that are investing outside the mainland. In Japan, the US$1.1 trillion Government Pension Investment Fund is considering allocating 3 to 5% of funds to global real estate, which would make it the world’s largest real-estate allocation.

In terms of volume, mainland China (31.0%), Singapore (27.2%) and Hong Kong (12.9%) have been the top three sources of outbound real estate capital, accounting for 71.1% of the total outbound capital the region invested in 2014. Read more here >>

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California Pending Sales Spike in February, Highest in 6 Years | worldpropertyjournal.com

US : According to the California Association of Realtors, pending home sales in California soared in February 2015 to record the first double-digit annual gain in nearly three years, the third straight year-to-year increase, and post the biggest annual increase in nearly six years. The California Association of Realtors also reported the following data:

California pending home sales

• California pending home sales jumped in February, with the Pending Home Sales Index (PHSI) increasing 24.8 percent from a revised 89.9 in January to 112.2, based on signed contracts. The month-to-month increase easily topped the long-run average increase of 17.9 percent observed in the last seven years.
• Statewide pending home sales were up 15.6 percent on an annual basis from the 97.1 index recorded in February 2014. The yearly increase was the largest since April 2009 and was the first double-digit gain since April 2012.
• San Francisco Bay Area’s PHSI stood at 124.8 in February, up 23.3 percent from 101.2 in January and 13.1 percent from 110.3 percent in February 2014.
• Pending home sales in Southern California jumped 25 percent in February to reach an index of 98.9, up 15.2 percent from 85.8 in February 2014.
• Central Valley pending sales soared 57.1 percent from January to reach an index of 83.7 in February, up 15 percent from 72.8 in February 2014. Read more here >>

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Property Update (12 March 2015)

Parliament: Bill introduced to let HDB officers enter flats by force to repair ceiling leaks | straitstimes.com

SINGAPORE – Housing Board flat owners may soon have to open their doors to authorised HDB officers, so that these officers can repair ceiling leaks more promptly.

On Thursday, Minister of State for National Development Desmond Lee introduced a Bill in Parliament to amend the Housing and Development Act to allow this.

The proposed change to the law, if passed, will empower authorised officers to enter any flat at any reasonable time, after giving 24 hours’ notice.

This is to investigate whether any urgent repairs need to be carried out in a flat and to carry out the necessary repairs.

Before entering the premises, the authorised officer must produce proof of his identity, and an authenticated document showing his authority to do so.

If entry has been refused, the premises are unoccupied, or the flat’s owner or occupier are absent, the officer may be granted a warrant to enter forcibly if necessary, the Bill states.

In such cases, the officer is authorised to break open doors or windows to enter the flat, and demolish any obstacles in the way of repair works. Read more here >>
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Former homeowners renting HDB flats a ‘worrisome trend’: Maliki Osman | channelnewsasia.com

SINGAPORE: More families entering the public rental system used to be homeowners, and this is a “worrisome trend”, said Minister of State for National Development Maliki Osman in Parliament on Wednesday (Mar 11).

Five years ago, these families used to comprise only 52 per cent of public rental applicants, but the proportion is 59 per cent today, Dr Maliki said at the 2015 Committee of Supply debates. Some of them have enjoyed housing subsidies and cashed out more than once, thus rendering them no longer qualified for subsidised HDB flats, he added.

“In a rising property market, or when one is financially strapped, the temptation to sell is a very real one. But my advice – resist the temptation and don’t cash out. Keep your home; protect your nest egg. Life may be harder in the short-run, but it will work out,” Dr Maliki said. Read more here >>
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Orchard loses retail shine to heartland | asiaone.com

SINGAPORE : Experts say training and more emphasis on integrating the shopping experience offline and online could help strengthen big-name retailers.

Metro Holdings, which opened a new department store in Centrepoint in the final quarter of last year, said that a “disappointing level of sales resulted in losses being incurred by the new store”.

Department store operator Isetan (Singapore) had earlier reported a net loss of $3.1 million for the year ending Dec 31 on the back of higher rents and slower sales.

Other than Isetan’s new store at Jurong East, sales at its outlets registered lower sales for the year compared with 2013, “due to the challenging and competitive environment”.

Guan Chong, head of the marketing programme at SIM University’s School of Business, added that competition from e-commerce firms and a tighter labour supply have hit profits. Read more here >>

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Singapore Budget 2015: New mosque to be built in Tampines North | straitstimes.com

SINGAPORE – A new mosque will be built in Tampines North to serve those living in the area and in neighbouring Pasir Ris to meet an expected rise in demand as more new homes are completed.

Minister-in-Charge of Muslim Affairs Yaacob Ibrahim made this announcement on Thursday, during the debate on the Ministry of Culture, Community and Youth’s budget, adding that the mosque would also cater to those working in industrial estates in the vicinity.

Tampines North, which covers about one-fifth of Tampines, is expected to have 21,000 new homes. Read more here >>
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Why expats call this utopia | bbc.com

Imagine a major metropolis where traffic flows quickly on green highways; where streets are sparkling clean and restoration is nearly as vigilant as sanitation; where four main ethnicities (Chinese, Malay, Indian and Eurasian) co-exist in tropical tolerance with a large community of foreigners who live and raise kids without fear of crime or the slightest impolite slight. Parks, museums, art spaces and architectural icons are world class.

There’s a reason — actually a multitude of them — why Singapore ranks high on surveys of places to live and work.

“Singapore is all about convenience,” said Richard Martin, a self-described older expat who works for International Market Assessment. “And it’s a brilliant location to cover Asia.”

But there’s always a downside to every utopia. Singapore’s cost of living keeps rocketing — especially in contrast to neighbouring Indonesia and Malaysia­— and ranks as the world’s most expensive city for 2015, according to the latest data by the Economist Intelligence Unit.

Recently, resentment against foreigners has surfaced. Out of a population of 5.6 million, 1.32 million are foreign workers, according to a Singapore government statistics for 2014. Recent estimates by the website expatarrivals.com and others put the number of expats” at around 600,000 — referring to professional and managerial workers who are more skilled, earn much more, are often on employment pass visas.

A new law requires employers to seek local talent for two weeks before offering jobs to outsiders for positions paying under S$12,000 ($8,760) a month, or less. Read more here >>

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Asia Property Investment to Moderate, Yet Remain Strong in 2015 | worldpropertyjournal.com

According to CBRE’s newly published Asia Pacific Investor Intentions Survey 2015, despite a slowing Asian economy, commercial property investing in the region is expected to remain strong in 2015 as appetite for prime core assets rises.

CBRE further reports overall intention to invest in real estate assets remains strong but will moderate from last year. Major markets, China, Japan and Australia, remain the top investment destinations with other mature markets moving up the rankings, as outbound investment intention stays strong. Read more here >>
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