However, analysts claimed the figures were still not positive compared to the prospects, with the demand for such sites staying soft. In fact, collective sales on private properties are receding, according to Khaw Boon Wan, Minister for National Development in a blog post.

While this could signify a more stable property market, the emerging trend suggests a different story.

Of the eight en bloc launches so far, five sites were offered last week. The number reflects almost half the en bloc sites offered for sale in Q1 of 2011. A total of 18 sites were put up for collective sale in Q1 2011.

According to analysts, the increase is backed by rushed sales over expectations of a worsening market sentiment later in 2012.

Moving forward, the ambiguous economic outlook may affect buyers’ sentiment.

“More importantly, it’s that they would need to complete the entire process of buying a site, building it and selling out all the units within five years from the time they enter the contract with the sellers,” said Karamjit Singh, Managing Director at Credo Real Estate.

He added that the situation will be more manageable for small en blocs but is “a very tall order” for medium to large en blocs.

Related Stories:

Credo data suggests pattern in property prices

More buyers shifting to non-HDB homes

REDAS gives a dull note on property sentiment

Notably, this pattern became apparent in 2011’s final quarter.

The residential property index slid from 1.3 percent in Q3 to a scant 0.2 percent in Q4, supporting the view that the existing values are close to their apex.

In addition, the slide in prices overlapped with negative GDP growth and worsening economic conditions that may continue into a recession.

“If a recession occurs this year, it will certainly lead to a correction in the residential market. Even if a recession does not occur this year but economic conditions deteriorate ultimately leading to a recession, the market is also likely to correct,” said Ong Teck Hui, Executive Director and Head of Research and Consultancy at Credo Real Estate.

For a while now, it has been debated when the correction would happen. Analysts opine that property prices would weaken in 2012, backed by rising supply, economic uncertainty and the government’s cooling measures.

On the other hand, if Singaporeans can evade the mild slowdown, a brighter outlook can be expected.

“If economic conditions turn out to be better than expected, we are likely to see a fairly stable market, albeit with uneven performance amongst different market segments and with price adjustments within a narrow range,” noted Ong.

Related Stories:

More buyers shifting to non-HDB homes

REDAS gives a dull note on property sentiment

Negative side effects of ABSD temporary, say consultants

Purchases for non-HDB homes such as landed, non-landed private and EC units hit a record of 13,910 units in 2011, up from 13,769 units in 2010. ECs now account for 42 percent of the sales transactions across the non-HDB housing segment, according to URA Realis data.

ECs notched another record with the largest growth in demand from upgraders, growing 123 percent year-on-year with 2,407 units sold in the sale and resale segments.

“The interest for ECs was due to the large supply of EC units which were launched in 2011 and specifically, new EC projects cater to the needs of the sandwich home buyers, who were mostly HDB dwellers with income falling within the limits of a new EC purchase,” said Ong Kah Seng, Director at R’ST Research.

The location of many projects, along with the growth corridors and the quest for better housing have also strengthened sales. Moreover, upgraders now have deeper pockets with the rise in resale prices of HDB flats, partly due to higher cash-over-valuation (COV) numbers.

Ong added that the appreciation in public flat prices has “psychologically motivated” some owners to shift to private homes.

Related Stories:

REDAS gives a dull note on property sentiment

Negative side effects of ABSD temporary, say consultants

EC demand remains healthy

Wong Heang Fine (pictured), President of the Real Estate Developers’ Association of Singapore (REDAS), said the strong number of private homes sold in January must be viewed in perspective, as they do not mean that every project is doing well.

“January’s figures are generated by the new launches of two or three projects, so the numbers themselves do not really reflect the entire state of the market. You have to look at the numbers a little more in detail,” he said.

“Generally, in terms of new launches, they have been getting very good response. And of course for these two or three projects, the product is also very good.”

Wong added that sales from specific projects and locations should be studied to get a clearer picture.

According to recent reports, three projects launched in January, which include The Hillier in Upper Bukit Timah, Parc Rosewood in Woodlands and Watertown in Punggol, sold a total of 1,360 units. This was in contrast to the 632 units sold in December across the entire market.

While the strong interest in recent property launches shows that there is liquidity in the market, Wong said that foreign acquisitions, particularly in the luxury sector, are well down. He also highlighted that the large supply of new factory and office space in the pipeline will affect rents and vacancy rates.

Related Stories:

EC demand remains healthy

Calls made to increase ABSD to 20%

Residential site at Jervois Road draws 17 bids

“International buyers are still looking to buy,” said Jacqueline Wong, Head of Residential and National Director at Jones Lang LaSalle (JLL).

Wong noted that although foreign purchases dropped in the second quarter, many have kept an eye out for good buys, with sustained interest for local properties. While they wait, a lot of expatriates arriving with families are in need of accommodation.

The scenario benefits private property rentals, which includes serviced residences, private homes and long-stay accommodation. Consultants have seen a visible pick-up across the rental market after the ABSD was introduced, but maintain that the cooling measure may not have been the only factor.

For instance, The Club at Capella Singapore (pictured), which is a long-stay residence located on Sentosa Island, reported that enquiries recorded a ‘slight but noticeable growth’ after the ABSD kicked in. However, other factors may include its growing brand name in the luxury long-stay accommodation sector.

Property agents have likewise noticed an increase in rental enquiries from foreigners, particularly for bigger housing units located in prime areas.

After the ABSD kicked in, faster take-up rates were also seen at serviced residences such as Pan Pacific Serviced Suites Singapore.

Related Stories:

EC demand remains healthy

REDAS gives a dull note on property sentiment

Calls made to increase ABSD to 20%

“We have a very good mixture of first-timers and second-timers, and we do see that there’s a very strong demand from young couples staying near their parents in the area, so they want to buy an EC which is convenient to visit their family in future,” said Steven Tan, Managing Director of property agency OrangeTee.

Meanwhile, property analyst Chris Koh said that if the economic situation is not favourable, “then all the more they would not be so daring to jump into the private property and buy a brand new condo, or even a resale condo. So what would they do? They’ll fall back and say ‘Perhaps I’ll buy an EC’. So I foresee there will still be a demand.”

“In terms of finishings, in terms of facilities, an EC doesn’t lose out to a condominium at all. One, it’s developed by a private developer, so you know he will put in all the facilities to make that EC as classy as a condominium,” he added.

Most recently, nearly 1,000 potential buyers showed keen interest to acquire units at The Tampines Trilliant EC project (pictured). Its developer Sim Lian Group said prices for three-bedroom units start from S$682,000 while four-bedroom units go for S$971,000.

Koh said purchasing an EC unit may be a good investment compared to a private condo if the buyer does not mind the restrictions implemented and waiting 10 years for it to be privatised.

“It may be one ticket to getting your private condominium,” he said.

Related Stories:

Calls made to increase ABSD to 20%

Residential site at Jervois Road draws 17 bids

Asia Pacific’s luxury property market cooling off

Over at the Parc Rosewood condo development, more than 165 of the 236 units released were snapped up and there’s also been strong take-up seen at Watertown.

A PropertyGuru reader said that “by imposing 10 percent ABSD on foreigners, there was eight to 10 percent discount for new launches. We should consider a 20 percent ABSD for foreigners so that locals can benefit.”

Another reader said that “this shows there is still demand from locals. Raise ABSD for foreigners to 20 percent.”

However, a story carried by PropertyGuru yesterday highlighted that foreign share in private home sales dropped significantly in January; with caveat analysis of DTZ Research showing that the number of foreign buyers stood at only three percent last month, down from 23 percent in December.

For now, analysts believe the ABSD should not be increased.

Getty Goh, founder of Ascendant Assets Pte Ltd, said, “The comments made are a knee-jerk reaction to the high home sales for January.”

He noted that increasing the ABSD would “kill the market”, as it has barely been two months after the cooling measures were introduced.

On the topic of property discounts, Goh said, “Developers are in the business of making money and they provide good rebates to move their units.” He added that “the situation of rebates won’t last too long.”

In addition, Carolyn Goh, Corporate Communications and Marketing Manager at PropNex noted that more research needs to be done on the market.

“The introduction of the ABSD has indeed affected foreign buying sentiment. The ABSD does not impact Singaporeans so we need to look at who these buyers are before making changes to the ABSD.”

Related Stories:

Residential site at Jervois Road draws 17 bids

Asia Pacific’s luxury property market cooling off

Crystal Tower up for collective sale again

“The site attracted a very good response of 17 bids because of its strong location attributes and the lower quantum involved because it is a low-rise development,” said Li Hiaw Ho, Executive Director at CBRE Research.

He noted that the top bid offered works out to around S$881 psf ppr, and translates to a breakeven cost of between S$1,400 psf and S$1,450 psf.

Meanwhile, the second highest bid was S$110 million, offered by Eastwood Park, while the lowest bid came from JVS Capital Ltd at S$71.8 million. Other site bidders include Elitist Development, Meadows Link Development, EL Development, Mezzo Development and Golden Kay Development.

Launched for sale on 22 December 2011 under the 2H2011 Government Land Sales (GLS) Programme, the 99-year leasehold site has a total area of 8,958.0 sq m and a gross floor area (GFA) of 12,542 sq m.
It is located within the prime residential district 10, near the Chatsworth Park Good Class Bungalow (GCB) area.

“It is surrounded by private developments such as Jervois Regency, Jervois Gardens and Jervois Lodge. The High Commission of Malaysia is also close by. Amenities are available at Valley Point Shopping Centre and along River Valley Road,” added Li.

“The future development will be a low-rise development of five storeys, comprising 150 to 200 apartments.”

The Urban Redevelopment Authority (URA) said the tender award announcement will be made at a later date, after all the bids have been evaluated.

Related Stories:

Asia Pacific’s luxury property market cooling off

Crystal Tower up for collective sale again

Analysts say nothing’s wrong with Far East promo

Marketing agent Credo Real Estate said more than 80 percent of the owners have already signed the en-bloc sale agreement to sell the property.

Built in the 1980s, the site is located at Cactus Road and has a total area of 73,098 sq ft. It is zoned for residential development with commercial space on the first storey, a total gross plot ratio of 1.4 and an allowable height of up to four storeys.

Credo said that the price tag for the property reflects an equivalent land rate of between S$712 psf ppr and S$751 psf ppr, depending on the quantum of the residential and commercial GFA proposed.

According to a report by The Business Times, an application was made to the Singapore Land Authority (SLA) for the amalgamation of the adjoining site, which will enlarge the subject site to approximately 92,311 sq ft. If granted, the total GFA will increase to around 129,235 sq ft.

“The subject site has a lot of potential due to its proximity to the upcoming 320-hectare Seletar Aerospace Park,” said Yong Choon Fah, Executive Director at Credo Real Estate.

She added that the development aims to boost retail offerings in the surrounding area given the shortage of retail stores in the neighbourhood.

Colliers said the tender for the site will close on 7 March 2012.

Related Stories:

Calls made to increase ABSD to 20%

Residential site at Jervois Road draws 17 bids

Asia Pacific’s luxury property market cooling off

The news has come as a surprise to some, considering that prices for its four-bedder units start at a high price of S$971,000 each for 1,302 sq ft of living space; the price works out to around S$745 psf.

While the project’s location at Tampines Central is attractive, some potential upgraders have their reservations. 48-year-old personal assistant Diana Khoo, said, “It’s overpriced…I’d rather buy in the private market as there are fewer restrictions. The location is good but that doesn’t justify its pricing. Besides, Tampines is so crowded and congested – more so than some of the more mature estates.”

Business manager Jonathan Yap, 33, feels such a unit might be worth the price if it were the best accommodation one could find and if his workplace were in the area, more so if one could buy it for rental purposes. He said, “(As a) rule of thumb, monthly rental rate should cover outlay in 20 years. If an owner is considering (a unit costing) S$1 million, he needs to charge a S$4,200 monthly rent. If he can charge higher, it’s worth it.”

Still, the application rate indicates that a good number of buyers, whether or not they feel the price is justified, have decided to fork out cash for units at The Tampines Trilliant. PropertyGuru’s real estate analyst Tejaswi Chunduri said, “The demand for The Tampines Trilliant is expected to be strong due to the location.”

“Also, with the income ceiling for new ECs being reviewed, first-timers and other genuine home buyers who would otherwise go for mass market condominiums will now come back to public housing and ECs specifically which provide condominium-like facilities.”

“Moreover, ECs perfectly fit buyers who are ineligible to buy HDB flats due to the income ceiling but find private property too expensive. Generally, ECs are around 20 percent cheaper than mass market condominiums.”

Related Stories:

Watertown leads robust home sales for January

Foreigners snap up fewer homes

Asia Pacific’s luxury property market cooling off