HDB Prices Up 1.4 Per Cent
Source : The Business Times, July 25, 2009

Decline in upfront cash required makes resale flats more affordable

PRICES of Housing Board flats rose 1.4 per cent in the second quarter to a record high, reversing a first-quarter dip of 0.8 per cent.

The number of transactions also soared - up 58 per cent in the three months to June 30 - as confidence grew and buyers rushed back into the market.



One reason for the HDB market's resilience amid testing economic times is the decline in the amount of cash required upfront to buy a resale flat. This amount is called cash-over-valuation (COV) and is falling or at least stable across all flat types.

Fresh figures released by HDB yesterday showed that the median COV for all flat types fell to just $3,000 in the second quarter compared with $4,000 in the first quarter. The median COV is at a relatively low $5,000 for three- and four-roomers and stayed at zero for five-room and executive flats, for both the first and second quarter.

Median COV for two-roomers declined from $7,000 in the first quarter to $6,000 in the second.

This is a marked change from the 2007 property boom, when median COV hit $22,000 in the fourth quarter, pricing many first-time buyers out of the resale market.

COV has come down due to valuations of resale flats catching up, said ERA Asia Pacific associate director Eugene Lim.

So even though values of HDB resale flats are high, they have become more affordable as buyers can get bank loans for the purchase and do not have to fork out high amounts of cash.

Sales activity was robust in the quarter with transactions up to 10,184 compared with 6,446 in the first quarter. They were also up 31 per cent from the 7,763 units sold in the same period last year.

Sales of five-roomers rose 80 per cent - 2,713 were moved - over the first quarter while executive flat transactions surged 100 per cent to 753. Four-room flat sales climbed from 2,488 to 3,787.

PropNex chief executive Mohamed Ismail noted that sales of the bigger flat types had suffered in the three quarters up to the end of March amid growing concerns about Singapore's worst recession.

'These numbers are a clear sign that people's market confidence is growing,' he said, adding that feedback on the ground indicated that demand in mature estates far exceeds supply.

The sales of larger flat types also explain the strong demand from HDB upgraders who sold their flats to buy private homes, said property veteran Nicholas Mak.

Private home sales, especially in mass-market suburban condos, have enjoyed brisk sales since February.

Meanwhile, HDB rents were stable. Median rents for two-room and five-room flats for the second quarter were unchanged but fell by $100 for three-room, four-room and executive flats.

HDB plans to launch a further 6,000 units under its build-to-order scheme over the next six months. About 2,400 will be three-room and smaller flats. The bulk of new flat supply will be in Punggol. So far, HDB has launched about 2,000 new flats in Punggol, Sengkang and Woodlands this year.

Analysts predict that HDB flat prices will enjoy modest increases as confidence continues to grow.

But the falling COV for large flats could indicate limited upside for prices of these flat types, said Mr Mak. 'This could also limit the HDB upgraders' demand for private property in the short term,' he said.

榜鹅将建769预购组屋单位
Source : 《联合早报》July 31, 2009

四房式组屋在经济不景之际仍是最受欢迎的屋型，建屋发展局在榜鹅推出769个预购组屋单位，其中约八成是四房式单位。

这个组屋项目靠近未来的榜鹅镇中心，距离榜鹅地铁站和轻轨站约5分钟距离，估计会引起买家兴趣。

昨天是组屋接受申请的第一天，截至傍晚5时，769个单位已获得593份申请。


名为Punggol Residences的这个组屋项目，有769个单位，面积从91平方米到114平方米不等。

名为Punggol Residences的组屋项目，位于榜鹅径（Punggol Walk）和榜鹅域（Punggol Field）交界处，共建造615个四房式和154个五房式单位，估计在2013年第一季完工。

组屋单位面积从91平方米到114平方米不等，四房式组屋的售价介于26万4000元至32万2000元，五房式介于34万4000元至40万9000元。

建屋局说，组屋售价比同区转售组屋来得低，也仍维持在国人可负担的水平。

要是月入4100元的中等收入家庭购买一个29万5000元的四房式组屋，每月约1063元的房屋贷款，完全可从公积金户头扣除。

比同区预购价更高

然而，与今年3月推出的The Nautilus@Punggol预购组屋项目比较，这批新组屋的价格较高，因为它的地点更为适中，所建造的也是设计较出众的优质组屋。

HSR房产经纪公司执行董事郑来明说，Punggol Residences靠近地铁站，对买家有一定吸引力。况且，买家也无需为新组屋支付溢价（cash-over-valuation，简称COV），进一步提高它们的吸引力。

“虽然溢价数额已下跌，不过靠近地铁站的组屋，现在还是得支付不少溢价。”

OrangeTee执行董事陈道俊相信，这个新组屋项目的需求会相当强劲，因为它距离榜鹅人工水道不会太远。

“政府之前已宣布榜鹅的新发展计划，加上这批组屋的地点适中，相信公众的反应会不错。”

他说，榜鹅是个仍在发展的新镇，组屋售价比成熟组屋区来得低，但增值空间不能忽视。

榜鹅人工水道估计在2010年或2011年完工，部分水道会穿越濒水镇中心，不过这个新组屋是否会享有水道景观还不知晓。

国家发展部长马宝山前天谈及组屋市场时说，要是四房式和五房式组屋有需求，政府下来或许会推出更多这类单位。

公众可通过建屋局网站www.hdb.gov.sg提出新组屋申请，并可到大巴窑建屋局中心3楼展示厅参观及索取销售资料，展示厅平日开放时间是上午8时至下午5时，星期六是上午8时至下午1时。

公众也可上建屋局网站，或电邮hdbsales@hdb.gov.sg，或办公时间拨1800-8663066 询问。截止日期是8月12日。

HDB Launches 769 New Flats In Punggol
Source : The Straits Times, July 31 2009

Premium development includes 154 five-room flats, 615 four-roomers.

THE Housing Board has launched a premium project offering 769 new flats in Punggol in a bid to build up critical mass in the estate.

The new project, called Punggol Residences, offers 615 four-roomers and 154 five-room flats in a central location just five minutes from Punggol MRT station.



HDB is launching the project under its build-to-order (BTO) scheme - flats are built only when certain demand is reached.

It has so far offered about 6,500 new flats in Punggol since it unveiled grand plans for the former fishing village to become the only waterfront public housing project in August 2007.

This is in line with the board's commitment to build up the population in the estate to attract and support new facilities, it said.

Punggol Residences is a premium development with enhanced architectural designs, interior fittings and landscaping, said HDB.


HDB is launching the project under its Build-To-Order (BTO) scheme. -- PHOTO: HDB

Four-room flats of 91 to 96 sq m are going for $264,000 to $322,000, while five-roomers of 114 sq m are on sale from $344,000 to $409,000.

According to HDB, premium resale flats in the vicinity are selling for a pricier $330,000 to $350,000 for four-roomers and $380,000 to $439,888 for five-roomers.

PropNex chief executive Mohamed Ismail said that, despite the higher prices, resale flats might still be more attractive given that buyers can enjoy a CPF housing grant of up to $80,000 depending on their income, and do not have to wait three years for new flats to be built.

On the other hand, buying new flats direct from HDB will attract those who prefer not to fork out any cash for resale flats.

This amount, known as cash-over-valuation, has started creeping up for premium resale flats in Punggol to about $15,000 to $20,000, noted Mr Ismail.

As of 5pm yesterday - the latest update from HDB - 593 applications for the 769 flats have been received.

Applications for the new flats can be submitted online at HDB's website www.hdb.gov.sg until Aug 12.

Slower Sales For HDB's Condo-Style Projects
Source : The Straits Times, July 26, 2009

Renewed interest in property more focused on private, HDB resale sectors.

THE numbers show it: Singapore has been gripped by a buying frenzy that seems to have pervaded every segment of the property market.

Sales volume for HDB resale flats has surged 58 per cent in the second quarter, and private home sales have even spread from the mass market to the upper-mid-tier segment.


Parc Lumiere, a DBSS project, sold well because most of the units were priced below the $500,000 psychological barrier, said a market player. -- PHOTO: SIM LIAN GROUP.

But while sales have been brisk at condos, the pace has been somewhat slower in the HDB hybrid condo-style flat sector, also called Design, Build and Sell Scheme (DBSS) projects.

These condo-style HDB flats have better finishes and facilities, and are built by private developers.

A survey by The Sunday Times shows that sales at three centrally located DBSS projects - The Peak@Toa Payoh, Park Central at Ang Mo Kio and Natura Loft at Bishan - do not seem to have moved as briskly compared to the pace seen in the HDB resale market and for private mass market homes, where projects such as 8@Woodleigh in Potong Pasir were fully sold out in a short timeframe.

Sales are hovering at the 70 per cent to 75 per cent level, despite the fact that buyers no longer have to ballot and can buy a flat via walk-in selection.

Analysts note that 70 per cent is a decent level of sales but point to a number of reasons these DBSS flats have not performed as well as their peers - the exception being Parc Lumiere at Simei, which has sold 93 per cent of its 360 flats since its April launch.

Firstly, the target audience - HDB home buyers - are highly price-sensitive. Prices for bigger flats - hitting the upper range of $600,000 and just over $700,000 each - are out of reach for many buyers, say analysts.

This is why Parc Lumiere was a sell-out, said PropNex chief executive Mohamed Ismail, although its location was less central. 'Most of the flats were priced below the $500,000 psychological barrier.'

Also, the only flat types left are five-roomers, which may be too big for young couples buying their first property.

Secondly, new private projects have been attractively priced by developers during recent launches, narrowing the price gap between DBSS flats and private condos.

'Home buyers will prefer to buy private property, especially if compared to the higher-range DBSS flats which cost up to $730,000,' said Mr Ismail.

Furthermore, DBSS flats are subject to HDB rules such as the $8,000 household income ceiling, ethnic quota and a five-year minimum occupation period.

With this income ceiling, apartments priced above $700,000 will be a stretch for first-timers, said property veteran Nicholas Mak, former head of research at Knight Frank.

Amid the recession, such buyers are also more conservative and are unlikely to commit to pricey homes, he said.

Such DBSS projects, however, will start to see renewed interest if and when private property prices start to creep up, say market watchers.

'When this happens, there will be a distinct price jump between DBSS properties and private condos,' said ERA Asia Pacific associate director Eugene Lim.

Then, such HDB condo-style flats will appeal to those who cannot afford private property but find the main supply of HDB flats too basic, added Mr Ismail.

This is already starting to happen, according to DBSS developers.

A spokesman for United Engineers, which is developing Park Central, said that with the recent property market warming up, 'there has been an increase in sales queries and appointments at our sales office, especially in the months of June and July'.

All DBSS developers have so far held on to their prices despite the recession.

Meanwhile, other developers such as QingJian Realty, which built Natura Loft, are pulling in buyers in innovative ways such as holding lucky draws in which home buyers stand to win cars.

As to whether DBSS buyers can make a profit from resale demand in the future - after the five-year occupation period - this will depend on how high prices are in the private mass market at that time, added ERA's Mr Lim.

组屋转售价迅速回弹　第二季微升1.4%
Source : 《联合早报》July 25, 2009

组屋转售价格只下滑一季便迅速回弹，整体价格在今年第二季微升1.4%，一反私宅价格持续下滑的趋势。

转售交易量 也猛增58%

组屋转售交易量也猛增58%，在过去四年多来首次在一季内突破1万宗交易的关卡。这显示许多买家趁屋价在年初滑落之际，涌入市场购屋。

建屋发展局昨天公布的第二季组屋转售市场数据显示，组屋转售价指数增至140.2点，在经济不景之际创下历史新高，增幅也比本月初预估的1.2%来得高。

组 屋转售价在今年第一季下滑0.8%，结束两年多的增长势头。房屋经纪原本估计低迷的经济局势会导致价格继续滑落，不料价格先跌后起，成功收复失地。然而， 作为市场温度计的整体转售组屋溢价中位数（median cash-over-valuation）还是继续下滑至3000元，比第一季少了1000元，跌幅为25%。组屋溢价的跌幅已放缓，第一季猛跌超过 70%。

需付溢价以完成买卖的交易也减少，从首季的62%减至第二季的57%。其余买家是在组屋估价或以下完成交易。

在今年首季组屋价格下跌以及溢价猛挫的刺激下，组屋转售交易量也激增，从首季的6446宗交易增至1万零184宗。

值得注意的是，各类组屋的转售交易量一律增加，大型组屋也不例外，显示需求已不受经济不景冲击。共有2713间五房式组屋在第二季易手，比上一季多80%。完成买卖的公寓式组屋也倍增，从今年首季的372间增至753间。

博纳集团（PropNex）总裁伊斯迈说，组屋溢价目前处于两年多来的最低水平，意味买家无须支付额外现金给屋主，有助于刺激需求，带动买气。

以大型组屋来说，五房式和公寓式组屋的溢价中位数是零，可吸引有意提升的买家进场。

去年初，当组屋溢价动辙要两三万元的时候，一些无法拿出大笔现金的潜在买家被拒于市场外，转售交易量也因此减少。

不过，HSR房产经纪公司执行董事郑来明指出，虽然组屋溢价已减少，这不意味组屋价格比去年低，因为估价可能已增加，以致组屋价格可能与去年的不相上下。

“市场对组屋的需求一向强劲，除了要组织家庭的年轻夫妇及提升屋型者外，许多永久居民也会购买组屋作栖身之所。”

组屋估价是根据出售组屋的地点、屋龄、面积、设计和同地区转售组屋的售价进行比较后所得出的价格。组屋溢价指的是估价以外的现金数额。

在OrangeTee执行董事陈道俊看来，尽管组屋转售价在经济低迷之际创下新高，这其实并不稀奇，因为不少人可能认为最坏的情况已经过去。

他说，当许多人认为经济复苏曙光已出现时，便不会再对房地产市场却步。“买家过去多持有观望态度，现在则更愿意进场，因为他们担心价格日后会上涨得更多。”

房屋经纪认为，按目前走势，转售价将在未来半年保持平稳，季度价格增幅估计不超过2%。

新组屋方面，建屋局打算在今年下半年推出6000间预购组屋，超过三分之一是三房式或更小组屋。大部分新组屋将位于榜鹅新镇。

HDB Resale Flat Prices Surge To Record High
Source : The Business Times, July 25, 2009

Some industry watchers are predicting further upside for the year

THE HDB resale market seems to be chugging along nicely despite the recession. Soaring demand for resale flats sent prices to a record high in the second quarter, and some industry watchers are predicting further upside for the year.


APPRECIATING BLOCKS - Upgrading activity aside, the inflow of permanent residents, many from China and India, also contributed to demand for resale flats

Data from the Housing and Development Board yesterday showed the resale price index rising 1.4 per cent from the previous quarter to 140.2 in Q2. This is the highest level seen since 1990.

The increase surpassed HDB's flash estimate of a 1.2 per cent rise. It also reversed a 0.8 per cent fall in Q1 - the first slide after nine straight quarters of growth. The price dip in Q1 now seems like a 'statistical blip', said property consultant Nicholas Mak.

Executive flats saw the biggest percentage rise in median resale prices, up 2.2 per cent from a quarter ago to $455,000.


Strong interest in resale flats helped sustain the market. Buyers and sellers filed 10,184 resale applications in Q2 - swelling 58 per cent from Q1 and 31 per cent from a year ago. According to HDB, the quarterly resale registration volume last crossed the 10,000-mark more than four years ago - it was 11,562 in Q4, 2004.

Most of the 10,184 applications in Q2 were for four-room flats, followed by three-roomers and then five-roomers.

However, applications for executive flats showed the greatest increase, doubling from a quarter ago to 753 in Q2. Those for five-room flats also jumped 80 per cent to 2,713. The sharp surge in resale activity involving larger flats suggests that there were more owners who sold their flats to buy private homes, said Mr Mak.

Market analysts have flagged HDB upgraders as a significant group of buyers who revived the private property market. Many went for units in mass-market projects such as Mi Casa and Double Bay Residences.

C&H Realty managing director Albert Lu pointed out that owners of smaller flats are also moving to larger flats. Prices of five-room and executive flats have languished in the last few quarters, making the move more attractive, he said.

Upgrading activity aside, the inflow of permanent residents (PRs) also contributed to demand for resale flats. HSR Property Group chief operating officer Dennis Yong observed that his firm has up to 10 per cent more resale transactions involving PRs in the last few months, and many of them are from China and India.

Buyers remained unwilling to pay high premiums for HDB flats. The median cash-over-valuation (COV) was $3,000 across all flat types in Q2, down slightly from $4,000 in Q1. Notably, most five-room and executive flats were still unable to command any COV.

In a way, the low COV sustained demand for HDB resale flats, said PropNex CEO Mohamed Ismail. 'As the demand is strengthening quickly, sellers are expected to demand a higher COV.' Mr Ismail expects the resale price index to gain around 3 per cent to 145 points by the end of the year. C&H Realty's Mr Lu also projects a 2-3 per cent increase in resale prices.

Just a few months ago, property consultants had feared that HDB resale prices would drop as much as 10 per cent for the whole year. Signs of a stabilising economy and improved sentiment in the property market seem to have soothed nerves.

Statistics from the Urban Redevelopment Authority yesterday also painted a more calming picture. While prices in the residential, commercial and industrial sectors still fell in Q2, the declines were smaller than a quarter ago.

Resale Prices Of HDB Homes Up 1.4% In Q2
Source : 938live.sg, 24th July 2009

The resale prices of HDB flats rose by 1.4 percent in the second quarter of 2009.

This comes after a slight drop of 0.8 percent in the three months ending March.


The jump in the second quarter was higher than an initial estimate of a 1.2 per cent increase made earlier this month.

Resale transactions also rose, jumping from 6,400 cases in the first quarter, to 10,000 cases in the 2nd quarter.

The median cash-over-valuation or COV amount among all resale transactions continued its declining trend.

COV fell to $3,000 in the second quarter, down $1,000 from the 1st quarter.

CEO of real estate firm Propnex, Mohamed Ismail, said the lower COV made resale flats more attractive.

"COV has further declined, and this would have attributed for more buyers looking towards resale rather than the BTO or DBSS. Because either BTO or DBSS will take 3 to 4 years before they can get the keys to their respective houses. And this trend is expected to continue as long as the HDB COV is low, there will be greater demand."

HDB flats which sold above valuation accounted for 57 per cent of all resale transactions in the second quarter, down from 62 percent in the previous quarter.

HDB also announced plans to launch 6,000 new Build-to-Order flats over the next six months, of which some 2,400 units will be 3-room or smaller apartments.

The bulk of the new flats will be in Punggol.

In the HDB rental market, rents for 3-room, 4-room and executive flats fell by $100, but remained the same for 2-room and 5-room units.