ECG Property Logo with Licence Number

Dear Fellow ECG Property Consultants,

Do use this image for your marketing advert.

All the best!

We do things DIFFERENTLY,

Lynn ONG  | BSc. Real Estate (NUS)

Senior District Manager

R014395F

ECG Property Pte Ltd

A Subsidiary of ECG Holdings

Estate Agent no. L3009759F

Blk 190 Lorong 6 Toa Payoh #05-508 S (310190)

 

 

(M) +65 900 343 85

(W) www.ecgproperty.com / www.LYNNONG.net

A Report Card on the Property Market

Dear Readers,

Straits Times Article on Saturday to sum up 2011 and looking ahead for 2012. Analysis of various districts are also included in the article.

Probably my last post of 2011 as well, and to consolidate for 2012 over the next few days.

Enjoy reading.

XMAS Regards,
Lynn ONG (王丽英)

Senior District Manager
ECG Property Novena District

L3009759F / R014-395F
BSc. Real Estate (NUS)

Mobile: (+65) 8479 3149

Email: lynn.lovelyhomes@gmail.com

Website: http://www.LYNNONG.net/

Blog: http://www.lynnlovelyhomes.blogspot.com/
[Blogging on Analysis of Listings and Real Estate News]

A Report Card on the Property Market

24 Dec 11 - NEW home sales have proved remarkably resilient this year, with buyers nonchalantly shrugging off a host of worries, though the tide may be turning.
Data from the Urban Redevelopment Authority (URA) showed that in the first 11 months of this year, developers sold 15,393 new homes. Once this month's figures are in, this year could come close to beating the record-breaking 16,292 homes sold last year, but an apparent slowing in the sector could stymie that.
Analysts attribute these remarkably buoyant figures to strong demand for mass market homes, which often seemed impervious to external factors. But others have cautioned that the recent strong demand for homes may have been induced by the number of new developer launches.
The strong demand for homes prompted two rounds of property cooling measures this year.
The first batch came in January, marking a rocky start to the year. Those rules slapped residential properties with a seller's stamp duty if they were sold within the first four years of purchase and lowered the amount banks can loan to home buyers to 60 per cent. Another even tougher round of cooling measures was rolled out earlier this month. The new rules mean that foreigners and corporate entities will have to fork out an additional buyer's stamp duty of 10 per cent. This is on top of the existing stamp duty of about 3 per cent. Permanent residents buying their second and subsequent homes and Singaporeans buying their third and subsequent homes will have to shell out an additional buyer's stamp duty of 3 per cent.
While the tough measures are keeping buyers at bay for now, industry watchers do not expect this to last long. The latest round of measures is largely targeted at foreign buyers, said Mr Joseph Tan, CBRE's head of residential services, a group that is not prominent in the mass market property segment.
A recent report issued by CBRE outlined how Singaporeans make up 69.9 per cent of caveats lodged for homes outside the central region, and it is this local demand which will help prop up sales of mass market homes next year. Homes in this segment have long been dominated by first-time home owners and HDB upgraders. Now such homes are also a huge draw for investors and foreign buyers like the Chinese and Indonesians who have increasingly been muscling in on the scene.
Buyer sentiment is expected to moderate next year, with some analysts predicting a price correction of up to 30 per cent. But places with good fundamentals like a strategic location, access to public transport hubs and an established network of shops and amenities are slated to do well.
Several districts have remained tops among buyers while other neighbourhoods have fallen out of favour.

What's hotBedokThe District 16 town of Bedok is the most popular pick this year, said Mr Nicholas Mak, executive director of research and consultancy at SLP International.
So far this year, Bedok has recorded 3,848 caveats for both new and resale transactions. More than 100 units were sold at the 577-unit Archipelago project during its preview weekend earlier this month, at an average of $1,000 per sq ft.
Bedok Residences stirred up controversy over its queuing system last month, ultimately selling more than 470 units out of the project's 583 homes at a $1,359 psf median price.
'Bedok benefits from a big pool of people who live in the east. This means the pool of potential buyers and sellers is also bigger than in other areas. Most of these people also tend to be reluctant to move outside the east and tend to seek out homes within the eastern neighbourhoods,' said Mr Mak.
PunggolThe rapid redevelopment of the Punggol area has boosted the popularity of this fledgling waterfront new town.
According to SLP International, this has helped boost the ranking of District 19, which includes Hougang, Punggol and Sengkang, to the No.1 spot for new home sales, with a total of 3,102 deals so far this year. The neighbourhood recently entered a new stage of development, with more than 5,000 new private homes slated for completion over the next few years. Many buyers will be drawn by an attractive new waterway and plans for a new mall near the MRT station.
Still, some buyers have tended to dismiss this neighbourhood, saying it does not measure up to the amenities and infrastructure boasted by mature towns like Toa Payoh and Tampines.
But others have been more open to the area's development potential, encouraged by the Government's plan to establish Punggol as a waterfront town. In the first nine months of this year, close to 1,900 uncompleted units were launched for sale in District 19. Projects such as A Treasure Trove and The Luxurie proved a hit, with each development achieving take-up rates of more than 70 per cent.
These projects have helped to boost overall sales activity in Punggol by 9 per cent year-on-year, and lifted new home sales in the area by 40 per cent, according to data compiled by Jones Lang LaSalle (JLL).
Yishun and SembawangYishun and Sembawang have also done well, riding on healthy demand for private homes with innovative designs, said Mr Ong Kah Seng, director of property research firm R'ST Research.
So far this year, 1,184 new homes have been sold in District 27, which encompasses the Admiralty, Sembawang and Yishun areas. Several notable projects such as Miltonia Residences and Canberra Residences have contributed to the boost in new home sales.
Still, Mr Ong added that such far- flung areas face some hurdles as they are not so well-located and do not have significant development potential.
This means some buyers may sideline these areas in favour of neighbourhoods like Jurong East and Paya Lebar which have better fundamentals like strategic location and long-term development goals.
District 15Coming in third in the new home sales ranking is District 15, with nearly 1,149 deals closed this year. Made up of neighbourhoods such as Katong, Joo Chiat and Marine Parade, this location has once again proved to be popular among home buyers.
The area has also done well in overall home sales. According to data compiled by Savills, District 15 chalked up 11 per cent of the total caveats lodged this year, second to the 12 per cent garnered by District 19.
Ms Chia Siew Chuin, Colliers International's head of research, said the location's popularity stems from its proximity to the city, airport and recreational and leisure facilities such as East Coast Park. '(Districts 15 and 14) also host a wide array of supporting amenities... as well as a large selection of food and beverage haunts,' said Ms Chia.
What's notDistricts 9 and 11Despite being among Singapore's most prestigious postal codes, Districts 9 and 11 have achieved less than stellar sales this year.
The two areas include high-end luxury homes in the Chancery, Bukit Timah, Orchard, Oxley and Cairnhill neighbourhoods.
It has been a lacklustre year for the high-end and luxury home segment. The poor transaction volumes in these two particular districts have dragged them to the bottom five postal districts for this year, said Dr Chua Yang Liang, head of research at JLL. Year-on-year sales in District 11 slumped 53 per cent while those in District 9 tumbled 47 per cent.
Dr Chua said limited new supply in the prime markets is to blame: 'People looked for better value options with a smaller overall quantum as the economy stuttered and buyers became more budget conscious.
'(This benefited) the mass market as the more affordable properties on offer drew in the buyers,' he said, adding that foreign buyers have also been switching their location preference.
PromisingMarymount and ThomsonInterest in this District 20 neighbourhood has been building throughout the year, partly due to the opening of the remaining sections of the MRT network's Circle Line, which now links the area to Holland Village and Buona Vista.
'(The neighbourhood) is one of the few low-rise estates available which is centrally located, and perhaps still considered affordable for the average to above-average income buyer,' said Mr Ong.
A 603-sq-ft unit at Tresalveo, a condominium located opposite Marymount MRT station, sold last month for $748,000 or $1,241 psf.
Mr Ong added that the smaller but more strategically located neighbourhood gives off an exclusive, quaint vibe, which could differentiate the area from the rest of the housing supply that will come onstream in the next few months.
Set to underperformDistricts 9, 10, 11Prime areas popular among foreign buyers are likely to be the worst performers next year, said JLL's Dr Chua. He explained that these areas will experience a drop in transaction volumes involving foreign buyers as they feel the pinch from the new 10 per cent stamp duty.
Other analysts said the market for high-end properties had been slow even before the measures and this trend is set to continue, with prices and sales volumes remaining in the doldrums.
The changing profile of foreign buyers is partially to blame, said Mr Mak.
'More of them are from China and are turning to suburban residential projects, this compared to earlier batches of buyers like Europeans, Indonesians and Australians who tend to favour snapping up homes in the prime districts.'
Next year will no doubt be a challenging one for the private residential market as it adapts to the new cooling measures and the economic slowdown.
Segments within the residential market will become more distinct, say analysts, with landed property to be a more resilient sector due to its limited supply and lower foreign participation.
For now, both buyers and developers are playing a waiting game, said property consultants, and a clearer picture of what tone the market will take will probably emerge only later next year.Additional reporting by Esther Teo
Source: The Straits Times

Developers dangling discounts for buyers

Dear Readers,

As expected. Nothing new. =)

Cheers!

Lovely Regards,
Lynn ONG (王丽英)

Senior District Manager
ECG Property Novena District

L3009759F / R014-395F
BSc. Real Estate (NUS)Mobile: (+65) 8479 3149

Email: lynn.lovelyhomes@gmail.com

Website: http://www.LYNNONG.net/

Blog: http://www.lynnlovelyhomes.blogspot.com/
[Blogging on Analysis of Listings and Real Estate News]

Developers dangling discounts for buyers

Reported on 10 Dec 2011 Some property developers are offering carrots to prospective homebuyers to offset the new

stamp duty measures announced by the government a few days ago.

Some property developers are offering carrots to prospective homebuyers to offser the new stamp duty measures announced by the government a few days ago.

 

The Straits Times reported that a 5 per cent relief package is being offered by Far East Organization to affected buyers at all of its already-launched projects. Buyers will be reimbursed 3 per cent of the unit price to offset the new stamp duty. They will also receive a furniture voucher worth 2 per cent of the flat price after putting down a 30 per cent deposit if the project has not been completed. This will be applied across the board to all buyers so foreign buyers will still be worse off.

 

Apart from this, some of its other properties also have varying discounts. For instance, units in its Seastrand project in Pasir Ris Drive 3 will be discounted by up to 14 per cent.

 

Meanwhile, according to the report, Wing Tai is also offering a relief package for its luxury Helios Residences at Cairnhill Circle, wherein buyers will receive a cash rebate of up to 2 per cent of the total price upon payment.

 

The paper also reported that agents at Keppel Land, UOL, CapitaLand, DWG, DTZ and Huttons said they did not know of any discounts on offer. However, some agents of the last three firms said they might be able to negotiate an additional 1 per cent cash rebate.

Source: Business AsiaOne

Citizens of 5 Countries to pay same stamp duty as Singaporeans

Dear Readers,

Did you know about this?

Frankly, I don't and I think that this is good knowledge for all of us.

Lovely Regards,
Lynn ONG (王丽英)

Senior District Manager
ECG Property Novena District

L3009759F / R014-395F
BSc. Real Estate (NUS)Mobile: (+65) 8479 3149

Email: lynn.lovelyhomes@gmail.com

Website: http://www.LYNNONG.net/

Blog: http://www.lynnlovelyhomes.blogspot.com/
[Blogging on Analysis of Listings and Real Estate News]

Citizens of 5 countries to pay same stamp duty as Singaporeans

By Jonathan Kwok from Straits Times

CITIZENS of five countries that have free trade deals with Singapore, including the United States and Switzerland, will be treated as Singaporeans for the purposes of the new stamp duty measures.

When they buy a private home, Americans, Swiss and nationals from Liechtenstein, Norway and Iceland will be treated the same as Singapore citizens, the taxman said in a guide on Wednesday.

This will enable them to avoid the new 10 per cent additional buyer's stamp duty that foreigners now have to pay when they buy a private home.

Free trade agreements usually ensure that a country's citizens are accorded certain trade protections when they are in the partner nation.

The Additional Buyer's Stamp Duty (ABSD), as the new levy is called, was announced by the Government on Wednesday and hits foreigners hardest. They have to pay an additional stamp duty of 10 per cent when buying a home.

But the foreigners from these five countries can apply for remission or relief.

The Inland Revenue Authority of Singapore (IRAS) website says they must provide identification, acceptance to option to purchase/sale, the purchase agreement and the ABSD declaration form.

Under the new rules, permanent residents (PRs) buying a second and subsequent property will pay an additional 3per cent stamp duty, while Singaporeans buying their third or subsequent homes must pay an extra 3per cent.

The rule is also that for purchases made by two or more parties with mixed residency status, such as a Singaporean with PR, the higher rate will be imposed.

But IRAS also gave examples of situations where remissions can apply. These are in cases where married couples have mixed residency status.

For example, a PR who currently owns a property while his Singaporean spouse owns none can apply for relief from the additional stamp duty when they co-purchase a home.

In another scenario, a PR and a Singaporean spouse co-own a property. When they next jointly buy a property, they can apply to be exempt from the 3 per cent levy.

The relevant documents have to be submitted to IRAS. Relief will also be provided for qualifying developers.

IRAS also said that people who want to downgrade from private housing to an HDB flat will be allowed a concessionary period to sell their private residential properties. The application for relief in such cases can be made through the HDB.

More details about the relief schemes can be found in the ABSD e-Tax guide, which can be downloaded from www.iras.gov.sg/irasHome/page04.aspx?id=910.

Source: Singapore Law Watch

US, Swiss citizens can avoid new Singapore stamp duty - Paper
By Business.AsiaOne

SINGAPORE - Citizens of five countries, including the United States and Switzerland, could avoid paying the additional stamp duty when they purchase a property in Singapore due to tax treaties with the city-state, the Straits Times reported on Friday.

Similar treatment will also be accorded to citizens of Liechtenstein, Norway and Iceland, who will be treated the same as Singapore citizens, the paper quoted the tax department as saying.

Singapore announced new measures on Wednesday to cool its housing market, saying foreigners who buy private homes will have to pay an additional stamp duty equal to 10 per cent of the property value.

Many Singaporeans have blamed an influx of foreigners from China and other locations for driving up the costs of living in Singapore.

Foreigners accounted for 18 per cent of new home units sold in Singapore in the third quarter this year, exceeding the previous peak of 15 per cent in 2007, Citigroup said in a research note.

Source: Business AsiaOne

Two groups seen to gain from new property curbs

Dear Readers,

Please read the attached article with caution as I question the 'gain' of mass market developers that the reporter had reported.

Is there really a 'gain'? Foreign buyers make up a good 18% of the buyers in the private property market (Citigroup Research Note) and with the private property in the central districts getting out of reach of foreign buyers, they started to move to mass market to buy, creating a pent-up demand. Since the policy targets all foreign buyers, what's there EXACTLY to 'gain' for mass market property buyers?

We will get to see if they really do 'gain' from this policy. But the truth is, developers do have the holding power hence, they will not be dropping the price anytime soon unless they had finished developing and approaching the 5 years timeline set by the Govt.

Happy Weekend!

Lovely Regards,
Lynn ONG (王丽英)

Senior District Manager
ECG Property Novena District

L3009759F / R014-395F
BSc. Real Estate (NUS)Mobile: (+65) 8479 3149

Email: lynn.lovelyhomes@gmail.com

Website: http://www.LYNNONG.net/

Blog: http://www.lynnlovelyhomes.blogspot.com/
[Blogging on Analysis of Listings and Real Estate News]

Two groups seen to gain from new property curbs
By Wayne Chan | Posted: 10 December 2011 2301 hrs

SINGAPORE: As the property market reels from the shock of new curbs to cool prices, some market watchers say two groups will stand to benefit the most.

They are the mass market condominium developers and Singaporeans who are buying their first private property or upgraders.Meanwhile a check on the showflats on the first weekend after the new property curbs took effect showed mixed scenes. While some showrooms were quiet on Saturday, others like the one for the Palette at Pasir Ris saw a steady flow of potential buyers.

Is the quiet scene a sign of the lull that property watchers have predicted in the wake of the new curbs to cool the market? It depends, as it is now the December school holiday period, which is usually quiet on the property front.

Nevertheless, property watchers expect many to adopt a wait-and-see approach in the wake of the new measures.

But one group appears to be paying more attention to the price movements - Singaporeans who do not have to pay the extra buyer's stamp duty for a second property and who think private home prices will dip now that an additional 10 per cent stamp duty has been imposed on foreigners.

SLP International's executive director for research & consultancy, Nicholas Mak, told Channel NewsAsia that the additional tax may deter foreigners buying private properties in Singapore.

He said: "The stamp duties to be levied on non-resident foreign buyers are actually very hefty. Going ahead, there'll be market uncertainties and investors are not sure whether their investments are able to recover the stamp duties, or, maybe even be profitable. Hence that additional stamp duty is going to deter some of the short-term speculative buyers."

Singaporeans planning to buy their first private property welcomed the changes.

Managing director Don Tan, a 36-year-old Singaporean with a family of four, said: "Singaporeans can really plan for the future. If it (price) keeps rising, then I think my future generation, there's no place for us already...(In) Singapore, after all, the land is constrained so it's better that we put some control to it (property market) so that Singaporeans are put on a higher priority."

Mr Jing Yang, 29, an IT engineer, said the new property measures have their pros and cons. He said: "...it might help more Singaporeans to own private property. But if you are doing investment, it's a higher risk now."

SLP International's Mr Mak said that mass market condominium developers should stand to benefit from the new measures.

He said: "The latest round of measures are going to affect different developers differently, because it's going to adversely affect the high-end properties more than the mass market properties."
"The reason is that high-end properties depend more on investors and also sometimes they are targeted at foreign investors. Hence developers who specialise in high-end properties might be more affected than those who specialise in mass market condominiums.

"Developers of mass market condominiums might look at their product mix. They may want to develop more three-bedroom or larger-size apartments to attract Singaporean buyers who may be planning to buy for their own occupation, because such buyers are not affected or less affected by the latest cooling measures."

Mr Mak added some developers are speeding up plans to launch their projects while market conditions remain favourable, before the situation becomes more uncertain next year.

- CNA/ir

Source: Channel News Asia

Dear Readers,

A simple read on the rationale of getting developers to follow the timeline of 5 years, in order for them to avoid the Additional Buyer Stamp Duty.

Cheers!

Lovely Regards,
Lynn ONG (王丽英)

Senior District Manager
ECG Property Novena District

L3009759F / R014-395F
BSc. Real Estate (NUS)
Mobile: (+65) 8479 3149

Email: lynn.lovelyhomes@gmail.com

Website: http://www.LYNNONG.net/

Blog: http://www.lynnlovelyhomes.blogspot.com/
[Blogging on Analysis of Listings and Real Estate News]

- Published on Dec 10, 2011

Property measures: Why projects must be built and sold in 5 years

The Government has explained its rationale behind a new rule requiring developers to build and sell all units on residential sites within five years or face a 10 per cent stamp duty.

In response to questions posed by The Straits Times, the Ministry of Finance (MOF) said the five-year limit is imposed to ensure that developers follow through with the development.

'A five-year condition for completion of development and sale is needed, as otherwise, developers holding on to their units are no different from corporate entities holding investment properties,' an MOF spokesman added.

Developers will have to develop any residential land parcels they buy from Dec 8 and sell all the units in the project in the timeframe - if they want to avoid paying the new 10 per cent additional buyer's stamp duty.

Source: Straits Times

New Cooling Measures: Shifting the Goalposts

Dear Readers,

Another article analyzing into the impact of the new measures from the perspective of developers, how developers can game the system and the potential intention of the Government in implementing this policy with directions taken from the Government Land Sales List.

Happy Reading!

Weekend Regards,
Lynn ONG (王丽英)
Senior District Manager
ECG Property Novena District

L3009759F / R014-395F
BSc. Real Estate (NUS)
Mobile: (+65) 8479 3149

Email: lynn.lovelyhomes@gmail.com

Website: http://www.LYNNONG.net/

Blog: http://www.lynnlovelyhomes.blogspot.com/
[Blogging on Analysis of Listings and Real Estate News]

 

New cooling measures: Shifting the goalposts

by Colin Tan

04:45 AM Dec 09, 2011

Are the latest cooling measures - specifically targeted at the private housing market - what many Singaporeans have been waiting for since the General Election in May?

Wednesday's announcement of an additional buyer's stamp duty of 10 per cent for foreigners and 3 per cent for Permanent Residents already owning one or more properties and for Singaporeans already owning two or more properties caught the market by surprise.

The reaction of the Real Estate Developers Association of Singapore (REDAS) was understandably one of deep disappointment. Almost a whole year of residential land sales have been snapped up. Millions of dollars have been poured into these ventures. The sudden introduction of the measures is akin to shifting the goalposts halfway during the game.

The problem is probably one of miscommunication. In all its actions to date, the authorities have not let on that investment buys could be a problem. In fact, all four earlier sets of cooling measures were aimed at reducing speculation and stabilising prices. Now, it seems all of us were fooled. A statement or two indicating otherwise would have been greatly appreciated. At least, some developers would have factored this in as a risk when bidding for sites.

Then again, aren't developers supposed to factor in such risks?

Many analysts have singled out luxury homes as the market segment that stands to lose the most. Are we not forgetting that buyers in this segment are more concerned with the product than its price. Is an outlay of a mere 10 per cent more going to deter the ultra-rich from any of these purchases.

For sure, nobody likes to be discriminated against. All the developer has to do is to raise the price by 10 per cent but offer to absorb the additional stamp duty. The problem is psychological rather than real. Admittedly, sales for this market segment have been slow but it will not be any slower because of the new measures, unless of course, the product is more high-priced than high-end.

Wednesday's announcement came very soon after Minister of National Development Khaw Boon Wan's wish that the HDB first-timers' application rate for the Build-To-Order launch would fall below 2 times was fulfilled way beyond his expectations. Has the focus now shifted to fulfilling citizens' upgrading aspirations? It appears to be so.
The supply of Executive Condominiums (ECs) has been raised for next year. On the Government's Confirmed List of land sales for the first half of next year, five are for ECs. It is also probably recognition of the fact that the latest stamp duty changes would not correct private property prices soon enough or at least not enough to fulfil some of the upgrading aspirations. Depending on demand, we can expect more EC sites to be offered for sale in the coming years.

Apart from what is likely to have been miscommunication, I would say the measures are finally addressing the problem of excessive liquidity and the dangers it could pose for a small open economy like Singapore's.

Compared to the earlier changes in January, where up to 16 per cent in seller's stamp duty may be imposed depending on the timing of the divestment, the current set of changes is actually less drastic but more effective. But will it be enough?

To potential first-time private home buyers expecting a sharp drop in prices, it is too early to cheer. Even if property prices were to start to correct from today, it may be many months before they reach your affordability levels.
Time and time again, I have advised against under-estimating the liquidity challenge. How many of us thought that the cooling measures imposed in January marked the start of a decline of the residential market. I can tell you there were many red faces thereafter, some of them of very prominent market analysts.

How many times have our neighbours played our local investors out by changing the rules mid-way, but has this stopped property investments in these countries? The answer is no.

It is well-known that Hong Kong and Singapore are two favourite property investment destinations for mainland Chinese investors. If you have not been monitoring Hong Kong property prices, take a look now and then look at Singapore's. Then tell me whether the effectiveness of the current measures can be sustained over time.

Colin Tan is head of research and consultancy at Chesterton Suntec International.

Source: TODAY Online