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Widow of slain Pakistani governor gets his $16m Sentosa bungalow
Court says his children from previous marriage have no rights to home

By K. C. Vijayan, Law Correspondent

BACKGROUND STORY

Justice Choo said in his judgment grounds that although the claimants are entitled to a share in his assets as a whole, they have no claim on any specific individual property.



THE widow of an assassinated Pakistani governor has won a court battle over his $16 million bungalow in Sentosa Cove.

Mrs Aamna Taseer had sued her husband's three children from a previous marriage after they tried to stop her selling the house.

Last week, the High Court agreed that the trio had no rights to the property.

The widow was registered as joint tenant of the bungalow, which she bought in 2008 with her husband, Mr Salman Taseer. So when the 66-year-old Punjab governor was gunned down by a bodyguard in Islamabad last year, she appeared to be in line to inherit the property.

However, his three grown-up children lodged a caveat, which meant they wanted a say in how the house was sold or disposed of.

Mr Shaan Taseer, Ms Sanam Taseer and Ms Sara Taseer Shoaib argued that it was bought solely with their father's money, and that he had given instructions for it to be sold by his property agent just three months before he was killed.

They also claimed that although Mrs Taseer was the joint tenant, she was actually only holding the property in trust for her husband.

All three have signed sworn affidavits stating that Mr Taseer never gave her anything of value during their marriage, and that the couple did not love one another.

The defendants had also obtained a Pakistani court order to stop the widow from disposing of his assets until further orders, said their lawyer Sim Bock Eng.

But Justice Choo Han Teck pointed out that this order did not apply in Singapore. He added that he was not convinced by the children's claims about the couple's marriage as they had not been tested in a trial.

The judge ordered the caveat to be removed, which will allow the widow to dispose of the property as she sees fit.

Mr Taseer's killing is believed to have been linked to his support for a Christian woman sentenced to death under Pakistan's harsh blasphemy laws.

He is understood to have been part of one of South Asia's richest families, with interests in textiles, media and brokerage firms.

A Sunni Muslim, he divorced his first wife in 1983. His three children claiming a stake in the bungalow are from that marriage.

One of them, 42-year-old Ms Taseer Shoaib, is a jewellery designer who lives in Singapore with her husband and two children.

The governor died without a will, and had not appointed anyone to look after his estate.

Since the three children were neither administrators nor executors, they were not entitled to place a caveat, argued the widow's lawyer Daniel Chia of Stamford Law.

This is because caveats can be placed only by people with a direct interest in the property.

The trio are fighting over their father's overall estate in the Pakistani courts, and have already been awarded a 40 per cent share.

But Justice Choo said in his judgment grounds that although they are entitled to a share in his assets as a whole, they have no claim on any specific individual property.

'That is a different proposition altogether,' he added.

This is understood to be the first time a Singapore court has ruled that the amount a beneficiary receives from a dead person's estate should be calculated according to the value of the estate as a whole, and not the property which forms part of it.

It means that beneficiaries in similar circumstances cannot lodge caveats unless they are administrators or executors linked to the property.

 

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Sales of new private homes bounce back

Published on Feb 16, 2012
By Esther Teo, Property Reporter


New private home sales here rebounded strongly last month thanks to some major launches after sinking to a two-year low in December when tough new property cooling measures set in.

But there are also signs that foreigners are shying away from buying homes after a hefty 10 per cent additional buyer's stamp duty was imposed on them as part of the Dec 8 measures.

A total of 1,872 units were sold last month - the highest number since November 2010 - in sharp contrast to the two-year low of 632 units in December.

When sales of executive condominiums (ECs) such as The Rainforest in Choa Chu Kang are included, home sales rose further to 2,077 units. ECs are a hybrid of public and private housing.

Experts say Singaporean first-time buyers and investors, little affected by the new additional buyer's stamp duty, are keeping the market buoyant.

But foreign demand seems to be drying up. Only 7.5 per cent of the 889 homes sold at Far East Organization's 992-unit Watertown were bought by non-permanent resident (PR) foreigners. They made up 10 per cent of the 420 units sold at 528-unit The Hillier.

In comparison, non-PR foreigners made up about 20 per cent of buyers at the 338-unit The Tennery in Bukit Panjang launched last year.

This apparent trend away from foreign purchases is further supported by a preliminary analysis of the 172 new sale caveats lodged last month with the Urban Redevelopment Authority.

Although this pool of caveats is very small, and might not be representative of the entire month, only 5 per cent were lodged by non-permanent resident foreigners. More caveats are expected to stream in over the coming weeks.

By comparison, from September to November last year - three months before the measures - foreigners made up 18 per cent of all new sale caveats.

Robust mass market sales led the charge again last month, powered by a few large mass market projects - Watertown in Punggol, The Hillier in Upper Bukit Timah and Parc Rosewood in Woodlands - which made up 72 per cent of total sales.

Still, some experts say sales might be more subdued in the next few months given a lack of large-scale mixed-use developments such as Watertown and The Hillier - typically popular among investors hoping to rent the finished units out.

SLP International research head Nicholas Mak said units in the three top-selling projects consist of primarily small one- or two-bedder units that are likely to be bought by local investors. He expects monthly sales to fall to between 900 and 1,400 units in the next few months.

However, Jones Lang LaSalle's head of research Chua Yang Liang said that with some developers absorbing part of the additional stamp duty, the impact of the recent measures has been mitigated.

Underlying demand from Singaporean buyers is likely to keep sustaining the mass market, he said, adding that up to 12,000 homes could be sold this year if the market remains stable.

Mr Ong Teck Hui, head of research and consultancy at Credo Real Estate, said last month's encouraging showing will lead to more new launches as developers capitalise on positive sentiment.

Upcoming new launches include Bartley Residences, Seletar Park Residence, Palm Isles, Casa Cambio and Sky Habitat.

However, it is a vastly different story in the high-end segment which is at a 'standstill' with only 17 homes in the city centre sold last month. Homes on the city fringe performed only slightly better with 94 units sold.

Experts say that demand in the city centre is expected to remain subdued as it has a higher proportion of foreign buyers compared with suburban areas.

 

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New rule could lead to fewer housing agents
People intending to moonlight as agents must get boss' approval

Published on Feb 18, 2012
By Daryl Chin


THE number of property agents could fall now that the Council for Estate Agencies (CEA) requires those who are holding another job to get their employer's approval first, before becoming property agents.

Industry watchers say this could lead to a reduction of up to 15 per cent of agents here when the time comes for some to renew their licences next year.

The rule, which kicked in earlier this month, requires applicants to declare if they will be holding another job or doing full-time national service while being a property agent.

If so, they need to submit details of their employment or national service unit, plus a letter of approval from their employer or commanding officer.

The CEA, which started work in October 2010, is part of the Government's bid to raise the standards of the real estate industry through regulation and disciplinary powers.

Ms Purnima Shantilal, CEA director of licensing and investigations, said the new rule was implemented as part of a regular review to enhance professionalism.

'The question was included to allow CEA to gather a more comprehensive profile of the industry. Existing salespersons will be required to make the same declaration during the renewal of their registration status,' she added.

PropNex's senior vice-president Lim Yong Hock said his staff discovered the rule only after they applied for licences for new agents.

'Typically, agents do not need to declare to the property agency if they have other work commitments. It's fine, as long as they are able to do the job,' he added.

His view is that the new requirement will lead to some prospective agents dropping out.

'Overall, the net effect on the industry could be a reduction of between 10 and 15 per cent by next year, as there is a substantial number of people doing this to supplement their income without their employer's knowledge.'

At the start of this year, there were 30,577 property agents registered with 1,487 firms.

ERA Realty's key executive officer Eugene Lim said the new rule would hit hardest those looking for a career change.

'There's a learning curve to being an agent, and sometimes people want to try it out first, and close a deal or two before they decide if it's worth the switch,' he noted.

The number of new agents could also fall as he doubts that those working in the civil service, such as teachers or army regulars, can get the necessary permission.

He added: 'CEA is right in wanting agents to be serious and professional about the job, and not step on two ships. But as this affects those who are genuinely seeking better opportunities, perhaps the rule could be tweaked.'

Colonel Desmond Tan, director of public affairs at the Ministry of Defence, said army regulars are not allowed to engage in activities where remuneration is paid, without prior approval from the ministry.

As for full-time national servicemen (NSF), they will 'not be allowed to undertake salaried or contract employment, or to run businesses, with the exception of those facing financial hardship and who have been granted approval by Mindef'.

CEA is aware of an NSF who is registered as a property agent.

Ms Jacqueline Thoo, a lecturer teaching human resource management at Singapore Polytechnic, said employees generally need to seek their employer's consent before they take on another job.

'Things will be worse if the employer finds out through other means,' she added, noting that one way could be the public register, where consumers or employers can search for the particulars of sales agents using their names, registration numbers or mobile phone numbers.

'The employer is paying you a salary and expects a full-time commitment. So it's only right to be fair to them,' she added.

 

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Surgeon Susan Lim sells home at Sentosa Cove for $39 million
Buyer of surgeon's bungalow believed to be an Indian national

Published on Mar 2, 2012

Dr Lim's sea-facing bungalow was priced at $2,448 per sq ft. This sale smashes the old record of $36 million - or $2,403 psf - paid for a 14,983 sq ft bungalow on Paradise Island in the northern part of Sentosa Cove in 2010. -- ST PHOTOS: NEO XIAOBIN
By Esther Teo, Property Reporter


Embattled surgeon Susan Lim has sold her sea-facing bungalow in Sentosa Cove for $39 million, a record absolute price for the upmarket enclave.

It is believed the home - a plush residence said to have five bedrooms and an entertainment room - was bought by an Indian national from the energy sector.

A few months ago, his purchase would have attracted the standard 3 per cent stamp duty, but the measures that came in on Dec 8 imposed an additional 10 per cent duty on foreign home buyers.

So the buyer will now have to stump up about $5 million in levies for the privilege of buying Dr Lim's home.

Sentosa Cove is the only place where non-permanent resident foreigners can buy landed homes, although transactions still need government approval.

Dr Lim's 15,929 sq ft estate in Cove Drive - likely two adjoining plots that had been merged - was priced at $2,448 per sq ft (psf).

That is well above auction prices achieved for 12 vacant Sentosa Cove bungalow plots in the southern precinct where Cove Drive is located.

Each plot went for between $656 and $1,039 psf in August 2006, or between $5.56 million and $8.15 million each. They do not include the construction costs. But even taking into account these costs, Dr Lim most likely has made a handsome profit from the sale.

The Lim sale smashes the old record of $36 million - or $2,403 psf - paid for a 14,983 sq ft bungalow on Paradise Island in the northern part of Sentosa Cove.

Mr Shen Bin, a Chinese national and Singapore permanent resident, is believed to have bought the property in May 2010.

Mr Shen is said to be the son of billionaire entrepreneur Shen Wenrong, chairman of China-based steel manufacturer Shagang Group.

The island experienced tepid sales volumes last year, so this latest mega-deal could revive the sector.

Only 79 caveats - 24 for landed and 55 for non-landed homes - with a total value of $737.6 million were lodged with the Urban Redevelopment Authority last year.

And there were only 12 new home sales last year, forcing some developers to look towards renting out completed but unsold projects.

The lacklustre 2011 followed a better year when 203 caveats - 62 landed and 141 non-landed homes - with a value of $1.7 billion were lodged.

With 75 caveats lodged, 2008 was the only year with lower sales volumes than 2011 since caveats started being lodged for Sentosa Cove in 2004.

Dr Lim was in the limelight after she took the Singapore Medical Council (SMC), which regulates the medical profession, to court. She had wanted to block an inquiry by a second medical disciplinary committee to look into complaints of overcharging.

There were allegations that she charged a member of the Brunei royal family $24.8 million for seven months of treatment and made false representations in invoices rendered to her. The patient died of cancer in 2007. Dr Lim later gave a 50 per cent discount.

After losing her case in both the High Court and the Court of Appeal, she has to bear the cost of her own legal fees as well as those of the SMC.

In such civil suits the losing party has to pay a part of the winning party's legal charges. This is in addition to the fees Dr Lim has to pay her own lawyers. She will also have to pay costs for both hearings.

 

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Sons lose appeal to claim $7m house from dad's mistress

Published on Mar 2, 2012
By Selina Lum


TWO sons of late psychiatrist Wong Yip Chong lost their court battle to wrest a $7 million house from their father's long-time mistress yesterday.

Last year, the sons - neurologist Meng Cheong, 55, and locum doctor Meng Leong, 50 - went to court to block Madam Patricia Ling Ai Wah, 61, from getting the house in Chancery Hill Road.

Their father had signed a transfer document in 2004 to make her a joint owner of the house with him, but the sons wanted this document declared invalid because, they said, their father was mentally incompetent when he signed it.

Dr Wong had lived in the house with Madam Ling for 30 years.

In the High Court in August, the sons tasted their first defeat: Judge Lai Siu Chiu ruled that the transfer document was valid.

The judge also chastised the sons for acting in their own interests rather than that of their father, and ordered them to pay costs for the five-week hearing instead of getting their father's estate to foot the bill.

Three weeks after this, Dr Wong died of Alzheimer's disease at the age of 82, making Madam Ling the sole owner of the house.

The brothers then filed an appeal. And they were once again defeated in the Court of Appeal yesterday.

After hearing arguments from lawyers on both sides, the three-judge court dismissed the appeal and upheld the High Court's decision.

Chief Justice Chan Sek Keong, giving the court's decision, said this was largely a case in which the High Court judge had heard from all witnesses and looked at all the documents, to come to his decision that Dr Wong had been mentally sound when he signed the papers.

CJ Chan said that it was not the function of the appeals court to pore over all the evidence again to re-evaluate the way the judge had come by his conclusion.

The other two judges in the apex court were Justices Chao Hick Tin and Tan Lee Meng.

The sons' lawyer, Senior Counsel Andre Maniam, had argued that Dr Wong was unable to personally make a decision regarding the transfer, with his memory significantly impaired by dementia.

But Madam Ling's lawyer, Senior Counsel Cavinder Bull, said witnesses had testified that Dr Wong was then lucid.

The appeals court has ordered the two sons to personally pay for the costs of the appeal. Sources said the tab could come close to $1 million.

 

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Second-time buyers get a better shot at EC units
Revised quota perks up sales; higher prices also favour second-timers

Published on Mar 5, 2012

All 182 units of Twin Waterfalls set aside by developer Frasers Centrepoint for second-timers were snapped up in two hours (above) on Sunday. -- ST PHOTOS: TED CHEN
By Daryl Chin


When the news broke last Friday that second-time buyers of public housing units would be given more chances to purchase executive condominium (EC) units, Mr Eddie Luo, 37, was elated.

The engineer and his wife were seeking to move their two children and his father from their five-room flat in Sengkang, and had failed to get a unit at Twin Waterfalls in Punggol on their first try. They are happy now that they have landed themselves a unit.

Mr Luo was among the many who thronged the Punggol showroom on Sunday, following the announcement of a revised quota of flats for second-timers - namely those who have previously enjoyed a housing subsidy from the Government.

From 5 per cent previously, 30 per cent of units in ECs will now be set aside for this class of house hunters. ECs are sold by private developers with condominium-like facilities, but come with conditions set by the Housing Board, such as a five-year minimum occupancy period.

All 182 units of Twin Waterfalls set aside by developer Frasers Centrepoint for second-timers were snapped up in two hours.

Its spokesman Elson Poo said the strong demand was a testament to the attractive pricing of the project, which is going for $698 per sq ft (psf).

In all, 460 of the 728 units have been sold.

The response for the 670 units in the other executive condominium project being marketed, the Tampines Trilliant, was more muted.

A Sim Lian group spokesman said that of the 168 units released for second-timers on Saturday, about 110 units were sold within the day.

About 300 units, which go for $766 psf, have been sold.

Ultimately, the demand boils down to price as well as the quota, said SLP International's head of research Nicholas Mak.

'The higher the price goes, the more skewed towards second-timers the number will be, because first-timers may not be able to afford the more expensive developments,' he said.

'Going forward, you might see more ECs being dependent on second-timers or HDB upgraders rather than first-timers, given the glut of affordable Build-To-Order (BTO) flats coming onstream.'

The Government has promised to build about 25,000 new flats this year.

Based on Mr Mak's data, the psf prices of ECs when they were launched in 1996 was about $400; EC units now go from about $700 to $750 psf.

Nearby private condominium units are fetching $820 to $950 psf for comparable flat types.

On the other end of the scale, a larger BTO flat will cost $250 to $350 psf, and a resale flat, $380 to $550 psf.

'If second-timers continue to go for ECs, it may be feasible to revise the quota even further,' said Mr Mak.

Mr Poo agreed. Based on the sales at Twin Waterfalls, the 30 per cent allocated to second-timers have already been taken up. Of the 70 per cent reserved for first-timers, slightly less than half have been taken up.

'The Government has responded to ground sentiment. But it could still be frustrating for the second-time buyer, who may have a stronger financial base but do not have the chance to buy EC units,' he said.

Mr Colin Tan, the research head at Chesterton Suntec International, said such demand may continue, since second-timers feel they have a real chance at getting a choice unit now.

As a rule, the ratio of first- and second-timers are observed onlywithin the first month of a project's launch. After that, any eligible house hunter may buy, although the less-desirable units may be left by then.

Mr Tan said he did not expect the quota to make a big impact on the market due to the small quantities, unless the Government sells more land for ECs.

 

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Foreign buyers retreat as stamp duty bites
Share of private housing by non-PR foreigners falls after Dec measures

Published on Mar 22, 2012

The share that non-permanent resident (PR) foreigners have of the private housing sector fell by about 10 percentage points this year compared with November - right before the Dec 8 measures kicked in. -- ST PHOTO: DESMOND WEE
By Esther Teo, Property Reporter


THE hefty new stamp duty imposed late last year seems to have cooled foreign demand for property here.

The share that non-permanent resident (PR) foreigners have of the private housing sector fell by about 10 percentage points this year compared with November - right before the Dec 8 measures kicked in.

In November, foreigners bought 385 units, including new sales, resales and subsales, for a 16 per cent slice of the entire market, excluding executive condominiums (ECs).

But they bought only 53 units in January and 96 units last month, giving them a market share of about 6.5 per cent, according to analysis of Urban Redevelopment Authority data by consultancy Savills Singapore. In 2010, foreign buyers comprised 12 per cent of the market, rising to a record 17 per cent last year. Sales by PRs have held steady at about 13 per cent for both 2010 and last year.

Experts say the 10 per cent additional buyer's stamp duty applied to all foreign purchases was the main cause of the steep drop.

The measures would have caused a reaction, making foreigners think twice about whether Singapore was still an attractive investment destination.

Mr Ku Swee Yong, chief executive of International Property Advisor, said the frequent shifts in policy could also have dampened demand.

The slew of policy changes over the past two years may have prompted foreigners to opt to rent before deciding on whether they want to buy, he noted.

Some of his Malaysian clients are considering investing in commercial space or smaller homes with lower overall prices, to completely avoid the duty or pay a smaller fee.

Mr Ku expects foreign demand to be subdued for the rest of this year.

Mr Tan Kok Keong, OrangeTee's research and consultancy head, also noted that with no major bad news between November and last month, the additional stamp duty was clearly the main cause.

Some experts say the drop might be a temporary lull as foreign buyers take time to get used to the idea of the higher tax.

Mr Alan Cheong, director of research and consultancy at Savills, believes foreign demand will inch up over time.

'Foreign buyers at the moment may baulk at the extra 10 per cent premium, but once they see this as the new norm, they may merely treat the additional buyer's stamp duty as sort of a 'cover charge' for parking their funds in a safe haven,' he added.

OrangeTee's Mr Tan said foreign buyers could creep back in the second half of the year but they are unlikely to match the figures seen before the measures.

'It also depends on whether other countries like China impose further restrictions on their property market. If they do, some foreigners might be diverted here to buy instead,' he added.

Chinese buyers made up about 28 per cent of all foreign purchases - by PRs and foreigners - last year, bypassing Malaysians, the traditional leaders. Tighter home-buying policies in China, such as restrictions on residents in major cities buying a second or third home, prompted more Chinese to look further afield.

Despite the dip in foreign demand, home sales remained strong in the first two months of the year as Singaporean buyers continued to power the market. Last month, a record 3,138 homes, including ECs, were sold as buyers flocked to mass market projects with affordable, small-sized units.

 

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Building boom in Geylang with 1,900 private homes planned
Some 1,900 private homes planned; many are shoebox units

Published on Mar 23, 2012

Geylang will see more than 25 projects completed over the next few years, such as Rezi 26 in Lorong 26, Guillemard Edge and Suites 28 off Guillemard Road (above), and Casa Aerata between Lorong 26 and Lorong 28. -- ST PHOTOS: SEAH KWANG PENG
By Gan Yu Jia

Mention Geylang and many think of the red-light district, but the area is in the middle of a building boom, with developers banking on its proximity to the centre of town.

About 1,900 private homes across more than 25 developments will be completed over the next three to four years, and many will be shoebox flats, an increasingly popular choice for Singaporeans, investors and expatriates.

The challenge, as some agents note, is Geylang's seedy reputation.

Occupancy will be tested soon enough when many of the flats, in particular the shoebox units, hit the market.

These are homes ranging from less than 400 sq ft to 600 sq ft, and Geylang will be awash with them.

Centra Studios, a 51-unit condominium in Lorong 25 by Pinnacle Realty, has 40 one-bedroom apartments ranging from 344 sq ft to 527 sq ft, while the 39-unit Prime Residence in Lorong 22 by Springlife Development has 12 one-bedders ranging from 398 sq ft to 409 sq ft, and 20 one-plus-one units from 527 sq ft to 538 sq ft.

Property agents told The Straits Times they are confident that these tiny flats will remain popular because of the location, and they pointed to the high rents as evidence.

One housing agent said: 'Location-wise, going to the CBD (Central Business District) is five to seven minutes' drive. With the upcoming Paya Lebar commercial hub, this whole Geylang, Kallang area will be between the CBD and the hub.'

The rents, which are already 'the highest in the Aljunied area', will either stay at the same level or go even higher in the next few years.

The agent estimated that a one- or two-bedder shoebox unit in Geylang can be rented for about $2,500 to $3,000 a month, with 'rental returns going very high at 6 per cent to 7 per cent because of the location'.

He believes most tenants will be expatriates or childless couples.

Mr William Choo, a senior marketing consultant at Huttons Asia, said monthly rents are 'about $3,000 plus' for Geylang shoebox units.

While he tips an oversupply of such units - 'it's not possible to anticipate demand' - he added that there will eventually be tenants to occupy all the homes. He said: 'Once the pricing is right, someone will take up the place.'

A check with the Urban Redevelopment Authority's online system revealed that from last November to January this year, median rents for Lorongs 26, 28, 30 and 34 ranged from $2.90 per sq ft (psf) to $3.33 psf. For a 500 sq ft apartment, this translates to $1,450 to $1,665 rental per month.

It is not known if these rents were for shoebox units. Rents for such units tend to be significantly higher on a psf basis because of their compact sizes.

There are also pitfalls amid the optimism about demand, including concerns that units in this traditional red-light district would draw the wrong crowd.

Chesterton Suntec International research head Colin Tan said: 'I have had clients ask me why all the rooms (in Geylang units) have attached bathrooms. You could read more into that, in the sense that they may be used as serviced apartments, dormitories or budget hotels.'

He added that banks may hesitate to lend to investors out of concern over the area's seedy reputation. 'In official red-light areas, some banks won't want to lend their names to such projects, because they are considered high-risk.

'Second, you are not sure if the activities that occur in those units are legal or not... Another concern is the reputation of the bank; it may not want to be associated with such properties.'

Mr Tan Kok Keong, OrangeTee's head of research and consultancy, noted that the high rental yields may be due only to the lowered capital values of property in the area.

'If you look at the projects there, they are roughly sold for between $1,300 and $1,400 psf,' he said.

'So if you take other places equally distant from the city centre, like Pasir Panjang or even Toa Payoh, and if you compare prices, then obviously there's a 5 per cent to 10 per cent discount for Geylang.

'Part of the reason is the reputation.'

 

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Resale property market slow down

Published on Mar 24, 2012

-- PHOTO ILLUSTRATION: ISTOCKPHOTO
By Jessica Cheam, Housing Correspondent And Daryl Chin

BACKGROUND STORY

Increased activity in:

New mass-market condos
Commercial and industrial properties
Rental market
REASON FOR DECLINE

'There's a mismatch of expectations between buyers, who expect prices to come down and hence make low offers, and sellers who have no urgency to cut prices.'

ERA key executive officer Eugene Lim, on the dip in resale transactions for the private property market


PROPERTY firms and agents are tapping other avenues to remain in business now that Singapore's once-booming resale market - for HDB flats and private homes - has taken a big hit from the Government's cooling measures.

Fresh estimates from agency bosses show the number of resale deals in both markets for the first quarter dropping significantly compared to sales done last year.

But the slowdown in these markets has fuelled activity in others. Sales are soaring at launches of mass-market condominiums. Buyers snapped up a record 3,138 new private homes last month, including executive condo units.



To get a slice of the action, property agencies such as PropNex and ERA are increasingly looking for direct deals with property developers to market new launches, which also offer their agents an alternative revenue stream.

Agents are also counting on the buoyant commercial and industrial sector, which is not affected by the recent cooling measures. Many of them have diversified into selling such units to make up for lost income from the dampened interest in the residential sector.

Some have also gone into subletting HDB flats to those - many of them foreigners - who would rather rent than buy now.

The Government, in its latest round of cooling measures last December, slapped a 10 per cent additional buyer's stamp duty on all foreigners buying homes, effectively killing a significant source of demand in the private property market, especially for high-end homes.

The Housing Board has also offered a record number of more than 50,000 flats in two years, and raised the monthly household income ceiling to $10,000 to allow more to bid for new flats instead of turning to the resale market.

Data from property agencies OrangeTee and ERA Realty put the number of HDB resale deals at 4,000 to 4,500 for January to mid-March.

This is almost 30 per cent lower than the 6,228 deals in the first three months of last year, and 24 per cent less than the 5,921 in the fourth quarter of last year.

OrangeTee's research and consultancy head Tan Kok Keong said the large number of new flats and recent moves by the HDB to set aside a larger number of flats for second-time buyers have reduced demand in the HDB resale market.

As a result, the cash premium paid above a flat's valuation, known as COV or cash-over-valuation, has also dipped.

ERA and PropNex said, based on their transactions this month, that the median COV across all flat types and towns was about $25,000 - lower than the $35,000 in the fourth quarter of last year.

ERA key executive officer Eugene Lim said, however, that the drop in COV has lured some buyers back into the market, with more units being sold this month compared to January.

Over in the private property market, ERA has spotted a 30 per cent dip in resale transactions for the first three months to date, compared to the fourth quarter last year.

'There's a mismatch of expectations between buyers, who expect prices to come down and hence make low offers, and sellers who have no urgency to cut prices,' said Mr Lim.

PropNex chief executive Mohamed Ismail pointed out that buyers may also opt for new units because they need to fork out only the initial downpayment - 20 per cent of the purchase price, or higher if the buyer already has an existing home loan.

The buyer can take the next two to three years to shop around for a loan while the project is being completed. Buying a resale unit means having to take a hefty loan immediately.

Sales in the commercial and industrial sector have heated up. Mr Ku Swee Yong, chief executive of International Property Advisor, said such investments are attractive as interest rates are still low and these units do not come with the tight restrictions imposed on homes.

PropNex real estate agent Casey Ng, 46, who has been brokering home deals for the past 10 years, diversified into selling commercial and industrial units at the start of this year.

He took up a course on the commercial market recently, and in the past week alone sold two properties in an industrial park in Woodlands Avenue 12.

'It's a different ball game as buyers are not as emotional about a place as compared to residential units,' said Mr Ng.

Smaller agencies, which have also felt the brunt of the slowdown in the resale residential market, are changing course too.

Mr David Huan, key executive officer of Rainbow Cottage, said his 60 agents now focus on the HDB rental market, where the number of units approved for subletting per year shot up from about 15,000 in 2009 to 26,000 last year.

He attributes this to the relaxation of subletting rules in recent years and the reduction of the minimum occupancy period, meaning more flats will qualify to be rented out.

'There might not be enough for us to sustain in the resale market, so we have to concentrate on where the possible business avenues might be,' he added.


Estate agents switch focus to commercial, industrial sites
Prospect of higher profit margins in this sector as residential market slows

Published on Mar 24, 2012

BACKGROUND STORY

RIDING THE TREND

'The market trends have shifted, and agents are going to where the business is.'

Estate agent Jonathan Kong (standing in front of the East Coast shophouse that he recently sold) used to spend most of his time dealing with properties for home buyers. Now he deals increasingly with commercial and industrial spaces

-- ST PHOTO: AZIZ HUSSIN
By Daryl Chin
JUST a year ago, estate agent Jonathan Kong was spending most of his time dealing with properties for home buyers.

But now he is dealing increasingly with commercial and industrial spaces instead, and last month he sold a $2.88 million property in East Coast, his largest deal this year.

For the past nine years, the 42-year-old has concentrated mainly on the HDB resale market, while dabbling occasionally in private properties.

Now that both markets have slowed, Mr Kong has turned his focus to other sectors, with almost immediate results.

His biggest deal this year came this month when he handled the $2.88 million transaction for a freehold 1,800 sq ft shophouse at 32 Siglap Drive. He pocketed more than $10,000 in commission - not bad for a week's work.

'The market trends have shifted, and agents are going to where the business is,' he said.

While in the past, almost all his working hours were spent dealing with the HDB resale market, he now spends about 70 per cent of his time scouting for prospective commercial and industrial properties, although he admits the market is smaller.

The change in scope means Mr Kong has also had to learn new things. He recently attended a seminar on marketing such properties organised by his company, PropNex.

'Sellers and buyers are getting more savvy, and we need to be able to field their questions,' he said.

Savvy investors such as Mr Sameer Aswani are also concentrating on this sector, lured by higher profit margins.

The 36-year-old is director of SJ Land, SJ Properties and ASA Global, which own a mix of office, warehouse, residential and retail properties in areas such as Marina Bay, MacPherson and Tanjong Pagar. He has picked up seven units at Pantech Business Hub in Pandan Loop over the past two years.

He said such units can yield up to 8 per cent in annual returns, compared with non-landed residential units, which yield about 3 per cent to 4 per cent in returns. In his experience, returns for landed units are much lower, averaging about 1 per cent to 2 per cent.

'And if interest rates go up, you will see your profits vanish,' he said.

He added: 'If you rent a residential property, residents can just move out because of the abundance of supply, but for business-related rentals, especially those that have established a brand name or spent a considerable amount of money doing up their office space, they would be reluctant to move.'

 

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Private property prices fall marginally in Q1 2012

Published on Apr 2, 2012





Private residential property price fell slightly in the first quarter of 2012, flash estimates from the Urban Redevelopment Authority showed on Monday.

The private residential property price index declined marginally from 206.2 points in the fourth Quarter of 2011 to 206.0 points, the URA said.

The 0.1 per cent decrease is the first price decline since the second quarter of 2009, and follows the trend of stabilising prices over the past nine consecutive quarters, the URA said.

The index rose 0.2 per cent in the previous quarter

 

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Property agents: Cancelling sale? Pay up
Some are taking steps to get compensation if a seller changes his mind

Published on Apr 2, 2012
By Elizabeth Soh

BACKGROUND STORY

A HAPPIER ENDING

'I would prefer to sit down to talk things out so that the seller and I end on good terms. It is better for future business.'

Mr Chris Koh, a director of real estate agency Dennis Wee Group


SOME real estate agents want to be compensated if a customer backs out of an exclusive agreement to sell the property.

Situations could include owners asking agents to do detailed valuations of their homes and arrange for viewings before changing their minds, or refusing to sell when a buyer willing to pay more than the asking price is found.

According to the Council for Estate Agencies (CEA), which regulates the conduct of agents, it is not illegal to insert exit clauses regarding compensation if the seller is agreeable.

'Since the property market started booming last year, every month, at least two to three sellers have backed out on me because they only wanted to test the market and didn't want to sell,' said housing agent Eric Ng, 38.

Since June last year, he has adopted exit clauses, in which the owner has to pay him for expenses in marketing the home.

At least 10 other agents have done the same, on top of getting the seller to sign the CEA's estate agency agreement forms.

These forms give the agent exclusive rights to sell the home and claim the commission agreed beforehand between agent and seller.

The exit clauses usually state that if the seller should back out without a valid reason, he has to pay consultation fees of between $150 and $250, and reimburse the sums spent on advertising and valuation reports. This works out to an average of $500.

'I started putting in this clause about four months ago to deter home owners who are not serious. We have to let them know that, for us, there is also an opportunity cost for the hours we put in selling their homes,' said real estate agent Dayangku Rozarita, who runs her own agency.

A CEA spokesman told The Straits Times that inserting exit clauses into estate agency agreements does not flout any regulation under the Estate Agents Act, as the clauses do not undermine the purpose of the agreement.

'If the consumer and the agent wish to include mutually agreeable terms and conditions that are not printed in CEA's prescribed estate agency agreement, they should include these as additional terms in the space provided or on a separate pink sheet of paper,' she said.

While the agent is not breaking any rule in pushing for exit clauses, the practice has riled some customers.

One home seller, who backed out of such an agreement and wanted to be known only as Mrs Ong, felt her agent had been unprofessional in introducing the cancellation fees.

'I backed out after only one week - it is fair for me to pay for the valuation report, but why should I pay $200 just because she did some paperwork for me?'

'She met me to discuss the house only once,' said Mrs Ong, who owns an executive flat in Simei. She dropped the agent who, she felt, was not trying hard enough to sell her home.

Property analysts said such a clause could hurt the agent's standing.

'It sends a wrong and negative signal to sellers - that you just have to pay up to back out. I would prefer to sit down to talk things out, so that the seller and I end on good terms. It is better for future business,' said Mr Chris Koh, a director of real estate agency Dennis Wee Group.

 

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Shoebox flats rake in higher rental yields
But experts warn rosy times are not expected to last as increasing supply hits market

Published on Apr 20, 2012

The interior of a 388 sq ft unit at Soho 188 in Race Course Road. Data from the Singapore Real Estate Exchange found gross yields for shoebox units were 5.4 per cent in the first three months of the year. This is well above the 2.5 to 3.5 per cent yields that residential properties typically return to investors. But experts expect the yield gap to narrow. -- ST PHOTO: MUGILAN RAJASEGERAN
By Esther Teo, Property Reporter


TINY 'shoebox' homes here are raking in much higher rental yields for investors than other apartment types but experts warn the good times might not last.

Data from the Singapore Real Estate Exchange (SRX) found that gross yields for shoebox apartments were 5.4 per cent in the first three months of the year.

This is well above the 2.5 to 3.5 per cent yields that residential properties typically return to investors.

The SRX shoebox yield was based on the average rent of $6.51 per sq ft (psf) per month for the 197 leasing deals inked in the period. The average unit price of the 123 shoebox homes sold then was $1,450 psf.

Typically, rental yield is calculated by dividing the rental sum received over 12 months into the cost of the unit. But SRX calculated the yield by dividing the average psf rent over 12 months by the average psf price of units sold in the first quarter.

Shoebox units are typically 500 sq ft or smaller and can be found in projects like Parc Imperial, Thomson V One and Prestige Heights.

A total of 42 shoebox units at Prestige Heights have been rented out since the start of the year, SRX's data showed. They enjoyed average rents of $6.89 psf per month with yields at 4.9 per cent.

Just last month, a 409 sq ft unit at the Balestier Road project was leased for $2,850 while another 420 sq ft apartment secured a tenant at $2,700 a month in February.

There were 16 leases signed for shoebox units at Heritage East in East Coast Road, with average rents of $6.30 psf and yields of about 5.1 per cent.

SRX collates and displays transactions by the major property agencies, accounting for more than 80 per cent of resale transactions in the market.

Experts say investors have flocked to the shoebox segment in droves, attracted by the affordable prices - typically less than $1 million. In fact, about one in seven buyers picked up new homes 500 sq ft and smaller last year, according to R'ST Research.

And the climbing yields seem to be the main driver pulling investors in.

Yields of these tiny apartments have climbed from 4.4 per cent in the first quarter of 2010 to 5.4 per cent in the first quarter this year.

This is more than double the rental yield of 2.4 per cent in the luxury segment, according to analysis by Citi Investment Research. It also dwarfs the 3.6 per cent yield in the mid-end segment and 4.1 per cent yield for mass market homes.

But these high yields are not expected to last as an increasing supply of completed shoebox homes enters the market.

The number of these small homes is expected to double from about 4,100 units later this year to 8,200 units by the end of 2015.

Experts note that many of the completed shoebox apartments are in good locations such as in the city fringe area and River Valley area and are thus commanding decent rentals now.

Many of the upcoming units, however, are in suburban areas, which might not be able to support similar rent levels.

Mr Tan Kok Keong, OrangeTee's research and consultancy head, said that while a dip in prices of shoebox flats could cause yields to rise temporarily, yields are likely to trend towards the norm of 2.5 to 3.5 per cent in the long run as supply picks up.

He expects the yield gap between shoebox units and typical residential yields to narrow to between 0.5 and 1 per cent from 2014 onwards.

 

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Home sales to foreigners dive 78 per cent

Published on Apr 20, 2012
By Esther Teo, Property Reporter


HOME purchases by foreigners plummeted 78 per cent in the first quarter as the effects of the 10 per cent additional buyer's stamp duty hit hard.

Most foreigners have retreated hastily from the market, buying just 293 homes in the first three months of the year, an analysis of caveats by Dennis Wee Group (DWG) found.

This is 78 per cent down from the 1,358 homes bought by foreigners in the fourth quarter.

Permanent residents (PRs) are not included as foreigners in these figures.

Among PRs, home purchases dipped just 7.5 per cent to 790 units, while Singaporean purchases fell 12 per cent.

Tough cooling measures unveiled on Dec 8 slapped a 10 per cent additional buyer's stamp duty on all home purchases by foreigners. But PRs had to fork out only an extra 3 per cent on their second and subsequent home purchases.

Experts say the policy shift has caused foreigners to pull out of the market in a knee-jerk reaction as they reevaluate their options. They say some foreigners might still see long-term potential in Singapore's property market and are attracted by rebates offered by some developers to cushion the impact of the tax, but others are simply watching and waiting.

Mr Lee Sze Teck, senior manager of research and consultancy at DWG, said he expects the number of foreigner purchases to hover at these subdued levels for the next one or two quarters.

'Whether the foreigner market picks up again depends on prices and whether market conditions are favourable in the later part of the year. If things pick up, then they will be back because Singapore is one of the more stable countries in the region,' he added.

Jones Lang LaSalle's South-east Asia research head Chua Yang Liang said uncertainty in the global economy might also have taken a toll.

The new rules might have prompted more foreigners to rent instead of buy, DWG added. This could have led to median rents of private homes inching up 2 per cent in the first quarter, Mr Lee said.

 

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Katong Regency condo 70% sold

Published on Apr 20, 2012


STEEP prices at a freehold condominium in the east did not seem to faze home buyers, who snapped up 70per cent of units at Katong Regency by the end of the first day of its official launch yesterday.

UOL, the developer of the mixed-use project, said last night that at least 170 options have been issued to buyers. Sources said the bigger units - two-bedders to penthouses - are fully sold.

The freehold project at Paya Lebar has 244 residential units, of which more than half are one-bedroom and one-plus-study units. It costs an average of $1,500 to $1,600 per sq ft (psf), a price property consultants earlier said was 'on the high side'.

Prices for a 550 sq ft one-bedroom unit start at about $950,000 and go up to over $2.5 million for a 1,970 sq ft three-bedroom penthouse. The residential units sit atop One KM, a new 'edutainment' mall; the entire development will be completed by 2014.

At the showflat yesterday, Mr Raymond Chai, 49, held back on making a purchase as he felt the price was steep. But a housewife who wanted to be known only as Cheryl, 37, called the prices 'reasonable'.

She is looking for a home for her family of four. 'The location is good and it's freehold. The price is reasonable, compared to projects like Sky Habitat.'

AMANDA TAN

 

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Rise in private, HDB resale transactions
Second quarter sees private deals up 60 per cent; HDB, 19 per cent

Published on Jul 28, 2012

High-rise condominiums in the Scotts Road and Cairnhill area. One expert said there were bargains to be had now in the core central area, rather than buying expensive, new, top-end apartments in suburban areas. -- ST PHOTO: ALPHONSUS CHERN
By DARYL CHIN


MORE buyers have snapped up resale Housing Board flats and condo units in the second quarter even as prices have reached record highs.

Experts said this marks a reversal in the resale market that had seen a downward trend in transaction volume in previous quarters.

They added that reasons ranged from pent-up demand, to lower cash premiums asked by sellers of HDB flats.

On the private-property front, the 3,487 resale transactions in the second quarter, up from 2,206 in the first, represented a rise of close to 60per cent.

HDB resale deals rose 19 per cent to 7,011 from 5,892.

PropNex chief executive Mohamed Ismail said the wait- and-see attitude adopted by buyers due to the Government's cooling measures - including the additional buyers stamp duty - seems to have dissipated.

'It appears that the strength of property demand has outweighed concerns over the slowing economy, the worrying global economic situation and the dampening effect of multiple rounds of government measures,' he said.

ERA Realty key executive officer Eugene Lim noted that buyers who are not going for expensive, new, top-end condo units in the suburban areas are instead turning to the core central area and 'finding good bargains'.

Citing an example, he said an 800sqft apartment at the 99-year-leasehold Watertown in Punggol recently sold for $1.1 million. By comparison, a similar-sized apartment at the freehold Levelz in Farrer Road went for about $1.2 million.

There were 701 transactions in the city centre in the second quarter, compared to 376 in the first.

Private non-landed home prices in the city centre and city fringe inched up 0.6 per cent and 0.4 per cent respectively, reversing a dip of 0.6 per cent in both segments in the previous quarter.

In suburban areas, it rose 0.5 per cent, down from a 1.1 per cent gain.

Overall, private homes increased by 0.4 per cent, compared to a decrease of 0.1 per cent in the previous quarter.

HDB resale flat prices inched up 1.3 per cent - a quicker pace than the 0.6 per cent in the first quarter. On the greater number of HDB resale deals, Mr Lee Sze Teck of Dennis Wee Group linked this to the steep plunge in COVs this year.

COVs are cash premiums paid above a flat's valuation. Based on data from various agencies, the estimated overall COV median is $26,000 so far this year, compared to about $34,000 in the fourth quarter of last year.

'Buyers could have also returned to the resale market after failing to land their ideal home in the new flat launches this year,' he added. The HDB has said it is on track to offer 25,000 new flats this year.

Mr Lim said those opting to buy resale flats also do not need to wait three years for new flats to be built. 'And if they are second-timers, it might be more worth their while to pay the COV than the resale levy,' he added.

The resale levy that a buyer going for his second subsidised flat must pay ranges from $15,000 to $50,000.

It was this which made 39-year-old researcher Damien Seng go for a resale unit. 'Moving immediately to a new place is more practical than trying my luck with new flat launches,' he said.

Despite the flurry of resale activity, experts are predicting that growth will be gradual for both the HDB and private segments, in part due to the big supply of new homes in the pipeline.

 

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Property agent fined $15,000 - highest sum so far

http://www.cea.gov.sg/cea/content/binary/pdfFiles/PR-3rdDC-AnthonySu(Jul2012).pdf
Published on Jul 28, 2012

A PROPERTY agent has been fined $15,000 for acting against the interests of consumers, the highest penalty handed out so far by the Council for Estate Agencies (CEA).

Anthony Su, 34, has also been suspended for seven months. He is the third agent to be charged by the CEA's disciplinary committee this month.

He was convicted of three charges against him for a transaction that occurred last year.

Su had lied to his clients while selling their property that he was co-broking the transaction with a fictitious agent named Adeline. Based on his word, the clients increased his commission.

Throughout the deal, he also kept information from them that another potential buyer had turned up.

And he took a cut from another agent, who was selling the property owned by the eventual buyers.

In a statement yesterday, the CEA said: 'His clients were therefore not aware that Su had such an interest in the particular buyers successfully concluding the transaction, nor aware of the true amount that Su was going to earn by acting for them in the sale of their property.'

The CEA acted on a complaint against him.

His services were terminated by ERA Realty earlier this week.

Property agents who breach the agency's Code of Ethics and Professional Client Care could have their registrations suspended or revoked, and pay a maximum fine of $75,000.

 

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Industrial property prices continue on upward path
8.4% rise in Q2 driven by economic expansion, continued investor interest
Published on Jul 28, 2012

By Esther Teo, Property Reporter


PRICES in the sizzling industrial market continued to defy gravity in the second quarter, shooting up 8.4 per cent.

The hefty increase in the three months to June 30 came on the back of a sharp 7.3 per cent surge in the first three months of the year, while other sectors slowed.

Prices overall have rocketed 48 per cent since the start of last year, driven by continued investor interest and economic expansion.

Such robust numbers are raising concerns that the once-unglamourous sector is getting a bit too frothy, while smaller companies are complaining about rents going up on the back of higher valuations.

Industrial rents were up 2.8 per cent in the second quarter, adding to the 1.8 per cent increase in the previous three months, according to the Urban Redevelopment Authority yesterday.

It was a completely different picture on the commercial front, with prices and rents mostly flat or dipping slightly.

Office rents fell 0.5 per cent, while sale prices eased by 0.9 per cent. However, prices of shop spaces rose 0.7 per cent, although rents fell 0.3 per cent.

The hot spot these days is clearly in the industrial sector, with some eye-watering prices being recorded. Some units at freehold project AZ@Paya Lebar, for example, have been going for more than $1,000 per sq ft (psf).

Savills Singapore research head Alan Cheong expects industrial price gains to 'remain at elevated levels' for the rest of the year.

'Prices are pushing northwards as new high-tech firms such as game developers and social media companies enter the fray,' he noted.

'Occupiers in industrial estates like Defu, which is being redeveloped, are also beginning their move out to alternative locations.

'There is extreme fluidity in the market and, in the process, rentals will similarly be bootstrapped up.'

Colliers International research and advisory consultant Tay Huey Ying said low interest rates and cooling measures in the residential sector will continue to favour the strata-titled industrial market.

She expects prices and rents to continue increasing for the rest of the year, though at a slower pace.

Small and medium-sized enterprises do not need reminding of that.

Mr Thomas Pek, managing director of Tai Hua Food Industries, said the rent for his industrial facility at Jalan Besut went up 5.5 per cent in April, which came on top of other increases over the past few years.

'If rents keep increasing, we might have to move a portion of our business to Malaysia eventually,' he added.

'It's not something we want to do, but no one wants to make a loss. The high costs make it hard for us to be competitive.'

The trend cannot go on, according to one industrial developer, who said quarterly price gains of 7 per cent to 8 per cent are 'unsustainable'.

The developer, who declined to be named, added that the freehold industrial segment, in particular, might be in a bubble, given many projects like M38 at Jalan Pemimpin are setting benchmark prices and crossing the $1,000 psf mark.

There have been some government attempts to rein in prices.

The latest move came last month, when lease terms for industrial sites under the government land sales programme to be sold from now to December were capped at 30 years.

More sites of smaller size and shorter tenure will continue to be released to meet the demand of industrialists who might prefer to build their own facilities rather than rent.

A bumper supply of industrial sites has also been pushed out.

 

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Landed properties still in hot demand
Their prices have outperformed those of private flats since 2010

Over the last seven years, landed home prices have doubled, says one expert, who adds that they are perceived as better investment given their limited supply in land-scarce Singapore. -- ST PHOTO: AZIZ HUSSIN

By AMANDA TAN


LANDED home prices moved up a notch in the second quarter as demand for the pricey properties stayed buoyant.

Values increased 0.4 per cent from the previous three months, according to the Urban Redevelopment Authority (URA) index out yesterday.

Terraced homes showed the largest increase at 1.2 per cent, followed by semi-detached at 0.6 per cent, while detached homes declined by 0.4 per cent.

Property consultants noted that landed home prices have outperformed those of private flats since the third quarter of 2010.

Over the last seven years, prices of such homes have doubled, said Knight Frank research head Png Poh Soon. They are perceived as better investment 'given the limited supply of landed properties in land-scarce Singapore with a growing population, rising affluence of local families and influx of new wealthy citizens'.

One example of the robust sector can be found at Haus@Seran- goon Garden where buyers have snapped up 39 out of 50 landed houses released in just two weeks.

The two-storey homes - with an attic and basement - developed by City Developments and Hong Realty do not come cheap. A 1,615 sq ft intermediate terraced unit goes for at least $2.4 million while at least $2.8 million is needed for a 2,284 sq ft corner home.

Mr Png noted that landed prices have 'risen substantially' since the second quarter of 2009, rising nearly 80 per cent by the second quarter this year.

Terraced homes had the highest price increase of 84 per cent over that three-year period.

Detached house prices were up 83 per cent while semi-detached home prices rose 71 per cent.

Terraced homes in the west - favoured for its lower absolute prices - have risen 97 per cent in the past three years while those in the east and north-east were up 89 per cent, Mr Png said.

'Demand for terraced homes has increased along with rising mass affluence of local buyers, who upgrade their homes for larger living spaces... and to capitalise on the current low favourable interest rates,' said Mr Png.

Savills Singapore data reveals a similar rosy picture. Research head Alan Cheong said that over the last decade, landed prices have grown at an average of 7 per cent a year, exceeding the increases for apartments and condos.

R'ST Research director Ong Kah Seng pointed to a 20 per cent dip in prices between July 2008 and June 2009 but they have picked up at least 70 per cent since. He cited a 1,701 sq ft terraced house in Frankel Estate that was sold for $2.9 million in March, well up on the $1.55 million it went for last year.

Consultants said demand for landed properties is expected to stay resilient.

'The outlook is excellent... As more private properties are derived from government land sales, the limited pool of freehold landed properties find their share of the total housing stock shrink over time,' Mr Cheong said. It 'pays for upgraders to aspire to move into this type of housing' as the relatively quick capital gains 'will make it a superior hedge against not only inflation but also against social-class stagnation'.

But Mr Ong said well-heeled buyers may look to non-landed homes in prime locations for their better rental yields and demand.

Property investor Magdalene Lee, 54, bought a house at Haus@Serangoon Garden for about $2.4 million on the first day of its launch. 'I thought the price was reasonable, and within my budget... It works out to less than $700 per sq ft, cheaper than some condos asking for $1,000 psf,' she said. 'It'll also be easy to rent out because it's near international schools, in a new neighbourhood but established residential area.'

 

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Developers lowering launch prices: URA data
Fall due to less desirable locations and stiff competition, say experts

Published on Jul 28, 2012

An artist's impression of the Parc Centros condominium in Punggol. Priced at an average of $950 psf, the development saw healthy sales. -- PHOTO: WEE HUR
By Esther Teo, Property Reporter



DEVELOPERS appear to be lowering the prices of their launches, with fresh figures showing prices for uncompleted homes falling slightly in the second quarter.

Data from the Urban Redevelopment Authority showed that prices of uncompleted non-landed homes dipped 0.9 per cent in the three months to June - the first fall since mid-2009.

Prices for completed private homes, however, climbed 2.3 per cent.

Experts say the fall could be explained by the fact that some launches in the period were in less desirable locations, including those further from MRT stations and amenities, thus fetching lower prices.

Another factor they cited is that some of the new launches were in estates such as Punggol and Pasir Ris, where many projects had already been pushed out. This led to stiff competition and more conservative pricing.

Mr Png Poh Soon, head of research at Knight Frank Singapore, said developers are not as aggressive as before in their pricing.

They are more willing to launch new projects at lower prices, and then gradually move prices up if buyer response is good, rather than launch at high prices, which might result in them getting stuck with unsold units.

'Uncompleted home prices might continue to ease marginally, but it is unlikely to fall significantly unless there are some negative developments in the macroeconomy that bring about concern about a recession,' said Mr Png.

Colliers International research and advisory consultant Tay Huey Ying pointed out that prices for homes in the city centre fell 0.6 per cent. This is at a steeper rate than the 0.2 per cent slide in the first quarter.

'This could be tell-tale signs of deepening fault lines in the high-end market, where some developers might be beginning to succumb to the pressure of persistent weak demand by reducing price in order to move sales,' she said.

Mr Png said that as high-end sales volumes have been slow, developers are often willing to negotiate the selling price with genuine buyers.

Experts add that mass market home buyers are price sensitive, and projects priced less than $1,000 per sq ft (psf) have been seeing higher take-up rates.

For instance, recent mass market launches such as Wee Hur Holdings' 618-unit Parc Centros in Punggol, priced at an average of $950 psf, enjoyed healthy sales.

Koh Brothers' 486-unit Parc Olympia on Flora Drive in the Upper Changi Road vicinity, priced at an average of $820 psf at its launch earlier this month, also saw at least 170 units snapped up.

However, potential home buyer J.J. Lim, who is in her 40s and has been looking for a home in the city fringe area for the past year, said she has not seen prices fall as yet.

'A 0.9 per cent fall is not discernible. Homes are still expensive. Maybe if it is a 9 per cent drop, I will be able to tell... But I am quite optimistic that prices will come down eventually,' she said.

 

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Real estate industry is dynamic, changes have only just started: Khaw
Posted: 26 November 2012 1244 hrs


SINGAPORE: National Development Minister Khaw Boon Wan said the transformation of the real estate industry has only just begun.

He said what used to be regarded as a "cowboy" industry is now characterised by a more systematic and professional process of proper registration and licensing of property agents by the Council of Estate Agencies (CEA).

He added that of the more than 100,000 property transactions each year, complaints made up one per cent of the cases.

Mr Khaw was commenting on the Public Perception Survey released by the CEA in a blog post.

He said the findings showed that the regulatory body, that just turned two recently, hasn't fared too badly.

Mr Khaw said the real estate industry is a dynamic one and that agents will need to embrace continuous learning to stay relevant and bring value to their clients.


80% of customers satisfied with their property agents: survey
Posted: 26 November 2012 1151 hrs



SINGAPORE: The first Public Perception Survey by the Council for Estate Agencies (CEA) has found that most consumers are satisfied with their property agents.

Eight out of 10 said they were satisfied with the conduct and services provided.

Seven out of 10 planned to recommend their agents to others.

Top of the list was service excellence with agents being contactable, responsive to queries and courteous at all times.

Bottom of the list was knowledge and expertise about the real estate industry.

Consumers felt that the agents should improve their knowledge so that they can advise customers on property transactions.

These include financial matters and accurate and up-to-date information related to the property.

Most consumers, more than 70 per cent, were also aware of key industry practices and regulations.

The awareness level among potential consumers came in lower, averaging about 60 per cent.

The survey also looked at feedback from the industry.

Most were supportive of the initiatives implemented by CEA to enhance professionalism in the sector.

Eighty per cent indicated that the regulatory measures and enforcement of minimum eligibility criteria for agents has helped raise the professionalism of the industry.

More than 90 per cent of agents found that the training that they received in the last 12 months, was effective in raising their professionalism.

The majority of them also indicated that they would require additional training on government rules and regulations and market information.

The survey was conducted between March and July this year.

Face-to-face interviews were conducted with more than 2,200 consumers and potential consumers.

An online survey was conducted with more than 1,700 property agents and key executive officers.

The findings will set the baseline for CEA to measure the progress of the industry in delivering professional service to consumers.