Singapore, 17 Oct 2016 – The Urban Redevelopment Authority (URA) released its flash estimate of its private property index for Q3 2016 earlier this month. Many were surprised at the reading, which showed a 1.5% price decrease. This was the steepest decline since 2012.Perhaps as a consequence of the continued price falls, buyers have been entering the market. 4,352 caveats were lodged in the months of July to September. Although this is not the final figure for Q3, it is already higher than the 4,159 units transacted in the corresponding period a year ago. The positive buying sentiment appears to have spilled over to the last quarter of the year. The Alps Residences and Forest Woods, launched within a week of each other, both recorded impressive sales. Buyers bought 280 units at The Alps Residences and 337 units at Forest Woods during their launches. These figures translate into a 45% and 65% take up rate respectively.
Empirically, we observe that there are two distinct groups of buyers.
The first group consists of property investors. These buyers are primarily interested in buying a unit, then letting it out for rental income. Using the sale of small units (mainly one and two bedders) as a proxy for investment demand, it can be seen that sales at these two projects were very much investment driven. Small units accounted for 86% of the sales at The Alps Residences, and all one bedroom units have been sold. Similarly, at Forest Woods, 66% of all units sold were small units.
This reflects investor confidence in the local property market. Although the private residential rental market is currently feeling the effects of an oversupply, it is unlikely that this situation will persist for a long time, as the government has been scaling back on the provision of land sites for private housing. The private residential rental market is therefore expected to improve in the next few years. Thus, new project launches have been rather well received by investors because there is a construction period of about three years. As such, owners will only have to start looking for tenants when the building is almost completed. By then, the rental situation could have improved and it might be easier to find a tenant willing to pay a higher rent.
Also, project specific factors come into play too. In particular, these two developments benefit from their location. The Alps Residences is located in Tampines, which is Singapore’s first regional centre and a major employment node. Other major commercial centres near it include Changi Business Park and Changi Airport. Thus, rental demand is expected to be high. Forest Woods, although lacking a regional centre address, makes up for it with its superb transport connectivity. It is only a five minute walk away from Serangoon Mass Rapid Transit (MRT) station, which functions as an interchange between the North-East and Circle lines. This makes commuting a breeze, which would appeal to tenants. Hence these unique attributes contribute to strong investment activity at these two projects.
The other significant group of buyers is made up of owner occupiers, either upgraders from public housing or affluent young couples looking for their first home. To this group of people, because they are buying for their own stay, in order for them to commit to a purchase, there has to be a combination of location, price and product. To this end, The Alps Residences and Forest Woods have delivered.
The Alps Residences, being in Tampines, is proximate to many amenities. Families will be attracted to the three malls in Tampines, which house retailers such as Isetan, BHG, H&M, Muji, Topman and Uniqlo. Also, primary to tertiary educational institutions are located in Tampines, making schooling an ease for residents at The Alps Residences. Combined with a relatively affordable price point, it is not difficult to see why many have bought units for their own stay.
Forest Woods, despite being the pricier of the two, found favour with buyers for its attractive location. It managed to strike a balance between price and location, for which buyers felt was a good deal for a development with a city fringe location and a short walk away from a MRT interchange.
As seen from the numerous successful project launches this year, we see more buyers returning to the market. With buyer sentiment improving, we fully expect this trend to continue. Developers, mindful of current market conditions, will build on success stories when launching their projects. Buyers can then capitalize on this window of opportunity to pick up a great selection of value buys.
By Eugene Lim, Key Executive Officer and Seah Yao Hui, Assistant Manager, Research
Singapore, 12 Oct 2016 – For young homebuyers, the idea of purchasing your own place can be very exhilarating. However, before diving straight into house hunting, here are some tips to consider:• Do your family planning
Knowing how many members there will be in your family will make it much easier to estimate the amount of living space required. Plan for at least the next five to 10 years. Generally for young couples with one child, a three room HDB flat (or a two bedroom condominium unit) should suffice.
• Plan your finances
Draw up a rough budget to know how much you can afford to set aside for your home. This will prevent you from overstretching your finances. Your housing budget is basically a combination of bank loan (that you are eligible for) + available CPF + Cash. As lending rules are stricter now, always check with the bank what amount of loan you are eligible for first. Also, if you are planning to have children, do set aside more capital as a buffer in case unexpected situations arise.
• When viewing houses, always visit it more than once
For buyers who are looking at existing properties, this is so you get a feel of how the unit is like at different times of the day. For buyers of uncompleted properties, while there is no actual unit to view, visit the site of the development instead. Do try to spread your visits between weekdays and weekends, both in the day and at night.
• Do your homework
Prior to committing to a purchase, always refer to latest transaction prices on the Housing and Development Board and Urban Redevelopment Authority’s website for public housing and private housing respectively. This will give you a rough gauge of prices in the market today.
When choosing a type of property to buy, it all boils down to individual preference. Some prefer newly completed projects as it offers immediate occupation and less renovation work is required. Others may select an older unit because of the spaciousness. Ultimately, it is important that you buy something that best suits your needs.
By Eugene Lim, Key Executive Officer and Seah Yao Hui, Assistant Manager, Research
Singapore, 6 Oct 2016 – Executive condominiums (ECs) were originally conceived to cater to the aspirations and needs of the so called “sandwiched” class – those whose household income exceed the ceiling for public housing, but not yet able to comfortably afford a private condominium.Currently, the monthly household income ceiling to qualify for an EC purchase is set at $14,000; whilst it is $12,000 for those purchasing the Housing and Development Board’s (HDB) Build-to-Order (BTO) flats. Over the years, 60 ECs have been successfully launched. To date, 42 of them have been completed. Currently, 18 projects still have units available for sale on the market.
In recent years, the government has ramped up the housing supply. The HDB has released around 20,000 flats annually for sale since 2011. This year, the figure is expected to be slightly lower, at around 18,000 new flats. Similarly, private condominiums have also been in abundant supply. As of Q2 2016, there are 23,282 unsold private residential units coming from projects that have obtained planning approvals.
With a monthly household income of up to $14,000, purchasing a mass market private condominium is not out of the question; whilst those in the lower income bracket can easily take the HDB BTO route. Thus, amid the plentiful choices that a buyer has, are ECs still a relevant scheme in today’s market?
Good and steady demand for ECs
As an asset class targeted at the “sandwiched” class, ECs come with the qualifying buyer eligibility criteria that are similar to public housing and also resale restrictions that are partially lifted 5 years after the project’s completion (can resell only to Singaporeans or Singapore Permanent Resident (SPR) buyers). These resale restrictions are fully lifted 10 years after the project’s completion.
Besides satisfying the monthly household income criterion of not exceeding $14,000, applicants must purchase an EC either by forming a family nucleus or with other singles if they are at least 35 years old. Only Singaporean couples and Singaporean / SPR couples may purchase an EC unit. Also, buyers have to fulfill a mandatory five-year minimum occupation period (MOP) before they are allowed to rent out the whole unit or sell off the apartment. Despite these restrictions, ECs come with a full suite of condominium facilities and are physically indistinguishable from private condominiums in terms of design and physical outlook.
In the recently concluded land tender for the EC site at Anchorvale Lane, located next to the Punggol Reservoir and near the Sengkang Riverside Park, there were a total of 16 bids put in by developers. The plot, which can yield about 630 units, attracted the highest number of bidders for an EC site since the Yuan Ching Road site (now Lake Life EC) in July 2013. Land hungry developers are optimistic of the outlook for ECs and expect the market to be able to soak up most of the remaining available units by the time they are ready to launch the project in late 2017 or early 2018.
So far in 2016, we have seen good and steady demand for ECs. According to data from the Urban Redevelopment Authority (URA), for the first seven months of 2016, 2,697 EC units were sold by developers. This has already surpassed the total 2,550 units sold by developers for the whole of 2015.
In addition, some of the best-selling projects this year have been ECs. Wandervale and Treasure Crest were two of the most successful EC launches since 2014. Wandervale, the first EC to launch in 2016, sold some 50 per cent or its 534 units on the opening weekend; whilst in July, Treasure Crest sold some 72 percent of its 504 units on the first weekend. Existing EC projects have also been seeing sustained interest from buyers, with developments such as Bellewaters, The Vales and the Terrace seeing a steady stream of buyers even though they are not new launches.
Evidently, despite competition from mass market condominiums and public housing, ECs are still proving to be a practical and popular choice amongst buyers. Whilst the pace of sales for some EC projects are faster than others, it is important to note that even for the EC projects that do not do as well initially, they do see a steady and sustained pace of sales over the development period; such that by the time the Temporary Occupation Permit (TOP) for the EC project is attained, the majority of the units would have found buyers.
ECs buyers are rational and practical
Typical EC buyers are either first-timers buying their matrimonial home; or families with young or teenage children that are upgrading from HDB flats. They are buying for owner-occupation and not with the immediate intention to rent it out; as this option is only open to them after the first 5 years of occupation. As such, the buyers behave very rationally and rarely do they buy on impulse. Whilst some jostle with other buyers for choice units during the initial launch, others commit on their purchase only after they have made their rounds and have thoroughly researched the market.
For most EC buyers, the main appeal of ECs is the condominium address and lifestyle but at a cheaper price. ECs are typically priced $750 to $850 per square foot whilst mass market condominiums within the vicinity are likely to be $1,000 to $1,100 per square foot onwards. This puts the EC buyer on the immediate price advantage as he is essentially buying a product that has a similar look and feel of a mass market condominium, but at a cheaper price. After the minimum occupation period of 5 years, the EC unit can be resold on the secondary market to Singaporean or SPR buyers whilst 10 years after completion, the EC unit can also be sold to foreign purchasers. So, depending on the state of the market at the relevant point in time, the EC buyer already enjoy a larger headroom for capital gain as compared to someone who had bought a mass market condominium unit at around the same time as the EC buyer.
Further, for eligible first-time EC buyers, they have the added advantage of using the CPF Housing Grant of $30,000 to help pay for the purchase price. There are no housing grants available for private condominiums.
The second reason is a practical one. EC buyers are owner-occupiers and they are purchasing the unit to start a family or to house a family.
Majority of EC projects are designed to comprise mainly 3 and 4-bedroom units; with the exception of some that may have a small selection of 1 and 2-bedroom units. Comparatively, a mass market condominium may have more numbers of smaller units than larger units as they also target the investor buyers that prefer a lower price quantum.
If so, the living environment becomes quite different when you compare an EC with a mass market condominium. In an EC environment, you are likely to find the majority of the residents as local families (around the same age group) with children; whilst in a private condominium, it is likely to be quite diverse.
The third reason is the living space; and size matters when you have to house a family. Treasure Crest EC’s 3-bedroom units are sized 958 to 1,249 square feet whilst its 4-bedroom units are 1,345 square feet. Comparatively, private condominium’s 3-bedroom units may be about 880 to 1,100 square feet and their 4-bedrooms may not exceed 1,300 square feet.
A matter of choice
A buyer who is eligible to buy an EC could also choose to stay in public housing, which is more affordable. Alternatively, private housing is also a viable option, albeit a more expensive one which might require taking up more debt for a longer period. Whatever the choice, there is no “correct” housing type to buy. It all depends on the buyer’s preference, financial ability and household needs.
Ultimately, by introducing ECs into the market, the government is providing buyers with another housing option to choose from. With more variety in the market, buyers then can choose the type of housing that best suits their needs, rather than be limited to only public or private housing.
Herein lies the relevance of ECs.
By Eugene Lim, Key Executive Officer and Seah Yao Hui, Assistant Manager, Research
Singapore, 23 Sep 2016 – The Housing and Development Board (HDB) recently announced its masterplan for a new housing town, Tengah. This will be the 24th HDB town in Singapore. Presently, Tengah is still a forested area with barely any semblance to a residential estate. However, HDB has extensive plans for the area.Tengah, roughly the size of Bishan, is expected to be home to 42,000 homes, with a mix of both private and public housing. It will be the only HDB town to incorporate smart technologies on a town wide basis from the planning stage. In the planning stage, HDB will utilise the Urban Microclimate Multi-physics Integrated Simulation (UM-MIST) to model real life conditions in Tengah town. Planners will be able to configure building layouts and orientations to optimise wind flow. With this system, greenery can also be introduced in areas with higher ambient heat so as to create a cooler living environment.
On a more micro level, smart lighting in common areas, regenerative lifts, eco pedestals and the Pneumatic Waste Conveyance System (PWCS) are smart technologies which help to create a greener living environment. The PWCS essentially automates the entire waste collection and management process, thereby removing the need for human labour. The PCWS will also monitor residents’ waste disposal patterns to optimise resources for waste collection.
Keeping to its theme of Forest Town, key developments in Tengah include a car free town centre, a forest corridor and a Central Park. The town centre is designed to be pedestrian friendly, with vehicles going underneath it. The forest corridor will be a habitat to many species of trees and residents will be able to enjoy it via its hiking trails. The Central Park will be the centerpiece of the greenery in Tengah, offering residents a spot to relax and carry out various recreational activities.
Transport infrastructure will also be built up, with the town being served by a Mass Rapid Transit (MRT) station on the Jurong Region Line, which connects Tengah with the major commercial clusters at Jurong Gateway and Boon Lay. Buses will also ply Tengah, with most bus stops located within 300 metres of homes.
With its first batch of HDB flats being targeted for launch in 2018, it remains to be seen whether Tengah will be popular with buyers, as many may currently consider it too far flung. However, we can look to past towns planned and built by HDB to get a sense of things to come.
In particular, we make a comparison to Punggol, the previous new town planned by HDB. Similar to Tengah, Punggol was largely undeveloped and at that time, thought to be too distant from the city centre. Detailed plans for Punggol were only announced during the National Day Rally in 2007 by Prime Minister Lee Hsien Loong. Since then, Punggol has become a bustling town, with more than 35,000 HDB flats completed and another 14,000 under construction. Its major mall, Waterway Point, opened earlier this year and is home to retailers such as H&M, Uniqlo and Laneige. Travelling within Punggol is easy with the Light Rail Transit (LRT) system and bus services. Inter-town travel is also convenient, as Punggol is a station on the North East Line, which connects it to other places in Singapore, such as Dhoby Ghaut and Harbourfront.
As a result of all these developments, properties in Punggol have become increasingly more sought after. In the most recent sales launch of new HDB flats in Punggol, there were 6,254 applicants vying for 2,715 units. This was despite the units not being near Punggol MRT station and the town centre. Median resale prices of flats in Punggol have also increased from $252,500 (4-room) and $307,000 (5-room) in Q2 2007 to $445,000 (4-room) and $450,000 (5-room) in Q2 2016. In particular, prices of 4-room flats in Punggol are pricier than those in other popular estates such as Jurong East and West, Tampines, Serangoon and Bedok, reflecting the popularity of Punggol.
Tengah, in the same vein, could possibly go through the same journey. Residents of Tengah will be well placed to ride the wave of development in the Western Region of Singapore. With its strategic location just beside the Jurong Innovation District, demand for housing in Tengah is almost certainly expected to be firm. However, at the onset, residents are expected to be those moving in from the neighbouring towns of Bukit Batok and Choa Chu Kang, as they are most familiar with the area. Given its location in the north-west and the perceived relative lack of amenities in the infancy stage of town development, Tengah flats are expected to be priced affordably. This will be attractive to young couples who are looking to buy their first home as they now have another option.
In the long run, Tengah is definitely an up and coming new town with significant potential for capital appreciation over time.
By Eugene Lim, Key Executive Officer and Seah Yao Hui, Assistant Manager, Research
Singapore, 9 Sep 2016 – As part of ERA’s corporate social responsibility initiative 100 elderly folks gathered today at Queenstown Multi-Service Centre to celebrate Mid-Autumn Festival. This event was organised by ERA Realty Network (ERA). The gathering was one of the activities designed to cater to the psychological needs of the elderly. The aim was to engage them, keep them active and mentally alert.
It has always been a tradition at ERA to donate mooncakes and spread love and cheer to the elderly every Mid-Autumn Festival. COO of ERA Marcus Chu and his staff were on deck to distribute goodie bags containing traditional lotus paste mooncakes, piglet biscuits and LED candle lanterns.
Driven by a fervent passion to do good, ERA has always been active in pushing its corporate social responsibility initiatives. ERA is a long-time contributor to the Community Chest, having received its 9th SHARE Corporate Platinum Award and Five Years Outstanding SHARE Award at the Community Chest Awards 2016. The company has also been awarded the I Love You Ruby Award and named Ambassador for the Deaf since 2010 by The Singapore Association for The Deaf, ERA also supports Canossaville Children’s Home.
Incepted in 1998, Queenstown Multi-Service Centre offers 60 day-care services tailored to the needs of the elderly. The elderly folks get to engage in activities such as arts and crafts, calligraphy, tea appreciation and singalong sessions. The centre also provides health screening as well as rehabilitation sessions.
Singapore, 26 Aug 2016 – Not for long. The location’s fundamentals point to Good Upside Potential.Since as early as 1991, the idea was mooted to decentralize economic activity from the Central Business District (CBD) to other parts of the island. Thus, the regional centres were born. Tampines was the first to be built, with its development starting in 1992. More than 20 years later, Tampines is now the most established of all the regional centres.
Following Tampines’ success, the government followed up with plans to transform Jurong and Woodlands in 2008 and 2014 respectively. Recently, in Budget 2016, Finance Minister Heng Swee Keat announced the building of the Jurong Innovation District, the “industrial park of the future”.
These comprehensive plans have led to home values spiking in the West and North. The median price of private condominium projects in Jurong hit $1,354 per square foot this quarter. Over in the North, new homes in Woodlands and Yishun achieved median prices of $1,080 and $1,052 per square foot respectively.
In comparison, the median price in Tampines hovered around $961 per square foot, even lower than Yishun’s, despite its regional centre status. Amidst all the hype and buzz surrounding Jurong and Woodlands, it appears that Tampines has been forgotten.
However, that is not the case. Tampines is actually a great town to live in and well sought after by buyers. Around 5000 applicants were vying for a unit in the Housing and Development Board (HDB) August Built To Order (BTO) sales launch.
As further proof of its popularity, flat prices in Tampines have outperformed neighbouring towns Bedok and Pasir Ris. Taking 4 Room HDB resale flats as an example, the median selling price in Q2 2016 was $423,400 while those in Bedok and Pasir Ris were $399,000 and $405,000 respectively.
HDB flats are not the only properties favoured by buyers, private condominiums are popular as well.
Tampines was the 13th most active area in terms of transactions, out of a total of 36 areas. Activity in Tampines was higher than areas such as Queenstown and Clementi. Despite significant interest in Tampines, there has yet to be a corresponding increase in prices. Latest statistics point to Tampines’ median prices being at a 37 per cent discount to the whole island’s. Furthermore, compared to Jurong, an upcoming regional centre, prices are 29 per cent lower. As such, from an investment viewpoint, private properties in Tampines may enjoy more headroom for future capital appreciation.
Figure 2 Median price of private residential property
Source: Urban Redevelopment Authority (URA) REALIS, ERA Research
Amenities for everyone
Tampines is home to almost 80,000 households, out of which more than 37,000 are families with three or four members. Only Jurong West and Bedok have a higher number of resident households. There are several reasons why Tampines is one of the most popular areas which families choose to reside in.
There are various amenities which provide convenience to residents. Tampines is home to three shopping malls, Tampines Mall, Tampines 1 and Century Square. Major tenants of these malls include Isetan, BHG, H&M, Muji, Topman and Uniqlo. Once found only in major malls in town areas, these fashion brands and department stores have branched out into the heartlands. Families no longer need to travel all the way to town to for a weekend shopping trip.
For every day grocery shopping, Fairprice, Fairprice Finest and Cold Storage are located in the three malls. In addition, Tampines is also home to a Giant hypermart which is open till 2am on Saturdays and 12am on other days.
Swedish furniture retailer IKEA and consumer electronics retailer Courts have also set up megastores in Tampines, providing residents with a one-stop solution for their household needs. In particular, the Courts megastore is one of Asia’s largest, with 136,000 square feet of retail space.
To further spruce up the town, plans are in place for the construction of Tampines Town Hub. The first of its kind one stop hub is situated at Tampines Town Centre and will concentrate sports, retail and community related activities into one location.
Tampines also offers reprieve from the hustle and bustle of city living. Families can take walks in the various neighbourhood parks in Tampines. Plans are also in place to ensure that most homes will be within 400 metres of a park or park connector. More green spaces have also been planned. Tampines North Quarry Park and Boulevard Park will be completed in the near future, to ensure that parks and water bodies remain within easy reach of residents.
For families with young ones, fret not, as Tampines is also home to many educational institutions and child care centres. A quick search on Street Directory reveals as many as 74 child care centres in Tampines. Various schools are also located in Tampines, from primary all the way to tertiary. Singapore’s fourth autonomous university, Singapore University of Technology and Design, has also recently moved to its campus at Simei. This means that students can literally start and end their education life all without leaving the East.
Of course, even though Tampines is pretty much a self sustaining town, residents will need to travel to other parts of Singapore as well. Currently, Tampines is served by the East West Mass Rapid Transit (MRT) Line and an extensive bus network. However, things are about to get much better with the completion of Phase 3 of the Downtown Line in 2017. Tampines MRT station will become an interchange between the East West Line and Downtown Line. Tampines town will also gain two more MRT stations at Tampines East and Tampines West. The new MRT line is expected to alleviate congestion on the East West Line and provide a strategic transport link for residents and commuters living in Tampines to the Marina Bay area and the rest of the island.
The commercial centre of the East
While Tampines has shown itself to be a desirable town to live in, an important consideration of residents naturally relates to their commute to work. According to the Singapore Department of Statistics, Tampines has the 152,400 resident working persons, the 2nd highest in Singapore. Evidently, Tampines is a top pick among working persons. Why is this so?
The East Region is a major employment hub outside of the CBD, with more than 1 million square metres of existing commercial space. Main employment clusters include Tampines Regional Centre, Changi Airport and Changi Business Park.
Tampines Regional Centre is where several banks such as OCBC and UOB have located ther back end operations. Household names such as Singapore Airlines and Hitachi also have their offices there. Changi Airport is home to some 77,000 jobs and accounts for 3 per cent of Singapore’s Gross Domestic Product (GDP). Changi Business Park is a 71,000 square metre project which houses reputable tenants such as DBS, Citibank, IBM and Standard Chartered. It is also Singapore’s largest integrated business park development.
According to the 2015 General Household Survey by the Singapore Department of Statistics, 67 per cent of resident working persons commute to work via some form of public transport or walk to work. Consequently, commuting time becomes an important factor when buying a house. Few people who work in Changi Airport would choose to stay in Jurong as the commuting time to and fro daily is a strong deterrent to many.
Hence, Tampines is a popular housing estate as it strikes a balance between being affordable and convenient. Those working at Tampines Regional Centre can simply walk to their work place or take a short bus ride. Changi Business Park and Changi Airport are one and four MRT stations away respectively.
In addition, business travellers who need to travel frequently may find Tampines an attractive location due to its proximity to Changi Airport. Going by MRT will take about 15 minutes and driving or taking a taxi will result in an even shorter travelling time of about 10 minutes.
Further demand for housing in Tampines may be fuelled as a result of the government’s plans to add more commercial space in the East. According to URA estimates, another 504,000 square metres of commercial space will be added to the East, almost 40 per cent of current stock.
Part of this will be from expansion plans at Changi Airport and Changi Business Park. Already, Terminal 4 of Changi Airport is due for completion in 2017 and Terminal 5 and Jewel are in the works. These new projects are expected to create thousands of additional jobs as the combined size of Terminals 4 and 5 alone is three quarters of the total current facilities.
Changi Business Park will be further built up, to consolidate its status as an employment hub and a vibrant business park. In addition, to capitalise on its proximity to the Singapore University of Technology and Design, potential tie ups and collaborations are in the works with students from the university.
All in all, Tampines has shown itself to be an ideal live-work-play destination. Since its development in 1992, Tampines has grown in both size and scale. Moving forth, the East is set to become a hub of opportunities and being strategically located, Tampines is well-poised to take advantage of any future growth.
Will it still remain forgotten for long? We do not think so. Sooner or later, the market’s attention will swing back to the East.
This article was contributed by Eugene Lim and Seah Yao Hui. Eugene Lim is the key executive officer and Seah Yao Hui is a research analyst at ERA Realty Network.
Singapore, 2 Aug 2016 – Free access to real-time property-related information.
- ERA is the first real estate agency to launch this property watch, search and match services to the public
- Receive alerts of property transactions and homes for sale/rent in your neighbourhood, as well as potential interest for your property
- Submit specific searches and receive matches of properties in and beyond neighbourhoods
ERA Realty Network (ERA), the largest real estate agency in Singapore, is proud to announce the arrival of 24/7 PropWatch, its newest technology.
The new 24/7 PropWatch features real-time property-related information, enables users to receive notifications on recent industry-wide neighborhood property transactions, homes for sale/rent in their neighbourhood and numbers of potential buyers/tenants for their property.
It is a one-stop property feature that allows users to:
- Gather real-time information on recent property transactions, homes for sale/rent and new project launches in your neighbourhood
- Submit specific searches and receive matches of properties in and beyond their neighbourhoods with ERA 24/7 PropSearch
- Make any enquiries by asking questions and chat with the ERA teammates
- Request for a formal valuation report for their properties issued by a private-licensed valuer
- Utilise Property Calculator (Total Debt Servicing Ratio, Mortgage Servicing Ratio & Additional’s Buyer Stamp Duty) to work out their credit limits
This new feature is accessible to all members of the public free of charge via ERA’s website – www.era.com.sg.
Simply click into “Sign Up for 24/7 PropWatch” link, and public will be directed to the “Find a Salesperson” page, which contains directions for registration. There, they can do a search on preferred salespersons using filters such as “particulars” and “specialities”.
By clicking on the selected agent’s 24/7 PropWatch link, users will be subscribed to the service.
By registering to 24/7 PropWatch, users will receive updates via emails and they can also choose to monitor real-time information. They will receive notifications of:
- Recent property transactions in their neighbourhoods
- Homes for sale/rent in their neighbourhoods
- New project launches in their neighbourhoods
- Numbers of potential buyers/tenants for their properties
- Auction and mortgage deals
Singapore, 19 July 2016 – Recently, the Urban Redevelopment Authority (URA) unveiled more plans for the Jurong Lake District, including a third precinct, Lakeside Gateway, and the use of adaptable spaces. Together with the announcement of the Jurong Innovation District in Budget 2016, it seems that Jurong is at the forefront of the government’s development plans. With all the hype over Jurong, it is easy to overlook other growth areas.Concurrent with the development of the Jurong Lake District, several other parts of Singapore have also been earmarked for further development. One of them is the Woodlands Regional Centre.
Woodlands New Town was identified as a regional centre when the idea of decentralization was first mooted as early as 1991. Slated to be developed over the next 10 to 15 years, Woodlands is envisioned to fulfil its potential as “Singapore’s Northern Gateway”. The government aims to achieve said vision by creating transit-oriented developments, drawing up distinctive districts, capitalising on the waterfront, and enhancing connectivity and green networks. Incidentally, Woodlands is the third regional centre to be developed, after Tampines in 1992, Jurong East in 2008, and preceding the fourth, Seletar.
In line with previous regional centres, Woodlands will undergo a transformation into a major employment hub outside the city centre. Approximately 100,000 new jobs are expected to be created and 100 hectares of land has been set aside for future development.
Already, plans are in place to beef up infrastructure to support the needs of the future regional centre. Transport connectivity is being improved as Woodlands is located some distance from the city centre and travelling times can be long. Come 2021, this problem is likely to be mitigated by the newly constructed Thomson-East Coast Line (TEL) and North South Corridor (NSC). These new infrastructure projects will make Woodlands more accessible.
Two more Mass Rapid Transit (MRT) stations, Woodlands South and Woodlands North, both located on the TEL, are planned to be built in Woodlands town, bringing convenience to commuters. In addition, the current Woodlands station will become an interchange linking the North South Line and TEL. Travelling times are expected to be reduced as a result. For instance, commuting between Marine Parade and Woodlands by public transport will take 60 minutes instead of the current 80 once the TEL is operational, resulting in a reduction of 25%.
For those who drive, the NSC will be an important development. The 21.5 kilometre long highway is Singapore’s first integrated transport corridor and it will link Woodlands to the city centre, while passing through other towns such as Sembawang, Yishun, Ang Mo Kio, Bishan and Toa Payoh. Once completed, the NSC is expected to result in time savings of up to 15 minutes when travelling to the city. With dedicated cycling paths, express bus lanes and pedestrian walkways, the NSC is expected to complement the existing Seletar Expressway and Bukit Timah Expressway.
These transport developments will make Woodlands an attractive location to employers and employees.
Living up to its name as Singapore’s Northern Gateway, another cross border link will be introduced in Woodlands, in the form of the Singapore-Johor Rapid Transit System. This brings the total number of cross border links located in Woodlands to three, the other two being the Causeway and the KTMB Shuttle Train. In addition, the Woodlands North station has been designated as the Singapore station for the new link, which further enhances connectivity between Woodlands and Johor. This will make Woodlands an attractive destination for companies with business dealings in Malaysia and also Malaysian companies setting up operations in Singapore.
Following the successful sale of a commercial site in 2014, Woodlands has already begun its transformation. Far East Organisation and Sekisui House are currently developing Woods Square, an office and retail project, on said site. However, this is but the start of the development of Woodlands. URA has commenced the sale of a second commercial site in Woodlands and it is currently on the Reserve List of URA’s Government Land Sales Programme for the second half of 2016, which means it will be triggered for tender if an interested party submits a bid. Other sites will eventually be released. All in all, Woodlands Regional Centre has more than 7 million square feet of commercial space planned and when completed, is expected to be on the same scale as other regional centres. In addition, Woodlands Regional Centre will serve as the anchor of a larger commercial belt, the North Coast Innovation Corridor, which stretches from Woodlands to Punggol.
Naturally, property prices are expected to be affected. Looking back at Jurong, while there was no immediate spike in non-landed private residential property prices following the announcement of the plans for Jurong Lake District, median transacted prices of non-landed private residential property have since doubled since 2008 (Figure 1). To a lesser extent, median prices in neighbouring towns Bukit Batok and Clementi have also seen a significant increase (Figure 2). The development of Woodlands Regional Centre will likely result in a similar effect. Property prices in Woodlands and its neighbouring towns Yishun and Sembawang are also expected to rise as development plans materialise.
Buyers entering the market now could therefore stand to gain from the future upswing in prices. Given the flurry of new launches recently, buyers have no lack of choices. From Executive Condominiums (ECs) such as Northwave, Bellewoods, Forestville and Twin Fountains, which are strategically located in Woodlands, to The Brownstone and The Visionaire, which are adjacent to Canberra MRT station, or Signature at Yishun, one of the most affordable ECs in the market, as well as Skypark Residences, situated in the heart of Sembawang Central. Buyers can also consider private developments such as The Wisteria and Symphony Suites in Yishun.
Figure 1 Median price of non-landed private residential properties in Jurong
Source: URA Realis, ERA Research
Figure 2 Median price of non-landed private residential properties in Bukit Batok and Clementi
Source: URA Realis, ERA Research
Table 1 List of available projects in the North Region
| Executive condominiums | |
| Project name | Location |
| Bellewoods | Woodlands Avenue 5 |
| Forestville | Woodlands Drive 16 |
| Northwave | Woodlands View |
| Signature at Yishun | Yishun Street 51 |
| Skypark Residences | Sembawang Crescent |
| The Brownstone | Canberra Drive |
| The Visionaire | Canberra Drive |
| Twin Fountains | Woodlands Avenue 6 |
| Private condominiums | |
| Project name | Location |
| Symphony Suites | Yishun Close |
| The Wisteria | Yishun Ring Road |
Source: URA, ERA Research
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This article was contributed by Eugene Lim and Seah Yao Hui. Eugene Lim is the key executive officer and Seah Yao Hui is a research analyst at ERA Realty Network.
Singapore, 24 June 2016 – Executive Condominiums (ECs) have been among the best-selling projects this year. Six of the 10 top selling projects in April were ECs.
Wandervale, the top seller in March, saw about 50 per cent of its units sold during its launch weekend. Launched developments are also seeing a pick-up in buyer activity. The Terrace was the best seller in February and has been seeing a constant stream of buyers, with nearly 80 units sold in March and April. A total of 51 units were sold at The Vales in April, while Bellewaters, an EC launched in 2014, is now close to 90 per cent sold. Projects approaching completion, such as Ecopolitan, Forestville and Sea Horizon have also managed to find buyers for almost all their units.A hybrid between public and private housing, ECs cater to the needs of the “sandwich” class — those whose household incomes exceed the ceiling for public housing but are not quite yet able to afford a private property. As such, ECs come with a set of eligibility criteria to ensure affordability for this select group.
As with public housing, EC applicants must either form a family nucleus or join up with other singles if they are at least 35 years old. They must also not exceed the household income ceiling of S$14,000. Only Singaporean couples and Singaporean/permanent resident couples can buy an EC unit. Also, buyers have to fulfil a mandatory five-year minimum occupation period (MOP) before they are can rent out or sell the EC unit.
Despite these restrictions, ECs come with a full suite of condominium facilities and are generally comparable to private developments in design.
WHO ARE THE BUYERS?
ECs appeal to two main groups of buyers. The first group is made up of first-timers who are looking to get married in their early 30s. At this age, some couples would have a combined monthly income of about S$10,000 and some savings. This group also tends to be more financially savvy and are aware that at their level of income, they have a choice between applying for a Build-to-Order Housing and Development Board flat and buying an EC.
Those who choose to buy an EC are doing so for the lifestyle. Essentially, an EC is a subsidised private condominium. First-timers are eligible for a Central Provident Fund family grant of up to S$30,000. They are also exempt from paying the resale levy, which could be as much as S$50,000. All in all, first-timers stand to “gain” as much as S$80,000.
We observe that income levels of first-timers are clustered around the S$10,000 threshold, which indicates that most of the first-timers are buying ECs to maximise the grant amount. In some EC projects, first-timers account for the majority of the buyers.
The other source of demand of ECs comes from upgraders, or second-timers. This group mainly consists of families with children and they are looking to make the transition to private housing. In upgrading, they choose between an EC and a private development.
Here, ECs hold an advantage. ECs are physically indistinguishable from private developments and come with condominium facilities. In today’s competitive market, some ECs are also coming up with innovative ways to differentiate themselves. For instance, The Visionaire at Canberra offers 28 free lifestyle classes to residents. In addition, it is also the first EC to incorporate smart home technology.
Yet, ECs hold a clear pricing edge over condominiums. Despite being essentially the same housing product offering the same quality of living, ECs are typically sold at a discount of about 20 per cent to comparable private condominiums. The only difference is the five-year MOP and resale restrictions from the fifth to the 10th year.
WHERE SHOULD I BUY?
As the adage goes: Location, location, location. This is, without a doubt, one of the most important considerations when buying a property. Also factored in are any future plans by the Government as these usually have an effect on property values.
An upcoming residential hotspot is the Northern Region, comprising Sembawang, Woodlands and Yishun. The Urban Redevelopment Authority, in its 2014 Master Plan, outlined plans for the development of the Northern Region, spearheaded by Woodlands Regional Centre. Currently in its gestation stage, Woodlands is envisioned to grow into Singapore’s third regional centre, after Tampines and the Jurong Lake District. It will become a major employment hub and this is expected to have spillover effects on housing demand in the neighbouring towns of Yishun and Sembawang.
In addition, various infrastructure improvements have been introduced to improve connectivity. The North-South Corridor and the Thomson-East Coast Line are two major projects that will reduce travelling time to and from the north for commuters and drivers. This will further increase the attractiveness of housing estates in the north.
The North-East Region is also a popular destination for EC buyers. In May, the best-selling ECs were all located in Punggol and Sengkang. Anchored by the Punggol Creative Cluster and Learning, Punggol is set to be transformed into a space for innovative new industries, creating many employment opportunities in the process. Seletar Aerospace Park is another important development in the North-East Region. Currently home to multinational companies such as Rolls Royce and Airbus Helicopters, it is envisioned to create up to 10,000 jobs when completed.
Another area to take note of is Jurong. In Budget 2016, the Jurong Innovation District was unveiled. Scheduled to be completed by 2022, it aims to bring together students, researchers, innovators and businesses to create the industrial park of the future. The employment generated is expected to boost housing demand in the vicinity.
In conclusion, ECs provide a very viable option for buyers to consider, either as their first home or an upgrading option. However, not just anyone can buy an EC. The purchase of an EC is only for those who meet the stringent eligibility criteria. This select group of people should capitalise on this opportunity to own an EC and with it, a whole new lifestyle.
ABOUT THE AUTHORS: Eugene Lim is Key Executive Officer and Seah Yao Hui is Research Analyst at ERA Realty Network.
Singapore, 28 May 2016 – The imposition of the Additional Buyer’s Stamp Duty (ABSD) shifted the attention of property investors to overseas properties. Popular destinations among Singaporean investors include Melbourne, Iskandar, London and New York. Last year, Singaporean investment in Australian properties reached $3.8 billion, just behind investors from China and the United States.
In recent months, with the weakening of some regional currencies, such as the Malaysian ringgit and Australian dollar, against the Singapore dollar, the idea of purchasing foreign properties may seem attractive to investors.Key objectives
First, be clear on your purchase intentions. Whether as an investment, holiday home, accommodation for children studying overseas or a retirement home, knowing your objective will help you in selecting a country and type of property to invest in.
Be aware of any restrictions on foreign property ownership in the country they want to invest in. For instance, foreigners generally are not allowed to buy properties below RM1 million in Malaysia. In Australia, foreigner purchases are restricted to developer sales. While these restrictions may not seem to affect buyers much, problems arise when foreign owners want to exit the market. Due to these restrictions, they find their buyer pool much smaller and that the sale of the property could take longer to complete.
When obtaining financing for an overseas property, buyers can either take a loan from a local or overseas bank. They should take note of interest rates, the loan currency and financing limits. Buyers should also be mindful that the Total Debt Servicing Ratio will apply to loans originating from local banks.
Like any investment, buying an overseas property is not without risk. Buyers should be aware that ruling parties can change overnight. With the change in government, there is a possibility that foreign property investment rules might be tightened, and this poses a risk to foreign property investors. Overseas properties are also exposed to currency risk. As a property’s value is tied to the currency of the country it is in, any appreciation or depreciation of the currency will have an impact on property values.
Buying an overseas property is not a decision to be made in an instant. Buyers should only decide after careful thinking.
5 tips for first-time buyers of foreign property
- Enlist the aid of a qualified salesperson
Are you unfamiliar with the rules and regulations surrounding a country’s properties? Consult a real estate salesperson who is experienced with overseas property transactions. There are some who specialise in certain countries. Benefit from their expertise. - Know your risk appetite
This will help you shortlist the countries which you want to invest in. Generally, developed economies tend to be safer choices due to their transparency. However, the property returns will also tend to be lower. Conversely, investing in a developing country may reap high rewards, but there may be a higher amount of risk. - Location, location, location
Be familiar with the location of the property they are purchasing. If you are not, arrange for a visit prior to the purchase. See the development’s actual location and knows the surrounding area to get a “feel”. - Have an exit plan
Don’t make the mistake of thinking a property can simply be sold off anytime. Properties are “lumpy” and illiquid. Before you purchase any property, consider if it will be easy to sell. Some factors to consider include the level of resale demand and whether most people can afford the property. - Know the dispute resolution avenues
Find out what legal rights you have under the relevant laws in the event of any dispute. You should know the dispute resolution mechanisms available. It could be useful to be aware of the jurisdiction which handles disputes.
This article was contributed by Eugene Lim and Seah Yao Hui. Eugene Lim is the key executive officer and Seah Yao Hui is a research analyst at ERA Realty Network.