Tag Archives: landed houses

Landed property sees bigger slide in prices by 5.1%

LANDED homes are taking more of a hit than apartments in the lacklustre property market, with prices falling and demand drying up.

The price index for landed property has fallen 5.1 per cent over the past four quarters, well in excess of the 3.3 per cent slide in the non-landed index, according to the Urban Redevelopment Authority (URA).

“It was previously thought that the landed segment, which has so little new supply and strong demand, might be more resilient than other segments,” said Mr Ong Teck Hui, JLL national research director.

“The effect of the Total Debt Servicing Ratio (TDSR) on the landed segment has turned out to be worse than anticipated… now, with severely constrained borrowing, there are probably much fewer potential buyers of landed homes. Or if they are still in the market, their budgets would have been substantially cut.”

The transaction volume for landed properties in the five quarters after TDSR was imposed at end-June last year is 65 per cent lower than that of the five quarters before TDSR, Mr Ong added. Non-landed property recorded a 57 per cent decline in sales volume over the same period.

Buyers’ preferences are also changing, moving towards smaller, more modern-looking living spaces found in the private apartment market, said Mr Ong Kah Seng, director of R’ST Research.

“Savvy property buyers feel there is less value in buying a landed home in Singapore where costs are high and designs tend to be older,” he added, noting also that buyers are looking to the Johor housing market for more affordable landed property.

Mr Ong said suburban areas, especially in the northern and western regions, have seen more of a pile-up in completed and unsold landed homes due to their outlying locations, which “would not reflect much prestige or exclusivity in owning a private property”.

In Sembawang and Canberra, demand from HDB upgraders would have been substantially absorbed by some non-landed projects as well, including the One Canberra executive condominium, SkyPark Residences, Canberra Residences and The Nautical, said Mr Ong of R’ST Research.

Another factor is that it has become harder to get approvals for Singapore Permanent Residents (PRs) to buy landed homes, said Mr Nicholas Mak, SLP International executive director.

Buying landed homes is limited to Singaporeans and PRs, but PRs can buy only one landed home for their own occupation, with the purchase subject to government approval.

The Singapore Land Authority (SLA) further tightened eligibility criteria over the past two years. The number of approvals a year fell from 145 in 2010 to 117 in 2011, and 31 in 2012 – the first full year after tightening – and 11 last year. Nine approvals were granted in the first three quarters of this year, and eight in the same period last year, an SLA spokesman said.

Developers of landed projects with slow sales say they are concerned about how the measures are biting.

“Our agents are also suffering. We have taken steps to offer some discounts and, hopefully, buyers will see the value. Where (else) can you get a new landed house with a park or sea view?” said Mr Sam Chong, senior manager at Sunway, which developed Avant Parc in Sembawang. The completed project is selling at an average of $570 to $590 per sq ft (psf) of built-up area, with quantums from $2.488 million for a terrace home.

Mr Victor Ow, chairman and chief executive officer of Clydesbuilt Group, said the company is prepared to hold on to unsold homes at its completed Eleven @ Holland just as it held on to Lornie 18 residences during the 2009 recession.

It has started renting out Eleven @ Holland homes, with tenants for about eight homes already moving in. By the third quarter of next year, Mr Ow expects at least 75 per cent of homes to be taken up. Pricing at the project is an average of $1,050 psf, unchanged from its launch in June 2011.

“Despite cooling measures, good-quality projects in prime locations won’t be affected in the long term,” said Mr Ow.

At Belgravia Villas on Ang Mo Kio Avenue 5, which was launched a year ago with completion due in 2018, 31 of 118 landed homes have been sold at prices from $800 to $850 psf.

“Given recent government rules for strata-landed homes, future supply will be limited. We are confident our project will do well,” said Mr Darren Lim, assistant marketing manager at Tong Eng Brothers. Tong Eng’s unit Fairview Developments is building the project.

Consultants say the investment outlook for landed property remains encouraging. The vacancy rate for such homes was 3.5 per cent as at the third quarter while that for apartments was 8.2 per cent.

The average upcoming supply of 710 landed properties per year from 2015 to 2018 could be “easily taken up during a buoyant market”, said Mr Mak.

Mr Ong of R’ST Research expects resale prices for landed homes in the central region to be flat or fall up to 5 per cent next year while prices at suburban locations will continue to dip, falling up to 7 per cent next year.

Those in city fringe locations are likely to see flat pricing next year as those areas have become established as the “best of both worlds” with convenience and reasonable pricing.

“Investment yields are generally lower than for private condominiums, with gross yields of 2.5 to 3.5 per cent… Landed homes are better products to buy for long-term capital appreciation,” he said.

8 Nov 2014 Straits Times

Properties to be acquired for the new TEL line


The latest addition to Singapore’s rail network is a 13km, nine-station line tracing the east coast shoreline.

Transport Minister Lui Tuck Yew announced this during a visit to the Marina South Pier Station, which is an extension of the North-south Line that is expected to open later this year. Mr Lui said the new line – originally called the Eastern Region Line – is scheduled for completion by 2024, and expected to cost $6.8 billion.

The line is an extension of the Thomson Line and will head east through areas such as Tanjong Rhu, Marine Parade and Siglap and terminate at the world’s first four-in-one depot in Bedok South.

The project will however involve 24,136.4 sq m of land being acquired. Six houses along Amber Road and a three-storey walk-up apartment block at 443-447 Tanjong Katong Road will be fully acquired.

Eight partial lots will also be acquired. This includes part of the land that condominium Laguna Park along Marine Parade Road sits and part of the land that St Patrick’s School sits on.

Other partial lots being acquired are along Tanjung Rhu Road, Meyer Road, East Coast Road and Changi South Street 2 and 3.

The bulk of the acquisition, however, will come from Laguna Golf & Country Club which will have to give up 17,656 sq m.

Panoramic shot of the walk up apartment with a provision shop along Tanjong Katong Road (right) and the cluster of six semi-detached houses (left) along Amber Road that will make way for Amber Station on the upcoming East Coast Line as seen on Aug 15, 2014. -- ST PHOTO: KEVIN LIM

The cluster of six semi-detached houses along Amber Road that will make way for Amber Station as seen on Aug 15, 2014. -- ST PHOTO: KEVIN LIM 
An individual unit of the cluster of six semi-detached houses along Amber Road that will make way for Amber Station as seen on Aug 15, 2014. -- ST PHOTO: KEVIN LIM
An individual unit of the cluster of six semi-detached houses along Amber Road that will make way for Amber Station as seen on Aug 15, 2014. -- ST PHOTO: KEVIN LIM
An individual unit of the cluster of six semi-detached houses along Amber Road that will make way for Amber Station as seen on Aug 15, 2014. -- ST PHOTO: KEVIN LIM

Katong Landed Estate: Swanage Road

This small street has a rare mixed landed housing estate in the midst of grand Semi-detached and Detached Houses of Goodman Road and Tanjong Katong area. Near to Dakota MRT station and SPC petrol Station at the end of the street, this is a cosy place within a prime estate.



Semi-Ds hit all-time high prices

Wareham sight

A curious bright spot has emerged among the dying embers of the once red-hot private home market – landed property.

Prices of semi-detached homes hit an all-time high in the second quarter this year, according to official data yesterday, although consultants say it is too early to tell whether the uptick was a blip or a sign of a longer-term rise.

Semi-detached home prices jumped 4.2 per cent from the previous three months, in stark contrast to every other segment of the private residential market, all of which posted either stagnant prices or declines.

This increase has brought the semi-detached price index almost on par with that of bungalows in the quarter – the first time that has happened since the depths of the financial crisis in 2009.

The index, computed by the Urban Redevelopment Authority, is based on prices per sq ft (psf) for transactions posted in the quarter, but it does not indicate actual psf prices.

The median price of a semi-detached was $853 psf in the three months to June 30, higher than the $784 psf for a bungalow, according to URA figures.

Overall, landed home prices fell 1.7 per cent in the second quarter from the previous three months, significantly sharper than the 0.7 per cent slide in the preceding quarter. Bungalow prices fell 3.1 per cent and terrace house prices dropped 4 per cent.

Consultants said yesterday that semi-detached prices may have moved up in the second quarter as people change their buying targets.

More people who may have wanted to buy bungalows still find these too expensive and go for semi-detached homes instead, they said.

“Those people looking to sell bigger houses such as bungalows are still holding their prices, since they have higher holding power,” said market expert.

It is noted that even if the average psf prices of semi-detached homes approach those of bungalows, the total price of a bungalow would still be a lot higher due to its larger size.

“We haven’t seen firesales in bigger units so far. For those with the capacity to upgrade to landed, the next best would be semi-Ds.”

There was a limited supply of semi-detached homes due to a dearth of new landed homes being built, which could have contributed to the segment’s price rise. However, he said it still remains to be seen whether the price rise was a one-off.

One market analyst agreed, noting that the semi-detached price index has been quite volatile over the past few years. The small number of transactions could skew price statistics.

There were only five semi-detached homes sold in the second quarter, and only one bungalow, according to URA data.

Given that, the price increase was more likely to be a blip than a sign people are “abandoning other landed housing types and rushing to buy semi-Ds… I won’t be surprised if it drops next quarter”.

Straits Times Jul 26 2014