ERA Daily Research - 14 July

S'pore condo resale prices up by slower rate of 0.1% in June; volume falls 12.6%

The Straits Times, 13 July 2021, Tue 11:34 am

By Charmaine Ng

Resale prices for non-landed private homes grew at a slower pace in June as the number of transactions fell for the second straight month amid tighter Covid-19 measures.

Condominium resale prices edged up 0.1 per cent month on month in June, easing from a 0.9 per cent increase in May, according to flash data from real estate portal SRX released on Tuesday (July 13).

Year on year, resale prices were up 6.8 per cent from June last year, with increases across all regions. Prices rose 6.2 per cent in the core central region or prime areas, while prices in the rest of central region or city fringes climbed 6.5 per cent. Prices in the outlying areas or outside central region rose 7.1 per cent.

An estimated 1,510 units were resold last month, a 12.6 per cent drop from 1,727 units in May.

This was likely due to restrictions under Singapore's heightened alert period, which saw fewer in-person viewings allowed, said Ms Christine Sun, senior vice-president of research and analytics at real estate firm OrangeTee & Tie.

Mr Mark Yip, chief executive of Huttons Asia, called the decline in transactions "surprising as the other segments of the market have seen a rebound in activities after the lifting of viewing restrictions".

"We suspect it could be due to price resistance from buyers resulting in lower volume and flattish prices and lower capital gains in June," he said.

Mr Nicholas Mak, ERA Singapore's head of research and consultancy, noted that transactions for Housing Board resale flats rose 17.5 per cent month on month in June but private condo resale volume contracted 12.6 per cent over the same period.

"The main reason for the difference is that (the fear of missing out) among HDB flat buyers is not as strong among buyers of resale condos, if any," he said.

"The robust demand for HDB resale flats is driven by the longer wait for subsidised, new Built-To-Order HDB flats. Although the delivery date of new condo projects that are under development will face the same construction delay that plagued the entire real estate market, the prices of new condo units are not subsidised."

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Singapore condo resale volume falls 13% in June; prices up 0.1%: SRX

The Business Times, 13 July 2021, Tue 12:08 pm

By Yong Jun Yuan

RESALE condominium prices in Singapore were up 0.1 per cent month on month in June, while prices rose 6.8 per cent year on year, flash figures from SRX Property showed on Tuesday.

An estimated 1,510 units were resold in June, a decrease of 12.6 per cent from the 1,727 units resold a month earlier. However, volumes were 198.4 per cent higher than in June 2020, and 83.9 per cent higher than the five-year average for the month of June.

Property analysts from both OrangeTee and Tie and PropNex attributed the fall in resale volume to fewer viewings being conducted due to the country's Phase 2 (Heightened Alert) measures from May 16 to June 13.

Huttons' analysts were surprised, given that the other segments of the market had seen a rebound in activities after the lifting of the viewing restrictions. They attributed the fall in resale volumes to price resistance from buyers, which also resulted in lower volume as well as lower capital gains in June. 

Still, Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie, said demand remains at a healthy level and the month-on-month sales decline may likely be temporary.

"Sales may rebound this month since viewing restrictions have been further eased and some people may rush to close a deal before the start of the seventh lunar month which falls in August," she said. 

Meanwhile, all regions saw price increases year on year, as the core central region (CCR), rest of central region (RCR) and outside of central region (OCR) rose 6.2 per cent, 6.5 per cent and 7.1 per cent respectively.

Month on month, prices in the CCR and OCR gained 1.7 per cent and 0.1 per cent respectively, while prices in the RCR slipped 1.2 per cent.

Analysts from PropNex and OrangeTee & Tie both credited the limited supply of new homes with diverting people towards resale homes, potentially keeping their prices up in the coming months. 

Ms Sun said that as the supply of new homes remains limited and more HDB upgraders turn to the private resale market, prices may continue to rise in the coming months. 

SRX attributed more than half of resale volumes in June to the OCR, 23.7 per cent from the RCR, and 17.9 per cent from the CCR.

"Since supply is most limited in the suburban segment, price growth may be steepest for mass-market resale homes," Ms Sun said, citing the higher rise in OCR prices compared to the other regions.

PropNex's head of research and content Wong Siew Ying said that while a number of new OCR launches are slated to come on soon, the price gap between new launches and resale properties could also push price-sensitive buyers towards the resale market. 

"In addition, some buyers may prefer ready-built homes in the resale market to avoid uncertainties around completion delays for new projects. Hence, we expect the overall demand for resale homes to remain relatively strong," Ms Wong added. 

A unit from Sculptura Ardmore saw the highest transacted price for a resale unit in June at S$19.8 million. In the RCR, the highest transacted price was S$5.7 million for a unit at Regency Suites. In the OCR, the most expensive unit resold was a unit at Clementiwoods condominium that was resold for S$2.8 million.

SRX's overall median capital gain stood at S$170,000 in June, a decrease of S$20,800 from a month ago. District 21 (Clementi/Upper Bukit Timah) saw the highest median capital gain at S$535,000, while District 4 (Sentosa/Harbourfront) posted the lowest median capital gain at S$66,770.

SRX calculates the capital gain or loss of a condo resale unit by comparing the current transacted price with the same unit's previous transacted price. Capital gain data is only available for districts with more than 10 matching transactions.


Four-bedroom unit at Shun Tak's Les Maisons Nassim sold for S$39m

The Business Times, 13 July 2021, Tue 7:37pm

By Nisha Ramchandani

A FOUR-BEDROOM unit at Shun Tak Holdings' luxury 14-unit Les Maisons Nassim at Nassim Road was snapped up in early May for S$39 million, or S$5,930 per square foot (psf).

The 6,577-sq-ft unit, which appears to be the first transaction for the project, was bought by a buyer from overseas, The Business Times understands.

Marketing agent SRI brokered the deal.

Bruce Lye, co-founder of SRI, said: "Buyers recognise the Shun Tak brand and have seen other projects in Hong Kong and Macau. This is a reason for the level of confidence in the product."

In response to queries from BT, developer Shun Tak said that "a few units" have been reserved, and are pending finalisation of sales documentation.

Located in the coveted Nassim enclave, the low-rise freehold project in district 10 sits on a 66,453 sq ft site and consists of three blocks, with 14 units in total. Eight are simplexes, four are duplexes and two are penthouses. It is expected to reach its temporary occupation permit (TOP) in H1 of 2023.

The two penthouse units are over 12,000 square feet (sq ft) in size; the duplex units range between 8,633 and 8,730 sq ft in size.

The Hong Kong-listed conglomerate founded by casino tycoon Stanley Ho, is concurrently marketing Park Nova, a super-luxury freehold development at 18 Tomlinson Road, its maiden residential project in Singapore.

Fourteen of the 54 units at Park Nova have been sold, including the three penthouses. The biggest one, at 5,899 sq ft, fetched S$34.438 million (S$5,838 psf); the four-bedroom, 4,499 sq ft penthouse was sold for S$26.026 million (S$5,784 psf). The third penthouse, at 3,229 sq ft, was transacted at S$17.178 million (S$5,320 psf).

Not far from Park Nova, Shun Tak is also developing a site on Cuscaden Road into a five-star hotel with 142 rooms. It also owns the commercial building, 111 Somerset along Somerset Road.


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