If you have been following the real estate news in Singapore over the last 2 years, you should be aware that property prices on our Little Red Dot have been falling since the third quarter of 2013. Prospective buyers eyeing on the HDB resale market are in for a treat as prices plunged by over 10% since May 2013 to a current 4 year-low. It’s now a buyer’s market and we are happy to share new window of opportunities for HDB Estates in Pasir Ris, Woodlands & Duxton area.
Quick Background On Singapore HDB Market
The HDB Resale Price Index tracks overall price movement of the public residential market. The index is calculated using resale transactions registered across towns, flat types and models, with the first quarter of 2009 as the base period (i.e. index has value 100 in 1Q2009). In the last report from HDB on 2014 Quarter IV, the index has fallen further by 1.4%.
According to Channel News Asia Report, HDB resale market is expected to remain weak in 2015. This can be mainly attributed to a record construction programme for HDB between 2011 and 2013, with more than 77,000 BTO flats launched during that period. That equates to more than 25,000 flats each year. With the huge influx of supply, existing owners who have applied for a new flat faced substantial difficulties with selling their units within HDB deadline (existing flat owners have to dispose of their unit within 6 months of taking possession of their new flat).
The supply of residential spaces in Singapore is set to increase further. According to Ministry of National Development statistics, an estimated 47,505 residential units, comprising of private and executive condominiums has been completed in 2014. They are expecting another 50,592 and 60,623 to be completed in 2015 and 2016 respectively. To sum it up, a huge number of residential units will be flooding the market by 2017.
In 2015, property analysts expect prices to gradually stabilise. Home-buyers can enjoy windows of opportunity for both residence or investments. We advise home-buyers to seek professional help from a qualified real estate salesperson with expert knowledge of the interested estate to get a head start.
Pasir Ris Beckons To Opportunists
The Draft Master Plan 2013 state that Pasir Ris will retain its identity as one of the greenest townships with varied recreational and leisure spaces. Green space has become a luxury in the rapidly urbanising Singapore and this remains as one of the key charms of this coastal town. New recreational facilities are added and existing amenities will be upgraded to enhance the living environment.
Residents can look forward to redevelopment of the town centre with new commercial facilities and transport linkages will be made better with a new integrated Transport Hub at Pasir Ris Central and Cross Island MRT by 2030.
If you are looking to purchase a home or investment in Pasir Ris, make sure your appointed real estate salesperson understands Pasir Ris Estate to effectively time the market.
Woodlands – The Unpolished Diamond
Selling below overall median price and performing at a stellar median rental yield across all flat type has positioned Woodlands to be an attractive gem in the property market. Your first reaction would probably be – Woodlands? It’s too far away from the city area. There aren’t much amenities or recreation areas with a view and who can I rent out my space to? Well, things are looking good for the town because the Draft Master Plan 2013 has set high expectations for Woodlands to become the next bustling regional centre in the northern part of the island after Tampines & Jurong East.
1. Emergence Of A New Regional Centre
Urban Redevelopment Authority (URA) has launched a tender for sale for a 99-year leasehold commercial site in Woodlands Square. URA has stipulated that at least 90% of the maximum GFA must be for office use while the remaining 10% can be for complementary use such as childcare centre, retail and F&B.
2. No Shortage Of Potential Tenants
That would transform Woodlands into a commercial cluster serving businesses that do not require an office in the CBD. When fully developed over the next 10 to 15 years, some 100,000 jobs will be available. Job creation is likely to be at full throttle for the regional centre which translate to an immediate pool of rental markets.
3. You Have A View!
Woodlands is the only regional centre with a coastal waterfront setting so you or your tenant can look forward to enjoy views of the Straits of Johor. The 2013 Draft Master Plan shows that the existing Woodlands waterfront will be expanded eastwards with shipyard facilities in nearby Sembawang relocated to create more space for public enjoyment.
4. Great Connectivity
You can take advantage of the improved connectivity between Woodlands and Johor, as well as between Woodlands and the city, with the development of the new Thomson MRT line and the upcoming North-South Expressway.
For existing home owners in Woodlands looking to sell your HDB flat, make sure your appointed real estate salesperson understands Woodlands Estate well and can position your sale in your best interests.
Setting New Records For Duxton Estate
In terms of location, design and view from the project, Pinnacle @ Duxton distinguishes itself as one of the prime HDB development in Singapore that offers superb location, outstanding design and breathtaking views. The development set a record in Singapore HDB market with a resale price of $900,000 (four room flat on 34th to 36th floor).
This stunning transaction greatly impact valuation for other units in the same development and paves the way for five room units to fetch over $1 million. January 2015 witnessed more record breaking transactions for the development for both four and five room units. Home owners at Pinnacle @ Duxton are practically sitting on a pot of gold. It would be a waste not to spend time understanding the full potential of the HDB flat.
In summary, for folks who have purchased their properties before the dip, Steve Melhuish (CEO of PropertyGuru) shared, “The good news is prices will probably pick up again after the next couple of years. If you had bought any real estate in the past 12 – 18 months, when prices were on the way up, chances are you’re in negative territory now. But if you are not under any pressure to sell your home, hold on to it for a few more years, and you’ll soon be back in positive territory”.
Before we end off the article, we would like to emphasize once again emphasise that our readers appoint a knowledgeable real estate salesperson who can leverage on the strengths of your HDB flat and position your sale in your best interest.
About The Guest Blogger
Mr Melvin Lim is a Branch Division Director at TeamPower Division, ERA Realty. You can view more of his articles on his website: www.propertypricestoday.com
For more professional advice, home-owners or interested buyers for Tampines, Woodlands and Duxton Estate can click here to leave your contact for immediate follow up.Disclaimer
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