High-End Home Sales Picks Up

Private homes sales above S$3 million line have picked up. Emerging value and currency movements paved the way to an upsurge in high-end home sales, rising 17.7% to 659 units for the first seven months of this year. Only 560 were done in the same period last year.

The pick-up in transactions above the S$3 million category cut across both the landed and non-landed segments. 

January to July Period
Sales of landed homes, 2015 - 318 transactions.
Sales of landed homes, 2014 - 280 transactions.

Non non-landed sales, 2015 - 341 transactions.
Non non-landed sales, 2014 - 280 transactions.

Contributing factors

Steeper drop in property prices in the high-end property market - the luxury non-landed private home prices have fallen 11.2% from its peak in Q1 2013.

Currency appreciation in the USD, Hong Kong dollars and the British pound against the Singapore dollar creates incentive for buyers.

The completion of new condo developments such as Leedon Residence in District 10.

Upsurge in landed property demand - 48% of private homes that changed hands at above S$3 million in the first seven months were landed homes.

Longer term view, owner occupation, upgrading of portfolio or positioning themselves for capital appreciation in landed properties in land-scarce Singapore.
Redevelopment – developers buying interest in old houses for redevelopment purposes.

Realistic pricing - developers of new landed projects have a certain timeframe to sell off their properties or pay a penalty.

Surge in number of landed properties bought by companies - totalling 30 units  from Jan-July 2015.


Transactions above the S$3 million price tag in the first seven months of 2015

Singaporeans bought 442 private homes - up 20.8%.
PRs bought 104 private homes - up 13%.
Companies bought 42 homes, up from 32 previously - up 31.3%.
Purchases by foreigners fall to 64 units - down from 69 previously in the S$3-4 million range but transactions shoot up above S$4 million mark.

In contrast, the number of private homes sold at prices below S$3 million mark is almost unchanged; the figure inched up 0.3% to 8,763 units in January-July 2015 from 8,736 in the same year-ago period.

Still, the latest sales volumes in the property market are some way off the peak levels of 2013, before the roll out of the total debt servicing ratio (TDSR) in June 2013.

Source - Business Times

Cluny Hill GCB Goes For S$21.52M

A 15,097 sq ft in the Cluny Hill Good Class Bungalow freehold site is being sold for S$21.52 million or S$1,425 psf on land area.

Standard Chemical Corporation is selling the property to Aston Holdings which is 90% owned by Tan Koo Chuan, who also controls developer Yi Kai Group.

Estimated cost to build and fit out a new bungalow of between 8,000-10,000 sq ft gross floor area (GFA) is around S$6-8 million.

The initial asking price is S$24 million earlier in the year.

The sole transaction in 2014 along Cluny Hill was transacted at S$1,976 psf. The freehold GCB at 33 Cluny Hill has a land area of 15,177 sq ft. It was sold for S$30M. 

In total, there were only 3 Cluny Hill transactions between 2010 to 2014 - two at $30M and one at $28M. Land prices were done between $1,533 psf to $1976 psf.

Buyers are on the lookout for GCBs in the S$20-25 million range these days.  The number of transactions is expected to pick up at these levels.

GCB buyers potentially come from those aspiring to upgrade from smaller bungalows and new citizens.

GCBs are the crème de la crème of landed housing in Singapore. Only 39 locations in Singapore are designated as Good Class Bungalow Areas with strict rules to preserve their exclusive identity.

Source: The Business Times

Queen Astrid GCB Site Up For Estate Sale

A freehold Good Class Bungalow (GCB) redevelopment site in Queen Astrid Park with an indicative price of S$49-51 million is up for estate sale by tender.

This works out to S$1,399 to S$1,456 psf.

The 35,011 sq ft site at the junction of Queen Astrid Park and Coronation Road West is currently occupied by a single-storey detached house.

The indicative price is relatively tempting when matched against the peak median price of S$1,749 per sq ft recorded in Q2 of 2014.

In Q2 of this year, the median price for detached houses with land area of 15,000 sq ft and above in District 9, 10 and 11 is S$1,410 psf.

GCBs are highly coveted here due to its scarcity, with only some 2,500 islandwide.

The GCB site at 2 Queen Astrid Park would not have been made available had it not been an estate sale.

The Queen Astrid Park site is appealing because of its exclusivity, elevated grounds, lush greenery, tranquil surroundings and easy accessibility to Holland Village and Orchard Road.

There is also the potential for sub-division into two smaller plots, a rare attribute. The GCB site enjoys wide double road frontages onto Queen Astrid Park and Coronation Road West.

The tender for the site closes on Nov 12.

Total transactions in GCB areas rise to at least 11 deals in Q2 of 2015, amounting to S$282.3 million.

Just four deals totalling S$95.3 million will transacted in Q1 of this year.

GCB Recent Transactions:

45 Belmont Road
Site: 31,125 sq ft
Sold at S$1,420 psf (June 2015)

26 Bin Tong Park
Site: 21,426 sq ft
Sold at S$1,400 psf (June 2015)

21, Queen Astrid Park
Site: 27,373 sq ft
Sold at S$1,169 psf (July 2015)
Transaction Price: S$32 million

Source: Business Times