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18 January 2013

18th January, Friday




Year's first condo comes with 7% price cut

Source: Business Times

The average price for units at Q Bay Residences - the first private condominium launch for 2013 - has dipped 7 per cent in response to the new property cooling measures introduced last Friday.

From an originally planned price of $1,050 per sq ft per plot ratio (psf ppr), the developers, a consortium of Frasers Centrepoint, Far East Organization, and Sekisui House, launched the 630-unit residential project at an average of $985 psf ppr at its preview sale Thursday.

This translates to about $525,000 for the smallest 527 sq ft one-bedroom unit and $1.7 million for the largest 1,981 sq ft five-bedroom unit.

The price takes into consideration the maximum possible discount - a 15 per cent early bird discount as well as a 7 per cent stamp duty discount to cushion the additional buyer's stamp duty (ABSD) imposed on Singaporeans who purchase their second and subsequent home, and permanent residents (PRs) who purchase a home here.

Home buyers can choose to either take the 7 per cent as an upfront discount or as a rebate.

Speaking at a press briefing at the Q Bay Residences showflat Thursday, Cheang Kok Kheong, CEO of Frasers Centrepoint Homes also shared his projections for the property market this year.

"It is likely that prices for mass and mid-tier condos will drop by 5-7 per cent this year, and higher-end condos that depend more on foreigners see a drop of 10-15 per cent in price."

Mr Cheang also added that with the new restrictions imposed on permanent residential households, the PRs are likely to shift their demands away from the HDB sector towards private residences.

Although a sizeable proportion of PRs are expected to purchase units at Q Bay Residences, Elson Poo, general manager of marketing and sales, Frasers Centrepoint Homes, said that the majority of those who have indicated interest are new home owners and families looking to upgrade from their current HDB apartments.


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Proposed MRT lines unlikely to impact home prices immediately

Source: Channelnewsasia

According to property analysts, home prices near the proposed new MRT lines are unlikely to increase in near future.

Market watchers say the announcement of a new MRT line could generally prop up prices of homes in the area by 3 to 5 per cent. But the response to the announcement of the expanded rail network on Thursday may be more muted.

Without further details on the exact locations of the train stations, analysts added that it will not be easy to justify any significant increase in home prices.

One analyst said: "When the stations are announced, probably you will see another increase in prices for those located near MRT stations, probably to the tune of 10 to 15 per cent. Nearing completion of the stations, then we will see probably a 20 to 30 per cent increase in prices."

The expanded rail network and new lines and are expected to be ready in 2025 and 2030.

According to analysts, the flip side is that future construction work could undermine the value of homes in the area.

"Typically, no one will want to buy a property to live next to a construction site, that is why buyers will only be willing to pay a premium when they are able to enjoy the benefits, when the lines are completed," said another analyst.

Market watchers also do not expect the announcement of the new train lines to reduce the impact of cooling measures to keep rising home prices in Singapore in check.


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Industrial property prices tipped to slide

Source: The Straits Times

Industrial firms planning to expand will benefit most from the property cooling measures imposed last week, according to market experts.

They predict that prices of industrial property will slide in the wake of the new seller's stamp duty, which is expected to curb speculation.

That in turn will help lower business expenses as occupancy costs decrease, alleviating some of the impact from the slowing economy, according to a report Thursday.

Speculation is likely to decline over the next two quarters, with price rises for new strata factory projects tapering off as demand softens.

The report forecasts price appreciations at 5 to 10 per cent increase for the whole of 2013 from an earlier forecast at 10 to 15 per cent for properties of better tenures, good locations and superior specifications. As for potential industrial property buyers who intended to tap on quick profits, they are likely to adopt a wait-and-see approach.


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