Property News & Market Trends

Singapore property news in a nutshell.

Supplies pouring in from Government
Government Land Sales (GLS) programme confirmed list of site to sustain building pace in Bay area. Marina view, to be open for tender in July, could provide more than 900,000 sqft of commercial space and the government is hoping this would ease the supply for prime commercial space fastest possible. Expected bids range from $1,400 - $1,600 sft ppr. It’s up to the developers gut feel now.

In line with the robust growth of the economy and the increase in demand for various types of properties, MND will inject 15 new sites in the GLS Programme for the second half of 2007. These 15 new sites comprise 8 residential sites, 2 commercial sites, 4 hotel sites and 1 white site. The remaining 26 unsold sites from the first half of 2007 GLS Programme will be carried over to the second half of 2007 GLS Programme (For more details on the GLS, you may visit - http://www.ura.gov.sg/pr/graphics/2007/pr07-57app1.pdf). The GLS Programme for the second half of 2007 will therefore consist of 41 sites, comprising 20 residential sites, 5 commercial sites, 4 white sites, 10 hotel sites and 2 commercial & residential sites.

These sites can potentially yield about 8,000 private residential units, 354,000 sqm GFA of commercial space and 6,500 hotel rooms. Comparing this to the first half release of 32 reserve and seven confirmed sites that holds a potential 5,475 private homes, 5.3 million sq ft of commercial GFA and 5,285 hotel rooms. The overall supplies will definitely make developers think twice before boasting record prices again. Now, we just have to wait and see if these tenders receive record bids as well. Then the cycle repeats itself. Now, the mass markets boom begins.

Mortgage is still high & there's no reason why banks would want to reduce it. 
Singapore banks mortgage rates have not budged even though the Singapore Interbank Offered Rate (Sibor) has fallen in recent months. Admist rising complaints from home owners, banks are resisting the ‘ideal’ transparent system of making it mandatory to peg all board rates to standardised public rates.

Frankly, bankers are always good money-makers, not social workers. Making hay while the sun is still shining makes "cents" to them. The market is hot. Buyers are buying despite the rates. So, which foolish bankers will suggest cutting rates when buyers have no choice. Wise guys.

30,000 homes in 2009/10. Will that be enough or flushed?
More than 31,000 completed private homes will hit the market between 2009 and 2010. In May, I was a little worried about the avalanche of supplies. You can check out http://www.propertybingo.com/News.aspx?newsid=42

70% of these new homes will be in the central region, which includes Orchard, Marina, Bukit Timah, Queenstown, Bishan and Marine Parade. It's expected that rentals and prices will remain high till the end of the year, especially in the central region.

The new supply in 2009 will help restore a calming effect, but will it be a worrisome over-supply? With another potential 13,000 units put up for sale under the Government’s programme to offer land for development, we could end up with 40,000 homes. That's the highest record Singapore has ever seen! Not forgetting the multitudes of enbloc sales that don't seem to end.

Just brace yourself. Whatever it is - 2009/10 would be an exciting period to note in our history book of property markets. - Danny 'Bingo'

More ...

	Do you know the current supplies of properties? We know about caveats(property sold & price) but who knows the supplies, really? The government will always supply back-dated figures of new project sales, office vacancy but not the number of residential properties on the market. Is that important? If so, why is there no such mechanism in place ... 13 Jul 2007 - Read Details
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