Queens Peak Video

https://youtu.be/mgdZHEQ74Rw

A Study of Queens Peak Rate of Return

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How about finding out the expected rental and investment return of Queens Peak?

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Queens Peak Indicative Pricing

Queens Peak is scheduled to be priced competitively between $1,550 - $1,600.

Indicative Price

1 Bedroom starts from $6xx k.

2 Bedroom starts from $9xx k.

3 Bedroom starts from $1.2 million.

4 Bedroom starts from $2.3 million

5 Bedroom starts from $3 million

Refer here for more information on the pricing.

Slow Economy Leaning on Private Home Prices

Monday’s official Urban Redevelopment Authority (URA) flash estimates of a 1.5 per cent drop in Singapore's private home prices in the third quarter surprised analysts who were expecting the market to have stabilised. It also erased any glimmer of hope there might have been of the market bottoming out after several quarters of mild price declines.

Read more here.

Returning Growth in HDB resale market

Signalling growing stability in the public housing market, HDB resale prices were unchanged in the third quarter compared to the second quarter, based on flash estimates from the Housing & Development Board.

This is the second straight quarter that HDB resale prices have stayed flat. The HDB resale price index is still 9.8 per cent below the peak in the second quarter of 2013.

Read more here.

Strong Interest in Residential Projects in 2016

Two new condominiums boasting competitive pricing and good locations brought buyers out in force despite the fragile economic outlook.

More than 500 people have submitted cheques as an expression of interest in the 519-unit Forest Woods in Lorong Lew Lian, City Developments (CDL) said yesterday.

Eager buyers also snapped up 280 out of the 626 available apartments when The Alps Residences in Tampines Street 86 was launched for sale on Sunday.

Analysts believe attractive prices and locations in established estates were the key lures for buyers.

Read more here.

A Study of City-Fringe Investment

For those looking to enter the city fringe real estate market, the next six months are likely to present an interesting array of launches to choose from. Queens Peak by MCC Land is rumoured to be launching by the end of the year, while Paya Lebar Quarter, a massive mixed development right next to Paya Lebar MRT, is set to launch in February 2017. In the north of the RCR, Qingjian Realty is looking to launch an as yet unnamed project on the Shunfu Ville site, which it purchased from the current residents at a collective price of $638 million.

For Further Information click here.

Queens Peak Summary (I)

Queens Peak can be found in the District 03 of Singapore, in the heart of central Singapore Besides an excellent connectivity via expressways like AYE and CTE, Bus Stop and Queenstown MRT, the region has the utilities in close vicinity all amenities. There are lots of parks, waterfronts, recreational and sports centres around Queens Peak Condo. Furthermore, many great schools are in close vicinity around Queens Peak such as Crescent Girls School, Gan Eng Seng Primary and Secondary School, CHIJ Theresa Convert. One rare advantage is the closeness to several heritage sites like the Princess House and the Church of the Blessed Sacrament, which contributes to the value of the property at Queens Peak. Moreover, being one of the top HDB transaction around Singapore, there is a government initiative to transform Queenstown Estate to a more modern estate, further rising the property value of Queenstown.

As for developer, MCC Land is a Singapore developer that is a well reputed developer who have several high quality projects all over Singapore. They will have many subsidiaries and they all together are currently crafting more than half a dozen suave projects in Singapore. HY Realty, their subsidiary, is in charge of bringing out a brand new launching condo called Queens Peak in Queenstown. The MCC New Launch Condominium is located at Commonwealth Avenue, facing Dundee Road Postal Code 149454.

Inside the premises, the developers aims to make every unit affordable and yet a well design and utilised layout with the best interiors fittings for its 736 home units. Designed along contemporary and global designs, these dwellings could have intelligent layouts that focus on intelligent and privacy use of space that is precious and well utilised. 36% or 266 of the units are 1 bedrooms with study and 26% or 190 of the units are 2 bedrooms. Located on the 22th floor onwards to the 44th floor, the tallest in Queenstown, the 3-5 bedrooms and penthouses are located higher up the 1 and 2 bedrooms

The premises boast of the greatest of instructional and recreational centers approximately. Well recognized colleges fine eateries, and also medical centres are located at near hand. For diversion, there are numerous things to do like in door fitness center, pool, kids’ play area, walks, green verdant landscape to sit and relax etc., within the campus But if one does decide to stage place, there are alternatives to indulge into. These generally include the idyllic and naturally affluent Hortpark, Alexandra Canal Linear Park and Singapore Botanic Gardens, the latter supplying a skating zone also. Fitness and Sports lovers can appreciate the facilities at simply jog and cycle, Queenstown Stadium or Delta Sports Complex nearby.

What happens to prices of old leasehold condos?

Since the Singapore government has ceased to offer freehold land parcels under its Government Land Sales (GLS) Programme, and with most residential properties occupying 99-year leasehold sites, it would be interesting to observe the price performance of leasehold properties as their tenures run out.

Lessees may apply to top up the lease to a fresh 99 years. However, a lease extension will typically be granted only if it involves land use intensification or urban renewal, such as in an en-bloc sale for redevelopment. Meanwhile, the recent hike in development charge rates and the continued enforcement of the Qualifying Certificates Rule have further diminished chances of a successful en-bloc sale for leasehold sites.

For new developments, there is no clear winner between leasehold and freehold properties in terms of price performance. However, things could change when the remaining lease gets shorter.

For one, financial institutions might be reluctant to extend loans for properties with a short balance lease. The loans are usually granted on a case-by-case basis and come with a lower loan-to-value ratio or shorter tenure.

There are also more restrictions in using CPF savings to finance the purchase of such properties, such as a stipulation of a minimum remaining lease of 30 years. For properties with a remaining lease of between 30 and 60 years, the buyer’s age and the remaining lease must total at least 80 years.

All this means that as the remaining lease runs down, the pool of potential buyers will shrink. To illustrate: 30-year-old buyers can only use CPF savings for properties with a balance tenure of at least 50 years while buyers above 40 years of age can still use CPF savings for a property with a balance tenure of at least 40 years.

There are also limits on the amount of CPF savings that buyers can use to pay for such homes, based on this formula: (Remaining lease of the property when buyer is 55 years old) / (Lease of the property at the point of purchase) x (Valuation Limit). The Valuation Limit is the lower of the purchase price or the value of the property at the time of purchase.

Positive examples

Surprisingly, however, ageing leasehold properties have shown positive price performance despite the seemingly gloomy outlook.Factors such as en-bloc potential and attractive rents appear to make up for their reducing tenure. New condos in their vicinity would also have boosted their prices.

Alternative methodology

A more intensive methodology of assessing the price performance of ageing leasehold properties is to compute the profit and loss of unit sales and compare the figures against the change in the URA price index for private non-landed homes over the same period.

According to this measure, many of the oldest private non-landed homes in Central Region have outperformed the index even as their balance lease runs down (see charts). Homes resold with a balance lease of 60 years or less had the highest majority of outperformers — 86% (289 of 335 cases) — followed by those with balance leases of 60-65 years (81%, or 447 of 550) and 65-70 years (78%, or 626 of 801).

However, in Outside Central Region, the trend was the opposite, with the proportion of transactions that outperformed the index slipping as the balance lease approaches 65 years and below. This difference in fortunes could be owing to the scarcity of GLS offerings in Central Region, leading to higher en-bloc potential for older properties in Central Region, and limited supply in general.

Thus, regardless of the financing issues and restrictions on the use of CPF savings, older leasehold homes, particularly those in the city centre, appear to stand the test of time in monetary terms. Only time will tell if they can maintain their value as the lease reaches its end. Currently, the shortest remaining lease may be held by the apartments at Bedok Shopping Complex, which sits on a site with a 60-year lease from 1977. A 1,216 sq ft apartment fetched $288,000 ($237 psf) in March, reflecting a hefty 25% price decline from 2013, when two units went for $317 psf on average. Still, it is difficult to establish a trend as transactions were scarce. On the other hand, three similar-sized units have fetched an average rent of $3,067 psf this year, which translates into a very attractive rental yield.

Charts: Higher proportion of transactions in Central Region outperform price index as balance lease runs down

Source: URA, The Edge Property

This article appeared in The Edge Property Pullout, Issue 745 (Sep 12, 2016) of The Edge Singapore.

Queens Peak Unit Mixes

Queens Peak Unit Mixes

Queens peak Showflat Location

Queens Peak Condo Showflat is located at the actual site. From Commonwealth Avenue, turn in to Strathmore Avenue and into Dundee Road as shown in the map above.

If coming from public transport, take an MRT to Queenstown MRT EW19, exit and turn left. Walk towards Strathmore Avenue and turn into Dundee Road. It will be a short 5 minutes walk.

Queens Peak Showflat Direction

Queens Peak Condo Quick Fact

Developer	MCC Land
Description	2 Blocks of 44 storey Residential units with 6 level of car park, a childcare centre  & 3 commercial units
Address	Dundee Road
Tenure	99 Leasehold
Site Area	113,194 sqft
TOP Date	Q2 2020
Total Units	736 units, 3 commercial units, 1 childcare centre
Parking	6 levels of carpark
Unit Types	1/1+1, 2, 3, 4, 5 & Penthouses

Bright spots in the property market

With the release of second-quarter real estate statistics by the Urban Redevelopment Authority (URA), there is increased consensus in the industry that the ailing residential property market is stabilising after a total 9.4 per cent slide from the peak of Q3 2013, with an underlying recovery underpinned by the luxury segment. 

Lending support to the residential market now is a “lower for longer” interest rate environment, which not only keeps cost of borrowing low, but also prods investors into a deeper pursuit for yields. 

Despite rising vacancies and softening rents, early signs of a bottoming-out in the private residential market surfaced – the 0.4 per cent fall in overall private residential price index in Q2 was the smallest quarterly decline seen in the 11 straight quarters of correction. 

Resale transactions also staged a strong rebound with a 17.1 per cent year-on-year growth to 2,140 units. In particular, the Core Central Region (CCR) saw a 33.7 per cent jump in resale transactions, which made up 78 per cent of the total 767 transactions in the region, while prices in the CCR rose another 0.3 per cent for a second consecutive quarter. 

Notwithstanding continued pressures on rental yields in the private residential market, investors are still expected to pile into real estate amid wild swings in the financial markets stoked by the increased occurrence of “black swan events” such as “Brexit” and global terrorism. 

Real estate in Singapore still remains one of the safe haven assets that the rich want to park their money in. Those who are buying are looking at the longer term; they are not looking at short-term rental yields but are looking at long-term capital appreciation. 

A total of 131 luxury apartments each worth S$5 billion and above were sold in the first half of this year, marking a 76 per cent jump from the whole of 2015. 

The average price of such luxury units sold stood at S$2,950 psf, up from S$2,700 psf as at end-2015. 

Among them, Wheelock Properties’ Ardmore Three sold 34 units in H1 at S$3,200 psf. Other projects that moved units during the same period included Leedon Residence and Goodwood Residence by GuocoLand, and Gramercy Park by City Developments Ltd. 

Early signs of a bottoming-out are also seen in the city fringe, where prices in the Rest of Central Region (RCR) rose by 0.2 per cent after being flat in the first quarter. Prices in the suburban areas or the Outside Central Region fell by a smaller 0.5 per cent, compared to 1.3 per cent in the previous quarter.

The 1.4 percentage point increase in vacancy rate for private residential units to a 16-year high at 8.9 per cent – when viewed against the surge in completions – may not be all that alarming.

A tapering-off in completions after this year will also provide the needed breathing space for the market to absorb the current unsold units in both completed licensed projects and uncompleted projects, which have fallen to a historical low of 23,282 units in Q2.

All these may be encouraging signs for developers with upcoming project launches. But they will have to bear in mind that buyers are still price sensitive and cautious and have many residential options to choose from.

Having strong product attributes and the right pricing remains the winning formula seen in launches that have performed well so far.

Elsewhere in Malaysia, there is no denying that the near-term outlook for the residential sector remains cloudy. But some consultants believe that demand for housing in select cities such as Kuala Lumpur and Nusajaya remains strong, with the high-speed rail link between Kuala Lumpur and Singapore set to benefit cities along the rail corridor.

A “lower for longer” interest rate environment, along with the slide in capital values, may also inspire big-ticket transactions in Singapore’s commercial space, if the sovereign wealth funds and insurance companies are willing to stomach lower yields in the short term.

During Q2, office and retail space marked their steepest quarterly price and rental falls over the past one year or so.

This is also triggering more flight-to-quality movements by companies in the office space as they see this as an opportune time to secure premium spaces at favourable rates.

There was a slew of pre-leasing deals in the upcoming prime developments during Q2. Marina One reportedly achieved 550,000 sq ft in leasing pre-commitments, translating into a pre-commitment rate of 30 per cent; Guoco Tower also saw substantial take-up of space during the quarter with tech firm SAS leasing 20,000 sq ft of floor space in the development.

An estimated 6.6 million sq ft of office gross floor area is projected to be completed in the next 18 months. The average annual office demand in the past three years is about 1.2 million sq ft. Along with a potential increase in secondary shadow space, the heat is on office landlords to offer attractive rents to compete.

Similarly in the retail space, malls will have to evolve too, given retailers’ rising interest in omni-channel retailing – in other words, providing a seamless shopping experience across stores and the online channel. 

Given the challenging outlook, it would be imperative for landlords to undertake a proactive approach to manage their tenant mix to continually engage and excite shoppers. One possible area of growth is the F&B sector as well as the experiential and lifestyle segment.

Adapted from: The Business Times, 28 July 2016

Queens Peak Quick Info

Queens Peak @ Dundee Road Next to Queenstown MRT by MCC Total no of units: 736 units Lease: 99 years Total no of storey: 44 floor No of blocks: 2 towers Unit mix: 1st to 27th floor: 1,2 and 3 Bedroom 28th to 44th floor: 4 and 5 Bedroom 3 Shops & 1 Childcare Centre http://the-queens-peak.com/

Top 10 Reasons to Invest in the QueensPeak

Queens Peak
1. Located next to Queenstown MRT station
2. Reputable Developer, MCC Land
3. Short drive or MRT ride to city centre
4. Wide range of recreation and dining amenities such as Holland Village, Alexandra Central, IKEA Alexandra, Queensway Shopping Centre and The Anchorage.
5. Located within an established residential estate and a short 5-10 minutes drive to Orchard Road, CBD, Marina Bay and Southern Waterfront
6. The Star Vista – new retail and entertainment hub with over 100 eateries and shops located next to Buona Vista MRT
7. Great rental potential from CBD, NUH, NUS, One-North Fusionpolis, Biopolis and many more!
8. Reputable schools such as Gan Eng Seng Primary, Crescent Girls School, Singapore Polytechnic and National University of Singapore
9. Well designed layout of 1-4 bedrooms with quality finishing and luxurious design
10. Competitive pricing!!!

#QueensPeak
#NewCondoLaunch

Queens Peak Location Review (II)

It is no doubt that it’s a great boon for property investors and home buyers as they get huge benefit through this. Number of bids received for this projects was less than in number at first instance. Almost all investors and constructors are worried that there are still many unsold plots around the region but this is a project of very high value so possibly huge risk is taken by the investors. After that when the complete set of details were announced automatically bidding increased. Amenities attracted all the investors same as that of surroundings. All class of people can be benefited in this projects regardless of their caste, religion, status and more. Really this project is going to be a nightmare in the field of construction and it’s going to rock the Singapore in late this year.

A rare opportunity for investment in a residential unit right next to the Queenstown MRT station, mere minutes away from the city centre, Queens Peak is a residential development by HY Realty with a site area of 10,516.1 square metres. With a maximum GFA of up to 51,528.89 square metres, the development will be able to yield an estimated 645 units. The close proximity of the Dundee Road condominium to the city centre or to the one-north development helps to reduce travelling time to and from work, thus saving you precious time that you could be spending with your loved ones. Queens Peak is also well connected to the rest of Singapore via AYE or major arterial roads such as Commonwealth Avenue. You will be able to reach your favourite shopping destinations along Orchard Road within 15 minutes.

Situated within the historically- and culturally-rich Queenstown estate, Queens Peak condominium puts you close to various conserved buildings such as Princess House, the former Anchor Brewery Brewmaster’s House and the Church of the Blessed Sacrament. Queenstown, being the first satellite town, will undergo a series of transformation, where various types of new public and private housing will help to rejuvenate the town while preserving its distinctive character. With various heritage trails organised by MyQueenstown, there will be no lack of activities for you to take part in during your weekends as you get to learn more about your neighbourhood.

A stone’s throw away from Holland Village, which offers plenty of retail and F&B options in an area that is different from a typical shopping mall, you will be treated to an area rich with intimate streets and pedestrian-friendly public spaces for you to enjoy with your friends and family. With a variety of restaurants, cafes and bars that open till late, Holland Village offers you plenty of options for you to chill out and enjoy the night.
Food lovers seeking authentic, local hawker fare will be delighted to know that many good hawker centres are close to home at Queens Peak. The Mei Ling Market, Tanglin Halt Market, Alexandra Village Food Centre and ABC Brickworks Market are just some of the food centres easily accessible on foot, or by car and public transport. You will have no lack of options for your daily grocery needs as well at these markets.

For those who enjoy outdoor activities, major parks such as West Coast Park, Kent Ridge Park and HortPark near Dundee Road offers a wide range of leisure and recreational options. Weekends will never be boring as you hike along the Southern Ridges and reconnect yourself with Mother Nature. You will also be able to enjoy the exciting developments along the nearby Rail Corridor, enhancing the value of your property at Queens Peak. The plans for the Rail Corridor include spaces for jogging, cycling walking your dog, as well as different types of big and small gathering spaces for you to enjoy with your friends and family. Spend quality time with your friends and family at the various community decks along the Rail Corridor, or sit down at some of the cafés with your colleagues to get inspiration for your next breakthrough in your projects.

Queens Peak is also a short walk away from the Alexandra Canal, which underwent a makeover a few years ago. The revitalised waterway offers a series of wetlands and lookout decks for you to enjoy the relaxing effects of being close to water. The Alexandra Canal Linear Park also offers a variety of fitness and play equipment for all ages, as well as a skate corner for avid skaters.
The development is close to schools such as Queenstown Primary and Secondary School, Crescent Girls School and National University of Singapore, ideal for families with school-going children. With its close proximity to the MRT as well as being along major bus routes, a home in Dundee Road allows you to get to anywhere in Singapore easily.
Queens Peak will be well equipped with various facilities such as a function room, swimming pools, tennis courts, indoor gymnasiums, as well as fitness corners. There will also be BBQ pits available for you to invite your relatives and friends over for parties and gatherings.
An opportunity to invest in a property at a city-fringe location such as Queenstown, as well as its close promixity to an MRT station, is a rare find given Singapore’s limited land supply. You will be able to get to your work place in the Central Busines District or one-north within minutes via public transport. Major retail, entertainment and F&B outlets are also within reach along Orchard Road via bus or car. Alternatively, seek out quieter F&B options at Dempsey. Weekends can also be spent at the Gillman Barracks, offering you various F&B outlets while allowing you to immerse yourself in art at one of its 12 art galleries. Invest in a unit at Queens Peak condo now, and your family or tenants will thank you for a quality roof over their heads at such a convenient location.

Queens Peak Location Review (I)

This is a well-located project as the places chosen for this project is a key location in Singapore. Shopping centres like Ikea, Alexandra and Queenstown Shopping centre are right next to our plots at Queens Peak. It is Located between Queenstown, Commonwealth Avenue and Dundee Road. This project focus not only in remote access but also keen on academic centres and health cares. Nearby Queens Peak has quality academic centres like Schools, Polytechnics in walkable distance from plots. It is a condominium consist of 700 residential units in Queens Peak floor and site plans featuring various amenities to suit people of all classes. Local trains are also available and can be accessed through walkable distance from our plots.

The condominiums are in a serene environment on Queenstown Road. The condos are near MRT stations and a few minutes from the National University of School, National University of Hospitals, and Sciences Parks. 

The condos strategic location, near highly regarded financial districts like the Marina Bay Centre and Raffles, is attractive to foreigners who wish to invest. 

MCC Land depends on this strategic position of the condominiums to ultimately sell all the units upon completion so that it can get the money it bid to complete. So far things are in a good condition, and the investment is worth it.

Queens Peak HY Realty is located near Queenstown MRT, Commonwealth Avenue, and Dundee Road. With such a connection the Queens Peak Singapore residents can transverse Singapore with ease. Since the condos are located near the CBD, accessing the city is also facilitated. Also, the condos are connected to the Central Expressway and Ayer Rajah Expressway that gives drivers the best driving experience.

New Launch Coming Soon!

Situated along Dundee Road in popular city fringe District 03, Queens Peak is a mere 3 minutes stroll to Queenstown MRT station. This soon-to-be released leasehold Queenstown Condo sits on a land size of 113,200 square feet and is by renowned developer MCC Land. Queens Peak Condo will comprise of about 700 residential units and this Singapore Condo is expected to be launching in the second half of year 2016. #QueensPeak

S’pore luxury home prices up 7.9% in Q2

By Romesh Navaratnarajah • August 16, 2016

Singapore was ranked ninth for global price growth, revealed Knight Frank’s report. 

Singapore was listed ninth on Knight Frank’s Prime Global Cities Index for Q2 2016, with luxury home
prices increasing by 7.9 percent in the year to June 2016.

According to the property consultancy, prime property corresponds to the top five percent of the wider
housing market in each city.

Vancouver topped the list for the fifth consecutive quarter, with prices of high-end homes surging by
36.4 percent. However, price inflation in the Canadian port city is expected to slow after the British
Columbia government unveiled a new 15 percent tax for foreign buyers, effective from 2 August.

Other top performers in the second quarter include Shanghai (22.5 percent), Cape Town (16.1 percent),
Toronto (12.6 percent), Melbourne (11 percent) and Sydney (10.2 percent) – all of which saw annual price
 growth reach double figures. Also in the top ten are Tokyo, Guangzhou and Seoul.

Knight Frank noted that majority of the top ten ranking cities have been on the receiving end of new
cooling measures over the past year.

In fact, the latest move by policy makers in Vancouver “to apply an additional tax for foreign buyers has
mirrored some of the similar moves over the last few years in Asia-Pacific”, said Nicholas Holt, Asia
Pacific Head of Research at Knight Frank.

“Hong Kong and Singapore, most notably, have added 15 percent additional buyers stamp duties, while
the Australian states of Victoria, Queensland and New South Wales have also recently introduced
various additional levies for foreign buyers,” said Holt.

“Conversely, liberalisation is the flip side of protectionism; whilst we have seen foreign buyers penalised
in certain markets, in Vietnam and Indonesia for example, we have seen policy makers go the other
way with recent moves to relax rules for non-nationals,” he added.

Meanwhile, Hong Kong has eclipsed Taipei to take the title of weakest-performing residential market.
This comes as prime prices there dropped by eight percent in the year to June as supply increased
and concerns over the slowdown in the local economy persisted.

Property with the best Transport Connectivity

The Rise @ Oxley
Oxley Holdings’ latest project The Rise @ Oxley is a mixed development comprising 120 luxury residential units and two levels of retail space, nestled in the fringe of Singapore’s downtown core. It is well connected to a wide array of transport nodes in the vicinity. Somerset, Dhoby Ghaut and the upcoming Fort Canning MRT stations are just a stone’s throw away. Those who drive will appreciate the convenient access to the CTE.

Not only is it a stone away from Orchard Road, it is also located near the Central Business District and other business locations such as Raffles Place, City Hall, Harbourfront Business Central. Suitable for both working tenants and tourists, Rise @ Oxley is connected to 3 MRT lines – namely North-East Line, Downtown line and North-South Line.

The Rise @ Oxley. Expected completion: 2019 (Source: Artist impression, Oxley Holdings)

Is this the time to buy?

After the implementation of property cooling measures, prime-location properties were the first to take a hit (refer to Figure 1). Two particular measures were responsible for this: the Additional Buyer’s Stamp Duty (ABSD), which imposes progressive taxes for Singaporeans depending on the number of properties owned, and a flat 15 percent duty on all foreign buyers, regardless of the number of properties owned; and Total Debt Servicing Ratio (TDSR), which restricts the total loan amount available to buyers, to 60 percent of their income.

Unlike suburban areas, where Singaporeans were buying homes for owner-occupation, prime-district homes were more often the purview of wealthy foreigners, or Singaporeans looking at investment properties with better yields and capital appreciation. The ABSD, therefore, increased the cost of ownership for these two groups of buyers.

When we speak to agents, they generally agree that the 15 percent ABSD is not out of reach for foreign buyers, especially those who purchase in cash. However, these buyers are reluctant to commit because they think the government will lift it sooner rather than later, and they do not want to feel like they have overpaid.

For Singaporean investors, especially retail investors who are using their personal funds, it is more difficult to get a mortgage for property in prime districts, because of the higher quantums. Since loan curbs in the form of the TDSR were introduced, coupled with the ABSD for second and subsequent properties, local investors have been finding these prime properties increasingly harder to attain.

The price of a piece

Land in these prime districts, however, is scarce. Because these areas have been occupied since colonial times in Singapore, much of the land has already been built up. For property developers who wish to build property in these prime locations, they either need to wait until one of the rare remaining plots come on the market, or choose to collectively purchase the land.

However, to convince owners to sell their homes requires a lot of financial muscle, and many developers have paid remarkably high prices to build in these areas. Two of Singapore’s most expensive en bloc transactions so far came from District 10: Leedon Heights, which developer Guocoland bought for $835 million in April 2007, and Farrer Court, the most expensive en bloc in Singapore’s history, bought for a whopping $1.3 billion by a CapitaLand-led consortium.

These are now the sites of Leedon Residences and d’Leedon, respectively. The developers went all out with these sites, engaging world-renowned architects such as SCDA and Zaha Hadid to design the projects. What no one could foresee during those heady highs was the subsequent hit to the property market, brought about first by the Global Financial Crisis (GFC), then by the imposition of cooling measures, when the recession’s recovery led to a rapidly overheating property market. Both of these projects still have remnant inventory, even after construction has wrapped and the buyers have collected their keys.

The en bloc heyday is past us, for now. Prime district homeowners hoping to cash out through en bloc sales might need to wait a few more years before developers start to pursue collective sales with any kind of fervour.

Interestingly, the only en bloc transaction of note in recent years was Thong Sia Building in July 2015. The building is a mixed-used development on Bideford Road, across from Paragon Shopping Centre, and was sold for $380 million to a private investment group.

Another sign of how cautious developers currently are with their land sales is that not one of them has snapped up the government’s sale of the plum site behind Holland Village. Within walking distance to Holland Village MRT station, and designated as a mixed-use site, it should have been a choice target for developers hoping to build up their prime district land bank.

A closer look

After the implementation of property curbs, sub-sales, which are often a proxy for investor flipping activity, declined to an average of nine transactions per quarter in 2015. Sub-sales refer to units that have been sold by a buyer before the project is completed.

So far in 2016, no caveats for sub-sales have been lodged with the authorities. This is likely due to the Seller’s Stamp Duty (SSD), which levies up to 16 percent on sellers if they were to flip the unit within four years of purchase.

However, resale activity in these prime districts remains relatively stronger. An average of 283 resale units per quarter saw caveats lodged from the start of 2013 to date, significantly more than the average of 192 primary sale transactions per quarter.

Primary sales, i.e., units sold directly by developers, have fallen significantly. In the first quarter of 2013, 527 of the 697 units transacted were from developer sales of d’Leedon. Since then, only two smaller bright spots have been seen in developer sales for prime locations. These are The Vermont on Cairnhill by Bukit Sembawang, and Cairnhill 9, a recently launched project by CapitaLand.

The former sold around 30 units in the third quarter of 2014, and the latter has seen 139 caveats lodged since launching earlier in 2016. Both saw median transaction prices above $2,400 psf, and are located within proximity to the Orchard Road shopping belt.

Cairnhill 9’s popularity deserves a closer look, in part because of its developer’s sales strategy. A significant proportion of the project’s buyers were foreigners from Indonesia and China, with the developer hoping to capitalise further on this group by taking the project to various foreign cities.

While Cairnhill 9 has several strong selling points, including easy access to Paragon Medical Centre and Orchard Road, we cannot discount the timing of the sale. With a global economic slowdown looming on the horizon, and with China one of the key markets affected, one of the reasons behind the project’s strong sales could be due to capital flight.

In general, foreign investors view Singapore as a sound location for investment, especially in more turbulent times, because of our rule of law, political stability and strong financial institutions. Furthermore, Singapore’s long-term capital appreciation on prime-location real estate has always been sound, if investors are willing to take a 10- to 15-year view.

Plunging rentals

The rental story in District 9, 10 and 11 is not particularly optimistic, either.

Since 2013, rental prices have been on a steady decline. Prices went from a median $4.52 psf per month at the start of 2013 to $4.00 psf per month at the end of 2015 (refer to Figure 3). This translates to a fall of about 13 percent over 12 quarters.

When we compute rental prices with resale transaction prices (since newly launched units need to complete construction before they can be rented out), current gross rental yield is about three percent per annum. For investors who bought resale units to lease at current market prices, current yields are on the lower end.

On the ground, we also hear that most owners who are collecting the keys to freshly completed units are pricing realistically. Most landlords now would rather just see their units tenanted, and have some support with mortgage payments, rather than pay the entirety of the mortgage out of pocket.

While rental prices have slid downwards, rental volumes have been moving upwards. Year-on-year, rental volumes in the peak third quarter of each year have moved upwards, by almost six percent. However, landlords should not be rejoicing so early, because the increase in volumes is not due to higher demand but rather, more frequent contract renewals.

To buy or not to buy?

Should investors therefore enter into these prime locations again with fervour? They might already be doing so, if the early indications we see with Cairnhill 9 bear out into a longer-term upward trend. It is almost a cliché, but there is pent-up demand and investors with the wherewithal to purchase units, despite loan curbs and stamp duties.