Glimpses of Singapore Real Estate market for 2013

The most significant event this year was the implementation of the total debt servicing ratio (TDSR) framework, whose impact cut across the private residential, as well as the strata-titled retail, office and industrial sectors. The TDSR, which came into effect on 2013 June 29, required that lenders consider a borrower's total debt obligations (including other mortgages and loans for cars) before granting a new home loan. The total debt obligations ceiling was set at 60 per cent of a buyer's gross monthly income.

Singapore government tried to meet the various housing needs of different groups - initiatives included the unprecedented move of allowing eligible singles to buy new two-room HDB flats in non-mature estates, and the pilot launch of Three-Generation (3Gen) flats in Yishun catering to multi-generation families.

Unemployment rates in Singapore for Q3 2013

The unemployment rate in Singapore has fallen to 1.8 per cent in Q3, 2013, 0.3 percentage points lower than that Q2, 2013. This is the lowest so far in 2013 -- the last time the country's unemployment rate hit 1.8 per cent was in December 2013.

Tender award results for the industrial site at Gambas Crescent (Parcel 3)

URA Singapore awarded the tender for the industrial site at Gambas Crescent (Parcel 3) on 13th Dec 2013 to Grow-Tech Properties Pte Ltd, at a tendered sale price of SGD 39,333,000.00 or SGD 1,100.08 psm / GPR

Industrial site at Gambas Crescent (Parcel 3)

 

Two residential sites at Upper Serangoon View

Urban Redevelopment Authority (URA) Singapore has awarded the tenders for the two residential sites at Upper Serangoon View to Kingsford Development Pte Ltd today, at tendered sale prices of SGD 258,800,000 or SGD 5,623.40 psm / GFA for Parcel A and SGD 201,630,000 or SGD 5,623.48 psm / GFA for Parcel B.

The two land parcels were released for sale on 30th Sep 2013. The two land parcels are adjacent to each other and can yield a total of 920 residential units. These were launched for sale under the Confirmed List of the 2nd half 2013 Government Land Sales (2H2013 GLS) Programme.

Cap on the percentage of foreigners in Housing Board (HDB) estates

The Ministry of National Development in Singapore will start imposing a cap on the percentage of foreigners in Housing Board (HDB) estates. Currently, only Singapore citizens and Permanent Residents can buy HDB flats. But foreigners can rent rooms or entire flats - there is no cap on the number of flats that can be sublet to foreign tenants as yet. HDB statistics shows that less than 4 per cent of HDB flats are sublet to foreigners, excluding Malaysians.

Impact of reduction of BTO flats in Singapore

Property analysts in Singapore say that the reduction in the supply of Build-to-Order (BTO) flats will not affect resale prices. After three years of ramped-up construction, Singapore government recently decided to reduce the supply of Build-to-Order (BTO) flats recently.

Analysts say that the profile of buyers going for resale flats and BTO flats are generally different. The three years of ramped-up BTO supply means that first-time buyers can purchase a new flat instead of a resale flat. This exercise along with the introduction of various cooling measures has helped ease demand for resale flats.

Number of BTOs built in Singapore

If you look at the marriage rates in Singapore and the number of BTOs build in Singapore, it seems that the government is supplying almost one brand new HDB flat to one married couple. Do you think this rate is sustainable?