A 0.4% increase of private home price in 3rd quarter 2013

A 0.4% increase of private home price in 3rd quarter 2013

October 3, 2013 by admin ·
A 0.4% increase of private home price in 3rd quarter 2013 as compared to the 1.0% increase in the previous quarter is estimated by Urban Redevelopment Authority (URA) on Oct 1st. The private residential property index rose 0.8 points from 215.4 points in 2nd Quarter 2013 to 216.2 points in 3rd Quarter 2013.
Singapore private residential property price index 3Q 2013 flash estimate
URA website
Prices of non-landed private residential properties in both Core Central Region and Rest of Central Region declined in 3rd Quarter 2013. In Core Central Region, prices fell 0.5%, more than the 0.2% decline in the previous quarter. Prices in Rest of Central Region decreased for the first time since 1st Quarter 2012, by 1.1%, compared with the 0.2% increase in the previous quarter. In Outside Central Region, prices increased by 2.1% in 3rd Quarter 2013, which is lower than the 3.8% increase in the previous quarter.
Singapore property price index of non-landed private home 3Q 2013 flash estimate
URA website

Summarized from the media, we think that the 2.1% increase in price in the mass private flat market, Outside of Central Region should thank to a series of new launches of condo developments near the city fringe during the past quarter. Especially, the developers had launched Skywoods @Dairy Farm Road (close to Hillview MRT station), The Glades @ Tenah Merah MRT Station, Thomson Three @Upper Thomson MRT Station, Sky Vue @ Bishan MRT Station. All of them have strategic locations both very near MRT stations and city fringe. A lot of HDB home upgraders and other buyers had been attracted by the affordable price quantum from many 1- and 2- bedroom units. The overall selling psf prices are higher than the one in the previous quarter.
According to URA’s news release, the flash estimates are compiled based on transaction prices given in caveats lodged during the first ten weeks of the quarter plus the survey data on new units sold by developers in the first two months of the quarter. The final statistics will be available 4 weeks later. which will include as complete as  transactions spreading the whole spectrum of the quarter.  we should be cautious to explain the flash estimate since they may be significant different when the price changes of the quarter are small.

Filed Under: Market watch · Tagged With: private home price, private non-landed residnetial property price, private residential property price, URA

Additional Buyer's Stamp Duty- New Measures on 8 Dec 2011

Additional Buyer's Stamp Duty for a Stable and Sustainable Property Market

07 Dec 2011 07:40 PM

1)The Government announced today an Additional Buyer’s Stamp Duty (ABSD) to be imposed on certain categories of residential property purchases. The ABSD will be imposed over and above the current Buyer’s Stamp Duty, and will apply to the purchase price or market value of the property (whichever is higher) for the following purchases: a)    Foreigners and non-individuals[1] (corporate entities) buying any residential property will pay an ABSD of 10%; b)    Permanent Residents (PRs) owning one[2] and buying the second and subsequent residential property will pay an ABSD of 3%; and c)    Singapore Citizens (Singaporeans) owning two2 and buying the third and subsequent residential property will pay an ABSD of 3%. The ABSD will take effect on 8 Dec 2011[3]. Remission of ABSD will be given for options granted on or before 7 Dec 2011 and exercised within 3 weeks (i.e. on or before 28 Dec 2011) or the option validity period, whichever is the earlier. 2              The Government's objective is to promote a sustainable residential property market where prices move in line with economic fundamentals. Prices of private residential properties have continued to rise, albeit more slowly in the last two quarters. Prices are now 13% above the peak in 2Q1996 and 16% above the more recent peak in 2Q2008. 3              Even with the current economic uncertainties, the demand for private residential property remains firm. Given the uncertainty in stock markets and with interest rates remaining low, private property in Singapore continues to attract investors, local and foreign. Excessive investment demand will however make the property cycle more volatile, and thus increase the risks to our economy and banking system.   4              The Government has therefore decided to impose the ABSD to moderate investment demand for private residential property and promote a more stable and sustainable market. A higher ABSD rate for foreign buyers in particular is necessary, in view of the large pool of external liquidity and strong buying interest from abroad, and the relatively small size of the Singapore market. Foreign purchases account for 19% of all private residential property purchases in 2H2011, up from 7% in 1H2009. 5              The ABSD will apply in addition to the existing Buyer’s Stamp Duty on property purchases, which are applied at following rates: 1% on first $180,000 of purchase consideration or market value of the property (whichever is higher), 2% on the next $180,000 and 3% for the remainder. 6              For purchases made jointly by two or more parties (e.g. a Singaporean with a PR, or a PR with a foreigner), the higher applicable ABSD rate will be imposed. For example, if a citizen purchases a property with a foreigner, the ABSD of 10% will apply. In the case of a joint purchase by Singaporeans, who each already owns properties, the ABSD of 3% will apply as long as one of the purchasers already owns two properties. 7              Singaporean first time buyers and upgraders, and buyers of HDB flats[4] will not be affected by the new measure. Certain reliefs will be provided so that the measure will not impact home occupation demand by residents. For example, relief will be provided for Singaporean-foreigner/PR married couples buying their homes. Reliefs will also be provided for qualifying developers and for purchases falling within the scope of Singapore’s international trade agreements. More details will be provided on the IRAS website. Adequate Supply of Private Housing to Meet Demand 8              The Government will also continue to ensure an adequate supply of private housing to meet medium term demand. There are 41,000 unsold private housing units in the pipeline. The Government will inject sites that can potentially yield a total of 14,100 units in the 1H2012 Government Land Sales (GLS) Programme, similar to the supply in previous GLS programmes. Of these, about 7,000 units will be from sites on the Confirmed List. These numbers take into account the ample pipeline supply and the dampening effect of the ABSD.    9              To give more Singaporean households the chance to own or upgrade to private housing, the Government raised the monthly income ceiling for the purchase of new Executive Condominiums (ECs) from $10,000 to $12,000 in Aug 2011. We will expand the EC supply in 2012 and are prepared to release sites that can potentially yield 5,000 EC units for the entire year. Sites for 3,500 EC units will be made available in 1H2012, including 3,000 EC units on the Confirmed List. The Confirmed List quantum is comparable to the 3,000 EC units from 5 sites sold for the whole of 2011. More details will be provided in the press release for the 1H2012 GLS Programme on MND’s website. 10              The Government will continue to monitor the property market and adjust our property policies in step with changes in the market and the economy. Mr Tharman Shanmugaratnam, Deputy Prime Minister and Minister for Finance, said, “We have always had open markets and must keep them that way. However, the reality is that investment flows into our property market are now larger than before, and unlikely to recede as long as interest rates remain low. The additional buyer’s stamp duty should help cool investment demand, and avoid the prospect of a major, destabilising correction further down the road.” 11              Khaw Boon Wan, Minister for National Development, said, “We are ramping up the supply of new EC units through the Government Land Sales Programme. This will help higher-income Singaporeans own private condominium units in an affordable way, as the sale of new EC units is restricted to Singaporean households only.”  Issued by the Ministry of Finance & Ministry of National Development 7 Dec 2011 ANNEX 1 Existing and Additional BSD Rates  Transaction On and before 7 Dec 2011 On or after 8 Dec 2011 Existing BSD rates on the total purchase price or market value (whichever is higher) Existing BSD rates on the total purchase price or market value (whichever is higher) Additional BSD rates on the total purchase price or market value (whichever is higher) Foreigners and non-individuals (corporate entities) buying any residential property 1% on first $180,000 2% on next $180,000 3% for the remainder 1% on first $180,000 2% on next $180,000 3% for the remainder +10% PRs owning one and buying thesecond and subsequent residential property +3% SCs owning two and buying the third and subsequent residential property +3% PRs buying the first residential property 1% on first $180,000 2% on next $180,000 3% for the remainder No Change NIL SCs buying the first and/ or second residential property  Examples of Additional and Total Buyer’s Stamp Duty Payable   Assume property purchase of $1 million SCs buying first and/or second residential properties PRs buying first residential property Foreigners and non-individuals PRs owning one and buying the second and subsequent residential property SCs owning two and buying the third and subsequent residential property Existing buyer’s stamp duty  $24,600 $24,600 $24,600 $24,600 Additional buyer’s stamp duty NIL $100,000 $30,000 $30,000 Total stamp duty on $1 million purchase of residential property $24,600 $124,600 $54,600 $54,600 [1]This includes corporate, trusts and collective investment schemes amongst others. [2] A person is regarded as owning a property for the purpose of ABSD as long as he owns part of that property. Overseas properties will be excluded from the count of properties owned. [3] The measure will apply to a property purchase if the option for purchase is exercised or the agreement for transfer is executed, whichever is earlier, on or after 8 Dec 2011. Where no option for purchase is granted and only an agreement for transfer is executed, then the measure will apply to the agreement for transfer if it is executed on or after 8 Dec 2011.  [4] The purchase of HDB properties will not be affected by this measure. Only Singaporeans and Permanent Residents are eligible to be HDB flat lessees (i.e. own a flat). Existing residential property owners who buy an HDB flat or a new unit under the Design, Build and Sell Scheme (DBSS) or the Executive Condominium (EC) Housing Scheme will not be subject to the ABSD, since the existing flat/property will have to be disposed of as part of the conditions for the purchase of the HDB/DBSS flat or EC unit.

Building of North-South Expressway may hurt property prices

Building of North-South Expressway may hurt property prices

Property prices and rents of properties along the North-South Expressway's construction route could take a hit during the construction phase. According to The Straits Times, noise, dust polllution and traffic diversion may affect homes and properties and cause property values to drop by three to five per cent. This is due to prospective buyers steering clear of the properties. The impact will depend on the property's location and whether the nearby portion of the expressway is above or below ground. Other real estate projects may also face danger. The Straits Times reported today that the construction could affect an attempt by Novena Ville owners to mount a collective sale. Industry watchers told the English daily that developers are wary of buying this type of site as they do not like to launch a new project amidst construction chaos or lower prices. City Developments' (CDL) Cube 8 and 368 Thomson projects will also lose land from their total land areas. Real estate watchers who spoke to The Straits Times said owners who wished to sell their properties should adjust their pricing expectations as the inconvenience caused by the building works would need to be factored into the selling price. Rents could also be hit if potential tenants shy away from homes located close to construction sites.