Copen Grand EC fully sold, HDB launches nearly 10,000 flats in November BTO exercise, extends application period and more
Copen Grand, the first executive condo (EC) in Tengah has been sold. Second-time buyers have snapped up all remaining 146 units of the 639-unit development. The Housing and Development Board (HDB), which launched 9,655 Builder-to-Order flats on 23 November 2022, was its largest BTO launch.
1 Copen Grand EC completely sold
Copen Grand, Tengah Town’s first EC, was sold by second-time buyers who purchased all 146 units in the 639-unit development. The Business Times reported that developers City Developments Limited and MCL Land were involved.
Huttons Asia CEO Mark Yip called the development the best-selling EC of the year, noting that it was also the first EC project to sell fully during a second round.
Copen Grand’s value proposition is strong. He stated that Copen Grand has the (first mover’s) advantage, unrivalled access to three MRT stations and proximity to future Tengah Integrated Transport Hub, Tengah Boulevard Bus Interchange.
Only 30% of the project’s launch price can be given to second-time buyers under current EC regulations.
The project was launched on 22 October 2022. Its average price was $1,300 per square foot. Units purchased under the deferred payments scheme were priced at 3% more.
Approximately 73% of units sold by Copen Grand during its initial day of launch. The transacted prices ranged between $1.09 million for two-bedroom plus study units to $2.17 millions for five-bedder premium units.
2 HDB launches almost 10,000 flats during the November 2022 BTO Sales Exercise
On 23 November 2022, the HDB released 9,655 BTO Flats for Sale – their largest BTO Offering in a Single Launch
These flats are located in 10 projects that span both mature estates in Queenstown and Kallang Whampoa.
HDB has extended the application deadline from seven to nine days for the Sale Of Balance Flats (SBF), exercise. This gives potential buyers more time to look at the many flats available.
Both SBF and BTO exercises will close at 11.59pm on December 1, 2022. All interested applicants may apply via the HDB InfoWEB.
Tan Meng Dui, CEO of HDB, stated that the majority of the nearly 10,000 flats or close to 6,000 new apartments are found in non-mature areas.
He said that 95% of the four-room flats and larger in this bumper crop are reserved for first-timer families and added ballot chances. “We encourage first-timers to apply for flats within non-mature estates, to increase their chances at securing a new BTO apartment.”
3) Tengah November 20,22 BTO project to reduce waiting times, pilot new technology
Tengah’s Nov 2022 BTO Project – which will offer a total of approximately 2,077 units – will test construction technologies like 3D concrete printing in order to increase productivity.
The shortest waiting time for Garden Waterfront I & II @ Tengah is also among the projects that were launched during the BTO sale exercise on 23 Nov 2022, reported .
HDB has launched nearly 10,000 flats in 10 different projects.
Tengah’s new residential project will include 18 blocks of apartments ranging in height from 9 to 16 stories, as well as Flexi units for two and three-rooms. There will also be flats available for rent within Garden Waterfront I @ Tengah.
HDB stated that the Tengah estate’s large selection will meet the needs of all flat-buyers and offer affordable options with quick waiting times for first-time buyers.
Since November 2018, when Plantation Grove, the first BTO project launched, approximately 17,000 flats have been offered in Tengah.
HDB pointed out that there were delays caused by the pandemic but that “more than 70%” of these projects have a waiting period of less than four years.
4) The Government has released two residential sites.
Three Reserve List residential properties have been released by the Government under the Government Land Sales Programme.
The Urban Redevelopment Authority launched the Jalan Tembusu condominium site of 20,572.1 m and Clementi Avenue’s condominium site of 13,451.1 m. Both sites will produce 825 units and 500 units respectively.
HDB has launched the third Senja Close site, measuring 10,159.2 m2, which is intended for EC development. It is expected that it will produce approximately 300 units.
According to ERA Realty, the Clementi Avenue property has the best chance of being triggered for sales. This is due to the absence of mass-market condominium projects in the Clementi area.
However, Huttons Asia’s Senior Research Director Lee Sze Teck believes that developers might want to keep their options open, and not trigger these sites, given the December release of 1H 2023 GLS websites.
If the auction is successful, he expects that all three sites will attract between three and five bids. The Clementi site would attract a top bid of between $1,000 to $1,100 per square foot per plot ratio (psf per piece).
5 – Experts suggest that the ‘Mature and ‘Non-Mature’ HDB estate classifications may be replaced.
Experts believe that the revision of HDB estate terms “mature”, “non-mature,” and “mature”, may result in the replacement of these terms and the addition or removal of a third category, reported TODAY.
Chris International founder Chris Koh stated that the classification of mature and non-mature estates could be reclassified, as the distinction between the two types of estates was already unclear.
Buyers can instead rely on the Prime Location Housing (PLH), or Non-PLH classification to determine how close homes are to amenities such as shopping centres and public transportation.
Christine Sun, Senior Vice President of Research and Analytics at OrangeTee & Tie suggested that geographical location be used in classifying estates.
Mohan Sandrasegeran (One Global Group Senior Analyst, Research and Content Writer) suggested that the population density be used to determine if an area is developing or not.
6) More Singaporeans have difficulty paying their housing loans
A new survey has shown that 40% of Singaporeans have difficulty paying their mortgage loans. This is up from 31% last ye, according to CNA, citing OCBC Financial Wellness Index report.
OCBC reported that 14% of Singaporeans cannot pay their housing loans on-time, compared to 9% in 2021. The number of people looking to downgrade or sell their homes to pay their loans has increased from 6% to 8% in 2021.
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It stated that Singaporeans are now more concerned about financing their homes – 38% of them worry about not being capable of affording a home. This is an increase from 36% last years.
These are despite the fact that banks claim mortgage foreclosures are uncommon, and DBS says it hasn’t seen delinquencies because of higher home loan interest rates.
UOB however, stated that the percentage of borrowers affected by interest rate increases was “insignificant” compared to the bank’s total mortgage portfolio.
The banks stated that they would help anyone in financial difficulty.
7) Strong demand for co-living space rents
The demand for coliving spaces has increased in Singapore. Operators are reporting occupancy rates above 95%, thanks to more people looking for temporary housing while they wait to move into their new homes, reported .
This is due to expatriates returning to Singapore after the COVID-19 pandemic.
This is why industry players expect that rental rates for these spaces will rise.
“This trend is not just for co-living. It’s a trend across the entire industry. We did raise the rates to align with the market,” stated Genevieve Khua, Lyf’s Area Manager.
Lyf, a co-living operator, stated that rents for their spaces would rise by 20% to 25%.
Coliwoo, however, stated it will increase its rent but the increase will be limited to $200 to maintain affordable prices.
Even with rising rents, co-living spaces are cheaper than those on the open market.
8 HDB Rental Prices Increase the Most in the Heartlands
The 10 quarters prior to the COVID-19 pandemic saw rental prices for HDB flats drop or stay mostly unchanged. This is reported by.
HDB data revealed that HDB rents reached record highs in some of these communities during Q3 2022.
As compared to Q1 2020, the average monthly rental price for five-room flats increased by 47.4%. The largest increase was in Punggol, where the median monthly rental price hit $2,800. Woodlands followed closely by Sengkang and Sengkang.
The rents of four-room apartments increased by 13% to 47.4%. It is the same three towns that saw the largest increases in rents.
Even smaller, three-room apartments saw rent increases. This was due to a higher demand from migrant workers with lower salaries who were concerned about losing their jobs if they returned home during the pandemic.
These workers sought out cheaper accommodation and looked for towns with lower rents. This drove up the rental prices of three-room flats in Woodlands West, Hougang, and Hougang.
9 Private Home Sales Volume Down 9.7% in Q3 2022
Report Singapore Business Review. Singapore’s transaction volume for private homes fell 9.7% quarter-on quarter (QoQ), to 6,148 units in its third quarter 2022, down from 6,811 units the previous quarter.
Edmund & Tie attribute volume decline to “macroeconomic headwinds”, rising interest rates, and a slowdown of sales activities during Hungry Ghost Month (29 July 2022 to 26 August 2022).
Notably, the percentage of foreigners buying homes remained steady at 4.7% in Q3 2022, compared to 4.8% in Q22022.
Foreign demand increased in the Rest of Central Region at 4.7% and Outside Central Region at 2%, respectively, during the quarter under review.
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The real estate expert stated that it is possible for foreign buyers to expand their search to find more affordable properties in suburban and fringe areas, despite rising prices.
The residential overall price index grew 3% in Q3 2022, marking its 10th consecutive quarter.
Edmund & Tie projects that private home prices will fall to 9.6% from 10.6% in the future, while primary sales will rise by 1%-3% to 7,000 to 8,000 units by 2023.
10 Retail vacancy drops to a three year low in Q3 2022
The overall retail occupancy rate in Singapore increased in the third quarter 2022 due to higher take-up in the Central Region. This brought the retail vacancy rate down to 7.8%, or the lowest level since 2019, according to Savills research.
The Central Region saw a 0.5% drop in vacancy rates to 9.3% QoQ, while the OCR remained steady at 5.1%.
Savills stated that “concurrently, prime retail rentals continued to rise in Q3 because more foreign brands, which are more willing to meet up to the landlords’ higher rental expectations, entered local markets.”
This resulted in Savills monthly prime rentals within Orchard and surrounding areas increasing by 1% QoQ up to $21.30 per square foot (psf), and 0.7% quarter on quarter to $23.20 respectively.
Savills noted that CBD prime retail rents have stabilised and businesses operating around Raffles Place micromarket can expect to pay higher rents. This is especially true with Clifford Centre at Raffles Place ending its operations in 2022.
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This story was edited by Farhan Shafie (Digital Content Specialist at PropertyGuru). To contact him about this story, email: email@example.com.