Weekly News Select Sept 11, 2020 / Issue 37
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Weekly News Select Sept 11, 2020 / Issue 37 Top News for the Week • Savills Residential, Huttons Asia to merge in further sector consolidation • Penrose condo's early-bird prices start from S$788,000 this weekend • August new home sales surge to 11-month high on pent-up demand • Singapore condo resale volume hits two-year high in Aug • Limited supply of 5-room BTO flats in central region in last five years • Firms to get up to S$30,000 for each new worker if they hire more locals in next 6 months • Coronavirus: Singapore to work with G-20, other bodies to restart travel • Opening of six TEL stations delayed till first quarter 2021 • July retail sales surge after phase two reopening Residential Savills Residential, Huttons Asia to merge in further sector consolidation The consolidation among property agencies here continues. This time around, Savills Singapore's associates arm - Savills Residential - will merge with Huttons Asia. Savills Singapore is also Huttons' largest shareholder. The move will see Huttons strengthen its current pool of 3,044 brokers, with all 582 Savills commission-only residential brokers being invited to join. This is expected to enhance Huttons' capabilities in clinching appointments from developers to market their residential projects for sale. The post-merger business will trade as "Huttons - in association with Savills". Currently, Savills is not represented on the Huttons board. Huttons is a home-grown property agency set up in 2002. Savills Singapore acquired a stake in the company in 2005. Links to the story: https://www.businesstimes.com.sg/real-estate/savills-residential-huttons-asia-to-merge-in-further-sector- consolidation https://www.edgeprop.sg/property-news/savills-huttons-merger-secure-latter%E2%80%99s-position-fourth-biggest- agency Penrose condo's early-bird prices start from S$788,000 this weekend A 99-year leasehold condominium jointly developed by Hong Leong Holdings and City Developments Limited will begin previews by appointment from Sept 12, Hong Leong Group said in a statement. This is Hong Leong Group's first project to be launched this year. Early-bird prices for Penrose condominium, which is located at Sims Drive in District 14, start from S$788,000 for units with one bedroom, S$943,000 for those with two bedrooms, S$1.33 million for three bedrooms and S$2.11 million for four bedrooms. Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C 3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090 www.huttonsgroup.com Weekly News Select Sept 11, 2020 / Issue 37 The development comprises five 18-storey towers housing 566 units. Sizes of one-bedroom units start from 474 sq ft, 646 sq ft for two-bedroom units, 936 sq ft for three-bedroom units, and 1,389 sq ft for four-bedroom units. In terms of per square foot (psf), one-bedroom units start from S$1,662 psf, two bedroom units from S$1,460 psf, three-bedders from S$1,421 psf and four bedroom units from S$1,519 psf. The temporary occupation permit is expected to be obtained in July 2024, Hong Leong Group said. Link to the story: https://www.businesstimes.com.sg/real-estate/penrose-condos-early-bird-prices-start-from-s788000-this-weekend August new home sales surge to 11-month high on pent-up demand Pent-up demand continues to drive new home sales with 1,227 units sold in Singapore in August, an 11-month high with confident buyers pushing prices upwards amid worsening economic conditions and rising unemployment. The high number of transactions surprised some because it was also the Hungry Ghost month, but it got an extra lift from Forett At Bukit Timah, a freehold development that was launched on Aug 8 - the first private residential project launch since the "circuit breaker" ended on June 1. A total of 212 units have been sold as of Aug 31. It is also up 13.6 per cent year-on-year and 9.3 per cent over July's 1,080. Including ECs, 1,276 units were sold in August. Link to the story: https://www.businesstimes.com.sg/real-estate/august-new-home-sales-surge-to-11-month-high-on-pent-up-demand Condo, HDB rental volumes tumble in Aug: SRX Rents for HDB flats and private apartments held steady in August but leasings took a big hit, with rental volumes falling to levels lower than during the circuit breaker period, going by flash data from a real estate portal. August leasings for private condominiums and apartments tumbled 20.4 per cent month on month to 2,716 units. This is 47 per cent lower than a year ago and 42 per cent less than the five-year average volume for the month of August. The volume for HDB flats in August also fell, by 16.7 per cent from July to 1,025 flats. This is 46.2 per cent lower than a year ago and 44.1 per cent below the five-year average volume for August. Links to the story: https://www.businesstimes.com.sg/real-estate/condo-hdb-rental-volumes-tumble-in-aug-srx https://www.straitstimes.com/singapore/condo-hdb-rental-volumes-tumble-again-in-august-srx Singapore condo resale volume hits two-year high in Aug Resale volume of non-landed private homes in Singapore hit a two-year high in August 2020, with an estimated 1,052 units resold in the month, up 7 per cent from the 983 units resold in July 2020. Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C 3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090 www.huttonsgroup.com Weekly News Select Sept 11, 2020 / Issue 37 Overall resale prices edged up 0.4 per cent month on month and year on year, according to flash figures from a real estate portal. This comes as the property market recovers from the slowdown encountered during Singapore's "circuit breaker" period, benefiting from pent-up demand. By region, 59.5 per cent of the units sold came from sales in the outside of central region (OCR), 20.8 per cent from the core central region (CCR) and 19.7 per cent from the rest of central region (RCR) or city fringes. Condo prices in the CCR and RCR declined year on year by 3.1 per cent and 1.7 per cent respectively, while OCR prices rose by 2.8 per cent. Links to the story: https://www.businesstimes.com.sg/real-estate/singapore-condo-resale-volume-hits-two-year-high-in-aug-srx-0 https://www.straitstimes.com/business/property/private-home-resale-volume-hits-2-year-high-in-aug-srx Limited supply of 5-room BTO flats in central region in last five years For many Singaporeans, successfully balloting for a Build-To-Order (BTO) flat in a centrally located mature housing estate is akin to striking the lottery. Competition is stiff in the hotly sought-after estates of Toa Payoh and Geylang, especially for bigger flats. But in the last five years, there has not been a single five-room BTO flat launched outside of the Bidadari estate, which is part of Toa Payoh town. The Housing Board has launched 9,273 four-room BTO flats in centrally located mature estates since 2015, but only 642 five-room flats in the same timeframe. That is one five-room flat for every 14 four-room flats. The flats are spread out in Bidadari across three BTO projects: Alkaff Vista, Alkaff Oasis and Woodleigh Hillside. In response to queries from The Sunday Times about the limited supply of five-room BTO flats in the last five years, HDB said: "Land for new housing in these areas is limited. Hence, more four- room and smaller BTO flats are provided to allow more families to live closer to the city." In addition, around 500 five-room flats in the central region have been offered in the last five years under the Sale of Balance Flats exercises, Re-Offer of Balance Flats exercises and open booking of flats. They are located in Bukit Merah, Kallang/Whampoa, Queenstown and Toa Payoh, among others, said HDB. HDB said four-room flats, which come with three bedrooms and two bathrooms, remain the "mainstay" of HDB's BTO supply. They are typically 90 sq m in size. Five-room flats, which also come with three bedrooms and two bathrooms, are slightly larger at 110 sq m. Link to the story: https://www.straitstimes.com/singapore/housing/limited-supply-of-5-room-bto-flats-in-central-region-in-last-five- years Huttons Asia Pte Ltd | L3008899K | ROC No. 200210087C | GST Reg No. 20-0210087-C 3 Bishan Place #05-01, CPF Building, S (579838) | Tel. (65) 6253 0030 | Fax (65) 6253 0090 www.huttonsgroup.com Weekly News Select Sept 11, 2020 / Issue 37 Commercial Singapore's new VCC Act the main event drawing funds here Demand for Singapore office space will remain slack for a while as companies continue to shed workers to deal with the Covid-19 pandemic, but fund managers and family offices which have been increasing their presence here could mitigate some of the spare capacity. Fund or asset management companies are flocking here, with many said to be from Hong Kong due to concerns over a new security law, but it is Singapore's new Variable Capital Companies (VCC) regime that is the main appeal, a game changer for the fund management industry.