At MortgageWise, we try to provide our property investor clients with a snapshot of the performance of Singapore residential property market regularly through our own basket of condos which will provide supplementary insights in a more meaningful and personal manner than just a broad-based index from URA. Properties are not created equal and some will rise or fall more than the rest.
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The condos selected in the basket are deemed iconic enough to be representative of prices in a particular precinct that is smaller than a whole central region or outside central region as defined by URA. For areas outside central region we also tend to pick condos either right at or nearest MRT stations as these tend to be well sought after by investors. Our basket would allow property investors to see the actual variation in prices over time for a particular group of condos that are fairly well-known in Singapore. However our illustration is nothing more than simple averages of all transactions done over 6-month periods and in cases where there are less than 5 transactions (marked with an asterisk) do take the reading with a pinch of salt. We also highlight the highest psf achieved in the period.
So now let us take a look at our basket of condos and their performance in the 1sthalf period of 2017. The double-digit percentage change in psf prices are highlighted for you in blue (rise) and red (fall).
And what a first half it has been for 2017 which has seen quite a remarkable turnaround since we last did this comparison back in Feb. Noticed all the “red alerts” which signify drops of more than 10% have largely disappeared with buyers pushing up prices of both the average psf transacted and highest psf attained in the 6-month period.
In the prime district of Orchard and River Valley, with the exception of Orchard Residences, transacted prices have largely risen and in fact we see huge increase in the volume of transactions at Ardmore Park the most liquid indicator of luxury properties in Singapore. Total no. of units that changed hands at Ardmore Park in 1st half of 2017 doubled from 4 in the previous 6-month to now 9. When volume goes up which means more buyers in the market, it will soon translate into higher prices which is why you see prices at Ardmore Park and Rivergate moving up strongly. In particular, the highest psf clocked by Rivergate reaches almost its last high of $2400psf, quite a feat in such a short period with total 16 units changing hands.
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Elsewhere, One-North Residences and Bedok Residences have the best performance in 2017 so far with near double-digit increases in both average psf transacted and highest psf attained in the period. The average psf transacted is a better indicator of trend especially when there is sufficient transaction volume in the period. We do see across the board increase in transaction volume across all segments of luxury, mid-tier, and mass market. In the mid-tier segment of city-fringe properties, prices have stabilized. D’Leedon seems to be the outlier here with more than 20% drop in average psf prices but that might be transient with developer clearing their stocks fast through lowering prices and deferred payment or “stay-first” scheme. With more buyers expected to enter the market especially when economy picks up further in 2018, more condos might sell out soon.
Mass market properties have generally picked up as well with the exception of The Centris in our basket. Weakness of the rental market probably affected this segment the most which could be the reason behind the performane of Centris. We are quite curious to see the resale performance of J-Gateway, being our indicator for 2nd CBD of Jurong Lake District. It obtained TOP not too long ago with rental statistics out for 1sthalf 2017 but so far there has been no resale transactions.
Overall the residential property market in Singapore has come alive since the start of the year and this is reflected quite accurately in our own MortgageWise’s basket of condos. We hope this basket will give a more “ground-level” picture to supplement your reading of the property market through indices and data just released by the authorities.
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At MortgageWise, we seek to provide thought leadership in the area of mortgage planning in Singapore, taking deep dive into developments and news on mortgages & helping clients track interest rate movements. We do not just go for one-time business with clients but rather choose to build long trusting relationships by giving truly independent advice to the extent of losing the deal. We strive to become the first-choice mortgage partner for homeowners and the creditable distributor of mortgage products for banks and financial institutions in Singapore.