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Singapore Property Market 2nd Half 2015

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.  This would then allow investors to see the actual variation in prices over time for particular condos.  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 corresponding period.

singapore property market 2nd half 2015

It is difficult to draw any conclusions for the 2nd half of 2015 based on this set of data but its seems prima facie that prices in luxury segment and high end residences in the famous district 9/10 of Orchard, River Valley have reached bottom with one condo even clocking double-digit increase in ave psf achieved of 11.3% – Cosmopolitan in Kim Seng Road. In the investor zones we track, only Sentosa Cove seem to continue on the downtrend along with condos like Marina Bay Residences dropping over 7% in average psf. Another interesting observation is the sudden flurry of transactions at One-North Residences this half-year where prices slip close to 7% which seem to suggest buyers seeing value at current prices.

We will not read too much into the highest increase of 15.6% registered by Bedok Residences as the 6-month prior average of $1230 psf was made up of one single transaction.

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The highest psf shows how likely a particular condo will achieve “extraordinary” price or surprise on the upside usually in a one-off transaction. In this 6-month period we do have such transactions at Orchard Residences (right above Orchard ION), Soleil@Sinaran condo and The Sail. In particular the buyer at The Sail is prepared to cough out 22% ($2328 psf) above the average of $1898psf. This unit is a 2-bedroom 936sqft unit above 60th floor and I will not be surprised if it comes with spectacular view of Marina bay. Such outlier transactions are usually more likely in areas where demand is driven by foreigners and less likely in the outskirts.

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.

 

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About Darren Goh

Darren Goh is the Executive Director of MortgageWise.sg, a thought leader in the Singapore mortgage industry, with frequent interviews and quotes by the press - Business Times, Straits Times, Zaobao and EdgeProperty for his views on the latest mortgage trends. He is an avid property investor with careers in consumer banking & luxury real estate before becoming a successful entrepreneur with multiple business interests.
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