Monday, July 18, 2011

$918k for a HDB apartment in Pasir Ris?

$100k-plus cash premiums offered for Tampines flat
By property_guru

Following our breaking story on the asking price of $900,000 for an executive apartment in Pasir Ris, PropertyGuru received an exclusive tip-off from a property agent representing Knight Frank.

The agent, who only wants to be identified as Ravin, said he sold an executive mansionette flat at Block 151 Tampines Street 12 in March this year for $772,500.
According to the valuation report, the flat had a market value of $625,000 in December last year.

It was sold above valuation at $147,500 in March this year. "We were marketing this property over two Sundays and had about 50 plus buyers come for the viewing. Almost half were able to offer COV of more than $100,000," said Ravin.

According to Ravin, the profiles of the potential buyers were Singaporeans in their late 30s to late 50s.

About five were able to offer a COV of more than $125,000.

"These buyers had the cash as most had sold off their landed property, private apartments, or HDB flats with good profits. Most were business owners," said Ravin.
Record COV?

Despite the high COV the mansionette achieved, it will soon be overshadowed by the executive apartment in Pasir Ris should it be able to command the asking price of $900,000, which had shot up to $918,000 after the story broke.

Taking recent transactions as a benchmark valuation price in Pasir Ris, executive apartments in the area are about $600,000.

The new asking price of $918,000 will translate to a record COV of $318,000.
COVs unlikely to go down

Despite the cooling measures, experts say COVs are unlikely to go down.
"The average COV now is about $30,000 to about $40,000 (or) to $50,000 in better and prime locations. I believe that's because of the demand in the market, which comes from newlyweds as well as new PRs and new immigrants coming to Singapore. Although there's a lot of BTO coming up, COV unfortunately will still be going up in the near future," Mark Teo, senior group division director at ERA was reported as saying to Channel NewsAsia.

Others say the new Build-to-Order announcement will ease pressure from the resale market.

"COV prices are bottoming out at around $21,000 and many first-time buyers will still be priced out of the resale market for this reason. Hence, they will definitely find great relief in this bumper crop of BTO flats," said Adam Tan, PropNex corporate communications manager.

New BTO flats eases pressure from resale market
The new HDB flats wil comprise seven BTO projects spread across five estates, namely Sengkang, Tampines, Jurong West, Bukit Panjang and Yishun.
Most of the flats on offer are four and five-room units priced at $217,000 and $274,000 respectively.

According to HDB, it is on track to deliver 25,000 BTO flats in 2011.
The supply of new flats is expected to ease pressure from the resale market which could see their prices falling in the next six months.

This is partly due to economists' recent revision of weaker economic growth in the second quarter and a 25 percent drop in private property transactions in June.
The Resale Price Index (RPI) was 179.9 points in the second quarter, an increase of 2.9 percent over the first quarter.
Priciest flat in Pasir Ris goes on sale for S$900000

Following Sim Lian Group’s highly controversial Design, Build and Sell Scheme (DBSS) project in Tampines, the Housing and Development Board (HDB) is once again under fire after an eye-popping listing was posted on PropertyGuru.

The listing shows a 1,528 sq ft HDB executive flat in Block 780, Pasir Ris Street 71, with a selling price of S$900,000.

The unit’s asking price is higher than the average selling price in the area, considering that it is a public housing project situated in a non-prime area and has no facilities.

It is also not within walking distance to White Sands mall or Pasir Ris MRT station.

Roza Sure Bagus, Managing Director of Sure Bagus (Asia) Pte Ltd, said, “The asking price of S$900,000 is definitely way beyond the market price. It is certainly a one-off case which if the agent is able to get, it will be a record price for Pasir Ris.”

Roza sold a flat in Pasir Ris recently for S$696,000, which is S$96,000 above valuation.

“The S$96,000 (in) above valuation is still okay, provided the house has a good view, high floor and good interior. Nevertheless, if they are buying at S$96,000 above valuation, the buyer’s taste in the d├ęcor may not be the same. They may renovate everything.”

Caveat data reveals that the average psf pricing of similar properties sold in the area this year is between S$400 psf and S$500 psf.

The asking price for the executive flat translates to S$589.01 psf, which is well above the market price.

However, Roza believes there might still be a willing buyer.

“For a person who buys such a flat, he might buy it for sentimental value. Perhaps, it has a breathtaking view which he may not be able to get elsewhere.”

“The buyers are likely to be from the private property market who have already sold their properties or who were en bloc owners who made a huge profit. It is unlikely they will take any loan. They would buy this unit in cash, full settlement,” said Roza.

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