HDB to Issue Fix Rates Notes to Finance Construction Programme

The Housing & Development Board (“HDB”) has issued S$700 million, 7-year Fixed Rate Notes (the “Notes”) under its S$32 billion Multicurrency Medium Term Note (“MTN”) Programme. This is used to finance the construction of the multiple BTOs that has been up for sale as well as in future launches. With the establishment of new BTOs located in different parts of Singapore, HDB is looking to source out for funds for the construction of its projects. Please see the latest construction of Penrose Condo. Penrose condo floor plans can be obtained here.

The Notes have a coupon of 1.76% per annum payable semi-annually. The Notes were issued on 24 February 2020 and will mature on 24 February 2027. It is noted by Analyst that the notes issued are very stable as they are from HDB and hence highly sought after my investors. Investors also can earn from the interest which is paid 2 times a year and therefore have cash flow making it one of the most highly sought after investments.

However, analyst note that the notes issued are in denominations of $250,000 and hence are very high and suitable for investors who have a bigger budget for investments. Approval is already underway for the bonds to be issued to the market and Admission of the Notes to the Official List of the SGX-ST and quotation of any Notes on the SGX-ST is not to be taken as an indication of the merits of HDB, its subsidiaries or the Notes.

It is noted that the notes will be issued through DBS, Maybank, Standard Chartered and United Overseas Bank. HDB from time to time will issue bonds to finance the construction of its projects. HDB is committed to build houses for the masses and to fuifill its main aim of providing every household with affordable housing.

 

Bangkok Condominium Market Hit Hard with Empty Apartments by Covid 19

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The new corona virus this hitting the world this month has taken a toll on another victim. This time, it is in Thailand. Bangkok’s condominium market is now in the limelight lately as there are fears that many of the apartments are now sitting empty in the face of restricted travel from China. For example, it is noted that Thailand’s property sector might be the next victim as many of its chinese investors face restricted travel and hence do not visit Thailand’s real estate. This is especially true for Bangkok’s luxury segment where chinese investors made up the bulk of the foreign property purchase in Singapore. Please see Penrose Condo Prices by City Developments in this environment. Penrose Condo will be for sale soon.

Based on analyst’s estimated, the number of foreign investors that are looking to buyer properties in Singapore might be restricted now and sales should remain subdued for the rest of the year given that chinese have restricted access to thailand and there are attempts by the Chinese government to restrict capital outflows. Despite this setback, the Bank of Thailand is committed to prop up the country’s real estate sector by easing the lending criterias to developers in the residential condominium sector. There are also attempts to push local Bangkok buyers to buy the properties but demand has been subdued so far given that the local earning power is not as strong as overseas Chinese investors which have flooded into the market since Thailand opens up its real estate to international investors.

However, Thailand developers are still very cautious despite the government opening up its credit facilities because oversupply is definitely still a concern as previously most chinese investors has bought it for investment rental. However, with lesser traffic now into the country, renting out apartments in Thailand has obviously become a concern and hence the aim of having a property for rental does not seems to be feasible anymore. Also, GDP for the country has dropped as well and there are alot more brand new units sold previously that are now competing for tenants as well. These apartments were bought by Chinese and overseas investors including Singapore before the Covid-19 virus.

Latest BTO Exercises by HDB Larger Layouts Preferred

The latest BTO Exercise by Housing Development Board shows that the bigger units are more popular compared to the smaller units and that Canberra Vista which is the latest development next to Canberra MRT Station is the most popular. Canberra Vista, the Build-To-Order (BTO) project in Sembawang, for instance, saw over 10 applicants applying  266 units of five-room and three-generation flats as well as the bigger 5 Bedroom flats. It is note that because of the location, smaller flats such as 285 four-room units, attracting over six applicants each looking to secure a home in the development. Please also see the developer for Penrose which is Guocoland. Penrose project details will be for launch soon.

It is not just in Sembawang. Toa Payoh HDB Launch, competition has also been stiff, with the 1,211 four-room flats offered receiving over 10,000 applications for each of the units. The four-room flat is the largest flat type offered in the two BTO projects – Toa Payoh Ridge and Kim Keat Ripples – in Toa Payoh. The location of the developments are very popular as it is located between Braddell and Caldecott MRT stations.

One of the reasons why BTOs remain popular in Singapore is also because of the pricing. Housing Board flat prices are overestimated by the public, and the majority of prospective flat buyers are willing to pay more than the current average prices because it is relatively newer and there are more facilities in the development. Many people thought that BTOs are more expensive than resale but the fact is that BTOs are fairly reasonable priced.

Singapore Budget Announcing Soon to Deal with Global Weakness

 

The latest budget announced by the Singapore government highlights the weakness of the Singapore economy due to the coonavirus outbreak that might affect different segments of the market. As Singapore is a export market and therefore dependent on many of the trade balance factors that is surrounding the city state, there might be a large impact on the Singapore economy.The national budget is announced to keep track of the expenses by the government and also to allocate funds who are more in need to keep the sector afloat. With the budget announcing soon, we can look at more details with regards to Penrose floor plans which will be released soon to the public. More info can be found here.

The increased economic threat can be felt as China’s consumption might be dropping due to the fact that many are now home bounded and thus unable to spend. There is also the thinking that the economy is dropping and hence more should save at home. The budget will also be used for some more resources on healthcare to deal with the coronavirus that is spreading in the city state. Previously, Sars relief package was introduced which allow property tax rebates as well as a bridging loan programme for small and medium sized companies to help them deal with cash flows with regards to rental as well as employee salaries.

Aside from specific sectors such as hospitality and tourism that have already weakened as countries limit travel into the city state, it is expected that broader consequences to the economy will be more severe. He noted that a hit on China’s economy will affect the global economy, with Singapore surely impacted.

Singapore Showflats Launching Despite Coronavirus Worries

The recent coronavirus has dampened the demand for city travel and it is urged by Singapore property developers that measures can be put in place to remove the property cooling measures in an effort to maintain property prices in Singapore. The recent coronavirus has reduced the demand for properties in Singapore and many developers has already feel the heat from lesser property showflats visit and even lesser demand for properties. Showflats will be launching in Singapore including Penrose Showflat located at Sims Drive by CDL.

The scene is also not restricted to properties as luxury retail brands in Singapore are already feeling the heat as there is lesser shoppers that are walking around the shopping centres in Singapore. Chinese tourist account for more than 20% of Singapore’s tourist and these visitors spend a good amount of money in Singapore including shopping and eating at restaurants. Chinese tourists were the top spenders in the first half of 2019, spending close to $2 billion on shopping, accommodation, and food & beverage including branded items. Most of it was spent on shopping though.

With millions in China under an lockdown and a ban on Chinese tour groups and recent visitors to China by the local authorities, tourist arrivals especially from China are expected to slow in 2020. The ban on tourist is also extends to transit passengers and this has a huge impact as well. This also affects property purchases as a huge percentage of buyers in the Core Central Region (CCR) of Singapore are from the mainland China and therefore it will be affected.

Experts also note that there are many new launches coming out in the market soon and this year, many of the launches will be in prime Districts of 9, 10 and 11 which are highly sought after by investors from China. Despite the weaker sentiments, it is noted that developers are still going ahead with many of the new launches just that there will be temperature screening as well as hand sanitizing that will be put in place at the showflats in an effort to maintain hygiene.

Wuhan Virus Does not Damn Sentiment to Visit Showflat

With the increase in the number of confirmed cases of Wuhan coronavirus during the previous week, some real estate developers in Singapore launched new housing projects ready for transmission after the Lunar New Year, when it was considered whether to follow up or pause.

It happened when things were bad all over the world. The Ministry of Health said in a report every day that the number of cases of Wuhan coronavirus in Wuhan remained at 18 without new evidence. None of the 18 cases reported recently were fundamentally ill. Each of them is still in stable condition, and most of them are improving. The Virus does not seem to affect showflat viewings lately and showflats are still very crowded now. Please see Penrose showflat located at Sims Drive by CDL.

The real estate developer cannot send a commitment often due to the costs of A&P listings. The opportunity to get out is that this amount is spent on the initial transmission, and people do not attend, because that round of mollusks at first would have been consumed without completing the sales necessary to continue this momentum in the coming months.

Delaying the submission of a task is also not the best option, mainly if all certifications are obtained. The danger is telling the truth, much higher. It is not just a five-year timeline in which developers have to sell their promises. The problem is that due to the delayed transmission of the entrepreneurship process, the essential advantage of the engine it can have is weakening.

One of the real estate developers who followed up on their online preview and application on January 31 was Hoi Hup Realty, a joint effort partner, Caucus of Malaysia, and Sunway Developments. The joint effort opened the sales fair for the official project of 496 units, Parc Canberra, that similar day, and at the end of the night, some 1,500 people had visited the sales presentation.

Inspired by the modern Bistro in Melbourne, Australia, a future sales fair and club in Park Canberra will have a space-style roof. Similarly, each owner of Parc Canberra will receive a Nespresso espresso machine in his unit. The kitchen appliances are from Bosch, while the toilets and accessories are Hansgrohe and Duravit.

At this time, they are debating whether they should stop our preview, but they feel we should not leave. In spite of everything, life must continue with as little disorder as possible with all the essential precautions to guarantee everyone.

Due to popular demand, the sales fair opened one hour at 10 a.m. instead of 11 a.m. from February 1. At 9 p.m., 2,200 visitors saw the sales fair. Without a doubt, some initially withdrew but changed their views after seeing the set and the precautions the developer had taken.

All visitors must register at the recruitment store before entering the sales offer. They should obtain their temperatures with a staff member and complete the contact after the disclosure structure. This was done during severe acute respiratory syndrome 17 years ago. In addition to the exact details of the communication, visitors must state whether they have ventured to visit China in the past two weeks or if Chinese visitors live with them. Those who have been denied entry to the sales fair.

For greater hygiene control, the developer has developed several detergents and frequent cleaning of the sales screen and display platforms. Among the visitors to the sales fair, the number of exposed faces wearing the facial veil was reduced by approximately 10 to one. Since this is an EC project, the buyers are mostly Singaporean.

Latest Transactions in January Show Increase Confidence in Real Estate

 

Penrose Condo Location at Sims Drive

In Singapore, there were residential transactions that have been publics. The dates of these transactions range between January 7th and January 14th. All of the transactions have been completed and the deals are done. The latest developments also see that many buyers are optimistc about the real estate market in Singapore and it is one of the best times to buy into real estate. City fringe developments seems to be highly sought after. Please see the Penrose location which is located at Sims Drive near to Aljunied MRT Station

The transactions in Singapore were broken down by the post districts. The City and the Southwest are in zones one to eight. The Ochard, Tanglin, and Holland districts are numbers nine and ten on any charts.  The large district of Newton, Clementi, and Bukit Timah are zones eleven and then zone twenty-one.  The MacPherson and Geylang areas are twelve to fourteen.  The East Coast of the Singapore area is zones fifteen and sixteen.  The Changi and Pasir Ris are zones seventeen and eighteen. The Serangoon and Thomson areas are numbers nineteen and twenty.  The western part of the areas in zone twenty-two to twenty-four. The Northern part of this region covers zones twenty-five to twenty-eight.

Looking at the chart on deals that were completed a person can find the location of the residence and the areas of the country that they were purchased in. This information also gives the property type that was involved in the sales. There are detached properties that were sold and continuums. Looking at the information that was provided about the transactions there are mostly apartments that are involved in the transactions. Due to the large population, many people live in apartments since they take up less land.

There are terms of the lease that are listened to as part of this information. The most common term for the least is 99 years. This is longer than the average person will live so they will have their residence for life. The sale date is listed. Since this report begins on January 7th this is the date listen as well as the other dates up to January 14th.

There is information on the property that was involved in these transactions. The land and the square footage of the property is included. This is released in square feet. The property ranges from around 700 square feet to over a thousand square feet based on the size of the plot and the size of the property.

There is additional information that can be found here. The transaction price or the price that a person paid for the property is listed. This will vary based on the location and the size of the property. Usually the larger the property the more expensive it will be but location can also have a big impact on the price of the property. The unit price is listed next o this. A person will be able to see the site per square foot paid for the property.

The completion date is on the list. There are some properties where the completion date is listed as unknown if this information was not able to be found. The type of sale is listed. The majority of these properties were resales. This information can help a person see what the average prices for homes are going for and make informed decisions on the market.

Paya Lebar Airbase Undergo Transformation

Before we look at the future application of the Paya Lebar Air Base, we will let you know. It was a focal point for Malayan Airlines at this time, and the airline made its first flight outside of Southeast Asia in 1958, using a DC-4 chartered plane from Qantas, traveling to Hong Kong. The turboprops were introduced in the following years, and the name was changed to Malaysia Airlines. In 1962 a joint air traffic control department was established in Singapore to provide military air defense deployment. During that time, the British plane Brittany Eagle provided transportation to the British army. Comet 4C was regular traffic, and the new VC10 seemed to reduce flight time, unlike a 24-hour break from Britannia. Paya Lebar Airbase is located near to Sims Drive. Please se Penrose location at Paya Lebar.

In 1966, the organization focused more on Singapore, bought Boeing 707, based in that country, and renamed Malaysia-Singapore Airlines, with eminent yellow garments. Its main center has become Paya Lebar, and the departments have begun to communicate more with North Asia. The Singapore audience will have the option of presenting tips on the coming application of the Paya Lebar Air Base, that will be moved from 2030, through a contest resolved by URA, announced today. Sims

The Paya Lebar Air Base, is going through 800ha, and there will be the possibility to change the site and the surrounding industrial housing in a new city of sustainable living with services for future occupants, as expressed by a vital employment center in the region ” for URA. ” Participants can submit a suggestion for one of the three competition topics. On the first topic, the conceptual master plan, participants will develop general ideas on how to rebuild the air base and surrounding industrial areas in a unique community that can live sustainable during the 1930s and its past. Under the second theme, Transforming the track, participants must redesign the area as a community space that is beneficial for all ages.

The third theme is called the Rejuvenate Paya Lebar Airport.The theme needs participants to create a novel area with tips to reuse the initial structures of the airport, including the control tower, and carriers. To Transform the track, participants must suggest methods by which they can extend the extensions of the 3.8 km track in a public space so that everyone is equal and capable.

The rebirth of the Paya Lebar airport revolves around providing another life lease to a group of old airport buildings, which include the terminal structure, control tower facilities, and transport poles. The proposal could consist of the expansion of new structures and public spaces, in coordination with existing structures. The future change of the Paya LebarAir Force Base provides an energy fabric that is conceivable for us to make an ideal city with ample public areas in Singapore. Through the competition of ideas, it is believed that audience members can let their thinking fly and participate in drawing another vision of this future space.

Department Chief Lee Hsien Loong first announced the arrangement for the relocation of Paya Lebar Air Force Base during his speech on National Rally Day 2013. During the 1950s, Singapore’s initial airport was based on location. Operating somewhere in the boundaries of 1981 and 1955, the old Paya Lebar airport took a position on the supersonic flights which will flew between Singapore and London in 1970s. Many of the previous airport structures remain closed today.

Mortgagee Listings Increase in 2019

Over the years, we have never witnessed the sudden increase of mortgagee listings like 2019. There was no doubt it was an unexpected occurrence. You might be wondering what boosted this increase. Industrial, retail and residential segments have been attributed to boosting the unexpected increase. It is good to know that these details were released recently into the popular Knight Frank Market. What was the exact number of auction? The number of the auction has been increasing day by day. By January 2019, they had climbed to about 1,380. Unfortunately, there was a sudden fall in success rate auctions. Please see Penrose Project Details for more information with regards to the CDL Project.

What are the factors behind the rise of these listings? There have been more applications for bankruptcies. In addition, the overall vitality has continued to increase in the equity markets. In a real sense, you can be able to see that the slowing economic growth and the recent trade war between China and the United States are some of the factors behind this. Debts have been accumulating day by day. This has led to a fall in top-line growth.

As a result of these occurrences, many owners have been forced to default on mortgage payments. Do you often pay attention to the property market? You can agree with me that indeed this trend is quite similar to the 2014 scenario. It is good to know that between 2014 and 2017 there was a surge in mortgagee sale listings. The main factor behind this is high retrenchments. Away from that, interest’s rates were hiked while rental income dropped.

Do you know that mortgagee sales have been rising for the last couple of years? This is the third consecutive year. Although the listings of landed residential property were quite low in 2014, this did not hinder them from increasing to about 100. At the same time, those with asking price rose to 42 listings.

The rise in listings of the property was observed in 4 prime districts. The slower residential market can be attributed to the increase in the number of listings. Many people were held back from purchasing properties. Stamp duties and loan to value ratio is one factor that prevented potential buyers from making a purchase.

This happened more so to people who were looking for residential properties that commanded higher price quantum. As a result, properties were to be languished for a longer period of time in the market. You might be aware that people who were unable to hold on their properties turned into mortgagee sales. This has been the case for very many years.

Property under mortgagee sales underwent more rounds of auctions. This happened sometime before they were transacted through private treaties. These listings have continued to dominate other popular districts even in 2019. The financial cash flows were greatly affected by the uncertain external environment that was experienced in 2018.

Demand for Industrial Property Rises Due to Flight to Quality

According to Colliers International’s real estate professional Dominic Peters, the demand for industrial real estate in Singapore continues. Many individuals are looking for high-quality examples, but the demand far outweighs the supply. Additionally, the occupancy rate for all Singapore industrial space is down one-tenth of a percentage point to 89.2%. The price index of all of the industrial space was down by two-tenths of a percentage point as well. Please see a Penrose Price Details here.

Of course, the hardest-hit seemed to be in the single-user factory category. They saw a larger drop of at least 0.3%, with the most notable losses occurring in the fourth quarter of 2019. The reason this happened was that the occupancy rate for factories has been continuously dropping by 0.1% on a yearly basis. It was bound to catch up to them sooner or later. Tricia Song, who is head of the research department for Collier International, noted that one of the reasons for this phenomenon was because of net supply outstripping new demand.

Brenda Ong, who is a real estate executive at Cushman and Wakefield, has high expectations for the industry. She thinks that the factory sector will even out for the 2020 rent. She is especially optimistic about the multi-industrial factory rent market.

“The one-user factory market will rebound from some negative publicity, and it will see industrialists either give up or change their strategy and decided to put forth a reduced footprint,” Ong said. “Moreover, we are already seeing warehouse rents stabilizing and we expect that they will marginally increase as a healthy demand returns.”  Indeed, her fellow associate Desmond Sim believes that this and the fact that domestic exports are going through expansion for the first time since February 2019 is a good sign that an economic recovery is on the way.

Unfortunately, there are other real estate experts who simply do not share his optimism. Tay Huey Ling is one individual, and he said the following: “The industrial rental market could indeed experience a turnaround, but it is, of course, beholden to external circumstances. Additionally, such things as value-added industries are expected to outperform.”

Interestingly enough, the Business Park category had rents increasing by 1.3%. This is in addition to the total occupancy in all of these buildings also increasing by a 1.3% margin.

“Business Park rents are expected to increase due to supply and demand,” Colliers’ Peters stated. “We also expect that centrally located properties will be in higher demand and be able to command higher premiums. On the other hand, properties that are further away from the MRT stations will have some serious difficulty in attracting tenants, even if they have lower rent premiums.”

Another thing that calls for optimism would be inherent in the fact that at least five out of the seven new developments are being purposely built and have already gotten occupants to sign up for space even though they are still in the construction stage. Such things as the construction of new 5G networks will also probably increase the demand for factories making semiconductors.

Taking all of this into consideration, there is no reason why Singapore real estate professionals shouldn’t have at least guarded optimism.