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Punggol EC new launch by CDL in 2019

Punggol EC new launch is the latest and most exciting executive condominium (EC) by City Developments at Sumang Link. It will be the only EC in punggol in 2019.

Background

Sumang Link EC Land Parcel details
Sumang Link EC Land Parcel details

The top bid of S$509.37 million for the Sumang Walk EC site was won by City Development (CDL) and TID Residential. This works out to a record S$583 per square foot per plot ratio, which translates to a selling price of above S$1,000 per square foot.

Launching in 2019, it is likely to be the only executive condominium (EC) to be launching in 2019. We explain the 5 reasons why it will be another sell-out like Rivercove Residences, which was fully sold out in a mere 5 months after its launch in March 2018.

Project name New EC at Sumang Walk (Punggol district)
Developer City Development (CDL) and TID Residential
Address Sumang Walk
District 19 D19
Tenure 99 year leasehold
TOP 2022 – 2023
Total number of units 820
Unit mix 3 – 5 bedrooms (sizes to be confirmed)
Facilities 13 blocks in totalFull fledged gymnasium

50 lap pool and children’s pool

BBQ pits and gourmet pavilion for residents

In this article, let’s analyse the 5 reasons why our analysts at PropertyInvestSG believes it will be another sell out.

1) High demand but limited supply of executive condominium units

As of October 2018, there are no available EC units in the market except for bounced out units. These units are “returned” to the developer should there be a disqualification in family nucleus eg divorce or annulment of marriage that happens.

Below are the latest status as of October 2018 for the ECs launched since 2013.

MOP refers to Minimum Occupancy Period which residents have to fulfil after collecting their keys before they are allowed to sell their units in the open market, except for special cases that have been granted pre-approval by HDB.

Name District Address TOP date Number of units Status
Prive Punggol Punggol Field 17-Jul-13 680 Just MOP
Esparina Residences Woodlands Buangkok Drive / Compassvale Bow 11-Sep-13 573 Just MOP
The Canopy Yishun Yishun Avenue 11 14-Jan-14 406 MOP up in 2019
Austville Residences Sengkang Sengkang East Avenue / Buangkok Drive 22-Apr-14 540 MOP up in 2019
Belysa Pasir Ris Pasir Ris Drive 1 / Elias Road 28-May-14 315 MOP up in 2019
RiverParc Residence Punggol Punggol Drive / Punggol East 19-Jun-14 504 MOP up in 2019
Arc @Tampines Tampines Tampines Avenue 8 5-Aug-14 574 MOP up in 2019
Blossom Residences Bukit Panjang Segar Road 5 Sep 2014 602 MOP up in 2019
Watercolours Pasir Ris Pasir Ris Drive 3 / Pasir Ris Link 31-Dec-14 416 MOP up in 2019
The Tampines Trilliant Tampines Tampines Central 7 6-Feb-15 670 MOP up in 2020
The Rainforest Choa Chu Kang Choa Chu Kang Drive 6-Mar-15 466 MOP up in 2020
Twin Waterfalls Punggol Punggol Way / Punggol Field 2-Jun-15 728 MOP up in 2020
One Canberra Yishun Yishun Avenue 7 / Canberra Drive 19-Sep-15 665 MOP up in 2020
Heron Bay Hougang Upper Serangoon View / 7-Oct-15 394 MOP up in 2020
Upper Serangoon Road
Waterwoods Punggol Punggol Field Walk / Punggol East 1-Dec-15 373 MOP up in 2020
Waterbay Punggol Punggol Central / Edgefield Plains 27-Jan-16 383 MOP up in 2021
CityLife@Tampines Tampines Tampines Central 7 / Tampines 3-Feb-16 514 MOP up in 2021
Avenue 7 / Tampines Avenue 9
Twin Fountains Woodlands Woodlands Avenue 6 / 14-Mar-16 418 MOP up in 2021
Woodlands Drive 16
The Topiary Sengkang Fernvale Lane 22-Mar-16 700 MOP up in 2021
Forestville Woodlands Woodlands Avenue 5 / Woodlands Drive 16 1-Apr-16 653 MOP up in 2021
Lush Acres Sengkang Sengkang West Way / Fernvale Link 30-Jun-16 380 MOP up in 2021
SkyPark Residences Sembawang Sembawang Crescent / Sembawang Drive 10-Aug-16 502 MOP up in 2021
Ecopolitan Punggol Punggol Way / Punggol Walk 29-Aug-16 512 MOP up in 2021
Sea Horizon Pasir Ris Pasir Ris Drive 3 / Pasir Ris Rise 7-Oct-16 495 MOP up in 2021
The Amore Punggol Punggol Central / Edgedale Plains 28-Nov-16 378 MOP up in 2021
Lake Life Jurong West Yuan Ching Road / Tao Ching Road 30-Dec-16 546 MOP up in 2021
Bellewoods Woodlands Woodlands Avenue 5 / Woodlands Avenue 6 16-Mar-17 561 MOP up in 2022
The Vales Sengkang Anchorvale Crescent 2-May-17 517 MOP up in 2022
Bellewaters Sengkang Anchorvale Crescent 3-May-17 656 MOP up in 2022
The Terrace Punggol Punggol Drive / Edgedale Plains 25-May-17 747 Just collected keys
Signature at Yishun Yishun Yishun Street 51 14-Jul-17 525 Just collected keys
Westwood Residences Jurong West Westwood Avenue 24-Oct-17 480 Just collected keys
The Brownstone Sembawang Canberra Drive 30-Oct-17 638 Just collected keys
The Criterion Yishun Yishun Street 51 26-Feb-18 525 Just collected keys
Wandervale Choa Chu Kang Choa Chu Kang Drive 14-Mar-18 534 Just collected keys
Parc Life Sembawang Sembawang Avenue 29-Mar-18 628 Just collected keys
Sol Acres Choa Chu Kang Choa Chu Kang Grove 12 Mar 2018 * 1237 Just collected keys
26 Apr 2018 * Just collected keys
The Visionaire Sembawang Sembawang Road / Canberra Link 14-Jun-18 632 Collecting keys soon
Treasure Crest Sengkang Anchorvale Crescent 14-Sep-18 504 Collecting keys soon
Under construction EC Location Street address Estimated Units
completion
Northwave Woodlands Woodlands Avenue 12 Feb-19 358 Fully soldUnder construction
iNz Residence Choa Chu Kang Choa Chu Kang Avenue 5 Aug-19 497 Fully soldUnder construction
Hundred Palms Residences Hougang Yio Chu Kang Road 2020 Fully soldUnder construction
Rivercove Residences Sengkang Anchorvale Lane 2020 628 Fully soldUnder construction
Sumang Link EC Punggol Sumang Walk 2022 to 2023 Launching in 2019

From the list above, we see there the government had slowed down sales sites for ECs since 2015 and in the recent years.

It had always been an average of 6-7 ECs launched every year, except in 2012 where a bumper crop of 11 ECs were released for sale by developers.

With the increasing affluence of young Singaporean couples and families, the income ceiling cap for an EC was raised from S$12,000 to S$14,000 a month. An EC is hence a viable choice for young families who wish to live in a condominium.

2) The big boom in District 19

Price trend in D19
Price trend in D19

District 19 encompasses Punggol, Sengkang, Serangoon Gardens and Hougang.

The price trend in D19 has been rising since 2011. In October 2010 it was transacting around S$822 psf and in September 2018 it has risen to an average of S$1,268 psf. That’s a 55% rise over the past 8 years, translating to an average rise of 6.7% annually.

Recent transactions in D19
Recent transactions in D19

Rivercove Residences and Treasure Crest are the only 2 ECs in Punggol in the above sales chart and as we see above, some units were transacted above 1,000 psf.

Over on the secondary market, we see projects near the Sumang Link EC transacting between S$945 and S$1,192 psf.

Is Sumang Link EC’s estimated selling price of $1,000 psf still competitive? Compared with the new launches of private condos in D19, naturally S$1,000 psf appears competitive.

When ranked next to resale condos in the secondary market, we see that most of the resale condos in the area have an average median price of S$1,100 to S$1,400psf, except for Prive and The Quartz.

3) Government masterplan of Punggol

Developments in Punggol district
Developments in Punggol district

There has been extensive plans for the next chapter of Punggol’s development in the next five to 15 years and beyond which shall include seafront public housing, an expanded town centre, more green parks and corridors, as well as a pedestrian-friendly heritage trail.

The Punggol Digital District has also been identified as a key element in the government’s plan in Singapore to build a Smart Nation.

In the near term, the government is expecting to relocate cyber security, data analytics, artificial intelligence firms and other digital technologies and key growth industries to Punggol. This is expected to create another 28,000 jobs in the region.

4) And who can resist waterfront living?

Sumang Link EC site view
Sumang Link EC site view

Who can resist affordable waterfront living? Imagine a nice stroll along the serene Punggol Waterway in the evenings or bringing your family to cycle or have a picnic on the weekend.

5) Huge upside in ECs after the 5 year mark

Recent transactions in D19
Recent transactions in D19

For buyers who want to know the capital appreciation of an EC, Prive is an excellent recent example. It is an EC launched in 2010, and TOP in 2013. It had recently attained its minimum 5 year occupancy fulfillment (MOP), which means it can now be sold in the open market to Singaporeans and Singapore Permanent Residents (SPRs).

For perspective, it was previously sold for $660 per sq ft to $690 per sq ft (psf) in 2010 when it was launched.

Assuming the median price at launch for Prive to be S$675 psf, this is an estimated S$270 psf gain for an average unit sold, hence translating to a 40% gain for the first buyer. This means a profit of S$270,000 for the first owner of Prive for an average 3 bedder 1,000 square feet unit!

 
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Posted by on February 2, 2019 in Government Land Sales, Residential

 

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3 prime apartment buildings near Orchard Road sold for $190.5m

3 prime apartment buildings near Orchard Road sold for $190.5m

Three plum residential buildings near Orchard Road have been sold to three different developers for a total of $190.5 million.

Property consultancy firms JLL and CBRE said in a joint statement yesterday that the tenders for the freehold properties in Grange Road, Cuscaden Walk and Hullet Road were launched in October with a total guide price of $185 million. The firms jointly managed the tender exercise, which closed on Nov 2, on behalf of vendors seeking offers for the buildings individually or as one lot.

In September, the three properties, owned by a group of three investment holding firms, were estimated to fetch $200 million in total. The owners were reportedly part of a trust operating in Britain.

grange

Mr Karamjit Singh, international director and head of residential at JLL, said: “These properties attracted interest from a wide variety of parties, including long-term investors and those looking to build serviced apartments, aside from developers.”

A consortium led by Sustained Land is paying $103.8 million for 3 Cuscaden Walk – comprising 11 large four-bedroom apartment units – which has a land area of 21,560 sq ft with a gross plot ratio of 2.8.

This reflects a land rate of about $1,826 per sq ft per plot ratio (psf ppr) on the potential gross floor area, including an estimated development charge of $6.43 million.

A unit of Singapore-listed property and hospitality group Roxy-Pacific Holdings bought 120 Grange Road, an 11-storey block of 18 flats, for $48.5 million or $1,841 psf on the strata area. It has a total strata area of 26,350 sq ft, on a land area of 15,780 sq ft, with a gross plot ratio of 2.1. Roxy-Pacific Holdings executive chairman Teo Hong Lim said: “The allowable plot ratio is 2.1 times and based on the baseline which is close to 2.1, we only need to pay development charges for the bonus balconies’ gross area of additional 10 per cent. As a development site, our purchase price is estimated at $1,463.6 psf ppr.”

Roxy-Pacific also said the acquisition will be financed by internal funds and bank borrowings.

The smallest of the three properties, 8 Hullet Road, was sold for $38.2 million or $2,073 psf to Hullet Development, a consortium led by Mr Patrick Kho of Lian Huat Group.

The site has a 10-storey block of 18 apartments with a total strata area of 18,428 sq ft.

JLL noted that two apartments of 2,680 sq ft and 3,348 sq ft at The Claymore are up for sale by private treaty by the same sellers of the three properties.

Mr Jeremy Lake, executive director of investment properties at CBRE Singapore, said Hullet Development plans to build a high-end development, “given the excellent location… in the heart of Orchard Road”.

Mr Singh said that the results of the tender exercise reflect “confidence in the stability of the high-end residential market which, prior to this year, saw a steady decline in values over the preceding four years”.

Source: The Straits Times

 
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Posted by on January 26, 2017 in Residential

 

Condo resale market active in May 2016

Condo resale market active in May 2016

Resale prices of non-landed private homes rose for the third straight month in May alongside higher sales volumes – signs perhaps that sentiment in the property market is perking up.

Prices of resale private condominium units climbed by 0.4 per cent last month over April, while transactions shot up 35.7 per cent, with an estimated 840 units resold in May compared with 619 in April, SRX Property said yesterday.

“A significant contributor to the increase in volume is the greater number of resales at OUE Twin Peaks under the deferred payment scheme,” SRX noted.

May’s modest price growth follows a revised 0.6 per cent gain in resale prices in April.

Analysts told The Straits Times yesterday that prices appear to be stabilising and “astute buyers” have been active in the resale market.

ST_20160615_WSYSRX15HBQD_2368146

Ardmore Three (centre of featured image) moved at least 19 units last month, according to analysts. Resale prices for non-landed private homes rose across the board in May from the previous month, with the core central region seeing a 0.4% gain, and prices in the city fringe and the suburbs rising by 0.3% and 0.5% respectively.

ERA Realty Network key executive officer Eugene Lim said: “The market could possibly be bottoming, as SRX figures show that resale prices have been rather stable in the past year. However, given the headwinds in the market, we do not anticipate any significant upswing in prices in the short term.”

Prices of resale private condominium units climbed by 0.4 per cent last month over April, while transactions shot up 35.7 per cent, with an estimated 840 units resold in May compared with 619 in April, SRX Property said yesterday.

PropNex Realty chief executive Ismail Gafoor said: “The increasing interest rates could also have pushed them to buy at the current lower prices as compared to waiting longer.”

The rise in resale prices last month was broad-based. Prices inched up 0.4 per cent in the core central region, and rose 0.3 per cent in the city fringe and 0.5 per cent in the suburbs from April to May.

Overall resale prices for non-landed private homes rose 0.2 per cent in May over the same month last year.

OrangeTee senior manager for research and consultancy Wong Xian Yang said: “It seems to suggest that sentiment may be slowly improving. That said, buyers are still very price-sensitive, in part due to the cooling measures.”

One statistic that stood out in the latest data was the 4.7 per cent increase in resale prices in the core central region in May, compared with the same period a year ago.

ERA’s Mr Lim said this was the highest increase in resale prices for city homes since the roll-out of the total debt servicing ratio framework in June 2013. The price rise was largely driven by sales at two completed luxury projects – OUE Twin Peaks and Wheelock Properties’ Ardmore Three – after developers offered steep discounts.

Newly completed projects like these are included in the resale category after they receive their Certificates of Statutory Completion.

Based on caveats lodged in May, OUE Twin Peaks sold at least 66 units while Ardmore Three moved at least 19 units in the month, analysts said. Homes in the city have started to look attractive after a lengthy period of slow sales following a series of cooling measures.

Savills Singapore research head Alan Cheong noted: “Feedback from agents on the ground points to renewed interest in CCR (core central region) properties as many buyers feel that value is emerging in this segment of the landed and non-landed private residential market.”

Analysts expect city homes to continue to see “price support” with the upcoming launch of the City Developments luxury project Gramercy Park.

However, overall resale prices are likely to still face downward pressure owing to the cooling measures, weak economic outlook and the large supply of new homes. OrangeTee expects private resale home prices to dip by up to 3 per cent this year.

Source: The Straits Times

 
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Posted by on June 16, 2016 in General, Residential

 

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Property market perking up

The mood in the real estate sector has been mostly gloomy for a while but sentiment has clearly improved from this time last year with talk that prices could start bouncing off the bottom.

There were 5,510 private property resales in the 11 months to Nov 30, up 20.8 per cent from the same period last year, according to data from the Urban Redevelopment Authority (URA).

Public housing resales are up as well with about 19,000 transactions expected for this year, around 10 per cent ahead of last year, said PropNex Realty.

singapore-property-market

PropNex chief executive Mohd Ismail said: “Prices are generally consolidating. People are confident that even with all the cooling measures in place, the property market is not going to correct very much more.”

The figures indicate that most of the price declines appear to have occurred last year.

Resale prices of non-landed properties dropped 1.2 per cent in the first 11 months of this year, according to flash estimates from SRX Property yesterday.

In comparison, they fell 4 per cent over the whole of last year.

Resale prices even rose 0.6 per cent last month over October, following a 0.6 per cent month- on-month decrease in October.

While last month’s change could be a monthly fluctuation and prices may fall this month, it does not negate the fact that there is a “notable turnaround of events”, noted Savills research head Alan Cheong.

“Many analysts expected resale prices to continue falling well into next year… (but) buyers are coming back to the resale market, probably seeing value for money after waiting for two years for prices to crash, and they did not.”

Similarly, HDB resale prices moderated by less than 2 per cent for the year so far, compared to the full-year fall of over 6 per cent last year.

They rose about 0.4 per cent last month from October, thanks to a 0.5 per cent rise for four-roomers and an increase of 1.4 per cent for five-room homes, according to SRX estimates last week.

“HDB prices may not even fall next year and could grow as much as 1 per cent for the year,” said Mr Ismail. “With increased transactions, there is no reason for prices to continue to slide.”

Private home resales were up across all three regions – they rose 31 per cent year-on-year to 1,226 units in the core central region for the first 11 months, according to URA data.

Mr Cheong of Savills noted that this area’s strength, which began in December last year, began to taper off in August when the haze sent foreign buyers shopping for properties elsewhere.

However, resale volumes were also up elsewhere. Transactions rose 21.5 per cent to 1,650 units in the city fringes and 16.1 per cent to 2,634 units in the suburbs, in the first 11 months.

Many buyers are purchasing for their own use and have come to appreciate that resale properties tend to be larger, said Mr Eugene Lim, ERA Realty key executive officer.

Take a buyer with $1.2 million. He could get a three-bedroom unit at 1,300 sq ft in older 99-year leasehold condos, but the same amount could buy a three-bedroom unit of just over 900 sq ft at a new launch at Adana or Thomson Impression.

Many are buying near schools or their workplaces and are increasingly showing interest in regional centres, including Jurong and Tampines, Mr Lim added.

There could be an even higher number of resale transactions next year, while any more price declines should be marginal, experts said.

(Source: The Straits Times)

 
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Posted by on December 10, 2015 in General, Residential

 

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Couple reject lucrative offers for flat

Couple reject lucrative offers for flat

Step into Mr Brian Chee and Ms Catherine Low’s four-room flat in Punggol, and one is greeted by a steady breeze and stunning views of Serangoon Reservoir, Pulau Ubin and even Malaysia.

Little wonder then that the couple have no intention of selling their 18th-floor flat, even though property agents have come to them with lucrative offers.

Last year, an agent promised them $600,000 for their unit – more than three times the $170,000 they paid for the flat.

But they were quick to refuse.

“We were not tempted at all,” said Mr Chee, a 41-year-old stay-at-home father. “We like the greenery and environment, and it’s very quiet and peaceful here.”

The couple moved into their top-floor unit in Block 167A, Punggol East in 2007. They applied for the Build-To-Order (BTO) flat in 2003.

Mr Chee, a former interior designer, left his job four years ago to take care of their son, eight, and daughter, five.

Being close to nature has another perk, added Mr Chee. The family of four are often able to go cycling together at the nearby Punggol Waterway.

While some of their neighbours made tidy profits from selling their homes, Ms Low is cautious about following their example.

The 38-year-old accountant said: “If we sell, it definitely won’t be cheap to get another flat in a good location. What if we need another loan?”

She added: “The children go to school in Punggol and so, would have to adapt to a new environment if we move.”

But Mr Chee said he has toyed with the idea of selling before.

He said: “If there’s a three-generation flat in a good location, I would consider buying and moving in with my parents.

“My parents are getting old and it’ll be good to take care of them. They can help look after the children too.”

(Source: The Straits Times)

 
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Posted by on August 29, 2015 in Residential

 

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NDR – Increase income ceiling for ECs could hurt mass market condo’s demand

The changes to the eligibility income ceiling announced on Sunday National Day Rally (NDR) could ignite demand for executive condominiums (EC) and intensify the competition for mass market private homes.

Developers of mass market apartments and ECs are targeting the same group of buyers, so experts expect the battle for sales to be stepped up.

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“The same group of eligible buyers have the option to purchase ECs, and buyers today are already taking more time to decide compared with a year ago,” said Cushman & Wakefield research director Christine Li.

“Mass market condos on the market could find it even harder to attract buyers.”

Property agencies spent yesterday fielding enquiries from potential EC buyers, some of whom had been ineligible under the old income ceiling rules, said PropNex team director William Lim.

More expensive mass market homes, and those not near MRT stations, are expected to suffer more. A new or well-maintained completed private home priced below $1,000 per sq ft might not be as affected – the price differential is too narrow and buyers may prefer to forfeit their privilege to buy an EC, said Savills Singapore research head Alan Cheong.

Mr Mohd Ismail, PropNex chief executive, said that many people at recent EC launches – including The Brownstone, The Vales and Sol Acres – had booked units even though they were ineligible at the time and had lodged appeals with the HDB.

“With (Sunday’s) announcement, all these people will benefit.”

The income ceiling for new HDB flats and ECs has been raised by $2,000 each to $12,000 and $14,000 respectively, Prime Minister Lee Hsien Loong said at the National Day Rally on Sunday. The changes kicked in yesterday.

MCL Land’s Sol Acres, which launched last Saturday, has sold 249 units. “There should be more sales in general from the enlarged pool of eligible buyers,” said the company’s chief executive Koh Teck Chuan. Sales are expected to be good for the new EC launch coming up in Yishun – Signature.

Qingjian Realty head of sales and marketing Donald Ng said while more people who had been ineligible have been visiting the company’s developments’ showflats recently, “everyone will have to work hard to see how we can translate those leads into sales”.

Knight Frank executive chairman Tan Tiong Cheng said the policy move would certainly take away some demand for mass market homes.

“For new families and owner-occupiers, an EC is the logical choice between the two asset types, given the savings – a difference of about $300 per sq ft, which could be more than $250,000 – and that you are getting the same location, more or less the same product,” he said.

“The only difference is that there are fewer restrictions in the private property market and more variety.”

More expensive mass market homes, and those not near MRT stations, are expected to suffer more. A new or well-maintained completed private home priced below $1,000 per sq ft might not be as affected – the price differential is too narrow and buyers may prefer to forfeit their privilege to buy an EC, said Savills Singapore research head Alan Cheong.

“But if the pricing is in the $1,000 to $1,200 psf range, the relative gap to ECs in the $800 psf level is relatively large and may influence some to look at ECs instead.”

Overall, prices for both segments may not move much. While private developers will price sensibly to get sales, there is a limit to how much they can cut given higher land costs, said ERA Realty key executive officer Eugene Lim.

Experts also noted that the bulk of EC buyers do not usually earn more than $10,000 a month and often rely on parents’ savings for their purchases, so a higher income ceiling may not substantially change the buyer profile. Those earning more than $10,000 have many options and may have other aspirations, they said.

(Source: The Straits Times)

 
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Posted by on August 26, 2015 in Residential

 

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Leasing woes for private non-landed, public housing

Latest data showed that the leasing market remained anaemic in both the private non-landed and public housing markets.

Rents for private condominiums and apartments edged down 0.5 per cent last month compared with May, according to flash estimates released yesterday by SRX Property.

Year on year, rents last month were down 6.5 per cent from June last year, and are 12.4 per cent lower since their peak in January 2013. They have, in fact, been falling every month since then, with one exception in January this year.

Rents in May have been revised from a 0.6 per cent decrease to a 0.8 per cent drop. Rents in the city and suburban areas declined by 0.8 per cent and 0.7 per cent, respectively, while those in the city fringe areas saw no change.

housing1

Property agency ERA blamed the falling rents on “stiff competition for a limited pool of tenants as more private residential units are completed”. Meanwhile, rents at Housing Board flats last month inched up by 0.1 per cent from May. However, they were down 1.8 per cent compared with the same month last year.

Executive director of property consultant SLP International Nicholas Mak said that the supply of both private and public housing units for lease has been outpacing demand this year.

He pointed out that about 21,800 new private homes will be completed this year, 84 per cent higher than the annual average supply of 11,865 units in the past five years from 2010.

“As a result of this mismatch in supply and demand, the vacancy rate is expected to rise from 7.8 per cent at the end of last year to 9.6 per cent at the end of this year.

“In addition, further downward pressure on rental rates for private housing is expected for 2015 and 2016.” said Mr Mak.

SRX Property’s data showed that rental volume of non-landed private homes rose slightly last month, with 3,777 units rented out, 1 per cent up from the 3,739 units in May.

On a year-on-year basis, rental volume last month was 15.4 per cent higher than the 3,273 units for June last year.

ERA credited the rise in rental volume not to new demand but, rather, to existing tenants moving to get better quality units or cheaper rents.

It said: “Over the last two years, we have seen increasingly more tenants signing 12-month leases rather than the traditional 24 months. They have been doing so because rents are on the decline due to the supply glut as more and more new units are being completed.

“Moving forward, we are likely to see rental volumes remaining robust for the rest of the year as tenants continue to play the ‘musical chairs’ game.”

(Source: The Straits Times)

 
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Posted by on July 21, 2015 in Residential

 

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