IntroductionHey, what's up, everyone? It's your boy, Iggy, from The Investing Iguana, back with another video that you absolutely don't want to miss! Today, we're diving deep into Singapore's property market, and let me tell you, the numbers for September are in, and they're a bit of a rollercoaster! So, if you're an investor, a homebuyer, or just a curious cat, stick around because we're about to break it down! The September Slum Let's dive deeper into what happened in September. So, imagine you're watching a movie and you're waiting for the big action scene, but it never comes. That's pretty much what September was like for selling new private homes in Singapore. It was like everything was moving in slow motion, just like when a movie slows down to show you all the details of an action scene. For the second month in a row, the number of homes sold went down. But don't look so shocked! There's a reason for it. You see, there weren't any big, exciting new housing projects that came out for people to buy. It's like when a movie doesn't have any new, cool characters, so you're not as excited to watch it. And oh, there's another thing! You know how some people believe in ghosts and spirits? Well, in Singapore, there's this thing called the Hungry Ghost Festival, and it happens during the lunar seventh month. It ended in the middle of September. During this time, a lot of people think it's not the best idea to make big decisions like buying a house. It's like how some people won't walk under a ladder because they think it's bad luck. So, the property market kind of takes a little break, like a short nap, during this festival. That's why not many homes got sold. So, all in all, September was a quiet month for home sales, but there were some pretty good reasons for it. 217 HomesIn September, property developers managed to sell only 217 homes, which is a really big drop of almost 45% compared to the 394 homes they sold in August. That's like going from selling a whole bunch of candy bars one month to selling less than half the next month! The Urban Redevelopment Authority, or URA for short, said that there were only 68 new homes put up for sale in September. That's way less than the 590 new homes that were available in August and even more shockingly less than the 2,156 homes in July. So, imagine if you had a lemonade stand and one month you had gallons and gallons of lemonade to sell, and then the next month you had just a tiny bit. That's what happened here. Yikes, indeed! Historical Lows ExplainedAlright, let's dive into some history to understand what's going on. September 2023 was a really tough month for sales, the toughest we've seen since December of last year. During this month, only 170 things were sold, making it the slowest September ever since the URA, which is a group that keeps an eye on this stuff, started keeping records in 2007. Now, if you compare this September to the same month last year, you'll see that sales took a big nosedive, dropping by a whopping 78% from 987 units sold back then. That's a huge drop! And if you're wondering about executive condominiums, which are fancier types of homes also known as ECs, well, they didn't do so hot either. Sales of these ECs went down by almost half, falling 48.4% from 649 units sold in August to just 335 units in September. So, all in all, it was a pretty rough month for sales. Best-Selling ProjectsDespite the fact that there weren't any major new projects being launched, certain housing developments still caught people's attention and made headlines. For example, the recently introduced Executive Condominium (EC) project called Altura has been doing really well. They managed to sell an additional 100 homes, which means they've now sold a grand total of 316 units! That's a lot of happy new homeowners! But Altura isn't the only one that's been popular. There are other developments that have also been selling like hotcakes. Pullman Residences Newton is one of them, and so are Lentor Hills Residences and Grand Dunman. These projects have also been making waves and attracting a lot of buyers, making them some of the best-selling properties around. So, even without any big, flashy new launches, these developments have proven that they have what it takes to be successful and are definitely worth keeping an eye on. Market SegmentationLast month's transactions were pretty evenly distributed across Singapore's three market segments. We had 35% of sales in the Core Central Region (CCR), 32.7% in the Rest of Central Region (RCR), and 32.3% in the Outside of Central Region (OCR). Alright, let's discuss the big issue that everyone is thinking about but not really talking about: the homes that nobody is buying. You see, in specific areas like RCR and OCR, there are more and more of these unsold homes just sitting there. This started to happen a lot after the government put in some new rules in April to cool down the housing market. These rules made it a bit harder for people to buy new homes, so now there are more homes that no one is living in. Because of this, some people who want to buy a home are saying, "Hey, why don't we look at homes that people used to live in?" These are called resale homes, and they're usually cheaper than brand-new homes. The difference in price between new homes and resale homes is getting bigger and bigger, making resale homes look even more attractive. So, some buyers are now thinking it might be a smarter choice to go for these resale homes instead of the new ones that are just sitting there, unsold. Luxury CondosIf you're someone who really enjoys the best and most luxurious things, you might be interested to know that for the third month in a row, no brand-new homes that aren't built on their own land were sold for more than S$10 million. That's a pretty big deal! But don't worry, there's still some action in the luxury market. In fact, 10 of these high-end homes were sold for a price tag of at least S$5 million. The most expensive one among them was a really spacious condo that measures 2,164 square feet. This fancy condo is not just any condo; it's a freehold property, which means you can own it forever! It's located at a place called Dalvey Haus, and it was sold for a whopping S$7 million. So, while there might not be any super, super expensive new homes being sold right now, there are still some pretty luxurious options out there for people who want to live the high life. Buyer's ProfileIn an interesting turn of events, the number of brand-new homes that were bought by people from other countries went up a little bit, reaching 13 houses in the month of September. That means more people from different places decided to buy new homes here. At the same time, something different happened with Singaporeans. The number of new homes bought by people who live in Singapore went down quite a bit, by 42.6% to be exact. Even though fewer Singaporeans bought new homes, they still made up a big chunk of the total sales. In fact, 81.3% of all the new homes that were sold and weren't built on their own land were bought by Singaporeans. So, while people from other countries are showing a bit more interest in buying new homes here, Singaporeans are still the main buyers by a large margin, even if they bought fewer homes this time around. OutlookIn the future, there are three big things you should be excited about: Watten House, which is in a really fancy area, and Hillock Green and J’den, which are in the suburbs. J’den is super special because it's where Jcube used to be, and it's in the awesome Jurong Lake District. A lot of people are going to want to buy homes there. We think that in the year 2023, somewhere between 6,300 and 6,800 brand-new houses will get sold. Oh, and guess what? The prices for these new homes might go up a little bit, like maybe 1 to 3% over the whole year. So, keep your eyes peeled for these exciting projects and changes, because they're going to make a big splash! ConclusionWow, we just went through a ton of information, didn't we? If you thought this video was super helpful and you learned something new about Singapore's property market, make sure you hit that like button really hard and subscribe to the channel. That way, you won't miss out on more awesome content that we have coming up. I'm Iggy from The Investing Iguana, and I'm saying goodbye for now, but not for long! Always keep in mind that being knowledgeable is like having a superpower, especially when it comes to understanding the property market in Singapore. The more you know, the smarter choices you can make when it comes to investing your money in properties. So, stay tuned and I can't wait to see you again in our next video!
IntroductionHey everyone, welcome back to "The Investing Iguana" channel! I'm your host, Iggy. Today, we have a special episode focused on Singapore's housing market, specifically the October 2023 Build-to-Order, or BTO, sales exercise. Whether you're a first-time homebuyer, a young couple, or a seasoned investor, you won't want to miss this. We'll break down the latest BTO launches, the new rules, and what all of this means for you. So let's dive right in! The Big Picture: BTO Launch OverviewOn October 4, 2023, Singapore's Housing and Development Board (HDB) initiated a Build-To-Order (BTO) sales exercise, releasing a substantial batch of 6,800 flats available for purchase. These residential units are strategically distributed across four key towns: Choa Chu Kang, Kallang/Whampoa, Queenstown, and Tengah. Of particular interest are two prime sites, one in Kallang/Whampoa and another in Queenstown, which have been designated under the Prime Location Public Housing model. This initiative marks a significant step in expanding housing options for residents, offering a blend of locations to cater to various lifestyle needs and preferences. Iggy's Insight: If you're a first-time family, this could be your golden opportunity. The rules are getting stricter, but that also means you'll face less competition from buyers who aren't as committed. More First-Time FamiliesFirst-time families with children are receiving special attention in the housing allocation process. To support these families in establishing a stable home environment, they are granted an extra ballot in housing lotteries, increasing their chances of securing a flat. Additionally, a larger number of flats are being specifically set aside for these families. This initiative aims to prioritize the needs of young families, helping them gain easier access to suitable housing. By doing so, the community is taking proactive steps to ensure that these families have the foundational stability they need for a prosperous future. Iggy's Insight: Now is a fantastic time to get into the market if you're planning to start a family. But keep in mind, the pool of such buyers may be small. What are your thoughts on this? Let me know in the comments! Impact of Estate ReclassificationNew residential flats set to launch in the second half of next year will undergo a reclassification into three distinct categories: Prime, Plus, and Standard. This new system aims to offer prospective homeowners a clearer understanding of what each type of flat offers in terms of amenities and quality. Alongside this reclassification, flats falling under the Prime and Plus categories will be subject to a longer Minimum Occupation Period (MOP). The extension of the MOP for these higher-tier flats is designed to encourage long-term residency and foster a more stable community within these premium living spaces. This change reflects a broader strategy to enhance the housing market, making it more transparent and tailored to the diverse needs of the population. Iggy's Insight: If you're contemplating the idea of purchasing a flat near an MRT station or in areas on the city fringe, it would be prudent to make your move swiftly before new classifications come into effect. These upcoming changes could potentially impact property prices and availability, making it more challenging to secure a desirable location. Proximity to an MRT station offers unparalleled convenience for daily commuting, while city fringe areas provide a balanced lifestyle that combines urban amenities with a touch of tranquility. Waiting too long to make a decision could result in higher costs and fewer choices, as these sought-after locations are likely to be the first to experience shifts in market dynamics. Therefore, acting quickly is key to securing a flat that meets your lifestyle needs and financial considerations. Impact of Non-Selection RuleIf you decide to reject a BTO (Build-To-Order) flat offer, be prepared to lose your priority status for an entire year. This newly implemented rule aims to streamline the application process by reducing the number of applicants. Specifically, it seeks to filter out individuals who are not yet ready to make a long-term commitment to homeownership. The intention is to make the allocation of BTO flats more efficient, ensuring that they go to those who are genuinely interested and prepared to move forward. Iggy's Insight: If you're on the fence about committing to a BTO flat, it may be more prudent to skip this application round altogether. By doing so, you preserve your priority status for future opportunities, allowing you more time to weigh your options and make a more informed decision. Robust Demand for 2-Room Flexi FlatsThe demand for 2-room Flexi flats has seen a significant surge, with an average of three applicants vying for each available unit since 2021. This heightened interest has prompted the government to take proactive measures to increase the supply of these flats to meet the growing need. The situation presents a balanced market where both demand and supply are robust, making it an opportune moment for potential homeowners. Iggy's Insight adds another layer to this scenario: If you're single and looking to invest in property, this could be your golden opportunity. The government's plans to ramp up supply means that you have a better chance of securing a flat, making it an ideal time to enter the housing market. Project AnalysisIn Choa Chu Kang, the demand for residential properties is anticipated to be robust, largely due to its strategic location near a multitude of amenities and an MRT station, making it a convenient choice for daily commuters. On the other hand, Kallang/Whampoa is another area that offers close proximity to essential amenities, but potential buyers should be prepared for stiff competition due to its desirability. Queenstown, a well-established estate, comes with a higher price tag but compensates with an array of amenities, including shopping centers and parks. Tengah is an emerging area with significant future potential, especially with the upcoming Jurong Region Line set to enhance its connectivity. Iggy's Insight: When considering these projects, it's crucial to weigh the unique advantages and disadvantages each location presents. Assess your individual needs, whether it's commute convenience, access to amenities, or budget constraints, to make an informed decision that best suits your lifestyle. ConclusionThat's it for today's deep dive into the October 2023 BTO sales exercise. The key takeaway is to be clear about what you want and to act quickly. The rules are changing, but for serious buyers, this could actually be a good thing.
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