{"id":133064,"date":"2022-12-19T09:34:11","date_gmt":"2022-12-19T02:34:11","guid":{"rendered":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/propertyguru-expects-healthy-property-demand-in-2023-new-private-home-sales-down-17-3-in-november-and-more\/"},"modified":"2022-12-19T17:39:35","modified_gmt":"2022-12-19T10:39:35","slug":"propertyguru-expects-healthy-property-demand-in-2023-new-private-home-sales-down-17-3-in-november-and-more","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/propertyguru-expects-healthy-property-demand-in-2023-new-private-home-sales-down-17-3-in-november-and-more\/","title":{"rendered":"PropertyGuru expects healthy property demand in 2023, new private home sales down 17.3% in November, and more"},"content":{"rendered":"


\nPropertyGuru expects healthy property demand in 2023, new private home sales down 17.3% in November, and more13th December \u2013 19th December 2022
\n\u00a0
\nForecasting a \u201cvery healthy\u201d demand for the property sector next year, PropertyGuru\u2019s Chief Executive Officer Hari Krishnan said the company has no plans of cutting any jobs. Meanwhile, Singapore saw new private home sales, excluding executive condominiums (ECs), declined 17.3% to 259 units in November from 312 units in October.
\n\u00a0
\n1) PropertyGuru expects healthy property demand in 2023
\nCEO & Managing Director, PropertyGuru Group
\nPropertyGuru\u2019s CEO Hari Krishnan said the company expects \u201cvery healthy\u201d demand for the property sector next year, reported The Business Times.
\nIn fact, PropertyGuru\u2019s profitability is \u201cexpanding\u201d even as the global economy faces a potential recession.
\nNotably, the company posted a net income of $3.8 million in Q2 FY2022, making it the first Singapore-grown startup to become profitable after listing in the United States \u2013 although on a quarterly basis only. However, it registered a net loss of $7.4 million in Q3 FY2022. Nonetheless, this was still an improvement given that the company recorded a net loss of $9.6 million in the previous year.
\nMeanwhile, the company\u2019s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased from $3 million in Q2 to $5.7 million in Q3.
\nKrishnan said this better reflects the company\u2019s performance since it is an asset-light business.
\nHe also revealed that PropertyGuru has no plans to cut any jobs.
\n\u201cWe know how to manage our cash reserves, we know how to manage our staff, and therefore we will not be doing layoffs,\u201d he said, adding that the company would instead cut investments if the business were to slow down.
\n\u00a0
\n\u00a0
\n2) New private home sales down 17.3% in November
\nSingapore saw new private home sales, excluding executive condominiums (ECs), declined 17.3% to 259 units in November from 312 units in October. On an annual basis, new home sales plunged 83.3%.
\nHuttons Asia noted that the figure is even lower compared to the sales registered in April 2020 when the circuit breaker was imposed.
\nEdmund Tie\u2019s Head of Research and Consulting Lam Chern Woon attributed the softer sales momentum to several factors \u2013 namely, \u201can increasingly tight financing environment, a year-end lull in homebuying activities, and the market holding back for new project launches next year\u201d.
\nThe Core Central Region (CCR) accounted for 57% of the total sales in November, while the Rest of Central Region (RCR) and Outside Central Region (OCR) made up 28% and 15%, respectively.
\nWith locals travelling overseas for holidays, foreigners travelled to the city-state to pick up a home \u2013 effectively pushing the proportion of foreigners acquiring a home within Singapore to 19.7% in November.
\nHuttons Asia said it is the biggest proportion since September 2011 when foreigners accounted for 20.2% of total acquisitions.
\n\u00a0
\n3) Baseline price of mass market condos to exceed $2,000 psf in 2023<\/p>\n

Savills expects mass market condominiums to achieve a baseline price of more than $2,000 per sq ft (psf) in 2023.
\nIt noted that the $2,000 psf price crossover for projects that were highly subscribed in 2022 such as Lentor Modern, Piccadilly Grand and AMO Residences \u201cprovides empirical evidence that the mass market could take such prices\u201d.
\n\u201cThis brings to question whether the price psf measure is the line that potential buyers take when looking at affordability or what is deemed expensive. It also questions the cap set on affordability levels for mass market and executive condominiums (ECs),\u201d said Alan Cheong, Executive Head of Research and Consultancy at Savills Singapore.
\nOverall, Savills sees house prices rising 10% year-on-year in 2022 and 7% year-on-year in 2023.
\n\u201cHowever, if interest rates begin to fall by mid-2023, this could further boost buyers\u2019 confidence and prices may rise by up to 10% year-on-year, instead of the initial projection of 7%,\u201d it said.
\n\u00a0
\n4) Include land cost in BTO pricing to avoid stress on public amenities, infrastructure<\/p>\n

Property analysts have supported the Government\u2019s stance of including land costs to determine the price of Build-to-Order (BTO) flats, saying it was necessary to ensure the stability of fiscal revenue and the property market, reported TODAY.
\nHuttons Asia\u2019s Senior Director of Research Lee Sze Teck said including the land cost to BTO prices would also avoid stress on public amenities and infrastructure.
\n\u201cIf land costs are disregarded, it may mean that the costs of a BTO flat are homogeneous regardless of location,\u201d he said.
\n\u201cBuyers will then likely zoom in to a more desired location such as central locations since the price is the same. Certain locations may not even see buyers.\u201d
\n\u201cThere will be more stress on public amenities and infrastructure when one area becomes more crowded than another area,\u201d added Lee.
\nHowever, it would be good for the Government to be transparent with the housing subsidies given to avoid unnecessary public speculation, said CIMB Bank Economist Song Seng Wun and Chris International Director Chris Koh.
\n\u00a0
\n5) Trendale Tower is back on the market for $168 million
\nTrendale Tower, a 20-storey freehold residential development at 79 Cairnhill Road, has been relaunched for sale via public tender with a reserve price of $168 million.
\nExclusive marketing agent Savills Singapore noted that the reserve price \u201cworks out $2,257 per plot ratio after factoring in the 7% bonus GFA for balconies\u201d.
\nIt added that the development charge payable for the bonus GFA is about $7.6 million.
\nFeaturing 18 apartment units, the development occupies a 21,708 sq ft site zoned for \u201cResidential\u201d use under the 2019 Master Plan with a height limit of up to 36 storeys.
\n\u201cBased on URA\u2019s Gross Floor Area (GFA) verification and Development Baseline record, Trendale Tower has an existing GFA and Development Baseline of both approximately 72,691 sq ft (PR 3.348),\u201d said Savills.
\n\u201cA pre-application feasibility study is also not required by LTA for the site redevelopment of up to 103 apartments.\u201d
\nThe tender for Trendale Tower closes on 12 January 2023.
\n\u00a0
\n6) No proposal received for Jurong Lake District integrated tourism development<\/p>\n

The Singapore Tourism Board\u2019s (STB) tender seeking proposals to build a tourism development project within Jurong Lake District drew a blank, reported The Straits Times.
\n\u201cWe understand from stakeholders that the geopolitical and the uncertain economic environment in the earlier part of the year affected the response to the request for proposals,\u201d said STB\u2019s director for attractions, entertainment and tourism concept development Ashlynn Loo.
\nMeanwhile, the absence of proposals came as no surprise for Dr Kevin Cheong, Managing Partner of Syntegrate, which is a tourism and destination consulting practice.
\nHe pointed out that development with the size that STB had in mind \u2013 a maximum gross floor area (GFA) of 84,000 sq m \u2013 would usually appeal to retail-commercial developers in Singapore.
\nHowever, such developers have no experience in conceptualising, designing and operating the minimum 35,000 sq m of attraction space required by STB, he added.
\n\u00a0
\n7) 2023 mortgage outlook: First-time home buyers to be hit most by interest rate hike<\/p>\n

With the US Federal Reserve raising the benchmark lending rate by 0.5 percentage points on 14 December, policymakers believe rates would land higher than expected at 5.1% next year.
\nHowever, PropertyGuru Finance Vice President Paul Wee does not expect the latest change to significantly affect the interest rate on mortgages, reported CNA.
\nThis comes as the 5.1% projection \u201cdoes not differ much\u201d from the market\u2019s expectation that interest rates would reach 5% in 2023, he said.
\nMeanwhile, Dr Tan Tee Khoon, Country Manager at PropertyGuru Singapore, expects first-time home buyers to be hit the most by the potential hike in mortgage rates.
\n\u201cThey are likely to rework their sums, exercise prudence and right-size their property purchases,\u201d he said.
\n\u201cThey could also defer their decision to purchase and opt to stay with their parents or explore leasing accommodation, including co-living spaces, in the meantime. Those who are eligible for executive condominium purchases may explore this particular asset class given the housing grants available and also the possibility of deferred payments,\u201d added Dr Tan.
\n\u00a0
\n8) Ming Arcade sets new record with $172mil sale price
\nMing Arcade, a seven-storey commercial complex along Cuscaden Road, has been sold to the Royal Group of Companies for $172 million, revealed exclusive marketing agent Savills Singapore.
\nThe purchase price set a new benchmark in Singapore, exceeding the previous record of $2,910 per sq ft per plot ratio (psf ppr) paid by Hong Kong-listed Shun Tak Holdings for the sale of Park House in 2018.
\nSavills noted that Ming Arcade features 88 strata units and three basement levels. It occupies a 12,132 sq ft site that is zoned for \u201cCommercial\u201d use with an existing gross floor area (GFA) of 55,046 sq ft, which is equivalent to a plot ratio of 4.54. The freehold site also comes with a height limit of up to 20 stories.
\nThe Royal Group of Companies is a Singapore-based family office that is founded by its chairman Asok Kumar Hiranandani. The company plans to redevelop the newly-acquired site.
\n\u00a0
\n9) S-REITs rebounded in November as total returns increase by 5.7%
\nInterest rates and economic growth within key Asian markets helped S-REITs rebound in November, with total returns rising 5.7%, reported Singapore Business Review citing SGX.
\nThis is a reversal from the 5.6% drop registered in October.
\n\u201cInstitutional investors net sold (-$95.6 million) while retail investors net bought (+$54.0 million) of S-REITs in November 2022,\u201d said SGX.
\nSGX noted that hospitality trusts with Singapore assets such as CDL Hospitality Trusts, CapitaLand Ascott Trust, Frasers Hospitality Trust and Far East Hospitality Trust posted significant improvements in occupancy and revenue per available room (RevPAR) during the last quarter.
\nIt attributed the hospitality REITs\u2019 improved performance to the pent-up demand for overseas travel and the return of large-scale events as well as the MICE (meetings, incentives, conventions and exhibitions) industry.
\nSingapore saw international tourist arrivals increase for a ninth straight month in October.
\nLooking for a property in Singapore? Visit PropertyGuru\u2019s\u202fListings,\u202fProject Reviews\u202fand\u202fGuides.\u00a0
\nFarhan Shafie, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this story, email: farhanshafie@propertyguru.com.sg.\u00a0
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…PropertyGuru expects healthy property demand in 2023, new private home sales down 17.3% in November, and more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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