The Master Plan of Singapore has an undulating effect on the property market. Property prices in CCR overtook RCR since 2003 with the release of URA Master Plan 2003 that brought about new developments in CCR. With big plans unveiled, this report aims to summarise and evaluate the implications and benefits of the latest Master Plan on the property market.
New projects made up two-thirds of overall sales in 1H2013. One reason is that the median price of a new unit in the primary market is now as much as 19% lower than the secondary market, a stark reversal compared to pre-2011. Apart from market conditions, picking the right location is key to a new project’s profitability upon completion.
Two pairs of adjacent sites are up for sale this year in an initiative to promote prudent bidding among developers. The adjacency and similarity of the pairs may have a far-reaching influence on the outcome of the tenders as developers have more than just market conditions to consider.
Rental market remains buoyant in 1H13 with shoebox units more than doubled in rental volume compared to a year ago. The surge in rental demand for shoebox units is attributed to newly completed projects in 2H12, suggesting a pent-up demand for such units in the rental market. The Central Region saw a higher rental take-up rate compared to the Outside of Central Region. In a handful of projects, more than 80% of all available shoebox units found tenants within a year of completion.