An
insight into the current property market here in Singapore and what can be
expected for private property investors. Dr Amy Khor takes a look at what’s
out there and examines the trend of property demands in an increasingly
intellectual and cosmopolitan Singapore.This article was first published in
Financial Post, Vol 1:8.
What
do buyers look for in a house? What attracts them? What factors help to sell a
house? These are but some questions that developers and prospective house
vendors have to consider now, and more so in the future, as home buyers become
increasingly more knowledgeable, sophisticated and demanding.
The
private residential property market, which remains the cornerstone of
Singapore’s property market, has been somewhat subdued in the last two
quarters with declining sales volume and rates of capital appreciation. A
volatile and under-performing stock market, interest rate uncertainty and
knowledge of a generous potential supply are some main factors which have
dampened the demand for private housing. Nonetheless, there were a number of
popular project launches in the first half of the year. A closer look at some
recent popular project launches provides some insight into the dream homes that
Singaporeans are looking for. This can also give some clue as to the types of
homes which could remain popular over the medium and longer term. Such
properties are likely to enjoy good future capital and rental appreciation.
Popular
projects launched in the first half of this year include Costa Del Sol,
Hillington Green, Palm Grove, The Equatorial, The Teneriffe, Cashew Villas and
The Queens. The primary reasons for these projects’ popularity are competitive
pricing, choice locations (such as being near the MRT and hence highly
accessible or having a sea view), high quality finishes and fittings and
availability of smart home features. The Queens, for instance, received very
strong take-up, with some 250 units sold within one week of its launch. The key
reason for its popularity is its accessible location being next to the
Queenstown MRT station and within ten minutes drive from the city and Orchard
Road. Additionally, landed properties, which are scarce in supply, such as The
Teneriffe and Cashew Villas, also had very high subscription rates. The 148-unit
cluster housing project, The Teneriffe was, oversubscribed, and sold out within
48 hours of its launch.
Location
Although
different housing forms have evolved over the years, more are likely to surface
in the future, and location is likely to remain a key criterion in the search
for a home. Residential projects, which are near MRT stations and/or are highly
accessible should continue to be popular as time becomes an even more scarce and
valued commodity in the increasingly fast-paced information technology world.
However, projects which offer choice and unique locational advantages, such as
waterfront developments or sea views, should also be popular as an increasingly
affluent and cosmopolitan population seek a better quality lifestyle.
Homes
as a Lifestyle Product
Gone
are the days when a house is just a roof over one’s head, people are now
increasingly looking for homes that will suit their lifestyles. Homes have
become an alternative lifestyle product. Waterfront housing, whether near the
city or on an island equipped with a marina could satisfy the needs of
increasingly cosmopolitan individuals and their demands for a different
lifestyle. Existing and potential residential developments such as those at
Tanjong Rhu, Keppel Harbour and Sentosa Cove are likely to become ‘the
place’ for this group of people.
Home
Customisation
In
an increasingly competitive property market, home customisation and flexibility
in home design to suit individual family’s needs, are employed by developers
in their bid to woo home buyers. Buyers are now offered choice of layout and
finishes to suit individual lifestyles. This concept is fast becoming a selling
point in new residential developments. Pidemco Land’s The Loft and Lum
Chang’s Sandy Palms, which offer buyers relatively extensive customisation
options, were largely well received. Over at Camelot located in Tanjong Rhu, it
is back to the basics, whereby the living and dining room flooring comes
unfinished, giving buyers more freedom and flexibility in design.
In
addition, future homes are likely to look functionally different. As
Singaporeans become more well-travelled and more exposed to radical designs,
they will naturally yearn for unique designs. Houses will be customised to suit
each family’s make-up, careers and lifestyle preferences. For instance, future
homes may come with no room divisions at all, having programmable modes of
making territories in a home that do not rely on the traditional means of
creating privacy or sound separation between rooms — the space itself thus
becomes a gadget.
Intelligent
Features
Technology
is set to define the way we live and work in the future. Future homes will
definitely be intelligent. In fact, developments such as The Montana, The Loft
and The Equatorial are already fitted with broadband capabilities and smart home
features . Though smart home features are still in their infancy and has much
room for advancement, they have generally been well-received and demand is
expected to grow. One thing is for sure, smart homes are ‘in’ and they are
here to stay.
In
fact, smart dwellings that respond to voice activation or remote control will be
an exciting element in future homes in Singapore. New homes could be fitted with
microchips in most consumer durables. The consumer durables could have built-in
processors which enable people to communicate with each other and/or to seek
information. Everything will become interactive, allowing seamless, effortless
and ubiquitous access to bountless information any time and anywhere.
Demand for private housing should remain firm over the medium and longer term in view of an increasingly affluent population looking for a better quality of life through housing and upgrading. Other factors that will drive demand for private housing include the government’s policy to attract foreign talent and thus increase the population and its housing needs, as well as the policy to change the ratio of public to private housing from the present 80:20 to 70:30. A wide array of private housing will become available in the future to meet the diverse needs of a cosmopolitan population. Nonetheless, it is envisaged that among others, location will remain a key criterion for prospective home buyers. Projects with unique designs that meet the lifestyle needs of its target market such as smart features, high quality finishes and design and perhaps even flexible or ‘programmable’ spaces are also likely to attract buyers.
Dr
Amy Khor
Director, Knight Frank