Last minute property deals boost Q2 property figures | 18 July 2013
The last two weeks in June saw Singapore’s Q2 commercial property market figures boosted by several big investments ahead of the new Monetary Authority of Singapore (MAS) regulations.
Five big deals were pushed through before the MAS’s mortgage restrictions came into force at the end of the month, the impact of which, says businesstimes.com.sg, has understandably been a slowing of the market in July.
However, the major deals resulted in an overall second-quarterly transaction volume of S$6 billion, which represents and increase of seven per cent on Q1′s volumes.
According to figures from Savills published in sbr.com.sg, the private and public sectors assumed the biggest share of total investment, amounting to S$3.8 billion, while the residential sector’s contribution was not far behind.
Five major transactions took place, including a 25 per cent S$454 million stake in mixed-use development, Jem, located near Jurong East MRT station. Residential development, Robinson Point sold for S$349 million, while Reignwood Holding acquired 36 units on Scotts Road, totalling $407 million.
Additionally, S$2.1 billion-worth of housing plots were sold to two developers under the Government Land Sales scheme.
The MAS rules state that mortgage lenders should reject applications in cases where borrowers would spend more than 60 per cent of their monthly disposable income on mortgage repayments. The idea behind this is to stop property price ‘bubbles’.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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