By Wong Siew Ying | POSTED: 20 Nov 2013 23:06 | CNA

SINGAPORE

Real estate consultants said the draft master plan unveiled by city planners Urban Redevelopment Authority (URA) on Wednesday is not likely to trigger any knee-jerk reaction in the residential property market.

However, they said areas like Holland Village and Jalan Kayu could see some price upside in the next few years when the new developments are starting to take shape.

The new extension at Holland Village will add 1,500 new homes to the area.

Development will begin in the next one to two years, and analysts said these plans could support future price growth for homes in the vicinity.

Property consultancy firm Century 21 Singapore said the average transacted price of private homes in Holland Village is now about S$1,300 per square foot (psf). And it could potentially rise by up to 20 per cent in the years ahead when the new developments are in place.

Meanwhile, some analysts said the relatively under-valued homes at Jalan Kayu could also benefit.

Mohd Ismail, chief executive officer of PropNex, said: “The landed properties surrounding there are expected to have the greatest benefit among all three identity nodes that have been identified.

“Today, we are looking at a price difference at Jalan Kayu and Serangoon — in terms of per square foot of landed property — could be a difference of 20 per cent and that gap will be narrowed over time.”

In addition, market watchers expect the planned new private housing in Kampong Bugis and Marina South to see keen interest from developers and investors.

While they are still some years away, analysts said the new units are not likely to be sold at record-breaking prices going by today’s market conditions and existing cooling measures.

Analysts estimate that the new private homes in Kampong Bugis could be priced around S$1,500 to S$1,700 psf, S$2,000 to S$2,500 psf for Marina South, and around S$1,700 psf at Holland Village.

Market watchers are also not anticipating a wave of collective sales activities.

Ku Swee Yong, chief executive officer of Century 21 Singapore, said: “Right now, I don’t think there will be a major shift in terms of the plot ratio or the intensification of the land use.

“So it is unlikely for any new enbloc waves to come in due to this round of master planning — perhaps the next round when the Downtown Line and Bukit Timah Line would be ready, and when the Thomson Line would be closer to completion.”

In terms of the new industrial developments including the Lorong Halus Industrial Park and CleanTech Park next to NTU, property consultants said they would not have significant impact on home prices but may elevate the rental potential of homes nearby.

Some analysts said URA’s draft master plan is probably the most people-centric one they have seen, with deliberate plans to integrate communities and shape a more liveable city.

However, some industry players said the concern is whether there will be an oversupply of new homes in the coming years, as slow population growth and curbs on foreign workers may weigh on housing demand.

– CNA/nd

http://www.channelnewsasia.com/news/business/singapore/home-prices-in-holland-v/893916.html